Admiral Group PLC reported a significant increase in profits for the first half of the year, driven by a rise in customer numbers.
The UK-based insurance firm announced on Wednesday that its group pre-tax profit surged by 32% to £309.8 million over the six months to June, alongside a 43% increase in revenue to £3.21 billion.
This growth was accompanied by a 12% increase in group customers, reaching 10.53 million, following a period of decline due to Admiral raising premiums ahead of its competitors.
“Given our proactive pricing response to inflation in previous years, we were able to be more competitive in the first half, which helped expand our customer base,” commented Chief Executive Milena Mondini de Focatiis.
“This growth was driven by a record 5.5 million vehicles covered in the UK and nearly half a million additional customers across other product lines in the UK.”
Admiral increased its interim dividend from 51p to 71p per share based on these figures, which led to a slight dip in its solvency ratio since December. However, the ratio remained strong at 198%, up from 182% in the first half of 2023.
Shares jumped 10% in early trading to 3,105p.
