Insurer Admiral lifted its full-year dividend on Thursday and posted a rise in pre-tax profit amid a drop in claims frequency as lockdowns meant that people were driving less.
In the year to 31 December 2020, pre-tax profit from continuing operations pushed up 20% to £608.2m, with group net revenue up 2% at £1.31bn and group turnover 2% higher at £3.55bn. Meanwhile, group customers rose 10% from 2019 to 7.66m.
“Covid impacted the results in all markets in which we operate, resulting in reduced accident frequencies and lower loss ratios,” Admiral said. “We continue to maintain a prudent approach and, as a result, benefited from strong reserve releases from past years.”
Admiral lifted its full-year dividend by 12% to 156.5p a share.
The group’s solvency ratio came in at 187% compared to 190% in 2019 and the return on equity was in line with the previous year at 52%.
Chief executive Milena Mondini de Focatiis said: “2020 was certainly not an ordinary year, but one that I like to think of as a ‘litmus test’ for the business – where, despite the turbulent context, we demonstrated strong operational resilience and agility, we delivered a positive set of financial results, we stayed true to our values and we did what we believed was right for all our stakeholders.
“Our existing customers chose to stay with us more than ever before, and we increased the share of those switching from other insurers to Admiral, resulting in over 650,000 new customers in 2020.
“The year saw profit before tax exceeding £600m, driven by strong reserve releases and a decrease in claims frequency as people drove less during lockdowns.”
