Motor insurance to loans group Admiral has reported a 4% rise in first half pre-tax profits to £218m, despite a £33m charge due to reforms in personal injury claim payouts.
The performance of Wales's only FTSE 100 firm, which employs more than 7,000 in south Wales at offices in Cardiff, Newport and Swansea, was helped by a turnaround in its UK home insurance business, which saw a swing to a £4.2m profit from losses of £1.9m a year earlier.
Around 10,000 staff, including at its overseas' operations that include those in the US, Spain, Italy and France, will receive free shares worth up to £1,800 under the employee share scheme.
"If it’s a can’t-put-down, read-in-one-go page-turner that you’re after, then I’m afraid our half-year results don’t fit the bill," said David Stevens, group chief executive officer.
"Frankly, they are a bit dull. Turnover up mid-single digits, profit up low-single digits. Hardly 'hold the front page'.
"However, for dedicated aficionados who look behind the headlines, there’s some reward for reading on. Profit growth, even if modest, is more exciting considering the £33m Ogden headwind. Low growth in UK Motor policy count reflects a consciously reduced competitiveness, as we price rationally in the face of any rising claims costs across the market as a whole.
"And potentially lost amidst the worthy tome that is the UK, there’s the racier continental novella that is the European insurance business which has delivered another profitable half year whilst adding a record 209,000 customers over the last year, and 125,000 over the last six months alone.
"Plus, there’s a chapter devoted to Admiral’s emerging Loans business – not the fully finished article, but an encouraging debut from a young talent. "
Its Cardiff-based price comparison firm, Confused,com, reported a strong first half to the year, with profits of £8.7m, compared to £5.8m in H1 of 2018.
