Admiral on track to hit its targets as turnover rises

MOTOR insurer Admiral said its performance in the first quarter put it on track to meet analyst expectations for 2010 as turnover was boosted by the firm insuring more cars.

Admiral said yesterday that sales for the first three months of the year increased to £345m – 28 per cent higher than the same period in 2009, as the number of vehicles it insured rose by 20 per cent to £2.22m.

The company, which sells insurance under the Admiral, Bell, Diamond and brands, said it also grew turnover from car insurance in its overseas markets in Spain, Germany, Italy, France and the US by 31 per cent to £21m.

Admiral added that claim trends this year reflected last year’s trends and that its financial position remains strong.

The group said margins at its unit were still under pressure and turnover fell by five per cent. Analysts expect the company’s 2010 pre-tax profit to be around £249m. Admiral chief executive officer Henry Engelhardt said: “I’m pleased to report that our business has continued to grow. Admiral’s UK car insurance business had another great quarter.”