Admiral Group plc
2023 Full Year Results
7th March 2024

Overview
Milena Mondini de Focatiis, Group CEOGroup Financials
Geraint Jones, Group CFO

UK Insurance
Cristina Nestares, UK Insurance CEO

International Insurance
Costantino Moretti, Head of International Insurance

Admiral Money
Scott Cargill, Admiral Money CEO

Wrap-upMilena Mondini de Focatiis, Group CEO

Q&A
All

1

Our core values of putting our customers and people first and enjoying what we do are as true today as they were in 1993

Overview
Milena Mondini de Focatiis, Group CEO
2

Growth and positive results in a challenging environment; signsof cycle turning
•

•

+31%

Solid results amidst widespread inflationary and supply chain pressures; claims
inflation still elevated but slowing downGroup turnover

Strong double-digit turnover increase across the board (except in the US); UK
Motor returned to customer growth in H2+6%Group customers•

Strong capital position benefitting from UK Motor H2 performance

£443m

£

•

•

Successful delivery of strategic IT projects further enhancing our capabilities tobetter support our customers
Benefits from early and disciplined response started to materialise in H2; wellpositioned for further growthGroup pre-tax profit

£

200%

Group Solvency ratio3

30 years of growth, innovation, diversification and strong returns
Customers

1993

2003

2013

2023

50k

797k

3.7m

9.7m

•

Market-leading COR in UK motor:>20pts advantage vs. market3•

Track record of agility through the cycle•

Continuous innovation in data andproducts•

Efficient diversification: c.50%
customers beyond UK Motor withlimited investment (c.4% of profits inlast 10Y5)•

c.19% UK motor market share3 andfurther room to grow(end of period)£4,812m

Turnover18%
8%£2,030m

UK Motor
UK non Motor

70%

International Motor
Other

£18m

£422m

84%

100%
2003

2013

1993

Profit before tax1

Dividends4(cumulative, paid over period)

TSR4

£198m

£2.3bn2023£4.6bn

4,000
3,000
2,000
1,000
0

£7.1bn£5.4bn+2,903%

Group ROE2 (average over period)+20% CAGR
5,000
1993-2023

vs. +245% FTSE 100

53%(1) Group share of profit before tax; 1993-2021 as reported under IFRS 4; 2022-23 as reported under IFRS 17 (2) Flat average of group ROE as published: 2005-21 under IFRS 4; 2022-23 under IFRS 17 (3) Management estimates and ABI market data: 2013-22 IFRS 4 basis for market CORs excl. Admiral;
UK Motor market share estimated based on 2023 GWP data from ABI (4) Source: DataStream; TSR: Total Shareholder Return since 2004 flotation (joined FTSE 100 in 2007) (5) net investment costs in new products/countries for products/countries still operating to date; excl. any disposals or terminatedinvestments

44

Market conditions improving and benefits from early response
emerging in H2
Motor market inflation
25%

Customer and turnover growth

Claims inflation1 (YoY movement)• Strong price increases led to NB market
volume growth in all countries

20%
15%

UK
France

10%

Italy
Spain

5%
0%

• Challenging market conditions beginning toease, but inflation remains elevatedUS• Benefits from early focus on margin
protection started to emerge in H2 withimproved LRs across the group and further
gains to follow

Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23• Navigated difficult UK Motor cycle well andahead of market; return to growth in H2

Admiral motor price increases
Base rate equivalent price increases2
FY22
FY23

• Beyond UK Motor: +0.5m customers

Average market
premium increase3‐ Admiral Money, ConTe, L’olivier, UK
Household and UK Travel all profitable• US results significantly improved; work
continues‐ Good progress on assessing options
UK

ConTe

L’olivier

Seguros

Elephant (NB)

(1) UK: based on Audatex YoY mvt in estimated damage claims’ repair costs for labour, parts, paint & other - indicative of current market trends; Europe: Eurostat YoY inflation data for maintenance and repair alongside spare parts and accessories for personal transport equipment (monthly data
average); US: Independent Statistical Service - YoY mvt on BI, collision & property damage severity data for 8 states in which Elephant operate (+NY, FL & CA) up until Q3 23 (2) UK Car NB+RN base rate increases; Europe Motor: premium equivalent NB+RN base rate increases; US: weighted average NBbase rates as filed to the regulator for Texas & Virginia (3) average of YoY mvt in total market average premium for UK & Europe (2023 v 22; 2022 v 21); US: NB only – weighted average change of state filing NB rate changes for VA & TX from top 5 players based on market share

55

Good progress on strategic priorities
Business diversification

Motor evolution

Increase customer engagement and business resilience,enriching our proposition beyond motor

Evolve our propositions for changes inmobility

Prime UK insurer for EVs, strong customer
growth and positive underwriting development

Admiral Money: 2nd profitable year with £10m

The Customer,
The Customer,
The Customer

UK: +12% Household customers boosted byMulticover; Travel: +40% customers, 1st profit
More Than acquisition: accelerate
diversification in attractive segments

Admiral 2.0
Leverage data and analytics to enhance ouragility, efficiency and speed of delivery on
customer needs

Guidewire 10 upgrade in the UK
and the US and new origination
platform in Admiral Money

The Team,
The Team,
The TeamContinued improvements tocustomer journeys incl. app
enhancements and expanded
use of digital channel

Veygo: +c.40% YoY premiums for 3rd consecutive
year driven by new products
Testing new propositions with Ford Insure,
Veygo and Connect

Scaled agile: fully implemented
across the group and 28% lower
cost per sprint in the UK

Extended adoption of Machine
Learning and AI; c.550 people
trained with data academy

6

Positively impacting our Customers, People and Society
Our People

Our Customers

Top 2 Trustpilot (or equivalent) for UK andEurope1>45 Group average NPS

3

1st Best Big Company to Work for in the UK

2

4

96% feel they are treated fairly regardless of

82% likely to renew after a claim
Some of our community strategy partners

13th World’s Best Workplacesnnnnnnrace, gender or sexual orientation3

Our Society

AA MSCI rating
B CDP Climate score, improved from D
SBTs submitted and awaiting validation
33% underlying reduction in scope 1&2 carbon
6nnnnnnemissions5(1) Trustpilot for UK, ConTe, Seguros and Admiral Money (Dec23 monthly average score); #1 Opinion Assurance for L’olivier (2) Relational NPS (PY: >50) (3) Group Great Place to Work Survey; Not ranked in Top 25 prior to 2023; 96% stable on PY (4) Best Companies - UK only, incl. UK Insurance,
Admiral Money & Pioneer (5) Group market-based emissions per SECR, excl. one-off event in 2023 (2022 restated: 22% reduction) (6) Science Based Targets Initiative7

We have come through two challenging years, managing many changes and navigating a complex cycle wellGroup Financials
Geraint Jones, Group CFO
8Improved profitability and strong capital generation from continued
discipline and pricing actions£443m

111.2p200%

36%103.0p+23%+17%+20pts+7pts-8%Profit before tax1

EPS1

SII ratio

ROE1

DPS

2022: £361m

2022: 95.4p

2022: 180%

2022: 29%2022: 112.0p

Turnover3£4.8bn+31%
Loan balances

Customers
UK Motor£3.37bn+35%

UK Household

£339m

+33%

International

£895m

+12%

Admiral Money£0.96bn+8%

9.7m

UK Motor

4.94m-

UK Household

1.76m

+12%

+6%

International

2.17m

+4%

2022: 9.2m2

Admiral Money

0.15m

+6%

(1) Previously reported metrics under IFRS4 for FY22: PBT: £469m; EPS: 124.3p; ROE: 35% (2) Methodology changed in 2023 with PY comparative restated from 9.28m (3) Turnover comprises total premiums written plus ‘other insurance revenue’, ‘other revenue’, and interest
income from Admiral Money

9

Positive group result despite continuing impact of inflation; much
improved underlying margins
IFRS 17

Group profit before tax
(£m)

2023

2022

IFRS 4

Change

2022

1

596.5

509.7

+86.8

615.9

European Insurance

1.6(19.8)

+21.4

(4.9)

US Insurance(19.6)(36.4)+16.8(48.9)

Admiral Money

10.2

2.1

+8.1

2.1

Admiral Pioneer(16.2)(13.5)(2.7)(15.6)

Share scheme cost

(54.4)(51.7)(2.7)(51.7)

Other Group items(75.3)(29.2)(46.1)(27.9)

Total

442.8

361.2

81.6

469.0

Loss ratio2

63.9%

70.6%

-6.7 pts

2

24.8%

26.2%

-1.4 pts

Combined ratio2

88.7%

96.8%

-8.1 pts

UK Insurance

Expense ratio(1) UK Insurance includes UK Motor, Home, Travel, Pet (2) Reported ratios based on total claims or expenses (excl. share scheme costs) net of excess of loss reinsurance recoveries,
divided by total insurance revenue (premiums and other insurance revenue) net of excess of loss premiums (incl. core and ancillaries)• UK Insurance profit +£87m (+17% v restated2022)• Motor: £593m v £525m with higher underwriting
result and >2x investment income• Household £8m profit v -£11m loss: one-off
reinsurer profit commission recognised in H1 andless severe weather in ’23; +33% turnover frompricing action and +12% customers•

EU Insurance returning to profitability• Motor: £6m profit v -£17m loss mainly from
improved underwriting and focus on efficiency(-3.5pts ER2); +17% turnover from higher rates and+6% customers• France and Italy both profitable; Spain making
progress in challenging market• Continued investment in channel diversification in
Italy and Spain, as well as Household in France
10Positive group result despite continuing impact of inflation; much
improved underlying margins
IFRS 17• US Insurance: reduced loss in tough market

IFRS 4

2023

2022

Change2022• Underwriting actions and efficiency initiatives (-5pts
ER2; -2pts CY LR2); benefits yet to fully earn through

UK Insurance1

596.5

509.7

+86.8

615.9

• No further capital injection required in 2023

European Insurance

1.6(19.8)

+21.4

(4.9)

US Insurance(19.6)(36.4)+16.8(48.9)

Admiral Money

10.2

2.1

+8.1

2.1

Admiral Pioneer(16.2)(13.5)(2.7)(15.6)

Share scheme cost

(54.4)(51.7)(2.7)(51.7)

Other Group items(75.3)(29.2)(46.1)(27.9)

Total

442.8

361.2

81.6

469.0

Loss ratio2

63.9%

70.6%

-6.7 pts

Expense ratio2

24.8%

26.2%

-1.4 pts

Combined ratio2

88.7%

96.8%

-8.1 pts

Group profit before tax(£m)• Admiral Money: strong year with £10m profit• Controlled growth, high quality risk selection,competitive cost/income ratio (-15pts YoY) and
prudent loss provision/stable credit performance• Pioneer: strong Veygo growth but adverse large loss
experience and continued SME insurance investment• Higher share price led to increased share scheme cost
• ‘Other items’ increased largely due to some large oneoffs (incl. higher M&A and regulatory project costs, andan historic Italian tax one-off cost), alongside
investment in the business and higher finance costs• £25m-£30m expected not to recur(1) UK Insurance includes UK Motor, Home, Travel, Pet (2) Reported ratios based on total claims or expenses (excl. share scheme costs) net of excess of loss reinsurance recoveries,
divided by total insurance revenue (premiums and other insurance revenue) net of excess of loss premiums (incl. core and ancillaries)• See further analysis in appendix

11Solid UK Motor results from improved CY loss ratio and higher
investment income
UK Motor income statement (£m)

2023

20221

Change11Turnover up 35% despite flat customer base YoY (returned
to growth in H2) reflecting higher average premiums frommaterial and sustained pricing action

2

Higher interest rates (3.3% vs. 1.6% group investment
return) feeding into higher returns, but also higher financeexpense (discount unwind)3

Lower co-insurer profit commission due to greater impactof lower margin 2021/22 UWYs in 2023

Turnover3,371.8

2,493.0+878.8Underwriting result

388.5

307.1

+81.4

Investment income

111.8

53.8

+58.0

Finance expenses(58.2)(36.4)(21.8)

Co-insurer profit commission

76.5

127.5

(51.0)

Other net income

74.7

72.9

+1.8

Profit before tax

593.3

524.9

+68.4

4

Core LR improved by c9pts as material rate increases frommid 2022 onwards start to earn throughReported Motor loss ratio2

61.1%

68.0%

-6.9 pts

5

Reported Motor expense ratio2

20.6%

20.9%

-0.3 pt

Largely stable core ER but written ER reflects benefit fromhigher average premiums with a 3-pt improvement to 17.8%

Reported Motor combined ratio2

81.7%

88.9%

-7.2 pts

2
3

2023

2022

ChangeCore Motor loss ratio3

66.8%

75.7%

-8.9 pts

4

Current year LR

87.0%

95.7%

-8.7pts

Core Motor expense ratio3

21.4%

21.6%

-0.2 pt

5

Releases(20.2%)(20.0%)-0.2ptCore Motor combined ratio3

88.2%

97.3%

-9.1 pts

Core Motor LR

66.8%

75.7%

-8.9pts(1) Restated under IFRS17 (2) Reported ratios based on total claims or expenses (excl. share scheme costs) net of excess of loss reinsurance recoveries, divided by total insurance revenue (premiums and other insurance revenue) net of excess of loss premiums (incl. core and ancillaries) (3) Core
product ratios based on total claims or expenses (excl. share scheme costs) net of excess of loss reinsurance recoveries, divided by total insurance premium revenue net of excess of loss premiums (core product only)

12Improving loss ratio trends; claims inflation elevated but reducing
UK Motor projected ultimate loss ratio (discounted)1

UK Motor booked loss ratio (discounted)1()pts movement since December 2022()pts movement since December 2022

Booked LR at YE23

Ultimate LR at YE23

Booked LR at end of Y1First projection of ultimate LR at end of Y1

86%

Ultimate LR at end of Y2

80%

82%

80%

78%

64%
(-)

UWY 201864%(-1pt)

201983%(-3pts)77%(-3pts)72%
69%

Booked LR at end of Y2

88%

92%

91%

86%

78%
78%
74%

65%
60%

74%

81%
(-5pts)88%(-9pts)

86%

2022

2023

67%

56%
(-2pts)

2020

97%

2021

2022

2023

64%
(-3pts)65%(-4pts)UWY 2018

2019

57%(-6pts)
2020

2021

•

8-pt improvement in 2023 ultimate v first projection of 2022, despite continued •high inflation

IFRS 17 accounting policy is for booked reserves to sit in 85th to 95th percentile
confidence level corridor•

Recent UW years prudently projected; improvement in 2023 with further scope •to improve; 2020 and older years expected to be largely stable2

Motor reserves at c93rd percentile, down from 95th at YE22 (and 94th at HY23) –sensitivities included in appendix•

Estimated 2023 severity inflation of 10% vs. 2022•

Reserve releases largely stable at c20pts; expected to continue•

Personal injury (Ogden) discount rate outcome expected late 2024/early 2025;
no change to reserving (-0.25% used in ultimate); sensitivities in appendix•

Claims inflation stayed elevated but began to slow down in H2, with further
softening expected in 2024 although a degree of uncertainty remains

Notes: all numbers on an IFRS17 basis. (1) Actuarial projection of ultimate and booked loss ratio on an underwriting year basis. Discounted loss ratios are based on cumulative claims costs recognised in retained earnings at transition (1 January 2022), plus claims costs reported through insurance
expenses line in income statement since 1 January 2022, therefore exclude unwind of finance expense from 1 January 2022 (2) For UWY 2020 and prior, ultimate projection after 1 & 2 years and first booking after 1 & 2 years are illustrative estimates as IFRS17 basis financial statements not available
for these periods

13Strong capital generation further strengthening capital position
Capital position1
●

195%

180%

182%

£1.20bn£1.25bn

SII ratio£0.71bn£0.56bn£0.54bn£0.70bn£0.66bn£0.69bn£0.71bn

2021

2022

HY23

2023

SII surplus+20pts vs. 2022 mainly driven by strong UK motor operating
capital generation in H2 2023‐

Materially above risk appetite of 150%; expect to run withsignificant headroom until internal model certainty‐

SCR still based on standard formula plus capital add-on

SII capital requirement

Movement from HY23 to FY23
33%

4%

8%

●

Progressing on partial internal model: scope expanded andexpecting to enter regulatory pre-application soon●

More Than renewal rights acquisition on track to complete in H1

3%
-8%

-22%

182%

200%

●
HY23

‐

£1.42bn£1.36bn£0.66bn200%

200% SII ratio post final 2023 dividend

Prior period LR Current
Spread &improvements period capital rate impact
generation(1) 2023 is estimated (and unaudited) as at the date of this report

Changein SCRUK risk marginreforms

Dividend‐

Funded through available free cash‐

~10pts adverse ratio impact expected on completion
reflecting intangible assets

Regulatory fixed capital add-on reduced to £24m (2022: £81m)

YE23

14

Continued sustainable dividend and high pay-out ratio, whilechanging our approach on employee share plans
Total dividend per share1
88%2• Lower 2023 FY DPS due to lower 2023 profit after tax than90%

reported under IFRS 4 for 2022

93%

• Change of approach to providing shares to employee share

187.0pschemes:‐ No further issuance of new shares from 2024 onwards(typically ~1% p.a. previously)‐ Using shares within the trusts to start with (likely 2024-25)‐ Purchasing shares in the market thereafter (funded througha reduction in special dividend)‐ Estimated to increase EPS by c1% p.a. vs. previous approach

72.0p

112.0p52.0p103.0p52.0p115.0p
60.0p

2021

2022

Pay-out ratio3
51.0p

Final dividendInterim dividend• No change to dividend policy or approach‐ Pay 65% of post-tax profits as normal dividend‐ Further distribute earnings not required to be retained forsolvency/buffers/share repurchase via special dividends

2023(1) 2022 and 2021 DPS exclude the DPS component relating to Comparison proceeds of 45.0p and 92.0p respectively (2) FY21 EPS excl. restructuring costs (3) POR on an IFRS 4 basis for 2021 and 2022 and on an IFRS 17 basis for 2023

15
15

Summary: Financials• High inflationary environment continued in H2 but started to ease with further
improvement expected in 2024
• Much improved underwriting results and strong topline growth from discipline andrating action across all geographies; benefits expected to continue to earn through• Very strong capital position; 93% pay-out ratio for total dividend and offsetting dilution
from employee share schemes from 2024 onwards

16

Our 4.4 ‘excellent' TrustPilot score reflects our commitment to deliver good outcomes to our customers

UK Insurance

Cristina Nestares, UK Insurance CEO1717

UK Insurance highlights• Admiral Motor returned to customer growth in H2 as market caught up with pricing; signsof market price increase slowing down in Q4• Motor claims inflation remains elevated, but began to slow down in H2• Strong pricing conditions in Household; weather impact remains but less severe than 2022
• Acquisition of RSA’s “More Than” renewal rights will strengthen Household and Pet
businesses• 2024 Motor prices and inflation expected to ease but uncertainty remains; continued priceincreases anticipated for Household in H1

18

Returned to customer growth in H2 as market caught up withpricing; signs of price increase slowing down in Q4
Admiral Times Top4

UK Motor – Market premium average
YoY change

Indexed 100, Jan 2022 - Dec 2023
Confused - Annual, NB

60%

ABI- Annual, NB/RN

ONS - Annual, NB

180
160

50%

140

40%

120

30%

100
20%
80
10%

60

0%

40

-10%
-20%

20
Q1 21

Q2 21

Q3 21

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Q1 23

Q2 23

Q3 23

Q4 23

• High premium environment with signs of deceleration in Q4 2023

0

Q1

Q2

X
2022

Q3

Q4

Q1

Q2

X
2023

Q3

Q4

• ABI1 Motor premium at £627 in Q4 2023, +34% YoY• Early pricing response led to a fall in competitiveness from Q2 22 withimprovement in H2 23 as market caught up with price increase• Confused2 Motor premium at £995 in Q4 2023, +58% YoY; ONS3 +47% YoY• +4% customer growth in H2 after a reduction in H1; overall flat book YoY‐

Q4 vs. Q3 +8% and 4% respectively after mid-teen increases in previous 2
quarters• Turnover +35% vs. 2022; retention higher than market especially in H2 23(1) ABI 2023 Q4 motor premium tracker – total average premium for new business and renewal (2) Confused 2023 Q4 NB market average premium tracker (3) ONS 2023 Q4 market average premium tracker (4) ‘Times Top’ represents the percentage of times Admiral brands appear in the top
position on an aggregator search

19Motor claims inflation remains elevated, but began to slow
down in H2
UK Motor – Market claims severity1

DamageIndexed 100, 2020– 2023
160●

Market inflation still running high but started to reduce in H2●

Improved parts availability and reductions in residual vehicle
values softening inflation impacts●

Frequency still 10-15% below pre-Covid levels despite
increases in Q2 road usage

150
140
130
120

Q4

Q2

X
2022

Q1

Q4

Q3

Q2

Q1

X
2021

Q4

Q3

Q2

X
2020

Q1

Q4

Q3

Q2

Q1

100

Q3

ABI Damage Cost
(3rd Party, Accidental Damage)

110

X
2023

UK- Residual car values2

Bodily Injury●

No material changes to frequency or severity for large andsmall BI●

Remain prudently reserved on BI claims considering longerterm uncertainty around wage inflation and regulation●

Whiplash Supreme Court case outcome expected in H1 2024●

Ogden rate decision expected late 2024/ early 2025

Indexed 100, 2020 – 2023
130
120
110
100
90

Dec 23

Nov 23

Sep 23

Jul 23

May 23

Mar 23

Jan 23

Nov 22

Sep 22

Jul 22

May 22

Mar 22

Jan 22

Nov 21

Sep 21

Jul 21

May 21

Jan 21Mar 21

Nov 20

Sep 20Jul 20

May 20Mar 20Feb 2080(1) ABI average damage cost (Third Party and Accidental Damage), indexed to 2020 (2) Residual car values by Glass’s Information Services Ltd. (Autovista) Used car vehicle 36 months old and driven 60,000kms, cost indexed at Feb’20

20Strong pricing conditions in Household and planned acquisitionof “More Than” renewal rights
Admiral new business price increase vs. market1
Indexed 100, Jan 2022

• Market premiums materially increased throughout
2023, mostly reflecting high claims inflation following
2022 freeze

160
150
140

AdmiralMarket average

130
120

• Admiral NB prices increased from H2 2022 andthroughout 2023, slightly ahead of market1

110
100
90
80
70
60

Jan-22Jun-22

Dec-22Jun-23

Household customers (m)

1.16

2020

1.32

2021

Dec-23

+12%

1.58

2022

1.76

• Turnover growth supported by pricing action, multi
proposition and above market retention• Acquisition of “More Than” renewal rights from RSA
expected to complete in H1:• Strong strategic fit• Will strengthen Household business and acceleratePet• First renewals expected in Q3 2024

2023

(1) Pearson Ham premium tracker – NB combined cover average based on top 5 players in PCW indexed to January 2022

21
21

Commitment to deliver fair value and good outcomes to customers
influences everything we do
Update on regulatory environment• Consumer Duty went live in July 2023 in the UK‐ Well-prepared‐ Enhanced communication and online features to support informed
decision-making; range of measures and dedicated support forvulnerable customers‐ Continue to actively review products and practices

Focus on Premium Finance• Provides fair value to our customers, adhering to our Internal Fair
Value Assessment Framework requirements• Service provides optionality to customers, allowing monthly payment
for qualifying customers• Single rate equivalent to c.21% APR1, reflecting funding & operational
costs
45%

• Pricing reforms‐ Market renewal prices decreased at the beginning of 2022. Since
H2 22, impact overshadowed by high-inflation environment.

Car quotes APRs – Admiral vs. top UK car brands2

40%
35%
30%

MarketAverage2

25%
21%
20%

Admiral15%
10%(1) Applied to customers in Household and Motor; APR can vary slightly based on changing dates and adjustments to policies (2) Car quote APRs for a range of credit profiles across UK insurance brands on PCWs and direct channels incl. top players/brands in the market; average across top
players non-weighted; and based on monthly internal benchmarking

22

We expect 2024 market prices and inflation to ease for Motor;
continued price increases anticipated for Household
Pricing outlook

Claims outlook

Motor

Motor

• Market price increases expected to slow down; different
strategies seen across players• Market damage inflation elevated but softening• Admiral to continue to adapt prices to inflation, claims
development and market conditions• We expect to see customer growth in 2024 as well as continued
attractive margins in 2024
Household• Strong market price increases likely to continue into H1 2024
• Admiral will continue to price to reflect inflation• Admiral expects severity inflation to improve towards high singledigit level throughout 2024 vs. 2023
• Uncertainty remains
Household• We expect claims inflation to stabilise for house rebuilding
materials and labour; however overall claim cost is dependent on
the severity and frequency of weather events• Actions taken place us in a good position to improve margins andprofitability over next few years, subject to weather events

Admiral remains focused on pricing discipline, prioritising medium-term profitability,
and maintaining a prudent approach to claims reserving
23

Growing brands in attractive markets continue to create sustainable value for our people and our 2.1m customers

International Insurance
Costantino Moretti, Head of International Insurance
24International Insurance highlights
Europe•Profitable overall with consistent growth despite challenging market conditions•

Protected margins by leveraging core competitive advantages in loss ratio and pricing
discipline; increased prices ahead of and by more than market•

Continued operational and expense efficiency improvements•

Focus on creating long-term sustainable value through investments in new
diversification channels

US•

Reduced losses from strong rate increases and cost reduction, despite market wide
claims inflation
25

Protecting margins by leveraging on our competitive
advantages
EU Motor average premium vs. market1• EU businesses responded quickly to cycle changes by
increasing premiums greater than market andimproving risk selection

Cumulative change indexed to YE 2022. Market YoY change

13%

ConTe

Admiral Seguros

Italy - Total Market

L’olivier

Spain - Total Market• As a result, 3pts3 margin improvement since 2021

France - Total Market

10%

9%
8%
6%

5%

4%

3%

Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23 Market’23 YoY

5%

5%

3%

Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23 Market’23 YoY

4%5%• Inflation persists in all EU markets which requires
ongoing underwriting discipline

6%
2%

Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23 Market’23 YoY

EU Motor loss ratio vs. market2• Loss ratio benefitted from rate increases, risk
selection and better claims management,
supported by improved data & analytics

Market loss ratio data up to 2022 (Italy & France)‘22 gap: +31pts

2021’22 & ‘23 gap: +4pts‘22 gap: +4pts

ConTe

Admiral Seguros

L’olivierItaly - Direct Market

Spain - Total Market

France - Total Market

2022

2023 2021• Market average premiums continued to growthroughout H2 in Italy and Spain

2022

2023 2021

2022• Despite deteriorating, ConTe LR performed well vs.
direct market peers (which had a record differential
vs. traditional market)

2023• Continued focus on maintaining loss ratio
competitive advantage across all EU markets• ConTe expected to return to c10pts in future(1) Management estimates total market for France; Spain: ICEA; Italy: ANIA (2) Market comparable loss ratios, ConTe (Direct TPO), Admiral Seguros (Total), L’olivier (Total). Conte loss ratios updated with latest ultimate loss ratios. Italy - Direct (TPO) market (IVASS), Spain – Total market (ICEA),France – Total market (FFA). 2023 data not available (3) Combined ratios have decreased across all European businesses since 2021, on a written ultimate loss ratio basis

26
26

Continued operational efficiency gains supported bya stronger tech foundation
EU Motor combined adjusted expense ratio1 and average premiums
Average premium indexed to 100, 2019-2023

100

102

97

95

21.6%

19.4%

2019

93

21.2%

21.1%

2020
2021
EU Motor adjusted expense ratio

18.8%

2022
EU Motor average premium

2023• Broadly flat EU adjusted expense ratio1 over the
past few years despite shrinking averagepremiums and increased investment indiversification• Achieved record adjusted expense ratio1 in 2023
due to efficiency gains and underwriting actions• 2pts improvement in EU combined adjusted
expense ratio1 vs. 2022

(expenses net of ancillaries1)

EU Motor customer per FTE
2023 vs. 2019 change• Material increases in efficiency from investments
into digitalisation and strong tech & data
foundations supported by increased scale

+28%
+19%
+22%

ConTe

Admiral Seguros
2019

2020

2021

• 22% improvement in EU combined risk per FTE
since 2019

L’olivier
2022

2023

(1) Europe adjusted expense ratio is defined as insurance expenses excl. share schemes, incl. claims handling costs, and adjusted to be net of ancillaries, divided by net written premium

2727Focus on long-term sustainable value with a return toprofit despite high inflation and investment
EU Motor customers (m)EU Motor turnover (€m)
+6%

+15%

+14%

1.21

2019

• EU businesses navigated a challenging
market cycle well, delivering a profitable
EU performance in 2023

+11%

1.58

1.39

1.80

1.91
€445

2020

2021

2022

2023

2019

€490

2020

€614

€552

2021

2022

€705

2023

• Prioritised margin by increasing prices
and managing customer growth• Pricing discipline and continued
investment in new channels havesupported sustainable growth

EU Motor combined result (€m)1• 2022 earned profits impacted by adifferent risk adjustment under IFRS 17

IFRS 4 and IFRS 17 Admiral share of profit shown for 2022

17.2
10.0

7.0

5.6
(1.9)

• As a result of actions taken, EU businesses
are well positioned for the futureIFRS4
IFRS 172019(1) Admiral earned share of profit

2020

2021

(19.4)
2022

2023

28
28

US: reduced losses despite continued challenging market
conditions
Elephant result ($m)1
FY23: -$24.4m

FY22: -$45.0m

Elephant Q4 vs. Q3 written whole accountresult ($m)
5

(IFRS4: $25.7)(27)• 4pts better in loss ratio3 driven by c.38% rateincreases in 2023 vs. c.16% for market4(8)

Q3 2023
H1 22• Encouraging progress from recovery plan with areduced loss in 2023 from protected margins:

(12)

(13)

(18)

• Market2 claims’ inflation remains high with +20%
higher severity vs. 2021; frequency stable at c.13%

H2 22

H1 23

• 5pts lower expense ratio5 from reduced
operational costs

Q4 2023

H2 23

Elephant customers (000’s)

Elephant turnover ($m)-18%

• Slight increase in turnover while vehicles in force
shrunk by 18% from rate increases and decisions
to decelerate new business acquisition+2%• Full benefits from actions yet to fully earn throughwith further improvements expected in 2024
212

208

229

236
194

$298

$273

$294

$332

• <96% COR whole account in Dec23 and Jan246

$337

•

2019

2020

2021

2022

2023

2019

2020

2021

2022

Focus on profitability continues as we makeprogress on assessing long-term options for thebusiness2023(1) Admiral earned share of profit (IFRS 17) (2) BI, Collision and Property Damage data for the 8 US states Elephant operates (+ NY, FL & CA); Independent Statistical Service (ISS); Elephant market comparable. Delta: 2023 (data only available Q1 to Q3) vs. FY21 (3) Insurance claims incurred andclaims releases divided by insurance revenue net of XoL (4) State filing NB rate changes for Virginia & Texas. Weighted average change from top 5 players based on market share, indexed from Dec22 to Dec23 (5) Insurance expenses excl. share schemes divided by insurance revenue net of XoL (6)COR on an earned whole account basis net of XoL and non-inclusive of interest income

29
29

Continuing to focus on high quality risk selection and a controlled approach to efficient growth

Admiral Money
Scott Cargill, CEO Admiral Money30

Admiral Money highlights•

Controlled and efficient growth: Loan book growth continued in 2023 to £957m
gross balances, in line with guidance, net income growth of 49%, cost-income ratio
also improved further•

Improved profitability: 2023 saw a first double-digit annual profit, continuing
positive trend despite economic uncertainty and rising interest rates•

Resilient credit performance: continued focus on high quality risk selection; ourcustomers payment performance remains strong•

Long-term investment in business and progressing on our strategy: continued
investment to further increase capability and customer offering, focused on being
the lender for Admiral Insurance customers
31Profitable and focused on controlled growth, whilst maintaining a
prudent approach to provision●

Outstanding loans balances (£m)

Cost-income ratio %82%• First double-digit annual profit: £10.2m
54%

£957

2022

2023

• Cost-income ratio improved to 34%

49%
39%

£888

34%

• Customer payment performance remains
resilient. High quality risk selection – prime
lending focus remains

£607
2021

FY 2021

HY 2022Admiral Money results (£m)

2021

2022

FY 2022

HY 2023

FY 20232022/23 Loss Ratio●

Protected net interest margin despite risinginterest rate environment●

56% of our new customer flows in 2023 camefrom either current or recent Admiral
Insurance customers●£81.7m total loan loss provision; coverageremains appropriately conservative at 8.5%●

No exposure to current Motor financeinvestigation into discretionary commissions●

Expected balances £1bn to £1.2bn at YE24

Not Admiral Insurance
customers

2023

Current or recent Admiral
Insurance customers

£10.2
£2.1
(£5.5)
0

Strong performance in 2023 despite external
volatility

3

6

9

12

15

18

21

Months on book32

Wrap-up
Milena Mondini de Focatiis, Group CEO
33

Positive results in a challenging environment; well-positioned forfurther growth•

Improved underlying performance, premium growth and strong capital position fromunderwriting discipline in challenging markets•

Claims inflation still elevated but slowing down; some degree of uncertainty persists; we willcontinue to monitor market trends and price accordingly•

Pleasing progress on our strategy while continuing to deliver for our customers•

Remaining well-positioned for further growth in improving market conditions, and as full
benefits from early response continue to earn through34

Appendix
35

IFRS 17 – big changes to accounting & presentation; limited
impact on bottom line expected moving forward
Reminder of key messages:••••

New accounting standard for insurance contracts
Doesn’t change ultimate profitability, or cash, or dividend capacity, or solvency, or strategy
Potential for changes in profit recognition timing, but net effect generally not expected to be significant
Big change to statutory presentation, some changes in KPI definitions

2022 restatement

2023 observations•

Main impacts of IFRS 17 on 2023:•

IFRS 17 profit for 2022 lower than IFRS4 as part of transition• Reserve margin/risk adjustment positions aligned at end
2022 under both standards• IFRS 4 results included a move down to 95th percentile over
the year• IFRS 17 results started and closed the year at 95th
percentile, meaning lower reserve releases and lower profit• Difference in profit in H2 is larger as IFRS 4 releases werelarger in H2
Reconciliation of FY22 IFRS 4 to 17 plus transition balance sheet
equity bridge included in this appendix•

Assuming similar risk adjustment movement in period, change inaccounting standard does not lead to a significant difference inprofit in 2023•

Small positive net discounting benefit (current year claims
discount minus unwind of previous years' claims) offset by small
decrease in quota share recoveries•

Reserves still very prudent, ~93rd percentile for UK Motor,
reduced slightly from 2022

36

Group Key Performance Indicators
KPIs
Group

FY23

HY23

FY22

Turnover £bn

4.81

2.24

3.68

Customers m

9.73

9.41

9.20

Group profit before tax £m

442.8

233.9

361.2

Earnings per share111.2p

57.6p

95.4p

Dividend per share (FY=total; HY=interim)

103.0p51.0p112.0p

7.39

7.01

6.96

Total premiums £m3,502.6

1,581.9

2,555.0

Reported Motor combined ratio

81.7%

82.3%

88.9%

UK insurance profit before tax £m

596.5

303.9

509.7

62

60

58

Customers m

2.17

2.21

2.08

Total premiums £m

840.0

437.6

744.2

Reported combined ratio

100.3%

99.6%

109.5%

Int’l insurance loss before tax £m(18.0)(7.6)(56.2)UK Insurance
Customers mOther revenue per vehicle £International Insurance

37Summary income statement£m

UK Insurance
FY23
FY22

International
FY23

FY22

Admiral Money
FY23

FY22

Other
FY23

FY22

92.1

59.0

48.5

41.7

4,811.5

3,680.6

44.4

31.3

3,170.6

2,704.2

202.8

174.8

(27.9)(24.8)(836.8)(755.1)

Turnover

3,776.0

2,784.3

894.9

795.9

Insurance premium net of XoL

2,369.2

1,993.4

757.0

679.5

Other insurance revenue

148.0

122.3

54.8

52.5

Expenses(559.5)(475.7)(249.4)(254.6)Claims net of XoL

Admiral Group
FY23
FY22

(1,560.2)(1,466.6)(565.2)(547.1)(33.1)(17.5)(2,158.5)(2,031.2)

Net of XoL UW result

397.5

173.4

(2.8)

(69.7)(16.6)(11.0)

378.1

92.7

Quota share result(18.4)

104.5(22.1)

13.9

0.1

(1.0)

(40.4)

117.4

Movement on OLC

4.3

5.1

0.6

(1.0)

4.9

4.1

Underwriting result

383.4

283.0

(24.3)(56.8)(16.5)(12.0)

342.6

214.2

4.9

10.2

Investment income

115.6

55.9

9.6

2.2

Net finance expenses(60.4)(37.3)

(5.3)

(1.1)

Net investment income

55.2

18.6

4.3

1.1

Profit commission

76.5

127.5

2.0

Other income and expenses

81.4

80.6

Total other income

157.9

208.1

(0.5)
2.0

4.9

0

10.2

0

(0.5)

Admiral Money result

10.2

2.1

130.1

68.3

(65.7)(38.4)

64.4

29.9

78.5

127.5

81.4

80.1

159.9

207.6

10.2

2.1

Other Group Costs(79.9)(40.9)(79.9)(40.9)

Share scheme costs
Profit/(loss) before tax(54.4)(145.9)(51.7)(94.4)(54.4)
442.8(51.7)
361.2

596.5

509.7

(18.0)(56.2)

10.2

2.1

38

Balance sheet£m

Dec-23

Dec-221Jan-221ASSETS
Property, plant and equipment
Intangible assets
Corporation tax asset
Reinsurance contract assets
Financial investments
Deferred income tax
Other receivables
Loans and advances to customers
Cash and cash equivalents

90.1
242.9
20.4
1,191.9
3,862.4
46.1
409.9
879.4
353.1

89.8
217.6
9.1
1,015.4
3,411.2
28.4
316.4
823.9
297.0

103.2
151.8
10.2
987.2
3,742.6
20.7
391.5
556.8
372.7

Total assets

7,096.2

6,208.8

6,336.7

EQUITY
Share capital
Share premium account
Retained earnings
Other reserves
Total equity (shareholders)
Non-controlling interests

0.3
13.1
1,018.9(40.5)
991.8
1.0

0.3
13.1
922.6
(50.2)
885.8
1.2

0.3
13.1
1,243.5
23.7
1,280.6
2.3

992.8

887.0

1,282.9

LIABILITIESInsurance contract liabilities
Subordinated and other financial liabilities
Trade and other payables
Lease liabilities
Corporation tax liabilities

4,581.7
1,129.8
305.8
81.2
4.9

4,025.4
939.1
254.9
88.5
13.9

3,926.4
670.9
351.2
105.3
--

Total liabilities

6,103.4

5,321.8

5,053.8

Total liabilities and equity

7,096.2

6,208.8

6,336.7

Total equity(1) 2022 comparative restated following the adoption of IFRS 17 Insurance Contracts. For further information see note 2 to the Financial statements available in the RNS.

39

Investment update
June 2023

Dec 2023
3%

7%

3%

8%

Dec 2022

8%

3%
8%

11%
£4,215m

49%

21%

46%

£4,044m

12%

16%

12%

16%

13%

10%

9%
20%

46%

£4,044m
22%£3,706m
19%

40%

16%

13%

11%
£4,215m

42%£3,706m

24%

16%

8%

6%

21%

Corporate bonds
Government bonds
Money market funds& other FV
Cash
Deposit
Other1

AAA
AA
A
BBB
Other241%(1) ‘Other’ comprises of private debt, derivatives, and equity investments; (2) ‘Other’ comprises of sub-BBB unrated securities which are primarily made up of private debt and private equity, as well as a small proportion of unrated exposure from money market funds (rated AAA and AA) but theunderlying securities are not. For more detail, please see 2023 RNS Note 6

40Investment update

£m

2023

Underlying investment income yield

3.3%

2022
(restated)

1.6%

Investment income

124.4

64.1

Unrealised (losses)/gains on derivatives

(0.2)

0.5

Movement in provision for expected credit losses

2.5

1.8

Total investment return

126.7

66.4

Unrealised gains/(losses) on investments

98.1(255.6)•

No change in investment strategy in period or forthcoming•

Broadly similar allocations and ratings•

Higher investment income reflects increased market yields•

Higher short term interest rates increased yields on
floating rate or very short-dated securities, while longer
term rates varied through the year but generally remained
higher than yields on maturing securities•

Increase in FV reserve mainly relates to reversal of losses
recognised in 2022 as bonds are held closer to maturity•

Movements due to interest rates well matched withchanges in liability valuation for solvency measurement•

Average duration of bond portfolio at 31 Dec 23 = ~ 2.9
years (31 Dec 22 = ~2.9 years)
41Analysis of Other Group items

2023

Other central costs1(41.7)(15.6)

Business development costs1(15.3)(8.8)

Finance charges2(20.3)(12.1)

Compare.com loss before tax

(2.6)

(2.8)

Other interest and investment income1

4.6

10.1

(75.3)

Other central costs increase driven by a non-recurring charge relating to the settlement of
a historic Italian tax matter, alongside higher M&A and regulatory project costs (incl.
internal model and IFRS 17)•

Higher business development costs from tests on potential new products as part ofdiversification strategy•

Finance costs: higher interest on newly issued sub-debt as well as a temporarily higher
debt balance (due to reduce from £305m to £250m in Jul-24), as well as a one-off charge
relating to the renewal of the Group’s revolving credit facility•

Sale of Compare.com completed in 2023 (no cash exchange but minority shareholding inacquirer)•

Other interest and investment income decreased to £4.6m, due to a £4.7m benefit fromthe sale of UK government bonds in 2022 which didn’t recur in 2023; a one-off loss in
2023 of £3.6m relating to the debt restructure; partly offset by higher underlying interest
income in line with higher rate environment•£25m-£30m out of 2023 total costs of £75.3m is expected not to recur

2022

£m

Total

•
(restated)(29.2)(1) A number of small re-allocations of costs/income have been made between these lines and UK/International segment results for 2022. These include moving costs related to the French fleet insurance business (closed in H1 2023) out of the Admiral Pioneer operating result, leading to alower loss in Admiral Pioneer than reported in 2022 (2) Finance charges within other Group items include £1.7m (2022: £0.7m)that relate to intra-group arrangements, with the corresponding income presented within the UK insurance result.

42

Solvency ratio movements – YE22 to YE23

43%

6%
3%
-15%
8%

18%
-43%

200%

180%

YE22

Prior period profits

Current period
Change in spread
capital generationand yields

Change in SCR

Change in risk
margin - SII

Dividend

Addition T2 capital

YE23

43

Solvency ratio sensitivities
The sensitivities below have been selected to show a range of impacts on the reported base case solvency ratio. They cover the two main material risk
types - insurance risk and market risk. Within each risk type the sensitivities performed cover the underlying drivers of the risk profile. The sensitivities
have not been calibrated, unless stated, to individual return periods.
0%
Base
Scenario 1

50%

100%

150%

200%
200%
189%

Mvt vs. base (in ppts)

Scenarios

YE23

YE22

1.

UK Motor – incurred loss ratio +5%

-11

-11

2.

UK Motor – 1 in 200 catastrophe event

Scenario 2

199%

-1

-1

3.

UK Household – 1 in 200 catastrophe event

Scenario 3

195%

-5

-4

4.

Interest rate – yield curve up 100bps

Scenario 4

199%

-1

-2

5.

Interest rate – yield curve down 100bps

Scenario 5

201%

+1

+2

6.

Credit spreads widen 100bps1

Scenario 6

195%

-5

-6

Scenario 7

197%

7.

Currency – 25% adverse movement in euro and US dollar vs. sterling-3-3

Scenario 8

197%

-3

-3

8.

ASHE – long-term inflation assumption up 50bps

Scenario 9

199%

-1

-1

9.

Loans – 100% weighting to ‘severe’ scenario2(1) 2022 credit spread sensitivity restated to include the benefit of offsetting movements in the volatility adjusted yield curve used for discounting liabilities (2) Refer to note 7 to the financial statements for further information on the ‘severe’ scenario

44

UK Motor: Ogden discount rate plus risk adjustment sensitivities1£m

Impact on PBT net of reinsurance

Ogden discount rate sensitivities2, 3

FY23

Increase by 125 bps to +1.00%

95.3

Increase by 75 bps to +0.50%

57.4

Increase by 25 bps to 0.00%

20.0

Decrease by 75 bps to -1.00%(70.2)

Risk adjustment sensitivities
Position as at end of period

93rd

Risk adjustment increase to 95th percentile(25.6)

Risk adjustment decrease to 90th percentile

24.1

Risk adjustment decrease to 85th percentile

57.6(1) Sensitivity analysis shows the impact on profit before tax for reasonably possible movements in key assumptions with all other assumptions held constant. (2) The absolute value of the risk adjustments stays consistent in all sensitivities. (3) The methodology used has changed since H1 23.

45

UK Co- and Reinsurance Arrangements
Household

Car
Admiral38%

38%

Munich Re

Other
38%

Admiral

Quota Share

38%

70%

70%

70%

70%

40%

40%

40%

40%

22%

22%

22%

22%

30%

30%

30%

30%

2020

2021

2022

2023

2020

2021

2022

2023

• 38% 'Other' quota share in place until at least 2024
• Munich Re continues to underwrite 40% of the UK
business• 20% Quota share in place until 2026
• 20% Coinsurance in place until 2029
• Improvement in net cost to Admiral from 2022

• Quota share contracts where Admiral retains 30%• End of initial contract terms approaching; analysis
ongoing regarding future contracts• The Group has non-proportional reinsurance to cover
the risk of catastrophes stemming from weather events

underwriting year (see next slide)46

UK Car: co- and reinsurance arrangements1,2
Type

Munich Re Proportional co-insurance – 20% from 2022 underwriting year onwards

Proportional reinsurance (quota share) – 58% from 2022 underwriting year onwards(20% Munich Re, 38% other reinsurers)

Cost to Admiral

Variable, depending on combined ratio

Fixed – c.2% of premium

Risk protection

Co-insurance

Reinsurance, protection starts at 100% combined ratio + allowance for investment
incomeKey items in profit commission calculation include premium, claims, expenses,
share scheme costs
Profit commission

Profit share % variable based on combined ratio and calculated intranches. Admiral’s share of profit is c.65% at typical combined ratios under recent
contracts and c.75% from 2022 underwriting year onwards

Recognised on an expected cashflow basis, including risk adjustment: this means that on
funds withheld contracts (UK Motor) there is no recognition of profit commission (theonly cashflows are payments of margin to the reinsurer, and collections of claims
recoveries on unprofitable years)

Recoveries made when reinsurer’s proportional share of claims costs (incl. risk
adjustment) + expenses + margin – allowance for investment income exceeds premium
Recoveries

N/A
Reductions in booked loss ratio (i.e. including risk adjustment) can lead to reductions inrecoveries in subsequent periods

Funds withheld

No

All

Investment income

Munich Re

Admiral(although allowance for investment income is included when calculating recoveries if
combined ratio > c.100%)

Instalment income

AdmiralAdmiralCommutation

Not applicable

Admiral has option to commute contracts and typically does this 36 months after thestart of the underwriting year

(1) Admiral Van is on a quota share basis, all 75% with Munich Re. Similar cost to Admiral as the Car QS contract, on a funds withheld basis; (2) Information for current year reinsurance agreements47

UK Car: current underwriting arrangements (2023)

Gross

Admiral Gross Share (UK Car) 80%

Co-ins, 20%

UK Motor P&L - Insurance
revenue, claims andexpenses
XoL

Gross, Net of XoL

Admiral Gross Share (UK Car), net of XoL 80%

Quota Share

Net of QS

Quota Share (58%)

Co-ins, 20%

UK Motor P&L - quota sharereinsurance result

Net, 22%48

UK Motor: earning profile of underwriting year profit
Illustrative UK Motor underwriting profit
earning profile in a profitable year•

In a profitable underwriting year:‐

Y1 – expected to be slightly profitable on average with any
underwriting profit and other income largely offset by therecognition of all expenses‐

Y2 – significant underwriting profit expected to earn through, withno further expenses and some release of risk adjustment and BE
reserves; partly offset by unwind of discounting

60%‐

Y3-5 – further releases partly offset by discounting unwind

50%‐

Y5 onwards – small incremental profits40%‐

In a lower yield curve environment, Y1-2 would show lower profits,
but the earning pattern would be largely back in line by Y5

100%
90%
80%

70%

30%
20%

•

10%
0%

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Y9

In an unprofitable underwriting year: expect a loss in Y1; a large profit
pick up in Y2; and an overall shorter earning trajectory

Y10

49

UK Motor: FY23 Total premium to Core product earned premium
£m
3,118

2,568
-550
2,115
-453

2,007
-108

1,946
-61

Decrease
Total

Total written
premiums 1

Coinsurer share
Admiral Grossof total premiums written premiums

Movement
in unearned
premiums(1) As disclosed in Appendix 1b of Admiral Group’s financial statements; Total written premiums for UK Motor

Gross earned
premiums

Ancillary earned
premiums

Admiral core
motor earned
premiums

XoL earned
Admiral share of
ceded premiums earned premiums
net of XoL1

50

UK Motor: 2023 loss and expense ratios£m
Total premiums written
Gross premiums written
Insurance premium revenue
Instalment income
Administration fees non-separable ancillarycommission
Insurance revenue (A)Insurance expenses (B)Claims incurred (C)Claims releases (D)

RNS
Note

Core
Product

Ancillary
Income1

3,004.3
2,453.9
2,007.6

113.9
113.9
107.8
99.0

-

35.8

Total, Net of
XoL
Reinsurance
3,118.2
3,016.8
2,567.8
2,485.0
2,115.4
2,053.8
99.0
99.0
Total
Gross

1. Reported ratios

Core Product Net
of XoL Reinsurance
2,903.0
2,371.1
1,946.0
-

35.8

35.8

-

242.6
2,250.2(34.4)(451.2)(35.6) (1,755.5)
406.9

2,188.6(451.2)(1,729.0)
392.8

1,946.0(416.8)(1,693.4)
392.8

Current period loss ratio (C/A)

79.0%

87.0%

Claims releases (D/A)(17.9%)(20.2%)

Reported loss ratio ((C+D)/A)
Reported expense ratio (B/A)

61.1%
20.6%

66.8%
21.4%

5b/5d
2,007.65c(416.8)5c/5d (1,719.9)
5c/5d
406.9

• Used to describe overall performance of lineof business, reflecting true profitability of all
products sold within that line of business• Includes premium, related expenses andclaims costs from ancillary products andother insurance revenue

2. Core product ratios• For analysis of individual underwriting year
profitability for core product• Used when presenting:
Reported ratios
Reported loss ratio: total claims, net of excess of loss (XoL)
reinsurance recoveries, across both core product and ancillary
products, divided by total insurance revenue net of XoL
reinsurance premiums
Reported expense ratio: total insurance expenses, excluding
share scheme costs, across both core product and ancillary
products, divided by total insurance revenue net of XoL
reinsurance premiums

Core product ratios:Core product loss ratio: total claims, net of XoL reinsurance
recoveries, for the core product only, divided by insurance
premium revenue, net of XoL reinsurance premiums
Core product expense ratio: total insurance expenses,
excluding share scheme costs, for the core product,
divided by insurance premium revenue, net of XoL
reinsurance premiums• Individual underwriting year loss ratios• Profit by underwriting year analysis

51

UK Motor: loss Ratios, discounting and finance expenses
UK Motor: future finance expense remaining1,3
At financial year end
Best Estimate, net of XoL
FY 2021
FY 2022
FY 2023
BE+RA, net of XoL
FY 2022
FY 2023

Finance expense gradually
decreasing on prior UWYs,
as claims are paid andreserves decrease in size

Undiscounted loss ratios

2016

2017

Underwriting Year
2018
2019
2020

8.7
3.8
1.5

11.0
14.0
10.7

19.6
12.3
9.8

17.1
15.3
15.7

20.3
16.4
13.8

19.5
46.0
41.1

53.0
85.1

74.3

4.2
1.7

15.6
10.8

14.4
9.9

18.9
16.4

20.5
14.8

55.2
47.4

62.2
99.4

86.7

As claims are incurred, theamount of discounting thatwill be unwound in futureyears increases

Unwind of Finance Expense
100%

80%
60%
40%

2021

2022

2023

Difference between undiscounted anddiscounted LR larger on UWYs withhigher yield curves when accidents wereincurred, leading to larger future unwindof finance expense.
Cost of unwinding discounting (to reflect
full cost of paid claims) recognised as
insurance finance expenses and will alignto profile of undiscounted claims
liabilities.
Example profile of unwind2 for individual UWY as
a % of total finance expense to be recognised
shown opposite

20%
0%
1

2

3

4

5

6

7

8

9

•

No discounting for time value of money•

Reflective of expected ultimate cash
settlements (best estimate); plus
undiscounted risk adjustment (booked
LR)

Discounted loss ratios•

Based on discounted incurred claims
costs as reported through insurance
expenses in income statement•

Excludes unwind of finance expense(separately reported)•

Finance expense based on expected
payment of claims reserves (set at startof each financial year), at “locked-in”
yield curves rates i.e. the yield curves inplace when claim originally incurred

10

Years
(1) Figures based on finance expense left to unwind on ultimate (best estimate) loss ratio (2) Based on blended payment pattern: current profile of UK motor claims payments provided in note 5 to financial statements (3) Based on gross net of XoL (i.e. excludes quota share)52

UK Motor: undiscounted loss ratio development by
underwriting year
UK Motor: undiscounted booked LRs1
Development by financial year (colour-coded)
Split by underwriting year (x axis)

Undiscounted ultimate
LRs by UWY1
FY23

FY22

104%
97%

95%

92%
82%
77%

73%
68%

77% 73%
71%
65%

96%

UWY

94%

91%
86%

67%

68%

65%
58%

FY18
FY19
FY20
FY21
FY22
FY23
2018

2019

85%

2022

90%

93%

2021

81%

83%

2020

57%

59%

2019

66%

67%

2018

65%

66%

74%

Financial Year

UWY

2023

2020

2021

2022

2023

Numbers now on an IFRS17 basis (1) Actuarial projection of ultimate, and booked loss ratio on an UW year basis, undiscounted loss ratios are reflective of ultimate cash settlements expected (ultimate) plus risk adjustment. Booked loss ratios for financial periods 2020 and prior are proxyvalues, with assumptions being made around retrospective risk adjustment selections

53

UK Motor: reserve releases by underwriting year

FY22: £327m

FY23: £393m

£187m

£63m

£48m

2020

2021

£29m

UWY

2018 & prior

2019

£81m

2022

UWY

2018 & prior

£98m
£65m
2019

2020

£80m

£69m

2021

2022

2023

Reserve releases net of XoL

54

UK Motor: accounting for prior period reserve releases
Underwriting year
Admiral TWP net of XoL (A)1

2017
1,373

2018
1,480

2019
1,456

2020
1,562

2021
1,551

Illustrative: undiscounted and discounted LRs
95.0%

Discounted booked loss ratio
FY22 (B)FY23 (C)

61%
60%

67%
64%

69%
65%

63%
57%

86%
81%

85.0%

Reduction in booked discounted LR (D)

1%

3%

4%

6%

5%

75.0%

90.0%

80.0%

70.0%

Modelled reserve release (A*D)

14

44

58

94

20X1

77

20X2

20X3

20X4

Undiscounted loss ratio

20X5

2X6
20X6

20X7

20X8

Discounted loss ratio•

Claims releases are presented within the insurance service result, basedon developments in gross claims costs (but net of XoL)•

Difference between undiscounted and discounted loss ratios
recognised through finance expense over time•

Releases include development on both ultimate loss ratios and risk
adjustment••

Releases in each period can be modelled using development in theundiscounted or discounted booked LRs – see opposite

If LRs develop favourably, total finance expense recognised overtime will be lower, due to lower total claims cost resulting inlower total discounting benefit•

Quota share reinsurers’ share of reserve releases is recognised within thereinsurance result – only occurs where the contract is still in a recovery
position and not commuted (i.e. typically where COR > 100%)

Finance expense recognised in period not impacted byfavourable or adverse development within period, but based on
opening reserves and expected payment pattern instead•

Therefore, in year releases can be modelled using in-year
movement in LRs•(1) Illustrative example only55

UK Motor: illustrative quota-share accounting example
UWY 20X1

FY 20X1

Total written premium net of XoL 1

QS share of premium 2
QS margin to be paid (A)2

2%

FY 20X2

FY 20X3

Total

Value

Value

Value

2,000

2,000

2,000

1,200

1,200

1,200

(24)

(24)

(24)

Undiscounted booked loss ratio1

100%

90%

80%

Written expense ratio1

20%

20%

20%

Investment income allowance2

(2%)

(2%)

(2%)

Undiscounted combined ratio

118%

108%

98%

% recovered (>100%)2

18%

216

8%

96

-2%

-

Discounted claims and expense recovery (B)3

80%

173

80%

77

80%

-

Total written recovery/(cost) (A + B)
Earned at year end4

P+L impact in year

149
50%

74

74

53
100%

53

(21)

(24)
100%

(24)

(77)

•

UK Motor quota share recoveries earned
based on expected cashflows•

Lower premiums and recoveries: same
ultimate cost as IFRS 4•

Estimation of QS recoveries at each period
end, and P+L impact in year, can be madeusing use QS share of premiums, expenses
and claims•

Example illustration provided•

Key inputs / assumptions:• QS share of premium• Cost of margin• Combined ratio (undiscounted)• Discounting of net quota sharerecoveries• Earning profile(24)(1) Total written premium net of XoL, written expense ratio and undiscounted booked loss ratio provided at end of each underwriting year; to be estimated at initial recognition (2) Assumptions to be based on quota share contractual arrangements – purely illustrative examples assume ~60% QS
recoveries, ~2% reinsurer margin, 2% investment income allowance on funds withheld contracts (3) Undiscounted and discounted quota share assets provided at end of each year in claims triangles; to be estimated at initial recognition – illustrative example assumes discounted recoveries as 80%
of total (4) Earning profile estimated56UK Motor: illustrative QS accounting commutation example
UWY 20X1

FY 20X1

FY 20X2

Value
Undiscounted combined ratio (CR)

118%

Value
108%

Total written recovery/(cost)
Earned at year end – no commutation

FY 20X3

74

Value
98%

149
50%

Total cost

100%

53

(24)

53

100% (24)(24)

P+L impact of movement in recoveries – nocommutation

74

(21)

(77)

(24)

Cumulative position – no commutation

74

53

(24)

(24)

Additional P+L impact if commuted – At FY 20X21(77)

Cumulative position – commuted at FY 20X2

(24)

Additional P+L impact if commuted – At FY 20X32
Cumulative position – commuted at FY 20X3

• Uses illustrative example of QS accounting
for UK Motor• Impact of commutation depends on
booked combined ratio (CR) at point ofcommutation:• If CR < 100%, no additional impact• If CR > 100%, additional loss oncommutation being difference between
asset using booked combined ratio, andtotal ultimate cost of the contract,
being the margin paid

(24)
(24)

(24)

1. If commuted at 20X2, total cost of contract at that time is £24, leading to a total cost recognised in 20X2 of £98. Thisis comprised of a loss on commutation of £77m, being the difference between the asset that would be recognised(£53) if contract not commuted, and the total ultimate cost of the contract, being the reinsurer margin of £24.

• Any impact of commutation is recognised
within the reinsurance result: no impact ongross claims reserve releases or reported
loss ratios

2. No further impact of commutation recognised given that the underwriting year is in a profitable position and the fullcost of the contract (the cost of margin of £24) has been recognised already.
Note that if the discounted combined ratio remained at 108% and the contract was not commuted (given the expected
recoveries), the asset of £53 would remain on the balance sheet until settled at the point of commutation.

57

UK Motor: illustrative example of QS accounting for prior period
reserve releases
The illustrative example below use the QS example set out on the previous slides to illustrate the impact on QS recoveries of favourable changes in loss ratio; they aresimplified to focus on the impact of claims development and as such exclude the impact of investment income allowance, discounting and cost of the reinsurer margin.
IFRS 4IFRS 17
Example 1 Example 2

Example 3

Example 1

Example 2

Example 3

QS premium (E)

1,200

1,200

1,200

QS premium (E)

1,200

1,200

1,200

CR start of period (B)Value > 100% (F)

108%
8%

103%
3%

98%
0%

CR start of period (B)Value > 100% (F)

108%

103%

98%

CR end of period (C)CR> 100% (G)

103%
3%

98%
0%

94%
0%

CR end of period (C)CR> 100% (G)

103%

98%

94%

-60
0

-60
24

-48
48

-60

-36

0

QS impact offsetting gross release (E * (G-F))
Claims release
Profit commission

-60

-36

0

QS impact offsetting gross release
Claims release (E * (C-B))
Profit commission (E * (100% - C (PY-CY)))

Total impact

-60

-36

0

Total impact• Under IFRS 17: multiply QS proportional premium by movement in combined
ratio, lower limit of combined ratio of 100% to reflect that recoveries are only
recognised where CR > 100%

• Under IFRS 4: same overall impact as IFRS 17 but split over two lines:• Full impact of reduction in loss ratio shown in claims release line
• If combined ratio below 100%, profit commission recognised as income,back up to combined ratio of 100%58

UK Motor: FY22 cumulative profit recognition (incl. IFRS 17 vs. IFRS 4)
2017
1,951
1,951
1,373

2018
2,077
2,077
1,480

Underwriting Year2019 2020 2021*
2,026 2,166 2,132
2,026 2,166 2,132
1,456 1,562 1,551

2022*
2,100
1,089
891

77%
313

85%
222

89%
167

83%
264

108%
(121)

137%
(328)

Quota share reinsurance cumulative result
Net onerous loss component

(19)

(20)

(22)

(23)

74

91
(3)

Profit commission - Co-insurance

80

47

31

70

-

(3)

Net other revenue (excl. instalment income)

148

161

152

130

146

82

Instalment income

72

86

92

106

85

78

Investment income
Finance expenses1

33
(2)

32
(4)

43
(4)

38
(3)

42
(10)

53
(7)

Cumulative earned basis profit (booked) by UWY

625

524

459

582

216

(37)

39

93

43

69

237

(37)

Combined ratio, booked IFRS 4

77%

84%

87%

82%

116%

152%

Cumulative profit IFRS 4

617

550

472

612

175

99

49

133

82

103

43

99

£m
Total written premium, net of XoL cost
Total earned premium, net of XoL cost
Total Admiral premium net of XoL

Prior

Discounted combined ratio, booked1
Cumulative Insurance service profit

Profit recognised current period

Profit recognised in current period IFRS 4

81.5

114

Total

•

Presentation aligned to IFRS17 format:•

Starting point based on total premium netof XoL (i.e. excluding quota share)•

Quota share result presented separately.
For UWYs 2020 and prior, no further
movement expected given full cost of
margin recognised and UWYs are profitable•

Discounted loss ratio and finance expenses
based on period from 1 January 2022
(transition date)•

Cumulative profit on UWYs 2020 and priorsimilar to IFRS4: differences driven by small
differences in loss ratio•

Significant difference in profitability ofcurrent UWYs that are still being earned:•

Higher profit on UWY 2021 during 2022
under IFRS 17: due to quota share earningof recoveries over both 2021 and 2022
financial years•

UWY 2022 in a cumulative loss position in
IFRS17 at FY22: again due to quota sharerecoveries being earned in line withpremium ceded, resulting in a mismatchagainst gross costs recognised

525

623

*£15m re-allocation from 2022 to 2021 compared to previously disclosed numbers (1) Discounted loss ratio and finance expenses based on period from 1 January 2022 (transition date)59

UK Motor: FY23 cumulative profit recognition
Underwriting years
Total written premium, net of XoL cost

2017
1,951

2018
2,077

2019
2,026

2020
2,166

2021
2,132

2022
2,105

2023
2,977

Total earned premium, net of XoL cost

1,951

2,077

2,026

2,166

2,132

2,105

1,403

Total Admiral premium net of XoL

1,373

1,480

1,456

1,562

1,551

1,722

1,115

Discounted combined ratio including RA
Cumulative Insurance service profit

76%
330

83%
259

84%
231

77%
361

103%
(41)

109%
(155)

123%
(257)

Quota share reinsurance

(17)

(18)

(23)

(24)

17

99

30

Net onerous loss component

0

0

0

0

0

1

0

Profit commission - Co-insurance

88

60

51

98

0

(3)

0

Net other revenue excl instalments

148

161

152

130

130

130

82

Instalment income

72

86

92

106

100

125

71

Investment income

33

32

43

38

42

53

112

Finance expenses

(3)

(6)

(7)

(6)

(21)

(30)

(14)

651

574

539

703

227

220

24

Booked discounted LR

60%

64%

65%

57%

81%

88%

86%

Booked undiscounted LR

61%

65%

67%

58%

86%

96%

94%

Cumulative earned basis profit (booked) by UWY

Prior

n/a

60

UK Motor: 2023 CY profit recognition
Total written premium, net of XoL cost
Total earned premium, net of XoL cost
Total Admiral premium net of XoL

Prior
0
0
0

2017
0
0
0

2018
0
0
0

2019
0
0
0

2020
0
0
0

2021
0
0
0

2022
5
1,016
831

2023
2,977
1,403
1,115

TOTAL
2,982
2,449
1,946

Discounted combined ratio including RA
Insurance service profit

18

17

37

64

97

80

173

(257)

229

Quota share reinsurance
Net onerous loss component

0
0

2
0

2
0

(1)
0

(1)
0

(57)
0

8
4

30
0

(17)
4

Profit commission - Co-insurance
Net other revenue excl instalments
Instalment income

7
0
0

8
0
0

13
0
0

20
0
0

28
0
0

0
(1)
0

0
48
47

0
83
71

76
129
118

Investment income
Finance expenses

0
(1)

0
(1)

0
(2)

0
(3)

0
(3)

0
(11)

0
(23)

112
(14)

112
(58)

Profit recognised current period

24

26

50

80

121

11

257

24

593

-1%
-1%

-2%
-3%

-4%
-4%

-6%
-6%

-5%
-5%

-9%
-8%

Sensitivities
1 point improvement
1 point deterioration

19.8(19.8)

13.9(13.9)

14.5(14.5)

9.6(9.6)

3 point improvement
3 point deterioration

59.3(59.3)

41.7(41.7)

43.4(43.4)

28.7(28.7)

5 point improvement
5 point deterioration

98.9(98.9)

69.5(69.5)

72.3(72.3)

47.8(47.8)

Movement in loss ratio – booked discounted
Movement in loss ratio – booked undiscounted

61

IFRS 4 into IFRS 17 Income Statement
IFRS4 income statement (management view)
A Gross earned premium
B XoL reinsurance premium
C Quota share reinsurance premium
Net earned premium
D Insurance claims
E Insurance claims recoverable from XoL reinsurers
F Insurance claims recoverable from quota share reinsurers
Net insurance claims
G Insurance operating expenses
H Commissions recoverable from quota share reinsurers
Net Insurance expenses
I Investment income
Underwriting profit including investment income
J Profit commission to/from coinsurance arrangements
K Profit commission from reinsurance arrangements
Total profit commission
L Instalment income
M Other commisison income and fees, net of costs
Net other revenue
Insurance profit before tax
N Admiral Money
O Share scheme costs
P Other costs
Profit before tax

IFRS17 income statement (management view)++
Gross earned premium
Other insurance revenue
XoL reinsurance premium
Insurance premium earned net of XoL
Insurance claims
D+Q
Insurance claims recoverable from XoL reinsurers
E Q
Insurance claims costs net of XoL
Insurance operating expenses
G
Insurance expenses
Underwriting result excluding quota share and onerous loss
component
C + F + H + K + Q Quota share reinsurance result
RR
Onerous loss component
Underwriting result
JJ
Profit commission to/from coinsurers
Net other revenue and instalment income
M
L +O
Insurance operating profit
I
Investment income
S
Net finance expenses from insurance and reinsurance contracts
Net investment income
Insurance profit before tax
NAdmiral Money
Share scheme costs
O
Other costs
P
Profit before tax
A
L +M
B

l

New under IFRS17
Removal of management margin, inclusion of
Q ENIDs and risk adjustment; claims recognised asQ
discounted values
RR Onerous loss component (net of reinsurance)
SS Unwind of discounting on insurance claims andinsurance claims recoveries from reinsurers

Quota share reinsurance result
CC Quota share reinsurance premiumCommissions recoverable from quota shareH
reinsurers
Quota share ceded premiums
Insurance claims recoverable from quota shareFF
reinsurers
Profit commission from reinsurance
KK
arrangements
Quota share recoveries
Quota share reinsurance result

All shown on a net cashflow basis meaning
premiums ceded and claims recoveries will
be shown NET for funds withheld contracts(UK motor). Additional information will be
provided to enable a comparison to IFRS4,
where amounts are reported gross.

62

Group – FY22 profit before tax: IFRS 4 to IFRS 17
UK Insurance: impacts primarily relate to UK Motor•

Lower PY release of risk adjustment (IFRS 17) compared torisk margin (IFRS 4); impact larger in H2

European Insurance:•

Small offsetting impacts in H1; larger impacts in H2, withlower PY release of RA vs. RM, aligned with UK

US Insurance:•

Favourable impact due to lower acquisition costs (written vs.
earned IFRS4) and higher QS recoveries

Other: no significant impacts for other group businesses
Risk adjustment vs. booked margin:•

95th percentile risk adjustment at YE22; under IFRS17 attransition, under IFRS4 during 2022

Discounting and quota share recoveries:•

High discount rates give some benefit to claims incurredcompared to IFRS4, reduced by unwind of discounting onprior periods claims incurred (within finance expenses)•

A large part of the discounting benefit on CY claims incurredalso drives the adverse movement on QS recoveries (highdiscounting on CY claims with small PY unwind given mostprior UWYs commuted)•

Increased impact of discounting and related QS impact for
FY22 due to higher claims cost in H2

Unwind PY Discounting:•
Timing of Movements in
Risk Adjustment

Discounting - Gross Net
of XoL

Timing of Quota Share
Recoveries

Net insurance finance expenses: unwind of discounting ofclaims incurred in prior periods at locked in rates

Other: a number of immaterial movements: acquisitions costs;
onerous loss component; earning of ancillary premium63UK Motor – FY22 profit before tax: IFRS 4 to IFRS 17

Timing of Movements in
Risk Adjustment

Discounting - Gross Net
of XoL•UK Motor drives majority of IFRS 4 to
IFRS 17 movements in 2022•

Primary driver is timing of the
movement in risk adjustment•

Discounting Gross net of XoL claims for
FY 2022 is a positive impact on current
year claims (circa £50m) offset by an
unwind of finance expense on priorperiod claims (circa £33m)•

Majority of adverse impact of quota
share recoveries is discounting on
current period recoveries (i.e. offsetting
positive impact on gross net of XoL
claims)•Small positive unwind on prior years
claims given contracts commuted

Timing of Quota Share
Recoveries

64

UK Motor – FY22 metrics: IFRS 17 vs. IFRS 4IFRS 4 numbers re-presented in IFRS 17 format:£m

IFRS 4
As reported

Add back
Split out
IFRS 4
Quota share Other revenue Re-presented

IFRS 17Difference

480.8
480.8
(9.8)
471.0
(126.1)(472.9)313.1-

1,201.6
1,201.6(34.8)
1,166.8(232.7)(1,148.6)
68.5
165.4

1,795.7
114.0
1,909.7(44.6)
1,865.1(394.0)(1,649.7)
381.6
165.4

1,795.7
114.0
1,909.7(44.6)
1,865.1(389.6)(1,596.0)
327.2
95.2

0.0
0.0
0.0
0.0
0.0
4.4
53.7
(54.4)(70.2)

185.1
35.0
35.0
170.2
232.3
622.6

19.4
18.8
18.8
(42.7)
4.5
0.0

0.0
368.4
53.8
0.0
53.8
127.5
72.9
622.6

5.2
307.1
53.8
(36.4)
17.4
127.5
72.9
524.9

5.2
(61.3)
0.0(36.4)(36.4)
0.0
0.0(97.7)••

Insurance premium revenue
Other insurance revenue
Insurance revenue
XoL
Insurance revenue, net of XoL reinsurance
Insurance expenses
Insurance claims incurred, net of xol
Insurance claims releases, net of XoL
Quota share reinsurance result
Movement in onerous loss component, net ofreinsurance
Underwriting result
Investment income
Net Insurance finance expenses
Net investment income
Profit commission
Other net income
UK motor profit before tax

113.3
114.0
227.3
227.3
(35.2)(28.2)
163.9
0.0(163.9)0.0•

IFRS 4 originally reported on net of all reinsurance
basis
Illustrative IFRS 17 format sees insurance premium
revenue and costs grossed up for quota sharereinsurance, with the quota share result presented in
one line
Other revenue is allocated out to individual line items

Prior year releases••

Lower under IFRS 17 vs. IFRS 4
No reduction in risk adjustment confidence level
under IFRS 17; small reduction in IFRS 4

Discounting••

Net favourable impact for IFRS 17 vs. IFRS 4
Quota share result also includes discounting

Other

KPIs (IFRS 17 definitions)
Reported loss ratio
Reported expense ratio
Reported Combined Rratio

68.0%
21.1%
89.1%

68.0%
20.9%
88.9%

Reported loss ratio before releases
Claims reserve releases as % of revenue

88.5%-20.5%

85.6%-17.5%

Reported insurance service margin

19.8%

16.5%

•
•

Small increases in expenses (written basis IFRS 17 vs.
earned acquisition costs IFRS 4)
Small benefit from release of onerous loss component

Quota share•

Adverse impact due to discounting impact, timing ofexpense recoveries and risk adjustment profile

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Group Equity FY21: IFRS 4 to IFRS 171
2

Notes: (1) Events Not in Data (2) Onerous loss component shown net of reinsurance recoveries

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Dividend policy overview and dates
Dividend policy and guidance▪ Admiral will pay 65% of post-tax profits as a normal dividend each half-year▪ Admiral expects to continue to distribute all earnings not required to beretained for solvency, buffers or to purchase shares for employee shareschemes

Dividend dates

Ex-dividend date:

09 May 2024

Record date:

10 May 2024

Payment date:

07 June 2024

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Admiral brands

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Disclaimer
For the purposes of this disclaimer, "presentation" means this document, any oral presentation, any question and answer session and any written or oral material discussed or
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The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no relianceshould be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the company, advisers or representatives
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with this presentation. Unless otherwise stated, all financial information contained herein is stated in accordance with applicable law and UK adopted international accounting
standards at the date hereof. All information in this presentation is subject to verification, correction, completion and change without notice. However, in giving thispresentation, the Group does not undertake any obligation to amend, correct or update this presentation or provide any additional information that may arise in connection
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Persons receiving this presentation should not place undue reliance on forward-looking statements. Unless otherwise required by applicable law, regulation or accounting
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professionals as defined in article 19(5) of the Financial Services And Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (b) high net worth
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background information on the Group and is not intended to provide complete disclosure upon which an investment decision could be made.
The financial information set out in the presentation does not constitute the Company's statutory accounts in accordance with section 423 Companies Act 2006 for the fullyear period ending 31 December 2023. This presentation should be read in conjunction with the documents distributed by the Group through the Regulatory News Service(RNS).

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