ADM Admiral Group Plc

 
TIDMADM 
 
 
   Admiral Group plc 
 
   7 February 2020 
 
   Update on 2019 preliminary results 
 
   Admiral Group ("Admiral" or "The Group") anticipates a strong 2019 
profit before tax due to higher than expected reserve releases in UK 
motor insurance. 
 
   Based on preliminary figures, Admiral expects to post a Group profit 
before tax for 2019 in the range of GBP510 to GBP540 million, 
approximately 6% to 13% higher than 2018's result. 
 
   The higher than expected profit is due to unusually positive development, 
during 2019, in the cost of UK motor bodily injury claims from a number 
of prior underwriting years.  This has led to elevated reserve releases 
and profit commission revenue.  Clarity over the new Personal Injury 
Discount Rate (the 'Ogden' rate) in July 2019 led to an increase in the 
number of large claims settling in 2019 compared to recent years which 
contributed to the level of releases.  There has been no change to 
Admiral's prudent approach to reserving. 
 
   Current year profitability continues to be impacted by higher levels of 
claims inflation during 2019 and as a result, Admiral expects its 2019 
loss ratio to be higher than recent years.  The Group's UK motor 
insurance business grew marginally in customer numbers during 2019. 
 
   On the basis of these preliminary results and strong solvency position, 
the proposed final dividend for 2019 is expected to be in the range of 
73 to 78 pence per share. 
 
   To recognise the contribution of Admiral's employees to the strong 
results, all Group staff(1) will receive a special cash bonus of GBP500 
(approximately GBP6 million in total) in the first half of 2020. 
 
   Figures shown in this release are preliminary and subject to completion 
of internal governance processes and external audit.  Admiral will 
publish its final 2019 results on Thursday 5th March 2020. 
 
   This announcement contains inside information for the purposes of 
Article 7 of the Market Abuse Regulation (EU) 596/2014. 
 
   For more information, please contact: 
 
   Admiral Group plc 
 
   Marisja Kocznur                                +44 (0) 29 2060 2034 
 
   Investors & Analysts 
 
   FTI Consulting 
 
   Edward Berry                     +44 (0) 20 3727 1046 
 
   Tom Blackwell                   +44 (0) 20 3727 1051 
 
   ([1]) Excluding Executive Directors 
 
 
 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

February 07, 2020 02:00 ET (07:00 GMT)

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