REG-Admiral Group Plc Full Year 2025 Results
Today 07:00
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5 March 2026
2025 Results Highlights
Admiral Group reports record profits for 2025 with strong contributions from
across the Group
31 December 2025 31 December 2024 % change vs. 2024
Group profit before tax from continuing operations (2) £957.9m £826.5m +16%
Earnings per share from continuing operations (2) 247.4p 212.8p +16%
Dividend per share 205.0p 192.0p +7%
Return on equity (1) 53% 56% -3pts
Group turnover (1 2) £5.90bn £5.95bn -1%
Insurance revenue (2) £4.98bn £4.55bn +9%
Group risks (1 2) 11.8m 11.0m +7%
UK insurance risks (1) 9.6m 8.8m +9%
European insurance risks (1) 1.9m 2.0m -2%
Admiral Money gross loan balances £1.46bn £1.17bn +24%
Solvency ratio (post-dividend) (1) 193% 203% -10pts
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.
Over 13,000 employees will each receive free share awards worth up to £1,800
under the employee share schemes based on the full year 2025 results.
Comment from Milena Mondini de Focatiis, Group Chief Executive Officer:
“2025 was an exceptional year for Admiral, reflecting the strength of our
business model, our discipline and the quality of execution across the Group.
We reported record profits, continued to grow our customer base and diversify
our business, while maintaining momentum in how we invest and innovate.
“The Group reported profit of £958 million, up 16 per cent, supported by
customer growth of 7 per cent. UK Motor delivered an exceptional performance,
surpassing £1 billion of profit, while our other UK personal lines, Admiral
Money and European Motor operations together generated nearly £100 million of
profit, with strong results in France and a rapid recovery in Italy.
“Our focus on customers remains central. Investment in our digital journeys,
app functionality and product development continue to improve everyday
experiences for customers, underpinned by our customer promise of value, trust
and ease. This is reflected in consistently strong service outcomes, and Group
Net Promoter Scores above 50.
“2025 was also a year of purposeful acceleration. We completed the
integration of More Than, continued to enhance our product range and increased
our investment in technology, data and artificial intelligence. We have
established a GenAI Centre of Excellence to move from experimentation to
scale, with early pilots showing encouraging signs of improved efficiency and
enhanced customer outcomes.
“In early 2026, we announced plans to acquire Flock, a fast‑growing,
telemetry‑based digital fleet insurer. This reflects our intention to expand
into attractive markets, where our data‑led approach and risk expertise can
also support better safety and customer outcomes.
“As we refresh our strategy, our focus is on compounding Admiral’s
strengths in data, technology, diversified products and operational excellence
to drive greater efficiency, stronger customer retention and long‑term value
creation, particularly through multi‑product relationships. Our strong
financial position also provides flexibility to continue investing in the
business and support future shareholder returns.
“At the start of 2026, we announced that Geraint Jones will retire as Group
CFO this summer. Geraint has made an outstanding contribution to Admiral and
played a central role in shaping Admiral’s performance and culture. I am
pleased he will continue to support the Group in a part-time role, and I look
forward to working with Rachel Lewis, who will become Group CFO on 1 July
2026, bringing deep business knowledge, leadership and a proven track-record
of delivery.
“Admiral enters the next phase of its strategy in a position of strength.
Our culture, people and disciplined approach remain central to everything that
we do and I would like to thank our colleagues across the Group for their
continued commitment to our customers and to each other.”
Final Dividend
The Board has proposed a dividend of 90.0 pence per share (2024: 121.0 pence
per share) representing a normal dividend (65% of post-tax profits) of 72.8
pence per share and a special dividend of 17.2 pence per share. The final
dividend will be paid on 5 June 2026. The ex-dividend date is 7 May 2026,
and the record date is 8 May 2026.
Management presentation
Analysts and investors will be able to access the Admiral Group management
presentation which commences at 10.00 GMT on Thursday 5 March 2026 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/full-year-results-2025. 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
Chair Statement
2025 has been another excellent year for the Group. Despite falling prices in
the UK motor insurance market, ongoing political and regulatory scrutiny of
the sector and uncertain macroeconomics, the Group has continued to perform
strongly by staying focused on its key objectives.
As a leading financial services provider, Admiral’s purpose is simple: to
help more people look after their financial futures by supporting them as
quickly and safely as possible when misfortune strikes. Our colleagues strive
every day to bring this promise to life when our customers most need us.
The markets and countries in which the Group operates continue to shift –
through consolidation, rapid advances in technology, new mobility trends and
changing consumer behaviour. However, Admiral’s customer focus, combined
with its underwriting and operational expertise, proven agility and
willingness to invest and innovate using data and technology, mean we are
well-placed to anticipate and respond to these changes. That willingness to
adapt can be seen in our investment in technology and predictive AI, our
growing electric vehicle book, our progress in connected-car and telematics
technology, and our long-standing partnership with Wayve.
To continue to stay ahead, the Group is also actively managing its portfolio
of businesses and focussing on markets where it can win. The Group has now
completed the acquisition of More Than and the sale of its US business. We
wish the Elephant team well as they embark on their new chapter under the
ownership of JC Flowers.
The Group now serves nearly 12 million customers in four countries with
multiple products. Our ongoing focus will be on countries, customer segments
and products where we believe we have the right to win.
In early 2026 we announced our agreement to acquire Flock, a fast-growing
digital fleet insurance provider with an innovative telemetry-based
proposition. The transaction, which is subject to regulatory approval, builds
on the Group’s existing expertise in telemetry in the personal lines market,
allowing the business to support a broader set of customers as mobility
trends change.
As a group, we are committed to positively impacting the environment and our
communities. As a provider of home insurance, our colleagues see the
devastating impact of flooding and support those who have been impacted.
Through the Group’s new partnership with the National Trust we hope to make
a real difference to people through natural flood management initiatives.
Admiral’s unique culture continues to be one of its greatest strengths. This
year, we were once again recognised as one of the best workplaces in the
world, with the UK business celebrating its 25th consecutive year on the list
–achieving “legendary" status. This recognition reflects the commitment
our colleagues show to each other every day.
At the start of 2026, it was announced that Geraint Jones will retire from his
role as Group CFO this summer. I would like to extend my sincere gratitude to
Geraint as he has helped to guide the company through a period of consistent
and sustained growth. We are pleased that he will remain with the Group in a
part time capacity and the Board are looking forward to working even more
closely with his successor, Rachel Lewis.
In 2025, Paola Bonomo and Carlos Selonke joined the Group Board. Both have
extensive experience in digital transformation, gained whilst working for
well-known consumer-facing brands. I am confident in the quality and mix of
skills of the Board and our ability to leverage this deep knowledge and
insight to support the business to deliver its commercial and strategic
objectives.
The Group’s strong 2025 performance was the result of a true team effort.
The dedication and agility of Admiral colleagues, coupled with the investment
the Group has made, and continues to make, into its technology and core
competencies mean that it is well-positioned to continue to deliver long-term
sustainable growth.
Mike Rogers
Group Chair
4 March 2026
Group Chief Executive Officer’s Review
2025 was another remarkable year for Admiral. We achieved record profits of
£958 million up 16 percent, underpinned by strong performances across the
Group, while growing our customer base by 7 percent and continuing to
provide great service.
We also made important progress beyond financial results, advancing our
strategy, strengthening our platform for growth, and investing in capabilities
that position Admiral well for the future.
The UK motor market has remained softer for longer than expected, but our
strong focus and execution drove excellent results in our core business. Our
UK other personal lines businesses and Admiral Money contributed £88 million
in profit. Europe also performed well, with strong growth and profitability in
France and a rapid recovery in Italy.
We further increased our returns to shareholders, with a 7 percent increase in
dividend per share, and maintained a strong capital position, with a solvency
ratio at 193%.
2025 marked an acceleration in our strategic progress. We completed the
integration of More Than, which is now contributing positively to our
results, and finalised the sale of Elephant. Though it is always hard to say
goodbye to colleagues, we believe this outcome benefits both businesses,
letting us focus on exciting opportunities in the UK and Europe.
In early 2026, we announced plans to acquire Flock, a fast-growing digital
fleet insurance provider we have invested in and partnered with since 2024.
Flock’s telemetry-based insurance uses data to improve safety and
performance. Combining their sector expertise and technology with our data,
claims management, and pricing strengths, we aim to grow in a large market
ripe for disruption, and support our “safer driving” ambitions.
Another key milestone was the forward-flow arrangement in Admiral Money, which
allows us to continue to grow, but in a capital-efficient way similar to our
insurance model.
We accelerated our investment in artificial intelligence and established a
GenAI Centre of Excellence that is scaling priority use cases and equipping
our people with the right tools. Early insights suggest significant potential
for efficiency and productivity gains. Across the Group, we are now managing
over 150 GenAI initiatives across different businesses and functions,
including real-time support for more than 4,000 colleagues and the first
implementations of agentic technology.
Over the last five years, since the Group strategy was announced in 2020,
turnover has grown by 87 percent, profit by 56 percent, and our customers by
58 percent. Since the start of 2020, we have also returned £3.2 billion of
capital to shareholders.
Admiral is now more resilient and diversified, with over half our customers
from lines or geographies other than UK Motor, contributing nearly £100
million to profits in 2025. Our UK Motor business continues to grow,
maintaining a more than 20-point combined ratio advantage over the market.
Since 2020, we have significantly expanded our addressable markets, moving
into broker channels in Europe and launching pet insurance and commercial
insurance in the UK. The markets we operate in have a combined size of around
£130 billion, so there is plenty of room to grow.
We continue to enhance our motor offering and invest early in emerging
trends, establishing a leading position in electric vehicle insurance and
partnering with Octopus to insure salary‑sacrifice EV schemes. Our
telematics product keeps growing, and we are testing insurance for autonomous
vehicles – expected to be about 4% of the car parc by 2035 – through our
partnership with Wayve. Our strengths in data and telematics mean we are
well-placed to respond to evolving mobility trends.
We invested early and effectively in machine learning and predictive AI,
strengthening our leadership in underwriting with over 120 models live, one of
the drivers of our twelve points advantage in loss ratio versus the market. We
have fully embedded scaled agile and renewed our tech stack, with over 90
percent of core systems on the cloud.
We are now faster, and more agile, and have kept our cost effectiveness and
unique culture. A massive thank you goes out to the 15,000 brilliant
colleagues right across Admiral – the real driving force behind all these
achievements, with their unwavering dedication to our customers, the business
and each other.
As we have now achieved the key objectives of the Group strategy announced in
2020, we are taking the opportunity to refresh it. More details below, but the
approach is to compound our existing strengths in data, technology,
diversified products, and operational expertise to drive greater efficiency,
economies of scale, and stronger customer retention across single and
multi-product policies. We plan to keep growing UK Motor with discipline and
drive margin improvement in other lines to deliver even stronger shareholder
returns, while amplifying the Admiral DNA through evolving our culture,
continuing to develop our people and acting to positively impact our
communities.
At the start of the year, we announced that Geraint Jones will retire as Group
CFO in the summer. Over many years, Geraint has played a key role in shaping
Admiral – not just through his financial leadership, but through the values,
integrity and great role modelling he brings to everything he does. He truly
embodies Admiral culture and has been a highly valued colleague, trusted
adviser and friend to so many of us. I am pleased that he will continue to
support the Group in a part-time capacity, and that we have once again been
able to promote from within for his replacement.
Rachel Lewis, currently CFO for UK Insurance, will become Group CFO on 1 July
2026. I look forward to working with Rachel, whose commercial finance skills
and deep business knowledge make her a great CFO for our organisation.
We also announced Emma Powell’s promotion to CEO for Admiral Money following
Scott Cargill’s move to the new Household, Travel and Pet Director role in
UK Insurance.
Our strong record in internal talent development and upskilling is why people
choose Admiral and one of the many reasons why we are recognised as a Great
Place to Work in all our markets.
Our origins as a disruptor have shaped our agile, efficient culture, allowing
us to respond quickly to latest trends. Combined with our customer focus,
diversification opportunities, and investment in people and technology, I am
confident Admiral is well-positioned for success in 2026 and beyond.
Milena Mondini de Focatiis
Group Chief Executive Officer
4 March 2026
Group Strategy refresh
The Group has announced a refreshed strategy, to accelerate value creation
using the strong platforms we have built and invested in. Our strategy is
based on three pillars:
1. Scaling selectively and profitably by continuing to grow our UK Motor
business with discipline, while driving improved margins in our newer lines
2. Future-proofing our competitive advantage by leveraging our cost-effective
operations and investment in data along with ongoing customer focus, GenAI
adoption and automation, to increase customer lifetime value, providing
greater resilience and flexibility
3. Amplifying the Admiral DNA by evolving our culture, developing our people
and taking actions that positively impact our communities.
Further details are provided in the Group’s 2025 Annual Report and Accounts.
Group Chief Financial Officer’s Review
After setting a pretty high bar in 2024, Admiral’s 2025 results exceeded
(sometimes significantly) those of the prior year in practically all aspects.
Group pre-tax profit of £958 million was a record result, and if we exclude
the impact of Ogden (see below) on both years, then the year-on-year increase
of 28% is some achievement. UK Motor insurance breaking through £1 billion
of profit for the first time was a decent milestone, and it was especially
great to report some excellent results beyond that – the UK Home, Travel and
Pet result was just under three times 2024’s, Admiral Money’s profit
doubled and the European result improved by nearly £30 million after the
disappointing Italian result of 2024. Our main Other personal lines (excluding
UK Motor) reported a combined result of £95 million in 2025 vs. £15 million
in 2024 – important and significant progress. I’m really happy with these
results, but importantly we have good momentum moving into 2026 and beyond.
We end the year with a strong financial position and very prudent reserves (as
usual), and beyond the numbers we have a refreshed Group strategy, a new
approach to returning capital to shareholders, likely an imminent application
for internal capital model approval and (subject to regulator approval), a new
business to integrate into the Group following the announcement of the
acquisition of Flock!
Looking in a bit more detail at the results:
£m 2025 2024 Change vs. 2024
UK Motor Insurance 1,024 955 +69
UK Other Insurance Lines 62 22 +40
Europe 7 (20) +27
Admiral Money 26 13 +13
Share schemes (72) (61) -11
Other (89) (82) -7
Total 958 827 +131
Impact of change in Ogden DR (1) +30 +100 -70
1 For the year ended 31 December 2024, the results include a gain of £100
million related to the change in the Ogden rate from -0.25% to 0.5%. The
impact of Ogden in 2025 is circa £30 million.
The UK Motor business rightly takes centre stage, with a £69 million
increase in profit (£139 million if the impact of Ogden is excluded). The
combined ratio remained very positive at 75% (vs. 73% on a like-for-like
basis). Total premium was lower than 2024 as prices reduced, reflecting
improving claims inflation but also a competitive market. Market prices
appear to have plateaued around the end of 2025, and we expect prices
to start increasing in the not-too-distant future (and have increased our own
motor prices in early 2026).
Our UK Other Lines businesses had a very strong year, completing the migration
of the More Than policies acquired from RSA, growing customer numbers by 21%
and increasing profits nearly threefold – really strong performance from a
part of the business where we plan to maintain growth.
Having called out the Italian result as a disappointment in 2024, it was very
positive to see a strong recovery in the European bottom line, which was
nearly £30 million better than 2024. We saw good growth and higher profit in
France and a small profit in Italy (though at the expense of a smaller
portfolio as we expected). In Spain the result was a little worse on the
bottom line, though this was mainly due to new reinsurance contracts taking
effect (the gross results improved). All in all a very satisfactory year in
Europe and we expect further growth and improvement in results over the
coming years.
And finally, a really good year from Admiral Money where profits doubled to
£26 million, loans balances grew strongly and we started to effectively use
third-party capital in the business with a new forward flow arrangement
contributing to profits and higher return on capital.
More detailed comments on performance follow throughout the report.
Internal model
We have been developing an internal capital model to be used to calculate the
Group capital requirements. Intense work has continued over the past year and
we are now very close to the point of submitting our formal application for
approval to our main prudential regulators.
The regulators’ review will take some time, and we will communicate further
on the results of the process and the impact on Admiral’s capital position
and solvency risk appetite soon.
Capital return change
We have announced that from the interim 2026 dividend onwards, we will change
the way we return surplus capital to shareholders. Historically we have paid
special dividends, but from the middle of 2026 we will either pay a special
dividend, or buy back and cancel shares based on Board determination. We
don’t generally expect the change itself to mean a different amount
of capital is either returned to shareholders or used to buy shares for the
employee shares plans (currently guided to total ~90% of post-tax profit).
And for 2026 interim and final dividends we expect to buy back shares as
opposed to paying special dividends.
Why change? In our view the balance of arguments has tipped in favour of
buying back over special dividends (in part due to changes to staff bonus
schemes to delink from dividends), and this was further supported by a
consultation of our largest shareholders during 2025, which indicated
a majority in favour of a change in approach. We will, as always, continue to
invest appropriately for growth and the long term, and this change only
applies to surplus capital.
Signing off
This is my twelfth and final Annual Report CFO Review. Notable in my first
report, back in 2014, was much thicker brown(ish) hair and, according to Mrs
Jones, much chubbier cheeks, which I’m taking as a half-compliment. Lots has
changed since 2014, including quite a number of businesses I was commenting on
then no longer being part of the group (including of course Elephant in the US
where the sale completed at the end of 2025) but much remains the same – a
leading UK personal lines insurance business and growing, exciting businesses
beyond that; a deep focus on doing our best for customers and an amazing
culture.
I will hugely miss working day-to-day with my amazing colleagues but am glad
to be able to hang around and help in a part-time role. I’m delighted that
Rachel Lewis, who I know well, will be taking over as CFO from July 2026.
She’ll do an amazing job!
Geraint Jones
Group Chief Financial Officer
4 March 2026
2025 Group Overview
£m 2025 2024 % change vs. 2024 ( 4)
Group turnover (1 3 5) £5.90bn £5.95bn -1%
Net insurance and investment result (5) 884.2 785.8 +13%
Net interest income from financial services 89.0 76.3 +17%
Other income and expenses 8.7 (9.2) nm
Operating profit ( 5) 981.9 852.9 +15%
Group profit before tax from continuing operations 957.9 826.5 +16%
Group profit before tax from discontinued operations (3.1) 12.7 nm
Group profit before tax 954.8 839.2 +14%
Analysis of profit
UK Insurance ( 6) 1,086.3 976.7 +11%
UK Insurance (Ogden -0.25%) (6) 1,056.3 876.4 +21%
European Insurance 6.6 (19.7) nm
European Insurance - Motor 9.3 (14.8) nm
European Insurance - Other (2.7) (4.9) +45%
Admiral Money 25.8 13.0 +98%
Other (160.8) (143.5) -12%
Group profit before tax from continuing operations (5) 957.9 826.5 +16%
Key metrics
Reported Group loss ratio (1 2 5) 59.2% 55.3% +3.9pts
Reported Group expense ratio (1 2 5) 20.9% 21.6% -0.7pts
Reported Group combined ratio (1 2 5) 80.1% 76.9% +3.2pts
Insurance service margin (1 2 5) 17.3% 16.8% +0.5pts
Group risks (million) (1 5) 11.77 10.97 +7%
Earnings per share 246.4p 216.6p +14%
Earnings per share from continuing operations 247.4p 212.8p +16%
Dividend per share 205.0p 192.0p +7%
Return on equity (1) 53% 56% -3pts
Solvency ratio (1) 193% 203% -10pts
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. 2024 comparatives are re-presented to
exclude the US Insurance result following its sale.
6 For the year ended 31 December 2024, the result included a gain of £100
million related to the change in Personal injury discount rate ("Ogden") from
-0.25% to +0.5% (see Glossary for further information).The estimated impact of
Ogden in 2025 is circa £30 million.
Group highlights
* Group continuing operations pre-tax profit was £957.9 million, 16% higher
than 2024, with improved results reported across all segments
* Group risks insured increased by 7% to 11.8 million, with good growth in UK
Insurance (in particular 21% across Home, Travel and Pet); though a small
reduction in Europe (2%) due to portfolio actions in Italy
* Group turnover was broadly flat as continued growth in UK Other Personal
lines was offset by lower UK Motor turnover (7%) as average premiums reduced
* UK Motor Insurance profit increased by 7% to £1,024.0 million from £955.1
million. The increase in profit excluding the Ogden impact was 16% (£994
million vs £855 million), with a strong current year combined ratio due to
disciplined growth in a competitive market
* Higher pre-tax profit in UK Household Insurance of £54.4 million (2024:
£34.1 million) as the growth and favourable performance from 2024 fully earns
through. Profits also increased in UK Travel with a break even result in UK
Pet
* A significantly improved result in European Insurance (£6.6 million profit
vs. £19.7 million loss), with increased profits in L’olivier and a return
to profit in Italy
* Admiral Money profit up, to £25.8 million (2024: £13.0 million) and gross
loan balances of £1.46 billion (+24% year-on-year growth) – new forward
flow arrangements and a sale of a portion of the back book loan portfolio
contributing to the higher pre-tax profits.
Sale of Elephant
As announced in January 2026, the Group has completed the sale of 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, effective as at 31 December 2025. The Elephant result for
2025 is 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 2025 were 247.4 pence (2024:
212.8 pence). The increase from 2024 is broadly aligned to the increase
in continuing operations pre-tax profit.
Return on equity
Return on equity was 53% for 2025, 3 points lower than the 56% reported for
2024. Excluding the impact of Ogden in both years, return on equity was
broadly flat.
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.
Subject to regulatory approval, from the interim 2026 dividend this policy
will change such that in addition to the normal dividend, the Group will
either pay a special dividend and/or buy back and cancel shares based on Board
determination. See the Group Capital Structure section later in this report
for further information.
The Board has proposed a final dividend of 90.0 pence per share
(approximately £274.6 million) splits as follows:
* 72.8 pence per share normal dividend
* A special dividend of 17.2 pence per share.
The final dividend, plus share purchases for the employee share scheme made
in late 2025, equate to 90% of second half continuing operations post-tax
profits; excluding share purchases, the final dividend reflects a pay-out
ratio of 81%. The dividend of 90.0 pence per share is 26% lower than the final
2024 dividend (121.0 pence per share), reflective of share purchases
and lower second half earnings per share.
The 2025 final dividend payment date is 5 June 2026, ex-dividend date 7 May
2026, and record date 8 May 2026.
UK Insurance Review – Alistair Hargreaves, CEO UK Insurance
Our customer centricity, Motor operational excellence, disciplined cycle
management, and growing Home, Travel and Pet businesses all combined to
result in us welcoming 780,000 new customers, sustain our market-leading
combined ratio and deliver £1.1 billion profit before tax, whilst having an
industry leading Trustpilot customer rating of 4.5.
In Motor, 2025 saw positive claims trends, with severity moderating and
frequency improving. These trends translated into falling motor premiums,
which is good news for motorists and demonstrates how highly competitive this
market is. We welcomed the Government’s motor taskforce’s final report
in December, which recognised this and the direct link between claims costs
and motor premiums.
The 2025 market dynamic of declining premiums and continued moderation of
claims inflation required our disciplined pricing approach. We reduced prices
slightly less than the market in the first half of the year, then kept prices
broadly flat in the second half as market prices continued to decline. This,
combined with continued growth through MultiCar and MultiCover, a focus on
electric vehicles with a market share that is now 20%, and strong retention,
enabled us to deliver a strong loss ratio, whilst growing modestly to the end
of the year with 5.8 million Motor customers. We were pleased that we
simultaneously delivered efficiency savings resulting in a reduced cost
per risk, whilst maintaining very strong service levels, with overall NPS
>55. This all culminated in an increased profit before tax of £1.1 billion
for all UK Insurance.
2025 saw a step change for Other UK Personal Lines, as we proved we can
replicate our UK Motor operational excellence in distribution, pricing, and
claims management, to deliver good customer outcomes and sustainable profits.
Across Pet, Home and Travel, we grew by 21% and now cover 3.8 million
customers. This growth was both organic, with MultiCover a key driver for
household, and inorganic with the successful completion of the More Than Home
and Pet renewal migration. Turnover rose to £756 million, and profit before
tax to £62.3 million, with record results in Home and Travel, and Pet
achieving break-even just three years since its launch. We’re pleased with
this progress, in markets totalling £11 billion, we have top five market
positions and are confident we can achieve top three market positions with
market leading combined ratios.
We continue to invest to further improve customer journeys and this has
supported us to reach 1.6 million unique customers with two or more risks.
We’ve built strong capability in predictive AI, accelerating machine
learning model deployment in pricing and claims. In 2025, we laid good
foundations in GenAI and Agentic AI to enhance our operational excellence.
This includes completion of a wide range of proof of concepts and scaling some
processes; call summarisation is now deployed to over a third of agents.
Ongoing investments in cyber and operational resilience ensure we operate at
a market-leading standard.
The driving force of our business is our culture and people, we were extremely
proud to be named a Great Place to Work® for the 25th consecutive year,
receiving a Legendary Status™ as a result. We were again listed in the Top
Ten for both Great Places to Work®, and for Great Places to Work® for Women
and were recognised at the Women in Technology Excellence Awards.
2025 has been another good year for UK Insurance. By remaining disciplined
and customer focused, we have continued to grow profitably. Looking ahead,
some uncertainty remains around near-term market dynamics, but our strong
team and fundamentals give us a great platform to continue to provide value,
trust, and ease for customers and in doing so, make the most of our
opportunities for sustainable profitable growth in 2026 and beyond.
UK Insurance financial performance
£m 2025 2024
Turnover (1 2) 4,952.5 5,108.5
Total premiums written (1) 4,586.3 4,745.2
Insurance revenue 4,221.6 3,873.4
Underwriting result (1) 843.1 764.4
Net investment income 87.9 70.5
Co-insurer profit commission and net other revenue 155.3 141.8
UK Insurance profit before tax (1) 1,086.3 976.7
Segment result: UK Insurance profit before tax(1)
£m 2025 2024
Motor 1,024.0 955.1
Motor (Ogden -0.25%) (3) 994.0 854.8
Household 54.4 34.1
Travel and Pet 7.9 (12.5)
UK Insurance profit before tax (3) 1,086.3 976.7
Segment performance indicators(1)
2025 2024
Vehicles insured at period end 5.83m 5.69m
Households insured at period end 2.19m 1.97m
Travel and Pet policies at period end 1.56m 1.14m
Total UK Insurance risks 9.58m 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
Group reconciliation to statutory income statement measures.
3 For the year ended 31 December 2024, the result included a gain of £100
million related to the change in Personal injury discount rate (‘Ogden’)
from -0.25% to +0.5%. The estimated impact of Ogden in 2025 is circa £30
million.
Highlights for the UK Insurance business include:
* In UK Motor: * Profit of £1,024.0 million, 7% higher than 2024
(£955.1 million), 16% higher when excluding the impact of the change in
Ogden discount rate (£994.0 million vs. £854.8 million). Strong
profitability from underwriting year 2024 continued to earn through combined
with a disciplined approach to growth in 2025, resulting in a strong current
year combined ratio
* A 2% increase in risks insured – modest growth with Admiral focusing on
medium-term profitability in a more competitive market
* Turnover reduced by 7% due to rate reductions and a shift in sales mix from
new business to renewals, leading to lower average premiums.
* In UK Household: * Profit significantly increased to £54.4 million (2024:
£34.1 million) – a result of higher insurance revenue following growth in
2024 and 2025, along with continued relatively benign weather, and lower quota
share charges due to higher profit commission
* Continued growth in numbers of risks insured, of 11% to 2.19 million
(31 December 2024: 1.97 million)
* In UK Travel and Pet Insurance: * A combined profit for the first time
(2025: £7.9 million profit vs. 2024: £12.5 million loss). Travel profits
continue to grow, whilst Pet achieved a break even result
* Both businesses continued to grow their customer base and turnover through
organic means and as a result of the More Than renewals in Pet.
UK Motor Insurance financial review
Insurance revenue increased, despite lower written premiums, as a result of
the significant growth in 2024 continuing to earn through.
The current year loss ratio remained strong following disciplined growth in a
more competitive market, although the decrease in written premiums resulted in
a higher written expense ratio.
Quota share costs reduced in 2025, with underlying claims releases in 2024
resulting in a higher charge for the unwind of quota share assets on
underwriting years 2021–2023.
Favourable net investment income continues to be primarily driven by higher
investment balances.
£m 2025 2024
Turnover (1) 4,196.9 4,495.9
Total premiums written (1 2) 3,860.2 4,157.7
Insurance premium revenue (1) 3,306.2 3,160.5
Other insurance revenue (1) 205.3 209.0
Insurance revenue 3,511.5 3,369.5
Insurance revenue net of XoL (2 4) 3,429.6 3,271.4
Insurance expenses (1 2 3) (600.2) (586.8)
Insurance claims incurred net of XoL (2 4) (2,283.9) (2,078.1)
Insurance claims releases net of XoL (2 4) 310.4 374.6
Underwriting result, net of XoL reinsurance 855.9 981.1
Quota share reinsurance result (2 3) (60.7) (228.8)
Movement in onerous loss component net of reinsurance (2) — 1.1
Underwriting result (2) 795.2 753.4
Investment income 183.2 150.0
Net insurance finance expenses (102.9) (83.4)
Net investment income 80.3 66.6
Co-insurer profit commission 74.5 53.3
Other net income 74.0 81.8
UK Motor Insurance profit before tax (1 9) 1,024.0 955.1
UK Motor Insurance profit before tax (Ogden -0.25%) 994.0 854.8
2025 2024
Reported Motor loss ratio (1 2 5) 57.5% 52.1%
Reported Motor expense ratio (1 2 5) 17.5% 17.9%
Reported Motor combined ratio (1 2 5) 75.0% 70.0%
Reported Motor combined ratio (Ogden -0.25%) (1,2,9) 75.6% 73.2%
Reported Motor Insurance service margin (1 2 5) 23.2% 23.0%
Core Motor loss ratio before releases (1 2 6) 72.8% 69.2%
Core Motor claims releases (1 2 6) (10.0)% (12.7)%
Core Motor loss ratio (1 2 6) 62.8% 56.5%
Core Motor expense ratio (1 2 6) 17.7% 18.2%
Core Motor combined ratio (1 6) 80.5% 74.7%
Core Motor written expense ratio (1 2 7) 18.4% 16.8%
Vehicles insured at period end (1 2) 5.83m 5.69m
Other revenue per vehicle (2 8) £71 £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 results include a 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 2025 is circa £30 million.
Claims
Estimated claims inflation is stable, with Admiral's current estimate of
average claims cost inflation for full-year 2025 being mid-single digits
(2024: mid-to-high single digits). Admiral’s observed claims frequency has
marginally reduced.
As usual, the longer-term impacts of inflation on bodily injury claims remain
uncertain. Admiral did not observe material changes in inflation for bodily
injury claims settled in 2025, when compared to 2024. A prudent allowance
is held in the best estimate reserve to reflect potential impacts of higher
than historic levels of future wage inflation on certain elements of large
bodily injury claims reserves.
There is still uncertainty within motor claims across the market arising from
inflation, and future developments relating to economic, political and
regulatory changes. The Ogden discount rate of +0.5%, as announced
in December 2024, continues to be used within the best estimate reserves.
Admiral continues to hold a significant and prudent risk adjustment above best
estimate reserves, with the risk adjustment confidence level held at the 94th
percentile in UK Motor (31 December 2024: 95th percentile) and
at, or close to, the maximum across all lines of business.
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 reserve risk distribution from which the
percentile is selected since 2024.
As reported in H1 2025, 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 aligned to that reported in August 2025, at
approximately £50 million, around half of which has been accounted for in
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 started 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 62.8% (2024: 56.5%) 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
FY 2024 69.2% (12.7)% 56.5%
Prior period impact of Ogden change (-0.25% to +0.5%) 0.9% 2.7% 3.6%
FY 2024 (excluding Ogden impact) 70.1% (10.0)% 60.1%
Change in current period loss ratio 3.4% —% 3.4%
FY 2025 (excluding Ogden impact) 73.5% (10.0)% 63.5%
Impact of Ogden discount rate change (0.7)% —% (0.7)%
FY 2025 72.8% (10.0)% 62.8%
1 Core 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 core motor loss ratio before releases has remained strong in 2025 with
reduced average premiums leading to a modest increase of just over 3
percentage points, excluding the impact of Ogden.
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. Both the absolute value of releases and releases as a
percentage of premium are lower than that observed in 2024, with higher
releases on the best estimate in 2024 given the increase in Personal Injury
(‘Ogden’) Discount Rate.
Quota share reinsurance
Admiral’s quota share reinsurance result reflects the net movement on ceded
premiums, reinsurer margins and expected recoveries (claims and expenses,
excluding share scheme charges) for underwriting years on which quota share
reinsurance is in place (2021 underwriting year onwards).
The ‘Group capital structure’ section sets out further details
on Admiral’s UK Motor quota share arrangements.
Quota share reinsurance result(1)
£m 2025 2024 Quota share claims asset 31 December 2025
2022 and prior (34.6) (111.2) 52.0
2023 (1.0) (81.0) —
2024 (21.9) (36.6) —
2025 (3.2) — 39.4
Total (60.7) (228.8) 91.4
1 Quota share result in underwriting year 2025 includes a £15.3 million
recharge for the reinsurer’s assumed share scheme recoveries out of other
Group costs in line with prior period (2024: £ 11.1 million)
The significantly reduced quota share charge in 2025 is the result of:
* A lower quota share charge for the reinsurers’ share of favourable
developments on underwriting years 2021 and 2022, given lower comparative
releases net of XoL in 2025 relative to 2024 excluding the impact of Ogden
* The charge on underwriting years 2023 and 2024 reflecting only the cost of
the margin in 2025, given that these years are already profitable with no
remaining quota share asset at year-end 2024. In 2024, the charges were
significant, as a result of sharing the impact of favourable claims
development
* A small charge in 2025, reflecting the cost of the margin offset by the
recognition of a modest quota share asset on underwriting year 2025 due to the
booked combined ratio for underwriting year 2025 being over 100% on an
undiscounted basis.
Co-insurer profit commission
Co-insurer profit commission of £74.5 million is higher than in 2024 (£53.3
million).
In 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 2021-23, or 2025 where a cautious approach has been taken,
as usual, given the early stage of development.
Net investment income
Net investment income increased to £80.3 million from £66.6 million,
benefiting from higher investment income, which was partly offset by increased
net insurance finance expenses.
Investment income grew by 22% to £183.2 million (2024: £150.0 million),
primarily 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 increased by
23% in 2025 (£102.9 million; 2024 £83.4 million), impacted by both the
significant increase in risk-free rates from 2022 onwards, and the increasing
size of claims liabilities given the continued growth in the book.
A significant proportion of the insurance finance expense in 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.
Under IFRS 17, income from underwritten ancillaries, and an allocation of
instalment income and administration fees, in line with Admiral’s gross
share of the core motor product premium, are included within Insurance revenue
in the underwriting result. The remaining income from instalment income and
fees, as well as income from other non-underwritten ancillary products is
presented in other net income.
Overall contribution increased to £333.3 million (2024: £321.8 million),
primarily due to continued growth in customer numbers in the past year.
Other revenue was equivalent to £71 per vehicle (gross of costs) (2024:
£76), with net other revenue per vehicle at £58 per vehicle, (2024: £61)
the decrease being the result of lower instalment income due to lower average
premiums and a reduction in the rate of interest charged for this payment
method over the year.
UK Motor Insurance other revenue
£m 2025
Within underwriting result Other net income Total
Premium and revenue from additional products and fees (1) 157.9 88.0 245.9
Instalment income and administration fees (2) 205.3 43.2 248.5
Other revenue 363.2 131.2 494.4
Claims costs and allocated expenses (3) (103.9) (57.2) (161.1)
Net other revenue 259.3 74.0 333.3
Other revenue per vehicle (4) £71
Other revenue per vehicle net of internal costs £58
£m 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 2025 2024
Turnover (1) 538.3 475.4
Total premiums written (1) 508.9 450.3
Insurance revenue 521.0 399.6
Insurance revenue net of XoL (1) 494.6 376.4
Insurance expenses (1) (114.0) (102.9)
Insurance claims incurred net of XoL (1) (321.3) (225.7)
Insurance claims releases net of XoL (1) 19.2 37.0
Underwriting result, net of XoL reinsurance (1) 78.5 84.8
Quota share reinsurance result (1 3) (35.3) (61.2)
Underwriting result (1) 43.2 23.6
Net investment income 4.6 3.9
Other income 6.6 6.6
UK Household Insurance profit before tax (1) 54.4 34.1
Segment performance indicators
2025 2024
Reported Household loss ratio (1 2) 61.1% 50.1%
Reported Household expense ratio (1 2) 23.0% 27.3%
Reported Household combined ratio (1 2) 84.1% 77.4%
Household insurance service margin (1 2) 8.7% 6.3%
Household loss ratio before releases (1 2) 65.0% 60.0%
(Favourable) impact of weather on reported loss ratio vs budget (4) (1.0)% (7.9)%
Households insured at period end 2.19m 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, is disclosed relative to a budget expectation.
The UK Household Insurance business reported a record profit of £54.4
million, with strong growth in customers and turnover over 2024 and 2025
arising from both the renewal rights acquired through the More Than
acquisition, and organic growth, notably from Admiral’s multi-product
offering, now earning through.
Turnover of £538.3 million was 13% higher than 2024 (£475.4 million),
largely aligned to the increase in the number of homes insured, which
increased by 11%.
The net of XoL underwriting result was slightly lower than 2024, impacted by:
* A significant increase in insurance revenue arising from higher earned
premiums reflecting increases in both customers and price increases, primarily
during 2024 to reflect ongoing inflation
* A higher current period loss ratio of 65% (2024: 60%). Although weather was
not a significant factor, it was less benign than 2024 with more subsidence,
following the dry UK summer weather. The overall impact of weather was
considered slightly below a budget expectation, creating a net benefit to the
current period loss ratio of just under (1%) (2024: benefit of 7.9%)
* Lower prior year reserve releases of £19.2 million compared to an
exceptionally high 2024 (£37.0 million) – the comparative figure reflected
the unwind of reserves in relation to the freeze event in late 2022, along
with the impact of some unwind of storm events in 2023
* An improved expense ratio, with absolute expenses increasing due to ongoing
growth in the business, but at a lower rate than the increase in earned
premiums. Expenses in 2024 also included one-off IT integration costs related
to the More Than acquisition.
The quota share result for the period (a charge of £35.3 million compared to
£61.2 million in 2024) arises as a result of the proportional sharing of the
positive underlying underwriting result. The lower charge in 2025 is primarily
the result of profit commission recognition on underwriting year 2024, as that
year continues to perform favourably. No profit commission has been recognised
to date on underwriting year 2025.
UK Pet and Travel Insurance financial review
£m 2025 2024
Turnover (1) 217.3 137.2
Insurance revenue net of XoL (1) 188.3 103.4
Insurance expenses (1) (73.1) (56.0)
Insurance claims net of XoL (1) (110.5) (59.9)
Underwriting result, net of XoL reinsurance (1) 4.7 (12.5)
Net investment income 3.0 —
Other income 0.2 —
UK Travel and Pet result before tax (1) 7.9 (12.5)
Segment performance indicators
2025 2024
Loss ratio (1 2) 58.7% 57.9%
Expense ratio (1 2) 38.8% 54.2%
Combined ratio (1 2) 97.5% 112.1%
Insurance service margin (1 2) 2.5% (12.1%)
Customers insured at period end 1.56m 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 a profit in 2025
(£7.9 million; (2024 loss: £12.5 million), with Pet achieving break-even
for the first time and Travel reporting higher profits. The improvement
reflects the impact of increased premiums earning through from the strong
growth in both customers (+38% to 1.6 million) and turnover (+58% to £217.3
million), reflecting both organic growth and the impact of Pet Insurance
renewals from 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 engages extensively with its regulators as part of normal operations
and has participated in these industry- wide regulatory reviews, with UK Motor
total loss costs recognised and remediation underway, the premium finance
review concluded, and no material impacts expected as a result of other
ongoing 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
European Insurance – Costantino Moretti – CEO, European Insurance
2025 has been a year of significant recovery and strategic progression for our
European businesses, returning to a state of combined profitability, with
continued focus on strengthening portfolio health.
The European entities have made good progress on their strategic plan, whilst
prioritising underwriting discipline and a sustained focus on margin
enhancement. This emphasis on portfolio quality has contributed to healthier
books across the region and improved operational efficiency.
While market conditions varied, with some regions experiencing continued
tariff increases, and others seeing modest premium growth, our businesses
successfully navigated these environments through rigorous risk selection and
cost control.
France had an exceptional year, with L’olivier increasing its Motor
Insurance policy count by 15%, while simultaneously enhancing margins and
service quality. Household Insurance also showed strong momentum with a 25%
increase in policies, albeit from a low base. Looking ahead, the recruitment
of experienced personnel and improved segmentation will be key levers for
continued acceleration.
Italy has seen 2025 as a year of restoration of profits, focusing
on risk selection and improving the health of the book. Although this led to
a 15% reduction in the customer base, a thorough cost review, fully
modernised technology and data infrastructures have created a leaner
organisation, putting us in a good position to return to sustainable growth in
2026.
Spain advanced its multichannel growth and maintained strong underwriting
discipline. The core direct business continues to deliver a good performance,
while we maintained investments in the broker channel as well as in the ING
bank insurance partnership, both of which saw improvements in commercial and
technical results.
Our modern, cloud‑native infrastructure gives us a strong foundation of
high‑quality data assets. Building on this, we are scaling our core AI
capabilities and piloting GenAI in the areas with the greatest potential.
Our focus remains on our people and culture, with Spain achieving a “Level
A” Certificate of Excellence from Fundación MásFamilia, France
volunteering over 2,000 hours to local charities, and Italy receiving a
special recognition for Women, Diversity, Equality and Inclusion for Great
Place to Work®.
I am very grateful for the hard work and dedication of our employees across
Europe, whose commitment remains instrumental to our success.
European Insurance financial performance
£m 2025 2024
Turnover (1 ) 674.3 639.9
Total premiums written (1) 620.2 596.7
Insurance revenue 654.5 606.7
Insurance revenue net of XoL (1) 623.5 572.7
Insurance expenses (1) (175.0) (168.0)
Insurance claims net of XoL (1) (414.0) (437.7)
Underwriting result, net of XoL (1) 34.5 (33.0)
Quota share reinsurance result (1 3) (31.3) 12.4
Movement in net onerous loss component 1.2 0.4
Underwriting result (1) 4.4 (20.2)
Net investment income 2.7 1.4
Net other revenue (0.5) (0.9)
European Insurance result, before tax (1) 6.6 (19.7)
Segment performance indicators
2025 2024
Loss ratio (1 2) 66.4% 76.4%
Expense ratio (1 2) 28.1% 29.3%
Combined ratio¹ 94.5% 105.7%
Insurance service margin (1 2) 0.7% (3.5%)
Customers insured at period end (1) 1.92m 1.97m
Segment result: European Insurance result(1)
£m 2025 2024
European Motor 9.3 (14.8)
Spain Motor (6.7) (3.1)
Italy Motor 2.6 (22.8)
France Motor 13.4 11.1
Other (2.7) (4.9)
European Insurance profit/(loss) before tax 6.6 (19.7)
European Motor Insurance - Geographical analysis(1)
2025 Spain Italy France Total
Vehicles insured at period end 0.46m 0.81m 0.52m 1.79m
Turnover (£m) 140.1 240.4 275.4 655.9
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 an increase in turnover to
£674.3 million (2024: £639.9 million). Customer numbers reduced modestly
(2%) to 1.92 million (31 December 2024: 1.97 million), with growth
in France more than offset by the result of the strong pricing action taken
in Italy.
The combined result for the segment improved significantly by £26.3 million
to a profit of £6.6 million (2024: loss of £19.7 million) with the combined
ratio improving to 94.5% (2024: 105.7%) largely as a result of the pricing
action referred to in Italy leading to a much-improved result compared to
2024, along with continuing strong profits in France.
The improved underwriting result in the period was partially offset by the
movement in the quota share result, which changed from a recovery of £12.4
million to a charge of £31.3 million, reflecting the quota share
reinsurers’ share of the much improved underwriting result. The charge
is greater than the quota share’s proportional value 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.
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 small profit of £2.6 million (2024: loss of £22.8
million), the 2024 result being impacted by the significant increase to the
settlement inflation rate for large bodily injury claims provided by the court
of Milan (known as the Milano tables) and also the impact of continued
inflation on claims settlement costs, particularly on business written in
2023. Strong pricing and underwriting actions taken throughout 2024 and in
2025 show signs of significantly improved loss ratios, which are now starting
to earn through. Vehicles insured decreased by 16% to 0.81 million (2024:
0.96 million), as a result of the actions, with turnover decreasing by
slightly less at 11% to £240.4 million (2024: £269.1 million).
L’olivier assurance (France) continued to grow strongly, with vehicles
insured increasing by 15% to 0.52 million (2024: 0.45 million), and turnover
increasing by 23% to £275.4 million (2024: £224.0 million). Both the
reported loss and expense ratio continued to improve in 2025 with growth
achieved in relatively favourable current market conditions, resulting in the
business reporting higher profits in 2025 (£13.4 million vs. £11.1 million).
In Admiral Seguros (Spain) customer numbers were slightly higher at
0.46 million (2024: 0.45 million), leading to a modest increase in turnover.
The underwriting result excluding quota share reinsurance improved as a result
of decreases in both the loss and expense ratios, in line with the main focus
of the business to improve underlying profitability. The reported loss for the
period was higher (£6.7 million vs £3.1 million), impacted by new quota
share arrangements in 2025 which result in lower recoveries on a booked
combined ratio basis. Admiral Seguros continues to focus on sustainable
growth, balancing its direct business with growing in the intermediary
channel.
Admiral Money
Emma Powell – CEO, Admiral Money
2025 was another strong year for Admiral Money, with several significant
milestones delivered, evolving us into a multi-product lender with broader
distribution. It was a year in which we combined controlled growth with
meaningful steps forward in how we fund, scale and serve our customers.
Our vision remains to help more customers with their lending needs. We provide
customers with affordable guaranteed rates, ensuring transparency and
certainty. We ended the year with over 200,000 customers and managing over
£1.8 billion of loan balances, a 50% increase since full year 2024. As a
result, our gross income of £159 million has grown 40%.
We continue to be agile in our approach to credit decisioning and pricing
changes, resulting in stable and expected credit performance with full year
cost of risk of 2.5%, which is the same as 2024.
We effectively managed costs during our growth and expansion into new
distribution channels while simultaneously enhancing efficiency through
increased automation, delivering a cost income ratio of 39%. The outcome of
this balanced growth, high quality risk selection and cost discipline has
been our fourth consecutive year of increased profits.
In 2025 we evolved our capital efficient funding strategy to support future
growth with our first forward flow arrangement. We completed a £146 million
back‑book sale of unsecured personal loans (UPLs) alongside the transfer of
additional balances through ongoing originations. This resulted in loans with
original balances of £426 million being off-balance sheet at year end.
Importantly, Admiral Money continues to service all loans sold in both the
back book and forward flow sales earning further revenue.
As we grow, our customer promise of value, trust and ease remains central to
everything we do. I’m proud that our customer satisfaction scores reached
new highs and Trustpilot scores rose to 4.9, compared to 4.4 in 2024.
following enhancements to our customer journeys which helped us deliver faster
decisions and better service at scale.
Internal mobility has helped deepen capability across the business, colleague
satisfaction remained high, and we were recognised with a People & Culture
award at Cnect Wales, an industry-led employers’ forum for the Welsh contact
centre community. Our commitment to community also doubled, with over 1,400
volunteering hours.
As I reflect on my first year as CEO, I am incredibly proud of the team and
what we have delivered in 2025 and I’d like to thank our customers, partners
and all my colleagues for their support.
Looking ahead to 2026, we are in a strong position to grow further both on-
and off-balance sheet, particularly with our wider distribution channels.
Admiral Money financial review
£m 2025 2024
Total interest income 139.2 112.5
Interest expense¹ (61.2) (43.2)
Net interest income 78.0 69.3
Origination fee income (2) 17.1 —
Other income 2.4 0.5
Total income 97.5 69.8
Credit loss charge (33.3) (26.9)
Expenses (38.4) (29.9)
Admiral Money profit before tax (3) 25.8 13.0
1 Includes £8.3 million intra-group interest expense (2024: £6.1 million).
2 Origination fee income in the year ended 31 December 2025 includes £5.9
million of income relating to a back-book sale of £146.4 million of loans
through a forward flow agreement.
3 Alternative Performance Measures – refer to the end of this report for
definition and explanation.
Admiral Money distributes and underwrites unsecured personal loans
(‘UPLs’) 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 £25.8 million in 2025 (2024:
£13.0 million), continuing the positive trajectory of the business. During
the year, Admiral Money entered into a forward flow funding arrangement with
an external counterparty, which included an initial sale of existing UPLs on
day one of the arrangement, alongside the ongoing sale of newly originated
loans. As part of the day-one transaction, a portfolio of UPLs with a total
carrying value of £146.4 million was sold, generating origination fee income
of £5.9 million, alongside a credit provision release of £4.9 million. After
recognising transaction-related costs of £1.0 million, including the
immediate write-off of unamortised deferred acquisition costs, the initial
sale contributed £9.8 million to profit before tax.
In addition, £279.5 million of newly originated UPLs were sold during the
year under the same forward flow arrangement, generating further origination
fee income of £11.2 million. Admiral Money continues to service all loans
sold under the arrangement and earned servicing income of £1.1 million
during the period, with incremental servicing costs driven by increased assets
under management recognised within operating expenses. Gross loan balances
administered for third parties totalled £343.3 million as at year end 2025
(2024: £nil).
Despite the loan sales, the business has also grown net interest income by 13%
to £78.0 million (2024: £69.3 million). Gross on-balance sheet loan balances
totalled £1.46 billion at the end of the period (2024: £1.17 billion), with
a £0.10 billion (2024: £0.08 billion) expected credit loss provision. This
leads to a net on-balance sheet loan balance of £1.36 billion (2024: £1.09
billion).
Admiral Money is funded through a combination of internal and external funding
sources. The external funding is secured against certain loans via a transfer
of the rights to the cash flows to special purpose entities (‘SPEs'). The
securitisation and subsequent issue of notes via SPEs does not result in a
significant transfer of risk from the Group. The new forward flow facility
provides further diversification of funding and capacity to support
origination growth. Loans sales made through the forward flow arrangement and
initial back book sale do result in a significant transfer of risk from the
Group, and as such the loans sold are derecognised from the balance sheet.
During the second half of the year, a portion of the loans sold through the
forward flow were subsequently securitised through the public markets by the
purchaser. The business continues to service the loans included in this
transaction on the same commercial basis as those in the forward flow.
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 varied by asset class, with UPLs increasing to
7.6% (2024: 7.2%) and car finance increasing to 1.9% (2024: 1.6%). The slight
increase in coverage in the year is largely driven by some softening
in economic forecasts, particularly in the expected UK unemployment rate.
Despite the macro back drop, the performance of the portfolios remain strong,
with an ongoing focus on writing high-quality loans contributing to this
positive loss performance.
Post-model adjustments reduced to £3.8 million (2024: £4.6 million)
reflecting continued refinements to the IFRS 9 provisioning model,
particularly in relation to economic uncertainty, as well as reductions in
cost-of-living related PMAs.
Other Group Items
Other Group items financial review
£m 2025 2024 (2)
Share scheme charges (71.9) (60.7)
Other central costs (53.4) (51.1)
Admiral Pioneer result (11.3) (11.3)
Business development costs (18.4) (20.1)
Finance charges (1) (23.5) (26.3)
Sale of shares in Insurify — 12.5
Other interest and investment income 17.7 13.5
Total (160.8) (143.5)
1 Finance charges within other Group items include £1.1 million (2024: £1.8
million) that relate to intra-group arrangements, with the corresponding
income presented within the UK Insurance result.
2 Other group costs in 2024 have been re-presented to exclude costs in
relation to the US Motor business, which are presented within discontinued
operations following its sale.
Share scheme charges relate to the Group’s two employee share schemes. The
increase in charge in the period is driven by both increases in bonuses
linked to dividends paid in the year and the higher share price.
Other central costs consist of Group-related expenses, an allocation of Group
employee costs and the cost of a number of significant Group projects. Total
costs increased modestly in 2025 primarily as a result of higher spend on the
Group’s internal model development as activity continues, towards
application for approval, and higher ongoing spend on central Group employee
expenses and community initiatives, which outweighed the 2024 additional
one-off employee bonus costs.
Admiral launched Admiral Pioneer in 2020 to focus on new product
diversification opportunities. Pioneer businesses include Veygo (short-term
and learner driver car insurance in the UK), and Admiral business (commercial
insurance, including fleet). Pioneer’s businesses reported a loss of £11.3
million in 2025 (2024: £11.3 million), due primarily to costs of investing
in the development of new products, offset in part by profits in Veygo. Losses
continue to be recognised on new commercial insurance lines as premiums are
not yet materially earning through.
Business development costs were lower at £18.4 million (2024: £20.1
million), with 2024 including non-recurring transaction and other costs of
£6.5 million related to the More Than acquisition, whilst 2025 comprises
increased spend on alternative lending products such as secured homeowner
loans in the UK.
Finance charges of £23.5 million (2024: £26.3 million) primarily related to
interest on the £250 million subordinated notes issued in July 2023 at a rate
of 8.5%, with the charge in 2024 including interest on the £55 million
subordinated loan notes issued in July 2014 prior to redemption.
Other interest and investment income increased to £17.7 million (2024:
£13.5 million), primarily due to higher investments held in 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 2024, the
Group sold those shares, resulting in a one-off gain of £12.5 million.
Group capital structure and financial position
The Group manages its capital to ensure that all entities are able to
continue as going concerns, and that regulated entities comfortably meet
regulatory capital requirements. Surplus capital within subsidiaries is
regularly paid up to the Group holding company in the form of dividends.
The Group’s regulatory capital is based on the Solvency II Standard Formula,
with a capital add-on to reflect recognised limitations in the Standard
Formula with respect to Admiral’s business, predominantly in respect of
profit commission arrangements in co-insurance and reinsurance agreements.
The current regulatory approved capital add-on is £24 million.
Admiral continues to develop its partial internal model to form the basis of
calculating capital requirements post-approval. Intense work has continued
over the past year, including regular engagement with the regulator, and the
Group is now close to submitting a formal application for approval to its main
prudential regulators.
The estimated and unaudited Solvency ratio for the Group at the date of this
report is as follows:
Group capital position (estimated and unaudited)
£bn 2025 2024
Eligible Own Funds (post-dividend) (1) 1.83 1.74
Solvency II capital requirement (2) 0.95 0.86
Surplus over capital requirement 0.88 0.88
Solvency ratio (post-dividend) (3) 193% 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 (‘SCR’) includes updated, unapproved
capital add-on.
3 Solvency ratio calculated on a volatility adjusted basis.
The Group’s solvency position remains strong at 193%, though lower than the
2024 closing position of 203%. There has been continued growth in own funds
during 2025, but at a lower rate due to both high dividends declared and paid
as a result of the strong reported result in H2 2024 and H1 2025, the
purchase of shares to fund the employee share trusts, and lower written
profits from the core UK Motor business relative to 2024.
The SCR also increased over the year, primarily due to the growth in the
loans balances, particularly in H2 2025, along with premium growth across the
Group’s businesses and the associated impact on underwriting and operational
risk elements of the capital requirement.
The estimated solvency ratio including the fixed Group capital add-on of £24
million, that is calculated at the balance sheet date rather than the date of
this report, and is expected to be reported in the Group’s 2025 Solvency
and Financial Condition Report (‘SFCR’) is as follows:
Regulatory solvency ratio (estimated and unaudited) 2025 2024
Solvency ratio as reported above 193% 203%
Change in valuation date (1) (11%) (9%)
Other (including impact of updated, unapproved capital add-on) 3% 4%
Solvency ratio to be reported ('SFCR') 185% 198%
Solvency ratio sensitivities
2025 2024
UK Motor – incurred loss ratio +5% (2) (21%) (26%)
UK Motor – 1-in-200 catastrophe event (4%) (3%)
UK Household – 1-in-200 catastrophe event (3%) (3%)
Interest rate – yield curve up 100 bps (1%) (1%)
Interest rate – yield curve down 100 bps 1% —%
Credit spreads widen 100 bps (2%) (2%)
Currency – 10% (2024: 10%) movement in euro and US dollar (3%) (2%)
ASHE – long-term inflation assumption up 100 bps (2024: 100 bps) (6%) (6%)
Loans – 100% weighting to ‘severe’ scenario (3) (1%) (1%)
1 The solvency ratio reported above includes additional own funds generated
post-year-end up to the date of this report.
2 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 rate
reduction.
3 Refer to note 7 to the financial statements for further information on the
‘severe’ scenario..
Change in capital return policy
As set out previously, there has been a change in the Group’s approach to
capital return which will be in place from the interim 2026 dividend onwards
(subject to regulatory approval). The Group’s revised dividend approach is
to:
* Pay a normal dividend equal to 65% of post-tax profits for the period
* Pay either a special dividend or buy back and cancel shares to the value of
surplus economic capital available at the dividend calculation date (with
reference to available distributable reserves at the calculation date).
Surplus economic capital is calculated as at the dividend valuation date and
is defined as:
* Available capital
* Less capital requirements
* Less risk appetite buffer
* Less any further buffer determined by the Board at the appropriate time.
The decision whether to distribute via dividend or to buyback shares will be
made by Board determination.
Investments and cash
Investment strategy
Admiral Group’s investment strategy focuses on capital preservation and low
volatility of returns relative to liabilities, and follows an asset liability
matching strategy to control interest rate, inflation and currency risk. A
prudent level of liquidity is held and the investment portfolio has a
high-quality credit profile. In 2025, the focus remained on matching, and
cashflows were invested into high-quality assets to take advantage of healthy
risk-free rates, whilst being appropriately cautious on the credit outlook.
The Group holds a range of government bonds, corporate bonds, alternative
and private credit assets, alongside liquid holdings in cash and money market
funds.
A further aim of the strategy is to reduce the Environmental, Social, and
Governance (‘ESG’) related risks in the portfolio, whilst continuing to
achieve sustainable long-term returns. Admiral’s corporate bond portfolio
has an average MSCI rating of AA.
Total investment income for 2025 was £215.5 million (2024: £170.9 million).
The investment return on the Group’s investment portfolio (excluding
unrealised losses on derivatives and the movement in provision for expected
credit losses) was £209.8 million (2024: £177.4 million).
The credit in relation to the movement in provision for expected credit losses
is the result of an accounting reclassification of a number of assets from
fair value through other comprehensive income to fair value through profit and
loss, and does not impact the overall valuation of assets.
The reduction in interest rates during 2025 has resulted in an increase in
the market value of the portfolio of £48.7 million (2024: £11.3 million
increase), which is reflected in the Statement of Other Comprehensive Income.
The annualised rate of return was slightly up at 4.1% (2024: 4.0%), driven by
reinvestment at improved risk-free rates.
Investment return
£m 2025 2024
Underlying investment income yield 4.1% 4.0%
Investment return 209.8 177.4
Unrealised losses on derivatives (0.4) (0.2)
Movement in provision for expected credit losses 6.1 (6.3)
Total investment return 215.5 170.9
Cash and investments analysis
£m 2025 2024
Fixed income and debt securities 3,707.6 3,335.4
Money market funds and other fair value through P&L investments 1,479.3 1,421.0
Cash deposits 57.9 91.7
Cash 301.1 313.6
Total (1) 5,545.9 5,161.7
1 Total Cash and Investments includes £500.1 million (2024: £354.5 million)
of Level 3 investments. Refer to note 6d in the financial statements for
further information.
Cashflow
£m 2025 2024
Operating cashflow, before movements in investments 874.4 1,303.4
Transfers to financial investments (245.8) (810.3)
Operating cashflow 628.6 493.1
Tax payments (192.1) (124.1)
Investing cashflows (capital expenditure) (95.2) (144.2)
Financing cashflows (712.6) (436.0)
Loans funding through special purpose entity 414.7 178.1
Acquisition of shares (35.3) —
Foreign currency translation impact (20.6) (6.4)
Net cash movement (12.5) (39.5)
Unrealised gains on investments 48.7 11.4
Movement in accrued interest, foreign exchange and unrealised gains on derivatives 102.2 165.0
Net increase in cash and financial investments 384.2 947.2
The main items contributing to the operating cash inflow are as follows:
£m 2025 2024
Profit after tax 742.3 662.9
Change in net insurance contract liabilities 379.5 606.5
Net change in trade receivables and liabilities 29.1 46.3
Change in loans and advances to customers (539.9) (231.4)
Non-cash income statement items 50.8 42.8
Taxation expense 212.6 176.3
Operating cashflow, before movements in investments 874.4 1,303.4
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 31 December 2025
was £5,545.9 million (31 December 2024: £5,161.7 million).
The net increase in cash and investments in the period is £384.2 million
(2024: increase of £947.2 million),the difference due primarily to higher
dividend payments in 2025 relative to 2024, as well as a lower relative
increase in cash inflows from the insurance businesses.
Taxation
The tax charge for the period for continuing operations is £212.6 million
(2024: £175.3 million), which equates to 22.2% (2024: 21.2%) of profit before
tax. The effective tax rate in 2025 was higher than in 2024 due to a reduced
impact from lower overseas tax rates, resulting from a change in the relative
split of profits across different tax jurisdictions.
Co-insurance and reinsurance
Admiral makes significant use of proportional risk sharing agreements, where
insurers outside the Group underwrite a majority of the risk generated,
either through co-insurance or quota share reinsurance contracts.
These arrangements include terms which allow Admiral to retain
a significant portion of the profit generated.
Although the primary focus and disclosure is in relation to the UK Motor
Insurance book, similar longer-term arrangements are in place in the Group’s
European Insurance operations and the UK Household and Van businesses.
UK Motor Insurance
Munich Re and its subsidiary entity, Great Lakes, currently underwrite 40% of
the UK Car business. From 2022, 20% of this total is on a co-insurance basis
(via Great Lakes) and will extend to 2029. The remaining 20% is on a quota
share reinsurance basis and these arrangements extend to 2026 and 2027 (with
discussions on extensions due to take place in Q2 2026).
The Group also has other quota share reinsurance arrangements confirmed to at
least 2027 covering 38% of the business written.
The nature of the co-insurance proportion underwritten by Munich Re (via
Great Lakes) in the UK is such that 20% of all Car premium and claims accrue
directly to Great Lakes and are not reflected in the Group’s financial
statements. Similarly, Great Lakes reimburses the Group for its proportional
share of expenses incurred in acquiring and administering this business.
Admiral’s UK Motor quota share reinsurance arrangements result in all
premiums, claims and expenses that are ceded to reinsurers being included
within the quota share result in the Group’s financial statements, with a
recovery recognised where years are not yet profitable.
These agreements operate on a funds withheld basis with Admiral retaining
ceded premium (net of the reinsurer margin), which then covers claims and
expenses. If an underwriting year is not profitable, investment income is
allocated to the withheld fund and used to delay the point at which cash
recoveries are collected from the reinsurer. Other features of the
arrangements include expense ratio caps and commutation options for Admiral
that become available 24-36 months after the start of the underwriting year.
Admiral tends to commute its UK Car Insurance quota share reinsurance
contracts 24-36 months after inception of an underwriting year, assuming there
is sufficient confidence in the profitability of the business covered by the
reinsurance contract 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. In addition, the UK Van arrangements for underwriting years
2021 and 2022 were commuted during 2025, along with a small number of UK Car
commutations on underwriting years 2022 and 2023.
UK Household Insurance
The Group’s Household business is supported by long-term proportional
reinsurance arrangements covering 70% of the risk, that run to at least 2027.
In addition, the Group has non-proportional reinsurance to cover the risk of
catastrophes stemming from weather events.
European Car Insurance
In 2023 and 2024, Admiral retained 35% (Italy), 30% (France), and 30% (Spain),
of the underwriting risk in each country, respectively, whilst in 2025,
Admiral retained 60% of the underwriting risk in Italy, with the retained
share in France and Spain unchanged. In 2026, Admiral will retain 52.5%
(Italy), 40% (France) and 42.5% (Spain) of the underwriting risk in each
country respectively.
Excess of loss reinsurance
The Group also purchases excess of loss reinsurance to provide protection
against large claims and reviews this cover annually. The UK Motor excess of
loss cover in 2025 remained similar to prior years with cover starting
at £10 million.
Principal Risks and Uncertainties
The Group’s 2025 Annual Report will contain an analysis of the Principal
Risks and Uncertainties identified in the Group’s Enterprise Risk Management
Framework, along with the impacts of those risks and actions taken to mitigate
them.
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.
Consolidated Income Statement
Year ended
Note 31 December 2025 £m 31 December 2024 £m (1)
Insurance revenue 5 4,979.3 4,553.4
Insurance service expenses 5 (3,967.1) (3,349.7)
Insurance service result before reinsurance 1,012.2 1,203.7
Net expense from reinsurance contracts held 5 (225.9) (501.6)
Insurance service result 786.3 702.1
Investment return - Effective interest rate 6 129.0 103.4
Investment return - Other 6 80.4 72.8
Investment return 6 209.4 176.2
Finance expenses from insurance contracts issued 5 (140.9) (128.4)
Finance income from reinsurance contracts held 5 29.4 35.9
Net insurance finance expenses (111.5) (92.5)
Net insurance and investment result 884.2 785.8
Interest income from financial services 7 147.3 113.5
Interest expense related to financial services 7 (58.3) (37.2)
Net interest income from financial services 89.0 76.3
Other revenue and profit commission 8 233.5 189.6
Other operating expenses 9 (321.5) (293.5)
Other operating expenses recoverable from co-insurers 9 126.5 129.3
Movement in expected credit loss provision and write-offs 6 (29.8) (34.6)
Other income and expenses 8.7 (9.2)
Operating profit 981.9 852.9
Finance costs 6 (24.4) (27.0)
Finance costs recoverable from co-insurers 6 0.4 0.6
Net finance costs (24.0) (26.4)
Profit before tax from continuing operations 957.9 826.5
Taxation expense 10 (212.6) (175.3)
Profit after tax from continuing operations 745.3 651.2
(Loss)/ Profit before tax from discontinued operations 13 (3.1) 12.7
Taxation expense 13 0.1 (1.0)
(Loss)/ Profit after tax from discontinued operations 13 (3.0) 11.7
Profit after tax from continuing and discontinued operations 742.3 662.9
Profit after tax attributable to:
Equity holders of the parent 742.6 663.3
Non-controlling interests (NCI) (0.3) (0.4)
742.3 662.9
Consolidated Income Statement (continued)
Year ended
Note 31 December 2025 £m 31 December 2024 £m (1)
Earnings per share - from continuing operations
Basic 12 247.4p 212.8p
Diluted 12 242.7p 212.8p
Earnings per share - from continuing and discontinued operations
Basic 12 246.4p 216.6p
Diluted 12 241.7p 216.6p
Dividends declared and paid (total) 12 715.4 369.8
Dividends declared and paid (per share) 12 236.0p 123.0p
1 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.
Consolidated Statement of Comprehensive Income
Year ended
31 December 2025 £m 31 December 2024 £m
Profit for the period - from continuing and discontinued operations 742.3 662.9
Other comprehensive income
Items that are or may be reclassified to profit or loss
Movements in fair value reserve 48.7 11.3
Deferred tax in relation to movement in fair value reserve (2.8) 2.4
Movements in insurance finance reserve - insurance contracts (54.4) 7.9
Deferred tax in relation to movement in insurance finance reserve - insurance contracts 9.5 (5.1)
Movements in insurance finance reserve - reinsurance contracts 9.6 3.3
Deferred tax in relation to movement in insurance finance reserve - reinsurance contracts (2.1) 1.3
Exchange differences on translation of foreign operations 3.1 (4.2)
Movement in hedging reserve (13.5) (4.1)
Deferred tax in relation to movement in hedging reserve 3.4 1.0
Other comprehensive income for the period, net of income tax 1.5 13.8
Total comprehensive income for the period 743.8 676.7
Total comprehensive income for the period attributable to:
Equity holders of the parent 744.1 677.1
Non-controlling interests (0.3) (0.4)
Total comprehensive income for the period 743.8 676.7
Consolidated Statement of Financial Position
As at
Note 31 December 2025 £m 31 December 2024 £m
ASSETS
Property and equipment 80.2 87.8
Intangible assets 11 327.6 321.0
Deferred tax asset 10 50.7 19.8
Corporation tax asset 10 18.1 18.1
Reinsurance contract assets 5 1,080.5 988.6
Loans and advances to customers 7 1,628.7 1,106.9
Other receivables 6 277.7 225.2
Financial investments 6 5,258.2 4,863.2
Cash and cash equivalents 6 301.1 313.6
Total assets 9,022.8 7,944.2
EQUITY
Share capital 12 0.3 0.3
Share premium account 13.1 13.1
Other reserves (29.3) (26.7)
Retained earnings 1,459.2 1,383.4
Total equity attributable to equity holders of the parent 1,443.3 1,370.1
Non-controlling interests 0.3 0.6
Total equity 1,443.6 1,370.7
LIABILITIES
Insurance contracts liabilities 5 5,399.2 4,961.4
Subordinated and other financial liabilities 6 1,819.9 1,322.2
Trade and other payables 6, 11 217.2 175.3
Lease liabilities 6 73.6 79.6
Corporation tax liabilities 10 69.3 35.0
Total liabilities 7,579.2 6,573.5
Total equity and total liabilities 9,022.8 7,944.2
The accompanying notes form part of these financial statements. These
financial statements were approved by the Board of Directors on 4 March 2026
and were signed on its behalf by:
Geraint Jones
Chief Financial Officer
Admiral Group plc
Company Number: 03849958
Consolidated Cashflow Statement
Year ended
Note 31 December 2025 £m 31 December 2024 £m (1)
Profit after tax - from continuing and discontinued operations 742.3 662.9
Adjustments for non-cash items:
- Depreciation of property, plant and equipment and right-of-use assets 15.9 18.8
- Impairment/ disposal of property, plant and equipment and right-of-use assets 0.2 9.1
- Amortisation and impairment of intangible assets 11 63.1 66.7
- Loss on disposal of Elephant entities held for sale 24.5 –
- Movement in expected credit loss provision 13.2 10.3
- Share scheme charges 75.0 67.8
- Interest expense on funding for loans and advances to customers 46.8 32.3
- Investment return 6 (212.3) (177.4)
- Profit on disposal of Insurify share option 9 – (12.5)
- Finance costs, including unwinding of discounts on lease liabilities 6 24.4 27.7
- Taxation expense 10 212.6 176.3
Change in gross insurance contract liabilities 5 502.2 421.6
Change in reinsurance assets 5 (122.7) 184.9
Change in insurance and other receivables 6 (15.8) 182.4
Change in gross loans and advances to customers 7 (689.1) (231.4)
Sale proceeds from the loan book 7 146.4 –
Funding received relating to forward flow loans 7 282.3 –
Forward flow loans transferred 7 (279.5) –
Change in trade and other payables, including tax and social security 11 44.9 (136.1)
Cash flows from operating activities, before movements in investments 874.4 1,303.4
Purchases of financial instruments (9,339.4) (8,083.3)
Proceeds on disposal/ maturity of financial instruments 8,973.2 7,182.4
Interest and investment income received 120.4 90.6
Cash flows from operating activities, net of movements in investments 628.6 493.1
Taxation payments (192.1) (124.1)
Net cash flow from operating activities 436.5 369.0
Cash flows from investing activities:
Purchases of property, equipment and software (74.3) (61.7)
Intangible assets acquired through business combinations – (82.5)
Net costs paid on sale of Elephant entities (1.3) –
Cash included in the disposal of entities (19.6) –
Net cash used in investing activities (95.2) (144.2)
Consolidated Cashflow Statement (continued)
Note 31 December 2025 £m 31 December 2024 £m
Cash flows from financing activities:
Proceeds on issue of loan backed securities 6 713.8 372.2
Repayment of loan backed securities 6 (299.1) (194.1)
Proceeds from other financial liabilities 6 262.3 177.7
Repayment of other financial liabilities 6 (180.4) (170.1)
Finance costs paid, including interest expense paid on funding for loans (76.0) (76.7)
Proceeds on hedging derivatives 5.3 15.6
Repayment of lease liabilities (8.4) (12.7)
Equity dividends paid 12 (715.4) (369.8)
Acquisition of shares by employee benefit trusts (35.3) –
Net cash used in financing activities (333.2) (257.9)
Net increase/ (decrease) in cash and cash equivalents 8.1 (33.1)
Cash and cash equivalents at 1 January 313.6 353.1
Effects of changes in foreign exchange rates (20.6) (6.4)
Cash and cash equivalents at period end 6 301.1 313.6
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 — — — — — — 742.6 742.6 (0.3) 742.3
Other comprehensive income — — 45.9 (10.1) 3.1 (37.4) — 1.5 — 1.5
Total comprehensive income for the period — — 45.9 (10.1) 3.1 (37.4) 742.6 744.1 (0.3) 743.8
Transactions with equity holders
Dividends 12 — — — — — — (715.4) (715.4) — (715.4)
Share scheme credit — — — — — — 75.0 75.0 — 75.0
Shares acquired by employee benefit trusts — — — — — — (35.3) (35.3) — (35.3)
Deferred tax on share scheme credit — — — — — — 8.9 8.9 — 8.9
Transfer to loss on disposal of assets held for sale — — (0.5) — (3.6) — — (4.1) — (4.1)
Total transactions with equity holders — — (0.5) — (3.6) — (666.8) (670.9) — (670.9)
As at 31 December 2025 0.3 13.1 (54.4) (5.7) (4.5) 35.3 1,459.2 1,443.3 0.3 1,443.6
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 consolidated financial statements have been prepared and approved by the
Directors in accordance with United Kingdom adopted international accounting
standards in conformity with the requirements of the Companies Act 2006.
The financial information included in this preliminary announcement has been
prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards ('IFRS’) as adopted by the UK.
The financial information set out in this preliminary results announcement
does not constitute the statutory accounts for the year ended 31 December
2025. The financial information is derived from the statutory accounts, which
comply with IFRS, within the Group’s Annual Report & Accounts 2025. These
accounts were signed on 4 March 2026 and are expected to be published in
March 2026 and delivered to the Registrar of Companies following the Annual
General Meeting to be held on 29 April 2026. The independent Auditor’s
report on the Group accounts for the year ended 31 December 2025 was signed
on 4 March 2026, is unqualified, does not draw attention to any matters by
way of emphasis and does not include a statement under S498(2) or (3) of the
Companies Act 2006. This audit opinion excludes disclosures surrounding
capital adequacy calculated under the Solvency II regime as these are outside
of the audit scope.
1. Basis of preparation
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 Group’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, and insurance and
reinsurance contract assets and liabilities which are measured at their
fulfilment value in accordance with IFRS 17 Insurance Contracts. The Group and
Company financial statements are presented in pounds sterling, rounded to the
nearest £0.1 million.
Subsidiaries are entities controlled by the Group. The Group controls an
entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and can affect those returns through its power
over the entity. In assessing control, the Group takes into consideration
potential voting rights that are currently exercisable. The acquisition date
is the date on which control is transferred to the acquirer. The financial
statements of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date control ceases.
Losses applicable to the non-controlling interests in a subsidiary are
allocated to the non-controlling interests even if doing so causes the
non-controlling interests to have a deficit balance.
Adoption of new and revised standards
The Group has adopted the following IFRSs and interpretations during the year,
which have been issued and endorsed:
* Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack
of Exchangeability (effective 1 January 2025).
The application of the amendments listed above has not had a material impact
on the Group’s results, financial position and cashflows.
2. Critical accounting judgements and estimates
In applying the Group’s accounting policies as described in the notes to the
financial statements, the Directors are required to make judgements (other
than those involving estimations) that have a significant impact on the
amounts recognised and to make estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily apparent from other
sources.
The estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgements
about carrying values of assets and liabilities that are not readily apparent
from other sources.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the year in which the
estimate is reviewed. To the extent that a change in an accounting estimate
gives rise to changes in assets and liabilities, the movement is recognised by
adjusting the carrying amount of the related asset or liability in the period
in which the change occurs.
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.
Refer to note 8 to these financial statements for the accounting policy for
co-insurance profit commission.
Risk adjustment
At a group level, the risk adjustment confidence level is equivalent to the
95th percentile (31 December 2024: 95th percentile). The sensitivities below
reflect the impact on profit before tax and equity as at the end of 2025 for
changes in the selection of the UK Motor risk adjustment confidence level at
31 December 2025, with all other assumptions remaining unchanged.
2025
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 93.3 75.9 77.2 62.2
Risk adjustment decrease to 85th percentile 170.9 138.3 141.2 113.3
Undiscounted loss ratios, including risk adjustment
The sensitivities reflect the impact on profit before tax in 2025 and equity
as at the end of 2025 of a change in the booked loss ratios for individual
underwriting years (‘UWY’) as at 31 December 2025, with all other
assumptions remaining unchanged.
UWY 2022 impact on: UWY 2023 impact on: UWY 2024 impact on: UWY 2025 impact on:
£m (1) PBT Equity PBT Equity PBT Equity PBT Equity
Increase of 1%: gross of reinsurance (17.8) (14.4) (24.8) (20.5) (33.6) (27.7) (13.9) (11.8)
Increase of 5%: gross of reinsurance (89.0) (72.0) (124.1) (102.4) (168.0) (138.6) (69.7) (58.8)
Increase of 10%: gross of reinsurance (177.9) (144.0) (247.5) (204.3) (331.6) (273.9) (139.4) (117.7)
Decrease of 1%: gross of reinsurance 17.8 14.4 24.8 20.5 33.6 27.7 13.9 11.8
Decrease of 5%: gross of reinsurance 88.4 71.6 118.8 98.5 168.0 138.6 73.7 61.8
Decrease of 10%: gross of reinsurance 169.5 137.7 238.7 197.7 336.0 277.2 158.9 132.3
Increase of 1%: net of reinsurance (11.0) (8.6) (24.8) (20.5) (33.6) (27.7) (6.0) (5.0)
Increase of 5%: net of reinsurance (54.7) (42.9) (124.1) (102.4) (168.0) (138.6) (30.2) (24.9)
Increase of 10%: net of reinsurance (109.4) (85.8) (241.2) (199.0) (331.6) (273.9) (55.6) (45.7)
Decrease of 1%: net of reinsurance 10.9 8.5 24.8 20.5 33.6 27.7 6.0 5.0
Decrease of 5%: net of reinsurance 61.8 49.0 118.8 98.5 168.0 138.6 40.2 33.1
Decrease of 10%: net of reinsurance 123.9 99.0 238.7 197.7 336.0 277.2 119.9 98.8
1 ‘Booked’ loss ratios are undiscounted underwriting year loss ratios,
including risk adjustment.
3b. Financial risk: Interest rate sensitivity analysis
The impact on equity arising from the impact of 100 basis point and 200 basis
point increases and decreases in interest rates on insurance contract
liabilities and reinsurance contract assets as at 31 December 2025, is as
follows:
2025 2024
Impact on equity gross of reinsurance £m Impact on equity net of reinsurance £m Impact on equity gross of reinsurance £m Impact on equity net of reinsurance £m
Increase of 100 basis points 61.5 58.3 60.8 58.3
Decrease of 100 basis points (68.8) (65.4) (69.7) (67.1)
Increase of 200 basis points 117.3 111.1 115.1 110.3
Decrease of 200 basis points (147.7) (140.8) (152.2) (146.9)
The impact on equity arising from the impact of 100 basis point and 200 basis
point increases and decreases in interest rates on investments and cash as at
31 December 2025, is as follows:
2025 2024
Impact on equity £m Impact on equity £m
Increase of 100 basis points (97.4) (83.4)
Decrease of 100 basis points 105.6 90.4
Increase of 200 basis points (187.8) (161.0)
Decrease of 200 basis points 221.1 189.2
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 2025.
4. Operating segments
The Group has five reportable segments, as described below. These segments
represent the principal split of business that is regularly reported to the
Group’s Board of Directors, which is considered to be the Group’s chief
operating decision maker in line with IFRS 8 Operating Segments.
UK Insurance
The segment consists of the underwriting of Motor, Household, Pet and Travel
insurance and other products that supplement these insurance policies within
the UK. It also includes the generation of revenue from additional products
and fees from underwriting insurance in the UK. The Directors consider the
results of these activities to be reportable as one segment as the activities
carried out in generating the revenue are not independent of each other and
are performed as one business. This mirrors the approach taken in management
reporting.
European Insurance
The segment consists of the underwriting of car and home insurance and the
generation of revenue from additional products and fees from underwriting car
insurance outside of the UK. It specifically covers the Group operations
Admiral Seguros in Spain, ConTe in Italy, L’olivier Assurance in France.
None of these operations are reportable on an individual basis, based on the
threshold requirements in IFRS 8.
During the year ended 31 December 2025, the Group revisited its internal
reporting structure following the classification of Elephant Auto in the US
as held for sale and discontinued. As a result, this segment now comprises
only European operations and has been renamed from International Insurance to
European insurance. The comparative segment information has been restated to
reflect the change in the segment composition.
Admiral Money
The segment relates to the Admiral Money business launched in 2017, which
provides consumer finance and car finance products in the UK, through the
comparison channel, credit scoring applications and direct channels including
car dealers and brokers.
Other
The ‘Other’ segment is designed to be comprised of all other operating
segments that are not separately reported to the Group’s Board of Directors
and do not meet the threshold requirements for individual reporting. It
includes the results of Admiral Pioneer.
Discontinued Operations
As set out in note 13 to the financial statements, on 22 April 2025 the Group
announced its planned sale of the US motor insurance business, including
Elephant Insurance Company and Elephant Insurance Services (‘Elephant’).
The sale was completed on 31 December 2025.
The US operations are presented as discontinued operations in both 2024 and
2025. The results for 2025 are reflective of the loss on disposal and 12
months of trading prior to disposal.
Taxes are not allocated across the segments and, as with the corporate
activities, are included in the reconciliation to the Consolidated Income
Statement and Consolidated Statement of Financial Position.
An analysis of the Group’s revenue and results for the year ended
31 December 2025,, by reportable segment, is shown below. The accounting
policies of the reportable segments are materially consistent with those
presented in the notes to the financial statements for the Group.
Year ended 31 December 2025
UK Insurance £m European Insurance £m Admiral Money £m Other £m Discontinued operations £m Eliminations (3) £m Total (continuing) £m Total £m
Turnover (1) 4,952.5 674.3 148.9 119.8 166.9 — 5,895.5 6,062.4
Insurance revenue 4,221.6 654.5 — 103.2 174.1 — 4,979.3 5,153.4
Insurance revenue net of XoL 4,112.5 623.5 — 91.9 173.6 — 4,827.9 5,001.5
Insurance services expenses (787.3) (175.0) — (45.2) (61.7) — (1,007.5) (1,069.2)
Insurance claims net of XoL (2,386.1) (414.0) — (59.4) (89.0) — (2,859.5) (2,948.5)
Quota share reinsurance result (96.0) (31.3) — — (3.2) — (127.3) (130.5)
Net movement in onerous loss component — 1.2 — — — — 1.2 1.2
Underwriting result 843.1 4.4 — (12.7) 19.7 — 834.8 854.5
Net investment income (2) 87.9 2.7 0.1 5.0 4.5 (9.4) 86.3 90.8
Net interest income from financial services (5) — — 78.0 2.7 — 8.3 89.0 89.0
Net other revenue and operating expenses 155.3 (0.5) (52.3) (23.4) — — 79.1 79.1
Segment profit/(loss) before tax (4) 1,086.3 6.6 25.8 (28.4) 24.2 (1.1) 1,089.2 1,113.4
Other central revenue and expenses, including share scheme charges (126.6) (153.9)
Investment and interest income 17.7 17.7
Finance costs (22.4) (22.4)
Consolidated profit before tax 957.9 954.8
Taxation expense (212.6) (212.5)
Consolidated profit after tax 745.3 742.3
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 — 5,946.5 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 (5) — — 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 Interest income is presented net of interest expense as these segments
predominantly earn interest income and performance is reviewed on a net basis.
5. Insurance Service result
5a. Accounting policies
The full accounting policies will be provided in the Group’s 2025 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:
31 December 2025 31 December 2024
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
UK Insurance 4.0% 4.0% 4.2% 4.5% 5.0% 4.7% 4.5% 4.6%
European Motor 2.6% 2.8% 3.0% 3.4% 2.7% 2.6% 2.6% 2.8%
5b. Insurance revenue
Insurance revenue for the corresponding reportable segments for the period
ended 31 December 2025 are shown below.
31 December 2025
Continuing operations UK Motor £m UK Other £m European Insurance £m Other £m Total £m
Insurance revenue related movement in liability for remaining coverage 3,511.5 710.1 654.5 103.2 4,979.3
Insurance revenue for the corresponding reportable segments for the period
ended 31 December 2024 are shown below.
31 December 2024
Continuing operations UK Motor £m UK Other £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 31 December 2025 are shown below.
31 December 2025
Continuing operations UK Motor £m UK Other £m European Insurance £m Other £m Total £m
Incurred claims
Claims incurred in the period 2,317.1 452.1 468.8 72.6 3,310.6
Changes to liabilities for incurred claims (335.7) (33.6) (49.1) (5.5) (423.9)
Total incurred claims 1,981.4 418.5 419.7 67.1 2,886.7
Movement in onerous contracts 0.1 0.2 (3.3) — (3.0)
Directly attributable expenses
Administration expenses 496.3 131.9 119.1 25.4 772.7
Acquisition expenses 103.9 55.2 55.9 19.8 234.8
Insurance expenses 600.2 187.1 175.0 45.2 1,007.5
Share scheme expenses 56.1 8.7 9.8 1.3 75.9
Total insurance expenses including share scheme expenses 656.3 195.8 184.8 46.5 1,083.4
Total Insurance service expenses 2,637.8 614.5 601.2 113.6 3,967.1
Insurance service expenses for the corresponding reportable segments for the
period ended 31 December 2024 are shown below.
31 December 2024
Continuing operations UK Motor £m UK Other £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 31 December 2025 are shown below.
31 December 2025
Continuing operations UK Motor £m UK Other £m European Insurance £m Other £m Total £m
Allocation of reinsurance premiums 133.5 143.1 155.8 11.3 443.7
Amounts recoverable from reinsurers for incurred insurance service expenses
Incurred claims (70.9) (91.1) (151.1) (7.7) (320.8)
Changes to liabilities for incurred claims 56.8 (1.4) 45.8 — 101.2
Net expense from reinsurance contracts excluding movement in onerous loss component 119.4 50.6 50.5 3.6 224.1
Other reinsurance recoveries including movement in onerous loss component (0.1) (0.2) 2.1 — 1.8
Net expenses from reinsurance contracts held 119.3 50.4 52.6 3.6 225.9
Net expenses from reinsurance contracts held for the corresponding reportable
segments for the period ended 31 December 2024 are shown below.
31 December 2024
Continuing operations UK Motor £m UK Other £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 31 December 2025 31 December 2024
Amounts recognised through the income statement - Continuing basis
Insurance finance expenses from insurance contracts issued 140.9 128.4
Insurance finance income from reinsurance contracts held (29.4) (35.9)
Net finance expense from insurance / reinsurance contracts issued 111.5 92.5
5f. Insurance Liabilities and Reinsurance assets
(i). Analysis of recognised amounts
Year ended 31 December 2025 Year ended 31 December 2024
£m Liability for remaining coverage Liability for incurred claims Total Liability for remaining coverage Liability for incurred claims Total
Insurance contracts issued
UK Motor 774.1 3,070.0 3,844.1 883.3 2,691.1 3,574.4
UK Other Personal lines 206.2 303.4 509.6 195.3 214.7 410.0
European Insurance 217.0 691.1 908.1 190.1 591.2 781.3
Other 11.8 125.6 137.4 19.9 175.8 195.7
Total insurance contracts issued 1,209.1 4,190.1 5,399.2 1,288.6 3,672.8 4,961.4
£m Asset for remaining coverage Asset for incurred claims Total Asset for remaining coverage Asset for incurred claims Total
Reinsurance contracts held
UK Motor 45.7 267.7 313.4 34.0 236.5 270.5
UK Other Personal lines 13.6 215.2 228.8 11.2 173.5 184.7
European Insurance 19.9 507.0 526.9 42.5 461.7 504.2
Other 1.2 10.2 11.4 0.5 28.7 29.2
Total reinsurance contracts held 80.4 1,000.1 1,080.5 88.2 900.4 988.6
£m Liability for remaining coverage Liability for incurred claims Total Liability for remaining coverage Liability for incurred claims Total
Net
UK Motor 728.4 2,802.3 3,530.7 849.3 2,454.6 3,303.9
UK Other Personal lines 192.6 88.2 280.8 184.1 41.2 225.3
European Insurance 197.1 184.1 381.2 147.6 129.5 277.1
Other 10.6 115.4 126.0 19.4 147.1 166.5
Total insurance contracts issued 1,128.7 3,190.0 4,318.7 1,200.4 2,772.4 3,972.8
(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.
2025 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 3,511.5 — 3,511.5 — — — 3,511.5
Insurance service expenses
Incurred claims and insurance service expenses — — — (2,787.4) (185.9) (2,973.3) (2,973.3)
Changes to liabilities for incurred claims — — — 115.8 219.9 335.7 335.7
Losses and reversals of losses on onerous contracts — (0.1) (0.1) — — — (0.1)
Insurance service result 3,511.5 (0.1) 3,511.4 (2,671.6) 33.9 (2,637.7) 873.7
Insurance finance income/(expense) recognised in profit or loss — 0.1 0.1 (96.0) (17.4) (113.5) (113.4)
Insurance finance income/(expense) recognised in OCI — — — (47.6) (10.5) (58.0) (58.0)
Total changes in comprehensive income 3,511.5 — 3,511.5 (2,815.2) 6.0 (2,809.2) 702.3
Other changes — — — 74.3 — 74.3 74.3
Cashflows
Premiums received (3,402.3) — (3,402.3) — — — (3,402.3)
Claims and other insurance service expenses paid — — — 2,356.0 — 2,356.0 2,356.0
Other movements — — — — — — —
Total cashflows (3,402.3) — (3,402.3) 2,356.0 — 2,356.0 (1,046.3)
Net closing balance (774.1) — (774.1) (2,685.7) (384.3) (3,070.0) (3,844.1)
Closing assets — — — — — — —
Closing liabilities (774.1) — (774.1) (2,685.7) (384.3) (3,070.0) (3,844.1)
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)
(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.
2025 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 (133.5) — (133.5) — — — (133.5)
Amounts recoverable from reinsurers for incurred claims
Incurred claims — — — 26.1 44.9 71.0 71.0
Changes to liabilities for incurred claims — — — (18.3) (38.5) (56.8) (56.8)
Changes in the loss recovery component — 0.1 0.1 — — — 0.1
Net income/ (expense) from reinsurance contracts held (133.5) 0.1 (133.4) 7.8 6.4 14.2 (119.2)
Reinsurance finance income/(expense) recognised in profit or loss — (0.1) (0.1) 7.0 3.6 10.6 10.5
Reinsurance finance income/(expense) recognised in OCI — — — 8.7 4.4 13.1 13.1
Total changes in comprehensive income (133.5) — (133.5) 23.5 14.4 37.9 (95.6)
Cashflows
Premiums paid 145.2 — 145.2 — — — 145.2
Claims recoveries — — — (6.7) — (6.7) (6.7)
Recoveries as a result of commutations — — — — — — —
Total cashflows 145.2 — 145.2 (6.7) — (6.7) 138.5
Net closing balance 45.7 — 45.7 189.3 78.4 267.7 313.4
Closing assets 45.7 — 45.7 189.3 78.4 267.7 313.4
Closing liabilities — — — — — — —
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). Claims development
The following tables illustrate how estimates of cumulative claims for UK
Motor have developed over time on a gross and net of reinsurance basis, for
each underwriting year, and reconciles the cumulative claims to the amount
included in the Statement of Financial Position.
Gross claims development
Financial year ended 31 December 2025
Underwriting year 2015 & prior 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
£m £m £m £m £m £m £m £m £m £m £m £m
UK Motor (core)
At end of year one 436 552 686 701 552 688 845 973 1,241 1,242
At end of year two 829 1,144 1,175 1,067 985 1,326 1,584 1,812 2,158
At end of year three 788 994 1,109 1,010 954 1,294 1,544 1,724
At end of year four 727 947 1,064 996 921 1,270 1,517
At end of year five 713 912 1,008 981 910 1,200
At end of year six 690 890 1,000 938 876
At end of year seven 656 865 959 936
At end of year eight 652 849 953
At end of year nine 657 843
Ten years later 643
Gross best estimates of undiscounted claims 4,367 643 843 953 936 876 1,200 1,517 1,724 2,158 1,242 16,459
Cumulative gross claims paid (4,229) (611) (778) (908) (847) (763) (990) (1,161) (1,193) (1,318) (546) (13,344)
Gross undiscounted best estimate liabilities 138 32 65 45 89 113 210 356 531 840 696 3,115
Risk adjustment (undiscounted) 453
Effect of discounting (624)
Gross claims liabilities 2,944
Ancillary claims and expense liabilities 126
UK Motor Gross liabilities for incurred claims 3,070
Claims development net of XoL reinsurance
Financial year ended 31 December 2025
Underwriting year 2015 & prior 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
£m £m £m £m £m £m £m £m £m £m £m £m
UK Motor (core)
At end of year one 427 510 646 675 520 661 825 951 1,220 1,220
At end of year two 783 1,053 1,123 1,033 949 1,292 1,550 1,776 2,115
At end of year three 743 917 1,053 986 927 1,257 1,517 1,694
At end of year four 692 883 1,024 969 892 1,240 1,495
At end of year five 677 860 974 950 886 1,185
At end of year six 663 840 978 925 864
At end of year seven 640 820 946 921
At end of year eight 635 825 939
At end of year nine 644 814
Ten years later 630
Net of XoL best estimates of undiscounted claims 4,329 630 814 939 921 864 1,185 1,495 1,694 2,115 1,220 16,206
Cumulative claims paid (4,228) (611) (777) (903) (847) (763) (990) (1,161) (1,193) (1,318) (546) (13,337)
Net of XoL undiscounted best estimate liabilities 101 19 37 36 74 101 195 334 501 797 674 2,869
Risk adjustment (undiscounted) 411
Effect of discounting (512)
Net of XoL claims liabilities 2,768
Ancillary claims and expense liabilities 126
UK Motor Net of XoL liabilities for incurred claims 2,894
Claims development net of reinsurance
Financial year ended 31 December 2025
Underwriting year 2015 & prior 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
£m £m £m £m £m £m £m £m £m £m £m £m
UK Motor (core)
At end of year one 427 493 625 626 520 657 762 939 1,220 1,220
At end of year two 783 1,016 1,086 1,033 949 1,259 1,442 1,776 2,115
At end of year three 743 886 1,018 986 927 1,239 1,470 1,694
At end of year four 692 853 990 969 892 1,236 1,451
At end of year five 677 830 957 950 886 1,185
At end of year six 663 811 944 925 864
At end of year seven 640 793 913 921
At end of year eight 635 798 939
At end of year nine 644 814
Ten years later 630
Net best estimates of undiscounted claims (1) 4,329 630 814 939 921 864 1,185 1,451 1,694 2,115 1,220 16,162
Cumulative net claims paid (4,228) (611) (777) (903) (847) (763) (990) (1,161) (1,193) (1,318) (546) (13,337)
Net undiscounted best estimate liabilities 101 19 37 36 74 101 195 290 501 797 674 2,825
Risk adjustment (undiscounted) 345
Effect of discounting (494)
Net claims liabilities 2,676
Ancillary claims and expense liabilities 126
UK Motor Net liabilities for incurred claims 2,802
1 The gross best estimate of undiscounted claims and cumulative gross claims
paid reported in the prior year financial statements were inclusive of
underwritten ancillaries, and have been removed from all underwriting years
(v). UK Motor Loss ratios and Changes to liabilities for incurred claims
The table below shows the development of UK Motor Insurance loss ratios for
the past five financial periods, presented on an underwriting year basis,
both using undiscounted amounts (i.e. cashflows) and discounted amounts.
31 December
UK Motor Insurance loss ratio development - undiscounted, net of excess of loss reinsurance (1) 2021 2022 2023 2024 2025
Underwriting year
2020 68% 65% 58% 57% 55%
2021 95% 91% 86% 82% 77%
2022 — 104% 96% 91% 89%
2023 — — 94% 80% 76%
2024 — — — 77% 71%
2025 — — — — 85%
1 Booked undiscounted loss ratios presented from the transition date of IFRS
17 (1 January 2022) onwards.
31 December
UK Motor Insurance loss ratio development - discounted, net of excess of loss reinsurance (1) 2021 2022 2023 2024 2025
Underwriting year
2020 67% 63% 57% 55% 54%
2021 92% 86% 81% 77% 74%
2022 — 97% 88% 83% 82%
2023 — — 86% 72% 69%
2024 — — — 71% 65%
2025 — — — — 78%
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).
31 December 2025 £m 31 December 2024 £m
Gross
Underwriting year
2020 & prior 33.1 215.5
2021 59.5 87.0
2022 26.6 107.1
2023 91.4 83.8
2024 119.8 —
2025 — —
Total UK Motor (core) gross changes to liabilities for incurred claims 330.4 493.4
Net
Underwriting year
2020 & prior 30.9 130.1
2021 47.2 70.6
2022 22.5 94.5
2023 86.0 76.7
2024 118.5 —
2025 — —
Total UK Motor (core) net of excess of loss changes to liabilities for incurred claims 305.1 371.9
6. Investment income and finance costs
6a. Investment return
31 December 2025 £m 31 December 2024 £m
Continuing operations At EIR Other Total At EIR Other Total
Investment return
On assets classified as FVTPL — 74.7 74.7 — 65.4 65.4
On assets classified as FVOCI (1 3) 125.9 4.6 130.5 97.5 5.3 102.8
On assets classified as amortised cost (1) 3.1 — 3.1 5.9 — 5.9
Net unrealised losses
Unrealised (loss) / gain on forward contracts — (0.4) (0.4) — (0.2) (0.2)
Share of associate profit/ loss — — — — (1.0) (1.0)
Interest income on cash and cash equivalents (1) — 3.8 3.8 — 5.3 5.3
Investment fees — (2.3) (2.3) — (2.0) (2.0)
Total investment and interest income (2) 129.0 80.4 209.4 103.4 72.8 176.2
1 Interest received from continuing operations during the year was £120.4
million (2024: £90.6 million).
2 Total investment return excludes £9.4 million of intra-group interest
(2024: £7.9 million).
3 Realised losses on sales of debt securities classified as FVOCI from
continuing operations are £6.3 million (2024: £4.5 million).
6b. Finance costs
Continuing operations 31 December 2025 £m 31 December 2024 £m
Interest expense on subordinated loan notes and other credit facilities (1, 2) 22.3 24.5
Interest expense on lease liabilities 2.1 2.5
Interest recoverable from co-insurers (0.4) (0.6)
Total finance costs ( 3) 24.0 26.4
1 Interest paid during the year was £24.4 million (2024: £26.9 million).
2 See note 7e for details of credit facilities.
3 No interest has been capitalised in the period
Finance costs represent interest payable on the £250.0 million (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. Expected credit losses
Continuing operations Note 31 December 2025 £m 31 December 2024 £m
Expected credit (gains)/losses on financial investments 6f (6.1) 6.3
Expected credit losses on loans and advances to customers 7b 35.9 28.3
Total expense for expected credit losses 29.8 34.6
1 Includes £16.2 million (2024: £26.1 million) of write-offs, with total
movement in the ECL provision being £35.9 million (2024: £28.3 million).
6d. Financial assets and liabilities
The Group’s financial assets and liabilities can be analysed as follows:
31 December 2025 £m 31 December 2024 £m
Financial investments classified as FVTPL
Money market funds 824.4 902.6
Other funds (1) 621.8 473.9
Derivative financial instruments 1.5 5.8
Equity investments (designated FVTPL) 39.3 46.9
1,487.0 1,429.2
Financial investments classified as FVOCI
Corporate debt securities 2,474.7 2,410.9
Government debt securities (2) 1,026.1 772.2
Private debt securities 206.8 152.3
3,707.6 3,335.4
Financial assets measured at amortised cost
Deposits with credit institutions 57.9 91.7
Other
Investment property 5.7 6.9
Total financial investments 5,258.2 4,863.2
Other financial assets measured at amortised cost
Insurance related receivables 64.1 51.1
Trade and other receivables 148.4 110.4
Insurance related and other receivables 212.5 161.5
Loans and advances to customers (note 7) 1,628.7 1,106.9
Cash and cash equivalents 301.1 313.6
Total financial assets 7,400.5 6,445.2
Financial liabilities
Subordinated notes (3) 259.0 258.9
Loan backed securities 1,352.9 937.7
Other borrowings 200.3 117.4
Derivative financial instruments 7.7 8.2
Subordinated and other financial liabilities 1,819.9 1,322.2
Trade and other payables (4) 217.2 175.3
Lease liabilities 73.6 79.6
Total financial liabilities (5) 2,110.7 1,577.1
1 Other funds include funds which primarily invest in public and private fixed
income securities are recognised as fair value through profit and loss
2 Government debt securities include £0.6 million of short term UK government
bonds held for collateral against foreign exchange hedging derivatives
3 The fair value of subordinated notes (level one validation) is £288.5
million (31 December 2024: £276.4 million).
4 Trade and other payables include deferred income, accruals and other tax and
social security.
5 All financial liabilities are classified as subsequently measured at
amortised cost using the effective interest method (2025: £2,103.0 million;
2024: £1,568.9 million), except for derivatives that are classified at fair
value through profit or loss and subsequently measured at fair value.
The table below shows how the financial assets and liabilities held at fair
value have been measured using the fair value hierarchy:
31 December 2025 31 December 2024
FVTPL £m FVOCI £m FVTPL £m FVOCI £m
Level one (quoted prices in active markets) 1,192.1 3,500.8 1,221.2 3,183.1
Level two (use of observable inputs) (6.1) — (2.4) —
Level three (use of significant unobservable inputs) 293.3 206.8 202.2 152.3
Total 1,479.3 3,707.6 1,421.0 3,335.4
Level three investments consist of debt 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 (2025: £254.0 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:
31 December 2025 £m
Level Three Investments Equity Investments Debt Investments Total
Balance as at 1 January 46.9 307.6 354.5
Gains/(losses) recognised in the Income Statement (7.5) 19.1 11.6
Gains/(losses) recognised in Other Comprehensive Income — (2.5) (2.5)
Purchases 1.0 200.8 201.8
Disposals (1.1) (64.4) (65.5)
Translation differences — 0.2 0.2
Balance as at 31 December 39.3 460.8 500.1
31 December 2024 £m
Level Three Investments Equity Investments Debt Investments Total
Balance as at 1 January 35.5 242.7 278.2
Gains/(losses) recognised in the Income Statement (4.5) 9.6 5.1
Gains/(losses) recognised in Other Comprehensive Income — (2.8) (2.8)
Purchases 16.1 94.9 111.0
Disposals (0.2) (36.8) (37.0)
Balance as at 31 December 46.9 307.6 354.5
7. Loans and Advances to Customers
31 December 2025 £m 31 December 2024 £m
Loans and advances to customers – gross carrying amount 1,459.0 1,174.0
Loans and advances to customers – provision (100.8) (84.3)
Total loans and advances to customers – Admiral Money 1,358.2 1,089.7
Loans and advances to customers – gross carrying amount 274.6 18.6
Loans and advances to customers – provision (4.1) (1.4)
Total loans and advances to customers – Other (1) 270.5 17.2
Total loans and advances to customers 1,628.7 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.
Loans and advances to customers are comprised of the following:
31 December 2025 £m 31 December 2024 £m
Unsecured personal loans - Admiral Money 1,268.7 1,155.6
Secured loans (1) 410.0 18.4
Unsecured personal loans - Other 54.9 18.6
Total loans and advances to customers, gross 1,733.6 1,192.6
1 Secured loans include finance leases amounting to £190.3 million (2024:
£18.4 million).
Secured homeowner loans
Included within loans and advances to customers are second-charge mortgages,
secured by a second-ranking charge over residential property. These assets are
classified as financial assets at amortised cost under IFRS 9.
Second-charge mortgages are recognised when funds are advanced, initially
measured at fair value plus directly attributable transaction costs.
Interest income is recognised within interest income in the income statement
over the term of the lease using effective interest rate method.
Loans are secured by a second-ranking charge against residential property.
External appraisals of security collateral are obtained at origination and
reviewed periodically to mitigate credit risk.
Upon borrower default, the property collateral for both first and second
charges may be repossessed. Recoveries are applied in the order of senior
ranking, with any residual benefit accruing to the Group for second-charge
exposure.
Based on information obtained at origination and updated through normal
servicing activities, the Group expects that the majority of the homeowner
loan portfolio is supported by residential property with loan‑to‑value
ratios of less than 100%, after taking into account the first‑charge
lender’s priority position.
At 31 December 2025, the carrying amount of homeowner loans subject to
collateral arrangements was £219.0 million (2024: £nil).
Forward Flow Agreement
In 2025, the Group completed a sale of back book loans with a carrying value
of £146.4 million to an external third party under a forward flow agreement.
This sale generated a net gain of £9.8 million, comprised of:
* origination fee income of £5.9 million which has been recognised within
Other revenue and profit commission;
* a credit provision release of £4.9m due to the derecognition of the
underlying loans;
* immediate recognition of £1.0m of unamortised acquisition costs.
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 31 December 2025.
Loans sold as part of the 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 initially recognised and
subsequently measured at FVTPL. Loan sales are completed on average twice per
month, with the external third party providing prefunding to be used for the
origination of loans sold under the agreement, which removes the liquidity
impact of originating these loans. £279.5 million of loans were originated
under this business model in 2025 which, due to the way in which the forward
flow arrangement is structured, have been derecognised in full and have a
carrying value of £nil in the Statement of Financial Position as at 31
December 2025. The sale of loans under this business model has generated
origination fee income of £9.7 million, recognised within Other revenue and
profit commission.
The Group’s continuing involvement is limited to servicing arrangements,
i.e. collecting the contractual cash flows of the underlying loans and
remitting these to the external third party. The collected cash flows are
remitted by the Group at market rate which relates solely to the servicing
activity. A receivable is recognised in respect of the amounts outstanding
in relation to servicing fees. As at 31 December 2025, the outstanding
receivable totals £0.1 million (2024: £nil) and is recognised within accrued
income.
The Group is entitled to receive additional consideration (‘commission’)
in respect of (i) loans sold as part of the back‑book forward flow
arrangement, and (ii) loans sold to the third-party purchaser under the
Group’s ongoing new business model. This commission represents variable
consideration and is contingent on the credit performance of the transferred
loan portfolios over the 24‑month period following each sale. At 31 December
2025, the Group has estimated the commission receivable to be £1.5 million
(2024: £nil), which has been recognised to the extent that it is highly
probable that a significant reversal will not occur.
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 31 December 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 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 31 December 2025.
For the Forecast Year Ended
At 31 December 2025 2026 2027 2028 2029 2030
% % % % %
Base - 50%
Gross domestic product 1.6 1.6 1.6 1.6 1.7
Unemployment rate 5.2 5.1 4.7 4.4 4.3
UK Household Unsecured Debt to Income 12.6 13.3 13.9 14.2 14.5
Upside - 5%
Gross domestic product 2.5 2.5 1.8 1.9 1.9
Unemployment rate 4.8 4.1 4.1 4.1 4.1
UK Household Unsecured Debt to Income 12.2 11.9 12.0 12.2 12.4
Downside - 30%
Gross domestic product 0.3 0.9 2.4 2.4 2.3
Unemployment rate 6.0 6.2 5.9 5.3 5.0
UK Household Unsecured Debt to Income 13.1 14.0 14.6 15.0 15.2
Severe - 15%
Gross domestic product 0.1 (0.6) 2.1 2.2 2.7
Unemployment rate 6.9 8.0 8.0 7.5 6.5
UK Household Unsecured Debt to Income 13.5 14.9 15.7 16.1 16.2
Probability-weighted
Gross domestic product 1.0 1.1 1.9 1.9 2.0
Unemployment rate 5.7 5.8 5.5 5.1 4.8
UK Household Unsecured Debt to Income 12.9 13.7 14.3 14.6 14.8
For the Forecast Year Ended
At 31 December 2024 2025 2026 2027 2028 2029
% % % % %
Base - 50%
Gross domestic product 1.6 1.6 1.6 1.7 1.7
Unemployment rate 4.4 4.3 4.1 4.1 4.1
UK Household Unsecured Debt to Income 13.2 13.7 14.1 14.4 14.5
Upside - 10%
Gross domestic product 2.7 3.0 1.8 1.6 1.8
Unemployment rate 4.2 3.8 3.8 3.8 3.8
UK Household Unsecured Debt to Income 12.6 12.3 11.9 12.2 12.3
Downside - 30%
Gross domestic product 0.9 0.1 3.0 3.0 2.7
Unemployment rate 5.6 6.0 5.6 4.9 4.6
UK Household Unsecured Debt to Income 13.4 14.5 15.0 15.1 15.1
Severe - 10%
Gross domestic product 0.8 (1.1) 2.6 3.4 3.1
Unemployment rate 6.6 8.0 7.9 6.8 6.1
UK Household Unsecured Debt to Income 13.6 15.0 15.7 15.9 16.1
Probability-weighted
Gross domestic product 1.4 1.0 2.1 2.3 2.1
Unemployment rate 5.0 5.1 4.9 4.6 4.4
UK Household Unsecured Debt to Income 13.2 13.9 14.3 14.5 14.6
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
The key areas of estimation uncertainty identified for Admiral Money loan
book, as per note 2 to the financial statements, are in the PD and the
forward-looking scenarios. The following balances exclude EIR assets of £17.0
million (31 December 2024: £5.5 million).During the year, the Group has
enhanced the following disclosures by presenting additional information around
the gross exposures and ECL for each stage, under each scenario. This change
enables more detailed analysis of the impact of changes in forward looking
information. Prior year comparatives have been represented to enable better
comparison of balances year on year.
Scenarios
31 December 2025 Weighted Base Downturn Severe Upturn
Stage 1 gross exposure (£m) 1,257.2 1,263.5 1,248.8 1,223.1 1,264.4
Stage 1 ECL (£m) (18.7) (17.7) (19.3) (19.2) (17.3)
Stage 1 coverage (%) 1.5 1.4 1.5 1.6 1.4
Stage 2 gross exposure (£m) 110.1 103.8 118.5 144.2 102.9
Stage 2 ECL (£m) (18.2) (16.6) (20.1) (25.5) (15.4)
Stage 2 coverage (%) 16.5 16.0 17.0 17.7 15.0
Stage 3 gross exposure (£m) 74.7 74.7 74.7 74.7 74.7
Stage 3 ECL (£m) (58.8) (58.8) (58.8) (58.8) (58.8)
Stage 3 coverage (%) 78.7 78.7 78.7 78.7 78.7
Total gross exposure (£m) 1442.0 1442.0 1442.0 1442.0 1442.0
Total ECL (£m) (1) (95.7) (93.1) (98.2) (103.5) (91.5)
Scenarios
31 December 2024 Weighted Base Downturn Severe Upturn
Stage 1 gross exposure (£m) 1,006.9 1,011.2 997.2 982.1 1,012.8
Stage 1 ECL (£m) (15.0) (14.5) (15.3) (15.1) (14.1)
Stage 1 coverage (%) 1.5 1.4 1.5 1.5 1.4
Stage 2 gross exposure (£m) 97.6 93.3 107.3 122.4 91.7
Stage 2 ECL (£m) (17.3) (16.0) (19.7) (23.4) (14.9)
Stage 2 coverage (%) 17.7 17.1 18.4 19.1 16.2
Stage 3 gross exposure (£m) 64.0 64.0 64.0 64.0 64.0
Stage 3 ECL (£m) (46.9) (46.9) (46.9) (46.9) (46.9)
Stage 3 coverage (%) 73.3 73.3 73.3 73.3 73.3
Total gross exposure (£m) 1168.5 1168.5 1168.5 1168.5 1168.5
Total ECL (£m) (1) (79.2) (77.4) (81.9) (85.4) (75.9)
1 Weighted ECL excludes PMAs of £3.8million (2024: £4.6million) and other
loss allowance of £1.3 million (2024: £0.5 million) that are not allocated
to stages.
The above tables show the gross exposure, ECL and coverage for each stage of
the loan book based on the weighted position the provision is based on.
Additionally, the tables demonstrate the same metrics of the base case,
downturn, upturn or severe scenarios unfolded. At 31 December 2025 the
implied weighted peak unemployment rate is 5.8%: the table shows that in a
downturn scenario with a 6.2% peak unemployment rate the provision would
increase by £2.5 million, whilst the upturn would reduce the provision by
£4.2 million, base case reduce by £2.6 million and severe increase the
provision by £7.8 million.
Stage 1 assets represent 87.3% of the total loan assets; 0.1% increase in the
stage 1 PD, i.e. from 2.4% to 2.5% would result in a £0.8 million increase
in ECL.
Judgements required – Post Model Adjustments (‘PMA’s)
As at 31 December 2025, the ECL allowance for Admiral Money included PMAs
totaling £3.8 million (2024: £4.6 million).
Post Model Adjustments 31 December 2025 £m 31 December 2024 £m
Model performance — 1.5
Cost of Living — 1.3
UPL Settlement 1.0 —
Developing portfolios 1.1 —
Economic scenarios 1.7 1.8
3.8 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.
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 refresh of
the data was conducted for 31 December 2025 which has resulted in the full
release of the PMA.
UPL Settlement
Management has identified a limitation with UPL ECL model regarding the way
early settlements are treated. Currently there is no forward-looking
adjustment to the expected settlement rate, which can over or understate
expected default rates depending on the economic scenario. Typically, it is
expected that settlement rates have an inverse relationship with default
rates. A PMA has been raised to account for this limitation.
Developing Portfolios
The provision for the motor finance portfolio is calculated using the UPL
engine while the portfolio is immature. Management accepts that there is a
significant difference in provisioning approaches for a secured motor finance
portfolio and a UPL portfolio. To account for this, adjustments have been made
to the UPL model output for the following areas:
1. Calibration of UPL PD model to motor finance outcomes.
2. The inclusion of ‘Voluntary Terminations’ as potential defaults.
3. An adjustment to LGDs based on market implied recoveries.
The net impact of applying these adjustments has been held as a PMA.
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. This approach has been refreshed for
31 December 2025 and is resulting in a release of £0.1 million to this PMA.
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.
Probability of Default information
Gross carrying amount ECL (2) Coverage
PD range % Stage 1 £m Stage 2 £m Stage 3 £m Total £m Stage 1 £m Stage 2 £m Stage 3 £m Total £m Total %
Band 1 0 to 0.250 63.2 0.2 — 63.4 0.1 — — 0.1 0.2
Band 2 0.251 to 0.500 54.1 0.2 — 54.3 0.1 — — 0.1 0.2
Band 3 0.501 to 1.500 437.1 2.7 — 439.8 2.4 — — 2.4 0.5
Band 4 1.501 to 5.000 566.4 23.7 — 590.1 9.1 1.1 — 10.2 1.7
Band 5 5.01 to 20.000 151.6 58.7 — 210.3 6.9 8.2 — 15.1 7.2
Band 6 20.001 to 99.999 0.6 25.6 — 26.2 0.1 8.9 — 9.0 34.4
Band 7 100 — — 74.9 74.9 — — 58.8 58.8 78.5
Total Admiral Money 1,273.0 111.1 74.9 1,459.0 18.7 18.2 58.8 95.7 6.6
Total Other 268.3 4.4 1.9 274.6 2.1 0.4 1.6 4.1 1.5
As at 31 December 2025 1,541.3 115.5 76.8 1,733.6 20.8 18.6 60.4 99.8 5.8
Gross carrying amount ECL (2)
PD range % Stage 1 % OT (1) Stage 2 % OT Stage 3 % OT Total % OT Stage 1 % OT Stage 2 % OT Stage 3 % OT Total % OT
Band 1 0 to 0.250 4.2 0.2 — 3.7 0.4 — — 0.1
Band 2 0.251 to 0.500 3.5 0.2 — 3.1 0.6 — — 0.1
Band 3 0.501 to 1.500 28.4 2.3 — 25.4 11.6 0.2 — 2.4
Band 4 1.501 to 5.000 36.7 20.5 — 34.0 43.6 5.8 — 10.2
Band 5 5.01 to 20.000 9.8 50.8 — 12.1 33.3 44.1 — 15.1
Band 6 20.001 to 99.999 — 22.1 — 1.5 0.4 47.7 — 9.0
Band 7 100 — — 97.5 4.3 — — 97.4 58.9
Total Admiral Money 82.6 96.2 97.5 84.2 89.9 97.8 97.4 95.9
Total Other 17.4 3.8 2.5 15.8 10.1 2.2 2.6 4.1
As at 31 December 2025 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Gross carrying amount ECL Coverage
PD range % Stage 1 £m Stage 2 £m Stage 3 £m Total £m Stage 1 £m Stage 2 £m Stage 3 £m Total £m Total %
Band 1 0 to 0.250 35.8 0.3 — 36.1 0.1 — — 0.1 0.3
Band 2 0.251 to 0.500 29.5 0.1 — 29.6 0.1 — — 0.1 0.3
Band 3 0.501 to 1.500 375.5 3.0 — 378.5 2.2 0.1 — 2.3 0.6
Band 4 1.501 to 5.000 457.2 19.8 — 477.0 7.4 1.0 — 8.4 1.8
Band 5 5.01 to 20.000 113.2 51.3 — 164.5 5.1 7.6 — 12.7 7.7
Band 6 20.001 to 99.999 0.4 23.5 — 23.9 0.1 8.6 — 8.7 36.4
Band 7 100 — — 64.4 64.4 — — 46.9 46.9 72.8
Total Admiral Money 1,011.6 98.0 64.4 1,174.0 15.0 17.3 46.9 79.2 6.7
Total Other 17.7 0.3 0.6 18.6 1.1 — 0.3 1.4 7.5
As at 31 December 2024 1,029.3 98.3 65.0 1,192.6 16.1 17.3 47.2 80.6 6.8
Gross carrying amount ECL
PD range % Stage 1 % OT (1) Stage 2 % OT Stage 3 % OT Total % OT Stage 1 % OT Stage 2 % OT Stage 3 % OT Total % OT
Band 1 0 to 0.250 3.5 0.3 — 3.0 0.6 — — 0.1
Band 2 0.251 to 0.500 2.9 0.1 — 2.5 0.6 — — 0.1
Band 3 0.501 to 1.500 36.5 3.1 — 31.7 13.7 0.6 — 2.9
Band 4 1.501 to 5.000 44.4 20.1 — 40.0 46.0 5.8 — 10.4
Band 5 5.01 to 20.000 11.0 52.2 — 13.8 31.7 43.9 — 15.8
Band 6 20.001 to 99.999 — 23.9 — 2.0 0.6 49.7 — 10.8
Band 7 100 — — 99.1 5.4 — — 99.4 58.2
Total Admiral Money 98.3 99.7 99.1 98.4 93.2 100.0 99.4 98.3
Total Other 1.7 0.3 0.9 1.6 6.8 — 0.6 1.7
As at 31 December 2024 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1 %OT (Percentage of Total) represents the proportion that each PD band
contributes to the total gross carrying amount or ECLs within each
credit-impairment stage and in total. Percentages are calculated separately
for balances and ECL and therefore sum to 100% within each stage.
2 Excludes PMAs of £3.8 million ( 2024: 4.6 million) and other loss allowance
of £1.3 million (2024: £0.5 million)
8. Other revenue and co-insurer profit commission
31 December 2025
Continuing operations UK Insurance £m European Insurance £m Admiral Money £m Other £m Total Group £m
Major products/service line
Fee and commission revenue 109.5 0.1 0.3 1.0 110.9
Revenue from law firm 22.7 — — — 22.7
Gain on de-recognition of assets — — 17.1 — 17.1
Servicing fee income — — 1.1 — 1.1
Other 5.8 — 1.0 0.4 7.2
Total other revenue 138.0 0.1 19.5 1.4 159.0
Profit commission from co-insurers 74.5 — — — 74.5
Total other revenue and co-insurer profit commission 212.5 0.1 19.5 1.4 233.5
Timing of revenue recognition
Point in time 151.7 0.1 0.3 1.0 153.1
Over time 55.0 — 1.1 — 56.1
Revenue outside the scope of IFRS 15 5.8 — 18.1 0.4 24.3
212.5 0.1 19.5 1.4 233.5
31 December 2024
Continuing operations 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
The cumulative profit commission recognised at each point in time is
calculated in aggregate across the contract, in line with contract terms,
based on a number of detailed inputs for each individual underwriting year,
the most material of which are as follows:
* Premiums, defined as gross premiums ceded including any instalment income,
less reinsurance premium (for excess of loss reinsurance).
* Insurance expenses incurred.
* Claims costs incurred: * The Group uses the expected value method for the
initial calculation of profit commission revenue, based on known premiums and
expenses, and the best estimate of claims costs.
* The variable revenue estimated using the expected value method above is
constrained through the inclusion of the risk adjustment within the claims
cost element of the calculation, with the profit commission recognised aligned
to the IFRS 17 booked loss ratios, discounted at locked-in rates, and
inclusive of finance expense. The inclusion of the risk adjustment constrains
the cumulative profit commission revenue recognised to a level where there is
a high probability of no significant reversal.
The key methods, inputs and assumptions used to estimate the variable
consideration of profit commission are therefore in line with those used for
the calculation of claims liabilities, as set out in note 3 to the financial
statements, with further detail also included in note 5. There are no further
critical accounting estimates or judgements in relation to the recognition of
profit commission.
31 December 2025 £m 31 December 2024 £m
Underwriting year
2021 & prior 8.7 51.7
2022 — —
2023 — —
2024 65.8 1.6
2025 — —
Total UK Motor profit commission 74.5 53.3
9. Directly attributable and other expenses
31 December 2025
Continuing operations Directly attributable expenses £m Other operating expenses £m Total expenses £m
Administration and acquisition expenses 1,007.5 123.4 1,130.9
Expenses relating to additional products and fees — 48.7 48.7
Share scheme expenses 75.9 36.9 112.8
Loan expenses (excluding movement on ECL provision) — 38.4 38.4
Movement in expected credit loss provision — 29.8 29.8
Other (1) — 74.1 74.1
Total 1,083.4 351.3 1,434.7
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 (2025:
£56.0 million, 2024: £49.9million), business development costs, including
expenses relating to new loan ventures (2025: £20.1 million, 2024: £19.9
million) and other costs (2025: £0.7 million, 2024: £3.5 million), offset by
deferred consideration income (2025: £2.7 million, 2024: £nil).
10. Taxation
Continuing operations 31 December 2025 £m 31 December 2024 £m
Current tax
Corporation tax on profits for the year 222.6 139.1
Under provision relating to prior periods (2.3) 1.8
Pillar Two income taxes 6.6 15.3
Current tax charge 226.9 156.2
Deferred tax
Current period deferred taxation movement (15.7) 15.7
Under provision relating to prior periods 1.4 3.4
Total tax charge per Consolidated Income Statement 212.6 175.3
Factors affecting the total tax charge are:
Continuing operations 31 December 2025 £m 31 December 2024 £m
Profit before tax 957.9 826.5
Corporation tax thereon at effective UK corporation tax rate of 25% (2024: 25%) 239.5 206.6
Expenses and provisions not deductible for tax purposes 1.8 4.1
Non-taxable income (10.7) (21.3)
Adjustments relating to prior periods 0.6 5.2
Impact of Pillar Two income taxes 5.1 15.3
Impact of different overseas tax rates (27.5) (44.9)
Unrecognised deferred tax 3.8 10.3
Total tax charge 212.6 175.3
Corporation tax assets as at 31 December 2025 totalled £18.1 million, with
corporation tax liabilities of £69.3 million (2024: £18.1 million assets
and £35.0 million liabilities). Corporation tax liabilities includes £22.0
million (2024: £15.4 million) relating to Pillar Two income taxes.
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%. The Group has continued to apply the temporary mandatory
exception to recognising and disclosing information about deferred tax assets
and liabilities related to Pillar Two income taxes, as provided in the
amendments to IAS 12 issued in May 2023.
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 44.5 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 — — 64.7 3.0 67.7
Amortisation charge — (7.4) (48.3) (3.4) (59.1)
Disposals — — (0.3) — (0.3)
Impairment — — (3.6) — (3.6)
Foreign exchange movement & other movements — 0.4 0.7 0.8 1.9
At 31 December 2025 112.1 42.3 161.3 11.9 327.6
Customer contracts and relationships includes Home and Pet renewal rights
which has a net carrying value of £28.1 million as at 31 December 2025 and
an amortisation period of 9 years for Home renewal rights and 14 years for Pet
renewal rights. See note 13 for further information.
Goodwill relates to the acquisition of Group subsidiary EUI Limited (formerly
Admiral Insurance Services Limited) in November 1999, and on the purchase of
the direct Home and Pet renewal rights from the RSA Insurance Group Limited
(‘RSA’) in April 2024. The carrying amount of goodwill as at 31 December
2025 is £112.1 million (2024: £112.1 million), of which £62.3 million
(2024: 62.3 million) is allocated to UK insurance, £41.2 million (2024:
£41.2 million) to UK Pet and £8.6 million (2024: £8.6 million) to UK
Household CGUs.
11b. Trade and other payables
31 December 2025 £m 31 December 2024 £m
Trade payables 57.3 52.4
Other tax and social security 12.3 12.5
Amounts owed to co-insurers 22.0 —
Other payables 42.1 34.0
Accruals and deferred income 83.5 76.4
Total trade and other payables 217.2 175.3
Analysis of accruals and deferred income
Accruals 59.2 48.2
Deferred income 24.3 28.2
Total accruals and deferred income as above 83.5 76.4
11c. Contingent liabilities and assets
The Group’s legal entities operate in numerous tax jurisdictions and
continue to engage on a regular basis with the relevant tax authority on
matters of review and enquiry.
In addition, 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.
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 asset/ 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.
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 in December 2025 won the
appeal in relation to two of the periods under enquiry and is confident in
defending its position in relation to the other open periods. Whilst the
Company is no longer part of the Admiral Group, the contingent liability,
which the Company is exposed to, has been indemnified by the Admiral Group up
to a cap of €24 million.
A number of the Group’s contractual arrangements with reinsurers include
features that, in certain scenarios, allow for reinsurers to recover losses
incurred to date. The overall impact of such scenarios would not lead to an
overall net economic outflow from the Group.
No further contingent assets or liabilities are disclosed in relation to any
ongoing matters such as those set out above given the uncertainty over whether
the asset or liability will crystallise and the quantum of any resulting
impact.
12. Dividends, Earnings and Related Parties
12a. Dividends
Dividends were proposed, approved and paid as follows:
31 December 2025 £m 31 December 2024 £m
Proposed March 2024 (52.0 pence per share, approved April 2024 and paid June 2024) — 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 —
Declared August 2025 (115.0 pence per share, paid October 2025) 348.9 —
Total dividends 715.4 369.8
The dividends proposed in March (approved in April) represent the final
dividends paid in respect of the 2023 and 2024 financial years. The dividends
declared in August are interim distributions in respect of 2024 and 2025.
A 2025 final dividend of 90.0 pence per share (approximately £274.6 million)
has been proposed. Refer to the financial narrative for further detail.
12b. Earnings per share
31 December 2025 31 December 2024
Profit for the financial year after taxation attributable to equity shareholders - continuing operations (£m) 745.6 651.6
Profit/(Loss) for the financial year after taxation attributable to equity shareholders - discontinued operations (£m) (3.0) 11.7
Profit for the financial year after taxation attributable to equity shareholders - continuing and discontinued operations (£m) 742.6 663.3
Weighted average number of shares – basic (1) 301,407,475 306,304,676
Unadjusted earnings per share (pence per share) – basic - continuing operations 247.4 212.8
Unadjusted earnings per share (pence per share) – basic - discontinued operations (1.0) 3.8
Unadjusted earnings per share (pence per share) – basic - continuing and discontinued operations 246.4 216.6
Weighted average number of shares – diluted 307,190,136 306,304,676
Unadjusted earnings per share (pence per share) – diluted - continuing operations 242.7 212.8
Unadjusted earnings per share (pence per share) – diluted - discontinued operations (1.0) 3.8
Unadjusted earnings per share (pence per share) – diluted - continuing and discontinued operations 241.7 216.6
1 Shares held in employee benefit trusts as at 31 December 2025 are excluded
from the weighted average number of shares, following
a change in the funding structure during the year that resulted in the
consolidation of the trusts into the Group.
The difference between the basic and diluted number of shares at the end of
2025 (being 5.8 million; 2024: nil) relates to share awards set to vest in the
future subject only to continued employment. Refer to note 9 for further
detail.
12c. Share capital
31 December 2025 £m 31 December 2024 £m
Authorised
500,000,000 ordinary shares of 0.1 pence 0.5 0.5
Issued, called up and fully paid
306,304,676 ordinary shares of 0.1 pence 0.3 0.3
12d. 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.
12e. Post balance sheet events
As announced in February 2026, the Group has reached an agreement to acquire
100% of the shares of Flock Limited, a digital commercial fleet insurance
provider. The transaction values the equity in Flock at £80 million and is
subject to regulatory approval. The acquisition is expected to be completed in
Q2 2026 and will be funded through existing resources and/or credit
facilities. As at 31 December 2025, the Group had a 3% investment in Flock.
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 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 have remained 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 disposal
group is included within the discontinued operations operating segment as
stated in note 4.
On 5 January 2026, the Group announced that, following regulatory approval,
J.C. Flowers had completed the purchase of Elephant as at 31 December 2025.
The transaction value included a cash consideration of approximately $30
million and deferred consideration receivable after the completion of the
sale.
13c. Financial performance
Financial information relating to the discontinued operations for the
financial period ending 31 December 2025 and 31 December 2024 are presented
below. The results for the financial year ending 31 December 2025 relates to
the profit earned prior to completion, and the loss recognised on disposal.
£m 31 December 2025 31 December 2024
Insurance service result before reinsurance 20.6 25.0
Net expense from reinsurance contracts held (3.7) (16.8)
Insurance service result 16.9 8.2
Investment return 4.5 4.7
Net insurance and investment result 21.4 12.9
Other income and expenses — (0.1)
Operating profit 21.4 12.8
Net finance costs — —
Loss on disposal (24.5) —
Loss before tax from discontinued operations (3.1) 12.7
Taxation expense 0.1 (1.0)
Loss after tax from discontinued operations (3.0) 11.7
13d. Assets disposed of
The carrying amount of assets and liabilities as at the date of sale are
outlined below. All assets and liabilities previously held for sale have been
disposed of as at 31 December 2025.
31 December 2025
£m Gross
Property and equipment 0.7
Intangible assets —
Reinsurance contract assets 15.6
Other receivables 2.3
Intercompany receivables 5.2
Financial investments 106.3
Cash and cash equivalents 19.6
Assets associated with disposal group held for sale 149.7
Insurance contract liabilities 81.8
Trade and other payables 8.6
Intercompany payables 4.8
Lease liabilities 0.6
Liabilities directly associated with disposal group held for sale 95.8
13e. Cashflow
The net cashflows incurred by the disposal group are as follows:
31 December 2025 31 December 2024
£m £m
Net cash (outflow)/ inflow from operating activities (3.9) 14.6
Net cash (outflow) from investing activities — (0.3)
Net cash (outflow) from financing activities (1.1) (0.1)
Net cash (outflow)/ inflow from discontinued operations (5.0) 14.2
13f. Loss on disposal
31 December 2025
£m
Cash consideration 22.8
Deferred consideration 10.6
Costs to sell incurred by seller (12.5)
Proceeds, net of transaction costs 20.9
Net assets held for sale 53.9
Other adjustments (9.6)
Foreign exchange difference 1.1
Loss on disposal of Elephant entities held for sale (1) (24.5)
1 Loss on disposal is included within profit before tax from discontinued
operations on the Consolidated Income Statement.
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.
Consolidated Financial Statement Note 31 December 2025 £m 31 December 2024 £m
Insurance revenue related movement in liability for remaining coverage 5b 4,979.3 4,553.4
Less other insurance revenue (282.2) (270.6)
Insurance premium revenue 4,697.1 4,282.8
Movement in unearned premium and cancellations (51.9) 369.4
Premiums written after coinsurance 4,645.2 4,652.2
Co-insurer share of written premiums 671.9 778.3
Total premiums written 5,317.1 5,430.5
Other insurance revenue 5b 282.2 270.6
Other revenue 8 153.1 136.3
Interest income on loans to customers 143.1 109.1
Turnover as per note 4 of financial statements 5,895.5 5,946.5
APPENDIX 1 TO THE GROUP FINANCIAL STATEMENTS (unaudited)
1a: Reconciliation of reported loss and expense ratios: Group (continuing
operations)
31 December 2025
£m Consolidated Financial Statement Note Core product Ancillary income Total gross Total, net of XoL reinsurance
Insurance premium revenue 4,516.0 181.1 4,697.1 4,545.7
Administration fees, instalment income and non-separable ancillary commission — 282.2 282.2 282.2
Insurance revenue (A) 5b/5d 4,516.0 463.3 4,979.3 4,827.9
Insurance expenses (B) 5c (938.8) (68.7) (1,007.5) (1,007.5)
Claims incurred (C) 5c/5d (3,250.3) (60.3) (3,310.6) (3,245.9)
Claims releases (D) 5c/5d 418.4 5.5 423.9 386.4
Quota share reinsurance result (1) (127.3)
Onerous loss component movement (2) 1.2
Underwriting result (E) 834.8
Net share scheme costs (3) (48.4)
Insurance service result 786.4
Reported loss ratio ((C+D)/A) 59.2%
Reported expense ratio (B/A) 20.9%
Insurance service margin (E/A) 17.3%
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) (2,850.0)
Claims releases (D) 5c/5d 553.0 3.2 556.2 421.3
Quota share reinsurance result (1 ) (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 £48.4 million (31 December 2024: £35.3
million), being gross costs of £75.9 million (31 December 2024: £56.1
million, see note 5c less reinsurers’ share of share scheme costs of £
27.5 million (31 December 2024: £20.8 million) are excluded from the
underwriting result.
1b. Reconciliation of reported loss and expense ratios: UK Motor
31 December 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 3,697.2 163.0 3,860.2 3,782.0 3,619.0
Gross premiums written 3,033.2 163.0 3,196.2 3,132.0 2,969.0
Insurance premium revenue 3,148.3 157.9 3,306.2 3,224.3 3,066.4
Instalment income — 155.1 155.1 155.1 —
Administration fees & non-separable ancillary commission — 50.2 50.2 50.2 —
Insurance revenue (A) 5b/5d 3,148.3 363.2 3,511.5 3,429.6 3,066.4
Insurance expenses (B) 5c (543.5) (56.7) (600.2) (600.2) (543.5)
Claims incurred (C) 5c/5d (2,264.7) (52.4) (2,317.1) (2,283.9) (2,231.5)
Claims incurred excluding Ogden (D) (2,284.7) (52.4) (2,337.1) (2,303.9) (2,251.5)
Claims releases (E) 5c/5d 330.5 5.2 335.7 310.4 305.2
Insurance service result, gross of quota share reinsurance 670.6 259.3 929.9 855.9 596.6
Quota share reinsurance result (2) (60.7) (60.7)
Onerous loss component movement — —
Underwriting result (F) 795.2 535.9
Current period loss ratio (C/A) 66.6% 72.8%
Claims releases (E/A) (9.1)% (10.0)%
Reported loss ratio ((C+E)/A) 57.5% 62.8%
Reported expense ratio (B/A) 17.5% 17.7%
Insurance service margin (F/A) 23.2% 17.5%
Current period loss ratio excluding Ogden (D/A) 67.2% 73.5%
Reported loss ratio excluding Ogden ((D+E)/A) 58.1% 63.5%
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) (55.6) (2,107.2) (2,078.1) (2,022.5)
Claims incurred excluding Ogden (D) (2,078.5) (55.6) (2,134.1) (2,105.1) (2,049.5)
Claims releases (E) 5c/5d 493.4 2.7 496.1 374.6 371.9
Claims releases excluding Ogden (F) 414.2 2.7 416.9 295.4 292.7
Insurance service result, gross of quota share reinsurance 931.7 240.0 1,171.7 981.1 741.0
Quota share reinsurance result (2) (228.8) (228.8)
Onerous loss component movement 1.1 1.1
Underwriting result (G) 753.4 513.3
Current period loss ratio (C/A) 63.5% 69.2%
Claims releases (E/A) (11.4)% (12.7)%
Reported loss ratio ((C+E)/A) 52.1% 56.5%
Reported expense ratio (B/A) 17.9% 18.2%
Insurance service margin (G/A) 23.0% 17.6%
Current period loss ratio excluding Ogden (D/A) 64.3% 70.1%
Claims releases excluding Ogden (F/A) (9.0)% (10.0)%
Reported loss ratio excluding Ogden ((D+F)/A) 55.3% 60.1%
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 £333.3 million (31 December 2024: £321.8 million).
2 Net share scheme costs of £40.7 million (31 December 2024: £29.6
million), being gross costs of £56.1 million (31 December 2024: £40.7
million, see note 5c) less reinsurers’ share of share scheme costs of £15.4
million (31 December 2024: £11.1million) are excluded from the underwriting
result.
1c. Reconciliation of reported loss and expense ratios: UK Other Personal
Lines
31 December 2025
£m Consolidated Financial Statement Note UK Household UK Travel & Pet UK Other Personal lines UK Household, net of XoL reinsurance UK Travel & Pet, net of XoL reinsurance
Insurance revenue (A) 5b/5d 521.0 189.1 710.1 494.6 188.3
Insurance expenses (B) 5c (114.0) (73.1) (187.1) (114.0) (73.1)
Claims incurred in the period (C) 5c/5d (334.9) (117.2) (452.1) (321.3) (117.5)
Changes in liabilities for incurred claims (releases) (D) 5c/5d 26.6 7.0 33.6 19.2 7.0
Insurance service result, gross of quota share reinsurance 98.7 5.8 104.5 78.5 4.7
Quota share reinsurance result (1) (35.3) —
Onerous loss component movement — —
Underwriting result (E) 43.2 4.7
Current period loss ratio (C/A) 65.0% 62.4%
Claims releases (D/A) (3.9)% (3.7)%
Reported loss ratio ((C+D)/A) 61.1% 58.7%
Reported expense ratio (B/A) 23.0% 38.8%
Insurance service margin (E/A) 8.7% 2.5%
31 December 2024
£m Consolidated Financial Statement Note UK Household UK Travel & Pet UK Other Personal lines 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% 62.9%
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 of £2.5million (31 December 2024: £1.6 million),
being gross costs of £8.7 million (31 December 2024:
£5.4million, see note 5c) less reinsurers’ share of share scheme costs of
£6.2 million (31 December 2024: £3.8 million) are excluded from the
underwriting result.
1d. Reconciliation of reported loss and expense ratios: European Insurance
31 December 2025
£m Consolidated Financial Statement Note Total gross Total, net of XoL reinsurance
Insurance revenue (A) 5b/5d 654.5 623.5
Insurance expenses (B) 5c (175.0) (175.0)
Claims incurred in the period less changes in liabilities for incurred claims (C) 5c/5d (419.7) (414.0)
Insurance service result, gross of quota share reinsurance 59.8 34.5
Quota share reinsurance result (1) (31.3)
Onerous loss component movement 1.2
Underwriting result (D) 4.4
Reported loss ratio (C/A) 66.4%
Reported expense ratio (B/A) 28.1%
Insurance service margin (D/A) 0.7%
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 £3.5 million (31 December 2024: £2.8 million),
being gross costs of £9.8 million (31 December 2024: £8.6 million, see note
5c) less reinsurers’ share of share scheme costs of £6.3million
(31 December 2024: £5.8million) 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 2025.
2a. Additional sensitivities to interest rate risk
31 December 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 27.8 25.6 26.3
Decrease of 100 basis points (30.2) (27.8) (26.3)
Increase of 200 basis points 53.7 49.4 52.5
Decrease of 200 basis points (63.4) (58.5) (52.5)
Changes impact profit before tax as follows:
* Interest revenue and other finance costs on floating-rate financial
instruments (assuming that interest rates had varied by 100 basis points
during the year)
* Changes in fixed-rate financial instruments measured at FVTPL
* Changes in the discounted fulfilment cashflows of onerous contracts
* Insurance claims expenses, reinsurance claims recoveries and finance income
or expenses recognised in profit or loss, as a result of discounting future
cashflows at a revised locked-in rate for the current period (i.e. assuming
that interest rates had varied by 100 basis points during the year).
*
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 European 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 and 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 and 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 / Risks Group customer numbers reflect the total non-unique customer or risks, being 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 annual 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.
Total Shareholder Return Total Shareholder Return is a measure of the overall financial benefit a shareholder receives from owning a company’s shares over a specific time-period. It reflects the percentage change in that benefit over the period, assuming reinvestment of all
income.
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 three 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. The rate changed to +0.5% across the UK in H2 2024, from -0.75% in Scotland and NI, and -0.25% in England and Wales. The +0.5% rate is expected to remain in place for up
to the next five years.
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.
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