Cardiff-based Admiral car insurer reveals profits jump
Admiral car insurer has announced a 31% increase in pre-tax profits for the first six months of the year.
It said lockdown had “resulted in significantly lower motor insurance claims frequency as customers stayed at home and fewer miles were driven”.
In a statement the Cardiff-based firm said its customer numbers had also risen by 6% to 7.2m.
It employs about 7,000 workers in south Wales, has headquarters in Cardiff and offices in Swansea and Newport.
Admiral is the only FTSE 100 company to have its headquarters in Wales.
Its positive results were similar to those from Britain’s biggest car insurer Direct Line, which last week beat half-year profit forecasts and hiked its interim dividend due to a drastic drop in claims.
“Overall a strong first half,” JP Morgan analysts wrote after Admiral 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.
Admiral’s chief executive David Stevens said traffic on the roads was beginning to pick up following lockdown but it was unclear whether it would return to pre-lockdown levels.
He said people might be driving less frequently because of working from home and if the recession increased unemployment more people could end up using their cars less frequently.
He added some people might be choosing to drive though, because of concerns about the risk of virus transmission on public transport.