Admiral has posted strong half-year results for the period up to the 30 June 2021 as their decision to adjust pricing on pandemic-related claims looks to have paid off.
The insurance company saw its pre-tax profit jump by 76 per cent, from £274.4m this time last year to £482.2m for the six months to 30 June 2021.
Admiral shares rose by as much 1.71 per cent this morning on the back of the update
The increase in profit was driven by prior years of positive development in the company’s motor book resulting in higher levels of profit commission, and lower claims frequency.
Meanwhile, it has been another positive half-year for the shareholders, as they saw dividends per share increase by 63 per cent.
The company last year was able to pay out £0.70 per share, with that jumping to £1.15 this year.
It is thought that a fall in settled car claims during the lockdowns of 2020 and 2021 has led to the positive results posted by the company.
Settled car insurance claims fell by a fifth last year.
Milena Mondini de Focatiis, Group Chief Executive Officer, said: “A good strategy is a plus; good execution is a must, especially in times of disruption. It’s been a half year of good execution for Admiral. By and large, we’ve done the right things more often and a bit earlier than most.”
Elsewhere, the group turnover also saw a significant increase of nine per cent as the fewer claims looks to have seriously bolstered the company accounts.
As a result of the adequate 2021 results, the company announced that around 10,000 staff would each receive an award worth up to £1,800 based on the employee share scheme.
“I am delighted that we can once again pay a record dividend to our shareholders, including our staff who continued to work hard to provide great service to our customers. I would also like to thank all of our customers for their continued trust in us,” the CEO of Wales’ only FTSE 100 company went on to say.