Motor insurance giant Admiral will pay a final dividend to shareholders for 2019, despite regulatory guidance to insurers urging restraint of such payments due to economic uncertainty caused by the Covid-19 pandemic.
The board of Admiral is recommending, subject to approval at its annual general meeting, that a payment of 56.3p per ordinary share (totalling £165m) for its 2019 financial year be made.
Admiral's chief executive David Stevens has confirmed that the normal dividend payable to him and his wife Heather, totalling around £5m, will be donated in full to their charitable foundation to fund support for charities experiencing reduced income and increased needs during the Covid-19 crisis.
However, the FTSE 100 firm, which employs more than 8,000 in Cardiff, Newport and Swansea, has suspended a special dividend of 20.7p per share for its strong performance last year.
The special dividend (totalling £60m) will be reviewed at its interim results in June. However, Admiral currently intends to pay this element of its 2019 final dividend later in the year, unless there is a significant deterioration in the company’s financial position, trading or outlook.
Last week Admiral announced a refund of £25 to car and van insurance customers in recognition of them staying at home and driving less during the Covid-19 lockdown. The refund totals £110m and will automatically be paid at the end of May.
It has also committed an additional £80m to reducing prices and supporting customers, NHS staff and the local community.
Mr Stevens, said: “We find ourselves in extraordinary circumstances, and it has been a very difficult decision to suspend the special dividend as we are aware of the importance and impact to our shareholders and staff.
"However, the board and I believe that this is the prudent and right thing to do at this time. We thank our customers, staff and shareholders for their continued support, and we remain committed to making decisions that are in their best interests in the long term.”
Mr Stevens has confirmed that the normal dividend payable to him and his wife Heather, totally around £5m, will be donated in full to their charitable foundation to fund support for charities experiencing reduced income and increased needs during the Covid-19 crisis.
Ordinary share dividend payments will be made on June 1st.
