REG-Half-year report
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14 August 2025
2025 Interim Results Highlights
Admiral Group reports excellent H1 2025 results
Six months ended:
30 June 2025 30 June 2024 % change vs. 2024
Group profit before tax from continuing operations (2) £521.0m £307.6m +69%
Earnings per share from continuing operations (2) 132.5p 76.9p +72%
Interim dividend per share 115.0p 71.0p +62%
Return on equity (1) 57% 45% +12pts
Group turnover (1 2) £3.10bn £3.10bn —%
Insurance revenue (2) £2.47bn £2.09bn +18%
Group customers (1 2) 11.42m 10.38m +10%
UK insurance customers (1) 9.30m 8.23m +13%
European insurance customers (1) 1.91m 1.96m -3%
Admiral Money gross loan balances £1.28bn £1.03bn +25%
Solvency ratio (post-dividend) (1) 194% 198% -4pts
1 Alternative Performance Measures – refer to the end of the report for
definition and explanation.
2 Re-presented on a continuing operations basis, to exclude the US Insurance
result following the announcement of its planned sale.
Over 13,000 employees will each receive free share awards worth up to £1,800
under the employee share schemes based on the interim 2025 results.
Comment from Milena Mondini de Focatiis, Group Chief Executive Officer:
“We have delivered another excellent first half with strong execution across
all strategic objectives. Group profit increased 69 per cent to a record £521
million. We have an additional one million customers across our diversified
businesses compared to this time last year, due to our focus on offering
competitively priced cover and excellent service across our diversified
businesses.
“In the UK, car insurance prices have been falling for the last 18 months
due to softer inflation. Our disciplined approach to pricing and growth means
that we reported a great performance across the board. Our UK Motor business
increased its profit by 56 per cent and the UK Household and Admiral Money
businesses continued to grow, more than doubling their respective profit. In
Europe, we saw good progress with growth in France and Italy close to
restoring profitability.
“In March, we said that our priority was to stay efficient and agile and we
are continuously investing in our data and technological capabilities to
future-proof our competitive advantage. We are enhancing the customer
experience so we can help our 11 million customers safely back onto the road,
back into their home or back from abroad faster than ever. I’m proud of our
colleagues’ customer-centric approach which has resulted in an excellent
Group net promoter score. I am also proud of the way that we are supporting
customers’ transition to a lower carbon economy and boosting their
resilience and preparedness for extreme weather.
“Our sustainability commitment is also reflected in our dedication to our
people and society. I was pleased to see our AAA ESG score reaffirmed by MSCI
and delighted that the UK business achieved Legendary status, having been
recognised as a Great Place to Work for the 25th consecutive year.
“I’m very excited to see our businesses go from strength to strength.
I’m confident in our fundamentals and adaptability which mean that we are
well-placed for further success, delivering even more value for our
shareholders and our growing customer base.”
Dividend
The Board has declared an interim dividend of 115.0 pence per share (2024
interim: 71.0 pence per share) representing a normal dividend (65% of post-tax
profits) of 85.9 pence per share and a special dividend of 29.1 pence per
share. The interim dividend will be paid on 3 October 2025. The ex-dividend
date is 4 September 2025, and the record date is 5 September 2025.
Management presentation
Analysts and investors will be able to access the Admiral Group management
presentation which commences at 10.00 GMT on Thursday 14 August 2025 by
registering at the following link to attend the presentation in person, or
access the presentation live via webcast or conference call:
https://admiralgroup.co.uk/events/event-details/2025-half-year-results. A copy
of the presentation slides will be available at the following link: Results,
reports and presentations | Admiral Group Plc (www.admiralgroup.co.uk)
Investors and Analysts: Admiral Group plc
Diane Michelberger Diane.Michelberger@admiralgroup.co.uk
Media: Admiral Group plc
Addy Frederick Addy.Frederick@admiralgroup.co.uk
+44 (0) 7500 171 810
Media: FTI Consulting
Edward Berry +44 (0) 7703 330 199
Tom Blackwell +44 (0) 7747 113 919
H1 2025 Group overview
£m 30 June 2025 30 June 2024 % change vs. 2024
Group turnover (1 3 5) £3.10bn £3.10bn —%
Net insurance and investment result 469.1 278.5 +68%
Net interest income from financial services 41.5 36.3 +14%
Other income and expenses 22.4 6.6 +239%
Operating profit 533.0 321.4 +66%
Group profit before tax from continuing operations 521.0 307.6 +69%
Group profit before tax from discontinued operations (4.9) 2.2 nm (4)
Group profit before tax 516.1 309.8 +67%
Analysis of profit
UK Insurance 584.4 363.3 +61%
European Insurance (0.6) (1.3) +53%
European Insurance - Motor 0.8 1.1 -31%
European Insurance - Other (1.4) (2.4) +43%
Admiral Money 16.3 6.8 +139%
Other (79.1) (61.2) -29%
Group profit before tax from continuing operations (5) 521.0 307.6 +69%
Key metrics
Reported Group loss ratio (1 2 5) 57.4% 57.0% +0.4pts
Reported Group expense ratio (1 2 5) 20.3% 22.8% -2.5pts
Reported Group combined ratio (1 2 5) 77.7% 79.8% -2.1pts
Insurance service margin (1 2 5) 18.8% 12.6% +6.2pts
Customer numbers (million) (1 5) 11.42 10.38 +10%
Earnings per share 130.9p 77.5p +69%
Earnings per share from continuing operations 132.5p 76.9p +72%
Interim dividend per share 115.0p 71.0p +62%
Return on equity (1) 57% 45% +12pts
Solvency ratio (1) 194% 198% -4pts
1 Alternative Performance Measures – refer to the end of the report for
definition and explanation.
2 Reported 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.
3 Alternative Performance Measures – refer to note 14 for explanation and
reconciliation to statutory income statement measures.
4 Definition: nm – not meaningful.
5 Reported on a continuing basis only. H1 2024 comparatives are re-presented
to exclude the US Insurance result following the announcement of its planned
sale.
Group highlights
* Group continuing operations pre-tax profit was £521.0 million, 69% higher
than the first half of 2024 driven by the strong performance in UK Insurance,
particularly UK Motor, as strong 2024 underwriting year profitability earns
through
* Group customer numbers increased by 10% to 11.4 million – good growth in
UK Insurance (including 5% and 19% Motor and Household); though a small
reduction in Europe (-3%) due to portfolio actions in Italy
* Group turnover was flat H1 on H1, as good growth in Household Insurance
(29%) was offset by reduced UK Motor turnover (-6%) as average premiums
reduced
* UK Motor Insurance profit increased strongly by 56% to £559 million from
£359 million with higher insurance revenue and a notably improved insurance
service margin
* Higher pre-tax profit in UK Household Insurance of £25.2 million (H1 2024:
£11.3 million), with growth in both customers and turnover, and a continued
strong combined ratio
* A modestly improved result in European Insurance (£-0.6 million v £-1.3
million), with continued profits in L’olivier and a reduced loss in Italy as
good progress is made in restoring underwriting profitability
* Strong growth in Admiral Money profit to £16.3 million (H1 2024: £6.8
million) and gross loan balances (25% year-on-year growth), with a sale of a
portion of the back book loan portfolio completed and new forward flow
arrangements contributing to the higher pre-tax profits.
Sale of Elephant
As announced during H1 2025, the Group has entered an agreement to sell its US
motor insurance business, including Elephant Insurance Company and Elephant
Insurance Services (“Elephant”) to J.C. Flowers & Co. (“J.C. Flowers”)
a global private investment firm dedicated to investing in the financial
services industry, for an undisclosed cash consideration (before customary
adjustments and transaction and related expenses) representing approximately
the net asset value of Elephant. The transaction is subject to regulatory
approval and is expected to close in Q4 2025.
Elephant is therefore presented separately as a discontinued operation within
the Group results, with the prior year comparative results re-presented on the
same basis.
Earnings per share
Earnings per share for continuing operations for H1 2025 were 132.5 pence (H1
2024: 76.9 pence). The increase from 2024 is broadly aligned to the increase
in pre-tax profit.
Return on equity
Return on equity was 57% for H1 2025, 12 points higher than the 45% reported
for H1 2024. The increase is the result of the 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. The Group expects to start buying
shares in the market for the share plans either in Q4 2025 or H1 2026, in
anticipation of share awards and vesting in 2026.
The Board has declared an interim dividend of 115.0 pence per share
(approximately £349.1 million) splits as follows:
* 85.9 pence per share normal dividend
* A special dividend of 29.1 pence per share.
The 2025 interim dividend reflects a pay-out ratio of 88% of total earnings
per share. 115.0 pence per share is 62% higher than the interim 2024 dividend
(71.0 pence per share), broadly in line with the growth in earnings per
share.
The 2025 interim dividend payment date is 3 October 2025, ex-dividend date
4 September 2025, and record date 5 September 2025.
UK Insurance
£m 30 June 2025 30 June 2024 31 December 2024
Turnover (1 2) 2,654.3 2,675.2 5,108.5
Total premiums written (1) 2,461.7 2,511.6 4,745.2
Insurance revenue 2,109.4 1,761.3 3,873.4
Underwriting result (1) 458.2 260.1 764.4
Net investment income 44.7 33.0 70.5
Co-insurer profit commission and net other revenue 81.5 70.2 141.8
UK Insurance profit before tax (1) 584.4 363.3 976.7
Segment result: UK Insurance profit before tax(1)
£m 30 June 2025 30 June 2024 31 December 2024
Motor 559.3 358.9 955.1
Household 25.2 11.3 34.1
Travel and Pet (0.1) (6.9) (12.5)
UK Insurance profit before tax (3) 584.4 363.3 976.7
Segment performance indicators(1)
30 June 2025 30 June 2024 31 December 2024
Vehicles insured at period end 5.75m 5.48m 5.69m
Households insured at period end 2.14m 1.81m 1.97m
Travel and Pet policies at period end 1.41m 0.94m 1.14m
Total UK Insurance customers 9.30m 8.23m 8.80m
1 Alternative Performance Measures – refer to the end of this report for
definition and explanation.
2 Alternative Performance Measures – refer to note 14 for explanation and
reconciliation to statutory income statement measures.
3 For the year ended 31 December 2024, the result includes a one off gain of
£100 million related to the change in the Ogden rate from -0.25% to 0.5%. The
impact of Ogden continuing to earn through in H1 2025 is not material.
Highlights for the UK Insurance business include:
* In UK Motor: * Profit of £559.3 million was 56% higher than H1 2024.
Increased insurance revenue (15%) and a lower current period loss and expense
ratio as the strong performance of the 2024 underwriting year earns through
* A 5% increase in customer numbers since 30 June 2024 (1% increase in H1
2025). Growth was modest in H1 2025 due to the more competitive market with
Admiral remaining disciplined and focussing on medium-term profitability
* Turnover has reduced by 6% compared to H1 2024, due to rate reductions and a
shift in sales mix from new business to renewals leading to lower average
premiums
* In UK Household: * Continued growth in both customer numbers of 19% to 2.14
million (30 June 2024: 1.81 million) and turnover of 29% to £276.4 million
(H1 2024: £214.6 million)
* Profit more than doubled to £25.2 million (H1 2024: £11.3 million), with
an improved current period combined ratio and higher reinsurance profit
commission following good performance from the 2024 underwriting year more
than offsetting lower prior year releases
* In UK Travel and Pet Insurance: * Both business lines continued to
significantly grow their customer bases and turnover, with transfer of renewal
rights from the More Than acquisition largely complete
* Travel delivered a higher profit, whilst the loss in Pet reduced due to
higher earned premiums and non-repeat of H1 2024 More Than integration costs.
UK Motor Insurance
£m 30 June 2025 30 June 2024 31 December 2024
Turnover (1) 2,268.7 2,402.7 4,495.9
Total premiums written (1 2) 2,092.1 2,250.5 4,157.7
Insurance premium revenue (1) 1,666.1 1,448.6 3,160.5
Other insurance revenue (1) 109.1 90.9 209.0
Insurance revenue 1,775.2 1,539.5 3,369.5
Insurance revenue net of XoL (2 4) 1,729.5 1,493.0 3,271.4
Insurance expenses (1 2 3) (289.4) (288.0) (586.8)
Insurance claims incurred net of XoL (2 4) (1,139.3) (1,032.0) (2,078.1)
Insurance claims releases net of XoL (2 4) 197.0 218.7 374.6
Underwriting result, net of XoL reinsurance 497.8 391.7 981.1
Quota share reinsurance result (2 3) (56.5) (132.0) (228.8)
Movement in onerous loss component net of reinsurance (2) — 0.8 1.1
Underwriting result (2) 441.3 260.5 753.4
Investment income 91.5 69.5 150.0
Net insurance finance expenses (50.8) (38.3) (83.4)
Net investment income 40.7 31.2 66.6
Co-insurer profit commission 39.1 24.5 53.3
Other net income 38.2 42.7 81.8
UK Motor Insurance profit before tax (1 9) 559.3 358.9 955.1
Segment performance indicators
30 June 2025 30 June 2024 31 December 2024
Reported Motor loss ratio (1 2 5) 54.5% 54.5% 52.1%
Reported Motor expense ratio (1 2 5) 16.7% 19.3% 17.9%
Reported Motor combined ratio (1 2 5) 71.2% 73.8% 70.0%
Reported Motor Insurance service margin (1 2 5) 25.5% 17.4% 23.0%
Core motor loss ratio before releases (1 2 6) 72.3% 75.3% 69.2%
Core motor claims releases (1 2 6) (12.6)% (16.1)% (12.7)%
Core motor loss ratio (1 2 6) 59.7% 59.2% 56.5%
Core motor expense ratio (1 2 6) 16.9% 19.7% 18.2%
Core motor combined ratio (1 6) 76.6% 78.9% 74.7%
Core motor written expense ratio (1 2 7) 16.3% 15.5% 16.8%
Vehicles insured at period end (1 2) 5.75m 5.48m 5.69m
Other revenue per vehicle (2 8) £77 £62 £76
1 Alternative Performance Measures – refer to the end of this report for
definition and explanation.
2 Alternative Performance Measures – refer to Appendix 1b for explanation
and reconciliation to statutory income statement measures.
3 Insurance expenses and quota share reinsurance result excludes gross and
reinsurers’ share of share scheme charges respectively. Share scheme charges
are reported in Other Group Items.
4 XoL refers to Excess of Loss (non-proportional) reinsurance; see glossary at
end of report for further information.
5 Reported Motor loss ratio, expense ratio and insurance service margin are
all net of XoL, as defined in the glossary. Reconciliation in Appendix 1b.
6 Core Motor loss ratio, expense ratio and combined ratio are all net of XoL,
as defined in the glossary. Reconciliation in Appendix 1b.
7 Core motor written expense ratio defined as insurance expenses divided by
core product written insurance premium, net of excess of loss reinsurance.
8 Other revenue per vehicle includes other revenue included within insurance
revenue. See ‘Other Revenue’ section for explanation.
9 For the year ended 31 December 2024, the result includes a one off gain of
£100 million related to the change in the Ogden rate from -0.25% to 0.5%. The
impact of Ogden continuing to earn through in H1 2025 is not material.
UK Motor reported a profit of £559 million, 56% higher than H1 2024 (£359
million), the increase being the result of the significant growth and higher
average premiums in 2024 continuing to earn through in the period, resulting
in higher insurance revenue and, combined with favourable claims frequency and
stable inflation, a more favourable current period combined ratio.
Expenses were flat in absolute terms compared to H1 2024, resulting in a lower
reported expense ratio. The higher written expense ratio is due to lower
written premiums in the period.
Quota share costs in H1 2025 primarily reflect the cost of the margin on
current underwriting years, and are therefore lower than H1 2024 where a
significant proportion of the cost related to the reinsurers’ share of
claims releases on underwriting years 2021 - 2023.
Favourable net investment income continues to be driven by higher investment
balances.
Claims
Claims inflation continues to show signs of stabilising, with Admiral's
current estimate of average claims cost inflation for full-year 2025 being
consistent with full-year 2024 at 5% - 7%. Observed claims frequency is flat
in the period, but reduced H1 2025 versus H1 2024.
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 to date, when compared to 2024. A prudent allowance is
maintained in the best estimate reserves to reflect potential impacts
of higher than historic levels of future cost of care 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 tariff reforms, and
regulatory developments. The Ogden discount rate of +0.5%, as announced
in December 2024, has been used within the best estimate reserves.
Admiral continues to hold a significant and prudent risk adjustment above best
estimate reserves, with the UK Motor risk adjustment confidence level held at
the 95th percentile (95th percentile at 31 December 2024; 93rd percentile at
30 June 2024). When setting the level of risk adjustment, due consideration
has been given to the inherent uncertainty in bodily injury claims, the
Group’s ongoing assessment of uncertainty arising from internal and external
factors and continued releases seen in recent periods in the UK motor book.
There has been no significant change in the volatility of the reserve risk
distribution from which the percentile is selected since 2024.
As reported in the 2024 financial statements, in line with the FCA’s
multi-firm review into UK motor insurance total loss claims valuations,
Admiral has conducted a review of its total loss and related processes,
considering current practice and customer outcomes in the recent past.
Primarily as a result of certain internal processes failing to respond swiftly
enough to evolving external factors, including significant volatility in used
car prices in recent years, the review has concluded that some action is
required in respect of total loss settlements covering the period 2019 to
2024.
The estimated incremental claims cost of this action to Admiral (excluding
statutory interest) is approximately £50 million (around half of which has
been accounted for in H1 2025, the remainder in the previous financial year).
For context, the cost represents approximately 3% of motor total loss claims
over the relevant period. Admiral expects to begin contacting impacted
customers during H2 2025, and whilst noting uncertainty remains, does not
expect the final cost of the action to vary materially from that noted above.
The core motor loss ratio has increased to 59.7% (H1 2024: 59.2%) with
offsetting movements in the current period loss ratio and prior year reserve
releases, as follows:
Core Motor loss ratio (1 2) Core motor loss ratio before releases Impact of claims reserve releases Core motor loss ratio
H1 2024 75.3% (16.1)% 59.2%
Change in current period loss ratio (3.0)% —% (3.0)%
Change in claims reserve release —% 3.5% 3.5%
H1 2025 72.3% (12.6)% 59.7%
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 2024, in particular H1 2024, as
well as favourable frequency trends, have driven the 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 lower than that
observed in H1 2024, driven primarily by lower releases on the best estimate
given higher levels of claims settlement activity during H1 2024 ahead of the
anticipated increase in Personal Injury (“Ogden”) Discount Rate. The lower
release percentage is a result of a combination of lower absolute releases and
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 assumed recovery of 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 result(1)
£m 30 June 2025 30 June 2024 31 December 2024 Quota share claims asset 30 June 2025
2022 and prior (23.7) (61.9) (111.2) 61.6
2023 (2) (1.6) (58.9) (81.0) —
2024 (17.0) (11.2) (36.6) —
2025 (14.2) — — —
Total (56.5) (132.0) (228.8) 61.6
1 Quota share result in underwriting year 2025 includes a £7.6 million
recharge for the reinsurer’s assumed share scheme recoveries, out of other
Group costs in line with prior period (H1 2024: £5.2 million).
2 Reflects quota share reinsurers’ margin (H1 2025: £1.6 million; H1 2024:
£14.0 million; FY 2024: £18.6 million) along with quota share proportion of
favourable claims development.
The quota share charge in H1 2025 primarily reflects the cost of the earning
of the reinsurer margin on underwriting years 2024 and 2025, along with
charges on underwriting years 2021 and 2022 reflecting the reversal of quota
share recoveries previously recognised following favourable development in the
underlying loss ratios.
The total charge is lower in H1 2025 because the favourable development of
underlying loss ratios only impacts underwriting years 2021 and 2022, and the
charge on those years is smaller given relatively lower releases on those
underwriting years in H1 2025 compared to H1 2024. All other underwriting
years were profitable as at 31 December 2024 and therefore there is no quota
share asset to unwind in H1 2025.
Co-insurer profit commission
Co-insurer profit commission of £39.1 million is higher than in H1 2024
(£24.5 million).
In H1 2024, profit commission was suppressed on underwriting year 2024 (and
2023) due to losses on underwriting years 2021 and 2022 being carried forward
in line with contractual clauses. Over the last 12 months, the loss ratios on
underwriting years 2021-23 have developed favourably, which, combined with the
strong performance of the 2024 underwriting year, means that profit commission
is now recognised on the 2024 year, which contributes the majority of profit
commission recognised. The combined ratio is not yet low enough to recognise
profit commission on underwriting years 2021 - 2023, or 2025 where a cautious
approach has been taken given the early stage of development.
Net investment income
Net investment income increased to £40.7 million from £31.2 million in H1
2024, benefiting from higher investment income, which was largely offset by
increased net insurance finance expenses.
Investment income grew by 32% to £91.5 million (H1 2024: £69.5 million), as
a result of the continued increase in investment balances. 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 continued to
increase in H1 2025 (£50.8 million; H1 2024 £38.3 million) as a result of
the significant increase in risk-free interest rates since the start of 2022.
A significant proportion of the insurance finance expense in H1 2025 relates
to claims incurred during 2023 and 2024.
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.
Overall contribution increased to £174.0 million (H1 2024: £152.2 million),
primarily due to increased instalment income which reflects the higher earned
premiums in the period along with a small increase in the proportion of
customers paying by instalment. The annual percentage rate (APR) charged for
this payment method is at 15% at June 2025.
Other revenue was equivalent to £77 per vehicle (gross of costs), with net
other revenue per vehicle at £62 per vehicle, both up compared to H1 2024 in
line with the increased contribution, and aligned with the FY 2024 position.
UK Motor Insurance Other revenue
£m 30 June 2025
Within underwriting result Other net income Total
Premium and revenue from additional products and fees (1) 75.3 44.7 120.0
Instalment income and administration fees (2) 109.1 22.8 131.9
Other revenue 184.4 67.5 251.9
Claims costs and allocated expenses (3) (48.6) (29.3) (77.9)
Net other revenue 135.8 38.2 174.0
Other revenue per vehicle (4) £77
Other revenue per vehicle net of internal costs £62
£m 30 June 2024
Within underwriting result Other net income Total
Premium and revenue from additional products and fees (1) 64.7 41.5 106.2
Instalment income and administration fees (2) 90.9 19.8 110.7
Other revenue 155.6 61.3 216.9
Claims costs and allocated expenses (3) (46.1) (18.6) (64.7)
Net other revenue 109.5 42.7 152.2
Other revenue per vehicle (4) £62
Other revenue per vehicle net of internal costs £52
£m 31 December 2024
Within underwriting result Other net income Total
Premium and revenue from additional products and fees (1) 139.8 83.4 223.2
Instalment income and administration fees (2) 209.0 45.7 254.7
Other revenue 348.8 129.1 477.9
Claims costs and allocated expenses (3) (108.8) (47.3) (156.1)
Net other revenue 240.0 81.8 321.8
Other revenue per vehicle (4) £76
Other revenue per vehicle net of internal costs £61
1 Premium 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.
2 Instalment 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).
3 Claims 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.
4 Other revenue per vehicle (before internal costs) divided by average active
vehicles, rolling 12-month basis. Presented here based on all ancillary
income.
UK Household Insurance financial review
£m 30 June 2025 30 June 2024 31 December 2024
Turnover (1) 276.4 214.6 475.4
Total premiums written (1) 260.4 203.2 450.3
Insurance revenue 253.8 179.6 399.6
Insurance revenue net of XoL (1) 240.8 167.2 376.4
Insurance expenses (1) (56.4) (46.5) (102.9)
Insurance claims incurred net of XoL (1) (159.7) (113.5) (225.7)
Insurance claims releases net of XoL (1) 14.1 32.1 37.0
Underwriting result, net of XoL reinsurance (1) 38.8 39.3 84.8
Quota share reinsurance result (1 3) (20.3) (32.8) (61.2)
Underwriting result (1) 18.5 6.5 23.6
Net investment income 2.5 1.7 3.9
Other income 4.2 3.1 6.6
UK Household Insurance profit before tax (1) 25.2 11.3 34.1
Segment performance indicators
30 June 2025 30 June 2024 31 December 2024
Reported Household loss ratio (1 2) 60.5% 48.7% 50.1%
Reported Household expense ratio (1 2) 23.4% 27.8% 27.3%
Reported Household combined ratio (1 2) 83.9% 76.5% 77.4%
Household insurance service margin (2) 7.7% 3.9% 6.3%
Household loss ratio before releases (2) 66.4% 67.9% 60.0%
(Favourable) impact of weather on reported loss ratio vs budget (4) (1.2)% (1.3)% (7.9)%
Households insured at period end 2.14m 1.81m 1.97m
1 Alternative Performance Measures – refer to the end of this report for
definition and explanation.
2 Alternative Performance Measures – refer to Appendix 1c for explanation
and reconciliation to statutory income statement measures.
3 Quota share reinsurance result within the segment result excludes
reinsurers’ share of share scheme costs.
4 Weather impact, being the combined impact of claims related to freeze,
flood, storm and subsidence on the current period loss ratio, is disclosed
relative to a budget expectation.
The UK Household Insurance business reported strong growth in turnover of 29%
to £276.4 million (H1 2024: £214.6 million). The number of homes insured
increased by 19% to 2.14 million (30 June 2024: 1.81 million), with growth
coming both from the renewal rights acquired through the More Than
acquisition, and organic growth, notably from Admiral’s multi-product
offering.
Profit before tax for the period was £25.2 million (H1 2024:
£11.3 million), with the significant increase arising as a result of:
* A favourable current period combined ratio driven by higher earned premiums
arising from price increases over the past year reflecting ongoing claims
inflation, with continued lower claims frequency and severity.
* Lower prior year reserve releases of £14.1 million compared to an
exceptionally high H1 2024 (£32.1 million) - the comparative figure reflected
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 cost of quota share reinsurance due to increased profit commission,
primarily on underwriting year 2024, which is earning through as the year
becomes further developed.
The reported loss ratio excluding releases improved to 66.4% (H1 2024: 67.9%)
as a result of the higher earned premiums, along with continuing favourable
frequency trends.
Although weather was not a significant factor, it was less benign in H1 2025
than 2024, with more impact of flood, storm and potential subsidence events
following the dry UK weather; the overall impact was considered slightly below
a budget expectation, creating a net benefit to the current period loss ratio
of just under 1.2% (H1 2024: 1.3%, FY 2024 7.9%).
Despite growth in absolute expenses during the year as the business grew,
Admiral’s expense ratio improved to 23.4% (H1 2024: 27.8%), benefiting from
the larger portfolio and the earning through of higher average premiums.
Expenses during H1 2024 also included one-off IT integration costs relating to
the More Than acquisition.
The quota share result for the period (a charge of £20.3 million compared to
H1 2024: £32.8 million) arises as a result of the proportional sharing of the
positive underlying underwriting result, offset by increased profit commission
arising primarily from underwriting year 2024, which has continued to perform
favourably.
UK Pet and Travel Insurance financial review
£m 30 June 2025 30 June 2024 31 December 2024
Turnover (1) 109.3 57.9 137.2
Insurance revenue net of XoL (1) 80.1 41.7 103.4
Insurance expenses (1) (35.2) (26.1) (56.0)
Insurance claims net of XoL (1) (46.5) (22.5) (59.9)
Underwriting result, net of XoL reinsurance (1) (1.6) (6.9) (12.5)
Net investment income 1.5 — —
UK Travel and Pet result before tax (1) (0.1) (6.9) (12.5)
Segment performance indicators
£m 30 June 2025 30 June 2024 31 December 2024
Loss ratio (1 2) 58.0% 53.9% 57.9%
Expense ratio (1 2) 44.0% 62.8% 54.2%
Combined ratio (1 2) 102.0% 116.7% 112.1%
Insurance service margin (1 2) (1.9%) (16.6%) (12.1%)
Customers insured at period end 1.41m 0.94m 1.14m
1 Alternative Performance Measures – refer to the end of this report for
definition and explanation.
2 Alternative Performance Measures – refer to Appendix 1c for explanation
and reconciliation to statutory income statement measures.
The combined Travel and Pet Insurance businesses reported strong growth
in both customers (+49% to 1.4 million) and turnover (+89% to £109.3
million), reflecting both organic growth and the Pet Insurance renewals from
the More Than acquisition. The loss before tax for the period was
significantly reduced at £0.1 million (H1 2024 loss: £6.9 million), the
improvement arising from the continued growth which results in a more
favourable expense ratio, noting that H1 2024 also included a number of
one-off integration costs related to the More Than acquisition.
UK regulatory developments
Over recent periods there have been a number of industry wide regulatory
reviews and publications that have a potential impact on the general insurance
market and the Group. In particular the FCA has conducted reviews in respect
of motor total loss claims, premium finance, motor insurance pricing and
claims, home and travel insurance claims practices, the evaluation of general
insurance pricing practices and add-on products that have involved the Group.
The Group extensively engages with its regulators as part of normal operations
and participates in the industry wide regulatory reviews.
Admiral continues to focus on providing fairly priced products which meet the
needs of its customers, as well as monitoring and responding to regulatory
developments as they progress.
European Insurance financial review
£m 30 June 2025 30 June 2024 31 December 2024
Turnover (1 ) 331.6 340.8 639.9
Total premiums written (1) 305.9 317.4 596.7
Insurance revenue 312.2 300.4 606.7
Insurance revenue net of XoL (1) 299.0 282.3 572.7
Insurance expenses (1) (83.9) (83.2) (168.0)
Insurance claims net of XoL (1) (210.0) (214.4) (437.7)
Underwriting result, net of XoL (1) 5.1 (15.3) (33.0)
Quota share reinsurance result (1 3) (6.8) 10.5 12.4
Movement in net onerous loss component (0.2) 1.6 0.4
Underwriting result (1) (1.9) (3.2) (20.2)
Net investment income 1.1 2.0 1.4
Net other revenue 0.2 (0.1) (0.9)
European Insurance result, before tax (1) (0.6) (1.3) (19.7)
Segment performance indicators
£m 30 June 2025 30 June 2024 31 December 2024
Loss ratio (1 2) 70.2% 75.9% 76.4%
Expense ratio (1 2) 28.1% 29.5% 29.3%
Combined ratio¹ 98.3% 105.4% 105.7%
Insurance service margin (1 2) (0.6%) (1.1%) (3.5%)
Customers insured at period end (1) 1.91m 1.96m 1.97m
European Motor Insurance - highlights:
* Continued growth in France, with customers up 13% to 0.49 million (30 June
2024: 0.43 million), and profit of £5.0 million (H1 2024: £10.5 million; FY
2024: £11.1 million)
* A lower loss In Italy of £2.5 million (H1 2024: loss of £8.8 million), and
an improved combined ratio following good progress on returning the business
to profitability
* Modestly higher loss in Spain (£1.7 million v £0.6 million) with profits
from the direct channel offset by continuing investment to grow the broker
channel (with encouraging progress in H1 2025)
European Insurance - segment result(1)
£m 30 June 2025 30 June 2024 31 December 2024
European Motor 0.8 1.1 (14.8)
Spain Motor (1.7) (0.6) (3.1)
Italy Motor (2.5) (8.8) (22.8)
France Motor 5.0 10.5 11.1
Other (1.4) (2.4) (4.9)
European Insurance loss before tax (0.6) (1.3) (19.7)
European Motor Insurance – Geographical analysis(1)
30 June 2025 Spain Italy France Total
Vehicles insured at period end 0.45m 0.86m 0.49m 1.80m
Turnover (£m) 70.2 122.9 130.1 323.2
30 June 2024 Spain Italy France Total
Vehicles insured at period end 0.44m 1.00m 0.43m 1.87m
Turnover (£m) 67.7 148.2 117.5 333.4
31 December 2024 Spain Italy France Total
Vehicles insured at period end 0.45m 0.96m 0.45m 1.86m
Turnover (£m) 131.8 269.1 224.0 624.9
1 Alternative Performance Measures – refer to the end of this report for
definition and explanation.
2 Alternative Performance Measures – refer to Appendix 1d for explanation
and reconciliation to statutory income statement measures.
3 Quota share reinsurance result within the segment result excludes
reinsurers’ share of share scheme costs.
Admiral’s European insurance businesses reported a 3% reduction in customer
numbers at 30 June 2025 to 1.91 million (30 June 2024: 1.96 million),
primarily as a result of the strong pricing action taken in the second half of
2024 in Italy, partly offset by growth in France. Turnover fell to £331.6
million (H1 2024: £340.8 million) for the same reason.
The combined result for the segment improved modestly by £0.7 million to a
loss of £0.6 million (H1 2024: loss of £1.3 million) with the combined ratio
decreasing to 98.3% (H1 2024: 105.4%). The improved underwriting result in the
period was offset by the movement in the quota share result which changed from
a recovery of £10.5 million to a charge of £6.8 million. This is due to the
varying quota share arrangements in each line of business leading to different
phasing of recoveries and charges depending on the underwriting performance.
The pricing action referred to in Italy led to the result being much improved
compared to the second half of 2024.
Claims reserves in Europe continue to be set at or very close to the maximum
95th percentile risk adjustment strength allowed under the Group’s reserving
policy.
ConTe in Italy reported a lower loss of £2.5 million (H1 2024: loss of £8.8
million), the H1 2024 result being impacted by the increase to the settlement
inflation rate for large bodily injury claims provided by the court of Milan
(known as the Milano tables). Strong pricing and underwriting actions taken
throughout 2024 and in the first half of 2025 show early signs of
significantly improved loss ratios, though this has limited impact on the
first half result. Vehicles insured decreased by 14% to 0.86 million (30 June
2024: 1.00 million), as a result of the actions, with turnover decreasing by
slightly more at 17% to £122.9 million (H1 2024: £148.2 million).
L’olivier assurance (France) continued to grow strongly, with the customer
base increasing by 13% to 0.49 million (30 June 2024: 0.43 million), and
turnover increasing by 11% to £130.1 million (H1 2024: £117.5 million). Both
the reported loss and expense ratio improved in H1 2025 with growth achieved
in relatively favourable current market conditions. The business reported
lower profits in H1 2025 (£5.0 million v £10.5 million), with the H1 2024
profit reflecting more favourable large claims development and lower quota
share costs due to phasing differences.
In Admiral Seguros (Spain) customer numbers were slightly higher at
0.45 million (30 June 2024: 0.44 million), and the reported loss for the
period was higher (£1.7 million v £0.6 million). Admiral Seguros continues
to focus on sustainable growth, balancing its profitable direct business
with its growing intermediary channel which is reporting encouraging and
significantly improving loss ratios in line with the main focus of the
business.
Admiral Money
£m 30 June 2025 30 June 2024 31 December 2024
Total interest income 65.4 52.4 112.5
Interest expense¹ (28.9) (18.3) (43.2)
Net interest income 36.5 34.1 69.3
Origination fee income (3) 9.0 — —
Other income 0.4 0.1 0.5
Total income 45.9 34.2 69.8
Credit loss charge (11.6) (14.0) (26.9)
Expenses (18.0) (13.4) (29.9)
Admiral Money profit before tax² 16.3 6.8 13.0
1 Includes £4.1 million intra-group interest expense (H1 2024: £1.9 million,
FY 2024: £6.1 million).
2 Alternative Performance Measures – refer to the end of this report for
definition and explanation.
3 Origination fee income in the period ended 30 June 2025 includes £5.9m of
income relating to a back-book sale of £146.4m of loans through a forward
flow agreement.
Admiral Money distributes and underwrites unsecured personal loans (UPL) 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 business aims to provide customers with affordable
guaranteed rates, ensuring transparency and certainty.
Admiral Money recorded a pre-tax profit of £16.3 million in H1 2025, (H1
2024: £6.8 million), continuing the positive trajectory of the business. A
significant driver of the increase in profit was the sale of a portfolio of
UPL with a total carrying value of £146.4 million. This sale generated
origination fee income of £5.9 million, alongside a credit provision release
of £4.9 million. Costs relating to the sale of the loans of £1.0 million, of
which the largest element was the immediate recognition of unamortised
deferred acquisition costs, resulted in a net contribution to profit before
tax of £9.8 million.
In addition to the back book sale, newly originated UPL totalling £90.4
million were sold to the same external party through a forward flow
arrangement, generating origination fee income of £3.1 million. Admiral Money
continues to service all loans sold in both the back book and forward flow
sales and earned servicing income of £0.3 million during the period. Gross
loan balances administered for third parties totalled £213.1 million as at H1
2025 (H1 2024: £Nil).
Despite the loan sales, the business has also grown net interest income by 7%
to £36.5 million (H1 2024: £34.1 million). Gross on-balance sheet loan
balances totalled £1.28 billion at the end of the period (30 June 2024:
£1.03 billion), with a £0.09 billion (30 June 2024: £0.09 billion)
expected credit loss provision. This leads to a net on-balance sheet loan
balance of £1.19 billion (30 June 2024: £0.94 billion).
Credit loss models reflect the latest economic assumptions and post model
adjustments (PMA) remain in place to maintain an appropriately prudent level
of provisioning reflecting the credit risk in the loan book.
The provision coverage ratio decreased to 6.8% (30 June 2024: 8.5%),
although the absolute provision remained stable at £87.4 million. Higher
volumes of new business volumes contributed to an increase in the provision
charge, excluding the impact of loan sales, while continued focus on writing
high-quality loans has contributed to positive loss performance.
Post-model adjustments (PMAs) reduced to £3.2 million (30 June 2024: £8.5
million) reflecting continued refinements to the IFRS 9 provisioning model,
particularly in relation to Loss Given Default, as well as reductions in
cost-of-living related PMAs.
The Group does not consider it has any exposure to the recent Supreme court
ruling relating to commissions paid to motor dealers that was initially
launched by the FCA.
Other Group Items
Other Group items financial review
£m 30 June 2025 30 June 2024 (2) 31 December 2024 (2)
Share scheme charges (36.1) (26.7) (60.7)
Other central costs (21.0) (20.2) (51.1)
Admiral Pioneer result (9.7) (5.0) (11.3)
Business development costs (9.2) (13.9) (20.1)
Finance charges (1) (12.1) (14.0) (26.3)
Sale of shares in Insurify — 12.5 12.5
Other interest and investment income 9.0 6.1 13.5
Total (79.1) (61.2) (143.5)
1 Finance charges within other Group items include £0.9 million (H1 2024:
£0.9 million, FY 2024: £1.8 million) that relate to intra-group
arrangements, with the corresponding income presented within
the UK Insurance result.
2 Other group costs for H1 2024 and FY 2024 have been re-presented to exclude
costs in relation to the US Motor business, which are presented within
discontinued operations following the announcement of its planned sale.
Share scheme charges relate to the Group’s two employee share schemes. The
increase in charge in the period is driven primarily by an increase in the
share price, and bonuses that are linked to dividends paid in the period.
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, with costs being broadly flat in H1 2025 relative
to H1 2024.
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 commercial insurance.
Pioneer’s businesses reported a higher loss of £9.7 million in 2025 (H1
2024 loss: £5.0 million). The H1 2024 result was impacted by the favourable
development of large claims recognised in the prior year in Veygo, whilst in
H1 2025 the increased loss reflects continued investment in the development
of new products, and the initial losses recognised on launching new products
such as the partnership with Insurtech fleet insurer Flock, where premiums
written are not yet earning through.
Business development costs decreased to £9.2 million (H1 2024: £13.9
million), primarily as a result of non-recurring transaction and other costs
related to the More Than acquisition offset by additional spend in the
development of alternative lending products.
Finance charges of £12.1 million (H1 2024: £14.0 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 H1 2024 including £55 million subordinated
loan notes issued in July 2014 prior to redemption.
Other interest and investment income increased to £9.0m (H1 2024: £6.1
million) primarily attributable to higher investments held during H1 2025.
As part of the disposal of compare.com in 2023, the Group received shares as a
minority interest shareholder of the acquirer, Insurify.com. In H1 2024, the
Group sold those shares, realising a one-off gain of £12.5 million.
Group capital structure and financial position
Group capital position
£bn 30 June 2025 30 June 2024 31 December 2024
Eligible Own Funds (post-dividend) (1) 1.82 1.56 1.74
Solvency II capital requirement (2) 0.94 0.79 0.86
Surplus over capital requirement 0.88 0.77 0.88
Solvency ratio (post-dividend) (3) 194% 198% 203%
1 Own Funds include approximately £250 million of Tier 2 capital following
the Group’s issue of subordinated loan notes in 2024. Own funds reported
above are inclusive of additional own funds generated post-period-end up to
the date of this report.
2 Solvency capital requirement includes updated, unapproved capital add-on.
3 Solvency ratio calculated on a volatility adjusted basis.
The Group’s solvency ratio remains strong at 194%, though is lower than the
2024 closing position of 203%.
In H1 2025 there was continued growth in own funds but at a lower rate due to
both higher dividends paid and declared as a result of the strong reported
result in H2 2024 and H1 2025, and lower written profits from the core UK
motor business which continues to be the primary driver of economic capital.
The SCR also increased over the period, due primarily to the increase in
future forecast premiums across the Group and the associated impact on
underwriting and operational risk elements of the capital requirement.
Admiral continues to develop its partial internal model to form the basis of
calculating capital requirements post-approval. Following feedback (received
late 2024) from the regulatory pre-application process, work continues towards
full application in due course, including frequent engagement with the Group's
regulators.
Solvency ratio sensitivities(1)
30 June 2025 30 June 2024 31 December 2024
UK Motor – incurred loss ratio +5% (19%) (20%) (26%)
UK Motor – 1-in-200 catastrophe event (3%) (3%) (3%)
UK Household – 1-in-200 catastrophe event (3%) (3%) (3%)
Interest rate – yield curve up 100 bps (1%) (2%) (1%)
Interest rate – yield curve down 100 bps 1% 1% —%
Credit spreads widen 100 bps (2%) (3%) (2%)
Currency – 10% (H1 2024: 25%) movement in euro and US dollar (3%) (4%) (2%)
ASHE – long-term inflation assumption up 100 bps (H1 2024: 50 bps) (4%) (1%) (6%)
Loans – 100% weighting to ‘severe’ scenario (1) (1%) (1%) (1%)
1 Refer to note 7 to the financial statements for further information on the
‘severe’ scenario.
The lower sensitivity of the incurred loss ratio stress is the result of the
lower written premium and relative profitability of the most recent
underwriting year following increased competition in the period driving modest
rate reductions.
The sensitivity to ASHE has reduced since year end following continuing
impacts of the favourable change in Ogden rate on the modelling of larger
claims settlements.
Investments and cash
Investment strategy
Admiral Group’s investment strategy focuses on capital preservation and low
volatility of returns. The business 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.
Investment return
£m 30 June 2025 30 June 2024 31 December 2024
Underlying investment income yield 3.9% 3.9% 4.0%
Investment return 98.6 83.5 177.4
Unrealised losses on derivatives (0.4) (0.2) (0.2)
Movement in provision for expected credit losses 8.1 (2.8) (6.3)
Total investment return 106.3 80.5 170.9
Investment income for the first half of 2025 was £106.3 million (H1 2024:
£80.5 million). Provisions for expected credit losses reduced, driven by a
change in provisioning methodology for private debt assets reclassified as
FVTPL, leading to a £8.1 million credit (H1 2024: £2.8 million charge).
The investment return on the Group’s investment portfolio (excluding
unrealised gains and losses on derivatives and the movement in provision for
expected credit losses) was £98.6 million in H1 2025 (compared to £83.5
million in H1 2024). The rate of return was flat at 3.9% (H1 2024: 3.9%).
The reduction in interest rates in H1 2025 resulted in an increase in the
market value of the portfolio of £31.1 million (H1 2024: £8.4 million
reduction). That movement is reflected in the Statement of Other Comprehensive
Income.
The Group continues to generate significant amounts of cash and its
capital-efficient business model enables the distribution of the majority of
post-tax profits as dividends. Total cash and investments at 30 June 2025 was
£5.43 billion (30 June 2024: £4.79 billion; 31 December 2024: £5.16
billion), the higher balance at the end of the current period reflecting
ongoing growth in the business.
Cash and investments analysis
£m 30 June 2025 30 June 2024 31 December 2024
Fixed income and debt securities 3,412.3 3,200.5 3,335.4
Money market funds and other fair value through P&L investments 1,613.9 1,108.0 1,421.0
Cash deposits 82.4 117.3 91.7
Cash 319.2 363.6 313.6
Total (1 2) 5,427.8 4,789.4 5,161.7
1 Total Cash and Investments includes £348.9 million (H1 2024: £301.0
million; FY 2024: £354.5 million) of Level 3 investments . Refer to note 6c
in the financial statements for further information.
2 Amounts relating to held for sale assets included as at 30 June 2024 and
31 December 2024 include fixed income and debt securities of H1 2024: £63.4
million; FY 2024: £65.7 million, money market funds and other fair value
instruments of H1 2024: £34.7 million; FY 2024: £12.1 million and cash of H1
2024: £1.7 million; FY 2024: £26.3 million.
Taxation
The tax charge for the period for continuing operations is £115.2 million (H1
2024: £72.2 million), which equates to 22.1% (H1 2024: 23.5%) of profit
before tax. The effective tax rate in H1 2024 was higher than in H1 2025 due
to higher prior year adjustments arising in the period. See note 10 to the
financial statements for further details.
Co-insurance and Reinsurance
Admiral makes significant use of proportional risk sharing agreements
(co-insurance and quota share reinsurance) which include profit commission
terms that allow Admiral to retain a significant portion of the profit
generated.
Although the primary focus and disclosure is in relation to the UK Car
Insurance book, similar longer-term arrangements are in place in the Group’s
European Insurance operations and the UK Household and Van businesses.
Munich Re and its subsidiary entity Great Lakes currently underwrite 40% of
Admiral’s UK Car insurance business. The details of these arrangements with
Munich Re are as set out in the 2024 Annual Report, with agreements in place
until at least the end of 2026.
Admiral has other UK Car quota share agreements covering 38% of business
written, with 25% confirmed to at least 2027 and the remaining 13% confirmed
to at least 2025.
For UK Household insurance, Admiral retains 30% and has quota share contracts
covering 70% of the business that run to at least 2027.
The Group tends to commute its UK Motor insurance quota share agreements 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 and having assessed the solvency implications of the commutation for
the Group and its underwriting subsidiary. All arrangements covering the 2020
and prior underwriting years, and a majority of contracts from underwriting
year 2021 were commuted as at 31 December 2024. There were no UK Insurance
commutations during H1 2025.
Principal Risks and Uncertainties
Admiral continually reviews and assesses its principal risks and uncertainties
(PR&Us), including those which could have a major impact on its customers,
financial position, or reputation. This ongoing assessment has concluded that
Admiral’s PR&Us remain consistent with those reported in the Group’s 2024
Annual Report (pages 88-93). However, given the evolution of the following
topics, additional commentary has been provided on their specific impact on
Admiral’s PR&Us: economic uncertainty, including tariffs; evolution of the
UK motor market; the cyber environment and operational resilience; regulatory
risk; and the divestment of Elephant.
Economic uncertainty, tariffs, and trade negotiations
Frequent shifts in international trade policy, characterised by the
imposition, suspension, and reversal of tariffs, as well as ongoing
developments surrounding the negotiation and implementation of key trade
agreements, are contributing to a volatile and uncertain economic environment.
Key areas of focus for Admiral are duties imposed by the US on foreign-made
cars and parts, tariffs on steel and aluminium, as well as indirect impacts on
the macro-economy, including upward pressure on care, labour, and repair
costs. Direct impacts on the supply chain are expected to be limited, however
indirect impacts are likely to lower economic growth and increase inflation
– with potential implications for economy-wide and sector-specific
performance, investment performance, and consumer confidence.
UK motor market evolution
The UK motor insurance sector is undergoing notable consolidation, with
competitors aiming to gain scale, reduce costs, and expand digital
capabilities.
Meanwhile, the UK government’s Motor Insurance Taskforce, launched in
October 2024, aims to reduce the costs of motor insurance.
The implementation of the UK’s Zero Emissions Vehicle (ZEV) mandate in
January has compelled manufacturers to ramp up EV sales, even as consumer
demand shows signs of plateauing. At the same time, Chinese OEMs continue to
expand their footprint in the UK and wider European markets, offering
competitively priced models that are reshaping market dynamics and presenting
new challenges for insurers in terms of repairability, parts access, the pace
of technological change – especially in EV batteries – and brand-specific
underwriting.
Market concentration and shifting make-up, and the impact on pricing, will
need to be monitored.
Cyber environment and operational resilience
The cyber threat landscape continues to grow in complexity and severity, with
threat actors employing increasingly sophisticated techniques. In line with
recent high-profile attacks on both the UK retail sector and US insurance
sector, the UK financial services sector remains a high-value target, and the
risk of cyber incidents, ranging from data breaches to ransomware attacks,
remains elevated. Continuous capability improvements in cyber defence and
security operations are a priority, even though the FCA/PRA’s CBEST
intelligence-led penetration testing demonstrated that the Group has
significant resilience against the simulated threats.
Given the potential for cyber incidents and other external shocks to disrupt
important or critical services, operational resilience remains a key strategic
and regulatory priority. Ensuring the ability to prevent, respond to, and
recover from disruptions is essential to maintaining customer trust and
business continuity. Admiral has taken steps to strengthen operational
resilience, in line with the expectations and requirements of UK and European
regulators.
Regulatory risk
Regulatory direction across the UK and Europe remains uncertain, with
diverging approaches adding complexity for insurers operating across multiple
jurisdictions. In the UK, the FCA is balancing consumer protection with
enabling sustainable growth in financial markets and with enabling informed
risk to be taken, not eliminating it entirely. The EU is pressing ahead with
its broader “Stop the Clock” initiative, pausing prospective regulation to
allow for deeper industry engagement and the assessment of cumulative impacts,
while the US is repealing many areas of legislation, including unwinding
controls on AI that poses risks to consumers, workers, national security or
minority groups – a clear divergence from the EU and UK.
Within the UK General Insurance sector, regulatory focus remains firmly on
fair value and good customer outcomes. Many specific areas are being reviewed
across Admiral’s business lines, including those noted elsewhere in this
report. Admiral continues to focus on providing fairly priced products which
meet the needs of our customers.
Disclaimer on forward-looking statements
Certain statements made in this announcement are forward-looking statements.
Such statements are based on current expectations and assumptions and are
subject to a number of known and unknown risks and uncertainties that may
cause actual events or results to differ materially from any expected future
events or results expressed or implied in these forward-looking statements.
Persons receiving this announcement should not place undue reliance on
forward-looking statements. Unless otherwise required by applicable law,
regulation or accounting standard, the Group does not undertake to update or
revise any forward-looking statements, whether as a result of new information,
future developments or otherwise.
Condensed Consolidated Income Statement (Unaudited)
Six months ended Year ended
Note 30 June 2025 (unaudited) £m Re-presented 30 June 2024 (unaudited) £m (1) Re-presented 31 December 2024 £m (2)
Insurance revenue 5 2,468.7 2,092.1 4,553.4
Insurance service expenses 5 (1,903.3) (1,586.0) (3,349.7)
Insurance service result before reinsurance 565.4 506.1 1,203.7
Net expense from reinsurance contracts held 5 (139.9) (269.0) (501.6)
Insurance service result 425.5 237.1 702.1
Investment return - Effective interest rate 61.3 50.8 103.4
Investment return - Other 36.9 32.5 72.8
Investment return 6 98.2 83.3 176.2
Finance expenses from insurance contracts issued 5 (68.2) (61.2) (128.4)
Finance income from reinsurance contracts held 5 13.6 19.3 35.9
Net insurance finance expenses (54.6) (41.9) (92.5)
Net insurance and investment result 469.1 278.5 785.8
Interest income from financial services 67.3 52.7 113.5
Interest expense related to financial services (25.8) (16.4) (37.2)
Net interest income from financial services 41.5 36.3 76.3
Other revenue and profit commission 8 120.5 89.0 189.6
Other operating expenses 9 (155.7) (127.8) (293.5)
Other operating expenses recoverable from co-insurers 61.9 62.3 129.3
Movement in expected credit loss provision and write-offs (4.3) (16.9) (34.6)
Other income and expenses 22.4 6.6 (9.2)
Operating profit 533.0 321.4 852.9
Finance costs 6 (12.2) (14.0) (27.0)
Finance costs recoverable from co-insurers 6 0.2 0.2 0.6
Net finance costs (12.0) (13.8) (26.4)
Profit before tax from continuing operations 521.0 307.6 826.5
Taxation expense 10 (115.2) (72.2) (175.3)
Profit after tax from continuing operations 405.8 235.4 651.2
Profit before tax from discontinued operations 13 (4.9) 2.2 12.7
Taxation expense 13 (0.1) (0.4) (1.0)
Profit after tax from discontinued operations 13 (5.0) 1.8 11.7
Profit after tax from continuing and discontinued operations 400.8 237.2 662.9
Profit after tax attributable to:
Equity holders of the parent 401.0 237.4 663.3
Non-controlling interests (NCI) (0.2) (0.2) (0.4)
400.8 237.2 662.9
Condensed Consolidated Income Statement (Unaudited) (continued)
Note 30 June 2025 (unaudited) £m Re-presented 30 June 2024 (unaudited) £m (1) Re-presented 31 December 2024 £m (2)
Earnings per share - from continuing operations
Basic 12 132.5p 76.9p 212.8p
Diluted 12 132.5p 76.9p 212.8p
Earnings per share - from continuing and discontinued operations
Basic 12 130.9p 77.5p 216.6p
Diluted 12 130.9p 77.5p 216.6p
Dividends declared and paid (total) 12 366.5 156.2 369.8
Dividends declared and paid (per share) 12 121.0p 52.0p 123.0p
1 The Consolidated Income Statement for the period ended 30 June 2024 has
been re-presented to show the breakdown of Investment return between effective
interest rate and investment return relating to other transactions and
re-presented due to the US Motor business being classified as discontinued.
The respective income statement notes to the financial statements have been
re-presented.
2 The Consolidated Income Statement and all related notes to the financial
statements for the year ended 31 December 2024 have been re-presented due to
the US Motor business being classified as discontinued. The revised
presentation is unaudited.
Consolidated Statement of Comprehensive Income
Six months ended Year ended
30 June 2025 (unaudited) £m 30 June 2024 (unaudited) £m (1) 31 December 2024 £m
Profit for the period - from continuing and discontinued operations 400.8 237.2 662.9
Other comprehensive income
Items that are or may be reclassified to profit or loss
Movements in fair value reserve 31.1 (8.4) 11.3
Deferred tax in relation to movement in fair value reserve (2.1) 2.1 2.4
Movements in insurance finance reserve - insurance contracts (46.1) 31.2 7.9
Deferred tax in relation to movement in insurance finance reserve - insurance contracts 7.7 (3.5) (5.1)
Movements in insurance finance reserve - reinsurance contracts 8.6 (13.3) 3.3
Deferred tax in relation to movement in insurance finance reserve - reinsurance contracts (1.7) 1.3 1.3
Exchange differences on translation of foreign operations 0.7 (1.9) (4.2)
Movement in hedging reserve (10.8) 0.3 (4.1)
Deferred tax in relation to movement in hedging reserve 2.7 (0.1) 1.0
Other comprehensive income for the period, net of income tax (9.9) 7.7 13.8
Total comprehensive income for the period 390.9 244.9 676.7
Total comprehensive income for the period attributable to:
Equity holders of the parent 391.1 245.1 677.1
Non-controlling interests (0.2) (0.2) (0.4)
Total comprehensive income for the period 390.9 244.9 676.7
1 Re-presented: see note 1 to the financial statements.
Consolidated Statement of Financial Position
As at As at
Note 30 June 2025 (unaudited) £m 30 June 2024 (unaudited) £m 31 December 2024 £m
ASSETS
Property and equipment 82.3 82.0 87.8
Intangible assets 11 321.5 335.7 321.0
Deferred tax asset 58.7 20.8 19.8
Corporation tax asset 1.0 16.2 18.1
Reinsurance contract assets 5 1,038.5 1,055.6 988.6
Loans and advances to customers 7 1,291.6 952.1 1,106.9
Other receivables 6 292.8 481.8 225.2
Financial investments 6 5,120.6 4,435.9 4,863.2
Cash and cash equivalents 6 319.2 363.6 313.6
Assets associated with disposal group held for sale 13 106.6 — —
Total assets 8,632.8 7,743.7 7,944.2
EQUITY
Share capital 12 0.3 0.3 0.3
Share premium account 13.1 13.1 13.1
Other reserves (36.6) (32.8) (26.7)
Retained earnings 1,458.6 1,129.7 1,383.4
Total equity attributable to equity holders of the parent 1,435.4 1,110.3 1,370.1
Non-controlling interests 0.4 0.8 0.6
Total equity 1,435.8 1,111.1 1,370.7
LIABILITIES
Insurance contracts liabilities 5 5,261.2 4,946.6 4,961.4
Subordinated and other financial liabilities 6 1,509.7 1,204.1 1,322.2
Trade and other payables 6 170.6 384.9 175.3
Lease liabilities 76.0 73.1 79.6
Corporation tax liabilities 80.2 23.9 35.0
Liabilities associated with disposal group held for sale 99.3 — —
Total liabilities 7,197.0 6,632.6 6,573.5
Total equity and total liabilities 8,632.8 7,743.7 7,944.2
Consolidated Cashflow Statement
Six months ended Year ended
Note 30 June 2025 (unaudited) £m Re-presented 30 June 2024 (unaudited) £m (1) Re-presented 31 December 2024 £m (1)
Profit after tax - from continuing and discontinued operations 400.8 237.2 662.9
Adjustments for non-cash items:
- Depreciation of property, plant and equipment and right-of-use assets 8.1 8.4 18.8
- Impairment/ disposal of property, plant and equipment and right-of-use assets 0.2 8.5 9.1
- Amortisation and impairment of intangible assets 11 31.5 27.4 66.7
- Movement in expected credit loss provision (4.0) 8.6 10.3
- Share scheme charges 33.8 31.9 67.8
- Interest expense on funding for loans and advances to customers 21.7 14.2 32.3
- Investment return 6 (98.0) (84.1) (177.4)
- Profit on disposal of Insurify share option 9 – (12.5) (12.5)
- Finance costs, including unwinding of discounts on lease liabilities 6 12.1 14.1 27.7
- Taxation expense 10 115.3 72.6 176.3
Change in gross insurance contract liabilities 5 367.9 410.6 421.6
Change in reinsurance assets 5 (73.3) 113.8 184.9
Change in insurance and other receivables 6 (69.4) (73.0) 182.4
Change in gross loans and advances to customers 7 (336.0) (78.5) (231.4)
Sale proceeds from the loan book 7 146.4 – –
Funding received relating to forward flow loans 7 93.3 – –
Forward flow loans transferred 7 (90.4) – –
Change in trade and other payables, including tax and social security 11 (0.8) 80.6 (136.1)
Cash flows from operating activities, before movements in investments 559.2 779.8 1,303.4
Purchases of financial instruments (4,136.2) (3,742.1) (8,083.3)
Proceeds on disposal/ maturity of financial instruments 3,836.6 3,209.1 7,182.4
Interest and investment income received 58.9 48.2 90.6
Cash flows from operating activities, net of movements in investments 318.5 295.0 493.1
Taxation payments (78.5) (35.7) (124.1)
Net cash flow from operating activities 240.0 259.3 369.0
Cash flows from investing activities:
Purchases of property, equipment and software (32.6) (32.9) (61.7)
Intangible assets acquired through business combinations – (85.2) (82.5)
Net cash used in investing activities (32.6) (118.1) (144.2)
Consolidated Cashflow Statement (continued)
Note 30 June 2025 (unaudited) £m Re-presented 30 June 2024 (unaudited) £m (1) Re-presented 31 December 2024 £m (1)
Cash flows from financing activities:
Proceeds on issue of loan backed securities 6 350.0 131.4 372.2
Repayment of loan backed securities 6 (233.0) (71.6) (194.1)
Proceeds from other financial liabilities 6 142.7 79.2 177.7
Repayment of other financial liabilities 6 (70.0) (65.0) (170.1)
Finance costs paid, including interest expense paid on funding for loans (37.0) (36.3) (76.7)
Proceeds/(repayments) on hedging derivatives 3.3 9.0 15.6
Repayment of lease liabilities (5.4) (11.1) (12.7)
Equity dividends paid 12 (366.5) (156.2) (369.8)
Net cash used in financing activities (215.9) (120.6) (257.9)
Net increase in cash and cash equivalents (8.5) 20.6 (33.1)
Cash and cash equivalents at 1 January 313.6 353.1 353.1
Effects of changes in foreign exchange rates 14.1 (10.1) (6.4)
Cash and cash equivalents at period end 6 319.2 363.6 313.6
1 Re-presented: see note 1 to the financial statements.
Consolidated Statement of Changes in Equity
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 2025 0.3 13.1 (99.8) 4.4 (4.0) 72.7 1,383.4 1,370.1 0.6 1,370.7
Profit/(loss) for the period - from continuing and discontinued operations — — — — — — 401.0 401.0 (0.2) 400.8
Other comprehensive income — — 29.0 (8.1) 0.7 (31.5) — (9.9) — (9.9)
Total comprehensive income for the period — — 29.0 (8.1) 0.7 (31.5) 401.0 391.1 (0.2) 390.9
Transactions with equity holders
Dividends 12 — — — — — — (366.5) (366.5) — (366.5)
Share scheme credit — — — — — — 33.8 33.8 — 33.8
Deferred tax on share scheme credit — — — — — — 6.9 6.9 — 6.9
Total transactions with equity holders — — — — — — (325.8) (325.8) — (325.8)
As at 30 June 2025 (unaudited) 0.3 13.1 (70.8) (3.7) (3.3) 41.2 1,458.6 1,435.4 0.4 1,435.8
Consolidated Statement of Changes in Equity (continued)
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 - from continuing and discontinued operations — — — — — — 237.4 237.4 (0.2) 237.2
Other comprehensive income — — (6.3) 0.2 (1.9) 15.7 — 7.7 — 7.7
Total comprehensive income for the period — — (6.3) 0.2 (1.9) 15.7 237.4 245.1 (0.2) 244.9
Transactions with equity holders
Dividends 12 — — — — — — (156.2) (156.2) — (156.2)
Share scheme credit — — — — — — 31.9 31.9 — 31.9
Deferred tax charge on share scheme credit — — — — — — (2.3) (2.3) — (2.3)
Transfer to loss on disposal of assets held for sale — — — — — — — — — —
Total transactions with equity holders — — — — — — (126.6) (126.6) — (126.6)
As at 30 June 2024 0.3 13.1 (119.8) 7.7 (1.7) 81.0 1,129.7 1,110.3 0.8 1,111.1
Consolidated Statement of Changes in Equity (continued)
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 - from continuing and discontinued operations — — — — — — 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
Notes to the consolidated financial statements
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 condensed interim financial statements comprise the results and balances
of the Company and its subsidiaries (the Group) for the six-month period ended
30 June 2025 and the comparative periods for the six-months ended 30 June
2024 and the year ended 31 December 2024. This condensed set of financial
statements has been prepared in accordance with IAS 34 Interim Financial
Reporting as adopted by the UK, and should be read in conjunction with the
Group’s last annual consolidated financial statements as at and for the year
ended 31 December 2024 (“last annual financial statements”), prepared in
accordance with United Kingdom adopted international accounting standards in
conformity with the requirements of the Companies Act 2006. They do not
include all of the information required for a complete set of IFRS financial
statements. However, selected explanatory notes are included to explain events
and transactions that are significant to an understanding of the changes in
the Group’s financial position and performance since the last annual
financial statements.
As required by the FCA’s Disclosure and Transparency Rules, the condensed
set of financial statements has been prepared applying the accounting policies
and presentation that were applied in the preparation of the Company’s
published consolidated financial statements for the year ended 31 December
2024, except where new accounting standards apply as noted below.
The financial statements of the Company’s subsidiaries are consolidated in
the Group financial statements. In accordance with IAS 24, transactions or
balances between Group companies that have been eliminated on consolidation
are not reported as related party transactions.
The comparative figures for the financial year ended 31 December 2024 are the
Company's statutory accounts for that financial year. Those accounts have been
reported on by the Company's auditors and delivered to the registrar of
companies. The report of the auditors was:
1. unqualified;
2. did not include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report; and
3. did not contain a statement under section 498(2) or (3) of the Companies
Act 2006.
The accounts have been prepared on a going concern basis. In considering the
appropriateness of this assumption, the Board have reviewed the Group’s
projections for the next 12 months and beyond. Further information is given in
note 1 below.
1. Basis of preparation
The condensed set of interim financial statements have been prepared applying
the accounting policies and presentation that were applied in the preparation
of the Company’s published consolidated financial statements for the year
ended 31 December 2024.
A number of other IFRS and interpretations have been endorsed by the UK in the
period to 30 June 2025 and although they have been adopted by the Group, none
of them has had a material impact on the Group’s financial statements.
The Group’s assessment of the impact of other standards that have yet to be
adopted remains consistent with that reported on page 199 of the Group’s
2024 Annual Report.
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 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 economic uncertainty, tariffs, trade
negotiations; and cyber and 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.
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. The Group and
Company financial statements are presented in pounds sterling, rounded to the
nearest £0.1 million.
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 has the ability to 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 that
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.
Representation of Consolidated Income statement for year ended 31 December
2024
The Consolidated Income Statement and all related notes to the financial
statements for the year ended 31 December 2024 have been represented due to
the US Motor business being classified as discontinued. The revised
presentation is unaudited.
Representation of Consolidated Cashflow Statement
The Consolidated Cashflow Statement for the period ending 30 June 2024 has
been re-presented to reflect the gross cashflows which were previously
presented on a net basis. See 2024 Group Annual report on page 199 for further
information. This has resulted in £65.0 million additional cash outflows
within ‘repayment of other financial liabilities’ and the same inflow
within ‘proceeds from other financial liabilities’ and £71.6 million
additional cash outflows within ‘repayment of loan backed securities’ and
the same inflow within ‘proceeds on issue of loan backed securities’.
Representation of Consolidated Statement of Comprehensive Income
The Consolidated Statement of Comprehensive Income for the period ending
30 June 2024 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. See 2024 Group Annual report on
page 199 for further information.
2. Critical accounting judgements and estimates
The Group’s 2024 Annual Report provides full details of significant
judgements and estimates used in the application of the Group’s accounting
policies. There have been no additional critical judgements or estimates
applied in the period.
Notes 3 and 5 provide further information as to the changes in the estimates
with respect to the calculation of insurance reserves.
Note 7 provides further information as to changes in the estimates with
respect to the calculation of the expected credit loss provision for the
Admiral Money business.
3. Financial risk
3a. Insurance risk 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.
Risk adjustment
At a group level, the risk adjustment confidence level is equivalent to the
94(th) percentile (31 December 2024: 95(th) percentile). The sensitivities
below reflect the impact on profit before tax and equity in 2025 for changes
in the selection of the UK Motor risk adjustment confidence level (95(th)
percentile) at 30 June 2025, with all other assumptions remaining unchanged.
30 June 2025 (unaudited)
Impact on profit before tax gross of reinsurance £m Impact on profit before tax net of reinsurance £m Impact on equity gross of reinsurance £m Impact on equity net of reinsurance £m
Risk adjustment decrease to 90th percentile 112.3 105.6 91.8 86.2
Risk adjustment decrease to 85th percentile 186.9 176.1 153.0 143.9
Undiscounted loss ratios, including risk adjustment
The sensitivities reflect the impact on profit before tax and equity in 2025
of a change in the booked(1) loss ratios for individual underwriting years
(UWY) as at 30 June 2025, with all other assumptions remaining unchanged.
UWY 2021 impact on: UWY 2022 impact on: UWY 2023 impact on: UWY 2024 impact on:
PBT £m Equity £m PBT £m Equity £m PBT £m Equity £m PBT £m Equity £m
Increase of 1%: gross of reinsurance (16.2) (12.5) (17.6) (14.3) (24.7) (20.4) (30.5) (25.2)
Increase of 5%: gross of reinsurance (92.5) (71.2) (88.1) (71.3) (122.3) (101.1) (150.3) (124.2)
Increase of 10%: gross of reinsurance (175.0) (134.8) (173.0) (140.1) (233.7) (194.1) (280.9) (233.6)
Decrease of 1%: gross of reinsurance 15.8 12.2 17.6 14.3 24.7 20.4 30.5 25.2
Decrease of 5%: gross of reinsurance 84.5 65.2 88.1 71.3 118.9 98.6 152.4 125.8
Decrease of 10%: gross of reinsurance 176.0 133.7 168.0 136.4 237.6 197.0 304.9 251.6
Increase of 1%: net of reinsurance (14.4) (11.0) (10.5) (8.2) (24.7) (20.4) (30.5) (25.2)
Increase of 5%: net of reinsurance (83.3) (63.7) (52.3) (41.0) (122.3) (101.1) (150.3) (124.2)
Increase of 10%: net of reinsurance (156.5) (119.9) (101.4) (79.5) (200.6) (165.5) (280.9) (233.6)
Decrease of 1%: net of reinsurance 13.9 10.7 10.5 8.2 24.7 20.4 30.5 25.2
Decrease of 5%: net of reinsurance 82.1 63.2 57.9 45.7 118.9 98.6 152.4 125.8
Decrease of 10%: net of reinsurance 173.6 133.7 116.5 92.8 237.6 197.0 304.9 251.6
1 ‘Booked’ loss ratios are undiscounted underwriting year loss ratios,
including risk adjustment.
3b. Financial risk: Interest rate sensitivity analysis
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 30 June
2025, is as follows:
30 June 2025 (unaudited)
Impact on profit before tax gross of reinsurance £m Impact on profit before tax net of reinsurance £m Impact on equity gross of reinsurance £m Impact on equity net of reinsurance £m
Increase of 100 basis points — — 57.7 56.0
Decrease of 100 basis points — — (65.2) (63.4)
Increase of 200 basis points — — 109.9 106.4
Decrease of 200 basis points — — (140.9) (137.1)
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 30 June 2025, is as follows:
30 June 2025 (unaudited)
Impact on profit before tax £m Impact on equity £m
Increase of 100 basis points — (93.2)
Decrease of 100 basis points — 101.3
Increase of 200 basis points — (179.5)
Decrease of 200 basis points — 212.5
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 H1 2025.
4. Operating segments
The Group has five reportable segments; UK Insurance, European Insurance,
Admiral Money, Other and discontinued operations. These reportable segments
are consistent with those set out on page 214 of the Group’s 2024 Annual
Report with the exception of European Insurance which excludes the US Motor
business, which is now classified as a discontinued operation.
An analysis of the Group’s revenue and results for the period ended 30 June
2025, by reportable segment, is shown below. The accounting policies of the
reportable segments are consistent with those presented in the notes to the
2024 Group financial statements.
Six months ended 30 June 2025 (unaudited)
UK Insurance £m European Insurance £m Admiral Money £m Other £m Discontinued operations £m Eliminations (3) £m Total (continuing) £m Total £m
Turnover (1) 2,654.3 331.6 66.8 51.1 87.6 — 3,103.8 3,191.4
Insurance revenue 2,109.4 312.2 — 47.1 90.6 — 2,468.7 2,559.3
Insurance revenue net of XoL 2,050.4 299.0 — 41.6 90.3 — 2,391.0 2,481.3
Insurance services expenses (381.0) (83.9) — (21.6) (31.1) — (486.5) (517.6)
Insurance claims net of XoL (1,134.3) (210.0) — (27.4) (49.4) — (1,371.7) (1,421.1)
Quota share reinsurance result (76.9) (6.8) — — 1.6 — (83.7) (82.1)
Net movement in onerous loss component — (0.2) — — — — (0.2) (0.2)
Underwriting result 458.2 (1.9) — (7.4) 11.4 — 448.9 460.3
Net investment income (2) 44.7 1.1 0.1 2.0 2.2 (5.0) 42.9 45.1
Net interest income from financial services — — 36.5 0.8 — 4.1 41.4 41.4
Net other revenue and operating expenses 81.5 0.2 (20.3) (11.2) — — 50.2 50.2
Segment profit/(loss) before tax (4) 584.4 (0.6) 16.3 (15.8) 13.6 (0.9) 583.4 597.0
Other central revenue and expenses, including share scheme charges (60.2) (78.7)
Investment and interest income 9.0 9.0
Finance costs (11.2) (11.2)
Consolidated profit before tax 521.0 516.1
Taxation expense (115.2) (115.3)
Consolidated profit after tax 405.8 400.8
Revenue and results for the corresponding reportable segments for the period
ended 30 June 2024 are shown below.
Six months ended 30 June 2024 (unaudited)
UK Insurance £m European Insurance £m Admiral Money £m Other £m Discontinued operations £m Eliminations (3) £m Total (continuing) £m Total £m
Turnover (1) 2,675.2 340.8 50.4 32.0 109.4 — 3,098.4 3,207.8
Insurance revenue 1,761.3 300.4 — 30.4 121.7 — 2,092.1 2,213.8
Insurance revenue net of XoL 1,701.9 282.3 — 27.5 121.0 — 2,011.7 2,132.7
Insurance services expenses (360.6) (83.2) — (14.8) (34.3) — (458.6) (492.9)
Insurance claims net of XoL (917.1) (214.4) — (15.9) (74.8) — (1,147.4) (1,222.2)
Quota share reinsurance result (164.9) 10.5 — — (11.4) — (154.4) (165.8)
Net movement in onerous loss component 0.8 1.6 — — — — 2.4 2.4
Underwriting result 260.1 (3.2) — (3.2) 0.5 — 253.7 254.2
Net investment income (2) 33.0 2.0 0.1 0.3 2.5 (2.8) 32.6 35.1
Net interest income from financial services — — 34.1 0.3 — 1.9 36.3 36.3
Net other revenue and operating expenses 70.2 (0.1) (27.4) (5.0) — — 37.7 37.7
Segment profit/(loss) before tax (4) 363.3 (1.3) 6.8 (7.6) 3.0 (0.9) 360.3 363.3
Other central revenue and expenses, including share scheme charges (45.7) (46.4)
Investment and interest income 6.1 6.1
Finance costs (13.1) (13.2)
Consolidated profit before tax 307.6 309.8
Taxation expense (72.2) (72.6)
Consolidated profit after tax 235.4 237.2
Revenue and results for the corresponding reportable segments for the year
ended 31 December 2024 are shown below.
Year ended 31 December 2024
UK Insurance £m European Insurance £m Admiral Money £m Other £m Discontinued operations £m Eliminations (3) £m Total (continuing) £m Total £m
Turnover (1) 5,108.5 639.9 108.3 89.9 200.1 — 5,946.6 6,146.7
Insurance revenue 3,873.4 606.7 — 73.3 222.8 — 4,553.4 4,776.2
Insurance revenue net of XoL 3,751.1 572.7 — 65.8 221.5 — 4,389.6 4,611.1
Insurance services expenses (745.7) (168.0) — (33.7) (68.5) — (947.4) (1,015.9)
Insurance claims net of XoL (1,952.1) (437.7) — (39.0) (126.8) — (2,428.8) (2,555.6)
Quota share reinsurance result (290.0) 12.4 — — (16.5) — (277.6) (294.1)
Net movement in onerous loss component 1.1 0.4 — — — — 1.5 1.5
Underwriting result 764.4 (20.2) — (6.9) 9.7 — 737.3 747.0
Net investment income (2) 70.5 1.4 0.3 0.7 4.7 (7.9) 65.0 69.7
Net interest income from financial services — — 69.3 0.9 — 6.1 76.3 76.3
Net other revenue and operating expenses 141.8 (0.9) (56.6) (12.1) — — 72.2 72.2
Segment profit/(loss) before tax (4) 976.7 (19.7) 13.0 (17.4) 14.4 (1.8) 950.8 965.2
Other central revenue and expenses, including share scheme charges (113.4) (115.0)
Investment and interest income 13.5 13.5
Finance costs (24.4) (24.5)
Consolidated profit before tax 826.5 839.2
Taxation expense (175.3) (176.3)
Consolidated profit after tax 651.2 662.9
1 Turnover is an Alternative Performance Measure presented before intra-group
eliminations. Refer to the glossary and note 14 for further information.
2 Net Investment income is reported net of impairment of financial assets, in
line with management reporting.
3 Eliminations are in respect of the intra-group interest charges related to
the UK Insurance and Admiral Money segment.
4 Segment 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.
5. Insurance Service result
5a. Accounting policies
The full accounting policies are provided in the Group’s 2024 Annual Report.
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).
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:
30 June 2025 (unaudited) 30 June 2024 (unaudited) 31 December 2024
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
UK Insurance 4.3% 4.1% 4.2% 4.5% 5.5% 4.9% 4.6% 4.5% 5.0% 4.7% 4.5% 4.6%
European Motor 2.4% 2.5% 2.7% 3.0% 4.1% 3.6% 3.4% 3.4% 2.7% 2.6% 2.6% 2.8%
5b. Insurance revenue
Insurance revenue for the corresponding reportable segments for the period
ended 30 June 2025 are shown below.
30 June 2025 (unaudited)
Continuing operations UK Motor £m UK Non-motor £m European Insurance £m Other £m Total £m
Insurance revenue related movement in liability for remaining coverage 1,775.2 334.2 312.2 47.1 2,468.7
Insurance revenue for the corresponding reportable segments for the period
ended 30 June 2024 are shown below.
30 June 2024 (unaudited)
Continuing operations UK Motor £m UK Non-motor £m European Insurance £m Other £m Total £m
Insurance revenue related movement in liability for remaining coverage 1,539.5 221.8 300.4 30.4 2,092.1
Insurance revenue for the corresponding reportable segments for the year ended
31 December 2024 are shown below.
31 December 2024
Continuing operations UK Motor £m UK Non-motor £m European Insurance £m Other £m Total £m
Insurance revenue related movement in liability for remaining coverage 3,369.5 503.9 606.7 73.3 4,553.4
The Group’s share of its insurance business was underwritten by Admiral
Insurance (Gibraltar) Limited, Admiral Insurance Company Limited and Admiral
Europe Compañia Seguros (‘AECS’) . The majority of contracts are short
term in duration, lasting for between 6 and 12 months.
5c. Insurance service expenses
Insurance service expenses for the corresponding reportable segments for the
period ended 30 June 2025 are shown below.
30 June 2025 (unaudited)
Continuing operations UK Motor £m UK Non-motor £m European Insurance £m Other £m Total £m
Incurred claims
Claims incurred in the period 1,156.3 213.4 219.8 33.1 1,622.6
Changes to liabilities for incurred claims (214.0) (25.8) 1.5 (4.6) (242.9)
Total incurred claims 942.3 187.6 221.3 28.5 1,379.7
Movement in onerous contracts 0.1 (0.4) 0.9 — 0.6
Directly attributable expenses
Administration expenses 235.7 66.9 58.9 11.9 373.4
Acquisition expenses 53.7 24.7 25.0 9.7 113.1
Insurance expenses 289.4 91.6 83.9 21.6 486.5
Share scheme expenses 27.3 4.3 4.3 0.6 36.5
Total insurance expenses including share scheme expenses 316.7 95.9 88.2 22.2 523.0
Total Insurance service expenses 1,259.1 283.1 310.4 50.7 1,903.3
Insurance service expenses for the corresponding reportable segments for the
period ended 30 June 2024 are shown below.
30 June 2024 (unaudited)
Continuing operations UK Motor £m UK Non-motor £m European Insurance £m Other £m Total £m
Incurred claims
Claims incurred in the period 1,049.1 138.0 191.3 17.7 1,396.1
Changes to liabilities for incurred claims (274.6) (37.5) 25.1 (1.9) (288.9)
Total incurred claims 774.5 100.5 216.4 15.8 1,107.2
Movement in onerous contracts (3.6) (0.3) (1.9) — (5.8)
Directly attributable expenses
Administration expenses 226.3 49.6 58.1 9.3 343.3
Acquisition expenses 61.7 23.0 25.1 5.5 115.3
Insurance expenses 288.0 72.6 83.2 14.8 458.6
Share scheme expenses 19.1 2.4 3.8 0.7 26.0
Total insurance expenses including share scheme expenses 307.1 75.0 87.0 15.5 484.6
Total Insurance service expenses 1,078.0 175.2 301.5 31.3 1,586.0
Insurance service expenses for the corresponding reportable segments for the
year ended 31 December 2024 are shown below.
31 December 2024
Continuing operations UK Motor £m UK Non-motor £m European Insurance £m Other £m Total £m
Incurred claims
Claims incurred in the period 2,107.2 298.2 453.2 48.9 2,907.5
Changes to liabilities for incurred claims (496.1) (51.4) (7.3) (1.4) (556.2)
Total incurred claims 1,611.1 246.8 445.9 47.5 2,351.3
Movement in onerous contracts (5.1) 0.1 (0.1) — (5.1)
Directly attributable expenses
Administration expenses 461.5 113.7 117.0 18.7 710.9
Acquisition expenses 125.3 45.2 51.0 15.0 236.5
Insurance expenses 586.8 158.9 168.0 33.7 947.4
Share scheme expenses 40.7 5.4 8.6 1.4 56.1
Total insurance expenses including share scheme expenses 627.5 164.3 176.6 35.1 1,003.5
Total Insurance service expenses 2,233.5 411.2 622.4 82.6 3,349.7
5d. Net expenses from reinsurance contracts held
Net expenses from reinsurance contracts held for the corresponding reportable
segments for the period ended 30 June 2025 are shown below.
30 June 2025 (unaudited)
Continuing operations UK Motor £m UK Non-motor £m European Insurance £m Other £m Total £m
Allocation of reinsurance premiums 74.6 45.8 67.5 5.4 193.3
Amounts recoverable from reinsurers for incurred insurance service expenses
Incurred claims (17.0) (31.0) (69.6) (1.1) (118.7)
Changes to liabilities for incurred claims 37.0 20.4 8.3 — 65.7
Net expense from reinsurance contracts excluding movement in onerous loss component 94.6 35.2 6.2 4.3 140.3
Other reinsurance recoveries including movement in onerous loss component — 0.3 (0.7) — (0.4)
Net expenses/(income) from reinsurance contracts held 94.6 35.5 5.5 4.3 139.9
Net expenses from reinsurance contracts held for the corresponding reportable
segments for the period ended 30 June 2024 are shown below.
30 June 2024 (unaudited)
Continuing operations UK Motor £m UK Non-motor £m European Insurance £m Other £m Total £m
Allocation of reinsurance premiums 66.9 23.9 59.0 2.8 152.6
Amounts recoverable from reinsurers for incurred insurance service expenses
Incurred claims (27.0) (4.4) (138.2) — (169.5)
Changes to liabilities for incurred claims 172.2 28.0 82.4 — 282.6
Net expense from reinsurance contracts excluding movement in onerous loss component 212.1 47.5 3.2 2.8 265.6
Other reinsurance recoveries including movement in loss recovery component 2.9 0.2 0.3 — 3.4
Net expenses/(income) from reinsurance contracts held 215.0 47.7 3.5 2.8 269.0
Net expenses from reinsurance contracts held for the corresponding reportable
segments for the year ended 31 December 2024 are shown below.
31 December 2024
Continuing operations UK Motor £m UK Non-motor £m European Insurance £m Other £m Total £m
Allocation of reinsurance premiums 145.8 45.8 119.2 7.6 318.4
Amounts recoverable from reinsurers for incurred insurance service expenses
Incurred claims (29.2) 3.1 (255.2) (8.5) (289.8)
Changes to liabilities for incurred claims 291.6 34.3 143.5 — 469.4
Net expense from reinsurance contracts excluding movement in onerous loss component 408.2 83.2 7.5 (0.9) 498.0
Other reinsurance recoveries including movement in loss recovery component 4.0 (0.1) (0.3) — 3.6
Net expenses/(income) from reinsurance contracts held 412.2 83.1 7.2 (0.9) 501.6
5e. Finance expenses/(income) from insurance contracts held and reinsurance
contracts issued
£m 30 June 2025 (unaudited) 30 June 2024 (unaudited) 31 December 2024
Amounts recognised through the income statement - Continuing basis
Insurance finance expenses from insurance contracts issued 68.2 61.2 128.4
Insurance finance income from reinsurance contracts held (13.6) (19.3) (35.9)
Net finance expense from insurance / reinsurance contracts issued 54.6 41.9 92.5
5f. Insurance Liabilities and Reinsurance assets
(i). Analysis of recognised amounts
Period ended 30 June 2025 (unaudited) Period ended 30 June 2024 (unaudited) Year ended 31 December 2024
£ million Liability for remaining coverage Liability for incurred claims Total Liability for remaining coverage Liability for incurred claims Total Liability for remaining coverage Liability for incurred claims Total
Insurance contracts issued
UK Motor 888.8 2,904.3 3,793.1 989.5 2,649.3 3,638.8 883.3 2,691.1 3,574.4
UK Non-motor 221.3 260.6 481.9 173.6 195.3 368.9 195.3 214.7 410.0
International Insurance (1) 222.2 657.8 880.0 227.1 645.4 872.5 201.4 690.2 891.6
Other 9.4 96.8 106.2 4.7 61.7 66.4 8.6 76.8 85.4
Total insurance contracts issued 1,341.7 3,919.5 5,261.2 1,394.9 3,551.7 4,946.6 1,288.6 3,672.8 4,961.4
£ million Asset/(liability) for remaining coverage Asset for incurred claims Total 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 62.3 228.2 290.5 48.4 351.4 399.8 34.0 236.5 270.5
UK Non-Motor (37.2) 237.0 199.8 (29.9) 179.6 149.7 11.2 173.5 184.7
International Insurance (1) (9.5) 547.5 538.0 (25.5) 525.1 499.6 43.1 481.5 524.6
Other 1.3 8.9 10.2 (0.3) 6.8 6.5 (0.1) 8.9 8.8
Total reinsurance contracts held 16.9 1,021.6 1,038.5 (7.3) 1,062.9 1,055.6 88.2 900.4 988.6
£ million Liability/(asset) for remaining coverage Liability/(asset) for incurred claims Total 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 826.5 2,676.1 3,502.6 941.1 2,297.9 3,239.0 849.3 2,454.6 3,303.9
UK Non-Motor 258.5 23.6 282.1 203.5 15.7 219.2 184.1 41.2 225.3
International Insurance (1) 231.7 110.3 342.0 252.6 120.3 372.9 158.3 208.7 367.0
Other 8.1 87.9 96.0 5.0 54.9 59.9 8.7 67.9 76.6
Total insurance contracts issued 1,324.8 2,897.9 4,222.7 1,402.2 2,488.8 3,891.0 1,200.4 2,772.4 3,972.8
1 Periods ended 30 June 2024 and 31 December 2024 are inclusive of USA
Insurance. For the period ended 30 June 2025, this excludes USA Insurance due
to the business line being discontinued.
(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.
30 June 2025 (unaudited) Liability for remaining coverage Liability for incurred claims
£m Excluding loss component Loss component Total Present value of future cashflows Risk adj. for non-financial risk Total Total
Opening assets — — — — — — —
Opening liabilities (883.3) — (883.3) (2,300.8) (390.3) (2,691.1) (3,574.4)
Net opening balance (883.3) — (883.3) (2,300.8) (390.3) (2,691.1) (3,574.4)
Insurance revenue 1,775.2 — 1,775.2 — — — 1,775.2
Insurance service expenses
Incurred claims and insurance service expenses — — — (1,358.8) (114.2) (1,473.0) (1,473.0)
Changes to liabilities for incurred claims — — — 86.9 127.1 214.0 214.0
Losses and reversals of losses on onerous contracts — (0.1) (0.1) — — — (0.1)
Insurance service result 1,775.2 (0.1) 1,775.1 (1,271.9) 12.9 (1,259.0) 516.1
Insurance finance income/(expense) recognised in profit or loss — — — (45.9) (8.6) (54.5) (54.5)
Insurance finance income/(expense) recognised in OCI — 0.1 0.1 (39.8) (7.8) (47.6) (47.5)
Total changes in comprehensive income 1,775.2 — 1,775.2 (1,357.6) (3.5) (1,361.1) 414.1
Other changes (1) — — — 59.8 — 59.8 59.8
Cashflows
Premiums received (1,780.7) — (1,780.7) — — — (1,780.7)
Claims and other insurance service expenses paid — — — 1,088.1 — 1,088.1 1,088.1
Other movements — — — — — — —
Total cashflows (1,780.7) — (1,780.7) 1,088.1 — 1,088.1 (692.6)
Net closing balance (888.8) — (888.8) (2,510.5) (393.8) (2,904.3) (3,793.1)
Closing assets — — — — — — —
Closing liabilities (888.8) — (888.8) (2,510.5) (393.8) (2,904.3) (3,793.1)
1 Other changes reflect 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.
30 June 2024 (unaudited) Liability for remaining coverage Liability for incurred claims
£m Excluding loss component Loss component Total Present value of future cashflows Risk adj. for non-financial risk Total Total
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 1,539.5 — 1,539.5 — — — 1,539.5
Insurance service expenses
Incurred claims and insurance service expenses — — — (1,252.6) (103.6) (1,356.2) (1,356.2)
Changes to liabilities for incurred claims — — — 166.7 107.9 274.6 274.6
Losses and reversals of losses on onerous contracts — 3.6 3.6 — — — 3.6
Insurance service result 1,539.5 3.6 1,543.1 (1,085.9) 4.3 (1,081.6) 461.5
Insurance finance income/(expense) recognised in profit or loss — (1.0) (1.0) (39.8) (7.2) (47.0) (48.0)
Insurance finance income/(expense) recognised in OCI — 0.4 0.4 23.6 2.2 25.8 26.2
Total changes in comprehensive income 1,539.5 3.0 1,542.5 (1,102.1) (0.7) (1,102.8) 439.7
Other changes (1) — — — 35.4 — 35.4 35.4
Cashflows
Premiums received (1,763.0) — (1,763.0) — — — (1,763.0)
Claims and other insurance service expenses paid (1) — — — 964.8 — 964.8 964.8
Other movements — — — — — — —
Total cashflows (1,763.0) — (1,763.0) 964.8 — 964.8 (798.2)
Net closing balance (989.5) — (989.5) (2,304.7) (344.6) (2,649.3) (3,638.8)
Closing assets — — — — — — —
Closing liabilities (989.5) — (989.5) (2,304.7) (344.6) (2,649.3) (3,638.8)
31 December 2024 Liability for remaining coverage Liability for incurred claims
£m Excluding loss component Loss component Total Present value of future cashflows Risk adj. for non-financial risk Total Total
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)
1 Claims 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.
(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.
30 June 2025 (unaudited) Asset for remaining coverage Asset for incurred claims
£m Excluding loss component Loss-recovery component Total Present value of future cashflows Risk adj. for non-financial risk Total Total
Opening assets 34.0 — 34.0 172.5 64.0 236.5 270.5
Opening liabilities — — — — — — —
Net opening balance 34.0 — 34.0 172.5 64.0 236.5 270.5
Allocation of reinsurance premiums (74.6) — (74.6) — — — (74.6)
Amounts recoverable from reinsurers for incurred claims
Incurred claims — — — 12.3 4.7 17.0 17.0
Changes to liabilities for incurred claims — — — (16.0) (21.0) (37.0) (37.0)
Changes in the loss recovery component — — — — — — —
Net income/ (expense) from reinsurance contracts held (74.6) — (74.6) (3.7) (16.3) (20.0) (94.6)
Reinsurance finance income/(expense) recognised in profit or loss — — — 3.7 1.1 4.8 4.8
Reinsurance finance income/(expense) recognised in OCI — — — 7.6 2.9 10.5 10.5
Total changes in comprehensive income (74.6) — (74.6) 7.6 (12.3) (4.7) (79.3)
Cashflows
Premiums paid 102.9 — 102.9 — — — 102.9
Claims recoveries — — — (3.6) — (3.6) (3.6)
Recoveries as a result of commutations — — — — — — —
Total cashflows 102.9 — 102.9 (3.6) — (3.6) 99.3
Net closing balance 62.3 — 62.3 176.5 51.7 228.2 290.5
Closing assets 62.3 — 62.3 176.5 51.7 228.2 290.5
Closing liabilities — — — — — — —
30 June 2024 (unaudited) Asset for remaining coverage Asset for incurred claims
£m Excluding loss component Loss-recovery component Total Present value of future cashflows Risk adj. for non-financial risk Total Total
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 (66.9) — (66.9) — — — (66.9)
Amounts recoverable from reinsurers for incurred claims
Incurred claims — — — 15.8 11.2 27.0 27.0
Changes to liabilities for incurred claims — — — (98.3) (73.9) (172.2) (172.2)
Changes in the loss recovery component — (2.9) (2.9) — — — (2.9)
Net income/ (expense) from reinsurance contracts held (66.9) (2.9) (69.8) (82.5) (62.7) (145.2) (215.0)
Reinsurance finance income/(expense) recognised in profit or loss — 0.9 0.9 5.5 4.0 9.5 10.4
Reinsurance finance income/(expense) recognised in OCI — (0.3) (0.3) (5.9) (3.8) (9.7) (10.0)
Total changes in comprehensive income (66.9) (2.3) (69.2) (82.9) (62.5) (145.4) (214.6)
Cashflows
Premiums paid 94.5 — 94.5 — — — 94.5
Claims recoveries — — — — — — —
Recoveries as a result of commutations — — — — — — —
Total cashflows 94.5 — 94.5 — — — 94.5
Net closing balance 48.4 — 48.4 230.3 121.1 351.4 399.8
Closing assets 48.4 — 48.4 230.3 121.1 351.4 399.8
Closing liabilities — — — — — — —
31 December 2024 Asset for remaining coverage Asset for incurred claims
£m Excluding loss component Loss-recovery component Total Present value of future cashflows Risk adj. for non-financial risk Total Total
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 — — — — — — —
(iv) 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 four financial periods, presented on an underwriting year basis, both
using undiscounted amounts (i.e. cashflows) and discounted amounts.
31 December 30 June (unaudited)
UK Motor Insurance loss ratio development - undiscounted, net of excess of loss reinsurance (1) 2022 2023 2024 2025
Underwriting year
2020 65% 58% 57% 56%
2021 91% 86% 82% 78%
2022 104% 96% 91% 90%
2023 — 94% 80% 77%
2024 — — 77% 75%
2025 — — — 79%
1 Booked undiscounted loss ratios presented from the transition date of IFRS
17 (1 January 2022) onwards.
31 December 30 June (unaudited)
UK Motor Insurance loss ratio development - discounted, net of excess of loss reinsurance (1) 2022 2023 2024 2025
Underwriting year
2020 63% 57% 55% 55%
2021 86% 81% 77% 74%
2022 97% 88% 83% 82%
2023 — 86% 72% 70%
2024 — — 71% 69%
2025 — — — 73%
1 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 (core product only).
30 June 2025 (unaudited) £m 30 June 2024 (unaudited) £m 31 December 2024 £m
Gross
Underwriting year
2019 & prior 12.8 97.4 173.7
2020 10.8 16.1 41.8
2021 52.2 36.4 87.0
2022 15.9 57.0 107.1
2023 57.8 64.9 83.8
2024 61.5 — —
Total UK Motor gross changes to liabilities for incurred claims 211.0 271.8 493.4
Net
Underwriting year
2019 & prior 11.5 52.0 99.6
2020 6.3 17.3 30.5
2021 41.3 28.3 70.6
2022 16.1 56.1 94.5
2023 56.4 62.2 76.7
2024 62.4 — —
Total UK Motor net of excess of loss changes to liabilities for incurred claims 194.0 215.9 371.9
6. Investment income and finance costs
6a. Investment return
30 June 2025 (unaudited) £m 30 June 2024 (unaudited) £m 31 December 2024 £m
Continuing operations Total Total Total
Investment return
On assets classified as FVTPL 38.6 32.0 65.4
On assets classified as FVOCI (1 3) 58.0 46.7 102.8
On assets classified as amortised cost (1) 1.8 3.3 5.9
Net unrealised losses
Unrealised (loss) / gain on forward contracts (0.4) (0.2) (0.2)
Share of associate profit/ loss — (0.1) (1.0)
Interest income on cash and cash equivalents (1) 1.7 2.6 5.3
Investment fees (1.5) (1.0) (2.0)
Total investment and interest income (2) 98.2 83.3 176.2
1 Interest received from continuing operations during the year was £52.5
million (HY 2024: £49.1 million; FY 2024: £86.2 million).
2 Total investment return excludes £5.0 million of intra-group interest (HY
2024: £2.8 million; FY 2024: £7.9 million).
3 Realised losses on sales of debt securities classified as FVOCI from
continuing operations are £7.0 million (HY 2024: £0.6 million; FY 2024:
£4.4 million).
6b. Finance costs
Continuing operations 30 June 2025 (unaudited) £m 30 June 2024 (unaudited) £m 31 December 2024 £m
Interest expense on subordinated loan notes and other credit facilities (1) 11.1 13.2 24.5
Interest expense on lease liabilities 1.1 0.8 2.5
Interest recoverable from co-insurers (0.2) (0.2) (0.6)
Total finance costs 12.0 13.8 26.4
1 Interest paid from continuing operations during the year was £12.3 million
(HY 2024: £14.0 million; FY 2024: £26.9 million).
Finance costs represent interest payable on the £250.0 million (30 June
2024: £305.1 million; 31 December 2024: £250.0 million) subordinated notes
and other financial liabilities.
Interest expense on lease liabilities represents the unwinding of the discount
on lease liabilities under IFRS 16.
6c. Financial assets and liabilities
The Group’s financial assets and liabilities can be analysed as follows:
30 June 2025 (unaudited) £m 30 June 2024 (unaudited) £m 31 December 2024 £m
Financial investments measured at FVTPL
Money market funds 1,086.8 751.0 902.6
Other funds (1) 484.8 311.1 473.9
Derivative financial instruments 7.0 10.4 5.8
Equity investments (designated FVTPL) 40.4 35.7 46.9
1,619.0 1,108.2 1,429.2
Financial investments classified as FVOCI
Corporate debt securities 2,461.9 2,289.5 2,410.9
Government debt securities 784.7 633.6 772.2
Private debt securities 165.7 255.8 152.3
3,412.3 3,178.9 3,335.4
Equity investments (designated FVOCI) — 21.6 —
3,412.3 3,200.5 3,335.4
Financial assets measured at amortised cost
Deposits with credit institutions 82.4 117.3 91.7
Other
Investment in Associate — 0.9 —
Investment Property 6.9 9.0 6.9
Total financial investments 5,120.6 4,435.9 4,863.2
Other financial assets (measured at amortised cost)
Insurance related receivables 66.5 331.1 51.1
Trade and other receivables 144.6 81.6 110.4
Insurance related and other receivables 211.1 412.7 161.5
Loans and advances to customers (note 7) 1,291.6 952.1 1,106.9
Cash and cash equivalents 319.2 363.6 313.6
Total financial assets 6,942.5 6,164.3 6,445.2
Financial liabilities
Subordinated notes (2) 258.8 315.3 258.9
Loan backed securities 1,055.0 819.4 937.7
Other borrowings 190.8 69.2 117.4
Derivative financial instruments 5.1 0.2 8.2
Subordinated and other financial liabilities 1,509.7 1,204.1 1,322.2
Trade and other payables 170.6 384.9 175.3
Lease liabilities 76.0 73.1 79.6
Total financial liabilities 1,756.3 1,662.1 1,577.1
1 Other funds include funds which primarily invest in fixed income securities
are recognised as fair value through profit and loss
2 The fair value of subordinated notes (level one valuation) at 30 June 2025
is £283.5 million (30 June 2024: £331.8 million; 31 December 2024: £276.4
million).
The table below shows how the financial assets and liabilities held at fair
value have been measured using the fair value hierarchy:
30 June 2025 (unaudited) 30 June 2024 (unaudited) 31 December 2024
FVTPL £m FVOCI £m FVTPL £m FVOCI £m FVTPL £m FVOCI £m
Level one (quoted prices in active markets) 1,428.7 3,246.7 1,061.5 2,923.1 1,221.2 3,183.1
Level two (use of observable inputs) 1.9 — 22.9 — (2.4) —
Level three (use of significant unobservable inputs) 183.3 165.6 23.6 277.4 202.2 152.3
Total 1,613.9 3,412.3 1,108.0 3,200.5 1,421.0 3,335.4
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 (30 June 2025: £157.2 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.
The table below presents the movement in the period relating to financial
instruments valued using a level three valuation:
30 June 2025 (unaudited) £m 30 June 2024 (unaudited) £m 31 December 2024 £m
Level Three Investments Total Total Total
Balance as at 1 January 354.5 278.2 278.2
Gains/(losses) recognised in the Income Statement (6.4) 4.2 5.1
Gains/(losses) recognised in Other Comprehensive Income 3.0 (2.7) (2.8)
Purchases 17.1 37.4 111.0
Disposals (19.3) (16.1) (37.0)
Balance as at period end 348.9 301.0 354.5
7. Loans and Advances to Customers
30 June 2025 (unaudited) £m 30 June 2024 (unaudited) £m 31 December 2024 £m
Loans and advances to customers – gross carrying amount 1,284.6 1,029.2 1,174.0
Loans and advances to customers – provision (87.4) (87.4) (84.3)
Total loans and advances to customers – Admiral Money 1,197.2 941.8 1,089.7
Total loans and advances to customers – Other (1) 94.4 10.3 17.2
Total loans and advances to customers 1,291.6 952.1 1,106.9
1 Other includes alternative loan products offered by the Group in which the
lines of business are classified within the ‘Other’ segment.
In H1 2025, the Group sold loans with a carrying value of £146.4 million to
an external third party under a forward flow agreement. Based on
management’s assessment, the sale is consistent with the hold to collect
business model as the transaction is considered infrequent. Furthermore, as
the Group transferred substantially all the risks and rewards of ownership to
the third party, the loans sale met the derecognition requirements under IFRS
9 and the loans sold have been derecognised from the Statement of Financial
Position as at 30 June 2025.
Loans sold as part of front book sales through the forward flow agreement are
considered to fall under a new business model under IFRS 9, given they are
originated with the express intention of being sold shortly thereafter to an
external third party. These assets are therefore part of a held for sale
business model and are initially recognised and subsequently measured at
FVTPL. £90.4 million of loans were originated under this business model in H1
2025 which, due to the way in which the forward flow arrangement is
structured, have been derecognised in full in the Statement of Financial
Position as at 30 June 2025.
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 30 June 2025 there are three key economic drivers of credit losses
factored into the scenarios used for the Admiral Money portfolio, as follows:
* UK Unsecured Debt to Income (‘DTI’) - the total amount of unsecured
borrowing held by households relative to their gross disposable income,
indicating the level of indebtedness and ability to repay,
* UK Employment Hazard Rates - probability that an individual employed at the
start of a given period will exit employment during that period,
* Annual UK GDP % Change - this is used as an indicator of overall
macroeconomic conditions.
The variables are combined using a statistical model which will estimate the
relative change in the probability of default (PD) of an account for each
scenario over the life of the loan. The Group utilises a 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 by Admiral Money are detailed below,
along with the annual peak for each economic driver assumed in each scenario
at 30 June 2025.
For the Forecast Year Ended
At 30 June 2025 (unaudited) 2025 2026 2027 2028 2029
% % % % %
Base - 50%
Gross domestic product 1.5 1.5 1.7 1.7 1.7
Unemployment rate 4.7 4.7 4.6 4.3 4.1
UK Household Unsecured Debt to Income 12.5 13.0 13.7 14.2 14.4
Upside - 5%
Gross domestic product 2.0 2.9 2.3 1.8 1.8
Unemployment rate 4.6 4.2 3.9 3.9 3.9
UK Household Unsecured Debt to Income 12.3 12.1 11.9 12.2 12.3
Downside - 30%
Gross domestic product 1.3 (1.4) 2.3 2.4 2.4
Unemployment rate 5.1 6.0 5.9 5.3 4.8
UK Household Unsecured Debt to Income 12.8 13.6 14.3 15.0 15.1
Severe - 15%
Gross domestic product 1.3 (2.5) 1.8 2.2 2.4
Unemployment rate 5.6 7.6 8.0 8.0 7.3
UK Household Unsecured Debt to Income 12.7 14.2 15.2 15.7 15.9
Probability-weighted
Gross domestic product 1.4 0.1 1.9 2.0 2.0
Unemployment rate 5.0 5.5 5.5 5.1 4.8
UK Household Unsecured Debt to Income 12.6 13.3 14.0 14.5 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 45% attached to recessionary outcomes.
Sensitivities to key areas of estimation uncertainty (Admiral Money)
The key areas of estimation uncertainty identified, as per note 2 to the
financial statements, are in the PD and the forward-looking scenarios.
30 June 2025 (Unaudited) Weighting 30 June 2025 (Unaudited) Sensitivity 31 December 2024 Weighting 31 December 2024 Sensitivity
Base 50% (2.2) 50% (1.7)
Upturn 5% (3.8) 10% (3.3)
Downturn 30% 2.4 30% 2.9
Severe 15% 5.8 10% 6.3
The sensitivities in the above tables show the variance to expected credit
loss (‘ECL’) that would be expected if the given scenario unfolded rather
than the weighted position the provision is based on. At 30 June 2025 the
implied weighted peak unemployment rate is 5.0%: the table shows that in a
downturn scenario with a 5.1% peak unemployment rate the provision would
increase by £2.4 million, whilst the upturn would reduce the provision by
£3.8 million, base case reduce by £2.2 million and severe increase the
provision by £5.8 million.
Judgements required – Post Model Adjustments (‘PMA’s) (Admiral Money)
As at 30 June 2025, the expected credit loss allowance included PMAs
totalling £3.2 million (30 June 2024: £8.5 million).
Post Model Adjustments 30 June 2025 (Unaudited) £m 30 June 2024 (Unaudited) £m 31 December 2024 £m
Model performance 0.4 2.0 1.5
Cost of Living 0.5 6.5 1.3
Economic scenarios 2.3 — 1.8
3.2 8.5 4.6
PMAs are calculated using management judgement and analysis. The key
categories of PMAs are as follows:
Model performance
As at 31 December 2024, a potential shortfall was identified in the Loss Given
Default (LGD) model for customers progressing directly through arrears to
write-off. A fix was implemented in the model by 30 June 2025 to address this
issue, resulting in the full release of the associated LGD PMA.
Separately, a model performance consideration has been identified in relation
to the Group’s Motor Finance ECL modelling. A bespoke ECL model specific to
the Motor Finance portfolio has been developed and is currently operating in
shadow alongside the existing model. A PMA has been recognised to reflect the
potential shortfall until the new model is fully validated and implemented,
which is expected to occur by year end.
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
The model is sensitive to the timing of forecasted peaks in, for example,
unemployment rates. A PMA is held equivalent to the peak impacts of each
scenario occurring earlier in the forecast horizon, to address the risk of
mistiming of the economic impacts of each scenario leading to an
understatement of the required provision.
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.
Credit grade information
Unaudited
30 June 2025 30 June 2024 31 December 2024
Stage 1 12 month ECL £m Stage 2 Lifetime ECL £m Stage 3 Lifetime ECL £m Total £m Total £m Total £m
Credit Grade (1)
Higher 760.2 72.8 — 833.0 737.8 854.1
Medium 247.3 21.8 — 269.1 180.3 192.5
Lower 101.7 11.7 — 113.4 46.2 63.0
Credit impaired — — 69.1 69.1 64.9 64.4
Gross carrying amount 1,109.2 106.3 69.1 1,284.6 1,029.2 1,174.0
Expected credit loss allowance (16.4) (17.7) (52.2) (86.3) (86.8) (83.8)
Other loss allowance (2) (1.1) — — (1.1) (0.6) (0.5)
Carrying amount – Admiral Money 1,091.7 88.6 16.9 1,197.2 941.8 1,089.7
Carrying amount – Other 92.6 1.5 0.3 94.4 10.3 17.2
Carrying amount 1,184.3 90.1 17.2 1,291.6 952.1 1,106.9
1 Credit grade is the internal credit banding given to a customer at
origination. This is based on external credit rating information.
2 Other 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.
8. Other revenue and co-insurer profit commission
30 June 2025 (unaudited)
UK Insurance £m European Insurance £m Admiral Money £m Other £m Total Group £m
Major products/service line
Fee and commission revenue 60.6 0.1 0.1 0.1 60.9
Revenue from law firm 11.2 — — — 11.2
Gain on de-recognition of assets — — 9.0 — 9.0
Servicing fee income — — 0.3 — 0.3
Total other revenue 71.8 0.1 9.4 0.1 81.4
Profit commission from co-insurers 39.1 — — — 39.1
Total other revenue and co-insurer profit commission 110.9 0.1 9.4 0.1 120.5
Timing of revenue recognition
Point in time 82.2 0.1 0.1 0.1 82.5
Over time 28.7 — 0.3 — 29.0
Revenue outside the scope of IFRS 15 — — 9.0 — 9.0
110.9 0.1 9.4 0.1 120.5
30 June 2024( unaudited)
UK Insurance £m European Insurance £m Admiral Money £m Other £m Total Group £m
Major products/service line
Fee and commission revenue 56.2 — 0.1 — 56.3
Revenue from law firm 8.2 — — — 8.2
Comparison income — — — — —
Total other revenue 64.4 — 0.1 — 64.5
Profit commission from co-insurers 24.5 — — — 24.5
Total other revenue and co-insurer profit commission 88.9 — 0.1 — 89.0
Timing of revenue recognition
Point in time 64.6 — 0.1 — 64.7
Over time 24.3 — — — 24.3
88.9 — 0.1 — 89.0
31 December 2024
UK Insurance £m European 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
Profit commission
Unaudited
30 June 2025 £m 30 June 2024 £m 31 December 2024 £m
Underwriting year
2021 & prior 3.9 24.5 51.7
2022 — — —
2023 — — —
2024 35.2 — 1.6
2025 — — —
Total UK Motor profit commission 39.1 24.5 53.3
9. Directly attributable and other expenses
30 June 2025 (unaudited)
Continuing operations Directly attributable expenses £m Other operating expenses £m Total expenses £m
Administration and acquisition expenses 486.5 60.4 546.9
Expenses relating to additional products and fees — 25.0 25.0
Share scheme expenses 36.5 19.1 55.6
Loan expenses (excluding movement on ECL provision) — 26.2 26.2
Movement in expected credit loss provision — 4.3 4.3
Other — 25.0 25.0
Total 523.0 160.0 683.0
30 June 2024 (unaudited)
Continuing operations Directly attributable expenses £m Other operating expenses £m Total expenses £m
Administration and acquisition expenses 458.6 54.9 513.5
Expenses relating to additional products and fees — 21.9 21.9
Share scheme expenses 26.0 14.8 40.8
Loan expenses (excluding movement on ECL provision) — 13.4 13.4
Movement in expected credit loss provision — 16.9 16.9
Profit on disposal of Insurify share option — (12.5) (12.5)
Other — 35.3 35.3
Total 484.6 144.7 629.3
31 December 2024
Continuing operations Directly attributable expenses £m Other operating expenses £m Total expenses £m
Administration and acquisition expenses 947.4 121.3 1,068.7
Expenses relating to additional products and fees — 46.2 46.2
Share scheme expenses 56.1 35.3 91.4
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)
Other (1) — 73.3 73.3
Total 1,003.5 328.1 1,331.6
1 Other includes centralised costs primarily for employees and projects (H1
2025: £23.7 million, H1 2024: £19.9 million FY 2024: £49.9 million),
business development costs (H1 2025: £1.3 million, H1 2024: £14.1 million FY
2024: £19.9 million) and other costs (H1 2025: £nil million, H1 2024: £1.3
million FY 2024: £3.5 million).
10. Taxation
Continuing operations 30 June 2025 £m (unaudited) 30 June 2024 £m (unaudited) 31 December 2024 £m
Current tax
Corporation tax on profits for the year 138.7 47.5 139.1
Under provision relating to prior periods — — 1.8
Pillar Two income taxes 1.9 11.3 15.3
Current tax charge 140.6 58.8 156.2
Deferred tax
Current period deferred taxation movement (25.4) 6.9 15.7
Under provision relating to prior periods — 6.5 3.4
Total tax charge per Consolidated Income Statement 115.2 72.2 175.3
Factors affecting the total tax charge are:
Continuing operations 30 June 2025 £m (unaudited) 30 June 2024 £m (unaudited) 31 December 2024 £m
Profit before tax 521.0 307.6 826.5
Corporation tax thereon at effective UK corporation tax rate of 25% (2024: 25%) 130.3 76.9 206.6
Expenses and provisions not deductible for tax purposes 0.6 2.3 4.1
Non-taxable income (4.8) (12.7) (21.3)
Adjustments relating to prior periods — 6.5 5.2
Impact of Pillar Two income taxes 1.9 11.3 15.3
Impact of different overseas tax rates (15.3) (14.6) (44.9)
Unrecognised deferred tax 2.5 2.5 10.3
Total tax charge for the period as above 115.2 72.2 175.3
The UK corporation tax rate for 2025 is 25% (2024: 25%).
Pillar Two income taxes included above relates to estimated top-up tax payable
under the OECD Pillar Two rules which establish a global minimum effective tax
rate of 15%.
11. Other Assets and Other Liabilities
11a. Intangible assets
Goodwill £m Customer contracts, relationships and brand £m Software – Internally generated £m Software – Other £m Total £m
At 1 January 2024 62.3 7.9 152.0 20.7 242.9
Additions 49.8 44.6 25.0 1.5 120.9
Amortisation charge — (0.3) (24.8) (2.3) (27.4)
Disposals — — — — —
Impairment — — — — —
Transfers — — 5.6 (5.6) —
Foreign exchange movement & other movements — (0.2) (0.2) (0.3) (0.7)
At 30 June 2024 (Unaudited) 112.1 52.0 157.6 14.0 335.7
At 1 January 2024 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
Additions — — 29.7 1.0 30.7
Amortisation charge — (3.3) (26.0) (1.7) (31.0)
Disposals — — (0.5) — (0.5)
Foreign exchange movement & other movements — 0.3 0.5 0.5 1.3
At 30 June 2025 (Unaudited) 112.1 46.3 151.8 11.3 321.5
11b. 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 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. The Group extensively engages with its regulators
as part of normal operations and participates in industry wide regulatory
reviews. In recent periods, the FCA has conducted reviews in respect of
premium finance, motor insurance pricing and claims, home and travel insurance
claims practices, the evaluation of general insurance pricing practices and
add-on products that have involved the Group.
All potentially material matters are assessed, with the assistance of external
advisors where 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.
Other than the amounts held in within insurance contract liabilities within
the Statement of Financial Position in respect of UK motor total loss claims
as set out in the Strategic Report, no material provisions are currently held
in relation to such matters given the uncertainty over whether a liability
will crystallise and the quantum of any exposure.
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
12a. Dividends
Dividends were proposed, approved and paid as follows:
Unaudited
30 June 2025 £m 30 June 2024 £m 31 December 2024 £m
Proposed March 2024 (52.0 pence per share, approved April 2024 and paid June 2024) — 156.2 156.2
Declared August 2024 (71.0 pence per share, paid October 2024) — — 213.6
Proposed March 2025 (121.0 pence per share, approved April 2025 and paid May 2025) 366.5 — —
Total dividends 366.5 156.2 369.8
The dividends proposed in March (approved in April) represent the final
dividends paid in respect of the 2023 and 2024 financial years. The dividend
declared in August reflects the 2024 interim dividend.
A 2025 interim dividend of 115.0 pence per share (approximately £349.1
million) has been declared.
12b. Earnings per share
Unaudited
30 June 2025 £m 30 June 2024 £m 31 December 2024 £m
Profit for the financial year after taxation attributable to equity shareholders - continuing operations 406.0 235.6 651.6
Profit for the financial year after taxation attributable to equity shareholders - discontinued operations (5.0) 1.8 11.7
Profit for the financial year after taxation attributable to equity shareholders - continuing and discontinued operations 401.0 237.4 663.3
Weighted average number of shares – basic 306,304,676 306,304,676 306,304,676
Unadjusted earnings per share – basic - continuing operations 132.5 76.9 212.8
Unadjusted earnings per share – basic - discontinued operations (1.6) 0.6 3.8
Unadjusted earnings per share – basic - continuing and discontinued operations 130.9 77.5 216.6
Weighted average number of shares – diluted 306,304,676 306,304,676 306,304,676
Unadjusted earnings per share – diluted - continuing operations 132.5 76.9 212.8
Unadjusted earnings per share – diluted - discontinued operations (1.6) 0.6 3.8
Unadjusted earnings per share – diluted - continuing and discontinued operations 130.9 77.5 216.6
12c. Related party transactions
The Board considers that only the Executive and Non-Executive Directors of
Admiral Group plc are key management personnel. Further detail on the
remuneration and shareholdings of key management personnel will be set out in
the Directors’ Remuneration Report in the Group’s 2025 Annual Report.
12d. Post balance sheet events
No further events have occurred since the reporting date that materially
impact these financial statements.
13. Discontinued Operations
13a. Accounting policy
Disposal groups are classified as held for sale in accordance with IFRS 5 if
their carrying amount will be recovered principally through a sale transaction
rather than through continuing use and a sale is considered highly probable. A
discontinued operation is a component of the business that has been disposed
of or is classified as held for sale and represents a separate major line of
business or is part of a single co-ordinated plan to dispose of such a line of
business.
The disposal group is measured at the lower of carrying value and fair value
less costs to sell. Assets within a disposal group that is classified as held
for sale are measured at the lower of their carrying amount and fair value
less costs to sell, except for assets which are specified under IFRS 5 which
shall continue to be measured in accordance with the applicable standard.
These assets include deferred tax assets, assets arising from employee
benefits, and financial assets within the scope of IFRS 9.
The assets and liabilities of a disposal group classified as held for sale are
presented separately from the other assets and liabilities in the Statement of
Financial Position. Non-current assets within a disposal group are not
depreciated or amortised from the point of classification as held for sale.
The results of discontinued operations are presented separately in the
Consolidated Income Statement. In the period in which an operation is first
classified as discontinued, the Income Statement and applicable notes are
represented to present those operations as discontinued.
13b. Description
On the 22nd April 2025, the Group announced that it had reached an agreement
with J.C. Flowers & Co. (“J.C. Flowers”), a global private investment firm
to sell the US motor insurance business, including Elephant Insurance Company
and Elephant Insurance Services (“Elephant”). The Group’s internal
reinsurance arrangement of Elephant was ceased after underwriting year 2024.
The liability for incurred claims in relation to the reinsurance arrangement
will remain within the Group post completion.
Elephant and the respective internal reinsurance arrangement are considered to
meet the definition of a discontinued operation, and Elephant to meet the
definition of a disposal group as set out under IFRS 5 above.
The cash consideration before customary adjustments and transaction and
related expenses represents approximately the net asset value of Elephant. The
transaction is subject to regulatory approval and is expected to close in Q4
2025 and will result in a loss of control. As at 30th June 2025, the Group
retains control and continues to consolidate Elephant.
The disposal group is included within the discontinued operations operating
segment as stated in note 4.
13c. Financial performance
Financial information relating to the discontinued operations for the
financial period ending 30 June 2025, 30 June 2024 and 31 December 2024 are
presented below:
£m 30 June 2025 (unaudited) 30 June 2024 (unaudited) 31 December 2024
Insurance service result before reinsurance 8.3 11.5 25.0
Net expense from reinsurance contracts held 1.3 (11.6) (16.8)
Insurance service result 9.6 (0.1) 8.2
Investment return 2.2 2.5 4.7
Net insurance and investment result 11.8 2.4 12.9
Other income and expenses — (0.1) (0.1)
Operating profit 11.8 2.3 12.8
Finance costs — (0.1) (0.1)
Impairment (16.7) — —
Profit before tax from discontinued operations (4.9) 2.2 12.7
Taxation expense (0.1) (0.4) (1.0)
Profit after tax from discontinued operations (5.0) 1.8 11.7
13d. Assets held for sale
30 June 2025 (unaudited)
£m Gross Eliminations (1) Net
Reinsurance contract assets 35.0 (17.8) 17.2
Intercompany receivables 2.7 (2.7) —
Financial investments 89.5 — 89.5
Assets associated with disposal group held for sale 127.2 (20.5) 106.7
Insurance contract liabilities 93.4 — 93.4
Trade and other payables 5.2 — 5.2
Intercompany payables 1.8 (1.8) —
Lease liabilities 0.7 — 0.7
Liabilities directly associated with disposal group held for sale 101.1 (1.8) 99.3
1 Eliminations relate to the internal reinsurance arrangement. Following the
completion of the sale, the Group will retain a liability for incurred claims
in relation to this reinsurance arrangement: at 30 June 2025 this was £17.0
million.
14. Reconciliation of turnover to reported insurance premium and other revenue
as per the financial statements
The following table 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.
Unaudited
Consolidated Financial Statement Note 30 June 2025 £m 30 June 2024 £m 31 December 2024 £m
Insurance revenue related movement in liability for remaining coverage 5b 2,468.7 2,092.1 4,553.4
Less other insurance revenue (146.5) (122.6) (270.7)
Insurance premium revenue 2,322.2 1,969.5 4,282.7
Movement in unearned premium and cancellations 131.6 478.1 369.5
Premiums written after coinsurance 2,453.8 2,447.6 4,652.2
Co-insurer share of written premiums 363.1 413.0 778.4
Total premiums written 2,816.9 2,860.6 5,430.6
Other insurance revenue 146.5 122.6 270.7
Other revenue 8 75.4 64.6 136.3
Interest income on loans to customers 65.0 50.6 109.1
Turnover as per note 4 of financial statements 3,103.8 3,098.4 5,946.7
APPENDIX 1 TO THE GROUP FINANCIAL STATEMENTS (unaudited)
1a: Reconciliation of reported loss and expense ratios: Group
30 June 2025
£m Consolidated Financial Statement Note Core product Ancillary income Total gross Total, net of XoL reinsurance
Insurance premium revenue 2,234.8 87.4 2,322.2 2,244.5
Administration fees, instalment income and non-separable ancillary commission — 146.5 146.5 146.5
Insurance revenue (A) 5b/5d 2,234.8 233.9 2,468.7 2,391.0
Insurance expenses (B) 5c (451.7) (34.8) (486.5) (486.5)
Claims incurred (C) 5c/5d (1,596.7) (25.9) (1,622.6) (1,597.6)
Claims releases (D) 5c/5d 240.2 2.7 242.9 225.9
Quota share reinsurance result (1 3) (83.7)
Onerous loss component movement (2) (0.2)
Underwriting result (E) 448.9
Net share scheme costs (3) (23.4)
Insurance service result 425.5
Reported loss ratio ((C+D)/A) 57.4%
Reported expense ratio (B/A) 20.3%
Insurance service margin (E/A) 18.8%
30 June 2024
£m Consolidated Financial Statement Note Core product Ancillary income Total gross Total, net of XoL reinsurance
Insurance premium revenue 1,892.8 76.7 1,969.5 1,889.1
Administration fees, instalment income and non-separable ancillary commission — 122.6 122.6 122.6
Insurance revenue (A) 5b/5d 1,892.8 199.3 2,092.1 2,011.7
Insurance expenses (B) 5c (430.8) (27.8) (458.6) (458.6)
Claims incurred (C) 5c/5d (1,367.8) (28.3) (1,396.1) (1,376.7)
Claims releases (D) 5c/5d 285.6 3.3 288.9 229.3
Quota share reinsurance result (1 3) (154.4)
Onerous loss component movement (2) 2.4
Underwriting result (E) 253.7
Net share scheme costs (3) (16.6)
Insurance service result 237.1
Reported loss ratio ((C+D)/A) 57.0%
Reported expense ratio (B/A) 22.8%
Insurance service margin (E/A) 12.6%
31 December 2024
£m Consolidated Financial Statement Note Core product Ancillary income Total gross Total, net of XoL reinsurance
Insurance premium revenue 4,118.2 164.6 4,282.8 4,119.0
Administration fees, instalment income and non-separable ancillary commission — 270.6 270.6 270.6
Insurance revenue (A) 5b/5d 4,118.2 435.2 4,553.4 4,389.6
Insurance expenses (B) 5c (882.9) (64.5) (947.4) (947.4)
Claims incurred (C) 5c/5d (2,846.4) (61.1) (2,907.5) (2,850.1)
Claims releases (D) 5c/5d 553.0 3.2 556.2 421.4
Quota share reinsurance result (1 3) (277.6)
Onerous loss component movement (2) 1.5
Underwriting result (E) 737.4
Net share scheme costs (3) (35.3)
Insurance service result 702.1
Reported loss ratio ((C+D)/A) 55.3%
Reported expense ratio (B/A) 21.6%
Insurance service margin (E/A) 16.8%
1 Quota share reinsurance result excludes quota share reinsurers’ share of
share scheme costs and movement in onerous loss-recovery component
2 Onerous loss component movement is shown net of all reinsurance
3 Net share scheme costs of £23.4 million (30 June 2024: £16.6 million,
31 December 2024: £35.3 million), being gross costs of £36.5 million
(30 June 2024: £26.0 million, 31 December 2024: £56.1 million, see note
5c) less reinsurers’ share of share scheme costs of £13.1 million (30 June
2024: £9.4 million, 31 December 2024: £20.8 million) are excluded from the
underwriting result.
1b. Reconciliation of reported loss and expense ratios: UK Motor
30 June 2025
£m Consolidated Financial Statement Note Core product Ancillary income (1) Total gross Total, net of XoL reinsurance Core product, net of XoL
Total premiums written 1,998.5 93.6 2,092.1 2,049.8 1,956.2
Gross premiums written 1,636.8 93.6 1,730.4 1,695.8 1,602.2
Insurance premium revenue 1,590.8 75.3 1,666.1 1,620.4 1,545.1
Instalment income — 84.2 84.2 84.2 —
Administration fees & non-separable ancillary commission — 24.9 24.9 24.9 —
Insurance revenue (A) 5b/5d 1,590.8 184.4 1,775.2 1,729.5 1,545.1
Insurance expenses (B) 5c (260.6) (28.8) (289.4) (289.4) (260.6)
Claims incurred (C) 5c/5d (1,133.5) (22.8) (1,156.3) (1,139.3) (1,116.4)
Claims releases (D) 5c/5d 211.0 3.0 214.0 197.0 194.0
Insurance service result, gross of quota share reinsurance 407.7 135.8 543.5 497.8 362.1
Quota share reinsurance result (2) (56.5) (56.5)
Onerous loss component movement — —
Underwriting result (E) 441.3 305.6
Current period loss ratio (C/A) 65.9% 72.3%
Claims releases (D/A) (11.4)% (12.6)%
Reported loss ratio ((C+D)/A) 54.5% 59.7%
Reported expense ratio (B/A) 16.7% 16.9%
Insurance service margin (E/A) 25.5% 19.8%
30 June 2024
£m Consolidated Financial Statement Note Core product Ancillary income (1) Total gross Total, net of XoL reinsurance Core product, net of XoL
Total premiums written 2,163.4 87.1 2,250.5 2,183.3 2,096.2
Gross premiums written 1,715.3 87.1 1,802.4 1,749.2 1,662.1
Insurance premium revenue 1,383.9 64.7 1,448.6 1,402.1 1,337.4
Instalment income — 68.5 68.5 68.5 —
Administration fees & non-separable ancillary commission — 22.4 22.4 22.4 —
Insurance revenue (A) 5b/5d 1,383.9 155.6 1,539.5 1,493.0 1,337.4
Insurance expenses (B) 5c (264.1) (23.9) (288.0) (288.0) (264.1)
Claims incurred (C) 5c/5d (1,024.1) (25.0) (1,049.1) (1,032.0) (1,007.0)
Claims releases (D) 5c/5d 271.8 2.8 274.6 218.7 215.9
Insurance service result, gross of quota share reinsurance 367.5 109.5 477.0 391.7 282.2
Quota share reinsurance result (2) (132.0) (132.0)
Onerous loss component movement 0.8 0.8
Underwriting result (E) 260.5 151.0
Current period loss ratio (C/A) 69.1% 75.3%
Claims releases (D/A) (14.6)% (16.1)%
Reported loss ratio ((C+D)/A) 54.5% 59.2%
Reported expense ratio (B/A) 19.3% 19.7%
Insurance service margin (E/A) 17.4% 11.3%
31 December 2024
£m Consolidated Financial Statement Note Core product Ancillary income (1) 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) (55.7) (2,107.2) (2,078.1) (2,022.5)
Claims releases (D) 5c/5d 493.4 2.7 496.1 374.6 371.9
Insurance service result, gross of quota share reinsurance 931.7 239.9 1,171.6 981.1 741.0
Quota share reinsurance result (2) (228.8) (228.8)
Onerous loss component movement 1.1 1.1
Underwriting result (E) 753.4 513.3
Current period loss ratio (C/A) 63.5% 69.2%
Claims releases (D/A) (11.4)% (12.7)%
Reported loss ratio ((C+D)/A) 52.1% 56.5%
Reported expense ratio (B/A) 17.9% 18.2%
Insurance service margin (E/A) 23.0% 17.6%
1 Ancillary 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 £174.0 million (30 June 2024: £152.2 million, 31
December 2024: £321.8 million).
2 Net share scheme costs of £19.7 million ( 30 June 2024: £13.9 million,
31 December 2024: £29.6 million), being gross costs of £27.3 million (
30 June 2024: £19.1 million, 31 December 2024: £40.7 million, see note 5c)
less reinsurers’ share of share scheme costs of £7.6 million (30 June
2024: £5.2 million, 31 December 2024: £11.1 million) are excluded from the
underwriting result.
1c. Reconciliation of reported loss and expense ratios: UK Non-Motor
30 June 2025
£m Consolidated Financial Statement Note UK Household UK Travel & Pet UK Non-Motor UK Household, net of XoL reinsurance UK Travel & Pet, net of XoL reinsurance
Insurance revenue (A) 5b/5d 253.8 80.4 334.2 240.8 80.1
Insurance expenses (B) 5c (56.4) (35.2) (91.6) (56.4) (35.2)
Claims incurred in the period (C) 5c/5d (162.3) (51.1) (213.4) (159.7) (51.1)
Changes in liabilities for incurred claims (releases) (D) 5c/5d 21.2 4.6 25.8 14.1 4.6
Insurance service result, gross of quota share reinsurance 56.3 (1.3) 55.0 38.8 (1.6)
Quota share reinsurance result (1) (20.4) —
Onerous loss component movement 0.1 —
Underwriting result (E) 18.5 (1.6)
Current period loss ratio (C/A) 66.4% 63.8%
Claims releases (D/A) (5.9)% (5.8)%
Reported loss ratio ((C+D)/A) 60.5% 58.0%
Reported expense ratio (B/A) 23.4% 44.0%
Insurance service margin (E/A) 7.7% (1.9)%
30 June 2024
£m Consolidated Financial Statement Note UK Household UK Travel & Pet UK Non-Motor UK Household, net of XoL reinsurance UK Travel & Pet, net of XoL reinsurance
Insurance revenue (A) 5b/5d 179.6 42.2 221.8 167.2 41.7
Insurance expenses (B) 5c (46.5) (26.1) (72.6) (46.5) (26.1)
Claims incurred in the period (C) 5c/5d (115.9) (22.1) (138.0) (113.5) (22.1)
Changes in liabilities for incurred claims (releases) (D) 5c/5d 37.9 (0.4) 37.5 32.1 (0.4)
Insurance service result, gross of quota share reinsurance 55.1 (6.4) 48.7 39.3 (6.9)
Quota share reinsurance result (1) (32.8) —
Onerous loss component movement — —
Underwriting result (E) 6.5 (6.9)
Current period loss ratio (C/A) 67.9% 53.0%
Claims releases (D/A) (19.2)% 0.9%
Reported loss ratio ((C+D)/A) 48.7% 53.9%
Reported expense ratio (B/A) 27.8% 62.8%
Insurance service margin (E/A) 3.9% (16.6)%
31 December 2024
£m Consolidated Financial Statement Note UK Household UK Travel & Pet UK Non-Motor UK Household, net of XoL reinsurance UK Travel & Pet, net of XoL reinsurance
Insurance revenue (A) 5b/5d 399.6 104.3 503.9 376.4 103.4
Insurance expenses (B) 5c (102.9) (56.0) (158.9) (102.9) (56.0)
Claims incurred in the period (C) 5c/5d (233.7) (64.5) (298.2) (225.7) (65.0)
Changes in liabilities for incurred claims (releases) (D) 5c/5d 46.3 5.1 51.4 37.0 5.1
Insurance service result, gross of quota share reinsurance 109.3 (11.1) 98.2 84.8 (12.5)
Quota share reinsurance result (1) (61.2) —
Onerous loss component movement — —
Underwriting result (E) 23.6 (12.5)
Current period loss ratio (C/A) 60.0% 62.8%
Claims releases (D/A) (9.9)% (4.9)%
Reported loss ratio ((C+D)/A) 50.1% 57.9%
Reported expense ratio (B/A) 27.3% 54.2%
Insurance service margin (E/A) 6.3% (12.1)%
1 Net share scheme costs for UK Household of £1.3 million (30 June 2024:
£0.7 million, 31 December 2024: £1.6 million), being gross costs of £4.3
million (30 June 2024: £2.4 million, 31 December 2024: £5.4 million, see
note 5c) less reinsurers’ share of share scheme costs of £3.0 million
(30 June 2024: £1.7 million, 31 December 2024: £3.8 million) are excluded
from the underwriting result.
1d. Reconciliation of reported loss and expense ratios: European Insurance
30 June 2025
£m Consolidated Financial Statement Note Total gross Total, net of XoL reinsurance
Insurance revenue (A) 5b/5d 312.2 299.0
Insurance expenses (B) 5c (83.9) (83.9)
Claims incurred in the period less changes in liabilities for incurred claims (C) 5c/5d (221.3) (210.0)
Insurance service result, gross of quota share reinsurance 7.0 5.1
Quota share reinsurance result (1) (6.8)
Onerous loss component movement (0.2)
Underwriting result (D) (1.9)
Reported loss ratio (C/A) 70.2%
Reported expense ratio (B/A) 28.1%
Insurance service margin (D/A) (0.6)%
30 June 2024
£m Consolidated Financial Statement Note Total gross Total, net of XoL reinsurance
Insurance revenue (A) 5b/5d 300.4 282.3
Insurance expenses (B) 5c (83.2) (83.2)
Claims incurred in the period less changes in liabilities for incurred claims (C) 5c/5d (216.4) (214.4)
Insurance service result, gross of quota share reinsurance 0.8 (15.3)
Quota share reinsurance result (1) 10.5
Onerous loss component movement 1.6
Underwriting result (D) (3.2)
Reported loss ratio (C/A) 75.9%
Reported expense ratio (B/A) 29.5%
Insurance service margin (D/A) (1.1)%
31 December 2024
£m Consolidated Financial Statement Note Total gross Total, net of XoL reinsurance
Insurance revenue (A) 5b/5d 606.7 572.7
Insurance expenses (B) 5c (168.0) (168.0)
Claims incurred in the period less changes in liabilities for incurred claims (C) 5c/5d (445.9) (437.7)
Insurance service result, gross of quota share reinsurance (7.2) (33.0)
Quota share reinsurance result (1) 12.4
Onerous loss component movement 0.4
Underwriting result (D) (20.2)
Reported loss ratio (C/A) 76.4%
Reported expense ratio (B/A) 29.3%
Insurance service margin (D/A) (3.5)%
1 Net share scheme costs of £1.7 million (30 June 2024: £1.3 million,
31 December 2024: £2.8 million), being gross costs of £4.3 million
(30 June 2024: £3.8 million, 31 December 2024: £8.6 million, see note 5c)
less reinsurers’ share of share scheme costs of £2.6 million (30 June
2024: £2.5 million, 31 December 2024: £5.8 million) are excluded from the
underwriting result.
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 to date.
2a. Additional sensitivities to interest rate risk
30 June 2025
Insurance contract liabilities and reinsurance contract assets Cash and investments
Impact on profit before tax gross of reinsurance £m Impact on profit before tax net of reinsurance £m Impact on profit before tax £m
Increase of 100 basis points 14.2 14.2 11.8
Decrease of 100 basis points (15.4) (15.4) (11.8)
Increase of 200 basis points 27.4 27.4 23.6
Decrease of 200 basis points (32.4) (32.4) (23.6)
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)
* 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 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).
*
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 from continuing operations. 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 Motor 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.
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 from continuing operations. 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.
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 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.
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”).
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 promoter 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.
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.
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.
Responsibility statement of the directors in respect of the half-yearly
financial report
We confirm that to the best of our knowledge:
• the condensed set of financial statements has been prepared in accordance
with the UK-adopted IAS 34 'Interim Financial Reporting' and gives a true and
fair view of the assets, liabilities, financial position and profit or loss of
the Group.
• the interim management report includes a fair review of the information
required by:
a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial statements;
and a description of the principal risks and uncertainties for the remaining
six months of the year; and
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.
By order of the Board,
Geraint Jones
Chief Financial Officer
13 August 2025
INDEPENDENT REVIEW REPORT TO ADMIRAL GROUP PLC
Conclusion
We have been engaged by the company to review the condensed consolidated set
of financial statements in the half-yearly financial report for the six months
ended 30 June 2025 which comprises the Condensed Consolidated Income
Statement, the Condensed Consolidated Statement of Comprehensive Income, the
Condensed Consolidated Statement of Financial Position, the Condensed
Consolidated Statement of Changes in Equity, the Condensed Consolidated Cash
Flow Statement, and related notes 1 to 14.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with United Kingdom adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom’s Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 “Review of Interim Financial Information Performed by
the Independent Auditor of the Entity” issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with United Kingdom adopted international accounting
standards. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34, “Interim Financial
Reporting”.
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom’s Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the group’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
company or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our Conclusion, including our
Conclusion Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review 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, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, United Kingdom
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