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Additional Information
2024 Financial and Strategic Highlights
Financial Highlights
Group profit before tax1
£839.2m
EPS1 (pence)
216.6p
RoE1, 2
56%
Insurance revenue
£4,776m
Turnover2
£6.15bn
Customers3 (million)
11.1m
Dividend per share (pence)
192p
Solvency ratio1, 2 (post dividend)
203%
10995116279212
10995116279267
10995116279282
10995116279294
10995116279357
10995116279369
10995116279401
10995116279413
Sustainable highlights
Gender split across the Group4
(2023: 50% female, 49% male)
Emissions5 (tonnes CO2 per employee)
0.07 tonnes
Net Promoter Score (NPS)6
Group average across our operations (2023: >45)
>45
51%
Female
48%
Male
13194139535829
1Group profit before tax, EPS, RoE, Dividend per share and Solvency ratio as reported include the impact of the favourable move in Personal Injury discount rate (Ogden) from -0.25%
to +0.5%. See Strategic Report for further information.
2Alternative Performance Measures – refer to the end of the report for definition and explanation.
3Group customer numbers – refer to the end of the report for definition and explanation.
4For 2024, 1% (2023: 1%) includes non-binary and other genders, and colleagues who’d prefer not to say.
5Scope 1 and 2 market-based emissions per employee per SECR. 2023 SECR figures restated 12 months data actual data. See page 64 for further explanation.
6Relational NPS.
Admiral Group plc Annual Report and Accounts 2024
1
In this document                    Our purpose
Company Overview
Expanding on our purpose
About us
Our business segments
Our business model
Strategic Report
Chair's statement
Chief Executive Officer’s statement
Our strategy
Key performance indicators
Group Chief Financial Officer’s review
2024 Group overview
UK Insurance review
International Insurance review
Admiral Money review
Other Group items
Group capital structure and financial position
Sustainability
Streamlined Energy and Carbon Reporting (SECR)
Task Force on Climate-related Financial Disclosures
(TCFD)
Section 172 statement
Non-financial and sustainability information statement
Principal risks and uncertainties
Viability statement
Corporate Governance
Chair Introduction to governance
Board of Directors
Board leadership and Company purpose
Division of responsibilities
Nomination and Governance Committee Report
Audit Committee report
Group Risk Committee report
Remuneration Committee report
Remuneration at a glance
Directors' Remuneration Policy
Annual report on remuneration
Directors’ report
Financial Statements
Independent auditor's report
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Cashflow Statement
Consolidated Statement of Changes in Equity
Notes to the consolidated financial statements
Appendix 1 to the Group Financial Statements
Appendix 2 to the Group Financial Statements
Parent company financial statements
Notes to the parent company financial statements
Additional Information
Glossary
Admiral Group’s purpose is to
help more people to look after
their future, while always striving
for better, together. Our purpose
framework demonstrates how
our purpose is embedded across
the Group. The framework and
its consideration of stakeholders
provides a roadmap for the types
of decisions taken across the
business on issues of sustainability.
Our purpose framework
Read more on page 47
Admiral Group plc Annual Report and Accounts 2024
2
Expanding on our purpose 
Admiral serves over 11.1 million customers in
five countries with a range of financial products
that meet their evolving needs, and we ensure
that we are there for them when they need
us the most.
What we have done this year
Keeping customers
safe on our roads
Our UK, Italian and US businesses
supported safe driving campaigns in 2024,
including a nationwide cinema campaign
in the UK to highlight the risks of
dangerous driving.
Read more on page 36
Celebrating 20 years on the
London Stock Exchange
In September, we celebrated 20 years
as a listed business. We marked the
occasion at the London Stock Exchange
with colleagues who have been a part
of our incredible journey of growth.
Read more on page 23
Helping
more people
to look after
their future...
Admiral Group plc Annual Report and Accounts 2024
3
Serving more than 11 million
customers across the Group
This year, we grew our Group customer
base by 14% to over 11 million customers,
and we have almost 6 million vehicles on cover
in the UK. As well as being one of the largest
motor insurers, we are proud to cover
over 200,000 pets, nearly 2 million homes
and over 900,000 travel policies in the UK,
and over 2 million customers across our
international franchises, demonstrating solid
progress against our diversification strategy.
Read more on page 35
Admiral Group plc Annual Report and Accounts 2024
4
Expanding on our purpose
continued
Our unique culture and our dedicated
colleagues are the secret to our success.
We recognise that ‘people who like what
they do, do it better’. It’s our success as
a team that makes our business stronger.
What we have done this year
Leading the way in EV transition
As one of the UK’s leading insurers of
electric vehicles (EV), we pride ourselves
on supporting customers with their
transition to electric. We have been
recognised by Defaqto as a Trailblazer
for our innovative EV insurance product.
A great place to work
We’ve been named as one of the
World’s Best Workplaces™ 2024
by Great Place To Work®.
Battling extreme weather
Our local communities in the UK and
Spain were impacted by severe flooding
events this year. We used our Global
Emergency Fund to help rebuild areas
and support those affected.
Read more on page 55
...always
striving
for better,
together
Great Place To Work.png
extreme weather.png
EV charger.png
Admiral Group plc Annual Report and Accounts 2024
5
Making progress against our
sustainability objectives
This year, we have made good progress on
our sustainability strategy. Admiral Group received
an MSCI ESG rating of AAA, upgraded from AA,
our science-based targets were approved by
the Science Based Targets initiative (SBTi),
and we launched our Net Zero Transition Plan.
    Read our full transition plan
on our Group website
Admiral Group plc Annual Report and Accounts 2024
6
About us
Admiral Group plc is an
established financial services
provider offering Motor,
Household, Travel, and Pet
insurance, as well as personal
lending products. We serve
customers in five countries:
the UK, France, Italy, Spain
and the US.
People employed globally:
>15,000
Customers worldwide:
11.1 million
Turnover worldwide:
£6,147 million
Admiral Group plc Annual Report and Accounts 2024
7
Our business segments
UK Motor Insurance
Admiral is one of the largest car and
van insurers in the UK.
Brands
Customers:
5.7 million
(2023: 4.9 million)
Turnover1:
£4.5 billion
(2023: £3.4 billion)
UK Household Insurance
Admiral has a growing
household business.
Brands
Customers:
2.0 million
(2023: 1.8 million)
Turnover1:
£475 million
(2023: £339 million)
International Insurance2
Admiral has motor insurance businesses
in Italy, France, Spain, and the US,
a household insurance business
in France and a pet business in Italy.
Brands
Customers:
2.1 million
(2023: 2.2 million)
Turnover1:
£840 million
(2023: £895 million)
Admiral Money
Admiral offers unsecured personal
loans and car finance products.
Brands
Customers:
155,000
(2023: 150,000)
Gross balances:
£1.17 billion
(2023: £0.96 billion)
1Alternative Performance Measures – please refer to the end of the report for definition and explanation.
2International Insurance numbers include Motor, Home and Pet.
Admiral Group plc Annual Report and Accounts 2024
8
Our business model
Everything starts with our purpose:
Help more people to look after their future.
Always striving for better, together.
Read more on page 10
Read more on page 11
Admiral Group plc Annual Report and Accounts 2024
9
Our business model
continued
What we do:
Our primary business is to offer car, van, home, travel, and pet insurance
as well as unsecured personal lending products.
We also identify future sources of earnings by investing in new ventures and testing new products
through Admiral Pioneer.
Customers icon.png
Our customers
We provide a broad range of general insurance and
lending products to meet our customers’ specific needs.
Price comparison websites are our primary distribution
channel for our insurance products, with a smaller
proportion of our customers buying directly or through
brokers and agents. We generate additional income from
selling ancillary add-ons and from fees generated
over the lifetime of a policy.
Managing risk icon.png.png
Managing risk
Our customers pay us an agreed premium to insure
themselves against specific risks. We efficiently pool these
risks and share a proportion of that risk with reinsurers and
co-insurers outside of the Group. This ensures that we have
further protection from losses and means that we earn
profit commission when the business generates overall
profits. The extensive use of reinsurance and co-insurance
is a key feature of our business model and success.
Managing Investments icon.png
Managing investments
We prudently invest the premiums we collect
to generate investment income. Our investment strategy
is focused on capital preservation and low volatility
of returns relative to liabilities. We hold a prudent
level of liquidity, and the investment portfolio has 
a high-quality credit profile. Our disciplined approach
to capital management ensures that we can protect
our customers when they need us.
Managing claims icon.png
Managing claims
We engage closely with our customers throughout the
claims process, working with our partners and suppliers,
to ensure our customers are supported and receive
a fair outcome in a timely manner.
People icon.png
Our people
People are at the heart of our business. We have
always focused on providing a supportive and inclusive
environment that allows people to develop and grow.
Our unique culture encourages openness and equality
so that our colleagues are empowered to do the right
thing for our customers.
Shareholder icon.png
Our shareholders
The difference between our revenue and our paid
and expected claims and operating costs drives
our profitability. The majority of our profits are paid
out in dividends, with a proportion held back
to continue enhancing our capabilities and exploring
new business opportunities, which deliver long-term
sustainable growth.
Admiral Group plc Annual Report and Accounts 2024
10
Our business model
continued
Our drivers of success
These enable us to fulfil our purpose and deliver
long-term sustainable value for our stakeholders.
Excellent customer service
We aim to create good-quality, inclusive, sustainable insurance
products that are easily understood and accessible through
simple and clear communication to support our customers
in the way that is most convenient for them.
Our customer-facing teams provide customers with all relevant
information, including limitations, so they can make informed
decisions, and we train colleagues to identify and support
vulnerable customers. We actively review our practices against
internal policies and regulatory requirements to ensure that our
sales and claims processes are responsible and transparent.
We are also committed to offering environmentally-friendly
products to support our customers with the transition to
alternative-fuel vehicles.
We regularly measure customer satisfaction across key
benchmarks, such as the Net Promoter Score® (NPS),
to review our performance and improve our processes.
Unique Company culture
Stakeholder_Culture_light blue.png
Our four pillars of culture are the foundation for why Admiral
is celebrated as a Great Place To Work®, which is key to us
attracting and retaining the talent we need to deliver for our
customers and execute our strategy.
We promote an equal and inclusive environment where
everyone can succeed and be themselves. Employee-led
diversity and inclusion groups actively influence our workplace
policies. We encourage open communication at all levels, with
management operating an open-door policy, and initiatives
such as ‘Ask Milena’, where colleagues can interact with our
Group CEO.
Our share ownership scheme is key to recognising and
rewarding colleagues, fostering a customer-centric mindset.
We believe that ‘people who like what they do, do it better’,
which ensures better outcomes for our customers.
Operational excellence
Stakeholder_Excellence_light blue.png
We take great pride in providing good value and inclusive
financial products and services that meet customer needs.
Our focus on risk selection and data analytics shapes our
decision making and is built upon extensive claims experience,
underwriting capabilities, and insights from big data.
Our efficient claims management is backed by a culture
of continuous improvement, proactive engagement,
great customer service, and decades of experience.
We remain focused on building long-term sustainable
and profitable businesses through financial discipline.
Our cost-conscious approach is strongly embedded across
the organisation and translates into a competitive expense ratio.
Efficient capital employment
Stakeholder_Employment_light blue.png
Our partnerships with our reinsurers and co-insurers are
underpinned by a track-record of strong underwriting results
and good risk management. Sharing risk allows us to hold less
capital, whilst ensuring protection from losses, thus supporting
our commitment to strong shareholder returns.
Track record of long-term
profitable growth
Stakeholder_ITrack record_light blue.png
Our success is, in part, due to our prudent reserving
philosophy. We release reserves over time as we gain more
information on the development of claims or defaults across
our insurance and loans businesses.
Our strong culture of innovation and organic growth has helped
us build our businesses from the ground up with a test-and-
learn approach. We identify opportunities, take measured steps
to test our understanding, and acquire learnings.
Central to our approach to achieving lasting value creation
is our continued dedication to drive positive outcomes for
our stakeholders. As their needs evolve, we consciously adapt
to remain a responsible, profitable, and sustainable business.
2024 highlights
Top 2
Trustpilot (or equivalent)
for UK and Europe1
>45
Group average NPS2
(2023: >45)
88%
of colleagues believe
Admiral is a Great Place
To Work®3 (2023: 87%)
97%
of colleagues feel
they are treated fairly
regardless of race
or sexual orientation 3
(2023: 96%)
285%
Total shareholder return
over the last 10 years4 
(2023: 296%)
203%
solvency II capital
cover ratio5, 6
(2023: 200%)
1Trustpilot for UK, ConTe, Seguros and Admiral Money, and Opinion Assurance
for L’olivier.
2Relational NPS.
3Great Place To Work Survey (GPTW) result.
4Total shareholder return is defined as the percentage change over the period,
assuming reinvestment of income.
5Group profit before tax, EPS, RoE, Dividend per share and Solvency ratio as reported
include the impact of the favourable move in Personal Injury discount rate (Ogden)
from -0.25% to +0.5%. See Strategic Report for further information.
6 Alternative Performance Measures – refer to the end of the report for definition
and explanation
Admiral Group plc Annual Report and Accounts 2024
11
Our business model
continued
Creating value for our stakeholders
Customers
People
Stakeholder_People_light blue.png
Society:
Environment
Stakeholder_Environment_light blue.png
The needs of our customers shape
our products and services. We strive
to create good value, sustainable
financial products to help more people
to look after their future.
Our distinctive culture promotes
transparency, and happier and more
productive employees, and ultimately
better outcomes for all stakeholders.
Conducting business responsibly and
reducing any negative environmental
impact are integral to our business
model, in line with our values and
those of our stakeholders.
Value created in 2024
• We launched Genesys, our new
cloud-based contact centre, which
enhances our communication
capabilities as well as the customer
journey and experience
• During storm and flood events in
the UK, we managed approximately
7,000 claims. Even during our peak
periods, we achieved an average
weekly call answer rate of 98%,
demonstrating our dedication to
supporting our customers.
Value created in 2024
• We were recognised as one of
the Top 25 World’s Best Workplaces
by Great Place To Work® and
Fortune magazine
• 95% of employees believe that
‘When you join the company,
you are made to feel welcome’1
• We held in-person Staff General
Meetings across the Group for
the first time since pre-Covid,
allowing colleagues to interact
and experience the event together.
Value created in 2024
• Our science-based targets were
approved by the SBTi and our
MSCI ESG rating was upgraded
to a AAA grading2
• We launched our Net Zero
Transition Plan, which sets out how
we aim to achieve net zero carbon
emissions by 2040
• We invested in Schroders Capital’s
Junior Infrastructure Debt Europe
Fund III, which integrates ESG
factors into its investment process.
Business:
Shareholders
Stakeholder_Shareholders_light blue.png
Business:
Partners
and Suppliers
Stakeholder_Partners_light blue.png
Society:
Communities
Stakeholder_Communities_light blue.png
Market engagement is key to helping
investors understand our investment
case, strategy, and performance, and
is an opportunity for us to listen to
their views.
Our partners and suppliers are
essential to us achieving our strategic
and sustainability goals, and we work
hard to foster strong relationships
and mitigate risks.
A culture of giving and a sense of
responsibility is shared across our
businesses so we can drive long-term
change inside and outside the Group.
Value created in 2024
• We met with more than 250
shareholders, investors and
analysts across more than 70
events including roadshows,
conferences, salesforces and
regular meetings
• We organised three visits to our
Cardiff head office to provide
investors with the opportunity
to meet managers from across
the business and experience
our unique culture.
Value created in 2024
• We partnered with Google Cloud
to help us accelerate our digital
journey with customers, providing
a seamless experience and allowing
us to make data-driven decisions
across Admiral UK
• We signed up to Flood Re’s ‘Build
Back Better’ scheme designed to
reduce the impact of future floods
• Admiral partnered with Earthwatch
Europe to sponsor the Green Earth
Schools and Tiny Forest
programmes in Wales.
Value created in 2024
• We contributed over 32,000
volunteering hours in local
communities3
• As part of our MP engagement
programme, we met with the First
Minister of Wales and Secretary
of State for Wales to discuss how
we can collaborate to deliver growth
in Wales and the insurance industry
• We invested nearly £1 million into
employability programmes and
supported over 1,300 people into
jobs outside of our organisation.
1Great Place To Work Survey (GPTW) result.
2The use by Admiral Group of any MSCI ESG research LLC or its affiliates (MSCI) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute
a sponsorship, endorsement, recommendation, or promotion of Admiral Group by MSCI. MSCI services and data re the property of MSCI or its information providers, and are provided
‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
3Volunteering hours completed by UK colleagues.
Admiral Group plc Annual Report and Accounts 2024
12
Strategic
Report
In this section
Chair’s statement
Chief Executive Officer’s statement
Our strategy
Key performance indicators
Group Chief Financial Officer's review
2024 Group overview
UK Insurance review
International Insurance review
Admiral Money review
Other Group items
Group capital structure and financial position
Sustainability
Streamlined Energy and Carbon Reporting (SECR)
Task Force on Climate-related Financial Disclosures (TCFD)
Section 172 statement
Non-financial and sustainability information statement
Principal risks and uncertainties
Viability statement
Admiral Group plc Annual Report and Accounts 2024
13
Chair’s statement
Another year of sustainable
growth and delivering for even
more stakeholders 
Admiral Group performed very strongly in
2024 despite an unfavourable macroeconomic
backdrop. The Group has achieved significant
customer growth, while increasing customer
satisfaction, and delivered an excellent UK Motor
performance, supported by changes to the
Ogden rate, with strong results in many other
business lines. This has translated into profit
before tax of £839.2 million and a proposed final
dividend of 121.0 pence per share, making a total
of 192.0 pence per share for the financial year.
The Group’s impressive customer growth is a testament to
its core value of doing what is right for customers. In the UK,
due to better cycle management and in response to improved
market conditions, Admiral reduced prices earlier than the
market in early 2024.
Delivering growth, digitisation and sustainability 
Defending and extending the competitive advantages of the
UK motor business remains our number one priority, alongside
our strategy of developing other franchises with the potential
to drive future profitable growth. We have seen positive
results across many of our newer franchises, with double-digit
profit in the UK’s Household and Money businesses and our
French business.
The Group has made significant strides in enhancing
its digital capabilities and unlocking the potential of new
technologies to achieve a superior customer experience
and greater productivity.
Admiral continues to navigate a challenging regulatory
Statement-Mike Rogers.png
landscape to ensure its resilience and sustainability in the long
term. As one of the UK’s largest motor insurers, the business has
been engaging with members of the motor insurance taskforce
to identify solutions to tackle the current high costs of insurance.
Admiral continues to support customers to adopt greener
behaviours and is one of the leading UK electric vehicle insurers.
The publication of Admiral’s Net Zero Transition Plan and the
SBTi’s approval of its science-based targets demonstrates our
commitment to responsible and sustainable business practices.
Powered by our people
Admiral colleagues’ expertise and dedication to supporting
customers, colleagues and local communities is remarkable,
so I was pleased that Admiral was, again, named one of the
world’s best workplaces. Similarly, it was an honour to be at
the London Stock Exchange to celebrate 20 years of Admiral
being a listed business and delivering for customers and
shareholders, with colleagues who are custodians of the
business’ incredible culture.
I was sorry to say goodbye to Cristina Nestares who had
successfully led the UK Insurance business since 2016. We all
wish her the very best for the future. I’m pleased that, in line
with the Group’s strong track record on succession planning,
Alistair Hargreaves has been appointed UK Insurance CEO.
We conducted an evaluation on the performance of the Board
and its Committees. This process confirmed that these were
operating effectively, that the business is managed for the
long-term benefit of all stakeholders and provided a clear
focus on areas for improvement for the forthcoming year.
The findings can be found on page 138.
On behalf of the Board, I would like to thank Admiral colleagues
for their ongoing commitment, and the management team for
their excellent leadership and performance.
While the external landscape remains uncertain, I believe that
the Group’s competitive advantages, disciplined approach,
and customer-first mindset will drive continued growth and
shareholder value.
Mike Rogers
Group Chair
5 March 2025
Admiral Group plc Annual Report and Accounts 2024
14
Chief Executive Officer’s statement
Our performance
Group profit before tax
£839 million
Group customer numbers
11.1 million
A truly fantastic performance
achieved whilst maintaining our
customer focus and discipline
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Overall, 2024 was a remarkable year for Admiral.
It was not only a year of delivering excellent
financial results but also one of continuous
improvements in serving our customers and
making solid progress on our strategy.
Despite persisting economic, political, and regulatory
uncertainty, motor insurance market conditions improved and
this – combined with our historical discipline and agility across
the insurance market cycle allowed us to achieve a great many
successes. We have welcomed 1.4 million new customers,
improved customer satisfaction, added £1.3 billion in turnover,
and increased profits by 90 per cent.
Our core business, UK Insurance, was the main driver of this
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success. It delivered just under £1 billion in profit, supported
by the impact of the recent favourable Ogden Rate change,
and strong growth across our other products. Our acquisition
of the renewal rights for More Than completed in the first half
of the year. The integration is progressing well with 7 months
of renewals at the end of January and retention is in line
with expectations.
To remain one of the most competitive insurers for the largest
number of people is a priority for us so, when we saw conditions
improve, we were quick to reflect this in our pricing. We led
on reducing rates, doing it earlier than most at the start of the
year, as we saw inflation easing. We also cut rates the day after
the favourable Ogden rate change announcement.
Beyond UK motor, we have delivered double-digit profits
within our UK Household, French and US Motor businesses
and Admiral Money. We now serve over 11 million customers
globally, with almost half of customer growth coming from
other business lines across the Group.
We are proud of the pleasing turnaround that the US team
has achieved. As previously mentioned, we’re assessing the
strategic options for our US business. We have made good
progress and are in exclusive talks with a potential acquirer.
Across our European franchises, we now insure more than
half a million French customers and have seen an improved
performance in our Spanish business. In Italy, the team
is focused on turning the business around following a
disappointing financial performance in a tough market in 2024.
“The Group has delivered
an excellent performance
in UK Motor and sustainable
growth in other franchises,
underpinned by our pricing
and underwriting expertise.”
Milena Mondini de Focatiis
Group Chief Executive Officer
Admiral Group plc Annual Report and Accounts 2024
15
Chief Executive Officer’s statement
continued
CEO_GroupWomen.png
We are conscious that there is more to do to unlock the potential
of these businesses. We have ambitious plans to build on our
UK customer base, to further improve the customer experience
and harness the advantage of automation and AI to achieve
even greater efficiency.
Taking a step back, our story has been one of continuous
growth and, to celebrate 20 years as a listed company,
colleagues joined Mike Rogers and I at the London Stock
Exchange to close the market. This anniversary was a time
for reflection on where the business has come from and,
of course, where the business is going (and to celebrate
Geraint who has been Group CFO for ten years –
congratulations Mr Jones!).
Our success has been underpinned by our pricing, underwriting
and claims management expertise, all united by a culture that
is truly unique. We put our customers and people first, and are
data-driven, agile and entrepreneurial.
We want to have a positive impact on society. We are one
of the leading electric vehicle insurers and are proud of our
commitment to improve road safety. In the UK, our Words
to Live By campaign video was shown in cinemas nationwide.
I am proud of how our colleagues have supported customers
impacted by flooding and we are working cross-industry
to ensure that homes are more flood resistant or resilient.
Our colleagues want to play a positive role in the communities
in which we live and work, and the number of volunteering
hours more than doubled in 2024.
We have published our Net Zero Transition Plan and are
working hard to meet our sustainability goals. I was pleased
to see our science-based targets officially approved and
our MSCI ESG score upgraded to AAA.
We know that if our people like what they do, they will
do it better, and it is brilliant to be recognised, once again,
as one of the World’s Best Workplaces. We focus on being
an inclusive employer and maintaining our unique culture to
attract and retain the talent we need to execute our strategy.
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I am so proud of everything that we have been able to achieve
this year thanks to our incredible colleagues. Ever since
we floated, colleagues have been given a stake in the business
so that they can benefit from their hard work and customer
focus. This year, we have given colleagues an additional bonus
to reward their commitment.
In October, we announced that Cristina Nestares was stepping
down as CEO of our UK Insurance business to spend more
time in her native Spain. We will miss Cristina’s passion and
customer focus, which were key to building on the business’
position as a leading insurer. I was pleased to appoint
Alistair Hargreaves as CEO. Alistair has significant leadership
experience and extensive knowledge of our customers,
colleagues, products and strategy, and I look forward to working
even more closely with him as we continue to deliver for our
growing customer base.
We are emerging from four years of challenge from the pandemic
and cost-of-living crisis to inflation spikes and regulatory
changes. Although, no doubt, further challenges lie ahead,
I am optimistic about the opportunities too. Our priority will
be to stay agile, lean, and efficient so that we can adapt
as needed, leveraging our strong foundations and talented
team to deliver long-term growth.
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Milena Mondini de Focatiis
Group Chief Executive Officer
5 March 2025
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Admiral Group plc Annual Report and Accounts 2024
16
Our strategy in action
Admiral UK partners
with Google Cloud
In line with our Admiral 2.0 strategic pillar,
our UK business has partnered with Google
Cloud to host its policy management and
billing platforms.
The partnership allows the business to use Google Cloud’s data
analytics, generative artificial intelligence and machine learning
services to drive data-based decision making and produce more
personalised products and services for customers. This includes
customised offers and products that are tailored to the
customer and provides a quicker, smoother journey and service
across our digital channels.
Alan Patefield-Smith, Chief Information Officer, Admiral UK:
“Having more enriched data can help us to grow our customer
base and provide better pricing for our customers. Partnering
with Google also means colleagues can benefit from their data
analytics and cloud computing knowledge and training, which
are integral skills for driving the business forward. I’m excited
about this partnership and the projects that Google and Admiral
have underway."
Admiral Group plc Annual Report and Accounts 2024
17
Our strategy
Accelerating towards
Admiral 2.0
Strategy circle 1.svg
Overview
Our ambition is to advance our core businesses towards
Admiral 2.0, maintaining traditional strengths, while becoming
more agile, digital, and technology focused. Admiral 2.0 prioritises
our customers and uses data and advanced analytics to enhance
efficiency and improve the overall experience.
Core competencies
• Digital first
• Scaled agile
• Customer-centric innovation
• Hybrid working
• Data, advanced analytics and enhanced risk selection.
Progress in 2024:
Digital first
• Our UK operations have largely transitioned to the cloud.
This allows us to improve our customer service by leveraging
advanced, versatile technology platforms that provide
an enhanced digital experience
• We have implemented Genesys, the cloud-based contact
centre throughout our UK Insurance business. The solution
integrates multiple customer contact channels into a single
cloud-based platform. The enhancement provides a
multi-channel experience and offers a more streamlined
and efficient customer experience
• We provide customers with the ability to engage with
us in the way that suits them best. In 2024, over 55%
of customer interactions, sales, and renewals across
the Group were completed online.
Scaled agile
• All entities are fully embracing and embedding the agile method
• Our UK Insurance business has focussed on recruiting and
upskilling colleagues for roles in our Research, Service Design,
UX and Agile Coaching teams, so that it can unlock more
of the benefits of adopting scaled agile working practices
• We rolled out scaled agile working practices across each
of the value streams and continued a test, learn, and refine
cycle, alongside embedding agile coaches in each
• ConTe achieved a key milestone of completing the
decommissioning process, resulting in the optimisation
of over 85% of their systems. This ensures that their
technological foundation is more robust, efficient,
and future-ready.
Customer-centric innovation
• Admiral Money made significant improvements to the
customer onboarding journey by redesigning the onboarding
experience introducing a digital ID verification solution and
further automating more of the affordability assessment
• Veygo launched a new communication service for customers
called ‘VeyBot’. It can efficiently answer customer queries
and also summarise customer feedback. This helps the team
to design products and services that meet the changing
needs of its customers.
Hybrid working
• In line with our hybrid working model, we created additional
areas for interaction and teamwork in our offices to enhance
the value of office time. We regularly conduct Pulse surveys
to assess staff satisfaction and the effectiveness of our new
working methods, and we continue to provide support to all
colleagues regardless of their location or work arrangement.
Data, advanced analytics and enhanced
risk selection
• In the UK, we’ve completed the full roll-out of machine
learning (ML) pricing. The benefit of ML pricing is better risk
selection. As a business, we can benefit from better insights
into the data we have, which offers us the flexibility to then
decide how we approach our risk selection
• Generative AI models are enhancing our operations’ efficiency.
In the UK, the models are being used to reduce the need for
manual elements of the complaints handling process, thus
giving our colleagues more time to complete other meaningful
actions for our customers. In L’olivier, interactions with
customers (calls, emails, forms) are being transcribed
to better understand customers’ reasons for contacting
the business, and to prioritise our responses and change
processes. In Elephant, it is being integrated into the claims
centre to help the adjuster in a range of scenarios from
providing claims summaries to reviewing lawyer demands
• Europe focused on the adoption of a new data platform,
decommissioning all the legacy models in the old platform.
This suite of technologies aims to provide faster and more
comprehensive data to support decision making.
Relevant principal risks
Risks_Accelerating .png
Read more from pages 88-95
Admiral Group plc Annual Report and Accounts 2024
18
Our strategy
continued
Diversification
Strategy circle 2.svg
Overview
Diversification is key to our strategy of building a sustainable
and resilient business. We leverage our established capabilities
to build future successful propositions and support the
transition to a low-carbon economy. We invest selectively
in new opportunities that strengthen our current offerings.
Over the past decade, we have launched numerous products
including Household, Travel and Pet insurance, and a personal
lending business. Our diversified model allows us to meet our
customers’ varied and evolving needs with our suite of products.
Core competencies
• Scale up promising products
• Strengthen customer propositions
• Leverage core strengths.
Progress in 2024:
Scale up promising products
• In 2024, we achieved strong growth across all UK Beyond
Motor products (Household, Pet, and Travel), with turnover
increasing by 52% and the number of customers rising
by 27% overall to 3.1 million
• UK Household reported profits more than four times higher
than in 2023, serving nearly 2 million customers
• UK Travel finished the year with more than 900,000
customers and was profitable for the second year in a row
• UK Pet customers were 2.9 times higher than 2023
• L’olivier Motor reported increased profits in 2024 due to its
strong emphasis on risk selection, loss ratio improvements,
and cost reduction. L’olivier Household saw a 45% increase
in customers to >80,000, mainly as a result of cross-selling
to motor customers
• Admiral Money continued to build its track-record with
strong growth and profits 27% higher compared to the prior
year as prudent risk selection and long-term focus
continued. We also broadened our distribution and expanded
our proposition to point-of-sale channels
• Our Toolbox brand started 2024 by rebranding to Admiral
Business and overhauled our direct customer journeys.
We significantly expanded our reach within the broker
channel with several new partnerships going live.
Strengthen customer propositions
• We completed our first material acquisition in 2024, acquiring
the renewal rights of RSA’s home and pet business, More
Than, and started renewing policies over the summer.
As a result of the deal, we have welcomed new colleagues
across operations, pricing and claims, in addition to More Than
customers. This further strengthens our Household
proposition and meaningfully accelerates our Pet business
by widening our propositions and expanding our expertise
• Our Italian and Spanish operations have continued to refine
their broker networks, as well as partnerships in the case
of Spain, by focusing on risk management and propositions.
New products were also launched in 2024 to reach a wider
customer base in their respective markets
• We launched a new tiered product for UK Van insurance,
offering customers more flexible and tailored cover to cater
to the diverse needs and budgets of van owners and
maintain our competitive edge
• The UK Household team signed up to Flood Re’s ‘Build Back
Better’ scheme to reduce the cost and impact of future
floods by installing flood resilience measures
• We added new features and expanded what is covered
in some of our UK Travel products. Our Gold and Platinum
policies were awarded a Which? Best Buy for Travel
accreditation
• ConTe Pet developed the existing partnership with pet
store Arcaplanet by enabling a limited number of stores
to sell pet policies directly to customers. The team also
introduced product changes to cater to the various needs
of their customers.
Leverage core strengths
• We are leveraging our strengths and knowledge from
our core businesses to develop new products and ventures.
This includes applying claims and pricing strategies from
our UK motor business to our other businesses.
Relevant principal risks
Risks_Diversification.png
Read more from pages 88-95
Admiral Group plc Annual Report and Accounts 2024
19
Our strategy in action
Welcoming More
Than customers
and colleagues
In April 2024, we completed the acquisition
of the renewal rights for RSA’s direct Home
and Pet personal lines UK insurance operations
and the More Than brand.
Until then, our story had largely been one of organic growth.
However, this acquisition was a great cultural fit for the business
and closely aligned to our diversification strategy.
We know that our customers are keen to use Admiral for more
of their insurance products. This transaction allows us to scale
up our existing Home and Pet businesses, and strengthen
our expertise and capabilities in risk selection to better serve
our customers.
We have now welcomed over 280 More Than colleagues
to the Admiral family and, in the summer, we renewed our first
More Than Home and Pet customers. We continue to work with
RSA to ensure that colleagues and customers transferring to
Admiral receive a seamless transition and service, with customer
migration expected to complete by the second half of 2025.
Admiral Group plc Annual Report and Accounts 2024
20
Our strategy in action
Leading the market
with our EV offerings
We have a key role to play in shaping
a sustainable future and, as a leading motor
insurer, we are dedicated to helping drivers
make greener choices.
As one of the UK’s leading insurers of electric vehicles (EVs),
we pride ourselves on supporting customers with their transition
to EVs. We have been recognised as a Trailblazer by Defaqto
for our innovative EV insurance product, which includes additional
benefits such as out-of-charge recovery service, and wall box
cover, which we were first movers on in the sector. To help
customers make informed decisions about EV ownership,
we continue to provide insightful articles covering EV ownership
and updating information on our evolving offering.
We have launched new television and out-of-home advertising
in the UK, showcasing our commitment to making it easy
for drivers to insure their EVs. We were also the EV insurance
sponsor of the 2024 Everything Electric Shows, which took place
in three venues across England and attracted attendees open
to embracing greener alternatives.
Admiral Group plc Annual Report and Accounts 2024
21
Our strategy
continued
Strategy circle 3.svg
Evolution of Motor
Overview
Our Evolution of Motor strategic pillar is designed to adapt
our offerings in response to global mobility changes. While there
are differing perspectives on future mobility trends and their
potential impacts, we recognise that transportation methods
are evolving. This presents an exciting opportunity for the
industry, and it is imperative that we thoroughly understand
these transformations and their implications for both our
customers and our business. We are committed to supporting
the transition to electric mobility and we are paving the way
for a more sustainable future.
To stay ahead of these trends, we are employing a test-and-
learn approach, examining emerging market propositions,
and cultivating essential competencies that will be relevant
in the future.
Core competencies
• Understand changes in mobility
• Evolve our proposition
• Develop competencies for the future
Progress in 2024:
Understand changes in mobility
• Our dedicated mobility team is actively investigating how
evolving mobility trends will impact our customers and
exploring ways to adapt our products to meet changing
customer needs
• Admiral UK continues its partnership with Wayve, one of the
leading autonomous vehicle software companies in the UK,
and continues to insure Wayve's entire autonomous fleet
in the UK.
• Admiral is actively collaborating on the BSI Flex 1888
framework, which focuses on establishing minimum risk
manoeuvres for autonomous driving. This collaboration
further underscores our commitment to ensuring that
autonomous technology is safe and fit for purpose.
Evolve our proposition
• We are pleased to highlight our strong competitive position
in the electric vehicle (EV) market. Our propositions and
competitive pricing saw a significant increase in insured
electric vehicles, exceeding our expected 2024 growth
target for EVs. We were recognised by Defaqto as
a Trailblazer for our developments in EV cover, a testament
to our continuous drive to provide the best, most
forward-thinking insurance solutions for our customers
• Admiral sponsored the Everything Electric events in 2024
as both a ‘Test Driver Partner’ and ‘EV Insurance Sponsor’.
It was an important opportunity to contribute to the growth
of the electric vehicle industry and inspire individuals
to embrace a greener future.
Develop competencies for the future
• Admiral Pioneer, our business aimed at creating new
customer propositions, formed a partnership with
fleet-focused insurer Flock. This collaboration will help
Admiral Pioneer gain insights into the fleet market and learn
from Flock’s technology, while enabling Flock to support
a broader range of fleet customers and benefit from Admiral
Pioneer's insurance expertise. The Flock product is designed
to help fleet managers lower risk and improve safety through
telematics, while helping them to better manage insurance
cost too.
• Veygo, which offers pay-as-you-go and subscription
insurance, celebrated its seventh birthday in 2024, and grew
their policy count and premiums strongly in the year.
The Admiral approach to customers is deeply embedded
in Veygo, and supporting customers’ lifestyles is at the heart
of what we do
• Veygo also launched the ‘New Driver’ product, which
is a telematics-based proposition utilising smart phone
technology by monitoring customers driving actions through
the ‘New Driver’ app and giving them a score
• We are working with new-to-UK OEM carmakers and industry
bodies to ensure that parts supply and repair methods are
known, so that we are able to put damaged cars back on the
road, and keep the premiums for these cars reasonable.
Relevant principal risks
Risks_Evolution.png
Read more from pages 88-95
Admiral Group plc Annual Report and Accounts 2024
22
Key performance indicators
In order to implement, develop and measure the Group’s strategic
performance, we monitor several financial and non-financial key
performance indicators (KPIs).
Financial measures
Group profit1
Group profit before tax
£839m
Shareholder returns1
Dividend per share
192.0p
Capital position1
Solvency II ratio
203%
Non-Financial measures
Group growth2
Group customer numbers
+14%
International growth3
International customers
-3%
Diversification growth4
Beyond UK Motor customers
+13%
Customer satisfaction5
Customers likely to renew after a claim
>87%
Customer service6
Net Promoter Score
>48%
Digital progress7
Customer engagement
>54%
Great Place To Work®
GPTW ranking
6th             
(2023: 6th)
Positive impact on society8
Number of hours donated by employees
>32,500     
Net zero by 20409
Movement in carbon emissions
-47%
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1Group profit, shareholder returns and capital position include the favourable impact of the change in Ogden discount rate from -0.25% to +0.5%.
See later in the Strategic Report for further details.
2Group customer numbers - refer to the end of the report for definition and explanation.
3International Insurance numbers include Motor, Home and Pet.
4Beyond UK Motor includes all non-UK Motor product customers.
5UK Motor Customers, monthly score averaged over the year.
6Relational NPS.
7Mid-term Adjustments (UK operations) – adjustments made to a policy mid-term, by the customer.
8Volunteering hours completed by UK colleagues.
9Scope 1 and 2 (market-based) emissions decreased by 47% vs 2023 per SECR on page 64. 2023: +26% (-33% change) excluding one-off leak event.
Admiral Group plc Annual Report and Accounts 2024
23
Case study
Celebrating 20 years
on the London
Stock Exchange
This year we celebrated 20 years
as a public company.
To mark the occasion, our Group CEO, Milena Mondini, our
Chair, Mike Rogers, and several colleagues, including some
who have worked for the business for 20 years or more,
headed to the London Stock Exchange to close the market.
It was an opportunity to reflect on our incredible story 
of evolution. From starting out as a UK motor insurance
disruptor, we have become an international Group providing
a range of products and services in insurance and lending
across five different markets. We now employ more than
15,000 colleagues across eight countries who serve over
11 million customers.
Although a lot has changed since 2004, the business continues
to embrace change and innovation to deliver better outcomes
for our customers when they need us the most. The business
has also retained its unique culture, which recognises the
important role that our colleagues play in the Group’s continued
success. This was evident at the celebrations at the London
Stock Exchange, and was also brought to life by colleagues
who came together to create a commemorative video sharing
their experience of working at Admiral for two decades – and
the reasons why they choose to stay and grow their career here.
Admiral Group plc Annual Report and Accounts 2024
24
Group Chief Financial Officer’s review
Our performance
Earnings per share
216.6p
Solvency ratio (post-dividend)
203%
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Our discipline and a supportive
market have led to excellent
results in 2024
I closed my 2023 statement by saying I looked
forward to seeing improved underlying margins
feeding into reported results for 2024. These
results have duly delivered.
There are many positives and milestones: customer numbers
Statement-Geraint Jones.png
up by 1.37 million (record number and highest annual gain);
turnover up £1.3 billion to £6.1 billion (same records as
customers); highest ever investment return at £182 million;
very strong solvency position (203%) maintained despite
the significant 121.0p final dividend; some of the best results
we have delivered in UK Motor (including a material boost
from the review of the Personal Injury Discount Rate); and
some encouraging results from businesses beyond UK Motor -
over £70 million in aggregate from UK Household, Admiral
Money, L’olivier Motor and Elephant US – each delivering their
own record result.
In UK Motor Insurance, after the very challenging 2021 and
2022 underwriting years (both of which experienced severe
claims inflation), 2023 and 2024 have been more positive –
with a notably larger business (5.7 million risks at year-end
2024 v 4.9 million at year-end 2023), much higher revenue
and more positive combined ratios for both years (driven by
quite large cumulative price increases since the start of 2023).
These factors have contributed to materially higher reported
profit in 2024.
In terms of volumes, after very positive conditions in the market
at the start of the year (very large new business volumes and
very competitive Admiral prices), the environment became
tougher from Q2 onwards, with prices drifting down quite
steadily. Confidence in our loss ratios meant we were able
to reduce prices around the start of 2024 (ahead of the market)
and in H2 as well (partly to pass the benefits of the new
discount rates to our customers), but inevitably our growth
in the second half was lower than in H1.
Personal Injury Discount Rates
As we explain more fully on page 27, the Discount Rate
for all parts of the UK changed during 2024, resulting in lower
projected costs of large open claims. We estimate that in
today’s money, the total (positive) impact on profit is around
£150 million (emphasis on estimate), of which £100 million
has been recognised in 2024.
“I’m proud of our performance
in 2024. Across the Group, we
broke so many records and we
are well-placed for continued
positive results.”
Geraint Jones
Group Chief Financial Officer
Admiral Group plc Annual Report and Accounts 2024
25
Group Chief Financial Officer’s review
continued
Investments
Much larger balances (£5.2 billion at year-end ’24 v £4.2 billion
year-end ’23) due to strong revenue growth combined with
a higher yield (4.0% for 2024 v 3.3% for 2023 as the portfolio
has been reinvested over the past couple of years) led to
investment income for 2024 of £182 million, our highest ever.
Page 45 of the report sets out more details on the portfolio but
there’s been no change in our approach and only small changes
in the asset allocation. Obviously, very subject to what happens
to market interest rates and spreads, we’d expect the yield
shown in the income statement to continue to increase but
much more gradually in 2025.
Italy
In a generally very positive year, it’s fair to call out the ConTe
result as a disappointment. ConTe has been steadily profitable
since 2014, and the loss for the year (£23 million compared
to a profit in 2023 of £7 million) was obviously not in our plan.
The disappointing performance came about, partly, because
of an update to the Milan Court tables (used to determine the
cost of many injury claims), but also because of some adverse
experience, notably from some business written in 2023. 
Our management team (along with pretty much the whole
business) is very focused on restoring profitability through
various actions as soon as possible, and I’m confident
they’ll achieve this. It might well come at the cost of some
volume in the very short term, though we’re still confident
in ConTe’s prospects.
At the risk of upsetting some of our terrific management teams,
let me also call out a few other high points:
• Partly benefiting from lower than budgeted weather cost
in 2024 (but also see an improving attritional loss ratio), UK
Household Insurance reported its largest profit of £34 million.
The team has also been well focused on the migration
of the acquired More Than renewal rights portfolio as well
as organic growth as we close in fast on two million policies
• After some quite bruising years in the US, huge credit goes
to our team in Elephant Auto who have very much met their
goal of materially improving the bottom line in 2024.
The result swung impressively from a loss of £20 million
to a profit of £14 million due to a much better loss ratio and
a very solid expense outcome. And whilst acknowledging
the portfolio has shrunk as a consequence, this is a pleasing
turnaround and we’re very proud of the team’s work
• Veygo (mainly offering short-term car insurance in the UK)
is possibly the Group’s fastest growing business, reporting
revenue of £64 million in 2024 (with a very healthy three-
year CAGR of 45%) and also returned its first (albeit small
in the Group context) profit
• Our French motor insurer L’olivier reported its highest profit
of £11 million (2023: £7 million). With turnover above €260
million and a solid combined ratio, we’re positive about the
future in France
• And finally – partly stretching timeframe of the report –
I’m very happy that Admiral Money has, in early 2025, signed
its first deal to use third-party capital to grow the personal
loan business – we think this is an important part of the
model for the future
Internal capital model
As part of the process to ultimately use our own capital model
to calculate our capital requirement, Admiral entered the
pre-application phase (focused on UK car insurance) with
the two main prudential regulators in mid-2024. We received
feedback late in the year and are working to address that
as well as finalise the other aspects of the model before
submitting our full application. Lots of hard work is continuing
on this important but complex project and we’ll update
on progress in due course.
Looking ahead to 2025
We move into the new year well-placed for continued positive
results. There are one or two challenges for sure (a competitive
market in UK motor and the need to restore profit in Italy to
name two), but particularly noting the prudent claims reserves
position in all lines of business at the end of 2024, we expect
strong releases and profit to flow into 2025 and beyond.
Subject to market conditions, we’re still hoping to grow in pretty
much all our operations too.
Big thanks to all Admiral colleagues for helping to achieve these
great results!
Geraint Jones signature.png
Geraint Jones
Group Chief Financial Officer
5 March 2025
£m
2024
2023
Change vs 2023
UK Insurance
977
597
380
UK Insurance (Ogden -0.25%)
877
597
280
Europe Insurance
(20)
2
(22)
US Insurance
14
(20)
34
Admiral Money
13
10
3
Share scheme cost
(62)
(54)
(8)
Other costs including Admiral Pioneer
(83)
(92)
9
Pre-tax profit
839
443
396
Pre-tax profit (Ogden -0.25%)
739
443
296
Admiral Group plc Annual Report and Accounts 2024
26
2024 Group overview
2024 Group overview
£m
2024
2023
% change vs.
20234
Group turnover (£bn)1, 3
6.15
4.81
+28%
Net insurance and investment result
798.7
363.1
+120%
Net interest income from financial services
76.3
68.1
+12%
Other income and expenses
(9.3)
31.7
nm
Operating profit
865.7
462.9
+87%
Group profit before tax
839.2
442.8
+90%
Analysis of profit
UK Insurance
976.7
596.5
+64%
UK Insurance (Ogden -0.25%)
876.4
596.5
+47%
International Insurance
(5.3)
(18.0)
+71%
International Insurance – European Motor
(14.8)
6.1
nm
International Insurance – US Motor
14.4
(19.6)
nm
International Insurance – Other
(4.9)
(4.5)
-10%
Admiral Money
13.0
10.2
+28%
Other
(145.2)
(145.9)
+1%
Group profit before tax
839.2
442.8
+90%
Group profit before tax (Ogden -0.25%)
738.9
442.8
+67%
Key metrics
Reported Group loss ratio1, 2
55.4%
63.9%
-9pts
Reported Group expense ratio1, 2
22.0%
24.8%
-3pts
Reported Group combined ratio1, 2
77.4%
88.7%
-11pts
Reported Group combined ratio (Ogden -0.25%)
79.7%
88.7%
-9pts
Insurance service margin1, 2
16.2%
10.2%
+6pts
Customer numbers (million)1
11.10
9.73
+14%
Earnings per share
216.6
111.2
+95%
Earnings per share (Ogden -0.25%)
190.2
111.2
+71%
Dividend per share
192.0
103.0
+86%
Return on equity1
56%
36%
+20pts
Solvency ratio1
203%
200%
+3pts
1Alternative Performance Measures – refer to the end of the report for definition and explanation.
2Reported Group loss and expense ratios are calculated on a basis inclusive of all insurance revenue – this includes insurance premium revenue net of excess of loss reinsurance,
plus revenue from underwritten ancillaries and an allocation of instalment and administration fees/related commissions. See glossary for an explanation of the ratios and Appendix 1a
for a reconciliation of reported loss and expense ratios, and insurance service margin, to the financial statements.
3Alternative Performance Measures – refer to note 14 for explanation and reconciliation to statutory income statement measures.
4Definition: nm – not meaningful.
Admiral Group plc Annual Report and Accounts 2024
27
2024 Group Overview
continued
Group highlights
Admiral reports strong growth in turnover and customer
numbers and significantly higher profits in 2024. 
• Group customer numbers increased by 14% and turnover
was 28% higher, driven by UK Motor Insurance
• Group pre-tax profit was £839 million, 90% higher than 2023
as a result of a significantly improved current year
underwriting performance and continued significant prior
period releases, notably in the UK Motor Insurance business.
Excluding the impact of the change in Personal Injury
(‘Ogden’) Discount Rate (see below), pre-tax profit would
have been £739 million, 67% higher than 2023
• Strong growth in UK Household pre-tax profit to £34 million
(2023: £8 million). A relatively benign year for weather and
an improved attritional loss year resulted in a favourable
current year loss ratio
• Completion of the acquisition of the More Than direct UK
Household and Pet Insurance renewal rights; renewals
started to transfer to Admiral in the second half of 2024
• A lower overall loss in International Insurance (£5 million
v £18 million), including a profit of £14 million in US motor,
which was offset by a loss of £20 million in Europe
• Continued growth in Admiral Money profit to £13 million
(2023: £10 million) and gross loan balances (+23% year-on-
year growth).
Earnings per share
Earnings per share for 2024 were 216.6 pence (2023: 111.2
pence). The increase from 2023 is higher than the increase
in pre-tax profit above due to a slightly lower effective tax rate. 
Reflecting on a decade as Admiral Group CFO
As I look back, I’m really proud of the Company’s progress
over the last decade and it has been a privilege to be part
of such a dedicated leadership team.
Together, we have successfully delivered growth and
expansion into new products. We have also navigated
unforeseen challenges, including a global pandemic, and
I am proud of the way that we always put colleagues and
customers at the heart of our response.
Although Admiral’s story has, primarily, been one of
organic growth, I’ve had the opportunity to work with
talented colleagues on key projects such as our first
significant acquisition, More Than, and before that the sale
of our price comparison site businesses (although it was
sad to say goodbye to incredible colleagues).
I’m proud to work for Wales’ only FTSE 100 company and
of the contribution that we make to the local economy.
We support people to develop skills and find meaningful
work both inside and outside of Admiral, we support
grassroots rugby, women’s football and so much more.
I love the way that our people support the communities
where we live and work, our customers and each other.
It makes for a unique culture, which makes working here
fun. So, thank you to all my colleagues, past and present.
I look forward to seeing what we achieve together in 2025! 
Return on equity
Return on equity was 56% for 2024, 20 percentage points
higher than the 36% reported for 2023. The increase is the
result of the significantly higher post-tax profits, partially offset
by higher average equity.
Dividends
The Group’s dividend policy is to pay 65% of post-tax profits
as a normal dividend and to pay a further special dividend
comprising earnings not required to be held in the Group
for solvency, buffers or purchasing shares for the Group’s
employee share plans. No shares are expected to be
purchased for the share plans until 2026.
The Board has proposed a final dividend of 121.0 pence
per share (approximately £366.6 million) splits as follows:
• 91.4 pence per share normal dividend
• A special dividend of 29.6 pence per share.
The 2024 final dividend reflects a pay-out ratio of 87% of
second half earnings per share. 121.0 pence per share is 133%
higher than the final 2023 dividend (52.0 pence per share),
in line with the growth in earnings per share. 
The 2024 final dividend payment date is 13 June 2025,
ex-dividend date 15 May 2025, and record date 16 May 2025.
Economic background
Whilst remaining higher than its long-term average, the elevated
inflation observed over the course of 2022 and 2023 started
to reduce in 2024. Price increases implemented to mitigate the
impact of the higher inflation in the Group’s main UK business
in 2022 and 2023 have resulted in a strong current year
underwriting performance compared to the prior year.
Admiral continues to focus on medium-term profitability and
has maintained a disciplined approach to business volumes.
The Group’s customer base in UK Motor grew significantly
at the start of 2024 as a result of price reductions ahead of the
market, with market competition increasing in the second half.
The Group continues to set claims reserves cautiously.
Admiral Money has continued to grow its consumer loans book,
with a cautious approach to growth and evolving underwriting
criteria to reflect the macroeconomic environment and potential
financial impact on consumers. The business continues to hold
appropriately cautious provisions for credit losses.
Change in UK personal injury discount rate
(‘Ogden’)
The discount rate, which is used in setting personal injury
compensation (referred to throughout the report as ‘Ogden’),
changed to +0.5% across the UK in H2 2024.
In Scotland and NI, the discount rate changed from -0.75%
to +0.5%, effective from September 2024. In England and
Wales,  it was announced in December 2024 that the discount
rate would change to +0.5% from the existing -0.25% rate,
effective from 11 January 2025. The +0.5% rate is expected
to remain in place for up to the next five years.
Given the announcements were made in 2024, the Group has
updated its insurance contract liabilities to reflect the new rate.
The impact of the change in rate is an increase in 2024 pre-tax
profits of £100 million (with the ultimate profit impact estimated
to be around £150 million). 
Admiral Group plc Annual Report and Accounts 2024
28
UK Insurance review
Our performance
UK Insurance profit before tax
£977m
UK Insurance customer numbers
8.8 million
UK Insurance has performed
strongly and we have taken the
opportunity to grow
10995116279075
10995116279086
It is a great privilege and responsibility to be
appointed UK Insurance CEO and I’m fortunate
that in writing this statement, I’m able to reflect
on the UK Insurance teams’ many achievements
in 2024, a very positive year. Our disciplined
approach to managing uncertainty and the motor
market cycle, alongside enhancements to
propositions, pricing, claims and customer
experience, helped us to welcome 1.4 million new
customers, sustain our market-leading combined
ratio and deliver £977 million profit before tax,
while improving our Trustpilot customer rating
to an industry-leading 4.6.
UK insurance Alistair.png
In Motor, price is the primary customer consideration. This was
especially true in 2024 after the recent sustained period of
elevated claims inflation drove market premiums up and motor
insurance affordability made the headlines. Our discipline
throughout 2022 and 2023, where we increased prices ahead
of competitors and sacrificed growth, paid off in 2024. We were
able to start reducing rates in early 2024, ahead of the market,
and our competitive prices resulted in a 15% increase in motor
policies to a record 5.7 million. This was achieved whilst
maintaining strong service levels and repair times due to the
strength of our repair network partners. UK Motor turnover
grew by £1.1 billion in 2024 to £4.5 billion and profit before tax
increased to £955 million, driven by our strong performance
as well as a c.£100 million reserving benefit from the recent
change to the Ogden discount rate, which impacts large
personal injury claims. We passed the benefits from the new
Ogden rate going forward to our customers by lowering prices
accordingly the day after the announcement in December.
“Our UK Insurance business
has delivered a strong set
of results demonstrating
our competitive advantage
in Motor, the value of
our customer focus and
progress within our other
lines of business.”
Alistair Hargreaves
CEO, UK Insurance
Admiral_Group_Logo.png
Admiral Group plc Annual Report and Accounts 2024
29
UK Insurance review
continued
Beyond Motor, our strong MultiCover proposition supported
further growth in our Household insurance business, despite
continued rate increases offsetting claims inflation.
The integration of the ‘More Than’ Pet and Home renewal rights
from Royal Sun Alliance (RSA) is going well. The customer
migration runs over 12 months and started in the summer of
2024. This has given a boost to our Household business, which
finished the year with just under two million customers, and led
to a significant acceleration for Pet with more than 200,000
policies. The renewal process will continue through to the
summer of 2025. Our Travel business grew both new business
and renewals with strong underwriting discipline leading to a
small but growing profit.
We continue to invest to further improve customer journeys
and maintain our market-leading insurance expertise. In 2024,
we drove improvements in speed, both in feature development
sprints and deploying machine-learning models across pricing,
claims, and customer experience. This is supported by the fact
that over 80% of our estate is now cloud-based. We are pleased
with the continued growth of our digital experience, which
enables customers to engage with us in the most convenient
way for them. We give customers the choice
to self-serve digitally, and half of mid-term changes and a third
of claims notifications are now made this way. In Motor, our
investment in customer proposition and claims is supporting
strong growth in insured electric vehicles where we continue
to be one of the industry leaders with a high teens market share.
The driving force of our business is our culture and people,
we were pleased to, again, have been listed in the Top 10
for both Great Places to Work and for Great Places to Work
for Women. One element of our culture, which I’m particularly
proud of, is our continued support of our communities. In 2024,
our colleagues spent over 30,000 hours helping over a thousand
people to secure work or to gain new skills with funding and
support for our community partners.
2024 has been a remarkable year for UK Insurance, and
by delivering for our customers we’ve taken the opportunity
to grow. Looking ahead, some uncertainty remains around
near-term market dynamics, but our strong team and
fundamentals give us a great platform to continue to provide
value, ease and trust for customers and in doing so make the
most of opportunities for sustainable profitable growth in 2025
and beyond.
UK Insurance financial performance
£m
2024
2023
Turnover1 2
5,108.5
3,776.0
Total premiums written 1
4,745.2
3,502.6
Insurance revenue
3,873.4
2,596.9
Underwriting result1
764.4
383.4
Net investment income
70.5
55.2
Co-insurer profit commission and net other revenue
141.8
157.9
UK Insurance profit before tax1
976.7
596.5
Segment result: UK Insurance profit before tax 1
£m
2024
2023
Motor
955.1
593.3
Motor (Ogden -0.25%)
854.8
593.3
Household
34.1
7.9
Travel and Pet
(12.5)
(4.7)
UK Insurance profit before tax
976.7
596.5
UK Insurance profit before tax (Ogden -0.25%)
876.4
596.5
Segment performance indicators1
2024
2023
Vehicles insured
5.69
4.94
Households insured
1.97
1.76
Travel and Pet policies
1.14
0.69
Total UK Insurance customers
8.80
7.39
1Alternative Performance Measures – refer to the end of this report for definition and explanation.
2Alternative Performance Measures – refer to note 14 for explanation and reconciliation to statutory income statement measures.
Admiral Group plc Annual Report and Accounts 2024
30
UK Insurance review
continued
Highlights for the UK Insurance business include:
• In UK Motor:
– A 15% increase in customer numbers, driven by reducing
prices ahead of the market around the start of the year,
after a period of prices moving higher to address significant
claims cost inflation in the past few years
– The increase in customers, combined with higher premiums,
resulted in a 33% rise in turnover, and a 50% rise in
insurance revenue
– Profit of £955 million was 61% higher than 2023, driven
by the resulting improved current year combined ratio
and continued positive reserve releases, as well as the
favourable impact of the Ogden Discount Rate change.
Excluding the Ogden change, profit would have been £855
million, 44% higher than 2023.
• In UK Household:
– An increase in customer numbers of 12% to 1.97 million
(31 December 2023: 1.76 million). Growth continued,
particularly in the second half of 2024 when rate increases
in response to inflation eased, resulting in increased
competitiveness
– Profit grew strongly to £34 million (2023: £8 million)
as a result of a positive current period combined ratio
driven by higher earned premiums, a relatively benign year
for severe weather, an improved attritional loss year plus
continued prior period releases.
UK Insurance highlights.png
• In UK Travel and Pet Insurance:
– Both business lines continued to grow their customer base
and turnover
– Travel delivers second consecutive annual profit, whilst
there was an increased loss in Pet due to both integration
costs (primarily IT) in relation to the More Than acquisition
of £6.3 million, and the premium written as a result of More
Than renewals not yet earning through.
• More Than acquisition:
– In March 2024, the Group successfully completed its first
significant acquisition, of the direct UK Household and Pet
insurance renewal rights of the More Than brand and
the transfer of over 280 colleagues from RSA. Liabilities
relating to existing policies and those up to renewal remain
with RSA 
– The integration of the business is now largely complete,
with renewals having commenced in July 2024 for
Household and in August 2024 for Pet 
– The 2024 UK Insurance results, therefore, include an impact
of £11.9 million of integration costs in relation to the
acquired business. See note 13 to the financial statements
for further details.
Admiral Group plc Annual Report and Accounts 2024
31
UK Insurance review
continued
UK Motor Insurance financial review
UK Motor profit in 2024 was £955 million, 61% higher than 2023. Excluding the impact of the change in the Ogden Discount Rate,
UK Motor profit was £855 million, 44% higher than 2023. This increase is the result of an improved current period combined ratio
(driven by higher average premiums earning through), along with continued positive development of prior year claims, partly offset
by recognising the reinsurer’s share of releases on underwriting years 2021-2023.
In addition, favourable net investment income is driven by higher yields and investment balances. 
£m
2024
2023
Turnover1
4,495.9
3,371.8
Total premiums written1, 2
4,157.7
3,118.2
Insurance premium revenue1
3,160.5
2,115.4
Other insurance revenue
209.0
134.8
Insurance revenue
3,369.5
2,250.2
Insurance revenue net of XoL2, 4
3,271.4
2,188.6
Insurance expenses1, 2, 3
(586.8)
(451.2)
Insurance claims incurred net of XoL2, 4
(2,078.1)
(1,729.0)
Insurance claims releases net of XoL2, 4
374.6
392.8
Quota share reinsurance result2, 3
(228.8)
(16.8)
Movement in onerous loss component net of reinsurance2
1.1
4.1
Underwriting result2
753.4
388.5
Investment income
150.0
111.8
Net insurance finance expenses
(83.4)
(58.2)
Net investment income
66.6
53.6
Co-insurer profit commission
53.3
76.5
Other net income
81.8
74.7
UK Motor Insurance profit before tax1
955.1
593.3
UK Motor Insurance profit before tax (Ogden -0.25%)
854.8
593.3
Segment performance indicators
2024
2023
Reported Motor loss ratio1, 2, 5
52.1%
61.1%
Reported Motor expense ratio1, 2, 5
17.9%
20.6%
Reported Motor combined ratio1, 2, 5
70.0%
81.7%
Reported Motor combined ratio (Ogden -0.25%)2
73.2%
81.7%
Reported Motor Insurance service margin1, 2, 5
23.0%
17.7%
Core motor loss ratio before releases1, 2, 6
69.2%
87.0%
Core motor claims releases1, 2, 6
(12.7)%
(20.2)%
Core motor loss ratio1, 2, 6
56.5%
66.8%
Core motor expense ratio1, 2, 6
18.2%
21.4%
Core motor combined ratio1, 6
74.7%
88.2%
Core motor written expense ratio1, 7
16.8%
17.8%
Vehicles insured at period end1
5.69m
4.94m
Other revenue per vehicle8
£76
£62
1Alternative Performance Measures – refer to the end of this report for definition and explanation.
2Alternative Performance Measures – refer to Appendix 1b for explanation and reconciliation to statutory income statement measures.
3Insurance expenses and quota share reinsurance result excludes gross and reinsurers’ share of share scheme charges respectively. Share scheme charges reported in Other Group Items.
4XoL refers to Excess of Loss (non-proportional) reinsurance; see glossary at end of report for further information.
5Reported Motor loss ratio, expense ratio and insurance service margin are all net of XoL, as defined in the glossary. Reconciliation in Appendix 1b.
6Core Motor loss ratio, expense ratio and combined ratio are all net of XoL, as defined in the glossary. Reconciliation in Appendix 1b.
7Core motor written expense ratio defined as insurance expenses divided by core product written insurance premium, net of excess of loss reinsurance.
8Other revenue per vehicle includes other revenue included within insurance revenue. See ‘Other Revenue’ section for explanation.
Admiral Group plc Annual Report and Accounts 2024
32
UK Insurance review
continued
Claims
Claims inflation continues to show signs of gradually reducing,
with Admiral's current estimate of average claims cost inflation
for full-year 2024 (compared to full-year 2023) being
approximately in mid-to-high single-digits (2023: around 10%).
Despite the significant growth in policy base, a small reduction
in claims frequency has been observed.
As usual, the longer-term impacts of inflation on bodily injury
claims remain uncertain. Admiral did not observe material
changes in inflation for bodily injury claims settled in 2024,
when compared to 2023. We maintain a prudent allowance
held in the best estimate reserve to reflect potential impacts
of higher than historic levels of future wage inflation on certain
elements of large bodily injury claims reserves.
There is still uncertainty within motor claims across the market
arising from inflation, and future developments relating
to both whiplash reforms, and regulatory developments.
As noted above, the new Ogden discount rate of +0.5%,
as announced in December 2024, has been used within the
best estimate reserves.
In line with the FCA’s multi-firm review into total loss claims
valuations, Admiral is conducting a review of its total loss
and related processes, which considers current practice and
customer outcomes in the recent past. The work is in the
process of being finalised, with the conclusion that some action
is required.
Although uncertainty remains over the final position, when fully
concluded, the cost is not expected to have a significant
impact on the financial statements. Taking account of current
information, appropriate amounts are included within insurance
contract liabilities at 31 December.
Admiral continues to hold a significant and prudent risk
adjustment above best estimate reserves, with an increase
in the confidence level to the 95th percentile (93rd percentile
at 31 December 2023). When setting the level of risk
adjustment due consideration has been given to the strong
releases in the best estimate, inherent uncertainty in bodily
injury claims, growth in the UK motor book along with an
assessment of other external factors. There has been a slight
reduction in the volatility of the reserve risk distribution from
which the percentile is selected as a result of the strong
reserve releases following the change in Ogden discount rate;
otherwise it has not changed significantly since 2023. 
The core motor loss ratio has reduced to 56.5% (2023: 66.8%)
with offsetting movements in the current period loss ratio and
prior year reserve releases, as follows:
Core Motor loss ratio1 2
Core motor
loss ratio
before
releases
Impact of
claims
reserve
releases
Core motor
loss ratio
FY 2023
87.0%
(20.2%)
66.8%
Change in current period loss
ratio excluding Ogden
(16.9%)
–
(16.9%)
Change in claims reserve
release excluding Ogden
–
10.2%
10.2%
Impact of Ogden discount
rate change
(0.9%)
(2.7%)
(3.6%)
FY 2024
69.2%
(12.7%)
56.5%
1    Reported Motor loss ratio shown on a discounted basis, excluding unwind
of finance expenses
2  Alternative Performance Measures – refer to Appendix 1b for explanation
and reconciliation to statutory income statement measures.
The rate increases that were implemented over the course
of 2022 and 2023, as well as favourable frequency in 2024, have
driven a significant improvement in the current period loss ratio.
The benefit from prior-period releases includes both the
positive development of the best estimate reserve and the
unwind of risk adjustment for prior-period claims. The absolute
value of releases is consistent with 2023, with higher releases
on the best estimate arising from significant favourable
development, along with the benefit from the Ogden rate
change, being offset by lower releases of risk adjustment
given the increase in risk adjustment percentile. The lower
release percentage is a result of significantly increased
earned premiums.
Quota share reinsurance
Admiral’s quota share reinsurance result reflects the net
movement on ceded premiums, reinsurer margins and
expected recoveries (claims and expenses, excluding share
scheme charges) for underwriting years on which quota share
reinsurance is in place (2021 underwriting year onwards).
The ‘Group capital structure’ section sets out further details
on Admiral’s UK Motor quota share arrangements.
Quota share reinsurance result1
£m
31 December
2024
31 December
2023
Quota share
claims asset
31 December
2024
2021 and prior
(27.2)
(55.3)
15.0
2022
(84.0)
8.2
62.8
2023
(81.0)
30.3
–
2024
(36.6)
–
–
Total
(228.8)
(16.8)
77.8
1Quota share result in underwriting year 2024 includes an £11.1 million re-charge
for the reinsurer’s assumed share scheme recoveries, out of other Group costs in line
with prior period (2023: £11.1 million)
The significantly increased quota share charge in 2024 is the
result of:
• Favourable developments in the underlying loss ratios
on underwriting years 2021-2023 resulting in the reversal
of quota share recoveries previously recognised
• A charge rather than credit on the most recent underwriting
year (2024), as the booked combined ratio is below 100%,
which means no quota share recoveries are recognised.
Co-insurer profit commission
Co-insurer profit commission of £53.3 million is lower than
in 2023 (£76.5 million).
In 2024, a significant proportion of claims releases are on
underwriting years 2021 and 2022, which reduce the losses
on those years but do not result in profit commission, given
the years are not yet profitable with booked combined ratios
of over 100%. 
In addition, the losses on those years are carried forward in line
with contractual clauses, suppressing the recognition of profit
commission on underwriting years 2023 and also, to a large
extent, 2024. 
Admiral Group plc Annual Report and Accounts 2024
33
UK Insurance review
continued
Net investment income
Net investment income increased to £66.6 million from
£53.6 million, benefiting from higher investment income, which
was largely offset by increased net insurance finance expenses.
Investment income grew by 34% to £150.0 million (2023: £111.8
million), as a result of increased investment balances (due to
strong growth in premium collected) and higher average return.
Further information on the Group’s investment portfolio and the
income generated in the period is provided later in the report.
Net insurance finance expense reflects the unwind of the
discounting benefit recognised when claims are initially incurred.
The expense has increased notably in 2024 (£83.4 million;
2023 £58.2 million) as a result of the unwind of discounting
benefit recognised from early 2022 onwards, when there
was a significant increase in risk-free interest rates.
A significant proportion of the insurance finance expense
in 2024 relates to claims incurred during 2022 and 2023.
Other revenue
Admiral generates other revenue from a portfolio of insurance
products that complement the core motor insurance product,
and also fees generated over the life of the policy. The most
material contributors to other revenue continue to be:
• Profit earned from Motor policy upgrade products
underwritten by Admiral, including breakdown, car hire
and personal injury covers
• Revenue from other insurance products, not underwritten
by Admiral
• Fees such as administration and cancellation fees
• Interest charged to customers paying for cover
in instalments.
Under IFRS 17, income from underwritten ancillaries and
an allocation of instalment income and administration fees
in line with Admiral’s gross share of the core motor product
premium, are included within Insurance revenue in the
underwriting result. The remaining income from instalment
income and fees, as well as income from other non-underwritten
ancillary products is presented in other net income.
Overall contribution increased to £321.8 million (2023: £247.3
million), primarily due to the growth in customer numbers
in the past year. In particular, more customers along with
the increased proportion of customers choosing to pay via
monthly payments in the prior period has resulted in higher
earned instalment income.
Other revenue was equivalent to £76 per vehicle (gross of costs),
with net other revenue per vehicle at £61 per vehicle, both
up compared to 2023 in line with the increased contribution.
Other revenue
UK Motor Insurance other revenue
2024
£m
Within
underwriting
result
Other net
income
Total
Premium and revenue from additional products and fees1
139.8
83.4
223.2
Instalment income and administration fees2
209.0
45.7
254.7
Other revenue
348.8
129.1
477.9
Claims costs and allocated expenses3
(108.8)
(47.3)
(156.1)
Net other revenue
240.0
81.8
321.8
Other revenue per vehicle4
£76
Other revenue per vehicle net of internal costs
£61
2023
£m
Within
underwriting
result
Other net
income
Total
Premium and revenue from additional products and fees1
107.8
89.4
197.2
Instalment income and administration fees2
134.8
29.3
164.1
Other revenue
242.6
118.7
361.3
Claims costs and allocated expenses3
(70.0)
(44.0)
(114.0)
Net other revenue
172.6
74.7
247.3
Other revenue per vehicle4
£62
Other revenue per vehicle net of internal costs
£52
1Premium from underwritten ancillaries is recognised within the insurance service result (underwriting result). Other income from non-underwritten products and fees is included within
other net income, below the underwriting result but part of the insurance segment result.
2Instalment income and administration fees are recognised within insurance revenue (% aligned to Admiral’s share of premium, net of co-insurance) and other revenue
(% aligned to co-insurance share of premium).
3Claims costs relating to underwritten ancillary products, along with an allocation of related expenses, are recognised within the insurance result. Expenses allocated to the generation
of revenue from non-underwritten ancillaries are recognised within other net income.
4Other revenue per vehicle (before internal costs) divided by average active vehicles, rolling 12-month basis. Presented here based on all ancillary income.
Admiral Group plc Annual Report and Accounts 2024
34
UK Insurance review
continued
UK Household Insurance financial review
£m
2024
2023
Turnover1
475.4
338.6
Total premiums written1
450.3
318.8
Insurance revenue
399.6
292.8
Insurance revenue net of XoL1
376.4
275.3
Insurance expenses1
(102.9)
(80.9)
Insurance claims incurred net of XoL1
(225.7)
(199.8)
Insurance claims releases net of XoL1
37.0
6.4
Underwriting result, net of XoL reinsurance1
84.8
1.0
Quota share reinsurance result1, 3
(61.2)
(1.4)
Underwriting result1
23.6
(0.4)
Net insurance investment income
3.9
1.6
Other income
6.6
6.7
UK Household Insurance profit before tax1
34.1
7.9
Segment performance indicators
2024
2023
Reported Household loss ratio1, 2
50.1%
70.2%
Reported Household expense ratio1, 2
27.3%
29.4%
Reported Household combined ratio1, 2
77.4%
99.6%
Household insurance service margin2
6.3%
(0.1)%
Household loss ratio before releases2
60.0%
72.6%
(Favourable) impact of weather on reported loss ratio vs budget4
(7.9)%
(3.8)%
Households insured at period end
1.97m
1.76m
1Alternative Performance Measures – refer to the end of this report for definition and explanation
2Alternative Performance Measures – refer to Appendix 1c for explanation and reconciliation to statutory income statement measures.
3Quota share reinsurance result within the segment result excludes reinsurers’ share of share scheme costs.
4Weather impact, being the combined impact of claims related to freeze, flood, storm and subsidence, is disclosed relative to a budget expectation.
The 2023 impact has been restated to align.
The UK Household Insurance business reported strong growth
in turnover of 40% to £475.4 million (2023: £338.6 million).
The number of homes insured increased by 12% to 1.97 million
(31 December 2023: 1.76 million), despite price increases made
by Admiral during 2024, in particular the first half, to reflect
continued higher claims inflation. Competitors also increased
prices, with Admiral’s competitiveness in price comparison (the
main distribution channel for new policies) relatively unchanged. 
Profit before tax for the period was £34.1 million
(2023: £7.9 million), the large increase arising as a result of: 
• Strong prior year reserve releases of £37.0 million (2023:
£6.4 million), reducing the loss ratio by 9.9 percentage points
(2023:2.4 percentage points). These releases primarily reflect
the unwind of best estimate reserves in relation to the freeze
events in late 2022, along with some impact from the unwind
of storm events in late 2023
• A lower current period combined ratio, with both a lower
loss ratio and expense ratio driven in large part by higher
earned premiums. 
The reported loss ratio excluding releases decreased
significantly to 60.0% (2023: 72.6%) as a result of the higher
earned premiums, along with relatively benign weather
and a reduction in claims frequency.
Weather was relatively benign in both periods. While there
was some impact of freeze, flood and storm events, this was
considered below a budget expectation, creating a net benefit
to the current period loss ratio of just under 8% (2023: 3.8%).
Despite growth in absolute expenses during the year as the
business grew, Admiral’s expense ratio improved to 27.3%
(from 29.4%), benefiting from the larger portfolio and the
earning through of higher average premiums. Customer growth
leading to higher acquisition costs and IT integration costs
relating to the More Than acquisition were the primary drivers
of the increase in absolute costs.
The quota share result for the period (a loss of £61.2 million
compared to £1.4 million) arises as a result of the proportional
sharing of the positive underlying underwriting result, with only
a small amount of profit commission recognised to date
on underwriting year 2024, due to a relatively cautious view
of the written combined ratio.
Admiral Group plc Annual Report and Accounts 2024
35
Case study
Case study
Group growth
We reached a major milestone by surpassing
11 million customers across the Group, with
growth in most of our markets.
This success highlights our ability to continuously evolve and
remain agile in challenging market conditions, while staying
true to our core value of doing what is right for our customers.
In France, we now provide cover for over 500,000 customers –
a significant achievement. Since launching, L'olivier has
disrupted the car insurance market with competitive prices
and a strong focus on customer experience. The growth in our
French customer base is a testament to this. Admiral Seguros
has also shown impressive growth, expanding its market share
and improving customer satisfaction.
These achievements reflect the successful execution of our
diversification strategy. We look forward to looking after even
more customers and evolving our offering across the Group
to meet their needs.
Customer feedback
from Nitin
Admiral Group is a place where you can make
a difference. We prioritise doing what’s right
for our customers and our people.
Within our contact centres, our colleagues are empowered
to take action that they believe could make a positive impact
on our customers. Our customer-facing teams are always
helping customers to get the most out of their policies and
supporting them through the claims process.
One of our customer-facing colleagues, Nicola, received the
following feedback from a customer following his motor claim:
“I would like to express my heartfelt thank you to Nicola.
She put us at the forefront of any decision making and
communications that she carried out. She is simply the best –
an asset to your organisation and there aren’t many people
like her in this world.”
Our brilliant customer service is also reflected in our industry-
leading TrustPilot score of 4.6.
Admiral Group plc Annual Report and Accounts 2024
36
Case study
Creating safer
roads for all
In the UK, somebody is killed or seriously injured
on roads every 16 minutes, with 32% of
casualties involving at least one young male
driver1. These crashes don’t just have
catastrophic consequences for those directly
involved – they also devastate the lives of their
loved ones.
We want to help more people to look after their future and, as
a leading motor insurer, this means creating safer roads for all.
This autumn, we launched our nationwide hard-hitting ‘Words
To Live By’ campaign to remind people of the impacts of
dangerous driving and empower parents and young people to
take road safety seriously, and change their driving behaviour.
Our research found that, although 75% of young people are
told to ‘drive safely’ before getting in their car, the phrase had
lost its meaning because it is said so frequently. Our ‘Words To
Live By’ campaign was created to encourage motorists
to really consider these words before getting into their car,
to adopt safer driving habits, and ultimately, save more lives.
We created a video highlighting the devastating impact of
reckless driving on young people and their families, which has
been shown in more than 150 cinemas in the UK.
To amplify this important campaign, we partnered with
brain injury charity, Headway, to share real-life stories from
survivors of serious road collisions with young drivers.
We also worked with a psychotherapist to create a series
of conversation starters, tips and advice to help parents
and young drivers have deeper and more meaningful
conversations about what it really means to drive safely,
and wrote to MPs in constituencies with the highest claims
frequencies by young people to share the campaign video
and discuss how we could work together to tackle this issue.
We will continue to promote the campaign and the need
for safer roads in 2025.
Promoting road safety is a focus for us across our markets.
In Italy, we have partnered with our Legal Protection provider,
Allgemeine Rechtsschutz-Versicherungs-AG (ARAG), to raise
awareness of dangerous driving behaviours. We attended
roundtables on road safety with ARAG and Konsumer Italia,
an Association for the Defence of Consumers and the
Environment, and, ahead of the new Italian Highway Code
coming into effect, we created social media adverts, which
promoted safer driving habits. In the USA, we have a long-
term partnership with Project Yellow Light, a scholarship
competition designed to raise awareness of the dangers
of distracted driving among young drivers. The competition
sees students challenged to create video, radio and billboard
adverts that encourage their peers to develop and embrace
safer driving habits.
1  Department for Transport.
Admiral Group plc Annual Report and Accounts 2024
37
International Insurance review
Our performance
International Insurance profit before tax
£-5m
International Insurance customer numbers
2.1 million
We continue to prioritise margin
and customer satisfaction across
our markets
14293651162403
14293651162414
In 2024 we continued to prioritise margin over
growth, maintaining our pricing discipline which
resulted in an improved performance in most
of our markets.
Market conditions improved in France and Spain, with
premiums finally increasing to reflect continued claims inflation.
Having increased prices ahead of competitors in 2023,
the businesses saw their competitiveness improve resulting
in an improved performance year-on-year.
On 1st July, Julien Bouverot was appointed CEO of L’olivier
which now insures 453,000 motorists and 83,000 homes.
In 2024 the business has increased its turnover and delivered
a double-digit profit. The team is also investing in its technological
capabilities to make it easier to provide multiproduct propositions
for its growing customer base.
In Spain, Admiral Seguros is making good progress against its
distribution diversification strategy which aims to make it easier
for customers to access insurance through the channels that
best suit them. This approach is yielding positive results with
a lower expense ratio despite the investment into new channels.
Inter Insurance Costantino.png
2024 was more challenging for ConTe, partly, driven by the
update to the Milan Court tables which determine the cost
of most bodily injury claims, inflation and because of some
adverse experience, notably from some business written in 2023.
The management team has already taken material pricing
and other remediating actions to restore ConTe to profitability.
Our team in the US has achieved a great turnaround. Elephant
delivered a profit of £14 million due to management's focus
on improving the book mix and cost discipline. The business
experienced a shrinkage of book size which is now stabilising.
We are proud of the team’s hard work. As previously mentioned,
we’ve been assessing the strategic options for Elephant.
We have made good progress and are in exclusive talks with
a potential acquirer.
Our colleagues’ commitment and dedication to our customers
and each other is unmatched, which is why we continue to see
positive customer satisfaction scores across the board and
our businesses are recognised as Great Places to Work.
The combination of our colleagues and management teams’
strategic focus and expertise mean that we are well-placed
for a positive 2025.
“The combination of our
colleagues and management
teams’ strategic focus and
expertise mean that we are
well-placed for a positive 2025.”
Costantino Moretti
CEO, International Insurance
Admiral Group plc Annual Report and Accounts 2024
38
International Insurance review
continued
France
Italy
Julien Bouverot
CEO L’olivier
Antonio Bagetta
CEO, ConTe
2024 was my first year as CEO of L’olivier and I’m pleased
to say that the business performed well in a French property
and casualty insurance market where prices have finally
increased after two years of relative stability, despite
continued claims cost inflation.
In Motor, the disciplined strategy to raise prices ahead of
competitors in 2023; double down on operational efficiencies;
and optimise acquisition strategies has borne fruit. With a solid
90% written combined ratio, a 4% increase in turnover and an
earned profit of £11 million, L’olivier has reached its 2024
objectives and is well positioned to achieve more. We now
insure more than 450,000 customers (8% vs. prior year) and
turnover grew to £224 million (2% vs. prior year).
In Household, the policy base grew by 45% (albeit from a low
base) to reach 80,000 customers as the team is executing
a prudent but sustainable growth strategy. We are investing
in our technology to provide our customers with a more
integrated multi-product offering.
I am grateful to the team for their commitment to our success.
2024 was a challenging year for the Italian market due to
competition and inflation, including sharp increases to the
bodily injury settlement rates (Milan Court tables 1).
This, alongside some portfolio underperformance, led to
a disappointing year for ConTe. As a result, we strongly
prioritised margins and rate increases, portfolio pruning, and
rigorous cost management. This led to a c.10% increase in
average premium, an improved reported expense ratio despite
lower volumes, with further benefits from remediating actions
expected to earn through in 2025.
Despite these headwinds, we continued to deliver an excellent
service for our 984,000 customers. Thanks to our customer
focus, our NPS and Trustpilot ratings are at the top end
of the market. 
Our inclusive culture earned us third place in GPTW with
an 87% Trust Index for the second year.
Looking at 2025, we will continue to focus on margins and
profit recovery, while embracing innovation and collaboration
to seize new opportunities together.
Spain
US
Sarah Harris
CEO, Admiral Seguros
Alberto Schiavon
CEO, Elephant
During 2024, Admiral Seguros focused on margins and
discipline, whilst continuing to offer customers quality products
and making good progress in new channel investments.
Following strong pricing action ahead of the market in 2023,
our competitiveness improved this year as the market increased
prices in response to persistent inflation. Average premiums
were higher than 2023 as rate increases earned through.
We also remained focused on cost management and delivered
a lower expense ratio despite investments in distribution.
Our direct channel delivered a good performance and we
started to see positive impacts from targeting higher margin
segments in the broker channel. Our partnership with ING
celebrated its first anniversary with good progress to date.
I am thankful to all the team for their hard work and
enthusiasm with 2024 seeing Admiral Seguros, once again,
voted 2nd Great Place to Work for its size. I look forward
to building on the successes together during 2025.
In 2024, we are pleased to deliver a profit of £14 million
on the back of a 20 point-improvement in our combined ratio2,
outperforming market performance for 2024.
These results were achieved through a continued focus on
rate adequacy and careful expense management. Whilst
turnover decreased 26% year-on-year due to the competitive
acquisition landscape and intentional actions to improve book
mix, we maintain our customer focus and have improved our
Trustpilot score. Top line trends started to improve in late
2024, which brings hope for a more stable book to accompany
continued profits in 2025.
If there is one word to describe Elephant and its people
it would be resilient. It makes me incredibly proud to see all the
tremendous hard work every person has contributed toward
Elephant’s 2024 success.
Conte.it_logo_CMYK.svg
Elephant-Auto-USA-logo.png
LogoLolivierAssurance.svg
Admiral_Seguros.png
International Italy.png
L'olivier CEO.png
International Spain.png
International US.png
1    Bodily injury rating tables in Italy which refer to the compensation associated with a given degree of permanent disability
2  Earned whole account basis net of XoL
Admiral Group plc Annual Report and Accounts 2024
39
International Insurance review
continued
International Insurance financial performance
£m
2024
2023
Turnover1
840.0
894.9
Total premiums written1
785.7
840.0
Insurance revenue
829.5
842.6
Insurance revenue net of XoL1
794.2
811.8
Insurance expenses1
(236.5)
(249.4)
Insurance claims net of XoL1
(564.5)
(565.2)
Underwriting result, net of XoL1
(6.8)
(2.8)
Quota share reinsurance result1, 3
(4.1)
(22.1)
Movement in net onerous loss component
0.4
0.6
Underwriting result1
(10.5)
(24.3)
Net investment income
6.1
4.3
Net other revenue
(0.9)
2.0
International Insurance loss before tax1, 4
(5.3)
(18.0)
Segment performance indicators
£m
2024
2023
Loss ratio1, 2
71.1%
69.6%
Expense ratio1, 2
29.8%
30.7%
Combined ratio1
100.9%
100.3%
Insurance service margin1, 2
(1.3%)
(3.0%)
Customers insured at period end1
2.10m
2.17m
International Motor Insurance - Geographical analysis1
2024
Spain
Italy
France
US
Total
Vehicles insured at period end
0.45m
0.96m
0.45m
0.14m
2.00m
Turnover (£m)
131.8
269.1
224.0
200.1
825.0
2023
Spain
Italy
France
US
Total
Vehicles insured at period end
0.45m
1.04m
0.42m
0.19m
2.10m
Turnover (£m)
121.8
272.4
219.1
271.2
884.5
Segment result: International Insurance result1
£m
2024
2023
European Motor
(14.8)
6.1
Spain Motor
(3.1)
(8.6)
Italy Motor
(22.8)
7.3
France Motor
11.1
7.4
US Motor
14.4
(19.6)
Other
(4.9)
(4.5)
International Insurance loss before tax
(5.3)
(18.0)
1Alternative Performance Measures – refer to the end of this report for definition and explanation.
2Alternative Performance Measures – refer to Appendix 1d for explanation and reconciliation to statutory income statement measures.
3Quota share reinsurance result within the segment result excludes reinsurers’ share of share scheme costs.
4Costs related to the settlement of a historic Italian tax matter during 2023 are excluded from the International Insurance result and presented within Group other costs, given that these
are not reflective of the underlying trading performance of the International Insurance business.
Admiral Group plc Annual Report and Accounts 2024
40
International Insurance review
continued
Admiral’s International insurance businesses reported a 3%
reduction in customer numbers at 31 December 2024 to 2.10
million (31 December 2023: 2.17 million), as a result of a
continued reduction in the US, and a reduction in Italy following
pricing action taken to prioritise margin over growth. Turnover
fell to £840.0 million (2023: £894.9 million), driven by a
reduction in the US, partially offset by higher turnover in the
European businesses as a result of higher average premiums.
The combined result for the segment improved by around
£13 million to a loss of £5.3 million (2023: loss of £18.0 million),
driven by a significantly improved result in the US, which was
partly offset by the disappointing Italian result.
The combined ratio increased slightly to 100.9% (2023: 100.3%).
An improved expense ratio (30% v 31%) was offset by a higher
loss ratio, which was impacted by higher Italian and lower US
and other European loss ratios.
The European insurance operations in Spain, Italy and France
insured 1.86 million vehicles at 31 December 2024 – 2% lower
than a year earlier (31 December 2023: 1.91 million). Motor
turnover was up 2% to £624.9 million (2023: £613.3 million),
driven by continued price increases following continued focus
on improving loss ratios.
The combined European Motor loss was £14.8 million
(2023: £6.1 million), with the combined ratio increasing to
105.0% (2023: 95.4%) largely a result of the loss of £22.8
million recognised in ConTe in Italy (2023: profit of £7.3 million).
ConTe’s performance in 2024 was adversely impacted by both
the significant increase to the settlement inflation rate for large
bodily injury claims provided by the court of Milan (known as the
Milan tables) which had an impact of approximately £16 million,
and also the impact of continued inflation on claims settlement
costs, particularly on business written in 2023. Action has been
taken with strong price increases to improve the loss ratio and
restore profitability. Vehicles insured decreased by 7% to 0.96
million (2023: 1.04 million) as a result of the pricing action,
with turnover decreasing by 1% to £269.1 million (2023:
£272.4 million).
L’olivier assurance (France) continued to grow, with the
customer base increasing by 8% to 0.45 million (31 December
2023: 0.42 million), and turnover increasing by 2% to £224.0
million (2023: £219.1 million). The business reported increased
profits in 2024 (£11.1 million v £7.4 million) as a result of its
focus over the past year on risk selection and loss ratio
improvements, as well as cost reduction.
In Admiral Seguros (Spain) customer numbers were flat
at 0.45 million, due to increased prices to target loss and
expense ratio improvements. The loss for the year was notably
lower (£3.1 million v £8.6 million). Admiral Seguros continues
to focus on sustainable growth through distribution
diversification in the broker channel and other partnerships
alongside its direct offering.
In the US, Admiral underwrites motor insurance through
its Elephant Auto business. Elephant delivered a significantly
improved result in 2024 with a profit of £14.4 million (2023: loss
of £19.6 million) due to strong management action on pricing,
underwriting and expense control.
In early March 2025, Admiral entered into a memorandum
of understanding with a counterparty with a view to signing
a purchase agreement to sell Elephant. The agreement,
if signed, would be subject to regulatory approval.
Meeting Europe’s
Chief Data Officer
I’m Paola, and I’m Europe’s Chief Data Officer.
My role involves defining and implementing
our data strategy in Europe, overseeing data
governance, and using advanced analytics to
optimise risk management, improve customer
insights, and support product innovation.
Across the Group, we are focused on evolving our
technology and data capabilities to meet changing
customer needs and trends. Effective data analytics
is crucial because it means that we can accurately assess
risks, improve how we price, and offer our customers
a personalised experience. By transforming data into
actionable insights, we can enhance our decision making.
It also helps to encourage innovation and defend our
competitive advantage in a rapidly evolving market.
AI helps us to evolve our proposition because it improves
our risk assessment through more precise underwriting
and faster identification of emerging patterns and trends.
Within claims management, AI helps us to detect fraud
and streamline claim processing which helps to resolve
customer claims more quickly.
International Insurance_CS.png
Admiral Group plc Annual Report and Accounts 2024
41
Admiral Money review
Our performance
Admiral Money profit before tax
£13m
Gross loans
£1.17bn
Being an efficient, customer-
centric lender is proving to be
a successful formula
10995116279071
10995116279082
I’m pleased to be able to say it has been a positive
2024 for Admiral Money. Throughout the year
we have retained a firm focus on prime lending
and continued to prioritise a controlled and
conservative approach to growth. Our book
at the end of December stands at £1.17 billion,
23% growth since FY 2023.
Our gross income of £112.5 million has grown 19% since FY 2023,
reflecting the higher average balances through the year. Our book
net interest margin finishes the year at a healthy 650bps and
our credit performance has been more than satisfactory, with
a full year of cost of risk of 2.5%. The outcome of this has been
our third consecutive year of growing profits, achieved whilst
maintaining an appropriately conservative provision to cover
potential credit losses.
Our NPS score of 75 and Trust Pilot score of 4.4 provide
continued evidence that our focus on being an efficient
customer-focussed prime lender, providing certainty and
transparency to UK customers on their lending needs through
offering guaranteed rate solutions, is a successful formula.
In 2024 we have also continued our focus on being the lender of
Admiral money Scott.png
choice for Admiral Insurance customers. This is a key pillar of our
strategy and where we have the most significant competitive
advantage. Over 68% of our new customer flows in 2024 came
from either current or recent Admiral Insurance customers.
When we set out Admiral Money’s strategy in 2018,
we identified four key ingredients for an ‘Admiral-like’ lender.
Over seven years, we have clearly proven three: pricing
excellence, expense efficiency, and product differentiation.
I’m delighted to see us take our first step towards delivering
the fourth, using third-party capital to enhance shareholder
returns and manage risk. I’m pleased to confirm our first off-
balance-sheet deal, a forward flow agreement consisting
of £150 million back book and up to £300 million per annum,
transferring loan risk off Admiral’s balance sheet in exchange
for origination and servicing fees. This milestone enables future
growth beyond the Group’s balance sheet and acts as a model
for us to expand participation in consumer lending beyond
the current asset classes.
Looking to 2025, we enter with strong momentum. I expect
to see continued growth towards the £1.3 billion on-balance
sheet loans, with total loans under management towards
£1.6 billion. I’d like to finish by thanking our customers and
all of my colleagues and wish everyone the best for 2025.
“We continue to deliver
sustainable growth and are
proud to announce our first
deal using third-party capital
to execute on our strategy to
enhance shareholder returns.”
Scott Cargill
CEO, Admiral Money
Admiral money logo.png
Admiral Group plc Annual Report and Accounts 2024
42
Admiral Money review
continued
Admiral Money financial review
£m
2024
2023
Total interest income
112.5
94.7
Interest expense1
(43.2)
(28.3)
Net interest income
69.3
66.4
Other income
0.5
0.1
Total income
69.8
66.5
Credit loss charge
(26.9)
(33.4)
Expenses
(29.9)
(22.9)
Admiral Money profit before tax2
13.0
10.2
1Includes £6.1 million intra-group interest expense (2023: £1.5 million).
2Alternative Performance Measures – refer to the end of this report for definition and explanation.
Admiral Money distributes and underwrites unsecured personal
loans and car finance products for UK consumers through
the comparison channels, credit scoring applications, through
car dealerships, and direct to consumers via the Admiral
website. The aim of the proposition is to provide customers
with affordable guaranteed rates, ensuring transparency
and certainty.
Admiral Money recorded a pre-tax profit of £13.0 million
in 2024, improved from £10.2 million profit in 2023,
continuing the positive trajectory of growth in both the loan
book and profit.
The business has continued to focus on writing high-quality
Admiral money.png
loans, with the increase in profit largely driven by net interest
income growth of 4% to £69.3 million (2023: £66.4 million),
as well as a reduced provision charge driven by a focus
on high-quality risk selection and positive loss performance.
Increased interest expense is driven by market-linked funding
instruments and continued investment to support the ongoing
growth in the business, partially offset the increased net
interest income and lower credit loss charge.
Gross loans balances totaled £1,174.0 million at the end of the
year (31 December 2023: £956.8 million), with a £84.3 million
(31 December 2023: £81.7 million) expected credit loss
provision. This leads to a net loans balance of £1,089.7 million
(31 December 2023: £875.1 million).
Credit loss models reflect the latest economic assumptions
and appropriate post model adjustments remain in place
to maintain an appropriately cautious level of provisioning.
The provision to loans balance coverage ratio is lower at 7.2%
(31 December 2023: 8.5%), with a £2.6 million increase
in absolute provision size in the period to £84.3 million.
The provision includes lower post model adjustments of
£4.6 million (31 December 2023: £9.2 million) reflecting the
improved UK economic outlook.
Admiral Money is funded through a combination of internal
and external funding sources. The external funding is secured
against certain loans via a transfer of the rights to the cash
flows to two special purpose entities (‘SPEs'). The securitisation
and subsequent issue of notes via SPEs does not result in
a significant transfer of risk from the Group.
Admiral Group plc Annual Report and Accounts 2024
43
Other Group items
Other Group items financial review
£m
2024
2023
Share scheme charges
(62.2)
(54.4)
Other central costs
(51.2)
(41.7)
Admiral Pioneer result
(11.3)
(16.2)
Business development costs
(20.1)
(15.3)
Finance charges1
(26.4)
(20.3)
Compare.com loss before tax
–
(2.6)
Sale of shares in Insurify
12.5
–
Other interest and investment income
13.5
4.6
Total
(145.2)
(145.9)
1Finance charges within other Group items include £1.8 million (2023: £1.7 million) that relate to intra-group arrangements, with the corresponding income presented within
the UK Insurance result.
Share scheme charges relate to the Group’s two employee
share schemes. The increase in charge in the period is driven
primarily by both higher vesting assumptions and increases
in bonuses tied to dividends paid in the year.
Other central costs consist of Group-related expenses and
include an allocation of Group employee costs as well as the
cost of a number of significant Group projects. In 2024, these
include the cost of a one-off employee bonus of approximately
£8 million, along with higher project costs for the internal capital
model development and the strategic review of the US Insurance
business. In addition, central Group employee expenses
increased relative to 2023.
Admiral launched Admiral Pioneer in 2020 to focus on new
product diversification opportunities. Pioneer businesses
include Veygo (short-term and learner driver car insurance
in the UK) and Admiral Business (small business insurance
in the UK). Pioneer’s businesses reported a lower loss of
£11.3 million in 2024 (2023: £16.2 million). The 2023 result
was impacted by adverse large claims experienced in Veygo
(one large claim in particular); the improvement in 2024 arises
from continued growth and better claims experience, with
Veygo reporting its first profit. The overall loss in Admiral
Pioneer reflects continued investment in the development
of new products, including for example, the partnership with
Insurtech fleet insurer Flock, entered into in 2024.
Business development costs increased to £20.1 million
(2023: £15.3 million), primarily as a result of non-recurring
transaction and other costs of £6.5 million related to the
More Than acquisition.
Finance charges of £26.4 million (2023: £20.3 million) primarily
related to interest on the £250 million subordinated notes
issued in July 2023 at a rate of 8.5%, with the charge in 2023
based on the original £200 million subordinated loan notes
issued in July 2014. The increase in finance charges is largely
offset by the increase in other interest and investment
income, which arises primarily from the higher interest rate
environment, with 2023 also including a loss on disposal
of £3.6 million.
A loss of £2.6 million was attributed to compare.com in 2023
following its disposal. As part of the disposal, the Group
received shares as a minority interest shareholder of the
acquirer. In 2024, the Group sold those shares, realising
a one-off gain of £12.5 million.
As the leading motor insurer, we always want
to better understand emerging and evolving
mobility trends.
In June, Admiral Pioneer, our business focused on building
new customer propositions, entered into a partnership
with Insurtech fleet insurer Flock. This partnership allows
us to better understand the fleet market and learn from
Flock’s innovative technology, while enabling Flock to
support a wider range of fleet customers, and benefit from
our insurance expertise.
Other Group items_CS.png
Admiral Group plc Annual Report and Accounts 2024
44
Group capital structure and financial position
The Group manages its capital to ensure that all entities
are able to continue as going concerns and that regulated
entities comfortably meet regulatory capital requirements.
Surplus capital within subsidiaries is paid up to the Group
holding company in the form of dividends.
The Group’s regulatory capital is based on the Solvency II
Standard Formula, with a capital add-on to reflect recognised
limitations in the Standard Formula with respect to Admiral’s
business, predominantly in respect of profit commission
arrangements in co-insurance and reinsurance agreements.
Admiral continues to develop its partial internal model to form
the basis of calculating capital requirements post-approval.
This programme is ongoing with regular engagement with
the regulator on the application process and timing.
The current approved capital add-on is £24 million.
The estimated and unaudited Solvency ratio for the Group
at the date of this report is as follows:
Group capital position (estimated and unaudited)
£bn
2024
2023
Eligible Own Funds (post-dividend)1
1.74
1.42
Solvency II capital requirement2
0.86
0.71
Surplus over capital requirement
0.88
0.71
Solvency ratio (post-dividend)3
203%
200%
1Own Funds include approximately £250 million of Tier 2 capital following the Group’s issue of ten-year subordinated loan notes.
2Solvency capital requirement includes updated, unapproved capital add-on.
3Solvency ratio calculated on a volatility adjusted basis.
The Group’s solvency ratio is slightly improved compared with
the closing position of 2024 at 203% (2023: 200%). Own funds
increased following continued strong generation of economic
capital in the core UK motor business as a result of the positive
current period underwriting performance of UK Motor and prior
period releases, including the impact of the change in Ogden
discount rate, which offset a reduction of around 11 points of
solvency ratio following the de-recognition of intangible assets
recognised in the More Than acquisition due to Solvency II
rules, and a higher foreseeable dividend
The SCR also increased over the year, though to a lesser
extent. The increase of approximately £150 million was
primarily due to the increase in premiums across all Group
businesses and the associated impact on underwriting and
operational risk elements of the capital requirement.
The estimated solvency ratio including the fixed Group capital
add-on of £24 million, that is calculated at the balance sheet
date rather than the date of this report, and is expected
to be reported in the Group’s 2024 Solvency and Financial
Condition Report (SFCR) is as follows:
Regulatory solvency ratio (estimated and unaudited)
2024
2023
Solvency ratio as reported above
203%
200%
Change in valuation date1
(9)%
(11)%
Other (including impact of updated, unapproved capital add-on)
4%
(6)%
Solvency ratio to be reported (SFCR)
198%
183%
Solvency ratio sensitivities
2024
2023
UK Motor – incurred loss ratio +5%
(26)%
(11)%
UK Motor – 1-in-200 catastrophe event
(3)%
(1)%
UK Household – 1-in-200 catastrophe event
(3)%
(5)%
Interest rate – yield curve up 100 bps
(1)%
(1)%
Interest rate – yield curve down 100 bps
–%
1%
Credit spreads widen 100 bps
(2)%
(5)%
Currency – 10% (2023: 25%) movement in euro and US dollar
(2)%
(3)%
ASHE – long-term inflation assumption up 100 bps
(6)%
(3)%
Loans – 100% weighting to ‘severe’ scenario2
(1)%
(1)%
1The solvency ratio reported above includes additional own funds generated post-year-end up to the date of this report.
2Refer to note 7 to the financial statements for further information on the ‘severe’ scenario.
The increased sensitivity of the incurred loss ratio stress is the result of the growth in premium exposure and relatively profitability
of the most recent underwriting year, whilst the increased sensitivity to ASHE is due to both a slight increase in settled periodic
payment orders (PPOs), and higher PPO propensity assumptions following the change in Ogden.
Admiral Group plc Annual Report and Accounts 2024
45
Group capital structure and financial position
continued
Investments and cash
Investment strategy
Admiral Group’s investment strategy focuses on capital
preservation and low volatility of returns relative to liabilities,
and follows an asset liability matching strategy to control
interest rate, inflation and currency risk. A prudent level
of liquidity is held and the investment portfolio has a high-
quality credit profile. In 2024, the focus remained on matching,
and cashflows were invested into high-quality assets to take
advantage of healthy risk-free rates, whilst being appropriately
cautious on the credit outlook. The Group holds a range
of government bonds, corporate bonds, alternative and private
credit assets, alongside liquid holdings in cash and money
market funds.
A further aim of the strategy is to reduce the Environmental,
Social, and Governance (ESG) related risks in the portfolio
whilst continuing to achieve sustainable long-term returns.
In 2024, the portfolio weighted average ESG score was
upgraded to an MSCI AAA rating. 
Total investment income for 2024 was £175.6 million
(2023: £126.7 million).
The investment return on the Group’s investment portfolio
(excluding unrealised gains and losses and the movement
in provision for expected credit losses) was £182.1 million
(2023: £124.4 million). The annualised rate of return was higher
at 4.0% (2023: 3.3%) mainly as a result of higher investment
yields, with the increased income driven by a combination
of the higher yield and increased asset balances following
the growth in the business.
Investment return
£m
2024
2023
Underlying investment income yield
4.0%
3.3%
Investment return
182.1
124.4
Unrealised losses on derivatives
(0.2)
(0.2)
Movement in provision for expected credit losses
(6.3)
2.5
Total investment return
175.6
126.7
Cash and investments analysis
£m
2024
2023
Fixed income and debt securities
3,335.4
2,825.9
Money market funds and other fair value through P&L investments
1,421.0
918.8
Cash deposits
91.7
116.7
Cash
313.6
353.1
Total1
5,161.7
4,214.5
1Total Cash and Investments includes £354.5 million (2023: £278.2 million) of Level 3 investments. Refer to note 6f in the financial statements for further information.
Cashflow
£m
2024
2023
Operating cashflow, before movements in investments
1,303.4
697.5
Transfers to financial investments
(810.3)
(285.5)
Operating cashflow
493.1
412.0
Tax payments
(124.1)
(133.0)
Investing cashflows (capital expenditure)
(144.2)
(75.9)
Financing cashflows
(436.0)
(216.7)
Loans funding through special purpose entity
178.1
44.9
Foreign currency translation impact
(6.4)
24.8
Net cash movement
(39.5)
56.1
Unrealised gains on investments
11.4
98.1
Movement in accrued interest, foreign exchange and unrealised gains on derivatives
165.0
69.0
Net increase in cash and financial investments
947.2
508.7
Admiral Group plc Annual Report and Accounts 2024
46
Group capital structure and financial position
continued
The main items contributing to the operating cash inflow are as follows:
£m
2024
2023
Profit after tax
662.9
337.2
Change in net insurance contract liabilities
606.5
309.5
Net change in trade receivables and liabilities
46.3
(42.3)
Change in loans and advances to customers
(231.4)
(73.6)
Non-cash Income Statement items
42.8
61.1
Taxation expense
176.3
105.6
Operating cashflow, before movements in investments
1,303.4
697.5
The Group continues to generate significant amounts of cash,
particularly notable during 2024, and its capital-efficient
business model enables the distribution of the majority
of post-tax profits as dividends. Total cash and investments
at 31 December 2024 was £5,161.7 million (31 December 2023:
£4,214.5 million), the increase reflecting the collections from
higher written premium in UK Insurance.
The net increase in cash and investments in the period is
£947.2 million (2023: increase of £508.7 million).
Taxation
The tax charge for the period is £176.3 million (2023: £105.6
million), which equates to 21.0% (2023: 23.8%) of profit before
tax. The tax rate in 2023 was impacted by the settlement of
a non-recurring historic Italian tax matter. In addition, in 2024,
a greater proportion of profits has arisen in the Group’s
businesses outside the UK, leading to the lower effective tax
rate. See note 10 to the financial statements for further details.
Co-insurance and reinsurance
Admiral makes significant use of proportional risk sharing
agreements, where insurers outside the Group underwrite
a majority of the risk generated, either through co-insurance
or quota share reinsurance contracts. These arrangements
include profit commission terms which allow Admiral to retain
a significant portion of the profit generated.
Although the primary focus and disclosure is in relation to the
UK Motor Insurance book, similar longer-term arrangements
are in place in the Group’s International Insurance operations
and the UK Household and Van businesses.
UK Motor Insurance
Munich Re and its subsidiary entity, Great Lakes, currently
underwrite 40% of the UK Car business. From 2022, 20%
of this total is on a co-insurance basis (via Great Lakes) and
will extend to 2029. The remaining 20% is on a quota share
reinsurance basis and these arrangements now extend to 2026.
The Group also has other quota share reinsurance
arrangements confirmed to at least 2025 covering 38% of the
business written.
The nature of the co-insurance proportion underwritten by
Munich Re (via Great Lakes) in the UK is such that 20% of all
Car premium and claims accrue directly to Great Lakes and are
not reflected in the Group’s financial statements. Similarly,
Great Lakes reimburses the Group for its proportional share of
expenses incurred in acquiring and administering this business.
Admiral’s UK Motor quota share reinsurance arrangements
result in all premiums, claims and expenses that are ceded
to reinsurers being included within the quota share result
in the Group’s financial statements, with a recovery recognised
where years are not yet profitable.
These agreements operate on a funds withheld basis with
Admiral retaining ceded premium (net of the reinsurer margin),
which then covers claims and expenses. If an underwriting year
is not profitable, investment income is allocated to the withheld
fund and used to delay the point at which cash recoveries are
collected from the reinsurer. Other features of the
arrangements include expense ratio caps and commutation
options for Admiral that become available 24-36 months after
the start of the underwriting year.
Admiral tends to commute its UK Car Insurance quota
share reinsurance contracts 24-36 months after inception
of an underwriting year, assuming there is sufficient confidence
in the profitability of the business covered by the
reinsurance contract.
In 2024, there were commutations of a small number
of remaining contracts from underwriting years 2017-2020.
All arrangements covering the 2020 and prior underwriting
years have now been commuted. In addition, a majority
of contracts from underwriting year 2021 have been commuted
during 2024. There was no significant impact on profit before
tax as a result of the commutations.
UK Household Insurance
The Group’s Household business is supported by long-term
proportional reinsurance arrangements covering 70% of the
risk, that runs to at least 2027. In addition, the Group has
non-proportional reinsurance to cover the risk of catastrophes
stemming from weather events.
International Car Insurance
In 2023 and 2024, Admiral retained 35% (Italy), 30% (France),
30% (Spain), and 40% (2023) and 60% (2024) (US) of the
underwriting risk in each country, respectively. In 2025, Admiral
will retain 60% of the underwriting risk in Italy and 100% of the
underwriting risk in the US, with the retained share in France
and Spain unchanged.
Excess of loss reinsurance
The Group also purchases excess of loss reinsurance to provide
protection against large claims and reviews this cover annually.
The UK Motor excess of loss cover in 2024 remained similar
to prior years with cover starting at £10 million.
Admiral Group plc Annual Report and Accounts 2024
47
Sustainability
Looking forward
to our future
Our sustainability journey
Admiral’s purpose is ‘to help more people to look after their
future. Always striving for better, together’. This means that,
in addition to providing great customer experiences and an
inspiring place to work for our people, we also strive to make
a positive impact on society.
Throughout 2024, we dedicated time and resource to a range
of local, regional, and global sustainability issues, including
projects focused on climate change, social and financial
inclusion, and partnerships aiming to deliver employment
opportunities for under-represented groups.
We continue to apply the United Nations Sustainable
Development Goals (SDGs) to guide our approach
to sustainability, helping us to balance our focus across
a range of environmental, social, and governance issues.
In 2024, we expanded our sustainability expertise to help
coordinate and support initiatives, and embed sustainability
into core business strategy and decision making.
Work continues to help our business, supply chain, and
partners transition to more sustainable practices and improve
our understanding and measurement of our impact on society.
Our purpose framework
Admiral Group plc Annual Report and Accounts 2024
48
Sustainability
continued
Our sustainability ambition drives us to continuously reduce our
net environmental impact, enhance the quality and effectiveness
of our social purpose initiatives, and operate as a responsible
business. Our progress in these three areas is measured through
environmental, social and governance (ESG) ratings. We welcome
the opportunity to be benchmarked, with improvements reflected
in ratings such as our MSCI rating page 63.
We established ambitious targets for 2024, which we
successfully achieved, including:
• Publishing our first Net Zero Transition Plan, which details how
we plan to achieve net zero by 2040, and calculating our first
Motor Insurance customer emissions footprint
• Through our partnership with The King’s Trust, we supported
more than 200 young people to access training that prepared
them for digitally enabled roles
• Committing to deliver over 25,000 hours of community
volunteering, known as impact hours
• Embedding our new sustainability governance structure
and Sustainability Steering Committee.
In 2024, in line with our purpose, we made progress
in broadening our international partnerships to support funding
programmes across the globe, including Europe, Canada,
and India. These were aimed at enhancing our global reach
and impact, ensuring that we can contribute to various initiatives
and projects worldwide.
We also had an active voice as part of our membership
in key forums with national, regional, and local policymakers.
We contributed to forums where we could share our experience,
such as the Association of British Insurers (ABI) Climate Change
Committee, and attended several thought leadership round
tables and conferences.
As the only FTSE 100 company based in Wales, we believe that
we have a pivotal role to play in inspiring collaboration and
innovation, and helping policy makers, community advocates
and innovators to work together to help shape the future.
We aim to continue making a significant contribution
to economic, environmental and social welfare across Wales,
the UK and all of our global territories.
For greater detail on our sustainability activity please
see our 2024 Sustainability Report.
Key achievements and focus areas
Sus_ThreeKeyAreas.png
Our three key areas
Reducing our
environmental impact
Strengthening our
social purpose
Operating as a
responsible business
Key achievements in 2024
Centralised
sustainability team
to support
environmental, social
and governance
Converted our
revolving credit
facility to a
sustainability-
linked loan1
Received approval
of Admiral’s first
set of science-based
targets
Published
Admiral’s first
Net Zero
Transition Plan
Improved MSCI
rating from
AA to AAA
Supported
31 partnerships
to deliver
social impact
Exceeded our
target of 25,000
impact hours
Embedded our
sustainability
governance
framework
Areas of focus for 2025
Support more customers to
make sustainable choices
Prepare for the evolving
regulatory environment
Align social purpose with
strategic goals
Further integrate net zero
principles into our business
Build resilience and  understanding of strategic
ambition across our supply chain
Collaborate and innovate
towards net zero
1See Admiral's 2024 Sustainability Report for basis of reporting on sustainability-linked loan.
Admiral Group plc Annual Report and Accounts 2024
49
Sustainability
continued
Governance icon.png
Governance
In 2024, Admiral Group strengthened the integration
of sustainability into its overall strategy, building on the
sustainability governance framework approved by the Group
Board in 2023.
This year also marked the first full year of the Group
sustainability team, led by the Chief Sustainability Officer (CSO).
The team has focused on embedding sustainability across all
business activities and legal entities within the Group.
Our sustainability governance framework
Board responsibility
The Group Board is responsible for determining Admiral's overall
strategy, setting priorities, and defining the Group's risk appetite,
including considerations of sustainability. As climate change
is a topic covered under ‘ESG’, it is included within the scope
of our sustainability goals and targets.
Historically, the Group Board has delegated the responsibility
for reviewing climate-related risks to the Group Risk Committee,
and climate-related disclosures to the Group Audit Committee.
In 2024, the Committees’ scopes were formally expanded
to fully cover sustainability, inclusive of climate change.
The Group Board also approved the creation of a Sustainability
Steering Committee (SSC), delegating responsibility for the
development and implementation of Admiral’s sustainability
approach to the SSC. The SSC, through its oversight of five
sustainability working groups, oversees business activities,
tracks progress on meeting our sustainability commitments
and targets, and ensures that processes are in place to comply
with sustainability regulations and industry standards.
The SSC reports material items to the Group Board. For
example, in 2024 our Net Zero Transition Plan was taken
through the sustainability governance channels, with SSC
recommending it to the Group Board for approval. In addition,
the Group Board annually reviews the sustainability strategy and
receives a progress update on delivery of our targets and goals.
For details on Board composition and expertise see page
101-106.
The Group Audit Committee (GAC) reviews and challenges,
where appropriate, the integrity of Admiral’s sustainability and
climate-related financial disclosures and the effectiveness
of the controls around sustainability activities including climate-
related risks. In 2024, it reviewed and approved the Task Force
on Climate-related Financial Disclosures (TCFD) report, and the
Streamlined Energy and Carbon Reporting (SECR) report.
In addition, GAC commissioned Deloitte to provide independent
limited assurance over our absolute Scope 1 and 2 (market and
location based) emissions and energy consumption, and
percentage of women in senior management roles within this
Annual Report and Accounts. For further information see page
143. The assurance engagement was planned and performed
in accordance with International Standard on Assurance
Engagements 3000 (Revised), Assurance Engagements Other
Than Audits or Reviews of Historical Financial Information (ISAE
3000 (Revised)) and International Standard on Assurance
Engagements 3410 (ISAE 3410). This independent assurance
report is separate from Deloitte’s audit report on the financial
statements and is available at page 41 of the Sustainability Report.
The Group Risk Committee (GRC) oversees the identification,
assessment and management of sustainability and climate-
related risks, ensuring these are integrated into the Group’s
risk management framework and aligned with regulatory
expectations and other industry standards. Sustainability
and climate updates are included within the Chief Risk Officer’s
report, which is presented at each GRC meeting. Climate
change considerations are also reported within the Own Risk
and Solvency Assessment (ORSA) report and TCFD report,
which is reviewed by the GRC before being recommended
for approval by the Group Board.
The Group Remuneration Committee is responsible for aligning
executive remuneration with Admiral’s sustainability objectives,
ensuring incentive structures support the achievement
of climate-related targets and broader ESG commitments.
For more detail on remuneration structures see page 151.
Climate-related risks and opportunities are also considered
within the Group Investment Committee, the Group Assets and
Liabilities Committee, and Group Reserving Committee. Please
see TCFD section page 66 for more detail and examples on how
these Committees specifically cover climate change.
The Group’s subsidiary Boards have similar responsibilities to
the Group Board and are supported by relevant Group functions
(for example the Investment, Risk and Compliance, Finance
and Sustainability teams) to embed sustainability and climate-
related considerations locally. For example, with the incoming
Corporate Sustainability Reporting Directive (CSRD) regulation,
sustainability, inclusive of any climate considerations, is a
standing agenda item at each Admiral Europe Compañía de
Seguros’s (AECS) Board.
Senior management accountability
The Chief Executive Officer (CEO) of Admiral Group is
ultimately responsible for executing the sustainability approach.
Day-to-day oversight is delegated to the Group Chief Risk
and Compliance Officer (GCRCO), who also manages climate-
related risks under the Financial Conduct Authority’s Senior
Managers and Certification Regime.
The GCRCO, assisted by the Group Sustainability and Risk
functions’ leadership team, oversees sustainability and climate-
related risks, which are embedded in the Group risk management
framework and reported to the Group Board and Group Risk
Committee.
In 2024, the CSO expanded the Group Sustainability team’s
remit to better coordinate sustainability activities across
the Group. The team took on new roles to increase expertise
and meet the Group Board’s sustainability commitments.
This structure will evolve throughout 2025 to strengthen
the approach to managing sustainability-related risks
and opportunities. Investment management responsibilities,
including responsible investment and climate change
considerations, are held by the Group Chief Financial Officer.
Admiral Group plc Annual Report and Accounts 2024
50
Sustainability
continued
Sustainability governance framework
Group board2.png
Sustainability governance structure
With the Group Board's approval, the Group Sustainability team
established a tiered sustainability governance structure that
includes a Sustainability Steering Committee (SSC) and five
working groups focused on key sustainability areas. These
working groups provide important support to business
stakeholders, helping them to integrate sustainability
considerations into all business areas and key decision making.
The SSC convenes quarterly to ensure a cohesive sustainability
approach across the Group, including overseeing the
achievement of our net zero objective and strategic embedding
of sustainability. It is authorised by the Group Board to make
decisions on sustainability initiatives and developments
identified by the sustainability working groups.
The SSC is chaired by Admiral’s GCRCO, who also serves
as the Executive Sponsor for sustainability and Admiral’s
Diversity, Equity and Inclusion (DE&I) strategy. Other executive
members include the CEO of Admiral Group, CEO of AECS,
CSO, Director of Group Finance, and the Chairs of the five
sustainability working groups. The CSO reports regularly
on sustainability matters to the Group and entity Boards
and other governance committees.
Where other committees consider climate-specific matters
details of this have been included within the Task Force
for Climate-related Disclosures (TCFD) on page 66.
Material sustainability topics
Aligning our approach with UN Sustainable
Development Goals (SDGs)
We continue to align our approach to the 17 UN SDGs as they
provide a useful approach to evaluate the contribution the
business makes to a range of sustainability-linked issues.
The SDGs also highlight the importance of access to decent
work, education and services such as health care, and we
believe that our role in facilitating access to transport and
improving the mobility of communities through the insurance
we provide, is an important element in facilitating this. For more
detail on our contribution towards the SDGs, please see
page 61-63.
Our approach to sustainability materiality
In 2024, we updated our view on the sustainability topics that
matter most to our business. Our process evolved from our last
assessment, where we considered financial materiality alone,
to capturing both financial and impact materiality. This is known
as a ‘double materiality’ assessment in which:
• Financial materiality (outside-in) identifies sustainability-
related risks and opportunities that could impact our
organisation’s financial and business performance
• Impact materiality (inside-out) identifies sustainability-related
impacts, both positive and negative, that our organisation
can have on the world and wider society.
We enlisted external expertise to support our materiality
assessment, allowing us to use proven methodology
and incorporate qualitative and quantitative insights.
Stakeholders participated in workshops to score materiality
of ESG impacts, risks and opportunities. Review and validation
sessions ensured our process and results were robust
and accurate, further assessed through our sustainability
governance structure.
We believe that this approach to sustainability materiality
is an essential foundation to developing our strategic ambitions
and future regulatory readiness.
Admiral Group plc Annual Report and Accounts 2024
51
Sustainability
continued
Material sustainability issues
The following table summarises the results of our 2024 materiality assessment for Admiral Group1, highlighting the most material
topics for the Group. As the materiality assessment is an iterative process, the results could be subject to change in future years
when the assessment is re-run.
For more detail on our Double Materiality Assessment (DMA), please see our 2024 Sustainability Report.
2024 materiality assessment results
Climate change
How we help to mitigate and adapt to climate change, which is the long-term shift in
average temperatures and weather patterns of the Earth, alongside the use of energy
in all our operations.
Environment
Biodiversity and
ecosystems
The interactions between our business and the natural environment occurring mainly
through supply chain and policyholder activities, focusing on biodiversity, biodiversity
loss, and the health and functionality of ecosystems.
Resource use and
circular economy
The careful use of natural resources such as fossil fuels and circular economy
principles, which focuses on eliminating waste and preventing the depletion of natural
resources within our operations while servicing customer claims.
Own workforce
Maintenance of positive working conditions within our organisation, striving for
equal treatment and opportunities for all colleagues, and upholding all other work-
related rights.
Social
Workers in the
value chain
The equal treatment, opportunities and work-related rights for those employed within
our supply chain.
Affected
communities
How we engage with local communities through partnerships and providing support.
We take pride in supporting our local communities, an ethos that has been in Admiral
since the start.
Consumers and
end-users
How we ensure the personal safety of our customers and the protection of their
personal data, and achieve social and financial inclusion.
Governance
Business conduct
How we strive to foster a strong corporate culture emphasising ethical behaviour
and integrity, and are committed to responsible business practices and
transparent reporting.
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1These results are not subject to assurance requirements, as the updated assessment is a voluntary, strategic update of the sustainability topics that are most material to the Group.
Responsible business practices
Responsible procurement
Our third-party risk management framework seeks to ensure
all our outsourcers and suppliers align with our sustainability
values in all key areas including the environment, financial crime,
data protection, ethical working practices and modern slavery.
Third-parties’ practices are assessed across their life cycle, from
initial due diligence and subsequent monitoring through the
contract period. Where suppliers’ responses demonstrate a lack
of appropriate policies or procedures, we issue an assessment
to the supplier to capture further information and to encourage
improvements. In addition, during 2024, we sought to work
more closely with key suppliers on collective sustainability
issues – with our UK’s motor damage supplier board, comprising
of our largest 14 motor suppliers, meeting with us to discuss
progress on sustainability and to identify areas of collaboration.
Responsible investment
We strive to invest in a way that supports environmental
and social sustainability. Our Investment Policy recognises
our duty to protect the interests of our customers, society,
and environment when investing the premiums we collect.
Our investment portfolio strategy supports our ambitions to be
net zero by 2040, to help drive real economic carbon emissions
reductions, and it follows the Institutional Investors Group on
Climate Change (IIGCC) Net Zero Framework. The investment
team and Investment Committee continually monitor progress
towards our investment targets by regularly tracking and
reviewing ESG figures and statistics, from Weighted Average
Carbon Intensity to SDG contribution.
For more detail on how we follow responsible investment
stewardship, please see our 2024 Sustainability Report.
Admiral Group plc Annual Report and Accounts 2024
52
Sustainability
continued
Responsible marketing and product governance
We are committed to responsible marketing and advertising.
As one of the leading insurers and financial services companies
in the UK, we believe in serving our customers, communities
and planet to deliver positive impact and support people in their
journey to a more sustainable future.
Marketing and advertising can have a positive influence on
behavioural change. Our campaigns help to communicate
important information about our products and services. It is also
a way for us to engage with consumers on issues that matter
to them, for example:
• Our ‘Words To Live By’ campaign raises awareness around
the frequency of accidents involving young drivers and
promotes safer driving
• We ran numerous campaigns and communication initiatives
around ‘winter readiness’, promoting numerous ways drivers
can be safer, and homes can be better prepared
• Our campaigns promoting the switch to electric vehicles
have included social media, and website posts, along with
TV and radio adverts, establishing us as a leading electric
vehicle insurer.
Ensuring that marketing communications are accessible
to all consumers, including those with different needs
and preferences, is a priority for us. We embed a variety
of considerations in our marketing processes to ensure
good outcomes for all.
Our responsibilities include accessibility, consumer
understanding (clear language, not misleading), customer
vulnerabilities and adherence to the necessary marketing
regulations. When creating marketing communication for
example, our brand guidelines and plain numbers practitioners
offers guidance to ensure they are not overly complicated
or confusing, so that our customers will understand them.
We also want to make sure they will not mislead a customer
into making a decision that is not right for them, so we have
numerous processes to test and evaluate good understanding
of our communication.  
Responsible operations
We are committed to reducing the environmental impact of our
direct operations - our buildings and our people. We have set
ambitious GHG emissions reduction targets for our operations,
including net zero by 2040.
• Operational emissions and targets: Admiral Group's
near-term targets include a 70% reduction in Scope 1 and 2
emissions by 2030, verified by the Science-Based
Targets initiative (SBTi). We aim to achieve net zero in all
operational areas by 2040, with minimal use of offsetting for
residual emissions
• Emissions reporting: Admiral reports on its operational
emissions across Scope 1, 2, and 3. For Scope 2, we report
both market-based and location-based emissions, reflecting
the variance between these methods. Please see our SECR
disclosure on page 64 for our 2024 operational emissions
• Internal activities and achievements: Admiral has undertaken
several initiatives to reduce operational emissions, including
purchasing 100% renewable electricity in the UK, achieving
BREEAM excellent rating for its Cardiff headquarters, and
upgrading Building Management Systems. Operational GHG
emissions have been offset by Gold Standard carbon credits
since 2020.
External recognition
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Named in the top 20 of
Equileap’s Top 100 companies for
Global Gender Equality List
Financial Times Diversity Leaders
2025 list, placing 6th across UK
and Europe
6th in the Great Place to Work’s® UK
Best Workplaces for Women 2024
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Admiral Solutions, India Top 50
Best Workplaces for Women
Admiral Canada named one of
Canada’s Best Workplaces for Inclusion
2024 by Great Place To Work® Canada
ConTe has been awarded
13th Best Workplaces for Diversity,
Equity and Inclusion 2024
by Great Place to Work® Italia
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53
Sustainability
continued
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Social purpose
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At Admiral, our focus on sustainability means we prioritise
the wellbeing and development of everyone associated with
our business, from our employees to the broader community,
promoting an inclusive and thriving environment for all.
Our people
Diversity, equity and inclusion
Our internal diversity, equity and inclusion (DE&I) vision
is to create an environment where colleagues feel genuinely
supported. Our DE&I colleague led networks represent gender
equality, race, ethnicity and culture, LGBTQ+, disability and
neurodiversity, social mobility and age. These networks support
the business in creating a safe and healthy environment
and actively encourage allyship.  Consequently, 95% of our
colleagues believe we are a diverse and inclusive workplace,
according to our 2024 Great Place to Work® survey results.
Inclusivity begins at recruitment, with advertisements on diverse
job pages, including those for disability, ethnicity, and LGBTQ+;
and accessible toolkit, Recite Me, to reduce entry barriers;
and we ask all applicants if they need adjustments throughout
the recruitment journey. Recognised as a Disability Confident
Leader in the UK, we ensure that colleagues with a disability
are able to participate fully, and receive a fair chance and full
consideration for job roles and development opportunities.
Our Wellbeing and Workplace Support team promotes wellbeing
and supports health, disability, and neurodiversity management.
In 2024, as accredited Workplace Needs Assessors, the team
built Customised Adjustments Plans (CAP) to support employees
with health conditions, neurodiverse traits, or disabilities
throughout their careers. To align with a universal design
for all staff members, tools like Claro Read are made available
to everyone, regardless of any need to disclose.
Additionally, Admiral is a Neurodiversity Friendly Employer,
Menopause friendly employer, a founding member of Wellbeing
of Women Employer Membership programme, an Endometriosis
Friendly Employer and a Living Wage Employer, and in 2024,
we launched our colleague led community to support Women
in Tech and Data.
Leadership accountability is crucial to fostering inclusivity and
driving continuous improvement. In 2024, we welcomed new
senior leadership sponsors, including our Group DE&I Executive
Sponsor and ten appointed sponsors across our European
and UK entities. We understand that representation is crucial
to our success. Our ambition in 2025 is to continue to increase
representation across the Group including female representation
in leadership and ethnic diversity.
Engagement
We ensure our people feel valued and part of the bigger picture
through employee consultation groups (ECG) across international
locations. These groups give employees a voice at the highest
organisational level. In 2024, the UK ECG held four meetings
discussing customer outcomes, sustainability and culture.
We also encourage engagement with senior managers through
various meetings and channels such as coffee meetings with
the CEO, 'Friendly Forums', and live Q&As. We regularly post
intranet blogs so colleagues are kept up to date with the latest
important business news and stories from across the Group,
which drive engagement with our unique culture and ethos.
It is important to us that colleagues have a voice, so we run two
global surveys a year, Great Place to Work® and Pulse,
to understand colleagues’ experiences. We make sure that the
results of these surveys are shared along with an outline of what
we are doing to make Admiral an even better place to work. 
87%
of colleagues believe every effort is made to understand
the opinions and thinking of colleagues in the Admiral Group
(Group Pulse, June 2024)
Learning and development
In 2024, we retained our focus on people, learning and
development. We offer a wide range of development
opportunities for our colleagues including coaching,
accreditations, workshops, peer-to-peer and digital learning
on a wide range of topics such as leadership, human skills
and role-specific development. In 2024, our colleagues
completed over 1 million hours of learning, and we saw 1,374
internal promotions.
Our tools include LinkedIn Learning Hub, internal leadership
programmes and development hubs, as well as mandatory
training in core areas.
We have introduced Connect R, a tool for connecting mentors
and mentees around the business, to help with upskilling, and
cultivating a culture of continuous learning and development.
Additionally, we launched a new agile learning programme
aimed at empowering employees to work towards the Admiral
2.0 strategy of becoming more agile.
20,000+
course completions on LinkedIn Learning Hub in 2024
Admiral Group plc Annual Report and Accounts 2024
54
Sustainability
continued
Community investment
Our community investment programme is focused on creating
sustainable, long-term value, and addressing the needs of the
communities where we live and work. We identify opportunities
where we can have a meaningful impact on a range
of sustainability issues (as identified in the UN SDGs) such
as access to quality education, skills and employment.
In 2024, we committed over £3.3 million to our community
investment, split across three areas:
• Strategic partnerships
• Impact Funds (our Green Fund Initiative and Global
Emergency Fund)
• Colleague engagement (including small grants and our
volunteering initiative, which we refer to as Impact Hours).
Strategic partnerships
A large proportion of our Community Investment Fund is invested
in partnering with organisations across the world to drive
sustainable, long-term strategic value to local communities
and support our commitment to ‘Help more people to look after
their future. Always striving for better, together’.
In 2024, we invested over £1.4 million in community
programmes, educational initiatives, and local enterprises,
to allow individuals and communities to thrive. Examples
of partnerships include Generation, The King’s Trust, Women
Unlimited and Italia Uganda. Through our partnerships we aim
to foster stronger, more resilient communities and produce
societal and environmental benefits.
We’re proud to have contributed over £800,000 in supporting
over 1,300 people outside of our organisation to secure
meaningful and sustainable employment across various sectors
in 2024. Our 31 partners across the globe, such as Generation,
not only reinforces our commitment to social impact but also
underscores our belief in the power of collaborative efforts
to create lasting positive change.
Our contributions extend beyond financial donations.
Throughout 2024, we leveraged our resources and networks
to offer additional support to our partners including offering
skill-based volunteering, where colleagues provide professional
expertise in areas such as marketing support, and mentorship.
Additionally, we offered access to our our office spaces for
events and meetings. Our multifaceted approach ensures that
we foster a robust and dynamic ecosystem for sustainability.
Enabling employability
We strive to create a long-term positive
impact both within and beyond the Group.
As part of our Group community strategy,
Better Together, we are working to equip
people in our local communities with the
skills and opportunities to secure
sustainable employment.
In 2024, we donated £185,000 to Generation, a charity that
helps jobseekers into long-term employment. Having had
great success with programmes in India in 2023, we also
funded an environmentally sustainable careers initiative
in Spain and another in the UK. Our grant supported training
programmes for 176 jobseekers with some having already
started roles as retrofit advisors and solar panel installers.
In France, L’olivier collaborated with Ecole de la 2eme
chance, a programme designed to support young people find
employment. Our L’olivier colleagues conducted two
employability workshops in Lille and Paris. The workshops
included CV writing tips, advice on how to prepare for a job
interview, and the best ways to use social media to find a job.
Our Italian entity, ConTe.it, partnered with Edgemony,
a technology hub in Sicily providing specialised training
and networking in the community. ConTe.it supported the
creation of a career acceleration programme for women
working in the technology sector.
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Sustainability
continued
Impact funds
In addition to our investment in strategic partnerships, in 2024,
we spent over £1.1 million across our two community funds:
the Green Fund Initiative, which seeks to support environmental
education and other green initiatives to drive environmental
change; and the Global Emergency Fund, designed to give
philanthropic help when needed most.
Admiral’s Green Fund Initiative: In 2024, we launched eight
environmentally-focused partnerships which funded the
planning and building of the first Earth schools in Wales with
Earthwatch Europe. We also funded an ‘active travel’ campaign
to encourage the use of cycle paths with Sustrans UK; an
aquatic habitat restoration and watershed reforestation initiative
in Cape Breton, Canada; sustainable innovation in sports
across Wales with Welsh Sports Association; and flood
prevention activities with the National Trust and Wildfowl
and Wetlands Trust.
Admiral’s Global Emergency Fund: Supports disaster relief
efforts aligning with our core value of community support.
These investments not only address immediate humanitarian
needs during crises, but also help to stabilise and rebuild affected
regions, promoting long-term development and resilience.
In 2024, we used our Global Emergency Fund to support
regions such as Valencia, Spain and South Wales, UK,
which were impacted by devastating floods.
We donated over £400,000 to the Disaster Emergency
Committee (DEC) and became members of the DEC Rapid
Response Network, which enables us to use our people,
platform, brand, and partners to broadcast emergency appeals
for humanitarian crises across the globe.  
Earth Schools
Since 2023, we’ve supported the creation
of the first Green Earth Schools in Wales,
in partnership with Earthwatch Europe, which
works alongside communities and
organisations to build an understanding and
a love of nature, and help everyone to protect
the natural world.
Earthwatch is an environmental charity that connects
people with nature to inspire and empower them to take
action for a sustainable future. They focus on scientific
research, education, and community engagement to
address environmental challenges such as climate change,
biodiversity loss, and pollution.
In 2024, we donated £200,000 to the Green Earth Schools
project, which will provide nature-immersed spaces for
pupils in eight schools across Wales to be more connected
to the outdoors while they learn.
Not only does this partnership include the transformation
and development of nature-rich spaces in schools, which
the students plan and design, the initiative aims to provide
teachers with resources for outdoor education, inspire
curiosity about the natural world, and equip children with
a foundation of environmental knowledge.
Global Emergency Fund
At Admiral, we’ve always proudly supported
the communities where we live and work.
We use our Global Emergency Fund to provide
swift humanitarian relief to communities all
over the world in times of crisis.
In 2024, we donated over £400,000 to the Disaster
Emergency Committee (DEC) who provide aid to people
and places all over the world. We also provided support
to areas local to our colleagues when they were impacted
by floods.
Colleagues in our Spanish business responded to the
flooding facing communities in the Valencia region of Spain
by organising a collection drive at our Seville office.
The team collected essential goods such as clothing,
hygiene items and food for those affected. They also
organised a fundraising drive raising almost €6,000 to
enable continued support for local communities. Admiral’s
Global Emergency Fund also made a donation to support
with immediate repairs and future flood prevention.
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Admiral Group plc Annual Report and Accounts 2024
56
Sustainability
continued
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471
organisations supported in 2024
Donating over
£209,000
Colleague volunteering and Community
Small Grants
At Admiral, colleague engagement in social impact initiatives
is a vital element of who we are. It not only fosters a culture
of mutual support and shared values but also empowers
our teams to actively contribute to meaningful change within
our communities.
Colleague volunteering
Every year, our volunteering programme, Impact Hours, gives
every colleague across the world two paid volunteering days
to make positive impacts in their communities. In 2024, our
colleagues collectively volunteered over 32,500 hours.
Colleagues engaged in various activities such as volunteering
at youth centres, beach cleans, tree planting, and supporting local
and national charities by sharing skills, talents and knowledge.
Community Small Grants
Through our Community Small Grants scheme, each year,
UK colleagues can apply for a grant of up to £500 to help
organisations, community groups and clubs that either they,
or their direct family are involved in. In 2024, we supported more
than 450 organisations donating over £209,000. Our grants
were used to purchase sports equipment, educational resources
and more.
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£68,000
donated to charities that are close
to our colleagues’ hearts
90%
of colleagues feel good about the ways
Admiral contributes to the community
(GPTW survey, 2024)
Match Fund
Through our Match Fund scheme, UK colleagues can apply
for Admiral to match the money they have raised for registered
charities. In 2024, we received 95 applications and donated
£68,000 to charities that are close to our colleagues’ hearts.
Throughout the course of the year, we saw colleagues complete
sky dives, sponsored walks, marathon runs and bake sales.
Special interest groups
Supporting internal champions to deliver change is part of our
DNA. In 2024, we enabled colleagues to deliver meaningful
change in our offices as well as in their communities. For example,
our employee environmental advocacy group, ‘Green Team’,
facilitated another successful sustainability-focused week
to promote environmental awareness and practices both
within the Company and in the broader community, reflecting
our commitment to environmental restoration and climate
change mitigation.
Charity salary contributions
In the UK, colleagues can make charity donations direct from
their salaries via the Give As You Earn (GAYE) scheme. In 2024,
more than 600 colleagues made donations, totaling over
£100,000 for a range of charities including Cancer Research UK,
Dogs Trust Worldwide and the RSPCA.
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57
Sustainability
continued
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Environmental sustainability
As an insurer, we understand the major impact that
environmental issues, such as floods and heatwaves, can have
on our customers. These issues are exacerbated by climate
change and environmental degradation. We understand that
we must support customers by protecting against extreme
weather events today and help address environmental issues
to safeguard the futures of generations to come.
We also understand that our insurance business depends on
assets like cars and homes that can contribute to the problem
of climate change. Historically, transport has contributed
significantly to greenhouse gas (GHG) emissions, and was
estimated to be 15% of global emissions by the Intergovernmental
Panel on Climate Change in 2022. Therefore, as a major insurer
of motor vehicles, our environmental efforts include serving
as a catalyst for change in mobility and transport. We aim to help
our customers and communities who are transitioning to low-
carbon vehicles and lifestyles, whilst acting to protect nature
and biodiversity and reduce pollution.
Admiral’s impact on climate change
We have committed to achieving net zero greenhouse gas
emissions by 2040. We’ve also committed to halving our
emissions from operations, supply chain, and investments by
2030 from a 2021 baseline, with the exception of Scope 1 and 2,
where we’ve targeted a 70% reduction by 2030.
In December 2024, we published our inaugural Net Zero
Transition Plan to indicate how we will seek to reduce
greenhouse gas emissions across the entire Group in support of
our 2040 net zero ambition. The transition plan details Admiral’s
full carbon footprint across our Scope 1, Scope 2 and Scope 3
emissions, including emissions from customers’ vehicles that
we underwrite. We were one of the first UK-based insurers
to publish this ‘insurance-associated emissions’ figure.
We chose to do this in order to acknowledge how insurance
contributes to climate change and to encourage the wider
insurance industry to do the same.
Also in 2024, we received approval on our first set of science-
based targets (SBTs). Progress against these targets
is shown below. We will continue to disclose progress against
our SBTs annually.
Admiral’s progress against our science based targets
Scope 1 and 2: Admiral Group plc commits to reduce absolute Scope 1 and 2 GHG emissions 70% by 2030 from a 2021 base year. 
Scope 1 and 2 GHG emissions
Historic performance
Target performance
9345848837701
Scope 1
Scope 2 (market-based)
Combined Scope 1 and 2
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Corporate Bonds: Admiral Group plc commits to 48.6% of its corporate bonds portfolio by invested value setting SBTi-validated
targets by 2028, from a 2021 base year.
Proportion of bond counterparties with science-based targets
9345848837733
Target
Actual
Admiral’s SBT 2028 target
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Sustainability
continued
Progress in 2024 towards net zero
Below is a summary of actions taken by Admiral in 2024 to reduce greenhouse gas (GHG) emissions.
Area
Targeted impact
In 2024, we have...
Underwriting
• To support customers in adopting
greener lifestyles via sustainable
insurance products.
• Calculated the insurance-associated emissions of our Motor
Insurance customers for the first time
• Seen marked expansion of electric vehicle (EV) policies in the UK,
making it one of our most successful years for EVs to date
• Strengthened our EV underwriting capacity by engaging with
EV manufacturers to open coverage for their vehicles
• Encouraged customers to make greener choices by offering benefits
like EV charging discounts
• Supported customers with loans for green home retrofitting
• Adopted FloodRe’s ‘Build Back Better’ initiative for our UK home
insurance customers.
Investments
• To facilitate decarbonisation of the real
economy by investing in green assets
and increasing exposure to investee
companies who have pledged to set
decarbonisation targets.
• Updated our Investment Policy to further support sustainable asset
management and decarbonisation
• Collaborated with asset managers to encourage investee companies
to set science-based targets on GHG reduction
• Reduced investment portfolio Weighted Average Carbon Intensity,
progressed on our science-based target, and increased our
contribution to the UN SDGs.
Supply Chain
• To implement policies that support
sustainable procurement
• To support net zero in the wider
economy by encouraging suppliers
to set decarbonisation targets
• To reduce our own supply
chain emissions by selecting
sustainable suppliers
• To reduce the environmental impact
of claims.
• Set annual interim targets for 2024 to 2026 on the percentage of our
corporate supply chain to be committed to decarbonisation targets
• Ran a six-month engagement project with our UK suppliers,
supporting them to disclose emissions and commit to
decarbonisation
• Reduced transport and material-related emissions by using remote
inspection and triage in claims.
Own
Operations
• To reduce GHG emissions of our
direct operations
• To support protection of the
environment via community investment
and employee volunteering.
• Gained SBTi approval for our interim Scope 1 and 2 GHG emissions
reduction target
• Included interim Scope 1 and 2 GHG emissions reduction targets
as part of a sustainability-linked loan and as a non-financial measure
for our Discretionary Free Share Scheme (DFSS) award for Directors
and colleagues. See 2024 Sustainability Report for basis of reporting
and page 75 of our Net Zero Transition Plan for more information
• Offset operational emissions with Gold Standard carbon credits
• For information on GHG performance, please see our Streamlined
Energy and Carbon Reporting (SECR) disclosure on page 64.
Engagement
• To engage with government, public
sector, communities, and civil society on
climate change, with the aim to help build
a world in which net zero is possible.
• Engaged with government on issues including the challenges of EV
adoption and flooding
• Engaged with UK drivers via our sponsorship of Everything Electric
• Engaged with industry on issues including climate change, AI and
Sustainability, and EVs via our board and committee membership
of the Association of British Insurers
• Deployed over £720,000 towards environmental causes as part of our
community investment strategy and carbon sequestration funding.
For more detailed information about our net zero ambition, please see our 2024 Net Zero Transition Plan and our 2024
Sustainability Report.
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59
Sustainability
continued
Impact of climate change on Admiral
Climate change impacts our business. In contrast to the
management of our own greenhouse gas footprint, managing
the climate’s effect on us means evolving the resilience of our
business through our risk management, strategy, and financial
planning. The risks that climate change poses to Admiral include
the following:
• Physical risks arise from the direct impact of climate change,
such as extreme weather events. For Admiral and its
customers, this could mean increased frequency and cost
of claims due to damage from floods, storms, and other
natural disasters
• Transition risks arise from the transition to a low-carbon
economy. This can include changes in regulation, emerging
technologies, and shifts in market preferences in areas such
as motor, home and travel
• Liability risks arise from the potential for legal claims due 
to the Group's contribution to climate change or failure
to manage climate-related risks.
Climate change also presents opportunities, such as by
underwriting low-carbon assets like EVs and greener homes
or investing in green bonds and other environmentally-
positive assets.
Risks and opportunities are influenced by a range of external
factors including the timing of policy and regulation, resilience
of economies, regions, and cities to risks, and geopolitical and
societal attitudes towards change. Internally, risks and
opportunities are affected by customer demographics, supply
chain resilience, and our own risk appetite.
Our Board has ultimate oversight of climate change-related risks
and opportunities, ensuring that these are considered in the
context of the Group’s strategy and risk management.
For more information on the impact of climate change on
Admiral, please see our Task Force on Climate-related Financial
Disclosures statement on page 66. This includes information on
our physical climate risk management, climate scenario analysis,
and climate impact methodology.
Natural flood management
In 2024, Admiral invested in natural flood
management initiatives for the first time,
working with the National Trust in the UK to
support nature-based solutions to the effects
of climate change.
National Trust, Europe’s largest conservation charity,
is delivering Natural Flood Management solutions on its
properties to help reduce flood risk and manage droughts,
while enhancing landscape resilience and benefiting nature
and wildlife. During 2024, Admiral provided £150,000
of funding for three projects that aim to improve flood
management, biodiversity, and climate resilience by
restoring waterways and wetlands, while also engaging
communities with nature. The Cheshire Pondscapes Project
will slow water and enhance wildlife. The Upper Conwy
Catchment Restoration Project will re-wet peat, restoring
its sponge-like properties and supporting specialist species.
Finally, the Bolstering Buscot Project will support tenant
farmers with solutions to slow the flow of water, improve
water quality, and create new habitats.
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Sustainability
continued
Impact on and risks from nature
We recognise that our responsibility to the environment extends
beyond just mitigating climate change. We also have a duty to
support the protection of nature and biodiversity. This includes
reducing use of natural resources like water and raw materials,
contributing to the development of the circular economy,
reducing pollution from customers’ vehicles that we underwrite
and reducing waste, not only from our own operations but along
our entire value chain.
Addressing nature impacts and risks at Admiral
In 2024, we deepened our exploration of assessing our impact
on, and risks from, nature. This included completion of our first
double materiality assessment page 51 covering the standards
of Pollution, Water & Marine Resources, Biodiversity
& Ecosystems, and Resource Use & the Circular Economy.
We have also begun to explore how we might address the
Task Force on Nature-related Financial Disclosures.
In addition, we began to address nature-related risks and
opportunities via our sustainability governance structure. During
2024, sustainability governance reviewed papers on the effects
of AI on water use, the contribution of our investments to
Sustainable Development Goals, and woodland restoration
projects via carbon sequestration.
Investing in nature
During 2024, our investments team began to explore ways
to add nature-supporting assets and funds into our
investment portfolio.
Also during 2024, we funded over £720,000 towards projects
Impact on nature.png
from our community investment and carbon sequestration funds
to support nature-related initiatives in the UK, Italy, Canada,
Guatemala, and the Gambia. This included support for Atlantic
Coastal Action Plan, Italy ZeroCO2, the National Trust, the
Wildfowl and Wetlands Trust, and more.
Protecting biodiversity
“This Admiral partnership means we are able
to level up our freshwater protection and
biodiversity enhancement in 2024 and offer
training opportunities, so the next generation
of environmental professionals are better
prepared to meet future challenges.”
  ACAP Executive Director, Kathleen Aikens
Admiral has partnered with Atlantic Coastal Action Plan
(ACAP), an environmental non-profit committed to building
and educating sustainable communities in Cape Breton,
Canada. Admiral’s funding supports projects that restore
plant life, improve water quality, plant 10,000 new trees
to support biodiversity, and create internships for aspiring
environmental professionals, enabling the next generation
to help safeguard their future environment.
Biodiversity_CS.png
Biodiversity_CS.png
Admiral Group plc Annual Report and Accounts 2024
61
Sustainability
continued
External Benchmarks and Ratings
Our impact on the UN Sustainable Development Goals
The Sustainable Development Goals (SDGs) are a set of 17 global goals developed by the United Nations that define global
sustainability priorities and aspirations for 2030. The goals aim to address major societal and environmental concerns. Each year,
we seek to understand our contribution to the SDGs by mapping our activities to SDG targets. Below we’ve included the most
relevant targets and how our work supports them.
Targets
Admiral’s activity
Goal 3: Good Health and Wellbeing
Target 3.4: Promote mental health and wellbeing. 
• 30 colleagues trained as Mental Health First Aiders and almost
100 colleagues in our Wellbeing Representatives Network
• Welfare Management and Support training for all people
managers
• A ‘Proactive Health Management’ programme and support
for all colleagues
• ‘Lived experience’ communities around neurodiversity
and Women’s Health
• Webinars and education on addiction, testicular cancer,
menopause, cancer, financial health, fertility, skin health
and endometriosis
Goal 4: Quality Education
Target 4.4: Increase the number of youths and adults who
have relevant skills, including technical and vocational
skills, for employment, decent jobs, and entrepreneurship.
• 22 partners across the globe who focus on supporting those
who face barriers to employment to secure meaningful
and sustainable jobs in sectors they feel passionately about,
including Project Mahampy in Madagascar, The King’s Trust
‘Digital Skills Pathway’ in Wales and SEEDS, India
• Over 3,300 people enrolled on Admiral-funded employability
programmes
• Over 1,300 people into meaningful employment
Goal 5: Gender Equality
Target 5.5: Ensure women’s full and effective participation
and equal opportunities for leadership at all levels
of decision making in political, economic, and public life.
• Set annual target on percentage of women in senior leadership;
aligned remuneration and treasury KPIs with this target
• Invested in programmes to help more women into meaningful
and sustainable employment including Project Mahampy,
Madagascar, EVA, Italy, Women Unlimited in Canada, and Code
First Girls in UK
Goal 8: Decent Work and Economic Growth
Target 8.3: Promote development-oriented policies that
support productive activities, decent job creation,
entrepreneurship, creativity and innovation, and encourage
growth of micro-, small- and medium-sized enterprises,
including through access to financial services. 
Target 8.6: Substantially reduce the proportion of youth
not in employment, education or training. 
Target 8.10: Strengthen the capacity of domestic financial
institutions to encourage and expand access to banking,
insurance and financial services for all.
• By protecting against risks, insurance increases the capacity
of individuals, households, and businesses to absorb financial
shocks and continue participation in a healthy, inclusive economy
• Invested in Llamau in UK, focused on supporting those furthest
from the labour market, as well as in The Kings Trust, with more
than 200 young people accessing training that prepared them
for digitally-enabled roles
• Supported small businesses in the UK with financial resilience
through commercial insurance startup Admiral Business.
Admiral Group plc Annual Report and Accounts 2024
62
Sustainability
continued
Targets
Admiral’s activity
Goal 9: Industry, Innovation, and Infrastructure
Target 9.4: By 2030, upgrade infrastructure and retrofit
industries to make them sustainable, with increased
resource-use efficiency and greater adoption of clean
and environmentally sound technologies and industrial
processes, with all countries taking action in accordance
with their respective capabilities.
• Invested in green infrastructure funds and green bonds
via our net zero investments approach
• Partnered with the Welsh Sports Association to provide seed
funding for community innovation in sustainability
• Contributed towards industry think tanks and sustainability
forums e.g. ABI Climate Change Group
Goal 10: Reduced Inequalities
Target 10.2: Empower and promote the social, economic,
and political inclusion of all, irrespective of age, sex,
disability, race, ethnicity, origin, religion or economic or
other status.
• Maintained 45% female representation at Group Board,
as well as ethnically diverse representation
• Welcomed over 150 colleagues to one or more of six colleague
DE&I Working Groups, which help to drive education and
awareness of under-represented groups across the business
• Sponsored Pride Cymru for 24th consecutive year
• Hosted the 2024 South Wales Race Equality Roundtable
• Raised awareness of under-represented groups and the
importance of DE&I across the business through campaigns
such as National Inclusion Week, Black History Month, Pride
Month, International Women’s Day and International Day of
People with Disabilities
Goal 11: Sustainable Cities and Communities
Target 11.1: By 2030, ensure access for all to adequate,
safe and affordable housing and basic services.
Target 11.2: Provide access to safe, affordable, accessible,
and sustainable transport systems for all.
Target 11.5: By 2030, significantly reduce the number
of deaths and the number of people affected and
substantially decrease the direct economic losses relative
to global gross domestic product caused by disasters,
including water-related disasters, with a focus on
protecting the poor and people in vulnerable situations.
• Supported housing affordability via home insurance and home
refurbishment loans
• Supported access to transport via motor insurance, reducing
the financial risk of car ownership and use
• Supported rebuilding after extreme weather events by joining
Build Back Better through Flood Re in the UK
• Supported sustainable transport via EV underwriting
and product innovation, and our Sustrans partnership
• Donated to flood appeals in Valencia, Spain and South Wales,
UK to support communities affected with immediate repairs
and future flood prevention
• Donated to the Disaster Emergency Committee to support their
mission to save, protect and rebuild lives through effective
humanitarian response, plus joined their Rapid Response Network
to help raise funds quickly and efficiently in times of crisis
Admiral Group plc Annual Report and Accounts 2024
63
Sustainability
continued
Targets
Admiral’s activity
Goal 12: Responsible Consumption and Production
Target 12.5: By 2030, substantially reduce waste
generation through prevention, reduction, recycling
and reuse.
Target 12.6: Encourage companies, especially large
and transnational companies, to adopt sustainable
practices and integrate sustainability information into
their reporting cycle.
• Reduced waste in our supply chain by encouraging repair over
replacement and supporting customers to prevent risk
occurrences
• Encouraged other companies to adopt sustainable reporting
and disclosures via engagement with investees and suppliers
Goal 13: Climate Action
Target 13.1: Strengthen resilience and adaptive capacity
to climate-related hazards and natural disasters.
Target 13.3: Improve education, awareness-raising and
human and institutional capacity on climate change
mitigation, adaptation, impact reduction and early warning.
• Strengthened UK customers’ resilience to climate change via
household insurance features like Storm Hub and the Build Back
Better initiative
• Planned to address climate adaptive capacity of Admiral’s value
chain through our Net Zero Transition Plan
• Supported climate resilience and education in our communities
via partnerships with environmentally-driven charities
• Educated employees on climate change mitigation and
adaptation via Green Week and Green Team
ESG ratings and rankings
We welcome independent external assessment from a range
of environmental, social, and governance (ESG) ratings providers.
We do this as a way to engage with the wider industry
and track our performance on various sustainability topics.
Our performance in 2024
In July 2024, we received an MSCI ESG rating of AAA,
upgraded from AA. In December 2024, Morningstar
Sustainalytics gave us an ESG risk rating of 24.2, and we were
assessed to be at medium risk of experiencing material
financial impacts from ESG factors. Admiral Group is a CDP
discloser and in February 2025 received a rating of C.
MSCI ESG rating assessment20
2024: AAA
For page 86.jpg
2023: AA
2022: AA
2021: A
CDP Climate Score
2024: C
CDP_disiclosure-insight-action_logo_CMYK.png
2023: B
2022: D
2021: C
Sustainalytics ESG Risk Rating21
2024: 24.2
Sustainalytics_logo.png
2023: 24.3
2022: 21.0
2021: 22.3
ISS ESG performance
2024: C-
ISS ESG Logo.png
2023: C-
2022: C-
2021: C-
20 The use by Admiral Group of any MSCI ESG research LLC or its affiliates (‘MSCI’) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute
a sponsorship, endorsement, recommendation, or promotion of Admiral Group by MSCI. MSCI services and data re the property of MSCI or its information providers, and are provided
‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
21 Logo copyright ©2024 Sustainalytics, a Morningstar company. All rights reserved. This publication includes information and data provided by Sustainalytics and/or its content providers.
In no event the ESG Risk Rating shall be construed as investment advice or expert opinion as defined by the applicable legislation. Information provided by Sustainalytics is not directed
to or intended for use or distribution to India-based clients or users and its distribution to Indian resident individuals or entities is not permitted. Morningstar/Sustainalytics accepts no
responsibility or liability whatsoever for the actions of third parties in this respect. Use of such data is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers/
Admiral Group plc Annual Report and Accounts 2024
64
Streamlined Energy and Carbon Reporting (SECR)
This statement has been prepared
in accordance with our greenhouse
gas (GHG) emissions pursuant
to the Companies (Directors’ Report)
and Limited Liability Partnerships
(Energy and Carbon Report)
Regulations 2018, which
implement the government’s policy
on Streamlined Energy and
Carbon Reporting.
Admiral tree.png
Energy and carbon reporting
During the reporting period January 2024 to December 2024, our measured Scope 1 and 2 emissions (market-based) totaled 1,099
tC02e. Reported figures for 2023 comprise of an additional column omitting fugitive emissions from refrigerant leakage. This is to
demonstrate the impact of a one-off event activation of a fire suppression system in 2023.
FY 2023 (tC02e)
FY 2024
UK 2
Rest of
world2
Total 2
FY 2023
(tC02e)
Total
adjusted1
UK
Rest of
world
Total
Scope 1
1,453
29
1,482
494
448
94
542
Scope 2 Location-based
1,300
673
1,973
1,973
1,254
771
2,025
Scope 2 Market-based
0.14
604
605
605
–
557
557
Total Scope 1 & 2 Location-based
2,753
702
3,455
2,467
1,702
866
2,568
Total Scope 1 & 2 Market-based
1,453
633
2,087
1,099
448
651
1,099
Scope 1 & 2 intensity per employee
market-based3
0.18
0.44
0.22
0.11
0.05
0.12
0.07
Scope 1 & 2 intensity per employee
location-based3
0.34
0.48
0.36
0.26
0.18
0.16
0.17
Scope 34
694
1,241
1,935
1,935
961
1,375
2,336
1Adjusted to show the emissions without the scope 1 fugitive gas leak.
2Restated SECR figures using 12 months data and evidence (previously reported Admiral Group SECR in 2023 Annual Report was based on nine months data & evidence and
three months modelled).
3Intensity based on headcount.
4 Details of Scope 3 categories are provided on page 65.
Admiral Group plc Annual Report and Accounts 2024
65
Streamlined Energy and Carbon Reporting (SECR)
continued
Explanation of movements
Admiral Group reports both Scope 2 market-based emissions
and Scope 2 location-based emissions. A location-based
method reflects the average emissions intensity of grids
on which energy consumption occurs (using a grid-average
emissions factor). A market-based method reflects emissions
from electricity that companies have purposefully chosen to
procure. Admiral reports both figures to demonstrate the
variance between these two reporting methods and to report
against Admiral’s science-based target, set based on Scope 1
and 2 market-based emissions.
Overall, Scope 1 and 2 (market-based) emissions decreased
by 47% versus 2023. Our Scope 1 and 2 location-based
emissions decreased by 26% versus 2023. This decrease
is predominantly due to a reduction in fugitive gas emissions
in 2024 versus 2023. In 2023, a fire gas suppression system
activation used to protect data centres from business impact
caused a fugitive gas leak equal to 988 tC02e. Excluding the
impact of the leak, Scope 1 and 2 (market-based) emissions
were consistent with 2023.
In 2024, our Scope 1 emissions decreased to pre-2023 levels.
Our Scope 1 emissions reduced by 63% between 2023 and
2024. Our natural gas usage decreased by 15% during the same
period. This reduction is due to removing leased vehicles in the
UK at the end of 2023 and in Halifax at the start of 2024, as well
as reducing the consumption of natural gas in the UK sites.
In 2024, we removed HFC-227ea from our final site in the UK
and replaced it with IG55, which is a more sustainable and less
impactful gas, whilst still protecting our data centres.
Admiral Group procures biogas for the full volume of natural
gas used at our UK sites by means of certification. This ‘green
gas’ procurement has not been used to adjust our Scope 1
emissions reporting in 2024, which is in line with the
Greenhouse Gas (GHG) protocol guidance.
Though we have maintained a hybrid work model, the past
year has seen an increase in colleagues working and spending
time in our offices, and subsequently an increase in utilities
consumption. Due to this, Scope 2 location-based emissions
increased by 3% and Scope 2 market-based emissions
decreased by 8% largely due to the expansion of renewable
power use at an office in Delhi.
To mitigate the uplift in utilities consumption, we closely
monitor energy usage. We upgraded our Building Management
System (BMS) at our head office in Cardiff and our office
in Swansea in 2024 to further optimise data and assist in the
monitoring and performance of key building systems that
contribute to Scope 1 and 2. We continue to engage all our
sites on the quality of data collection and reporting to improve
and enhance our Scope 1 and 2 contributors, and to operate
in a more strategic and more efficient manner.
Our Scope 3 emissions are comprised of business travel, fuel
and energy-related activities not included in Scope 1 or 2 (FERA),
waste and water supply. Our measured Scope 3 emissions
totaled 2,336 tC02e in 2024, an increase of 21% from last year.
This increase is caused by an increase in business travel
emissions driven predominantly by UK-based travel. Increased
waste reported by global sites caused an additional increase in
Scope 3 emissions. Business travel emissions are being further
reviewed in 2025 to develop accurate baselining and targets
for future reductions and to develop sustainable alternatives.
During the year, our energy use due to fuel and electricity
consumption totaled 10,687,520 kWh, of which 77% was
consumed in the UK. The split between fuel and electricity is
displayed below. All of the electricity consumed in the UK, Italy
and one Spanish office comes from certified renewable
resources, as does a proportion of the electricity consumed at
one Delhi site, and we continue to look at options for net zero
or renewable energy resources where geographically possible.
Methodology
We quantify and report our organisational GHG emissions
in alignment with the World Resources Institute’s Greenhouse
Gas Protocol Corporate Accounting and Reporting Standard
(revised version) and in alignment with Scope 2 guidance.
We consolidate our organisational boundary according to the
operational control approach, which includes all our operations
and sites. The GHG sources that constituted our operational
boundary for the year are:
• Scope 1:
– Natural gas combustion
– Refrigerant gas leakage
– Vehicle combustion
• Scope 2:
– Purchased electricity - standard
– Purchased electricity - renewable
• Scope 3:
– FERA
– Waste
– Water
– Business Travel
In some cases, where data is missing, values have been
estimated by extrapolation of available data from the previous
year as a proxy.
The Scope 2 guidance requires that we quantify and report
Scope 2 emissions according to two different methodologies
(‘dual reporting’): (i) the location-based method, using average
emissions factors for the country in the reported operations
take place; and (ii) the market-based method, which uses the
actual emissions factors of the energy procured.
FY 2023 (kWh)
FY 2024 (kWh)
Energy consumption (kWh)
UK
Rest of world
Total
UK
Rest of world
Total
Electricity
6,276,799
2,528,086
8,804,885
6,056,169
2,436,647
8,492,816
Fuels1
2,559,304
79,337
2,638,641
2,161,574
33,130
2,194,704
1Natural gas and transportation fuels (petrol and diesel).
Admiral Group plc Annual Report and Accounts 2024
66
Task Force on Climate-related Financial Disclosures
(TCFD)
Admiral is committed to tackling climate change and disclosing our
approach to managing climate-related financial risk. The following sections
of the report is compliant with the guidelines set out in the Task Force on
Climate-related Financial disclosures (TCFD), the FCA’s listing rule UKLR
6.6.6 (8) and the climate-related financial disclosures as required by the
Companies Act. See the reference table on page 76 for more details on
our compliance with the 11 recommendations of the TCFD guidelines.
Governance
Clear accountability and ownership enables
us to deliver our strategy while managing our
risk exposure.
Board responsibility
The Group Board is responsible for overseeing our climate
change strategy and risk management practices. In 2024,
the Board discussed climate in three meetings, one of which
included discussion of an environmental deep-dive report.
The climate-specific responsibilities of the Board, and
associated committees of Group Risk Committee, Group
Audit Committee and Group Remuneration Committee,
are integrated into the business as usual risk management
framework. Climate-related matters are discussed alongside
other environmental issues and sustainability issues with Group
Risk Committee and Group Audit Committee discussing
climate-related issues twice in 2024. More details of these
sub-committees and their role in sustainability governance
can be found on page 49.
Embedding sustainability in existing
governance structures
Existing governance structures are increasingly required
to consider climate risk-related matters. As with Board
responsibility, the approach to climate-related issues is in line
with wider sustainability-related issues. The Sustainability
Steering Committee, which is discussed in detail on page 49,
considers climate-related matters alongside other
environmental matters.
The five working groups which form the core of the
sustainability governance at Admiral, discuss climate-related
issues. Of particular relevance to climate-related maters are the
Risk, Compliance and Reporting Working Group, the Customer
and Product Working Group, and the Operations and
Investments Working Group. These are also discussed in more
detail on page 50.
These committees and working groups support the activities
of key members of senior management, namely the Group
Chief Risk and Compliance Officer, Group Chief Sustainability
Officer, Group Chief Executive Officer and Group Chief
Financial Officer. Details of their specific roles in relation to
sustainability and climate change are detailed on page 49.
In addition to the committees and working groups detailed,
there are additional committees that have discussed climate-
related matters. These are:
• Group Investment Committee has overseen the further
inclusion of climate-related factors and considerations
to drive the investment portfolio’s strategic asset allocation.
It has also approved investment in green finance, and
overseen the development of Admiral’s Investment Policy
• Group Asset and Liability Committee (GALCO) is
responsible for overseeing reinsurance agreements, a key
risk management mechanism for reducing Admiral’s exposure
to acute physical risks – especially for the household book.
GALCO also oversee the climate scenarios which are used
in the Own Risk and Solvency Assessment (ORSA) ahead
of GRC approval
• Product and Pricing Committee (PPC) oversees the
assumptions used in the pricing of our UK insurance
products. As climate-related risks increase, this committee
looks to include the latest information on expected weather
patterns and technology trends into pricing
• Reserving Committee oversees the process of setting the
claims reserves in line with the Group’s reserving policies and
IFRS 17 requirements. This includes ensuring that the impact
of any serious weather events and the uncertainties
associated with new technologies are considered. This helps
to ensure that our financial statements capture any
significant weather-related impact in the short-term while
the Group Risk team run scenarios to consider if we are
adequately covered in the medium to long-term.
This approach also supports good customer outcomes
by maintaining fair pricing and ensuring financial protection
in the face of climate change and technological uncertainty.
An organisational chart has been included on page 50 showing
the relationships between the key committees and working
groups discussed above.
Admiral Group plc Annual Report and Accounts 2024
67
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Risk management
Integrating climate-related risks into the
Group risk management framework
The Group Risk function undertook significant steps this year
to further integrate climate-related risks into the Group risk
management framework, ensuring alignment with regulatory
expectations, industry best practices, and Admiral’s
sustainability objectives. This work reflects the growing
importance of climate risks to Admiral’s long-term resilience
and sustainability; and drives a systematic approach to the
identification, assessment, management and reporting
of climate risks across the Group. The development and
integration activities were overseen by the Risk, Compliance
and Reporting Sustainability Working Group.
Key integration developments in 2024
In 2024, we incorporated the following measures to integrate
climate risk into our existing risk management structures:
Establishing climate risk appetite
Group risk developed its first climate risk appetite statement,
outlining clear risk tolerances for climate-related exposures.
This statement incorporates measurable metrics such as
carbon intensity, sectoral exposure, and the Group’s ability
to manage long-term risks without compromising its solvency
or operational resilience. To achieve this, key risk indicators
have been established to monitor exposures and thresholds,
with a trial phase throughout 2025 to ensure their
effectiveness as early indicators of our climate risk exposures.
Integration into the risk taxonomy
The Group’s risk taxonomy was enhanced to better incorporate
climate-related risks, including subcategories for physical,
transition, and liability risks. This ensured a robust
framework for identifying and managing climate-related risks
across the Group.
Developing a climate risk materiality framework
A tailored climate risk materiality framework was introduced
to enable a consistent assessment of the materiality of
climate-related risks. This framework aligns with the existing
traditional risk materiality framework for other financial and
non-financial risks, with tailored climate risk criteria introduced
to support assessing the impact and probability of climate risks
over short, medium and long-term time horizons. Part of this
development included harmonising timescales, over which
climate risks are considered to align more closely with existing
business practices.
Establishing climate risk registers
for our subsidiaries and Group
Climate risk registers were developed at the entity and Group
levels to record identified risks, their potential impacts,
and corresponding mitigation actions. These registers were
dynamically updated through workshops with senior risk
personnel and other business stakeholders, ensuring that
the Group maintained a proactive and practical approach
to climate risk identification and management.
Enhancing governance and reporting
Ensuring robust oversight, climate-related risks are being
increasingly integrated into the Group’s existing risk reporting
mechanisms. Climate risks are reviewed by the Group Risk
Committee within the GCRCO Report, with clear escalation
protocols established for significant risk exposures in line with
the Group’s risk management framework.
Embedding climate risks into other risk
management processes
Further integration of climate-related risks into broader risk
management processes, include:
• Scenario analysis: Additional climate scenarios were included
in ORSA stress tests to evaluate the resilience of the Group’s
financial and operational performance
• Resilience testing and assessments: The potential impact
of extreme weather events is also a key consideration
in operational resilience testing to support greater
understanding of the impacts of physical risks
• Group ORSA integration: A climate-related ad-hoc ORSA
trigger was established as part of the Group’s ORSA Policy
• Investment risk management: Climate risk considerations
are comprehensively factored into the evaluation of Admiral’s
investment portfolios and investment mandates, particularly
for high-carbon and vulnerable sectors.
Looking ahead
This integration has established a solid basis for managing
climate-related risks across the Group. However, Admiral’s risk
culture focuses on continually improving our risk management
practices. Therefore, next year and beyond, the Group risk
function intends to:
• Expand the use of scenario analysis to deepen
understanding of long-term climate impacts
• Refine and expand upon the suite of key risk indicators to
improve climate risk monitoring and early warning capabilities
against risk appetite
• Further integrate subsidiary climate risk management into
local policies and standards, and with our external partners
and regulators to align practices with emerging standards.
Through these ongoing efforts, Admiral remains committed to
maintaining its resilience against the effects of climate change
and supporting the ongoing transition to a sustainable future.
Admiral Group plc Annual Report and Accounts 2024
68
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Risk appetite
The Board has established its approach to sustainability risk,
focusing on assessing potential risks that could impact
Admiral's ability to balance long-term financial performance
with its ESG responsibilities.
Sustainability risk appetite is further defined at sub-risk levels,
namely: climate change, social, governance, and other
environmental risks. This allows for more precise management
of these risks and their alignment with strategic goals.
The Board takes a cautious approach to climate change,
incorporating climate change risks into investment,
underwriting, and strategy to align with the Group’s net zero
carbon emissions goal and support the transition to a low-
carbon economy.
The Board approved the sustainability risk and sub-risk
appetites, including climate change in October 2024. They will
be road-tested throughout 2025 to verify that they operate
as expected, in accordance with Key Risk Indicator thresholds,
and to allow for a period of calibration.
The 2024 Spanish floods and the damage caused by Storm
Darragh in Wales, serve as a powerful reminder of the
growing prevalence of climate-related risks and the critical
need for robust risk management frameworks. Natural
disasters worldwide demand swift and decisive action
to protect our customers, employees, and the communities
we serve.
Effective crisis response begins with immediate incident
notification, ensuring timely communication across Admiral.
Our risk management escalation protocols enable us to
rapidly assess the scope of the incident, identify impacted
stakeholder groups, and prioritise actions to mitigate harm.
From deploying resources to support affected staff, or swift
responses to our customers in a crisis, our ability to act
decisively is grounded in our commitment to resilience
and crisis preparedness. By continuously refining our risk
assessment processes we ensure that Admiral is well-
equipped to respond in times of need. Whether
addressing immediate safety concerns or contributing
to long-term recovery efforts, our swift response
underscores our commitment to protecting lives, livelihoods,
and the environment.
This is not only an operational imperative for Admiral,
but also a reflection of our responsibility to lead with care,
ensuring we stand by our customers, employees and
communities when they need us most.
Stepping through the risk management cycle
Climate risk management involves following the risk
management cycle in the same manner as the Group’s principal
risks described on page 89-93, which includes identifying,
assessing, managing, monitoring, and reporting risks.
Climate risk is woven through our principal risks and does
not give rise to a specific principal risk in its own right.
See the table on page 70 for information on which principle
risks are impacted by climate-related risks.
Risk identification
Admiral annually identifies and assesses emerging and existing
climate risks through qualitative workshops with its subsidiaries.
In 2024, the Group risk team led the development of climate-
specific risk registers and materiality criteria, tested in workshops
with subsidiary risk teams and other business stakeholders
covering EUI Ltd, Admiral Pioneer, Admiral Money, and Admiral
Europe. The outcome of the workshops informed a tailored list
of climate risks categorised according to our internal climate
risk taxonomy and an assessment of materiality, time horizon
and business areas and/or product lines impacted.
Admiral Group is also part of the ABI climate change working
group, which helps identify climate risks through industry
expertise. These insights also inform our climate risk
identification, scenarios and financial impact analyses.
Risk assessment
Assessing the materiality of climate-related risks involves
evaluating both the size of the potential impact and the
likelihood of risk occurrence across short, medium and long-
term time horizons.
The size of impact considers financial, operational and
reputational consequences of risk such as physical damage
from extreme weather events or transitional risks arising from
regulatory changes or shifts in market dynamics. In our analysis
of impact, we consider four levels of increasing materiality,
which are tailored for each area of the business. Broadly they
may be collectively defined as:
• Minor: Impact resulting in manageable adjustments
to business operations or models
• Moderate: Impact requires recalibration of underwriting
and operating processes
• Significant: Impact required strategic adjustment
to risk models and operations
• Major: Impact may lead to solvency challenges
if management actions are not taken.
Likelihood is categorised across four levels by considering
several factors such as scenario analysis, historical data and
forward-looking assumptions to determine the probability
of occurrence.
The likelihood and impact outcomes are combined to create
a risk rating from low to very high. This structured methodology
ensures a transparent and robust evaluation of climate risks,
aligning with regulatory expectations and supporting
prioritisation, informed decision making, and disclosures.
Risks are rated high or very high if they could significantly
affect Admiral’s ability to meet its strategic objectives,
regulatory obligations, or commitments to our customers
and wider stakeholders.
In 2024 this risk assessment was performed qualitatively using
guidelines prepared as part of the introduction of our new
climate risk materiality framework. This qualitative analysis
is complimented by a quantitative stress and scenario analysis,
the details of which are included on page 72-73.
Admiral Group plc Annual Report and Accounts 2024
69
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Time horizons
Climate risk time horizons have been adjusted1 to better align
with several key internal processes and industry practice:
Short term (0-3 years)
This corresponds to Admiral’s typical business planning and
operational cycle, capturing immediate risks and impacts
that align with near-term strategic objectives and
budgeting cycles.
Medium term (4-10 years)
This is more closely related with strategic planning, capital
allocation and risk modelling timeframes, encompassing
transition risks such as regulatory changes and shifts in
market dynamics.
Long term (10+ years)
This is critical for assessing risks from a future view point
such as the climate impacts under difference climate
pathways, assessing the financial impact of physical
and transition risks under different temperatures.
In addition to the qualitative assessments, we have established
internal quantitative guidelines tailored for different business
areas. These guidelines cover financial, claims, operational,
customer, and investment impacts.
Climate risk impact assessment on
Admiral Group’s Statement of Financial Position
Group Finance, in collaboration with Group Risk, perform
an annual assessment of potential impact and likelihoods
of material climate-related risks against the Statement of
Financial Position as reported (short term), and in the longer
term, as follows:
1. The climate-related risks identified by Group Risk are used
to analyse whether and how those risks could impact
the Statement of Financial Position
2. The potential impact of climate-related risks is assessed
for those balances that constitute more than 1% of the total
assets, equity or liabilities. This threshold ensures that
all material line items are captured
3. In addition, the completeness of the assessment
is considered by considering all climate- risks identified
and whether they could have a material impact on any line
of the balance sheet.
Following this assessment, no such additional areas were
identified as a result of this review and we continue with our
methodology development so we can assess more fully the
impact on our projected business plan in future periods and
provide further disclosures.
Risk mitigation and monitoring
The main strategy for mitigating climate-related risk involves
executing the Group strategy to diversify revenue and profit
streams, reducing reliance on UK Motor thereby mitigating
the transition risks of changes in the nature of mobility.
Efforts include investing in new and existing businesses that
develop and test products to meet evolving customer needs
and preparing for the shift to EVs. Regulatory and reputation
risks from climate change are managed by reducing GHG
emissions supported by the approval this year of our GHG
targets from SBTi.
We manage risks that climate change poses to our insurance
portfolio in the same way as other insurance risks. This includes
disciplined pricing, assessing the impact by peril, setting clear
underwriting criteria, regularly evaluating our reserving
approach, and transferring risk through reinsurance. We also
leverage industry-leading flood, windstorm and other
catastrophe models to understand the underlying physical
underwriting risk, determine the amount of risk accepted,
assess what risk is mitigated, and establish appropriate
reinsurance protection for risk transfer. Pricing is the primary
tool for managing climate-related risks; however, due to its
commercial sensitivity, specific details about this approach
are not disclosed.
The following table shows a selection of material risks from
our climate risk register and key mitigation actions. For more
detail on the steps Admiral is taking to manage exposures
to transition risk, see the Transition Plan where these are
detailed for each element of our value chain.
1In 2023 the climate risk time horizons were defined as 0-4 years and 5-10 years for short and medium-term time horizons, respectively. Following significant work on redesigning
our risk management framework, this change allowed for better integration with existing business process (see page 67).
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Task Force on Climate-related Financial Disclosures (TCFD)
continued
Climate change sub-risk types
Climate-related risks
Steps to manage - metrics and targets
Acute physical risks
Primary business impacted:
UK Home
Short-term impact: Moderate
Medium-term impact: Significant
Long-term impact: Significant
PR&U affected: Reserving,
insurance, catastrophe
• Acute physical risks refer to severe
weather events that can cause
significant damage and higher-than-
expected insurance claims. These
include wildfires, freezes, hail,
windstorms, and supply chain
disruptions.
• Our primary mitigants for managing exposure
is via pricing and reinsurance. Both mechanisms
mitigate large losses from natural catastrophes
• Our pricing and reserving is continually adjusted
as we learn more about changes to our climate,
in particular the volatility and increasingly frequency
of large storms, heatwaves and freeze events
• We monitor our claims experience, and this is
used to provide a check and additional data for
tailoring our pricing
• We utilise Stress and Scenario Testing (SST)
to assess the impact of natural catastrophe
events on our balance sheet. A specific physical
climate risk scenario has been modelled, focusing
on the UK Motor and Household Insurance lines,
which are significant aspects of our portfolio.
Chronic physical risks
Primary business impacted:
UK Home
Short-term impact: Moderate
Medium-term impact: Significant
Long-term impact: Significant
PR&U affected: Reserving,
insurance, strategic, reinsurance
• Chronic physical risks involve long-
term changes such as coastal
erosion, persistent flooding, and
subsidence that exceed expected
and reserved levels, potentially
leading to large financial losses or
making certain risks uninsurable.
Policy and legal transition risks
Primary business impacted: All
Short-term impact: Moderate
Medium-term impact: Significant
Long-term impact: Significant
PR&U affected: Legal and
regulatory, reputation
• Policy and legal transition risks stem
from regulatory changes, such as
mandatory internal carbon pricing
or taxation, increased regulatory
burden, and the consequent rise in
compliance costs. These changes
can impact our strategic decisions
and increase non-compliance risks.
• In 2024, Group risk developed a litigation stress
test to assess the impact of legal risks on our
business. We expanded our sustainability team
to manage resource pressures from increased
regulation and also engaged external experts
to support compliance through industry-aligned
expertise.
Technology transition risks
Primary business impacted: All
Short-term impact: Moderate
Medium-term impact: Moderate
Long-term impact: Moderate
PR&U affected: Strategic,
insurance
• Technology transition risks involve
the adoption of new technologies,
such as electric vehicles (EVs) and
eco-friendly building practices, which
can cause unexpected changes in
customer behaviour, revenue, and
claims if they evolve differently from
our business plans.
• Electric Vehicle underwriting is an essential
component of our strategy, following a rigorous
pricing approach similar to that applied to
combustion engine vehicles
• Modifications to home insurance policy
underwriting conditions are evidence-based
and follow tried and tested evidence-based
change procedures
• Claims experience from all business is closely
monitored and feeds back into pricing
assumptions. This is given particular focus
for policies which include new technologies.
Market transition risks –
Changing customer demand
Primary business impacted: All
Short-term impact: Moderate
Medium-term impact: Significant
Long-term impact: Significant
PR&U affected: Strategic,
insurance
• If customer climate expectations
evolve at a different pace than
Admiral's actions, it may result
in a loss of business
• Customer behaviour may change
due to climate-related factors, such
as increased adoption of electric
vehicles or the introduction of lower
speed limits, which could affect
pricing models
• Economic volatility resulting from
climate change (e.g., loss of jobs
in high-emission sectors or climate-
driven inflation) could reduce
individuals' ability to pay for insurance.
• Admiral actively assesses evolving market trends
and customer preferences to understand potential
impacts on our business. Through market
research, we aim to identify shifts in demand and
integrate these insights into our products and
service development. This supports our response
to changing expectations and emerging
opportunities in the transition to a more
sustainable economy
• Admiral created Admiral Pioneer, a venture
business to support diversification into non-
traditional mobility insurance. An example of this
is our investment into Veygo.
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71
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Climate change sub-risk types
Climate-related risks
Steps to manage - metrics and targets
Market transition risks –
Supply chain
Primary business impacted: All
Short-term impact: Significant
Medium-term impact: Significant
Long-term impact: Significant
PR&U affected: Strategic,
insurance, reputation
• There are increasing costs associated
with the supply chain due to climate-
related risks
• The cost of reinsurance is rising
and cannot be passed on to
customer rates
• There is a risk that the supply chain
may not transition in line with
Admiral's future targets, potentially
causing the Company to miss its
publicly stated emissions goals
• High-emission activities within the
supply chain, such as mineral mining
for batteries, could lead to
reputational harm.
• Admiral is continuously refining its procurement
and on-going third-party management process
to better incorporate ESG (Environmental, Social,
and Governance) performance criteria for all
partners and suppliers – in order to promote
sustainability and responsible business practices
across the full third-party life cycles.
Market transition risks –
Investments
Primary business impacted: All
Short-term impact: Moderate
Medium-term impact: Significant
Long-term impact: Significant
PR&U affected: Market, reputation
• Investment returns could be
adversely affected by transition risks,
such as the downgrading of high-
emission sectors, impacting overall
investment performance.
• Admiral has integrated climate-related
considerations into its investment decisions.
The decision making process is designed to support
investments in renewable energy infrastructure,
green bonds, and other issuers with their own
transition plans. Admiral has established specific
climate-related metrics for its investments, with
detailed targets that are regularly monitored
• Investments are subject to strict concentration
limits to effectively manage exposure.
At a counterparty level limits are set to minimise
exposure to specific high-emitting entities.
At a sector level, limits are imposed to reduce
exposure to high-risk sectors.
Market transition risks
and opportunities
• This comprehensive assessment highlights key areas where market transition risks due
to climate change could affect Admiral's operations, customer base, and investment
strategies. Proactive measures and adaptive strategies are essential to mitigate these risks
and support long-term sustainability. The transition also gives rise to climate opportunities
such as insurance of new technologies.
Notes to the table: these risks cover actions, which may be taken by the 1st and 2nd lines of defense. For more information on our three lines of defence model
please see page 148. The four levels of impact are minor, moderate, significant and major as described on page 68.
Reporting on climate-related risks
Admiral is required to report publicly on material climate risks through several standards including TCFD and CFD. We are also
preparing to report climate risks in line with the newly introduced CSRD regulations. In addition to our regulatory requirements,
we voluntarily publish data on climate risk related to the carbon disclosure project (CDP).
Changes in the climate risk profile of the Group, and any progress on actions, is reported to the Group Risk Committee.
Other information on sustainability activities is reported to the Sustainability Steering Group, Group Asset and Liability Committee,
Investment Committee, and Product Pricing Committee’s on a periodic basis as appropriate. See the governance section
on page 49-50 for more details on reporting to Board Committees.
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Task Force on Climate-related Financial Disclosures (TCFD)
continued
Scenario analysis and stress testing
Climate scenario analysis and stress testing are
important risk management tools for evaluating
Admiral's resilience under various climate
pathways. These methodologies help assess the
financial and non-financial impacts of physical,
transition, and liability risks over short, medium,
and long-term time periods. By modelling
scenarios such as rapid decarbonisation or
delayed policy action, we can identify potential
vulnerabilities in our business model, investment
strategies, and the products and services offered
to customers.
From a customer perspective, this analysis helps Admiral
prepare for maintaining good outcomes for customers through
service continuity, effective claims management, and product
design that addresses changing customer needs. It also shows
Admiral’s commitment to protecting policyholder interests
by anticipating risks that may affect coverage, affordability and
accessibility. Climate scenario and stress testing, therefore,
provides a comprehensive assessment to support strategic
decision making, enhance resilience, support regulatory
compliance, and uphold solvency and financial viability
for the benefit of all our stakeholders.
Scenario design and calibration
To design climate scenarios relevant for the business,
the Group Risk function utilised industry-standard scenarios
and adapted them specifically for Admiral’s operations.
We leveraged the Network for Greening the Financial System
(NGFS) scenarios of ‘Hot House’ and ‘Delayed Transition’
to create three distinct scenarios for physical risk, transition
risk, and litigation risk.
Scenario calibration
Calibrations were made to these scenarios to tailor them to our
business. For example:
• Admiral’s typically short-duration policies and investment
portfolio required reducing the timelines in scenarios
to evaluate impacts in the short and medium term.
• Several assumptions specific to motor insurance have been
introduced, such as impacts on car and van damage claims
and bodily injury reserves
• The investment impacts of transition risk were adjusted
to reflect downgrades in industries that are sensitive
to climate-related events
• Litigation risks suitable to the size of Admiral Group were
considered based on an analysis of external, past experience
and regulatory guidelines in the regions where we operate
• Risks associated with the pricing of electric vehicles were
also considered, given the high exposure and the early stage
of insurance for this technology.
Link to risk appetite and capital management
Our risk appetite for climate risks is part of our capital adequacy
framework, with annual reviews to align with evolving climate
risk understanding and regulations. We consider climate risks
in our Own Risk and Solvency Assessment (ORSA) and conduct
stress tests to assess their potential impact on solvency and
capital. If the impact of climate risks causes our Solvency
Capital Ratio to fall below regulatory thresholds, we take action,
such as adjusting reinsurance arrangements or reallocating
capital to manage these risks effectively.
Scenario analysis results directly influence several
business activities:
• The ORSA, which incorporates at least three climate
scenarios focused on transition, physical, and litigation risks
for 2024
• Capital adequacy, ensuring significant risks are included
in Admiral's provisions due to potential short-term
physical risks
• Regulatory disclosures, particularly ISSB and TCFD public
reporting, as well as PRA’s SS3/19 guidance on scenario
use in financial planning.
Due to the complexity of scenario development, it is crucial
to communicate scenarios clearly, accurately describing their
limitations and assumptions.
Admiral Group plc Annual Report and Accounts 2024
73
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Scenario 1:
Hot House World
(2.9°C by 2100)
The NGFS ‘hot house world –
current policies’ scenario predicts
no climate action, leading to a 2.9°C
temperature rise by 2100. This will
likely increase extreme weather in
the UK, impacting households and
causing inflation in car, van, and
household insurance, similar to
recent stress on a major UK insurer.
This scenario has been interpreted
as resulting in increased incidents of
extreme weather events, impacting
the UK Household book, coupled
with an inflationary environment
impacting UK Car, Van and
Household. The impact of
inflationary pressures on AFSL loan
defaults was also considered.
In line with the the PRA General
Insurance Stress Test 2022
exercise, this scenario includes
historical windstorms (Daria (1990),
Capella (1976), the 1987 Great
Storm (1987), and Vivian (1990))
causing windstorm, storm surge,
and flood losses for UK households.
Scenario 2:
Disorderly Delayed
Transition leading
to Climate Litigation
(1.7°C by 2100)
In the NGFS ‘disorderly – delayed
transition’ the scenario assumes
policies for net zero are delayed
until 2030, causing economic
disruption but limiting global
warming to 1.7°C by 2100. This
scenario assesses Admiral's
litigation and legal risks under the
FCAs new greenwashing laws that
came into force this year,
highlighting regulatory scrutiny
like the Competitions and Markets
Authority's review of online
green claims.
This scenario parallels a recent
greenwashing ruling by the UK
Advertising Standards Authority
against a UK financial services firm
for misleading ads and
environmental claims. It assumes
Admiral's ‘green’ car insurance policy
faces fines and legal action from
NGOs due to misleading
advertisements, omitting lifecycle
impact details and lacking
transparency in benefit calculations.
These are assumed to result
in further costs through
reputational damage.
Scenario 3:
Disorderly Fast
Transition
(1.7°C by 2100)
This scenario also draws on the
NGFS ‘disorderly – delayed
transition’ but has been tailored to
examine a faster-than-anticipated
shift to net zero. It explores the
transition risks related to the switch
from petrol and diesel vehicles to
electric vehicles within Admiral’s
UK motor book, which could impact
profitability, including a mispricing
of 15% for electric vehicles each
year and two large losses per
year through ordinary driving
totaling £35 million.
The scenario also includes an asset
stress component. Since the EU is
the most proactive regulator
regarding climate policies, this
component of the scenario models
the sector-wide downgrades for the
two highest-emitting sectors in
Europe: energy and transport.
Scenario results
Under the Climate Litigation scenario, the Group solvency
ratio stays above the lower trigger of 150% over all three years.
Without management actions, the Disorderly Delayed
Transition and Hot House World scenarios see the ratio drop
below this level, with Hot House World falling under 100%.
These losses stem from increased claims and reduced profit
commissions. By the end of 2026, the Disorderly Delayed
Transition scenario reduces the ratio by 35%, while the Hot
House World scenario sees a 96% reduction when compared
to the base scenario.
Admiral would plan various management actions for each
scenario such as changes to dividend policy, annual repricing
of insurance policies, greater or different use of reinsurance,
and changes to asset allocation in the investment portfolio.
By applying the dividend management action only, both the
Disorderly Delayed Transition and Hot House World scenarios
maintain a Group solvency ratio above the lower trigger
of 150%. Risk mitigation actions are detailed in the Risk
Management section, and our climate risk strategy is outlined
in our Transition Plan.
Admiral Group plc Annual Report and Accounts 2024
74
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Strategy
Integration of climate risk into Admiral’s
business strategy
Our strategy focuses on ensuring long-term resilience and
profitability in a world undergoing climate change, taking into
consideration different climate-related scenarios as described
on page 73. This involves not only mitigating risks but also
seizing opportunities to offer innovative products to our
customers and invest in sustainable growth areas.
Our strategy to reach net zero by 2024 across our key value
chain elements of investments, operations, underwriting and
supply chain activities is discussed at length in our transition
plan. Below we include further detail of how we have
incorporated climate risk, specifically into our strategic thinking.
Incorporating climate risk assessments
We incorporate climate risk assessments into our Group
strategy. Our evaluation of transition risk and reputational risk
drives our target to achieve net zero by 2040, which is a
fundamental component of our strategy.
Further initiatives emerging from our climate risk assessment
include our ambition to become a leading insurer of
electric vehicles.
Our supply chain faces various climate risks, including physical
and transition related. We aim to increase the amount of our
corporate supply chain that aligns with SBTs to reduce both
transition risk and global emissions.
To mitigate the effects of disrupted global supply chains for
parts, we incentivise repairs over replacements to reduce costs
and emissions. When we do replace, we partner with a UK
‘green parts’ specialist to promote recycled parts use.
Our Transition Plan outlines a comprehensive range of
opportunities that form part of our strategy to reduce both
transition risks and emissions.
Embedding physical and transition
risk management
We recognise the increasing frequency and severity of
climate-related events as key physical risks, particularly
for our Household and Motor Insurance portfolios. Additionally,
regulatory changes such as carbon pricing, EV mandates,
and energy efficiency standards in buildings present significant
transition risks. To address these:
• Underwriting strategy: Climate data, such as flood risk and
temperature projections, is integrated into our risk
selection and pricing processes. Motor insurance products
are being adapted to account for the growing share of EVs
in the market
• Investment strategy: The Group Investment team has
implemented an Investment Policy, which sets out its climate
change strategy, metrics and targets. This policy ensures
that our investment portfolio is aligned with the transition
to a low-carbon economy and delivering Admiral’s
commitment to be net zero by 2040.
• Financial planning: Weather modelling is vital to our financial
planning, helping us estimate claims from weather events
over a three-year period. We also consider growth in
transition technologies, like EVs, and their impact on revenue
and claims costs. This helps us prioritise opportunities
aligned with our strategic initiatives and focus risk mitigation
on significant risks
• Acquisitions: Our recent acquisition of More Than included
a sustainability risk analysis that considered the impact that
this activity could have on our climate-related risk portfolio.
Climate-related opportunities
We are proactively developing new products to meet growing
customer demand for sustainable insurance solutions:
• Motor insurance: Admiral offers tailored products for electric
vehicles, offering competitive premiums for environmentally
conscious customers. A key part of our strategy is our aim
to be a leader in electric vehicle insurance
• Household insurance: Green home insurance, providing
cover for eco-friendly home improvements and materials
that enhance energy efficiency.
We also take advantage of opportunities that may arise in our
dealings with other businesses in our supply chain:
• We have invested in Green Bonds and continue to look for
sustainability-related investment opportunities
• We work with our supply chain partners to take advantage
of innovations such as the growing use of second hand parts
in motor repairs.
The types of capital available to us has increased with the
conversion of the Revolving Credit Facility (RCF) to a
Sustainability-Linked Loan. Please see our 2024 Sustainability
Report for basis of reporting on the sustainability-linked loan.
See our Transition Plan for more detail on opportunities we can
access through the transition.
Admiral’s business strategy influences
our approach to climate risk management
Admiral uses the Group strategy and business plan to inform
the development of climate scenarios, including stresses
related to the adoption of EVs. We also incorporate business
planning data to calibrate our internal risk measures, factoring
in projected balance sheet sizes and future customer growth
in our risk impact assessments.
Admiral Group plc Annual Report and Accounts 2024
75
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Metrics and targets
Greenhouse gas metrics and targets
We have set an ambitious target of achieving net zero by
2040 across our Scope 1, 2 and 3 GHG emissions. Net zero
is a rigorous commitment that requires organisations to reduce
their emissions to as close to zero as possible, usually over
90%, with these remaining unavoidable emissions being
balanced by offsets. Details of how we are aiming to achieve
this are detailed throughout our Transition Plan.
Reducing our emissions profile reduces our exposure to
transition risk in investments by ensuring we do not find our
assets becoming less attractive, and in insurance-associated
activities by ensuring we are not subject to large shifts in
customer base because of EV-related regulation.
This year, we have expanded our GHG emissions calculations
to include insurance-related emissions from our UK and EU
Motor portfolios in line with the standards release by the
Partnership for Carbon Accounting Financials (PCAF). This is
in addition to our investment-related emissions arising from
corporate bonds, our corporate supply chain emissions, our
claims supply chain emissions and our operational emissions.
In this report, we have included detail on the two most
significant emissions sources for the Group: Investments and
Underwritten activities. Further detail on these methodologies,
along with Scope 1, Scope 2, and supply chain emissions
is included in the SECR reporting on page 64-65, and in our
Transition Plan. Details of operational emissions targets are
detailed further on page 57.
Investments
Target: Admiral aims to cut investment-related GHG carbon
intensity by 25% by 2025 compared to the baseline set in 2021,
50% by 2030, and reach net zero by 2040.
Risks: Several challenges should be noted: sourcing reliable
and consistent data, avoiding unintentional consequences such
as under-diversification, and reliably determining the expected
risk and return impact of the strategy.
Metrics: To guide and review progress toward overall targets,
several metrics are tracked, as shown below. Investment
metrics are calculated by identifying relevant non-cash assets
and applying MSCI ESG data on a per security basis. Various
metrics are subsequently calculated at the portfolio level.
Metric
2024
2023
2022
Weighted average
carbon intensity
52 tCO2e/
$m revenue
58 tCO2e/
$m revenue
71 tCO2e/
$m revenue
% Allocated to coal
and oil sands
–
–
–
Investment in
Green bonds
£287m
£146m
£98m
Weighted average carbon intensity (WACI) is calculated using
the latest available carbon emissions (Scope 1 and 2) per
million USD of revenue for all our investments for which data
is available. This is weighted by each security’s market value
relative to the part of the investment portfolio which
is in-scope. The scope is determined by the data and
methodology availability and includes public corporate bonds
as defined by EIOPA’s Complementary Identification Code
(CIC). WACI indicates the carbon intensity per million USD
of revenue for the average company in Admiral's investments.
Insurance-associated activities
Targets: Defining clear underwriting-specific targets will be
an important step towards achieving our net zero goal, and our
ambitions to help customers reduce emissions. The key driver
of insurance-associated emissions is vehicle fuel type.
We have set a target to increase the proportion of EVs in our
underwriting portfolio in alignment with our net zero ambition
and our Motor Evolution strategy pillar.
Risks: While there is action Admiral can take today to support
a transition to EVs, there are significant risks relating to legislation
on the sale of combustion engine vehicles alongside
uncertainty about market uptake.
Metrics: In 2024, Group Risk undertook an activity to calculate
insurance-associated emissions for Admiral’s UK and EU motor
portfolios. The UK combustion engine portfolio is calculated
with vehicle-specific emissions factors using our external data
provider CarWeb. Other calculations use UK national average
emissions factors published by the Department for Energy
Security and Net Zero.
Risk metrics and targets
Transition risk
To monitor Admiral’s investment and supply chain transition
risk exposure we currently calculate our exposure to those
companies which have confirmed SBTs. Details of this figure
for investments are included on page 57. The investment team
also regularly monitors the diversity of our portfolio at a sector
and counterparty level.
Physical risk
Physical risk exposure is difficult to quantify given the
complexities in attributing weather events to climate change
specifically. We monitor our total exposure to weather events
allowing for any reinsurance, alongside monitoring the credit
worthiness of our reinsurance partners.
To understand the extent of past physical risk exposure,
Admiral looks at historic claims for weather events on the UK
Household insurance portfolio. The table includes catastrophe
losses of approximately £5.0 million and greater from
2021-2024:
Period
Perils
Paid (£m)
Incurred (£m)
2021
Flood and storm
5.6
5.9
2022
Flood and storm
37.6
51.6
2023
Freeze, flood and storm
5.0
5.8
2024
Freeze
5.2
7.0
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76
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Total amount of monetary losses attributable to insurance
payout from natural catastrophes (net and gross reinsurance).
Admiral does not differentiate losses from modelled and non-
modelled catastrophes. The 2023 figures have been revised
to allow for additional paid claims in 2024 arising from claims
in 2023. The impact of storm Darragh remains below the
£5.0 million threshold and so isn’t included above however
the impact continues to mature.
The TCFD outlines 11 recommendations for climate reporting.
The table below indicates where these are detailed, both within
our Annual Report and other sustainability reports. While we
meet all recommendations, we aim to continuously enhance
our climate risk management practices and our disclosures.
TCFD pillars
TCFD recommended disclosures
Section of the Strategic report,
that disclosures are included in,
in compliance with the
Companies Act
Relevant codes, policies and
statements available at
www.admiralgroup.co.uk
Governance
Disclose the
organisation’s governance
around climate-related
issues and opportunities
a) Describe the Board’s oversight of
climate-related risks and opportunities
Governance section of the
sustainability section,
page 49-50
Governance section of the
TCFD section, page 66
Details are included in our
Transition Plan page 72
b) Describe management’s role in
assessing and managing climate-related
risks and opportunities
Governance section of the
sustainability section
page  49-50
Governance section of the
TCFD section, page 66
Details are included in our
Transition Plan page 73
Strategy
Disclose the actual and
potential impacts
of climate-related risks
and opportunities
on the organisation’s
businesses, strategy,
and financial planning
where such information
is material
a) Describe the climate-related risks and
opportunities the organisation has
identified over the short, medium and
long-term
Risk management section of
the TCFD section, page
70-71
b) Describe the impact of climate-related
risks and opportunities on the
organisation’s businesses, strategy and
financial planning
Embedding physical and
transition risk management
section of the TCFD section,
page 74
See our Transition Plan for
details of how this applies
to key elements of our
value chain
c) Describe the resilience of the
organisation’s strategy, taking into
consideration different climate-
related scenarios, including a 2°C
or lower scenario
Scenario results of the
TCFD section on page 73
Risk management
Disclose how the
organisation identifies,
assesses and manages
climate-related risks
a) Describe the organisation’s processes
for identifying and assessing climate-
related risks
Risk identification of the
TCFD section on page 68
b) Describe the organisation’s processes
for managing climate-related risks
Risk by risk analysis included
in pages 70-71
c) Describe how processes for identifying,
assessing and managing climate-related
risks are integrated into the organisation’s
overall risk management
Key integration
developments in 2024 in the
TCFD section on page 67
Metrics and targets
Disclose the metrics and
targets used to assess
and manage relevant
climate-related risks and
opportunities where such
information is material
a) Disclose the metrics used by the
organisation to assess climate-related
risks and opportunities in line with its
strategy and risk management process
Metrics and targets section
of the TCFD section page 75
See our Transition Plan for
details of how this applies
to key elements of our
value chain
b) Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 greenhouse gas
(GHG) emissions, and the related risks
SECR reporting section on
page 64 for GHG emissions.
Key risks highlighted on
page 70-71
c) Describe the targets used by the
organisation to manage climate-related
risks and opportunities and performance
against targets
Targets are listed alongside
key parts of the value chain
on page 75
Targets for each element
of the value chain are listed
in out Transition Plan
Admiral Group plc Annual Report and Accounts 2024
77
Section 172 statement
Fulfilling the Boards’ s172
duties to its shareholders
and stakeholders
The Board of Directors confirm that during the
year ended 31 December 2024, it has acted, in
good faith, to promote the long-term success of
the Company for the benefit of its shareholders,
whilst having due regard to the matters set out
in section 172 of the Companies Act 2006.
How the Board fulfills its duties under s172
Admiral’s Directors, and the Board collectively, are bound
by the duties set out under s172 of the Companies Act 2006,
to promote the success of the Company for the benefit of
our shareholders, whilst having due regard to Admiral’s other
stakeholders. Understanding the requirements, concerns and
ambitions of our stakeholders is key to informing the Boards
creation of an effective and sustainable business strategy.
Ongoing consideration of these matters is integral to Board
discussions and decisions, to ensure the progression of
Admiral’s strategy and promote the long-term success of the
business. The Board understands the importance of the
Company maintaining its reputation for the highest standards
of business conduct. With this in mind, the Board ensures that
different stakeholder groups are considered and treated fairly
in its deliberations, whilst all decisions are taken in accordance
with our purpose, culture and values.
Section172_01.png
During 2024, the Board reviewed its key stakeholder group
profiles and confirmed that of the six groups identified within
s172; people, shareholders, customers, suppliers and partners,
community, and the environment, all remained material
stakeholders for the Admiral Group and continued to be
strategically important to the long-term success of Admiral’s
operations. As part of its 2024 review, the Board considered
the current approach to engagement with, and governance
around, each stakeholder group, feedback processes and the
plans for stakeholder engagement for the year ahead.
It concluded that these processes were effective and provided
Directors with a comprehensive understanding of the interests
of its key stakeholders. Examples of how the Board takes
into account the views of its key stakeholders can be found
throughout this s172 statement. The principal decisions taken
by the Board during the year, which take into account s172
considerations, can be found on page 110.
In October 2024, the Board oversaw Admiral’s annual review
of sustainability where it was confirmed that the business
continued to embed sustainability into its core business
strategy. This review considered a wide range of stakeholders
and included support in setting strategic sustainability
ambitions linked to Motor, Diversification and Admiral 2.0.
Also included, was an additional strategic objective focused
on strengthening Admiral’s ‘Social License to Operate’, which
exemplifies Admiral’s approach to driving the business towards
achieving success, underpinned by a core purpose of helping
more people to look after their future, always striving for better
together. Additional information on wider stakeholder
engagement across the Admiral Group can be found within
the Sustainability Report on page 47, and the Governance
Report on page 98.
The Board balances the
occasionally conflicting needs
and priorities of Admiral’s
key stakeholders, whilst
ensuring all decisions taken
promote the long-term success
of the Group.
Admiral Group plc Annual Report and Accounts 2024
78
Section 172 Statement
continued
The Board promotes the long-term success of the Admiral Group
by ensuring it adheres to the highest standards of business conduct,
through both its own actions and those of its employees; understanding
the long-term implications of its decisions; and ensuring all stakeholders
are treated fairly. It does this through:
Defining Admiral Group’s purpose, culture, values and
strategy: The Board has defined Admiral’s purpose, and sets
and monitors the culture and values within the Group.
Our purpose culture and values, alongside engagement with,
and an understanding of, the requirements of our stakeholders,
assist in guiding the strategic direction and long-term interests
of the Group, informing Board discussion, and ensuring
decisions are taken in line with agreed strategy. The Board
regularly reviews the strategic direction of the business
to ensure it is fulfilling its obligations to all stakeholders. Board
papers set out how each item to be discussed aligns with
Admiral’s defined purpose and strategy.
Understanding the required Board skills, knowledge and
experience: Collectively, the Board has wide ranging, relevant
expertise and experience, which it is able to use to inform and
guide decision making to ensure this is of the highest quality
and in the long-term interests of the Company, whilst ensuring
a balanced and fair consideration of the expectations of relevant
stakeholders. Individually, Directors are able to focus their
varying expertise on different areas of the business, including
environmental, social and governance matters to provide
balance and robust oversight. The Board receives regular
updates and training in developing areas to ensure its skills and
knowledge remain optimal. See page 125 for further information.
Ensuring high-quality Board information: Board and Board
Committee agenda planners set out matters to be considered
by the Board and Board Committees during the year. These are
reviewed regularly and updated during the year to ensure that
Board meetings are of the highest standard and that the Board
continues to meet the evolving demands of the business and its
stakeholders. Board papers are subjected to a robust review
process to ensure they are focused, accurate and of the highest
quality. See page 124 for further information.
Considering stakeholder interests and impact: To assist the
Board in fulfilling its obligations under s172, each Board paper
is accompanied by a covering document outlining; i) which
stakeholders could potentially be impacted by a decision taken
by the Board on the matter in question, ii) an explanation of how
those stakeholder interests have been considered, iii) the likely
consequences of a Board decision for those stakeholders
considered, and iv) how the impact on those stakeholders
identified should be monitored going forwards.
Open Board discussion and decision making process:
The Board is aware that in some situations it may have
to prioritise conflicting stakeholder interests. Admiral’s Board
environment encourages an open, honest and accountable
discussion, and decision making culture, which is subject
to rigorous risk management and challenge to ensure those
potentially conflicting stakeholder interests are understood
and taken into account. In doing so, each stakeholder group
is treated fairly, and decisions are made that support the
overall long-term sustainable success of the Group.
Effective Board review process: The Board receives regular
updates on the implementation and results of key decisions
through its internal Board and Committee reporting framework.
Both individual Directors, and the Board’s collective
performance are monitored to ensure the effectiveness of its
discussion and decision making processes. This performance
is appraised through the annual Board and Committee
performance evaluation to ensure it maintains the highest
standard of conduct. Further details on this process can be
found on page 136.
The principal decisions taken by the Board during the year and how the requirements set out under s172 were taken into
account are set out in the Governance Report on page 110.
Section172_02.png
Admiral Group plc Annual Report and Accounts 2024
79
Section 172 Statement
continued
Stakeholder_Icons_red_People.png
People
Section172_People.png
Once again, Admiral has been acknowledged as
one of the top employers in the UK and in other
countries in which we operate. Our culture and
values drive our commitment to fostering a
diverse, inclusive, and supportive workplace.
Why engaging with our employees is important
At Admiral, it is our fundamental belief that people who enjoy
what they do, do it better. The wellbeing and positive
engagement of our colleagues is essential to the long-term
success of our business. Our team has consistently been
a powerful source of competitive advantage, and we take great
pride in caring for our employees and, in turn, helping them look
after their future. The Board’s and senior management’s
engagement with the Admiral team fosters a happier and more
productive workforce, supports operational excellence, and
ultimately shapes better outcomes for our customers and
other stakeholders.
How the business engages with our employees
Admiral employees are encouraged to engage across multiple
channels. Key engagement activities include:
• UK and International employee consultation groups providing
an employee voice and input into how the business operates
• Employee surveys capturing feedback and engagement
across the business
• Regular communication through a variety of internal channels
and social communication tools, including feedback schemes
such as ‘Ask Milena’ and ‘Have your say’
• A wide variety of employee forums and working groups
around diversity and inclusion
• One to ones with managers and regular development
meetings, alongside regular employee education and
compliance courses.
Further examples of how we engage with our colleagues
can be found on page 53.
How the Board engages with employees
The Board recognises the importance of engaging with its
workforce and does so through a combination of formal and
informal channels. The Board has established a UK Employee
Consultation Group (ECG), and an International Employee
Consultation Group (IECG) made up of, and representing,
employees across the Group. At least one Non-Executive
Director was present at each of the ECG meetings, which took
place during the year. The Chairs of the employee forums
report directly to the Board on the key areas discussed to
provide an ‘employee voice’ at the Board table, and subsequently
report back to the employee forums with updates on relevant
Board discussions. The Board also regularly meets employees
through visits to office sites, presentations at Board meetings,
and is regularly updated by management on people matters,
employee engagement, survey results and culture.
Outcomes and impact of engagement
on Board decision making
The ECG and IECG Chairs were invited to selected Board
meetings during the year to present output received from
employee engagement to ensure the Board understood those
issues of significant interest or concern to employees.
As a result of this engagement, a wide range of topics including
Admiral’s approach to sustainability, employee working
practices, employee compensation and improvements
to employee engagement formed part of the Board’s ongoing
considerations and decision making processes.
The Board received a report on people and culture, including
the results of an audit, undertaken by an external consultant,
which focused on the effects that hybrid working was having
on Admiral’s unique culture. As a result, the Board concluded
that overall the culture of the business was not being adversely
affected by the changes to working practices.
The Board discussed financial measures to support employees
and, as a result, approved a share award to employees to
ensure a sense of shared ownership in the success of the
business. The Board also had oversight over the transition
of internal reward policies within the Group.
The Board was pleased that the significant work ongoing
around the building of a diverse and inclusive culture was
recognised through the results of the Great Place To Work®
Survey, with 95% of employees believing Admiral was a diverse
and inclusive employer. The Board confirmed that the significant
activity streams already in place would continue and evolve,
and that the Group would continue to focus on building
its unique culture through these multiple channels.
For further information see:
Page
Awards and recognition
Employee consultation
Diversity and inclusion
53, 87, 132
Culture
Admiral Group plc Annual Report and Accounts 2024
80
Section 172 Statement
continued
Stakeholder_Icons_red_Shareholders.png
Shareholders
Section172_Shareholders.png
Our aim is to generate long-term sustainable
value for the Group, whilst managing our
shareholder capital in a responsible and
accountable manner.
Why engaging with our shareholders is important
Engaging with our shareholders is vital for securing continued
investment and support to deliver our strategy for the benefit
of all stakeholders over the long-term. Shareholder engagement
fosters an alignment of interests between the owners of
the business and the Board. It allows the Board to explain
the rationale behind business and strategic decisions, whilst
providing opportunities for shareholders to comment and
challenge business priorities.
How the business engages with shareholders
Admiral aims to have regular and constructive engagement
with shareholders through a varied number of channels,
examples of which include:
• A comprehensive programme of investor engagement
including site visits, conferences, results and non-results
roadshows, and ad-hoc meetings
• The Annual General Meeting and corporate
governance meetings
• Market disclosures, including the Annual Report, the
Sustainability Report, and interim and full-year results
announcements and presentations
• Regular analyst engagement
• Admiral’s corporate website, which is regularly updated
and contains all relevant shareholder information.
How the Board engages with shareholders
The Board maintains long-standing relationships with Admiral’s
largest shareholders, including the founders of the Group,
and receives regular updates on the activities of the Investor
Relations team, as well as meetings with investors held with
the Board and management team. The Board receives investor
feedback on a regular basis, integrating this information into its
decision making framework to assist in informing its corporate
governance and strategic decisions. Additionally, the Board is
kept informed about market dynamics, share price performance,
and changes to the share register.
Throughout the year, meetings, briefings, roadshows, and
conferences with investors and analysts have been conducted
both in-person and virtually, led by senior management
or the Investor Relations team. Additionally, the Chair, Senior
Independent Director, Executive Directors, and Chairs of the
Remuneration and Audit Committees, along with other Board
members, make themselves available to meet with significant
shareholders as and when required. The Board engages with
its retail shareholder base annually through the Company’s
Annual General Meeting (AGM), ensuring that all shareholders
have the opportunity to engage directly with, and pose
questions, to the Company’s leadership.
Outcomes and impact of engagement
on Board decision making
Feedback received from shareholders was reviewed by the
Board for interim, final and special dividend approvals. Views
gathered through the Company's comprehensive shareholder
engagement programme were incorporated into the Board's
discussions and decision making processes, alongside strategy
sessions, to ensure alignment with values and purpose.
Admiral’s significant shareholders views were sought on various
matters ahead of the 2024 Annual General Meeting (AGM),
including changes to the disapplication of pre-emption rights
and to assist in formulating a revised Remuneration Policy.
This consultation ensured there was an alignment of interests
between the business and shareholders with the new
Remuneration Policy being approved at the AGM with a 90%
vote in favour. The Board continued to monitor Admiral’s
ESG Ratings and flag areas of improvement to continue to
meet shareholder and investor expectations in all areas
of sustainability.
As a result of the Board’s good governance, strategic decision
making and prudent management of the Company’s assets,
Admiral has consistently received strong credit ratings from
major rating agencies. These positive ratings reflect Admiral's
robust financial position, solid capital structure, and strong
market presence. They underscore the Company’s resilience
and its ability to meet financial commitments, providing
confidence to investors and stakeholders alike.
For further information see:
Page
Business model
Governance Report
Shareholder engagement
Remuneration Policy
Admiral Group plc Annual Report and Accounts 2024
81
Section 172 Statement
continued
Stakeholder_Icons_red_Customers.png
Customers
Section172_Customers.png
We aim to provide a great customer experience.
Why engaging with our customers is important
Our customers are at the heart of our business and are the
focus of our purpose to ‘help more people to look after their
future. Always striving for better together’. As a customer-
centric organisation, we seek to provide more people with the
opportunity to access competitive financial services products.
The needs of our customers shape the products we deliver,
and their feedback and expectations inform the design of our
customer distribution channels and platforms.
The Consumer Duty regulation was introduced by the FCA
in July 2023, with the aim of ensuring customers received
communications they could understand; products and services
that met their needs and offered fair value; and that they
received the support they required when they needed it. During
2024, the business reviewed and assessed data and insights
guiding these procedures, enhancing our processes where
required, and undertaking ongoing improvements to our
products and services, where necessary, to demonstrate and
monitor positive customer outcomes. For further information,
please refer to page 146.
How the business engages with our customers
The business has opportunities to communicate and
engage with our customers, and vice versa, throughout the
different points in the customer life cycle. Some of these
mechanisms include:
• Online customer portals and customer feedback through
comment forms, surveys, SMS, along with focus groups
and panels
• Perception studies: Frequently reviewing the engagement
mechanisms across our customer base, particularly
throughout digital journeys, allows us to understand what
is most important to our customers and helps us to
continually refine and improve our service to customers
• Discussions with our customer service teams, new business
and renewals teams, claims teams, and complaints teams
• Live chats with agents and ‘Admiral App’ messages
• Social media: Engagement and reviews communicated
through several social media platforms and website updates
• Customer satisfaction is firmly embedded in our
communication and culture. We ensure that there
is a feedback loop from frontline teams to leadership.
• Customer satisfaction is also a key part of our reward and
compensation practices. For example, it accounts for 12.5%
of the overall vesting criteria for share awards for over
4,000 colleagues.
Further information as to how Admiral conducts responsible
engagement with its customers is set out on page 52.
How the Board engages with our customers
Although the Board does not have significant direct interaction
with customers, it regularly receives updates from
management regarding how existing customers are treated
and the processes in place designed to ensure fair outcomes
throughout the customer journey, including reviews of the
integration of processes around the Consumer Duty regulation.
Customer-related targets have been included as part of the
2024 Board objectives, which are reviewed for progress at
each Board meeting, see pages 109 and 138 for further
information. Customer satisfaction data is incorporated into
Board discussions, influencing strategic decisions such as
digital investments and future product diversification plans.
The Board also receives annual feedback on the Conduct Risk
Framework through the Group Risk Committee.
Outcomes and impact of Board decision making
During 2024, the Board oversaw the ongoing enhancement
of the governance and reporting processes as part of the
implementation and integration of the Consumer Duty
regulation throughout the Group. It also received updates
on the progress to deliver new technology strategies, which
would have a direct impact on improvements made
to customer journeys. This resulted in the strengthening
of monitoring and oversight to ensure the swift identification
of any poor outcomes for customers and the agreement
of actions to address these.
Following the review and reporting of customer outcomes, the
Board was in agreement that the business was complying with
its obligations to act and deliver good outcomes to customers
across all products, whilst identifying and addressing areas
of ongoing focus. The Board reconfirmed that its commitment
to delivering good outcomes to its customers remained integral
to Admiral’s values, and an ongoing strategic priority.
For further information see:
Page
Business model
Strategic Report
Principal decisions
Consumer duty
Admiral Group plc Annual Report and Accounts 2024
82
Section 172 Statement
continued
Stakeholder_Icons_red_Communities.png
Communities
Section172_Communities.png
Our aim is to ensure that Admiral’s impact
on society is a positive one.
Why engaging with our communities is important
Giving back to communities, both those in which we are based,
and the wider society in which we live, is an integral part
of Admiral’s culture. Issues identified through engagement with
our communities include employability, social mobility,
educational opportunities, financial inclusion, and support for
sports, arts, and culture. By addressing these, we demonstrate
a genuine commitment to the wellbeing of our community
stakeholders. This strategic engagement, alongside the high
standards of business conduct by which we operate, not only
reflects our values, but also positions us as a responsible
corporate citizen, and contributes to long-term positive change
both within and beyond the Group. In addition, as a large
employer across several countries, we believe it is our
responsibility to provide employment opportunities for those
in the local areas in which we operate, whilst at the same time
training and developing our people. We are committed to
recognising and promoting diversity both within Admiral and
within our local communities.
How the business engages with our communities
Giving back has always been a core part of what we do at
Admiral. By investing in community programmes, educational
initiatives, and local enterprises, we address immediate needs
and empower charities, individuals and communities to thrive
independently. Our approach seeks to deliver enduring societal
benefits, and a stronger, more resilient community fabric.
Admiral’s community investment pillars are:
• Partnerships – we are proud to foster partnerships with
organisations across the world, recognising the importance
of collaboration in addressing key community issues. 
This collaboration leads to identification of areas of support
where best Admiral can help.  Listening to relevant
organisations and communities is key to directing assistance
to where it is required most
• Impact Funds – our impact funds were established to
demonstrate our commitment to helping more people and
places to transition to a greener future, and to support
in times of crisis
• Colleague engagement – enabling colleagues to be change
makers in their own right through our Community Small
Grants and Match Fund schemes, our volunteering initiative
and by joining special interest groups.
To manage risks and capitalise on opportunities as they evolve,
our Community Strategy is continuously reviewed and adapted.
Monitoring the impact of our actions is integral to our approach,
with feedback mechanisms from our partners, our people, our
communities, and external entities. This comprehensive system
of monitoring ensures that our community engagement remains
effective, responsive, and aligned with our strategic goals.
How the Board engages with our communities
The Board believes Admiral should be regarded as a positive
influence within its communities and, to this end, oversees the
execution of initiatives that align with this vision, receiving
regular updates on their progress. In 2024, the Board
supported over £3.3 million of community investment, including
£1.4 million donated to strategic partners, and 32,500 Impact
Hours of volunteering (2023: 14,257 hours). This is
complemented by numerous community and sponsorship
activities, further details of which can be found on our website.
Internationally, our Global Emergency Fund, supported by the
Board, enables Admiral to provide swift donations when people
and places need it most. In 2024, we donated over £400,000
to the Disaster Emergency Committee (DEC) who provide
humanitarian relief to communities all over the world in times
of crisis. We also provided financial aid to areas local to our
colleagues when they were impacted by floods. We donated
€56,980 to appeals in Valencia, Spain and £40,000 to appeals
in South Wales, UK. These funds were used to support with
immediate repairs and future flood prevention.
Outcomes and impact of Board decision making
The Board reviewed progress made on community impact
and social purpose, and received updates on key community
initiatives across the Group, such as our investment in Earth
Schools, and our membership of the Disaster Emergency
Committee Rapid Response Network. The Board provided
strategic direction on Admiral’s key priorities and future
initiatives with respect to Social Purpose activities, and how
Admiral aims to elevate this strategy even further in 2025
and beyond.
For further information see:
Page
Business model
Strategic Report
Sustainability Report
Admiral Group plc Annual Report and Accounts 2024
83
Section 172 Statement
continued
Stakeholder_Icons_red_Environment.png
Environment
Section172_Environment.png
We are committed to achieving net zero
greenhouse gas emissions by 2040. 
Why engaging with environmental
issues is important
Engaging with environmental issues is strategically important
to Admiral and reflects our commitment to responsible
business behaviour and addressing climate challenges.
Mitigating climate change is essential for creating a viable
future for ourselves, our customers, and our society. It aligns
with our purpose of ‘helping more people to look after their
future; always striving for better, together’.
Our colleagues want to be part of a company that actively
protects the environment. Customers expect us to safeguard
not only their property, but also contribute to a more
sustainable future. Shareholders and regulators are increasingly
focused on how businesses handle environmental challenges.
Our commitment involves minimising our carbon footprint,
aiding customers transitioning to an environmentally
sustainable economy, aligning with regulatory expectations,
and finding opportunities to support wider industry and
economic change. For further information see the Admiral
Group Net Zero Transition Plan on our website.
How the business engages with
environmental issues
Our engagement with environmental issues is multifaceted
and reflects a proactive approach to increasing awareness
and taking concrete actions. Key initiatives include:
• Net zero ambition: Admiral has formally committed to
achieving net zero greenhouse gas emissions by 2040,
and published its first Net Zero Transition Plan during 2024
• Sustainability governance: Admiral’s Sustainability Steering
Committee includes our Group CEO and provides guidance
on the overall programme of sustainability-related work.
Five working groups under the Steering Committee ensure
a joined-up approach across all Group functions and entities
• Operational sustainability: Admiral’s direct operations are
carbon neutral. This covers Scope 1 and 2 emissions, and
part of Scope 3
• Green Team initiatives: This colleague advocacy group
supports green initiatives at our workplaces, lessening
the impact from our direct operations on climate change.
The Green Team organises special events, for example
Green Week and Earth Day to raise awareness and promote
environmentally responsible lifestyles
• Employee engagement: We actively engage with employees
on sustainability through forums, CEO updates, and outreach
by our Group Sustainability team. We have also embedded
sustainability into the pillars of our Group strategy and set
sustainability performance targets via our non-financial
remuneration measures and Sustainability-Linked loan
• Monitoring and reporting: For 2024, Admiral made
disclosures consistent with the Task Force on Climate-
related Financial Disclosures (TCFD), Streamlined Energy
and Carbon Reporting Framework (SECR), Sustainability
Accounting Standards Board (SASB) Standards, and the
Climate-related Financial Disclosure (CFD) requirements.
How the Board engages with
environmental issues
The Board is the principal governing body overseeing
sustainability and climate-related topics. The Board approves
the Group’s sustainability approach and ESG ambitions, which
can have a material impact on Admiral. Directors bring a diverse
range of experience and expertise across key areas of
sustainability, providing robust oversight over ESG issues.
The Board receives regular updates on environment-related
topics, including requirements from regulators and government
initiatives with regards to sustainability and climate change.
The Group CEO is the accountable owner of Sustainability at
the Group Board, with the Group Chief Risk and Compliance
Officer having responsibility for Climate change.
Outcomes and impact of Board decision making
In October 2024, the Board conducted its annual review
of sustainability. As a result, Admiral continues to embed
sustainability into the core business strategy. In addition to
strategic sustainability ambitions linked to Motor, Diversification
and Admiral 2.0, in 2024 this included an additional ambition
on strengthening Admiral’s ‘Social License to Operate’, for
further information see our Sustainability Report on page 47
and page 77.
The Board reviewed progress made on environmental impact
and approved Admiral’s first Net Zero Transition Plan, which
outlines Admiral’s roadmap toward achieving net zero by 2040.
This was published in December 2024. Through reporting,
the Board continued to monitor Admiral’s ESG ratings and flag
areas of improvement on meeting stakeholder expectations.
For further information see:
Page
Sustainability
Responsible business practices
51
SECR and TCFD disclosures
Admiral Group plc Annual Report and Accounts 2024
84
Section 172 Statement
continued
Stakeholder_Icons_red_Partners.png
Partners and suppliers
Section172_Partners.png
We aim to build strong, mutually beneficial working
relationships with our partners and suppliers.
Why engaging with our partners
and suppliers is important
Our partners and suppliers are fundamental to us achieving
our strategic goals. They encompass a diverse range of
businesses, including financial partners, reinsurance partners,
IT hosting providers, distribution and claims services partners,
among many others. We work hard to foster strong relationships
with our suppliers by having dedicated processes across the
Group to govern end-to-end relationships. It is crucial that
the Group manages these relationships effectively to mitigate
the associated third-party risks across the supply chain.
We act responsibly when dealing with our suppliers, choosing
to support local and regional providers where possible. We also
choose and encourage an ethical and environmentally friendly
supply chain and seek to pay in a timely manner to support the
financial resilience of our suppliers.
How the business engages with
our partners and suppliers
To ensure strong third-party supplier management there are
dedicated processes across the Group to govern end-to-end
relationships. Key business units have internal relationship
managers responsible for ongoing performance management,
which includes ensuring active contract renewals, negotiations,
business reviews and service improvement. Admiral uses
a dedicated contract management system to monitor and
support the governance of procurement, provide tender
management, contract management, supplier management
and due diligence under a single platform. Further information
as to how Admiral engages in responsible procurement
practices can be found on page 51.
The Group’s dedicated regulatory relationship teams maintain
channels of communication with the FCA and PRA in the UK,
and the Group’s international regulated intermediaries and
insurers have similar teams in place.
How the Board engages with
our partners and suppliers
Whilst not having direct engagement with partners and
suppliers, the Board receives updates from management on:
• Relationships with key partners and procurement, including
Admiral’s payment policies and practices
• Matters relating to partnerships and opportunities
• All proportional risk-sharing agreements, including
co-insurance and reinsurance contracts
• Customer-facing suppliers
• Third-party risk management regulatory, technological
and consumer trends
• Modern slavery risks in the supply chain.
The Board takes all updates into account when considering
the long-term consequences of its strategies and business
plan. The CFO provides updates on the activities related to
the renewal of the Group’s co-insurance, reinsurance and
quota share contracts, including maintaining Admiral’s ongoing
strategic relationship with Munich Re.
Outcomes and impact of Board decision making
The Board has sought to improve external engagement,
supporting a new programme of collaboration with major
suppliers to create knowledge exchange and innovation across
our value chain. The Group Board was briefed on the
performance of our business partners and suppliers through
comprehensive management and risk reports. It also examined
supplier payment metrics, including adherence to the Prompt
Payment Code, to which Admiral is a signatory. Additionally,
the Board supervised the enforcement of Modern Slavery
provisions with key suppliers and oversaw training initiatives
for employees on proper conduct with suppliers and partners,
encompassing anti-bribery, corruption, and modern slavery
practices.
The Board approved Admiral's Modern Slavery Statement
for 2024, underscoring the Company’s firm stance against
all forms of modern slavery. Admiral is committed to this
through robust policies, comprehensive training, and vigilant
risk management. For an in-depth look at our methods, you can
read the complete Modern Slavery Statement on our website.
For further information see:
Page
Business model
Sustainability
Principal decisions
SECR and TCFD disclosures
Admiral Group plc Annual Report and Accounts 2024
85
Non-Financial and sustainability information statement
The non-financial and sustainability reporting requirements contained
in sections 414CA and 414CB of the Companies Act 2006 are addressed
within this section by means of cross reference, to indicate where they
are located within the Annual Report and to avoid duplication.
Reporting requirement
Annual Report
Page
Relevant policies, statements and codes
available at admiralgroup.co.uk
Our business
Business model
See page 8
• Group Underwriting Risk & Pricing Policy
• Group Remuneration Policy
• Group Investments Policy
• Group Liquidity Management Policy
• Group Capital Management Policy
• Group Tax Strategy Policy
Strategy
See page 16
Group capital structure and
financial position
See page 44
Key performance indicators
See page 22
Sustainability
Our sustainability journey
See page 47
• Sustainability Report 2024
• Net Zero Transition Plan
Culture
See page 113
• Sustainability Report 2024
Employees, diversity,
equity and inclusion
See pages 53, 79, 87
Community investment
See page 54
Responsible investments
See page 51
• Group Investments Policy
Environmental
Environmental Sustainability
See pages 57, 83
• Sustainability Report 2024
• Net Zero Transition Plan
Task Force on Climate-related
Financial Disclosures (TCFD)
See page 66
Climate-related Financial
Disclosures (CFD)
See page 66
Streamlined Energy and
Carbon Reporting (SECR)
See page 64
Social matters
Social purpose
See page 53
• Group Data Protection Policy
• Group Board Diversity & Inclusion Policy
Community investment
See page 54
• Sustainability Report 2024
Employees
People
See pages 55, 79
• Group Health and Safety Management Policy
• Equality, Diversity and Dignity at Work Policy
Respect for
Human Rights
Human Rights and Modern
Slavery Responsible
Business practices
See pages 51, 84
• Modern Slavery Statement
• Group Procurement & Outsourcing Policy
• Group Vulnerable Customers Policy
• Equality, Diversity and Dignity at Work Policy
• Anti-slavery, Exploitation and Human
trafficking Policy
Anti-corruption and
anti-bribery matters
Financial crime and anti-
corruption and anti-bribery
See page 146
• Group Financial Crime Policy
• Anti-Bribery Policy
• Group Conduct Risk Policy
Suppliers
See pages 58, 63, 71, 84
• Group Procurement & Outsourcing Policy
• Group Whistleblowing Policy
Governance
Principal risks and
uncertainties
See page 88
• Group Risk Management Policy
• Group ORSA Policy
Governance
See page 99
Admiral Group plc Annual Report and Accounts 2024
86
Non-Financial and sustainability information statement
continued
Group Policies
Admiral’s overall governance structure as described throughout, supports the due diligence process in pursuance of these policies.
Furthermore, input from the sustainability governance structure and DE&I working groups, ensure that appropriate matters
are included and that there is an open communication channel within the business. The annual Great Place to Work® survey acts
as a key due diligence method for identifying any social and employee-based issues. The result of this survey is discussed
throughout the Annual Report, specifically across pages 10, 11, 56 and 115.
All our Group policies are subject to regular review, and all business areas in scope are required to detail how they adhere
to the policy and their associated controls.
Policy
Description
Group Health and Safety
Management Policy
This policy outlines our commitment to ensuring the health and safety of staff and anyone affected
by our business activities, and our commitment to providing a safe environment for those attending
our premises.
Equality, Diversity
and Dignity at Work
In line with The Worker Protection (Amendment of Equality Act 2010) Act 2023, this policy outlines
Admiral’s commitment to ensuring that any type of unfair discrimination including harassment,
victimisation, favouritism, and bullying is not accepted. It outlines the standards of behaviour that
are expected from all employees to ensure that everyone at Admiral is treated with dignity and
respect, feels comfortable in the workplace, and has equal opportunities.
Code of Conduct
Our Code of Conduct outlines the standards of behaviour that all colleagues must adhere to regardless
of their role. Colleagues are expected to abide by these policies and act with integrity, due skill, care
and diligence.
Group Data
Protection Policy
This policy outlines our obligations and expectations regarding the processing of personal data.
This Policy is supported by a comprehensive Privacy Compliance Programme. Adherence to the Policy
and to the requirements contained within our Privacy Control Framework is monitored through regular
reviews and audit activities, which are reported to Audit and Risk Committees.
Group Board Diversity
& Inclusion Policy
This policy sets out the approach to Board diversity for Boards within Admiral Group, covering diversity
of approach, skills and experience, race, age, gender, educational and professional background and
other relevant personal attributes. Board appointments should be complementary to the existing Board’s
skills and experience and will always be made on merit against objective criteria, including diversity.
Group Vulnerable
Customers Policy
This policy outlines the behaviour and standards expected when dealing with vulnerable customers
throughout the end-to-end product lifecycle. It has been designed to ensure that Admiral acts
to deliver good outcomes for customers with characteristics of vulnerability.
Modern Slavery
Our Anti-Slavery, Exploitation and Human Trafficking policy confirms Admiral’s zero tolerance approach
to modern slavery, outlines our ongoing commitment to eliminating unethical working practices,
and provides guidance to employees on reporting any problems identified at work or in the community.
We release an annual Modern Slavery Statement in line with the Modern Slavery Act 2015.
Group Conduct
Risk Policy
This policy covers the risk that our products, services, culture, communication or interaction with
customers may result in unfair customer outcomes. It demonstrates Admiral’s commitment to ensuring
that customers receive the outcomes they can reasonably expect from the products and services
we provide, and how to mitigate conduct risk within the business.
Group Financial
Crime Policy
This policy ensures that robust systems and controls are in place to detect, prevent and deter financial
crime across the Group, ensuring compliance with laws and regulations in our operational jurisdictions.
It covers all financial crimes, including money laundering, market abuse and insider trading, sanctions
regime, modern slavery, tax evasion and bribery and corruption.
Group
Anti-Bribery
Policy
This policy strictly prohibits the solicitation or acceptance of any bribe, to or from any person or
company, by an individual employee, Board member, agent or other person or body on Admiral’s
behalf, in order to gain any commercial, contractual, or regulatory advantage for Admiral in an unethical
way or to gain any personal advantage for the individual or anyone connected with the individual.
Group Procurement
& Outsourcing Policy
This policy requires employees engaging in procurement activity to uphold business integrity, combat
unethical practices such as including modern slavery, comply with laws, and drive de-carbonisation
with key suppliers. This is enforced through strict controls and monitoring.
Group
Whistleblowing
Policy
This policy encourages and enables employees to raise any concerns they have about serious
malpractice or wrongdoing. It is designed to ensure that an employee can raise their concerns without
fear of victimisation, subsequent discrimination, disadvantage, or dismissal. This policy details internal
and external reporting lines for any employee concerns.
 
Admiral Group plc Annual Report and Accounts 2024
87
Non-Financial and sustainability information statement
continued
Number of Board members
Percentage of the Board
Men
Men
Women
Women
Other
Other
Not specified/prefer not to say
Not specified/prefer not to say
Percentage of senior
managers and direct
reports1
Number of senior
managers in
accordance with the
Companies Act 20062
Men
Men
Women
Women
Other
Other
Not specified/prefer not to say
Not specified/prefer not to say
Number of all employees2
Percentage of all
employees
Men
Men
Women
Women
Other3
Other3
Not specified/prefer not to say
Not specified/prefer not to say
12644383720730
12644383720748
12644383720821
12644383720833
12644383720857
12644383720869
1This figure is provided pursuant to the UK Corporate Governance Code 2018
requirement to confirm the gender balance of those in senior management and their
direct reports. The definition of ‘senior management’ for this purpose is the Executive
Committee or the first layer of management below Board level, including the Company
Secretary.
2The number of senior managers and the number of employees of each sex is disclosed
for the purposes of section 414C(8) of the Companies Act 2006. In accordance with
section 414C(9) and 414C(10), the definition of ‘senior managers’ includes the
Executive Committee equivalent for Admiral Group and the Directors of the
subsidiaries included in the consolidated accounts.
3Other includes; Non-Binary, Gender Non-conforming and Other Genders
Being a great place to
work for everyone
In 2024, Admiral made the Financial Times’s
Diversity Leader list and was once again,
named one of the World’s Best Workplaces.
This acknowledgement reflects the widespread belief
across the Group that colleagues feel they are treated
fairly regardless of their age, race, gender, sexual
orientation or disability.
We pride ourselves on being a place where everyone
can be themselves and thrive. We believe that having
accountable leaders is essential for fostering inclusivity.
This year, we introduced Keith Davies, Group Chief Risk
and Compliance Officer, as the Executive Sponsor for
Diversity, Equity and Inclusion.
In addition, our Group CEO, Milena Mondini de Focatiis,
was recognised as an Executive Role Model by INvolve,
an organisation championing diversity and inclusion in
business. Milena was included in the list because of her
commitment to breaking down gender barriers and driving
inclusion. We believe that this is key to attracting and
retaining the talent that we need to remain a successful
and sustainable business.
Non-financial CS.png
Admiral Group plc Annual Report and Accounts 2024
88
Principal risks and uncertainties
The Board, with support from the Group Risk Committee and the Group Risk
Function, undertakes a regular and robust assessment of the principal and
emerging risks facing the Group alongside engaging with the management
team on the Group Strategy. These risks have been summarised as those
that would threaten its business model, future performance, solvency
or liquidity, and reputation.
The table below sets out the principal risks and uncertainties
(PR&Us) which Admiral has identified through its Enterprise Risk
Management Framework (ERMF). Admiral continues to monitor
the PR&Us alongside external events, including the risk of
changing trade tariffs, and the market’s reaction to these
events, which have the potential to notably impact
macroeconomic trends and continue to contribute to the
challenging operating environment. The impact of the PR&Us,
development of the risks during 2024, and actions taken to
mitigate them are explained below. This section also includes
a description of Admiral’s approach to identify, manage, and
govern emerging risks.
Admiral Group’s risk management and strategy linked to climate
change is discussed in the Task Force on Climate-related
Financial Disclosures section.
Risk appetite: The Admiral Group risk strategy contains
strategic risk statements for the relevant risks which help
deliver the Group’s business objectives. The Group risk
appetite is owned and approved by the Admiral Group Board.
The responsibility for the Group risk appetite is delegated to
the Group Risk Committee, which reviews all components prior
to Board approval and monitors the performance of the
business against the approved Group risk appetite through
the Group CRO Report and other risk reporting.
Identification of risks
Principal risks (A–J)
Reserving risk
Risk single letters-02.png
Insurance risk
Risk single letters-03.png
Market risk
Risk single letters-04.png
Operational risk
Legal and regulatory risk (including conduct)
Catastrophe risk
Credit risk
Risk single letters-08.png
Reinsurance risk
Risk single letters-09.png
Strategic risk
Risk single letters-10.png
Reputation risk
See also note 3 to the financial statements which provides
further details on a number of these risks.
The PR&Us reflect the main risks faced by the Company in
achieving its strategic objectives with the links to the strategy
noted against each PR&U (for more information on the strategy
refer to pages 16-21).
A small number of refinements, overseen by GRC, have been
made to the PR&Us since the 2023 Annual Report and
Accounts, largely to align more closely with the risk universe,
which was refreshed during the year. Of particular note:
• The premium risk (now insurance risk) and catastrophe risk
PR&U has been split to form two separate PR&Us
• The reduced availability of co-insurance and reinsurance
arrangements PR&U has been broadened to a reinsurance
risk PR&U to capture impacts outside of just availability
• The more granular, strategy-related PR&Us (potential
diminution of other revenue, erosion of competitive
advantage in UK Car insurance, failure of geographic and/or
product expansion, and reliance on the price comparison
distribution channel) have been consolidated to form a
higher-level strategic risk PR&U
• Conduct risk, which was previously captured under the
operational risk PR&U, has moved to the legal and regulatory
risk PR&U, given the closer correlation between conduct and
regulatory risks.
Admiral Group plc Annual Report and Accounts 2024
89
Principal risks and uncertainties
continued
Risk single letters-01.png
Reserving risk
2024 trend
Possible impact on the strategic initiatives:
Risk-Strategy number circles_Artboard 2.png
Admiral is exposed to reserving risk where claims reserves may
prove insufficient to cover the ultimate cost of claims, which are
by nature, uncertain. This is a particular risk for motor insurance
liabilities, where the amount payable for bodily injury claims
(particularly large claims) can change significantly during the
lifetime of the claim due to risks such as changes in Ogden rates,
increased propensity of Periodical Payment Orders (PPOs),
and claims inflation.
This uncertainty, also impacted by economic, social,
environmental, regulatory, or political change (such as
geopolitical conflicts impacting supply chains) can lead to
adverse development and higher claims costs than projected,
resulting in higher loss ratios, reduced profits, or underwriting
losses. The impact of environmental risks is drawn out in more
detail for climate-related risks in the TCFD section on page 66.
In mitigation, the Group continues to reserve conservatively,
setting its IFRS 17 risk adjustment in the financial statements
between the 85th and 95th percentiles, which is aligned to Group
risk appetite.
Best estimate reserves are estimated both internally and
externally by independent actuaries and for very large claims
Admiral purchases excess of loss reinsurance, which mitigates
a portion of the loss.
Risk single letters-02.png
Insurance risk
2024 trend
Possible impact on the strategic initiatives:
Admiral has a high appetite for writing insurance and value-
added ancillary products, while maintaining a low expense ratio.
The Group is exposed to the risk that inappropriate premiums are
charged for its insurance products leading to either insufficient
premiums to cover claims costs or uncompetitive rates resulting
in reduced business volumes. Insurance risk has been affected
by global uncertainties, driving supply chain pressures and
volatility in vehicle repair and replacement costs. This risk is
increased during periods of changing inflation leading to greater
market uncertainty and can be heightened by seemingly
irrational behaviours by competitors.
The risk of increased claim costs, reduced business volumes,
and/or higher loss ratios could be driven by potential economic,
social, environmental, regulatory, or political change, such as
geopolitical conflicts impacting supply chains, or new entrants
to the market. New technologies such as electric vehicles
and Advanced Driver Assistance Systems introduce additional
insurance risk.
Mitigating factors which contribute to Admiral’s strong UK
underwriting results, include:
• A disciplined, dynamic and forward-looking approach
to pricing and growth, with a focus on building the business
for the long term
• Experienced and focused senior management teams, notably
in pricing and claims
• Highly data-driven and analytical approach to the regular
monitoring of claims and underwriting performance
• Capability to identify and resolve underperformance promptly
through rapid and dynamic changes to key performance
drivers, particularly pricing
• Continuous appraisal of, and investment in, employees,
systems, and processes.
Risk single letters-03.png
Market risk
2024 trend
Possible impact on the strategic initiatives:
Market risk arises due to developments in economic and financial
market conditions that result in movements in interest rates,
credit spreads, and foreign exchange rates. Market volatility
(notably significant changes in risk-free interest rates or material
increases in credit spreads) can adversely impact the value of
the Group’s assets.
In addition, growth of the Group’s businesses outside the UK
has altered the exposure to net assets and liabilities in currencies
other than pounds sterling, increasing the Group’s exposure
to euros and dollars in particular. A dedicated investment
committee advises each subsidiary board and oversees the
investment management of funds as well as advising on effective
treasury and foreign currency exposure management of the
Group’s funds.
The Group investment and Group liquidity policies relating to
the managing of cash and invested assets support the Group’s
compliance with the Prudent Person Principle and other
regulatory expectations.
The Group’s investment strategy focuses on preservation of the
amount invested, low volatility of returns, matching duration and
currency of liabilities, and strong liquidity. The majority of the
portfolio is invested in high-quality fixed income and other debt
securities, money market funds, and other similar funds, in order
to achieve these objectives. This is reviewed regularly by the
investments team, Investment Committee, and asset managers
to ensure Admiral is adequately positioned.
Admiral Group plc Annual Report and Accounts 2024
90
Principal risks and uncertainties
continued
Risk single letters-04.png
Operational risk
2024 trend
Possible impact on the strategic initiatives:
Admiral continues to review the impacts and level of operational
risk in the context of a modern, digital, hybrid workplace.
The principal categories of operational risk for Admiral include
transformation and change, which was heightened this year
given the More Than acquisition, and integration, people,
technology, information security/cyber, resilience, data
management, and third-party management.
Operational risk can arise in a number of forms, including poor
business decisions due to lack of data or weaknesses in the
data, inadequate or failed internal/outsourced projects,
processes, and systems, and from people-related sources such
as hybrid working, or external events. These can lead
to customer detriment/dissatisfaction, regulatory censure/
enforcement, reduced earnings, and/or reputational damage due
to Admiral’s action or inaction. Cyber events specifically can lead
to loss of service, loss of data, and potential ransom demands
with financial, regulatory and reputational consequences.
Admiral operates a three lines of defence model, and internal
controls are in place and are monitored to mitigate risks.
The following are a limited number of examples of how
operational risks are managed:
• Transformation and change: Embedding change governance
processes for reporting, assurance, and oversight at both
entity and Group level, with external specialist support for
development and delivery of transformation initiatives
• People: Employing targeted recruitment and identifying
potential leaders through internal development, talent
management, and retention processes for the purposes
of succession planning; an ongoing commitment to diversity
and inclusion and accreditation under the real living wage
scheme in the UK. Admiral has embraced more flexible ways
of working to hire, motivate, and retain employees with
evolving hybrid working practices
• Technology: Development and continuous investment
in infrastructure, coupled with regular executive and Board
oversight of technology delivery, given its strategic importance
in enhancing business decision making and improving
customer experiences
• Information security/cyber: Tooling for endpoint protection,
vulnerability management, and intrusion management to
protect the Group from the continuously evolving cyber threat
landscape. Clear incident detection and response procedures
to ensure that people, processes, and technologies are
resilient in the event of cyber-attacks, and robust mitigation
plans to address containment and recovery
• Resilience: Line one incident management teams within
entities and technology teams who maintain system
availability. Business continuity and disaster recovery plans
are in place and are regularly tested. Data is regularly backed-
up to allow for its recovery in the event of corruption
• Data management: The Group is enhancing and further
embedding its approach to data quality and ownership, as well
as having a consistent approach to the recording of critical
data definitions and lineage so that the data is better
understood. The growing use of AI further increases the need
for, and risks from, data quality and data ethics. As a result,
the Risk Team is developing a Data Quality policy, and a Data
Quality Governance forum is being established across the
Group to facilitate the sharing of best practices among entities
• Third-party management: Strategic reviews are periodically
undertaken to align procurement and outsourcing
arrangements with the wider business strategy and in
response to ongoing macroeconomic challenges.
Outsourced activities are monitored through ongoing
supplier relationships, performance management, and due
diligence reviews.
Admiral also purchases a range of insurance covers to mitigate
the impact of a number of operational risks, including Cyber
Liability insurance subject to market capacity, Civil Liability
insurance, and Employers’ Liability insurance.
Admiral Group plc Annual Report and Accounts 2024
91
Principal risks and uncertainties
continued
Risk single letters-05.png
Legal and regulatory risk (including conduct)
2024 trend
Possible impact on the strategic initiatives:
As Admiral operates globally, across various business lines
and products, it is exposed to differing political regimes, legal
jurisdictions, regulatory expectations, and tax systems.
Admiral has a very low appetite to legal and regulatory risk, which
may arise where Admiral fails to identify, interpret, or fully comply
with legal, tax, and/or regulatory requirements, including regulatory
reporting in a timely manner. This could lead to regulatory
intervention, censure, and/or enforcement action through fines
and other sanctions, potential criminal and/or civil enforcement
action, and potential customer detriment and/or dissatisfaction.
This risk may also arise where previous industry, tax, regulatory,
and/or legal compliance standards are revisited with negative
consequences and applied retrospectively, for the industry and/
or the Group.
Failing to meet increasing expectations from regulators,
legislators, and shareholders around climate change and broader
environmental, social and governance matters could potentially
lead to exposure to legal and regulatory risk and potentially
adversely impact other stakeholders’ perceptions.
Admiral operates a three lines of defence model with strong
oversight from Group and entity boards to monitor the Group’s
compliance with current and proposed requirements. Admiral also
interacts with regulators and consults with internal and external
subject matter experts to advise on industry best practice.
Assurance is gained through external reviews and benchmarking
exercises ensuring compliance with legal and regulatory
requirements, and strong governance of change initiatives
is a key control in managing regulatory change. Admiral continues
to have a strong customer focus and monitors, manages, and
reports on customer outcomes, including product value reports,
and the ongoing enhancement of Admiral Group Customer
Outcomes MI, and aims to attract, retain, and motivate quality
employees to deliver superior customer service and to achieve
business objectives.
Risk single letters-06.png
Catastrophe risk
2024 trend
Possible impact on the strategic initiatives:
Admiral has a low appetite for net risk exposure caused
by catastrophe events. Admiral is exposed to the risk of higher
losses than anticipated due to the occurrence of manmade
catastrophes or severe natural weather events, such as large
floods, freeze events, subsidence, or windstorm, which could
cause extensive property damage. The risk is likely to increase
in frequency and severity due to climate change.
To mitigate this, Admiral monitors the impact arising from climate
change risks, covering physical risks, as well as other emerging
risks which may impact catastrophe drivers.
Admiral contributes a levy to the government-backed Flood Re.
scheme to protect against large flood losses, and contributes
to a similar scheme in Spain.
Admiral also purchases excess of loss reinsurance, which
is designed to mitigate the impact of very large individual
or catastrophe event claims.
Admiral Group plc Annual Report and Accounts 2024
92
Principal risks and uncertainties
continued
Risk single letters-07.png
Credit risk
2024 trend
Possible impact on the strategic initiatives:
Admiral is primarily exposed to institutional credit risk in the
form of: (a) reinsurance counterparty credit risk; (b) banking
counterparty credit risk; and (c) the credit risk of the investment
portfolios. In addition, Admiral is exposed to retail credit risk in
relation to customer defaults on Admiral Money’s loan portfolio.
One or more significant counterparties suffering financial
difficulties could lead to a deterioration in their credit
quality resulting in a downgrade by rating agencies or ultimate
credit default.
The impact of the realisation of the credit risks detailed above
could result in financial losses. Furthermore, capital requirements
could increase if there is a wider deterioration of credit quality,
and losses could lead to a liquidity strain for Group entities
should there be a default event of any of its primary cash holding
or facility-providing counterparties. Increased defaults could
also impact future profitably and lending capabilities and Admiral
may need to replace reinsurance cover in the event of a
reinsurer default.
The Group reinsurance policy is to contract with reinsurers that
are rated ‘A-’ or above. In addition, major reinsurance contracts are
operated on a funds withheld basis, which substantially reduces
credit risk, as Admiral holds the payments due as collateral.
The credit risk of Admiral’s banking and (public and private)
investment counterparties is managed by ensuring a well-
diversified portfolio with respective counterparty limits based
on their credit quality. This is supported by frequent monitoring
and the appointment of specialist third-party asset managers.
Currently, this is represented through the high average credit
quality of the Group’s bond mandate and that cash balances
and deposits are placed only with highly rated counterparties.
The Group also invests in a range of liquidity funds which hold
a wide range of short duration, high-quality securities, and in
fixed income funds holding primarily investment grade assets.
All investments which are of elevated credit risk, are monitored
via a credit watchlist by the investment team and the
Investment Committee.
Admiral Money’s credit risk appetite is set to ensure that the risk
taken is commensurate with the expected returns, whilst also
considering customer affordability. Admiral Money continuously
monitors its criteria for new business pricing and the performance
of its portfolio. Creditworthiness and affordability checks are in
place, with additional support available to vulnerable customers.
Risk single letters-08.png
Reinsurance risk
2024 trend
Possible impact on the strategic initiatives:
Admiral has a low appetite for inappropriate or inefficient use
of capital and therefore, uses proportional co-insurance and
reinsurance across its insurance businesses to optimise the use
of capital, to increase the return on the capital it does hold, and
to mitigate the cost and risk of establishing new operations.
There is a risk that co-insurance and/or reinsurance cover will not
be available, that it is ineffectively placed, or that it will only
be available at an uneconomical price in the future. This could
lead to a need to raise additional capital to support an increased
underwriting share, and return on capital might reduce compared
to current levels.
Inflationary uncertainty, geopolitical instability, and other factors
could result in a change in reinsurer appetite and an increased
cost of reinsurance protection for insurers. Climate change
and the increased frequency and severity of extreme weather
events, as well as increased chronic physical risks, could also
adversely impact the availability and cost of reinsurance
protection for insurers.
Admiral mitigates the risk to its reinsurance arrangements by
regular monitoring, by ensuring that it has a diverse range of
financially secure partners, and by staggering contract maturities
to prevent a cliff-edge ending of large reinsurance covers.
Admiral continues to enjoy strong, long-term relationships with
several different co-insurers and reinsurers, some of which
are among the world’s largest. Quota share and co-insurance
arrangements are contracted over a number of underwriting
years and these long-term arrangements are in place throughout
the UK and international businesses.
Admiral Group plc Annual Report and Accounts 2024
93
Principal risks and uncertainties
continued
Risk single letters-09.png
Strategic risk
2024 trend
Possible impact on the strategic initiatives:
Risk-Strategy number circles-01.png
Risk-Strategy number circles_Artboard 3.png
Admiral is at risk of the Group’s strategy being insufficient or
inappropriate for achieving the business’ objectives, or of internal
or external factors leading to the business being unable to fully
meet its strategic objectives.
Admiral’s strategy is set to cover a three-year time horizon
and is refreshed annually with input from a wide range of senior
management. Entity and Group strategies are aligned with
priorities shared top-down and bottom-up. The Group Board
reviews and approves the Group strategy annually along with the
priorities for the following year, which inform the Group KPIs and
OKRs; these are tracked and reported on monthly.
Risks to the strategy can include the diminution of Admiral’s other
revenue, the erosion of Admiral’s competitive advantage in UK Car
insurance, the failure of geographic and/or product expansion, an
overreliance on the price comparison distribution channel and/or
the potential for the nature of motor mobility to evolve. In
mitigation, Admiral seeks to minimise reliance on any single source
by earning revenue from a range of products and territories,
further supported by the recent More Than acquisition, and reacts
quickly to market conditions and developments.
Admiral’s approach to expansion and product development
remains conservative with new businesses and products
executing cautious launch strategies, usually backed by
mitigating reinsurance support.
Admiral writes the majority of its new business volumes via price
comparison websites and if the growth in this distribution channel
were to slow, reverse, or cease, there could be a material
adverse impact in UK new business. In mitigation, Admiral
is continuing to grow its MultiCover and MultiCar products, which
promote retention, has a direct offering to new and existing
customers, and continues to invest in improving the online/digital
offering. Admiral is also focused on growing broker distribution
in our European markets, for small to medium-sized enterprises
(through Admiral Business), and extending distribution for Admiral
Money’s car finance product.
Given the importance of Admiral’s culture in underpinning
successful delivery of the strategy, factors that could impact
culture, e.g. hybrid working will need to be carefully managed.
Risk single letters-10.png
Reputation risk
2024 trend
Risk Trend_Down.svg
Possible impact on the strategic initiatives:
Admiral has a very low appetite for reputation risk and could be
exposed to an erosion in trust from customers, regulators,
employees, shareholders, suppliers, and other stakeholders, as
a result of decisions, associations, actions, or inactions, as well
as accusations of greenwashing. A negative reputation could
have a significant impact on the share price and brand value and
could result in reduced sales, reduced profitability, difficulty in
recruiting and retaining talent, and increased regulatory focus.
Reputational risk can be a secondary impact caused by failures
in any part of the Group such as operational events. However,
it can also be a primary risk should the firm’s perceived behaviours
or communications not meet stakeholder expectations.
Admiral monitors metrics that inform reputational risk analysis for
different stakeholder groups, including customer feedback, social
media metrics, staff surveys, and investor relation reports.
Reputational impact is considered across key decisions and major
internal and external events and Admiral has a crisis response
and communications plan that seeks to minimise the reputational
and other impacts of an event once it has materialised.
Moreover, given that reputation risk will often be a secondary
impact of other types of risk event, controls that mitigate the
primary risk also help limit reputational risk.
Admiral Group plc Annual Report and Accounts 2024
94
Principal risks and uncertainties
continued
Emerging risks
The management of emerging risks is a key element of
Admiral’s strategic risk management, and emerging risks and
opportunities continued to be reviewed throughout 2024.
Admiral Group identifies and monitors emerging risks, issues
which may be potentially significant, but may not be fully
foreseen, assessed or allowed for in insurance terms and
conditions, pricing, reserving or capital setting, or strategic
and business decisions. By their very nature, emerging risks
are many and varied, with a high degree of uncertainty around
the likelihood of occurrence, severity and/or timing. The broad
analysis of a wide range of emerging risks and opportunities
may lead to a change in strategy, management behaviour,
ways of working or risk management, and in turn, to a stronger
and more robust business which better delivers on its
commitments to customers, employees, and other stakeholders.
Emerging risks are identified via horizon scanning. This is
conducted by the Group Risk Function and consists of an
extensive literature review, consultations and blue sky thinking
with internal working groups, and interviews with internal
stakeholders, subject matter experts, and external specialists.
The Group Risk Function assesses emerging risks using an
internally-developed framework, which includes qualitative
and quantitative analysis to grade each emerging risk
on a scale designed to be comparable across entities and
compatible with management of operationalised risks.
Evaluation of the potential impact to Admiral includes
consideration of how the risk may interact with existing
principal risks and uncertainties (PR&Us), as well as any new
risks that could arise. It also drives the precautionary
deployment of management actions and mitigating controls.
Admiral’s emerging risk radar captures an assessment of
potential impact and time to crystallisation for emerging risks.
It categorises each risk into four broad risk segments:
(a) political, economic and social; (b) legal and regulatory;
(c) technology and (d) environmental. Plotting emerging risks
in this way can shed light on the macro trends with common
drivers and effects.
Some risks are quickly approaching crystallisation. This
includes ‘Climate change transition risks’ (1) – risks derived
from the transition to a lower-carbon economy. These are
driven by the complexity and rising standards regarding
climate action, particularly with regards to compliance as
initiatives such as the Corporate Sustainability Reporting
Directive come into force. However, work is on track not only
to comply with emerging regulation but also to adapt
products and business practices as the transition develops.
Another high-velocity risk category is ‘Changing claims
landscape’ (8). The introduction of legislation to enable
autonomous vehicles in the UK is expected to drive major
changes in the nature and complexity of motor insurance
claims. This could substantially change operational demands
and the financial profile of claims, and work is planned to better
define the scope of the impact and identify any no-regret
management actions.
However, other risks have receded, such as ‘Non-traditional
competition’ (9) – the risk posed by potential competitors such
as OEMs, data brokers and technology companies for the time
being at least. The withdrawal of a key non-traditional
competitor from the UK insurance market and the mixed
success of insurtech and OEM-bundled products in recent
years has contributed to this evaluation; however, the
landscape can change quickly. Drawing on analysis and lessons
learned may, therefore, prove valuable not only to mitigate risks
but also to capture opportunities arising from non-traditional
competition, such as potential partnerships or acquisitions.
Finally, ‘disruptive technology’ (11) continues to approach
crystallisation as artificial intelligence and GenAI applications
increasingly interact with operational and enterprise risks.
Reporting on emerging risks and opportunities is provided
by the Group Risk Function to the GRC and relevant Boards,
is incorporated into the Group ORSA Report, approved by Group
Board, and is discussed with the senior management and entity
risk teams.
Admiral Group plc Annual Report and Accounts 2024
95
Principal risks and uncertainties
continued
Emerging risk radar 2024
Emerging risk radar.png
Admiral Group plc Annual Report and Accounts 2024
96
Viability statement
In accordance with provision 31 of the 2018 UK Corporate Governance Code,
the Directors have assessed the prospects of the Company over a three-year
period, having referenced the Group’s business plan, Own Risk and
Solvency Assessment (ORSA), the capital plan, risk strategy, risk appetite,
principal risks and uncertainties, key risk drivers, and ongoing risk
management activities.
As per provision 31, Admiral considers three years to be a
period of assessment over which it has a reasonable degree
of confidence. Although the Group reviews financial projections
that extend beyond the three-year time horizon covering the
years up to 2029, Admiral considers that there is an inherent
risk and uncertainty in projecting beyond this three-year period,
as the degree of certainty in the impact of internal and external
developments reduces greatly due to the nature of Admiral’s
primary business (one-year insurance policies). However, these
financial projections contain no information that would cause
different conclusions to be reached over the longer-term
viability of the Group. In addition, the Group considers the
long-term prospects for its markets and products as part
of its strategic planning, and considers liquidity on a rolling basis.
The Board utilises a range of relevant reporting to assess
viability, including five-year financial projections reviewed twice
a year, three-year solvency projections reviewed at least twice
a year, the ORSA, and a one-year financial budget for the
forthcoming 12 months approved on an annual basis,
in addition to multiple time horizon liquidity projections.
The Group’s business plan projects the Group to report profits
throughout the viability projection period. The Risk Function
has performed a high-level review and challenge of the
business plan to give comfort over the robustness of the
process and output. As part of the business planning process,
several adverse scenarios were modelled in order to explore
the impacts on profits of various risks to the plan, including:
• A more competitive market for UK Car resulting
in reduced growth
• Capping of premium finance rates on UK Car
• Impact of a major weather event on UK Household
• Admiral Loans scenarios to consider the impact of reduced
new business and higher default rates
• Impact on investment income of changes in investment
strategy and risk free rates.
Another source of evidence is the alignment of the financial
and business planning process and the solvency and liquidity
assessments, referred to within Admiral as the capital plan.
This makes sure that Admiral is appropriately capitalised and
liquid at a fixed point in time as well as over the future planning
time horizon, given Admiral’s principal risks and uncertainties
and a plausible range of potential stressed conditions. The
capital plan is a key consideration for Group and Subsidiary
Boards in assessing and approving the business strategy,
business/financial plan, capacity to pay dividends, and key
business decisions.
The Group seeks to hold a buffer on top of the regulatory
capital requirement that is sufficient to protect its regulatory
capital position against a range of significant but plausible
potential shocks and stresses. The Board-approved capital
risk appetite includes a lower trigger of intervention for the
solvency ratio of 150%, which is a key criterion for the Board
in assessing viability. Refer to the Strategic Report (page 44)
for information on sensitivities to the reported 2024 solvency
ratio position. The Group also ensures that any potential
liquidity risks are managed appropriately by identifying
potential risk drivers and by holding appropriate liquidity buffers
at an individual entity level.
At least annually, the Group produces an ORSA report, which
is another source of evidence used by the Board to assess
viability. The ORSA report sets out a detailed consideration of
the principal risks and uncertainties facing the Group and also
examines a series of stress and scenario tests (S&STs) and
reverse stress tests (RSTs). These are examined and quantified
based on the regulatory capital basis (which is the standard
formula method with adjustments tailored to reflect Admiral’s
risk profile) to understand the potential impact of severe but
plausible events on the Group’s solvency, liquidity, and
profitability over a three-year period. In addition to these Group
tests, there are also entity-specific scenarios, considered of
lower materiality to the Group, that are performed by each
subsidiary insurance entity as part of their ORSA processes.
In 2024 a range of scenarios have been performed, which
includes a standalone liquidity scenario, capturing insurance
risk, market/credit risk, strategic risk, natural catastrophe,
climate change and cyber/operational risk. In total, 13 S&STs
and four RSTs have been quantified to understand the potential
impact on the Group’s solvency ratio.
Admiral Group plc Annual Report and Accounts 2024
97
Viability Statement
continued
The results provide comfort that Admiral has sufficient capital
and liquidity to withstand the extreme scenarios. Whilst the
150% lower solvency trigger is breached in several S&ST
instances, should such scenarios actually occur, there would
be a number of management actions that would be called on
to alleviate financial pressures and maintain the solvency and
liquidity ratios above their respective triggers. Depending on
the nature, severity, and timing, these range from modest
actions, e.g. pricing rate changes, to more significant changes,
e.g. raising additional capital through the issuance of new
shares, the sale of a business, or reducing planned dividend
payments. For all S&STs considered, the SCR recovered to
above the 150% trigger following adjustments to the dividend
payments. Similarly for the respective liquidity scenario, the
liquidity ratio had recovered post adjustments to the dividend
payments and tactical Group funding allocations.
Other exceptions are extreme RSTs, combining several severe
stresses. In the absence of management actions, these would
result in a breach of the 100% minimum solvency ratio but,
as is the intention of the RSTs, they are considered to be
extremely remote outcomes, being well in excess of 1-in-200-
year events. The results of the stress tests also form part
of the process to set the Group's capital risk appetite.
Risk management is an essential part of Admiral’s operations,
and successful risk taking is key to the Group achieving its
business objectives. Risk management is, therefore, a key
consideration when setting the Group’s strategy, managing
performance, and rewarding success. The Admiral Group Risk
Management Policy sets out Admiral’s approach to risk
management, as well as the governance of risk management
across the Group. The current risks that are faced by the Group
are captured in the risk universe, with the most notable risks
captured in the Group’s principal risks and uncertainties
(page 88)1, and the key risk drivers impacting Admiral being
further discussed in the Group Risk Committee (GRC) report
on page 145.
1See note 3 to the financial statements for further details on the management
of financial risks.
The Group also considers a range of emerging risks that could
impact the Group to varying degrees in the future, but which
are not yet fully understood (page 94). No emerging risks seem
sufficiently likely to threaten the business model at this stage.
Admiral Group’s strategy linked to climate change is discussed
in more detail in the Task Force on Climate-related Financial
Disclosures section on page 66.
Based on the results of all these activities, the Directors have
a reasonable expectation that the Group will be able to
continue in operation and meet its liabilities as they fall due,
for the period up to and including December 2027.
Strategic Report approval
The Strategic Report is approved for issue by the Board
of Directors, and signed on behalf of the Board:
Milena Mondini de Focatiis signature.png
Milena Mondini de Focatiis
Group Chief Executive Officer
5 March 2025
Admiral Group plc Annual Report and Accounts 2024
98
Corporate
Governance
In this section
Chair’s introduction to governance
Board of Directors
Board leadership and Company purpose
Division of responsibilities
Nomination and Governance Committee report
Audit Committee report
Group Risk Committee report
Remuneration Committee report
Remuneration at a glance
Directors' remuneration policy
Annual report on remuneration
Directors' report
Admiral Group plc Annual Report and Accounts 2024
99
Chair’s introduction to governance
Building a diversified business
within an effective governance
framework
“As a Board, we are committed to advancing
Admiral's purpose and promoting its culture
through a framework of robust governance
practices and established values, which will,
in turn, ensure long-term, sustainable
returns for our shareholders.”
Mike Rogers
Group Chair
Statement-Mike Rogers.png
Dear Shareholder,
On behalf of the Board, I am pleased to present
Admiral’s Governance Report for the financial
year ended 31 December 2024. This report
describes the framework Admiral has put in
place to ensure our Board and its Committees
are operating effectively by supporting and
challenging management to maintain high
standards of governance across the Group
as we continue to drive long-term value for all
our stakeholders.
People and culture
Admiral is distinguished by its unique culture, deeply
embedded within the organisation. Our values and our purpose
are not mere statements; they are actively embodied by our
teams every day and permeate all aspects of our business
operations. On behalf of the Board, I extend my heartfelt
gratitude to all our employees for their dedication, hard work,
and enthusiasm throughout the year. It is our distinctive culture
and exceptional people that sets us apart, making it even more
significant that in 2024, Admiral was once again recognised as
one of Fortune World’s Best Workplaces. Detailed insights into
our Company culture and why Admiral is celebrated as a top
employer can be found throughout this report.
Engaging with our stakeholders
As Chair, I am acutely aware of our accountability to all
shareholders and other stakeholders, including employees,
customers, partners, suppliers, communities, and the
environment.
We actively engage with our shareholders and maintain
ongoing communication with all other stakeholders. Our section
172 statement on page 77, along with additional information
on page 117, provides more insights into how we achieve this.
Board changes
Whilst there were no changes to the Admiral Group plc Board
during the year, we did have a significant change of leadership
within our UK insurance business. Cristina Nestares stood
down as CEO of EUI Limited, Admiral Group’s largest
subsidiary, on 8 October, after leading the UK insurance
business for eight years. Alistair Hargreaves, Deputy CEO
of the UK business, was appointed as Cristina’s successor
in October 2024. The Group Nomination and Governance
Committee played a significant role in considering and
recommending approval of this appointment to the EUI Board.
You can read more about this change on page 111.
Introducing new technology
During the year, the Board has spent time overseeing the
foundations of integrating AI into Admiral’s operations by
investing in advanced technology solutions. This has included
the roll-out of the Genesys cloud-based contact centre,
the partnership with Google Cloud for data analytics and AI
services, and the adoption of Microsoft CoPilot to enhance
efficiencies and customer experience.
These initiatives, overseen by the Board, are aimed at
improving customer service, driving data-based decision
making, and ensuring the Company remains agile and
technologically advanced, while also addressing cyber security
and data protection challenges. You can read more on how the
Board has achieved this on page 112.
Admiral Group plc Annual Report and Accounts 2024
100
Chair’s introduction to governance
continued
Governance at a glance
Skills and experience on the Board (%)
Board nationality
Board age
Board ethnicity
Board gender
British
40s
60s
White British or other White
(including White minority
groups)
Male
Non-British
50s
70s
Female
Asian/Asian British
12644383722092
12644383722103
12644383722114
ESG and sustainability
ESG and sustainability considerations are integral to our
decision making processes and form a core part of our broader
Group Strategy. I am pleased to report that, with 45% female
representation throughout the year, the Admiral Board has
exceeded the 40% target set by the FTSE Women Leaders
Review. We have also achieved ‘The Parker Review’ objectives
regarding Director ethnicity at the Group Board level. While
these are commendable milestones, we recognise there is still
work to be done to foster a fully inclusive environment and
develop a diverse talent pipeline to propel our business
forward. Further details on our diversity and inclusion initiatives,
including our targets for ethnicity within our senior
management team, can be found on page 132.
Regarding climate change and environmental stewardship,
the Board is committed to meeting our environmental
responsibilities, as detailed in our SECR and TCFD reporting
on page 64 and 66.
Board and Board Committee effectiveness
The Board conducted an evaluation of its own performance
and that of its Committees in December 2024. In accordance
with its three-year cycle, this review was carried out internally
by the Company Secretary in collaboration with myself.
As part of this review, all Directors also reflected on their own
performance during the year. The findings from the 2024
evaluations, along with an update on the progress made
against recommendations from the previous year’s review
process, can be found on page 137. This process provides
a clear focus where areas of potential development for the
Board, its Committees, and individual Directors have been
identified for the forthcoming year, whilst also confirming their
effective operation during the year under review, to ensure the
business is managed for the long-term benefit of all stakeholders.
I would like to thank my fellow Board members for their insight
and support during the year. I look forward to our 2025 AGM,
which will be held on 9 May 2025. Further details will be
published in the Notice of Annual General Meeting, which will
be sent or made available to shareholders on the Company’s
website in due course.
Mike Rogers
Chair
5 March 2025
Admiral Group plc Annual Report and Accounts 2024
101
Board of Directors
Mike Rogers
Chair
Chair_Nom comm .png
Milena Mondini de Focatiis
Chief Executive Officer (CEO)
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Board-Milena Mondini.png
Current appointments
Chair of Experian plc
Background and experience
Mike was Group Chief Executive Officer of LV= Group from
2006 until 2016, during which time he grew the organisation
into a significant player in the life and general insurance market.
Before that, Mike was with Barclays plc for more than 20 years,
holding a number of senior roles, most recently as Managing
Director, UK Retail Banking.
Mike was previously a Non-Executive Director of NatWest
Group plc (where he Chaired its Group Sustainable Banking
Committee and sat on the Group Performance and
Remuneration Committee). He was also previously a non-
Executive Director of the Association of British Insurers and
Chair of Aegon UK.
Appointed
Appointed as Chair of the Board on 27 April 2023.
Contributions and reasons for appointment
Mike was appointed as Chair of the Board based on his wide
business, insurance and financial services knowledge and on
his ability to impact the strategic direction of Admiral. Mike has
over 30 years of international financial services experience
holding the senior positions described above. Mike also has
a wealth of board experience; he is currently Chair of Experian
plc and stepped down as Non-Executive Director of NatWest
Group plc immediately prior to joining Admiral. Mike’s recent
and relevant background and experience, and the skills he has
developed over his significant and distinguished career made
him the ideal choice as Chair to lead Admiral Board and
business through the next stage of its evolution.
Committee membership
Audit Committee member
Remuneration Committee member
Group Risk Committee member
Nomination and Governance Committee member
Committee Chair
Senior Independent Director
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Current appointments
• Admiral Insurance Company Limited Board member
(an Admiral Group subsidiary)
• Able Insurance Services Limited Board member
(an Admiral Group subsidiary)
• Mentor for A-Road, Growth Capital.
Background and experience
Milena joined Admiral in 2007 and was appointed CEO in
January 2021. She has been a member of the leadership team
throughout her time at Admiral, has extensive experience of the
Group’s operations, and has attended and actively contributed
at Board meetings as an observer since 2011. Her previous
roles included being Head of UK and European Insurance and
CEO of ConTe.it, Admiral’s Italian insurance business, which
she founded in 2008.
Before joining Admiral, Milena worked as a management
consultant for Bain & Co and Accenture. She holds an MBA
from INSEAD and a degree in Telecommunication Engineering
from Universitá degli Studi di Napoli Federico II.
Appointed
Appointed to the Board in August 2020 and became CEO
on 1 January 2021.
Contributions and reasons for appointment
Milena leads a very strong and experienced management team
and is an effective CEO who continues to build an even stronger
Admiral for the future. In 2023, Milena was awarded the Best
Leader of a Big Company at the 2023 Best Companies Awards.
Admiral Group plc Annual Report and Accounts 2024
102
Board of Directors
continued
Geraint Jones
Chief Financial Officer (CFO)
Mike Brierley
Non-Executive Director
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Current appointments
• Admiral Financial Services Limited Board member
(an Admiral Group subsidiary)
• Admiral Insurance (Gibraltar) Limited Board member
(an Admiral Group subsidiary)
• Trustee and Chair of the Finance and Audit Committee
of the Wales Millennium Centre
• Finance, Audit and Risk Committee member at the Football
Association of Wales.
Background and experience
Geraint joined Admiral in 2002 and held several senior finance
positions including Head of Finance, before being promoted
to Deputy CFO in January 2012 and CFO in August 2014.
Geraint is responsible for finance, investments and investor
relations. A Fellow of the Institute of Chartered Accountants
in England and Wales, Geraint spent the early part of his career
as an external auditor at Ernst & Young and KPMG.
Appointed
Appointed in August 2014.
Contributions and reasons for appointment
Geraint has worked for Admiral for 20 years and has been
Group CFO for ten years. He has a deep understanding of the
Group’s businesses and strategy, which, together with his
significant financial and accounting experience, and broad
range of skills and commercial expertise, makes him a valuable
contributor both to the Board and the wider Group. Geraint
is also able to use his financial and accounting experience
to provide insight into the Group’s financial reporting and risk
management reporting processes.
Current appointments
• Chair of Admiral Financial Services Limited (Admiral Money)
(an Admiral Group subsidiary)
• Director, Trustee and Chair of Finance & Risk Committee
of the Rose Theatre Trust
• Non-Executive Director and Chair of Audit Committee
and Risk and Compliance Committee at Alpha Bank
London Limited.
Background and experience
Mike was CFO of Metro Bank Plc between 2009 and 2018,
helping lead the business from start-up to listing on the London
Stock Exchange and profitability. He spent seven years at
Capital One Europe in various roles including CFO Europe, CFO
UK and Chief Risk Officer Europe. He has also served as CFO
for Royal Trust Bank, Financial Controller at Industrial Bank
of Japan (London Branch), Director Business Risk at
Barclaycard and was co-founder, Deputy Managing Director
and CFO of Gentra Limited. Mike is a Fellow of the Institute
of Chartered Accountants in England and Wales.
Appointed
Appointed in October 2018.
Contributions and reasons for appointment
Mike brings a depth of knowledge from working at senior levels
across multiple financial services sectors, jurisdictions and
markets. As a result of his extensive financial and commercial
experience, Mike is able to contribute effectively as a Non-
Executive Director, and in his role as a member of the Audit,
Investment and Remuneration Committees. Through his recent
and relevant financial experience, he is able to effectively
challenge management on the financial reporting and internal
control matters that come before the Audit Committee. Mike
demonstrates full commitment to the responsibilities that
go with his Board and Committee roles, and offers appropriate
challenge and guidance in respect of the matters considered
in these forums.
Admiral Group plc Annual Report and Accounts 2024
103
Board of Directors
continued
Karen Green
Non-Executive Director
Justine Roberts, CBE
Non-Executive Director
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Current appointments
• Non-Executive Director, Senior Independent Director and
Chair of the Sustainability Committee, member of the
Nominations, Remuneration and Risk Committees Phoenix
Group Holdings plc
• Non-Executive Director, and Risk and Audit Committee Chair
and member of the Remuneration Committee of Miller
Insurance Services LLP and Ben Nevis Clean Co Ltd
• Non-Executive Director, Senior Independent Director
designate (effective 4 April 2025), member of the Audit,
Nomination and Remuneration Committees, Great Portland
Estates plc
• Board member and Audit Committee Chair of the
TMF Group (Tucano Holdings Jersey Ltd)
• Charity Trusteeship, Member of the Audit Committee
Wellbeing of Women
• Advisor role for an Insurtech, Cytora Limited.
Background and experience
Karen Green is the former CEO of Aspen UK. Other senior
Aspen positions included Group Head of Strategy, Corporate
Development, Office of the Group CEO and she was a member
of the Group Executive Committee for 12 years. Prior to that,
she held various corporate finance, M&A and private equity
roles at GE Capital Europe and Stonepoint Capital having
started her career in investment banking at Baring Brothers
and Schroders.
Appointed
Appointed in December 2018.
Contributions and reasons for appointment
Karen has substantial financial services experience and has
a deep understanding of insurance and reinsurance. Karen also
has a strong background in strategic planning and corporate
development, and her experience of sitting on remuneration
committees of other businesses means that she is well placed
to be the Chair of Admiral’s Remuneration Committee.
Current appointments
• CEO & Founder, Mumsnet.com & Gransnet.com
• Non-Executive Director of The Open Data Institute
• Non-Executive Director, and Chair of Remuneration
Committee of English Football League.
Background and experience
Justine founded Mumsnet in 2000 and is responsible for
creation, strategic direction and overall leadership. In May 2011,
Justine founded Gransnet, a sister site to Mumsnet, for the
over-50s. Before that Justine was a freelance football and
cricket journalist for the Times and Daily Telegraph, after
working for Warburgs and Deutsche Bank as an economist,
strategist and head of South African Equities in New York.
Appointed
Appointed in June 2016.
Contributions and reasons for appointment
As CEO of the successful Mumsnet and Gransnet brands,
Justine has strong digital and customer experience insights
that she is able to bring to the Board decision making process.
Justine also has a strong background in driving change through
digital capabilities and brings a fresh and insightful perspective
to the matters for consideration by the Board. Justine is also
an effective member of the Nomination and Governance, and
Remuneration Committees and demonstrates full commitment
to those roles, as well as performing the role of Senior
Independent Director.
Admiral Group plc Annual Report and Accounts 2024
104
Board of Directors
continued
Andrew Crossley
Non-Executive Director
Jayaprakasa Rangaswami
Non-Executive Director
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Current appointments
• Chair of EUI Limited (an Admiral Group subsidiary)
• Non-Executive Director, member of Remuneration
Committee, Risk Committee and Chair of Audit Committee at
Vitality Health Ltd (Vitality Health Ltd, Vitality Life Ltd, Vitality
Corporate Services Ltd) and Senior Independent Director of
Vitality Life Ltd.
Background and experience
Andrew was CFO at Domestic & General Group from 2014
to 2017. He spent 14 years at Prudential Plc from 2000 as
Director, Group Finance, Group Chief Risk Officer, and CFO
and Deputy Chief Executive of Prudential UK. He previously
held senior manager roles at Legal & General Group Plc, where
he was Group Financial Controller, and Lloyds Bank plc.
Andrew is a Fellow of the Institute of Chartered Accountants
in England and Wales.
Appointed
Appointed in February 2018.
Contributions and reasons for appointment
Andrew has held a variety of senior roles relating to financial
planning, strategy and risk across UK financial services. He has
a wealth of commercial and financial experience and provides
progressive insights to the matters that come before the Board.
Andrew is a valuable contributor to the Board and as a member
of the Group Risk Committee (of which he is Chair).
Current appointments
• Non-Executive Director and member of Remuneration
Committee (joint with both Allfunds entities) of Allfunds Bank
SA and Allfunds Group plc
• Non-Executive Director and member of Remuneration
& Nominations, Audit & Risk Committees at Daily Mail and
General Trust Plc (DMGT)
• Board Member and Chair of Quarterly Security Forum of
Harmsworth Media
• Non-Executive Director and member of Audit Committee,
Human Resources and Remuneration Committee and Chair,
Sustainability, and Innovation Committee of National Bank
of Greece S.A.
• Member and Chair, Business Development Committee,
Board of Trustees, Cumberland Lodge
• Member, Board of Trustees, Web Science Trust.
Background and experience
Jayaprakasa Rangaswami (JP) has a wealth of large-scale
IT operational experience gained through his roles as Chief
Information Officer (CIO) with Dresdner Kleinwort (2001 to
2006) and Managing Director/Chief Scientist at BT Group
(2006 to 2010). JP has also been Chief Scientist with
Salesforce (a US cloud-based software company) (2010
to 2014) and was Chief Data Officer (CDO) and Group Head
of Innovation with Deutsche Bank (2015 to 2018). JP is also
a former global CIO of the Year as well as European Innovator
of the Year.
Appointed
Appointed in April 2020.
Contributions and reasons for appointment
JP brings a wide range of IT skills and digital experience, which
helps to complement and enhance the existing skills around the
Board table. He has operated in financial services for over ten
years and understands the challenges of working in a regulated
environment. He is also able to effectively contribute to the
Board debate and demonstrates full commitment to the role.
JP is also a member of the Group Risk Committee, a role
for which he has the relevant experience and capability.
Admiral Group plc Annual Report and Accounts 2024
105
Board of Directors
continued
Evelyn Bourke
Non-Executive Director
Bill Roberts
Non-Executive Director
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Current appointments
• Non-Executive Director, Chair of the Audit & Risk Committee
and member of the Nomination Committee at Marks and
Spencer Group Plc
• Non-Executive Director, Member of the Nominations
Committee, Sustainability Committee, Remuneration
Committee, Workforce Engagement NED at Bank of Ireland
Group Plc (retired from these positions on 31 December 2024)
• Non-Executive Director, Senior Independent Director,
member of Audit Committee, and Nominations Committee
at AJ Bell plc
• Chair of GenisesCare UK Limited and Non-Executive Director
of GenesisCare Cayman Holdings
• Director of Gatcombe court and Highgrove Court
Management Company Limited.
Background and experience
Evelyn was Bupa Group’s CFO between 2012 and 2016, before
becoming Bupa’s Group Chief Executive Officer from 2016 to
2020. Evelyn has held several senior leadership roles during her
career including Chief Commercial Officer at Friends Life UK
(2011-2012), CFO at Friends Provident (2009 – 2010), CFO at
Standard Life Assurance (2006 -2008), and CEO at Chase de
Vere (2004). Evelyn is a qualified actuary and holds an MBA
from London Business School.
Appointed
Appointed in April 2021.
Contributions and reasons for appointment
Evelyn brings valuable general management, finance and
strategy experience from life and health insurance, internationally.
She complements and enhances the range of skills currently
on the Board. Evelyn has held several leadership positions
in financial services organisations and has the appropriate
skills, knowledge and experience to perform her role as
a Non-Executive Director. Through her recent and relevant
financial experience, Evelyn is able to effectively challenge
management on the financial reporting matters which come
before the Audit Committee.
Current appointments
• Independent Non-Executive Director Elephant Insurance
Company (EIC) (an Admiral Group subsidiary).
Background and experience
Bill Roberts has a wealth of insurance, underwriting and
marketing experience gained during his time at US insurer,
GEICO, which he joined in 1984. Whilst at GEICO, Bill held
several Executive appointments, including COO and President
and CEO for all GEICO Insurance Companies, a position he held
from 2018 until he was promoted to Vice Chairman, GEICO
Insurance Companies in 2020. Bill held this role until he retired
from GEICO in December 2020.
Appointed
Appointed in June 2021.
Contributions and reasons for appointment
Bill brings valuable insurance experience and insight on the
US insurance market having held several senior Executive
positions with US insurer, GEICO. Bill contributes and
challenges effectively on the matters that come before the
Board. His extensive US insurance experience and insight
is of specific value to the Group’s US businesses as they seek
to continue to develop and grow. Bill does not currently have
any other Executive or Non-Executive Director commitments
outside of the Group that would impact the time commitment
requirements for his roles as Non-Executive Director and
member of the Nomination and Governance Committee.
Admiral Group plc Annual Report and Accounts 2024
106
Board of Directors
continued
Fiona Muldoon
Non-Executive Director
Dan Caunt
Group Company Secretary and General Counsel
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Current appointments
• Non-Executive Director, Chair of the Risk Committee and
member of the Audit Committee at Beazley plc
• Chair of Sretaw PE DAC.
Background and experience
Fiona has 30 years’ experience in the insurance industry.
Fiona was the CEO of FBD Holdings plc, a listed general insurer
in Ireland, from 2015 to 2020. Prior to that, Fiona was Director
of Credit Institutions and Insurance Supervision at the Central
Bank of Ireland, the Irish regulator. Fiona spent 17 years of her
career with XL group in various progressively senior finance
and general management positions, in Dublin, London,
and Bermuda. She is a Fellow of the Institute of Chartered
Accountants in Ireland.
Appointed
Appointed in October 2023.
Contributions and reasons for appointment
Fiona has acquired extensive experience of the insurance
sector during her career in financial services. Fiona has built
a compelling portfolio in the financial services sector,
demonstrating an ability to leverage her financial and
commercial skills to make a useful contribution to Board
discussions. Fiona’s background and experience means that
she has the relevant financial and industry expertise to be Chair
of the Audit Committee. She demonstrates the commitment
required to discharge effectively the responsibilities attached
to this role and to challenge management on the Group’s
financial reporting and risk management processes.
Appointed
Appointed in May 2022.
Background and experience
Dan trained at Field Fisher where he qualified into the IP
disputes team in 2005. Dan relocated to Cardiff in 2008.
He spent two years in the IP/commercial litigation team at
Osborne Clarke before joining Admiral’s in-house legal team
in September 2010. Dan became Group Company Secretary
and General Counsel at Admiral in May 2022, and leads the
in-house Group Legal and Company Secretarial teams within
the business. Dan is Secretary to the Admiral Group Board
and all Group Board Committees.
Admiral Group plc Annual Report and Accounts 2024
107
Board leadership and Company purpose
UK Corporate Governance Code
The UK Corporate Governance Code (2018) (‘the Code’)
available at www.frc.org.uk, applied to Admiral throughout
the year ended 31 December 2024. At the heart of the Code
is a set of principles which emphasise the value that good
corporate governance can have on the long-term sustainable
success of a business. By applying the principles, and following
the more detailed provisions of the Code, the Board can
demonstrate to Admiral’s stakeholders how the creation of an
effective, transparent and accountable corporate governance
framework, aligned to the purpose and values of the Company,
assists the Board in building our special Admiral culture and
delivering the business strategy within the relevant legal and
regulatory landscapes in which the Group operates.
Admiral is required to report to shareholders on how it has
applied the principles and complied with the provisions of the
Code during the year and, where we have not, the reasons for
not doing so. The Board confirms that Admiral has complied
with all of the provisions set out in the Code for the year ended
31 December 2024.
Details on how Admiral has applied the principles and complied
with the provisions set out in the Code, and how governance
operates throughout the Group, have been summarised
throughout this Governance section and elsewhere in this
Annual Report, and are set out in the table below.
Compliance with Corporate Governance Code principles
1
Board leadership and Company purpose
Pages
A
Effective Board
B
Purpose, values and culture
C
Governance framework
D
Stakeholder engagement
47, 77, 117
E
Workforce policies and practices
2
Division of responsibilities
Pages
F
Board roles and responsibilities
G
Independence
H
External commitments and conflicts of interest
I
Board resources
3
Composition, succession and evaluation
Pages
J
Appointments to the Board
K
Board skills, experience and knowledge
L
Annual Board evaluation
4
Audit, risk and internal control
Pages
M
External Auditor and Internal Auditor
N
Fair, balanced and understandable review
O
Internal financial controls and risk management
5
Remuneration
Pages
P
Linking remuneration to purpose and strategy
Q
Remuneration policy
R
Performance outcomes 2024
Admiral Group plc Annual Report and Accounts 2024
108
Board leadership and Company purpose
continued
Principal areas of focus:
How the Board spent its time during 2024
In 2024, the Board held seven scheduled meetings and several
ad hoc Board meetings to deal with significant matters that
were unable to wait until the next scheduled meeting. A Board
planner is in place, which sets out those items to be reviewed
on an annual basis at scheduled Board meetings in accordance
with the Schedule of Matters Reserved for the Board.
The items below are not exhaustive but demonstrate some
of the key areas of the Board’s focus during the year ended
31 December 2024.
Strategy and business plan
• Received regular updates around key areas of business
strategy across the Group including progress against current
plan and strategic priorities for the business going forward
• A two-day Board strategy meeting took place at Admiral’s
Seville office in October where the Group’s business
strategy, five-year plan, Admiral 2.0, capital allocations
and diversification were discussed
• Consideration of individual business strategies within the
Group business presented by divisional CEOs, evaluating
how these tied into the wider Group strategy
• Integration updates following the acquisition of UK direct
home and pet personal lines insurance operations of RSA
• Review of ESG, sustainability and community strategies
and how these are integrated throughout the wider
business strategy
• Brand, technology and digital programme updates.
Operational performance,
financial and risk management
• Review of the operational performance of the business
through regular reports from the CEO and presentations from
CEOs and senior management from across business divisions
• Regular updates from the CFO on the Group’s financial
performance against strategic objectives, business plans,
capital allocation and budgets, tax planning and international
tax considerations, planning liquidity and adequacy of
solvency thresholds and prudential buffers considering
market conditions, analyst forecasts and financial and
non-financial KPIs
• Review and approval of the half-year and full-year results
and consideration and approval of interim and final dividends
• Consideration of fair, balanced and understandable
requirements in the half and full year financial reports, along
with going concern and viability statements following review
by the Audit Committee – see page 180
• Review and approval of the risk management framework,
policy and appetite for the Group through the Risk
Committee – see page 145
• Oversight of internal control environment and framework
through updates from Audit Committee and Risk Committee
including Cyber Risk, ORSA, Solvency II and Group
Governance framework – see pages 139 and 145.
Culture and internal stakeholders
• Consideration of how the Group purpose and values have
been embedded throughout the business
• Review of how Admiral’s culture continued to develop
including analysis of feedback from Great Place To Work®
(GPTW) survey results, working groups, culture scorecard
and Diversity and Inclusion Policy review – see more on
pages 115 and 132
• Consideration of stakeholder map and respective
stakeholder updates throughout the year, including
engagement mechanisms – see more on pages 53, 77
and 117
• Presentations and discussion from the Chairs of the UK and
Overseas Employee Consultation Groups – see page 117
• Overview of Group reward strategy including review of
share-based awards through the Remuneration Committee –
see page 149
• Talent management and succession planning throughout
the Group
• Review of Investor Relations reports
• Group health and safety updates.
Society, environment and sustainability
• Oversight of Group ESG and sustainability strategy to ensure
alignment with the Group’s wider strategic objectives and
culture – see page 47
• Review of climate change strategy, related activities and risk
management including progress towards climate
commitments and understanding the evolving expectations
of stakeholders – see page 57
• Updates on progress against sustainability targets –
see page 47
• Analysis of suppliers and partners and the communities
within which Admiral operates – see pages 84 and 82
• Updates on volunteering and charity propositions within
the Group as part of a wider community outreach strategy
including sponsorship of community events, charitable
giving, volunteering and fundraising – see page 54
• Updates on the customer journey, customer engagement
and ensuring fair and reasonable claim outcomes for all
customers with special consideration of vulnerable and
disadvantaged groups within society – see pages 81.
Admiral Group plc Annual Report and Accounts 2024
109
Board leadership and Company purpose
continued
Governance and Regulatory
• Received regular reports from the Chairs of the Audit,
Risk, Nomination and Governance, and the
Remuneration Committees
• Consideration of the work of the Nomination and Governance
Committee on Board composition and succession planning
• Regular updates and consideration of new regulatory
requirements including implementation mechanisms for the
Consumer Duty regulation – see page 81
• The fostering of good relations and open and constructive
dialogue with regulators
• Discussions around conclusions of the Board evaluation
findings and agreed areas of focus and Board objectives
for 2024
• Consideration of skills, experience and time requirements
for Directors and recommendations to shareholders regarding
their reappointment
• Discussions around The Parker Review disclosure
requirements for senior management ethnicity through
Nomination and Governance Committee and the implications
for succession planning
• Review and approval of Group policies including Board
members’ potential Conflicts of Interest, Modern Slavery and
Anti-Bribery considerations and approval of Admiral’s Modern
Slavery Statement
• Considered and approved the Notice of 2024 Annual
General Meeting (AGM) for issue to shareholders
• Reviewed matters reserved for the Board and the
Committees’ respective Terms of Reference.
Principal areas of focus for the Board in 2025
• Continued focus on improvements to customer experience,
including claims service levels, customer satisfaction
and loyalty
• Continued progress on the UK holistic strategy, including
brand strategy, and technical and data enablers
• Oversight of a Group-wide artificial intelligence
and data vision
• Oversight of progress of the Group’s diversification
strategy to ensure long-term resilience within the
business, while strengthening and complementing existing
customer propositions
• Monitoring the ongoing embedding of culture and values
throughout the business, including closely monitoring
the effects of hybrid working to ensure that the uniqueness
of Admiral’s culture is maintained and developed
• To continue focus on the Admiral internal model, supporting
a planned regulatory application
• Provide steering and oversight for capital management
and reinsurance
• Embedding the Group’s sustainability strategy ensuring that
it continues to be integral to the Group’s wider strategy
• Focus on Board composition and skills in conjunction with
Nomination and Governance Committee along with
executive team succession planning
• Ensure diversity and inclusion objectives are embedded
throughout the Group and continued progress is made
in respect of ethnic diversity
• Continued deepening of the Board’s understanding
of external risk factors
• Ongoing oversight of FCA’s Consumer Duty regime
implementation across the business.
Strategic thinking at Admiral
Whilst a significant proportion of the Board’s time is focused
towards addressing the short to medium-term business
considerations required in managing a business such as
Admiral, it is also important that the Board is allowed the
opportunity to take a step back and assess the bigger picture,
to promote discussion and strategic planning over the medium
to long term in order to identify and address those significant
opportunities and risks that may present themselves. As well
as being part of every Board meeting, Admiral annually
dedicates two full days to focus on its strategy. In 2024, the
Board was taken to Admiral’s Seville office for their annual
strategy meeting, at this meeting the following items are
examples of some of those issues the Board addressed.
• Group-wide strategy and objectives
• Admiral 2.0
• Diversification strategy
• Motor evolution strategy
• UK insurance strategy
• Organic versus inorganic growth
• International business strategy
• Five-year plan
• Strategic opportunities
• Organisational requirements.
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110
Board leadership and Company purpose
continued
s172 Principal decisions
Our section 172 statement, set out on page 77, highlights how the Board
considers those matters set out under section 172 of the Companies Act
2006. On the pages that follow are examples of some of the key
discussions and decisions taken by the Board during the year, along with
details around how those considerations set out under section 172 were
taken into account.
Key
Board considerations as defined under s172
Stakeholders
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Long-term impact
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Impact on community and environment
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Customer
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Interests of employees
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Maintaining reputation for high standards of business
conduct
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Shareholders
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Fostering business relationships
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Treating stakeholders fairly
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People
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Partners/Suppliers
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Communities
Product diversification – Admiral Pioneer’s partnership with Flock
As announced on 25 June 2024, Admiral Pioneer, the Group’s
venture building business, entered into a new partnership
with Flock, the London-based insuretech startup. This
collaboration aims to transform UK fleet insurance with
advanced technology and real-time risk management
solutions. The partnership will empower Flock to expand
its offering and support a wider range of fleet customers.
The initial rollout will target courier fleets, business fleets
such as tradespeople and service vehicles, along with short-
term rental companies. The new product will be available
to customers directly and through its growing network
of trusted brokers. This expansion ensures that more fleets
can benefit from Flock’s innovative solutions and Admiral
Pioneer’s insurance expertise.
Through this partnership, Flock will continue to reward safer
driving with premium rebates of up to 10% for customers
demonstrating improved safety throughout the policy period.
All customers will benefit from Flock's real-time safety portals
and regular safety reviews, where the Flock team provides
actionable insights into fleet risks and helps implement
effective safety practices.
Prior to Admiral Pioneer entering into the partnership, the
Group Board had oversight, including multiple discussions
and updates during Group Board meetings. Heads of terms
were signed by Admiral Pioneer after extensive due diligence
and negotiation, to which the Group Board was kept abreast.
The Admiral Pioneer Board’s decision making process
involved collaboration between various departments and
consideration of strategic options and potential risks.
The Board was briefed on the following:
• The strategic rationale, including:
– Market context
– Flock’s business model
– The partnership opportunity and the structure of the
proposed deal
– Advantages of the partnership
– Strategic risks and mitigation
• The Group’s priorities in the UK and the wider insurance
market context
• The internal experience within Admiral Group of managing
partnerships, including learnings from prior partnerships
• Product integration into e.g. multi-product offering
• The focus on end-to-end customer interaction
• The need for success criteria to assess the partnership
in the future
• Impact on the Group’s reputation
• Intra-Group governance relating to underwriting capacity
for the partnership.
The Group Board raise several questions, which led to
Admiral Pioneer’s decision, balancing the potential risks with
the long-term benefits of accelerating Admiral’s entry into
the Fleet market and leveraging Flock’s innovative approach.
Key s172 criteria considered: 
Relevant stakeholders considered:
Admiral Group plc Annual Report and Accounts 2024
111
Board leadership and Company purpose
continued
Appointment of Alistair Hargreaves as CEO of EUI Limited
As announced on 8 October 2024, Cristina Nestares stepped
down as CEO of the Group’s largest subsidiary and its UK
insurance business, EUI Limited (‘EUI’), in October 2024.
Before the EUI Board could make an ultimate decision
to appoint a successor for Cristina, it had to make a
recommendation to, and seek the approval of, the Group
Nomination and Governance Committee. In accordance
with its Terms of Reference, the Group Nomination and
Governance Committee is responsible for approving such
appointments to subsidiary boards, as well as periodically
considering the Group’s succession plans for such key roles,
on behalf of the Group Board.
Alistair Hargreaves, formerly Deputy CEO of EUI, was
appointed as Cristina’s successor in October 2024, subject
to regulatory approval.
In order to arrive at this decision, the Group Nomination
and Governance Committee considered the following:
• The success profile of the EUI CEO role
• The succession plan for the EUI CEO and other potential
internal candidates
• Whether a search for external candidates was necessary
• Alistair’s biography, including a critical review of his
experience and competencies mapped against the EUI
CEO success profile, and his development needs
• 360 feedback from Alistair’s current and former managers,
peers, direct reports, members of the EUI Board and other
key stakeholders (both internal and external)
• The impact on the composition of the EUI Board of
Cristina stepping down (since Alistair was already a
member on that Board) and (i) the potential need for
an additional Director on the EUI Board; and (ii) diversity
of the EUI Board
• The impact of regulatory accountabilities and Senior
Management Function changes and applications required.
The Group Nomination and Governance Committee approved
the recommendation to appoint Alistair as CEO of EUI on the
basis that he was a strong fit for the role and that it was
important to maintain stability and continuity within the
Group’s UK insurance business.
T
Key s172 criteria considered:
Relevant stakeholders considered:
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Admiral Internal Model
The Board, along with the Group Risk Committee, continued
its focus on the Admiral internal model during the year,
receiving regular reporting to help drive key discussions and
decisions in relation to the model. The Admiral internal model
is being developed to calculate Admiral’s solvency capital
requirements in a way that reflects Admiral’s risk profile
more accurately than the standard formula and allows
management to better incorporate capital considerations
into business decisions.
The Board approved pre-application review submissions
in June 2024 for the UK Car model to the Prudential Regulation
Authority for Admiral Group, and to the Gibraltar Financial
Services Commission for Admiral Insurance Gibraltar Limited.
During 2024, the Board also oversaw a scope expansion
of the Admiral internal model from year-end 2023 onwards
to include all UK lines of business including Household, Van,
Travel and Pet products, such that the Admiral internal model
can produce Solvency Capital Requirements for Admiral
Group, Admiral Insurance Gibraltar Limited and Admiral
Insurance Company Limited. This progress, overseen by the
Board, will help to ensure that the model is well placed
to support a regulatory full-application submission towards
future permission to use the Admiral internal model for setting
regulatory capital for these legal entities.
Key s172 criteria considered:
Relevant stakeholders considered: 
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Admiral Group plc Annual Report and Accounts 2024
112
Board leadership and Company purpose
continued
New technology
Risk trend
A strategic priority for the Board is to accelerate the evolution
of Admiral’s core business and competencies toward ‘Admiral
2.0’, leveraging the Group’s historical strengths whilst being
even more agile and technology focused to ensure that it
continues to put the customer first. To support this journey,
the Board is overseeing the building of next generation
architecture, leveraging cloud, data, analytics and digital
to continually improve the customer experience. During the
year, this included:
• Genesys: The roll out of the Genesys cloud-based
contact centre throughout Admiral’s UK business, this
solution manages all inbound and outbound
communications through a single cloud-based platform,
delivering a more personalised customer experience
• Google Cloud: The UK business has partnered with
Google Cloud to host its policy management and billing
platforms. Enabling the use of Google Cloud’s data
analytics, generative artificial intelligence, and machine
learning services to drive data-based decision making
and produce more personalised products and services
for customers
• Microsoft CoPilot: Admiral has invested in this
sophisticated AI-powered tool to enhance efficiencies,
improve collaboration, decision making and productivity,
and deliver superior customer service and experiences.
The deployment of new technologies introduces advanced
and capable platforms, enabling Admiral to develop superior
features and experiences for customers. These technologies
facilitate faster time to market, enhanced scalability, stability,
and resilience. Additionally, they assist in mitigating the
growing risks associated with customer data protection
and cyber security.
The Board received updates and presentations from the
business in addition to oversight of project milestones and
agreed targets. As a result of the changes made as part of
this transformation journey, Admiral aims to become a much
more digitally diverse business both to customers and
employees, and the changes will also help in meeting
sustainability targets.
Key s172 criteria considered:
Relevant stakeholders considered:
Stakeholder_Icons_red ROW_5.png
Admiral Group plc Annual Report and Accounts 2024
113
Board leadership and Company purpose
continued
Culture
The Code emphasises the importance of the role of the Board
regarding culture, with specific recommendations that the
Board assesses and monitors culture, and ensures that
workforce policies, practices and behaviours are aligned with
the Company’s purpose, values and strategy.
At Admiral, we believe that our culture is the real essence
of what our business is; how we act, what makes us different,
our character and personality, and how we treat our employees,
customers and other key stakeholders. Our culture is a
culmination of the implementation of our purpose through
our values. The Board sets the tone and leads by example.
This permeates through the business and creates a culture
lived daily by colleagues as well as our wider stakeholders.
We strongly believe that Admiral’s culture is unique as we aim
to demonstrate throughout this report. It is fundamentally
important that Admiral’s culture evolves and adapts as the
business environment changes. It is even more critical that
those parts of our culture that we see as our competitive
advantage and a key driver of our success to date, are fiercely
protected, especially during continuing periods of change.
At Admiral we implement our purpose through our unique
workplace culture. This is reinforced by our values – the ‘Four
Pillars of our Culture’:
82%*
of employees believe that
everyone has the
opportunity to get special
recognition. All colleagues
in the business will receive
up to the equivalent of
£3,600 of shares in Admiral
during the year.
85%*
of employees perceive
Admiral as being a fun place
to work.
95%*
of employees believe
Admiral is a diverse and
inclusive employer.
91%*
of employees believe that
their managers share
important knowledge and
information with them.
Fun
A big part of working at
Admiral Group, and one
of the reasons it’s a great
place to work, is having fun.
We want our people to feel
proud to be part of the
Group and look forward
to working within a team
where they can celebrate
who they are and the
value they bring each and
every day.
What makes Admiral a fun
place to work can be found
throughout our Strategic
Report and in our
Governance Report
on pages 53 and 114.
Communication
All our colleagues play
an important role in our
businesses delivering
against our purpose and
strategy so we encourage
transparent communication
at every level. We have an
open floor office structure
and encourage feedback
across the Group. Further
information can be found
on page 53.
Equality
Our commitment to our
people is to ensure an
inclusive and supportive
workplace where everyone
feels that they can
succeed. We continuously
evolve our proposition and
policies so that we can
meet the needs of our
people and empower
colleagues to share views
to inform our approach.
Further information can
be found in our Strategic
Report on page 53 and the
Nomination and
Governance Committee
Report on page 132.
Recognition
and Reward
Recognising our colleague’s
dedication to our
customers is crucial and
our share ownership
scheme is just one of the
ways that we thank our
people. We are proud
to offer colleagues the
opportunity to own part
of the Group and to benefit
financially from the hard
work throughout the year.
The Group’s approach to
investing in and rewarding
its workforce can be found
on page 153.
* 2024 Great Place to Work® survey results.
Admiral Group plc Annual Report and Accounts 2024
114
Board leadership and Company purpose
continued
Aligning our culture with our purpose, values,
strategy, policies and practices
Admiral’s culture is strongly aligned to our purpose to ‘Help
more people to look after their future. Always striving for better,
together’. Providing customers with great products and
services, whilst caring for our people and other important
stakeholders is key to what we do.
Our Four Pillars of Culture are built into the fabric of our training,
communication, policies and the way we do business. During
the year, the Board received assurance from management that
the Group purpose continued to be embedded within the
operational processes and policies and that there continued
to be alignment with its rewards and incentives. Maintaining
culture continued to be a key part of Admiral’s Board discussion
throughout the year and remained at the forefront of its
decision making rationale through the year.
Guiding and promoting culture
Our Board has the responsibility to act with integrity, to lead
by example and to promote the desired culture. The Board
does this through its governance framework, its decision
making processes and its everyday interactions. We also
ensure that any policies which apply to Directors, are
consistent with those equivalent policies for the workforce.
Many initiatives take place during the year to promote Admiral’s
unique culture, examples of some of these are shown below:
Great Place To Work.png
Admiral has been recognised in the
top 6 UK Best Workplaces by ‘Great
Places to Work®’ a global authority on
workplace culture.
Admiral’s cultural activities
Admiral Masterchef 2024. We had over 40 applications across
our UK business areas (including UK Insurance, Admiral Law,
Admiral Money, Admiral Pioneer, UK-based Group teams and
AIGL). Through a competitive heats process, we selected
eight UK finalists! We held a watch party to reveal our Grand
Final winners in November and asked colleagues to send in
their recipes to be considered for our Admiral Group Cookbook.
Flexible working arrangements. Empowering teams to define
their own optimum working blueprint and self-organise
in the most effective way, whilst coming together to share
key moments
We ran an in-office event with players visiting from the Welsh
Rugby Union (WRU). Colleagues had to throw rugby balls into
a goal with ‘target holes’ for a chance to win tickets and
merchandise from WRU.
Group-wide competitions, including the chance for
colleagues to win a gift card for telling us how they deliver
our Group Purpose in their role, and to name our new Group
Intranet platform.
Department and team away days including spending
allocated time for Impact Days to give back to the community.
A compensation and promotion structure based on
meritocracy and excellent employee benefit offers.
Employee induction workshops focusing on Admiral’s culture.
Star lunches where colleagues are recognised for their
performance and are invited to attend a lunch with a senior
manager.
Diversity and inclusion working groups and initiatives
Excellent opportunities for career development throughout
the business leading to high retainment of employees
Group Top 10 competition: departments compete in a Group-
wide competition, which includes a presentation to a panel
of senior managers on a different subject each year in order
to be awarded the best department.
Health and wellbeing initiatives to encourage employees
to speak up if they needed support, a weekly health and
wellbeing bulletin, yoga and meditation classes, choirs,
running clubs, webinars, art classes, and financial wellbeing
benefits such as Salary Finance, among many other things.
Annual manager awards.
Local reward and recognition programmes.
Encouraging use of training opportunities for work and
personal development.
High- five feedback programmes, where employees can
submit feedback on colleagues across departments who have
given great service.
“People Who like…”, (formerly “Ministry of Fun”), is an initiative
that encapsulates not only fun but also various elements of
engagement. It embodies three strands: talks (from internal
and external speakers); events and learning opportunities,
enabling colleagues to learn, connect and enjoy something
outside of their ‘9-5 role’; and make the most out of their time
at Admiral.
Regular Group-wide updates on business performance
and matters of importance from Executive Directors and
senior management.
Admiral Group plc Annual Report and Accounts 2024
115
Board leadership and Company purpose
continued
How the Board monitors and assesses culture
People and culture scorecard
The people and culture scorecard continues to provide a good
analysis of the key people and culture metrics in order to help
management and the Board’s assessments of the overall health
of the Group’s culture. It also supports the identification of any
trends in the evolution of the Group’s workforce and culture,
including any associated risks which could impact the
execution and support of the Group’s strategy.
The Group continues to view the following people and culture
metrics that are derived from the annual Great Place To Work®
(GPTW) survey and Admiral’s internal pulse surveys as the lead
indicators for people and culture at Admiral. The GPTW survey
is an external survey that collates anonymised question
responses from all colleagues to provide an overall result,
as well as departmental results.
Scores pertaining to culture continue to be very high across
the Group demonstrating the strength and impact of the
Admiral culture. During the year, Admiral was recognised
in the top 6 Best Workplaces by ‘Great Places to Work’ a global
authority on workplace culture.
The Board received an update on the people and culture
scorecard metrics during the year, alongside the outcome
of the independent Culture Audit. The Board had oversight
of several key metrics across the Group, including recruitment,
engagement, productivity, absence and attrition trends, which
are considered to be closely associated with the risks
to culture, heightened by a move to a more permanent model
of hybrid working.
Index
Score
GPTW Trust Index:
The Trust Index comprises 60 questions from the GPTW
survey, which are stable over time, benchmarked against
the best companies in each market, and highly representative
of the overall people sentiment of a positive culture.
86%
2023: 85%
GPTW Engagement Index:
The Engagement Index is a specific measure comprising nine
questions from the GPTW survey relating to willingness to go
the extra mile, intention to stay with the business and
likelihood of being an employer brand promoter. It is also
benchmarked and stable over time, and has a proven
correlation with business performance. According to the
GPTW institute research, the drivers that are most correlated
to higher engagement scores are: (i) teamwork; (ii) career
development; (iii) values and ethics; (iv) empowerment and
accountability; and (v) innovation.
84%
2023: 83%
GPTW Leadership Effectiveness Index:
The Leadership Effectiveness Index is a specific measure
comprising four questions from the GPTW survey relating
to employee perception of management and their competency
at running the business.
87%
2023: 86%
Pulse surveys:
Based on colleague feedback about survey fatigue, the Pulse
survey frequency has been adjusted to once a year in June.
This year, we also developed a harmonised approach for the
Pulse survey throughout the Group to ensure consistency in
questions, facilitate best practice sharing, and achieve a more
unified perspective on culture across Admiral Group.
Since June 2024 marked the first occasion we conducted this
harmonised, annual Pulse survey, results for the Group are
only available for 2024. Next year, we will have the
opportunity to draw comparisons and measure progress using
the new approach.
94%
“I believe Admiral Group is a diverse and
inclusive employer.”
91%
“My manager shares important knowledge
and information with me.”
89%
“I understand how my role brings to life
Admiral Group's purpose to; Help more people
to look after their future. Always striving
for better, together.”
87%
“In my opinion, the Admiral Group is truly
customer focused.”
Other people metrics:
Recruitment, gender balance, headcount, absence, attrition.
Admiral Group plc Annual Report and Accounts 2024
116
Board leadership and Company purpose
continued
Culture Audit
Towards the end of 2023, and up to February 2024, Admiral
engaged EY to independently audit how hybrid working may
have changed Admiral’s culture. The scope of the review covered
business units and teams across the UK, although primarily in EUI
Limited (representing the largest proportion of our colleagues),
selected by our Internal Audit function. The review methodology
was based on EY’s culture framework whereby the ‘articulated’
culture (fun/reward/communication/equality), the ‘experienced’
culture and the ‘deep’ culture are compared.
Overall EY’s conclusion was that hybrid ways of working had
not had a significant impact on Admiral’s culture. EY shared
the ways in which hybrid working had started to influence
culture and proposed recommendations to address this,
one of which related to the communication and alignment
of colleagues’ understanding of the four pillars. Admiral has
taken the recommendations of the audit and combined them
with its existing hybrid/culture action plan, which continues
to be implemented.
How Admiral retains its unique culture, whilst
offering flexibility in working practices
For a company of Admiral’s size, there can be no ‘one size
fits all’ solution to working practices. The Board understands
that a post-Covid world has increased the opportunity and
expectation for greater flexibility within the working
environment, with a hybrid working model becoming more
common practice. At Admiral, individual business functions
and departments are empowered to define their own
blueprint and self organise their teams in a manner, which
they believe creates maximum benefit for the business,
whilst, at the same time, ensuring that our special culture is
retained and enhanced. For example, at a Group level, a
guide as to where and when colleagues should be spending
time together is driven by our ‘Admiral Moments’ model:
these are key moments when it matters for colleagues to be
together in-person. The Board enables each business
division to interpret these principles in their own way to
maximise workplace efficiencies and enhance culture
throughout the Group.
Admiral Moments
Admiral promotes a hybrid working model, empowering
business functions and departments to organise their own
working arrangements in a manner that creates maximum
benefit for the Group. However, our ‘Admiral Moments’ model
below sets out examples where we encourage in-person or
‘face-to-face’ engagement amongst our teams, to ensure
that Admiral’s unique culture is retained and enhanced.
Moments diagram.png
Other tools
In addition to employee participation in surveys and the annual
GPTW survey, there are several other mechanisms used
by the Group and the Board to monitor and assess culture.
For example, ‘Meet the Manager’ meetings; the ‘Ask Milena’
scheme; regular online manager chats; ECG and IECG meetings
(see page 117); mandatory training completion rates; health and
safety data; whistleblowing and grievances; and customer
net promoter score (NPS). All are felt to be valuable methods
of capturing the mood of our people and to gauge the health
of our culture.
The Board Committees also help the Board monitor and assess
culture through their respective responsibilities, some examples
of which are highlighted below.
Nomination and Governance Committee
Succession and talent management strategies, along with
a diversity and inclusion strategy and policies and progress
against targets to ensure alignment with the Group’s strategy
and values.
Remuneration Committee
Monitoring of alignment of workforce remuneration policies
to culture and strategy, risk events reported to it by the Risk
Committee under the malus and claw back framework.
Audit Committee
Whistleblowing, Internal Audit, Group Minimum Standards.
Risk Committee
Risk events that would impact remuneration from a malus and
claw back perspective, financial crime and misconduct risks.
As well as receiving updates on the Group’s culture at Board
meetings, Directors utilise other mechanisms to assess and
monitor culture, such as attending meetings of the UK ECG,
subsidiary boards and performing site visits across the different
entities within the Group which, during their discussions with
a cross-section of colleagues, enables the Directors to gauge
the culture for themselves. In 2024, the Board Chair and
several other Non-Executive Directors visited the L’olivier office
in Paris, the ConTe office in Rome, the Admiral Seguros offices
in Seville and Madrid, and Admiral Insurance (Gibraltar) Limited
in Gibraltar for meetings with the Boards, management team
and employees.
Whistleblowing
The Board has in place arrangements by which employees can
raise concerns in confidence and, if necessary, anonymously.
During the year, the Board received an update on the Group’s
whistleblowing arrangements from the management team.
The Audit Committee, chaired by the Group’s Whistleblowing
Champion, Fiona Muldoon, was satisfied that the update was
proportionate for independent internal investigation of the
matters raised and supported an ethical business culture where
colleagues felt safe raising concerns. In addition, and on an
exceptions basis, the Board is updated in respect of reports
arising from matters that have been raised by employees under
the Policy. The Audit Committee receives more regular updates
in respect of whistleblowing matters, see page 144 for
further information.
Admiral Group plc Annual Report and Accounts 2024
117
Board leadership and Company purpose
continued
Shareholder engagement
The Board has continued to focus on effective engagement
with its stakeholders during the year, to ensure that their
interests are taken into account in its decision making
processes. Detailed information is set out in the Strategic
Report on page 80, outlining how the Board has discharged its
duties under s172(1) of the Companies Act, including further
information on the ECG and IECG (see page 117), which
constitute formal workforce advisory panels under the Code.
Communication and interaction with institutional shareholders
and wider market participants remain very important and
engagement occurs on a regular basis. Open and frequent
dialogue enables shareholders to fully understand the Group’s
strategy, objectives and governance processes, as well as
Admiral’s performance and progress against these. The
Investor Relations team (‘IR’) has day-to-day primary
responsibility for managing communications with the market
community. Meetings, briefings, roadshows, and conferences
with investors and analysts have taken place both in-person
and virtually, led by both senior management or IR. In addition,
investor visits to Cardiff generally take place twice a year and
offer market players the opportunity to meet with senior
leaders from across the business.
Meetings with investors are supplemented by regular feedback
to the Board. The Investor Relations team circulates a report
on market feedback and IR activities at least twice a year for
the Board’s consideration. The report contains a summary of
market dynamics and share price performance, details of any
significant changes to the shareholders’ register, alongside
recent feedback and forecasts from analysts and investors.
The Senior Independent Director has specific responsibility to
be available to investors who have any issues or concerns, and
in cases where contact with the Chair, Chief Executive Officer
and Chief Financial Officer has either failed to resolve their
concerns, or where such contact is inappropriate. No such
concerns have been raised in the year under review.
All shareholders are invited to attend the Company’s Annual
General Meeting (AGM) in person. The 2024 AGM was held
on 25 April 2024 with the required quorum. Shareholders were
able to vote on the important customary annual business and
encouraged to submit questions to the Board in advance of the
AGM. The Chairs of the Audit, Remuneration, Nomination and
Governance, and Group Risk Committees attend the AGM
along with the other Directors and are available to answer
shareholders’ questions on the activities of the Committees
they chair. Shareholders are also invited to ask questions
during the meeting and have an opportunity to meet with
Directors after the formal business of the meeting has been
concluded. Details of proxy voting by shareholders, including
votes withheld, are made available on request and are placed
on the Company’s website following the meeting.
The Group maintains a corporate website
(www.admiralgroup.co.uk) containing a wide range of
information of interest to institutional and private investors.
The major shareholders of the Company are listed in the
Directors’ Report on page 179.
Regulators
The regular channels of communication with both the Financial
Conduct Authority (FCA) and Prudential Regulation Authority
(PRA) that existed throughout the year were supplemented by
the regulators being invited to attend Board meetings. The PRA
attended the Board remotely in January 2024 regarding its
periodic summary meeting letter. The FCA attended the Board
remotely in 2023, which gave the Board an opportunity to
directly hear their views on specific areas such as Consumer
Duty, as well as wider market issues. The Board is also kept
up to date with the regular communications between the
Admiral Insurance (Gibraltar) Limited Board and the Gibraltar
Financial Services Commission, as well as contact between the
Group’s other insurance subsidiaries and respective regulators.
Employee Consultation Group
Purpose
The Board recognises the importance of engaging with its
workforce and does so through a combination of formal and
informal channels. To ensure a two-way communication
platform and an effective means by which the views of the
workforce can be heard, the Board established a UK Employee
Consultation Group (ECG) in 2019 with the aim of enhancing
and formalising its pre-existing employee engagement
arrangements. For the purposes of Provision 5 of the Code,
the ECG is a formal workforce advisory panel.
Membership and attendance
Membership of the UK ECG comprises elected colleague
representatives and the remit of the ECG is to act as a forum
for employee consultation, gathering colleague opinion and
fostering a safe environment to raise matters of interest and
generate ideas. There is a democratic member election
process and members are provided with an induction to ensure
that there is clarity about the role and remit of the ECG, as well
as their role as members.
Non-Executive Directors are invited to attend ECG meetings
on a rotational basis and report back to the Board on matters
discussed, as well as actions agreed at the ECG meeting.
Taking this approach ensures that each of the Non-Executive
Directors can engage with the workforce directly and hear first-
hand the issues and matters that are affecting the workforce.
To ensure that the meetings remain a two-way mechanism,
Non-Executive Directors are also asked to comment on any
insights from ECG meetings at the following Board meeting
and the Chair of the UK ECG is regularly invited to attend Board
meetings to report on matters discussed by the ECG and
highlight any areas of concern. Minutes of the ECG meetings
are also published on the intranet for all employees to view.
Non-Executive Directors also provide an update at ECG
meetings on recent matters discussed by the Board.
Admiral Group plc Annual Report and Accounts 2024
118
Board leadership and Company purpose
continued
Areas of focus for the Employee Consultation Group
During 2024, the Employee Consultation Group (ECG) forum remained focused on important issues for employees, such as hybrid
and remote working, remuneration, Great Places to Work® (GPTW) survey results and sustainability. There were four scheduled
ECG meetings during 2024, with a wide range of topics discussed. There were also a number of ad hoc meetings where important
one-off items were brought to the ECG’s attention that required an ‘employee voice’ prior to being presented to the Board.
Presentations on the following topics were given to the ECG during the year, the results of these discussions were presented to
the Board by the ECG Chair:
Meeting
Main presentations and
key topics discussed
Outcome/impact
January
2024
Great Place to Work®
The Engagement Manager introduced new members of the Engagement Team.
The ECG discussed the GPTW results and completion rates. An overview was provided
on the areas that scored highly and those areas where improvement was needed.
Questions were asked on the completion rate, how many other insurers completed
GPTW, whether information was available on how sections were weighted, and
overall whether there was a plan to change the way the results were communicated.
Director remuneration
The Chair of the Remuneration Committee took the meeting through the current
Director’s Remuneration Policy and the proposed changes to ensure that the ECG
had full transparency around the Executive reward structure. The policy would run
from 2024-2026. The ECG discussed its feedback.
Hybrid working
survey results
The hybrid working survey used various methods to ensure that hybrid working was
not negatively impacting the business, and the results were overwhelmingly positive.
The survey recommended continuing to focus on culture and flexible working, with
input from People Partners to support employee wellbeing and contribution.
May
2024
UK Insurance,
customer outcomes
The ECG was updated on the steps Admiral was taking to deliver excellent
customer service. Topics discussed were Service, Consumer Duty and Complaints.
Sustainability
Admiral’s Sustainability Report, published on Earth Day 2024, outlines the
Company's commitment to transitioning to net zero by 2040 and embedding
sustainability into its core business strategy. The ECG was taken through the report
including efforts in environmental, social, and governance areas, supporting local
communities, investing in crisis relief, and enhancing customer support.
September
2024
Online customer experience
The Head of Online Service highlighted the growing popularity and performance
of MyAccount. The aim was to transform the customer experience by providing
a single login for all products, intelligent and seamless multi-channel support, and
end-to-end claims self-service. This will align customer experiences with those
in more developed sectors ensuring effortless and secure interactions.
November
2024
Social purpose
The Group Social Purpose Manager discussed Admiral’s social sustainability efforts,
which included investing up to 1% of operational profits into the community.
Colleague engagement in social purpose was also discussed.
Group purpose
The Head of Communications facilitated a discussion on Admiral’s Group purpose,
“Helping more people look after their future. Always striving for better, together”.
The ECG discussed the Purpose & Me campaign, particularly the toolkit that had
helped colleagues understand their role in delivering the Group’s purpose. The
upcoming launch of the Engagement Ambassadors network was also discussed.
Proactive and preemptive
health programme
The Senior People Partner (Health and Wellbeing) discussed the programme and
related initiatives that had been launched, such as the Wellbeing Representatives
Network and the Customised Adjustments Plan. The ECG also discussed how the
business had achieved recognition as a Neurodiversity Friendly Employer and a
Disability Confident Leader, and how the team were exploring on-site health
services and proactive health measures.
Whilst recognising that this engagement mechanism will evolve over time, the Board continues to believe that the operation of the
ECG has been, and continues to be, an effective means of engaging with the workforce, to help the Board understand matters that
concern the workforce and their specific interests, whilst having regard to these matters in the discussions and decisions that take
place at the Board. The Board will ensure that the ECG continues to develop as an effective, formal workforce advisory panel and
that regular interaction between the Board and the ECG is maintained.
Admiral Group plc Annual Report and Accounts 2024
119
Board leadership and Company purpose
continued
International Employee Consultation Group (IECG)
The International Employee Consultation Group has been formally meeting since 2022, and is chaired by Costantino Moretti, Head
of International Insurance. This year, four IECG meetings took place, as outlined below. The meetings were attended by candidates
chosen on a voluntary basis, with an agenda created to incorporate employee interests, questions and proposals.
Entity/Meeting
Topics discussed
Outcome/Impact
AECS –
February 2024
Competitive advantages
in the market
Discussions were held around the importance of building good
practices within the Group and a strong senior leadership team with
a high level of collaboration and cooperation between them.
Better together
Employees commented that the sense of belonging to the Company
and to the teams was strong. This was a significant achievement
at a Group level.
Look at the future
Members discussed how the insurance market had changed over
the last year and how the business could be a stronger and more
profitable entity, as well as the path to becoming even more significant
within the Group.
Admiral Seguros
and Admiral Tech -
May 2024
Market developments
Members discussed the insurance sector and how it constantly
changed to adapt to the needs of the market. Members also discussed
the market shift from broker business to direct business over the years.
Artificial intelligence
Members discussed the impact of AI on people's lives, especially in the
workplace. They encouraged employees to investigate and implement
AI tools. There was also a discussion on the importance of
cybersecurity training.
Product diversification
The meeting discussed product diversification that was being
developed in France and Italy, including Pet, House, and Loans.
Collaboration between
IT & other business areas
Members discussed how working in an agile environment was an
opportunity for improving communication. The European IT and Data
teams were continuing to address this gap.
UK Sustainability team
It was noted that there were legislative requirements at a UK level
in respect of sustainability and that similar requirements would
be applicable in Europe from 2026. Therefore, there was work
to be completed within Admiral’s European businesses.
L’olivier -
September 2024
Market developments
and product diversification
The importance of quickly adapting to insurance market changes was
discussed. In respect of diversification, the importance of strengthening
L’olivier’s position within the European motor insurance market prior
to launching new products was emphasised by members.
Admiral’s culture
Members discussed how Admiral's culture reflected the strong values
and employees’ happiness by working together. The positive
atmosphere and the sense of belonging were very much appreciated
by all employees.
Sustainability
It was noted that Admiral was committed to sustainability in terms
of social and environmental responsibility. All Group businesses avoided
the use of plastics, encouraged the use of plastic-free water bottles,
electric vehicles such as electric cars, push scooters or bicycles.
Strategy plan for next years
Members commented that the focus for the next few years was to build
a strong and solid data platform. Digitalisation and GenAI are key for the
future of the company.
French markets
Members discussed that L’olivier had adopted a development
strategy and approach which aimed to increase the number and the
quality of customers.
ConTe -
November 2024
Hybrid working
The pros and cons of hybrid working for the business and for
colleagues was discussed, noting that building connections and
creating opportunities to network continued to be important.
Artificial intelligence
The growth in the use of AI was discussed, including how it would
be important for companies to invest in colleague training to ensure
that the associated risks were minimised.
Gender diversity
The importance of gender diversity was discussed, along with targets
that had been set to increase gender diversity across the Group.
Admiral Group plc Annual Report and Accounts 2024
120
Division of responsibilities
Through the strong governance framework that it has in place, the Board
is able to deliver on its strategy and, in doing so, provide strong, sustainable
financial and operational performance for our shareholders and
wider stakeholders.
Board and Committee framework
Our Board and Committee framework supports the development of the highest standards of governance practices across
the Group which is integral to the successful delivery of our strategy.
The Board is collectively responsible for establishing the purpose, values and strategy of the Group and for
promoting the long-term success of Admiral for the benefit of our shareholders and stakeholders.
Audit
Committee
Nomination
and Governance
Committee
Remuneration
Committee
Risk
Committee
Responsible for overseeing
the Company’s systems for
internal financial control, risk
management and financial
reporting, and monitoring
the integrity of the financial
statements.
Reviews the composition of
the Board, considers
succession planning at both
Board and senior
management level and
leads the process of
appointments to the Board.
Responsible for
remuneration policy,
performance-related pay
schemes and share-based
incentive plans.
Assists with the oversight
of the Group’s risk appetite,
tolerance and strategy.
Monitors current and
potential risk exposures and
the effectiveness of the risk
management framework.
Read more on page 139
Read more on page 125
Read more on page 149
Read more on page 145
Group Reserving
Committee
Group Model
Governance
Committee
Group Assets
and Liabilities
Committee
Group
Investments
Committee
Group
Disclosure
Committee
Admiral Group plc Annual Report and Accounts 2024
121
Division of responsibilities
continued
Board roles and responsibilities
The Chair is primarily responsible for leading the Board, setting
its agenda and monitoring its effectiveness. He is supported by
the Senior Independent Director, who acts as a sounding board
and serves as an intermediary for the other Directors. Neither
are involved in the day-to-day management of the Group.
Save for the matters reserved for the Board, the Chief
Executive Officer (with the support of the Executive Directors
and the senior executives) is responsible for proposing the
strategy to be adopted by the Group, running the business
in accordance with the strategy agreed by the Board and
implementing Board decisions.
It is the Non-Executive Directors’ role to provide constructive
challenge, strategic guidance, offer their respective specialist
advice and hold management to account.
It is the role of the Company Secretary to support the Chair
and administer the workings of the Board and Committees,
ensuring Directors have precise and timely information to
enable an effective decision making process, whilst providing
governance, legal and statutory advice and ensuring a record
of decisions and actions is clear and attributable.
The Board has approved a statement that sets out the clear
division of responsibilities between the Chair, Chief Executive
Officer and SID. This, and the Schedule of Matters Reserved for
decision by the Board, are reviewed annually and are available
to review on Admiral’s website at www.admiralgroup.co.uk.
Chair
• Runs the Board and sets its agenda, with an emphasis on strategic issues
• Ensures the Board has effective decision making processes and applies sufficient challenge to proposals
• Facilitates constructive Board relations, including effective contribution from Non-Executive Directors
• Ensures the Board has an appropriate balance of skills, knowledge, experience and diversity
• Leads the induction and development plans for new and existing Board members
• Communicates with major shareholders and ensures the Board understands their views
• Ensures the Board receives accurate, timely and clear information
• Leads the annual Board evaluation.
Senior Independent Director
• Supports the Chair in the delivery of their objectives
• Provides as a sounding board for the Chair and serves as an intermediary for the other directors
• Available to shareholders if they have concerns that cannot be resolved through the normal channels
• Works with the Chair and other Directors/shareholders to resolve significant issues where necessary
• Leads the annual performance evaluation of the Chair
• Leads the Chair appointment process.
Chief Executive Officer
• Runs the Group’s business and delivers its commercial objectives
• Proposes and develops the Group’s strategy, in close consultation with the Chair and the Board
• Implements the decisions of the Board and its Committees
• Ensures operational policies and practices drive appropriate behaviour, in line with the Group’s culture
• Leads the communication programme with shareholders and other key stakeholders, including staff
• Ensures management provides the Board with appropriate information and necessary resources.
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122
Division of responsibilities
continued
Role of the Board
The Board is responsible for promoting the long-term,
sustainable success of the Group, generating value for
shareholders, taking into consideration all of its stakeholders
and contributing to the wider society in which Admiral operates
its business. The Board is the principal decision making forum
for the Group, providing entrepreneurial leadership, both
directly and through its Committees, and delegating authority
to the Executive Directors and the senior management team
for the day-to-day operation of the business.
The Board has determined the Group’s purpose, to ‘help more
people to look after their future. Always striving for better,
together’. This is embedded in the culture of the business
through our aligned values and strategy. Part of the Board’s
role is to promote the Group’s culture and, in particular, ensure
that its uniqueness is safeguarded. This has been especially
important in recent years where there have been significant
challenges to how the business operates and its culture,
(see page 113).
The Board is responsible for organising and directing the affairs
of the Group in a manner that generates and preserves value
over the long-term. Through the strong governance framework
that it has in place, the Board is able to deliver on its strategy
of providing strong sustainable financial and operational
performance. The Board is also accountable for ensuring that,
in carrying out its duties, the Group’s legal and regulatory
obligations are being met; and for ensuring that it operates
within appropriate risk parameters.
The Group’s UK-regulated entities are accountable to the
Financial Conduct Authority (FCA) and the Prudential Regulatory
Authority (PRA) for ensuring compliance with the Group’s UK
regulatory obligations, and that dealings with the FCA and PRA
are handled in a constructive, co-operative and transparent
manner. Similar provisions apply in respect of the Group’s
international businesses with regard to the relevant regulatory
authorities, such as the Gibraltar Financial Services Commission
and Dirección General de Seguros y Fondos de Pensiones
in Spain.
Board and Committee meetings
Directors are expected to attend all meetings of the Board
and the Board Committees on which they serve, and to devote
sufficient time to the Group to perform their duties. Where
Directors are unable to attend meetings, they receive papers
for that meeting, giving them the opportunity to raise any
issues with the Chair in advance of the meeting. The number
of scheduled Board and Board Committee meetings attended
by each Director during 2024 is provided in the table below.
In addition to the scheduled meetings of the Board set out
in the table below, the Board also held a number of additional,
ad-hoc meetings to discuss matters that were of sufficient
importance that they could not wait until the following
scheduled Board meeting. All Directors are invited to participate
in such meetings which, by their nature, are arranged at short
notice. Where they are unable to do so due to pre-existing
commitments, Directors are given the opportunity to contribute
their views to the Chair prior to the meeting. The Board also
delegates authority to a Board sub-committee for the approval
of final drafts of announcements and proposals which had
already been considered by the Board or its Committees.
The Board met in-person for six out of seven of its scheduled
meetings held during the year, including its strategy meeting
(and October Board), which was held over two days in Seville.
Board and Committee meeting attendance
Board
Audit
Committee
Risk
Committee
Nomination and
Governance
Committee
Remuneration
Committee
Mike Rogers (Chair)
7/7*
6/6
Milena Mondini de Focatiis (Chief Executive Officer)
7/7*
Geraint Jones (Chief Financial Officer)
7/7*
Karen Green
7/7*
6/67
9/9
5/65
Justine Roberts
7/7*
6/6
6/6
Andy Crossley
7/7*
2/22
9/9
Michael Brierley
7/7*
8/8
6/6
Jayaprakasa (JP) Rangaswami
5/71
7/94
Evelyn Bourke
7/7*
4/43
3/36
William (Bill) Roberts
7/7*
6/6
Fiona Muldoon
7/7*
8/8
1JP Rangaswami was unable to attend the October and December 2024 Board meetings due to illness.
2Andy Crossley stepped down as a member of the Audit Committee on 7 March 2024.
3Evelyn Bourke became a member of the Audit Committee on 25 April 2024.
4JP Rangaswami was unable to attend the September and December 2024 Risk Committee meetings due to illness.
5Karen Green was unable to attend the March Remuneration Committee due to a pre-existing commitment which had been arranged prior to her becoming a Committee member.
6Evelyn Bourke stepped down from the Remuneration Committee on 25 April 2024.
7Karen Green stepped down as a member of the Audit Committee on 1 September 2024.
Admiral Group plc Annual Report and Accounts 2024
123
Division of responsibilities
continued
Matters reserved for the Board
The Board has adopted a formal schedule of matters reserved
for the Board’s consideration. This is monitored by the
Company Secretary and reviewed by the Board on an annual
basis. Specific matters reserved to the Board include the
approval of:
• The Group’s long-term objectives and corporate strategy
• Operating and capital budgets, financial results, and any
significant changes to accounting practices or policies
• The Group’s capital structure
• Results and financial reporting
• The system of internal control and risk management
• The Group’s overall risk appetite
• Changes to the structure, size and composition of the Board,
including new appointments
• Succession plans for the Board and senior management
• Dividend policy and proposals for dividend payments
• Major acquisitions, disposals, and other transactions outside
delegated limits
• The annual review of its own performance and that of its
Board Committees
• Annual review of selected Group policies
• The review of the Group’s overall corporate governance
arrangements.
Board Committees
The Board has delegated authority to several permanent
Committees to deal with matters in accordance with written
Terms of Reference. The principal Committees of the Board –
the Audit, Remuneration, Risk, and Nomination and Governance
Committees all comply with the requirements of the Code.
All Committees are chaired by an independent Non-Executive
Director, except for the Nomination and Governance
Committee, which is chaired by the Chair of the Board, and
comprise a majority of independent Non-Executive Directors.
In accordance with the Code, all members of the Audit
Committee are independent Non-Executive Directors.
Appointments to the Committees are made on the
recommendation of the Nomination and Governance
Committee and are for a period of up to three years, which
may be extended for two further three-year periods, provided
the Director remains independent and they are annually
reappointed to the Board by shareholders. The Committees
are constituted with written Terms of Reference that are
reviewed annually to ensure that they remain appropriate and
reflect any changes in good practice and governance. These
Terms of Reference are available on request from the Company
Secretary and can also be found on the Company’s website:
www.admiralgroup.co.uk.
Division01.png
Directors are fully informed of all Committee matters by the
Committee Chairs who report on the proceedings of their
Committee at the subsequent Board meeting. Copies of
Committee minutes are also distributed to the Board.
Committees are authorised to obtain outside legal or other
independent professional advice if they consider it necessary.
The Chair of each Committee attends the Annual General
Meeting to respond to any shareholder questions that might
be raised on the Committee’s activities. An evaluation of the
performance of each Committee against the duties set out
in each Terms of Reference is carried out annually.
Group conflicts of interest
In compliance with the requirements of the Companies Act
2006 regarding Directors’ duties in relation to conflicts of
interest, the Group’s Articles of Association allow the Board
to authorise potential conflicts of interest that may arise, and
to impose such limits as it thinks fit. The Group has a Conflicts
of Interest Policy which deals with conflicts of interest, and this
was reviewed and approved by the Board in October 2024.
The Policy sets out the process and procedure by which the
Board manages potential conflicts of interest that may arise
at Board level, within Board Committees, and within the Group’s
Subsidiary Boards. Following this review, the Board concluded
that the process continued to operate effectively.
In addition, each Board member is asked to complete, annually,
a conflicts of interest questionnaire that sets out any situation
in which they, or their connected persons, have, or could have,
a direct or indirect interest that could conflict with the interests
of the Company. Any current directorships that they, or their
connected persons hold, any advisory roles or trusteeships
held, together with any companies in which they hold more
than 1% of the issued share capital are also disclosed.
The Board is satisfied that none of the Directors had any
potential conflicts of interest during the year which could
not be authorised by the Board.
Admiral Group plc Annual Report and Accounts 2024
124
Division of responsibilities
continued
Information flows to and from the Board
Agendas and papers
Agendas and papers are circulated to the Board electronically
in a secure manner in preparation for Board and Board
Committee meetings. The Board agenda is structured by the
Chair in consultation with the Company Secretary and CEO.
An annual schedule of agenda items is reviewed and updated
regularly to ensure that items are considered at the appropriate
point in the financial and regulatory cycle. Meetings are
structured so as to allow for consideration and debate
of all matters. Routine Board papers are supplemented
by information specifically requested by the Directors from
time to time.
At each scheduled meeting, the Board receives updates from
the Chair, the CEO and CFO as to the financial and operational
performance of the Group and any specific developments of
which the Board should be aware. In addition, there is an
update provided at each Board meeting on the matters
discussed and considered at each of the Group’s principal
subsidiary Board meetings. Additional meetings are called as
and when required, and there is contact between the Board,
Board Committees, subsidiary boards and management,
where necessary, to progress the Group’s business.
Attendees
The CEO of UK Insurance (Alistair Hargreaves), together with
the Chief Risk and Compliance Officer (Keith Davies), the Head
of International Insurance (Costantino Moretti) and the CEO of
Admiral Money (Scott Cargill) are invited to attend every Board
meeting and regular Board dinners. This has proved an
effective means of ensuring that senior managers below Board
level, have exposure to and gain experience of, the operation
of the Board.
Dynamics
All Board and Committee meetings during the year were held
in an open atmosphere conducive to robust and constructive
challenge and debate. All Directors have, therefore, been able
to bring independent judgement to bear on issues such as
strategy, risk management, performance, and resources.
Cross-Committee membership
As shown on pages 101 and 122, Committee membership
is composed in a way that supports cross-Committee
membership, which allows items of importance to be flagged
from Committee to Committee in a timely manner. This
complements the Committee briefings that the Board receives
on the key points of discussion following each Committee.
Advice
All the Directors have access to the advice and services of the
Company Secretary, who has responsibility for ensuring that
Board procedures are followed and for advising the Board,
through the Chair, on governance matters. The Company
Secretary provides updates to the Board on regulatory and
corporate governance issues, new legislation, and Directors’
duties and obligations. The appointment and removal of the
Company Secretary is one of the matters reserved for the
Board. Dan Caunt has held the position of Company Secretary
since 1 May 2022, his biography can be found on page 106.
The Directors are also given access to independent
professional advice at the Group’s expense, should they deem
it necessary to carry out their responsibilities.
Other information flows
The Board Chair met with a wide range of Admiral colleagues
and visited various parts of the business during 2024.
The Non-Executive Directors are invited to visit areas of the
business for in-person on-site visits to meet employees and
review business functions.
As referenced within the commentary on employee
consultation on page 117, the Non-Executive Directors are
invited to attend ECG meetings and participate in the two-way
engagement with employees.
The Non-Executive Directors met in-person during the year
without the Executive Directors being present. Non-Executive
Directors individually met with the Chair for discussion ahead
of each Board meeting in 2024 and also met with the CEO for
a debrief at the conclusion of each scheduled Board meeting.
The Chair holds one-to-one meetings with members of the
Group’s senior management team either in-person or on a
virtual basis. Members of the senior management team were
invited to join Board dinners, which allowed the opportunity
for informal interaction between Directors and the senior
management team.
Training and professional development
The development and training of Directors is an ongoing
process and is considered throughout the year. The Directors
are regularly updated on the Group’s business; legal matters
concerning their roles and duties; the competitive
environments in which the Group operates; and any other
significant changes affecting the Group and the industry of
which it is a part. During the year, the Board received deep dive
updates, briefings and training on the following topics: Admiral
internal model (AIM), Senior Management Functions, Conduct
Rules and Reasonable Steps provided by KPMG, Market Abuse
Regime provided by Clifford Chance, SME Market overview,
amongst several business deep dives.
Admiral Group plc Annual Report and Accounts 2024
125
Nomination and Governance Committee report
Overseeing our Board
composition
“The Nomination and Governance
Committee is committed to having a diverse
and effective leadership across the Group.”
Mike Rogers
Chair of the Nomination Committee
Committee at a glance
Membership
• Mike Rogers (Chair)
• Justine Roberts
• Bill Roberts.
Roles and responsibilities
The Committee assists the Board with its oversight of Board
composition, Board and senior management succession and
corporate governance by:
• Reviewing of the structure, size and composition of the
Board as a whole and identifying and nominating
candidates for Board vacancies
• Considering the balance of skills, knowledge, experience,
time commitment and diversity requirements of the Board
and its Committees
• Reviewing and overseeing the effectiveness of Admiral’s
corporate governance framework to ensure effectiveness
transparency and accountability
• Overseeing the Board, Board Committees and subsidiary
board evaluations and implementation of any resulting
recommendations
• Evaluating Admiral's leadership framework including skills
and expertise requirements to ensure the Company
remains competitive in a dynamic market
• Reviewing the Committee’s own effectiveness.
The full terms of reference of the Committee can be found on our
website: Board governance | Admiral Group Plc
Highlights
• Review of Non-Executive Director and Senior Independent
Director succession planning
• Commencement of search process for new Non-Executive
Director
• Oversight and approval of Board Committee changes,
extensions to Non-Executive Director terms of
appointment, senior internal appointments and Directors’
external appointments
• Consideration and recommendation for appointment of
new CEO of Admiral’s UK business in line with established
succession plan
• Consideration and review of diversity requirements in light
of regulatory requirements
• Review of own effectiveness and recommendations from
Board and Committee evaluations.
2025 priorities
• Succession planning for Executive and Non-Executive
Directors, and Board and Board Committee composition
and skills
• Oversight of subsidiary Board composition and governance
effectiveness in light of subsidiary board evaluation
recommendations
• Oversight of succession planning and execution for key
senior management positions
• Review of gender and ethnic diversity requirements
• Review of Group governance structure to ensure
effectiveness, transparency and accountability.
Committees-Mike Rogers.png
Admiral Group plc Annual Report and Accounts 2024
126
Nomination and Governance Committee report
continued
Dear Shareholder,
On behalf of the Board, I am pleased to present
this year’s report as Chair of the Nomination
and Governance Committee (the Committee).
The Committee plays a key role in overseeing
Admiral’s Board composition, ensuring it has the
optimum balance of skills, experience and
knowledge, as well as ensuring diversity in the
broadest sense on the Board and all of its Board
Committees. The Committee also ensures that the
Group operates within a robust and transparent
corporate governance framework. This report
sets out the Committee’s main activities, along
with how it has discharged its responsibilities
throughout the year ended 31 December 2024.
Succession planning continued to be a key focus for the
Committee during 2024, both at Board and senior management
level. The Board reviewed NED and Senior Independent
Director (SID) succession in the context of Justine Roberts’
nine year tenure which is due to end in June 2025. External
consultancy, Spencer Stuart, have been engaged to begin
a search process for a new NED. The Committee has also
started to consider internal candidates for the role of SID
against the role specification.
As part of Board succession planning and its regular review of
Board composition, the Committee has also reviewed the skills
and experience present on the Board and Board Committees
to ensure these reflect the current requirements of the Admiral
business, and meet the expectations of our stakeholders.
Several changes to Board Committee composition took place
during the year to refresh membership and to continue to
ensure effective delivery of the Group’s strategy. These are
detailed later in this report on page 129.
At a senior management level, the Committee considered
the succession of the CEO of Group’s UK insurance business,
EUI Limited, and subsequently recommended to the Board
the appointment of Alistair Hargreaves. Further information
on this decision is outlined on page 111.
Diversity and inclusion also continued to be key topics for
Committee discussion during the year. The Committee ensured
that the Board continued to meet the FTSE Women Leaders
Review target that 40% of the Board should be female,
in addition to The Parker Review’s target that the Board should
include at least one Director from an ethnic minority
background.
The 2024 annual review of the Committee’s effectiveness took
place in December and was, again, carried out by way of an
internal review led by myself in conjunction with the Company
Secretary. This review concluded that, overall, the Committee
remained effective but noted some areas for improvement.
These are outlined on page 136 of this report.
The rest of this report sets out in more detail the activities
of the Committee during 2024. I would like to thank the
Committee members for their continued contributions and
support throughout the year.
Mike Rogers
Chair of the Nomination and Governance Committee
5 March 2025
Admiral Group plc Annual Report and Accounts 2024
127
Nomination and Governance Committee report
continued
Committee meetings held during the year
The Committee meets at least twice per year, in accordance
with its Terms of Reference, and at such other times as the
Chair may require. During 2024, the Committee held six formal
scheduled meetings. The Committee Chair agrees the meeting
agendas for each meeting with the Company Secretary, items
covered during the year are linked to an agenda planner
covering the responsibilities of the Committee.
The table outlined on page 122 shows the attendance of
Committee members at meetings during 2024.
Attendees at Committee meetings
The Company Secretary acts as Secretary to the Committee.
Other individuals, such as the Chief Executive Officer, the
Group Head of People Experience and representatives
of different parts of the Group, may be invited to attend all,
or part of, any meeting, as and when appropriate.
Key activities of the Committee during the year
A description of the activities the Committee has focused on
during the year ended 31 December 2024 is outlined under the
following headings.
Non-Executive Director appointment process
Appointments to the Board are the responsibility of the Board
as a whole, acting on the advice and recommendations of the
Nomination and Governance Committee. The Committee seeks
to balance the retirement and recruitment of Non-Executive
Directors well ahead of relevant deadlines so as to avoid a
dislocation of Board process by losing experience and skills.
The Committee is mindful of the need to promote diversity and
inclusion in appointments to the Board and throughout the
Group. Appointments are made on merit and against objective
criteria, having due regard to the benefits of diversity, and with
a view to ensuring the Board has the appropriate mix of
personalities, skills and experience.
The policy on Board appointments involves the Committee
developing an appropriate role specification that identifies the
required skills and experience and, in most instances, engaging
external recruitment consultants, to lead the search process
and identify suitable candidates. Interviews of the shortlisted
candidates are held with the Chair and members of the
Committee. After consideration by the Committee, a
recommendation is made to the Board to appoint a preferred
candidate. The Committee is satisfied that this constitutes
a formal, rigorous and transparent process for the appointment
of new Directors to the Board and its subsidiaries, embracing
a full evaluation of the skills, knowledge and experience
required of new Directors.
External recruitment consultant
Spencer Stuart was engaged towards the end of 2024, as the
external independent recruitment consultant in the search for
a new Non-Executive Director in anticipation of Justine Roberts
reaching the end of her nine-year tenure in June 2025.
Spencer Stuart is committed to promoting diversity in the
candidates that it presents on an annual, global and cumulative
basis. Spencer Stuart has no other connection with the Admiral
Group or its Board Directors.
Non-Executive Director induction
Upon appointment, our Non-Executive Directors embark on a
bespoke and comprehensive induction programme, comprising
common elements for all Non-Executive Directors, as well as
elements tailored to the individual depending on their role,
skills, knowledge and experience. The induction process, led
by the Company Secretary, covers topics such as the role of
a Non-Executive Director and their responsibilities, the workings
of the Board and the Group’s subsidiary boards, and the
Company’s operations. Non-Executive Directors are provided
with a suite of background reading materials before induction
sessions are arranged with individuals from each of the Group
businesses, again, depending on the individual’s induction
requirements. Ongoing professional development needs of
newly appointed Non-Executive Directors are then monitored
via annual individual Director evaluations and the Committee’s
oversight of the Non-Executive Director skills matrix.
Inductions took place for both Mike Rogers, Chair, and Fiona
Muldoon, Non-Executive Director, during 2023 and into 2024.
The Annual Report for the prior financial year outlined
a summary of Mike Rogers’ induction process at Admiral.
A summary of Fiona Muldoon’s induction is outlined on the
next page.
Admiral Group plc Annual Report and Accounts 2024
128
Nomination and Governance Committee report
continued
Fiona Muldoon – Non-Executive Director induction process
Chair
Fiona met with Mike to discuss the
workings of the Board and its
Committees, the contribution
expected of Admiral NEDs,
and the challenges and opportunities
facing Admiral. This also included her
work as Chair of the Audit Committee.
Senior management
Fiona met with key members of
Admiral’s senior management team
including the Chief Executives of each
of our UK and overseas business
divisions along with the department
heads of Legal, Investor Relations,
Compliance, Finance and Actuarial,
Risk Management, Internal Audit, IT,
Pricing, IT Security and People
Services, amongst others, to
understand these key areas of
businesses.
External advisors
Fiona met with Admiral’s key
external advisors including our
external auditor.
CEO
Fiona and Milena Mondini de Focatiis
met to discuss matters including
the Group strategy, operations, risks,
market positioning, management
development and succession
planning. Milena also provided
an introduction to Admiral UK
underwriting, claims, reserving and
pricing processes.
Non-Executive Directors
Fiona met with each of the Non-
Executive Directors who gave their
insight into Board dynamics, culture
and governance as well as
highlighting their backgrounds and
areas of expertise. Board Committee
Chairs brought Fiona up to speed
on their respective Committee’s
business.
Fiona Muldoon
Fiona joined Admiral as a NED on
2 October 2023. Fiona undertook
a comprehensive and bespoke
induction programme designed
to provide her with the necessary
information to effectively take
on her role as NED on the Group
Board, as a member of the Audit
Committee, and subsequently
as Chair of the Audit Committee
from 25 April 2024.
CFO
Geraint Jones briefed Fiona on all
Group finance matters including;
financial performance and projections,
investor feedback, market analysis,
investments, capital management,
budgets, reporting and control
processes.
Significant shareholders
Fiona has met with one of the
founders of the Company, David
Stevens, to understand Admiral’s
history and his views on the business.
There is the opportunity for
individual retail shareholders to meet
the Committee Chairs annually at
the AGM.
Company Secretary
Dan Caunt spent time with Fiona
explaining the Group governance
framework; this included all operational
aspects of the Board and its
Committees as well as engagement
with stakeholders, Admiral’s AGM
process, Director duties, UK Corporate
Governance Code requirements, the
Market Abuse Regime and Admiral’s
Share Dealing Code, Board policies,
the results of the most recent
Board evaluation and areas of Board
focus for the coming year.
Information and
educational materials
A comprehensive suite of educational
materials was provided to Fiona by
the Company Secretary including,
for example; Admiral’s business plan
and strategy, key roles and
responsibilities of the Board,
its Committees, Directors, guidelines
and policies for a UK Listed insurance
Company regulated by the FCA
and PRA, minutes of meetings, Terms
of Reference etc.
Site visits
Fiona undertook various site visits
during her first year and met with
management and colleagues across
the business, which included our UK
sites in South Wales, as well as our
Spanish operation in Seville.
Admiral Group plc Annual Report and Accounts 2024
129
Nomination and Governance Committee report
continued
Nomination01.png
Board Committee changes, term extensions
and internal appointments addressed by the
Committee during 2024
The Board, on recommendation from the Committee, agreed
to the following proposals/changes during the year:
• The extension of Andy Crossley’s 6 year term, to 9 years
• The extension of Evelyn Bourke’s 3 year term, to 6 years
• The extension of Bill Roberts’ 3 year term, to 6 years
• The appointment of Karen Green as Chair of the
Remuneration Committee, and Evelyn Bourke stepping
down as a member of the Remuneration Committee
• The appointment of Fiona Muldoon as Chair
of the Audit Committee
• The appointment of Evelyn Bourke as a member
of the Audit Committee
• Karen Green stepping down as a member
of the Audit Committee
• The extension of Mike Brierley’s 6 year term, to 9 years
• The extension of Karen Green’s 6 year term, to 9 years
• Approval of additional external appointments for existing
Board Directors
• Consideration of, and recommendation for reappointment
of all Directors at 2024 AGM.
The Committee also considered and approved, on behalf
of the Board, subsidiary board appointments, such as the
appointment of Alistair Hargreaves as the CEO of EUI Limited.
Further information on this particular decision is detailed
on page 111.
Annual re-election
As set out in the Group’s Articles of Association, all Directors
should retire and offer themselves for re-election at each AGM,
in accordance with the UK Corporate Governance Code
(the Code) and the Company’s current practice. Therefore,
all Directors will be submitting themselves for election
or re-election by shareholders at the forthcoming AGM.
Following a full review and evaluation during the year,
the Board is satisfied that all Directors are properly qualified
for their election or re-election by virtue of their skills and
experience and their contribution to the Board and its
Committees. Further details of why each Director’s contribution
is, and continues to be, important to the Company’s long-term
sustainable success is provided on page 101 and within the
notes to the Notice of the 2025 Annual General Meeting.
Admiral Group plc Annual Report and Accounts 2024
130
Nomination and Governance Committee report
continued
Board composition and how we plan for succession
The composition of the Board is kept under constant review by the Committee. As at 31 December 2024, the Board comprised
11 Directors: The Chair (who was independent on appointment), two Executive Directors, and eight independent Non-Executive
Directors – see page 101.
The Committee carefully considers the independence, composition, balance of skills and knowledge of the Board. As a result,
the requirement to refresh Board and Committee memberships in an orderly manner is continually monitored so as to maintain
the continuity of Board process and the strength of personal interaction, which underlies the effectiveness of the Board.
Our Board has a broad range of skills and experience which it uses to bring independent judgement to bear on issues of
strategy, performance, risk management, resources and standards of conduct, which are integral to the success of the Group.
Nom Board plan.svg
Board composition and succession planning
Balance of skills,
knowledge
and experience 
Non-Executive
tenure and
independence
Time
commitment
and external
appointments
Annual Board
evaluation
and individual
Director
appraisals
Board
diversity
Tenure and independence
The table below details the length of service of the Chair and each of the current Directors. It illustrates the balance between
experience and bringing in fresh perspective, as well as the independence of each of the Non-Executive Directors.
Director
Date of appointment
Length of service as a Director
as at 31 December 2024
Independence
Non-Executive Directors
Mike Rogers (Chair)
27 April 2023
1 year 8 months
On appointment
Justine Roberts
17 June 2016
8 years 6 months
Independent
Andy Crossley
27 February 2018
6 years 10 months
Independent
Michael Brierley
05 October 2018
6 years 3 months
Independent
Karen Green
14 December 2018
6 years
Independent
JP Rangaswami
29 April 2020
4 years 8 months
Independent
Evelyn Bourke
30 April 2021
3 years 8 months
Independent
Bill Roberts
11 June 2021
3 years 6 months
Independent
Fiona Muldoon
02 October 2023
1 year 3 months
Independent
Executive Directors
Milena Mondini de Focatiis
Director – 11 August 2020
CEO – 1 January 2021
4 years 4 months
Executive Director
Geraint Jones
13 August 2014
10 years 4 months
Executive Director
Admiral Group plc Annual Report and Accounts 2024
131
Nomination and Governance Committee report
continued
Skills and experience on the Board (%)
The Chair, Senior Independent Director and independent
Non-Executive Directors are currently appointed for fixed
periods of three years, subject to election by shareholders.
The initial three-year period may be extended for two further
three-year periods subject to performance review and annual
re-election by shareholders. Letters of appointment may
be inspected at the Company’s registered office or can be
obtained on request from the Company Secretary.
On appointment, the Board considered that Mike Rogers met
the independence criteria set out in provisions 9 and 10 of the
Code. The Chair's biography can be found on page 101.
The independence of each Non-Executive Director has been
assessed during the year, in line with the independence criteria
contained within provision 10 of the Code. The Board has
identified on page 130 which Directors it considers to be
independent. The Board considered all the Non-Executive
Directors to be independent during the year. For the year
ended 31 December 2024, 80% of the Board, excluding the
Chair, were considered independent Non-Executive Directors.
The number of independent Non-Executive Directors meets
the requirements set out under provision 11 of the Code which
requires that at least half of the Board, excluding the Chair,
should be Non-Executive Directors whom the Board considers
to be independent.
Balance of skills, knowledge and experience
The Directors have a broad range of skills, knowledge and
experience, and can bring independent judgement to bear
on issues of strategy, performance, risk management,
resources and standards of conduct, which are integral
to the success of the Group.
The Committee understands that a wide range of
complementary skills on the Board will assist in the meeting
of Board objectives and the delivery of Company strategy.
The Committee regularly reviews the Board skills matrix,
particularly in the context of succession planning and skills that
are potentially lost at the end of a Director’s tenure on the Board.
An aggregated view of the current skills and experience on the
Board is outlined above and an explanation regarding how this
feeds into succession planning follows later in this report.
Time commitment and external appointments
On appointment, all Directors are advised of, and requested
to make, the necessary time commitment required to discharge
their responsibilities effectively. This time commitment is also
outlined in the letters of appointment issued to the Chair and
Non-Executive Directors. When making new appointments, the
Committee takes into account other demands on the Directors’
time. Prior to appointment, significant commitments are
disclosed by Directors to the Committee and the Board.
As part of the annual performance evaluation each Director
is appraised on their time commitment dedicated to the
Company. The Committee also reviews the time commitment
required of all Non-Executive Directors at least annually to
consider whether the guidance on time commitment of certain
roles needs to be extended due to market or responsibility
changes. The Board is satisfied that all Directors have
dedicated the required amount of time to the Company
to effectively fulfil their roles, and that the Company has given
the Non-Executive Directors sufficient time to perform the
duties required of them.
As well as considering the demands of a Director’s time upon
appointment, as required under provision 15 of the Code, there
is in place a formal procedure for the approval of additional
external appointments for Directors through the Committee
and the Board. The Committee and the Board are satisfied that
the external commitments of all the Non-Executive Directors
do not conflict with their duties and commitments as Directors
of the Company.
Overall assessment of composition
The Board, through ongoing assessment and an annual
performance review, remains satisfied that it has the
appropriate balance of skills, experience, independence and
knowledge of the Group to enable it, and its Committees,
to discharge their duties and responsibilities effectively,
as required by the Code. In addition, the Directors are aware
of their legal duties under s172 of the Companies Act 2006
to act in a way they consider, in good faith, will be most likely
to promote the success of the Company for its shareholders,
as well as considering the interests of wider stakeholders.
Further details of how the Board fulfills its duty in this regard
are outlined on page 77.
Admiral Group plc Annual Report and Accounts 2024
132
Nomination and Governance Committee report
continued
Board and senior management diversity,
equity and inclusion
As required by the Listing Rules, and Disclosure and
Transparency Rules, a table setting out gender and ethnicity
diversity at Board and senior management level is included
on page 134. The Board diversity targets, which are in-line with
the targets set by the FTSE Women Leader’s Review and the
Parker Review, are: at least 40% of the board are women; at
least one of the senior board positions (Chair, SID, CEO and
CFO) is held by a woman; and at least one member of the
Board is from a minority ethnic background. As set out below,
the Committee is content that Admiral meets the targets set
out in Listing Rule 6.6.6(9)(a), and Disclosure Guidance and
Transparency Rule 7.2.8.
Gender diversity
Diversity and inclusion, and the variety of perspectives that it
brings, has been proven in studies to increase innovation and
creativity, and, as a result, improves performance. It also has
other positive impacts, such as providing greater awareness,
widens the talent pool and challenges the views or practices that
may have become embedded over time. Admiral depends on
all of the above, which are enhanced through having a diverse
workforce, to successfully implement its business strategy.
During the year, the Committee reviewed the Board Diversity
and Inclusion Policy and discussed the progress made against
the measurable targets previously set to increase diversity and
inclusion at Board, Subsidiary board and senior management
level. The wording of our policy explicitly references diversity
aspects such as ‘ethnicity, sexual orientation, disability and
socio-economic background (in addition to the aspects of age,
gender or educational and professional backgrounds)’ and
‘approach, skills and experience, race, age, gender, educational
and professional background and other relevant personal
attributes’. The Committee seeks to ensure that a clear
recruitment strategy for Board and senior management
appointments is in place and is aligned to this policy.
Measures that are covered under the Policy, including progress
updates against each, include:
(i) Having one member of the senior executive team who
is responsible and accountable for gender diversity and
inclusion at Group level. Keith Davies (Group Chief Risk
Officer) is the accountable executive for gender diversity
(ii)Setting internal targets for gender diversity in senior
management. Progress against the Group’s target of 40%
of women in senior management across the Group by
2025 is detailed below
(iii)Publishing progress annually against these targets
in reports on the Group’s website
(iv)Linking the pay of the Group CEO to the progress made
against internal targets on gender diversity.
The proportion of women on the Board has not changed since
the position as at 31 December 2023, representing five (45%)
of its 11 Director membership as at 31 December 2024. Admiral
continues to be one of only a few FTSE 100 companies where
the Board positions of CEO and Senior Independent Director
are held by women, demonstrating Admiral’s continued strong
support for the progression of women in senior leadership
roles. Official data published by the FTSE Women Leaders
(succeeding the Women on Boards Report and Hampton
Alexander Review) for 2024, issued in February 2025, reported
that the percentage of women on FTSE 100 Boards was 44.7%
improving from 42.6% in 2023.
Board nationality
Board age
British
40s
60s
Non-British
50s
70s
Board ethnicity
Board gender
White British or other White
(including White minority
groups)
Male
Female
Asian/Asian British
106
118
130
Pie charts legends_grey.svg
As a result of the continued progress to balance gender
diversity at Board level and to align with (i) the Women
in Finance Charter’s aim of increasing female representation
at the UK senior executive level to 40%; and (ii) the FTSE
Women Leaders target of 40% representation by 2025, the
Committee previously aligned the annual target of women
in senior management positions at 40%. The aim is to achieve
this level of gender diversity at an aggregate level across the
subsidiary boards too. The aim is to achieve this level of gender
diversity at an aggregate level across the subsidiary boards
too. As at 31 December 2024, women represented 29%
of all of the subsidiary board appointments, which is a slight
reduction on the position for 2023 (33%) due to several
unplanned Board changes. However, the Committee has had
oversight of work that has been in progress to improve gender
diversity generally, and through these subsidiary board
vacancies, and the aggregate position on gender diversity
across the subsidiary boards is expected to quickly improve
in Q1 2025, following the appropriate subsidiary board and
regulatory approvals. Work will continue to improve gender
diversity at this level throughout 2025.
Female representation was 33% of our Senior Executives
(Executive Committee equivalent) and 32% of their direct
reports. Admiral is working to ensure it progresses towards
achieving the 40% target. As at 31 December 2024, the gender
diversity split across the Admiral Group was 51% female/48%
male. The remaining 1% included non-binary and other
genders, and colleagues who’d prefer not to say.
Admiral Group plc Annual Report and Accounts 2024
133
Nomination and Governance Committee report
continued
Ethnic diversity
The Group remains strongly supportive of the principle
of boardroom diversity, of which gender and ethnicity are
important, but not the only, aspects. What is also important
is diversity of thought, experience and approach and each
new appointment must complement what already exists
around the Board table.
The Committee continues to monitor the requirements of
The Parker Review’s report on ethnic diversity in the context
of the composition of its Board and the new reporting
requirements for senior management. It also monitors the
initiatives that are being implemented across the Group
to increase diversity, along with consideration as to how
measures to develop a diverse pipeline of talent for Board and
senior management appointments should be developed and
monitored. The Board includes one Director from an ethnic
minority background, which meets one of The Parker Review’s
key recommendations for FTSE 100 companies, as well
as Listing Rule 6.6.6(9)(a) and Disclosure Guidance and
Transparency Rule 7.2.8. Further information on how the Group
is developing a pipeline of ethnically diverse candidates is
outlined below.
Ethnic diversity amongst senior management and the wider
workforce is something that Admiral continued to focus
on throughout 2024. Admiral produced its second ethnicity
pay gap report in the UK during the year, further demonstrating
its commitment to ethnic diversity in the workplace. Whilst
the Committee recognises that the workforce is not always
comfortable with voluntarily sharing such personal information,
there have been initiatives introduced to encourage more
people to make such voluntary disclosures. This year,
the disclosure rate was 83% in the UK.
In accordance with the Parker Review definition, the
percentage of ethnic diversity at senior management level
in the UK is 7% as at 31 December 2024. The Committee has
discussed the Parker Review recommendations to implement
a target for ethnic diversity representation at senior
management level within the UK operation of the Group by
2027. The Committee has agreed a longer term goal of 10%
by 2030 with an interim target to maintain the current position
of 7% by 2027. This takes into consideration our current
position in respect of ethnic diversity, our geographical
location in the UK, and our plans to build a healthy pipeline
into senior management.
Diversity highlights
Top 20
of Equileap’s Top 100
companies on the Global
Gender Equality List
6th
in the GPTW UK
Best Workplaces
for Women 2024
6th
in the Financial Times
Diversity Leaders 2025 list
Top 50
Best Workplaces
for Women 2024
Admiral Solutions (India)
Best
workplaces
Admiral (Canada) named
one of Canada’s Best
Workplaces for Inclusion
2024 by GPTW Canada
13th
ConTe named 13th Best
Workplaces for Diversity,
Equity and Inclusion 2024
by GPTW Italia
Admiral Group plc Annual Report and Accounts 2024
134
Nomination and Governance Committee report
continued
Activity to improve diversity, equity and inclusion in the talent pipeline
Examples of the work Admiral has undertaken to improve its diversity pipeline during the year are set out below, for further
information see page 53.
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Admiral introduced a talent and
development program, in partnership
with McKinsey which focuses on
finding talented employees from
ethnically diverse backgrounds at
different levels and supporting these
employees into leadership roles.
Admiral has completed its fourth
year of the Admiral Aspire
Programme, an internship aimed
at offering students from ethnically
diverse backgrounds and Women
in STEM (Science, Technology,
Engineering and Mathematics)
valuable work experience over
12 weeks.
Admiral has partnered with a global
diversity and talent consultancy
called Green Park to undertake an
in-depth ‘Culture and Inclusion’ audit,
focused on Equality, Diversity and
Inclusion. Insights from this were
used to develop an actionable plan
for future years.
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At Admiral, we’re committed to our
business being a place ‘Where You
Can…’, the name of our recently
launched People Promise, which
highlights that there’s no one
destination for work here; we’re all
different, with different talents, skills,
goals, and paths we might want to
travel. Our Where You Can promise
captures and celebrates all the
brilliant possibilities of life at Admiral.
Our DE&I working groups focus
on Gender Equality, Ethnicity and
Culture, LGBTQ+, Accessibility and
Neurodiversity, Social Mobility, and
Age. These groups sit alongside
other colleague communities, such
as Women in Tech and Data, all of
whom organise awareness-raising
campaigns and inspiring events
to actively encourage allyship and
ensure visibility of representation.
Our culture gives colleagues the
confidence and safe spaces to
authentically represent themselves
within our business, bolstered by our
partnerships and accreditation; in
the UK, we are a Disability Confident
Leader, Endometriosis Friendly
Employer, Neurodiversity Friendly,
Living Wage Employer and we have
been a proud sponsor of Pride
Cymru for 24 years.
Nom Pipeline.png
Admiral remains committed to providing equal opportunities, eliminating discrimination, and encouraging diversity amongst
its employees both in the UK and overseas. A breakdown of the gender and ethnicity of Directors and senior employees at the
end of the financial year are set out in the tables below, in accordance with the FCA Listing Rule requirements.
Gender
Number of
Board members
Percentage
of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management
Percentage of
executive
management
Men
6
55%
2
49
68%
Women
5
45%
2
23
32%
Other category
–
–
–
–
–
Not specified / prefer not to say
–
–
–
–
–
Ethnicity
Number of
Board members
Percentage
of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management
Percentage of
executive
management
White British or other White (including
minority white groups)
10
91%
4
43
60%
Mixed/Multiple Ethnic Groups
–
–
–
–
–
Asian/Asian British
1
9%
–
1
1%
Black/African/Caribbean/Black British
–
–
–
–
–
Other Ethnic group, including Arab
–
–
–
3
4%
Not specified/prefer not to say
–
–
–
25
35%
Admiral Group plc Annual Report and Accounts 2024
135
Nomination and Governance Committee report
continued
Succession planning
The Committee oversees the succession planning strategy
and appointment procedure for new Director’s on behalf of the
Board. The Committee reviews those skills present on the
Board in order to understand where there are strengths and
potential weaknesses, and where there may be the opportunity
to bring in complementary skills to improve the functionality
and depth of experience of the Board. These requirements are
then fed through to an independent consultant who will seek
out candidates matching the skillset provided and draw up
a diverse shortlist of candidates for the Committee to review.
The Committee will also consider senior management
appointments on behalf of the Board and consider where
these appointments fit in with established Board succession
planning strategy. Any new recruitment process for the Board
is based on merit and assessed against objective criteria.
The Committee considers diversity in all of its forms as a
central consideration to this process.
Non-Executive Directors
Non-Executive Director succession planning is split into short,
medium and longer-term horizons to ensure that all eventualities,
as far as possible, are planned for.
Horizon: Emergency cover
There are emergency succession plans to ensure that there
is sufficient short-term cover or a plan in place for key roles
of the Board, namely, the Chair, the SID, Committee Chairs
and, in turn, Committee members if a Committee Chair’s
absence is longer than expected. These plans take account
of any requirements under the respective Committee’s
Terms of Reference, as well as any Code requirements.
Horizon: Medium term (3-6 year tenure)
The Committee’s medium-term succession planning
involves considering the replacement of Non-Executive
Directors over time to refresh the Board. The Committee
considers (i) each Director’s period of tenure and aims to
have staggered departure dates, (ii) the skills and
experience gaps that will be created as each Director’s
tenure comes to an end, and (iii) the diversity gaps that
might also become present.
Horizon: Longer term (6-9 year tenure)
The Committee’s longer-term succession planning involves
the consideration of the skills, experience, and diversity
that the Board will need over the longer term, taking
into account the Group’s strategy and the main trends
and factors that are likely to affect the Group’s long-
term success.
The regular review of these succession plans provides an
opportunity for the Committee to discuss the insights provided
by the data in order to inform the desired mix of skills,
experience and diversity that the Board needs now and in the
future, in the context of the Group’s strategic objectives.
Executive Directors and senior management
The responsibility for making appointments within senior
management rests with the CEO, with direction from the
Committee. Talent management continues to be a key area of
focus for the Committee to ensure that there is a diverse
pipeline of talent for senior management and Executive Director
succession. During 2024, the Committee considered progress
in improving talent management and succession planning within
the Group. The Committee strongly believes that an effective
internal talent management process will ensure the preservation
of Admiral’s unique culture as far as possible.
During the year, the Committee also received an update
on the succession planning framework which is used across
the Group. This framework encourages more structured
thinking about opportunities across departments and
internationally, even in circumstances where this is a well
embedded practice already within Admiral. Discussions on
success profiles have also helped to visualise how success
will look in the future for the critical senior management roles,
whilst also providing future talent with visibility on what future
development might look like for them.
The review of succession planning undertaken during the year
concluded that there was a healthy pipeline of talent across
the Group, with no immediate risk in respect of leadership
continuity, and the right level of talent to execute our ‘internally
grown leaders’ strategy. The Group continues to work to
ensure that all areas of the business are working to achieve
Admiral’s commitment to diversity at all levels in all its forms.
The Committee will continue to monitor levels of diversity
across the business through 2025 and will work to improve the
ethnic diversity of entities located in geographies where such
diversity should be better represented. For further information
on what the Company is doing in relation to diversity see pages
53 and 134.
The Committee remains satisfied that effective succession
plans for Directors and senior management are in place to
ensure the continued ability of the Group to implement strategy
and compete effectively in the markets in which it operates.
Governance
The Committee also regularly reviews the Group’s governance
arrangements, including any changes to the subsidiary board
or Committee structure, changes to the UK Corporate
Governance Code and FCA Listing Rules, as well as oversight
of the regulatory applications made under the Senior
Managers Regime.
Admiral Group plc Annual Report and Accounts 2024
136
Nomination and Governance Committee report
continued
Committee effectiveness review
The Committee’s 2024 annual review was conducted by way
of a self-assessment, overseen by the Company Secretary,
and involved completion of a wide-ranging questionnaire.
The questionnaire asked a set of questions designed to provide
objective assessment of the Committee’s performance,
including its effectiveness in monitoring Board composition,
consideration of Executive and Non-Executive Director
succession, overseeing talent management, senior management
succession planning and developing Directors’ knowledge.
The Committee discussed the output from this performance
review at its meeting in December 2024 and concluded that,
overall, the Committee had performed effectively during the
year under review. Areas of focus for the Committee in 2025
were identified and included better oversight of governance
around Admiral’s subsidiary board structure, executive
succession planning, Non-Executive Director succession
planning (particularly in respect of Justine Roberts coming
to the end of her nine-year tenure on the Group Board), and
diversity and inclusion in the talent pipeline.
Annual performance review of the Board,
Board Committees and individual Directors
How we assess our Board’s effectiveness
Each year Admiral conducts a performance review to assess
the skills, experience, independence and knowledge of the
Board to confirm it has been able to discharge its duties and
responsibilities effectively. The composition and diversity
of the Board and it’s Committees and how well the Directors
are working together is considered, as well as the individual
performance of the Directors and the Chair.
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In line with the provisions of the Code, Admiral undertakes
an externally facilitated evaluation every three years. In the two
intervening years, internal reviews of the Board, its Committees
and individual Directors are carried out.
This year, the process was facilitated internally by way
of a questionnaire led by the Chair in conjunction with the
Company Secretary. The 2022 Board evaluation was
conducted by way of external evaluation by Bvalco Ltd.
Progress against the Board objectives that stemmed from
the 2024 Board evaluation process are set out below.
2022
External Board
Evaluation
2023
Internal Board
Evaluation
2024
Internal Board
Evaluation
Nom Evaluation.png
Admiral Group plc Annual Report and Accounts 2024
137
Nomination and Governance Committee report
continued
Progress against 2023 Board performance review recommendations
In November and December 2023, the Board undertook an internal review of the performance of the Board, Board Committees
and individual Directors for the year ended 31 December 2023. The results of the internal performance review were discussed
at the Board meeting in December 2023, they demonstrated a Board that appeared to be functioning well, with some identified
opportunities for improvement.
The recommendations from the Board performance review fed into the Board’s agreed objectives for 2024 and were detailed
in the 2023 Annual Report as ‘Principal areas of focus for the Board in 2024’. The Board discussed progress against these agreed
areas for focus during 2024 and agreed good progress had been made against all recommendations during the year. This progress
is set out in the table below.
Areas of focus for 2024
Progress update
To improve understanding around the impact
of hybrid working on the Group’s culture and
the associated risks.
The Board received updates on culture and the impact of hybrid working
during the year, one of which was on the Culture Audit undertaken by EY.
Further information on this is on page 116. All business presentations and
deep dives to the Board are required to include an update on people and
hybrid working.
Environmental, social and
governance considerations, including ensuring
the Board has the correct information to monitor
ESG performance, and the setting of ESG targets
that reflect the Group’s values.
A Chief Sustainability Officer was recruited at the end of 2023 and a
Sustainability Steering Committee was formed to drive Admiral’s approach.
ESG and sustainability were topics that featured heavily on the Board’s
agenda during 2024, with updates on priorities for the year, strategy,
performance and progress against targets and milestones. The Board also
reviewed and approved the Group’s Sustainability Report. Further
information on sustainability is on page 47.
Review of control framework to ensure
appropriate focus on compliance and changes
to the regulatory risk outlook and associated risks.
During 2024, the Board and the Risk Committee has had oversight of the
work to deliver a risk enhancement strategy. The continued delivery of this
strategy, together with the recruitment of several senior managers in the
Group’s risk function has facilitated several improvements across the risk
universe. See page 145.
Ensure standard reporting templates are rolled
out across all Committees and subsidiary Boards
for consistency of approach.
Standard Board and committee report templates have been rolled out
across the subsidiary board and committees, and consistency of approach
will continue to be monitored.
Consideration of further opportunities for
informal Board and management interactions
to ensure management was able to benefit
from Non-Executive Director insight and
experience. Group Board Non-Executive
Directors to have further engagement with
subsidiary board Non-Executive Director’s
to ensure sharing of knowledge and experience.
A calendar of 2024 events was collated for Group Board’s Non-Executive
Directors, which included events such as the staff general meeting,
the Admiral leadership offsite meeting, Top 10 award dinner, and subsidiary
board meetings.
All members of the Board are invited to attend dinners and breakfasts
around each Group Board meeting which provides them with the
opportunity to informally meet with those presenting papers at the meetings.
Further information on other opportunities the Board has to meet
colleagues and senior managers is on page 124.
2024 Board performance review
Having carried out an external Board performance review
in 2022 in accordance with the Code requirement, the 2024
Board performance review process was again facilitated
internally, led by the Chair with the support of the Company
Secretary. The performance review adapted a questionnaire
developed by the external digital platform, BoardClic, which
has no other connection with the Group or its Directors.
The online questionnaire was used to evaluate the Board’s
performance and dynamics throughout 2024 and was sent
to all Board members as well as regular Board attendees
in November 2024. It considered:
• Board dynamics and the interaction between the Chair,
Non-Executive Directors and executive management
to achieve the Board’s objectives
• Leadership and succession planning, including the oversight
of the Group’s processes for managing, developing and
retaining talent
• Understanding by the Board of the prevailing culture within
the Group Quality, timeliness of delivery and presentation
of Board papers and Board support
• Time management and operational performance of Board
and Committee meetings
• Risk management and the effectiveness of the Board
in considering the Group’s risk management framework
and internal controls
• The effectiveness of the Board’s strategic and
operational oversight
• Priorities for change that would enhance Board performance.
Admiral Group plc Annual Report and Accounts 2024
138
Nomination and Governance Committee report
continued
The results of the evaluation were collated by the Company Secretary and discussed at the December 2024 Board meeting.
The overall impression from the evaluation process was that the Admiral Board and it’s Committees continued to be performing
strongly and function effectively. The Board was open and inclusive and supported the culture of the Admiral Group with some
opportunities for improvement identified.
A summary of the main recommendations resulting from the 2024 Board performance review are set out in the table below.
Recommendations have fed into the Board’s agreed objectives for 2025 and are detailed under the ‘Principal areas of focus
for the Board in 2025’ section on page 109.
Outcomes and areas of focus for 2025
Board composition
Ongoing consideration of skills and experience on the Board to inform the board
succession planning process for potential new Board members, given the limits
to current director appointment terms.
Allocation of Board time and resources
To ensure the allocation of time and resources for governance and regulatory matters
versus strategic, performance and operational matters is optimal.
Talent
Continued focus on succession planning for key senior management roles with
emphasis on ongoing work to create a diverse senior talent pipeline.
Culture
Further consideration and analysis of the potential benefits and risks, alongside the
impacts to Admiral’s culture, arising from the implementation of a hybrid working model.
Control framework
Ongoing oversight of Admiral’s control framework to ensure appropriate focus on
compliance, including changes to the regulatory risk outlook and associated risks.
AI and new technology
Understanding and maximising opportunities for the business through the adoption
of new technologies, including predictive and generative AI, and overseeing the
Group-wide AI and data vision.
Customers
To oversee the continued improvement to Admiral’s customer experience including
the ongoing embedding of the Consumer Duty across all in-scope entities.
Strategic
Maintain focus on the Group's diversification strategy including organic and inorganic
growth opportunities and development of a clear capital allocation framework.
Regulatory
Oversight of the delivery of a full internal model application submission along with
Admiral’s response to other key regulatory matters.
2024 Board Committee performance reviews
Further information on each of the Board Committee’s
performance reviews can be found within the respective Board
Committee reports.
Individual Director performance reviews
The performance of the CFO is appraised annually by the CEO,
to whom he reports. The Chair, taking into account the views
of the other Directors, reviews the performance of the CEO.
The Chair also carries out the performance assessments of
each of the Non-Executive Directors. Each of the Directors
were determined to have continued to effectively contribute
to the work of the Board in 2024.
In addition, and in accordance with the requirements of
Solvency II, the Senior Insurance Manager Regime, and the
Group’s Senior Managers & Certification Regime Policy, the
Chair carried out the process of assessment for the CEO,
Non-Executive Directors, and the Chairs of the Group’s
material, regulated subsidiaries; EUI Limited, Admiral Insurance
Company Limited, Admiral Insurance (Gibraltar) Limited, and
Admiral Financial Services Limited (Admiral Money), Able
Insurance Services Limited (Admiral Pioneer), Elephant
Insurance Company (USA), and Admiral Europe Compañia
de Seguros – AECS (Europe) to ensure they continued to meet
the requirements in terms of qualifications, capability, honesty
and integrity.
The performance of the Chair is reviewed by the Board led by
the Senior Independent Director. The latest review took place
in December 2024 and was reported to the December Board.
The Senior Independent Director considered and discussed
with the Chair the comments and feedback that had been
received from the Directors as part of the Chair’s evaluation
questionnaire and was able to confirm that his performance
in 2024 continued to be effective.
Admiral Group plc Annual Report and Accounts 2024
139
Audit Committee report
Ensuring the integrity of
Admiral’s financial reporting and
risk management processes
“The Committee has focused its time
on supporting the Board in fulfilling
its oversight responsibilities, including
challenging the integrity of the
financial accounting and reporting
systems to ensure accurate and
reliable financial information.”
Fiona Muldoon
Chair of the Audit Committee
Audit Committee at a glance
Membership
• Fiona Muldoon (Chair from 25 April 2024)
• Michael Brierley
• Evelyn Bourke (from 25 April 2024)
Roles and responsibilities
The Audit Committee assists the Board with its
oversight of financial, non-financial reporting and
related controls by:
• Monitoring the integrity of the Group’s financial
statements and non-financial reporting disclosures,
and related announcements, including the Solvency
and Financial Condition Report and climate-related
disclosures
• Together with the Risk Committee, monitoring the
adequacy and effectiveness of the systems of
internal control and risk management over financial,
climate-related and non-financial disclosures
• Overseeing and monitoring the Group’s
whistleblowing processes
• Monitoring and reviewing the effectiveness,
performance, independence and objectivity of both
the internal and external auditors.
The full Terms of Reference of the Committee can
be found on our website: Board governance | Admiral
Group Plc
2024 highlights
• First full year of IFRS 17 reporting completed with no
significant issues and a positive review from the FRC
• Good progress on the UK Corporate Governance Code
changes, in preparation for a dry run of the Group’s
approach to making its declaration regarding the
effectiveness of material controls under Provision 29
during 2025
• Ongoing focus on the reserving process and assumptions
that impact the liability for incurred claims, in both the UK
and international operations.
2025 priorities
• Overseeing the Group’s approach to UK corporate
governance reforms, particularly the declaration of the
effectiveness of material internal controls
• Continuing to develop the framework around sustainability
reporting and disclosures, in accordance with the Group’s
objectives and regulatory requirements
• Monitor increased utilisation of Admiral’s internal model
in the setting of insurance reserves
• Oversight of compliance with the Institute of Internal
Auditors new Global Internal Audit Standards
• Overseeing the implementation of the enhanced Internal
Audit grading and risk assessment methodology, and
monitor its impact and effectiveness
• Ongoing monitoring of the IT and data control environment,
given developments in technology.
Committees-Fiona Muldoon2.png
Admiral Group plc Annual Report and Accounts 2024
140
Audit Committee report
continued
Dear Shareholder
I am pleased to share the Audit Committee
(the Committee) report for the year ended
31 December 2024.
Committee composition requirements
The Committee comprises three Non-Executive Directors who
fulfil the relevant Code and Disclosure and Transparency Rules
(DTR) around financial expertise, experience and independence.
Having reviewed the composition of the Committee during the
year, the Board continues to be satisfied that the Committee
as a whole has the relevant competence in the insurance and
broader financial services industry, such that its members are
able to effectively analyse, challenge and debate the issues
that fall within the Committee’s remit. Further details about the
qualifications of individual Committee members can be found
within the Director biographies on page 101.
Financial and non-financial reporting highlights
Financial reporting
The Committee continued to place considerable focus on the
critical accounting judgements and estimates in the Group’s
financial statements, in particular the recognition and
measurement of insurance contract liabilities and reinsurance
contract assets in accordance with IFRS 17 and the Group’s
reserving methodology. The Committee challenged key
reserving assumptions such as the impact on claims liabilities
of the changing economic environment, including inflation, the
current Ogden assumptions and potential future path, and the
profile of risks following growth in the UK Motor book, along
with the changes to overseas motor claims liabilities because
of the continued impact of inflation.
The Committee also spent time reviewing management’s
assessment of the expected credit loss provision held within
Admiral Money and the impairment testing performed in
relation to the Group Parent Company’s investments in
Group subsidiaries.
The Committee noted the positive results of the FRC’s review,
which is limited to consider compliance with relevant reporting
requirements, of the Group’s IFRS 17 disclosures in the 2023
Annual Report. No significant deficiencies were identified
and there were a number of positive elements in relation
to granularity of both the tabular disclosures and narrative
descriptions of how insurance and reinsurance contracts
are recognised.
Non-financial reporting
The Committee oversaw, in conjunction with the Group Risk
Committee, the Group’s development of its sustainability and
climate-related financial disclosures, in particular a robust
assessment of the impact of climate on the Statement of
Financial Position.
In addition, the Audit Committee reviewed the delivery
of enhanced external limited assurance work over sustainability
and climate reporting within the Annual Report, including
the separate public assurance report over a number
of sustainability performance indicators.
Corporate governance and other regulatory
reporting changes
The Committee continued to develop its understanding of the
impact of the requirement of Provision 29 of the Corporate
Governance Code, receiving a presentation setting out the
key considerations and challenges, from the external advisor
that provides support to the Group’s implementation
of the requirements.
In addition, regular updates were provided by management
on the ongoing work in respect of the changes, to ensure
compliance with the new requirements by the 2026
implementation date.
Fair, balanced and understandable
One of the responsibilities of the Committee is to assess
whether the Annual Report and Accounts, taken as a whole,
is fair, balanced and understandable, as well as ensuring
it provides shareholders with the necessary information
to assess the Company’s position. The Committee reviewed
and challenged management’s assessment of the annual report
in respect of the above requirements, in particular in relation
to the balance of commentary on good and bad news,
and disclosure of significant events in the period.
Internal controls
The Committee has continued to review the effectiveness
of the internal control systems across the Group, receiving
regular updates from the internal audit team and direct updates
from business areas where potential control weaknesses and /
or improvements had been identified through audit and other
assurance reports.
Whistleblowing
On behalf of the Board, the Committee considered and reviewed
the Group’s whistleblowing policy and received quarterly updates
on the use and effectiveness of the policy and the instances
of whistleblowing that had been raised across the Group during
the year. During the year, the Committee concluded that the
Group’s current whistleblowing arrangements continued to be
appropriate and effective allowing employees to raise concerns
in confidence and anonymously.
FRC Minimum Standard
The Committee can confirm that the Company is compliant
with the FRC’s Audit Committees and External Audit: Minimum
Standard (‘Minimum Standard’), as published in 2023.
Fiona Muldoon
Audit Committee Chair
5 March 2025
Admiral Group plc Annual Report and Accounts 2024
141
Audit Committee report
continued
Committee meetings held during the year
The Committee meets at least six times per year and has
an agenda planner linked to events in the Company’s financial
calendar and other significant issues that arise throughout
the year, which fall for consideration by the Committee under
its remit. The Chair of the Audit Committee agrees the agenda
for each meeting with the Company Secretary.
During 2024, there were eight scheduled Committee meetings
held (with two of these meetings focused on reserving matters
in conjunction with the half-year and full-year reporting and
another on the approval of the Group’s Solvency and Financial
Condition Report).
The table outlined on page 122 shows the attendance
of Committee members at meetings during 2024.
Attendees at Committee meetings
The Group Company Secretary acts as Secretary to the
Committee. The Group Chief Financial Officer, Group Chief Risk
Officer, Director of Group Finance and Group Head of Internal
Audit normally attend all Committee meetings (other than certain
private sessions). The Chair of the Board, Chief Executive Officer,
Head of Group Compliance, and other representatives from
across the Group, may be invited to attend all, or part of, any
meeting as and when appropriate. The Chairs of the Audit
Committees of the Group’s European insurer and US subsidiary
also attend at least one meeting each year to present on
their activities.
The external auditor attended all the Committee’s meetings
held in 2024, except in respect of those agenda items when
its own performance, reappointment and fees were reviewed
and discussed, or where any other conflict was identified.
Key matters considered during 2024
The significant matters considered by the Committee during
the year are outlined below.
Financial reporting
After discussion with both management and the external
auditor, the Audit Committee determined that, as in the prior
year, the key risks of misstatement of the Group’s financial
statements, related to the valuation of insurance contract
liabilities under IFRS 17. This key risk of misstatement can be
separated into the best estimate of future cashflows required
to fulfil insurance contracts, and the methodology and
measurement of the risk adjustment for non-financial risk.
Whilst the inflation assumptions applied to UK Car bodily injury
claims reserves were still a key focus area, given the stabilising
inflationary environment, the Committee agreed that this
should no longer be identified as a separate significant risk.
The IFRS 9 provision for expected credit losses in relation
to the Group’s lending business, Admiral Money, and the
impairment testing exercise performed in relation to the Group
Parent Company investments in Group subsidiaries, were key
financial reporting estimates considered by the Committee
These important issues were discussed with management
during the year and with the external auditor at the time the
Committee reviewed and agreed the external auditor’s Group
audit plan, when the external auditor reviewed the interim
financial statements in August 2024 and also at the conclusion
of the external audit of these full-year financial statements.
Other important financial reporting matters that were
considered by the Audit Committee included:
• a number of critical IFRS 17 judgements, in particular the
continuing use of the premium allocation approach for
all insurance and reinsurance contracts, based on eligibility
assessments, and the assessment of risk transfer and
resulting classification of the Group’s contracts with reinsurers
as reinsurance contracts (see note 2 for further detail)
• the accounting and disclosure of the Group’s acquisition
of the direct Home and Pet renewal rights from the RSA
Insurance Group Limited (RSA), as set out in note 13 to the
financial statements.
Valuation of insurance contract liabilities
The Committee continued to spend significant time reviewing
and challenging the approach, methodology and key
assumptions adopted by management in setting reserves for
insurance contract liabilities in the financial statements to
ensure consistency with the Group’s stated accounting policies.
In this context, the Committee challenged management on the
important judgements and assumptions used in deriving the best
estimate of future claims cashflows, including specific focus
on the impact that growth in the UK Motor book could have
on the profile of risks within the book, the impact and application
of the Ogden rate change on UK Motor insurance contract
liabilities, as well as an ongoing focus on the inflation
assumptions applied in relation to UK Car bodily injury claims.
The Committee also spent time reviewing and challenging
management’s assessment of the impact and proposed
disclosure of the industry-wide FCA review of total loss
settlements on insurance contract liabilities.
The Committee reviewed management’s papers setting out the
basis for the measurement and selection of the risk adjustment
for non-financial risk, considering the impact of emerging
trends and analysis of uncertainties, in relation to the UK Car
Insurance business.
Further information is set out in more detail in the critical
accounting estimates section of note 2 to the financial
statements.
As in previous periods, the Committee held meetings
specifically focused on reserving, receiving presentations
on UK Car Insurance reserves from the internal actuarial
reserving and finance teams, as well as the independent
external actuarial advisors. At these meetings management
provided further information on the projected best estimate
claims reserves, as well as payment patterns used to estimate
the resulting future claims cashflows. Management also
presented to the Committee on the measurement of the risk
adjustment for non-financial risk including the methods used
to estimate the reserve risk probability distribution and the
selection of the confidence level in line with the Group’s
accounting policy. The Committee also received presentations
from the external actuarial firm that performed independent
validation of the best estimate claims reserves and the external
Big Four firm that performed independent validation of the
reserve risk distribution and the appropriateness of the risk
adjustment at the target confidence level.
Admiral Group plc Annual Report and Accounts 2024
142
Audit Committee report
continued
The Committee reviewed and discussed the potential effects
of the growth in the UK Car Insurance business on actuarial
projections and resulting best estimate insurance contract
liabilities, as well as assumptions and scenarios in relation
to the change in Ogden rate, continued inflationary pressures
on claims reserves in relation to both damage and bodily injury
claims and updates regarding the FCA’s multi-firm review
of motor total loss claims. The Committee also reviewed
management’s assessment of the level of uncertainty inherent
in the claims reserves, and changes to that assessment from
previous periods as well as the results of management’s
reserve stress and scenario testing.
The Committee also received reports from the Group’s external
auditor, Deloitte, on its work in relation to this significant audit
risk. This included reviewing management’s actuarial data
quality assessments, best estimate reserve projections and
the risk adjustment for non-financial risk, as well as assessing
management’s qualitative and quantitative support for gross
insurance contract liabilities included in the financial
statements. Based on this work, the auditor was satisfied that
the financial statement reserves remain appropriate and
consistent with the Group’s accounting policy.
The Committee also received reports on the reserving
processes for the Group’s insurance businesses other than
UK Car Insurance. Management presented an overview of the
claims reserving processes and resulting recommendations
for UK Household and UK Van insurance, including external
actuarial reserving reviews over these lines of business, as well
as the European and US Motor businesses, including the
results of actuarial best estimate reserving processes and
justification for the risk adjustment for non-financial risk for
each business.
The Committee spent time reviewing the updates to the Italian
motor insurance contract liabilities as a result of both a
deterioration in the best estimate following continued
inflationary pressures and updates to the Milano tables used
for bodily injury settlements in Italy, including challenging
presentations from management on the additional work
performed in relation to the Italian insurance contract liabilities
as a result of the above changes.
Whilst acknowledging that the setting of reserves for claims
which will settle in the future is a complex and judgemental
area, having had the opportunity to challenge management’s
proposal in respect of both best estimate reserves and risk
adjustment, the Committee is comfortable that an appropriate
process has been followed, and that there has been sufficient
scrutiny, challenge and debate to give confidence that the
reserving levels set incorporate a risk adjustment for the
uncertainty in the best estimate which is consistent with
the Group’s stated IFRS 17 accounting policies.
IFRS 9 provision for expected credit losses
During the year, the Committee has continued to review and
challenge the IFRS 9 provision for expected credit loss arising
through the Group’s loans business, Admiral Money. Areas
of focus included the continued impact of UK inflationary
pressures and underlying forward-looking economic
assumptions given the changing UK economic outlook
as well as the judgements over post-model adjustments.
Further information on the provision and key assumptions
are found in note 7 to the financial statements.
On the basis of the work performed and having had the
opportunity to challenge management’s proposal in respect
of the provision for expected credit losses, the Committee
was comfortable that an appropriate process has been
followed, and that there has been sufficient scrutiny and
challenge to give confidence that the provision has been set
in line with the IFRS 9 requirements and included appropriate
allowance for uncertainties arising from the current
macroeconomic environment.
Impairment testing for the Group’s investment
in subsidiaries
During the year, the Committee considered management’s
work in relation to the Group Parent’s investment in subsidiary
entities. Under the relevant accounting standard, IAS 36
‘Impairment of Assets’ management identified entities with
indicators of impairment and performed detailed impairment
testing in relation to those investments, calculating recoverable
amounts primarily using discounted cashflow calculations.
Management proposed the recognition of non-cash impairment
losses in respect of investments in Elephant, the Group’s US
insurer, as well as subsidiary entities supporting the Group’s
newer growth businesses in the UK and in Italy. The impairment
charge relating to these subsidiaries followed a similar
approach to previous periods, reflecting the reduction in net
assets of the business (used as a proxy for fair value less costs
to sell) arising from losses incurred during 2024.
The Committee challenged management’s proposal for
recognition of impairment losses as well as conclusions for other
subsidiary entities where indicators for impairment were
present but no impairment was deemed necessary as a result
of recoverable amounts being more than the carrying value
of investments.
Misstatements
No material unadjusted audit differences were reported by the
external auditor. The Committee confirms that it is satisfied that
the auditor has fulfilled its responsibilities with diligence and
appropriate professional scepticism.
Conclusion
After reviewing the presentations and reports from
management and consulting, where necessary, with the
auditor, the Committee is satisfied that the financial statements
appropriately address the critical judgements and key sources
of estimation uncertainty (both in respect to the amounts
reported and the disclosures). The Committee is also satisfied
that the significant assumptions used for determining the value
of assets and liabilities have been appropriately scrutinised,
challenged and are sufficiently robust.
Admiral Group plc Annual Report and Accounts 2024
143
Audit Committee report
continued
Sustainability and climate-related reporting
The Audit Committee received updates from the Group’s Head
of Sustainability in respect of updates to requirements such as
the new rules over greenwashing, developments in sustainability
and climate-related reporting, and the work ongoing to ensure
its continued enhancement across the Group.
In addition, the Committee reviewed management’s
presentation setting out the work performed to set out a
methodology framework and the results of the Group’s
identified climate-related risks on the financial statements,
providing challenge to ensure a robust methodology and
outcomes moving forward.
The Committee also received the auditor’s limited assurance
report over a number of the Group’s key reported sustainability
metrics, which was discussed and approved.
Internal controls and risk management system
As in prior years, the Committee performed its annual
assessment placing, in part, reliance on a third line of defence
review of the Group’s systems of internal control and risk
management performed by the Internal Audit function.
However, a slightly revised approach has been taken this
financial year in preparation for the introduction of the updated
UK Corporate Governance Code (2024), due to come into
effect in 2025/26. During this financial year, the Group Head
of Internal Controls and the Group Chief Risk Officer also
presented an annual assessment of the Group’s internal
controls to support the Committee’s own annual assessment.
In addition to the above assessments from management,
and as in previous years, the Committee received a report from
the Group Risk Committee on its activities to support the Group
Audit Committee’s annual assessment of the Group’s system
of internal controls and risk management. Further details of the
Group Risk Committee’s activities to support this process is
outlined on page 148.
Both annual assessments provided by management, together
with the Group Risk Committee’s report on its supporting
activities, provided the Committee with adequate assurance
on the level and maturity of the Group’s internal control
environment and system of risk management, based on an
overall improving position in relation to risk and controls across
the Group.
Annual assessment key considerations:
• Internal Audit reports
• GRC reportable risk events (red and notifiable)
• Residual Risk - open GRC reportable risk events, open
Category A and B internal audit recommendations
• Red Group KRIs with associated internal controls
• Whistleblowing events and coverage of training
• Group Compliance and/or Group Data Protection Privacy
& Ethics Regulatory notifications
• Notable reputational events
• Group Minimum Standards (GMS) entity self-attestations
• Timeliness and completeness of Regulatory reporting
• Performance of key financial crime controls.
UK Corporate Governance Code
During the year, the Committee considered updates from
management on the forthcoming changes to the UK Corporate
Governance Code (2024), particularly the changes relating
to Provision 29 and the declaration regarding the effectiveness
of material internal controls. The Committee also received
training from external advisors, EY, on the impact of the
changes to this UK Code provision.
Internal Audit
The Group Head of Internal Audit attended all Audit Committee
meetings and provided a range of presentations and papers
to the Committee, through which the Committee monitored the
effectiveness of the Group’s material internal controls, including
financial, operational and compliance controls on behalf of the
Board. Such papers included:
• A revised Group Internal Audit Policy approved by the
Committee, which includes the Group Internal Audit Terms
of Reference, setting out the role, objectives, reporting lines
and accountability, authority, independence, and objectivity
of the Internal Audit function
• The evolution and development of the Internal Audit function,
and the role, competence and effectiveness of each internal
audit function across the Group. The Group Head of Internal
Audit continues to have responsibility to ensure the quality
of the internal audit activities in the Group’s overseas locations.
The Chairs of the European and US Audit Committees each
updated the Committee on their respective activities during
the year
• All issued internal audit reports, enabling them to challenge
the reports’ content, including the rating, and related
recommendations
• The Group internal audit plan and the subsidiaries’ respective
internal audit plans, which the Committee approved.
The internal audit plans, effectiveness and workload of the
internal audit functions, and the adequacy of available
resources are monitored throughout the year.
The European operations have a dedicated internal audit team
and the US business also has its own locally-based internal
auditor. All reports are evaluated by the Group Internal Audit
function to ensure the quality and effectiveness of the reported
findings, and a summary of the key findings of each completed
audit is provided to the Committee as part of the Group Head
of Internal Audit’s regular Committee update.
During the year, the Group Head of Internal Audit introduced
enhancements to the Group’s internal audit grading
methodology, which were discussed and supported by the
Committee. The changes, albeit not material, intended to (i)
better reflect the categorisation of risks identified through the
Group Internal Audit team’s assurance activities in the short and
longer term and (ii) provide more flexibility, allowing the use
of professional judgement.
The Group Head of Internal Audit provided the Committee
with several updates during 2024 on work to address gaps
following the introduction of the new Global Internal Audit
Standards, which came into effect in January 2025.
Private meetings were also held between the Group Head
of Internal Audit and the Committee during the year to ensure
that there was an opportunity to raise any issues or concerns
without other members of management or the external
auditor present.
Admiral Group plc Annual Report and Accounts 2024
144
Audit Committee report
continued
External Audit
Appointment
The Group last completed an audit tender during 2020/21
when, following the completion of a robust and independent
audit tender process, Deloitte LLP were recommended
to shareholders as the Group’s auditor at the Annual General
Meeting (AGM) in April 2021 and a resolution was passed
to that effect. Deloitte LLP’s overall tenure up to and including
the 2024 financial year is nine years. The Committee confirms
it is in compliance with the provisions of the Statutory Audit
Services for Large Companies Market Investigation Order 2014.
When considering the re-appointment of Deloitte for the 2024
audit, the most critical factors discussed related to the quality
of audit and the continuity of team. On the recommendation
of the Committee, the Board approved that Deloitte should
be recommended to shareholders for reappointment as the
Group’s auditors at the 2025 AGM. A resolution to that effect
will be proposed at the AGM.
Audit fee
During 2024, the Committee reviewed and approved the audit
fee proposal for the 2024 year-end Group audit. The agreed
fee for the audit and other assurance-related services for 2024
is £3.49 million (2023: £3.48 million). The fee charged in 2023
captures additional cost in relation to the transition to IFRS17.
The Committee approved the fee having discussed with the
auditor the rationale for the proposal.
Safeguarding independence and objectivity
To ensure that the independence and objectivity of the external
auditor is safeguarded, during the year, the Committee:
• Reviewed and approved the Group’s policy on non-audit
services and was satisfied that it continued to align with
current regulatory guidance. Under the policy, the Group’s
statutory auditor will only be engaged to carry out non-audit
services in prescribed circumstances or where there is a
regulatory request, and where agreed by the Committee
• Monitored compliance with the FRC requirements around
the rotation of the Group’s lead audit partner and members
of the senior audit team
• Reviewed and approved the policy governing restrictions
on the employment of former employees of the external
audit firm
• Sought confirmation from the external auditor that they
remained independent and objective including assessing
the impact of an independence breach relating to historic
services provided to a branch of subsidiary in 2022.
The Audit Committee agreed with the conclusion that it did
not impact upon the integrity, objectivity and independence
of the auditor. Further details on this matter can be found
in the Independent Auditor’s Report on page 184.
Effectiveness of the external audit process
The Committee also undertakes an annual review of the
effectiveness of the external auditor, taking into consideration
relevant professional and regulatory requirements, the progress
achieved against the agreed audit plan, and the competence
and objectivity with which the auditor handled the key
accounting and audit judgements.
As part of its 2024 review, the Committee considered, among
other things, (i) submissions by the external auditor relating
to the firm’s continued independence; (ii) the output of
a questionnaire completed by all Committee members and
relevant internal stakeholders, such as members of the Group’s
Finance and Internal Audit functions; and (iii) the findings of the
FRC’s Annual Review of Audit Quality, including the Deloitte LLP
Audit Quality Inspection and Supervision Report 2024, published
in July 2024. Following this review, the Committee concluded
that the external auditor, Deloitte LLP, remained independent
and that the external audit process remained effective.
Private meetings were held between the external auditor
and the Committee throughout the year to ensure that there
was an opportunity for the external auditor to raise any issues
or concerns without management present.
Longer Term Viability Statement and Going
Concern Assessment
The Committee challenged the support for the Longer Term
Viability Statement (LTVS), reviewed by the Group Risk
Committee, and going concern assessment prepared by
management, and concluded that there was sufficient
evidence to support the assessment and disclosures within
the Annual Report. Further information on the LTVS and going
concern assessments can be found on pages 96 and 180,
respectively.
Whistleblowing
On behalf of the Board, the Committee received quarterly
updates on the use and effectiveness of the Group’s
whistleblowing arrangements, key metrics and the instances
of whistleblowing concerns that had been raised across the
Group during the year. The Committee concluded in 2024,
that the Group’s current whistleblowing arrangements
continued to be an appropriate means by which employees
could raise concerns in confidence and anonymously.
Committee Performance Review
As part of the Committee’s annual review of its performance,
each Committee member completed a comprehensive
questionnaire designed to provide objective assessment
of the Committee’s own performance, including its effectiveness
in monitoring internal and external audit.
The Committee discussed the results of the review at its
meeting in December 2024 and concluded that the Committee
continued to operate effectively and within its remit. There
were a small number of minor areas identified for further
improvement, such as conciseness and timeliness of papers,
and several areas of focus identified for 2025, which are
outlined on page 139.
Admiral Group plc Annual Report and Accounts 2024
145
Group Risk Committee report
Managing risk effectively
"The Group Board is of the view that the
Group’s risk management and internal
control systems have operated effectively
during the year.”
Andy Crossley
Chair of the Group Risk Committee
2024 highlights 
Over the year, the Committee has received updates on key
developments within its terms of reference, including:
• Admiral’s risk framework and approach to risk
management, including reviews of the risk appetite,
monitoring a suite of key risk indicators, and the
management of material risk events and emerging trends
• The impact of inflation, market volatility, and economic
outlook on capital and liquidity risks across the Group
• Ongoing work to ensure Admiral is prepared to meet the
challenges of climate change
• Continued response to regulatory initiatives
• Admiral’s technology and information security posture
• The More Than acquisition and business transfer,
and other key strategic initiatives.
2025 priorities
• Continued focus on the Admiral internal model, supporting
a planned regulatory application
• Continued oversight of the evolution of the risk function,
reflecting the changing risk and operating environment,
as well as to respond to changing regulatory expectations.
Group Risk Committee at a glance
Membership
• Andy Crossley (Chair)
• Karen Green
• JP Rangaswami.
The table outlined on page 122 shows the attendance
of Committee members at meetings during 2024.
Roles and responsibilities
• Assess and oversee the Group’s overall risk management
framework, including risk policies and mitigation strategies
• Review Group-wide reporting on risk events, metrics and
breaches, including those within the regular CRO Report
• Review and monitor the Group’s prudential risk exposure,
via the Own Risk and Solvency Assessment (ORSA) Report
and stress and scenario testing
• Oversee and challenge the design and execution of the
Group’s capital policy setting process, including liquidity
projections, proposed risk-based adjustments to
remuneration, and proposed final dividend payments.
The full Terms of Reference of the Committee can be found
on our website.
Committees-Andy Crossley.png
Admiral Group plc Annual Report and Accounts 2024
146
Group Risk Committee report
continued
Dear Shareholder,
As Group Risk Committee (GRC) Chair,
I am pleased to present the Committee’s report
for 2024.
Risk framework and approach to risk
management
The Committee considered ongoing enhancements to the risk
framework and risk management approach to continue
supporting delivery of the Group’s strategy. This involved
review and challenge of key initiatives including a revised Risk
Universe, accounting for an evolving and interconnected risk
landscape, updated and appropriately modified risk appetite
statements, and key risk indicators.
Progress of Admiral internal model (AIM)
The Committee received regular reporting throughout the year
to help drive key decisions in relation to the AIM. Regulatory
feedback was received for the UK Car model for Admiral Group
as at year-end 2022, and the model has been expanded from
year-end 2023 onwards to include UK Household, Van, Travel,
and Pet products, such that the AIM can produce Solvency
Capital Requirements for Admiral Group, AIGL, and AICL.
This expanded scope partial internal model will be the basis
of a regulatory full application to the PRA (Group and AICL)
and GFSC (AIGL). The AIM models are subject to independent
validation cycles prior to regulatory submissions, which are
reviewed by the Committee. Regular communications with
the PRA and GFSC are held at senior management and project
levels to align delivery for the full-application regulatory reviews.
Capital management
The Committee monitored key ratios, and reviewed the Group’s
proposed dividend level, capital plan, and capital buffer in line
with the Group Capital Management Policy. Reviews
considered the expected impact on the Group’s solvency ratio
through various sensitivities and stress tests.
Economic and geopolitical uncertainty
The Committee monitored solvency and liquidity positions amid
market, economic, and geopolitical uncertainty. Regular
Committee reporting drove discussion of (claims) inflation,
supply chain issues, cost-of-living pressures, and maintenance
of strong service levels, given the business growth in 2024.
In addition, the Committee was appraised of the potential
impacts of geopolitical developments, including Labour’s
proposed investigation into insurance pricing, which informed
stress testing on the business, supply chains, and inflation.
The Committee also assessed the impact of market
developments on the delivery of strategic objectives, including
developments in the growing electric vehicle market and
changes in the competitive landscape.
Climate and sustainability
GRC oversaw key initiatives, including the Net Zero Transition
Plan, and confirmed its ambitious commitment to achieving
net zero carbon emissions by 2040. The Committee was also
updated on sustainability performance and data monitoring,
notably following the completion of a Double Materiality
Assessment in preparation for reporting on the Corporate
Sustainability Reporting Directive (CSRD), the implementation
of new approaches to measure social value, and the results
of climate-related scenarios.
Regulatory change
The regulatory environment has undergone significant change
in the last year. Admiral engages with regulators to identify
requirements, assesses internal processes in line with
regulatory change, and ensures regulatory requirements are
met. Notably, the GRC has discussed information and review
requests from the FCA, including in relation to Motor total loss
settlements. The Consumer Duty continues to be a key focus,
and Admiral is constantly looking to identify, understand, and
utilise customer feedback to enhance products and services
whilst consistently providing good outcomes for customers.
Admiral continues to deliver training on responsible product
governance and, this year, rolled out in-person training across
the European entities. The delivery of good customer
outcomes, which aligns with the Group’s purpose, also remains
at the forefront of the Board’s agenda, with the production
of Admiral’s first annual Consumer Duty Board Report.
Financial crime, bribery and corruption
Admiral policies against financial crime, bribery, and corruption
are reviewed and approved by GRC. They prohibit fraud,
excessive gifts, hospitality, and facilitation payments. Both
employees and third parties must meet ethical standards and
comply with internal procedures. The Committee also oversees
that new employees undertake and pass training on policies
and regulations, and that existing staff undertake and pass
annual refresher training. The Group Head of Financial Crime
submits quarterly reports on the performance of systems and
controls in addressing financial crime, including money
laundering, covering declared gifts, gratuities, and third-party
due diligence procedures.
Artificial Intelligence (AI)
The Committee was apprised of developments in AI,
particularly with regards to the emerging field of ‘generative AI’,
and considered use cases and associated risks, including
cybercrime. An AI update and risk-based governance
framework, since implemented, was reviewed and challenged
by the Committee, and risks around proprietary data, ethics,
reliability, and transparency were discussed.
Resilience
During 2024, resilience was a core focus for the Committee
with regulations including the Digital Operational Resilience Act 
and UK Operational Resilience coming into force in 2025.
Line 2 have supported regulatory project delivery through
independent compliance reviews, aligning policies and
procedures with new requirements, and in-flight monitoring,
with updates shared with the Committee.
Technology and information security
In part, due to economic and geopolitical headwinds, cyber risk
increased during the year, with an uptick in cyber-attack
attempts via ransomware, phishing, and third-party
vulnerabilities. The Committee was appraised of improvements
in cyber security defence capabilities, including the
implementation of advanced tooling, threat-led testing,
and internal training.
Admiral Group plc Annual Report and Accounts 2024
147
Group Risk Committee report
continued
Data protection and privacy
The Committee continued to oversee Admiral’s commitment
to processing personal data responsibly. The Committee
approves Admiral’s Data Protection Policy, which outlines roles
and responsibilities in ensuring an effective privacy compliance
programme. As part of this, key projects and processes have
received privacy assessments. Admiral also has a standalone
Customer Privacy Notice, which provides information on how
customers can exercise their data protection rights; performance
metrics are in place to monitor the effectiveness of responses
to these requests. More information on Admiral’s approach
to privacy can be found in Admiral’s Sustainability Report.
People risk
The Committee considered the potential impact of risks such
as increased use of technology and hybrid working patterns,
and advised on appropriate improvements to controls,
including updates to employee policies.
Risk culture
The Committee has continued to oversee that the risk function
works collaboratively across the Group, ensuring that a positive
risk culture is maintained. There are plans to further enhance
and evidence the level and development of risk culture
throughout the business, via metrics, non-financial measures,
additional management training, and risk culture surveys.
Andy Crossley
Chair of the Group Risk Committee
5 March 2025
Group Risk Committee governance
The Committee Chair reports formally to the Board on the
Committee’s proceedings after each meeting, and reports
on the activities of the Committee in a formal written report
that is submitted to, and discussed by, the Board annually.
The work of the Committee is supported by more detailed work
undertaken by subsidiary Boards and/or executive Risk
Management Committees within the Group’s operational entities.
To ensure that the Committee is operating effectively, it conducts
a periodic review of its performance (last reviewed in January
2025) and at least annually reviews its constitution and Terms
of Reference (last reviewed in November 2024). Any changes
it considers necessary are recommended to the Group Board
for approval. As part of the Committee’s annual review of
its performance, each Committee member was invited to
complete a comprehensive questionnaire designed to provide
objective assessment of the Committee’s performance.
The Committee discussed the results of the 2024 review
at its meeting in February 2025 and concluded that, overall,
the Committee remained effective. Areas of strength included
the Committee’s willingness to bring, and constructively
engage in, difficult matters where necessary, and areas
of focus/improvement in 2025 included even greater focus
on emerging risks and ESG, and further strengthening the
information flows between the GRC and subsidiary businesses.
Summary of key Group Risk Committee
activities in 2024
During the year, the Committee:
• Reviewed the Group’s risk framework, supported by in-depth
data on key risk indicators, and updates on risk events and
developments pertaining to the individual Group entities,
including Admiral Europe Compañia De Seguros (AECS), EUI,
Admiral Money, and Pioneer
• Considered stress and scenario testing of a number of the
Group’s most significant risk areas, and recommended the
2024 Group ORSA Report for Board approval prior to
submission of the report to the regulator
• Received and challenged updates on customer outcomes
metrics and management information, supported by the
implementation of Consumer Duty
• Provided challenge with respect to the findings of the FCA’s
multi-firm review of total loss settlement practices, and the
mitigating actions following a deterioration in the Italian loss
ratio, in part due to updates to the Milano tables used for
bodily injury settlements in Italy
• Reviewed the Group’s reinsurance provisions, considering
the adequacy of risk mitigation measures and contingency
planning
• Considered the annual renewal of the Group’s corporate
insurance coverage
• Received regular updates in relation to key programmes
of work including the Admiral internal model and the acquisition
and integration of the UK direct Home and Pet personal lines
insurance operations of More Than, providing challenge
to key project workstreams and risks
• Monitored climate change-related initiatives, including the
inaugural Net Zero Transition Plan and progress towards
reporting on the Corporate Sustainability Reporting Directive
• Continued to oversee Admiral’s principal risks and
uncertainties, which are discussed further on page 88.
Principal risks and uncertainties
The Board of Directors confirms that it has performed a robust
assessment of the Group’s principal and emerging risks. These
risks, along with explanations of how they are being managed
and mitigated, are included in the Strategic Report on page 88.
Admiral Group plc Annual Report and Accounts 2024
148
Group Risk Committee report
continued
Risk management and internal control systems
The system of risk management and internal control over
Admiral’s risks is designed to manage rather than eliminate the
risk of failure to achieve business objectives and of breaches
of risk appetites.
Furthermore, risk management can only provide reasonable
and not absolute assurance against material misstatement or
loss. The Group Board is ultimately responsible for the Group’s
system of risk management and internal control, and the Group
Audit Committee (GAC) has reviewed the effectiveness of this
system (a summary of GAC roles and responsibilities, as well as
key GAC activities in 2024 is available on page 139).
The Group Board is of the view that there is an ongoing
process for identifying, evaluating, and managing the Group’s
risks and internal controls; that it has been in place for the year
ended 31 December 2024 and that it has operated effectively;
and that, up to the date of approval of the Annual Report and
Accounts, it has been regularly reviewed by the Group Board.
The Group Board confirms that it has performed a robust
assessment of the Group's principal and emerging risks.
These risks, along with explanations of how they are being
managed and mitigated, are included in the Strategic Report
on page 88, with key risk factors impacting Admiral being
further discussed in the Group Risk Committee (GRC) report.
The Group Board is responsible for determining the nature
and extent of the principal risks it is willing to take in achieving
its strategic objectives. This assessment supports the Group
Board in monitoring the integrity of the Group’s reported
financial statements.
The Group Board has delegated the development,
implementation, and maintenance of the Group's overall risk
management framework to the GRC. The GRC reports on its
activities to the Group Board and the GAC, supporting the
overall opinion provided by the GAC that the Group's internal
control, risk management, and compliance systems continue
to operate effectively. Further details on the GAC’s activities
to support the process is outlined on page 143.
The Group Board has delegated to the GAC the review of the
adequacy and effectiveness of the Company’s internal financial
controls, and internal control and risk management systems.
The Group operates a three lines of defence approach to risk
and internal control.
The first line of defence is the senior management teams who
have the day-to-day responsibility for implementing policies
for risk identification, assessment, and management, and
whose operational decisions must take into account risk and
how it can be controlled effectively.
The second line of defence is led by the Group Chief Risk and
Compliance Officer and comprises the Corporate Governance
functions and Committees that are in place to provide
oversight of the effective operation of the internal control
framework across the Group. The Corporate Governance
functions facilitate the oversight and operation of the Group
Policy Framework and Group Minimum Standards, covering risk
management and controls for the main risks to the Group.
The Corporate Governance functions perform second-line
reviews, including reviews of the capital modelling and
business planning processes to support the Group Board’s
assessment of the Group’s ongoing viability. Regular reviews
of risks are undertaken in conjunction with senior management,
with the results of these reviews recorded in risk registers
and reported to the appropriate governance forums and boards.
The third line of defence comprises the independent assurance
provided by the Group Internal Audit function, overseen by the
GAC. Internal Audit undertakes a programme of risk-based
audits covering aspects of both the first and second lines of
defence. The findings from these audits are reported to the
three lines of defence, i.e. management, the executive and
oversight Committees, and the GAC.
The subsidiary boards, GRC, and entity risk and audit
committees receive reports setting out key performance and
risk indicators and consider possible control issues brought
to their attention by early warning mechanisms that are
embedded within the operational units. They, together with
the GAC, also receive relevant reports from the Internal Audit
function, which include recommendations for improvement
of the control and operational environments.
The Chair of the GRC provides a written report to the Group
Board of the activities carried out by the Committee on an
annual basis (a summary of GRC roles and responsibilities,
as well as key GRC activities in 2024 is available on page 145).
In addition, the Group Board receives regular reports
throughout the year from the Chairs of the GRC and GAC
as to their activities, together with copies of the minutes from
subsidiary board meetings, the GRC, and the GAC.
The GAC’s ability to provide an opinion to the Group Board
depends on the provision of periodic and independent
confirmation, primarily by Group Internal Audit, that the
controls established by management are operating effectively,
and where necessary, provides a high-level challenge to the
steps being taken by the GRC to implement the risk
management framework.
Admiral Group plc Annual Report and Accounts 2024
149
Remuneration Committee report
Remuneration Committee at a glance
Membership
• Karen Green (Chair from 25 April 2024)
• Evelyn Bourke (Chair until 25 April 2024)
• Michael Brierley
• Justine Roberts.
Roles and responsibilities
The Committee sets the Group’s Remuneration Policy
and, through the authority delegated to it by the Board,
the Committee is responsible for making recommendations
to the Board on the implementation of the Remuneration
Policy. Its remit includes recommending the remuneration
of the Group Board Chair and the Executive Directors;
approving the remuneration of senior management;
and determining the composition of, and awards made
under, the performance-related incentive schemes.
Full Terms of Reference of the Committee can be found
on our website: Board governance | Admiral Group Plc
Ensuring our people
are supported
“The 2024 remuneration outcomes
reflect a very successful year for Admiral.
Our newly implemented 2024 Directors’
Remuneration Policy continues to
ensure strong alignment between
remuneration arrangements and
our strategy and purpose.”
Karen Green
Chair of the Remuneration Committee
Committees-Karen Green.png
2024 highlights
• 2024 Directors’ Remuneration Policy approved at 2024
AGM and successfully implemented.
• Carbon Emissions targets included for the first time
in the 2024 DFSS
• UK Insurance CEO appointment arrangements.
2025 priorities
• Providing oversight for ongoing reward transformation
activity
• Preparation for EU Pay Transparency.
Admiral Group plc Annual Report and Accounts 2024
150
Remuneration Committee Report
continued
Dear Shareholder,
On behalf of the Remuneration Committee, I am
pleased to present the Directors’ Remuneration
Report for the year ended 31 December 2024.
This is the first report since I took up the role of Committee
Chair on 25 April 2024. I would like to thank my predecessor
in the role, Evelyn Bourke, for her leadership of the Committee
since 2021 and her support during the handover period.
I would also like to thank shareholders for supporting Admiral’s
Directors’ Remuneration Policy and Annual Report on
Remuneration at the April 2024 AGM with a vote of 90.38%
and 91.09%, respectively.
2024 business context
2024 has been a very successful year for Admiral, underpinned
by strong results and enabled by continued pricing and risk
discipline and cycle management.
As Milena has highlighted in her statement this year, we have
achieved many successes, evidenced by 1.4 million new
customers, profit increasing to £839 million and increased
turnover by £1.3 billion. We have been able to deliver this
performance due to better cycle management, reacting to
changing market conditions in offering customers reduced rates.
During 2024, we have continued to ensure that our people are
supported through the ongoing challenge of higher living costs.
It remains clear to us that the continuing success of Admiral
is possible because of the hard work and dedication of the
people who work for us. We will continue to ensure they are
supported for 2025 and beyond.
Remuneration for 2024
Taking into account the approved remuneration structure and
Admiral’s business performance, the Committee made the
following decisions during 2024.
2022-2024 Discretionary Free Shares Scheme
(DFSS)
Based on our performance for the period 2022-2024, 76.73%
of the DFSS award granted in 2022 will vest to Milena Mondini
de Focatiis and Geraint Jones, respectively.
The full details of the vesting outcomes are on page 165.
2024 Annual Bonus Plan (ABP)
The formulaic outcome for the 2024 Annual Bonus Plan
scorecard was 96.58% of maximum, which reflects significant
out performance on profit, with very strong customer outcome
data and Great Place to Work® Trust Index scores in line with
the Benchmark. In line with the plan design, the Committee
undertook a holistic review, and reflecting on key data,
determined that an outcome of 96.58% of maximum was
commensurate with performance and no discretion was
applied to adjust the outcome. Milena Mondini de Focatiis
and Geraint Jones will receive an Annual Bonus Plan award
of £1,495,058 and £898,194 respectively, of which 40% will
be subject to deferral into Admiral Group shares for three years.
The full details of the Annual Bonus Plan calculations and
considerations are on page 166.
2024 DFSS award
On 27 September 2024, Milena Mondini de Focatiis was granted
an award of 95,000 shares and Geraint Jones was granted
an award of 55,000 shares under the DFSS. Using the closing
share price on the date of the grant of £28.00, this is the
equivalent to £2,660,000 or 344% of Milena’s base salary
and £1,540,000 or 331% of Geraint’s base salary respectively.
The awards will vest based on:
• EPS – 25% weighting
• TSR vs. FTSE 100 and insurance peer comparator group –
25% weighting
• RoE – 25% weighting
• Non-financial performance measures including Strategy,
Customer and ESG – 25% weighting.
There will also be the potential for downwards adjustment
subject to an assessment which will take account of risk events
considered to have a material customer, regulatory or financial
impact over the course of the performance period. Further
details can be found on page 166.
2025 remuneration arrangements
Executive Director remuneration arrangements for 2025 will
operate in line with the 2024 Remuneration Policy, subject
to shareholder vote at the AGM.
We propose to increase Milena Mondini de Focatiis’ salary
by 3.00% to £797,220 and Geraint Jones’s salary by 6.45%
to £495,000, effective from 1 January 2025. For Milena,
this increase is in line with the proposed base pay changes
across the UK workforce of the Group, where we anticipate
the average increase for colleagues to be of the order of 3%
as we continue to support our people through the high inflationary
environment. For Geraint, the Committee has continued to
review his salary and address his positioning relative to the
lower quartile of the market. As stated in the 2023 Annual
Report, the Remuneration Committee intends to increase
his salary to the lower quartile of the market by the end of this
policy period, in increments. The Remuneration Committee
will continue to review his increase each year to ensure it is
appropriate and moves his positioning as intended. This means
that the increase for Geraint may be ahead of those generally
given to colleagues for the duration of the policy.
We propose that Milena Mondini de Focatiis be granted
an award of 100,000 shares and Geraint Jones be granted
an award of 57,500 shares under the DFSS for 2025. The
Committee will review these awards prior to the September
grant date to ensure the quantum remains appropriate.
The Committee reviewed the metrics that will apply to DFSS
and Annual Bonus Plan awards for 2025. Further details are
shown on page 171.
In summary
The Annual Report on Remuneration will be put to an advisory
shareholder vote at the 2025 AGM. The Committee and I hope
that you vote in favour of the report. I am happy to discuss
our Annual Report on Remuneration with shareholders.
Karen Green
Chair of the Remuneration Committee
5 March 2025
Admiral Group plc Annual Report and Accounts 2024
151
Remuneration at a glance
How did we perform during 2024?
Profit:
£839.2m
(2023: £443m)
Earnings per share (pence):
216.6p
(2023: 111.2p)
Return on equity (%):
56.2%
(2023: 36%)
Full-year dividend per share (pence):
192p
(2023: 103p)
1 year TSR:
6.36%
(2023: 33.10%)
“I would like to thank
shareholders for
supporting the Annual
Report on Remuneration
at the April 2024 AGM
with a vote of 91.09%.”
Karen Green
Chair of the Remuneration Committee
Overview of the Directors’ Remuneration Policy
The following chart shows the operation of the key elements
of the Directors’ Remuneration Policy for the 2024
performance year:
Y1
Y2
Y3
Y4
Y5
Base salary
Pension, Benefits & Share
Incentive Plan (SIP)
Annual Bonus Plan
DFSS
40% deferred into shares
performance period
holding period
How are remuneration outcomes linked to Group purpose and strategy?
The table below details how each of the performance measures link to our Group purpose and strategy.
Group Purpose
Strategy
Performance Measures
Great
Customer
Experiences
Successful
Business
Positive
Impact on
Society
Great place
to Work
Accelerating
to Admiral
2.0
Diversification
Evolution
of Motor
Financial
Performance
EPS
ROE
TSR
Non-Financial
Performance
Strategic Assessment
Customer Feedback
Customer Outcomes
Trust Index
Diversity
Inclusion
Carbon Emissions
The Committee is dedicated to ensuring remuneration outcomes for the Executive Directors are commensurate with performance
and are aligned to the Group purpose, strategic priorities, and shareholders’ interests. Variable pay is subject to stretching
performance outcomes and is delivered primarily through shares to ensure a long-term focus and alignment with shareholders.
Admiral Group plc Annual Report and Accounts 2024
152
Remuneration at a Glance
continued
How was performance determined in 2024?
DFSS awards vesting on performance to 31 December 2024
A summary of the outcomes for the Executive Directors in respect of the 2022 DFSS award:
Performance Range
Performance Measure
Weighting
Threshold
Stretch
Maximum
Outcome
Outcome as %
maximum
Weighted
outcome
EPS
26.67%
120p
150p
217p
100.00%
TSR vs. FTSE350
26.67%
Median
Upper Quartile
53rd percentile
34.91%
Return on Equity
26.67%
20.00%
30.00%
40.00%
42.60%
100.00%
Financial
Performance
80.00%
78.30%
62.64%
Non-financial
performance
20.00%
Strategy, Customer and ESG measures,
measured over three years
70.47%
70.47%
14.09%
Overall Vesting
76.73%
2024 Annual Bonus Plan
A summary of the 2024 ABP outcomes for the Executive Directors:
Measure 
Weighting 
Threshold 
Target 
Maximum 
2024 outcome
Outcome (%
max)
Weighted
outcome
Profit 
67.50%
  £437m
  £527m
  £606m
£839m
100.00%
67.50%
Turnover Growth
7.50%
  £541m
  £1,133m
  £1,726m
£1,335m
67.05%
5.03%
Customer
Outcomes 
12.50%
Weighted customer outcome scores from
across the Group entities 
92.42%
92.42%
11.55%
Trust Index 
12.50%
9% under
benchmark
4% under
benchmark
At benchmark 
At benchmark
100.00%
12.50%
Formulaic Total
96.58%
Committee
adjustment
—%
Final outcome
96.58%
The Committee did not apply discretion to the outcome of the performance measures.
What did our Executive Directors earn in 2024?
• Pension, benefits and SIP include the 2024 pension contribution of £38,580 and £24,675 for the CEO and CFO, respectively
• ABP of £1,495,058 and £898,194 for the CEO and CFO
• DFSS value for the CEO and CFO relates to 76.73% of their 2022 DFSS awards vesting.
Key
Salary
Pension & Benefits
Annual Bonus Plan
DFSS
10995116279050
Pie charts legends_Lime.svg
Admiral Group plc Annual Report and Accounts 2024
153
Directors’ Remuneration Policy
Compliance Statement
This Remuneration Report has been prepared according to the
requirements of the Companies Act 2006 (the Act), Regulation
11 and Schedule 8 of the Large and Medium-Sized Companies
and Groups (Accounts and Reports) (Amendment) Regulations
2018, the Companies (Directors’ Remuneration Policy and
Directors’ Remuneration Report) Regulations 2019 and other
relevant requirements of the FCA Listing Rules. In addition,
the Board has adopted the principles of good corporate
governance set out in the UK Corporate Governance Code
(the Code) and the guidelines issued by its leading shareholders
and bodies such as ISS, the Investment Association, and the
Pensions and Lifetime Savings Association.
Unless otherwise stated, information contained within this
Remuneration Report is unaudited.
The following Remuneration Policy (the ‘2024 Policy’) was
supported by a shareholder vote of 90.38% and came into
effect from the April 2024 AGM.
Key principles of Admiral
remuneration arrangements
The Group is committed to maximising shareholder value over
time in a way that also promotes effective risk management and
excellent customer outcomes while ensuring that there is a
strong link between performance and reward. This is reflected
in the Group’s stated Remuneration Policy of paying competitive,
performance-linked and shareholder-aligned total remuneration
packages. These comprise basic salaries coupled with
participation in performance-based share schemes to generate
competitive total reward packages for superior performance.
This policy was reviewed in 2023 as part of the usual three-
year cycle and was approved at the 2024 AGM.
The Board is satisfied that the 2024 Policy continues to meet
the objectives of attracting and retaining high-quality
executives across the Group.
The Committee reviews the remuneration framework
and packages of the Executive Directors and senior managers
and recognises the need to ensure that the Remuneration
Policy is firmly linked to the Group’s strategy, including its risk
management approach. In setting the Policy and making
remuneration decisions, the Committee takes into account
pay and conditions elsewhere in the Group. The main principles
underlying the Remuneration Policy are:
• Competitive total package – the Group aims to deliver total
remuneration packages that are market-competitive, taking
into account the role, job size, responsibility, and the
individual’s performance and effectiveness. Prevailing market
and economic conditions and developments in governance
are also considered, as are general salary levels throughout
the organisation. There is sufficient opportunity within the
variable pay of Executive Directors to reward outstanding
levels of performance, taking into account the market
context, with upper-quartile remuneration outcomes
• Significantly share-based – our base salaries are typically
targeted towards the lower end of market but are combined
with meaningful annual share awards that vest on long-term
performance to ensure strong alignment with shareholders
and the long-term interests of the Group. Executives are also
encouraged to build up significant shareholdings in the Group
to maximise shareholder alignment
• Long-term perspective – a significant part of senior
executives’ remuneration is based on the achievement of
appropriate but stretching performance targets that support
the delivery of the Group’s strategy and shareholder value.
The extended performance and vesting horizons promote
a long-term perspective that is appropriate to the
insurance sector
• Effective risk management – incentives are designed
to ensure they do not encourage excessive risk-taking.
They are aligned with the delivery of positive customer
outcomes and reinforce the Group’s risk policy
• Open and honest culture – the Group has a strong culture
of focusing on collective success, whilst recognising
individual contribution to the Group’s performance, and this
is reflected in our remuneration structure across the business
• Transparency for stakeholders – the remuneration
structure is designed to be easy to understand, and all
aspects are openly communicated to employees,
shareholders, and regulators.
Admiral Group plc Annual Report and Accounts 2024
154
Directors’ Remuneration Policy continued
Remuneration Policy table
This table describes the key components of the remuneration arrangements for Executive Directors.
Purpose and link to strategy
Operation
Opportunity and performance metrics
Base salary
To attract and retain talent
by setting base salaries at
levels appropriate for
the business.
Salaries are reviewed annually or following
a significant change in responsibilities.
Salary levels/increases take account of:
• Scope and responsibility of the position
• Individual performance and
effectiveness, and experience of the
individual in the role
• Average increase awarded across
the Group.
Any salary increases are applied in line with the
outcome of the review.
For current Executive Directors, increases
in cash salary will not normally exceed the
increase for the general employee population
over the term of this Policy. More significant
increases may be awarded in certain
circumstances including, but not limited to:
where there has been a significant increase
in role size or complexity, to apply salary
progression for a newly appointed Executive
Director, or where the Executive Director’s
salary has fallen significantly behind market.
Where increases are awarded in excess of that
for the general employee population, the
Committee will provide the rationale in the
relevant year’s Annual Report on
Remuneration.
Pension
To provide
retirement benefits.
The Group operates a Personal Pension
Plan, a Defined Contribution Scheme.
This is available to all employees following
completion of their probationary period.
Executive Directors receive an employer
contribution consistent with that received by
UK employees (currently matched contribution
up to 6% of base salary) or the equivalent value
in cash. Base salary is the only element of
remuneration that is pensionable.
The pension provision and rules are the same
for Executive Directors and the main body
of UK staff.
Other Benefits
To provide
competitive benefits.
Includes (but not limited to):
• Death in service scheme
• Private medical cover
• Permanent health insurance
• Relocation, at the Committee’s discretion.
All benefits are non-pensionable.
Benefits may vary by role.
None of the existing Executive Directors
received total taxable benefits exceeding 5%
of base salary during the most recent financial
year, and it is not anticipated that the cost of
benefits provided will exceed this level over
the term of this Policy.
The Committee retains the discretion to approve
a higher cost in exceptional circumstances
(e.g. relocation), or in circumstances driven
by factors outside the Company’s control
(e.g. material increases in healthcare
insurance premiums).
Admiral Group plc Annual Report and Accounts 2024
155
Directors’ Remuneration Policy continued
Purpose and link to strategy
Operation
Opportunity and performance metrics
Annual bonus
To motivate and reward the
delivery of stretching near-
term financial and non-
financial targets based on
the business strategy.
Bonus payments are determined after
the year-end and will be based on
performance achieved against targets over
the financial year.
Forty percent of any bonus will be deferred
into shares for a period of three years, with
the remaining portion paid in cash. Any
bonus earned is non-pensionable. Where
any bonus is deferred, dividend equivalent
shares may be accrued on awards during
the deferral period, only receivable on
shares which vest at the end of the period.
Bonus payouts are subject to a potential
downwards adjustment based on an
assessment of risk events considered
to have a significant customer, regulatory
or financial impact over the course of the
performance period.
Bonus payouts are subject to malus and
clawback provisions, i.e. forfeiture or
reduction of unvested awards and recovery
of vested awards. Events which may lead to
the application of malus and clawback are
set out in the Group’s Malus and Clawback
Framework and include material financial
misstatement, responsibility for conduct
which results in significant losses, material
failure of risk management, misconduct,
reputational damage and corporate failure.
The Remuneration Committee has
discretion – within the constraints of local
legislation – to adjust the formulaic vesting
outcome to ensure the final outcome is a
fair and true reflection of underlying
business performance, both financial and
non-financial.
Maximum annual bonus potential for Executive
Directors is 200% of base salary.
For a Threshold level of performance, a bonus
of 25% of the maximum potential award is
payable and for Target performance 50%
of Maximum is payable.
Bonuses will be based on a combination
of financial and non-financial performance
targets. The Committee has the ability
to determine the relevant metrics, weightings
and targets each year based on evolving
business priorities.
Admiral Group plc Annual Report and Accounts 2024
156
Directors’ Remuneration Policy continued
Purpose and link to strategy
Operation
Opportunity and performance metrics
Discretionary Free Share
Scheme (DFSS)
To motivate and reward
longer term performance,
aid long-term retention of
key executive talent, use
capital efficiently, grow
profits sustainably and
further strengthen the
alignment of the interests
of shareholders and staff.
Executive Directors may be granted awards
annually at the discretion of the Committee.
Awards may be in the form of nil or nominal
priced options or conditional shares.
Awards are normally granted on an annual
basis and vest after a minimum of three
years subject to Group performance and
continued employment.
A two-year holding period applies to vested
awards, during which time Executive
Directors may not sell the vested awards
except to cover tax liabilities.
Awards are subject to a potential
downwards adjustment based on an
assessment of risk events considered to
have a material customer, regulatory or
financial impact over the course of the
performance period.
Awards are subject to malus and clawback
provisions, i.e. forfeiture or reduction of
unvested awards and recovery of vested
awards. Events, which may lead to the
application of malus and clawback, are set
out in the Group’s Malus and Clawback
Framework and include material financial
misstatement, responsibility for conduct
which results in significant losses, material
failure of risk management, misconduct,
reputational damage, and corporate failure.
The Remuneration Committee has
discretion - within the constraints of local
legislation - to adjust the formulaic vesting
outcome to ensure the final outcome is a
fair and true reflection of underlying
business performance, both financial and
non-financial.
Dividend equivalent shares may be accrued
on awards during the vesting period, only
receivable on shares which vest at the end
of the period.
Maximum opportunity: A maximum face value
on award of 500% of base salary applies.
Threshold performance will result in vesting
of up to 25% of the maximum award.
DFSS shares are granted as a fixed number
of shares (subject to the quantum limits of the
plan, as described above). The number
granted is reviewed and may be adjusted by
the Committee, for example, if there has been
a significant change in share price.
Vesting of DFSS awards is subject to the
Group’s performance over a three-year
performance period. The performance
measures may include EPS growth, ROE,
relative TSR and a scorecard of Non-Financial
metrics selected by the Committee. Details
of the measures, weightings and performance
targets used for specific DFSS grants are
included in the relevant year’s Annual Report
on Remuneration.
Approved Free Share
Incentive Plan (SIP)
To encourage share
ownership across all
employees, using HMRC-
approved schemes for
eligible UK employees.
All eligible UK employees participate in the
SIP after completing a minimum of 12
months’ service. Grants are made twice a
year based on the results of each half year
and vest after three years subject to
continued employment.
The SIP is an all-employee scheme and
Executive Directors participate on the same
terms as other employees. The acquisition
of shares is therefore not subject to the
satisfaction of a performance target.
Maximum opportunity is in line with
HMRC limits.
In-employment
shareholding requirement
To align interests of
Executive Directors
with shareholders.
Guideline to be met within five years of the
later of the introduction of the guidelines
and an Executive Director’s appointment.
400% of base salary.
Post-termination
shareholding requirement
To further align the interests
of Executive Directors with
shareholders and encourage
a focus on long-term
sustainable performance.
Shareholding required to be maintained
at the in-employment requirement
(or number of shares held at time of
termination, if lower) for a period of two
years post termination.
400% of base salary (or number of shares held
at time of termination, if lower).
Admiral Group plc Annual Report and Accounts 2024
157
Directors’ Remuneration Policy continued
The Committee is satisfied that the Remuneration Policy
is in the best interests of shareholders and does not promote
excessive risk-taking. The Committee retains discretion
to make changes required to satisfy legal or regulatory
requirements and other non-significant changes to the
Remuneration Policy without reverting to shareholders.
Notes to the Remuneration Policy table
Payments from existing awards
Executive Directors are eligible to receive payment from any
award made prior to the approval and implementation of the
2024 Remuneration Policy. This includes all outstanding
awards under the previous 2018 and 2021 Remuneration
Policies, or any awards made prior to appointment to the Board.
Details of any such payments will be set out in the Annual
Report on Remuneration as they arise.
Selection of performance measures
Vesting under the DFSS is linked to the following financial
measures: EPS growth, ROE, and relative TSR. 
EPS growth has been selected as a performance measure as
the Committee feels it is a strong indicator of both long-term
shareholder return and the underlying financial performance
of the business. It is transparent and highly visible to executives.
ROE has been selected as the Committee believes that
a returns metric reinforces the focus on capital efficiency
and delivery of strong returns for our shareholders, thereby
further strengthening the alignment of incentives with
Admiral’s strategy.
Relative TSR has been selected to reflect value creation
for Admiral’s shareholders as compared to comparative
alternative investments. 
Since the 2019 award, vesting of DFSS awards is also linked
to non-financial measures which may include strategic,
customer and other measures. The Committee believes that
the additional emphasis on these measures reinforces Admiral’s
focus on our customers and on other non-financial Group
priorities, whilst also more clearly demonstrating alignment
of Group remuneration practices with the requirements
of Solvency II.
The specific performance measures and their respective
weightings for each DFSS award may vary to reflect the
strategic priorities at the time of the award.
For the annual bonus, forward-looking performance measures,
weightings and targets are selected near the start of the year
covering financial and non-financial measures to align with the
Group’s strategic objectives.
Performance targets are set taking into account the Company’s
strategic priorities and the economic environment in which the
Company operates. The Committee believes the performance
targets are stretching and motivational, and that maximum
outcomes are available only for outstanding performance.
Remuneration Policy for other employees
The Company’s approach to annual salary reviews is consistent
across the Group, with consideration given to the role size,
complexity, experience required, individual performance and
pay levels in comparable companies.
In general, the Remuneration Policy which applies to other
senior executives is consistent with that for Executive
Directors. Remuneration is typically linked to Company and
individual performance in a way that reinforces shareholder
value creation.
Around 4,500 employees from across the Group, including the
Executive Directors, participate in the DFSS. The Committee
determines DFSS awards for those executives within its remit
and on an aggregate basis for all other participants in the DFSS.
For the Executive Directors, all DFSS share awards are subject
to performance conditions. For other senior managers and
employees, a proportion of awards (ranging from half to two-
thirds) are subject to performance, with performance
conditions either in line with those described above, and the
remainder has no performance conditions attached other than
the requirement that the recipient remains an employee of the
Group at the date of vesting. Award sizes vary by
organisational level and an assessment of both financial and
non-financial performance.
Most holders of DFSS awards receive a DFSS cash bonus,
which is equivalent to the dividend on unvested DFSS share
awards. The bonus for a number of senior managers is
adjusted for performance against a scorecard of customer
and other non-financial metrics.
The Company operates a personal pension scheme which
is available to all employees once they have completed their
probationary period. For all employees, including the Executive
Directors, the Company matches the employee contribution
up to a maximum of 6% of salary or provides the equivalent
value in cash.
All UK employees who have served a minimum tenure at
Admiral are eligible to participate in the SIP on the same terms.
Most overseas employees receive an equivalent award
to the UK SIP awards and these awards have no performance
measures attached.
Admiral Group plc Annual Report and Accounts 2024
158
Directors’ Remuneration Policy continued
Service contracts and leaver/change of control provisions
The Company’s Policy is to limit payments upon termination of employment to pre-established contractual arrangements.
In the event that the employment of an Executive Director is terminated, any compensation payable will be determined
in accordance with the terms of the service contract between the Company and the employee, as well as the rules of any incentive
plans. Under normal circumstances, Executive Directors are entitled to receive termination payments in lieu of notice based on base
salary and compensation for loss of benefits. The Company has the ability to pay such sums in instalments. The notice period
for all Executive Directors is one year.
Executive Director
Date of appointment
Contract duration
Geraint Jones
13 August 2014
Rolling contract, 12-month notice period
Milena Mondini de Focatiis
11 August 2020
Rolling contract, 12-month notice period
There is no provision in the Executive Directors’ contracts for compensation to be payable on early termination of their contract
over and above the notice period element. The Executive Directors’ service contracts are available to view at the Company’s
registered office.
When considering termination payments, the Committee reviews all potential incentive outcomes to ensure they are fair to both
shareholders and participants. The table below summarises how the awards under the DFSS and Annual Bonus scheme are
typically treated in specific circumstances, with the final treatment remaining subject to the Committee’s discretion.
Plan
Scenario
Treatment of awards
Timing of vesting
DFSS
Resignation
Awards lapse under most circumstances e.g.
dismissal for cause or resignation.
n/a
Death, injury or disability,
redundancy, retirement, or any
other reasons the Committee
may determine
Any unvested award will be pro-rated for
time with reference to the proportion of the
vesting period remaining at termination, and
performance, unless the Committee
determines otherwise.
Normal vesting date.
Change of control
Any unvested award will be pro-rated for
time with reference to the proportion of the
vesting period remaining at termination, and
performance, unless the Committee
determines otherwise.
Immediately
Annual Bonus
Plan
Resignation
Eligibility forfeited under most
circumstances, e.g. dismissal for cause
or resignation.
n/a
Death, injury or disability,
redundancy, retirement, or any
other reasons the Committee
may determine
Any bonus payable will be pro-rated for time
with reference to the portion of the
performance period remaining at
termination, and performance, unless
otherwise determined at the discretion of
the Committee.
Normal payment date
Change of control
Unless the Committee determines
otherwise, any bonus eligibility will be pro-
rated for time with reference to the
proportion of the performance period
remaining at change of control, and extent
to which the Committee determines that the
performance conditions have been met or
are likely to be met at the point of change
of control.
Immediately
For all leavers (with the exception of termination for cause), vested DFSS awards that are still subject to a holding period
will normally be released in full at the end of the holding period, though the Committee has discretion to determine otherwise,
taking into account the circumstances at the time.
Admiral Group plc Annual Report and Accounts 2024
159
Directors’ Remuneration Policy continued
Non-Executive Directors
The Company has entered into letters of appointment with its Non-Executive Directors (NEDs). Summary details of terms
and notice periods are included below.
NED 
Term 
Initial date of appointment 
Commencement of
current contract
Notice period 
Mike Rogers 
3 years 
01/02/2023
01/02/2023
Three months 
Justine Roberts 
3 years 
17/06/2016
17/06/2023
One month 
Andrew Crossley 
3 years 
27/02/2018
27/02/2024
One month 
Michael Brierley 
3 years 
05/10/2018
05/10/2024
One month 
Karen Green 
3 years 
14/12/2018
14/12/2024
One month 
Jayaprakasa Rangaswami 
3 years 
29/04/2020
29/04/2023
One month 
Evelyn Bourke 
3 years 
30/04/2021
30/04/2024
One month 
Bill Roberts 
3 years 
11/06/2021
11/06/2024
One month 
Fiona Muldoon 
3 years 
02/10/2023
02/10/2023
One month 
The NEDs are not eligible to participate in the SIP, DFSS or Annual Bonus scheme and do not receive any pension contributions.
Details of the 2024 Policy on NED fees are set out in the table below:
Purpose and link to strategy
Operation
Opportunity and performance metrics
To attract and retain
NEDs of the highest
calibre with experience
relevant to the Company
Fees are reviewed annually.
The Group Chair fee is determined by the
Committee after consultation with the Executive
Directors. The NED fees are determined by the
Group Chair together with the Executive Directors.
Additional fees are payable for acting as Senior
Independent Director or as Chair or member of
a Board Committee and may be payable as
appropriate in relation to other additional
responsibilities (e.g. attending meetings overseas).
Fees are paid in a mix of cash and Company
shares for the Company Chair, and in cash for
other Non-Executive Directors. The Board retains
discretion to vary the mix or determine that fees
are paid entirely in cash or Company shares.
Fee levels are set by reference to NED fees
at companies of a similar size and complexity.
In the event that there is a material misalignment
with the market or a change in the complexity,
responsibility or time commitment required to fulfil
a NED role, the Board has discretion to make an
appropriate adjustment to the fee level.
The maximum aggregate annual fee for NEDs
is capped at the limit provided for in the Company’s
Articles of Association.
Admiral Group plc Annual Report and Accounts 2024
160
Directors’ Remuneration Policy continued
Pay-for-Performance: Scenario Analysis
The following charts provide an estimate of the potential future reward opportunities for the Executive Directors, and the potential
split between the different elements of pay under different performance scenarios in a given year.
Group CEO
Group CFO
Key
Fixed remuneration
Annual Bonus
DFSS
10995116279917
10995116279928
10995116279939
62%
25%
13%
51%
32%
17%
44%
29%
100%
27%
100%
30%
17%
14%
28%
33%
26%
42%
50%
60%
The value of DFSS awards is calculated based on the average share price in the last three months of 2024 of £26.17 and the
number of DFSS shares to be awarded in 2025 (100,000 and 57,500 shares respectively).
The performance scenarios are based on the following assumptions:
Fixed remuneration
Comprising the 2025 base salary, benefits (based on the annualised 2024 single figure
for the Group CEO and CFO) and a 6% pension contribution (uncapped).
Target remuneration
Fixed remuneration plus the value of the Annual Bonus and DFSS achieving on-target
performance of 50% of maximum.
Maximum remuneration
Fixed remuneration plus the value of the Annual Bonus and DFSS achieving
maximum performance.
Maximum remuneration with
50% share price appreciation
Maximum remuneration increased to assume a 50% increase to the value of the shares
granted under the DFSS since the point of grant.
Admiral Group plc Annual Report and Accounts 2024
161
Directors’ Remuneration Policy continued
Approach to remuneration relating to new Executive Director appointments
External appointments
When appointing a new Executive Director, the Committee’s policy is to set the remuneration package for a new Executive Director
in accordance with the approved Remuneration Policy at the time of the appointment.
In determining the appropriate remuneration for a new Executive Director, the Committee will consider all relevant factors to ensure
that arrangements are in the best interests of the Company and its shareholders. Where an individual is appointed on an initial base
salary that is below market, any shortfall may be managed with phased increases over a period of time, subject to the individual’s
performance and development in the role. This may result in above-average salary increases during this period.
The Committee may also make an award to ‘buy out’ incentive arrangements forfeited on leaving a previous employer. In doing
so, the Committee will consider relevant factors including any performance conditions attached to the forfeited awards and the
likelihood of those conditions being met to ensure that the value of the buy-out award is no greater than the fair value of the awards
it replaces. The Committee may also avail itself of Listing Rule 9.4.2 R if appropriate for the buy-out of incentive arrangements
(i.e. if the terms of participation for the prospective Executive Director are similar to all, or substantially all employees who participate
in the plan, then approval by ordinary resolution of the shareholders of the listed company in general meeting is not required).
Internal appointments
Remuneration for new Executive Directors appointed by way of internal promotion will similarly be determined in line with
the Policy for external appointees, as detailed above. Where an individual has contractual commitments made prior to their
promotion to the Board, the Company will continue to honour these arrangements. Incentive opportunities for below-Board
employees are typically no higher than for Executive Directors, but measures may vary if necessary.
Other directorships
Executive Directors are permitted to accept appointments as Non-Executive Directors of companies with the prior approval
of the Group Board. Approval will be given only where the appointment does not present a conflict of interest with the Group’s
activities, and where the wider exposure gained will be beneficial to the development of the individual.
Considerations of conditions elsewhere in the Group
The Committee considers the pay and employment conditions elsewhere in the Group when determining remuneration
for Executive Directors.
Considerations of shareholder views
When determining remuneration, the Committee takes into account best practice guidelines issued by institutional shareholder
bodies. The Committee is open to feedback from shareholders on the Remuneration Policy. It will continue to monitor trends
and developments in corporate governance and market practice to ensure the remuneration structure for our Executive Directors
remains appropriate.
Considerations of regulatory requirements
The Committee regularly reviews the Remuneration Policy and structure in the context of Solvency II remuneration guidance,
and EBA, PRA, and FCA expectations regarding the supervision of insurance firms. The Group Chief Risk Officer periodically attends
Committee meetings as part of this process and provides support to the Committee in understanding any risk-related implications
of remuneration decisions. Whilst the Remuneration Policy includes several features which help ensure compliance with current
regulatory guidance, the Committee reserves the discretion to adjust the Remuneration Policy, and its execution, to take into
account any developments in such regulatory guidance.
Admiral Group plc Annual Report and Accounts 2024
162
Annual report on remuneration
This section of the report provides details of how Admiral’s Remuneration Policy was implemented
in 2024 and how the Remuneration Committee intends to implement the proposed Remuneration
Policy in 2025.
Remuneration Committee membership in 2024
The Board sets the Group’s Remuneration Policy and, through the authority delegated to it by the Board, the Committee
is responsible for making recommendations to the Board on the implementation of the Remuneration Policy. Its remit includes
recommending the remuneration of the Group Board Chair and the Executive Directors; approving the remuneration of senior
management; and determining the composition of, and awards made under, the performance-related incentive schemes.
At the end of 2024 the Committee comprised Michael Brierley, Justine Roberts and Karen Green. The Committee had seven
scheduled meetings, and it also held a number of adhoc/late notice meetings to deal with specific issues in a timely manner.
The Group Chair, CEO, CFO and CRO are invited to meetings where the Committee considers it appropriate to obtain their advice
on Group strategy and performance and senior executive pay strategy. The Group CEO typically attends all meetings. No director
is involved in deciding their own remuneration outcome. The members of the Committee do not have any personal financial
interests (other than shareholdings), or any conflicts, that relate to the business of the Committee. The Committee members do not
have any day-to-day involvement in the running of the Group.
Committee activities
During the year ended 31 December 2024, in addition to its regular activities, the Committee also:
• Finalised the 2024 Directors’ Remuneration Policy prior to a successful shareholder vote at the 2024 AGM
• Reviewed the performance ranges for Carbon Emissions targets which were implemented in the DFSS for the first time in 2024
• Approved Senior Management appointment arrangements.
As mentioned in the Governance Report, during the year ended 31 December 2024, the Committee also performed its regular
activities:
• Reviewed the DFSS vesting and bonus arrangements for Executive Directors, senior management and relevant staff
(Material Risk Takers) covered under Solvency II
• Reviewed Admiral’s Gender Pay Gap reporting statistics
• Reviewed risk events and their impact on variable pay
• Undertook an evaluation of the Committee’s performance during the year
• Reviewed the Committee’s Terms of Reference
• Reviewed the Group’s Malus and Clawback Framework
• Reviewed external remuneration trends and market conditions.
Remuneration topics were discussed with employees at the Employee Consultation Group (ECG), which met four times in the year.
Key themes discussed at the ECG were: employee compensation, flexible working, employee benefits, reward review, maternity
policy, pension and employee health and wellbeing initiatives.
On 1 March 2024, the Chair of the Remuneration Committee and Group Head of Reward met with the ECG to discuss the remuneration
for the Executive Directors and the proposed changes to the 2024 Directors’ Remuneration Policy. The detail of the Policy
was covered in depth, with time set aside for members of the ECG to give feedback and ask any questions they felt were relevant.
There was some good discussion about how the remuneration for Executive Directors linked to wider colleague pay.
Significant shareholder engagement was undertaken as part of the process for the 2024 Directors’ Remuneration Policy,
as outlined in last year’s report. This activity carried on into 2024. The Committee Chair at the time, Evelyn Bourke, held meetings
with one investor in February 2024 and additionally issued a letter outlining the changes to the four main proxy agencies, with
follow up meetings occurring in January and February 2024.
Committee effectiveness review
As part of the Committee’s annual review of its performance and processes, each Committee member and regular attendee  
the Committee. The Committee discussed the results of the review at its meeting in February 2025 and concluded that, overall,
the Committee remained effective.
To help improve its performance over the coming year, the Committee highlighted the importance of ensuring key topics
are socialised with the Committee in good time to facilitate debate and discussion.
Admiral Group plc Annual Report and Accounts 2024
163
Annual report on remuneration
continued
Advisors to the Committee
During the year, to enable the Committee to reach informed decisions, we obtained advice on market data and trends
from independent consultants Willis Towers Watson (WTW). WTW reported directly to the Committee Chair and are signatories
to, and abide by the Code of Conduct for Remuneration Consultants (which can be found at www.remunerationconsultantsgroup.com).
WTW also provided advice to the Company in relation to capital management and claims benchmarking.
The fees paid to WTW for work supporting the Committee in 2024 (based on time and materials) totalled £96,800.
The Committee undertakes due diligence periodically to ensure that advisors remain independent of the Company and that
the advice provided is impartial and objective. The Committee is satisfied that the advice provided by WTW is independent.
Summary of shareholder voting at the 2024 AGM
The table below shows the results of the advisory vote on the 2024 Directors’ Remuneration Policy and the 2023 Annual Report
on Remuneration.
For
Against
Total votes cast
Abstentions
2024 Directors' Remuneration Policy - total number
of votes
228,178,035
24,300,029
252,478,064
5,043
% of votes cast
90.38%
9.62%
2023 Annual Report on Remuneration –
total number of votes
229,990,614
22,488,522
252,479,136
3,971
% of votes cast
91.09%
8.91%
Total Single Figure of Remuneration for Executive Directors (audited)
The table below sets out the total single figure remuneration received by each Executive Director for the years ended 31 December
2024 and 31 December 2023:
Executive
Director
1.
Base salary
2.
Benefits
3.
Pension
Total
fixed pay
4.
SIP
5.
DFSS
6. ABP / DFSS
bonus
Total
variable pay
Total
remuneration
Milena
Mondini de
Focatiis
2024
774,000
470
38,580
813,050
3,594
1,807,222
1,495,058
3,305,874
4,118,924
2023
737,326
455
15,000
752,781
3,605
1,106,690
296,017
1,406,312
2,159,093
Geraint
Jones
2024
465,000
470
24,675
490,145
3,594
1,054,206
898,194
1,955,994
2,446,139
2023
433,472
455
15,000
448,927
3,605
645,120
172,676
821,401
1,270,328
The figures have been calculated as follows:
1. Base salary: amount earned for the year
2. Benefits: the taxable value of annual benefits received in the year
3. Pension: the value of the Company’s contribution during the year
4. SIP: the face value at grant
5. DFSS: the value at vesting of shares vesting on performance over the three-year periods ending 31 December 2024 and
31 December 2023. For the 2024 figures, given that vesting occurs after the 2024 Directors’ Remuneration Report is finalised,
the figures are based on the average share price in the last three months of 2024 of £26.17. The 2023 figures have been trued
up based on the actual share price on vesting of £28.10. For 2024, favourable movements of £316,281 and £184,496 are
included in the DFSS value, attributable to an increase in the share price over the vesting period for Milena Mondini de Focatiis
and Geraint Jones, respectively. For 2023, unfavourable movements of -£254,027 and -£148,079 are included in the DFSS value,
attributable to a decrease in the share price over the vesting period for Milena Mondini de Focatiis and Geraint Jones, respectively
6. For 2024 the Annual Bonus has replaced the previous DFSS bonus scheme which was in place for 2023. The 2024 Annual Bonus
performance outcome was 96.58% of maximum, or equivalent to 193.16% of base pay.
Admiral Group plc Annual Report and Accounts 2024
164
Annual report on remuneration
continued
Total single figure of remuneration for Non-Executive Directors (audited)
The table below sets out the total single figure remuneration received by each NED for the years ended 31 December 2024
and 31 December 2023.
Total fees
2024
2023
Director
Fees
Taxable benefits8
Fees
Taxable benefits6
Mike Rogers 1
386,350
2,051
270,042
889
Evelyn Bourke 2
92,591
1,632
95,000
3,605
Karen Green 3
130,248
1,252
113,000
2,205
Jayaprakasa Rangaswami
89,250
1,944
85,955
932
Justine Roberts
112,350
778
106,045
1,253
Andrew Crossley 4, 5
184,525
4,957
188,000
5,166
Michael Brierley 4
159,850
3,723
152,000
4,806
Bill Roberts 6
109,865
26,369
103,352
25,161
Fiona Muldoon 7
96,409
1,398
20,928
–
1Mike Rogers was appointed as the Group Chair on 27 April 2023. There was an overpayment of fees in 2024, which have been corrected and paid back in 2025, and will be reflected
in Mike’s 2025 fees.
2Evelyn Bourke stepped down as Chair and as a member of the Group Remuneration Committee effective from April 2024. She subsequently joined the Group Audit Committee
as a member.
3Karen Green was appointed Chair of the Group Remuneration Committee effective from 25 April 2024. There was an overpayment of fees in 2024, which have been corrected and paid
back in 2025, and will be reflected in Karen’s 2025 fees.
4The fees for Andrew Crossley and Michael Brierley include additional fees in relation to their positions as Chair of the EUI Limited Board of Directors and Admiral Financial Services
Limited Board of Directors, respectively.
5Andrew Crossley left the Group Audit Committee on 7 March 2024..
6The fee for Bill Roberts includes an additional fee in relation to his position as a NED of the Elephant Board of Directors, which he was appointed to on 1 February 2023.
7Fiona Muldoon was appointed Chair of the Group Audit Committee effective from 25 April 2024
8Taxable benefits represent those expense reimbursements relating to travel, accommodation and subsistence in connection with the attendance at Board, Subsidiary
and Committee meetings during the year, which are deemed by HMRC to be taxable. The amounts in the table are ‘grossed-up’ to include the UK tax paid by the Company on behalf
of the Non-Executive Directors. Non-taxable expense reimbursements have not been included in the table.
Incentive outcomes for financial year to 31 December 2024 (audited)
DFSS awards vesting on performance to 31 December 2024
On 22 September 2022, Milena Mondini de Focatiis was granted an award under the DFSS of 90,000 shares with a value
at the date of award of £1,943,100 (based on a grant date share price of £21.59).
On 22 September 2022, Geraint Jones was granted an award under the DFSS of 52,500 shares with a value at the date of award
of £1,133,475 (based on a grant date share price of £21.59).
Vesting of the award was based 80% on the achievement of financial performance measures and 20% on a scorecard
of non-financial measures.
Admiral Group plc Annual Report and Accounts 2024
165
Annual report on remuneration
continued
Financial performance outcomes
The performance measures applicable to these awards are: EPS growth, TSR vs. FTSE 350 (excluding investment companies),
and ROE, weighted equally and all measured over the three-year period 1 January 2022 to 31 December 2024.
Both EPS and ROE have performed very strongly over the performance period, with outcomes above the maximum for the
performance range at 217p and 42.61%, respectively. TSR is slightly above median vs the FTSE 350 benchmark, indicating a solid
return for our shareholders over the period. The combination of these elements contributes to a vesting of 78.30% for the financial
measures. The Committee reviewed this vesting outcome and concluded that it was appropriate.
The table below details the Company’s performance against the performance range.
Performance range
Performance measure
Weighting
Threshold
Maximum
Vesting schedule
Performance
outcome
Vesting
Contribution
(% of maximum)
EPS
33.33%
120p
150p
25% for reaching
threshold, rising to
100% at maximum
performance
217p
100.00%
TSR vs. FTSE 350
(excluding
investment
companies)
33.33%
Median
Upper quartile
25% for median, with
straight line relationship
to 100% for upper quartile
53rd percentile
34.91%
Return on Equity
(ROE)
33.33%
20%
40%
25% for reaching threshold,
rising to 75% for reaching
stretch at 30% ROE, rising
to 100% at maximum
performance
42.61%
100.00%
Vesting
78.30%
Non-financial performance outcomes
The individual vesting contribution of the non-financial measures for Milena Mondini de Focatiis and Geraint Jones are set out in the
table below. These aggregated to an overall rating across the 3 years of 70.47% and have a weighted outcome of 14.09%.
Details of the measures used in the scorecard and outcomes for 2024 are summarised in the table below:
Outcomes (% out weighing for each
category)
Category
Metrics
Weighting
H1
H2
Strategy
Overall scoring from the Board on scorecard of measures
around:
33.00%
22.44%
Progress towards Admiral 2.0
Diversification - existing non-motor product development
Diversification - development of new products
Progress towards defining motor mobility strategy
Customer
Customer feedback (NPS)
17.00%
10.73%
11.01%
Customer Outcomes (CRMI)
17.00%
15.53%
14.61%
ESG
People Trust Index
18.00%
18.00%
Diversity (Female representation at Senior level)
7.50%
5.25%
Inclusion (Inclusion survey results)
7.50%
7.50%
Total
100.00%
79.45%
78.81%
Admiral Group plc Annual Report and Accounts 2024
166
Annual report on remuneration
continued
The Admiral Group Board makes an annual judgement based on its collective view of progress against the stated strategic
measures. The Board was satisfied that progress against strategic aims continued to be solid, and having reviewed business
context and supporting data, assessed this progress was commensurate with a scoring of 68% of maximum.
Customer outcomes for UK Insurance were very strong across the year, with outcomes achieving over 90% of maximum. Customer
feedback remained strong at 60% of maximum across 2024. Admiral Seguros’ customer metrics were improved across the year,
with 0% outcomes in H1, improving to outcomes of 40% for customer feedback and 45% for customer outcomes in H2. Both ConTe
and L’oliver enjoyed 100% outcomes for customer feedback across both halves of 2024.
Trust Index scores for 2024 were up 1% compared with 2023, moving to 86% from 85%. The GPTW benchmark score was down
by 1% from 2023 to 86% for 2024, meaning that the score is at the benchmark, giving an outcome of 100% for the year.
The inclusion survey results continued to be strong in 2024, with all responses coming at or above the benchmark, resulting
in a 100% outcome for this element.
The Diversity measure is slightly down on last year with a year-end position of 33.68%, which is gives an outcome of 70% of maximum.
Overall vesting
The vesting outcomes for Milena Mondini de Focatiis and Geraint Jones can be seen in the below table.
DFSS vesting component
Award weighting
Performance outcomes
Vesting (% of maximum)
Financial performance measures:
EPS growth, TSR vs. FTSE 350 (excluding
investment companies) and Return on Equity (ROE)
80.00%
78.30%
62.64%
Non-financial performance measures
20.00%
70.47%
14.09%
Total
100.00%
76.73%
The Committee reviewed the vesting outcomes and concluded that they were appropriate, and that no adjustments were required.
Based on performance and scorecard outcomes the total amount that will vest in September 2025 to Milena Mondini de Focatiis
will therefore be 69,057 shares, and the total amount that will vest to Geraint Jones will be 40,283 shares, subject to their
continued employment on the vesting date.
Vested DFSS awards are subject to clawback provisions. Events which may lead to the application of clawback are set out in the
Group’s Malus and Clawback Framework and include material financial misstatement, responsibility for conduct which results
in significant losses, material failure of risk management, misconduct, reputational damage or corporate failure.
2024 Annual Bonus
As outlined in the 2024 Policy, the Executive Directors were eligible to participate in an annual incentive scheme which is worth
up to a maximum of 200% of base pay, dependent on performance outcomes relative to the measures set out in the Policy review.
Step 1 – Formulaic review
The table below sets out performance outcomes against financial and non-financial measures to form a formulaic scorecard
outcome. The scorecard applies to both Executive Directors:
Measure
Weighting
Threshold 
Target
Maximum
2024 outcome
Outcome
(% max)
Weighted
outcome
Financial
Measures
(75% of total)
Profit
67.50%
  £437m
  £527m
  £606m
£839m
100.00%
67.50%
Turnover
growth
7.50%
  £541m
  £1,133m
  £1,726m
£1,335m
67.05%
5.03%
Non-financial
Measures
(25% of total)
Customer
Outcomes 
12.50%
Weighted customer outcome scores from
across the Group entities 
92.42% of
maximum
92.42%
11.55%
Trust
Index 
12.50%
9% under
benchmark
4% under
benchmark
At benchmark 
At benchmark
100.00%
12.50%
Total
96.58%
Admiral Group plc Annual Report and Accounts 2024
167
Annual report on remuneration
continued
Step 2 – Holistic review
The Committee considered the following key data, while reviewing the appropriateness of the formulaic outcomes:
Both Executive Directors received a performance rating of “consistently good”, which is the second highest performance rating
available to Admiral colleagues, indicating that both Executive Directors had performed strongly over the year.
From a strategic perspective, progress continued apace. As indicated earlier in this report, the Board awarded the Executive
Directors a 68% of maximum outcome for progress against strategic aims for 2024.
Group combined ratio improved to 77.4% for financial year 2024, an improvement from 88.7% in the prior year; on a similar basis
UK Motor combined ratio improved to 70.0% from 81.7%.
Solvency Capital Ratio was 203% at year-end 2024, which is significantly beyond the Group’s long-term aim of 150%.
Significant progress was made during 2024 in developing the approach to Sustainability, with highlights including approval
of Admiral’s first set of science-based targets and the publication of Admiral’s first Net Zero Transition Plan. Further information
on sustainability can be found on page 47.
For DEI, the Group Board composition remains consistent at 45% female representation, women represented 29% of all of the
subsidiary board appointments, which is a small reduction on the position from 2023 due to several unplanned board changes.
However, work has been in progress to improve gender diversity generally and the aggregate position on gender diversity across
the subsidiary boards is expected to quickly reverse in Q1 2025, following the appropriate subsidiary board and regulatory
approvals. Female representation in senior management positions has regressed, putting our 40% aspiration at risk.
Inclusion, measured through the Great Place to Work survey is at a very high level, at the benchmark of the best workplaces
in the world.
For technology-based milestones highlights include progress in Data AI and Machine Learning, with more models being completed,
up over 40% from prior years; replacement of the telephony system complete; and a record-breaking year for IT Service with
minimal incidents across the year.
The Committee considered that after the Holistic review, that an overall outcome of 96.58% of maximum was appropriate for the
year. The final outcomes are outlined in the table below:
Milena Mondini
Geraint Jones
Formulaic outcome (% maximum)
96.58%
96.58%
Holistic review outcome (adjustment)
–%
–%
Final outcome (% maximum)
96.58%
96.58%
Maximum opportunity for 2024 (% salary)
200.00%
200.00%
% salary
193.16%
193.16%
£ amount
£1,495,058
£898,194
In addition, the Executive Directors’ DFSS bonus is subject to a further risk adjustment (downwards only) to take account of risk
events considered to have a material customer, regulatory or financial impact.
During the year, and in addition to the above, the Committee took into account relevant trigger events as part of the established risk
adjustment process, and determined it was not appropriate to apply a downwards adjustment on that basis
The Annual Bonus for the Executive Directors is subject to a 40% deferral into Admiral Group plc shares for a period of three years.
This means that the £598,023 of Milena’s bonus and £359,278 of Geraint’s bonus will be deferred into an equivalent value of
Admiral Group plc shares, which will vest three years after the award date.
Admiral Group plc Annual Report and Accounts 2024
168
Annual report on remuneration
continued
Scheme interests granted in 2024 (audited)
DFSS
On 27 September 2024, Milena Mondini de Focatiis was granted an award of 95,000 shares and Geraint Jones was granted
an award of 55,000 shares under the DFSS. Using the closing share price on the date of the grant of £28.00, this is the equivalent
to £2,660,000 or 344% of Milena’s base salary and £1,540,000 or 331% of Geraint’s base salary, respectively.
The three-year period over which performance will be measured is 1 January 2024 to 31 December 2026. The award is eligible
to vest on the third anniversary of the date of grant i.e., September 2027, subject to performance and to continued employment.
Vested awards will be subject to an additional two-year post-vest holding period.
The award will vest on EPS growth, TSR vs. FTSE 100 and insurance peer comparator group, ROE and a scorecard of strategic,
customer and other non-financial measures, inclusive of customer outcomes, ESG and strategic measures. There will also be the
potential for downwards adjustment subject to an assessment of risk events considered to have a material customer, regulatory
or financial impact over the course of the performance period. The performance conditions are summarised in the table below:
Performance range
Award element
Performance measure
Decription
Weighting
Threshold
Stretch
Maximum
Vesting
Financial
Performance
Earnings per share (EPS)
EPS growth over
the performance
period
25.00%
—%
35.00%
45.00%
25% for reaching
Threshold, 75% for
achieving Stretch and
100% for Maximum
performance.
Return on Equity (ROE)
ROE over the
performance
period
25.00%
30.00%
n/a
45.00%
25% for reaching
Threshold, and 100%
for Maximum
performance.
Total Shareholder
Return (TSR)
TSR ranked on
a relative basis
vs FTSE 100 and
insurance peer
comparator
group
25.00%
Median
n/a
Top
Quartile
25% for reaching
Threshold and 100%
for Maximum
performance.
Non-financial
Performance
Strategy
Strategic
Assessment
The Board’s
assessment of
progress
towards
strategic aims.
8.25%
N/A 
N/A 
n/a
Vesting of between
0% and 100% based
on the outcome of the
Board’s assessment.
Customer
Group NPS
The outcome of
the Group NPS,
weighted by
entity customer
headcount.
8.50%
35
48
55
25% for reaching
Threshold, 75% for
achieving Stretch and
100% for Maximum
performance.
ESG
Diversity
The proportion
of women
in senior
management
roles.
2.06%
30.00%
36.00%
40.00%
25% for reaching
Threshold, 75% for
achieving Stretch and
100% for Maximum
performance.
Inclusion
The Group’s
Inclusion scores
from the GPTW
Survey, scored
on a basis
relative to the
benchmark.
2.06%
>10%
below
benchmark
n/a
At
benchmark
25% for reaching
Threshold, 40% for
>6% below
benchmark and 100%
for Maximum
performance.
Carbon
emissions
Alignment to the
SBTi 2030 and
2040 scope 1
& 2 targets for
pathway to net
zero, halving our
GHG impact in
the next 5 years.
4.13%
3,280
tCO2e
3,051
tCO2e
2,746
tCO2e
25% for reaching
Threshold, 75% for
achieving Stretch and
100% for Maximum
performance.
DFSS awards are subject to malus and clawback provisions, which are set out in the Group’s Malus and Clawback Framework,
as outlined in page 166.
Admiral Group plc Annual Report and Accounts 2024
169
Annual report on remuneration
continued
SIP
In March 2024, Milena Mondini de Focatiis and Geraint Jones were granted awards under the SIP of 69 shares with a face value
of £1,775.37, which will mature on 11 March 2027, subject to continued employment.
In August 2024 Milena Mondini de Focatiis and Geraint Jones were granted awards under the SIP of 62 shares with a face value
of £1,818.46, which will mature on 20 August 2027, subject to continued employment.
Exit payments (audited)
No exit payments were made to an Executive Director during the year.
Payments to Past Directors (audited)
Following stepping down from the role of CEO on 31 December 2020, David Stevens has continued as an adviser to the Group
in a part-time capacity. During 2024, he earned a salary of £53,252.
He also sat as a Non-Executive Director on the Board of Admiral Financial Services Limited until 27 September 2024, for which
he received no fee.
Implementation of Remuneration Policy for 2025
Executive Directors
Salary, pension and benefits
Salaries for the Executive Directors in 2025 have been determined in line with the proposed Remuneration Policy. Milena Mondini
de Focatiis’ salary was increased by 3.00% to £797,220 and Geraint Jones’ salary was increased by 6.45% to £495,000, both
effective 1 January 2025.
Consideration was given to ensure these increases were fair relative to the proposed increases for employees across the Group
for 2025. The average pay review in 2025 is expected to be in the region of 3.00%.
The Remuneration Committee notes the increase for Geraint Jones is above that which is expected for most colleagues.
This increase begins to address the competitiveness of his base pay relative to the lower quartile of the market, as highlighted in
last year’s Annual Report. The Remuneration Committee intends to increase his salary to the lower quartile of the market by the end
of this policy period, by increments. The Remuneration Committee will review his increase each year to ensure it is appropriate and
moves his positioning as intended. This means that the increase for Geraint may be ahead of those generally given to colleagues
for the duration of the policy.
The Executive Directors will continue to participate in the Group Personal Pension Plan on a consistent basis with other employees,
where employee contributions are matched up to a maximum 6% of base salary. The Company will offer individuals a choice
between pension contributions and cash in lieu. Both Executive Directors will continue to receive benefits in line with the Policy.
DFSS
The Committee intends to make awards under the DFSS to Milena Mondini de Focatiis and Geraint Jones in September 2025
of 100,000 and 57,500 shares, respectively. The Committee will confirm the size for each of the 2025 DFSS awards closer to the
award date. In determining whether the award size should differ from the above number of shares, the Committee will consider
any large share price change over the prior year, and in particular whether this is due to external factors out of management control.
The actual 2025 DFSS awards will be disclosed in the 2025 Annual Report on Remuneration.
It is currently anticipated that the vesting of 2025 DFSS awards for Milena Mondini de Focatiis and Geraint Jones will continue
to be assessed across the three-year performance period using an 75% performance weighting on EPS, TSR (measured on
a relative basis, equally split between the FTSE 100 and a subset of insurance peers with substantial general insurance segments)
and ROE, and a 25% weighting on a scorecard of strategic, customer and other non-financial metrics. The measures and
performance ranges for the 2025 DFSS are set out in the following table.
Admiral Group plc Annual Report and Accounts 2024
170
Annual report on remuneration
continued
Performance range
Award element
Performance measure
Decription
Weighting
Threshold
Stretch
Maximum
Vesting
Financial
Performance
Earnings per share (EPS)
EPS growth over
the performance
period
25.00%
—%
30.00%
45.00%
25% for reaching
Threshold, 70% for
achieving Stretch and
100% for Maximum
performance.
Return on Equity (ROE)
ROE over the
performance
period
25.00%
30.00%
n/a
45.00%
25% for reaching
Threshold, and 100%
for Maximum
performance.
Total Shareholder
Return (TSR)
TSR ranked on a
relative basis vs
FTSE 100 and
insurance peer
comparator
group
25.00%
Median
n/a
Top
Quartile
25% for reaching
Threshold and 100%
for Maximum
performance.
Non-financial
Performance
Strategy
Strategic
Assessment
The Board’s
assessment
of progress
towards
strategic aims.
8.25%
n/a
n/a
n/a
Vesting of between
0% and 100% based
on the outcome of the
Board’s assessment.
Customer
Group NPS
The outcome of
the Group NPS,
weighted by
entity customer
headcount.
8.50%
35
48
55
25% for reaching
Threshold, 75% for
achieving Stretch and
100% for Maximum
performance.
ESG
Diversity
The proportion
of women in
senior
management
roles.
2.06%
30%
36%
40%
25% for reaching
Threshold, 75% for
achieving Stretch and
100% for Maximum
performance.
Inclusion
The Group’s
Inclusion scores
from the GPTW
Survey, scored
on a basis
relative to the
benchmark.
2.06%
>10%
below
benchmark
N/A
At
benchmark
25% for reaching
Threshold, 40% for
>6% below
benchmark and 100%
for Maximum
performance.
Carbon
emissions
Alignment to the
SBTi 2030 and
2040 scope 1
& 2 targets for
pathway to net
zero, halving our
GHG impact in
the next 5 years.
4.13%
3,070
tCO2e
2,791
tCO2e
2,512
tCO2e
25% for reaching
Threshold, 75% for
achieving Stretch and
100% for Maximum
performance.
The Committee intends that this set of financial measures applies to the DFSS awards made throughout this policy period,
which is to say the awards for 2024, 2025 and 2026.
It has been an aim of the Committee to include carbon emissions targets as part of the NFM scorecard to support the delivery
of the Group’s net zero targets. For the 2025 scheme, the non-financial measures will continue to comprise, Group NPS, Diversity,
Inclusion and carbon emissions reduction targets.
There will be the potential for downwards adjustment subject to an assessment of risk events considered to have a material
customer, regulatory or financial impact over the course of the performance period.
Admiral Group plc Annual Report and Accounts 2024
171
Annual report on remuneration
continued
Annual Bonus
Under the 2024 Policy, Milena Mondini de Focatiis and Geraint Jones will be eligible to participate in an Annual Bonus in 2025.
The bonus opportunity will be 0-200% of base pay for the Executive Directors, with an on-target award of 100%. Performance
will be based on the following measures and weightings:
Measure
Weighting
Financial Measures (75% of total)
Profit
67.5%
Turnover
7.5%
Non-financial Measures (25% of total)
Trust Index (people)
8.34%
Customer Feedback (NPS)
8.33%
Customer Outcomes (CRMI)
8.33%
Total
100.00%
The profit measure will be profit before tax. Turnover is the total value of the revenue generated by the Group. Both Profit and
Turnover values are reported in the Annual Report, and the values used to determine Annual Bonus outcomes will be consistent
with the reported figures.
Customer outcomes and customer feedback comprise customer measures and associated outcomes from the Group entities for
the performance year, in which outcomes are scored relative to entity-set performance ranges, with mechanical outcomes based
on performance for each month. The Trust Index is the average of employee responses to the core survey questions in the Great
Place To Work (GPTW) survey. This is scored relative to the benchmark of the world’s 25 best workplaces provided by GPTW.
The Remuneration Committee will follow a two-phase methodology for determining Executive Director Annual Bonus outcomes;
the formulaic outcome against the measures detailed above followed by a holistic review of the extent to which that formulaic
outcome is reflective of the overall performance of the Group.
Phase 1: Formulaic review. At the end of the performance period, the final performance against each measure is assessed
on a standalone basis. Data for the measures is taken from the Group’s financial reports which are reviewed by the Audit Committee
and approved by the Board.
Phase 2: Holistic review. The Committee will then consider the overall fairness of the formulaic Group scorecard outcome in the
context of the business performance in the prevailing market conditions, which can be assessed against a non-exhaustive basket
of measures such as:
• Executive Director personal performance
• Dividend and/or share price performance
• Impact on strategic delivery
• Risk appetite adherence
• Loss and/or combined ratio outcomes
• Financial stability of the Group
• Wider ESG performance
• Inclusion and diversity measures
• Delivery of technology milestones.
The Committee will carefully determine a final bonus outcome for each Executive Director that is fair and appropriate for the year’s
performance and is in the best interests of shareholders.
A detailed summary of the factors used to determine bonus outcomes for the Executive Directors will be disclosed in the Director’s
Remuneration Report (DRR) following the performance period.
In line with the position set out in the Policy, 40% of any bonus earned will be subject to deferral into Admiral Group Shares
for a period of three years.
There will be the potential for downwards adjustment subject to an assessment of risk events considered to have a material
customer, regulatory or financial impact over the course of the performance period.
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172
Annual report on remuneration
continued
Chair and Non-Executive Directors
Fees for the Board Chair and other Non-Executive Directors were reviewed in January 2025 having previously been last reviewed
in 2024. Increases were made, effective 1 January 2025.
2025 fee (p.a.)
2024 fee (p.a.)
Chair 1
£398,000
£386,250
NED base fee
£76,000
£73,500
Additional fee for chairing 2:
- Audit Committee
£27,000
£26,250
- Group Risk Committee
£46,500
£45,150
- Remuneration Committee
£27,000
£26,250
- Nomination and Governance Committee
£11,000
£10,500
Additional fee for membership of:
- Audit Committee
£16,500
£15,750
- Group Risk Committee
£16,500
£15,750
- Remuneration Committee
£13,000
£12,600
- Nomination and Governance Committee
£9,000
£8,400
Additional fee for being Senior Independent Director
£18,500
£17,850
1The Board Chair does not receive any additional fees (e.g., for committee membership) as these are included in the overall Chair fee.
2The fee payable for 2025 for Chairing the Group Risk Committee continues to include an additional fee of in recognition of the increased time commitment required due to the Admiral
Internal Model process. It comprises a base fee of £26,250 and an additional fee of £18,900.
CEO pay ratio
The table below sets out the pay ratios for the CEO for the periods ended 31 December 2023 and 31 December 2024.
Year
Method
Lower quartile
Median
Upper quartile
2024
Option A
138:1
121:1
82:1
2023
75:1
64:1
43:1
2022
80:1
69:1
45:1
2021
95:1
81:1
50:1
2020
17:1
15:1
10:1
The lower quartile, median and upper quartile employees were determined using calculation methodology A which involved
calculating the actual full-time equivalent remuneration for all UK employees for 2024. From this analysis, three employees were
then identified as representing the 25th, 50th and 75th percentile of the UK employee population. Admiral chose this method as it is
the preferred approach of the Government and investor bodies and Admiral had the systems in place to apply this method. It is also
consistent with the approach used to calculate the ratios for 2018 to 2023.
The Committee has considered the pay data for the three employees identified and believes that it fairly reflects pay at the relevant
quartiles amongst our UK workforce. The three individuals identified were full time employees during the year. None received
an exceptional incentive award which would otherwise inflate their pay figures. No adjustments or assumptions were made
by the Committee with the total remuneration of these employees calculated in accordance with the methodology used to calculate
the single figure of the CEO. It should be noted that the lower quartile employee was in receipt of DFSS bonus and/or DFSS vesting
in the year.
The employee pay levels for 2024 (as at 31 December 2024) are detailed below:
CEO
P25 (lower quartile)
P50 (median)
P75 (upper quartile)
Salary
£774,000
£23,722
£30,600
£40,468
Total Remuneration1
£4,118,924
£29,804
£33,925
£50,147
1The single figure of remuneration for the CEO includes actual salary and pension costs paid during 2024, in line with The Companies (Miscellaneous Reporting) regulations 2018.
For other employees, salary and pension costs are included on an FTE basis, in line with the legislation. While the basis of calculation differs between CEO and other employees,
management considers this a fair comparison of remuneration.
Admiral Group plc Annual Report and Accounts 2024
173
Annual report on remuneration
continued
The increase in CEO pay ratio was anticipated to be material this year as the changes in the 2024 Directors’ Remuneration Policy
were intended to address competitiveness with the market, with significantly higher variable pay outcomes for outperformance.
It has been a very strong year for variable pay outcomes at 96.58% of maximum for the ABP and 76.73% of maximum for the DFSS,
both of which are reflective of excellent financial performance.
A significant proportion of the Milena Mondini de Focatiis’ remuneration is dependent on the Company’s performance and therefore
it may vary more materially, resulting in movements in the CEO pay ratio from year to year.
Relative importance of spend on pay
The table below shows the percentage change in dividends and total employee remuneration spend from the financial year ended
31 December 2023 to the financial year ended 31 December 2024.
2024
£m
2023
£m
% change
Distribution to shareholders
580
309
88%
Employee remuneration
537
501
7%
The Directors are proposing a final dividend for the year ended 31 December 2024 of 121 pence per share bringing the total
dividend for 2024 to 192 pence per share (2023: 103 pence per share).
Pay for performance
The following graph sets out a comparison of Total Shareholder Return (TSR) for Admiral Group plc shares with that of the FTSE
100 and FTSE 350 indices, of which the Company is a constituent, over the ten-year period to 31 December 2024. The Directors
consider these to be the most appropriate indices against which the Company should be compared. TSR is defined as the
percentage change over the period, assuming reinvestment of income.
10 year TSR performance vs. FTSE 100 and FTSE 350 indices
Key
Admiral
FTSE 100
FTSE 350
9345848836322
Admiral Group plc Annual Report and Accounts 2024
174
Annual report on remuneration
continued
CEO
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Incumbent
Henry
Engelhardt
Henry
Engelhardt1
David
Stevens2
David
Stevens2
David
Stevens
David
Stevens
David
Stevens
Milena
Mondini de
Focatiis4
Milena
Mondini de
Focatiis
Milena
Mondini de
Focatiis
Milena
Mondini de
Focatiis
CEO single
figure of
remuneration
£397,688
£148,776
£246,023
£395,019
£403,662
£413,724
£421,285
£2,082,1913
£2,275,511
£2,159,0934
£4,118,924
DFSS vesting
outcome
(% of maximum
)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
98.6%
59.2%
43.8%
76.73%5
Annual Bonus
outcome
(% of maximum
)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
96.58%6
CFO
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Incumbent
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
CFO single
figure of
remuneration
£539,704
£599,139
£1,184,445
£1,461,813
£1,773,303
£2,329,513
£1,737,805
£1,333,709
£1,270,3284
2,446,139
DFSS vesting
outcome
(% of maximum)
69.0%
50% and 0%
74.2%
87.6%
88.8%
98.5%
93.1%
59.2%
43.7%
76.73%5
Annual Bonus
outcome
(% of maximum)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
96.58%6
1Henry Engelhardt stepped down from the Board on 13 May 2016. His 2016 remuneration includes salary and benefits for his service as CEO. 
2David Stevens was appointed as the CEO on 13 May 2016. His 2016 remuneration includes salary, pension and benefits for his service as CEO.
3Milena Mondini de Focatiis was appointed as the CEO on 1 January 2021. Her 2021 remuneration includes salary, pension and benefits for her service as CEO.
4This figure has been trued up since the 2023 report for the value of the 2021 DFSS based on the actual share price on vest of £28.10.
576.73% of Milena Mondini De Focatiis’ and Geraint Jones’ 2022 DFSS award will vest in September 2025, subject to their continued employment on the vesting date.
6The 2024 Annual Bonus outcomes for Milena Mondini De Focatiis and Geraint Jones are 96.58% of maximum.
There were no annual bonus outcomes to report in the table for the period 2015 to 2023 as the Admiral DFSS bonus is not
structured as a traditional annual bonus scheme and consequently an outcome (as a percentage of maximum) was deemed
meaningless. The 2024 Annual Bonus is a more traditional scheme with an outcome which can meaningfully be described
as a percentage of maximum, and will be included in following years.
Admiral Group plc Annual Report and Accounts 2024
175
Annual report on remuneration
continued
Annual change of each Director’s pay compared to the annual change in average employee pay
The following table summarises the annual percentage change of each Director’s remuneration compared to the annual percentage
change of the average remuneration of the Company’s employees, calculated on a full-time equivalent basis.
2024 (% change)
Financial year-ended 31 December 2024
Base salary/
fees
Taxable benefits
ABP / DFSS cash
bonus
Executive Directors
Milena Mondini de Focatiis
4.97%
3.24%
405.06%
Geraint Jones
7.27%
3.24%
420.16%
Non-Executive Directors
Mike Rogers
43.07%
130.66%
n/a
Evelyn Bourke
(2.54%)
(54.72%)
n/a
Karen Green
15.26%
(43.21%)
n/a
Jayaprakasa Rangaswami
3.83%
108.54%
n/a
Justine Roberts
5.95%
(37.93%)
n/a
Andrew Crossley
(1.85%)
(4.04%)
n/a
Michael Brierley
5.16%
(22.53%)
n/a
Bill Roberts
6.30%
4.80%
n/a
Fiona Muldoon
360.67%
-
n/a
Percentage change in employees' remuneration
9.86%
33.04%
56.50%
The percentage change in employee base pay is a view across the whole Group and is inclusive of colleague internal movements
and promotions throughout 2024.
Fiona Muldoon’s fee increase percentage is reflective of a her appointment in October 2023 compared with a full year in 2024.
The percentage changes for the Non-Executive Director taxable benefits relate to expenses for travel, accommodation and
subsistence. These are generally modest in value, and small changes lead to comparatively large percentage increases.
For colleague taxable benefits, these are primarily driven by changes to individual private medical insurance; it is worth noting that
the median and mode changes for this data set are 3.24% in line with the Executive Director changes.
Dilution
In 2024 the Company changed the way the employee share schemes are funded, having previously used new issue shares to fund
the DFSS and SIP. Shares already assigned to the trust have been used to fund the schemes and then the Company will move
to a market purchase funding model (likely from 2026 onwards).
Interests held by Directors (audited)
The Company has adopted Executive Director shareholding guidelines whereby all Executive Directors are required to acquire and
retain a beneficial shareholding in the Company equal to at least 400% of base salary (excluding salary shares, where applicable),
which can be built up over a period of five years from the later of the introduction of the guidelines and the individual’s date of
appointment. Both Executive Directors meet the shareholding requirement.
Admiral Group plc Annual Report and Accounts 2024
176
Annual report on remuneration
continued
As at 31 December 2024, the Directors held the following interests:
Shares held
Beneficially
owned outright
Subject to
continued
employment
Subject to
perfomance
conditions
Shareholding
requirement (% of
2024 salary)
Current
shareholding (%
of 2024 salary)
Requirement
met?
Milena Mondini de Focatiis
129,155
69,057
185,000
400%
> 400%
Yes
Geraint Jones
148,498
40,283
107,500
400%
> 400%
Yes
Mike Rogers
8,813
Evelyn Bourke
7,459
Jayaprakasa Rangaswami
–
Justine Roberts
1,044
Andy Crossley
4,984
Michael Brierley
4,484
Karen Green
–
Bill Roberts
9,650
Fiona Muldoon
–
1Total includes SIP shares both matured and awarded.
2Total reflects shares from the 2022 DFSS award (performance test has been applied, and award is due to vest in September 2025).
3The final column in the above table relates to meeting the current Remuneration Policy requirement of 400% of salary, based on a share price of £26.44 at closing
on 31st December 2024.
4Milena Mondini de Focatiis has 5 years from her appointment as Executive Director (11 August 2020) to meet the guideline.
5There have been no changes in the Directors’ holdings in the share capital of the Company, as set out in the table above, between 31 December 2024 and the date of this Report.
There have been no changes to Directors’ shareholdings since 31 December 2024.
None of the Directors had an interest in the shares of any subsidiary undertaking of the Company or in any significant contracts
of the Group.
Admiral Group plc Annual Report and Accounts 2024
177
Annual report on remuneration
continued
Executive Directors’ interests in shares under the DFSS and SIP and salary share awards (audited) 
Type
At start
of year
Awarded
during year
Vested/
matured
during year
At end
of year
Price at
award2 (£)
Value at
award date
(£)
Value at
31 Dec 2024
or maturity1
(£)
Date of
Award
Final
vesting/
maturity
date
Milena Mondini de Focatiis
DFSS
90,000
–
39,380
–
£34.55
3,109,500
1,106,578
23/09/2021
23/09/2024
DFSS
90,000
–
–
90,000
£21.59
1,943,100
2,379,600
22/09/2022
22/09/2025
DFSS
90,000
–
–
90,000
£23.79
2,141,100
2,379,600
28/09/2023
28/09/2026
DFSS
–
95,000
–
95,000
£28.00
2,660,000
2,511,800
27/09/2024
27/09/2027
SIP
61
–
61
–
£29.44
1,796
1,667
12/03/2021
12/03/2024
SIP
50
–
50
–
£36.11
1,806
1,459
09/01/2021
01/09/2024
SIP
72
–
–
72
£24.81
1,786
1,904
03/11/2022
11/03/2025
SIP
81
–
–
81
£22.25
1,802
2,142
24/08/2022
24/08/2025
SIP
95
–
–
95
£18.82
1,787
2,512
13/03/2023
13/03/2026
SIP
77
–
–
77
£23.61
1,818
2,036
21/08/2023
21/08/2026
SIP
–
69
–
69
£25.73
1,775
1,824
03/11/2024
11/03/2027
SIP
–
62
–
62
£29.33
1,818
1,639
20/08/2024
20/08/2027
Geraint Jones
DFSS
52,500
–
22,956
–
£34.55
1,813,875
645,064
23/09/2021
23/09/2024
DFSS
52,500
–
–
52,500
£21.59
1,133,475
1,388,100
22/09/2022
22/09/2025
DFSS
52,500
–
–
52,500
£23.79
1,248,975
1,388,100
28/09/2023
28/09/2026
DFSS
–
55,000
–
55,000
£28.00
1,540,000
1,454,200
27/09/2024
27/09/2027
SIP
61
–
61
–
£29.44
1,796
1,667
03/12/2021
12/03/2024
SIP
50
–
50
–
£36.11
1,806
1,459
09/01/2021
01/09/2024
SIP
72
–
–
72
£24.81
1,786
1,904
03/11/2022
11/03/2025
SIP
81
–
–
81
£22.25
1,802
2,142
24/08/2022
24/08/2025
SIP
95
–
–
95
£18.82
1,787
2,512
13/03/2023
13/03/2026
SIP
77
–
–
77
£23.61
1,818
2,036
21/08/2023
21/08/2026
SIP
–
69
–
69
£25.73
1,775
1,824
03/11/2024
11/03/2027
SIP
–
62
–
62
£29.33
1,818
1,639
20/08/2024
20/08/2027
1The value at maturity relates only to shares vested.
2For SIP the price at award reflects the average closing share price over the five days prior to the award date.
The closing price of Admiral shares on 31 December 2024 was £26.44 per share.
Approved by the Board of Directors,
Karen Green
Chair of the Remuneration Committee
5 March 2025
Admiral Group plc Annual Report and Accounts 2024
178
Directors’ report
The Directors present their Annual Report and
audited Financial Statements for the year ended
31 December 2024.
Directors
Directors and their interests
The present Directors of the Company are shown on page 101
of this Report. All Directors who have held office during the
year ended 31 December 2024 are set out on page 101.
The interests of Directors and Officers and their connected
persons in the issued share capital of the Company are given
in the Remuneration Report on page 177.
Appointments of Directors
The Company’s Articles of Association (the Articles) give the
Directors power to appoint and replace Directors. Under the
Terms of Reference of the Group Nomination and Governance
Committee, any appointment must be recommended by the
Group Nomination and Governance Committee for approval
by the Board of Directors. The Articles provide that all Directors
will retire and offer themselves for re-election at each Annual
General Meeting, in accordance with the UK Corporate
Governance Code and the Company’s current practice.
Therefore, all Directors will be submitting themselves for either
election or re-election by shareholders at the forthcoming AGM.
Powers of the Company Directors
The Directors are responsible for managing the business of the
Company and may exercise all powers of the Company subject
to the provisions of relevant statutes, to any directions given
by special resolution and to the Company’s Memorandum and
Articles. The Articles, for example, contain specific provisions
and restrictions concerning the Company’s power to borrow
money. Powers relating to the issuing of new shares and
buyback of shares are also included in the Articles and such
authorities are renewed by shareholders at the Annual General
Meeting each year. At the 2025 Annual General Meeting
(AGM), shareholders will be asked to renew the Directors’
authority to allot new securities and buy back Company shares.
Further details will be contained in the Notice of 2025 AGM,
which will be available to shareholders alongside, or at a date
near to the publication of the Annual Report.
Directors’ indemnities and insurance
Directors and Officers insurance cover is in place for all
Directors to provide cover against certain acts or omissions on
behalf of the Company. A Deed Poll of Indemnity was executed
in October 2015, indemnifying each of the Directors and
Company Secretary, in relation to certain losses and liabilities
that they might incur in the course of acting as Directors
of the Company. The Deed Poll of Indemnity is categorised
as qualifying third party provisions as defined by Section 234
of the Companies Act 2006 and remains in force for all past
and present Directors of the Company.
The Board is of the view that it is in the best interests of the
Group to attract and retain the services of the most able and
experienced Directors by offering competitive terms of
engagement, including the granting of such indemnities.
Neither the Deed Poll of Indemnity nor insurance cover would
provide any coverage in the event that a Director is proved
to have acted fraudulently or dishonestly.
Share capital, AGM and related matters
Share capital
At 31 December 2024, the Company’s issued share capital
comprised a single class of shares referred to as ordinary
shares. Details of the share capital and shares issued during
the year can be found in note 12d. The rights and obligations
attached to the Company’s ordinary shares are set out in the
Articles of Association of the Company, copies of which can
be obtained from Companies House.
Share class rights
If a poll is called at a general meeting, every member present
in person or by proxy and entitled to vote shall have one vote
for every ordinary share held. The notice of the general
meeting specifies deadlines for exercising voting rights either
by proxy notice or present in person or by proxy in relation to
resolutions to be passed at general meeting. All proxy votes are
counted and the numbers for, against or withheld in relation to
each resolution are announced at the Annual General Meeting
and published on the Company’s website after the meeting.
There are no people who hold shares carrying special rights
with regard to control of the Company.
Restrictions on the transfer of securities
or voting rights
There are no restrictions on the transfer of ordinary shares
or voting rights in the Company other than:
• Certain restrictions may from time to time be imposed
by laws and regulations (for example, insider trading laws)
• Pursuant to the Listing Rules of the FCA whereby certain
employees and Directors of the Company require the
approval of the Company to deal in the Company’s securities
• Restrictions under the Company’s employee share incentive
plans, where the shares are subject to the plan rules.
The Company is not aware of any agreements between
holders of securities that may result in restrictions on the
transfer of securities or voting rights.
Shares held in Employee Benefit Trust (EBT)
The EBT does not use its voting rights in respect of the shares
it holds in the EBT at general meetings, however, it may choose
to do so if recommended by the Company via a letter of
wishes. If any offer is made to shareholders to acquire their
shares, the trustee will not be obliged to accept or reject the
offer in respect of any shares which are at that time subject
to subsisting awards, but will have regard to the interests of the
award holders and will have power to consult them to obtain
their views on the offer. Subject to the above, the trustee may
take action with respect to any offer it thinks fair. The trustee
has waived its right to dividends on the shares held in the trust.
Further information on the rights attaching to shares under the
employee share schemes are provided in the Remuneration
Report on page 166.
Admiral Group plc Annual Report and Accounts 2024
179
Directors’ Report
continued
Authority to purchase own shares
At the Company’s 2024 AGM, shareholders approved an
authority for the Company to buy back up to 15,315,233 ordinary
shares. This authority is due to expire on 30 June 2025,
or, if earlier, at the conclusion of the next AGM of the Company.
The Company has not purchased any of its own shares during
the period and the Directors intend to seek to renew this power
at the next AGM.
Major shareholders
Other than as stated below, as far as the Company is aware,
there are no persons with significant direct or indirect holdings
in the Company. Information provided to the Company
pursuant to Rule 5 of the FCA’s Disclosure and Transparency
Rules (DTRs) is published on a Regulatory Information Service
and on the Company’s website.
The Company received notifications in accordance with the
FCA’s DTRs of the following notifiable interests in the voting
rights in the Company’s issued share capital:
As at 31 December 2024
Shareholder
Number of
shares
% voting rights
Mawer Investment
Management Ltd.
21,727,558
7.2%
Henry Engelhardt & Diane
Briere de I’Isle
20,277,027
6.7%
BlackRock Inc.
17,849,752
5.8%
Moondance Foundation
15,400,000
5.1%
Rothschild and Co Wealth
Management UK Limited
15,321,078
5.0%
Vanguard Group Holdings
12,560,052
4.1%
FMR LLC
11,711,392
3.9%
David & Heather Stevens
8,422,950
2.8%
Münchener
Rückversicherungs-
Gesellschaft AG
5,297,781
1.7%
The percentage of voting rights detailed above were calculated
at the time the relevant disclosures were made in accordance
with the DTRs. The DTRs require notification when the
percentage voting rights (through shares and financial
instruments) held by a shareholder reaches, exceeds or falls
below an applicable threshold. The information provided below
was correct at the date of notification, however, the date the
notification was received may not have been within the current
financial year. It should be noted that these holdings are likely
to have changed since the Company was notified. However,
notification of any change is not required until the next
notifiable threshold is crossed.
There were no notifications received by the Company
in accordance with the FCA’s DTRs in the period from
31 December 2024 to 5 March 2025.
Group results and dividends
The profit for the year, after tax but before dividends, amounted
to £662.9 million (2023: £337.2 million). The Directors declared
and paid dividends of £369.8 million during 2024 (2023: £307.1
million). Refer to note 12b for further details.
The Directors have proposed a final dividend of £366.6 million
(121.0 pence per share). Subject to shareholders’ approval at
the 2024 Annual General Meeting (AGM), the final dividend will
be paid on 13 June 2025 to shareholders on the register at the
close of business on 16 May 2025.
Further information on the Group’s dividend policy is located
on page 212.
Articles of Association
The Articles may only be amended by special resolution of the
shareholders.
Annual General Meeting (AGM)
It is proposed that the next AGM be held at Tŷ Admiral, David
Street, Cardiff CF10 2EH on Friday 9 May 2025, notice of which
will be available to shareholders alongside, or at a date near
to the publication of the Annual Report
Change of control
There are a number of agreements that alter or terminate upon
a change of control of the Company following a takeover bid,
such as commercial contracts (entered into in the normal
course of business). None are considered to be significant in
terms of their impact on the business of the Group as a whole.
There are no agreements between the Company and its
Directors or employees providing for compensation for loss of
office or employment (whether through resignation, purported
redundancy or otherwise) that occur because of a takeover bid.
Significant contracts of material interest
to shareholders
The Group considers its co-insurance and reinsurance
contracts to be significant and of material interest to
shareholders. A number of the Group’s contractual
arrangements with reinsurers include features that, in certain
scenarios, allow for reinsurers to recover losses incurred
to date. The overall impact of such scenarios would not lead
to an overall net economic outflow from the Group. No other
contractual arrangements are considered to be significant
to the running of the Group’s business.
Political donations
No political donations were made during the year.
Admiral Group plc Annual Report and Accounts 2024
180
Directors’ Report
continued
Going concern and viability statement
In accordance with the UK Corporate Governance Code, the
Board must confirm that it considers the going concern basis
of accounting appropriate. In considering this requirement, the
Directors have taken into account the factors outlined in note 1
to the financial statements on page 198. The Directors have
concluded that there is a reasonable expectation that the
Group has adequate resources to continue in operation for the
foreseeable future, a period of not less than 12 months from
the date of this report, and that it is therefore appropriate to
adopt the going concern basis in preparing the consolidated
financial statements.
In accordance with the UK Corporate Governance Code, the
Directors have assessed the viability of the Group. The Viability
Statement, which supports the going concern basis above,
is included in the Strategic Report on page 96.
Reporting, accountability and audit
UK Corporate Governance Code
Admiral is subject to the UK Corporate Governance Code
(the Code), published by the Financial Reporting Council (FRC)
in July 2018 and available on their website, www.frc.org.uk.
The Company’s Annual Report and Accounts, taken as a whole,
addresses the requirements of the 2018 Code.
The Code was applicable for the Group during the year under
review, and the Group has applied the principles and fully
complied with the provisions of the Code, as set out in the
Corporate Governance Report on page 107.
Admiral has reviewed the changes to the revised Code which
the FRC published on 22 January 2024, effective for companies
with financial reporting periods beginning on or after 1 January
2025. Admiral intends to be fully compliant with the revised
Code, which will largely apply from financial years starting on or
after 1 January 2025, and will disclose the measures introduced
to ensure compliance with the new Code in the 2025 Annual
Report and Accounts to be published in 2026.
The Directors confirm that the Annual Report and Accounts,
taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders
to assess the Company’s position and performance, business
model and strategy.
The Board is ultimately responsible for the Group’s system
of risk management and internal control and, through the Audit
Committee, has reviewed the effectiveness of the Group’s
internal control and risk management arrangements relating
to the financial reporting process and the principal risks facing
the business. The Board is satisfied that the Group’s internal
control and risk management framework is prudent and
effective and that, through the Audit Committee and Group
Risk Committee, risk can be assessed, managed and assurance
given that all material controls are reviewed and monitored.
Information on the composition and operation of the Board
and its Committees is located in the following sections:
• Corporate Governance Report on page 98 in respect
of the Board
• Nomination and Governance Committee Report on page 125
• Audit Committee Report on page 139
• Risk Committee Report on page 145
• Remuneration Committee Report on page 149.
The Group’s gender diversity information for the financial year,
together with an explanation of the policies related to diversity,
are set out in the Strategic Report on page 12 and in the
Nomination and Governance Committee Report on page 125.
Directors’ responsibilities
The Directors are responsible for preparing the Annual Report
and the Group and Parent Company financial statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and
Parent Company financial statements for each financial year.
Under that law they are required to prepare the Group Financial
Statements in accordance with United Kingdom adopted
international accounting standards and applicable law and have
elected to prepare the parent Company financial statements
in accordance with UK accounting standards and applicable
law, including FRS 101 Reduced Disclosure Framework.
Under Company law, the Directors must not approve the
financial statements unless they are satisfied that they give a
true and fair view of the state of affairs of the Group and Parent
Company and of their profit or loss for that period. In preparing
each of the Group and Parent Company financial statements,
the Directors are required to:
• Select suitable accounting policies and then apply
them consistently
• Make judgements and accounting estimates that are
reasonable and prudent
• For the Group financial statements, state whether they
have been prepared in accordance with IFRS as adopted
by the UK
• For the Parent Company financial statements, state whether
applicable UK accounting standards, including FRS 101
Reduced Disclosure Framework, have been followed, subject
to any material departures disclosed and explained in the
Parent Company financial statements
• Prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Parent
Company’s transactions and disclose with reasonable accuracy
at any time the financial position of the Parent Company and
enable them to ensure that its financial statements comply with
the Companies Act 2006. They have general responsibility for
taking such steps as are reasonably open to them to safeguard
the assets of the Group and to prevent and detect fraud and
other irregularities.
Under applicable law and regulations, the Directors are also
responsible for preparing a Strategic Report, Directors’ Report,
Directors’ Remuneration Report and Corporate Governance
Statement that complies with that law and those regulations.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company’s website.
Legislation in the UK governing the preparation and
dissemination of financial statements may differ from legislation
in other jurisdictions.
Admiral Group plc Annual Report and Accounts 2024
181
Directors’ Report
continued
Responsibility statement
The Directors confirm that to the best of their knowledge:
• The financial statements, prepared in accordance with
the applicable set of accounting standards, give a true and
fair view of the assets, liabilities, financial position and profit
or loss of the Company and the undertakings included
in the consolidation taken as a whole; and
• The Directors’ Report and the Strategic Report include a fair
review of the development and performance of the business
and the position of the Company, and the undertakings
included in the consolidation taken as a whole, together with
a description of the principal risks and uncertainties.
Disclosure of information to auditor
The Directors who held office at the date of approval of this
Directors’ Report confirm that, so far as they are each aware,
there is no relevant audit information of which the Company’s
auditor is unaware; and each Director has taken all the steps
that they ought to have taken as a Director to make themselves
aware of any relevant audit information and to establish that
the Company’s auditor is aware of that information.
Auditor
Following the Board’s approval of the Audit Committee’s
recommendation to reappoint the Company’s auditor,
Deloitte LLP has indicated willingness to continue in office
and resolutions to reappoint it and to authorise the Directors
to fix its remuneration will be proposed at the AGM.
Index of disclosures
Information included in the Strategic Report: As permitted
by legislation, some matters required to be included in the
Directors’ Report have instead been included in the Strategic
Report as the Board considers them to be of strategic
importance. These are identified with an asterix (*) in the
table below.1
Information/disclosure
Page No.
Agreement for loss of office or employment on takeover
Allotment of shares for cash pursuant to Group employee share schemes*
Amendment of the Articles of Association
Annual General Meeting (AGM)
Appointment and replacement of Directors
Attendance at Board and Board Committee Meetings
Audit Committee Report
Business review
Business model
Branches
Changes in borrowings
Charitable donations
Climate-related disclosures, including GHG emissions and energy consumption
Corporate Governance Report
Culture
Details of long-term incentive schemes*
Directors’ insurance and indemnities
Directors’ inductions and training
Directors in office during the year
Directors’ interests in shares
Directors’ Responsibility Statement
Directors’ service contracts
Disclosure of information to the Auditor
Diversity disclosures
Dividends
Engagement with suppliers, customers and others in a business relationship with the Company*
Employee engagement
Employees with disabilities
Fair, balanced and understandable
Financial risk management
Financial instruments
Future developments of the business
Admiral Group plc Annual Report and Accounts 2024
182
Directors’ Report
continued
Information/disclosure
Page No.
Going Concern Statement
Group Risk Committee
Independent Auditors’ Report
Interest capitalised by the Group*
Nomination and Governance Committee Report
Non-Financial and Sustainability Information Statement
Political donations and expenditure
Post-balance sheet events
Powers for the Company to issue or buy back its shares
Powers of Directors
Principal risks and uncertainties
Related undertakings
Reappointment of Auditor
Remuneration Committee Report
Research and development
Rights attaching to shares
Risk management and internal control
S172 Statement
Share capital
Shareholder engagement
Shareholder waiver of dividends and future dividends*
Significant agreements impacted by a change of control
Significant related party agreements*
Significant shareholders
Statement of compliance with the UK Corporate Governance Code
Strategic Report
Sustainability Report
Viability Statement
Voting rights
1Information required to be disclosed in the Annual Report under Listing Rule 6.6.1 is marked with an asterisk (*).
Approved by the Board of Directors and signed on its behalf by
Dan Caunt signature.png
Geraint Jones signature.png
Dan CauntGeraint Jones
Company SecretaryChief Financial Officer
5 March 20255 March 2025
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Financial
Statements
In this section
Independent Auditor's Report
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Cashflow Statement
Consolidated Statement of Changes in Equity
Notes to the consolidated financial statements
Parent Company Income Statement
Notes to the Parent Company Financial Statements
Glossary
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Report on the audit of the financial statements
1. Opinion
In our opinion:
• the financial statements of Admiral Group plc (the ‘Parent Company’) and its subsidiaries (the ‘Group’) give a true and fair view
of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2024 and of the Group’s profit for the year
then ended;
• the Group financial statements have been properly prepared in accordance with United Kingdom adopted international
accounting standards;
• the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework”; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
• the Consolidated and Parent Company Income Statements;
• the Consolidated and Parent Company Statements of Comprehensive Income;
• the Consolidated and Parent Company Statements of Financial Position;
• the Consolidated Cashflow Statement;
• the Consolidated and Parent Company Statements of Changes in Equity;
• the related notes 1 to 14 to the Group financial statements, excluding the capital adequacy disclosures in note 3.8 calculated
in accordance with the Solvency II regime which are marked as unaudited; and
• the related notes 1 to 14 to the Parent Company financial statements.
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and
United Kingdom adopted international accounting standards. The financial reporting framework that has been applied in the
preparation of the Parent Company financial statements is applicable law and United Kingdom Accounting Standards, including
FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial
statements section of our report.
We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied
to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
The non-audit services provided to the Group for the year are disclosed in note 9c to the financial statements.
We confirm that we have not provided any non-audit services prohibited by the FRC’s Ethical Standard to the Group or the Parent
Company with the exception of remuneration services provided in 2022 to an immaterial branch of an in-scope subsidiary entity,
which represented 0.2% of the Group’s assets. The branch itself was not in scope for the 2022 or 2024 Group audit. The services
were identified in 2024 and were provided by a separate team to the subsidiary’s audit team, limited to the sharing of data for non-
executive reward levels and Deloitte did not exercise any judgement or enact any changes to the remuneration policy. The services
provided did not impact the financial statements, internal controls over financial reporting nor any financial systems or systems with
control over financial information. In our opinion, based on the fees of £4,500 for the services and the size of the branch, the impact
of providing the services was immaterial and inconsequential, however this was a breach, albeit insignificant, of the Ethical
Standard. The safeguards that were applied included asking our quality control review to explicitly concur with the engagement
team’s assessment that the branch was immaterial and posed no risk of misstatement to the Group financial statements. Following
investigation, it was concluded in agreement with the Audit Committee that given the size of the services provided and their
potential impact, as well as the safeguards in place, the provision of these services did not impact upon our integrity, objectivity
and independence as auditor to the Group and the Parent Company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
.
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3. Summary of our audit approach
Key audit matters
The key audit matter that we identified in the current year was:
• Valuation of UK motor large bodily injury reserves within the gross liability for incurred claims.
Materiality
The materiality that we used for the Group financial statements was £41.9 million which was determined
on the basis of 5% of profit before tax (‘PBT’).
Scoping
We identified five reporting components which we determined should be subject to an audit of the
entire financial information in the current year. Specified audit procedures were completed in respect
of seven further components in response to specific audit risks.
The components within the scope of our audit of entire financial information and specified audit
procedures account for above 99% of the Group’s profit before tax, the Group’s revenue and the Group’s
net assets.
Significant changes in
our approach
Inflation levels in the current year have reduced from the levels experienced in the prior year, and whilst
the uncertainty regarding future inflation remains, the reduction in volatility reduces the level of
uncertainty in the current year. As a result, we no longer identify a separate key audit matter in relation
to Inflation assumptions applied to UK motor bodily injury claims within the liability for incurred claims .
Rather, this has been captured in the development assumptions in the valuation of UK motor large bodily
injury reserves within the liability for incurred claims key audit matter.
Initial adoption of IFRS 17 Insurance Contracts is no longer a key audit matter in the current year as this
is the second year of adoption.
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the Group’s and Parent Company’s ability to continue to adopt the going concern
basis of accounting included:
• We obtained an understanding of the relevant controls relating to the Board’s going concern assessment process;
• We inspected the Group ORSA (‘Own Risk and Solvency Assessment’) to support our understanding of the key risks faced
by the Group, its ability to continue as a going concern, and the longer-term viability of the Group;
• We evaluated the Board’s going concern assessment in light of the current macroeconomic uncertainties;
• We considered the available cash and cash equivalents balance at year-end and assessed how this is forecast to fluctuate over
a period of at least 12 months from the date of signing the financial statements in line with the Board’s forecast performance.
This analysis included assessing the amount of headroom in the forecasts considering cash and regulatory liquidity requirements;
• We assessed management’s stress testing and reverse stress testing over the projected profitability, solvency and liquidity
positions and the likelihood of the various scenarios that could adversely impact upon the Group’s liquidity and solvency
headroom;
• We obtained and inspected correspondence between the Group and its regulators, as well as reviewed the Group Risk
Committee meeting minutes, to identify any items of interest which could potentially indicate either non-compliance with
regulation or potential litigation or regulatory action held against the Group; and
• Assessing the appropriateness of the Going Concern disclosures included in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group's and Parent Company’s ability to continue as a going concern
for a period of at least twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered
it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections
of this report.
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5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due
to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy; the allocation
of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
5.1. Valuation of UK motor large bodily injury reserves within the gross liability for incurred claims
Key audit
matter
description
The Group’s gross liability for incurred claims totalled £3,673m as at 31 December 2024 (31 December 2023:
£3,452m). Judgements made in determining the valuation of the gross liability for incurred claims are by far the
most significant in terms of their impact on the Group’s financial position. Setting these claims reserves is an
inherently subjective exercise and small changes in underlying assumptions may have a material impact on the
overall result reported.
Specifically, our significant areas of focus are the Group’s selection of the incurred claims development
assumptions including inflation for large bodily injury claims arising in the UK motor insurance business. These
particular claims result in higher individual claim reserves and are more judgemental, in terms of the development
of the ultimate losses, due to the longer-term nature of the Group’s exposure (compared to property damage
claims). Therefore, we determine this as a key audit matter.
Refer to page 141 in the Audit Committee report where this is included as a significant issue and note 3 and note
5f in the financial statements which refer to this matter.
How the scope
of our audit
responded
to the key
audit matter
In responding to this matter, we have involved our actuarial specialists and performed the following procedures:
• We obtained an understanding of, and tested, the relevant controls governing the selection of the incurred
claims development assumptions for large bodily injury claims in the UK motor insurance business, as well
as the wider process supporting the valuation of the liability for incurred claims;
• We obtained and inspected the reports from management and assessed management’s incurred claims
development assumptions for UK motor insurance business;
• We benchmarked the assumptions against available industry data and considered the comparison in the
context of the risk profile of the Group’s portfolio and the year-on-year changes in these assumptions;
• We undertook a graphical analysis of incurred development patterns to assess and challenge the assumptions
considering the trends and patterns observed; and
• We obtained and inspected the external actuary’s reports and performed an assessment of the incurred claims
development assumptions, including evaluating how these compare to management’s selected assumptions,
to support our assessment of management’s incurred claims development assumptions for UK motor insurance
business.
Key
observations
Based on the procedures described above, we concluded that the valuation of UK motor large bodily injury
reserves within the gross liability for incurred claims is appropriate. 
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6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope
of our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group financial statements
Parent Company financial statements
Materiality
£41.9 million (2023: £22.1 million)
£6.2 million (2023: £4.4 million)
Basis for
determining
materiality
5% of profit before tax (2023: 5% of profit before tax).
3% of two-year average of net assets (2023: 3%
of two-year average of net assets) pre final dividend.
Rationale for the
benchmark applied
We consider profit before tax to be the critical
benchmark of the performance of the Group and
consider this benchmark to be suitable having
compared to other benchmarks. Our materiality
equates to 1% of insurance revenue and 3% of equity
(2023: 1% of insurance revenue and 2% of equity).
The Parent Company primarily exists as the holding
company which carries investments in Group
subsidiaries and is the issuer of listed securities.
We consider that net assets is the critical benchmark
for the Parent Company.
The measure uses a two-year average of net assets
pre final dividend which we consider appropriate
given the inherent volatility associated with the timing
of dividend payments.
PBT
Group materiality
2025_IAR_Materilaity.png
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial statements as a whole.
Group financial statements
Parent Company financial statements
Performance
materiality
70% (2023: 70%) of Group materiality
70% (2023: 70%) of Parent Company materiality
Basis and rationale
for determining
performance
materiality
In determining performance materiality, we considered the following factors:
• our risk assessment, including our assessment of the Group’s overall control environment and that we
consider it appropriate to rely on controls over a number of business processes; and
• our past experience of the audit, which has indicated a low number of uncorrected misstatements
identified in prior periods.
6.3. Error reporting threshold
We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £2.1m (2023: £1.1m),
as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit
Committee on disclosure matters that we identified when assessing the overall presentation of the financial statements.
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7. An overview of the scope of our audit
7.1. Identification and scoping of components
The nature of the Group is such that we have identified components primarily by legal entity.  We assessed the qualitative and
quantitative characteristics of each financial statement line item and considered the relative contribution of each component
to these line items in determining which components would be subject to an audit of the entire financial information, specified audit
procedures, and review at group level.
Five (2023: five) components of the Group have been subject to an audit of the entire financial information: Admiral Insurance
(Gibraltar) Limited, Admiral Insurance Company Limited, UK operations of EUI Limited, Admiral Europe Compañía de Seguros,
and Admiral Group plc (the Parent company).
Specified audit procedures, designed to address specific audit risks, were completed for seven (2023: five) further components:
Elephant Insurance Company, Admiral Intermediary Services S.A, Admiral Financial Services Limited, Seren One Limited, Seren
Two Limited, Able Insurance Services Limited, and Admiral Law Limited.
The scope of work over the above components was completed to individual component performance materiality levels which
ranged from £2.5m to £15.9m (2023: £2.2m to £12.3m) dependent upon the relative financial contribution of each individual
component to the Group.
For the remaining components, we performed analysis at an aggregated Group level to re-assess our evaluation that there were
no identified risks of material misstatement in any of these components.
The components within the scope of our audit of entire financial information and specified audit procedures account for above 99%
(2023: 98%) of the Group’s profit before tax, above 99% (2023: 99%) of the Group’s revenue and above 99% (2023: 99%) of the
Group’s net assets.
Finally, we performed audit procedures over the consolidation process by testing the material consolidation adjustments made
by management in calculating their consolidated financial statements.
Revenue
Profit before tax
Net assets
Audit of the entire financial information
Audit of the entire financial information
Audit of the entire financial information
Specified audit procedures
Specified audit procedures
Specified audit procedures
Review at group level
Review at group level
Review at group level
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13743895347874
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7.2. Our consideration of the control environment
We obtained an understanding of and tested the relevant controls within the Group, including controls over the following business
processes: financial reporting, insurance revenue, other revenue, liability for incurred claims, liability for remaining coverage,
financial investments, reinsurance and coinsurance, cash and investments. We also identified the key IT systems in the Group that
were relevant to the audit, and involved our IT specialists to support our testing of general IT controls over these systems, including
the policy administration system, claims administration systems and the data warehouse.
7.3. Our consideration of climate-related risks
In planning our audit, we have considered the impact of climate change on the Group’s operations and subsequent impact on its
financial statements. The Group sets out its assessment of the potential impact on pages 94 to 95 of the Emerging Risks section.
In conjunction with our climate reporting specialists, we have held discussions with the Group to understand management’s:
• process for identifying affected operations, including the governance and controls over this process, and the subsequent effect
on the financial reporting of the Group; and
• long-term strategy to respond to climate-related risks as they emerge including the effect on the Group’s forecasts.
In addition, our audit work also involved:
• challenging the completeness of the physical and transition risks identified based on our understanding of the Group, and
considered in the Group’s climate risk assessment and the conclusion that there is no material impact of climate change risk
on the current year financial reporting;
• assessing the Group’s qualitative analysis which supports the Group’s conclusion that there is no material financial statement
impact of climate risk; and
• assessing disclosures in the Annual Report against the requirements of the TCFD framework, paragraph 8(a) of Listing Rule
9.8.6R, as well as the mandatory climate-related financial disclosure requirements (‘CFD’); and
• evaluating the appropriateness of disclosures included in the financial statements in Note 2.
We have not been engaged to provide assurance over the accuracy of TCFD disclosures set out on pages 66 to 76 of the annual
report. As part of our procedures, we are required to read these disclosures and to consider whether they are materially
inconsistent with the financial statements or our knowledge obtained during the course of our audit. We did not identify any
material inconsistencies as a result of these procedures.
7.4. Working with other auditors
We engaged local component auditors, being Deloitte member firms in Spain and the US, to perform the audit work over entities
residing in these respective territories. We also engaged component auditors in the Deloitte UK firm to perform the audit work over
the Admiral Money segment of the Group. We directed and supervised the work of Deloitte Spain and Deloitte UK, including
through in-person visits and through remote communication and review of their work.
For the US auditors we directed and supervised the work of the component auditor by having frequent phone calls with the
component audit team, participating in video conferences and reviewing key audit documentation remotely.
8. Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor’s
report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated
in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives
rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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9. Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the Parent Company’s ability
to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have
no realistic alternative but to do so.
10. Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
11. Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with
our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including fraud is detailed below.
11.1 Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws
and regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance including the design of the Group’s
remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
• the Group’s own assessment of the risks that irregularities may occur either as a result of fraud or error;
• results of our enquiries of management, internal audit, the directors and the Audit Committee about their own identification
and assessment of the risks of irregularities, including those that are specific to the Group’s sector;
• any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to:
– identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-
compliance;
– detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
– the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
• the matters discussed among the audit engagement team including significant component audit teams and relevant internal
specialists, including tax, actuarial, financial instruments, IT, climate, and industry specialists regarding how and where fraud
might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud
and identified the greatest potential for fraud in the following areas: valuation of UK motor large bodily injury claims reserves within
the liability for incurred claims. In common with all audits under ISAs (UK), we are also required to perform specific procedures
to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions
of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this context included the UK Companies Act, Listing Rules, Solvency II
regulation and relevant tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements
but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included
the Group’s operating licence, and the Financial Conduct Authority and the Prudential Regulation Authority regulations.
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11.2. Audit response to risks identified
As a result of performing the above, we identified the valuation of UK motor large bodily injury reserves within the liability
for incurred claims as a key audit matter related to the potential risk of fraud. The key audit matters section of our report explains
the matters in more detail and also describes the specific procedures we performed in response to that key audit matter.
In addition to the above, our procedures to respond to the risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions
of relevant laws and regulations described as having a direct effect on the financial statements;
• enquiring of management, the Audit Committee and in-house legal counsel concerning actual and potential litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence
with HMRC, the Financial Conduct Authority and the Prudential Regulation Authority; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other
adjustments; assessing whether the judgments made in making accounting estimates are indicative of a potential bias;
and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, including
internal specialists and significant component audit teams, and remained alert to any indications of fraud or non-compliance with
laws and regulations throughout the audit.
Report on other legal and regulatory requirements
12. Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the directors’ remuneration report to be audited has been properly prepared in accordance with
the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and their environment obtained in the
course of the audit, we have not identified any material misstatements in the strategic report or the directors’ report.
13. Corporate Governance Statement
The Listing Rules require us to review the directors' statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code
specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:
• the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any
material uncertainties identified set out on page 180;
• the directors’ explanation as to its assessment of the Group’s prospects, the period this assessment covers and why the
period is appropriate set out on pages 96 to 97;
• the directors' statement on fair, balanced and understandable set out on page 181;
• the Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 88;
• the section of the annual report that describes the review of effectiveness of risk management and internal control systems
set out on page 148; and
• the section describing the work of the Audit Committee set out on page 139.
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14. Matters on which we are required to report by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not received all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been
received from branches not visited by us; or
• the Parent Company financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration have
not been made or the part of the directors’ remuneration report to be audited is not in agreement with the accounting records
and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the Audit Committee, we were appointed by shareholders’ approval at the Annual General
Meeting on 25 April 2024 to audit the financial statements for the year ending 31 December 2024 and subsequent financial periods.
The period of total uninterrupted engagement including previous renewals and reappointments of the firm is nine years, covering
the years ending 31 December 2016 to 31 December 2024.
15.2. Consistency of the audit report with the additional report to the Audit Committee
Our audit opinion is consistent with the additional report to the Audit Committee we are required to provide in accordance with
ISAs (UK).
16. Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for
the opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R,
these financial statements form part of the Electronic Format Annual Financial Report filed on the National Storage Mechanism
of the FCA in accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides no assurance over whether the Electronic
Format Annual Financial Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R.
Adam Addis Signature.png
Adam Addis (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
5 March 2025
Admiral Group plc Annual Report and Accounts 2024
193
Consolidated Income Statement
For the year ended 31 December 2024
Year ended
Note
31 December
2024
£m
31 December
2023
£m1
Insurance revenue
5
4,776.2
3,486.1
Insurance service expenses
5
(3,547.5)
(3,093.2)
Insurance service result before reinsurance
1,228.7
392.9
Net expense from reinsurance contracts held
5
(518.4)
(87.1)
Insurance service result
710.3
305.8
Investment return - Effective interest rate
6
106.3
81.1
Investment return - Other
6
74.6
41.8
Investment return
6
180.9
122.9
Finance expenses from insurance contracts issued
5
(128.4)
(94.5)
Finance income from reinsurance contracts held
5
35.9
28.9
Net insurance finance expenses
(92.5)
(65.6)
Net insurance and investment result
798.7
363.1
Interest income from financial services
7
113.5
94.9
Interest expense related to financial services
7
(37.2)
(26.8)
Net interest income from financial services
76.3
68.1
Other revenue and profit commission
8
189.6
205.7
Other operating expenses
9
(293.6)
(250.8)
Other operating expenses recoverable from co-insurers
9
129.3
107.8
Movement in expected credit loss provision and write-offs
6
(34.6)
(31.0)
Other income and expenses
(9.3)
31.7
Operating profit
865.7
462.9
Finance costs
6
(27.1)
(20.5)
Finance costs recoverable from coinsurers
6
0.6
0.4
Net finance costs
(26.5)
(20.1)
Profit before tax
839.2
442.8
Taxation expense
10
(176.3)
(105.6)
Profit after tax
662.9
337.2
Profit after tax attributable to:
Equity holders of the parent
663.3
338.0
Non-controlling interests (NCI)
(0.4)
(0.8)
662.9
337.2
Earnings per share
Basic
12
216.6p
111.2p
Diluted
12
216.6p
110.8p
Dividends declared and paid (total)
12
369.8
307.1
Dividends declared and paid (per share)
12
123.0p
103.0p
1The Consolidated Income Statement for the year ended 31 December 2023 has been re-presented to show the breakdown of Investment return between effective interest rate and
investment return relating to other transactions, this having been provided within note 6b to the 2023 financial statements. For further detail, see note 6b to the financial statements.
Admiral Group plc Annual Report and Accounts 2024
194
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2024
Year ended
31 December
2024
£m
31 December
2023
£m1
Profit for the period
662.9
337.2
Other comprehensive income
Items that are or may be reclassified to profit or loss
Movements in fair value reserve
11.3
98.1
Deferred tax charge in relation to movement in fair value reserve
2.4
(5.7)
Movements in insurance finance reserve - insurance contracts
7.9
(128.1)
Deferred tax in relation to movement in insurance finance reserve - insurance contracts
(5.1)
14.5
Movements in insurance finance reserve - reinsurance contracts
3.3
49.2
Deferred tax in relation to movement in insurance finance reserve - reinsurance contracts
1.3
(4.8)
Exchange differences on translation of foreign operations
(4.2)
3.7
Movement in hedging reserve
(4.1)
(18.1)
Deferred tax charge in relation to movement in hedging reserve
1.0
4.5
Other comprehensive income for the period, net of income tax
13.8
13.3
Total comprehensive income for the period
676.7
350.5
Total comprehensive income for the period attributable to:
Equity holders of the parent
677.1
351.3
Non-controlling interests
(0.4)
(0.8)
676.7
350.5
1Represented: see note 1 to the financial statements.
Admiral Group plc Annual Report and Accounts 2024
195
Consolidated Statement of Financial Position
As at 31 December 2024
As at
Note
31 December
2024
£m
31 December
2023
£m
ASSETS
Property and equipment
11
87.8
90.1
Intangible assets
11
321.0
242.9
Deferred tax asset
10
19.8
46.1
Corporation tax asset
18.1
20.4
Reinsurance contract assets
5
988.6
1,191.9
Loans and advances to customers
7
1,106.9
879.4
Other receivables
6
225.2
409.9
Financial investments
6
4,863.2
3,862.4
Cash and cash equivalents
6
313.6
353.1
Total assets
7,944.2
7,096.2
EQUITY
Share capital
12
0.3
0.3
Share premium account
13.1
13.1
Other reserves
12
(26.7)
(40.5)
Retained earnings
1,383.4
1,018.9
Total equity attributable to equity holders of the parent
1,370.1
991.8
Non-controlling interests
0.6
1.0
Total equity
1,370.7
992.8
LIABILITIES
Lease liabilities
6
79.6
81.2
Subordinated and other financial liabilities
6
1,322.2
1,129.8
Corporation tax liabilities
35.0
4.9
Insurance contracts liabilities
5
4,961.4
4,581.7
Trade and other payables
6, 11
175.3
305.8
Total liabilities
6,573.5
6,103.4
Total equity and total liabilities
7,944.2
7,096.2
The accompanying notes form part of these financial statements. These financial statements were approved by the Board
of Directors on 5 March 2025 and were signed on its behalf by:
Geraint Jones signature.png
Geraint Jones
Chief Financial Officer
Admiral Group plc
Company Number: 03849958
Admiral Group plc Annual Report and Accounts 2024
196
Consolidated Cashflow Statement
For the year ended 31 December 2024
Year ended
Note
31 December
2024
£m
31 December
2023
£m1
Profit after tax
662.9
337.2
Adjustments for non-cash items:
- Depreciation of property, plant and equipment and right-of-use assets
11
18.8
18.2
- Impairment/ disposal of property, plant and equipment and right-of-use assets
11
9.1
(4.0)
- Amortisation and impairment of intangible assets
11
66.7
40.5
- Movement in expected credit loss provision
10.3
15.7
- Share scheme charges
9
67.8
63.3
- Interest expense on funding for loans and advances to customers
32.3
26.2
- Investment return
6
(177.4)
(119.3)
- Profit on disposal of Insurify share option
9
(12.5)
–
- Finance costs, including unwinding of discounts on lease liabilities
6
27.7
20.5
- Taxation expense
10
176.3
105.6
Change in gross insurance contract liabilities
5
421.6
451.3
Change in reinsurance assets
5
184.9
(141.8)
Change in insurance and other receivables
6
182.4
(94.7)
Change in gross loans and advances to customers
7
(231.4)
(73.6)
Change in trade and other payables, including tax and social security
11
(136.1)
52.4
Cash flows from operating activities, before movements in investments
1,303.4
697.5
Purchases of financial instruments
(8,083.3)
(3,538.4)
Proceeds on disposal/ maturity of financial instruments
7,182.4
3,176.1
Interest and investment income received
90.6
76.8
Cash flows from operating activities, net of movements in investments
493.1
412.0
Taxation payments
(124.1)
(133.0)
Net cash flow from operating activities
369.0
279.0
Cash flows from investing activities:
Purchases of property, equipment and software
(61.7)
(75.9)
Intangible assets acquired through business combinations
(82.5)
–
Net cash used in investing activities
(144.2)
(75.9)
Cash flows from financing activities:
Proceeds on issue of loan backed securities
6
372.2
291.7
Repayment of loan backed securities
6
(194.1)
(246.8)
Proceeds from other financial liabilities
6
177.7
428.4
Repayment of other financial liabilities
6
(170.1)
(292.2)
Finance costs paid, including interest expense paid on funding for loans
(76.7)
(52.8)
Proceeds/(repayments) on hedging derivatives
15.6
17.7
Repayment of lease liabilities
6
(12.7)
(10.7)
Equity dividends paid
12
(369.8)
(307.1)
Net cash used in financing activities
(257.9)
(171.8)
Net increase in cash and cash equivalents
(33.1)
31.3
Cash and cash equivalents at 1 January
353.1
297.0
Effects of changes in foreign exchange rates
(6.4)
24.8
Cash and cash equivalents at 31 December
6
313.6
353.1
1Represented: see note 1 to the financial statements.
Admiral Group plc Annual Report and Accounts 2024
197
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
Attributable to the owners of the Company
Note
Share
Capital
£m
Share
premium
account
£m
Fair
value
reserve
£m
Hedging
reserve
£m
Foreign
exchange
reserve
£m
Insurance
finance
reserve
£m
Retained
profit
and loss
£m
Total
£m
Non-
controlling
interests
£m
Total
equity
£m
At 1 January 2023
0.3
13.1
(205.9)
21.1
0.1
134.5
922.6
885.8
1.2
887.0
Profit/(loss) for the
period
–
–
–
–
–
–
338.0
338.0
(0.8)
337.2
Other comprehensive
income
–
–
92.4
(13.6)
3.7
(69.2)
–
13.3
–
13.3
Total comprehensive
income for the period
–
–
92.4
(13.6)
3.7
(69.2)
338.0
351.3
(0.8)
350.5
Transactions with
equity holders
Dividends
12
–
–
–
–
–
–
(307.1)
(307.1)
–
(307.1)
Share scheme credit
–
–
–
–
–
–
63.3
63.3
–
63.3
Deferred tax on share
scheme credit
–
–
–
–
–
–
2.1
2.1
–
2.1
Transfer to loss on
disposal of assets held
for sale
–
–
–
–
(3.6)
–
–
(3.6)
0.6
(3.0)
Total transactions with
equity holders
–
–
–
–
(3.6)
–
(241.7)
(245.3)
0.6
(244.7)
As at 31 December
2023
0.3
13.1
(113.5)
7.5
0.2
65.3
1,018.9
991.8
1.0
992.8
Attributable to the owners of the Company
Note
Share
Capital
£m
Share
premium
account
£m
Fair
value
reserve
£m
Hedging
reserve
£m
Foreign
exchange
reserve
£m
Insurance
finance
reserve
£m
Retained
profit
and loss
£m
Total
£m
Non-
controlling
interests
£m
Total
equity
£m
At 1 January 2024
0.3
13.1
(113.5)
7.5
0.2
65.3
1,018.9
991.8
1.0
992.8
Profit/(loss) for the
period
–
–
–
–
–
–
663.3
663.3
(0.4)
662.9
Other comprehensive
income
–
–
13.7
(3.1)
(4.2)
7.4
–
13.8
–
13.8
Total comprehensive
income for the period
–
–
13.7
(3.1)
(4.2)
7.4
663.3
677.1
(0.4)
676.7
Transactions with
equity holders
Dividends
12
–
–
–
–
–
–
(369.8)
(369.8)
–
(369.8)
Share scheme credit
–
–
–
–
–
–
67.8
67.8
–
67.8
Deferred tax on share
scheme credit
–
–
–
–
–
–
3.2
3.2
–
3.2
Transfer to loss on
disposal of assets held
for sale
–
–
–
–
–
–
–
–
–
–
Total transactions with
equity holders
–
–
–
–
–
–
(298.8)
(298.8)
–
(298.8)
As at 31 December
2024
0.3
13.1
(99.8)
4.4
(4.0)
72.7
1,383.4
1,370.1
0.6
1,370.7
Admiral Group plc Annual Report and Accounts 2024
198
Notes to the consolidated financial statements
For the year ended 31 December 2024
General information
Admiral Group plc is a public limited Company incorporated in England and Wales. Its registered office is at Tŷ Admiral, David Street,
Cardiff, CF10 2EH and its shares are listed on the London Stock Exchange. The nature of Admiral Group operations and its principal
activities is set out in the Business model section on page 9.
1. Basis of preparation
The consolidated financial statements have been prepared and approved by the Directors in accordance with United Kingdom
adopted international accounting standards in conformity with the requirements of the Companies Act 2006. The Company has
elected to prepare its Parent Company financial statements in accordance with Financial Reporting Standard 101 Reduced
Disclosure Framework (FRS 101).
The accounting policies set out in the notes to the financial statements have, unless otherwise stated, been applied consistently
to all periods presented in these Group financial statements.
The financial statements are prepared on the historical cost basis, except for the revaluation of financial assets classified as fair
value through profit or loss or as fair value through other comprehensive income, and insurance and reinsurance contract assets
and liabilities which are measured at their fulfilment value in accordance with IFRS 17 Insurance Contracts. The Group and Company
financial statements are presented in pounds sterling, rounded to the nearest £0.1 million.
Cashflows from operating activities before movements in investments comprise all cashflows arising from the Group’s insurance
and reinsurance activities, and from loans and advances issued to customers. Cashflows from financing activities include the
cashflows on issues of loan backed securities, lease liabilities and other financial liabilities.
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and can affect those returns through its power over the entity.
In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. The acquisition date
is the date on which control is transferred to the acquirer. The financial statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date control ceases. Losses applicable to the non-controlling
interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have
a deficit balance.
The Group has securitised certain loans and advances to customers by the transfer of the loans to special purpose entities (SPEs)
controlled by the Group. Securitisation enables a subsequent issuance of debt by the SPEs to investors who gain the security of the
underlying assets as collateral. These SPEs are fully consolidated into the Group financial statements under IFRS 10 Consolidated
Financial Statements, as the Group controls the entity in line with the above definition.
In applying the Group’s accounting policies as described in the notes to the financial statements, the Directors are required to make
judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets
and liabilities that are not readily apparent from other sources.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the year in which the estimate is reviewed. To the extent that a change in an accounting estimate gives rise to changes in assets
and liabilities, the movement is recognised by adjusting the carrying amount of the related asset or liability in the period in which
the change occurs. Further information regarding the Group’s critical accounting judgements and estimates is provided in note 2
to the financial statements.
Going concern
The consolidated financial statements have been prepared on a going concern basis. In considering this requirement, the Directors
have taken into account the following:
• The Group’s profit projections, including:
– Changes in premium rates and projected policy volumes across the Group’s insurance businesses
– Projected cost of settling claims across all of the Group’s insurance businesses, including the impact of continuing, albeit
reducing, high levels of inflation
– Projected trends in motor claims frequency
– Projected trends in other revenue generated by the Group’s insurance business from fees and the sale of ancillary products
– Projected contributions to profit from businesses other than the UK Motor insurance business
– Expected trends in unemployment in the context of credit risks and the growth of the Group’s consumer lending business
– The impact of the More Than acquisition, which completed in the first half of 2024, with renewals starting in the second
half of 2024.
Admiral Group plc Annual Report and Accounts 2024
199
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
• The Group’s solvency position, which continues to be closely monitored. The Group continues to maintain a strong solvency
position above target levels
• The adequacy of the Group’s liquidity position after considering all the factors noted above
• The results of business plan scenarios and stress tests on the projected profitability, solvency and liquidity positions including
the impact of severe downside scenarios that assume severe adverse economic, credit and trading stresses
• The regulatory environment, focusing on regulatory guidance issued by the FCA and the PRA in the UK and regular
communications between management and regulators
• A review of the Company’s principal risks and uncertainties and the assessment of emerging risks, including climate-related risks.
Following consideration of all of the above, the Directors have reasonable expectation that the Group has adequate resources
to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report, and that it is
therefore appropriate to adopt the going concern basis in preparing the consolidated financial statements.
Further information regarding the Company’s business activities, together with the factors likely to affect its future development,
performance and position, is set out in the Strategic Report. Further information regarding the financial position of the Company,
its cashflows, liquidity position and borrowing facilities are also described in the Strategic Report. In addition, note 3 to the financial
statements include the Group’s insurance and financial risk management objectives, details of its financial instruments and its
exposures to credit risk and liquidity risk; and its objectives, policies and processes for managing its capital.
Adoption of new and revised standards
The Group has adopted the following IFRSs and interpretations during the year, which have been issued and endorsed:
• Amendments to IAS 7 Statement of Cashflows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements
(effective 1 January 2024)
• Amendments to IAS 1 Presentation of Financial Statements: Classification of liabilities as Current or Non-current (effective 1
January 2024)
• Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (effective 1 January 2024).
The application of the amendments listed above has not had a material impact on the Group’s results, financial position and
cashflows.
New and revised IFRS Standards in issue but not yet effective
At the date of authorisation of these financial statements, the Group has not applied the following new and revised IFRS Standards
that have been issued but are not yet effective:
• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (effective 1 January 2025)
• IFRS 18: Presentation and Disclosure in Financial Statements (effective 1 January 2027)
– IFRS 18 replaces IAS 1, carrying forward many of the requirements in IAS 1 unchanged and complementing them with new
requirements. The group will apply the new standard from its mandatory effective date of 1 January 2027. Even though IFRS
18 will not impact the recognition or measurement of items in the financial statements, it is anticipated that the application
of these amendments may have an impact on the presentation group's consolidated financial statements in future periods.
• IFRS 19: Subsidiaries without Public Accountability: Disclosures (effective 1 January 2027).
The Directors do not expect that the adoption of the Standards listed above will have a material impact on the financial statements
of the Group in future periods.
Representation of Consolidated Cashflow Statement
The 2023 Consolidated Cashflow Statement has been re-presented to reflect the gross cashflows relating to the subordinated loan
note, loan backed securities and other borrowings which were previously all presented on a net basis within the financial statement
line items ‘proceeds from other financial liabilities’ and ‘proceeds on issue of loan backed securities’. This has resulted in £292.2
million additional cash outflows within ‘repayment of other financial liabilities’ and the same inflow within ‘proceeds from other
financial liabilities’ and £246.8 million additional cash outflows within ‘repayment of loan backed securities’ and the same inflow
within ‘proceeds on issue of loan backed securities’. There is no overall impact on resulting cash, or the Consolidated Statement
of Financial Position, Consolidated Income Statement or the Earnings per share calculations within.
Representation of Consolidated Statement of Comprehensive Income
The 2023 Consolidated Statement of Comprehensive Income has been re-presented to show the breakdown of the movements
in the insurance finance reserve between that attributed to insurance contracts and that attributed to reinsurance contracts.
The resulting deferred tax movement has also been re-presented. The movements in the insurance finance reserve are included
within the Insurance finance reserve within the Statement of Changes in Equity. For the breakdown of the insurance finance reserve
between insurance contracts and reinsurance contracts, see note 5e to the financial statements.
Admiral Group plc Annual Report and Accounts 2024
200
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
2. Critical accounting judgements and estimates
2.1 Critical accounting judgements
The following are the critical judgements, apart from those involving estimations (which are presented separately below),
that the Directors have made in the process of applying the Group’s accounting policies and that have the most significant effect
on the amounts recognised in financial statements.
Premium allocation approach (‘PAA’)
The Group applies the PAA to all of its insurance and reinsurance contracts.
The coverage period of insurance contracts is typically one year or less, including insurance contract services arising from
all premiums within the contract boundary. The Group does not consider the existing products with more than 12 months coverage
to be material. The Group’s insurance contracts are therefore automatically eligible for the PAA.
However, the Group’s reinsurance contracts are not automatically eligible for the PAA given that the coverage period is greater than
one year. The Group has modelled the expected cashflows and reasonably possible future scenarios for its reinsurance contracts,
and as a result expects that the measurement of the asset for remaining coverage for the group containing those contracts under
the PAA does not differ materially from the measurement that would be produced applying the general model. Its reinsurance
contracts are therefore eligible for the PAA.
The modelling of the cashflows associated with the Group’s reinsurance contracts, and reasonably possible future scenarios,
is a key area of judgement that impacts the PAA eligibility assessment and the resulting measurement of and presentation of
reinsurance contracts in these financial statements.
Classification of the Group’s contracts with reinsurers as reinsurance contracts
A contract is required to transfer significant insurance risk in order to be classified as such. Management reviews all terms and
conditions of each such insurance and reinsurance contract in order to be able to make this judgement. In particular, all reinsurance
contracts (both excess of loss and quota share contracts) held by the Group have been assessed and it has been concluded that
all contracts transfer significant insurance risk and have therefore been classified and accounted for as reinsurance contracts within
these financial statements.
Unit of account: combination of insurance contracts and separation of distinct components
The lowest unit of account in IFRS 17 is the contract and there is a presumption that a contract with the legal form of a single
contract would generally be considered a single contract in substance. However, there might be certain facts and circumstances
where legal form does not reflect the substance of the arrangement and separation of the contract is required, or alternatively
circumstances when contracts should be combined, such as when a set of insurance contracts with the same or a related
counterparty may achieve, or be designed to achieve, an overall commercial effect.
Overriding the legal contract to reflect substance is not a policy choice; it is a significant judgement requiring careful consideration
of all relevant facts and circumstances. The following considerations are deemed relevant in assessing whether the contracts
should be separated, or alternatively, combined:
• Whether there is interdependency between the different risks covered
• Whether components lapse together, and
• Whether components can be priced and sold separately.
In addition, any cashflows related to promises to transfer distinct goods or services, other than insurance contract services,
that are within the host insurance contract are separated and recognised by applying IFRS 15. In determining whether there
are such distinct components, the following is considered:
• Whether the policyholder can benefit from the good or service on its own or together with other resources available to the
policyholder
• Whether the cashflows and risks associated with the good or services are highly interrelated with the cashflows and risks
associated with the insurance components in the contract
• Whether the Group provides a significant service in integrating the good or service with the insurance components.
After separating any such distinct components, IFRS 17 is applied to all remaining components of the (host) insurance contract.
Admiral Group plc Annual Report and Accounts 2024
201
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
The Group has determined that, in applying these requirements to its insurance contracts:
• The individual insurance policies contained in a ’multi-cover policy’ are treated as separate contracts, given that the components
can be priced and sold separately, there is little interdependency between the risks covered, and the components can lapse
separately
• The cashflows associated with administration fees (for changes to the underlying insurance policy), and instalment income (being
the additional fees payable by a policyholder associated with paying for an insurance contract over 12 months, rather than in one
up-front payment), are non-distinct given that the policyholder cannot benefit from these services separately and the services
are highly interrelated with the core insurance policy. These cashflows are therefore treated as insurance revenue under IFRS 17.
However, for the component of the insurance policy that is underwritten outside the Group by a third party insurer, the Group
is performing an agency service on behalf of the third party insurer, and therefore this component is treated as a separate
component of revenue and accounted for under IFRS 15
• The cashflows associated with ancillary or ’add on’ products (which are sold within the same set of contracts as the core
product), are separated from the core product in cases where the policyholder can benefit from the product on its own, and
where the cashflows are not highly interrelated with the insurance components in the contract or the Group does not provide
a significant service in integrating the products.
In addition, the Group’s quota share reinsurance contracts contain profit commission arrangements. Under these arrangements,
there is a minimum guaranteed amount that the Group, as the policyholder, will always receive – either in the form of profit
commission, or as claims, or another contractual payment irrespective of the insured event happening. The minimum guaranteed
amounts have been assessed to be highly interrelated with the insurance component of the reinsurance contacts and are,
therefore, non-distinct investment components which are not accounted for separately. Given that the receipt and payment
of these non-distinct investment components do not relate to the provision of insurance services, the amounts are excluded from
the net reinsurance expenses in the Group’s income statement (i.e. both ceded reinsurance premiums and ceded recoveries
are presented net of the minimum guaranteed amount that the Group will always receive).
Presentation of reinsurance ‘funds withheld’ contracts
The Group has a number of quota share reinsurance contracts that have funds withheld features, whereby the quota share
proportion of ceded premiums and related recoveries are retained by the Group, and settled on a net basis at commutation.
The only initial cashflows during the coverage period are therefore the payment of any reinsurer margin.
Under IFRS 17, the reinsurance assets related to these funds withheld contracts are presented on a cashflow basis i.e. the full
proportional share of ceded premiums and recoveries is not presented in either the Income Statement or the Statement of Financial
Position.
Consolidation of the Group’s special purpose entities (‘SPEs’)
The Group has set up a number of SPEs in relation to the Admiral Money business, whereby the Group securitises certain loans
by the transfer of the loans to the respective SPEs. The securitisation enables a subsequent issue of debt by the SPEs to investors
who thereby gain the security of the underlying assets as collateral.
The accounting treatment of SPEs has been assessed and it has been concluded that the entities should be fully consolidated into
the Group’s financial statements under IFRS 10. This is due to the fact that despite not having legal ownership, the Group has
control of the SPEs, being exposed to the returns and having the ability to affect those returns through its power over the SPEs.
The SPEs have therefore been fully consolidated in the Group’s financial statements.
2.2 Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year,
are discussed below.
Best estimate of future cashflows to fulfil insurance contracts
The ultimate cost of outstanding claims that have been incurred prior to the balance sheet date and that remain unsettled at the
balance sheet date, for material lines of business, is estimated by internal actuarial teams using a range of standard actuarial claims
projection techniques, (such as incurred and paid chain ladder techniques, Bornhuetter-Ferguson methods and initial expected
assumptions) to allow an actuarial assessment of their potential outcome. This includes an allowance for unreported claims.
The projection of the overall claims reserve is subject to comparison against equivalent outputs produced by an independent
external actuarial specialist for material lines of business.
Claims are segmented into groups with similar characteristics and which are expected to develop and behave similarly, for example
bodily injury (attritional and large) and damage claims, with specific projection methods selected for each head of damage.
Key sources of estimation uncertainty arise from both the selection of the projection methods and the assumptions made in setting
claims provisions.
Admiral Group plc Annual Report and Accounts 2024
202
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Internal and external factors may affect the cost of settling claims in ways that wouldn’t be allowed for by standard actuarial
techniques; where this occurs adjustments to the technique, assumptions or result may be applied. Examples of these factors include:
• Changes in the reporting patterns of claims impacting the frequency of bodily injury and damage claims
• Emerging inflationary trends on the average cost of bodily injury and damage claims
• The likelihood of bodily injury claims settling as Periodic Payment Orders
• Changes in the regulatory or legal environment that lead to changes in awards for bodily injury claims and associated
legal costs
• Changes to the underlying process and methodologies employed in setting and reviewing case reserve estimates.
Additional qualitative judgement is used to assess the extent to which past trends may not apply in future, (e.g., to reflect one-off
occurrences, changes in external or market factors such as public attitudes to claiming, economic conditions, levels of claims
inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy features and claims handling
procedures) in order to arrive at the estimated ultimate cost of claims that present the probability weighted expected value
outcome from the range of possible outcomes, taking account of all the uncertainties involved.
The Group also has the right to pursue third parties for payment of some or all costs. Estimates of salvage recoveries and
subrogation reimbursements are offset against ultimate claims costs. Other key circumstances affecting the reliability of
assumptions include delays in settlement.
Outputs of the actuarial projections include ultimate average cost per claim and claim frequency by accident year, implied claims
inflation metrics and ultimate loss ratios and burn costs by accident year and underwriting year. These metrics are reviewed
and challenged as part of the process for making allowance for the uncertainties noted.
The Group also provides a best estimate for remediation cost relating to UK Motor total loss claims settled in previous periods
and related processes. Management exercise judgement in assessing which customers should be remediated and apply estimation
techniques in deriving the remediation amounts included in these financial statements.
Refer to the analysis in note 5 to the financial statements for further detail on the methodology used to estimate future cashflows
to fulfil insurance contracts.
Methods used to measure the risk adjustment for non-financial risk
The risk adjustment for non-financial risk is the compensation that is required for bearing the uncertainty about the amount and
timing of cashflows that arises from non-financial risk as the insurance contract is fulfilled. Because the risk adjustment represents
compensation for uncertainty, estimates are made on the degree of diversification benefits and expected favourable and
unfavourable outcomes in a way that reflects the Group’s degree of risk aversion. The Group estimates an adjustment for non-
financial risk separately from all other estimates.
Applying a confidence level technique (value at risk (‘VaR’)) on an ultimate basis, the Group estimates the probability distribution
of the present value of the future cashflows from insurance contracts at each reporting date and calculates the risk adjustment
for non-financial risk as the excess of the value at risk at the target confidence level over the expected present value of the future
cashflows. Factors included in the scenarios used to derive the risk adjustment distribution include the impact of future claims
inflation, Ogden shocks, and increases in claims costs due to regulatory decisions, and internal operational changes.
The Group’s risk adjustment is set in a range between the 85th and 95th percentile, on a net of excess of loss reinsurance basis.
The level and estimate of risk adjustment required at reporting date is made in a way that reflect the Group’s degree of risk
aversion, taking into account both internal factors (such as data quality and trends; diversification across portfolios) and external
factors (such as inflation and potential changes in Ogden rate) that are relevant at that point in time.
To determine the risk adjustment for non-financial risk for reinsurance contracts, the Group applies these techniques both gross
and net of excess of loss reinsurance and derives the amount of risk being transferred to the reinsurer as the difference between
the two results. The net of excess of loss risk adjustment is allocated to quota share reinsurance contracts on a proportional basis.
The risk adjustment is calculated at the issuing entity level. Diversification benefit is included across portfolios within the entity,
to reflect the diversification in contracts sold across entities.
The risk adjustment is then allocated down to each portfolio of contracts within the entity using a spread VaR methodology
to inform the allocation, to ensure coherence of the gross and excess of loss reinsurance results for risk adjustment across the
portfolios within an entity. Allocations of the risk adjustment to each underwriting year (annual cohort) of contracts within a portfolio
is performed manually, based on a systematic approach using management judgement. This typically involves allocating a higher
proportion of the risk adjustment to the more recent underwriting years that are less developed and therefore more uncertain,
compared to the proportion of risk adjustment allocated to older, more developed years.
Where a risk adjustment is required for the liability for remaining coverage due to facts and circumstances indicating that contracts
are onerous, this is derived using the risk adjustment for the earned portion of the reserves, adjusted for the unearned claims
reserves to reflect the difference in exposure/size of reserves and difference in drivers of risk in the reserves.
Refer to the analysis in note 5 to the financial statements for further detail on the methods used in the period to measure risk
adjustment for non-financial risk.
Admiral Group plc Annual Report and Accounts 2024
203
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Calculation of expected credit loss provision
The Group is required to calculate an expected credit loss (‘ECL’) allowance in respect of the carrying value of the Admiral Money
loan book in line with the requirements of IFRS 9. Due to the size of the loan book, the calculation of the ECL is deemed to be
a critical accounting judgement and includes key sources of estimation uncertainty.
Management applies judgement in:
• Determining the appropriate modelling solution for measuring the ECL
• Calibrating and selecting appropriate assumptions
• Setting the criteria for what constitutes a significant increase in credit risk
• Identification of key scenarios to include and determining the credit loss in these instances.
The key areas of estimation uncertainty are in the calculation of the probability of default (‘PD’) in the base scenario for stage 1
and 2 assets, and the determination, impact assessment and weighting of the forward-looking scenarios.
Refer to the analysis in note 7 to the financial statements for further detail on the Group’s ECL methodology applied in the period.
Impact of climate-related risks on accounting judgements and estimates
Directors have assessed the impact of climate-related risks on the Group’s Statement of Financial Position. Whilst there is inherent
uncertainty in performing such an assessment, no material impact has been identified in respect of specific judgements or
estimates related to climate-related risks on valuations included within the financial statements.
3. Financial risk
The Group’s activities expose it primarily to financial risk including insurance, reinsurance and reserve risk, credit risks and wider
market risks. The Board of Directors is ultimately responsible for the management of financial risks, although it has delegated
the detailed oversight of supervising risk management and internal control to the Group Risk Committee.
There are several key elements to the risk management environment throughout the Group. These are detailed in full in the
Corporate Governance Statement.
The Group’s primary business is the issuance of insurance contracts that transfer risk from policyholders to the Group and its
co-insurance partners. Primary risks arising from the issuance of insurance contracts include reserve risk; where claims reserves
may prove inadequate to cover the ultimate cost of claims which are by nature uncertain, and insurance risk; where inappropriate
premiums are charged for its insurance products leading to either insufficient premiums to cover claims costs or uncompetitive
rates resulting in reduced business volumes.
The Board has ultimate responsibility for the management of insurance risk although as set out above, it has delegated the detailed
oversight of risk management to the Group Risk Committee. The Group has a Group Reserving Committee as well as local
Reserving Committees which are comprised of senior managers within the finance, claims, pricing and actuarial functions in the
respective businesses which monitor reserving risks. The Reserving Committees primarily recommend the approach for claims
reserving but also review the systems and controls in place to support accurate reserving and consider material reserving issues
such as large bodily injury claims frequency and severity, the impact of changes in the claims systems and the external
environment.
The Board implements certain policies to mitigate and control the level of risk accepted by the Group. These include pricing policies
and claims management and administration processes, in addition to reserving policies and entering into reinsurance arrangements.
3.1. Reserve risk
Reserve risk arises from:
• The uncertain nature of claims, in particular the development of large bodily injury claims
• Unexpected future impact of socioeconomic trends or regulatory changes, for example changes to the Ogden discount rate
• Data issues and changes to the claims reporting process
• Failure to recognise claims trends in the market including a slow-down in the processing of recoveries and liabilities with third
party insurers which increases the estimation risk of these amounts
• Changes in underwriting and business written so that past trends are not necessarily a predictor of the future.
Understatement of reserves may result in not being able to pay claims when they fall due. Alternatively, overstatement of reserves
can lead to a surplus of funds being retained resulting in opportunity cost; for example, lost investment return or insufficient
resource to pursue strategic projects and develop the business.
Admiral Group plc Annual Report and Accounts 2024
204
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Reserve risk is mitigated through a series of processes and controls. The key processes are as follows:
• Regular management and internal actuarial review of individual and aggregate case claim reserves, including regular reporting
of management information and exception reporting of significant movements
• Regular management and internal actuarial review of large claims, including claims settled or potentially settled by PPOs for which
the uncertainty is increased by factors such as the lifetime of the claimant and movements in the indexation for the cost of future
care of the claimant
• Bi-annual external actuarial review of best estimate claims reserves using a variety of recognised actuarial techniques
• Internal actuarial analysis of reserve uncertainty through qualitative analysis, scenario testing and a range of stochastic reserving
techniques
• Ad hoc external reviews of reserving related processes and assumptions
• The application of a risk adjustment aligned with Group risk appetite.
As described in note 2, critical accounting judgements and estimates, the Group includes the risk adjustment for non-financial risk
within its measurement of insurance contracts and reinsurance contract assets, using a confidence level technique, with the risk
adjustment being set in a range between the 85th and 95th percentile, on a net of excess of loss reinsurance basis. See note 3.4
for related sensitivity disclosures.
There have been no significant changes to the underlying methods to calibrate the reserve distribution during 2024, with the
reserve risk modelling in 2024. There has been a slight reduction in the volatility of the reserve risk distribution from which the
percentile is selected as a result of the strong reserve releases following the change in Ogden discount rate; otherwise it has not
changed significantly since the end of 2023.
The reserves including risk adjustment at 31 December 2024 equated to a 95th percentile confidence level position (2023: 93rd
percentile) to the nearest whole percentile. The change in the confidence level from 2023 is reflective of the Group’s risk appetite,
taking into account an assessment of uncertainty, including the strong releases in the best estimate, inherent uncertainty in bodily
injury claims, growth in the UK motor book along with an assessment of other external factors.
3.2. Pricing risk
As noted above, the Group defines pricing risk as the risk that claims cost on business written but not yet earned is higher than
allowed for in the premiums charged to policyholders. Pricing risk is considered within Insurance risk within the Group’s principal
risks and uncertainties.
Key processes and controls operating to mitigate pricing risk are as follows:
• Experienced and focused senior management and teams in relevant business areas including pricing and claims management
• A data-driven and analytical approach to regular monitoring of claims and underwriting performance
• Observations of weather events trends to understand climate impacts on frequency and severity
• Capability to identify and resolve underperformance promptly through changes to key performance drivers, in particular pricing.
3.3. Reinsurance risk
Reinsurance risk is the risk of placement of ineffective reinsurance arrangements, or the economic risk of reduced availability
of reinsurance arrangements in future periods.
The Group mitigates these risks by ensuring that it has a diverse range of financially secure reinsurance partners, including
a long-term relationship with Munich Re and a number of other large reinsurers.
The Group purchases reinsurance as part of its risk mitigation programme. Reinsurance held is placed on both an excess of loss
basis, designed to protect the Group against very large individual claims and catastrophe losses, and a proportional basis i.e.
quota–share reinsurance which is taken out to reduce the overall exposure of the Group to its insurance contracts.
Amounts recoverable from reinsurers are estimated in a manner consistent with underlying insurance contract liabilities and
in accordance with the reinsurance contract terms. Although the Group has reinsurance arrangements, it is not relieved of its direct
obligations to its policyholders and thus a credit exposure exists with respect to reinsurance held, to the extent that any reinsurer
is unable to meet its obligations.
Information regarding reinsurance credit risk is provided in note 3.5.
Admiral Group plc Annual Report and Accounts 2024
205
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
3.4. Sensitivity analysis
The following sensitivity analysis shows the impact on profit for reasonably possible movements in key assumptions with all other
assumptions held constant. The correlation of assumptions will have a significant effect in determining the ultimate impacts,
but to demonstrate the impact due to changes in each assumption, assumptions have been changed on an individual basis.
It should be noted that movements in these assumptions are non-linear.
The sensitivities are shown for UK Motor only, being the line of business where such sensitivities could have a material impact
at a Group level. The sensitivities are shown on a gross and net of quota share reinsurance basis to illustrate the impacts on
shareholder profit and equity before and after risk mitigation from quota share reinsurance. The sensitivities (both gross and net)
include the impacts of movements in co-insurance profit commission, given that underwriting year loss ratios including risk
adjustment, are a direct input to the calculation of profit commission. Refer to note 8 to these financial statements for the
accounting policy for co-insurance profit commission.
Risk adjustment
The sensitivities reflect the impact on profit before tax in 2024 and equity as at the end of 2024 for changes in the selection of the
UK Motor risk adjustment confidence level at 31 December 2024, with all other assumptions remaining unchanged.
2024
£m
Impact on profit
before tax gross of
reinsurance
Impact on profit
before tax net of
reinsurance
Impact on equity
gross of reinsurance
Impact on equity net
of reinsurance
Risk adjustment decrease to 90th percentile
123.5
112.2
100.8
91.4
Risk adjustment decrease to 85th percentile
199.3
180.8
162.5
147.2
Undiscounted loss ratios, including risk adjustment
The sensitivities reflect the impact on profit before tax in 2024 and equity as at the end of 2024, of a change in in the booked loss
ratios for individual underwriting years (UWY) as at 31 December 2024, with all other assumptions remaining unchanged.
UWY 2021 impact on:
UWY 2022 impact on:
UWY 2023 impact on:
UWY 2024 impact on:
£m1
PBT
Equity
PBT
Equity
PBT
Equity
PBT
Equity
Increase of 1%: gross of reinsurance
(14.8)
(11.2)
(15.8)
(13.1)
(21.0)
(17.8)
(16.4)
(13.8)
Increase of 5%: gross of reinsurance
(67.5)
(51.2)
(72.4)
(60.2)
(98.5)
(83.8)
(75.4)
(63.9)
Increase of 10%: gross of reinsurance
(133.3)
(101.1)
(143.2)
(119.2)
(195.3)
(166.3)
(149.2)
(126.6)
Decrease of 1%: gross of reinsurance
16.7
12.7
16.1
13.3
22.5
18.9
16.8
14.0
Decrease of 5%: gross of reinsurance
76.7
58.1
85.7
70.2
118.7
98.9
88.8
73.9
Decrease of 10%: gross of reinsurance
164.5
124.5
171.8
140.7
232.3
194.1
180.9
150.3
Increase of 1%: net of reinsurance
(11.7)
(8.8)
(9.0)
(7.2)
(21.0)
(17.8)
(16.4)
(13.8)
Increase of 5%: net of reinsurance
(51.9)
(38.8)
(37.6)
(30.8)
(79.8)
(67.7)
(69.8)
(59.0)
Increase of 10%: net of reinsurance
(102.1)
(76.3)
(73.5)
(60.3)
(124.7)
(105.4)
(111.7)
(94.2)
Decrease of 1%: net of reinsurance
13.6
10.2
9.1
7.3
22.5
18.9
16.8
14.0
Decrease of 5%: net of reinsurance
63.1
47.2
54.0
43.4
118.7
98.9
88.8
73.9
Decrease of 10%: net of reinsurance
148.3
111.6
118.0
95.2
232.3
194.1
180.9
150.3
1‘Booked’ loss ratios are undiscounted underwriting year loss ratios, including risk adjustment.
The sensitivities below reflect the impact on co-insurance profit commission within profit before tax in 2024, of a change in in the
booked loss ratios for individual underwriting years (UWY) as at 31 December 2024.
Admiral Group plc Annual Report and Accounts 2024
206
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
£m
UWY 2021
UWY 2022
UWY 2023
UWY 2024
Increase of 1%: gross of reinsurance
(1.7)
(1.7)
(1.7)
(1.7)
Increase of 5%: gross of reinsurance
(1.7)
(1.7)
(1.7)
(1.7)
Increase of 10%: gross of reinsurance
(1.7)
(1.7)
(1.7)
(1.7)
Decrease of 1%: gross of reinsurance
3.6
2.0
3.1
2.0
Decrease of 5%: gross of reinsurance
10.9
14.9
21.8
15.0
Decrease of 10%: gross of reinsurance
32.8
30.3
38.7
33.4
3.5. Credit risk
The Group defines credit risk as the risk of financial loss if another party, with whom the group has contracted, fails to perform
or meet its obligations. The key areas of exposure to credit risk for the Group result through its reinsurance programme,
investments, bank deposits, loans and advances to customers and other receivables.
The Directors consider credit quality and counterparty exposure frequently and in significant detail. The Directors consider that
the policies and procedures in place to manage credit exposure continue to be appropriate for the Group’s risk appetite and, during
2024 and historically, no material credit losses have been experienced by the Group.
Financial investments and cash
Credit and counterparty risk is managed by the Group by investing in high quality money market funds, and setting suitable
parameters for asset managers to adhere to when purchasing debt securities. Cash balances and deposits are placed only with
highly rated credit institutions.
The Group primarily invests the following asset types:
• Debt securities are held within segregated mandates and investment funds. This includes corporate, government and private
debt as well as asset backed securities. The investment guidelines ensure management of credit risk. Generally, the duration
of the securities is relatively short and similar to the duration of the on book claims liabilities
• Equity securities including private equity and infrastructure equity are held within diversified funds.
• Liquidity funds, which in turn invest in a mixture of short-dated fixed and variable rate securities, such as cash deposits,
certificates of deposits, floating rate notes and other commercial paper
• Deposits held with well rated institutions and which are short in duration (under three years). These are classified as held
at amortised cost.
The detailed holdings are reviewed regularly by the Investment Committee.
Reinsurance assets
To mitigate the risk arising from exposure to reinsurers (in the form of reinsurance recoveries), the Group only conducts business
with companies of appropriate financial strength ratings. In addition, many reinsurance contracts are operated on a funds withheld
basis, which substantially reduces credit risk, as the Group retains the cash received from policyholders.
Loans and advances to customers
The risk appetite for the lending business is set to ensure that the risk taken is commensurate with the expected returns.
The Company manages risks through a comprehensive framework of key risk indicators (KRIs). These indicators are regularly
monitored and reviewed to ensure effective risk identification, measurement, and control. See note 7 for further information.
Other receivables
Trade receivables and other debtors are also subject to credit risk, although this is mitigated by a review of the credit worthiness
of all counterparties prior to them being accepted.
All other assets are assessed as low credit risk under IFRS 9, with no significant amounts past due or impaired. No further disclosure
is provided due to this having an immaterial impact on the financial statements.
Admiral Group plc Annual Report and Accounts 2024
207
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Credit exposure and quality analysis
The table below provides information regarding the credit risk exposure of the Group.
31 December 2024
AAA
AA
A
BBB and
Sub-BBB
Not rated
Total
£m
£m
£m
£m
£m
£m
Financial investments measured at FVTPL
Money market and other funds
184.8
469.6
405.1
31.3
285.7
1,376.5
Equity Investments (designated FVTPL)
–
–
–
–
46.9
46.9
Derivative financial instruments
–
–
–
–
(2.4)
(2.4)
Financial investments classified as FVOCI
Corporate and private debt securities
631.7
202.4
1,072.0
513.5
143.6
2,563.2
Government debt securities
53.4
711.1
5.1
2.6
–
772.2
Financial assets measured at amortised cost
Deposits with credit institutions
–
–
81.7
10.0
–
91.7
Total financial investments
869.9
1,383.1
1,563.9
557.4
473.8
4,848.1
Cash and cash equivalents
–
12.7
288.7
12.0
0.2
313.6
Reinsurance contract assets
114.0
681.5
192.9
0.2
–
988.6
Other receivables
–
–
–
–
110.4
110.4
Loans and advances to customers (note 7)1
–
–
–
–
1,106.9
1,106.9
Total exposure
983.9
2,077.3
2,045.5
569.6
1,691.3
7,367.6
31 December 2023
AAA
AA
A
BBB and
Sub-BBB
Not rated
Total
£m
£m
£m
£m
£m
£m
Financial investments measured at FVTPL
Money market and other funds
194.9
236.1
355.7
71.2
30.9
888.8
Equity Investments (designated FVTPL)
–
–
–
–
12.4
12.4
Derivative financial instruments
–
–
–
–
17.6
17.6
Financial investments classified as FVOCI
Corporate and private debt securities
414.2
235.7
955.3
468.1
210.0
2,283.3
Government debt securities
57.2
455.3
5.2
1.9
–
519.6
Equity Investments (designated FVOCI)
–
–
–
–
23.0
23.0
Financial assets measured at amortised cost
Deposits with credit institutions
–
–
116.7
–
–
116.7
Other
Investment in associate
–
–
–
–
1.0
1.0
Total financial investments
666.3
927.1
1,432.9
541.2
294.9
3,862.4
Cash and cash equivalents
–
12.2
318.2
22.6
0.1
353.1
Reinsurance contract assets
–
913.8
277.4
0.7
–
1,191.9
Other receivables
75.0
75.0
Loans and advances to customers (note 7)1
879.4
879.4
Total exposure
666.3
1,853.1
2,028.5
564.5
1,249.4
6,361.8
1Loans and advances to customers are assets generated within the Group and hence not externally rated. See note 7 for management’s internal assessment of credit risk.
£126 million of unrated exposure stems from securities with AAA/AA rated money market funds. Not rated corporate and private
debt represents debt securities without a public rating, here credit analysis is undertaken by Admiral’s asset managers, while
Admiral review the asset managers and their credit process. A watchlist is maintained across rated and not rated exposure to determine
credit deterioration. Typical exposure stems from real estate debt, infrastructure debt, corporate loans and other assets.
There were no significant financial assets that were past due at the close of either 2024 or 2023.
Admiral Group plc Annual Report and Accounts 2024
208
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
3.6. Market risk
The Group’s activities expose it primarily to market risks of credit spread, interest rate, liquidity and currency risk. The detailed
oversight of supervising risk management and internal control has been delegated to the Group Risk Committee.
There is also an Investment Committee that makes recommendations to the Group and subsidiary boards on investment strategy,
and overseas the Group’s investments, as well as advising on liquidity funding and foreign exchange management.
3.6.1. Credit spread risk
Spread risk is the risk of losses arising from changes in the spread between corporate bond yields and the risk-free yield curve.
These losses may not be realised as bonds are typically held to maturity.
Sensitivity to credit spread risk
The impact on equity of 100 and 200 basis point increases in credit spreads on financial investments and cash at the relevant
valuation date, is as follows:
31 December
2024
31 December
2023
£m
£m
Reduction in equity – 100bps
(50.6)
(75.4)
Reduction in equity – 200bps
(99.0)
(150.8)
The impact on the income statement from movements in credit spreads at the valuation date is immaterial.
No sensitivity analysis has been presented in relation to the impact on insurance liabilities and reinsurance assets in respect of
changes in credit spreads, as it has been assumed that there is no direct impact on the illiquidity premium as a result of a movement
in credit spreads.
Also see note 7 for further information on sensitivity in respect of credit risk in relation to loans and advances to customers.
3.6.2. Interest rate risk
The Group considers interest rate risk to be the risk that unfavourable movements in interest rates could adversely impact on the
capital values of financial assets and liabilities.
Interest rate risk on financial instruments arises primarily from the Group’s investments in debt securities. These investments
are exposed to the risk of adverse changes in fair values or future cashflows because of changes in market interest rates. Money
market funds and other funds, and private debt are not materially affected by interest rate movements. As at 31 December 2024,
debt securities of £815.0 million are floating rate and £2,675.2 million are fixed rate.
In addition, the value of insurance contract liabilities and reinsurance contracts assets recognised within the financial statements
are impacted by changes in interest rates, given that these are discounted using a risk-free interest rate, plus illiquidity premium.
The Group manages interest rate risk by closely matching, where possible, the durations of insurance contracts with fixed and
guaranteed terms and the supporting financial assets. The Group monitors its interest rate risk exposure through periodic reviews
of asset and liability positions. Additionally, estimates of cashflows and the impact of interest rate fluctuations are modelled and
reviewed every six months.
Loans and advances to customers
The Group’s consumer loan portfolio consists of fixed rate loans, which are funded at a floating variable rate. The Group has interest
rate swap arrangements in place to eliminate the majority of the interest rate risk variability in the cashflows payable on the loan
backed securities.
Hedge accounting
Hedge accounting is applied when the criteria specified in IFRS 9 are met. In line with IFRS 9, the gain or loss on the hedged
position as at the balance sheet date is recognised through other comprehensive income.
This results in a hedging reserve in relation to the interest rate swap.
Financial liabilities
The Group holds a financial liability in the form of a £250.0 million subordinated loan note with a ten year maturity and fixed rate
coupon of 8.5% with a redemption date of 6 January 2034. This liability is recorded at amortised cost and therefore neither
the carrying value of the deposits, nor the interest payable, will be impacted by fluctuations in interest rates.
Other financial assets and liabilities
There is no significant exposure to interest rate risk for other financial assets and liabilities due to these being held at amortised cost.
Admiral Group plc Annual Report and Accounts 2024
209
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Sensitivity to interest rate risk
The impact on profit (before tax) and equity arising from the impact of 100 basis point and 200 basis point increases and decreases
in interest rates on insurance contract liabilities and reinsurance contract assets as at 31 December 2024, is as follows:
31 December 2024
£m
Impact on profit
before tax gross of
reinsurance
Impact on profit
before tax net of
reinsurance
Impact on equity
gross of reinsurance
Impact on equity net
of reinsurance
Increase of 100 basis points
–
–
60.8
58.3
Decrease of 100 basis points
–
–
(69.7)
(67.1)
Increase of 200 basis points
–
–
115.1
110.3
Decrease of 200 basis points
–
–
(152.2)
(146.9)
The impact on profit (before tax) and equity arising from the impact of 100 basis point and 200 basis point increases and decreases
in interest rates on investments and cash as at 31 December 2024, is as follows:
31 December 2024
£m
Impact on profit before tax
Impact on equity
Increase of 100 basis points
–
(83.4)
Decrease of 100 basis points
–
90.4
Increase of 200 basis points
–
(161.0)
Decrease of 200 basis points
–
189.2
Admiral invests in fixed and floating rate securities. Investment income on floating rate securities increases with changes in interest
rates, where as the market value of fixed rate securities is negatively correlated with changes in interest rates. Admiral’s Money
Market and Other funds and Private Debt are predominantly floating rate securities, whereas Corporate and Government debt are
mostly fixed rate securities. Sensitivities for the 2023 comparative period are not significantly different to those provided above.
Changes in interest rates as at 31 December 2024 have no material impact on profit before tax (refer to Appendix 2 for the impact
on profit before tax arising from the impact of 100 bps and 200 basis point increases and decreases in interest rates during 2024).
The changes impact equity as follows:
Equity
• Changes in the fair value of fixed-rate financial assets measured at FVOCI
• Insurance finance income and expenses recognised in OCI as a result of discounting future cashflows at a revised current rate
• The effect on profit or loss, net of tax.
The Group’s Solvency II balance sheet, which includes technical provisions discounted using Bank of England and EIOPA yield
curves reflects a low sensitivity to interest rates as a result of well-matched durations of assets and liabilities.
3.6.3. Liquidity risk
Liquidity risk is defined as the risk that the Group does not have sufficient available financial resources to enable it to meet
its obligations as they fall due, or can only secure them at excessive cost.
The Group holds appropriate liquidity buffers at the Parent Company and subsidiary levels.
Further, as noted above, a significant portion of insurance funds are invested in investment funds with same day liquidity,
meaning that a large proportion of the Group’s cash and investments are readily available.
Admiral Group plc Annual Report and Accounts 2024
210
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Insurance and reinsurance contracts
The following table analyses the undiscounted, best estimate cashflows of the Group’s claims liabilities under its insurance and
reinsurance contracts, which reflects the dates on which the cashflows are expected to occur. Liabilities and assets for remaining
coverage are excluded from this analysis.
Insurance contract liabilities
<1 year
1-2 years
2-3 years
3-4 years
4-5 years
>5 years
£m
£m
£m
£m
31 December 2024
UK Motor
747.5
421.6
330.7
256.2
181.3
840.0
UK Non-motor insurance
142.3
32.4
11.5
4.6
1.4
0.2
International
287.3
121.1
60.8
34.8
24.0
128.8
31 December 2023
UK Motor
667.1
382.1
309.1
246.8
182.0
791.9
UK Non-motor insurance
152.1
28.4
10.4
5.1
2.7
0.5
International
277.1
104.1
59.0
32.8
19.1
123.5
Reinsurance contract assets
<1 year
1-2 years
2-3 years
3-4 years
4-5 years
>5 years
£m
£m
£m
£m
31 December 2024
UK Motor
27.0
14.1
14.1
17.7
59.3
153.5
UK Non-motor insurance
125.9
21.3
7.3
4.6
2.0
0.7
International
227.7
70.8
41.3
25.3
16.7
94.8
31 December 2023
UK Motor
37.5
34.3
22.3
21.2
37.2
271.5
UK Non-motor insurance
115.2
32.2
8.6
5.0
2.9
0.6
International
255.5
57.3
32.7
23.3
17.9
120.0
Financial liabilities
31 December 2024
<1 year
1-3 years
3-5 years
>5 years
£m
£m
£m
£m
Financial liabilities
Subordinated notes1
21.3
42.5
42.5
345.6
Loan backed securities
275.0
407.5
202.5
52.7
Other borrowings
117.4
–
–
–
Trade and other payables2
79.5
0.2
3.1
3.6
Lease liabilities1
7.2
14.6
11.2
51.9
Total financial liabilities
500.4
464.8
259.3
453.8
31 December 2023
<1 year
1-3 years
3-5 years
>5 years
£m
£m
£m
£m
Financial liabilities
Subordinated notes1
79.4
42.5
42.5
366.9
Loan backed securities
258.9
341.6
128.3
30.8
Other borrowings
55.0
–
–
–
Trade and other payables2
303.8
1.9
0.1
–
Lease liabilities1
14.9
15.1
11.5
50.5
Total financial liabilities
712.0
401.1
182.4
448.2
1Maturity analysis has been performed on a cash-settled basis.
2Trade and other payables as at 31 December 2024 exclude deferred income, accruals and other tax and social security of £88.9 million.
A breakdown of the Group’s other borrowings, trade payables and other payables is shown in note 11. The majority of trade
and other payables will mature within three to six months of the balance sheet date.
Admiral Group plc Annual Report and Accounts 2024
211
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Financial assets
The following table analyses the carrying value of financial investments and cash and cash equivalents by contractual maturity,
which can fund the repayment of liabilities as they crystallise, as well as the Group’s other financial assets recognised under IFRS 9.
The Group has disclosed a maturity analysis for financial assets that it holds as part of managing liquidity risk because it considers
that this information is necessary to enable users of financial statements to evaluate the nature and extent of its liquidity risk.
31 December 2024
<1 year
1-3 years
3-5 years
>5 years
£m
£m
£m
£m
Financial investments
Money market and other funds
1,237.9
31.0
67.6
40.0
Derivative financial instruments
(2.2)
0.4
(0.4)
(0.2)
Deposits with credit institutions
91.7
–
–
–
Debt securities
390.5
1,155.5
955.4
834.0
Total financial investments
1,717.9
1,186.9
1,022.6
873.8
Cash and cash equivalents
313.6
–
–
–
Total financial investments and cash
2,031.5
1,186.9
1,022.6
873.8
Insurance, trade and other receivables1
146.7
–
–
–
Loans and advances to customers
265.5
533.7
263.6
44.1
Total financial assets
2,443.7
1,720.6
1,286.2
917.9
1Trade and other receivables as at 31 December 2024 exclude contract assets of £14.8 million.
31 December 2023
<1 year
1-3 years
3-5 years
>5 years
£m
£m
£m
£m
Financial investments
Money market and other funds
888.8
–
–
–
Derivative financial instruments
19.1
(0.6)
(0.9)
–
Deposits with credit institutions
116.7
–
–
–
Debt securities
336.7
1,000.6
754.2
711.4
Total financial investments
1,361.3
1,000.0
753.3
711.4
Cash and cash equivalents
353.1
–
–
–
Total financial investments and cash
1,714.4
1,000.0
753.3
711.4
Insurance, trade and other receivables
347.7
–
–
–
Loans and advances to customers
251.4
439.4
167.1
21.5
Total financial assets
2,313.5
1,439.4
920.4
732.9
The Group’s Directors believe that the cashflows arising from these assets will be consistent with this profile. Liquidity risk is not,
therefore, considered to be significant.
Admiral Group plc Annual Report and Accounts 2024
212
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
3.6.4. Foreign exchange risk
Foreign exchange risk arises from unfavourable movements in foreign exchange rates that could adversely impact the valuation
of overseas assets and liabilities.
The Group is exposed to foreign exchange risk mainly through its operations overseas. Although the relative size of the international
operations means that the risks are relatively small, increasingly volatile foreign exchange rates could result in larger potential gains
or losses. Assets held to fund insurance liabilities are held in the currency of the liabilities; however, surplus assets held as
regulatory capital in foreign currencies remain exposed.
Beyond the overseas operations, the Group is exposed to foreign exchange risk arising through investments denominated in dollars
and euros within its UK subsidiaries. The group mitigates the risk through the application of derivative positions resulting in an
immaterial exposure.
The Group’s exposure to net assets and profits in currencies other than the reporting currency is immaterial other than for US
dollars and euros. The Group’s exposure to net assets held in dollars at the balance sheet date was £9.9 million (2023: £3.9 million);
the exposure to net assets held in euros was £123.4 million (2023: £76.8 million).
If the sterling exchange rates against US dollars had strengthened/weakened by 10%, the Group’s profit before tax for the year
would increase/decrease by £1.2 million (2023: £2.0 million).
If the sterling rates with euros had strengthened/weakened by 10%, the Group’s profit before tax for the year would increase/
decrease by £2.9 million (2023: £1.3 million).
3.7. Concentration of risk
The Directors do not believe there are significant concentrations of insurance risk and/or reserve risk. This is because the risks are
spread across a large number of policies across a wide regional base. The International Insurance, UK Household, UK Travel and UK
Pet businesses further contribute to the diversification of the Group’s insurance risk.
The Group’s placement of reinsurance is diversified such that it is neither dependent on a single reinsurer nor are the operations
of the Group substantially dependent upon any single reinsurance contract.
The tables in note 5f(i) show the concentration of net insurance contract liabilities by product type and geographic area.
As seen in the notes above, there is no significant concentration of market or credit risk given that investments are diversified.
3.8. Objectives, policies and procedures for managing capital
The Group’s capital management policy defines the Board oversight, risk appetite and tier structure of the Group’s capital in addition
to management actions that may be taken in respect of capital, such as dividend payments.
The Group aims to operate a capital-efficient business model by transferring a significant proportion of underwriting risk to
co-insurance and reinsurance partners. This in turn reduces the amount of capital the Group needs to retain to operate and grow
and allows the Group to distribute the majority of its earnings as dividends.
The Board has determined that it will hold capital as follows:
• Sufficient Solvency II Own Funds to meet all of the Group’s Solvency II capital requirements (over a 1 year and ultimate time horizon)
• An additional contingency to cover unforeseen events and losses that could realistically arise. This risk appetite buffer
is assessed via stress testing performed on an annual basis and is calibrated in relation to the one-year regulatory SCR.
The Group’s current risk appetite buffer is 50% above the regulatory SCR.
The Group’s dividend policy is to:
• Pay a normal dividend equal to 65% of post-tax profits for the period
• Pay a special dividend calculated with reference to distributable reserves and surplus capital held above the risk appetite buffer.
This policy gives the Directors flexibility in managing the Group’s capital. Current risk appetite and dividend policy is consistent
with the prior period.
As noted above, the Group’s regulatory capital position is calculated under the Solvency II Framework. The Solvency Capital
Requirement (SCR) is based on the Solvency II Standard Formula, with a capital-add-on to reflect limitations in the Standard
Formula with respect to Admiral’s risk profile (predominately in respect of profit commission arrangements in co-and reinsurance
agreements and risks relating to Periodic Payment Order (PPO) claims).
Admiral Group plc Annual Report and Accounts 2024
213
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Solvency ratio (unaudited)
At the date of this report, the Group’s regulatory solvency ratio, calculated using a capital add-on that has not been subject
to regulatory approval, is 203% (2023: 200%). This includes the recognition of the 2024 final dividend of 121.0 pence per share
(2023: 52.0 pence per share).
The Group’s 2024 Solvency and Financial Condition Report (SFCR) will, when published, disclose a solvency ratio that is calculated
at the balance sheet date rather than annual report date, using the capital add-on that was most recently subject to regulatory
approval. The estimated and unaudited SFCR solvency ratio is 198%, with the reconciliation between this ratio and the 203% noted
above being as follows:
31 December
2024
31 December
2023
£m
£m
Regulatory solvency ratio (estimated and unaudited)
Solvency ratio as reported above
203%
200%
Change in valuation date1
(9%)
(11%)
Other (including impact of updated, unapproved capital add-on)
4%
(6%)
Solvency ratio to be reported (SFCR)
198%
183%
1The solvency ratio reported above includes additional own funds generated post year-end up to the date of this report.
The Group has complied with its regulatory capital requirements throughout the period.
Subsidiaries
The Group manages the capital of its subsidiaries to ensure that all entities within the Group are able to continue as going concerns
and also to ensure that regulated entities meet regulatory requirements with an appropriate risk appetite buffer. Excess capital
above these levels within subsidiaries is paid up to the Group Parent Company in the form of dividends on a regular basis.
4. Operating segments
4a. Accounting policies
(i) Group consolidation
The consolidated financial statements comprise the results and balances of the Company and all entities controlled by the Company,
being its subsidiaries and SPEs (together referred to as the Group), for the year ended 31 December 2024 and comparative figures
for the year ended 31 December 2023. The financial statements of the Company’s subsidiaries and its SPEs are consolidated
in the Group financial statements.
The Company controls 100% of the voting share capital of all its principal subsidiaries, except Admiral Law Limited.
An SPE is fully consolidated into the Group financial statements under IFRS 10, where the Group has control over the SPE.
The Parent Company financial statements present information about the Company as a separate entity and not about its Group.
In accordance with IAS 24, transactions or balances between Group companies that have been eliminated on consolidation
are not reported as related party transactions in the consolidated financial statements.
(ii) Foreign currency translation
Items included in the financial records of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in pounds
sterling, the Group’s presentational currency, rounded to the nearest £0.1 million.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year
end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement.
Non-monetary items measured at cost are translated at their historic rate and non-monetary items held at fair value are translated
using the foreign exchange rate on the date that the fair value was established.
Admiral Group plc Annual Report and Accounts 2024
214
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
The financial statements of foreign operations whose functional currency is not pounds sterling are translated into the Group
presentation currency (pound sterling) as follows:
• Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet
• Income and expenses for each income statement are translated at an average exchange rate (unless this average is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses
are translated at the date of the transaction)
• All resulting exchange differences are recognised in other comprehensive income and in a separate component of equity except
to the extent that the translation differences are attributable to non-controlling interests.
On disposal of a foreign operation, the cumulative amount recognised in equity relating to that particular operation is recognised
in the Income Statement.
4b. Segment reporting
The Group has four reportable segments, as described below. These segments represent the principal split of business that
is regularly reported to the Group’s Board of Directors, which is considered to be the Group’s chief operating decision maker in line
with IFRS 8 Operating Segments.
UK Insurance
The segment consists of the underwriting of Motor, Household, Pet and Travel insurance and other products that supplement these
insurance policies within the UK. It also includes the generation of revenue from additional products and fees from underwriting
insurance in the UK. The Directors consider the results of these activities to be reportable as one segment as the activities carried
out in generating the revenue are not independent of each other and are performed as one business. This mirrors the approach
taken in management reporting.
International Insurance
The segment consists of the underwriting of car and home insurance and the generation of revenue from additional products and
fees from underwriting car insurance outside of the UK. It specifically covers the Group operations Admiral Seguros in Spain, ConTe
in Italy, L’olivier Assurance in France and Elephant Auto in the US. None of these operations are reportable on an individual basis,
based on the threshold requirements in IFRS 8.
Admiral Money
The segment relates to the Admiral Money business launched in 2017, which provides consumer finance and car finance products
in the UK, through the comparison channel, credit scoring applications and direct channels including car dealers and brokers.
Other
The ‘Other’ segment is designed to be comprised of all other operating segments that are not separately reported to the Group’s
Board of Directors and do not meet the threshold requirements for individual reporting. It includes the results of Admiral Pioneer.
Taxes are not allocated across the segments and, as with the corporate activities, are included in the reconciliation to the
Consolidated Income Statement and Consolidated Statement of Financial Position.
An analysis of the Group’s revenue and results for the year ended 31 December 2024, by reportable segment, is shown below.
The accounting policies of the reportable segments are materially consistent with those presented in the notes to the financial
statements for the Group.
Admiral Group plc Annual Report and Accounts 2024
215
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Year ended 31 December 2024
UK
Insurance
£m
International
Insurance
£m
Admiral
Money
£m
Other
£m
Eliminations3
£m
Total
£m
Turnover1
5,108.5
840.0
108.3
89.9
–
6,146.7
Insurance revenue
3,873.4
829.5
–
73.3
–
4,776.2
Insurance revenue net of XoL
3,751.1
794.2
–
65.8
–
4,611.1
Insurance services expenses
(745.7)
(236.5)
–
(33.7)
–
(1,015.9)
Insurance claims net of XoL
(1,952.1)
(564.5)
–
(39.0)
–
(2,555.6)
Quota share reinsurance result
(290.0)
(4.1)
–
–
–
(294.1)
Net movement in onerous loss component
1.1
0.4
–
–
–
1.5
Underwriting result
764.4
(10.5)
–
(6.9)
–
747.0
Net investment income2
70.5
6.1
0.3
0.7
(7.9)
69.7
Net interest income from financial services
–
–
69.3
0.9
6.1
76.3
Net other revenue and operating expenses
141.8
(0.9)
(56.6)
(12.1)
–
72.2
Segment profit/(loss) before tax4
976.7
(5.3)
13.0
(17.4)
(1.8)
965.2
Other central revenue and expenses, including share
scheme charges
(115.0)
Investment and interest income
13.5
Finance costs
(24.5)
Consolidated profit before tax
839.2
Taxation expense
(176.3)
Consolidated profit after tax
662.9
Revenue and results for the corresponding reportable segments for the year ended 31 December 2023 are shown below.
Year ended 31 December 2023
UK
Insurance
£m
International
Insurance
£m
Admiral
Money
£m
Other
£m
Eliminations3
£m
Total
£m
Turnover1
3,776.0
894.9
92.1
48.5
–
4,811.5
Insurance revenue
2,596.8
842.6
–
46.7
–
3,486.1
Insurance revenue net of XoL
2,517.3
811.8
–
44.4
–
3,373.5
Insurance services expenses
(559.6)
(249.4)
–
(27.9)
–
(836.9)
Insurance claims net of XoL
(1,560.2)
(565.2)
–
(33.1)
–
(2,158.5)
Quota share reinsurance result
(18.4)
(22.1)
–
0.1
–
(40.4)
Net movement in onerous loss component
4.3
0.6
–
–
–
4.9
Underwriting result
383.4
(24.3)
–
(16.5)
–
342.6
Net investment income2
55.2
4.3
–
0.3
(3.2)
56.6
Net interest income from financial services
–
–
66.4
0.2
1.5
68.1
Net other revenue and operating expenses
157.9
2.0
(56.2)
(12.4)
–
91.3
Segment profit/(loss) before tax4
596.5
(18.0)
10.2
(28.4)
(1.7)
558.6
Other central revenue and expenses, including share
scheme charges
(101.8)
Investment and interest income
4.6
Finance costs
(18.6)
Consolidated profit before tax
442.8
Taxation expense
(105.6)
Consolidated profit after tax
337.2
1Turnover is an Alternative Performance Measure presented before intra-group eliminations. Refer to the glossary and note 14 for further information.
2Net Investment income is reported net of impairment of financial assets, in line with management reporting.
3Eliminations are in respect of the intra-group interest charges related to the UK Insurance and Admiral Money segment.
4Segment results exclude gross share scheme charges, and any quota share reinsurance recoveries; these net share scheme charges are presented within ‘Other central revenue
and expenses, including share scheme charges’ in line with internal management reporting.
Admiral Group plc Annual Report and Accounts 2024
216
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Segment revenues
The UK and International Insurance reportable segments derive all insurance revenue from external policyholders. Revenue within
these segments is not derived from an individual policyholder that represents 10% or more of the Group’s total revenue.
Revenues from external customers for products and services are consistent with the split of reportable segment revenues.
All material revenues from external customers, and net assets attributed to a foreign country, are shown within the International
Insurance reportable segment shown on the previous pages.
Segment assets and liabilities
The identifiable segment assets and liabilities at 31 December 2024 are as follows:
Year ended 31 December 2024
UK Insurance
International
Insurance
Admiral
Money
Other
Eliminations
Total
£m
£m
£m
£m
£m
£m
Reportable segment assets
5,556.9
1,092.0
1,222.6
363.9
(600.8)
7,634.6
Reportable segment liabilities
(4,185.2)
(990.7)
(1,211.2)
(364.2)
600.8
(6,150.5)
Reportable segment net assets
1,371.7
101.3
11.4
(0.3)
–
1,484.1
Unallocated assets and liabilities
(113.4)
Consolidated net assets
1,370.7
Unallocated assets and liabilities consist of other central assets and liabilities, plus deferred and current corporation tax balances.
These assets and liabilities are not regularly reviewed by the Board of Directors in the reportable segment format.
Eliminations represent inter-segment funding and balances included in insurance and other receivables.
The segment assets and liabilities at 31 December 2023 are as follows:
Year ended 31 December 2023
UK Insurance
International
Insurance
Admiral
Money
Other
Eliminations
Total
£m
£m
£m
£m
£m
£m
Reportable segment assets
5,128.1
1,045.8
980.1
256.5
(610.8)
6,799.7
Reportable segment liabilities
(3,981.6)
(958.3)
(969.2)
(419.7)
610.8
(5,718.0)
Reportable segment net assets
1,146.5
87.5
10.9
(163.2)
–
1,081.7
Unallocated assets and liabilities
(88.9)
Consolidated net assets
992.8
Admiral Group plc Annual Report and Accounts 2024
217
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
5. Insurance Service result
5a. Accounting policies
(i) Insurance, Reinsurance and Co-insurance contracts classification
Under IFRS 17, an insurance contract is defined as a contract under which one party (the insurer) accepts significant insurance risk
from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured
event) adversely affects the policyholder.
Insurance contracts
The Group issues insurance contracts in the normal course of business, under which it accepts significant insurance risk from its
policyholders. As a general guideline, the Group determines whether it has significant insurance risk by comparing benefits payable
after an insured event with benefits payable if the insured event did not occur.
Reinsurance contracts
The Group also enters into both excess of loss (‘XoL’) and quota share reinsurance contracts. A contract is only accounted for as
a reinsurance contract in these financial statements where there is significant insurance risk transfer, after an assessment made
by management based on the terms and conditions of the contracts.
Co-insurance contracts
Co-insurance arrangements are contracts entered into by the Group’s intermediaries, under which insurance risks are shared
on a proportional basis, with the co-insurer taking a specific percentage of premium written and being responsible for the same
proportion of each claim. The co-insurer therefore takes direct insurance risk from the policyholder and is subsequently directly
responsible to the claimant for its proportion of the claim. As the contractual liability is several and not joint, neither the premiums
nor the claims relating to any external co-insurance contract (i.e. outside the group) are included in the income statement.
Under the terms of these arrangements, the co-insurers reimburse the Group for the same proportionate share of the directly
attributable costs in fulfilling the insurance contracts.
(ii) Level of aggregation
IFRS 17 requires an entity to determine the level of aggregation for applying its requirements. The level of aggregation for the Group
is determined firstly by dividing the business written into portfolios, which comprise contracts subject to similar risks and which are
managed together.
The Group’s insurance business is therefore divided into portfolios based on both the product (line of business such as motor,
household etc), and geography (UK, Italy, Spain, France and the US).
IFRS 17 requires a further division of the portfolios into a ‘group’ of contracts (being the lowest unit of account) based on expected
profitability, and also requires that no group contains contracts issued more than one year apart. However, the Group makes an
evaluation of the smallest unit of account, i.e. whether a series of contracts need to be treated together as one unit based on
reasonable and supportable information, or whether a single contract contains components that need to be separated and treated
as if they were stand-alone contracts.
Following the application of the IFRS 17 level of aggregation requirements, each of the Group’s portfolios (which are determined by
geography and line of business) is further disaggregated by year of issue into a group of contracts based on expected profitability
at inception into three categories:
1) A group of contracts that are onerous at initial recognition, if any
2) A group of contracts that at initial recognition have no significant possibility of becoming onerous subsequently, if any
3) A group of the remaining contracts in the portfolio.
Admiral Group plc Annual Report and Accounts 2024
218
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
The Group has elected to group together those contracts that would fall into different groups only because law or regulation
specifically constrains its practical ability to set a different price or level of benefits for policyholders with different characteristics.
To assess the profitability of groups of contracts, the Group determines the appropriate level at which reasonable and supportable
information is available. The Group assumes that no contracts in the portfolio are onerous at initial recognition unless facts and
circumstances indicate otherwise. For contracts that are not onerous, the Group assesses, at initial recognition, that there is no
significant possibility of becoming onerous subsequently by assessing the likelihood of changes in applicable facts and
circumstances. The Group considers facts and circumstances to identify whether a group of contracts are onerous based on:
• Pricing information
• Results of similar contracts it has recognised
• Environmental factors, e.g., a change in market experience or regulations.
The Group divides portfolios of reinsurance contracts held applying the same principles set out above, except that the references
to onerous contracts refer to contracts on which there is a net gain on initial recognition.
Reinsurance contracts held are assessed for aggregation requirements on an individual contract basis. For many of the Group’s
reinsurance contracts held, a group comprises a single contract. The Group reports its reinsurance contracts by portfolio, which
aggregate the contracts by type of reinsurance (e.g. quota share or XoL) and product.
These groups represent the level of aggregation at which insurance contracts issued and reinsurance contracts held are initially
recognised and measured. Such groups are not subsequently reconsidered.
(iii) Recognition, modification and derecognition
Groups of insurance contracts issued are recognised from the earliest of the following:
• The beginning of the coverage period
• The date when the first payment from the policyholder is due or actually received, if there is no due date
• For a group of onerous contracts, when the Group determines that facts and circumstances indicate that the group is onerous.
A group of reinsurance contracts held is entered into from the earlier of:
• The beginning of the coverage period of the group of reinsurance contracts held. However, the Group delays the recognition
of a group of reinsurance contracts held that provide fully proportionate coverage until the date any underlying insurance contract
is initially recognised, if that date is later than the beginning of the coverage period of the group of reinsurance contracts held
• The date the Group recognises an onerous group of underlying insurance contracts if the Group entered into the related
reinsurance contract held in the group of reinsurance contracts held at or before that date.
The Group derecognises an insurance or reinsurance contract when it is:
• Extinguished i.e. when the obligation specified in the insurance contract expires or is discharged or cancelled, or
• The contract is modified such that the modification results in a change in the measurement model or the applicable standard
for measuring a component of the contract, substantially changes the contract boundary, or requires the modified contract
to be included in a different group. In such cases, the Group derecognises the initial contract and recognises the modified
contract as a new contract.
When a modification is not treated as a derecognition, the Group recognises amounts paid or received for the modification with
the contract as an adjustment to the relevant liability for remaining coverage.
Admiral Group plc Annual Report and Accounts 2024
219
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
(iv) Contract boundary
The Group includes in the measurement of a group of insurance contracts all the future cashflows within the boundary of each
contract in the group. Cashflows are within the boundary of an insurance contract if they arise from substantive rights and
obligations that exist during the reporting period in which the Group can compel the policyholder to pay the premiums, or in which
the Group has a substantive obligation to provide the policyholder with insurance contract services. A substantive obligation
to provide insurance contract services ends when:
• The Group has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or level
of benefits that fully reflects those risks, or
• Both of the following criteria are satisfied:
1. The Group has the practical ability to reassess the risks of the portfolio of insurance contracts that contain the contract and,
as a result, can set a price or level of benefits that fully reflects the risk of that portfolio
2. The pricing of the premiums up to the date when the risks are reassessed does not take into account the risks that relate
to periods after the reassessment date.
A liability or asset relating to expected premiums or claims outside the boundary of the insurance contract is not recognised.
Such amounts relate to future insurance contracts. In assessing the practical ability to reprice, risks transferred from the
policyholder to the Group, such as insurance risk and financial risk, are considered; other risks, such as lapse or surrender risk,
are not included.
For groups of reinsurance contracts held, cashflows are within the contract boundary if they arise from substantive rights and
obligations of the Group that exist during the reporting period in which the Group is compelled to pay amounts to the reinsurer
or in which the Group has a substantive right to receive services from the reinsurer.
(v) Presentation
The Group presents separately, in the Statement of Financial Position, the carrying amount of portfolios of insurance contracts
issued that are assets, portfolios of insurance contracts issued that are liabilities, portfolios of reinsurance contracts held that
are assets and portfolios of reinsurance contracts held that are liabilities.
The Group disaggregates the total amount recognised in the Consolidated Income Statement and Consolidated Statement of Other
Comprehensive Income into an insurance service result, comprising insurance revenue and insurance service expense, and
insurance finance income or expenses.
The Group separately presents income or expenses from reinsurance contracts held from the expenses or income from insurance
contracts issued. This is presented as one single amount in the Consolidated Income Statement, with additional disclosure provided
in the notes to the financial statements.
Admiral Group plc Annual Report and Accounts 2024
220
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
(vi) Measurement
Accounting policy choices
Area
IFRS 17 options
Adopted approach
Premium allocation
approach (‘PAA’)
eligibility
Subject to specified criteria, the PAA can
be adopted as a simplified approach to the
IFRS 17 general model.
Coverage period for the Group’s insurance
contracts assumed is one year or less and so
qualifies automatically for PAA.
Reinsurance contracts (both XoL and quota share)
include contracts with a coverage period greater
than one year. However, there is no material
difference in the measurement of the asset for
remaining coverage between PAA and the general
model, therefore these qualify for PAA.
Insurance acquisition
cashflows for insurance
contracts issued
Where the coverage period of all contracts
within a group is not longer than one year,
insurance acquisition cashflows can either be
expensed as incurred, or allocated, using a
systematic and rational method, to groups of
insurance contracts (including future groups
containing insurance contracts that are
expected to arise from renewals) and then
amortised over the coverage period of the
related group. For groups containing contracts
longer than one year, insurance acquisition
cashflows must be allocated to related groups
of insurance contracts and amortised over the
coverage period of the related group.
The Group’s insurance contracts are all one year
or less. The Group has therefore taken the option
to expense acquisition costs as incurred.
Liability for Remaining
Coverage (‘LRC’),
adjusted for financial
risk and time value of
money
Where there is no significant financing
component in relation to the LRC, or where
the time between providing each part of the
services and the related premium due date is
no more than a year, an entity is not required
to make an adjustment for accretion of
interest on the LRC.
There is no allowance made for accretion of
interest on the LRC given that the premiums are
received within one year of the coverage period.
Liability for Incurred
Claims (‘LIC’) adjusted
for time value of money
For PAA groups, where claims or directly
attributable insurance expenses are expected
to be paid within a year of the date that the
claim is incurred, it is not required to adjust
these amounts for the time value of money.
For some claims, for example within the travel
product line in the UK, and other immaterial
product lines across the Group, the incurred claims
are expected to be paid out in less than one year.
Similarly, the majority of directly attributable
insurance expenses are expected to be settled
within one year. For these claims and expenses,
no adjustment is made for the time value of money.
In addition, given the impact of discounting
outstanding claims in the Group’s US insurance
operation is immaterial, no discounting has been
applied.
For all other business, the LIC is adjusted for the
time value of money.
Insurance finance
income and expense
There is an option to disaggregate part of
the movement in the LIC, LRC, AIC and ARC
resulting from changes in discount rates,
and present this in Other Comprehensive
Income (‘OCI’).
The impact on LIC, LRC, AIC and ARC of changes
in discount rates will be captured within OCI, in line
with the accounting for assets backing the
insurance claims liabilities.
Interim reporting
Where an entity is required to apply IAS 34
(as for the Group) there is an option as to
whether to choose a ‘year-to-date’ basis or
a “period to date” basis for financial reporting.
The Group has opted to apply the option to use
year-to-date accounting for interim reporting.
Admiral Group plc Annual Report and Accounts 2024
221
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Fulfilment cashflows within the contract boundary
The fulfilment cashflows (‘FCF’) are the current estimates of the future cashflows within the contract boundary of a group
of contracts that the Group expects to collect from premiums and pay out for claims, benefits and expenses, adjusted to reflect
the timing and the uncertainty of those amounts. The estimates of future cashflows:
• Are based on a probability weighted mean of the full range of possible outcomes
• Are determined from the perspective of the Group, provided the estimates are consistent with observable market prices
for market variables
• Reflect conditions existing at the measurement date.
In estimating future cashflows, the Group incorporates, in an unbiased way, all reasonable and supportable information that is
available without undue cost or effort at the reporting date. This information includes both internal and external historical data about
claims and other experience, updated to reflect current expectations of future events. The estimates of future cashflows reflect the
Group’s view of current conditions at the reporting date, as long as the estimates of any relevant market variables are consistent
with observable market prices.
An explicit risk adjustment for non-financial risk is estimated separately from the other estimates.
For the Group’s contracts which are measured under the PAA, unless the contracts are onerous, the explicit risk adjustment
for non-financial risk is only estimated and included within the measurement of the liability for incurred claims.
Risk of the Group’s non-performance is not included in the measurement of groups of insurance contracts issued. In the
measurement of reinsurance contracts held, the probability weighted estimates of the present value of future cashflows include
potential credit losses and other disputes of the reinsurer to reflect the non-performance risk of the reinsurer.
The Group estimates certain fulfilment cashflows at the portfolio level or higher and then allocates such estimates to groups
of contracts.
The Group uses consistent assumptions to measure the estimates of the present value of future cashflows for the group
of reinsurance contracts held and such estimates for the groups of underlying insurance contracts.
Discount rates
A bottom-up approach has been applied in the determination of discount rates. Under this approach, the discount rate is
determined as the risk-free yield adjusted for differences in liquidity characteristics between the financial assets used to derive
the risk-free yield and the relevant liability cashflows (known as an illiquidity premium).
A separate risk-free yield is obtained for each currency, where a material amount of business is written in that currency. The risk-
free yield curve is obtained using rates published by the Prudential Regulation Authority (PRA) for the UK insurance business, whilst
for AECS the EIOPA risk free term structures are used. These curves are available from October 2015 and provides rates for terms
up to 150 years.
For periods prior to October 2015, observable market data is available for terms up to 25 years for GBP (30 years for EUR).
For terms that aren’t directly observable from market data, the Smith-Wilson approach is used to derive the rates which
extrapolates between the observable data and an assumed ultimate forward rate. The Smith-Wilson approach is used to derive
the published Solvency II yield curves, which supports consistency over time.
Similarly to the approach to risk-free rates, an illiquidity premium will be set by currency. The illiquidity premium is determined
by management considering various internal benchmarks. This includes considering the cost of liquidity for the Group (through
its Revolving Credit Facilities), by deducting the risk-free rate and credit risk premium from a corporate bond reference portfolio,
and by deducting public market yields from similarly rated private market yields. Each method points to a different mathematical
result and judgement is applied when determining the illiquidity premium.  
The following weighted average rates, based on the yield curves derived using the above methodology, were used to discount the
liability for incurred claims at the end of the current and prior periods:
31 December 2024
31 December 2023
1 year
3 years
5 years
10 years
1 year
3 years
5 years
10 years
UK Insurance
5.0%
4.7%
4.5%
4.6%
5.4%
4.3%
4.0%
3.9%
International
(European motor)
2.7%
2.6%
2.6%
2.8%
4.0%
3.1%
3.0%
3.0%
Generally, the illiquidity premium is expected to be stable over time and re-assessment of the assumption will be triggered by
significant changes in internal illiquidity benchmarks and/or changes in the illiquidity of the liabilities (e.g. claims mix). Quantitative
analysis will be performed when the illiquidity premium changes, including performing sensitivity analysis on the assumption.
Admiral Group plc Annual Report and Accounts 2024
222
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Insurance revenue
The insurance revenue for the period is comprised of the amount of expected premium receipts (excluding any investment
component) allocated to the period. The Group allocates the expected premium receipts to each period of insurance contract
services on the basis of the passage of time. However, if the expected pattern of release of risk during the coverage period differs
significantly from the passage of time, for example due to seasonality of claims, then the allocation is made on the basis of the
expected timing of incurred insurance service expenses. For the periods presented, all insurance premium revenue has been
recognised based on the passage of time. If a change in allocation is necessary due to a change of facts and circumstances,
the change is accounted for prospectively as a change in accounting estimate.
The Group’s insurance revenue is comprised of the following component parts:
• Insurance premium revenue: Insurance premium revenue reflects the expected premium receipts allocated to the period based
on the passage of time, adjusted for seasonality if required. It excludes any additional income that arises from the writing of the
insurance contract that is presented as part of insurance revenue as set out below.
• Instalment income: In contrast to IFRS 4, instalment income related to the risk attaching part of the premium that is retained
within the Group is recognised as part of the insurance revenue cashflows due to it being considered non-distinct from the
underlying insurance policy, as set out in note 2 to the financial statements.
• Administration fees: Administration fees are costs charged to the customer for arranging a change to their policy.
The performance obligation is the change in a customer’s policy and given that the obligation related to activities that are
required to fulfil the insurance contract and the policyholder cannot benefit from the service by itself, it is considered as part of
fulfilment cashflows, i.e., the full transaction price is therefore recognised as part of insurance revenue on a point in time basis.
IFRS 17 does not require separate insurance revenue analysis for insurance contracts measured under PAA. See Appendix 1 and
note 14 for further information regarding the disaggretation of insurance revenue.
As stated in note 2, the Group has excluded any instalment income and administration fees from insurance revenue derived from
the proportion of insurance coverage under the co-insurance arrangements where the Group bears no risks. Please see note 8a for
the treatment of the co-insurance share retained by the group of instalment income and administration fees.
Insurance service expenses
The following elements are included in insurance service expenses:
• Incurred claims and benefits excluding investment components
• Other incurred directly attributable insurance service expenses, including administration (such as employee costs, depreciation
and amortisation) and acquisition expenses, and share scheme expenses that are attributable to insurance services
• Changes that relate to past service (i.e. changes in the fulfilment cashflows relating to the Liability for Incurred Claims)
• Changes that relate to future service (i.e. losses/reversals on onerous groups of contracts from changes in the loss components).
Only items that reflect insurance service expenses (i.e. incurred claims and other insurance service expenses arising from insurance
contracts the Group issues) are reported as insurance expenses. Cashflows that are not directly attributable to a portfolio of insurance
contracts, such as some product development and training costs, are recognised in other operating expenses as incurred.
The total costs incurred in relation to the co-insurance share of insurance business are presented within other operating expenses,
as is the reimbursement of these costs, given that they are not related to the costs directly attributable to fulfilling the Group’s
insurance contracts.
Non-cash costs that are directly attributable, such as depreciation, amortisation and IFRS 2 equity-settled share scheme costs,
are recognised within insurance service expenses; these are transferred out of the LIC into the appropriate Financial Statement line
item for presentation in the Statement of Financial Position.
Reinsurance net expense/income
The Group has presented the income or expenses from a group of reinsurance contracts held separately from insurance finance
income or expenses as a single amount and has provided in the disclosure note a separate analysis of the amounts recovered from
the reinsurer and an allocation of the premiums paid that together give a net amount equal to that single amount.
As part of its quota share arrangements, the Group typically recovers either a set ceding commission, or the quota share reinsurer’s
proportional share of the expenses that are incurred in fulfilling the insurance contracts.
These amounts are typically settled net with the premium charged and are not contingent on claims. As a result, under IFRS 17 the
expenses and ceding commissions recovered are considered to reflect a reduction in the transaction price equivalent to charging
a lower premium (with no corresponding ceding commission or expense recovery).
In addition, as set out in note 3 to these financial statements, where the reinsurance arrangements result in a “minimum recovery”
from the reinsurer due to profit commission or sliding scale commission arrangements that is not contingent on claims, and the
amount is not settled ‘net’ with premium, the minimum recovery is treated as a non-distinct investment component.
Admiral Group plc Annual Report and Accounts 2024
223
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
As a result, the Group treats reinsurance cashflows that are contingent on claims on the underlying contracts as part of the claims
that are expected to be reimbursed under the reinsurance contract held, and excludes non-distinct investment components and
commissions from the allocation of reinsurance premiums presented in the notes to the financial statements.
Insurance finance income and expense
Insurance finance income or expenses comprise the change in the carrying amount of the group of insurance contracts arising from:
1. The effect of the time value of money and changes in the time value of money
2. The effect of financial risk and changes in financial risk.
The Group has taken the option to disaggregate insurance finance income or expenses on insurance contracts issued between
the Consolidated Income Statement and the Consolidated Statement of Other Comprehensive Income.
As a result, applying the premium allocation approach, claims incurred are discounted at the date of initial recognition and the
finance expense recognised in the Consolidated Income Statement reflects the unwind of this discounting, at the locked in discount
rate, over the expected payment period. The same approach is taken for reinsurance claims assets. Discounting on the liability and
asset for remaining coverage only occurs in the case of the recognition of an onerous loss component (and related loss-recovery
component) and as a result is not material.
The impact of changes in market interest rates on the value of the insurance assets and liabilities are reflected in Other
Comprehensive Income in order to minimise accounting mismatches between the accounting for financial assets and insurance
assets and liabilities. The Group’s financial assets backing the insurance portfolios are predominantly measured at Fair Value
through Other Comprehensive Income (‘FVOCI’).
Insurance contracts: Liability for remaining coverage
Initial measurement
For a group of contracts that is not onerous at initial recognition, the Group measures the liability for remaining coverage as:
• The premiums, if any, received at initial recognition
• Any other asset or liability previously recognised for cashflows related to the group of contracts that the Group pays or receives
before the group of insurance contracts is recognised.
The Group recognises any insurance premium tax collected in relation to the premiums received as part of the premium receipts,
but given it is acting as an agent, these taxes are not included as either insurance revenue or an insurance expense. Any
outstanding insurance premium tax liability is presented within the liability for remaining coverage until paid.
There is no allowance for time value of money as the premiums are received within one year of the coverage period.
Where facts and circumstances indicate that contracts are onerous at initial recognition, the onerous contracts are separately
grouped from other contracts and a loss is recognised in the Consolidated Income Statement for the net outflow, resulting in the
carrying amount of the liability for the group being equal to the fulfilment cashflows. A loss component is established by the Group
for the liability for remaining coverage for such onerous group depicting the losses recognised.
Subsequent measurement
The Group measures the carrying amount of the liability for remaining coverage at the end of each reporting period as
• The liability for remaining coverage at the beginning of the period; plus
• Premiums received in the period; minus
• The amount recognised as insurance revenue for the services provided in the period; minus
• Payments to the tax authorities in respect of premium receipts.
The onerous loss component is re-measured over the coverage period so that at the end of the coverage period, it is reduced
to £nil.
Insurance contracts: Liability for incurred claims
The Group estimates the liability for incurred claims as the fulfilment cashflows related to incurred claims, including any creditors
related to directly attributable insurance expenses. The liability for incurred claims also includes an explicit adjustment for non-
financial risk (the risk adjustment).
Admiral Group plc Annual Report and Accounts 2024
224
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Reinsurance contracts held
Initial measurement
The Group measures its reinsurance assets for a group of reinsurance contracts that it holds on the same basis as insurance
contracts that it issues. However, they are adapted to reflect the features of reinsurance contracts held that differ from insurance
contracts issued.
Where the Group recognises a loss on initial recognition of an onerous group of underlying insurance contracts or when further
onerous underlying insurance contracts are added to a group, the Group establishes a loss-recovery component of the asset
for remaining coverage for a group of reinsurance contracts held depicting the recovery of losses. The Group calculates the loss-
recovery component by multiplying the loss recognised on the underlying insurance contracts and the percentage of claims
on the underlying insurance contracts the Group expects to recover from the group of reinsurance contracts held. The Group
uses a systematic and rational method to determine the portion of losses recognised on the group of insurance contracts covered
by the reinsurance contracts held, in the case that there is partial coverage of underlying insurance contracts by reinsurance
contracts. The loss-recovery component adjusts the carrying amount of the asset for remaining coverage.
The risk adjustment for non-financial risk is the amount of risk being transferred by the Group to the reinsurer and is calculated with
reference to the gross risk adjustment, adjusted for any excess of loss risk adjustment, as required.
Subsequent measurement
The subsequent measurement of reinsurance contracts held follows the same principles as those for insurance contracts issued
and has been adapted to reflect the specific features and terms and conditions of the reinsurance contracts held. In addition,
changes in the fulfilment cashflows that arise from changes in the risk of non-performance of the reinsurer are reflected within
net expenses from reinsurance contracts held within the income statement.
Where the Group has established a loss-recovery component, the Group subsequently reduces the loss recovery component
to zero in line with reductions in the onerous group of underlying insurance contracts in order to reflect that the loss-recovery
component shall not exceed the portion of the carrying amount of the loss component of the onerous group of underlying insurance
contracts that the entity expects to recover from the group of reinsurance contracts held.
The extinguishment or commutation of a reinsurance arrangement results in a derecognition of any reinsurance assets or liabilities
related to the commuted contract from the balance sheet, so that the Group retains the full future risk of claims development.
As a result of commutation, any difference arising between the present carrying value of reinsurance assets or liabilities and the
cash settlement is recognised in the Consolidated Income Statement.
5b. Insurance revenue
Insurance revenue for the corresponding reportable segments for the period ended 31 December 2024 are shown below.
31 December 2024
UK Motor
£m
UK Non-motor
£m
Int. Insurance
£m
Other
£m
Total Group
£m
Insurance revenue related movement in liability for
remaining coverage
3,369.5
503.9
829.5
73.3
4,776.2
Insurance revenue for the corresponding reportable segments for the period ended 31 December 2023 are shown below.
31 December 2023
UK Motor
£m
UK Non-motor
£m
Int. Insurance
£m
Other
£m
Total Group
£m
Insurance revenue related movement in liability for
remaining coverage
2,250.2
346.6
842.6
46.7
3,486.1
The Group’s share of its insurance business was underwritten by Admiral Insurance (Gibraltar) Limited, Admiral Insurance Company
Limited, Admiral Europe Compañia Seguros (‘AECS’) and Elephant Insurance Company. The majority of contracts are short term
in duration, lasting for between 6 and 12 months.
Admiral Group plc Annual Report and Accounts 2024
225
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
5c. Insurance service expenses
Insurance service expenses for the corresponding reportable segments for the period ended 31 December 2024 are shown below.
31 December 2024
UK Motor
£m
UK Non-motor
£m
Int. Insurance
£m
Other
£m
Total Group
£m
Incurred claims
Claims incurred in the period
2,107.2
298.2
583.7
48.9
3,038.0
Changes to liabilities for incurred claims
(496.1)
(51.4)
(11.1)
(1.3)
(559.9)
Total incurred claims
1,611.1
246.8
572.6
47.6
2,478.1
Movement in onerous contracts
(5.1)
0.1
(0.1)
–
(5.1)
Directly attributable expenses
Administration expenses
461.5
113.7
175.2
18.7
769.1
Acquisition expenses
125.3
45.2
61.3
15.0
246.8
Insurance expenses
586.8
158.9
236.5
33.7
1,015.9
Share scheme expenses
40.7
5.4
11.1
1.4
58.6
Total insurance expenses including share scheme expenses
627.5
164.3
247.6
35.1
1,074.5
Total Insurance service expenses
2,233.5
411.2
820.1
82.7
3,547.5
Insurance service expenses for the corresponding reportable segments for the period ended 31 December 2023 are shown below.
31 December 2023
UK Motor
£m
UK Non-motor
£m
Int. Insurance
£m
Other
£m
Total Group
£m
Incurred claims
Claims incurred in the period
1,755.5
255.0
618.2
36.4
2,665.1
Changes to liabilities for incurred claims
(406.9)
(9.1)
(21.3)
(3.3)
(440.6)
Total incurred claims
1,348.6
245.9
596.9
33.1
2,224.5
Movement in onerous contracts
(18.6)
(2.4)
(2.4)
–
(23.4)
Directly attributable expenses
Administration expenses
377.8
73.5
184.0
19.0
654.3
Acquisition expenses
73.4
34.8
65.4
8.9
182.5
Insurance expenses
451.2
108.3
249.4
27.9
836.8
Share scheme expenses
43.2
2.4
8.9
0.8
55.3
Total insurance expenses including share scheme expenses
494.4
110.7
258.3
28.7
892.1
Total Insurance service expenses
1,824.4
354.2
852.8
61.8
3,093.2
Admiral Group plc Annual Report and Accounts 2024
226
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
5d. Net expenses from reinsurance contracts held
Net expenses from reinsurance contracts held for the corresponding reportable segments for the period ended 31 December 2024
are shown below.
31 December 2024
UK Motor
£m
UK Non-motor
£m
Int. Insurance
£m
Other
£m
Total Group
£m
Allocation of reinsurance premiums
145.8
45.8
153.9
7.6
353.1
Amounts recoverable from reinsurers for incurred insurance
service expenses
Incurred claims
(29.2)
3.1
(275.9)
(8.5)
(310.5)
Changes to liabilities for incurred claims
291.6
34.3
146.3
–
472.2
Net expense from reinsurance contracts excluding
movement in onerous loss component
408.2
83.2
24.3
(0.9)
514.8
Other reinsurance recoveries including movement in onerous
loss component
4.0
(0.1)
(0.3)
–
3.6
Net expenses/(income) from reinsurance contracts held
412.2
83.1
24.0
(0.9)
518.4
Net expenses from reinsurance contracts held for the corresponding reportable segments for the period ended 31 December 2023
are shown below.
31 December 2023
UK Motor
£m
UK Non-motor
£m
Int. Insurance
£m
Other
£m
Total Group
£m
Allocation of reinsurance premiums
93.6
49.5
190.0
2.2
335.3
Amounts recoverable from reinsurers for incurred insurance
service expenses
Incurred claims
(173.8)
(52.0)
(270.3)
–
(496.1)
Changes to liabilities for incurred claims
135.1
(1.4)
95.9
(0.1)
229.5
Net expense from reinsurance contracts excluding
movement in onerous loss component
54.9
(3.9)
15.6
2.1
68.7
Other reinsurance recoveries including movement in loss
recovery component
14.5
2.2
1.7
–
18.4
Net expenses/(income) from reinsurance contracts held
69.4
(1.7)
17.3
2.1
87.1
5e. Finance expenses /(income) from insurance contracts held and reinsurance contracts issued
£m
31 December
2024
31 December
2023
Amounts recognised through the income statement
Insurance finance expenses from insurance contracts issued
128.4
94.5
Insurance finance income from reinsurance contracts held
(35.9)
(28.9)
Net finance expense from insurance / reinsurance contracts issued
92.5
65.6
£m
31 December
2024
31 December
2023
Insurance finance reserve
Insurance finance reserve – insurance contracts
119.0
111.1
Deferred tax in relation to insurance finance reserve - insurance contracts
(18.6)
(13.5)
Insurance finance reserve – reinsurance contracts
(32.4)
(35.7)
Deferred tax in relation to insurance finance reserve - reinsurance contracts
4.7
3.4
Total insurance finance reserve
72.7
65.3
See note 6b for details of the relationship between finance (expenses)/ income from insurance contracts held and reinsurance
contracts issued, and investment return.
Admiral Group plc Annual Report and Accounts 2024
227
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
5f. Insurance Liabilities and Reinsurance assets
(i) Analysis of recognised amounts
Year ended 31 December 2024
Year ended 31 December 2023
£m
Liability for
remaining
coverage
Liability for
incurred claims
Total
Liability for
remaining
coverage
Liability for
incurred claims
Total
Insurance contracts issued
UK Motor
883.3
2,691.1
3,574.4
769.0
2,546.7
3,315.7
UK Non-motor
195.3
214.7
410.0
136.2
217.5
353.7
International Motor
201.4
690.2
891.6
221.0
641.5
862.5
Other
8.6
76.8
85.4
3.5
46.3
49.8
Total insurance contracts issued
1,288.6
3,672.8
4,961.4
1,129.7
3,452.0
4,581.7
Asset/(liability)
for remaining
coverage
Asset for
incurred claims
Total
Asset/(liability)
for remaining
coverage
Asset for
incurred claims
Total
Reinsurance contracts held
UK Motor
34.0
236.5
270.5
23.1
496.8
519.9
UK Non-Motor
11.2
173.5
184.7
21.4
170.2
191.6
International Motor
43.1
481.5
524.6
(21.0)
502.8
481.8
Other
(0.1)
8.9
8.8
(1.4)
–
(1.4)
Total reinsurance contracts held
88.2
900.4
988.6
22.1
1,169.8
1,191.9
Liability/(asset)
for remaining
coverage
Liability/(asset)
for incurred
claims
Total
Liability/(asset)
for remaining
coverage
Liability/(asset)
for incurred
claims
Total
Net
UK Motor
849.3
2,454.6
3,303.9
745.9
2,049.9
2,795.8
UK Non-Motor
184.1
41.2
225.3
114.8
47.3
162.1
International Motor
158.3
208.7
367.0
242.0
138.7
380.7
Other
8.7
67.9
76.6
4.9
46.3
51.2
Total insurance contracts issued
1,200.4
2,772.4
3,972.8
1,107.6
2,282.2
3,389.8
Admiral Group plc Annual Report and Accounts 2024
228
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
(ii) Roll-forward of net asset or liability for insurance contracts issued
UK Motor
The following tables reconcile the opening and closing balances of the LRC and LIC for UK Motor.
Liability for remaining coverage
Liability for incurred claims
2024
Excluding
loss
component
Loss
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(766.0)
(3.0)
(769.0)
(2,202.8)
(343.9)
(2,546.7)
(3,315.7)
Net opening balance
(766.0)
(3.0)
(769.0)
(2,202.8)
(343.9)
(2,546.7)
(3,315.7)
Insurance revenue
3,369.5
–
3,369.5
–
–
–
3,369.5
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(2,548.7)
(186.0)
(2,734.7)
(2,734.7)
Changes to liabilities for
incurred claims
–
–
–
343.4
152.7
496.1
496.1
Losses and reversals of losses on
onerous contracts
–
5.1
5.1
–
–
–
5.1
Insurance service result
3,369.5
5.1
3,374.6
(2,205.3)
(33.3)
(2,238.6)
1,136.0
Insurance finance income/
(expense) recognised in
profit or loss
–
(2.4)
(2.4)
(86.5)
(15.3)
(101.8)
(104.2)
Insurance finance income/
(expense) recognised in OCI
–
0.3
0.3
16.2
2.2
18.4
18.7
Total changes in comprehensive
income
3,369.5
3.0
3,372.5
(2,275.6)
(46.4)
(2,322.0)
1,050.5
Other changes
35.9
–
35.9
79.3
–
79.3
115.2
Cashflows
Premiums received
(3,522.7)
–
(3,522.7)
–
–
–
(3,522.7)
Claims and other insurance service
expenses paid
–
–
–
2,098.3
–
2,098.3
2,098.3
Other movements
–
–
–
–
–
–
–
Total cashflows
(3,522.7)
–
(3,522.7)
2,098.3
–
2,098.3
(1,424.4)
Net closing balance
(883.3)
–
(883.3)
(2,300.8)
(390.3)
(2,691.1)
(3,574.4)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(883.3)
–
(883.3)
(2,300.8)
(390.3)
(2,691.1)
(3,574.4)
Admiral Group plc Annual Report and Accounts 2024
229
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Liability for remaining coverage
Liability for incurred claims
2023
Excluding
loss
component
Loss
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(534.1)
(8.1)
(542.2)
(1,984.5)
(426.6)
(2,411.1)
(2,953.3)
Net opening balance
(534.1)
(8.1)
(542.2)
(1,984.5)
(426.6)
(2,411.1)
(2,953.3)
Insurance revenue
2,250.2
–
2,250.2
–
–
–
2,250.2
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(2,105.1)
(144.8)
(2,249.9)
(2,249.9)
Changes to liabilities for
incurred claims
–
–
–
140.1
266.8
406.9
406.9
Losses and reversals of losses on
onerous contracts
–
18.6
18.6
–
–
–
18.6
Insurance service result
2,250.2
18.6
2,268.8
(1,965.0)
122.0
(1,843.0)
425.8
Insurance finance income/
(expense) recognised in
profit or loss
–
(4.1)
(4.1)
(59.0)
(12.3)
(71.3)
(75.4)
Insurance finance income/
(expense) recognised in OCI
–
(9.4)
(9.4)
(60.5)
(27.0)
(87.5)
(96.9)
Total changes in comprehensive
income
2,250.2
5.1
2,255.3
(2,084.5)
82.7
(2,001.8)
253.5
Other changes1
–
–
64.0
–
64.0
64.0
Cashflows
Premiums received
(2,482.1)
–
(2,482.1)
–
–
–
(2,482.1)
Claims and other insurance service
expenses paid1
–
–
–
1,802.2
–
1,802.2
1,802.2
Other movements
–
–
–
–
–
–
–
Total cashflows
(2,482.1)
–
(2,482.1)
1,802.2
–
1,802.2
(679.9)
Net closing balance
(766.0)
(3.0)
(769.0)
(2,202.8)
(343.9)
(2,546.7)
(3,315.7)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(766.0)
(3.0)
(769.0)
(2,202.8)
(343.9)
(2,546.7)
(3,315.7)
1Claims paid and other changes have been re-presented to separately present the transfer of non-cash insurance service expenses,  (primarily depreciation, amortisation and IFRS 2
equity-settled share based payments), out of the LIC.  There is no impact on the closing balance.
Admiral Group plc Annual Report and Accounts 2024
230
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
UK Non-motor Insurance
The following tables reconcile the opening and closing balances of the LRC and LIC for other UK insurance (UK Household,
Pet and Travel).
Liability for remaining coverage
Liability for incurred claims
2024
Excluding
loss
component
Loss
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(136.2)
–
(136.2)
(193.6)
(23.9)
(217.5)
(353.7)
Net opening balance
(136.2)
–
(136.2)
(193.6)
(23.9)
(217.5)
(353.7)
Insurance revenue
503.9
–
503.9
–
–
–
503.9
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(444.8)
(17.7)
(462.5)
(462.5)
Changes to liabilities for
incurred claims
–
–
–
32.6
18.8
51.4
51.4
Losses and reversals of losses on
onerous contracts
–
–
–
–
(0.2)
(0.2)
(0.2)
Insurance service result
503.9
–
503.9
(412.2)
0.9
(411.3)
92.6
Insurance finance income/
(expense) recognised in
profit or loss
–
–
–
(8.0)
(0.9)
(8.9)
(8.9)
Insurance finance income/
(expense) recognised in OCI
–
–
–
0.1
–
0.1
0.1
Total changes in comprehensive
income
503.9
–
503.9
(420.1)
–
(420.1)
83.8
Other changes
–
–
–
14.9
–
14.9
14.9
Cashflows
Premiums received
(563.0)
–
(563.0)
–
–
–
(563.0)
Claims and other insurance service
expenses paid
–
–
–
408.0
–
408.0
408.0
Other movements
–
–
–
–
–
–
–
Total cashflows
(563.0)
–
(563.0)
408.0
–
408.0
(155.0)
Net closing balance
(195.3)
–
(195.3)
(190.8)
(23.9)
(214.7)
(410.0)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(195.3)
–
(195.3)
(190.8)
(23.9)
(214.7)
(410.0)
Admiral Group plc Annual Report and Accounts 2024
231
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Liability for remaining coverage
Liability for incurred claims
2023
Excluding
loss
component
Loss
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(100.9)
(0.1)
(101.0)
(141.2)
(25.5)
(166.7)
(267.7)
Net opening balance
(100.9)
(0.1)
(101.0)
(141.2)
(25.5)
(166.7)
(267.7)
Insurance revenue
346.6
–
346.6
–
–
–
346.6
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(363.6)
(2.1)
(365.7)
(365.7)
Changes to liabilities for
incurred claims
–
–
–
4.3
4.8
9.1
9.1
Losses and reversals of losses on
onerous contracts
–
2.4
2.4
–
–
–
2.4
Insurance service result
346.6
2.4
349.0
(359.3)
2.7
(356.6)
(7.6)
Insurance finance income/
(expense) recognised in
profit or loss
–
–
–
(5.4)
(0.9)
(6.3)
(6.3)
Insurance finance income/
(expense) recognised in OCI
–
(2.3)
(2.3)
(1.4)
(0.2)
(1.6)
(3.9)
Total changes in comprehensive
income
346.6
0.1
346.7
(366.1)
1.6
(364.5)
(17.8)
Other changes1
–
–
–
6.7
–
6.7
6.7
Cashflows
Premiums received
(381.9)
–
(381.9)
–
–
–
(381.9)
Claims and other insurance service
expenses paid1
–
–
–
307.0
–
307.0
307.0
Other movements
–
–
–
–
–
–
–
Total cashflows
(381.9)
–
(381.9)
307.0
–
307.0
(74.9)
Net closing balance
(136.2)
–
(136.2)
(193.6)
(23.9)
(217.5)
(353.7)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(136.2)
–
(136.2)
(193.6)
(23.9)
(217.5)
(353.7)
1Claims paid and other changes have been re-presented to separately present the transfer of non-cash insurance service expenses,  (primarily depreciation, amortisation and IFRS 2
equity-settled share based payments), out of the LIC.  There is no impact on the closing balance.
Admiral Group plc Annual Report and Accounts 2024
232
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
International Insurance
The following tables reconcile the opening and closing balances of the LRC and LIC for International Insurance.
Liability for remaining coverage
Liability for incurred claims
2024
Excluding
loss
component
Loss
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(218.1)
(2.9)
(221.0)
(565.5)
(76.0)
(641.5)
(862.5)
Net opening balance
(218.1)
(2.9)
(221.0)
(565.5)
(76.0)
(641.5)
(862.5)
Insurance revenue
829.5
–
829.5
–
–
–
829.5
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(770.7)
(60.6)
(831.3)
(831.3)
Changes to liabilities for
incurred claims
–
–
–
(50.1)
61.2
11.1
11.1
Losses and reversals of losses on
onerous contracts
–
0.1
0.1
–
–
–
0.1
Insurance service result
829.5
0.1
829.6
(820.8)
0.6
(820.2)
9.4
Insurance finance income/
(expense) recognised in
profit or loss
–
–
–
(12.7)
(2.4)
(15.1)
(15.1)
Insurance finance income/
(expense) recognised in OCI
–
(0.1)
(0.1)
(7.8)
(0.9)
(8.7)
(8.8)
Foreign exchange impact
9.3
(0.1)
9.2
21.3
3.2
24.5
33.7
Total changes in comprehensive
income
838.8
(0.1)
838.7
(820.0)
0.5
(819.5)
19.2
Other changes
11.3
–
11.3
17.1
–
17.1
28.4
Cashflows
Premiums received
(830.4)
–
(830.4)
–
–
–
(830.4)
Claims and other insurance service
expenses paid
–
–
–
753.7
–
753.7
753.7
Other movements
–
–
–
–
–
–
–
Total cashflows
(830.4)
–
(830.4)
753.7
–
753.7
(76.7)
Net closing balance
(198.4)
(3.0)
(201.4)
(614.7)
(75.5)
(690.2)
(891.6)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(198.4)
(3.0)
(201.4)
(614.7)
(75.5)
(690.2)
(891.6)
Admiral Group plc Annual Report and Accounts 2024
233
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Liability for remaining coverage
Liability for incurred claims
2023
Excluding
loss
component
Loss
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(200.7)
(4.7)
(205.4)
(495.2)
(76.1)
(571.3)
(776.7)
Net opening balance
(200.7)
(4.7)
(205.4)
(495.2)
(76.1)
(571.3)
(776.7)
Insurance revenue
842.6
–
842.6
–
–
–
842.6
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(835.7)
(40.8)
(876.5)
(876.5)
Changes to liabilities for
incurred claims
–
–
–
(22.6)
43.9
21.3
21.3
Losses and reversals of losses on
onerous contracts
–
2.4
2.4
–
–
–
2.4
Insurance service result
842.6
2.4
845.0
(858.3)
3.1
(855.2)
(10.2)
Insurance finance income/
(expense) recognised in
profit or loss
–
–
–
(8.2)
(1.7)
(9.9)
(9.9)
Insurance finance income/
(expense) recognised in OCI
–
(0.7)
(0.7)
(12.7)
(3.4)
(16.1)
(16.8)
Foreign exchange impact
2.3
0.1
2.4
15.7
2.0
17.7
20.1
Total changes in comprehensive
income
844.9
1.8
846.7
(863.5)
–
(863.5)
(16.8)
Other changes1
–
–
16.1
0.1
16.2
16.2
Cashflows
Premiums received
(862.3)
–
(862.3)
–
–
–
(862.3)
Claims and other insurance service
expenses paid1
–
–
–
777.1
–
777.1
777.1
Other movements
–
–
–
–
–
–
–
Total cashflows
(862.3)
–
(862.3)
777.1
–
777.1
(85.2)
Net closing balance
(218.1)
(2.9)
(221.0)
(565.5)
(76.0)
(641.5)
(862.5)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(218.1)
(2.9)
(221.0)
(565.5)
(76.0)
(641.5)
(862.5)
1Claims paid and other changes have been re-presented to separately present the transfer of non-cash insurance service expenses,  (primarily depreciation, amortisation and IFRS 2
equity-settled share based payments), out of the LIC.  There is no impact on the closing balance.
Admiral Group plc Annual Report and Accounts 2024
234
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
(iii). Roll-forward of net asset or liability for reinsurance contracts issued
UK Motor
The following tables reconcile the opening and closing balances of the ARC and AIC for UK Motor.
Asset for remaining coverage
Asset for incurred claims
2024
Excluding
loss
component
Loss-
recovery
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
20.8
2.3
23.1
313.2
183.6
496.8
519.9
Opening liabilities
–
–
–
–
–
–
–
Net opening balance
20.8
2.3
23.1
313.2
183.6
496.8
519.9
Allocation of reinsurance
premiums
(145.8)
–
(145.8)
–
–
–
(145.8)
Amounts recoverable from
reinsurers for incurred claims
Incurred claims
–
–
–
22.2
7.0
29.2
29.2
Changes to liabilities for
incurred claims
–
–
–
(158.6)
(133.0)
(291.6)
(291.6)
Changes in the loss
recovery component
–
(4.0)
(4.0)
–
–
–
(4.0)
Net income/ (expense) from
reinsurance contracts held
(145.8)
(4.0)
(149.8)
(136.4)
(126.0)
(262.4)
(412.2)
Reinsurance finance income/
(expense) recognised in
profit or loss
–
1.8
1.8
11.1
7.9
19.0
20.8
Reinsurance finance income/
(expense) recognised in OCI
–
(0.1)
(0.1)
(2.8)
(1.5)
(4.3)
(4.4)
Total changes in comprehensive
income
(145.8)
(2.3)
(148.1)
(128.1)
(119.6)
(247.7)
(395.8)
Cashflows
Premiums paid
159.0
–
159.0
–
–
–
159.0
Claims recoveries
–
–
–
(0.9)
–
(0.9)
(0.9)
Recoveries as a result of
commutations
–
–
–
(11.7)
–
(11.7)
(11.7)
Total cashflows
159.0
–
159.0
(12.6)
–
(12.6)
146.4
Net closing balance
34.0
–
34.0
172.5
64.0
236.5
270.5
Closing assets
34.0
–
34.0
172.5
64.0
236.5
270.5
Closing liabilities
–
–
–
–
–
–
–
Admiral Group plc Annual Report and Accounts 2024
235
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Asset for remaining coverage
Asset for incurred claims
2023
Excluding
loss
component
Loss-
recovery
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
20.2
6.3
26.5
255.4
175.6
431.0
457.5
Opening liabilities
–
–
–
–
–
–
–
Net opening balance
20.2
6.3
26.5
255.4
175.6
431.0
457.5
Allocation of reinsurance
premiums
(93.6)
–
(93.6)
–
–
–
(93.6)
Amounts recoverable from
reinsurers for incurred claims
–
–
–
–
–
–
–
Incurred claims
–
–
–
96.7
77.1
173.8
173.8
Changes to liabilities for
incurred claims
–
–
–
(43.1)
(92.0)
(135.1)
(135.1)
Changes in the loss
recovery component
–
(14.5)
(14.5)
–
–
–
(14.5)
Net income/ (expense) from
reinsurance contracts held
(93.6)
(14.5)
(108.1)
53.6
(14.9)
38.7
(69.4)
Reinsurance finance income/
(expense) recognised in
profit or loss
–
3.2
3.2
9.4
7.5
16.9
20.1
Reinsurance finance income/
(expense) recognised in OCI
–
7.3
7.3
12.5
15.4
27.9
35.2
Total changes in comprehensive
income
(93.6)
(4.0)
(97.6)
75.5
8.0
83.5
(14.1)
Cashflows
–
–
–
–
–
–
–
Premiums paid
94.2
–
94.2
–
–
–
94.2
Claims recoveries
–
–
–
(2.2)
–
(2.2)
(2.2)
Recoveries as a result of
commutations
–
–
–
(15.5)
–
(15.5)
(15.5)
Total cashflows
94.2
–
94.2
(17.7)
–
(17.7)
76.5
Net closing balance
20.8
2.3
23.1
313.2
183.6
496.8
519.9
Closing assets
20.8
2.3
23.1
313.2
183.6
496.8
519.9
Closing liabilities
–
–
–
–
–
–
–
Admiral Group plc Annual Report and Accounts 2024
236
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
UK Non-Motor
The following tables reconcile the opening and closing balances of the ARC and AIC for UK Non-motor insurance (Household,
Travel and Pet).
Asset for remaining coverage
Asset for incurred claims
2024
Excluding
loss
component
Loss-
recovery
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
21.4
–
21.4
154.9
15.3
170.2
191.6
Opening liabilities
–
–
–
–
–
–
–
Net opening balance
21.4
–
21.4
154.9
15.3
170.2
191.6
Allocation of reinsurance
premiums
(45.8)
–
(45.8)
–
–
–
(45.8)
Amounts recoverable from
reinsurers for incurred claims
Incurred claims
–
–
–
(8.2)
5.1
(3.1)
(3.1)
Changes to liabilities for
incurred claims
–
–
–
(12.3)
(22.0)
(34.3)
(34.3)
Changes in the loss
recovery component
–
0.1
0.1
–
–
–
0.1
Net income/ (expense) from
reinsurance contracts held
(45.8)
0.1
(45.7)
(20.5)
(16.9)
(37.4)
(83.1)
Reinsurance finance income/
(expense) recognised in
profit or loss
–
–
–
6.1
0.6
6.7
6.7
Reinsurance finance income/
(expense) recognised in OCI
–
–
–
(0.3)
–
(0.3)
(0.3)
Total changes in comprehensive
income
(45.8)
0.1
(45.7)
(14.7)
(16.3)
(31.0)
(76.7)
Reinsurance investment
components
(178.6)
–
(178.6)
178.6
–
178.6
–
Cashflows
Premiums paid
214.1
–
214.1
–
–
–
214.1
Claims recoveries
–
–
–
(144.3)
–
(144.3)
(144.3)
Recoveries as a result of
commutations
–
–
–
–
–
–
–
Total cashflows
214.1
–
214.1
(144.3)
–
(144.3)
69.8
Net closing balance
11.1
0.1
11.2
174.5
(1.0)
173.5
184.7
Closing assets
11.1
0.1
11.2
174.5
(1.0)
173.5
184.7
Closing liabilities
–
–
–
–
–
–
–
Admiral Group plc Annual Report and Accounts 2024
237
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Asset for remaining coverage
Asset for incurred claims
2023
Excluding
loss
component
Loss-
recovery
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
11.7
0.1
11.8
98.6
16.1
114.7
126.5
Opening liabilities
–
–
–
–
–
–
–
Net opening balance
11.7
0.1
11.8
98.6
16.1
114.7
126.5
Allocation of reinsurance
premiums
(49.5)
–
(49.5)
–
–
–
(49.5)
Amounts recoverable from
reinsurers for incurred claims
Incurred claims
–
–
–
53.3
(1.3)
52.0
52.0
Changes to liabilities for
incurred claims
–
–
–
1.7
(0.3)
1.4
1.4
Changes in the loss
recovery component
–
(2.2)
(2.2)
–
–
–
(2.2)
Net income/ (expense) from
reinsurance contracts held
(49.5)
(2.2)
(51.7)
55.0
(1.6)
53.4
1.7
Reinsurance finance income/
(expense) recognised in
profit or loss
–
–
–
3.6
0.6
4.2
4.2
Reinsurance finance income/
(expense) recognised in OCI
–
2.1
2.1
0.9
0.2
1.1
3.2
Total changes in comprehensive
income
(49.5)
(0.1)
(49.6)
59.5
(0.8)
58.7
9.1
Reinsurance investment
components
(111.7)
–
(111.7)
111.7
–
111.7
–
Cashflows
Premiums paid
170.9
–
170.9
–
–
–
170.9
Claims recoveries
–
–
–
(91.2)
–
(91.2)
(91.2)
Recoveries as a result of
commutations
–
–
–
(23.7)
–
(23.7)
(23.7)
Total cashflows
170.9
–
170.9
(114.9)
–
(114.9)
56.0
Net closing balance
21.4
–
21.4
154.9
15.3
170.2
191.6
Closing assets
21.4
–
21.4
154.9
15.3
170.2
191.6
Closing liabilities
–
–
–
–
–
–
–
Admiral Group plc Annual Report and Accounts 2024
238
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
International Insurance
The following tables reconcile the opening and closing balances of the ARC and AIC for International Insurance.
Asset for remaining coverage
Asset for incurred claims
2024
Excluding
loss
component
Loss-
recovery
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
–
2.2
2.2
465.4
37.4
502.8
505.0
Opening liabilities
(23.2)
–
(23.2)
–
–
–
(23.2)
Net opening balance
(23.2)
2.2
(21.0)
465.4
37.4
502.8
481.8
Allocation of reinsurance
premiums
(153.9)
–
(153.9)
–
–
–
(153.9)
Amounts recoverable from
reinsurers for incurred claims
Incurred claims
–
–
–
212.3
63.6
275.9
275.9
Changes to liabilities for
incurred claims
–
–
–
(82.4)
(63.9)
(146.3)
(146.3)
Changes in the loss
recovery component
–
0.3
0.3
–
–
–
0.3
Net income/ (expense) from
reinsurance contracts held
(153.9)
0.3
(153.6)
129.9
(0.3)
129.6
(24.0)
Reinsurance finance income/
(expense) recognised in
profit or loss
–
–
–
7.4
1.1
8.5
8.5
Reinsurance finance income/
(expense) recognised in OCI
–
–
–
6.5
0.6
7.1
7.1
Foreign exchange impact
(0.6)
(0.1)
(0.7)
(19.3)
0.3
(19.0)
(19.7)
Total changes in comprehensive
income
(154.5)
0.2
(154.3)
124.5
1.7
126.2
(28.1)
Reinsurance investment
components
(175.0)
–
(175.0)
175.0
–
175.0
–
Cashflows
Premiums paid
393.4
–
393.4
–
–
–
393.4
Claims recoveries
–
–
–
(322.5)
–
(322.5)
(322.5)
Recoveries as a result of
commutations
–
–
–
–
–
–
–
Total cashflows
393.4
–
393.4
(322.5)
–
(322.5)
70.9
Net closing balance
40.7
2.4
43.1
442.4
39.1
481.5
524.6
Closing assets
40.7
2.4
43.1
442.4
39.1
481.5
524.6
Closing liabilities
–
–
–
–
–
–
–
Admiral Group plc Annual Report and Accounts 2024
239
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Asset for remaining coverage
Asset for incurred claims
2023
Excluding
loss
component
Loss-
recovery
component
Total
Present value
of future
cashflows
Risk adj. for
non-financial
risk
Total
Total
£m
Opening assets
–
3.4
3.4
412.7
35.1
447.8
451.2
Opening liabilities
(19.0)
–
(19.0)
–
–
–
(19.0)
Net opening balance
(19.0)
3.4
(15.6)
412.7
35.1
447.8
432.2
Allocation of reinsurance
premiums
(190.0)
–
(190.0)
–
–
–
(190.0)
Amounts recoverable from
reinsurers for incurred claims
Incurred claims
–
–
–
243.7
26.6
270.3
270.3
Changes to liabilities for
incurred claims
–
–
–
(69.8)
(26.1)
(95.9)
(95.9)
Changes in the loss
recovery component
–
(1.7)
(1.7)
–
–
–
(1.7)
Net income/ (expense) from
reinsurance contracts held
(190.0)
(1.7)
(191.7)
173.9
0.5
174.4
(17.3)
Reinsurance finance income/
(expense) recognised in
profit or loss
–
–
–
4.0
0.6
4.6
4.6
Reinsurance finance income/
(expense) recognised in OCI
–
0.5
0.5
7.4
1.9
9.3
9.8
Foreign exchange impact
6.3
–
6.3
(11.7)
(0.7)
(12.4)
(6.1)
Total changes in comprehensive
income
(183.7)
(1.2)
(184.9)
173.6
2.3
175.9
(9.0)
Reinsurance investment
components
(148.9)
–
(148.9)
148.9
–
148.9
–
Cashflows
Premiums paid
328.4
–
328.4
–
–
–
328.4
Claims recoveries
–
–
–
(269.8)
–
(269.8)
(269.8)
Recoveries as a result of
commutations
–
–
–
–
–
–
–
Total cashflows
328.4
–
328.4
(269.8)
–
(269.8)
58.6
Net closing balance
(23.2)
2.2
(21.0)
465.4
37.4
502.8
481.8
Closing assets
–
2.2
2.2
465.4
37.4
502.8
505.0
Closing liabilities
(23.2)
–
(23.2)
–
–
–
(23.2)
Admiral Group plc Annual Report and Accounts 2024
240
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
(iv) Claims development
The tables below illustrate how estimates of cumulative claims for UK Motor, UK Non-Motor and International Insurance have
developed over time on a gross and net of reinsurance basis.
Each table shows how the Group’s estimates of total claims for each underwriting year have developed over time and reconciles
the cumulative claims to the amount included in the Statement of Financial Position. Balances have been translated at the exchange
rates prevailing at the reporting date. The Group has not disclosed information for underwriting years 2017 and prior for the
International Insurance and Non-UK Motor Insurance businesses, given that the claims that remain outstanding on those years are
immaterial.
IFRS 17 does not require an entity to disclose claims development information for which uncertainty about the amount and timing
of the claims payments is typically resolved within one year. Therefore, the Group has not disclosed information about the claims
in its other lines of business or related directly attributable expenses.
Gross claims development
Financial year ended 31 December 2024
Underwriting year
2014 &
prior
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
UK Motor (core)
At end of year one
394
436
552
686
701
552
688
845
973
1,241
At end of year two
701
829
1,144
1,175
1,067
985
1,326
1,584
1,812
At end of year three
707
788
994
1,109
1,010
954
1,294
1,544
At end of year four
680
727
947
1,064
996
921
1,270
At end of year five
636
713
912
1,008
981
910
At end of year six
619
690
890
1,000
938
At end of year seven
606
656
865
959
At end of year eight
594
652
849
At end of year nine
585
657
Ten years later
583
Gross best estimates
of undiscounted claims
3,803
583
657
849
959
938
910
1,270
1,544
1,812
1,241
14,566
Cumulative gross
claims paid
(3,666)
(568)
(618)
(782)
(906)
(822)
(733)
(924)
(1,104)
(1,105)
(561)
(11,789)
Gross undiscounted
best estimate liabilities
137
15
39
67
53
116
177
346
440
707
680
2,777
Risk adjustment
(undiscounted)
480
Effect of discounting
(673)
Gross claims liabilities
2,584
Ancillary claims and
expense liabilities
107
UK Motor Gross
liabilities for incurred
claims
2,691
UK Non-motor (core)
At end of year one
26
29
56
55
53
58
116
146
160
At end of year two
34
50
78
102
105
96
128
224
253
At end of year three
35
47
76
102
103
95
124
227
At end of year four
34
47
75
102
102
90
126
At end of year five
33
47
76
102
93
93
At end of year six
33
47
76
100
96
At end of year seven
33
47
75
102
Admiral Group plc Annual Report and Accounts 2024
241
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Financial year ended 31 December 2024
Underwriting year
2014 &
prior
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
At end of year eight
33
48
77
At end of year nine
33
48
Ten years later
33
Gross best estimates
of undiscounted claims
24
33
48
77
102
96
93
126
227
253
160
1,239
Cumulative gross
claims paid
(24)
(33)
(48)
(77)
(101)
(95)
(91)
(120)
(202)
(187)
(69)
(1,047)
Gross undiscounted
best estimate liabilities
–
–
–
–
1
1
2
6
25
66
91
192
Risk adjustment
(undiscounted)
25
Effect of discounting
(7)
Gross claims liabilities
210
Ancillary claims and
expense liabilities
5
UK Non-motor Gross
liabilities for incurred
claims
215
International
Insurance
At end of year one
177
236
204
270
313
338
300
At end of year two
259
356
382
368
496
601
580
At end of year three
237
304
349
388
364
498
603
At end of year four
181
253
300
350
384
365
499
At end of year five
211
251
300
350
364
361
At end of year six
211
251
300
339
362
At end of year seven
211
251
296
338
At end of year eight
212
248
294
At end of year nine
233
247
Ten years later
226
Gross best estimates
of undiscounted claims
540
226
247
294
338
362
361
499
603
580
300
4,350
Cumulative gross
claims paid
(533)
(188)
(245)
(280)
(321)
(341)
(324)
(436)
(490)
(408)
(127)
(3,693)
Gross undiscounted
best estimate liabilities
7
38
2
14
17
21
37
63
113
172
173
657
Risk adjustment
(undiscounted)
81
Effect of discounting
(81)
Gross claims liabilities
657
Ancillary claims and
expense liabilities
33
International
Insurance Gross
liabilities for incurred
claims
690
Admiral Group plc Annual Report and Accounts 2024
242
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Claims development net of XoL reinsurance
Financial year ended 31 December 2024
Underwriting year
2014 &
prior
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
UK Motor (core)
At end of year one
378
427
510
646
675
520
661
825
951
1,220
At end of year two
682
783
1,053
1,123
1,033
949
1,292
1,550
1,776
At end of year three
667
743
917
1,053
986
927
1,257
1,517
At end of year four
637
692
883
1,024
969
892
1,240
At end of year five
607
677
860
974
950
886
At end of year six
599
663
840
978
925
At end of year seven
586
640
820
946
At end of year eight
579
635
825
At end of year nine
577
644
Ten years later
580
Net of XoL best
estimates of
undiscounted claims
3,773
580
644
825
946
925
886
1,240
1,517
1,776
1,220
14,332
Cumulative
claims paid
(3,666)
(568)
(618)
(782)
(906)
(822)
(733)
(924)
(1,104)
(1,105)
(561)
(11,789)
Net of XoL
undiscounted best
estimate liabilities
107
12
26
43
40
103
153
316
413
671
659
2,543
Risk adjustment
(undiscounted)
428
Effect of discounting
(543)
Net of XoL
claims liabilities
2,428
Ancillary claims and
expense liabilities
107
UK Motor Net of XoL
liabilities for incurred
claims
2,535
UK Non-motor (core)
At end of year one
26
29
56
54
50
57
116
127
152
At end of year two
34
50
78
102
96
91
126
220
229
At end of year three
35
47
75
101
94
90
124
221
At end of year four
34
47
75
101
93
90
127
At end of year five
33
47
76
101
93
93
At end of year six
33
47
75
100
96
At end of year seven
33
47
75
102
At end of year eight
33
48
77
At end of year nine
33
48
Ten years later
33
Net of XoL best
estimates of
undiscounted claims
24
33
48
77
102
96
93
127
221
229
152
1,202
Cumulative
claims paid
(24)
(33)
(48)
(77)
(101)
(95)
(91)
(120)
(200)
(178)
(69)
(1,036)
Admiral Group plc Annual Report and Accounts 2024
243
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Financial year ended 31 December 2024
Underwriting year
2014 &
prior
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Net of XoL
undiscounted best
estimate liabilities
–
–
–
–
1
1
2
7
21
51
83
166
Risk adjustment
(undiscounted)
22
Effect of discounting
(6)
Net of XoL
claims liabilities
182
Ancillary claims and
expense liabilities
5
UK Non-motor Net of
XoL liabilities for
incurred claims
187
International
Insurance
At end of year one
177
236
204
270
313
335
299
At end of year two
259
356
382
368
496
559
569
At end of year three
237
304
349
388
364
477
561
At end of year four
181
253
300
350
384
355
472
At end of year five
211
251
300
350
360
353
At end of year six
211
251
300
337
358
At end of year seven
211
251
290
337
At end of year eight
212
248
290
At end of year nine
210
248
Ten years later
204
Net of XoL best
estimates of
undiscounted claims
537
204
248
290
337
358
353
472
561
569
299
4,228
Cumulative
claims paid
(533)
(188)
(245)
(280)
(321)
(341)
(324)
(431)
(486)
(406)
(128)
(3,683)
Net of XoL
undiscounted best
estimate liabilities
4
16
3
10
16
17
29
41
75
163
171
545
Risk adjustment
(undiscounted)
73
Effect of discounting
(36)
Net of XoL
claims liabilities
582
Ancillary claims and
expense liabilities
32
International
Insurance Net of XoL
liabilities for incurred
claims
614
Admiral Group plc Annual Report and Accounts 2024
244
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Claims development net of reinsurance
Financial year ended 31 December 2024
Underwriting year
2014 &
prior
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
UK Motor (core)
At end of year one
378
427
493
625
626
520
657
762
939
1,220
At end of year two
682
783
1,016
1,086
1,033
949
1,259
1,442
1,776
At end of year three
667
743
886
1,018
986
927
1,239
1,470
At end of year four
637
692
853
990
969
892
1,236
At end of year five
607
677
830
957
950
886
At end of year six
599
663
811
944
925
At end of year seven
586
640
793
913
At end of year eight
579
635
798
At end of year nine
577
644
Ten years later
580
Net best estimates of
undiscounted claims
3,773
580
644
798
913
925
886
1,236
1,470
1,776
1,220
14,221
Cumulative net
claims paid
(3,666)
(568)
(618)
(755)
(874)
(822)
(733)
(924)
(1,104)
(1,105)
(561)
(11,730)
Net undiscounted best
estimate liabilities
107
12
26
43
39
103
153
312
366
671
659
2,491
Risk adjustment
(undiscounted)
419
Effect of discounting
(528)
Net claims liabilities
2,382
Ancillary claims and
expense liabilities
72
UK Motor Net
liabilities for
incurred claims
2,454
UK Non-motor (core)
At end of year one
7
6
20
18
16
16
43
68
78
At end of year two
10
14
22
34
25
12
41
94
108
At end of year three
10
12
24
33
31
19
36
88
At end of year four
9
12
22
37
30
18
40
At end of year five
9
12
24
37
29
21
At end of year six
8
12
24
36
33
At end of year seven
9
12
24
39
At end of year eight
9
13
25
At end of year nine
9
13
Ten years later
9
Net best estimates of
undiscounted claims
8
9
13
25
39
33
21
40
88
108
78
462
Cumulative net
claims paid
(8)
(9)
(13)
(25)
(38)
(32)
(20)
(36)
(86)
(106)
(59)
(432)
Net undiscounted best
estimate liabilities
–
–
–
–
1
1
1
4
2
2
19
30
Risk adjustment
(undiscounted)
10
Admiral Group plc Annual Report and Accounts 2024
245
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Financial year ended 31 December 2024
Underwriting year
2014 &
prior
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Effect of discounting
(2)
Net claims liabilities
38
Ancillary claims and
expense liabilities
3
UK Non-motor Net
liabilities for
incurred claims
41
International
Insurance
At end of year one
61
79
83
100
114
140
145
At end of year two
85
120
129
145
185
218
224
At end of year three
115
97
117
129
144
187
211
At end of year four
92
132
96
119
130
144
192
At end of year five
82
131
101
119
123
149
At end of year six
83
86
101
115
128
At end of year seven
70
86
99
118
At end of year eight
70
85
103
At end of year nine
83
87
Ten years later
80
Net best estimates of
undiscounted claims
207
80
87
103
118
128
149
192
211
224
145
1,644
Cumulative net
claims paid
(205)
(65)
(86)
(99)
(112)
(121)
(138)
(175)
(180)
(195)
(88)
(1,464)
Net undiscounted best
estimate liabilities
2
15
1
4
6
7
11
17
31
29
57
180
Risk adjustment
(undiscounted)
27
Effect of discounting
(20)
Net claims liabilities
187
Ancillary claims and
expense liabilities
21
International
Insurance Net
liabilities 
incurred claims
208
Admiral Group plc Annual Report and Accounts 2024
246
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
(v) UK Motor Loss ratios and Changes to liabilities for incurred claims
The table below shows the development of UK Motor Insurance loss ratios for the past three financial periods, presented on an
underwriting year basis, both using undiscounted amounts (i.e. cashflows) and discounted amounts.
UK Motor Insurance loss ratio development - undiscounted*, net of excess of
loss reinsurance
31 December
2021
2022
2023
2024
Underwriting year
2019
73%
71%
67%
64%
2020
68%
65%
58%
57%
2021
95%
91%
86%
82%
2022
–
104%
96%
91%
2023
–
–
94%
80%
2024
–
–
–
77%
* Booked undiscounted loss ratios presented from the transition date of IFRS 17 (1 January 2022) onwards.
UK Motor Insurance loss ratio development - discounted*, net of excess of
loss reinsurance
31 December
2021
2022
2023
2024
Underwriting year
2019
71%
69%
65%
63%
2020
67%
63%
57%
55%
2021
92%
86%
81%
77%
2022
–
97%
88%
83%
2023
–
–
86%
72%
2024
–
–
–
71%
* Loss ratios using discounted locked-in curves, excluding finance expenses are presented from the transition date of IFRS 17 (1 January 2022) onwards.
The following table analyses the impact of movements in changes to liabilities from incurred claims by underwriting year on a gross
and net of excess of loss reinsurance basis for UK Motor.
31 December
2024
£m
31 December
2023
£m
Gross
Underwriting year
2019 & prior
173.7
152.9
2020
41.8
98.2
2021
87.0
76.4
2022
107.1
79.4
2023
83.8
–
2024
–
–
Total UK Motor gross changes to liabilities for incurred claims
493.4
406.9
Net
Underwriting year
2019 & prior
99.6
145.6
2020
30.5
97.7
2021
70.6
80.1
2022
94.5
69.4
2023
76.7
–
2024
–
–
Total UK Motor net of excess of loss changes to liabilities for incurred claims
371.9
392.8
Admiral Group plc Annual Report and Accounts 2024
247
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
6. Investment income and finance costs
6a. Accounting policies
i) Financial assets
Classification and measurement
The classification and subsequent measurement of the financial asset under IFRS 9 depends on:
1. The Group’s business model for managing the financial assets, and
2. The contractual cashflow characteristics of the financial asset.
Based on these factors, the financial asset is classified into one of the following categories:
Amortised cost
These comprise assets which are held in order to collect contractual cashflows and the contractual terms of the financial asset give
rise to cashflows which are solely payments of principal and interest on the principal amount outstanding (SPPI), where the asset
is not designated as fair value through profit or loss (FVTPL).
For the Group, these include deposits with credit institutions, cash and cash equivalents, insurance receivables, trade and other
receivables and loans and advances to customers.
The interest income generated from these assets is included in investment returns, with the exception of loans and advances
to customers and cash and cash equivalents relating to the loans business, where the interest receivable is recognised
in interest income.
Fair value through other comprehensive income (FVOCI)
These comprise assets which are held both to collect contractual cashflows and to sell the asset, where the contractual terms
of the financial asset give rise to cashflows which are solely payments of principal and interest on the principal amount outstanding
(SPPI), where the asset is not designated as FVTPL.
For the Group, these assets include corporate, government and private debt securities. These assets are held to match policyholder
liabilities or interest on debt liabilities. If sold before maturity, gains or losses on these assets impact the consolidated income
statement.
In addition, IFRS 9 allows an irrevocable election at initial recognition to designate equity investments at FVOCI that otherwise
would be held at FVTPL, provided these are not held for trading. The Group has made this election for certain investments which
are not held for trading and are strategic investments to be designated as being reported through FVOCI. These represent open
ended private debt securities held in investment funds.
Movements in the carrying amount are taken through OCI, with the exception of recognition of impairment gains or losses, interest
revenue, dividend income and foreign exchange gains or losses which are recognised in profit or loss.
A gain or loss on disposal of an investment measured at FVOCI is presented within investment return in the period in which it arises.
Fair value through profit or loss (FVTPL)
These are assets which do not meet the criteria for amortised cost or FVOCI, or which are designated as FVTPL.
For the Group these assets include liquidity funds investing in short duration assets, other funds, closed ended private debt funds 
and derivative financial instruments. The regulatory capital within the Group is used to invest in these instruments in addition to any
surplus funds which may be held. Buying and selling activity occurs depending on timing of different cashflows.
Impairment
The expected credit loss model (ECL) is used to calculate any impairment to be recognised for all assets measured at amortised
cost, as well as financial investments measured at FVOCI. The general approach, which utilises the three-stage model, is used
for loans and advances to customers (see note 7), as well as financial investments measured at FVOCI.
For financial investments measured at FVOCI, the approach is based on an assessment made based on an external credit rating
agency or an assessment from the Group’s external asset managers, to assess whether there has been a significant increase in
credit risk, combined with other external data as follows:
• Financial assets in stage 1 are those where the credit risk has not increased significantly since initial recognition. A 12 month ECL
is recognised. To determine the default rate, the average of external rates using Standard & Poor and Moody’s is used, together
with consideration of any overlay based on qualitative criteria
• Financial assets in stage 2 are those where credit risk has increased significantly since initial recognition, with the provision
reflecting a lifetime loss. A significant increase in credit risk is defined as public assets that are downgraded outside of investment
grade or by two or more credit ratings in investment grade, or for a bond purchased at sub-investment grade, a fall in of a full
credit banding i.e. BB to B; and private assets which have been flagged on watchlists for significant credit deterioration.
For assets in stage 2, the lifetime expected credit loss is based on the lifetime default rate which factors in the number of years
from maturity
Admiral Group plc Annual Report and Accounts 2024
248
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
• For assets in stage 1 and stage 2, a recovery rate is also applied to the loss given default, based on an average of a number
of external and internal sources
• Financial assets in stage 3 are credit impaired, which typically occurs when the asset has defaulted, restructured or is not
expected to return full proceeds. Each asset in this category is reviewed to assess the recoverable amount based on the
information available.
The credit rating of all assets is regularly monitored. As at the year-end reporting date, the majority of financial assets are
considered low risk under IFRS 9 (2024 stage 1 assets: 99% of total investments). These therefore remain within stage 1 and
a 12-month expected loss is used to calculate the impairment provision required.
The impairment provision at 31 December 2024 is £12.9 million (£6.9 million at 31 December 2023).
The calculated impairment loss within the fair value is recognised through the Income Statement whilst fair value movements
are recognised in other comprehensive income.
Given there is no material change in the credit quality or type of financial assets in the year and the movement in provision
is immaterial, no further disclosure has been made.
Derecognition
A financial asset is derecognised when the rights to receive cashflows from that asset have expired, or when the Group transfers
the asset and all the attached substantial risks and rewards relating to the asset to a third party.
ii) Financial liabilities
Classification and subsequent measurement
All financial liabilities are classified as subsequently measured at amortised cost using the effective interest method, except
for derivatives that are classified at fair value through profit or loss and subsequently measured at fair value.
Movements in the amortised cost are recognised through the income statement.
Derecognition
A financial liability is derecognised when the obligation under that liability is discharged, cancelled or expires.
iii) Investment return and finance costs
Investment return from financial assets comprises distributions as well as net realised and unrealised gains on financial assets
classified as FVTPL, interest income and net realised gains from financial assets classified as FVOCI, and interest income from
financial assets classified as amortised cost.
Finance costs from financial liabilities comprise interest expense on subordinated notes, credit facilities and lease liabilities,
calculated using the effective interest rate method. The effective interest rate method calculates the amortised cost of a financial
asset or liability (or group of financial assets or financial liabilities) and allocates the interest income or expense over the expected
life of the asset or liability.
iv) Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured initially at cost, including
transaction costs. Subsequent to initial recognition, investment property is measured at fair value in accordance with IAS 40. Fair
value is determined based on valuations performed by independent professionally qualified valuers. Gains or losses arising from
changes in the fair value of investment property are included in profit or loss in the period in which they arise.
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and
no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated
as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period
in which the property is derecognised.
Admiral Group plc Annual Report and Accounts 2024
249
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
6b. Investment return
31 December 2024
£m
31 December 2023
£m
At EIR
Other
Total
At EIR
Other
Total
Investment return
On assets classified as FVTPL
–
67.1
67.1
–
43.3
43.3
On assets classified as FVOCI1, 3
100.4
5.2
105.6
77.0
(3.6)
73.4
On assets classified as amortised cost1
5.9
–
5.9
4.1
–
4.1
Net unrealised losses
Unrealised (loss) / gain on forward contracts
–
(0.2)
(0.2)
–
(0.2)
(0.2)
Share of associate profit/ loss
–
(1.0)
(1.0)
–
(1.3)
(1.3)
Interest income on cash and cash equivalents1
–
5.5
5.5
–
5.4
5.4
Investment fees
–
(2.0)
(2.0)
–
(1.8)
(1.8)
Total investment and interest income2
106.3
74.6
180.9
81.1
41.8
122.9
1Interest received during the year was £90.6 million (2023: £76.8 million).
2Total investment return excludes £7.9 million of intra-group interest (2023: £3.2 million).
3Realised losses on sales of debt securities classified as FVOCI are £4.5 million (2023: £0.9 million).
Investment return, which is comprised of distributions as well as net realised and unrealised gains on financial assets classified
as FVTPL, interest income and net realised gains from financial assets classified as FVOCI, and interest income from financial assets
classified as amortised cost, is impacted by the interest rates on cash and financial investments.
Finance expense (note 5e), which reflects the unwind of discounting applied using a discount rate locked in at the date the claim
is recognised over the expected payment period, is also impacted by interest rates derived from the EIOPA yield curve at the time
of claim. Both these items are impacted by risk free interest rates, albeit with differences driven by timing of making investments
versus the timing of claims recognition and payment. All other factors being equal, higher risk-free rates should result in an increase
in both investment return and finance expense being recognised in the Income Statement.
Admiral primarily invests to match its liabilities hence the OCI impacts on assets within the fair value reserve should correlate
to those on the insurance contract liabilities within the insurance finance reserve. However, Admiral invests in a diverse range
of assets including corporate and government bonds hence the investment fair value reserve is driven by factors beyond the
interest rates used in discounting the liabilities. These include market credit spreads as well as fair value movements on surplus
assets not held to match the insurance liabilities and can move in the opposite direction to interest rates.
6c. Finance costs
31 December
2024
£m
31 December
2023
£m
Interest expense on subordinated loan notes and other credit facilities1, 2
24.5
18.5
Interest expense on lease liabilities
2.6
2.0
Interest recoverable from co-insurers
(0.6)
(0.4)
Total finance costs3
26.5
20.1
1Interest paid during the year was £27.0 million (2023: £20.5 million).
2See note 7e for details of credit facilities.
3No interest has been capitalised in the period
Finance costs represent interest payable on the £250.0 million (2023: £305.1 million) subordinated notes and other financial liabilities.
Interest expense on lease liabilities represents the unwinding of the discount on lease liabilities under IFRS 16.
6d. Expected credit losses
Note
31 December
2024
£m
31 December
2023
£m
Expected credit (gains)/losses on financial investments
6f
6.3
(2.5)
Expected credit losses on loans and advances to customers1
7b
28.3
33.5
Total expense for expected credit losses
34.6
31.0
1 Includes £26.1 million (2023: £15.0 million) of write-offs, with total movement in the expected credit loss provision being £28.3 million (2023: £33.5 million).
Admiral Group plc Annual Report and Accounts 2024
250
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
See note 6a and note 7b for details of the impairment methodology.
6e. Financial assets and liabilities
The Group’s financial assets and liabilities can be analysed as follows:
31 December
2024
£m
31 December
2023
£m
Financial investments measured at FVTPL
Money market funds
902.6
587.5
Other funds1
473.9
301.3
Derivative financial instruments
5.8
17.6
Equity investments (designated FVTPL)
46.9
12.4
1,429.2
918.8
Financial investments classified as FVOCI
Corporate debt securities
2,410.9
2,040.6
Government debt securities2
772.2
519.6
Private debt securities
152.3
242.7
3,335.4
2,802.9
Equity investments (designated FVOCI)
–
23.0
3,335.4
2,825.9
Financial assets measured at amortised cost
Deposits with credit institutions
91.7
116.7
Other
Investment in Associate
–
1.0
Investment Property
6.9
–
Total financial investments
4,863.2
3,862.4
Other financial assets (measured at amortised cost)
Insurance related receivables
51.1
272.7
Trade and other receivables
110.4
75.0
Insurance related and other receivables
161.5
347.7
Loans and advances to customers (note 7)
1,106.9
879.4
Cash and cash equivalents
313.6
353.1
Total financial assets
6,445.2
5,442.6
Financial liabilities
Subordinated notes
258.9
315.2
Loan backed securities
937.7
759.6
Other borrowings
117.4
55.0
Derivative financial instruments
8.2
–
Subordinated and other financial liabilities
1,322.2
1,129.8
Trade and other payables3
175.3
305.8
Lease liabilities
79.6
81.2
Total financial liabilities
1,577.1
1,516.8
1Other funds include funds which primarily invest in fixed income securities are recognised as fair value through profit and loss
2Government debt securities include £0.6 million of short term UK government bonds held for collateral against foreign exchange hedging derivatives
3Trade and other payables include deferred income, accruals and other tax and social security.
Admiral Group plc Annual Report and Accounts 2024
251
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
6f. Fair value measurement
IFRS 13 requires assets and liabilities that are held at fair value to be classified according to a hierarchy which reflects the
observability of significant market inputs, based on three levels. The Group policy is to recognise transfer between fair value
hierarchy levels as at the end of the reporting period. There were no transfers between fair value hierarchy levels in the reporting
period (2023: none).
The table below shows how the financial assets and liabilities held at fair value have been measured using the fair value hierarchy:
31 December 2024
31 December 2023
FVTPL
£m
FVOCI
£m
FVTPL
£m
FVOCI
£m
Level one (quoted prices in active markets)
1,221.2
3,183.1
888.8
2,560.1
Level two (use of observable inputs)
(2.4)
–
17.6
–
Level three (use of significant unobservable inputs)
202.2
152.3
12.4
265.8
Total
1,421.0
3,335.4
918.8
2,825.9
Fair value measurement using observable inputs (level two)
Level two investments represent derivatives used for interest rate and FX hedging purposes, these are valued using market interest
rates and in the case of FX derivatives a combination of interest rates and spot FX rates.
Fair value measurement using significant unobservable inputs (level three)
Level three investments consist of debt investments and equity investments.
Debt investments are comprised primarily of investments in funds which invest in debt securities, these are valued at the proportion
of the Group’s holding of the Net Asset Value (NAV) reported by the investment vehicle. These include funds that invest in corporate
direct lending, residential and commercial mortgages, infrastructure debt and other private debt. In addition, there is a small
allocation of privately placed bonds which do not trade on active markets, these are valued using discounted cash-flow models
designed to appropriately reflect the credit and illiquidity of these instruments; these valuations are performed by the external fund
managers. The key unobservable input across private debt securities is the discount rate which is based on the credit performance
of the assets. A deterioration of the credit performance or expected future performance will result in higher discount rates and
lower values.
As these debt investments are held within investment funds where appropriate the Group elects to treat these investments
as equity through OCI. Debt investments in which the funds are closed ended are classified as FVTPL within Other funds (2024:
£154.8 million).
Equity securities are primarily comprised of investments in Private Equity and Infrastructure Equity funds, which are valued at the
proportion of the Group’s holding of the NAV reported by the investment vehicle. These are based on several unobservable inputs
including market multiples and cashflow forecasts. These are held at FVTPL, with realised and unrealised gains/losses flowing
through the P&L.
There were no significant inter-relationships between unobservable inputs that materially affect fair values.
Admiral Group plc Annual Report and Accounts 2024
252
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
The table below presents the movement in the period relating to financial instruments valued using a level three valuation:
31 December 2024
£m
Level Three Investments
Equity
Investments
Debt
Investments
Total
Balance as at 1 January 2024
35.5
242.7
278.2
Gains/(losses) recognised in the Income Statement
(4.5)
9.6
5.1
Gains/(losses) recognised in Other Comprehensive Income
—
(2.8)
(2.8)
Purchases
16.1
94.9
111.0
Disposals
(0.2)
(36.8)
(37.0)
Balance as at 31 December 2024
46.9
307.6
354.5
31 December 2023
£m
Level Three Investments
Equity
Investments
Debt
Investments
Total
Balance as at 1 January 2023
31.6
166.6
198.2
Gains/(losses) recognised in the Income Statement
(0.1)
10.0
9.9
Gains/(losses) recognised in Other Comprehensive Income
(1.0)
0.8
(0.2)
Purchases
6.1
89.6
95.7
Disposals
(1.1)
(24.3)
(25.4)
Balance as at 31 December 2023
35.5
242.7
278.2
Gains/(losses) recognised in the Income Statement are recognised within investment returns and gains/(losses) recognised in Other
Comprehensive Income is recognised within movements in fair value reserve.
6g. Cash and cash equivalents
31 December
2024
£m
31 December
2023
£m
Cash at bank and in hand1
313.6
353.1
Total cash and cash equivalents
313.6
353.1
1Cash at bank and in hand includes £45.2 million (2023: £38.9 million) related to special purpose entities which is not available for use by the Group.
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term deposits with original
maturities of three months or less.
An assessment has been completed for impairment purposes in line with that set out in note 6a above. Given the short-term
duration of these assets and low risk of these assets, no impairment provision has been recognised.
For cash at bank and cash deposits, the fair value approximates to the book value due to their short maturity.
Admiral Group plc Annual Report and Accounts 2024
253
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
6h. Other receivables
31 December
2024
£m
31 December
2023
£m
Insurance related receivables
51.1
272.7
Trade and other receivables
110.4
75.0
Prepayments and accrued income
63.7
62.2
Total other receivables
225.2
409.9
Insurance related receivables
Insurance related receivables, which are measured at historic cost, reflect amounts relating to the Group’s intermediary activities.
Given the short-term duration of these assets no material bad debt provision has been recognised.
Trade and other receivables
Classification. Trade and other receivables are measured at amortised cost, being made up of multiple types of receivable balances.
Impairment. Where a provision is required for these receivables, it is calculated in line with the simplified method for trade
receivables per IFRS 9, whereby lifetime expected credit losses are recognised irrespective of the credit risk. In this case,
the provision is based on a combination of
1) Aged debtor analysis
2) Historic experience of write-offs for each receivable
3) Any specific indicators of credit deterioration observed, and
4) Management judgement.
The level of provision is immaterial.
The amortised cost carrying amount of receivables is a reasonable approximation of fair value.
Contract balances
The following table provides information about receivables and contract assets from contracts with customers. Both balances are
included in Trade and other receivables.
31 December
2024
£m
31 December
2023
£m
Receivables
16.7
14.9
Contract assets
14.8
17.0
The contract asset relates to work undertaken in the law companies on behalf of clients which is ongoing and where the Company's
right to consideration remains dependent on the Company's continued successful performance under the contract. The contract
asset is transferred to trade receivables once only the passage of time is required before payment of the consideration is due,
which is typically at the point of the fee being billed.
Admiral Group plc Annual Report and Accounts 2024
254
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Significant changes in the contract asset balance during the period are as follows:
Contract asset balance
31 December
2024
£m
At 1 January 2023
19.3
Revenue recognised
18.9
Transferred to trade receivables
(20.6)
Write-offs
(0.6)
At 31 December 2023
17.0
Revenue recognised
16.7
Transferred to trade receivables
(18.5)
Write-offs
(0.4)
At 31 December 2024
14.8
The amount of revenue recognised in 2024 from performance obligations satisfied (or partially satisfied) in previous periods
in relation to the above contract balances is £nil ( 2023: £nil).
6i. Financial liabilities
31 December 2024
Subordinated
loans
£m
Loan backed
securities
£m
Other
borrowings and
derivatives
£m
Lease liabilities
£m
Total
£m
Financial liability at the start of the period
315.2
759.6
55.0
81.2
1,211.0
Interest expense per Income Statement
23.0
47.9
2.1
2.6
75.6
Cashflows relating to interest1
(24.2)
(47.9)
(2.1)
(2.4)
(76.6)
Cashflows relating to principal - payments
(55.1)
(194.1)
(115.0)
(12.7)
(376.9)
Cashflows relating to principal - receipts
–
372.2
177.7
–
549.9
Other foreign exchange and non-cash movements
–
–
7.9
10.9
18.8
Financial liability at the end of the period
258.9
937.7
125.6
79.6
1,401.8
31 December 2023
Subordinated
loans
£m
Loan backed
securities
£m
Other
borrowings and
derivatives
£m
Lease liabilities
£m
Total
£m
Financial liability at the start of the period
204.4
714.7
20.0
88.5
1,027.6
Interest expense per Income Statement
17.5
40.6
5.4
2.0
65.5
Cashflows relating to interest1
(7.0)
(40.6)
(5.4)
(1.9)
(54.9)
Cashflows relating to principal - payments
(147.2)
(246.8)
(145.0)
(8.8)
(547.8)
Cashflows relating to principal - receipts
248.4
291.7
180.0
–
720.1
Other foreign exchange and non-cash movements
(0.9)
–
–
1.4
0.5
Financial liability at the end of the period
315.2
759.6
55.0
81.2
1,211.0
1Cashflows relating to interest are shown within finance costs paid, including expense paid on funding for loans
Admiral Group plc Annual Report and Accounts 2024
255
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Subordinated notes
Financial liabilities are inclusive of £250.0 million subordinated notes issued on 6 July 2023 at a fixed rate of 8.5% per annum with
a redemption date of 6 January 2034.
On 24 July 2024, the remaining 27.55% (£55.1 million) of subordinated loan notes issued on 25 July 2014 were repaid on maturity.
The notes are unsecured subordinated obligations of the Group and rank pari passu without any preference among themselves.
In the event of a winding-up or bankruptcy, they are to be repaid only after the claims of all other senior creditors have been met.
There have been no defaults on any of the notes during the year. The Group has the requirement to defer interest payments
on the notes in certain circumstances but to date none of these circumstances has arisen.
The fair value of subordinated notes (level one valuation based on quoted prices in active markets) at 31 December 2024
is £276.4 million (2023: £329.8 million).
The Group’s subordinated loan notes deed requires confirmation there is non-existence of the event of default or potential event
of default. The Group monitors compliance and there are no indicators that the default covenants will be breached in the
foreseeable future.
Other borrowings
The Group holds various revolving credit facilities including a £300.0 million facility which expires in April 2026 and a €100.0 million
facility which expires in August 2025. As at 31 December 2024, £117.4 million was drawn under these facilities (2023: £55.0 million),
which is shown within other borrowings in the table above. This is made up of £105.0 million from the sterling facility expiring April
2026 (2023: £35.0 million) and £12.4 million from the euro facility expiring August 2025 (2023: nil).
The carrying value is a reasonable approximation of fair value.
The Group's revolving credit facility agreement includes a covenant requiring that a percentage of the Group's Debt does
not exceed an adjusted net assets valuation as well as confirmation of no default. The Group monitors compliance and there
are no indicators that the covenants will be breached in the foreseeable future.
Loan backed securities
Asset backed senior loan note facilities of £1,000.0 million have been established in relation to the Admiral Money business
(see note 2 for details of the accounting treatment of SPEs). As at the year end, £937.7 million (2023: £759.6 million) of these
facilities had been utilised.
The carrying value is a reasonable approximation of fair value.
Lease liabilities
The Group leases various properties, with rental contracts typically for fixed periods of 5 to 25 years although these may have
extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes.
For each lease, a right-of-use asset and corresponding lease liability is recognised at the date at which the leased asset becomes
available for use by the Group.
The lease liability is initially measured at the present value of remaining lease payments, which include the following:
• Fixed payments (including in-substance fixed payments), less any lease incentives receivable
• Variable lease payments that are based on an index or a rate
• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group’s
incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain
an asset of a similar value in a similar economic environment, with similar terms and conditions. Generally, the Group uses its
incremental borrowing rate as the discount rate.
Subsequently, lease payments are allocated to the lease liability, split between repayments of principal and interest. A finance cost
is charged to the profit and loss so as to produce a constant period rate of interest on the remaining balance of the lease liability.
Whereby a change in lease term is identified, the lease liability is recalculated based on the present value of the remaining
lease payments.
Admiral Group plc Annual Report and Accounts 2024
256
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
7. Loans and Advances to Customers
7a. Accounting policies
Loans and advances to customers consist of unsecured personal loans and car finance products.  
Classification 
Loans and advances to customers are measured at amortised cost. This is because assets are held in order to collect contractual
cashflows and the contractual terms of the financial asset demand cash inflows which are solely payments of principal and interest
on the principal amount outstanding.  
Interest income and expense 
Interest income received in relation to loans and advances to customers is calculated using the effective interest method which
allocates interest, direct and incremental fees and costs over the expected lives of the assets and liabilities.
Interest expense is calculated using the effective interest rate appropriate to each source of funding. 
Finance leases 
Included within loans and advances to customers are personal contract purchase (PCP) and hire purchase (HP) arrangements
which are classified as finance leases under IFRS 16. A receivable equal to the net investment in the lease has been
recognised. The net investment is equal to the gross investment in the lease discounted at the rate implicit in the lease.  
Lease interest income is recognised within interest income in the income statement over the term of the lease using the effective
interest rate method.  
The title to the underlying vehicle remains with the Group until the lessee has made all contractual payments, at which point
ownership is transferred to the lessee. In the event of breach of contract, such as non-payment, the vehicle itself acts as collateral
for the finance lease, becoming available for repossession in most cases.
Some of the ways in which the Group maintains its rights to the vehicle, and thus manages the risk of loss associated with the
finance lease, include:
• The Group does not enter into any finance leases with a maximum loan-to-value limit, reducing the risk of shortfall on termination
of the contract
• The Group requires the lessee to insure the underlying vehicle at all times, reducing the risk of non-recovery if the asset is stolen
or destroyed
• The estimated future value of each vehicle, which is sourced externally, is considered in the pricing of the lease contracts
to provide protection against deterioration in that value.
7b. Loans and advances to customers
31 December
2024
£m
31 December
2023
£m
Loans and advances to customers – gross carrying amount
1,174.0
956.8
Loans and advances to customers – provision
(84.3)
(81.7)
Total loans and advances to customers – Admiral Money
1,089.7
875.1
Total loans and advances to customers – Other
17.2
4.3
Total loans and advances to customers
1,106.9
879.4
Loans and advances to customers are comprised of the following:
31 December
2024
£m
31 December
2023
£m
Unsecured personal loans
1,155.6
937.7
Finance leases
18.4
19.1
Other
18.6
4.4
Total loans and advances to customers, gross
1,192.6
961.2
Admiral Group plc Annual Report and Accounts 2024
257
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Fair value measurement
The loans and advances are recognised at fair value at the point of origination and then subsequently on an amortised cost basis.
This carrying value is deemed a reasonable approximation of fair value, which is calculated based on estimates using the present
value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.
Expected credit losses
The expected credit loss model is a three-stage model based on forward looking information regarding changes in the credit quality
since origination. Credit risk is measured using a Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD)
defined as follows:  
• Probability of Default (PD): The likelihood of an account defaulting; calibrated through analysis of historic customer behaviour.
Where customers have already met the definition of default this is 100%. For customers that are not in default the PD is
determined through analysis of historic default data using external and internal data sources available at the reporting date.
• Exposure at Default: The amount of balance at the time of default. For loans that are in arrears the EAD is taken as the current
balance plus any expected interest arrears. For up-to-date loans the EAD is calculated as the expected balance 3 months prior
to each period, plus 3 months of interest arrears to account for the time it takes to default following falling into arrears.  
• Loss Given Default (LGD): The amount of the asset not recovered following a borrower’s default, determined through analysis
of historic recovery performance. 
The PD is applied to the EAD to calculate the expected loss excluding recoveries. The LGD is then applied to this loss to calculate
the total expected loss including recoveries. A forward-looking provision is also calculated, as set out later in this note. 
Loan assets are segmented into three stages of credit impairment: 
• Stage 1 – no significant increase in credit risk of the financial asset since inception; 
• Stage 2 – significant increase in credit risk of the financial asset since inception; 
• Stage 3 – financial asset is credit impaired. 
For assets in stage 1, the allowance is calculated as the expected credit losses from events within 12 months after the reporting
date. For assets in stages 2 and 3 the allowance is calculated as the expected credit loss from events in the remaining lifetime
of each asset. The allowance is calculated for each loan at an individual level.
Significant increase in credit risk (SICR) (stage 2)
As explained above, stage 1 assets have an ECL allowing for losses in the next twelve months, and stage 2 or 3 assets have
an ECL allowing for losses over the remaining lifetime of the contract. An asset moves to stage 2 when its credit risk has increased
significantly since initial recognition. IFRS 9 does not prescribe a definition of significant increase in credit risk but does include
a rebuttable presumption that this does occur for loan assets which are 30 days past due (which the Group does not rebut).
The Group has deemed a significant increase in credit risk to have occurred where:
• The loan is in arrears, or
• The behavioural PD at reporting date has moved outside a specified threshold from the origination PD
• The customer is identified as being one or more payments in arrears on a credit product with a third party and reported to the
credit reference agency.
• The customer has hit a watchlist of high-risk statuses.
The Group maintains two probation periods:
• where a customer is up to date but previously has been 30+ days past due they will be held in stage 2 for 6 months;
• where a customer is up to date but previously Credit impaired (stage 3) they will be held in stage 2 for 12 months.
A range of metrics including accuracy rates, false positive rates, oscillation rates and the Mathews correlation are monitored
to ensure the SICR criteria is effective.
Credit impaired (stage 3)
The Group does not rebut the presumption within IFRS 9 that default has occurred when an exposure is greater than 90 days past
due, which is consistent with a customer being three or more payments in arrears. In addition, a loan is deemed to be credit
impaired where:
• There is an Individual Voluntary Arrangement (IVA) agreement confirmed or proposed, or
• Customer has started or progressed bankruptcy action, or
• An external repayment plan is in place, or
• A customer is deceased.
Admiral Group plc Annual Report and Accounts 2024
258
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
As at 31 December 2024, there were 8,400 loans totalling £48.5 million that were subject to forbearance (2023: 7,300 loans
totalling £40.1 million). Of these, 7,800 loans totalling £47.4 million are included within Stage 3 (2023: 7,300 loans totalling
£40.1 million). Significant categories of forbearance arrangements include Bankruptcy, Debt Management Plans and Individual
Voluntary Arrangements.
Judgements required – Post Model Adjustments (‘PMA’s)
As at 31 December 2024, the expected credit loss allowance included PMAs totalling £4.6 million (2023: £9.2 million).
Post Model Adjustments
31 December
2024
£m
31 December
2023
£m
Model performance
1.5
2.0
Cost of Living
1.3
6.5
Economic scenarios
1.8
0.7
4.6
9.2
PMAs are calculated using management judgement and analysis. The key categories of PMAs are as follows:
Model performance
The LGD model considers long run recoveries over a period of up to five years post default. A potential shortfall has been identified
for customers that roll straight through the arrears buckets up the point of write off. Although this shortfall is immaterial, an
adjustment has been made to ensure it is accounted for in our expected credit loss.
Cost of Living
This PMA captures the risk of customers falling into a negative affordability position, whereby customers are no longer able to meet
their credit commitments due to higher expenditure driven by increased mortgage payments, when their standard variable or fixed
term rate comes to an end. A PMA is held to acknowledge this, using both external and internal data.
Economic scenarios
A new econometric model has been implemented to derive our forward-looking view of ECL’s. The model is sensitive to the timing
of forecasted peaks in, for example, unemployment rates. Given increased uncertainty driven by geo-political events, management
has made an adjustment equivalent to a six-month advancement in the peak point of each scenario.
Write off policy
Loans are written off where there is no reasonable expectation of recovery. The Group considers there to be no reasonable
expectation of recovery where an extensive set of collections processes has been completed, the debt is statute barred, the debtor
cannot be traced or is deceased, or in situations involving significant financial hardship. The Group’s policy is to write down
balances to their estimated net realisable value. Write offs are actioned on a case-by-case basis taking into account the operational
position and the collections strategy.
Forward-looking information
Under IFRS 9 the provision must reflect an unbiased and probability-weighted amount that is determined by evaluating a range
of possible outcomes. The means by which the Group has determined this is to run scenario analysis.
Management judgment has been used to define the weighting and severity of the different scenarios based on available data.
As at December 2024 there are three key economic drivers of credit losses factored into the scenarios, as follows:
• UK Unsecured DTI
• UK Employment Hazard Rates
• Annual UK GDP % Change
The variables are combined using a statistical model which will estimate the relative change in the PD of an account for each
scenario over the life of the loan. The Group has moved from a single variable model as at December 2023 (Unemployment)
to model containing three drivers in recognition of the fact that there are multiple macroeconomic drivers which can influence
the direction of default rates.
The scenario weighting assumptions used are detailed below, along with the annual peak for each economic driver assumed
in each scenario at 31 December 2024.
Admiral Group plc Annual Report and Accounts 2024
259
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
At 31 December 2024
For the Forecast Year Ended
2025
2026
2027
2028
2029
%
%
%
%
%
Base - 50%
Gross domestic product
1.6
1.6
1.6
1.7
1.7
Unemployment rate
4.4
4.3
4.1
4.1
4.1
UK Household Unsecured Debt to Income
13.2
13.7
14.1
14.4
14.5
Upside - 10%
Gross domestic product
2.7
3.0
1.8
1.6
1.8
Unemployment rate
4.2
3.8
3.8
3.8
3.8
UK Household Unsecured Debt to Income
12.6
12.3
11.9
12.2
12.3
Downside - 30%
Gross domestic product
0.9
0.1
3.0
3.0
2.7
Unemployment rate
5.6
6.0
5.6
4.9
4.6
UK Household Unsecured Debt to Income
13.4
14.5
15.0
15.1
15.1
Severe - 10%
Gross domestic product
0.8
(1.1)
2.6
3.4
3.1
Unemployment rate
6.6
8.0
7.9
6.8
6.1
UK Household Unsecured Debt to Income
13.6
15.0
15.7
15.9
16.1
Probability-weighted
Gross domestic product
1.4
1.0
2.1
2.3
2.1
Unemployment rate
5.0
5.1
4.9
4.6
4.4
UK Household Unsecured Debt to Income
13.2
13.9
14.3
14.5
14.6
For the Forecast Year Ended
At 31 December 2023
2025
2026
2027
2028
2029
%
%
%
%
%
Base - 50%
Gross domestic product
1.5
1.6
1.6
1.8
1.9
Unemployment rate
4.7
4.2
4.1
4.1
4.1
UK Household Unsecured Debt to Income
13.8
14.2
14.4
14.5
14.5
Upside - 10%
Gross domestic product
2.7
2.4
2.1
1.6
1.4
Unemployment rate
3.6
3.7
3.8
3.9
3.9
UK Household Unsecured Debt to Income
12.5
12.4
12.5
12.5
12.4
Downside - 30%
Gross domestic product
0.1
3.0
3.0
3.0
2.3
Unemployment rate
6.0
5.7
4.9
4.6
4.5
UK Household Unsecured Debt to Income
14.5
14.8
15.0
15.2
15.2
Severe - 10%
Gross domestic product
(1.8)
3.0
3.9
3.9
3.0
Unemployment rate
8.0
8.0
6.7
5.9
5.4
UK Household Unsecured Debt to Income
15.1
15.7
15.9
16.1
16.2
Probability-weighted
Gross domestic product
0.8
2.2
2.3
2.3
2.1
Unemployment rate
5.3
4.9
4.6
4.4
4.3
UK Household Unsecured Debt to Income
14.0
14.4
14.6
14.7
14.7
The economic scenarios and forecasts have been updated in conjunction with a third party economics provider. The probability
weightings reflect the view that there is a probability of 40% attached to recessionary outcomes. 
Admiral Group plc Annual Report and Accounts 2024
260
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Sensitivities to key areas of estimation uncertainty
The key areas of estimation uncertainty identified, as per note 2 to the financial statements, are in the PD and the forward-looking
scenarios.
31 December 2024
Weighting
31 December 2024
Sensitivity
31 December 2023
Weighting
31 December 2023
Sensitivity
Base
50%
(1.7)
50%
(1.1)
Upturn
30%
(3.3)
10%
(5.2)
Downturn
10%
2.9
30%
2.5
Severe
10%
6.3
10%
8.2
The sensitivities in the above tables show the variance to ECL that would be expected if the given scenario unfolded rather than
the weighted position the provision is based on. At 31 December 2024 the implied weighted peak unemployment rate is 5.0%:
the table shows that in a downturn scenario with a 5.6% peak unemployment rate the provision would increase by £2.9 million,
whilst the upturn would reduce the provision by £3.3 million, base case reduce by £1.7 million and severe increase the provision
by £6.3 million.
Stage 1 assets represent 86.6% of the total loan assets; 0.1% increase in the stage 1 PD, i.e. from 2.3% to 2.4% would result
in a £0.8 million increase in ECL.
Amounts arising from ECL: loans and advances to customers
The following table sets out information about the credit quality of the loans and advances to customers measured at amortised
cost. Credit grades are used to segment customers by apparent credit risk at the time of acquisition. Higher grades are the lowest
credit risk with each subsequent grade increasing in expected credit risk. The Group does not have any purchased or originated
credit impaired assets. These tables are inclusive of the finance lease assets which are held by the Group, further analysis of these
balances can be found in note 7c.
All probability of default figures included in this paragraph allow for forward-looking information, i.e. the PDs are a weighted average
from the economic scenarios considered and relate to the Admiral Money consumer lending business. The average probability
of default in for stage 1 assets is 3.3% (2023: 2.2%) reflecting the expectation of defaults within 12 months of the reporting date.
The average PD for assets in stage 2 is 29.9% (2023: 36.8%) reflecting expected losses over the remaining life of the assets.
The PD for assets in stage 3 is 100% (2023: 100%) as these assets are deemed to have defaulted.
31 December
2024
31 December
2023
Stage 1 
12 month ECL 
£m 
Stage 2 
Lifetime ECL 
£m
Stage 3  
Lifetime ECL 
£m
Total 
£m
Total 
£m
Credit Grade1
Higher
786.5
67.6
–
854.1
649.3
Medium
171.2
21.3
–
192.5
186.6
Lower
53.9
9.1
–
63.0
65.4
Credit impaired
–
–
64.4
64.4
55.5
Gross carrying amount
1,011.6
98.0
64.4
1,174.0
956.8
Expected credit loss allowance
(15.5)
(19.8)
(48.5)
(83.8)
(81.1)
Other loss allowance2
(0.5)
–
–
(0.5)
(0.6)
Carrying amount – Admiral Money
995.6
78.2
15.9
1,089.7
875.1
Carrying amount – Other
16.8
0.3
0.1
17.2
4.3
Carrying amount
1,012.4
78.5
16.0
1,106.9
879.4
1Credit grade is the internal credit banding given to a customer at origination. This is based on external credit rating information.
2Other loss allowance covers losses due to a reduction in current or future vehicle value or costs associated with recovery and sale of vehicles and those as a result of changes in the
performance of the EIR asset.
Admiral Group plc Annual Report and Accounts 2024
261
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
The following tables reconcile the opening and closing gross carrying amount and expected credit loss allowance. Loans originated
in the year are initially classified as Stage 1. In the following tables, the loans are presented in line with their staging as at each
year end.
2024
Stage 1 
12-Month ECL
£m
Stage 2
Lifetime ECL
£m
Stage 3 
Lifetime ECL
£m
Total 
Gross carrying amount as at 1 January 2024
779.6
126.0
55.6
961.2
Transfers 
     Transfers from stage 1 to stage 2 
(50.1)
50.1
–
–
     Transfers from stage 1 to stage 3 
(20.7)
–
20.7
–
     Transfers from stage 2 to stage 1 
45.4
(45.4)
–
–
     Transfers from stage 2 to stage 3 
–
(17.5)
17.5
–
     Transfers from stage 3 to stage 1 
0.3
–
(0.3)
–
     Transfers from stage 3 to stage 2 
–
1.2
(1.2)
–
Principal redemption payments 
(355.9)
(49.9)
(7.0)
(412.8)
Write offs 
–
–
(25.4)
(25.4)
EIR adjustment
1.1
(0.2)
–
0.9
New financial assets originated or purchased 
629.6
34.0
5.1
668.7
Gross carrying amount as at 31 December 2024
1,029.3
98.3
65.0
1,192.6
Of the amounts written off during the year, £13.6 million related to loans which were still subject to enforcement activity (2023: £8.3
million). The loss allowance in place in relation to these loans at the time of writing off totalled £13.6 million (2023: £7.9 million).
The EIR adjustment represents incremental acquisition costs incurred when advancing loans. These costs are spread over the
expected economic lives of the loans under the effective interest rate method.
2023
Stage 1 
12-Month ECL
£m
Stage 2
Lifetime ECL
£m
Stage 3 
Lifetime ECL
£m
Total
Gross carrying amount as at 1 January 2023
728.3
125.3
34.0
887.6
Transfers
     Transfers from stage 1 to stage 2
(60.2)
60.2
–
–
     Transfers from stage 1 to stage 3
(19.4)
–
19.4
–
     Transfers from stage 2 to stage 1
51.7
(51.7)
–
–
     Transfers from stage 2 to stage 3
–
(10.8)
10.8
–
     Transfers from stage 3 to stage 1
0.3
–
(0.3)
–
     Transfers from stage 3 to stage 2
–
0.8
(0.8)
–
Principal redemption payments
(315.0)
(48.8)
(5.5)
(369.3)
Write offs
–
–
(15.6)
(15.6)
EIR adjustment
0.3
0.2
0.2
0.7
New financial assets originated or purchased
393.6
50.8
13.4
457.8
Gross carrying amount as at 31 December 2023
779.6
126.0
55.6
961.2
Admiral Group plc Annual Report and Accounts 2024
262
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
2024
Stage 1 
12-Month ECL
£m
Stage 2
Lifetime ECL
£m
Stage 3 
Lifetime ECL
£m
Total
£m
Expected credit loss allowance as at 1 January 2024
12.7
29.3
39.3
81.3
Movements with a profit and loss impact
Transfers
     Transfers from stage 1 to stage 2
(1.5)
3.0
–
1.5
     Transfers from stage 1 to stage 3
(0.7)
–
1.5
0.8
     Transfers from stage 2 to stage 1
4.6
(8.2)
–
(3.6)
     Transfers from stage 2 to stage 3
–
(6.4)
6.4
–
     Transfers from stage 3 to stage 1
0.1
–
(0.2)
(0.1)
     Transfers from stage 3 to stage 2
–
0.3
(0.3)
–
Changes in PDs/LGDs/EADs
(8.4)
(5.0)
24.4
11.0
New financial assets originated or purchased
10.2
7.1
3.7
21.0
Total profit and loss charge in the period
4.3
(9.2)
35.5
30.6
Write-offs
–
–
(26.1)
(26.1)
Expected credit loss allowance as at 31 December 2024
17.0
20.1
48.7
85.8
2023
Stage 1 
12-Month ECL
£m
Stage 2
Lifetime ECL
£m
Stage 3 
Lifetime ECL
£m
Total
£m
Expected credit loss allowance as at 1 January 2023
13.4
23.5
26.2
63.1
Movements with a profit and loss impact
Transfers
     Transfers from stage 1 to stage 2
(1.9)
5.0
–
3.1
     Transfers from stage 1 to stage 3
(0.7)
–
1.9
1.2
     Transfers from stage 2 to stage 1
3.4
(7.4)
–
(4.0)
     Transfers from stage 2 to stage 3
–
(3.2)
3.2
–
     Transfers from stage 3 to stage 1
–
–
(0.1)
(0.1)
     Transfers from stage 3 to stage 2
–
0.3
(0.3)
–
Changes in PDs/LGDs/EADs
(9.5)
(1.4)
13.6
2.7
New financial assets originated or purchased
8.0
12.5
9.8
30.3
Total profit and loss charge in the period
(0.7)
5.8
28.1
33.2
Write-offs
–
–
(15.0)
(15.0)
Expected credit loss allowance as at 31 December 2023
12.7
29.3
39.3
81.3
Admiral Group plc Annual Report and Accounts 2024
263
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
7c. Finance lease receivables
Loans and advances to customers include the following finance leases. The Group is the lessor for leases of cars.
31 December
2024
£m
31 December
2023
£m
Gross investment in finance leases, receivable 
Less than 1 year 
7.8
7.0
Between 1 to 5 years  
13.4
14.3
More than 5 years 
–
–
21.2
21.3
Unearned finance income 
(2.8)
(2.2)
Net investment in lease receivables  
18.4
19.1
Less impairment allowance 
(0.3)
(0.3)
18.1
18.8
 
Net investment in finance leases, receivable 
Less than 1 year 
6.4
5.7
Between 1 to 5 years  
12.0
13.4
More than 5 years 
–
–
18.4
19.1
The net investment in finance leases shown above includes an unguaranteed residual value of £0.2 million (2023: The net
investment in finance leases shown above is net of the unguaranteed residual value of £0.2 million).
7d. Interest income
31 December
2024
£m
31 December
2023
£m
From loans and advances to customers
107.9
90.2
From finance leases
1.2
2.0
From bank interest
4.4
2.7
113.5
94.9
Interest income receivable is recognised in the income statement using the effective interest method, which calculates
the amortised cost of the financial asset and allocates the interest income over the expected product life.
Admiral Group plc Annual Report and Accounts 2024
264
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
7e. Interest expense
31 December
2024
£m
31 December
2023
£m
Interest payable on loan backed securities
32.0
23.4
Interest payable on other credit facilities
5.2
3.4
Total interest expense1
37.2
26.8
1Interest paid in total net of swaps during the year was £42.7 million (2023: £25.6 million).
8. Other revenue and co-insurer profit commission
8a. Accounting policies
(i) Composition of Other revenue and co-insurer profit commission
Other revenue falling within the scope of IFRS 15 Revenue from Contracts with Customers is generated from:
• Fee and commission revenue related to the sale of insurance contracts (see note 5).
Where additional fee and commission revenue is generated from the sale of insurance contracts, but that revenue is separable from
the host insurance contract in accordance with the principles of IFRS 17, and the goods or services provided to the policyholder are
distinct, the revenue is recognised applying IFRS 15.
• Revenue from the Group’s law firm
• Comparison income
Other revenue also includes instalment income on insurance premium paid via instalments, where it is not recognised under IFRS 17
(see note 5) due to the income being separable from the host insurance contract. This instalment income is recognised over time
in line with the provision of the service.
Co-insurer profit commission revenue falling within the scope of IFRS 15 Revenue from Contracts with Customers relates primarily
to a contractual arrangement between the Group’s insurance intermediary EUI Limited, and an external co-insurer (Great Lakes,
a subsidiary of Munich Re) which underwrites a share of the UK Car Insurance business generated by EUI Limited.
(ii) Nature of goods and services
The following is a description of the principal activities within the scope of IFRS 15 from which the Group generates its other revenue.
Admiral Group plc Annual Report and Accounts 2024
265
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Products and services
Nature, timing of satisfaction of performance obligations and significant payment terms
Fee and commission
revenue, including
instalment income and
administration fees:
where the income
is separable from
the underlying
insurance contract
The performance obligation is the provision of insurance intermediary services, being a successful
sale of ancillary product at which point the performance obligation is met, and in the case
of instalment income, the provision of credit. Revenue for intermediary services is therefore
recognised at a point in time, whilst revenue for the provision of credit is recognised over time,
matching the Group’s provision of services. Where the Group has no remaining obligations, the
revenue is recognised immediately. An allowance is made for expected cancellations where the
customer may be entitled to a refund of amounts charged.
Payment from revenue generated from policyholders is due immediately, or in line with direct debit
instalments. Payments from external parties is due within 30 days of the period close.
Revenue from law firm
The performance obligation is the pursuit of the compensation from the at fault party’s insurer
on behalf of the customer. Once the case is settled the performance obligation is fully satisfied.
Revenue is therefore recognised over time using the expected value method. This method values
revenue by multiplying hours incurred on open cases by a 12-month realisable rate. The realisable
rate is a probability weighted transaction price based on closed cases. The expected value method
therefore results in revenue recognised being constrained to that where there is a high probability
of no significant reversal.
Revenue is recognised over time because the Group has an enforceable right to payment
for performance completed to date and the work performed to date has no alternative use
to the Group.
A contract asset is recognised equal to the work performed up to the balance sheet date.
Refer to note 6h for further detail of this balance.
Payment is due within 28 days of invoice.
Profit commission
from co-insurers
Profit commission is generated if an individual year is profitable, based on the premiums written
and expenses and claims costs incurred. Given that the ultimate outcome of the claims cost is
uncertain for a period of time until final settlement, profit commission is therefore variable. 
The cumulative profit commission recognised at each point in time is calculated in aggregate
across the contract, in line with contract terms, based on a number of detailed inputs for each
individual underwriting year, the most material of which are as follows:
• Premiums, defined as gross premiums ceded including any instalment income, less reinsurance
premium (for excess of loss reinsurance).
• Insurance expenses incurred.
• Claims costs incurred.
Whilst the premiums and insurance expenses related to an underwriting year are typically fixed
at the conclusion of each underwriting year and are not subject to judgement, the claims cost
is subject to inherent uncertainty. This results in the co-insurer profit commission recognised under
IFRS 15 being a variable amount.
As such:
• The Group uses the expected value method for the initial calculation of profit commission
revenue, based on known premiums and expenses, and the best estimate of claims costs.
• The variable revenue estimated using the expected value method above is constrained through
the inclusion of the risk adjustment within the claims cost element of the calculation, with the
profit commission recognised aligned to the IFRS 17 booked loss ratios, discounted at locked-in
rates, and inclusive of finance expense. The inclusion of the risk adjustment constrains the
cumulative profit commission revenue recognised to a level where there is a high probability
of no significant reversal.
The key methods, inputs and assumptions used to estimate the variable consideration of profit
commission are therefore in line with those used for the calculation of claims liabilities, as set out
in note 3 to the financial statements, with further detail also included in note 5. There are no further
critical accounting estimates or judgements in relation to the recognition of profit commission.
Comparison income
The performance obligation is the provision of insurance intermediary services, at which point the
performance obligation is met. Revenue is therefore recognised at a point in time.
Profit commission from reinsurers is within the scope of IFRS 17, and not within the scope of IFRS 15 Revenue from Contracts with
Customers due to the nature of the income.
Under IFRS 17 a significant proportion of “Other revenue” recognised as insurance revenue given that it is not separable from the
underlying insurance contract.
Admiral Group plc Annual Report and Accounts 2024
266
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
8b. Disaggregation of revenue
In the following tables, other revenue is disaggregated by major products/service lines and timing of revenue recognition. The total
revenue disclosed in the table of £189.6 million (2023: £205.7 million) represents total other revenue and co-insurer profit
commission and is disaggregated into the segments included in note 4.
31 December 2024
UK Insurance
£m
International
Insurance
£m
Admiral Money
£m
Other
£m
Total Group
£m
Major products/service line
Fee and commission revenue
119.5
0.1
0.2
0.2
120.0
Revenue from law firm
16.3
–
–
–
16.3
Comparison income
–
–
–
–
–
Total other revenue
135.8
0.1
0.2
0.2
136.3
Profit commission from co-insurers
53.3
–
–
–
53.3
Total other revenue and co-insurer profit commission
189.1
0.1
0.2
0.2
189.6
Timing of revenue recognition
Point in time
139.0
0.1
0.2
0.2
139.5
Over time
50.1
–
–
–
50.1
189.1
0.1
0.2
0.2
189.6
31 December 2023
UK Insurance
£m
International
Insurance
£m
Admiral Money
£m
Other
£m
Total Group
£m
Major products/service line
Fee and commission revenue
107.2
–
0.1
–
107.3
Revenue from law firm
18.3
–
–
–
18.3
Comparison income
–
–
–
1.6
1.6
Total other revenue
125.5
–
0.1
1.6
127.2
Profit commission from co-insurers
76.5
2.0
–
–
78.5
Total other revenue and co-insurer profit commission
202.0
2.0
0.1
1.6
205.7
Timing of revenue recognition
Point in time
160.4
2.0
0.1
1.6
164.1
Over time
41.6
–
–
–
41.6
202.0
2.0
0.1
1.6
205.7
Profit commission analysis
31 December
2024
£m
31 December
2023
£m
Underwriting year
2020 & prior
51.7
76.5
2021
–
–
2022
–
–
2023
–
–
2024
1.6
–
Total UK Motor profit commission
53.3
76.5
Admiral Group plc Annual Report and Accounts 2024
267
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
9. Directly attributable and other expenses
9a. Accounting policies
(i) Directly attributable insurance expenses
Directly attributable expenses are cashflows that are directly attributable to a portfolio of insurance contracts and recognised
as incurred insurance service expenses. See note 5a for details of the types of expenses recognised as directly attributable
insurance expenses.
(ii) Other operating expenses
All other operating expenses are charged to the income statement in the period that they are incurred.
(iii) Employee benefits
As detailed in the Remuneration Committee Report, the key elements of employee remuneration are:
• Base salaries and pension contributions;
• Share based incentive plans;
• A discretionary bonus, (the ‘DFSS Bonus’), rather than an annual cash bonus, that is based on the number of DFSS awards held
and actual dividends paid out to shareholders.
Within note 9b, the charges for base salaries and pension contributions (and the related social security costs) are recognised within
Administration and acquisition expenses, Expenses relating to additional products and fees and Other expenses based on the role
of the employee.
Charges for the share-based incentive plans (and related social security costs) and discretionary bonus are included within share
scheme charges. These charges are not shown as part of the result for each reportable segment, or within the expense ratio,
due to them being materially comprised of an accounting charge in line with IFRS 2 Share-based payments which does not result
in a cash payment to employees but instead results in an issue of new shares (resulting in a dilution of existing shares).
The rules of the share schemes ensure that the actual dilution level does not exceed 10% in any rolling ten-year period.
Base salaries and pension contributions
Base salaries and the related employer social security costs are charged to the income statement in the period that they are incurred.
The Group contributes to defined contribution personal pension plans for its employees. The contributions payable to these
schemes are charged in the accounting period to which they relate.
Share based incentive plans and related social security costs
The Group operates a number of equity and cash settled compensation schemes for its employees, the main ones being:
• A Share Incentive Plan (SIP), which is in place for all UK employees encouraging wide share ownership across employees, and
• The Discretionary Free Share Scheme (DFSS). DFSS shares are typically awarded to managers, and for the majority of employees
50% of DFSS shares awarded are subject to financial and non-financial performance conditions. The financial performance
conditions are Earnings per Share growth, Return on Equity and Total Shareholder Return vs. the FTSE 350 (excluding investment
companies) over a three-year period. The non-financial performance conditions include measures for group net promoter scores,
diversity and inclusion. The other 50% of DFSS shares awarded are guaranteed with continued employment.
For both schemes, employees must remain in employment three years after the award date (i.e. at the vesting date), otherwise
the shares are forfeited.
The majority of these schemes are classed as equity settled under IFRS 2, due to the employees receiving shares (rather than cash)
as consideration for the services provided.
For equity settled schemes, the charge which represents the fair value of the employee services received and to which is measured
by reference to the fair value of the shares granted, is recognised as an expense, with a corresponding increase in equity, as shown
in Consolidated statement of changes in equity (2024: £67.8 million; 2023: £63.3 million).
For the cash settled schemes, the expense recognised for the fair value of services received results in a corresponding increase
in liabilities.
Admiral Group plc Annual Report and Accounts 2024
268
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
The key drivers and assumptions used to calculate the charge for the schemes over the three year vesting period are:
• The number of shares awarded, which is set at the start of each scheme. Details of the number of shares awarded for each
scheme where shares remain unvested is set out in note 9f(iii).
• The fair value of the shares;
– For the SIP, the fair value of the shares awarded is the share price at the award date. Awards under the SIP are entitled
to receive dividends, and hence no adjustment is made to this fair value.
– For the DFSS equity settled awards, awards are not eligible for dividends, although a discretionary bonus is currently paid
equivalent to the dividend that would have been paid on the shareholding, hence the fair value of the shares is revised
downwards to take account of these expected dividends.
– For the DFSS cash settled awards, the fair value is based on the share price at the vesting date. The closing share price
at the end of each reporting period is used as an approximation for the closing price at the end of the vesting period.
• Employee attrition rates, which impact the ultimate number of shares that vest.
• In the case of the DFSS, the vesting rates based on the performance conditions, which also impact the ultimate number of shares
that vest.
The number of shares that have ultimately vested compared to those originally awarded is set out in note 9f(iv).
At each balance sheet date, the Group revises its assumptions on the number of shares which will ultimately vest based on the
latest forecast information for attrition rates and, for the DFSS, the extent to which the performance conditions are met.
The financial impact as a result of any change in the assumptions is recognised through the income statement. Any significant
changes in assumptions may therefore result in an increased / decreased charge in an accounting period as a result of this true-up
of the expected cumulative charge required.
Social security costs on share-based incentive plans
Social security costs are incurred by the Group in respect of the share-based incentive plans, with the expense recognised over the
vesting period for each share scheme. For the SIP, these costs are paid when the employees sell the shares after vesting (typically
3-5 years after the grant date). For the DFSS, the costs are paid immediately upon vesting.
The total social security costs are calculated based on the following:
• The taxable value of the shares, being:
– For the SIP, the lower of the share price at award date and the share price at the balance sheet date.
– For the DFSS, the share price at the balance sheet date.
• The number of shares expected to vest for each scheme, driven by the number of shares awarded, attrition rates and,
for the DFSS, the vesting rate based on performance conditions.
• The appropriate social security rate.
These assumptions are updated at the end of each reporting period. The financial impact as a result of any change in the
assumptions is recognised through the income statement. Any significant changes in assumptions may therefore result in an
increased / decreased charge in an accounting period as a result of this true-up of the expected cumulative charge required.
Discretionary bonus on shares allocated but unvested
The cost of the DFSS bonus is recognised and paid in each period equivalent to the dividends on shares allocated to employees
that are still entitled to vest but have not yet vested. The cost shown also includes the social security costs on the discretionary
bonus. No accrual is made for future discretionary bonus payments due to there being no contractual obligation for such a bonus
at the balance sheet date.
Admiral Group plc Annual Report and Accounts 2024
269
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
9b. Operating expenses and share scheme charges
31 December 2024
Directly
attributable
expenses
£m
Other operating
expenses
£m
Total expenses
£m
Administration and acquisition expenses
1,015.9
121.3
1,137.2
Expenses relating to additional products and fees
–
46.2
46.2
Share scheme expenses
58.6
35.3
93.9
Loan expenses (excluding movement on ECL provision)
–
29.9
29.9
Movement in expected credit loss provision
–
34.6
34.6
Profit on disposal of Insurify share option
–
(12.5)
(12.5)
Other1
–
73.4
73.4
Total
1,074.5
328.2
1,402.7
31 December 2023
Directly
attributable
expenses
£m
Other operating
expenses
£m
Total expenses
£m
Administration and acquisition expenses
836.8
100.8
937.6
Expenses relating to additional products and fees
–
41.4
41.4
Share scheme expenses
55.3
28.5
83.8
Loan expenses (excluding movement on ECL provision)
–
23.0
23.0
Movement in expected credit loss provision
–
31.0
31.0
Other1
–
57.1
57.1
Total
892.1
281.8
1,173.9
1Other includes centralised costs primarily for employees and projects (2024: £49.9 million, 2023: £34.5 million), business development costs (2024: £19.9 million, 2023: £15.3 million)
and other costs (2024: £3.6 million, 2023: £7.3 million).
9c. Employee costs and other expenses
31 December
2024
£m
31 December
2023
£m
Salaries
470.7
439.4
Social security charges on salaries
49.3
45.5
Pension costs
17.4
16.5
Share scheme charges (see note 9f)
93.9
83.8
Total employee expenses
631.3
585.2
Depreciation charge:
– Owned assets
10.0
11.2
– ROU assets
8.8
7.0
Amortisation charge:
– Software, customer contracts, relationships and brand
61.6
40.3
Auditor’s remuneration (including VAT) (total Group):
– Fees payable for the audit of the Company’s annual accounts
0.5
0.3
– Fees payable for the audit of the Company’s subsidiary accounts
2.5
3.0
– Fees payable for audit related assurance services pursuant to legislation or regulation
1.2
1.1
£141,600 (inclusive of VAT) (2023: £146,000) was payable to the auditor for other services in the year.
Refer to the Corporate Governance Report for details of the Audit Committee’s policy on fees paid to the Company’s auditor
for non-audit services. Audit fees are 71% (2023: 74%) of total fees and 29% (2023: 26%) of total fees are for non-audit services,
which are classed as audit related assurance services under the FRC rules on non-audit services.
The majority of amortisation of software is charged to directly attributable expenses in the income statement.
Admiral Group plc Annual Report and Accounts 2024
270
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
9d. Employee numbers (including Directors)
Average for the year
31 December
2024
Number
31 December
2023
Number
Direct customer contact employees
9,754
8,365
Support employees
4,766
4,276
Total
14,520
12,641
9e. Directors' remuneration
(i) Directors’ remuneration
31 December
2024
£m
31 December
2023
£m
Directors’ emoluments
1.2
1.2
Amounts receivable under SIP and DFSS share schemes
5.3
2.1
Company contributions to money purchase pension plans 
0.1
—
Total1
6.6
3.3
1Directors’ remuneration is stated as that of the Executive Directors. For information on Non-Executive Directors’ remuneration see the remuneration report.
(ii) Number of Directors
2024
Number
2023
Number
Retirement benefits are accruing to the following number of Directors under:
– Money purchase schemes
2
2
9f. Employee share schemes
Total share scheme costs for the Group are analysed below:
31 December 2024
SIP charge (i)
£m
DFSS charge (ii)
£m
Total charge
£m
IFRS 2 charge for equity settled share schemes
18.8
49.1
67.9
IFRS 2 charge for cash settled share schemes
–
3.2
3.2
Total IFRS 2 charge
18.8
52.3
71.1
Social security costs on IFRS 2 charge
1.6
8.7
10.3
Discretionary bonus on shares allocated but unvested
–
12.5
12.5
Total share scheme charges
20.4
73.5
93.9
Amounts recovered from co-and reinsurance arrangements
(31.7)
Net share scheme charges
62.2
31 December 2023
SIP charge (i)
£m
DFSS charge (ii)
£m
Total charge
£m
IFRS 2 charge for equity settled share schemes
17.0
46.3
63.3
IFRS 2 charge for cash settled share schemes
–
3.2
3.2
Total IFRS 2 charge
17.0
49.5
66.5
Social security costs on IFRS 2 charge
1.3
7.3
8.6
Discretionary bonus on shares allocated but unvested
–
8.7
8.7
Total share scheme charges
18.3
65.5
83.8
Amounts recovered from co-and reinsurance arrangements
(29.4)
Net share scheme charges
54.4
Admiral Group plc Annual Report and Accounts 2024
271
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Share scheme charges are presented on a net basis within the strategic report, after allocations to co-insurers (in the UK and Italy)
and reinsurers, in line with internal management reporting. The proportion of net to gross share scheme charges would be expected
to be consistent in each period, at approximately 65%.
Financial year ended 31 December 2024
Analysis of gross cost
2021 & prior
2022
2023
2024
Total cumulative
charge to date
£m
£m
£m
£m
£m
Year of share scheme - SIP
2020
9.8
5.4
3.1
–
18.3
2021
4.4
5.4
5.3
3.1
18.2
20221
–
3.1
5.3
5.8
14.2
20231
–
–
3.3
6.0
9.3
20241
3.9
3.9
Gross IFRS 2 costs – SIP
17.0
18.8
Year of share scheme - DFSS
2020
17.7
14.6
10.0
–
42.3
2021
4.9
13.4
19.2
11.9
49.4
20222
–
3.5
14.9
16.2
34.6
20232
–
–
5.4
18.0
23.4
20242
6.2
6.2
Gross IFRS 2 costs - DFSS
49.5
52.3
Total IFRS 2 costs
66.5
71.1
1Awards are made in March and September of each year, and vest over 36 months from award date. On the 2022 schemes, an average of 5 months’ charge remains outstanding,
on the 2023 schemes an average of 17 months’ charge remains outstanding, and on the 2024 schemes an average of 29 months’ charge remains outstanding.
2The main award is made in September of each year, with smaller awards made at other points through the year. The shares vest over 36 months from award date. On the 2022 main
DFSS, 9 months’ charge remains outstanding; on the 2023 main DFSS 21 months’ charge remains outstanding, and on the 2024 main DFSS, 33 months’ charge remains outstanding.
(i) The Approved Share Incentive Plan (the SIP)
Eligible UK based employees qualify for awards under the SIP based upon the performance of the Group in each half-year period.
The maximum award for each year is £3,600 per employee and the maximum number of shares that can vest relating to the 2024
schemes is 929,237 (2023 schemes: 1,045,697; 2022 schemes: 872,728).
The awards are made at the discretion of the Remuneration Committee, taking into account the Group’s performance.
(ii) The Discretionary Free Share Scheme (the DFSS)
Under the DFSS, details of which are contained in the remuneration policy section of the Directors’ Remuneration Report, individuals
receive an award of free shares at no charge.
The maximum number of shares that can vest relating to the 2024 schemes is 3,516,290 (2023 scheme: 3,360,665; 2022 scheme:
3,070,323).
The vesting percentage for most employees for the 2021 DFSS scheme which vested during 2024 was 68.6% (2020 DFSS scheme:
78.25%).
(iii) Number of free share awards committed at 31 December 2024
Awards outstanding1
SIP 20222
872,728
SIP 20232
1,045,697
SIP 20242
929,237
DFSS 20223
3,070,323
DFSS 20233
3,360,665
DFSS 20243
3,516,290
Total awards committed
12,794,940
1Being the maximum number of awards committed before accounting for expected employee attrition and vesting conditions
2Shares are awarded in March and September of each year, and vest three years later
3The main award is made in September of each year, with smaller awards made at other points through the year
Admiral Group plc Annual Report and Accounts 2024
272
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
(iv) Number of free share awards vesting during the year ended 31 December 2024
During the year ended 31 December 2024, awards under the SIP H1 2021 and H2 2021 schemes and the DFSS 2021 schemes
vested. The total number of awards vesting for each scheme is as follows.
Original awards
Awards vested
SIP 2021 schemes
688,384
570,961
DFSS 2021 schemes
2,850,114
1,724,677
The difference between the original and vested awards reflects employee attrition (SIP schemes) and both employee attrition and
the vesting outcomes based on performance conditions noted above (DFSS schemes).
The weighted average fair value of the shares granted in the year was £23.54 (2023: £20.48).
The weighted average market share price at the date of exercise for shares exercised during the year was £27.94 (2023: £23.28).
10. Taxation
10a. Accounting policies
Income tax on the profit or loss for the periods presented comprise of current and deferred tax.
(i) Current tax
Current tax is the expected tax payable on the taxable income for the period, using tax rates that have been enacted
or substantively enacted by the balance sheet date, and includes any adjustment to tax payable in respect of previous periods.
Current tax related to items recognised in other comprehensive income is also recognised in other comprehensive income and not
in the income statement.
(ii) Deferred tax
Deferred tax is provided in full using the balance sheet liability method, providing for temporary differences arising between
the carrying amount of assets and liabilities for accounting purposes and the amounts used for taxation purposes.
Deferred tax is calculated at the tax rates that have been enacted or substantively enacted by the balance sheet date and that
are expected to apply in the period when the liability is settled, or the asset is realised.
The principal temporary differences arise from carried forward losses, differences between tax capital allowances and depreciation
of property, plant and equipment, reserve movements and share scheme charges.
The resulting deferred tax is charged or credited in the income statement, except to the extent it relates to items that are
recognised in other comprehensive income or directly in equity, in which case the deferred tax is also recognised in other
comprehensive income or directly in equity respectively.
Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred tax assets (including those
relating to carried forward losses) are recognised only to the extent that it is probable that future taxable profits will be available
against which the assets can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the
initial recognition of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit, other
than in a business combination or for transactions that give rise to equal taxable and deductible temporary differences. In addition,
a deferred tax liability is not recognised if the temporary difference arises from the initial recognition of goodwill. For the recognition
of deferred tax assets, the probability of the availability of future taxable profits is determined by a combination of the existence of
taxable temporary differences and reviewing future profit projections for the businesses.
Admiral Group plc Annual Report and Accounts 2024
273
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
10b. Taxation
31 December
2024
£m
31 December
2023
£m
Current tax
Corporation tax on profits for the year
139.3
91.6
Under provision relating to prior periods
1.8
21.3
Pillar Two income taxes
15.4
–
Current tax charge
156.5
112.9
Deferred tax
Current period deferred taxation movement
16.4
0.7
Under/(over) provision relating to prior periods
3.4
(8.0)
Total tax charge per Consolidated Income Statement
176.3
105.6
Factors affecting the total tax charge are:
31 December
2024
£m
31 December
2023
£m
Profit before tax
839.2
442.8
Corporation tax thereon at effective UK corporation tax rate of 25% (2023: 23.5%)
209.8
104.1
Expenses and provisions not deductible for tax purposes
4.1
3.0
Non-taxable income
(21.3)
(13.4)
Impact of change in UK tax rate on deferred tax balances
–
(0.4)
Adjustments relating to prior periods
5.2
13.5
Impact of Pillar Two income taxes
15.4
–
Impact of different overseas tax rates
(45.5)
(8.9)
Unrecognised deferred tax
8.6
7.7
Total tax charge for the period as above
176.3
105.6
Corporation tax assets as at 31 December 2024  totaled £18.1 million, with corporation tax liabilities of £35.0 million (2023: £20.4
million asset and £4.9 million liabilities). Corporation tax liabilities includes £15.4 million (2023: £nil) relating to Pillar Two income
taxes.
The UK corporation tax rate for 2024 is 25% (2023: 23.5%).
The Group are within the scope of the OECD Pillar Two model rules which aims to ensure that large, multinational corporations pay
their fair share of tax in the countries in which they operate by introducing a new global minimum corporate income tax rate of 15%.
Under the new rules, top-up taxes can be payable either by the UK ultimate parent company or by an overseas entity if a jurisdiction
has an effective tax rate of less than 15%, as calculated under the rules. Legislation has been enacted in various countries (including
the United Kingdom), with the rules first coming into effect for the Group from 1 January 2024.
A current tax expense of £15.4 million has been included in the total tax charge for the year ended 31 December 2024, which
relates to estimated top-up taxes payable by a subsidiary undertaking in Gibraltar, where the statutory corporate tax rate applicable
for the year ended 31 December 2024 is 13.8% (due to a change in the rate from 12.5% to 15% from 1 July 2024). No top-up taxes
for the year ended 31 December 2024 are expected to arise in relation to operations in other countries. The Pillar Two rules are
complex and the Group continues to monitor ongoing developments in legislation and guidance to assess the impact.
The Group has applied the temporary mandatory exception to recognising and disclosing information about deferred tax assets
and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
Admiral Group plc Annual Report and Accounts 2024
274
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
10c. Deferred income tax asset / (liability)
Analysis of deferred tax asset / (liability)
Tax
treatment
of share
schemes
£m
Capital
allowances
£m
Carried
forward
losses
£m
Fair value
reserve
£m
Hedging
reserve
£m
Insurance
finance
reserve
£m
IFRS
recognition
difference
£m1
Other
differences
£m
Total
£m
Balance brought forward
at 1 January 2023
3.4
7.1
37.6
6.9
(7.0)
(19.8)
–
0.2
28.4
Tax treatment of share
scheme charges through
income or expense
1.7
–
–
–
–
–
–
–
1.7
Tax treatment of share
scheme charges through
reserves
2.1
–
–
–
–
–
–
–
2.1
Capital allowances
–
(11.0)
–
–
–
–
–
–
(11.0)
Carried forward losses
–
–
15.9
–
–
–
–
–
15.9
Movement in fair value
reserve
–
–
–
(5.7)
–
–
–
–
(5.7)
Movement in hedging
reserve
–
–
–
–
4.5
–
–
–
4.5
Movement in insurance
finance reserve
–
–
–
–
–
9.7
–
–
9.7
Other differences
–
–
–
–
–
–
–
0.5
0.5
Balance carried forward at
31 December 2023
7.2
(3.9)
53.5
1.2
(2.5)
(10.1)
–
0.7
46.1
Reallocation of brought
forward deferred tax
–
–
(15.1)
–
–
–
15.1
–
–
Tax treatment of share
scheme charges through
income or expense
(0.9)
–
–
–
–
–
–
–
(0.9)
Tax treatment of share
scheme charges through
reserves
3.2
–
–
–
–
–
–
–
3.2
Capital allowances -
deferred tax acquired in
business combination (see
note 13)
–
(9.1)
–
–
–
–
–
–
(9.1)
Capital allowances
–
4.8
–
–
–
–
–
–
4.8
Carried forward losses
–
–
(38.4)
–
–
–
–
–
(38.4)
Movement in fair value
reserve
–
–
–
2.4
–
–
–
–
2.4
Movement in hedging
reserve
–
–
–
–
1.0
–
–
–
1.0
Movement in insurance
finance reserve
–
–
–
–
–
(3.8)
–
–
(3.8)
Movement in IFRS
recognition differences
–
–
–
–
–
–
14.0
–
14.0
Other differences
–
–
–
–
–
–
–
0.5
0.5
Balance carried forward at
31 December 2024
9.5
(8.2)
–
3.6
(1.5)
(13.9)
29.1
1.2
19.8
1Deferred tax on IFRS recognition differences is now separately disclosed with a £15.1 million reallocation of the brought forward deferred tax asset at 1 January 2024 included above.
The majority of deferred tax on IFRS recognition differences relates to timing differences in the recognition of intragroup profit commission across subsidiaries in different tax
jurisdictions. 
Positive amounts presented above relate to a deferred tax asset position.
Admiral Group plc Annual Report and Accounts 2024
275
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
The deferred tax asset has decreased during the year, mainly relating to the utilisation of carried forward tax losses in the UK and
Gibraltar. Remaining deferred tax assets are recognised as it is considered probable that there are sufficient future taxable profits
available against which the assets can be utilised.
At 31 December 2024, the Group had unused tax losses amounting to £249.3 million (2023: £233.0 million) and other deductible
timing differences of £57.5 million (2023: £43.4 million), relating primarily to the Group’s businesses in the US and Spain for which
no deferred tax assets have been recognised. This is due to uncertainty over the availability and timing of future taxable profits
against which to utilise these deferred tax assets. The earliest expiry date for the US tax losses is 2031, with no expiry for the losses
in Spain.
11. Other Assets and Other Liabilities
11a. Accounting policies
(i) Property and equipment, and depreciation
All property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method
to write off the cost less residual values of the assets over their useful economic lives. These useful economic lives are as follows:
Improvements to short leasehold buildings
– four to ten years
Computer equipment
– two to four years
Office equipment
– four years
Furniture and fittings
– four years
Right-of-use assets
– two – twenty years, aligned to lease agreement
As set out further in note 6i to the financial statements, a right-of-use asset is established in relation the Group’s lease
arrangements.
The right-of-use asset is measured at cost, which comprises the following:
• The amount of the initial measurement of lease liability (note 6i to the financial statements)
• Any lease payments made at or before the commencement date less any lease incentives received
• Any initial direct costs, and
• Restoration costs.
The right-of-use asset is subsequently depreciated over the shorter of the lease term and the asset’s useful life on a straight-line
basis.
The Group does not have any significant leases which qualify for the short-term leases or leases of low-value assets exemption.
(ii) Impairment of property and equipment
In the case of property and equipment, carrying values are reviewed at each balance sheet date to determine whether there are
any indicators of impairment. If any such indicators exist, the asset’s recoverable amount is estimated and compared to the carrying
value. The carrying value is the higher of the fair value of the asset less costs to sell and the asset’s value in use. Impairment losses
are recognised through the income statement.
(iii) Intangible assets
Goodwill
All business combinations are accounted for using the acquisition method. Goodwill has been recognised on acquisitions of trade
and assets representing a business and/or acquisition of subsidiaries and represents the difference between the cost of the
acquisition and the fair value of the net identifiable assets acquired.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash generating units (CGUs) according
to business segment and is reviewed every six months for evidence of impairment and tested annually for impairment.
The goodwill held on the balance sheet at 31 December 2024 includes goodwill from acquisition of EUI Limited which has been
allocated to the UK insurance segment, and goodwill arising from the acquisition of Home and Pet renewal rights from RSA
Insurance Group Limited which has been allocated to the UK Pet and Household CGUs.
Admiral Group plc Annual Report and Accounts 2024
276
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Impairment of goodwill
The annual impairment review involves comparing the carrying amount to the estimated recoverable amount (by allocating the
goodwill to CGUs) and recognising an impairment loss if the recoverable amount is lower. Impairment losses are recognised through
the income statement and are not subsequently reversed.
The recoverable amount is the greater of the fair value of the asset less costs to sell and the value in use of the CGU.
The value in use calculations use cashflow projections based on financial budgets approved by management covering a period
of up to five years.
The key assumptions used in the value in use calculations are those regarding revenue growth, along with expected changes
in pricing and expenses incurred during the forecast period. Management estimates revenue growth rates and changes in pricing
based on past practices and expected future changes in the market.
Renewal Rights (included within Customer contracts, relationships and brand)
Renewal rights are recognised as an intangible asset and amortised using the reducing balance method over an expected useful life
determined as ranging between nine and fourteen years. Renewal rights on initial recognition have been recognised at fair value
arising through an acquisition.
The carrying value of renewal rights is reviewed every six months for evidence of impairment, with the value being written down
if any impairment exists. Impairment may be reversed if conditions subsequently improve.
Brand (included within Customer contracts, relationships and brand)
Brand rights are recognised as an intangible asset and amortised using the straight line method over an expected useful life
of fifteen years. Brand rights on initial recognition have been recognised at its fair value arising through an acquisition.
The carrying value of brand rights is reviewed every six months for evidence of impairment, with the value being written down
if any impairment exists. Impairment may be reversed if conditions subsequently improve.
Software
Purchased software is recognised as an intangible asset and amortised over its expected useful life (generally the license term
which is typically between 2 and 4 years). Internally generated software is recognised as an intangible asset, with directly
attributable costs incurred in the development stage capitalised. The internally generated software assets are amortised over the
expected useful life of the systems (generally between 3 and 4 years) and amortisation commences when the software is available
for use.
The carrying value of software is reviewed every six months for evidence of impairment, with the value being written down
if any impairment exists. Impairment may be reversed if conditions subsequently improve.
(iv) Provisions, contingent liabilities and contingent assets
Provisions are recognised when a legal or constructive obligation arises as a result of an event that occurred before the balance
sheet date, when a cash-outflow relating to this obligation is probable and when the amount can be estimated reliably.
Where a material obligation exists, but the likelihood of a cash outflow or the amount is uncertain, or where there is a possible
obligation arising from a past event that is contingent on a future event, a contingent liability is disclosed.
Contingent assets are possible assets that arise from past events, whose existence will be confirmed only by the occurrence
or non-occurrence of future events. Where it is probable that a cash inflow will arise from a contingent asset, this is disclosed.
Admiral Group plc Annual Report and Accounts 2024
277
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
11b. Property and equipment
£m
Improvements
to short
leasehold
buildings 
Computer
equipment 
Office
equipment 
Furniture and
fittings 
ROU Asset -
Leasehold
buildings
Total 
Cost
At 1 January 2023
37.5
73.9
21.4
10.7
95.0
238.5
Additions 
3.5
4.9
0.2
0.7
3.3
12.6
Impairment 
–
–
–
–
6.1
6.1
Disposals 
(10.9)
(20.8)
(2.8)
(1.9)
(5.6)
(42.0)
Foreign exchange and other
movements 
(0.4)
(0.7)
(0.5)
0.1
1.1
(0.4)
At 31 December 2023
29.7
57.3
18.3
9.6
99.9
214.8
Depreciation 
At 1 January 2023
28.1
61.1
19.5
9.2
30.8
148.7
Charge for the year
3.1
6.4
0.9
0.8
7.0
18.2
Impairment
–
–
–
–
(0.2)
(0.2)
Disposals
(9.5)
(20.8)
(2.8)
(1.7)
(5.4)
(40.2)
Foreign exchange and other
movements
(0.1)
(0.9)
(0.4)
0.1
(0.5)
(1.8)
At 31 December 2023
21.6
45.8
17.2
8.4
31.7
124.7
Net book amount
At 31 December 2023
8.1
11.5
1.1
1.2
68.2
90.1
Cost
At 1 January 2024
29.7
57.3
18.3
9.6
99.9
214.8
Additions
2.6
5.4
0.5
0.2
17.4
26.1
Impairment
(0.6)
(3.2)
(0.6)
–
–
(4.4)
Disposals
(15.5)
(16.4)
(8.2)
(2.5)
(8.5)
(51.1)
Foreign exchange and other
movements
(0.3)
(0.3)
(0.1)
(0.2)
(0.8)
(1.7)
At 31 December 2024
15.9
42.8
9.9
7.1
108.0
183.7
Depreciation
At 1 January 2024
21.6
45.8
17.2
8.4
31.7
124.7
Charge for the year
2.8
6.3
0.5
0.4
8.8
18.8
Impairment
(0.5)
(2.8)
(0.4)
–
–
(3.7)
Disposals
(15.5)
(16.4)
(8.1)
(2.5)
(0.2)
(42.7)
Foreign exchange and other
movements
(0.2)
(0.2)
(0.1)
(0.1)
(0.6)
(1.2)
At 31 December 2024
8.2
32.7
9.1
6.2
39.7
95.9
Net book amount
At 31 December 2024
7.7
10.1
0.8
0.9
68.3
87.8
Admiral Group plc Annual Report and Accounts 2024
278
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
11c. Intangible assets
Goodwill
£m
Customer
contracts,
relationships
and brand
£m
Software –
Internally
generated
£m
Software – Other
£m
Total
£m
At 1 January 2023
62.3
–
136.4
18.9
217.6
Additions
–
7.9
51.1
7.7
66.7
Amortisation charge
–
–
(34.8)
(5.5)
(40.3)
Disposals
–
–
(0.1)
–
(0.1)
Impairment
–
–
(0.2)
–
(0.2)
Foreign exchange movement & other movements
–
–
(0.4)
(0.4)
(0.8)
At 31 December 2023
62.3
7.9
152.0
20.7
242.9
Additions
49.8
44.5
48.8
3.1
146.2
Amortisation charge
–
(2.8)
(54.5)
(4.3)
(61.6)
Disposals
–
–
(0.3)
(0.4)
(0.7)
Impairment
–
–
(3.5)
(0.9)
(4.4)
Transfers
–
–
6.2
(6.2)
–
Foreign exchange movement & other movements
–
(0.3)
(0.6)
(0.5)
(1.4)
At 31 December 2024
112.1
49.3
148.1
11.5
321.0
Customer contracts, relationships and brand includes Home and Pet renewal rights which has a net carrying value of £34.5 million
as at 31 December 2024 and an amortisation period of 9 years for Home renewal rights and 14 years for Pet renewal rights. See
note 13 for further information. Internally generated software includes a new claims system implemented within the UK business
in the year which has a carrying amount of £33.2 million as at 31 December 2024 and a remaining amortisation period of 2.8 years.
Goodwill relates to the acquisition of Group subsidiary EUI Limited (formerly Admiral Insurance Services Limited) in November 1999,
and on the purchase of the direct Home and Pet renewal rights from the RSA Insurance Group Limited (‘RSA’) in April 2024. The
carrying amount of goodwill as at 31 December 2024 is £112.1 million (2023: £62.3 million).
Goodwill is tested for impairment annually and whenever there is an indication of impairment at the level of the CGU to which
it is allocated. Annual impairment reviews have indicated that the estimated recoverable value of the asset is greater than the
carrying amount and therefore no impairment losses have been recognised.
Only one year of forecasts is required to support the recoverable value of goodwill from EUI acquisition. Given the short time period
used to support the recoverable amount, no terminal growth rate or discounting is applied.
With regards to the goodwill arising from RSA acquisition, the recoverable amount of the CGU has been determined based on
a value in use calculation using discounted cash flow projections based on financial budgets approved by the board of directors
covering a five-year period and a pre-tax discount rate of 15%. Cash flows beyond the five year period are extrapolated into
perpetuity as the fifth year represents a reasonable estimate of a steady state of business. No long term growth rate has been
applied to the perpetuity calculations.
The key assumptions on which the cash flow projections are based on forecast growth in premiums written, related expenses
and claims costs. The forecasts are based on past experience adjusted for market trends and strategic decisions made in respect
of the Pet and Household lines of business.
Refer to the accounting policy for goodwill for further information.
Admiral Group plc Annual Report and Accounts 2024
279
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
11d. Trade and other payables
31 December
2024
£m
31 December
2023
£m
Trade payables
52.4
42.3
Other tax and social security
12.5
11.9
Amounts owed to co-insurers
—
156.9
Other payables
34.0
42.5
Accruals and deferred income
76.4
52.2
Total trade and other payables
175.3
305.8
Analysis of accruals and deferred income
Accruals
48.2
28.3
Deferred income
28.2
23.9
Total accruals and deferred income as above
76.4
52.2
11e. Leases
The Group occupies various properties under leasing arrangements that are now recognised as right of use assets and lease
liabilities.
Amounts recognised in the Statement of Financial Position are as follows:
31 December
2024
£m
31 December
2023
£m
Lease liabilities
Current
8.6
13.7
Non-Current
71.0
67.5
Total
79.6
81.2
See note 11b for right of use assets depreciation and the carrying amount of right of use asset at the end of the reporting period.
Only one class of underlying assets is identified as leasehold buildings. Total cash outflows in relation to leases is disclosed under 6i.
The Group has no significant financial commitments other than those accounted for as right of use assets and lease liabilities under IFRS 16.
Admiral Group plc Annual Report and Accounts 2024
280
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
11f. Contingent liabilities
The Group’s legal entities operate in numerous tax jurisdictions and on a regular basis are subject to review and enquiry by the
relevant tax authority.
One of the Group’s previously owned subsidiaries was subject to a Spanish Tax Audit which concluded with the Tax Authority
denying the application of the VAT exemption relating to insurance intermediary services. The Company has appealed this decision
via the Spanish Courts and is confident in defending its position which is, in its view, in line with the EU Directive and is also
consistent with the way similar supplies are treated throughout Europe. Whilst the Company is no longer part of the Admiral Group,
the contingent liability which the Company is exposed to has been indemnified by the Admiral Group up to a cap of €24 million .
No material provisions have been made in these financial statements in relation to the matters noted above. 
The Group notes the ongoing Court of Appeal ruling relating to non-disclosure of commission to dealers in relation to motor finance.
Prior to the Group's re-launch of motor finance lending, all lending was through price comparison websites. The Group had no
lending through dealers and no discretionary commission structures in place. Accordingly the Group does not have an ongoing
exposure to commission arrangements of this nature and therefore has not recognised any contingent liability in relation to the
case.
The Group continues to monitor regulatory developments, including the Supreme Court decision which is expected later in 2025,
ensuring the customer acquisition practices remain fully aligned with legal and regulatory requirements and industry best practices.
The Group is, from time to time, subject to threatened or actual litigation and/or legal and/or regulatory disputes, investigations
or similar actions both in the UK and overseas. All potentially material matters are assessed, with the assistance of external advisors
if appropriate, and in cases where it is concluded that it is more likely than not that a payment will be made, a provision is
established to reflect the best estimate of the liability. In some cases it will not be possible to form a view, for example if the facts
are unclear or because further time is needed to properly assess the merits of the case or form a reliable estimate of its financial
effect. In these circumstances, specific disclosure of a contingent liability and an estimate of its financial effect will be made where
material, unless it is not practicable to do so.
The Directors do not consider that the final outcome of any such current case will have a material adverse effect on the Group’s
financial position, operations or cashflows, and as such, no material provisions are currently held in relation to such matters.
A number of the Group’s contractual arrangements with reinsurers include features that, in certain scenarios, allow for reinsurers to
recover losses incurred to date. The overall impact of such scenarios would not lead to an overall net economic outflow from the Group.
12. Dividends, Earnings and Related Parties
The Group’s capital includes share capital and the share premium account, other reserves which are comprised of the fair value
reserve, insurance finance reserve, hedging reserve and foreign exchange reserve, and retained earnings.
12a. Accounting policies
(i) Share capital
Shares are classified as equity when there is no obligation to transfer cash or other assets.
(ii) Fair value reserve
For investments recognised as fair value through other comprehensive income (FVOCI), changes in fair value are accumulated
within the fair value reserve within equity except for impairment gains and losses which are recognised in the income statement.
The accumulated changes in fair value are transferred to profit or loss when the investment is derecognised or reclassified.
(iii) Hedging reserve
The hedging reserve includes the cash flow hedge reserve. The cash flow hedge reserve is used to recognise the effective portion
of gains or losses on derivatives that are designated and qualify as cash flow hedges. Amounts are subsequently reclassified
to profit or loss as appropriate.
(iv) Insurance finance reserve
The insurance finance reserve relates to the impact of changes in market interest rates on the value of the insurance and
reinsurance assets and liabilities. These changes are reflected in the insurance finance reserve in order to minimise accounting
mismatches between the accounting for financial assets and insurance assets and liabilities.
(v) Dividends
Dividends are recorded in the period in which they are declared and paid.
(vi) Earnings per share
Basic earnings per share is calculated by dividing profit or loss attributable to equity holders of the Group Parent Company, Admiral
Group plc by the weighted average number of ordinary shares during the period.
Diluted earnings per share is calculated by dividing profit or loss attributable to equity holders of the Group Parent Company
by the weighted average number of ordinary shares outstanding, adjusted for the effects of all dilutive potential ordinary shares.
Admiral Group plc Annual Report and Accounts 2024
281
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
12b. Dividends
Dividends were proposed, approved and paid as follows:
31 December
2024
£m
31 December
2023
£m
Proposed March 2023 (52.0 pence per share, approved April 2023 and paid June 2023)
–
154.9
Declared August 2023 (51.0 pence per share, paid October 2023)
–
152.2
Proposed March 2024 (52.0 pence per share, approved April 2024 and paid May 2024)
156.2
–
Declared August 2024 (71.0 pence per share, paid October 2024)
213.6
–
Total dividends
369.8
307.1
The dividends proposed in March (approved in April) represent the final dividends paid in respect of the 2022 and 2023 financial
years. The dividends declared in August are interim distributions in respect of 2023 and 2024.
A 2024 final dividend of 121.0 pence per share (approximately £366.6 million) has been proposed. Refer to the financial narrative
for further detail.
12c. Earnings per share
31 December
2024
£m
31 December
2023
£m
Profit for the financial year after taxation attributable to equity shareholders
663.3
338.0
Weighted average number of shares – basic
306,304,676
303,989,170
Unadjusted earnings per share – basic
216.6p
111.2p
Weighted average number of shares – diluted
306,304,676
305,052,941
Unadjusted earnings per share – diluted
216.6p
110.8p
The difference between the basic and diluted number of shares at the end of 2024 (being nil; 2023: 1,063,771) relates to awards
committed, but not yet issued under the Group’s share schemes. Refer to note 9 for further detail.
12d. Share capital
31 December
2024
£m
31 December
2023
£m
Authorised
500,000,00 ordinary shares of 0.1 pence
0.5
0.5
Issued, called up and fully paid
306,304,676 ordinary shares of 0.1 pence
0.3
0.3
During 2024, nil (2023: 3,466,950) new ordinary shares of 0.1 pence were issued to the two trusts administering the Group’s share
schemes and 817,386 (2023: nil) existing shares were transferred from the Admiral Group Employee Benefit Trust ('EBT’) to the
Admiral Group Share Incentive Plan Trust (‘SIP’).
Nil (2023: 806,950) new shares were issued to the SIP for the purposes of this share scheme, resulting in cumulative shares issued
and transferred in to the SIP at 31 December 2024 of 15,317,635 (2023: 14,500,249). Of the shares issued or transferred, 4,078,403
shares remain in the Trust at 31 December 2024 (2023: 4,028,579). These shares are entitled to receive dividends.
Nil (2023: 2,660,000) new shares were issued to the EBT for the purposes of the Discretionary Free Share Scheme, resulting in
cumulative shares issued to the EBT net of transfers to the SIP of 32,391,641 (2023: 33,209,027). Of the shares issued, 3,324,258
remain in the Trust at 31 December 2024 (2023: 5,868,352) to be used for future vesting.
The balance of awards made to employees under the Discretionary Free Share Scheme that have not either vested or lapsed
is 9,357,119 (2023: 8,755,431).
The Trustees have waived the right to dividend payments, other than to the extent of 0.001 pence per share, unless and to the
extent otherwise directed by the Company from time to time.
There is one class of share with no unusual restrictions.
Admiral Group plc Annual Report and Accounts 2024
282
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
12e. Group related undertakings
The Parent Company’s subsidiaries are as follows:
Subsidiary
Class of
shares held
% Ownership
Principal
Activity
Incorporated in England and Wales
Registered office: Ty Admiral, David Street,
Cardiff, United Kingdom, CF10 2EH
Admiral Law Limited
Ordinary
95
Legal Company
Able Insurance Services Limited
Ordinary
100
Insurance Intermediary
EUI Limited 2
Ordinary
100
Insurance Intermediary
Admiral Insurance Company Limited
Ordinary
100
Insurance Company
Admiral Syndicate Limited
Ordinary
100
Dormant 1
Admiral Syndicate Management Limited
Ordinary
100
Dormant 1
Admiral Financial Services Limited
Ordinary
100
Financial Services
Company
Incorporated in Gibraltar
Registered office: 2Aa 2nd Floor, Leisure Island Business Centre, 23,
Ocean Village Promenade, Gibraltar, GX11 1AA
Admiral Insurance (Gibraltar) Limited
Ordinary
100
Insurance Company
Incorporated in France
Registered office: 128 Rue la Boétie, 75008 Paris
Pioneer Intermediary Europe Services
Ordinary
100 (indirect)
Insurance Intermediary
Incorporated in Italy
Registered office: Via Della Bufalotta 374, 00139 Roma
Admiral Financial Services Italia S.P.A.
Ordinary
100
Financial Services
Company
Incorporated in Spain
Registered office: Calle Rodríguez Marín 61 1ª Planta, 28016 Madrid
Admiral Europe Compañía de Seguros, S.A.
Ordinary
100
Insurance Company
Registered office: Calle Albert Einstein, 10 41092 Sevilla
Admiral Intermediary Services S.A. 3
Ordinary
100
Insurance Intermediary
Incorporated in the United States of America
Registered office: 8801 Park Central Drive, Suite 500, Richmond, VA 23227
Elephant Insurance Company
Ordinary
100 (indirect)
Insurance Company
Grove General Agency Inc
Ordinary
100 (indirect)
Insurance Intermediary
Platinum General Agency Inc
Ordinary
100 (indirect)
Insurance Intermediary
Registered office: Corporation Trust Center, 1209 Orange Street,
Wilmington, Delaware 19801
Elephant Insurance Services LLC
Ordinary
100 (indirect)
Insurance Intermediary
Elephant Holding Company LLC
Ordinary
100
Holding Company
Subsidiaries by virtue of control
The related undertakings below are subsidiaries in accordance with IFRS
10, as Admiral can exercise dominant influence or control over them:
Registered office: 10th Floor, 5 Churchill Place, London, E14 5HU
Seren One Limited
n/a
0
Special Purpose Entity
Seren Two Limited
n/a
0
Special Purpose Entity
Associates
Registered office: Capital Tower, Greyfriars Road, Cardiff, Wales, CF10 3AD
Wagonex Limited
Ordinary
22.80
(indirect)
Internet-based
Subscription Platform
1Exempt from audit under S480 of Companies Act 2006
2EUI Limited has branches in India and Canada
3Admiral Intermediary Services S.A. has branches in Italy and France
For further information on how the Group conducts its business across the UK, Europe and the US, refer to the Strategic Report.
Admiral Group plc Annual Report and Accounts 2024
283
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
12f. Related party transactions
The Board considers that only the Executive and Non-Executive Directors of Admiral Group plc are key management personnel.
A summary of the remuneration of key management personnel is as follows, with further detail relating to the remuneration
and shareholdings of key management personnel set out in the Directors’ Remuneration Report.
Key management personnel received short term employee benefits in the year of £5,038,734 (2023: £2,900,278), post-employment
benefits of £63,255 (2023: £30,000) and share based payments of £2,868,616 (2023: £1,608,776). Key management personnel are
able to obtain discounted motor insurance at the same rates as all other Group employees, typically at a reduction of 15%.
12g. Post balance sheet events
During February 2025, the Group entered into an agreement with a third party which resulted in the sale of back book loans with
a total carrying value of around £150 million. This agreement, signed after the reporting date, provides for the transfer of these
loans to the counterparty in accordance with the agreed terms. Accordingly, no adjustment has been made to the financial
statements for the year ended 31 December 2024.
The financial impact of the sale, including any gain arising from the transaction, will be recognised in the Group’s financial
statements for the year ending 31 December 2025.
In early March 2025, Admiral entered into a memorandum of understanding with a counterparty with a view to signing a purchase
agreement to sell Elephant.  The agreement, if signed, would be subject to regulatory approval.
No further events have occurred since the reporting date that materially impact these financial statements.
13. Business combinations
As at 2nd April 2024, Admiral successfully completed the purchase of the direct Home and Pet renewal rights from the RSA
Insurance Group Limited (‘RSA’), a general insurer based in the UK. The transaction includes the renewal rights, the “More Than”
brand and the transfer of more than 280 people but does not include liabilities relating to existing policies which will remain with
RSA. The acquisition is closely aligned to Admiral’s strategy to diversify its product offering and build multi-product customer
relationships in its core markets. It will strengthen Admiral’s home business and accelerate its direct pet proposition launched
in 2022.
The consideration included an initial cash payment of £82.5 million with contingent consideration of £32.5 million. The contingent
consideration has a range of £nil to a maximum of £32.5 million dependent on the number of policies successfully migrated to
Admiral. The fair value of the contingent consideration has a value of £2.7 million and is based on a probability weighted scenario
including an element of discounting relating to the timing of payments.
The amounts recognised in respect of the identifiable assets acquired at at the acquisition date are as set out in the table below:
£m
Total consideration
Amount settled in cash
82.5
Fair value of contingent consideration
2.7
Total consideration
85.2
Identifiable assets acquired
Renewal Rights
36.4
Brand
8.1
Total identifiable assets acquired
44.5
Purchase price recognised as Goodwill
40.7
Additional Goodwill recognised on Deferred Tax Liability
9.1
Total Goodwill recognised on acquisition
49.8
Admiral Group plc Annual Report and Accounts 2024
284
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
A deferred tax liability has been recognised of £9.1 million based upon a tax base cost of £36.4 million representing the fair value
of the renewal rights. A corresponding increase in goodwill of £9.1 million is recognised as a result. The goodwill and brand are
not considered deductible for tax purposes. The deferred tax liability will unwind in line with the amortisation of the renewal
rights acquired.
The recognition of goodwill reflects the synergies arising through the transaction including operational, capital, pricing and risk
synergies, as well as the attributable value to the workforce in place.
The policies in relation to the acquisition started renewing in July 2024. As at 31 December 2024, transaction costs of £6.5 million
have been recognised within operating expenses, along with integration costs of £11.9 million within insurance expenses.
The impact of the acquisition if it had happened as at the start of the reporting period is impractical for disclosure given the nature
of the trade and assets acquired for integration.
The acquisition contributed £42.3 million of total premiums written and £9.9 million of insurance revenue, and £3.8 million
of expenses for the period between the date of acquisition and the reporting date. Due to the acquired renewal rights being fully
integrated into the existing business lines, it is impracticable to separately identify the specific profit contributions..
14. Reconciliation of turnover to reported insurance premium and other revenue as per the financial
statements
The following ta ble reconciles turnover, a significant Key Performance Indicators (KPIs) and non-GAAP measure presented within
the Strategic Report, to insurance revenue, as presented in note 4 to the financial statements.
Note
31 December
2024
£m
31 December
2023
£m
Insurance revenue related movement in liability for remaining coverage
5b
4,776.2
3,486.1
Less other insurance revenue
(281.7)
(202.8)
Insurance premium revenue
4,494.5
3,283.3
Movement in unearned premium and cancellations
346.7
528.3
Premiums written after coinsurance
4,841.2
3,811.6
Co-insurer share of written premiums
778.4
577.8
Total premiums written
5,619.6
4,389.4
Other insurance revenue
5b
281.7
202.8
Other revenue
8
136.3
127.2
Interest income on loans to customers
109.1
92.1
Turnover as per note 4 of financial statements
6,146.7
4,811.5
Admiral Group plc Annual Report and Accounts 2024
285
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Appendix 1 to the Group Financial Statements (unaudited)
The following tables reconcile significant Key Performance Indicators (KPIs) and non-GAAP measures included in the Strategic
Report to items included in the financial statements.
1a : Reconciliation of reported loss and expense ratios: Group
31 December 2024
£m
Consolidated
Financial
Statement Note
Core product
Ancillary income
Total gross
Total, net of XoL
reinsurance
Insurance premium revenue
4,329.9
164.6
4,494.5
4,329.4
Administration fees, instalment income and
non-separable ancillary commission
–
281.7
281.7
281.7
Insurance revenue (A)
5b/5d
4,329.9
446.3
4,776.2
4,611.1
Insurance expenses (B)
5c
(951.4)
(64.5)
(1,015.9)
(1,015.9)
Claims incurred (C)
5c/5d
(2,976.9)
(61.1)
(3,038.0)
(2,980.7)
Claims releases (D)
5c/5d
556.8
3.2
559.9
425.1
Claims incurred and releases excluding
Ogden1 (E)
(2,661.7)
Quota share reinsurance result2 4
(294.1)
Onerous loss component movement3
1.5
Underwriting result (F)
747.0
Net share scheme costs4
(36.7)
Insurance service result
710.3
Reported loss ratio ((C+D)/A)
55.4%
Reported loss ratio excluding Ogden1 (E/A)
57.7%
Reported expense ratio (B/A)
22.0%
Insurance service margin (F/A)
16.2%
31 December 2023
£m
Consolidated
Financial
Statement Note
Core product
Ancillary income
Total gross
Total, net of XoL
reinsurance
Insurance premium revenue
3,152.3
131.0
3,283.3
3,170.6
Administration fees, instalment income and
non-separable ancillary commission
–
202.8
202.8
202.8
Insurance revenue (A)
5b/5d
3,152.3
333.8
3,486.1
3,373.4
Insurance expenses (B)
5c
(795.2)
(41.6)
(836.8)
(836.8)
Claims incurred (C)
5c/5d
(2,624.6)
(40.5)
(2,665.1)
(2,605.8)
Claims releases (D)
5c/5d
440.6
–
440.6
447.3
Quota share reinsurance result2 4
(40.4)
Onerous loss component movement3
4.9
Underwriting result (E)
342.6
Net share scheme costs4
(36.8)
Insurance service result
305.8
Reported loss ratio ((C+D)/A)
63.9%
Reported expense ratio (B/A)
24.8%
Insurance service margin (E/A)
10.2%
1 Excludes benefit from the Ogden discount rate change
2Quota share reinsurance result excludes quota share reinsurers’ share of share scheme costs and movement in onerous loss-recovery component
3 Onerous loss component movement is shown net of all reinsurance
4Net share scheme costs of £36.7 million (2023: £36.8 million), being gross costs of £58.6 million (2023: £55.3 million, see note 5c) less reinsurers’ share of share scheme costs
of £21.9 million (2023: £18.5 million) are excluded from the underwriting result.
Admiral Group plc Annual Report and Accounts 2024
286
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
1b. Reconciliation of reported loss and expense ratios: UK Motor
31 December 2024
£m
Consolidated
Financial
Statement
Note
Core product
Ancillary
income1
Total gross
Total, net of
XoL
reinsurance
Core product,
net of XoL
Total premiums written
4,006.6
151.1
4,157.7
4,033.3
3,882.2
Gross premiums written
3,234.1
151.1
3,385.2
3,284.7
3,133.6
Insurance premium revenue
3,020.7
139.8
3,160.5
3,062.4
2,922.5
Instalment income
—
155.9
155.9
155.9
–
Administration fees & non-separable
ancillary commission
—
53.1
53.1
53.1
–
Insurance revenue (A)
5b/5d
3,020.7
348.8
3,369.5
3,271.4
2,922.5
Insurance expenses (B)
5c
(530.9)
(55.9)
(586.8)
(586.8)
(530.9)
Claims incurred (C)
5c/5d
(2,051.5)
(55.6)
(2,107.2)
(2,078.1)
(2,022.5)
Claims incurred excluding Ogden (D)
(2,078.5)
(55.6)
(2,134.1)
(2,105.1)
(2,049.5)
Claims releases (E)
5c/5d
493.4
2.7
496.1
374.6
371.9
Claims releases excluding Ogden (F)
414.2
2.7
416.9
295.4
292.7
Insurance service result, gross of quota
share reinsurance
931.7
240.0
1,171.7
981.1
741.0
Quota share reinsurance result2
(228.8)
(228.8)
Onerous loss component movement
1.1
1.1
Underwriting result (G)
753.4
513.3
Current period loss ratio (C/A)
63.5%
69.2%
Claims releases (E/A)
(11.4%)
(12.7%)
Reported loss ratio ((C+E)/A)
52.1%
56.5%
Reported expense ratio (B/A)
17.9%
18.2%
Insurance service margin (G/A)
23.0%
17.6%
Current period loss ratio excluding
Ogden (D/A)
64.3%
70.1%
Claims releases excluding Ogden (F/A)
(9.0%)
(10.0%)
Reported loss ratio excluding
Ogden ((D+F)/A)
55.3%
60.1%
Admiral Group plc Annual Report and Accounts 2024
287
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
31 December 2023
£m
Consolidated
Financial
Statement
Note
Core product
Ancillary
income1
Total gross
Total, net of
XoL
reinsurance
Core product,
net of XoL
Total premiums written
3,004.3
113.9
3,118.2
3,016.8
2,903.0
Gross premiums written
2,453.9
113.9
2,567.8
2,485.0
2,371.1
Insurance premium revenue
2,007.6
107.8
2,115.4
2,053.8
1,946.0
Instalment income
–
99.0
99.0
99.0
–
Administration fees non-separable ancillary
commission
–
35.8
35.8
35.8
–
Insurance revenue (A)
5b/5d
2,007.6
242.6
2,250.2
2,188.6
1,946.0
Insurance expenses (B)
5c
(416.8)
(34.4)
(451.2)
(451.2)
(416.8)
Claims incurred (C)
5c/5d
(1,719.9)
(35.6)
(1,755.5)
(1,729.0)
(1,693.4)
Claims releases (D)
5c/5d
406.9
–
406.9
392.8
392.8
Insurance service result, gross of quota
share reinsurance
277.8
172.6
450.4
401.2
228.6
Quota share reinsurance result2
(16.8)
(16.8)
Onerous loss component movement
4.1
4.1
Underwriting result (E)
388.5
215.9
Current period loss ratio (C/A)
79.0%
87.0%
Claims releases (D/A)
(17.9%)
(20.2%)
Reported loss ratio ((C+D)/A)
61.1%
66.8%
Reported expense ratio (B/A)
20.6%
21.4%
Insurance service margin (E/A)
17.8%
11.1%
1Ancillary income combined with other net income is presented as part of UK motor insurance other revenue in reporting “Other revenue per vehicle”. Total other revenue
was £321.8 million (2023: £247.3 million).
2 Net share scheme costs of £29.6 million (2023: £32.1 million), being gross costs of £40.7 million (2023: £43.2 million, see note 5c) less reinsurers’ share of share scheme costs
of £11.1 million (2023: £11.1 million) are excluded from the underwriting result.
Admiral Group plc Annual Report and Accounts 2024
288
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
1c. Reconciliation of reported loss and expense ratios: UK Non-Motor
31 December 2024
£m
Consolidated
Financial
Statement
Note
UK Household
UK Travel &
Pet
UK Non-Motor
UK Household,
net of XoL
reinsurance
Insurance revenue (A)
5b/5d
399.6
104.3
503.9
376.4
Insurance expenses (B)
5c
(102.9)
(56.0)
(158.9)
(102.9)
Claims incurred in the period (C)
5c/5d
(233.7)
(64.5)
(298.2)
(225.7)
Changes in liabilities for incurred claims (releases) (D)
5c/5d
46.3
5.1
51.4
37.0
Insurance service result, gross of quota share
reinsurance
109.3
(11.1)
98.2
84.8
Quota share reinsurance result1
(61.2)
Onerous loss component movement
–
Underwriting result (E)
23.6
Current period loss ratio (C/A)
60.0%
Claims releases (D/A)
(9.9%)
Reported loss ratio ((C+D)/A)
50.1%
Reported expense ratio (B/A)
27.3%
Insurance service margin (E/A)
6.3%
31 December 2023
£m
Consolidated
Financial
Statement
Note
UK Household
UK Travel &
Pet
UK Non-Motor
UK Household,
net of XoL
reinsurance
Insurance revenue (A)
5b/5d
292.8
53.8
346.6
275.3
Insurance expenses (B)
5c
(80.9)
(27.4)
(108.3)
(80.9)
Claims incurred in the period (C)
5c/5d
(223.5)
(31.4)
(254.9)
(199.8)
Changes in liabilities for incurred claims (releases) (D)
5c/5d
8.3
0.8
9.1
6.4
Insurance service result, gross of quota share
reinsurance
(3.3)
(4.2)
(7.5)
1.0
Quota share reinsurance result1
(1.4)
Onerous loss component movement
–
Underwriting result (E)
(0.4)
Current period loss ratio (C/A)
72.6%
Claims releases (D/A)
(2.4%)
Reported loss ratio ((C+D)/A)
70.2%
Reported expense ratio (B/A)
29.4%
Insurance service margin (E/A)
(0.1%)
1Net share scheme costs of £1.6 million (2023: £0.7 million), being gross costs of £5.4 million (2023: £2.4 million, see note 5c) less reinsurers’ share of share scheme costs
of £3.8 million (2023: £1.7 million) are excluded from the underwriting result.
Admiral Group plc Annual Report and Accounts 2024
289
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
1d. Reconciliation of reported loss and expense ratios: International
31 December 2024
£m
Consolidated
Financial
Statement
Note
Total gross
Total, net of
XoL
reinsurance
Insurance revenue (A)
5b/5d
829.5
794.2
Insurance expenses (B)
5c
(236.5)
(236.5)
Claims incurred in the period less changes in liabilities for incurred claims (C)
5c/5d
(572.6)
(564.5)
Insurance service result, gross of quota share reinsurance
20.4
(6.8)
Quota share reinsurance result1
(4.1)
Onerous loss component movement
0.4
Underwriting result (D)
(10.5)
Reported loss ratio (C/A)
71.1%
Reported expense ratio (B/A)
29.8%
Insurance service margin (D/A)
(1.3%)
31 December 2023
£m
Consolidated
Financial
Statement
Note
Total gross
Total, net of
XoL
reinsurance
Insurance revenue (A)
5b/5d
842.6
811.8
Insurance expenses (B)
5c
(249.4)
(249.4)
Claims incurred in the period less changes in liabilities for incurred claims (C)
5c/5d
(596.9)
(565.2)
Insurance service result, gross of quota share reinsurance
(3.7)
(2.8)
Quota share reinsurance result1
(22.1)
Onerous loss component movement
0.6
Underwriting result (D)
(24.3)
Reported loss ratio (C/A)
69.6%
Reported expense ratio (B/A)
30.7%
Insurance service margin (D/A)
(3.0%)
1Net share scheme costs of £4.3 million (2023: £3.2 million), being gross costs of £11.1 million (2023: £8.9 million, see note 5c) less reinsurers’ share of share scheme costs of £6.8
million (2023: £5.7 million) are excluded from the underwriting result.
Admiral Group plc Annual Report and Accounts 2024
290
Notes to the consolidated financial statements continued
For the year ended 31 December 2024
Appendix 2 to the Group Financial Statements (unaudited)
The following table of non-GAAP measures illustrates the sensitivity of profit and loss (before tax) arising from the impact of 100
and 200 basis point increases and decreases in interest rates over the financial year 2024.
2a. Additional sensitivities to interest rate risk
31 December 2024
Insurance contract liabilities and reinsurance
contract assets
Cash and
investments
£m
Impact on profit
before tax gross of
reinsurance
Impact on profit
before tax net of
reinsurance
Impact on profit
before tax
Increase of 100 basis points
25.9
25.9
19.9
Decrease of 100 basis points
(28.5)
(28.5)
(19.9)
Increase of 200 basis points
49.8
49.8
39.8
Decrease of 200 basis points
(60.6)
(60.6)
(39.8)
Changes impact profit before tax as follows:
• Interest revenue and other finance costs on floating-rate financial instruments (assuming that interest rates had varied by 100
basis points during the year)
• Changes in fixed-rate financial instruments measured at FVTPL
• Changes in the discounted fulfilment cashflows of onerous contracts
• Insurance claims expenses, reinsurance claims recoveries and finance income or expenses recognised in profit or loss, as a result
of discounting future cashflows at a revised locked-in rate for the current period (i.e. assuming that interest rates had varied
by 100 basis points during the year).
Admiral Group plc Annual Report and Accounts 2024
291
Parent Company financial statements
Parent Company Income Statement
Year ended
Note
31 December
2024
£m
31 December
2023
£m
Administrative expenses
2
(51.4)
(29.9)
Operating loss
(51.4)
(29.9)
Investment and other interest income
3
592.8
362.8
Impairment expense
4
(29.7)
(37.2)
Gain/(loss) on disposal of subsidiaries
12.5
(3.2)
Interest payable
6
(26.1)
(20.4)
Profit before tax
498.1
272.1
Taxation credit
7
14.8
12.1
Profit after tax
512.9
284.2
Parent Company Statement of Comprehensive Income
Year ended
Note
31 December
2024
£m
31 December
2023
£m
Profit for the period
512.9
284.2
Other comprehensive income
Items that are or may be reclassified to profit or loss
Movement in fair value reserve
(10.8)
13.4
Deferred tax in relation to movement in fair value reserve
7
2.7
(3.4)
Other comprehensive income for the period, net of income tax
(8.1)
10.0
Total comprehensive income for the period
504.8
294.2
Admiral Group plc Annual Report and Accounts 2024
292
Parent Company financial statements continued
For the year ended 31 December 2024
Parent Company Statement of Financial Position
As at
Note
31 December
2024
£m
31 December
2023
£m
ASSETS
Investments in group undertakings
4
445.2
426.2
Intangible assets
5
–
–
Financial investments
6
263.2
220.2
Corporation tax asset
7
–
9.0
Deferred tax asset
7
0.9
10.0
Trade and other receivables
8
306.8
227.6
Cash and cash equivalents
6
3.6
5.0
Total assets
1,019.7
898.0
EQUITY
Share capital
10
0.3
0.3
Share premium account
13.1
13.1
Fair value reserve
0.3
8.4
Retained earnings
10
348.3
137.2
Total equity
362.0
159.0
LIABILITIES
Subordinated and other financial liabilities
6
376.3
370.2
Trade and other payables
9
281.4
368.8
Total liabilities
657.7
739.0
Total equity and total liabilities
1,019.7
898.0
The accompanying notes form part of these financial statements.
These financial statements were approved by the Board of Directors on 5 March 2025 and were signed on its behalf by:
Geraint Jones signature.png
Geraint Jones
Chief Financial Officer
Admiral Group plc
Company Number: 03849958
Admiral Group plc Annual Report and Accounts 2024
293
Parent Company financial statements continued
For the year ended 31 December 2024
Parent Company Statement of Changes in Equity
Note
Share capital
£m
Share
premium
account £m
Fair value
reserve £m
Retained
earnings £m
Total equity
£m
At 1 January 2023
0.3
13.1
(1.6)
96.7
108.5
Profit for the period
–
–
–
284.2
284.2
Other comprehensive income
Movements in fair value reserve
10
–
–
13.4
–
13.4
Deferred tax charge in relation to movements in fair
value reserve
7
–
–
(3.4)
–
(3.4)
Total comprehensive income/(expense) for the period
–
–
10.0
284.2
294.2
Transactions with equity holders
–
Dividends
10
–
–
–
(307.1)
(307.1)
Issues of share capital
10
–
–
–
–
–
Share scheme credit
–
–
–
63.3
63.3
Deferred tax on share scheme credit
–
–
–
0.1
0.1
Total transactions with equity holders
–
–
–
(243.7)
(243.7)
As at 31 December 2023
0.3
13.1
8.4
137.2
159.0
At 1 January 2024
0.3
13.1
8.4
137.2
159.0
Profit for the period
–
–
–
512.9
512.9
Other comprehensive income
–
–
–
–
–
Movements in fair value reserve
10
–
–
(10.8)
–
(10.8)
Deferred tax charge in relation to movements in fair
value reserve
7
–
–
2.7
–
2.7
Total comprehensive income/(expense) for the period
–
–
(8.1)
512.9
504.8
Transactions with equity holders
–
Dividends
10
–
–
–
(369.8)
(369.8)
Issues of share capital
10
–
–
–
–
–
Share scheme credit
–
–
–
67.8
67.8
Deferred tax on share scheme credit
–
–
–
0.2
0.2
Total transactions with equity holders
–
–
–
(301.8)
(301.8)
As at 31 December 2024
0.3
13.1
0.3
348.3
362.0
Admiral Group plc Annual Report and Accounts 2024
294
Notes to the Parent Company Financial Statements continued
For the year ended 31 December 2024
1. Accounting policies
1.1. Basis of preparation
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework
(FRS 101). The financial statements are prepared on the historical cost basis except for the revaluation of financial assets classified
as fair value through the profit or loss or as fair value through other comprehensive income. The Parent Company financial
statements are presented alongside the consolidated financial statements which can be found on page 426.
In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of International
Financial Reporting Standards as adopted by the UK (‘Adopted IFRSs’) but makes amendments where necessary in order to comply with
Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.
Admiral Group plc is considered to be the parent entity and the ultimate parent Company of the Group.
1.2. Changes to accounting policies
No changes to accounting policies have been made in the period which have a material impact.
1.3. Disclosure exemptions applied under FRS 101
The Company has taken advantage of the following disclosure exemptions under FRS 101:
• FRS 101.8 (a): the requirements of paragraph 45(b) and 46 to 52 of IFRS 2 Share-based payment
• FRS 101.8 (d): the requirement of IFRS 7 Financial Instruments: Disclosure to make disclosures about financial instruments
• FRS 101.8 (f): the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information
in respect of: paragraph 118(3) of IAS 38 Intangible Assets
• FRS 101.8 (g): the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1
Presentation of Financial Statements to produce a cashflow statement, a third balance sheet and to make an explicit and
unreserved statement of compliance with IFRSs
• FRS 101.8 (h): the requirements of IAS 7 Statements of Cashflows to produce a cashflow statement
• FRS 101.8 (i): the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
to include a list of new IFRSs that have been issued but that have yet to be applied
• FRS 101.8 (k): the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between
two or more members of a group, provided that any subsidiary which is a party to transaction is wholly owned by
such a member
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these
financial statements.
1.4. Going concern
The financial statements have been prepared on a going concern basis. In considering the appropriateness of this assumption,
the Board have reviewed the Company's projections for the next twelve months and beyond, including cashflow forecasts and
regulatory capital surpluses.
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for 
the foreseeable future. Thus, they continue to adopt the going concern basis in preparing the annual financial statements.
1.5. Critical accounting judgements and key source of estimation uncertainty
In applying the Company’s accounting policies as described below, management consider there to be a key source of estimation
uncertainty within the impairment testing of the Company’s investments in group undertakings. Management recognises the
estimation involved in determining whether the carrying value of the investment may be supported by the recoverable amount
calculation based on the ‘value in use’ of the asset (the net present value of future cash-flows arising from the asset).
In calculating the net present value of future cash-flows, Management has made assumptions over the timing and amount
of underlying profit projections of the relevant undertakings, long term growth rates in those projections and the discount rate
applied to these projections that is appropriate to reflect the market’s view of the risk of the relevant investment. Sensitivity of these
assumptions is also considered in calculating the net present value and suitably incorporated in Management’s valuations.
No key accounting judgements have been made in the process of applying the Company’s accounting policies.
Admiral Group plc Annual Report and Accounts 2024
295
Notes to the Parent Company Financial Statements continued
For the year ended 31 December 2024
1.6. Shares in Group undertakings
Shares in Group undertakings are valued at cost less any provision for impairment in value.
The requirements of IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with respect to the
Company’s investments in subsidiaries. When necessary, the entire carrying amount of the investment is tested for impairment
in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and
fair value less costs of disposal) with its carrying amount. Any impairment loss recognised forms part of the carrying amount of the
investment. Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable amount
of the investment subsequently increases. See note 4 to these financial statements for further detail.
1.7. Employee share schemes
The Company operates a number of share schemes for employees of the Group’s subsidiaries. For equity settled schemes, the fair
value of the employee services received in exchange for the grant of free shares under the schemes is recognised as an increase
in equity in the Company. A corresponding intercompany charge is made to the subsidiaries whose employees receive the free
shares. For further detail, see note 9 in the consolidated financial statements.
1.8. Taxation
The charge for taxation is based on the profit for the year and takes into account taxation deferred because of timing differences
between the treatment of certain items for taxation and accounting purposes.
Deferred tax assets are recognised to the extent that they are regarded as recoverable. They are regarded as recoverable to the
extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be sufficient taxable
profits from which the future reversal of the underlying timing differences can be deducted.
1.9. Financial assets and financial liabilities
Under IFRS 9, classification and subsequent measurement of financial assets depend on:
• The Company’s business model for managing the asset; and
• The cashflow characteristics of the asset.
Based on these factors, the Company classifies its financial assets into one of the three categories below:
• Amortised cost: assets held for collection of contractual cashflows where the cashflows represent solely payments of principal
and interest, that are not designated as FVTPL.
• Fair value through other comprehensive income (FVOCI): Financial assets that are held for collection of contractual cashflows and
selling the assets, where the assets’ cashflows represent solely payments of principal and interest, and that are not designated
at FVTPL.
• Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortised cost or FVOCI, or which are
designated as FVTPL at initial recognition.
In line with the above:
• Corporate debt securities, gilts and government debt securities are measured at FVOCI. Unrealised changes in the fair value of
these assets are recognised in Other Comprehensive Income (OCI). The recognition of impairment gains or losses and interest
revenue are recognised in the profit or loss.
• Investments measured at FVTPL are primarily money market funds. Interest income is recognised in the Income statement.
The expected credit loss model is used to calculate any impairment to be recognised for all assets measured at amortised cost,
as well as financial investments measured at FVOCI.
Cash and cash equivalents include cash in hand and deposits held at call with banks. All cash and cash equivalents are measured
at amortised cost.
The Company’s financial liabilities comprise of subordinated notes and revolving credit facilities which are held at amortised cost
using the effective interest method.
1.10. Intangible Assets
Purchased software licences are classified as an intangible asset and stated in the balance sheet at a cost less accumulated
amortisation. Software is amortised from the point at which the asset is operational and is amortised over the licence period.
1.11. Trade and other receivables
Trade and other receivables are measured at amortised cost, less any impairment.
1.12. Trade and other payables
Trade and other payables are measured at amortised cost.
Admiral Group plc Annual Report and Accounts 2024
296
Notes to the Parent Company Financial Statements continued
For the year ended 31 December 2024
2. Administrative expenses
Included within administrative expenses are re-charges of £12.6 million (2023: £7.1 million) relating to employees within the Group
who perform services on behalf of the Company. No employees are directly employed by the Company.
3. Investment and interest income
31 December
2024
£m
31 December
2023
£m1
Dividend income from subsidiary undertakings
578.0
357.5
Interest income - other
3.2
1.3
Interest income at effective interest rate
11.6
7.6
Loss on disposal of Gilts
–
(3.6)
Total investment and interest income
592.8
362.8
1Restated due to an error in allocation of £5.9 million between ‘Interest income at effective interest rate’ and ‘Interest income - other’.
4. Investments in Group undertakings
£m
Investments in subsidiary undertakings:
At 1 January 2023
421.6
Additions
41.7
Disposals
–
Impairments
(37.1)
As at 31 December 2023
426.2
Additions
48.7
Disposals
–
Impairments
(29.7)
As at 31 December 2024
445.2
A full list of the Company’s subsidiaries is disclosed in note 12 of the consolidated financial statements.
The additions to investments in the period of £48.7 million relate to the following:
• Further investment in Admiral Europe Compañía de Seguros (‘AECS’) (£35.2 million);
• Further investment in Able Insurance Services Limited (‘Able’) (£5.0 million);
• Further investment in Admiral Financial Services Italia S.P.A (‘AFSI’) (£8.5 million).
An annual impairment review is performed over the carrying value of the investments in subsidiary undertakings, which involves
comparing the carrying amount to the estimated recoverable amount. The recoverable amount is the greater of the fair value of the
asset less costs to sell, and the value in use of the subsidiary, calculated using cashflow projections based on financial budgets
approved by the Group Board.
Admiral Group plc Annual Report and Accounts 2024
297
Notes to the Parent Company Financial Statements continued
For the year ended 31 December 2024
Elephant
In 2024 a non-cash impairment loss of £19.2 million (2023: £19.5 million) has been recognised by the Parent Company in respect
of its investment in the Group’s US Insurance business Elephant. The impairment charge is to bring the value of the investment
to its recoverable amount, being its fair value less costs to sell (equivalent to a net asset value). Since the impairment booked in
H1 2024, Elephant have since made a profit: the impairment previously booked has not been reversed given the ongoing strategic
review. The investment value held as at 31 December 2024 is £17.7 million (2023: £36.9 million). The impairment charge is
presented within the “Impairment losses” line of the Parent Company Income Statement.
Able
In 2024 a non-cash impairment loss of £3.2 million (2023: £7.9 million) has been recognised by the Parent Company in respect
of its investment in the Group’s UK based insurance business Able. The impairment charge is to bring the value of the investment
to its recoverable amount, being its fair value less costs to sell (equivalent of net asset value), of £7.9 million (2023: £6.1 million).
AFSI
In 2024 a non-cash impairment loss of £6.9 million (2023: £9.8 million) has been recognised by the Parent Company in respect
of its investment in the Group’s Italian loans business AFSI. The impairment charge is to reflect the loss incurred during 2023 to
bring the value of the investment to its recoverable amount, being its fair value less costs to sell (equivalent of net asset value),
of £6.2 million (2023: £4.7 million).
The Board continues to explore new adventures and is committed to supporting Able and AFSI in its diversification strategy.
The carrying value of Elephant, Able and AFSI is based on fair value less costs of disposal, for which the net assets has been
used as a reasonable approximation, using tier 3 of the fair value hierarchy. Due to limitations on evidential market information
and restrictions in readily available information, net assets have been used to estimate fair value less costs to sell.
Impairment charges is presented within the “Impairment losses” line of the Parent Company Income Statement.
5. Intangible Assets
Software
£m
Total
£m
Cost
At 1 January 2024
0.4
0.4
Additions
–
–
Disposal
–
–
At 31 December 2024
0.4
0.4
Amortisation
At 1 January 2024
0.4
0.4
Charge for the year
–
–
Disposal
–
–
At 31 December 2024
0.4
0.4
Net Book Value
At 31 December 2023
–
–
At 31 December 2024
–
–
Admiral Group plc Annual Report and Accounts 2024
298
Notes to the Parent Company Financial Statements continued
For the year ended 31 December 2024
6. Financial assets and liabilities
The Company’s financial instruments can be analysed as follows:
31 December
2024
£m
31 December
2023
£m
Investments classified as FVOCI
Gilts and government debt securities
128.0
134.6
Corporate debt securities
75.7
78.2
203.7
212.8
Investments classified as FVTPL
Money market and other similar funds (level 1 of the IFRS 13 hiearchy)
59.5
7.4
Total financial investments
263.2
220.2
Financial assets held at amortised cost
Trade and other receivables (note 8)
306.8
227.6
Cash and cash equivalents
3.6
5.0
Total financial assets
573.6
452.8
Financial liabilities
Subordinated notes
258.9
315.2
Other borrowings
117.4
55.0
Trade and other payables (note 9)
281.4
368.8
Total financial liabilities
657.7
739.0
The amortised cost carrying amount of deposits and receivables is a reasonable approximation of fair value.
The table below compares the carrying value of subordinated notes (as per the Statement of Financial Position) with the fair value
of the subordinated notes using a level one valuation:
31 December 2024
£m
31 December 2023
£m
Carrying amount
£m
Fair value
£m
Carrying amount
£m
Fair value
£m
Financial liabilities
Subordinated notes
258.9
276.4
315.2
329.8
On 24 July 2024, the remaining 27.55% (£55.1 million) of subordinated loan notes issued on 25 July 2014 was repurchased.
The subordinated notes balance at 31 December 2024 consists of notes issued on 6 July 2023 at a fixed rate of 8.5%, with a total
value of £250 million and a redemption date of 6 January 2034.
Total interest payable of £26.1 million (2023: £20.4 million) was recognised, of which £23.0 million (2023: £17.5 million)
was in relation to the subordinated loan notes.
Admiral Group plc Annual Report and Accounts 2024
299
Notes to the Parent Company Financial Statements continued
For the year ended 31 December 2024
7. Taxation
7a. Taxation credit
31 December
2024
£m
31 December
2023
£m
Current tax
Corporation tax credit on profits for the year
26.2
9.0
Change in provision relating to prior periods
0.6
(9.3)
Current tax credit
26.8
(0.3)
Deferred tax
Current period deferred taxation movement
(12.0)
0.2
Change in provision relating to prior periods
–
12.2
Total tax credit per income statement
14.8
12.1
The UK corporation tax rate for 2024 is 25% (2023: 23.5%).
Factors affecting the total tax credit are:
31 December
2024
£m
31 December
2023
£m
Profit before tax
498.1
272.1
Corporation tax thereon at effective UK corporation tax rate of 25% (2023: 23.5%)
124.5
63.9
Expenses and provisions not deductible for tax purposes
9.0
10.9
Adjustments relating to prior periods
(0.6)
(2.9)
Non-taxable income
(147.7)
(84.0)
Total tax credit for the period as above
(14.8)
(12.1)
At the year end, the corporation tax asset was £nil million (2023: £9.0 million).
Admiral Group plc Annual Report and Accounts 2024
300
Notes to the Parent Company Financial Statements continued
For the year ended 31 December 2024
7b. Deferred income tax (asset)/liability
Analysis of deferred tax (asset)/liability
Tax treatment of
share schemes
£m
Carried forward
losses £m
Fair value
reserve £m
Total £m
Balance brought forward at 1 January 2023
(0.3)
–
(0.6)
(0.9)
Tax treatment of share scheme charges through income or
expense
(0.2)
–
–
(0.2)
Tax treatment of share scheme charges through reserves
(0.1)
–
–
(0.1)
Carried forward losses
–
(12.2)
–
(12.2)
Movement in fair value reserve
–
–
3.4
3.4
Balance carried forward at 31 December 2023
(0.6)
(12.2)
2.8
(10.0)
Tax treatment of share scheme charges through income or
expense
(0.2)
–
–
(0.2)
Tax treatment of share scheme charges through reserves
(0.2)
–
–
(0.2)
Carried forward losses
–
12.2
–
12.2
Movement in fair value reserve
–
–
(2.7)
(2.7)
Balance carried forward at 31 December 2024
(1.0)
–
0.1
(0.9)
The recognition of deferred tax assets is supported by the expected future taxable profits of the UK group.
Legislation to introduce a global minimum effective tax rate of 15% known as the Pillar Two rules was substantively enacted
in the UK on 20 June 2023 under Finance (No.2) Act 2023. The rules introduce a domestic top-up tax and multinational top-up
tax effective for accounting periods starting on or after 31 December 2023. Although the rules are in effect for the year ended
31 December 2024, there is no current tax impact for the Parent Company as it is not expected to be liable for any top-up taxes.
The Pillar Two rules are complex and the Group continues to monitor ongoing developments in legislation and guidance to assess
the impact. The Parent Company has applied the temporary mandatory exception to recognising and disclosing information about
deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
Further information can be found in note 10 of the consolidated financial statements.
8. Trade and other receivables
31 December
2024
£m
31 December
2023
£m
Trade and other receivables
4.9
2.8
Amounts owed by subsidiary undertakings
301.9
224.8
Total trade and other receivables
306.8
227.6
Held within amounts owed by subsidiary undertakings is £300.8 million (2023: £223.7 million) which relate to loans with formal
agreements in place including interest rates set with reference to external funding arrangements, between the parent and the
subsidiary. The loans are unsecured and will be settled by cash in accordance with the repayment terms specified in the agreement.
The estimated credit losses of these loans has been considered and any expected credit loss is considered to immaterial due
to the assessment of credit risk being low due to the positive net value of assets of the subsidiaries and future trading projections.
Of the above amount, £175.7 million is due in greater than one year (2023: £28.5 million).
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301
Notes to the Parent Company Financial Statements continued
For the year ended 31 December 2024
9. Trade and other payables
31 December
2024
£m
31 December
2023
£m
Trade and other payables
11.8
10.3
Amounts owed to subsidiary undertakings
269.6
358.5
Total trade and other payables
281.4
368.8
Held within amounts owed to subsidiary undertakings is £199.8 million (2023: £201.4 million) which relate to loans with formal
agreements in place including interest charges between the parent and the subsidiary.
Of the above amount, £155.6 million is due in greater than one year (2023: £42.4 million).
10. Share capital and reserves
Capital within the Company is comprised of share capital and the share premium account, the fair value reserve (which reflects
movements in the fair value of assets classified as FVOCI) and retained earnings. Further information can be found within note 12
of the consolidated financial statements.
10a. Share capital
31 December
2024
£m
31 December
2023
£m
Authorised
500,000,000 ordinary shares of 0.1 pence
0.5
0.5
Issued, called up and fully paid
306,304,680 (2023: 306,304,680) ordinary shares of 0.1 pence
0.3
0.3
0.3
0.3
10b. Dividends
Dividends were proposed, approved and paid as follows:
31 December
2024
£m
31 December
2023
£m
Proposed March 2023 (52.0 pence per share, approved April 2023 and paid June 2023)
–
154.9
Declared August 2023 (51.0 pence per share, paid October 2023)
–
152.2
Proposed March 2024 (52.0 pence per share, approved April 2024 and paid May 2024)
156.2
–
Declared August 2024 (71.0 pence per share, paid October 2024)
213.6
–
Total dividends
369.8
307.1
The dividends proposed in March (approved in April) represent the final dividends paid in respect of the 2022 and 2023 financial
years. The dividends declared in August are interim distributions in respect of 2023 and 2024.
A final dividend of 121.0 pence per share (£366.6 million) has been proposed in respect of the 2024 financial year. Refer to the
Chair’s Statement and Strategic Report for further detail.
The profit and loss account of the Parent Company does not include any unrealised profits, therefore the amount available
for distribution by reference to these accounts is £348.3 million. Interim accounts will be laid before Companies House prior
to payment of the 2024 Final Dividend in order to demonstrate that profits are available for distribution.
The Group also has substantial retained profits in its subsidiary companies which are expected to flow up to the Parent Company
in due course, such that surplus cash generated can continue to be returned to shareholders.
Admiral Group plc Annual Report and Accounts 2024
302
Notes to the Parent Company Financial Statements continued
For the year ended 31 December 2024
11. Related party transactions
The Company has taken advantage of the exemptions permitted by Financial Reporting Standard 101.8 (k) and not disclosed details
of transactions with other wholly owned group undertakings.
The Board considers that only the Executive and Non-Executive Directors of Admiral Group plc are key management personnel.
See note 12 to the consolidated financial statements for further information.
12. Guarantees and contingent liabilities
During 2018, a Special Purpose Entity (SPE) was set up in order to secure additional funding for the Admiral Money business,
with a second such SPE set up in October 2021. The Company acts as guarantor for certain operational performance conditions
of its subsidiary, AFSL, as seller and servicer for the SPEs, and indemnifies AFSL in respect of any amount that would have been
payable by AFSL for non-compliance with such performance conditions.
One of the Groups’ previously owned subsidiaries was subject to a Spanish Tax Audit which concluded with the Tax Authority
denying the application of the VAT exemption relating to insurance intermediary services. The Company has appealed this decision
via the Spanish Courts and is confident in defending its position which is, in its view, in line with the EU Directive and is also
consistent with the way similar supplies are treated throughout Europe. Whilst the Company is no longer part of the Admiral Group,
the contingent liability which the Company is exposed to has been indemnified by the Admiral Group up to a cap of €24 million.
A number of the Group’s contractual arrangements with reinsurers include features that, in certain scenarios, allow for reinsurers
to recover losses incurred to date. The overall impact of such scenarios would not lead to an overall net economic outflow from
Admiral Group plc.
13. Post balance sheet events
No events have occurred since the reporting date that materially impact these financial statements.
14. Continued application of Financial Reporting Standard (FRS) 101 - Reduced Disclosure Framework
Following the first time application of FRS 101 Reduced Disclosure Framework in 2015, the Board considers that it is in the best
interests of the Group for Admiral Group plc to continue to apply the FRS 101 Reduced Disclosure Framework in future periods.
A shareholder or shareholders holding in aggregate 5% or more of the total allotted shares in Admiral Group plc may serve
objections to the use of the disclosure exemptions on Admiral Group plc, in writing, to its registered office (Tŷ Admiral, David Street,
Cardiff CF10 2EH) no later than 30 June 2025.
Admiral Group plc Annual Report and Accounts 2024
303
Glossary
Alternative Performance Measures
Throughout this report, the Group uses a number of Alternative Performance Measures (APMs); measures that are not required
or commonly reported under International Financial Reporting Standards, the Generally Accepted Accounting Principles (GAAP)
under which the Group prepares its financial statements.
These APMs are used by the Group, alongside GAAP measures, for both internal performance analysis and to help shareholders
and other users of the Annual Report and financial statements to better understand the Group’s performance in the period
in comparison to previous periods and the Group’s competitors.
The table below defines and explains the primary APMs used in this report. Financial APMs are usually derived from financial
statement items and are calculated using consistent accounting policies to those applied in the financial statements, unless
otherwise stated. Non-financial KPIs incorporate information that cannot be derived from the financial statements but provide
further insight into the performance and financial position of the Group.
APMs may not necessarily be defined in a consistent manner to similar APMs used by the Group’s competitors. They should
be considered as a supplement rather than a substitute for GAAP measures.
Turnover
Turnover is defined as total premiums written (as below), Other insurance revenue, Other revenue
and interest income from Admiral Money. It is reconciled to financial statement line items in note
14 to the financial statements.
This measure has been presented by the Group in every Annual Report since it became a listed
Group in 2004. It reflects the total value of the revenue generated by the Group and analysis of
this measure over time provides a clear indication of the size and growth of the Group.
The measure was developed as a result of the Group’s business model. The UK Car insurance
business has historically shared a significant proportion of the risks with Munich Re, a third party
reinsurance Group, through a co-insurance arrangement, with the arrangement subsequently
being replicated in some of the Group’s international insurance operations. Premiums and claims
accruing to the external co-insurer are not reflected in the Group’s income statement and
therefore presentation of this metric enables users of the Annual Report to see the scale of the
Group’s insurance operations in a way not possible from taking the income statement in isolation.
Total Premiums Written
Total premiums written are the total forecast premiums, net of forecast cancellations written in the
underwriting year within the Group, including co-insurance. It is reconciled to financial statement
line items in note 14 to the financial statements.
This measure has been presented by the Group in every Annual Report since it became a listed
Group in 2004. It reflects the total premiums written by the Group’s insurance intermediaries and
analysis of this measure over time provides a clear indication of the growth in premiums,
irrespective of how co-insurance agreements have changed over time.
The reasons for presenting this measure are consistent with that for the Turnover APM noted above.
Underwriting result
(profit or loss)
For each insurance business an underwriting result is presented. This shows the insurance
segment result before tax excluding investment income, finance expenses, co-insurer profit
commission and other net income. It excludes both gross share scheme costs and any assumed
quota share reinsurance recoveries on those share scheme costs.
The calculations and compositions of the underwriting result are presented within Appendix 1
to these financial statements.
Loss Ratio
Loss ratios are reported as follows:
Reported loss ratios are expressed as a percentage, of claims incurred, on a gross basis net
of XoL reinsurance, divided by insurance revenue net of XoL reinsurance premiums ceded.
The reported loss ratios use the total claims, and earned premium and related income (instalment
income, administration fees and ancillary income where it is highly correlated to the core product).
It is understood that this is consistent with the approach taken by peers, and it is considered
to reflect the true profitability of products sold.
Core product loss ratios use the total claims and earned premiums for the core product only
(insurance premiums excluding instalment income, administration fees & ancillary income).
This measure is more consistent with that used previously, and are reflective of the performance
of the core product in a line of business.
The calculations and compositions of the loss ratios are presented within Appendix 1 to these
financial statements.
Admiral Group plc Annual Report and Accounts 2024
304
Glossary continued
Expense Ratio
Expense ratios are reported as follows:
Reported expense ratios are expressed as a percentage, of expenses incurred, on a gross basis
excluding share scheme costs, divided by insurance revenue net of XoL reinsurance premiums
ceded.The reported expense ratios use the total expenses (excluding share scheme costs), and
earned premium and related income (instalment income, administration fees and ancillary income
where it is highly correlated to the core product). It is understood that this is consistent with the
approach taken by peers, and it is considered to reflect the true profitability of products sold.
Core product expense ratios use the total expenses (excluding share scheme costs) and earned
premiums for the core product only (insurance premiums excluding instalment income,
administration fees & ancillary income). This measure is more consistent with that used previously,
and are reflective of the performance of the core product in a line of business.
Written expense ratios are calculated using total expenses (excluding share scheme costs)
and written premiums, net of cancellation provision, for the core product only.
The calculations of the reported expense ratios are presented within Appendix 1 to the
financial statements.
Combined Ratio
Combined ratios are the sum of the loss and expense ratios as defined above. Explanation
of these figures is noted above.
Insurance service margin
This is the reported insurance segment underwriting result, divided by insurance revenue net
of excess of loss premiums ceded. Reconciliation of the calculations are provided in Appendix 1.
Quota share result
The total result (ceded premiums minus ceded recoveries) from contractual quota share
arrangements, excluding the quota share reinsurer’s share of share scheme expenses, finance
expenses and onerous loss component. Reconciliation of the calculations are provided in
Appendix 1.
Segment result
The profit or loss before tax reported for individual business segments, which exclude net share
scheme costs and other central expenses.
Return on Equity
Return on equity is calculated as profit after tax for the period attributable to equity holders of the
Group divided by the average total equity attributable to equity holders of the Group in the year.
This average is determined by dividing the opening and closing positions for the year by two.
It excludes the impact of discontinued operations.
Group Customers
Group customer numbers reflect the total number of cars, vans, households and pets on cover
at the end of the year, across the Group, and the total number of travel insurance, Admiral Money
and Admiral Business customers.
This measure has been presented by the Group in every Annual Report since it became a listed
Group in 2004. It reflects the size of the Group’s customer base and analysis of this measure over
time provides a clear indication of the growth. It is also a useful indicator of the growing
significance to the Group of the different lines of business and geographic regions.
The measure has been restated from 2022 onwards to exclude Veygo policies, given the significant
fluctuations that can arise at a point in time as a result of the short-term nature of the product.
Solvency Ratio
The Solvency UK regulatory framework requires insurers to hold funds in excess of the Solvency
Capital Requirement (SCR). Own funds are available capital resources determined under Solvency
UK. The SCR is calculated at a Group level using the standard formula, to reflect the cost of
mitigating the risk of insolvency to a 99.5% confidence level over a one-year time horizon –
equivalent to a 1 in 200 year event – against financial and non-financial shocks.
Admiral Group plc Annual Report and Accounts 2024
305
Glossary continued
Additional Terminology
There are many other terms used in this report that are specific to the Group or the markets in which it operates. These are defined
as follows:
Accident year
The year in which an accident occurs. Claims incurred may be presented on an accident year
basis or an underwriting year basis, the latter sees the claims attach to the year in which the
insurance policy incepted.
Actuarial best estimate
The probability-weighted average of all future claims and cost scenarios calculated using historical
data, actuarial methods and judgement.
ASHE
‘Annual Survey of Hours and Earnings’ – a statistical index that is typically used for calculating
the inflation of annual payment amounts under Periodic Payment Order (PPO) claims settlements.
Claims reserves
A monetary amount set aside for the future payment of incurred claims that have not yet been
settled, thus representing a balance sheet liability.
Co-insurance
An arrangement in which two or more insurance companies agree to underwrite insurance
business on a specified portfolio in specified proportions. Each co-insurer is directly liable to the
policyholder for their proportional share.
Commutation
An agreement between a ceding insurer and the reinsurer that provides for the valuation,
payment, and complete discharge of all obligations between the parties under a particular
reinsurance contract.
The Group typically commutes UK motor insurance quota share contracts after 24-36 months
from the start of an underwriting year where it makes economic sense to do so.
Earnings per share
Earnings per share represents the profit after tax attributable to equity shareholders, divided by
the weighted average number of basic shares.
Effective Tax Rate
Effective tax rate is defined as the approximate tax rate derived from dividing the tax charge
going through the income statement by the Group’s profit before tax. It is a measure historically
presented by the Group and enables users to see how the tax cost incurred by the Group
compares over time and to current corporation tax rates.
EIOPA
European Insurance and Occupational Pensions Authority: EIOPA is the European supervisory
authority for occupational pensions and insurance.
Expected credit loss (ECL)
Expected Credit Loss (ECL) is the probability-weighted estimate of credit losses over the
expected life of a Financial Instrument.
Insurance market cycle
The tendency for the insurance market to swing between highs and lows of profitability over time,
with the potential to influence premium rates (also known as the “underwriting cycle”).
Claims net of XoL reinsurance
The cost of claims incurred in the period, less any claims costs recovered via salvage and
subrogation arrangements or under XoL reinsurance contracts. It includes both claims payments
and movements in claims reserves.
Excess of Loss (‘XoL’)
reinsurance
Contractual arrangements whereby the Group transfers part or all of the insurance risk accepted
to another insurer on an excess of loss (‘XoL’) basis (full reinsurance for claims over an agreed value).
Insurance premium revenue
Insurance premium revenue reflects the expected premium receipts allocated to the period based
on the passage of time, adjusted for seasonality if required. It excludes “Other insurance revenue”
as defined below.
Insurance premium revenue
net of XoL
Insurance premium revenue less the ceded XoL reinsurance earned in the period.
Other Insurance revenue
Insurance revenue minus insurance premium revenue as defined above. Other insurance revenue
is comprised of revenue that is considered non-separable from the core insurance product sold
and therefore under IFRS 17 is reported within insurance revenue. For the Group, this is typically
the instalment income, administration fees and any other non-separable income related to the
Group’s retained share of the underwritten products.
Net promotor score
NPS is currently measured based on a subset of customer responding to a single question: On a
scale of 0-10 (10 being the best score), how likely would you recommend our Company to a friend,
family or colleague through phone, online or email. Answers are then placed in 3 groups;
Detractors: scores ranging from 0 to 6; Passives/neutrals: scores ranging from 7 to 8; Promoters:
scores ranging from 9 to 10 and the final NPS score is : % of promoters - % of detractors
Ogden discount rate
The discount rate used in calculation of personal injury claims settlements in the UK.
Periodic Payment Order (PPO)
A compensation award as part of a claims settlement that involves making a series of annual
payments to a claimant over their remaining life to cover the costs of the care they will require.
Admiral Group plc Annual Report and Accounts 2024
306
Glossary continued
Premium
A series of payments are made by the policyholder, typically monthly or annually, for part of or all
of the duration of the contract. Written premium refers to the total amount the policyholder has
contracted for, whereas earned premium refers to the recognition of this premium over the life of
the contract.
Profit commission
A clause found in some reinsurance and co-insurance agreements that provides for profit sharing.
Co-insurer profit commission is presented separately on the income statement whilst reinsurer
profit commissions are presented within the reinsurance result, as a part of any recovery for
incurred claims.
Quota share
reinsurance result
Admiral’s quota share (QS) reinsurance result reflects the net movement on ceded premiums,
reinsurer margins and expected recoveries (claims and expenses, excluding share scheme
charges) for underwriting years on which quota share reinsurance is in place.
Regulatory Solvency Capital
Requirement (‘SCR’)
The Group’s Regulatory Solvency Capital Requirement (SCR) is an amount of capital that it should
hold in addition to its liabilities in order to provide a cushion against unexpected events. In line with
the rulebook of the Group’s regulator, the PRA, the Group’s SCR is calculated using the Solvency II
Standard Formula, and includes a fixed capital add-on to reflect limitations in the Standard
Formula with respect to Admiral’s risk profile (predominately in respect of co-and reinsurance
profit commission arrangements and risks relating to Periodic Payment Orders (PPOs). The
Group’s current fixed capital add-on of £24 million was approved by the PRA during 2023.
The Group is required to maintain eligible Own Funds ( Solvency II capital) equal to at least 100%
of the Group SCR. Both eligible Own Funds and the Group SCR are reported to the PRA on a
quarterly basis and reported publicly on an annual basis in the Group’s Solvency and Financial
Condition Report.
Admiral separately calculates a ‘dynamic’ capital add-on and has used this this to report a
solvency capital requirement and solvency ratio at the date of this report. A reconciliation between
the regulatory solvency ratio and that calculated on a dynamic basis is included in note 3 to the
Group financial statements.
Reinsurance
Contractual arrangements whereby the Group transfers part or all of the insurance risk accepted
to another insurer. This can be on a quota share basis (a percentage share of premiums, claims
and expenses) or an excess of loss (‘XoL’) basis (full reinsurance for claims over an agreed value).
Scaled Agile
Scaled Agile is a framework that uses a set of organisational and workflow patterns for
implementing agile practices at an enterprise scale. Scaled agile at Admiral represents the ability
to drive agile at the team level whilst applying the same sustainable principles of the group.
Securitisation
A process by which a group of assets, usually loans, is aggregated into a pool, which is used to
back the issuance of new securities. A Company transfer assets to a special purpose entity (SPE)
which then issues securities backed by the assets.
Solvency ratio
A ratio of an entity’s Solvency II capital (referred to as Own Funds) to Solvency Capital
Requirement. Unless otherwise stated, Group solvency ratios include a reduction to Own Funds
for a foreseeable dividend (i.e. dividends relating to the relevant financial period that will be paid
after the balance sheet date)
Special Purpose Entity (SPE)
An entity that is created to accomplish a narrow and well-defined objective. There are specific
restrictions or limited around ongoing activities. The Group uses an SPE set up under a
securitisation programme.
Ultimate loss ratio
A projected actuarial best estimate loss ratio for a particular accident year or underwriting year.
Underwriting year
The year in which an insurance policy was incepted.
Underwriting year basis
Also referred to as the written basis. Claims incurred are allocated to the calendar year in which
the policy was underwritten. Underwriting year basis results are calculated on the whole account
(including co-insurance and reinsurance shares) and include all premiums, claims, expenses
incurred and other revenue (for example instalment income and commission income relating to the
sale of products that are ancillary to the main insurance policy) relating to policies incepting in the
relevant underwriting year.
Written/Earned basis
An insurance policy can be written in one calendar year but earned over a subsequent calendar year.
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