Admiral Group (ADM) H2 2024 earnings summary

Executive summary

• Achieved record turnover of £6.1bn (+28% YoY), customer base of 11.1m (+14% YoY), and all-time high group pre-tax profit of £839m (+90% YoY), mainly driven by UK Motor and supported by other lines and geographies.

• UK Motor delivered exceptional profit growth, aided by improved claims trends and a £100m Ogden discount rate benefit.

• Strong progress in UK Household, Admiral Money, and International, with double-digit profit in several lines; exclusive talks to sell US business.

• Continued investment in data, AI, and technology, with nearly all systems cloud-based and significant efficiency gains.

• Maintained top-tier customer satisfaction, workplace recognition, and published Net Zero Transition plan.

Financial highlights

• Group pre-tax profit reached £839m (+90% YoY), including a £100m Ogden impact; excluding Ogden, profit was £739m (+67% YoY).

• EPS nearly doubled to 216.6p; return on equity was 56%.

• Turnover surpassed £6bn, up nearly 30% year-on-year.

• UK Motor turnover up 33% to £4.5bn, with PBT of £955m (+£362m YoY, including £100m Ogden benefit); reported COR at 70%.

• UK Household achieved record PBT of £34m and 77% COR; Admiral Money profit up 30% to £13m, with outstanding balances up 23%.

Outlook and guidance

• 2025 UK Motor profitability expected to be lower than 2024 due to price reductions, but still profitable.

• Margins on new business in 2025 expected to return to more normal levels, with modest customer growth.

• Claims inflation expected to ease further in 2025, but market pricing dynamics remain uncertain.

• Smaller positive Ogden impact (~£30m) anticipated in 2025.

• Continued focus on pricing discipline, claims inflation, and combined ratio management.