Admiral Group plc (LON:ADM) have given shareholders a bullish update, with strong fundaments for their recently ended financial year.
The Group Chief Executive Officer, David Stevens called 2019 a ‘freight train year’ – saying that it was a record year with strong consistent performance.
The CEO noted: “Was 2019 another “freight train” year? Very much so. In so many ways.
It was a year which saw profits exceed £500 million for the first time, on the back of substantial reserve releases. We crossed the million mark in household policyholders, and added 200,000 new car insurance customers overseas.
The percentage of staff saying they are proud to work for Admiral was stuck in a narrow band in the mid-90’s. As was the percentage of customers who said they wanted to renew with Admiral following a claim. Consistently happy staff, consistently happy customers. Hopefully happy shareholders.”
The insurance firm posted a pretax profit of £522.6 million for 2019 – which was noted as a company record. This pretax profit figure saw a 10% rise on the 2019 figure, and met internal guidance range.
Customer numbers also rose for the firm, with this metric jumping 7% to just shy of 7 million customers.
UK Insurance numbers also rose 4% to 5.5 million whilst international customers climbed 16% to 1.4 million.
Insurance premium also rose 5.8% to £2.2 billion, Admiral noted – as net insurance premium revenue also jumped 5.6% to £709.4 million. In addition to this, net revenue saw a 7.1% boost to £1.35 billion.
The company’s return on equity was 52%, down from 56%, with the Solvency ratio post-dividend 190% from 194%.
Admiral have decided to pay a 77p per share final dividend, with the addition of a 20.7p special dividend. This boosts the annual dividend to 140p – which sees an 11% rise from 2018.
Annette Court, Admiral Group Chair, commented: “I am delighted to report another year of record profit in 2019 and a strong set of results. It was also pleasing to receive a recent award as the only company to appear in the Sunday Times Best Large Company to Work For shortlist every year since the inception of the awards 20 years ago.
These results are testament to our people, who continue to be at the core of our success and highlight every day the real difference that they make through their focus on great customer service.
Having been through a comprehensive and robust succession process, the Board is confident that in Milena Mondini we have a natural successor and a leader for the next generation, supported by a very strong management team. Milena brings a deep appreciation of the special Admiral culture, entrepreneurial spirit, commercial track record and people development skills.”
Admiral CEO announces his retirement
David Stevens, the Group CEO also announced his retirement in an update toady.
Stevens has been with Admiral since 1991, and is a co-founder of the firm. He has held his role as CEO since 2016. He will retire from the role and as a director in 12 months’ time.
Stevens said today that Milena Mondini de Focatiis will replace him, and she currently holds the head of Admiral’s UK & European Insurance business role.
“I announced this morning that I am going to be stepping down as CEO in 12 months’ time. I fully expect that Admiral’s talented senior management, led by our very talented CEO designate, Milena Mondini, will be more than ready to maintain, or even stoke up, Admiral’s relentless momentum, noted Stevens.
“I am particularly glad that, in Milena, I have a successor who has the intelligence, the values, the track record and the clarity of vision to take on the role of Group CEO, and ensure that Admiral will continue to “go like a freight train” in the years to come.”
Members of Admiral were quick to praise Stevens for his commitment and endeavor to the company.
Annette Court, Admiral Group Chair, added d: “It is hard to sum up the amazing contribution that David has made to the Group over the last 27 years. As one of the founders he has overseen the business grow from a standing start to become one of the UK’s largest motor insurers, employing over 10,000 people, serving seven million customers and with a market value today of over £6 billion.
His new successor commented: “I am immensely proud and humbled to be given the opportunity to succeed David as CEO of a truly special company. During my 13 years with the Group I have worked closely with David, and previously Henry, and look forward to building on their legacy.
Admiral has a unique culture with staff and customers at its core, which has underpinned its track-record of growth and success. The responsibility of ensuring this remains the case into the future is a challenge I am excited to take on.
“Thank you, David, for everything you’ve done for Admiral, and I look forward to continuing to work closely with you during the transition.”
Shares in Admiral trade at 2,193p (+0.55%). 5/3/20 13:08BST.