Investors Rejoice: Admiral Doubles Dividend After Huge Profit Surge
Admiral Group PLC (AMIGF) just had one of its best years yet, reporting a massive 90% jump in pre-tax profits for FY 2024. The UK-based insurance giant is celebrating big wins, a growing customer base, and some strategic moves that could reshape its future.
Profits Skyrocket as UK Motor Insurance Booms
Admiral’s profits soared to £839 million, nearly doubling from £443 million the year before. The company’s UK motor insurance division was the star performer, raking in £955 million in profits—a 63% increase from 2023. Lower claims costs and smart pricing strategies helped boost the bottom line, making this a standout year for the insurer.
Dividend Doubles—A Win for Shareholders
If you’re an Admiral investor, there’s even more reason to celebrate. The company announced a final dividend of 121p per share, more than double the 52p from last year. It’s a clear sign of confidence from the company, rewarding shareholders for their loyalty.
More Customers, More Growth
Admiral didn’t just make more money—it also gained more customers. The company’s competitive pricing led to a 15% increase in UK motor insurance policyholders, now covering 5.69 million vehicles. This expansion helped push turnover up by 28% to £6.15 billion, solidifying Admiral’s position as a market leader.
Why Admiral is Selling Its U.S. Business
One of the biggest surprises from the earnings call was Admiral’s decision to exit the U.S. market. The company is in exclusive talks to sell Elephant Insurance, its American business. This comes even after Elephant turned things around, posting a £14 million profit in 2024—a huge improvement from its £20 million loss the previous year.
So why sell now? Admiral is choosing to focus on its core UK and European markets rather than spreading itself too thin. While the U.S. business was improving, the company sees better opportunities elsewhere.
What’s Next for Admiral in 2025?
After such an incredible year, Admiral is setting expectations for more steady growth in 2025. Executives acknowledge that 2024’s profit surge was exceptional and might not happen every year. However, with a strong customer base and a well-executed strategy, Admiral remains in a solid position moving forward.
A Big Thank You to Employees
Admiral isn’t just rewarding investors—it’s also looking after its people. More than 12,500 employees are receiving free shares worth up to £1,800 each, recognizing their hard work and dedication.
Final Thoughts
Admiral Group had a truly standout year, doubling profits, rewarding shareholders, and making bold moves to reshape its future. With strong leadership and a commitment to growth, the company is proving why it remains a dominant player in the insurance world.
