Admiral Group plc says its turnover climbed by 2% in 2020
- Admiral Group plc says its turnover climbed by 2% in 2020.
- The car insurance firm reports £608.2 million of pre-tax profit.
- Admiral Group declares 86 pence per share of final dividend.
Admiral Group plc (LON: ADM) said on Thursday that its pre-tax profit in 2020 came in better than last year. On the back of hawkish performance, the company also raised its dividend on Thursday.
Admiral shares jumped 1% in premarket trading on Thursday but lost more than 3% on market open. Including the price action, the stock is now trading at £31 per share after recovering from a low of £18.87 per share in March 2020, when the Coronavirus pandemic wreaked havoc on the global financial markets.
Admiral Group reports £608.2 million of pre-tax profit
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Admiral Group said that its pre-tax profit in the recently concluded year printed at £608.2 million. In comparison, its pre-tax profit was capped at a lower £505.1 million in 2019. Admiral had seen a 31% decline in pre-tax profit in the fiscal first half.
The car insurance company attributed its upbeat performance to a decline in claims last year as the Coronavirus pandemic restricted people to their homes. Strong reserve releases, it added, further contributed to the growth in its profit and revenue.
Admiral Group said that its turnover in 2020 stood at £3.55 billion that represents a 2% year over year increase. Its full-year net insurance premium revenue (UK) registered at £539.7 million versus a slightly lower £533.2 million in the previous year. At £751.6 million, net insurance premium revenue as a whole jumped 5.9% in 2020.
The British firm had 7.7 million customers at the end of 2020 – a 10% annualised growth. Its solvency ratio slid to 187% last year from 190% in 2019. In separate news from the United Kingdom, Schroders said that its assets under management hit a record in 2020.
Admiral declares 86 pence per share of final dividend
The board announced a final dividend of 86 pence per share on Thursday. The total pay-out jumped to 156.5 pence per share for the year. In 2019, Admiral had declared 140 pence per share of dividend. The Cardiff-based company said on Thursday:
“We remain focused on two main strategic priorities to strengthen our competitive position and increase our resilience to potential disruptive changes in mobility and our core market.”
Admiral Group performed fairly upbeat in the stock market last year with an annual gain of more than 25%. At the time of writing, it is valued at £9.19 billion and has a price to earnings ratio of 18.48.