2013
Corporate
Responsibility
ReportIntroduction from David Stevens, CBE,CR Board Representative

As one of the UK’s largest providers of car insurance, Admiral Group
serves a real social purpose – our business is to protect people, asmuch as we can, from the adverse consequences of crashing their car.
As well as providing protection for our customers, we aim to contribute
positively to the wider communities in which we operate.
You may be wondering why you couldn’t find this report in our Annual
Report 2013. Well, that’s because this year, we’ve integrated oursignificant CR disclosures throughout the Annual Report to reflect how
our role as a responsible business aligns with our business aims. The full
CR Report is intended to supplement this information. We will consider
stakeholder feedback on this approach and change it if many of you
don’t like it when preparing next year’s CR Report. Our CR strategy iscentred upon four of our significant stakeholders: our customers, ourpeople, our community and our environment.
Admiral plays a role in the lives of 3.7 million customers, globally. We
help to limit the risks faced by each and every one of our customers,
often at key moments of their lives - when they learn to drive, when
they pass their driving test, when their children learn to drive... and soon. With a culture of innovation, we’re always looking for new ways toimprove the service we offer to our customers. In 2000 we were oneof the first to introduce the UK to online car insurance with elephant.
co.uk, two years later we launched the UK’s first ever car insurance pricecomparison website, Confused.com, and then in 2005 we became thefirst car insurer to offer a multi-car policy.
You only have to look at our business model to understand that ourpeople are one of the most important factors in our success. Our
market-leading UK expense ratio has a lot to do with the 7,000 people
who work for us, globally. People who like what they do, do it better, so2013 Corporate Responsibility (CR) Report

we strive to ensure our staff enjoy coming to work. This year, we were
we’re always looking for new proud to be named 2nd Best Large Workplace in the UK and 2nd Bestways to improve the service Multinational Workplace, by the Great Place to Work Institute.
With a culture of innovation,

we offer to our customers

We support our local community through charitable giving andcommunity partnerships. This year we donated £182,000 (2012:£141,000) to local and national charities and £231,000 (2012:£285,000) to sponsor events and organisations. Our people lovehelping out a good cause and we love hearing their thoughts on which
local organisations and charities we should support. In fact, the 90% ofstaff who told us in the annual Staff Survey that they were proud of ourpartnership with the Welsh Rugby Union (WRU) played a big part in ourdecision to extend our sponsorship agreement until 2015.
Last, but certainly not least, as we grow as a business we remaincommitted to minimising our environmental impact. Our Annual
Report 2013 now includes disclosure on annual carbon emissions(please see p.65), in line with new requirements from the Department
for Environment, Food and Rural Affairs (DEFRA) in partnership with
the Department for Energy and Climate Change (DECC). We welcome
these changes and the potential they have to help in reducing theimpact of climate change; an issue which could have a profound effecton the insurance industry in the not-so-distant future.
The coming year will mark a major milestone for us, as we move ourhead office from a multi-occupancy, twenty-three-floor building
erected in 1967, to newly-built premises in Cardiff city centre. Our
Newport office will also be moving to a new site, within the Newport city
centre. Both buildings are being built to a BREEAM (BRE Environmental
Assessment Method) standard of ‘excellent’, the leading environmental
assessment method for buildings, and will reflect best practice insustainable design. We are all very much looking forward to moving
into our new homes and the new opportunities this will bring for us tominimise our environmental impact.

2013 Corporate Responsibility (CR) Report

This report summarises Admiral Group’s ongoing CR strategy andhow this relates to our business model and strategic objectives, inaddition to explaining how we have engaged with our four major
stakeholders throughout 2013: our customers, our people, ourcommunity and our environment.
Enjoy the read!

David Stevens, CBE
Chief Operating Officer
4 March 2014Best
Workplaces 2013
Europe2013 Corporate Responsibility (CR) Report

Admiral Group’s Corporate Responsibility (CR) strategy is vital to thesustainable growth of our business, with employee engagement andcustomer satisfaction both assuming core roles in our business modeland strategy (p.12-13, Admiral Group Annual Report 2013). Our CR
strategy encompasses four of our major stakeholders:
1 Our Customers
2 Our People
3 Our Community
4 Our Environment

2013 Corporate Responsibility (CR) Report1

Our Customers

Providing an excellent service for our customers is essential to the
future growth of Admiral Group, both in the UK and overseas. All of
our employee incentive schemes have to be designed in line with our
Incentive Policy, which ensures that appropriate emphasis is placed on
the quality of service provided to our customers. In 2013, we won
Direct UK Insurer of the Year at the Insurance Times Awards and Best
Motor Insurance Provider at the Personal Finance Awards, based on
consumer opinion.
We operate within the regulatory framework of the Financial
Conduct Authority (FCA) and the Prudential Regulation Authority(PRA) in the UK.

This year, we weredelighted to win two UK
industry awards

We employ several initiatives in order to measure the quality of ourcustomer service. Every department has its own set of customerfocused measures to gauge performance. All of our contact centres
measure complaint volumes, external monitoring and complaintmonitoring as core measures and each department then selects two
relevant additional measures, usually involving comment form and/or SMS analysis and breach monitoring. The measures are reviewed
annually to challenge departments to make continual improvements.
The programme is reported every month on our staff intranet, Atlas,and the best departments are rewarded at our prestigious Central
Quality Awards.
We run monthly competitions to encourage our people to provide
excellent customer service, such as:• The Initiative King/Queen Award - encourages our people to takeownership of a customer’s problem and provide a solution thatdifferentiates us from our competitors• The WOW Factor - presented by our Head of Service, Stuart Morgan,
to a staff member who consistently produces excellent work anddeserves recognition throughout the whole of the Group

1 Our Customers

2013 Corporate Responsibility (CR) Report• Comment of the Month - chosen by David Stevens (COO) in
recognition of a staff member who has provided outstanding service,
based on written feedback from our customers

Conduct Risk
As part of our ongoing examination and improvement of internal
processes and customer experience, in 2013 we implemented a newframework for the monitoring and reporting of conduct issues. Our
UK Compliance team and department managers identified the mostmeaningful metrics used to evaluate each department’s performancein relation to customer conduct, and combined them to build aManagement Information (MI) database which is populated monthly
by each department. Over 150 individual Conduct Risk measures havenow been adopted.
This information is used by our UK Risk team, together with complaints
data, to produce a monthly Conduct Risk Management Information(CRMI) Report which identifies issues by means of Red and Amber
grading and includes recommendations for remedial actions. The
CRMI Report is used to monitor performance and the impact ofremedial actions and is reviewed by senior management, our UK
Risk Management Committee (RMC), Group Risk Committee andfinally our Board, on a regular basis. If either a Red or Amber grade
occurs the department manager investigates the issues and provides
information on the reason for the score, along with a plan to improve
the results. This new framework was put into place in April, replacing
TCF Reporting, and is currently being rolled out across the Group.
The improvements to our monitoring and reporting of conduct issues
have resulted in minor changes to the calculation of the key measures
disclosed overleaf:

2 Our Customers

2013 Corporate Responsibility (CR) Report

Conduct Risk Measure

2012

2013

Target% customers who would renew
following a claim

90%

91%

>85%

Customer Services, New Business andRenewals call answer rates*1

n/a

92%

>90%

Customer Services first callresolution*1

n/a

78%

>75%

Claims call answer rates

94%

95%

>90%

Complaints per 1,000 vehicles

1.2

1.2

<1.4

Notes
*1 2012 data is unavailable due to changes in reporting as describedabove. Customer Services first call resolution refers to the % of
inbound Customer Services calls that are resolved during the initial call.
We encourage our customers to provide feedback on our products andservices. The main feedback method is our Customer Comment Form,
which is a key measure of the CRMI Report. Our Customer Comment
Form enables our customers to rate the service of our contact centre
staff on a scale of one to ten in four key areas including ‘helpfulness’,‘efficiency’, ‘communication’ or ‘knowledge’, and ‘politeness’.
The feedback gained from our Customer Comment Form analysis and
SMS feedback allows us to pinpoint areas in need of improvement, andto identify employees who could benefit from further training. This
enables us to continue to provide excellent customer service as ourbusiness continues to grow.

3 Our Customers

2013 Corporate Responsibility (CR) Report

Our CCS team wasformed to improvecustomer service

Improving customer communications
In 2013, we set up a Customer Contact Strategy (CCS) teamin order to create a consistently excellent experience for ourcustomers throughout their policy lifetime. We are keen to better
understand how our customers feel at each stage of their journey
and there are plans to set up additional feedback channels andinitiatives, in addition to perfecting existing ones. A dedicatedforum has been created to encourage our people to share theirthoughts on improving customer service.
Some of the recent initiatives that our CCS team has introduced
to Admiral include an SMS campaign, whereby customers who
have purchased breakdown cover receive a free text containing acontact number to save to their phone, and a live chat facility on
brand websites.
Our CCS team also manages the Customer Portal, with over
65% of our customers now registered. Here, policyholders canaccess their certificate of motor insurance and other personal
documentation. In 2014, our CCS team will be tasked withimproving the layout and content of emails sent from the Portal.
In the longer term, we hope to more closely align these emails
with the wider Portal aim of revolutionising the way our customers
interact with their Admiral insurance policy, by providing an online
home for their needs.

4 Our Customers

2013 Corporate Responsibility (CR) Report2

Our People

People who like what theydo, do it better.
Simple yet strong, this philosophy runs throughout the whole of
Admiral Group and according to the Great Place to Work Institute, thishas helped us to become one of the best employers in both the UK
and Europe. In order to understand why we are rated as such a good
employer, it becomes useful to understand the four pillars upholding
working culture at Admiral – communication, equality, reward andrecognition and fun.
Communication at Admiral is open, transparent and two-way. Our
senior managers and Directors sit amongst their teams rather thanin their own offices, encouraging dialogue between staff of all levelsof seniority and across all areas of our business. Furthermore, ourChief Executive Officer (CEO) operates an open door policy and if any
member of our staff wants to ask him a question, they can email him
directly through our, ‘Ask Henry’ intranet initiative. Our senior managers
and Directors also participate in regular online chats with staff. This year
we have held two online chats with our CEO, Henry Engelhardt and one
featuring our COO, David Stevens, in addition to several online chatswith other senior managers.
Our employees benefit from a wide range of communication tools to
assist in understanding business goals and objectives, including theannual Staff General Meeting (SGM), internal newsletters, videos, teambriefings, suggestion schemes and staff forums. In the 2013 annual
Staff Survey, 85% of staff felt that we do enough to communicate
information about the business (2012: 86%).

5 Our People

2013 Corporate Responsibility (CR) Report

Transforming employee communications

Our new Atlas introduces
innovative tools for
employee engagement

This year we re-launched our staff intranet, Atlas. Atlas plays apivotal role in how we communicate with our employees, featuring
our staff handbook, internal news stories, discussion forums, inhouse TV channel, staff benefits and discounts, online learning
resources and various tools to assist employees in their roles.
The newly launched system is much faster, easier to navigate andmore visually appealing. In addition it introduces new opportunities
for employee engagement such as a company events calendar,
increased detail on company background and history, a dedicatedenvironmental impact section and a share price calculator.

Training and development
Employee training and development plays a key role in our internal
communications strategy, enabling us to convey important businessinformation such as system or procedural changes, to our staff.
New starters in our contact centres receive induction training for up to
six weeks, dependent upon department, whereas new starters in our
support departments also receive training relevant to their role. Whena manager joins us, they are subject to a six month probationary period
and in order to complete this they must attend several management
training courses.
But our commitment to staff development doesn’t end when a newmember of staff becomes fully trained. All of our people can benefit
from further learning and development throughout their career withus. Our contact centre staff are continuously supported bydepartmental trainers and our central training team, Admiral Academy,provides a range of classroom-based training sessions suitable
for as many employees as possible. Courses cover topics such aspresentation skills, leadership and motivation. Admiral Academy also
administers iLearn, our staff e-learning portal, accessible via Atlas.
iLearn features short online training courses, a personal training record,
training request forms and application forms for the sponsorship offurther education.

6 Our People

2013 Corporate Responsibility (CR) Report

In 2013, we provided over 7,100 hours of training for our people (2012:
over 6,800 hours). This includes training provided for specific UK
departments and any training that has been provided by our UK trainers
in any of our overseas offices, in addition to courses provided in the UK
by Admiral Academy. This total does not include all instances of training
provided by our overseas employees in our overseas offices, becausesuch data is not yet recorded centrally.
In order to measure how our people feel about training anddevelopment, we ask them to complete evaluation forms after training
courses and our annual Staff Survey features several related questions.
In 2013, 83% of our people were happy with the training that theyreceived (2012: 86%), and 88% said that their immediate manager
showed enough interest in their development (2012: 89%).

Buy a Book
Admiral Academy runs Henry’s Buy a Book scheme, whereby ourpeople can submit a request for us to purchase a book that will
help with their development. Staff can request up to three books
per month. Last year, a record amount of over £65,000 was spenton the 3,500+ books purchased via the scheme.

Our people love getting
stuck into a good book

By ordering the books online from Amazon via the Royal Institutefor the Blind Website (RNIB), Amazon donates 5% of the totalorder cost to RNIB. We have donated over £1,000 to the charity inthis way since September, and in the future we will be fundraising
for a number of charities using this method.
We have a really simple approach to Equality. Our people are ourgreatest asset and we respect and value the individuality and diversityof all of our people. Our Equality, Diversity and Dignity at Work policy
ensures that every employee is treated equally and fairly and that all
employees are aware of their obligations. The Group is fully committed
to the health and safety and the human rights of its employees,
regardless of their background. In addition, we maintain a number of
employee codes of conduct regarding appropriate ethical standards inthe workplace.

7 Our People

2013 Corporate Responsibility (CR) Report

Our Equality, Diversity and Dignity at Work policy includes guidancefor our management on how to promote diversity, alongside advicefor our people on how to identify and report any instances of unfair
discrimination. To further promote diversity, this year Admiral Academy
has trained over 100 managers in handling workplace diversity.

Gender diversity
The table below provides a breakdown of the gender of Company
Directors and employees at the end of the financial year:
Male

FemaleCompany Directors*1

9

4

Other senior managers*2

21

13

All employees

3,454

3,531

Notes
*1 Company Directors consists of the Board of Directors, as detailed
on p.38-39 of the Admiral Group Annual Report 2013.
*2 ‘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 theCompany, or a strategically significant part of the Company, other thanCompany Directors. Any other Directors of undertakings includedin the consolidated accounts that are not considered strategicallysignificant have not been included.

8 Our People

2013 Corporate Responsibility (CR) Report

Recognising ability in disability

The Two Ticks symbol
shows our support fordisabled people in theworkplace

We give full and fair consideration to applications for employment
made by those with disabilities, having regard to their particular
aptitudes and abilities. In 2013, we were accredited with the Two
Ticks symbol by Jobcentre Plus for committing to meet five
key standards of conduct regarding the recruitment, training,
retention, consultation and career development of disabled
employees. During the year, we also attended the UK’s firstnational Disability Employment Conference, organised by
the government as part of its bid to support businesses inbecoming more confident in recruiting disabled people over the
next two years.
In 2014 we are running a two-week voluntary work experience
scheme for disabled people, in our UK head office. The first five
participants, who between them have a range of disabilities, will
begin the course in January. The aim is to equip the participants
with both the knowledge and confidence required to secure a job.
Dependent on the success of this pilot, we hope to run at least
one more session during 2014. Next year, we also welcome thefirst participant to our new work experience scheme for people
with autism. After working with the National Autistic Society, we
have agreed to provide eight-week supported work experienceplacements for people with autism. The first participant joins us inJanuary 2014.
The Group’s principles of respect for human rights, diversity, healthand safety and workplace ethical standards not only apply to staff
directly employed by Admiral, but also to staff employed by the Group’s
outsourced partner in Bangalore, India. To meet this commitment,
Admiral Group maintains regular contact with its outsourcer’s
management team and the Group’s senior managers pay visits to theoutsourcer, whilst the Group also provides training and development
to ensure that the team uphold these principles. In addition, AdmiralGroup has appointed a manager based permanently at the outsourced

9 Our People

2013 Corporate Responsibility (CR) Report

operation, who is responsible for ensuring that the Group’s principles
are adhered to by the outsourced partner, and that the wellbeing ofoutsourced staff is monitored.

Happy and healthy
This year we received a Corporate Health Standard (CHS) Goldaward, the Welsh Government’s stamp of approval for workplace
health and wellbeing. We originally applied for the Silver award,
having held the Bronze award for three years, but after the CHS
panel met with staff and senior managers it was announced that
we met the criteria for Gold.

The Corporate HealthRichard Lewis, Workplace Health Specialist for the Welsh
Government, said:
Many congratulations on achieving the Gold Corporate HealthStandard, and in some style; [the assessor] said that Admiral is one of
the best, if not the best, organisations he has assessed in terms of acorporate approach to well-being.

Standard (CHS) Gold award
recognises workplace healthand wellbeing

Fundamental to equality, and also important for Reward andRecognition, is our performance-related pay structure and shareownership scheme. We like to reward and recognise our people forboth their own personal achievement, and the overall performanceof the Group. All employees are rewarded for the overall success of
the Group through the share ownership scheme, a key feature of
employee remuneration.
As of 31 December 2013 an employee who joined us on 1 January2005 would have received a total of 2,607 shares, of which 2,041
would now be matured and 1,509 could be sold free of income tax andnational insurance. If none of the matured shares had been sold, theseshares would be worth £26,737 (based on the share price of £13.10 on
31 December 2013). In addition to our approved Free Share Incentive
Plan (SIP), we also operate an unapproved Discretionary Free Share
Scheme (DFSS) to reward managers and ‘star performers’ – employees
who have excelled in their role, regardless of business location or levelof seniority.

10 Our People

2013 Corporate Responsibility (CR) Report

The total value of shares, dividends and bonuses paid in lieu ofdividends on non-vested shares received by staff since the company
floated is over £380 million, based on the share price at 31 December
2013. Further details of our salary structure and our share schemes
are available in the Directors’ Remuneration Report on p.54.67 of our
Annual Report 2013.
Our Board firmly believes that share ownership motivates employees,
decreases attrition and makes it easier to recruit successfully.
According to our annual Staff Survey, 81% of our people are more
likely to stay with us because of our staff share schemes (2012: 79%).
Details of our attrition rates can be found at the end of this section.

Celebrating excellent performance
We host a series of annual award ceremonies to reward andrecognise our people, both for their own individual achievements
and for the collective performance of their team, department orsite. Our award ceremonies include:
David Stevens presents hisAward to Claire Charlton of
Admiral Law

11 Our People

The Managers’ Awards – Back in 1992, before the first Admiralpolicy had even been sold, Henry Engelhardt (CEO) gave eachsenior manager an award to present in their name, to a deserving
member of staff. Eighteen awards are now available, such as David
Stevens’ ‘Large Volume of High Quality Work’ Award and Kevin
Chidwick’s ‘Impact on the Bottom Line’ Award. The names of theaward winners are permanently inscribed in Admiral’s history onplaques displayed in the reception area of our headquarters in
Cardiff, South Wales.

2013 Corporate Responsibility (CR) Report

The Central Quality teamenjoy hosting their annual
awards ceremony

The Central Quality Awards - Highlighting achievements fromacross the Group in our customer-focused measures programme,
the Central Quality Awards drive our people to meet and exceed
quality measures throughout the year, to increase both their own
individual quality score and that of their department. This helps
us to ensure that we remain compliant with Financial Conduct
Authority (FCA) requirements and that all of our customers receive
excellent service.
The winners of this year’s
Top 10 Department Awards
pose for a photo

The Top 10 Department Awards – A celebration of our uniqueculture, the Top 10 Department Awards are based on anonymous
department surveys on staff engagement and a department
presentation on a given topic, which all staff are encouraged to be
involved in the planning and performance of. Held at Cardiff’s
City Hall, the award ceremony is attended by hundreds of ourpeople from both our UK and international operations. We sharethe feedback with each department to allow them to understandwhat steps they need to take to match the standards of thewinning departments.
Fun plays a vital role in helping us to ensure that our people enjoy theirwork, encouraging and motivating each and every individual to produce
excellent results.

12 Our People

2013 Corporate Responsibility (CR) Report

Work-hard, play-hard

A team from Admiral
Household becomesuperheroes for the day

The Ministry of Fun (MOF) operates throughout Admiral,organising exciting events for all of our people to take part in. A
different department takes responsibility for organising games
and competitions each month to ensure that the programme
remains fresh and to give everyone the opportunity to takeownership. In 2013 our people have enjoyed taking part in a payrolllottery, wearing their clothes back-to-front and dressing up as
superheroes. What will 2014 bring?
So how do we know that this approach works?
Our staff tell us. One of the most important tools that we use tomeasure employee satisfaction is our anonymous annual Staff Survey,
which collects views on what it is like to work for us. The survey results
are analysed by department and each department manager sharesthe findings with their team, exploring any issues and concerns before
making improvements.
The most significant results are provided in the table below. There areno specific targets with respect to the survey results as our Executive
team use the data to identify trends in employee perception, rather
than absolute values. The results reflect a slight decrease in most of
the areas listed below. However, this is attributable to the exceptionally
positive set of results attained in our 2012 Staff Survey and this is anarea that we will continue to monitor closely.

13 Our People

2013 Corporate Responsibility (CR) Report

Staff Survey results
Survey question

2007

2008

2009

2010

2011

2012

2013

Morale is good within
Admiral

89%

90%

93%

89%

90%

93%

89%

Morale is good within mydepartment

82%

90%

86%

84%

85%

87%

75%

I am happy at Admiral

87%

90%

91%

88%

89%

91%

88%

Every effort is madeto understand thethoughts and opinions of
employees

73%

86%

87%

88%

88%

91%

85%

I am proud to be
associated with Admiral

91%

94%

96%

95%

95%

96%

94%

I would recommend
Admiral as a good place
to work

90%

94%

95%

94%

95%

96%

93%

I am more likely to stay at
Admiral because of theshare schemes

71%

71%

79%

78%

79%

79%

81%

Admiral is truly
customer-orientated

88%

90%

90%

86%

87%

90%

90%

Admiral treats its
customers fairly

84%

87%

88%

86%

86%

88%

87%

As a Group we participate in a number of independently managed
surveys, including The Sunday Times 100 Best Companies to Work For
and the Great Place to Work Institute’s Best Workplaces in the UK andBest Workplaces in Europe.
Again this year we have continued to win awards for employee
satisfaction, adding to those achieved previously. Notably, Admiral wasnamed 2nd Best Large Workplace in the UK and 2nd Best Multinational
Workplace in Europe by the Great Place to Work Institute. The tablebelow shows how we have performed in these surveys historically:

14 Our People

2013 Corporate Responsibility (CR) Report

External survey results
Name ofaward

Best
Workplaces 2013
Europe

2001

32nd

32nd

2002

42nd

42nd

2003

46th

7th

2004

60th

16th

2005

20th

17th

2006

20th

8th

2007

21st

Top 10

2008

57th

10th

2009

37th

6th

16th

2010

16th

10th

26th

2011

9th

9th

21st

2012

6th

1st

4th

2013

11th

2nd

2nd

In addition to participating in both internal and external staff
surveys, we measure employee satisfaction using a number of key
performance indicators (KPIs), including our average employee attrition
and absence rates.
Over the past decade UK employee attrition trends have generally
improved, and we have also witnessed an improvement in this area. At
the end of 2013 our average attrition rate stood at 13.3% (2012:13.6%), an improvement of 0.3% year-on-year. An annual improvement
is good news in itself but when considered alongside the UK national
average attrition rate of 17%, and the UK average for financial privatesector services of 18.4% (as quoted by Xpert HR’s 2013 Labour
Turnover Rates Report), it becomes an even better story. We are
3.7% ahead of the UK average attrition rate for all sectors and 5.1%
ahead of the UK average attrition rate for the private financial services
sector. This implies that we present a more attractive career option for
employees than the UK private financial services industry in general.

15 Our People

2013 Corporate Responsibility (CR) Report

We also monitor the average percentage of working time lost eachyear due to employee absence. UK employee absence trends havegenerally increased over the last two years, whilst our absence rates
have remained stable over the same period, but still remain higher than
the national averages. In 2013, our average employee absence rate was
4.5% (2012: 5.4%), representing an annual improvement of 0.9% but
falling short of the 3.8% UK average for all sectors, by 0.7%. Similarly,
we are 0.8% behind the average for non-manual workers in the private
sector, which currently stands at 3.9%.
However, this doesn’t present us with a cause of concern because
there are vast differences in absence trends between sectors,
and private sector call centres have traditionally reported higher
absence rates. According to the Chartered Institute of Professional
Development’s (CIPD) 2013 Absence Management Report, theaverage percentage of working time lost during 2013 in UK contact
centres was 5.5%, so we are currently performing at 1% above averagein this area. We are pleased that our employee attrition and absence
rates have improved year-on-year, but we will continue to monitor
these areas closely in order to identify potential areas for improvement.
In further support of our reputation as a good employer within the local
community we received 16 applications per job advertised, on averageduring 2013 (2012: 11). We are proud to see an increase in this area andwill continue to track this data to help us to maintain our appeal to the
local workforce.

16 Our People

2013 Corporate Responsibility (CR) Report3

Our Community

We play a positive role in the community through charitable giving andsponsorship of local community partnerships. As an employer, we
promote payroll giving and provide matched funding for eligible staff
initiatives. In 2013, the Group donated £182,000 to various local andnational charities (2012: £141,000) and £231,000 (2012: £285,000)
to support local events and organisations. The amount we donate
fluctuates annually due to changes in sponsorship initiatives andemployee demand for matched funding.
Our strategy on charitable giving and community sponsorship aims to:• Contribute to the local communities surrounding our offices• Support events that are likely to appeal to our people• Reflect our culture of vibrancy and fun• Raise our profile as a good employer within the local community
Our strategy provides further opportunities for employee engagement
by providing opportunities for our people to participate in charity
fundraising or community projects and by enabling us to secure
additional employee benefits, such as free event tickets and local
discounts. It also helps us to attract new staff and to minimise
recruitment costs, reinforcing our strategy of focusing on profit andcontrolling costs in order to maintain our market-leading expense ratio.
Our people celebrate our
success at the Million Makers
award ceremony.

Winner of Princes Trust Million Makers
Challenge
Since 2008 we’ve enjoyed a close relationship with the Prince’s
Trust, the UK’s leading youth charity dedicated to helping
disadvantaged young people to enter into work, education ortraining. In April, we won the Prince’s Trust National Million Makers

17 Our Community

2013 Corporate Responsibility (CR) Report

Challenge by raising over £100,000 for the charity. The Million
Makers is an annual competition which sees organisations fromacross the country setting up mini enterprises in order to raise
as much money as possible for the Prince’s Trust, over a six
month period.
Our People Services department manager, Richard Thorne,
commented:
The competition has got bigger and bigger every year and issomething that our staff always look forward to taking part in.
We consider employee feedback when deciding which local events tosponsor. Our annual Staff Survey revealed that 59% of our employees
believe we are already doing enough to help our local community (2012:62%). We are delighted that the majority of our staff believe we are
already contributing enough to the community but the feedback has
shown there is still more work to be done, as indicated by the 41% of
employees who think that we could still be putting more back into thecommunity. This feedback will help to inform our sponsorship activity
for 2014.
Our WRU sponsorship gives
our people the opportunity
to train with the Welsh
national rugby team.

Supporting the national sport of WalesIn February, we extended our sponsorship deal with the Welsh
Rugby Union (WRU) for a further two years after 90% of staff told
us they were proud of our partnership (2013: 89%). The Admirallogo will now remain on the national team jersey until the next
Rugby World Cup in 2015. The agreement also enables us tosecure staff benefits such as free rugby tickets, kit discounts andopportunities to attend team training sessions and meet players.

18 Our Community

2013 Corporate Responsibility (CR) Report

Valuing Arts, Business and Employees

The Awards celebrate

This year we won the Art, Business and Employees’ Award at theArts and Business Cymru Awards, in honour of our work insupporting local South Wales organisations, Chapter Arts Centre
and NoFit State Circus.

partnerships between
businesses and culturalorganisations
Our people enjoy exclusive
benefits when they visit the
Chapter Arts Centre
Photo: Mark Robson

We have sponsored the Chapter Arts Centre in Cardiff, South
Wales, since 2010. Established over 40 years ago Chapter isan ambitious, multi-artform cultural space that presents andproduces international art, performance and film alongside adynamic social space. The sponsorship provides our people withthe opportunity to take part in various workshops, including videomaking and photography, as well as giving them the chance to win
free tickets to Chapter’s weekly cinema screenings. Our people
also benefit from an exclusive discount card which entitles them to
10% off food and drink, event tickets and gift shop purchases. Last
year, our staff spent £13,000 at the Chapter Arts Centre.

NoFit State Circus is known
for its breathtakingly
beautiful performance art
Photo: Mark Robson

19 Our Community

Since 2010 we have has been proud to sponsor the NoFit State
Circus, a world-famous contemporary circus based in Cardiff.
Celebrating its 25th anniversary this year, the Circus produces
professional touring productions at all scales alongside a wide
range of community, training, and education projects to suit
all ages. As a partner of NoFit State Circus, we offer various
opportunities for our people to visit and take part in circus
skills workshops, whether as a team or at a staff-exclusive
evening workshop.

2013 Corporate Responsibility (CR) Report

Festival of SportFor the past six years we have supported the Neath Port Talbot
Festival of Sport for children with varying physical ability, whichtakes place in Margam Park, South Wales.

When it comes tovolunteering, our people are
great sports

In addition to providing financial support, we encourage ourpeople to volunteer to attend the week-long event to support andencourage children participating in the activities. All staff receive
specialist training to ensure that they have the skills required totake part.
Disability Sport Wales Development Officer for Neath Port Talbot
Council, Victoria Radmore, commented that the Festival of Sport is“indebted to Admiral for providing such fantastic staff.”

Admiral Community Chest

The Llanrumney United
Ladies baseball team used
our donation to pay theirpitch fees for the season

20 Our Community

Admiral Community Chest is a fund set up to provide fundingfor charities and local organisations which our people and theirfamilies are involved with. The Chest has been running for overseven years and in that time we have been able to contributeto over 500 charities and organisations. In 2013, we donated£112,000 to over 190 charities and organisations through the
Chest (2012: £83,000). We saved a premier division baseballteam from having to disband mid-season due to a lack of funds,
replaced a broken window at a lunch club for the elderly andbought a new training kit for a women’s rugby team, amongst
other achievements.

2013 Corporate Responsibility (CR) Report4

We continue to report ourenvironmental performanceto the CDPOur Environment

Our Environmental Policy is aligned with our vision for sustainablegrowth and our focus on profitability, as outlined by our Groupbusiness model and strategy on p.12-13 of our Annual Report 2013.
By monitoring and reporting on our annual carbon emissions, we canidentify areas of the business where energy usage could be reduced,
leading to the potential for cost-savings. Furthermore, by improving
our buildings to drive energy efficiency we are able to create a betterworking environment for our people. We continue to report to andengage with, the Carbon Disclosure Project (CDP), the leadinginternational environmental rating organisation. Every year, we discuss
our environmental strategy and performance with the CDP to identify
areas for improvement. Last year our disclosure rating, which is based
upon the level of detail we disclose to the CDP, increased from 42%
to 60%.
We are committed to:• Raising and maintaining employee awareness of, and ensuring that
all of our people are actively engaged in, activities to reduce ourenvironmental impact• Measuring and monitoring key aspects of our environmental
performance and regularly reviewing progress to reduce the amountof resources consumed per employee• Complying with the requirement, effective from 30 September
2013, to report annual levels of greenhouse gas emissions inline with guidance provided by the Department for Environment,
Food and Rural Affairs (Defra) in partnership with the Department
for Energy and Climate Change (DECC). We have never been
subject to prosecution or fines as a result of non-compliance withenvironmental reporting regulations
We have a cross-functional team in place to monitor and report on
our annual greenhouse gas emissions, including employees from ourFinance and Facilities departments. One of the major responsibilitiesof our Facilities team is to continuously reduce our environmental
impact. The reporting process is centralised at our UK head office and21 Our Environment

2013 Corporate Responsibility (CR) Report

our international businesses send their data to the team each month.
This way, our people can be engaged in recording and monitoring theirenvironmental impact and we hope that this will encourage each of oursites to make continual improvements. The data is reviewed annuallyand reported to David Stevens, our CR Board representative.
We uphold a structured consultation process to gauge stakeholder
views on our environmental performance. In 2013, the Staff Survey
revealed that 75% of our people think we are working to reduce ourenvironmental impact (2012: 74%). Each department manager feeds
back the results to their employees, encouraging a forum for positive
discussion to gain employee ideas on what more we can be doing tolimit our environmental impact.

Insurance discounts for electric cars
With no vehicle tax to be paid and a subsidy from the government
when you buy one, electric cars have never been so appealing. Now,
we are adding to the benefits of owning an electric car by offering a
discount when insuring them.
Our customers receivea discount when they
insure selected electric cars
with us

We are offering insurance discounts of up to 10% for policyholders
who have purchased electric cars such as the Nissan Leaf and the
Peugeot iOn*, which can be applied to either new or used models,
for all new customers. The discount will be automatically applied
and included in the price the customer receives, either directly from
Admiral or from a price comparison site.
Our UK Customer Services Director, Sue Longthorn, commented:
Electric cars are becoming more popular, with new models being
launched all the time. The government is boosting the growth in their
popularity with grants towards purchasing electric cars and covering
part of the cost of installing charging points for electric vehicles ingarages and driveways, so we wanted to help encourage people todrive them by offering this discount.

22 Our Environment

2013 Corporate Responsibility (CR) Report2013 Performance Data
GHG Emissions(CO2e Tonnes*1)% Of Group Total

Owned transport

36

0.4%

Total Scope 1

36

0.4%

Purchased electricity (including
green energy)

6795

83.3%

Total Scope 2

6795

83.3%

T & D*2 Electricity

581

7.1%

Business travel

751

9.2%

Total Significant Scope 3

1332

16.3%

Total CO2e Emissions

8163

Scope 1

Scope 2Significant Scope 3*1 ‘Tonnes’ refers to metric tonnes*2 ‘T&D’ refers to the transport and distribution of electricity.

Intensity Ratio
We have used average employees as the measure for our intensity ratio
as this is the most relevant indication of our growth and provides forthe best comparative measure over time.
CO2e per employee*2

1.26 tonnes*2 Average employee number excludes employees from three offices,
for which data could not be collected.

Baseline for 2013 Targets
The current year data forms the baseline data for subsequent periods.
Although the Group has previously reported on emissions, it is not
appropriate to use these reports as baseline years due to differing
methodologies applied.

23 Our Environment

2013 Corporate Responsibility (CR) Report

Methodology
Reporting period
1 January 2013 – 31 December 2013
Measuring and reporting approach
We have followed UK government guidance on how to measure andreport greenhouse gas emissions. In particular, the data has been
prepared with reference to the WRI/WBCSD Greenhouse Gas Protocol:
A Corporate Accounting and Reporting Standard (Revised Edition)and in accordance with the guidance for corporate reporting issued by
Defra. Data for the first three quarters of 2013 has been collected andextrapolated to calculate the full-year emissions figure.
Greenhouse gases
All GHG emissions figures are in tonnes of carbon dioxide equivalents(CO2e) and include all six GHGs covered by the Kyoto Protocol.
Organisational boundary
We have chosen to use the operational control approach because
we maintain the ability to direct the operating policies of each of ourorganisations, with a view to achieving economic benefits.
Specifically excluded from the organisational boundary is ouroutsourced contact centre in Bangalore, India, which we do not havecontrol over.
Operational scopes
All Scope 1 (direct GHG emissions), Scope 2 (indirect GHG emissions)and significant Scope 3 emissions have been reported for operations
within the organisational boundary, with the exception of exclusions
listed overleaf.
Where appropriate, emissions from multi-occupancy offices are
determined on the basis of the recharge statement provided to theGroup by the relevant managing agents.

24 Our Environment

2013 Corporate Responsibility (CR) Report

Exclusions to operational scopes
We have excluded our call centre in Gurgaon, New Delhi, from our
Scope 1, 2 and 3 emissions because this operation was not able toprovide us with the data requested, and average headcount was just
52 over the reporting period. Both of our operations in France (L’olivier
Assurances and LeLynx) are also excluded from all of our emissions
scopes. These three offices together total less than 1.5% of our Group
headcount and are, therefore, considered immaterial.
Excluded from our Scope 1 emissions are air conditioning emissions
produced by all of our operations. We were unable to obtain data fromany sites for this reporting period because our building managing
agents are responsible for air conditioning at the majority of sites andthey were unable to provide us with emissions data in the timescalerequired. Gas has also been excluded in this reporting period. Only
three of our sites have gas usage and the managing agent does notprovide us a breakdown of the gas element of the service charge wepay and therefore this data was not available to collect for inclusion in
our reported emissions figures.
Operational scopes – calculation approach, conversion tools andemission factors
The carbon emissions linked to the activities listed above have been
determined on the basis of measured or estimated energy and fueluse, multiplied by relevant carbon conversion factors.
The large majority of our fuel and energy consumption is basedon actual mileage data, purchase invoices and information suppliedby the managing agents of our leased buildings. However it has beennecessary to make estimations in some circumstances, where thisform of evidence has not been available. In particular we have madeestimations when monthly invoices have not been available forthe full reporting period. Where this was the case, an average ofavailable invoices was applied to the months for which invoices were
unavailable. This process of estimation represents only between 1%
and 5% of data.

25 Our Environment

2013 Corporate Responsibility (CR) Report

We have calculated emissions using the 2013 carbon conversion
factors downloaded from the Defra website, which are valid until 31
May 2014.

Geographical breakdown2013

Tonnes of CO2e
Scope 1

Scope 2

Scope 3

Total

Total global

36

6795

1332

8163

UK

36

4532

1138

5706

Italy

0

71

6

77

Spain

0

148

13

161

India

0

41

4

45

US

0

729

62

791

Canada

0

1273

109

1383

Carbon offsetting
We are not a carbon-intensive business and as such, we don’t see any
significant need to offset our Scope 1 and Scope 2 carbon emissions atpresent. However, this will continue to be monitored in line with futurebusiness growth.

Green tariffs
Last year, we announced plans to switch to 100% green tariffs in several
offices. In 2013, we moved onto green tariffs for all of our UK offices;a total of 10 buildings. In offices that we manage ourselves we have
set up our own green tariffs, whereas in our leased offices we haveencouraged our building managing agents to make this change on ourbehalf. Our international offices either select their own tariffs or use
those selected by the managing agents of the buildings they residewithin. However, international procurement is not yet centralised at
our UK head office so there is no record of the number of internationalsites using green tariffs.

26 Our Environment

2013 Corporate Responsibility (CR) Report

Annual achievements
In 2013, there were a number of initiatives in place to help in reducing
our carbon emissions:• In order to raise employee awareness of our environmental impact
our staff intranet, Atlas, now features a category called ‘Help Us
Go Green’, including our Environmental Policy and our annual
Greenhouse Gas (GHG Report)• All of our photocopiers and printers continue to be stocked withrecycled paper.

• We have an online Customer Portal through which our UK customers
can choose to receive electronic copies of their insurance policy
documents, instead of having paper copies sent via post. By actively
encouraging our customers to use this facility, we have significantly
reduced paper usage. As of 31 December 2013, 60% of ourpolicyholders were registered on our Portal• Wherever possible, we use SMS to contact our customers in order toprovide a convenient service and to further reduce paper usage

Targets for 2014
Currently, we do not set carbon emission reduction targets. Although
we appreciate the potential for such targets to lead to valuable costsavings and environmental benefits, it would be difficult to set realistic
targets at present. This is because we currently lease buildings rather
than owning them outright, so we are largely dependent upon property
managing agents to act to reduce the consumption of electricity
and gas and the use of air conditioning. As these sources combined
account for the majority of our emissions, it would be very challenging
to reduce consumption in these areas whilst lacking the authority todirectly impact upon them.
Another reason why we would struggle to set realistic targets atpresent is because we are going to be moving both our UK head officeand our office in Newport, South Wales, to newly built offices in 2014.
Although these moves are likely to result in carbon emission reductions

27 Our Environment

2013 Corporate Responsibility (CR) Report

5.0 deSIGn ReSPonSe

because both of our new buildings will be more energy efficient, atpresent we have no way of predicting how significant these reductions
may be. This is an area that we will revisit once we have moved into our
new offices and we hope to begin to set emissions reductions targets
in our 2014 Environmental Report. One area in which we hope to begin
setting targets is that of recycling. We will be using dry-mixed recycling(DMR) in both of our new buildings, which will allow us to recycle at least
80% of waste produced by these buildings.
5.3.2 Urban Grain

the proposed building follows the grain of the local area and occupies a whole city
block, emphasising the importance of the site. the building frontages are alignedwith the back of pavement on Bridge Street and david Street, thus strengthening

the continuity of the streetscape. A setback to the west side will provide a linear

plaza along the length of the building enhancing the public realm and linking Sd2
with the CIA.

5.3.3 Scale

Although the proposed building height is somewhat taller than its immediate
context, the importance of the site’s location warrants such a scale – an argument

which is supported by Cardiff’s 2009 tall Buildings Guidance. the façade ismodulated to reduce the perceived scale by clearly defining the top, middle andbottom of the building and by grouping floors together to give an elegant verticalorder and proportion to the facades.

In summary, the building relates to the scale of the wider urban context but alsoa more urban scale through the adoption of a tripartite elevational organisationand sophisticated detailing. The quality and refinement of the building justifies its
height of 13 storeys (including ground and mezzanine but not including roof level
plant areas).

6 . 0 A CCe S S S tAt e m e nt

Whilst we do not set emissions reductions targets at present,
we remain fully committed to monitoring and reducing ourenvironmental impact.
6.3 Building design

the building is designed to be legible and easy to navigate. It will be completely
accessible to users with mobility, hearing and visual impairments as well as

those with learning disabilities. they will be assisted by the choice of lighting,signage and colour within the development.

The entrance into the building is clearly identifiable and will be level with theexternal pavement. Appropriate manifestation will be applied to all ground floor

glazing for partially sighted people. the entrance hall/reception area will be welllit, free of obstructions and with plenty of space for circulation

AIG HQ, BRIdGe StReet, CARdIff deSIGn And ACCeSS StAtement 23

the reception desk will be designed for ease of use by wheelchair users and the

A green futurearea will be continuously staffed, helping to aid convenient access to the officefloor space.

Lift access is also provided to the first floor level and will meet the statutory

In 2014 we will be moving our head office from a multi-occupancy,
23-floor building erected in 1967, to a brand new, high density
building in Cardiff city centre. Our Newport office will also be
moving to a new site, within Newport city centre.
requirements in terms of car size, door opening and clear landing.

The floors of the office accommodation will have clearly signed, fully equipped,disabled and ambulant disabled toilet cubicles.

Internal corridors will have dimensions, which meet or exceed the statutory
requirements for wheelchair users. Self-closing doors will not exceed 20n

closing force at the leading edge. fire exit doors into protected stairs will befitted with one-way push action not exceeding 30N. Escape stairs have been

designed to ambulant disabled standard to meet the requirements of Part m of
the Building Regulations. escape lobbies will have disabled refuges.

An artist’s impression of our
new Cardiff head office, by
day and night

An artist’s impression of our
new Newport office

28 Our Environment

Both buildings are due for completion in 2014 and will provide
capacity for 4,200 staff. The Cardiff building has been built to a
BREEAM*2 standard of “Excellent” and the Newport building to a
‘Very Good’ standard. Both buildings will encompass thoughtful
design features, such as high efficiency glazing and recessed
windows to reduce heat solar gain and the reduction of electricalloads to reduce electricity consumption. Features such as
electricity generating photo-voltaic panels and high-efficiency,
energy saving lighting with sensor controls, will significantly reducethe impact on the environment.
AIG HQ, BRIdGe StReet, CARdIff deSIGn And ACCeSS StAtement 57*2 BREEAM (BRE Environmental Assessment Method) is theleading and most widely used environmental assessment method
for buildings. It sets the standard for best practice in sustainable
design and has become the de facto measure used to describe abuilding’s environmental performance.

2013 Corporate Responsibility (CR) Report

Assurance statement
We have not received external assurance of our carbon emissions
data for the 2013 reporting year. However, as a Group we havecompleted an internal audit to assess the reasonableness, accuracy
and completeness of the data presented. This included: recalculationof formulae, checking conversion factors applied, agreement of data todetailed breakdowns and sample checks to source data. The process
did not highlight any uncorrected deficiencies in the reported data andwill help us to improve the efficiency and accuracy of our data collection
in future years, through tighter control procedures.

A FTSE4Good Index member

We are a constituent of the
FTSE4Good Index

29 Our Environment

FTSE Group confirms that Admiral Group has been independently
assessed according to the FTSE4Good criteria, and has satisfied
the requirements to become a constituent of the FTSE4Good
Index Series. Created by the global index company FTSE Group,
FTSE4Good is an equity index series that is designed to facilitate
investment in companies that meet globally recognised corporate
responsibility standards. Companies in the FTSE4Good IndexSeries have met stringent social and environmental criteria, andare positioned to capitalise on the benefits of responsible
business practice.

2013 Corporate Responsibility (CR) Report

Conclusion
This report summarises our ongoing CR strategy and how this relates
to the Group business model and strategic objectives, in addition to
outlining the progress we have made during 2013 in relation to ourfour key stakeholders: our customers, our people, our community andour environment.

30 Conclusion