Admiral, one of Britain’s biggest motor insurers, said on Wednesday that a series of big price rises had helped revenues climb by a fifth to £2.2 billion. Its underwriting margins weakened slightly, though, in what it said remained a “challenging” market.
The company reported a 10% rise in pre-tax profit to £286 million for the first half of 2023, as it benefited from higher prices and lower claims frequency.
Admiral CEO Milena Mondini de Focatiis said the company had “navigated the cycle well” and was confident that the market was turning.
“We believe that the cycle is turning,” she said. “Secondhand vehicle prices have begun to stabilise, and we expect to see lower cost inflation in the second half of the year.”
Admiral’s results come as the UK motor insurance market is facing a number of challenges, including rising claims costs, inflation, and the ongoing COVID-19 pandemic.
However, Admiral said it was confident that it was well-positioned to weather these challenges.
“We have a strong track record of profitability, and we are confident that we can continue to deliver sustainable growth in the years to come,” Mondini de Focatiis said.
The company also said it was planning to invest in new technology and data analytics, in order to improve its customer experience and make its operations more efficient.
“We are committed to investing in the future of our business,” Mondini de Focatiis said. “We believe that this will help us to continue to grow and succeed in the long term.”
Admiral’s results were welcomed by investors, with the company’s shares rising by 7.2% in early trading.
The company’s results suggest that the UK motor insurance market is starting to recover from the challenges of the past two years. However, it remains to be seen how the market will perform in the long term, as the ongoing cost of living crisis and other economic factors could put further pressure on prices.