Looking after
our future
Admiral Group plc
Sustainability Report 2021

About this report

Admiral Group plc Sustainability Report 2021

01

Contents

Admiral has always
focused on building profitable,
sustainable businesses forthe future.
We continued to evolve and refine our sustainability
disclosures in 2021, striving to improve the quality
and consistency of our ESG reporting.
What’s new this year?
The structure of this report aligns
with our newly developed Grouppurpose framework. The frameworkshows how we integrate our purpose
statement into all that we do, andwhat that statement means for ourcustomers, our people, our society,and our business. Further detail on
our purpose framework is available
on page 05.
In parallel to the development ofour purpose framework we ran our
first ESG materiality assessment
this year. The results are highlighted
on page 08. This has provided aplatform to refine our approach andambitions going forward. We aim
to ensure that our sustainability
approach complements our

corporate strategy and builds on ourGroup purpose framework.
As part of our efforts to provide
stakeholders with improved material
sustainability disclosures, we alsobegan reporting against the SASB
insurance standards in 2020. Our2020 SASB disclosures have been
included in this report, in addition
to the 2021 disclosures and can befound on page 36.
Admiral’s climate-related
reporting has been aligned withthe recommendations of the Task
Force on Climate-related Financial
Disclosures (TCFD) since 2019. The full
disclosure is available in the annual
report on page 107.

Introduction

3. Our society

0.1 2021 Highlights

02

Environment

0.2 Chief Executive’s statement03

3.1 Investing responsibly

27

0.3 Our purpose framework05

3.2 Responsible products

29

0.4 Our approach to sustainability

0630

0.5 Sustainability governance07

3.3 Embedding environmental sustainability
across our operations

0.6 Materiality assessment

08

0.7 UN Sustainable Development Goals

09

0.8 Ratings & recognitions

10

1. Our customers

Community
3.4 Giving back to our communities

31

4. Our Business

1.1 Clear and easy communication

12

4.1 Shareholder engagement33

1.2 Selling responsibly

13
14

4.2 Strong relationships with our partners
and suppliers

34

1.3 Measuring customer satisfaction
1.4 Managing customer complaints

15

4.3 Data privacy and cyber security

35

1.5 Providing fair and transparent
claims outcomes16

1.6 Key customer initiatives

17

2. Our people

5. SASB Disclosure

2.1 New ways of working

19

2.2 Our approach to talent development

20

2.3 A diverse and inclusive business21

2.4 Health and wellness across our operations

23

2.5 Recruiting the right people

24

2.6 Engaging and communicating with
our employees

25

Download a PDF of the Annual
Report at admiralgroup.co.uk

52021 SASB disclosure

36

Introduction

Admiral Group plc Sustainability Report 2021

02

0.1 2021 Highlights

Great customer
experiences

A great place to work

Positive impact onsociety

Successful businesses

In 2021, Admiral’s customer support
team helped over 2,700 financiallyvulnerable customers and almost
6,000 customers who have lost loved
ones. The team was created in 2020 in
response to the pandemic and helps
support customers who face financial
difficulty due to job loss, furlough, and/or illness.

In 2021, we hosted a Diversity &Inclusion awareness week under ourcommitment to build a working culture
where all feel supported and welcome.
The week was focussed on breaking
down barriers to progression andcelebrated National Mentoring Month,
LGBTQ+ History Month, Black History
Month, International Women’s andMen’s Days, Neurodiversity awarenessand more!.

In April, Admiral donated £1 million
to The UK Committee for UNICEF(UNICEF UK) to support its efforts
in communities hardest hit by
the pandemic in India. Admiral,
which employs 700 people in Delhi,
witnessed first-hand the impact of
Covid in the region. The donation
helped provide access to critical
oxygen supplies and increased rapid
Covid testing capacity.

Our purpose is to ‘Help more people
to look after their future. Always
striving for better, together.’
In 2021, we clarified our purpose
led approach to sustainability.
We conducted our first materiality
analysis and worked to outline oursustainability ambitions in line withfeedback received from internaland external stakeholders.

Read more on page 11

Customers

Read more on page 18

PeopleRead more on page 26

Society

1.2pt

>90%

17th

2nd

£6m

Group retention
rate increase

UK Motor customers likely
to renew after a claim1

Great Place to Workin Europe2

Great Place To Work for
women in the UK 2

Covid fund to support
local communities

Read more on page 32

Business

Net Zero
New ambition to reach Net
Zero by 2040

A

55%

MSCI ESG rating

average Group Returnon Equity last 5 years

£5m+

>95%

Over 350

100%

Excess fees waived for key workers in 2021

staff feel treated fairly regardless of race,
gender or sexual orientation2organisations supported as part of theAdmiral Support Fundof the investment portfolio is managed by
UN PRI3 signatories

1	UK Car (excl. UK Van customers).

2	Great Place To Work survey result.

3	United Nations Principles for Responsible Investment.

Introduction continued

Admiral Group plc Sustainability Report 2021

An introduction fromMilena Mondini, GroupCEO & Sustainability
Board Representative

I am truly proud of how
Admiral has acted todeliver the best possible
outcomes for all our
stakeholders.
2021 was again a year deeply marked by the pandemic and a year
where, despite improving conditions, many continued to sufferfrom its devastating effects. But it was also a year that I look backon with a deep sense of pride. Pride for all that Admiral did tosupport our colleagues, customers and communities and pride forthe work our colleagues did every day to shape Admiral into theamazing place that it is today.

Milena Mondini de Focatiis
Chief Executive Officer

03

Introduction continued

Admiral is a uniqueorganisation for manyreasons, and I’ll highlighta few of our achievements
which help define why I
believe this is such a
special business.

Admiral Group plc Sustainability Report 2021

In 2021, we maintained our track recordof delivering superior margins and brokeseveral business records. We passed the 8
million customer mark (!) and continued tosee more customers choosing to stay with us
year after year – a testament to our strong
customer proposition. Whilst undoubtably
our performance this year is again marked
by the unique market conditions, theseachievements are also a reflection of
Admiral’s leading customer service,
underwriting and claims management
capabilities. These are capabilities which
we’ve delivered on consistently well over theyears and which are core to the long-term
success of the business.
Despite most of our colleagues still working
from home, we worked hard to continue tobe an open and inclusive business. In our mostrecent company-wide survey, more than 95
percent of colleagues from across the Groupsaid that they felt people here are treatedfairly regardless of race, gender or sexual
orientation. We also made good progressagainst our commitment to achieve morebalanced gender representation across theGroup’s executive leadership. In 2021, 44%
percent of Admiral’s UK Executive teamwas female, and we achieved 50% female
representation on the Group Board.
This year also marked the acceleration in
our journey to support the environment.
At the half year results, we announced ourcommitment to reach net zero emissions by
2040, having already reached carbon neutral
status in 2020. In addition, we’ve worked hard

£6m
In 2020, we launched a £6 million
Admiral Support Fund to help
communities in need.

£1m
As part of the Admiral Support
Fund fund, we donated £1
million in 2021 to UNICEF to
support communities in India
hardest hit by the pandemic.

04

to support the transition to electric vehicles.
We aim to make sure that when customers
come to us, they can find a convenient
product that best suits their needs andat an affordable price.
We’ve taken a step back and reviewed ourcommunity strategy, looking at ways we candeliver the most impact. In 2020, we launcheda £6 million Admiral Support Fund to help
communities in need. As part of this fund,
we donated £1 million in 2021 to UNICEF to
support communities in India hardest hit by
the pandemic. In our international operations,
we allocated £1.2m from the fund and overthe past two years, support has gone towards
the fight against Covid and to causes close to
our colleagues’ hearts.
These are just some of the fantastic
achievements from this year, with many morethat make me proud every day. But we’re
not resting on our laurels. We’ve refreshedour sustainability commitments in 2021,
outlining ambitions which directly support
our efforts to build a business that helps more
people look after their future. A businessthat strives for better every day, with all of us
working together.
I believe that the progress we have made thisyear demonstrates our purpose of helping
people to look after their future.

Milena Mondini de Focatiis
Chief Executive Officer
3 March 2022

Introduction continued

Admiral Group plc Sustainability Report 2021

05

0.3 Our purpose framework

PeopleCustomer

Be one of the best places
to work in the world.

>95%

Achieve top #25 ranking
in the Great Place to Workawards, across our businesses

Always striving for
better together.

Society>350

Organisations supported
as part of the AdmiralSupport Fund

Achieve Net
Zero by 2040

pam

Covid fund tosupport local
communities

i
ve

£6m

ti
Posi

Make a difference throughpositive impact on society.

Provide great customer
experiences.

£5m+

Excess fees
waived for key
workers

ct

on
soc
iety

>90%

UK Motor customers likely
to renew after a claim

To improve NPS
scores acrossthe Group

Help more people lookafter their future.

Business
lb
us
ine
ss

% of colleagues
feel treatedfairly regardlessof race, genderor sexual
orientation

laGreat Place
to Work for
Women inthe UK

rea
tp

#2

es
enc
er i
xp
re

Great Place
to Work in
Europe

Ag

#17

ork
w
to
e
c

Grea
t cu
sto
m
e

u
sf
s
ce
Suc

Build successful businesses
with operational resilience.

55%

Average GroupROE in past
5 yearsA

MSCI ESG
rating100%% of investment
portfolio asset
managers are
signatories to
the PRI

Consistently strong businessperformance and shareholder return

Introduction continued

Admiral Group plc Sustainability Report 2021

06

0.4 Our approach to sustainability

Our purpose as a business,and the reason we exist,
is to ‘Help more people tolook after their future.
Always striving for better,
together.’This statement feeds into everything that
we do and is supported by our purpose
framework which shows how we plan on livingby this purpose statement, and what thatstatement means to not only our people but
our company, our business, and our society.
It is surrounded by the Admiral ‘formula’:
Being a great place to work = Great
Customer experiences = A successful
business = A positive impact on society.

As a leading financial services
provider we take careful steps toground all our business practices
with responsible management
and effective decision-making.
Our approach to sustainability
complements our corporate
strategy and helps translate our
purpose into action.

Our strategy
As a leading financial services provider wetake careful steps to ground all our businesspractices with responsible management
and effective decision-making. Our Group
corporate strategy centres around two
key priorities: to strengthen our corecompetitive position and to increase ourresilience to potential disruptive market
changes. To that end, we have accelerated
our evolution towards what we call Admiral
2.0, which aims to leverage Admiral’s
historical strengths, whilst growing ourdigital and agile capabilities. We are targeting
growth via product diversification, finding
new opportunities where we can deploy
our competitive advantages, and we are
evolving our propositions for changes
in mobility, keeping on top of the latest
industry developments.

Be one of the best places to work in the world

PeopleProvide great customer experiences

Customers

Business

You can read more about our strategy andwhat we do as a busines in the annual report.
Our approach to sustainability underpins
our corporate strategy and helps
translate our purpose into action. To help
communicate how our approach drives
long-term stakeholder value we launcheda sustainability project in 2021. The aimof the project was to further clarify oursustainability approach and focus. To ensurethat our approach addresses the key ESG
issues that matter most to our business andour stakeholders we conducted a formalmateriality assessment. The results of theassessment can be found on page 08 of
this report.

Commitment: Achieve top 25 ranking in the Great
Place to Work awards, across our businesses

Society

Commitment: Improve NPS scores acrossthe Group

Build successful businesses with
operational resilience
Commitment: Consistently strong businessperformance and shareholder return

Make a difference through a positive impact
on society
Commitment: Achieve Net Zero by 2040

Find out more
admiralgroup.co.uk

Introduction continued

Admiral Group plc Sustainability Report 2021

0.5 Sustainability governanceGroup Board: The Admiral Group Board is
responsible for promoting the long-termsustainable success of the Group and is its
principal decision-making forum. It is theprincipal governing body for sustainabilityrelated issues and takes ownership ofsustainability and climate-related topics andassociated stakeholder engagement. The
Board approves the Group’s sustainability
approach and objectives, including any
related ESG ambitions which could have amaterial impact on Admiral. Milena Mondini,Group CEO, is the appointed Sustainability
Representative on the Group Board.
Board Committees: The Board has delegatedauthority to several permanent committees
that deal with sustainability related matterswhere relevant and in accordance withwritten Terms of Reference. The Committeesof the Board are the Audit, Remuneration,
Group Risk and Nomination and GovernanceCommittees. These committees play animportant role in the Group’s sustainabilityrelated decision making processes. For
example, the Group Risk committee oversees
the management of climate-related risk andprovides appropriate governance oversight.
Sustainability Working Group:
A Sustainability Working Group (SWG)
was established in 2020 to help identify,
monitor and facilitate the implementationof sustainability ambitions across Group
operations. The working group supports
the Group Board and Admiral’s Executive
leadership team to ensure adequate

oversight is in place around sustainabilityrelated decision-making. This includes
monitoring the latest market developments
around ESG, supporting subsidiary entities
with their sustainability commitments, andsharing best practice ESG management.
In 2021, sustainability champions wereappointed from across the business to
support our ESG ambitions. Each champion
is required to report progress against ourcommitments directly to the sustainability
working group on a quarterly basis.
Climate Change Steering Group: Given theimpact of climate change and the increased
focus the area has received in recent years, a
subcommittee dedicated to climate change
was set-up in 2021. The climate change
steering group reports directly to thesustainability working group.
Forums & Ministries: Several internal forums
and ministries exist across the business to
uphold the pillars of our culture and monitor
areas related to sustainability such as staff
diversity, happiness, and wellbeing. For
example, the Diversity & Inclusion forum
consists of six working groups and drives
diversity and inclusion initiatives acrossthe Group. Several ministries such as the
Ministry of Fun and the Ministry of Healthorganise regular events to keep staff happyand engaged.

07

Introduction continued

Admiral Group plc Sustainability Report 2021

08

0.6 Materiality assessment

When outlining Admiral’s sustainability approach, we wanted to integrate our
stakeholders’ key sustainability priorities and better understand areas where Admiral
could have the strongest impact. To effectively do this, we conducted our firstcomprehensive materiality assessment in 2021, engaging directly with our customers,
key leaders across the organisation, and wider members of the community.
Category definitions

A materiality survey was designed
internally with questions relating to theperceived strategic importance to thebusiness, as well as the opportunity tohave a positive impact in these areas.
We interviewed over 500 managers, over2000 customers and over 2000 peoplein our communities. Participants wereasked to rank pre-identified and defined
focus areas, that had been pre-qualified
by the project team and deemed to be inalignment with Admiral culture.

Monitor: Topics that fall into the ‘Monitor’section will be added to an ESG tracker andmaintained/updated by the sustainability
working group. The aim is to record
information and developments relating tothese topics, with the view that they may
progress to an area that will be actively
managed in time.

Survey results were sense checked atvarious forums and subsequently allocatedacross three areas based on the feedback
received. Once the sustainability-related
initiatives were categorised, we were able
to outline what our immediate priorities
were based on their materiality weighting.
Our approach is likely to evolve overtime, and we will look to conduct further
materiality assessments in future which
will continue to engage with various
stakeholders for input, including ourpeople, customers, partners and suppliers,
shareholders and wider community.

Manage: Topics that fall into the ‘Manage’section will be prioritised in the ESG
tracker, as an ambition for the businessto develop and build on. Topics in thiscategory are also viewed as things that
we do well, and will be managed andmaintained. All ambitions will have anassigned owner, and initiatives will be
underway across the business to maintain
and/ or enhance these focus areas.
Focus: The topics that fall into this
‘Focus’ section are the areas that the
Sustainability Approach will focus on in the
short term (18 -24 months). It is expectedthat our ambitions in this section will
evolve over time.

ESG Priority

Stakeholder

How we address

Governance of managing risk and business resilience
Talent Acquisition & Development
Great Service
Product Quality
Employability and social mobility

Business
PeopleCustomer
CustomerSociety (Communities)

Page 34
Page 20
Page 14
Page 13
Page 31

Long-term shareholder value

Business

Page 33

You can also read more in our section 172 in the Annual Report (link) to see how thesepriorities feed into our strategy and reinforce our purpose.

Materiality matrix
The matrix presents an overview of the materiality analysis conducted in 2021 to rank
Environmental, Social and Governance (ESG) priorities of Admiral Group Plc.
Aggregated across all survey responses, workshops,
management discussions and SWG feedback

Monitor

Importance to stakeholders

Methodology

Our results revealed the following priorities:

Homelessness
and housing
Financialinclusion

ManageExecutive
Remuneration

Sports, artand culture

Admiral Impact
Stakeholder key
People*Customer

Focus

Fair andGreat
affordable priceservice
Impact of operations
Governance andon climate change
Productbusiness resilience
Employability andqualitysocial mobility
People, healthLong-term
Investing and wellbeing*
shareholder
Community
Innovation
responsibly
Talent acquisition
value
Health andand development*
PeopleWellbeingengagement*
Strong ethical
Educational
partnerships
Diversity andopportunities
inclusion*
Smart, green
Eco-friendly
External efforts
and safe
products
to fight climate
mobilitychangeSociety (Community and Environment)* Actively monitored and maintained as part of our culture.

Business

Introduction continued

Admiral Group plc Sustainability Report 2021

09

0.7 Our contribution to the UN SDGs

The Sustainable Development Goals (SDGs) are a set of 17 global goals developed by the United Nations, which define global priorities and aspirations for 2030. The goals aim to address majorsocietal and environmental concerns. The most relevant goals where we believe Admiral contributes are listed below:(4.4) Increase the numberof youths and adults
who have relevant skills,
including technical andvocational skills, foremployment, decent jobs
and entrepreneurship(5.5) Ensure women’s fulland effective participationand equal opportunities
for leadership at all levelsof decision making inpolitical, economic,
and public life.

(8.6) Substantially reduce
the proportion of youth
not in employment,
education, or training.

(10.2) Empower andpromote the social,economic, and politicalinclusion of all, irrespectiveof age, sex, disability, race,
ethnicity, origin, religion or
economic or other status.

(11.2) Provide access tosafe, affordable, accessible
and sustainable transportsystems for all.

(12.6) Encouragecompanies, especiallylarge and transnational
companies, to adopt
sustainable practices andintegrate sustainability
information into theirreporting cycle.

• Long-standing graduate
trainee programme• Fully gender balanced
Group Board• Launched Internal Career
Service to support
colleagues in careerdevelopment and toreach their goals• Achieved our target toincrease women at senior
management level to
40% by 2023

• £120,000 donated toJesus College, Oxford to
help reach and support
under-represented
young people at
Oxford and otherleading universities• Held our first UK-wide
Diversity & Inclusion
Week focussing on
breaking down barriers
to progression• Provide insurance cover
to both fully electricand hybrid vehicles• Actively engaged with
ESG1 rating providers –
integrating feedback into
sustainability disclosure

Our contributions• Recognised as one
of Canada’s Best
Workplaces for youth• Provided training on
unconscious bias for all
international executives
and key recruiters• Launched aninternational mentoring
programme to supportand empower highpotential women acrossthe Group• Partnered with Cardiff
University Aspire program:an 8-week internshipfor Black, Asian andMinority Ethnic students
and females in science,technology, engineering,and mathematics• Partnered with theMultiple Sclerosis Society
to host a national event
called Open the Door
• Partnered with Disability
Sport Wales, the leadingorganisation for thedevelopment of disability
sport in Wales

1 Environmental, Social, Governance.

• Sustainability AccountingStandards Board (SASB)
standards integrated into
the reporting cycle• Aligned disclosure withall recommendations
under the Task Force on
Climate-Related Financial
Disclosures (TCFD)
framework• Received externalverification of carbon
emissions dataIntroduction continued

Admiral Group plc Sustainability Report 2021

10

0.8 Ratings and recognitions

2021 company awards

2021 ESG ratings

Our company culture is based on four pillars: Fun, Communication, Equality and
Recognition and Reward. The awards that we receive are a great testament to thisculture, and reflect the positive energy, passion and values which our people havewherever they are.

Admiral has actively engaged with a number of key ESG rating providers since 2020. In
2021, we continued to disclose substantive ESG data that supports transparent decisionmaking. Over the past two years we have seen improved ESG risk rating performances in
the ISS ESG tracker, the Dow Jones Sustainability Index, and in our annual CDP disclosure.
We also continuously look at ways in which we can integrate the feedback received fromrating providers, shareholders, regulators and ESG-related experts to ensure our reportingaligns with best practice expectations.

Great Places To Work – UK

Great Places to Work – International

5th in the UK

17th in Europe
1st in Spain
5th in US
6th in Italy and France

2nd best
workplaces
for women

Moneyfacts

Best Companies – UKBest personal loan provider

5th best big company

Best car finance provider

Best big company
for wellbeing

Diversity leaders
Admiral UK ranked 26th out of 850
European companies in the Financial
Time’s Diversity Rankings

Public Health Wales
Health & Wellbeing gold certified

MSCI
MSCI ESG ratingassessment2• 2021: A

2	The use by Admiral Group of any MSCI ESG research LLC
or its affiliates (“MSCI”) data, and the use of MSCI logos,
trademarks, service marks or index names herein, do notconstitute a sponsorship, endorsement, recommendation, or
promotion of Admiral Group by MSCI. MSCI services and data
re the property of MSCI or its information providers, and areprovided ‘as-is’ and without warranty. MSCI names and logos
are trademarks or service marks of MSCI.

3	Average industry score of B, Admiral continues to enhance
disclosures to improve rating and has since made a public
commitment to net zero ambitions and begun our pathway
to decarbonisation.
4	Copyright ©2022 Sustainalytics. All rights reserved. This
report contains information developed by Sustainalytics(www.sustainalytics.com). Such information and data areproprietary of Sustainalytics and/or its third party suppliers(Third Party Data) and are provided for informational• 2021: C3

ISS
ISS ESG performance• 2021: 21.05• 4th industry
decile ranking7• 8th percentile
industry ranking6• 2021: 37/100

1	Spanish network of companies committed to diversity
and equality.

CDP Climate Score

Sustainalytics
Sustainalytics ESG
Risk Rating4

Dow Jones
Dow Jones
Sustainability Index

Admiral Seguros named in Top 30 companies
in diversity & Inclusion by INTRAMA1

CDP• 2021: C-

Tortoise
TortoiseResponsibility100
index• 53rd percentile
industry ranking8• 2021: 21st out of 100

purposes only. They do not constitute an endorsement ofany product or project, nor an investment advice and are notwarranted to be complete, timely, accurate or suitable for aparticular purpose. Their use is subject to conditions available
at https://www.sustainalytics.com/legal-disclaimers.

6	8th percentile score in the property and casualty insurance
sub-industry rankings (7th out of 82)

5	In September 2021, Admiral Group received an ESG Risk
Rating of 21.0 and was assessed by Sustainalytics to be at
Medium Risk of experiencing material financial impacts from
ESG factors.

7	A decile rank of 1 indicates high relative performance versus adecile rank of 10 which indicates poor relative performance.
8	Improved result. Average industry score: 40/100, composedof 127 companies

Admiral Group plc Sustainability Report 2021

11

1. Our Customers

91%

Placing thecustomer at theheart and startof every decisionof staff agree that
Admiral is truly
customer focused 1

In 2021 we have continued to evolve andinvest in how we communicate – optimising
our digital strategy and strengthening ouroperational capabilities.

1 Great Place to Work survey result.

1. Our Customers

1.1 Clear and easy communication

In 2021 we’ve made good strides
towards becoming a truly digital,and data first business. Ourchannels are both easy to accessand easy to use.
Throughout the customer lifecycle we offer
a range of communication channels to meetthe needs of our customers. The primarychannels available are online, via our brandwebsites, the customer MyAccount portal,
telephone, social media, or via our Admiral
App (available to UK-based customers).

Admiral Group plc Sustainability Report 2021

12

1. Our customers continued

Admiral Group plc Sustainability Report 2021

13

1.2 Selling responsibly

Customer-centricity is at the core of what
we do here at Admiral, and this is reflectedin our service. When selling our products
and services, we provide customers with
key information in a transparent way.

These characteristics cover crucial productfeatures and limitations, as customers should
be made aware of these before making an
informed choice on whether to purchasethe product. This includes a commitment
to, and the maintaining of, responsible
marketing practices1. For example, in
our UK insurance business all marketing
content complies with the advertising codes
written by the Committee of Advertising
Practice and enforced by the AdvertisingStandards Authority.
Vulnerable customers:
We acknowledge that some customers
may have different needs when it comesto being informed about our products.
Systems and processes are in place acrossthe Group to identify potentially vulnerable
customers – ensuring that appropriate
staff training is in place and that vulnerable
customers are treated fairly at each stageof the customer journey. We strive for allcommunications and information about
products to be understandable for customers
and that potential vulnerable customer
needs are considered. We try to ensure
that, where possible, varied channels ofcommunication are available. The needs ofvulnerable customers are also considered in
the development of all Group products, withspecific considerations given to the potential
positive and negative impacts of a producton vulnerable customers.

Ethical approach to machine learningand analytics:
We know that our customers want taking
out insurance to be an easy, hassle-freeprocess. We also recognise that for mostof our customers, digital platforms thatoffer tailored products suit their needs
best. To develop the most convenient andcompetitive customer platforms, we needto incorporate a range of insights into ourtechnological offering, including machinebased learning. We aim to do the right thingby our customers and commit to using theavailable data that is generated by the digital
economy in a fair and ethical way.

1	The Group has policies and guidelines in place to ensurethat communication with customers meets regulatory
standards and customers are making decisions based on
relevant and transparent information. Overall responsibility
for communicating to customers via these channels sits withthe heads of department for marketing and the respective
communication channel owners.

1. Our customers continued

Admiral Group plc Sustainability Report 2021

1.3 Measuring customer satisfaction

We make every effort to integrate customer feedback into
the core of our products and processes, and we measurecustomer feedback regularly across several benchmarks.

Obtaining regular customer feedback iscore to the way we do business, as it allows
us to understand what we are doing welland enables us to identify the priority areas
for improvement. Once we have received
customer feedback, we then seek to improve
our level of customer service by acting on thisfeedback and implementing any necessarychanges. Across our UK and international
insurance operations, the Net Promotor
Score1 (NPS) forms a key part of our businessstrategy and vision. In 2021, we confirmed
our ambition to continue to improve NPS
scores across our businesses – in line with oursustainability commitment to ‘provide greatcustomer experiences’.

1	Net promoter score (“NPS”) is a KPI that measures thewillingness of customers to recommend products orservices to a family and friend. It is used to measurecustomer’s loyalty to a brand.

14

1. Our customers continued

Admiral Group plc Sustainability Report 2021

1.4 Managing customer complaints

In 2021 we helped over 9,000 of our most vulnerable customers
through dedicated customer initiatives.
As a Group, we approach complaints
handling as an invaluable learning tool
for the continuous improvement of ourcustomer service and dedicated teams
are in place to manage these accordingly.
We enable customers to make complaints
through a multitude of channels, including
via telephone, email, and post and ensurethat these are dealt in accordance with thetimelines set by the regulatory bodies in theGroup’s respective operating locations.

As an example, Admiral’s complaint handlingprocess in the UK aims to make it easy
for customers to report complaints. We
ensure full investigations into complaints
are carried out, and give complaints theirrequired attention. We provide thoroughaccounts of Admiral’s actions, and ensure
customers are happy that complaints havebeen handled fairly. A complaint handlingguide is made available to customers on theAdmiral website and this outlines the timeline
for dealing with complaints in accordancewith FCA requirements, as well as details
on escalating claims internally and to the
Financial Ombudsman Service. Customer
and Conduct Committee processes arethen in place which ensure that appropriate
complaints handling is conducted. This
includes monitoring complaint volumes andtrends, root cause analysis and assurance ofthe control framework.

15

1. Our customers continued

Admiral Group plc Sustainability Report 2021

1.5 Providing fair and transparent claims outcomes

As an insurer, we are committed
to providing appropriate claims
practices that deliver fair and justoutcomes for customers in atimely manner.
We communicate with customers aboutclaims through a range of different channels,
including via telephone, on the website via
webchat, through the MyAccount portal, via
email, SMS message, and letter. As part ofthe claims handling process, Admiral informs
customers about the scope and limits of
their coverage. These details are explained
when customers take out an insurance policy
and are included in the customer’s policy
booklet or documentation. This process
allows us to continually assess and challenge
ourselves to achieve the best outcomes forour customers.

>90%

92%

% of UK Motor customers
likely to renew after a claim

First Notification of Loss callanswer rate16

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17

1.6 Key customer initiatives

Support for NHS staff and emergency
workers: Several initiatives were launchedin 2020 to support our customers during
the turbulent period of the pandemic. As
lockdowns continued into 2021, and theimpact of coronavirus stayed longer than
expected, we continued to support ourcustomers through a range of initiatives.
As an example, in Admiral’s Motor business
we provided free replacement vehicles to
NHS and emergency workers in the eventof an accident and their excess fees were
waived for any new claim that occurred
during lockdown periods.

To help support NHS key workers in the
UK in 2021 we:£0• Waived over £5m in excess fees
• Provided nearly 1,000 hire cars free of cost

Kudos: Kudos is a customer experience
programme that is available to all staff
in customer facing contact centres.
Kudos’ aim is to give a holistic view on
the customer experience and focusses
on the speed at which calls are answered,customer complaints, SMS feedback
and external call monitoring by senior

management. Dedicated to delivering
excellent customer service, 2021 saw us
make positive progress across these core
metrics. Senior managers reviewed over
4,000 calls with an average score of 8.3
out of 10 per call. In total, almost half of
all calls reviewed scored a 9 or a 10, an
increase on 2020’s performance

2021 	2021 	2020 	2019	

4,006
3,800

49%

2020 	5,000

2019	

45%
41.5%

Number of calls monitored
by senior managers% of Kudos calls scoring a
9/10 or 10/10

4,006

49%

Cristina’s customer commentary: In
recent years, our UK Insurance CEO,
Cristina Nestares, has shared monthly
feedback to staff on her customer
service highlights. This commentary
usually includes examples of greatcustomer service and describes any
process changes made that have helped
improve the customer experience.
Cristina also awards the title ofCustomer Champion to one of ourcustomer-facing agents as recognitionof their outstanding service forreceiving 10 out of 10 scores on their
SMS feedback questions.

10/10
International operations: Initiatives
across our international operations havefocused on operational improvements tostrengthen pricing and claims capacity.
For example, Admiral Seguros launcheda ‘cash-to-go’ initiative that utilises
artificial intelligence to analyse imagesof a damage claim and expedites thesettlement process for customers.
L’olivier made improvements to its online
customer journey, facilitating customer
access to digital solutions. A subsequent
increase in claims registered online
followed, highlighting customer demand
for more digital solutions.

Admiral Group plc Sustainability Report 2021

18

2. Our People

People who likewhat they do,
do it better
Admiral is built on aculture that values
employees, that isvibrant, fun andopen to all.

In 2020 we took the opportunity to reflect
on our purpose as an organisation. Following
hundreds of hours of listening to employees
and multiple employee workshops weoutlined a new Group purpose statement –Help more people to look after their future.
Always striving for better, together.

We believe that a key driver offinancial success starts withpeople who are happy to comeinto work each morning and weare guided by principles suchas “leave your ego at the door”
and “people who like what theydo, do it better”.

In 2021, we put an employee engagement
program in place to help our employees
understand how our new purpose statement
fits, not just with our colleagues, but within
the wider business and the societies we
operate in. Colleagues were able to learn
about our purpose through interactive
courses, various presentations across thebusiness, and internal news communication.

1	Great Place to Work survey result.

96%of Admiral staff
believe that when you
join Admiral, you aremade to feel welcome12. Our People

2.1 New ways of working

During the pandemic, we embraced the challenge of transitioning
almost our entire workforce to a remote working model, whilst
maintaining positive outcomes for our customers and protecting
our strong employee culture.
To ensure the successful transition, we
implemented a new Smart Working approach
built on four key pillars: Smart People –Smart Technologies – Smart Spaces – SmartBusiness Practices. Under this new Smart
Working umbrella we’ve been actively
engaging with our employees to understandtheir individual needs and testing new
solutions to implement as we transitionout of the pandemic-driven lockdowns.
Department blueprints have been created
and as we emerge out of the pandemic,
employees will have working solutions thatbest tailor to their evolving needs and that of
their departments.

Admiral Group plc Sustainability Report 2021

19

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20

2.2 Our approach to talent development

The Central Learning & Development
department (formerly Admiral Academy)
is Admiral’s central training hub and offers
support, learning opportunities andcareer advice to all employees. It is
composed of professionals and trainers
from across the Group who are on hand tooffer a prospectus of training programmes
and standalone courses.

41%
of open UK positions filled
by internal candidates
2020: 36%

In 2021, a core area of focus has been to
maintain a focus on diversity and inclusion
across all of our learning and development
efforts.
Staff training: When a new member of staff
joins Admiral, they are given comprehensive
induction training that covers both core topics
such as compliance and data protection, as
well as relevant material tailored to their role.
Following their induction, staff members areinvited to attend a wide range of compulsory
and non-compulsory training programs
annually which ensures they are kept on
top of expected codes of conduct and caneffectively develop in their roles. We collectfeedback at the end of each training session
to maintain programs which are both relevant
and effective, and if gaps are identified, wetailor our approach accordingly. In addition,
all staff participate in annual performance
reviews, which are an opportunity to discuss
their performance over the year and discuss
whether there is any additional training thatthey may benefit from.
In 2021, a new Head of Learning andDevelopment was hired within our UK
operations to refresh the wider staff
development’s team purpose and offerings –expanding our training content to better caterto the needs of the wider business. A new suiteof content to satisfy the learning needs of our
new “Smart Working” environment was rolled
out and will continue to expand in 2022.
Management training: We adopt a bespoke
approach to leadership training and tailor
our management development programsin line with strategic business needs. Senior
managers can access individualised coachingsessions through a mix of internal and external
providers, and further executive education
is offered in areas such as negotiation,communication, and leadership. Technicaltraining and qualifications are also madeavailable to help our leaders navigate
the latest developments in fields such as
automation and artificial intelligence.
At the end of each training program
managers are asked to evaluate themselvesto determine if they have reached a sufficientlevel of comfort in the relevant topics covered.
Further training needs are assessed based on
the responses received. In 2021, we began
actively developing a leadership pipeline
framework which will further enhance ourtailored learning and development approachfor Admiral’s managers and future leaders.
Internal mobility: During our 2020 annual
staff engagement surveys some membersof staff highlighted that they felt more
could be done to support their career anddevelopment. So, we listened and we acted.
In 2021 we launched a new Internal Careers
Office which incorporates a number ofdifferent initiatives designed to help staff
develop and achieve their goals. Someof the services offered focus on careeradvice, others with writing applications andinterview prep. We’ve seen some positive
results since it was launched and willcontinued to build on learnings in 2022. Since
it was set up in January we’ve held 494 careeradvice sessions, answered over 800 queries
and held 128 interview coaching sessions.

450+
online courses are available
to staff (UK operations)192k
online courses completed bystaff in 2021 (UK operations)

48k hours
spent by staff completing
online ilearn courses in 2021
(UK operations)30.9 hours
average staff training(UK operations)1

1	UK operations includes EUI
operations in Canada and India.

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21

2.3 A diverse and inclusive business
Read our Diversity Report at
admiralgroup.co.uk

We firmly believe that in order tocreate a successful working
environment, companies mustembrace diversity and inclusion
across all levels of the business.
Admiral has always built its business on astrong culture where people are encouraged
to be themselves and share their thoughts
and ideas.
Diversity policy: Guidelines and expected
standards of behaviour for diversity andinclusion are communicated to all membersof staff via the Group’s Equality, Diversity
and Dignity at Work Policy. This document
outlines our commitment to prohibit any typeof unfair discrimination and is the basis bywhich we ensure that staff are treated with
dignity and respect. The policy highlightsthat all managers should be alert to any
potential discrimination and harassment andshould actively prevent them from occurring.
Managers are expected to communicate
the policy across their teams and must be
responsive to anyone who makes a complaint.

Key diversity and inclusion initiatives:
We continued our engagement on diversity
and inclusion issues in 2021, building a morediverse and inclusive business for all.
• Mandatory Diversity and Inclusion training
for all colleagues.
• During the year, we held our first everDiversity and Inclusion awareness week
focussing on breaking down barriers
to progression.
• The number of women at executive senior
management level increased to 44%1
(2020: 34%).
• The Age Diversity Forum was relaunched
and a new steering group implemented totake new initiatives forward.
• An international mentoring program
to help women aspiring to be leaders in
the Group was put together and will belaunched in 2022.
• We signed up to the Business in theCommunity Race at Work charter, andimplemented its key requirements such asappointing an executive race sponsor for
the Group.

Tracking and strengthening diversity:
To monitor and strengthen diversity acrossAdmiral, a Diversity and Inclusion Forumwas created in 2018. This forum is headed
up by the Group’s Head of Diversity andInclusion and consists of six working groups.
These consider and implement ways wecan better support a diverse and inclusive
working culture. To drive the conversation
around diversity at the highest level, Cristina
Nestares, CEO of UK Insurance, was appointed
as the Diversity and Inclusion executive
sponsor in 2020.
The table below provides a breakdown of thegender of Company Directors and employees
at the end of the 2021 financial year:

Company Directors

2

Other senior managers3
All employees

4

Male

Female

6

6

4

3

5,722

5,595

Additional key
Diversity KPIs:5

6.9%
of our employees have an
ethnic minority background6.8%
of our employees identify
as LGBTQ+

7.3%
of our employees consider
themselves to have adisability or long-term
condition1	Across our UK-based operations.
2	Company Directors consists of the Board of Directors, as detailed in the 2021 Annual Report.
3	Other senior managers is as defined in the Companies Act 2006 (Strategic Report and Directors’ Report) and includes persons responsible for planning, directing or controlling the activities of the Company, or a strategically significant part of the Company,
other than the Company Directors defined in the note above. Any other Directors of undertakings included in the consolidated accounts that are not considered strategically significant have not been included.
4	All employees totalled 11,403 people. Of which 5,722 identify as male, 5,595 identify as female, 22 identify as other and 64 preferred not to say.
5	UK Employee data, including our support operations in India, Canada, Admiral Pioneer, AFSL, and Admiral Law.

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22

2.3 A diverse and inclusive business continued

Across our international operations we’ve alsoestablished an International Diversity andInclusion Forum hosted by People Services.
The forum connect Diversity and Inclusion
sponsors from across the Group to identify
ways we can better implement diversity andinclusion practices across business functions.
Over the last few years we have used ourstrength in analytics and data to look atdiversity through a more detailed lens. And
it has showed us that we can be better. As
of 2020, sensitive diversity data is collectedfrom information questionnaires on the staff
intranet which employees are asked to fill out
annually. We continue to focus on increasing
staff sensitive information completion
rates, as it will allow us to represent our
staff more accurately and inform strategy.
We do, however, acknowledge that not all
staff feel comfortable disclosing this type of
information.
Admiral’s full 2021 diversity data report canbe accessed here.

Supporting disabled employees: We givefull and fair consideration to applications for
employment made by those with disabilities,
having regard to their particular aptitudes
and abilities. We support any employee who
is disabled or has a life-threatening illness
and help them to contribute as long as theirhealth allows. To that end, a Disability Forumis in place to help promote inclusivity for
those with a disability. In 2019, the Company
was awarded Level 2 status of the Disability
Confident Award and is now aspiring toachieve the Disability Leader Award. Thereis also a Workplace Support Team to provide
support for those with physical disabilities,
neurodiversity and short-term mental
health problems. Training sessions to help
employees better understand those withneurodiversity are also readily made available
for our colleagues.

Diversity partnerships and signatory commitments: Actively engaging with ourcommunities and the societies around us has been a crucial part of Admiral’s culture
since 1993.

#TechSheCan

Women in Finance charter

10,000 black interns

30% club

ABI Talent andDiversity network

Armed Forces covenant2. Our People continued

Admiral Group plc Sustainability Report 2021

23

2.4 Health and wellness across our operations

We are committed to providing
a work environment where
people feel supported
and engaged.
We encourage staff to actively communicate
how they’re feeling, especially so during
recent periods of homeworking, and provide
managers with the appropriate tools to
support employee needs.
Flexible working solutions: All employees
have the right to request flexible working
solutions for any reason, whether that be aneeded adjustment in individual’s workload,or changes to working hours due to caring
responsibilities. We offer staff the opportunity
to adjust their total required working hours,or the times at which they work, to ensurethat they can maintain a healthy work-lifebalance. In 2021 we began setting-up several
community groups for parents and carers to
help share best practice/tips and build internal
networks to support their return to workand ensure they can integrate back into theworkforce effectively

Mental and physical health: Our internal
People Services and Workplace support
teams have implemented a wide set of
initiatives and created several training
resources to help support staff with their
particular wellbeing needs. These are madereadily available on our staff intranet andregular emails are also sent to highlight thevarious resources available.
Staff have access to Employee Assistance
Programs which provide free and confidential
support. In cases where staff may have been
identified as potentially vulnerable, we takeadditional steps to put them in touch withassigned people services executives who
ensure they receive the appropriate level of
support. In the UK, Admiral has achieved aGold status in the annual Healthy Working
Wales awards every year since 2013 – atestament to the work done do to prioritise
health and wellbeing in the business.

Grievance reporting: Grievance processes
are in place to ensure open communication
across the business. These give staff theappropriate tools to discuss any issue they
may have and resolve these effectively. The
severity of a given issue dictates whether
formal or informal steps are taken to solve
the problem. If considered a severe issue, an
independent party is allocated to the case toensure the process remains impartial. If at any
point a staff member feels uncomfortablewith the grievance process, steps are also
taken to ensure they receive the necessary
support from our people services function.
The length of any grievance process will
depend on the type of grievance reported
but we aim to resolve these appropriately
and quickly. If staff feel unhappy with theoutcome of their formal grievance process,they are able to raise an appeal which isinvestigated accordingly.

Employee Benefits: An important pillarof Admiral’s core benefits program is theGroup’s share scheme. We strongly believethat a company works at its best if people
feel like they own part of the company, andcan actively benefit from its success. As
such, all of our people, at every level, and inevery part of our business, who have been
fully employed for one year receive shares1
through our Approved Free Share Plan (SIP) or
SIP equivalents2. In addition, a large numberof managers and high-performing employees
also receive shares through the discretionary
free share scheme program (DFSS) as areward for their hard work. In 2021, over
3,700 staff received DFSS shares under
this program.
A wide range of non-salary benefits covering
all employees are also available. This includes
support for medical appointments, buy-a-bookschemes, company support for dependent
care through cooperation with local childcare
facilities, and a wide variety of leave
opportunities such as maternity/paternity
leave, dependent care leave, career breakleave, compassionate leave and charity leave.

1 Pro-rata for part time staff.
2	Over 10,000 staff received shares under the share scheme
program in 2021.

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24

2.5 Recruiting the right people

Our Recruitment programs are designed to align with the strategic needsof the business. In 2021 we maintained a flexible approach to recruitment,in light of the pandemic and limited face-to-face interactions.

44%
we reached our 2023 gender
diversity target, achieving
44% female representation ata senior management levelacross our core UK functions.

We’ve taken steps to strengthen our
recruitment practices this year, bringing
together several recruitment areas to offer
candidates a wider choice of opportunities
and investing resources to increase internal
mobility. Additionally, to support diverse andinclusive recruitment at senior executive
level, recruitment teams were tasked toensure women are present on short lists foradvertised senior roles, and where possible
for the lists to be 50/50 gender balanced.
This also includes making sure that ourinterview panels are diverse.
Maintaining a diverse talent pipeline:
As a signatory of the Women in Finance
Charter, we are committed to supporting
the progression of women into senior rolesin the financial services industry by focusing
on the Executive and mid-tier talent pipeline.
In 2021 we reached our 2023 gender diversity
target, achieving 44% female representation
at a senior management level across our core
UK functions.
To ensure that we maintain a high proportionof women in senior leadership positions, in
2021 we created a leadership training course
designed to support the development of
future female leaders. The 18-month training
and mentoring programme, Get Discovered,
opened for applications in January 2022 andwill begin in May 2022. The programme, which
is open to every woman who is a permanent
employee of the Group and aspires to be aleader, has been developed to run alongsidea candidate’s current role. Get Discovered isjust one of the ways that we are delivering on
our promise to ensure our female colleagues
can reach their full potential at Admiral.

979
Total number of new
employee hires(Male – UK operations)2020: 461

934
Total number of new
employee hires(Female – UK operations)2020: 441

213
Total number of new
management hires(Male – UK operations)2020: 110

159
Total number of new
management hires(Female – UK operations)2020: 76

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25

2.6 Engaging and communicating with our employees

We work hard and dedicate alot of effort to making sure our
employees feel involved andknow what is going on aroundthe business.
Our culture is built on an environment
where staff feel that they are part of a wider
collective and that their contributions play avital role in our continued success. This is best
exemplified by the ‘Admiral puzzle piece’ which
all new starters receive, and which symbolisesthat only together, as a complete picture, canwe be successful over the long term.
Employee Consulting Group: The Admiral
Employee Consulting Group, or ECG for
short, was implemented in 2019 and gives
staff a further platform to engage withmanagement and the Admiral Group Board.
Each department in the business has an
assigned ECG representative, voted for bypeers and colleagues, who are responsible
for putting forward the views, opinions andquestions from their department to the ECG.
ECG representatives share with the Boardand senior managers what they believe
Admiral is doing well, or needs to improve.
In 2021, topics discussed included Admiral’s
corporate strategy, developments aroundsmart working, and the Group’s remuneration
practices. No topics are considered ‘offlimits’ and staff are encouraged to share
their opinions to ensure transparent and fairconversations can occur.

Great Place to Work Survey (GPTW): The
GPTW Best Workplaces survey is our annual
Group staff survey and acts as an importantmechanism for the business to understandhow staff are feeling and which areas theywould like to improve. The survey forms partof our ongoing commitment to create anenvironment where our people feel valued,
respected and listened to. We encourage
staff to give honest feedback that helps us
understand what staff would like changed orare currently unhappy about.
As part of our 2021 sustainability
commitment to ‘be one of the best places
to work in the world’, we’ve set out theambition to achieve top 25 rankings in
the GPTW surveys across all businesses
and geographies.

Responding to employee feedback:Following the 2020 GPTW survey feedback,three areas of focus were identified. Those
areas are Reward, Career & Development,
and Wellbeing.
(1) 	Across rewards, a new team has been
set up to focus on everything we do as
a business that falls under the reward
umbrella. This includes pay, working
hours and shares to understand how
we can ensure our rewards remaincompetitive and continue to attract
the right talent.
(2) 	Admiral’s Central Learning &Development department has sought
to build stronger relationships withvarious parts of the business through alearning & development business partner
network. New training initiatives havebeen rolled out across the business andprograms are being developed to help
support the transition to a fully Smart
Working environment.
(3) 	Additional counselling sessions havebeen made available to staff as a resultof feedback received and anyone withdifficulties working from home has beenable to access one on one support fromthe business. Wellbeing Champions
have been introduced across various
areas to support and enhancecommunication on all the services
available to colleagues.

78%
Group Great Place to Work(survey) completion rate

88%
Colleagues believe that
Admiral is a great place
to work

90%
Colleagues feel encouraged
by Admiral’s commitment to
Smart Working

Admiral Group plc Sustainability Report 2021

3. Our Society

89%

A positive
impact onsocietyof staff feel goodabout the ways in which
Admiral contributes tothe community1

We strive to have a positive
impact on the communities
and environment around us.
As a large organisation across anumber of countries we firmly believe
it is our responsibility to give back to
the communities around us and todemonstrate responsible behaviour withregards to the environment.

1 Great Place to Work survey result.

26

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Admiral Group plc Sustainability Report 2021

3.1 Investing responsibly

In order to manage ESG risks
across Admiral’s proprietaryinvestments – which stem
primarily from the premiums
collected across our insurance
operations – a responsible
investment policy wasestablished in 2019.
The policy requires ESG considerations to
be integrated into each step of investment
decision-making, for ESG risks to bemonitored, and active engagement with ourasset managers. In total, we currently haveinvested £3.86bn across a variety of asset
classes, with systematic ESG integration
across the entire investment portfolio1.

ESG Integration: ESG considerations areintegrated across all of Admiral’s assets.
The purpose of the Responsible Investment
policy is to mitigate Environmental Socialand Governance (ESG) related risks andachieve more sustainable long-term returns.
Admiral’s investment portfolio weighted
average ESG score has an MSCI “A” rating(6.85 ESG score).

Asset manager selection: We actively
collaborate and engage with our asset
managers to address ESG risks andopportunities. We conduct regularreviews and ensure all our asset managers
are signatories to the UN Principles for
Responsible Investments (UN PRI). In 2021,
100% of our assets continued to be managed
by UN PRI signatories.

Investment management: All of Admiral’s
proprietary investments are managed bythird-party asset managers. Oversight is held
by Admiral’s internal investment department,
which works with Admiral’s third-party
managers to implement the Group’s
investment policy requirements. Progress
reports are provided on a quarterly basis to
the Group’s Investment Committee, which
reports directly into the Group Board. The
committee ensures compliance with bothoutlined policy requirements and the Group’s
investment risk appetite. Additionally, theHead of Investments at Admiral collaborates
closely with other sustainability-related
functions and acts as the designatedrepresentative for responsible investing on
the Sustainability Working Group and Climate
Change Steering Group2.

Identifying ESG investment risks: In 2021 webegan applying an ESG scoring process across
our listed asset classes to help systematically
identify and manage ESG risks across ourportfolio. We use external data provided by athird-party provider (MSCI ESG Research) toprovide us with relevant investee ESG scoresand their contribution to the United Nations
Sustainable Development Goals. This data is
integrated into the Group’s wider investment
decision-making process and ensures anappropriate level of ESG management. Per
the Group’s responsible investment policy,
minimum average ESG scoring requirements
are in place and we actively engage withasset managers where risks are identified.
This process is overseen by Admiral’s Head ofInvestments who acts as the dedicated ESG
representative responsible for analysing ESG
issues and monitoring investment policies.

1	The responsible investment policy covers all assets under management.
2	More detail on Admiral’s sustainability governance process can be found in page 07 of this report.

27

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Admiral Group plc Sustainability Report 2021

3.1 Investing responsibly (SASB disclosure requirement) continued

Engagement strategy: All forms of company
engagement are conducted by the Group’s
third party asset managers. We believe
engagement from the asset managers is
far more effective than direct engagementfrom Admiral. We actively encourage ourasset managers to engage with companies
that underperform against defined ESG
requirements and ensure appropriate steps
are in place to manage any emerging ESG
risks. Stewardship is an important factor
in manager selection and Admiral reviews
stewardship and engagement reports anddiscusses the results with asset managers.
In relation to climate laggards, Admiral
has mandated its asset managers who
run bespoke accounts to engage withhigh emitting firms who are not aligningthemselves with the goals of the Paris
Agreement.

of our scope 3 investments (all asset types
are included). To ensure this is done correctly
we are following the Net Zero Investment
Framework that was laid out by the Paris
Aligned Investment Initiatives (PAII). Whilst
this process will likely evolve through time,
we are committed to aligning ourselves withthe latest climate science to minimise ourcarbon impact.

Exclusions: Outlined in the Group’s
responsible investment policy is thecommitment to exclude investments in:
Energy firms deriving over 10% of annual
revenue from coal, energy firms deriving over
10% of annual revenue from tar sands, allcluster munition producers.

Sustainability themed investments: In 2020
we outlined our commitment to allocate
a minimum amount of securities in ourinvestment portfolio to those with a clear
positive impact e.g. those which provide
climate solutions or progress towards the
UN Sustainable Development Goals. By theend of 2021, this included green bonds,
loans backed by shared ownership housing,renewable energy infrastructure, and a rangeof corporate bonds which have revenues
contributing positively to sustainability
issues (as defined by the MSCI Sustainable
Impact Revenue metric).

Aligning our portfolio with a below
2-degree world: In 2021, the Group madea commitment to reach Net Zero across all
emissions by 2040. This is a comprehensive
target which includes the Group’s scope 1 and
2 operational footprint, as well as the impact

In 2021 our focus has been on refining andstrengthening the portfolio’s climate data
set to enable better decision-making towards
our net-zero commitments. To support ourefforts, Admiral Group became a member of
the Institutional Investors Group on Climate
Change (IIGCC) in 2020. Together with othersignatories, we are working to enable better
investments in solutions that drive tangible
progress towards a more resilient future28

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29

3.2 Responsible products

The Group’s principal
underwriting policy mandates
the delivery of fair customer
outcomes across insurance
operations and creates aframework under which
individual group entities are
expected to embed a customer
centric approach at all levels.
Products are expected to meet
consumer needs, provide
competitive prices, and maintainhigh retention rates.

Managing underwriting risks: Coinsurance
and quota share reinsurance arrangements
are used extensively in the Group’s businessmodel to share the risks with third parties.
In addition, excess of loss reinsurance
arrangements help reduce the exposure tolarge single losses and catastrophic weather
events. Experienced pricing, underwriting,and claims management teams are in placeacross the business and ensure that Admiralcontinues to maintain an industry leading
underwriting track record. Data is core to
our decision-making and forms a key pillar
by which gaps in performance are quickly
addressed and rectified. Looking ahead, we
have also taken steps to monitor the impact
arising from climate change risks1, coveringboth physical and transitional risks, as wellas other emerging risks which may impact
premium or catastrophe drivers.
Appropriate reporting channels are inplace across each Group entity to ensure
underwriting and pricing decisions arealigned to the Group’s underwriting policy
requirements and aligned with what isbest for our customers. Regular reportingis in place to relevant local Boards andCommittees, with processes that enableefficient escalation to Group Risk and AdmiralGroup Board where necessary.

Read more about our TCFD on
page 107 of our Annual report

Products which incentivise health and/or environmentally responsible action:
Admiral provides several insurance solutions
related to energy efficiency and low carbon
technology as part of its core Motor book.
These include insurance cover for bothelectric and hybrid vehicles, telematics
insurance, flexible insurance under the Veygo
brand, and more recently as part of our
new Kooalys small fleet insurance venture
in France. These enable our customers toembrace more flexible driving habits andreduce their footprint on the environment.
We have continued to evolve our electricvehicle (EV) proposition in order to givecustomers the assurance that if they choose
to go electric, they will continue to find theright level of cover with us. The share ofelectric vehicles still forms a relatively smallpart of total motor product sales but it is
rapidly growing. In 2021, our electric vehicle
customer base in the UK grew by 150%
year on year.
Telematics products involve fitting a small
device into a customer’s car which measures
how well the customer drives and rewards safe
drivers with discounted insurance at renewal.

1	Detail of the Group’s climate scenario modelling can be found in Admiral’s 2021 TCFD report – available here.

This device records data on cornering, braking,journey lengths and time of driving. Admiraluses this data to create a personalised
driving score for each customer, with those
who drive safely being more likely to get a
discount at renewal. Customers can accesstheir personal dashboard to view their driving
performance and receive regular tips tohelp them drive more safely and receive thebest discount.
Through Admiral’s UK Veygo brand, theGroup offers temporary car insurance
cover and learner driver insurance to UKbased customers. These products provide
access to flexible and easy to use insurance
solutions that works around customer’s
lifestyles. Veygo forms an important partof Admiral’s test-and-learn strategy where
new opportunities are constantly exploredin response to wider societal changes
in mobility trends. Temporary insurance
solutions in particular could play an importantrole in the transition to the low carbon
economy as customers choose to reduce
their use of personal vehicles or move awayfrom vehicle ownership completely.

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Admiral Group plc Sustainability Report 2021

30

3.3 Embedding environmental sustainability across our operations

We strive to run our facility
operations in an efficient andresponsible manner, minimising
our impact on the environment
where possible and investing in
low-carbon solutions to reduce
our environmental footprint.

Carbon emissions:

Scope 2 – location-based

2,074

Our net zero commitments:

Scope 2 – market-based0Admiral Group has formally committed toachieving net zero greenhouse gas emissions
by 2040 at the latest, across all three scopesof emissions, and to cut these emissions inhalf by 2030. A commitment was also madeto achieving net zero in directly controlled
operational emissions by 2030. There is a highlevel of alignment between Admiral Group’s
announced targets and the ABI’s climatechange roadmap, published in July 2021:
intermediate targets of a 50% reduction inemissions by 2030 are aligned, both cover
all scopes of emissions, however Admiral istargeting net zero by 2040, ten years aheadof the ABI’s roadmap.

Total Scope 1 & 2(Location-Based)

In 2022 Admiral aims to complete verificationof its scope 3 emissions, and then begin
working to set Science-Based Targets, which
will complement the Group’s overall net
zero ambitions.

1	Further detail on the methodology used is available in the
Streamlined Energy and Carbon Reporting section of the2021 Annual Report.
2	Natural gas and transportation fuels (petrol and diesel).

Equipment and plant modernisation is also
being planned for the next financial year
and includes the upgrade of the BMS system
in Cardiff and replacement of air-condition
plant in Swansea.

During the reporting period January 2021 to December 2021, our measured Scope 1 and 2
emissions (location-based) totalled 4,516 tCO2e.
FY2020

FY2021
Total

UK

Rest
of world

Total

1,121

1,285

192

1,477

1,712

3,786

1,768

1,272

3,039

1,798

1,798

25

1,332

1,357

2,074

1,712

4,907

3,053

1,463

4,516

Total Scope 1 & 2(Market-Based)

0

1,798

2,920

1,310

1,523

2,834

Scope 1 & 2 intensity per FTE(Location-Based)

*

*

0.4

0.4

0.4

0.4

Scope 3

*

*

535

435

517

952

UK

Rest ofworld

Scope 1

Overall, our Scope 1 and 2 emissions havedecreased by 8% against last year. This wasdue to improved control in our Building
Management Systems in our largest
locations. We purchase 64% of our electricity
from renewable sources, meaning our Scope
1 and 2 market-based emissions were 2,834
tCO2e, a decrease of 3% from last year.
The impact of Covid has resulted in working
from home being adopted as the norm, withthe office spaces being managed in alignment
with statutory and regulatory compliancerequirements. This has naturally resulted in a
reduction of utility usage and driven a floor
space reduction, which has further increased
the energy or utility savings.

The building management within the UK
sites of Newport, Cardiff and Swansea arecontrolled by Building Management System(BMS) which are actively monitored for
performance optimisation and time schedule
efficiency, and with the requirement tointroduce greater amounts of fresh air into
the buildings which is achieved via the BMS
systems has resulted in a marginal increase inutility consumption.
During this period, we have taken theopportunity to engage with specialist
consultants to review the building operationand explore decarbonisation measures
such as the removal of natural gas in Cardiff
and introduction of air source heat pumps.

We continue to engage our employees inenergy efficiency campaigns and to explore
the use of emerging technology, such ashydrogen boilers.
Our Scope 3 emissions account for businesstravel, waste and water1.
This year, we have expanded our reporting
boundary to include Category 3: Fuel andEnergy-Related Activities not included in
Scope 1 or Scope 2 (FERA). Our measured
Scope 3 emissions totalled 952 tCO2e.
During the year, our total fuel and electricity
consumption totalled 18,493 MWh, of which
72% was consumed in the UK. The split
between fuel and electricity consumption isdisplayed below:
FY2021
Energy consumption
(MWh)

UK

Rest of
world

Total

Electricity

8,325

4,606

12,931

Fuels

5,033

530

5,562

2

For further detail on the ways climate change
will impact the Group now and in the future,please refer to Admiral’s 2021 TCFD report.

3. Our Society continued

Admiral Group plc Sustainability Report 2021

31

3.4 Giving back to our communities

As a large employer with offices across anumber of countries, we firmly believe
it is our responsibility to give back to
the communities around us. In 2021 wehave focused on exploring ways bywhich we can generate meaningful
impact and reviewed the Group’s
approach to community engagementfrom a holistic perspective.

Financial support: Across our UK operations,the Community Chest scheme is a core pillarof our efforts to support local communities
and a means by which we make sure ourcolleagues have a say in where community
funding is allocated. The scheme enables
staff to submit community funding requests
directly to the business and helps provide
support for organisations close to theirhearts. Since the fund was set up in 1998
by Admiral co-founder Henry Engelhardt,
it has contributed to hundreds of different
organisations each year. In 2021, thecommunity chest scheme had a total budgetof £130,000.

The Community Chest
scheme is a core pillar of
our efforts to support localorganisations and a means bywhich we make sure our staff
have a say in where community
funding is allocated.

In addition to the community chest scheme,
an Admiral Support Fund was set up in 2020to provide community support to those mostimpacted by the pandemic. A combined £6
million was set aside and as at the end of2021, over 350 organisations have received
support from the fund. From this £6 million
commitment, Admiral donated £2 million
to the ABI Covid relief fund in 2020 and£1 million to UNICEF in April 2021 to help
support our colleagues and local communities
in India. Through the donation, UNICEF
were able to deliver over 7,000 oxygen
concentrators, more than 300 PCR testingmachines, and distribute over 10 million
items of personal protective equipment.
Of the remaining £3 million, an additional£1.8m went to supporting local UK
organisations. This included a £350,000
super-donation in December 2021 toten organisations across Wales.

One of the charities benefitting fromthe donation is Tŷ Hafan, a leading Welsh
children’s charity which provides comfort,
care, and support to children with lifelimiting conditions. The remaining £1.2m wasallocated to our international operations.
International community initiatives focused
primarily around support for Covid protective
equipment as well as organisations that areclose to our colleagues in areas such as social
injustice and natural disaster relief.
Employee support: One of the other ways
our employees can give back is throughAdmiral’s ‘Give a Day’ scheme. The scheme
was launched in 2021 and exists to help ourcolleagues support local communities. As
part of the scheme, each member of theGroup’s UK operations are allocated 2 paiddays off annually to go out and help a local
charity or other organisations of their choice.
Employability & Education: A focus of ourcommunity support initiatives in 2021
centred around enabling education, whilst
supporting social mobility. In 2021, Admiraldonated £120,000 in support of Oxford’s
Jesus College outreach programmes acrossWales; support that will enable theUniversity Access & Outreach team todevelop new access activities, enhanceexisting programmes and reach moreacademically-gifted young people in Wales.

Social Mobility Pledge

Institutional Investors
Group on Climate Change

Business Disability Forum

Fintech pledge

The Cardiff Commitment

Arts and Business Cymru

Admiral Group plc Sustainability Report 2021

4. Our Business

Building successful
businesses with
operational
resilienceAs a leading financial services
provider we take carefulsteps to ground all ourbusiness practices withresponsible management andeffective decision-making.

90%of staff feel that ourfacilities contributeto a good working
environment1

1	Great Place to Work survey result.

32

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Admiral Group plc Sustainability Report 2021

4.1 Shareholder engagement

We regularly engage with theGroup’s shareholders to promote
open and transparent dialogue.
Issues discussed generally relate to theGroup’s financial performance, product &service updates, and the long-term strategyof the Group. These engagements provide
current and potential investors with insights
into Admiral’s strategy and are a means bywhich we receive feedback. The Investor
Relations Team oversees engagement with
the Group’s shareholders and provides regular
updates to the Group Board. The team alsoorganises meetings between Board members
and/or management and investors, including
conferences, one to one management
meetings, and annual Corporate Governancemeetings with our Board Chair and investors.
In 2021, all meetings were held online as theimpact of the Covid pandemic continued to
impact face-to-face communication. Despite
this, the Group was able to continue its
regular shareholder engagement.

14

150+

Investor conferences
attended by managementin 2021

investor activities hosted by
the Investor Relations teamin 202133

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34

4.2 Strong relationships with our partners and suppliers

The Group’s strategic partners
and suppliers comprise a mix offinancial partners, reinsurance
partners, IT hosting, distribution
and claims management andclaims services partners.
Relationship with suppliers: In 2021, we
continued to embed sustainable practices
across all our procurement engagements.
Our approach is guided by the Group’s
Procurement and Outsourcing Policy, which
provides the framework and policy guidelines
for all procurement activity1. As part ofthese guidelines, employees who engage inprocurement activity are required to maintainthe highest standard of integrity at all times
and to fully comply with laws and regulations.
During any tender process, potential suppliers
are asked to complete a due diligencequestionnaire which focuses on areas suchas financial crime, data protection, modern
slavery, and environmental accreditation.
Suppliers are grouped into supplier types
based on their strategic importance andrisk profile. Where risks are identified, we
actively engage to understand the cause
and take appropriate action based on the
response received. We maintain a zerotolerance approach towards modern
slavery and regularly risk assess suppliers
within our supply chain to ensure
modern slavery is not a feature.

Detailed information about the Group’s
approach to mitigate modern slavery risks
can be found in our annual modern slavery
statement on the Admiral website.
We’ve also taken steps to improve technology
and automation solutions within our Group
Procurement function to increase governanceoversight and strengthen relationships with
suppliers. Looking ahead, we are working tofully embed these procurement controls in
2022. This will help ensure we can continue
to effectively assess our supply chain,engage with suppliers on the most importantand relevant topics, and give appropriate
consideration to any rising modern slavery
and environmental risks in the future.
Co-insurance and reinsurance partners:
We consider our co-insurance and reinsurance
contracts to be essential to the running of
the Group’s business. Particularly as a numberof these arrangements include featuresthat allow for reinsurers to recover losses
incurred under certain scenarios consideredremote by the Group Board. As such, we werepleased in the first half of 2021 to conclude
negotiations with our largest reinsurer Munich
Re to extend our risk sharing partnership in
the UK car insurance business2. These renewed
agreements form part of our commitment to
mitigate any large claims losses by ensuringthat a diverse range of financially securereinsurance partners, including a long-term
relationship with Munich Re, are in place.

1	This excludes the placement of reinsurance (which is governed by the Reinsurance Policy).
2 Further detail on the Group’s co-insurance and reinsurance arrangements can be found in the 2021 Annual Report.

4. Our Business continued

Admiral Group plc Sustainability Report 2021

4.3 Data protection and cyber security

Data privacy and protection: Admiral’sdata protection policy outlines the Group’scommitment and obligations regarding
the processing of personal data. The policy
applies to all Admiral Group users withaccess to personal data and data processing
systems, and applies equally to permanentand temporary staff, contractors, partners,
and suppliers.
In line with the General Data Protection
Regulation (GDPR) we work to ensure thecorrect, lawful and transparent handling of
personal data and ensure staff stay informed
via regular compliance training. Privacy
by design is fundamental within productand process design, and all developments
are subject to robust Privacy Impact
Assessments, and continued complianceis monitored through regular reviews andaudit activities carried out by the Data
Protection and Privacy Team and the Internal
Audit function.

To ensure transparent customer
engagement, we publish a privacy notice,which data subjects are presented with toread and agree to, prior to Admiral Group
processing any personal data. Within thatprivacy notice, we explain instances where
personal data may be shared with selectthird parties. Due diligence is conducted on
suppliers before we engage in a relationshipwith them and this includes specific dataprotection due diligence processes. We
consistently strive to ensure third-party
contracts are robust and inclusive of dataprotection clauses.
Information security: Governance andmanaging risks and business resilience wasflagged as the most important issue byboth the business and external stakeholders
in the Group’s 2021 Materiality survey. As
an organisation handling a large amountof customer and employee data, ourstakeholders expect personal information
to be treated with the utmost care
and attention and we take this mattervery seriously.

Admiral’s Group information securityaligns its practices to internationallyrecognised information security and cyberrisk management frameworks and risks aremanaged in line with the Group Enterprise
Risk Management Policy. Information
security policies are in place to ensure that all
employees understand their responsibilities
and we provide all employees and contractors
with regular training. In 2021, information
security teams regularly engaged withstaff to strengthen the Group’s information
security practices and build a resilient cyberrisk culture in a new world of hybrid working.
Information security risk assessments arecarried out regularly by the Information
Security Teams across the Group and theresults are monitored, managed and reported
via the appropriate governance channels,
based upon the materiality of the risk.
For further insights into the principal risks
and uncertainties Admiral has identified
through its Enterprise Risk Management
framework, the impact of those risks, andactions to mitigate them please refer tothe Principal Risks section in the 2021
Annual Report.

35

Admiral Group plc Sustainability Report 2021

36

5. 2021 SASB Disclosure

Admiral’s 2021
SASB disclosure.
Admiral is a leading provider of
personal lines insurance productsin the UK, including motor,
household, and travel insurance.
The Group also has insurance operations in Spain,
France, Italy, and the US, whilst Admiral Financial
Services offers personal loans and car financeproducts1. The Group provides comprehensive
disclosure on its approach to value creation
annually across both the Annual Report andSustainability Report, as well as providing
supplementary information on the corporatewebsite. The disclosure below is based on the
Sustainability Accounting Standards Board (SASB)
insurance industry standard and forms part of ourefforts to provide stakeholders with financiallymaterial information.

1	As insurance is the largest and most material part of Admiral Group, this reportfocuses on Admiral’s insurance operations.

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Admiral Group plc Sustainability Report 2021

37

5 2021 SASB Disclosure continued

Accounting Metric

Code

Response / Reference

Total amount of monetary losses as a result of legal proceedings
associated with marketing and communication of insurance productrelated information to new and returning customers

FN-IN-270a.1

There were no legal proceedings and/or losses, associated with the marketing and communication of insurance productrelated information to new and returning customers across the Group in 20211.

Complaints-to-claims ratio

FN-IN-270a.2

We do not currently disclose the ratio of complaints per 1,000 claims.

Transparent Information & Fair advice for customers

In accordance with UK regulatory requirements, within our UK Motor operations, the Group’s largest and most material
business, Admiral monitors the number of claim related complaints per 1,000 policies in force.
• H2 2021 claim related complaints per 1,000 policies in force: 1.46
• H2 2020 claim related complaints per 1,000 policies in force: 1.102• H2 2019 claim related complaints per 1,000 policies in force: 1.65
Customer retention rate

FN-IN-270a.3

Group-level customer retention average3:• 2021: 76.7%• 2020: 75.5%

Description of approach to informing customers about products

FN-IN-270a.4

A summary of the Group’s core business areas and products can be found inthe company overview section of the2021 Annual Report and Accounts.
An overview of our approach to informing customers about our products is detailed in section 1.1 of the2021 Sustainability Report.
Across all operations, Admiral communicates with current and prospective customers through a range ofdifferent channels, including telephone, product websites, the Admiral app, emails, and social media.
• Below are the webpages for each of our insurance business operations:• Admiral – UK
• Conte – Italy• Admiral Seguros – Spain• L’olivier – France• Elephant – USA

1	On an operational level, some departments may have paid out goodwill gestures or other methods of compensation following complaints that fit the categories under section 1.1 of the guidance for accounting metric FN-IN-270a.1; however, the overall costof such gestures is considered immaterial.
2	Figure impacted by the material reduction in claims frequency due to Covid.
3	This includes UK car, van, travel, and home insurance customers and motor insurance customers across France, Spain, Italy, and the US.
All data is at 31 December 2021.

5. SASB Disclosure continued

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38

5 2021 SASB Disclosure continued

Accounting Metric

Code

Response / Reference

Incorporation of Environmental, Social, and Governance Factors in Investment Management
Total invested assets by industry and asset class

FN-IN-410a.1

Please refer to the financial statements section of the Group’s 2021 Annual Report and Accounts for an overview of total
invested assets by industry and asset class.

Description of approach to incorporation of environmental, social,and governance (ESG) factors in investment management processes
and strategies

FN-IN-410a.2

The Group’s approach to incorporating Environmental, Social, and Governance (ESG) factors in investment
management processes and strategies can be found in Admiral’s 2021 TCFD report and in section 3.1 of the2021 Sustainability Report.

FN-IN-410b.1

We do not disclose a separate identification of premiums related to energy efficiency and low carbon technology.

Policies Designed to Incentivise Responsible Behaviour
Net premiums written related to energy efficiency and low
carbon technology

Discussion of products and/or product features that incentivise health, FN-IN-410b.2
safety, and/or environmentally responsible actions and/or behaviours

An overview of the Group’s products and/or products features that incentivise health, safety, and/or environmentally
responsible actions and/or behaviours can be found in section 3.2 of the 2021 Sustainability Report and in the Group’s
2021 TCFD Report.

Environmental Risk Exposure
Probable Maximum Loss (PML) of insured products from weather
related natural catastrophes

FN-IN-450a.1

Admiral utilises various methods and evaluations to make underwriting and reinsurance decisions that manage the Group’s
exposure to catastrophic events. Across the Group’s insurance book, the main weather-related risks exist in relation toAdmiral’s UK Household book, as well as the US Motor book.
Admiral’s Household excess of loss1 reinsurance provides catastrophe cover with a limit that is considerably higher thanthe estimated 1-in-200 loss2. As of January 2022, this was estimated to be £400 million from floods and storms for the UK
Household Insurance business. Admiral’s excess of loss deductible3 is £40 million, and the 70% quota share leads to a net
event loss of £12 million.
In relation to Admiral’s UK Motor Insurance business, the 1-in-200 estimated possible loss as of December 2021 was£100-130 million4. Admiral currently has £80 million of cover from the Motor excess of loss reinsurance and a further£5 million from the Household excess of loss reinsurance. Therefore, after the £12 million deductible, Admiral is covered
up to a £97 million single event.
In relation to the US Motor Insurance business, the 1-in-200 estimated possible loss as of August 2021 was $15-18 million4.
The US business has $17.5 million of cover from the Motor excess of loss reinsurance. Therefore, after the $2.5 million
deductible, the US business is covered up to a $20 million single event.

1	‘Excess of loss’ is a term describing reinsurance which indemnifies the reinsured against the amount of loss in excess of the specified loss retention but subject to a specified limit.
2	A ‘1-in-200 loss’ is an estimate of an extreme stress to the business, equivalent to 0.5% probability of occurring or at the 99.5th percentile. This level is the most commonly used level in the Solvency II framework.
3	‘Deductible’ represents the amount incurred before reinsurance recoveries take place.
4	This is after applying vehicle deductibles and depreciation. The exact figure is dependent on the external model used to generate the figure.
All data is at 31 December 2021.

5. SASB Disclosure continued

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39

5 2021 SASB Disclosure continued

Accounting Metric

Code

Response / Reference

Environmental Risk Exposure continued
Total amount of monetary losses attributable to insurance payouts
FN-IN-450a.2
from (1) modelled natural catastrophes and (2) non-modelled natural
catastrophes, by type of event and geographic segment (net and grossof reinsurance)

Admiral Group does not separately identify losses by modelled and non-modelled catastrophes. However, the table below
provides some details on the weather-related losses following natural catastrophes in relation to the UK Household
book, which represents the main weather-related risk from across the Group’s operations. The table covers property
catastrophe losses above £500,000 across 2018-2021.
Property catastrophe losses above £0.5m FGU (net of reinsurance)
01 January 2018 – 31 December 2021

Description of approach to incorporation of environmental risks
into (1) the underwriting process for individual contracts and (2) the
management of firm-level risks and capital adequacy

PeriodPerilsPaid (£)

Incurred (£)

20181

Freeze, Flood and Storm

13,000,000–13,500,000

13,000,000–13,500,000

2019

Flood and Storm

1,250,000–1,750,000

1,250,000–1,750,000

2020

Flood and Storm

6,250,000–6,750,000

6,250,000–6,750,000

2021

Flood and Storm

2,750,000–3,250,000

7,000,000–7,500,000

FN-IN-450a.3

Please refer to the Group’s 2021 TCFD Report for details on our approach to incorporating environmental risks into (1) theunderwriting process for individual contracts and (2) the management of firm-level risks and capital adequacy.

Exposure to derivative instruments by category: (1) total potential
exposure to non-centrally cleared derivatives, (2) total fair value of
acceptable collateral posted with the Central Clearinghouse, and (3)total potential exposure to centrally cleared derivatives

FN-IN-550a.1

Admiral Group’s total exposure to derivative instruments totals £3.0m million. This exposure is related to Admiral Financial
Services Limited (c.£3.0m). The derivatives linked to the Group’s financial investments were in a small asset position as at
31 December 2021 (c.£2.2 million). All these derivatives are non-centrally cleared derivatives.

Total fair value of securities lending collateral assets

FN-IN-550a.2

Not applicable.

Description of approach to managing capital- and liquidity-relatedrisks associated with systemic non-insurance activities

FN-IN-550a.3

Not applicable.

FIN-IN-000.A

Please refer to strategic section of the Group’s 2021 Annual Reports and Accounts for details on the Group’s
customer figures.

Systemic Risk Management

Activity Metric
Number of policies in force, by segment

1	The amount in 2018 includes payments following the ‘Beast from the East’, which remains the biggest weather event the Group has faced since launching the UK Household insurance business in 2012.
All data is at 31 December 2021.