11:09 27 April 2013
Admiral was seriously hurt by car insurance dip costs. In UK, car insurance premiums are down by around 10per cent year-on-year. Because of this, concerns were raised as to whether the firm has still the ability to raise earnings and dividend payments after it was revealed that the number of vehicle it insured in the UK flatlined. This is a first time for the company since it floated in 2004.
Henry Engelhardt, Admiral’s boss, isn’t exactly worried. He said: “Little has changed since the full-year results and our expectations for 2013 remain positive and unchanged.”
“Year-on-year UK car insurance market premiums are down around 10%. Not surprisingly our turnover has also fallen, but, as we have said before, we continue to be focused on margin not volume and we believe this is not the right time for us to grow our market share in the UK. We are pleased to report that our claims trends continue to be positive.”
Engelhardt added that the company is enjoying good growth outside the UK and that they are happy with the progress they are making in all the international markets.
Shares fell 25p to £13.24.
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