StockMarketWire.com - Admiral said Thursday profits rose by nearly a fifth supported even as its UK motor business slowed in the second half in the face of rising claims costs.

For the 12 months to 31 December, statutory pre-tax profits rose by 18% to £476.2m, and revenues rose 10.8% to £3.28bn from a year earlier.

Total net insurance premiums written rose 8.5% to 671.8m.

Underlying UK motor profit was up just 2% from 2017, as a larger book and positive prior year claims development offset by higher current year loss and expense ratios, the company said.

UK Household was impacted by severe weather resulting in a loss of £3 million, compared with a profit of £4m a year earlier.

The final dividend was raised by 14% to 66p from 58p last year.

The company said its record profits and a rise in dividends, was helped by 'the UK government's decision to unwind partially the change in the Ogden discount rate from a couple of years ago.'

'We grew rapidly pretty much across the board, but growth in the core UK Motor business slowed in the second half as we reduced our competitiveness in the face of rising claims costs.'

'Our biggest price comparison site, Confused.com, grew both market share and profits, butCompare.com, our US site, struggled as other advertisers upped their spends'


At 8:00am: [LON:ADM] Admiral Group PLC share price was -72p at 2119p



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