Admiral Group (LON:ADM) has updated investors on its full-year performance this morning.
Highlights from Admiral's statement:
Given Ogden, the Group's share of pre-tax profit reduced materially to £284 million from £377 million last year. On a statutory basis, the reduction is similar, with Group profit before tax at £278 million compared to £369 million in 2015. Without the Ogden change, the Group's share of pre-tax profit would have been £390 million, of which the UK Insurance businesses would have contributed £441 million, in line with last year. Our combined international insurance businesses improved their result (£19 million loss v £22 million loss) whilst the comparison operations recorded a profit of £3 million after making losses of £7 million in 2015. On a statutory basis, the price comparison result is a loss of £3 million compared to a loss of £16 million last year.
Notwithstanding the Ogden impact, the strength of the Group's capital position has allowed us to propose a final dividend of 51.5 pence per share, in line with the final 2015 dividend (before adding the return of surplus capital that was paid a year ago).
Comment from David Stevens, Group Chief Executive Officer
"My first full year as CEO, and after 25 years of almost uninterrupted profit growth under my predecessor, profits are down a quarter! Not exactly a flying start!
On the other hand our ability to grow our businesses rapidly, both in the UK and overseas, and to absorb the shock of an eccentric government decision on discount rates while delivering a 37% return on equity and again paying a substantial dividend is a tribute to the health of the business and resilience of our model.