Admiral Group (ADM)

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Highlights of results here; viewtopic.php?f=15&t=16626

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Interims here; https://admiralgroup.co.uk/sites/defaul ... ts-rns.pdf

Also on HYP practical. Chat there please.

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Miscellaneous

Admiral Group plc announces termination of agreement to form a joint venture and to combine Rastreator with Acierto, digital insurance brokers in Spain

https://www.investegate.co.uk/admiral-g ... 0000H0848/

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Trading Statement: 2019 Results Update

Admiral Group (“Admiral” or “The Group”) anticipates a strong 2019 profit before tax due to higher than expected reserve releases in UK motor insurance.

Based on preliminary figures, Admiral expects to post a Group profit before tax for 2019 in the range of £510 to £540 million, approximately 6% to 13% higher than 2018’s result.

The higher than expected profit is due to unusually positive development, during 2019, in the cost of UK motor bodily injury claims from a number of prior underwriting years. This has led to elevated reserve releases and profit commission revenue. Clarity over the new Personal Injury Discount Rate (the ‘Ogden’ rate) in July 2019 led to an increase in the number of large claims settling in 2019 compared to recent years which contributed to the level of releases. There has been no change to Admiral’s prudent approach to reserving.

Current year profitability continues to be impacted by higher levels of claims inflation during 2019 and as a result, Admiral expects its 2019 loss ratio to be higher than recent years. The Group’s UK motor insurance business grew marginally in customer numbers during 2019.

On the basis of these preliminary results and strong solvency position, the proposed final dividend for 2019 is expected to be in the range of 73 to 78 pence per share.

To recognise the contribution of Admiral’s employees to the strong results, all Group staff1 will receive a special cash bonus of £500 (approximately £6 million in total) in the first half of 2020.

Figures shown in this release are preliminary and subject to completion of internal governance processes and external audit. Admiral will publish its final 2019 results on Thursday 5th March 2020.

https://www.investegate.co.uk/admiral-g ... 0000H7427/

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Finals;

https://admiralgroup.co.uk/sites/defaul ... ts-rns.pdf

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ADM are holding up well today, in a weak market. I guess the results have gone down ok. I wish the rest of my 29 holdings, which include ADM, were doing as well as these.

Ian.

[monabri]

"Admiral has become the first major UK motor insurer to offer its customers partial refunds, as many drivers are stuck at home because of the Covid-19 pandemic, but industry experts say the move does not go far enough."

"The group, Britain’s biggest car insurer, said it would return £110m to its policyholders – a £25 refund for each car and van it covered as of 20 April, a total of 4.4m vehicles. The refund will automatically be credited to customers by the end of May."

"Admiral has pledged a further £80m, mainly to reduce prices, with the biggest cuts to benefit renewing customers with above-average premiums, such as younger drivers. Some of the money will go towards measures to support NHS staff, as well as a £4m Covid-19 support fund in south Wales, where Admiral is based."

extract from The Guardian (no pay wall)
https://www.theguardian.com/money/2020/ ... own-claims


The dividend ~ £406 million (292million shares x 140p).

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"Admiral has become the first major UK motor insurer to offer its customers partial refunds, as many drivers are stuck at home because of the Covid-19 pandemic, but industry experts say the move does not go far enough."

"The group, Britain’s biggest car insurer, said it would return £110m to its policyholders – a £25 refund for each car and van it covered as of 20 April, a total of 4.4m vehicles. The refund will automatically be credited to customers by the end of May."

"Admiral has pledged a further £80m, mainly to reduce prices, with the biggest cuts to benefit renewing customers with above-average premiums, such as younger drivers. Some of the money will go towards measures to support NHS staff, as well as a £4m Covid-19 support fund in south Wales, where Admiral is based."

extract from The Guardian (no pay wall)
https://www.theguardian.com/money/2020/ ... own-claims


The dividend ~ £406 million (292million shares x 140p).

I hold ADM in my HYP, and have been pleased with the shares overall performance. I have a 'full' holding in money invested terms so am unlikely to top up. With regards the refunds you've mentioned monabri, and thanks for that, I think it's very honourable of the firm to do this.

Ian.

[Dod101]

I hold ADM in my HYP, and have been pleased with the shares overall performance. I have a 'full' holding in money invested terms so am unlikely to top up. With regards the refunds you've mentioned monabri, and thanks for that, I think it's very honourable of the firm to do this.

Just as long as it does not affect the dividend (ordinary or special)

Dod

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Just as long as it does not affect the dividend (ordinary or special)

Dod

Agreed Dod.

Ian.

[SlickMongoose]

I hold ADM in my HYP, and have been pleased with the shares overall performance. I have a 'full' holding in money invested terms so am unlikely to top up. With regards the refunds you've mentioned monabri, and thanks for that, I think it's very honourable of the firm to do this.

Just as long as it does not affect the dividend (ordinary or special)

Dod

I don't see why it would - They're doing this because they're raking in the cash and not having any insurance claims to pay out because nobody's driving. Their profits must be huge.

[Dod101]

And on that basis, a £25 refund is a derisory amount. We have so far had but one month of lockdown so it is actually more of a gesture than a refund as such. Apart from anything else, we do not know how long the lockdown is going to last.

Dod

[SlickMongoose]

And on that basis, a £25 refund is a derisory amount. We have so far had but one month of lockdown so it is actually more of a gesture than a refund as such. Apart from anything else, we do not know how long the lockdown is going to last.

Dod

It is a small % of the additional profit they're probably making, yes. It's good publicity though, and none of their rivals have joined in yet.

If the lockdown continues for another couple of months it wouldn't surprise me to see another refund.

Edit: If an annual car insurance premium is around £700 this represents about 40-45% of a monthly payment. Which isn't as small I as first thought really.

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Statement re Dividend Update - Special dividend dropped;

See; https://www.investegate.co.uk/admiral-g ... 0000H3247/

Also posted on HYP Practical. I hold ADM, and although this event re the special is disappointing, I get why they've taken this action.

Ian.

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Continued significant improvements in back year claims drive positive Admiral Group results for H1 2020

Dividend

The Board has declared an interim dividend of 70.5 pence, made up of a normal dividend of 55.0 pence per share and a special dividend of 15.5 pence per share, 12% higher than the 2019 interim dividend of 63.0 pence per share. The payment represents 85% of first half earnings.

In addition, the deferred special dividend from the full year 2019 results of 20.7 pence per share will be paid alongside the 2020 interim dividend. Payment will be on 2 October 2020. The ex-dividend date is 3 September 2020 and the record date is 4 September 2020.

https://www.investegate.co.uk/admiral-g ... 0000H1845/

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Admiral Group plc announces sale of Penguin Portals and Preminen comparison businesses to RVU, the comparison division of ZPG

Admiral Group plc (“Admiral” or “the Group”) announces that it has reached an agreement with ZPG Comparison Services Holdings UK Limited (“RVU") that RVU will purchase Penguin Portals Group (“Penguin Portals”, comprising online comparison portals Confused.com, Rastreator.com and LeLynx.fr and the Group’s technology operation Admiral Technologies) and its 50% share of Preminen Price Comparison Holdings Limited (“Preminen”), together the “Proposed Transaction”. MAPFRE will also sell its 25% holding in Rastreator and 50% holding in Preminen as part of the transaction.

The total transaction value, including the amount attributable to MAPFRE, is £508 million plus a further amount that will accrue until the date of completion of the Proposed Transaction (“Transaction Value”). The Transaction Value shall be satisfied in cash at completion of the Proposed Transaction subject to certain adjustments. The proceeds to Admiral, net of minority interests and transaction costs, will be around £450 million. As noted above, the final transaction value will depend on the completion date.

In light of the strong solvency and liquidity position of the Group, Admiral expects to return a majority of the net proceeds to shareholders, though will retain a portion to support investment in new business development over the coming years. Further details will be provided after completion. Completion of the transaction is subject to customary regulatory and competition authority approvals and is expected to close in the first half of 2021.

David Stevens, Group CEO of Admiral Group commented:
“The purchase of the UK and European comparison businesses by RVU offers a positive outcome for our customers and our employees, and also provides good value for our shareholders.

The combination of Penguin’s strengths, notably in insurance comparison across much of Europe, with RVU’s strengths beyond insurance and experience in growth through acquisition, provides a solid foundation for the combined businesses to grow and prosper.

Admiral will continue to focus on what Admiral has consistently done well, namely designing and underwriting good value mass market financial service products. Comparison will continue to be Admiral’s most important distribution channel in Europe and we look forward to continuing to work closely with Confused.com, Rastreator and LeLynx as they continue to grow and strengthen the customer offering.

https://www.investegate.co.uk/admiral-g ... 0000H8066/

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Circular re Electronic Communications with Shareholders

The Company has today posted a letter concerning electronic communications to its new shareholders that have become holders of shares in the Company since the last deemed consent letter was sent on 12th February 2019. A copy has also been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. A copy of the letter can also be viewed on the Investor Relations/Shareholder Services section of the Company's website at http://www.admiralgroup.co.uk.

https://www.investegate.co.uk/admiral-g ... 2256H6246/

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Admiral Group plc announces full year results with growth in Group profit and customers for the year ended 31 December 2020

https://www.investegate.co.uk/admiral-g ... 0000H0184/

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Admiral Group 2021 half year results trading update

Based on preliminary figures, Admiral Group (“Admiral” or “The Group”) anticipates a higher than expected Group profit before tax for the first half of 2021 in the range of £450 to £500 million (continuing operations)1.

The stronger result is due to unusually positive development in the cost of UK motor bodily injury claims from a number of prior underwriting years which has led to higher reserve releases and profit commission revenue. There has been no change to Admiral’s prudent approach to claims reserving.

Further, motor claims frequency in 2021 to date has been lower than expected due to extended lockdown restrictions resulting in a favourable current period loss ratio, despite the significant reductions in Admiral’s premium rates over the past twelve months, which followed the £110 million of premium refunded to customers in May 2020.

On the basis of these preliminary results and a very strong solvency position, the proposed 2021 interim dividend is expected to be in the range of 110 to 125 pence per share.

It is not currently expected that the level of reserve releases and profit commission for the first half of 2021 will be repeated in the second half.

The sale of the Penguin Portals comparison businesses was completed on 30 April 2021. Of the net proceeds from the transaction of approximately £460 million, Admiral expects to return £400 million to shareholders in the form of special dividends phased over 2021 and 2022. The first payment will be made with the interim 2021 dividend referred to above. Further detail will be provided with the Group’s half year results announcement in August.

Figures shown in this release are preliminary and subject to completion of internal governance processes and external audit review. Admiral will publish its 2021 half year results on Wednesday 11 August 2021.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014.

https://www.investegate.co.uk/admiral-g ... 0000H5690/

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Half-year report

Comment from Milena Mondini de Focatiis , Group Chief Executive Officer

“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.

“This included adjusting pricing ahead of the market in the UK to reflect shifting pandemic-related claims trends and providing more self-service and digital options to our customers. These actions have rewarded us with double digit growth in policy numbers in the UK and in international insurance, whilst operating in very competitive markets.

“Another highlight of this half year is a notably higher level of profit 1 - driven by positive development of prior years in our UK Motor book resulting in increased reserve releases and higher than usual profit commission, as well as lower levels of claims frequency. We also made progress against our long-term strategy, increasing adoption of advanced analytics models and planting new seeds for product diversification.

“I am delighted that we can once again pay a record dividend (which includes a part of the proceeds from the sale our comparison businesses) 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.”

1 Group profit before tax , Earnings per share, Group turnover, Net revenue and Return on equity presented on a continuing operations basis
2 Alternative Performance Measures - refer to the end of the report for definition and explanation
3 Prior period interim dividend excludes the 20.7 pence special dividend, deferred from 2019
4 Group Turnover in H1 2020 includes the impact of the ‘Stay at Home’ premium refund issued to UK motor insurance customers of £97 million. Refer to the Alternative Performance Measures section at the end of this report for further explanation
5 Solvency ratio excludes positive impact of capital held from Penguin Portals disposal to be returned to shareholders

Dividend
The Board has declared an interim dividend of 115.0 pence, made up of a normal dividend of 87.9 pence per share and a special dividend of 27.1 pence per share, 63% higher than the 2020 interim dividend of 70.5 pence per share (excluding the deferred special dividend of 20.7 pence from 2019 which was paid alongside the 2020 interim dividend). The payment represents 87% of first half earnings per share from continuing operations.

The Board has also declared a further special dividend of 46.0 pence per share reflecting the first payment of the phased return to shareholders of the proceeds from the sale of the Penguin Portals comparison businesses. This brings the total interim dividend to 161.0 pence, made up of a normal dividend of 87.9 pence per share and a total special dividend of 73.1 pence per share.

Payment will be on 1 October 2021. The ex-dividend date is 2 September 2021 and the record date is 3 September 2021

https://www.investegate.co.uk/admiral-g ... 0000H0981/