Admiral the Cardiff and Swansea based insurance company posted its half year profits, as being the best ever yet. The result is that its staff of 1,600 will all share a windfall of £2 million.
The company was floated on the London Stock Exchange last year and has since seen a 17 per cent surge in core profits for the first half of 2005 which is up from £48.6 million to £56.9 million in 2004. Figures also showed an increase on turnover to £319.3 million an increase of 19 per cent.
On of their online brands is elephant.co.uk for car insurance with a 38 per cent share of the overall customer base. After last years floatation staff at the company received an equity windfall of £39,000.
If the company manage to reach their targets in the first half of 2005 staff are likely to benefit by receiving 400 shares with a value of £1,500. These come with a restriction that they can’t be sold within the first three years. If Admirals good fortune continues for the second half of 2005, then staff will receive similar bonuses.
Henry Engelhardt, Admiral’s chief executive was delighted with the company’s progress as one of the most profitable car insurance providers in the UK.
Mr Engelhardt said, “Not only did we make a record core profit, but we did this in an environment of declining market profitability. Furthermore, we raised our rates in the period [around 3 per cent] and yet we were still able to grow our premium income and customer numbers.
“In the short term we plan to maintain a significant combined ratio advantage over the market average and continue to grow our book of business. As part of our longer-term strategy we continue to investigate opportunities for business outside the UK.
“Elephant [which has around 400,000 customers] is our biggest brand and has had another good six months, but Admiral also picked up again. None of our brands performed badly, but those two were probably the best.”
Mr Engelhardt said the impact of increased oil prices was unlikely to impact on the sector.
“The increase in petrol prices could reduce the amount of people who drive and therefore reduce the number of accidents,” he said.
“But the reality is that most people are very reluctant to give up the use of their car.”
Confused.com, the company’s stand alone car insurance broker was also doing well. Mr Engelhardt added that despite its success they would consider any offers for Confused.com, even though there is no planned sale of the company.
He added, “We are not the biggest, but pound for pound we are probably the most profitable motor insurance company in the UK.”