Overview & Strategic Outlook
Milena Mondini, Group CEOGroup Financials
Geraint Jones, Group CFO

UK Insurance
Cristina Nestares, UK Insurance CEO

International Insurance
Costantino Moretti, Head of International Insurance

Admiral Group plc
2020 Full Year Results
4 March 2021

Loans
Scott Cargill, Admiral Financial Services CEO

Looking After the Future
Milena Mondini, Group CEO

Q&A
All

1

Celebrating ConTe’s 10 year birthday

Celebrating Christmas – 2020 style

Overview & Strategic Outlook
Milena Mondini, Group CEO
2

The foundations of Admiral Group: Our drivers of success
3

89%

1

Avg. Group CR since 2010

Operational
excellence• Superior risk selection,
data analytics & pricing

Track recordof growth• Efficient claims management• Cost-conscious culture

5

x2.8

+1.4m

Total Group customers
since 2010

Int’l customers
since 2010

4

6

<5%

+1.3m

Group profit invested
in new ventures

UK non-motor customers
since 2010

• Effective customer
acquisition

53%

2

Avg. Group ROE
since 2010

Efficient capital
employment

Unique company
cultureAward-Winning Workplace• Great place to work
• Customer focus

Notes: (1) Weighted average Group combined ratio based on earned result excluding commuted releases; booked LR from 2010-2020; (2) Weighted average Group ROE from 2010-2020;. (3)Multiple increase of Group customers from 2010 to 2020; (4) Cumulative result of total profit or loss associated with international operations and UK non-motor operations over total Group
profits from 2010-2020; (5) Customer growth outside UK (all products but price comparison); (6) Customer growth outside motor insurance in UK.

3Group highlights: Positive outcomes during a challenging year•

Positive result and business outcomes•

Growth across businesses and geographies•

Progressed strategy and strengthened core capabilities…

•…whilst doing the right thing for our stakeholders

4

In 2020, we continued to focus on our stakeholders...

Customers

Employees•£110m refund•

Prioritised staff wellbeing•

Price reductions groupwide•

Invested in flexible
working•

Supported key workers••

Payment holidays

90% said Admiralis a great place
to work

Note: (1) Full year 2020 dividend per share

Shareholders

Communities•••£6m Covid fund and otherinitiatives
Support for repair
partners
Carbon neutral
operations•+ 21% Profit (£638m)•+ 10% Customers (7.66m)•+ 2% Turnover (£3.55b)•+ 12% FY DPS1 (156.5p)

5…and build on our strategic priorities for the future
To provide more products to happier customers:
Accelerate evolution
toward “Admiral 2.0”

KEY PILLARS

WHY?

1

Strengthen core competencies and increase
speed of delivery on customer expectations

2

Product
Diversification
Increase business resilience andengagement with customers•

Data, analytics, tech, and digital first• Scale up promising products•

Scaled Agile• Strengthen customer proposition•

Customer centric innovation• Leverage core strengths•

Smart working• Explore opportunities in “Pioneer” team•Attracting new talent• Innovate in product design

3

Evolution ofMotor
Evolve our proposition
for changes in mobility• Test-and-learn inemerging propositions
and competencies
relevant to the future

6

KEY
TRENDS

2020 accelerated existing trends; Admiral accelerated its strategic
progress

1•

STRATEGICPROGRESS

Digital and data analytics

Ways of working and living

Accelerate evolution
toward “Admiral 2.0”

Product
Diversification2

50% increase in digital interactions

Material customer growth anddoubled profit in Household•

3x Admiral Mobile App users1•

Strong adoption of cloud•Strengthened Loans business•Agile best practice across Group

•

New:

•

Enabled remote working•+5% NPS & record retention

Notes: (1) Admiral Mobile is a UK app; (2) As of 31 December 2020

Evolution of
Motor

3

•
Household

Mobility

Household•

Veygo: Flexible, shortterm motor insurance•

47% growth to
150K+ customers2•

Profitable since
20197David’s first day as CEO

David’s farewell management callGroup Financials
Geraint Jones, Group CFO
8

Positive results in a Covid dominated year

£638m

7.66m

£3.55bn

Profit before tax1

Customers

Turnover2,3

2019: £526m

2019: 6.98m

2019: £3.46bn

+ 21%

+ 10%

+ 2%

179.5p187%

52%

156.5p

Earnings per share

Solvency ratio

Return on equity

Full year dividend per share4

2019: 148.3p

2019: 190%

2019: 52%

2019: 140.0p

+ 21%

- 2%

-

+ 12%

Notes: (1) Profit before tax adjusted to exclude minority interest share; (2) Turnover comprises total premiums written plus other revenue and income from Admiral Loans; (3)Net of UK Stay at Home refund which impacts Turnover by £97m – excluding this refund, Turnover increased by 5%; (4) Deferred Full Year 2019 Interim dividend included into theFull Year 2019 dividend per share9Positive growth in Insurance customers; Loans balances fall due to
Covid response
UK Motor
Insurance1£2,474m

4.75m

Turnover2

Customers

2019: £2,455m

2019: 4.37m

+ 1%

+ 9%

Loans

£360m
Balances3
2019: £455m

UK Household
Insurance

£194m

1.16m

Turnover

Customers

2019: £171m

2019: 1.01m

+ 13%

+ 14%

- 21%

Comparison£190m
TurnoverInternational
Car Insurance

£649m

1.60m

Turnover

Customers

2019: £624m

2019: 1.42m

+ 4%

+ 13%

Notes: (1) UK Motor includes car and van insurance; (2) Net of UK Stay at Home refund which impacts Turnover by £97m; (3) Net of provision

2019: £172m

+ 11%

10

Strong releases and lower current year loss ratio contribute toincreased profit
Group Profit before Tax1
2020

2019

ChangeUK Insurance£698.1m£597.4m+£100.7m

International
Car Insurance£8.8m(£0.9m)+£9.7mLoans(£13.8m)(£8.4m)(£5.4m)Comparison£31.0m£18.0m+£13.0m

Other Group
Items
Total

(£85.7m)£638.4m(£80.0m)£526.1m(£5.7m)+£112.3m

Notes: (1) Profit before tax adjusted to exclude minority interest share; (2) Current year

● UK Insurance profit £101m
higher (~£68m factoring in
negative Ogden impact on 2019)•

Motor profit +£91m (lower
CY2 loss ratio offsetting lower
releases; higher investment
income)•Household profit +£15m(lower CY loss ratio)● International Insurance result+£10m (lower CY loss ratio)● Loans result worse due toincreased credit loss provisions● Strong Comparison result11

Higher profit and strong solvency position lead to 12% increase infull year dividend
Capital Position (£bn)1•c.£100m increase in surplus
capital vs end 2019 as increased
profitability exceeds increased
SCR2•

Very strong solvency position
maintained•

Full year dividend increase of
12% similar to profit increase(adjusting for Ogden impact in
2019)

•

Final 2020 dividend proposal of
86p per share, 89% payout ratio,
12% ahead of 2019 final
dividend

187%
190%£1.20bn

186%£1.47bn£1.27bn

£0.68

£0.57

£0.59

£0.63

£0.68

£0.79

FY 2019

HY 2020

FY 2020

Solvency Capital Requirement

Solvency Capital Surplus

Proposed 2020 Final Dividend
66.0p

FY 2018

77.0p

FY 2019

86.0p

FY 2020

Notes: (1) Estimated (and unaudited) Solvency II capital position at the date of this report; (2) Year-on-year Solvency
Capital Ratio increase higher than usual due to higher profit commission risk

12

Other developments• Comparison businesses (excluding Compare.com) disposal announced December 2020

• Net proceeds to Admiral expected to be c.£450m• Subject to regulatory approvals; completion expected in Q2 2021

• Firmly believe the transaction is a very positive outcome for all stakeholders;combination with RVU provides solid foundation for future success• UK motor reinsurance extensions for post-2021 expected to be completed in Q2 2021
• More challenging outlook for investment income in 2021 due to lower rates (1.3%
return in 2020, likely to be ~1% in 2021)• Internal model application delayed, now not expected in 2021
13

Group summary•Group continued to grow despite Covid impacts•

Continued strong releases and lower current year loss ratio
contributed to increased Group profit•

12% increase in full year dividend; very strong solvency position
maintained

14

Admiral’s Inspire Choir performing live

Admiral’s Inspire Choir performing virtually

UK Insurance
Cristina Nestares, UK Insurance CEO
15

Highlights: UK Insurance•

Motor growth 9% as Admiral reduced prices more than the market•

Strong profit due to prior year reserve releases and lower 2020
frequency•

Decrease in ancillary income due to a reduction in claims income
and a shift to digital•

Positive Household profit and growth; limited losses in Travel•2021: Expect higher loss ratio as frequency increases to morenormal levels
16Motor growth 9% as Admiral reduced prices
more than the market
Admiral 'Times Top’2,3(Indexed to 100 Jan 2019)Market average premium1 – YoY change
8%
6%

140
120
100
80
60
40
20
-

4%
2%

0%
-2%
-4%
-6%
-8%
Q1

Q2

Q3

Q4

Q1

2019

Q2

Q3

Q4

2020
ABI

Admiral Retention vs Market4(Indexed to 100 Jan 2019)

Confused140● Market prices reduced slightly••

ABI premium £468, down 3% YoY5 and up 2% QoQ6
Confused premium £763, down 6% YoY and -0.3% QoQ

120
100
80

● Admiral reduced prices more than the market

60● Strong business growth in H2 and retention for the year
AdmiralMarketNotes: (1) Source: ABI Motor Insurance Premium Tracker Q4 2020 and Confused.com Car Insurance Price index in association with Willis Towers Watson Q4 2020; (2) ‘Times Top’ represents
the percentage of times Admiral brands appear in the top position on an aggregator search; (3) Telematics policies were paused in 2020 due to Covid, impacting Times Top results(4) Management estimates; (5) Year on Year; (6) Quarter on Quarter

17

Strong profit due to prior year reserve releases
and lower 2020 frequency
Admiral Projected Ultimate Loss Ratio1

Ogden
impact77%, (-2%)
66%, (0%) 68%, (0%)

68% (-1%)

62%, (-1%)

66%

+4%3

(9%)2
24%
() % movements since June 2020

2015

2016

2017

•

Positive prior year reserve
releases•

Conservatism in reserve
margin remains unchanged

23%•

Significant drop in loss ratio
due to claims frequency

2020

•

Severity increased more thanin previous years

Releases on Original Admiral Net Share

21%

(2%)4

25%

27%

2018

2019

14%

2018

2019

2020

2015

2016

2017

Notes: (1) Actuarial projections of ultimate loss ratios on an accident year basis; (2) Ogden rate: Based on a shift of Ogden ratefrom +2.5% to -0.75%; (3) Based on a shift of Ogden rate from -0.75% to a 0% assumption; (4) Based on a shift of Ogden ratefrom a 0% assumption to -0.25%; (5) Actuarial projections of ultimate loss ratios on an accident year basis; change in premiumincluded is the average of the year18Claims frequency drop slightly offset by damage inflation;
Admiral continues to outperform market on claims costs
UK Motor Market Frequency (ABI)1

UK Motor Market Severity (ABI)2

160

160

140

140

120

120

100

100

80

80

60

60

40

40

20

20

-

-

2017

2018

2019

2020

2020 Total Claims Cost
(Indexed to Market3)

91

Admiral

2017

2018

2019

2020

Significant Covid frequency
impact; more severe in early
lockdowns•

Severity inflation, particularly inearly lockdown•

Admiral provided ongoing
financial support to garages and
NHS & emergency workers•

Admiral continues to outperformthe market on overall claims
costs

•

We also outperform in customer
outcomes, with a lower
complaints ratio than the market•

Underlying claims trends (exCovid) remain similar

Claim-Related Complaints
per 1000 Policies in Force4

1.6

100

1.1

Market•AdmiralMarketNotes: (1) ABI 2020 Q3 data: Quarterly Motor Statistics - Claims Notified for Private Car (000s) indexed to 2017 Q1; (2) ABI
2020 Q3 data: Quarterly Motor Statistics - Claims Settled for Private Car - Average Cost (£) indexed to 2017 Q1; (3)Management estimate based on ABI Q3 Total Average Cost for Private Car (including BI and AD); (4) Based on H1 2020
management estimates and market data: ABI

19

Decrease in ancillary income due to a reduction in claims income
and a shift to digital•

Lower frequency impacted
additional income as non-fault
income at claims stage has
decreased proportionally•

Acceleration in shift to digitalchannels•

Other revenue expected toremain stable in future

Other Revenue per Vehicle1£66

H2 2019£64

H1 2020£61•

Increase as claims frequency
increases•

Whiplash reform will increase
the cost of providing MLP2 by
a few pounds•

Continued shift to digital

H2 2020

Notes: (1) Other Revenue includes instalment income and contribution from additional products & fees; refers to Other
Revenue (before internal costs) divided by average active vehicles, rolling 12 month basis; (2) Motor Legal Protection

20

Positive Household profit and growthHousehold Profit/Loss (£m)

● Strong HH profit results● Shift in claims mix
£15.4

•

Increased accidental damage•

Lower spend on escape ofwater and reduction in theft£7.5● Growth of book(£3.0)
2018

2019

2020

Active Customer Base (m)•Cross-sell with Multi coverproposition•

Premium reduction to passsavings to customers● Profit growth return to morenormal levels in future
0.87

2018

1.01

2019

1.16

2020

21

2021: Expect higher loss ratio as frequency increases
to more normal levels
2021: Increase in LR
as frequency increases• Ease of lockdown measures will result•••in higher frequency
2021 loss ratio expected to be higher
than 2020 as frequency returns tonormalMarket will need to unwind some of
the Covid-driven discounts
Some positive impact of whiplash
reformFuture: Uncertainty of FCA pricing study• Uncertain impact on retention• Admiral in a strong position:
Our customers are already shoppers so
our gap is not as big as otherso Being a good underwriter will be more
important than ever, playing to Admiral’s
strengthso• Strengthening the core: Admiral 2.0

22

Celebrating our people at ConTe

Celebrating our people…virtuallyInternational Insurance
Costantino Moretti, Head of International Insurance
23

Highlights: International Insurance•

Strong set of results across all operations, impacted by lower
frequency trends•

US improved underlying result due to focus on strengthening
loss ratio fundamentals•

All Europeans operations profitable, notably ConTe•

Continued focus on efficiencies and digital improvements24

US improved underlying result due to focus on strengthening
loss ratio fundamentals
Elephant Turnover ($m)

Admiral Share of Loss ($m)1
2019

•

2020
($6.2)($12.3)

US Loss Ratio: Elephant vs Market2
Indexed to Q3 2018
120

$286

$298

2018

2019

2020

Elephant Combined Ratio
140%

118%

120%

110

$273

113%

115%
103%

100%

100

80%

90

60%

80

40%

70

20%

60

0%
2018 2018 2019 2019 2019 2019 2020 2020 2020
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3

Elephant

2017

2018

2019

Industry

Notes: (1) Represents Admiral share after reinsurance; (2) Market data: S&P Global Market Intelligence

2020

Loss ratio improvements
impacted by•

Lower frequency due to Covid•

Improvement in fundamentals
due to increased focus on risk
selection•

Premium impacted by shift to 6
month policies•

Delivering an efficient operating
business•

15% reduction in calls perpolicy•Rolled out to two new states:
Ohio and Georgia•

Launched a work-from-homediscount to support
customers
25

EU operations all profitable
EU Combined Result (€m)1

EU Turnover (€m)

€ 15.4

€367

€10.0

€ 7.2

2018

2019

2018

2020

1.39
1.21

120%

2019

102%

99%

100%

1.01

All European operations
profitable, notably ConTe•

Motor markets benefited fromlarge reductions in claims
frequency•

Innovative operations, customer
focused digital solutions

€491

€445

2020

•

EU Combined Ratio2

EU Customer Base (m)

•

93%

88%

2019

2020

>30% increase in EU active
policy base per FTE since
2016

80%

0.85

0.69

60%
40%
20%
0%

2016

2017

2018

2019

2020

2017

2018

Notes: (1) Represents Admiral share after co-insurance and reinsurance; (2) Excludes Household insurance

26

Celebrating together

Still celebrating together

Loans
Scott Cargill, Admiral Financial Services CEO
27

Higher P&L losses due to projected future increase in UK
unemployment; actual customer payment performance positive
Loans Profit/Loss (£m)

Loans Loss Charge (£m)

2019

2019

2020

(£10.7)(£10.8)2020(£8.4)(£13.8)(£3.6)(£14.3)

Uncertainty in macro
environment, provisions
increased•

Loans loss performance has
been similar and in certain
months better than prior periods•<1% of book on payment holiday
at end of year, confirming prime
bias(£15.0)(£25.8)Loss charge for loans in arrears or default
Loss charge for performing loans

4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%

•

Defaults within 12 Months

28

Coverage ratios materially increased; gradual return to market
Coverage Ratio
2020

2019

2019

2020

•

Coverage ratios materially
increased•

Quick response to Covid in
response to adverse UK
forecasts; paused lending in Q1
with a cautious phased re-entry
to market in Q3•

Evolution of the market plays toAdmiral strengths•

Gross Loans balance expected to
be in range of £500-550m by
end 2021

10.40%

5.80%

4.90%

1.50%

Up to date 2

Portfolio 1

New Business (£m)

£127
Loan sales paused in
March

Q120

Q220

£50

£4

£19

Q320

Q420

Q121E

Notes: (1) Total provision/book balance; (2) Up to date provisions divided by up to date book balance29

Looking After the Future
Milena Mondini, Group CEO
30

• Caring culture• Empowering people• Accessible, fair prices• Being there when mostneeded• Growth• Inclusivity

Admiral’s
Purpose• Protect what’s important• Enable goals and dreams• Act sustainably, for tomorrow,• Operational excellence• Test-and-learn culture• ‘People who like what
they do, do it better’• ‘Power of the Team’• Alignment of stakeholder interests• Dedication to communities

31

We want to make a positive contribution because we care

Customers

Communities• Genuine care
• Assistancewhen needed
the most• Solid local support• Positive impact on
the environment

1

We CareAbout…
Products

Employees• Useful andaffordable• Innovative• A great place
to work• Inclusive for all

Notes: (1) MSCI disclaimer: The use by Admiral Group plc of any MSCI ESG research llc or its affiliates (“MSCI”) data and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation or promotion of Admiral Group plc by MSCI. MSCI services
and data are the property of MSCI or its information providers and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

32

Conclusion: Admiral is an even stronger company today,
well-positioned for the future
Our strong foundations supported positive results and good outcomes forall stakeholders during a challenging year
We saw good progress in products beyond motor and beyond the UK,
while also developing our core competencies for a post-Covid world

Our unique culture and focus on creating long-term, sustainablebusinesses readies us for tomorrow and beyond

33Top 10 department awards ceremony

Celebrating Top 10 virtually

Appendix34

Group Key Performance Indicators1
KPI
Group Financial
Turnover £mCustomers m
Group pre-tax profit1 £mEarnings per share
Dividend per share

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2,190
3.4
299.1
81.9p
75.6p

2,215
3.6
344.6
95.1p
90.6p

2,030
3.7
370.7
104.6p
99.5p

1,971
4.1
356.5
103.0p
98.4p

2,119
4.4
376.8
107.3p114.4p

2,576
5.2
284.3
78.7p
114.4p

2,958
5.7
405.4
117.2p114.0p

3,283
6.5
479.3
137.1p126.0p

3,463
7.0
526.1
148.3p140.0p3,5502
7.7
638.4
179.5p156.5p

UK Insurance
Customers (000)Total premiums £mReported combined ratio
UK insurance pre-tax profit £mOther revenue per vehicle £

2,966
1,729
91.9%
313.6
84

3,019
1,749
90.0%
372.8
79

3,065
1,562
81.0%
393.7
67

3,316
1,482
80.0%
397.9
67

3,612
1,590
79.0%
444.2
63

4,116
1,863
88.4%
338.5
62

4,616
2,098
79.7%
466.6
64

5,238
2,270
83.6%
555.6
67

5,473
2,322
80.3%
597.4
66

5,977
2,373
70.7%
698.1
61

International Car Insurance
Customers (000s)
Total premiums £mReported3 combined ratio
International car insurance result £m

306
112.5
164%
(9.5)

436
148.5
177%
(24.5)

515
168.3
140%
(22.1)

593
185.4
127%
(19.9)

673
213.3
126%
(22.2)

864
331.3
125%
(19.4)

1,035
401.4
121%
(14.3)

1,221
484.3
116%
(1.1)

1,421
562.6
114%
(0.9)

1,603
584
108%
8.8

Comparison
Total revenue £mOperating profit /(loss) 1 £m

90.4
10.5

103.5
18.0

112.7
20.4

107.5
3.6

108.1
(7.2)

129.2
2.7

143.6
7.1

151.0
8.7

171.6
18.0

190.0
31.0

Notes: (1) Profit before tax adjusted to exclude minority interest share; (2) Net of UK Stay at Home refund which impacts Turnover by £97m; (3) Reported combined ratio is calculated on Admiral’s net share of premiums and excludes Other Revenue. It
has been adjusted to remove the impact of reinsurer caps. Including the impact of reinsurer caps the reported combined ratio would be 2018: 113%; 2019: 113%; 2020: 107%35

Summary Income Statement1
UK Insurance
2018
2019

2020

International Car Insurance
2018
2019
2020

2018

Comparison
2019

2020

2018

Other
2019

2020

2018

Admiral Group
2019

2020

151.0

171.6

183.9

17.6

33.3

6.8

3,283.0

3,463.5

3,511.5

Turnover2,575.7

2,635.0

2,672.02

538.7

623.6

648.8

Total premiums written

2,269.8

2,321.8

2,373.3

484.3

562.6

584.0

0.0

0.0

0.0

2,754.1

2,884.4

2,957.3

Gross premiums written
Net premiums written

1,684.0
538.1

1,725.1
548.3

1,771.6
561.0

474.1
157.2

548.6
184.0

561.2
218.8

0.0
0.0

0.0
0.0

0.0
0.0

2,158.1
695.3

2,273.7
732.3

2,332.8
779.8

Net earned premium

523.9

533.2

539.7

141.7

168.6

204.2

0.0

0.0

0.0

665.6

709.4

743.9

Investment income

32.2

30.4

50.8

1.3

1.5

0.0

1.9

5.3

4.5

35.4

37.2

55.3

Net insurance claims(242.5)(215.8)(150.2)(104.0)(137.2)(139.3)

0.0

0.0

0.1

(346.5)(359.3)(289.4)

Insurance related expenses(85.9)(90.5)(93.9)(55.8)(53.0)(78.8)

0.0

0.0

(0.1)

(141.7)(144.8)(172.8)Underwriting result

227.7

257.3

346.4

(16.8)(20.1)(13.9)

1.9

5.3

4.5

212.8

242.5

337.0

Profit commission
Gross ancillary revenue
Ancillary costs
Instalment income
Gladiator contribution
Comparison revenue
Comparison expenses
Loans contribution
Interest income
Other (mainly share scheme)
Interest payable

93.3
213.7
(60.6)
82.6

114.0
208.3
(67.0)
85.3

132.4
193.2
(76.1)
102.4

0.0
15.9
(2.8)
2.6

0.9
18.7
(3.3)
2.9

1.6
21.8
(4.6)
3.9

0.0
0.0
0.0
0.0
0.3

0.0
0.0
0.0
0.0
1.1

(11.8)
1.2(66.3)(11.3)(8.4)
0.9(76.6)(11.4)

0.0
0.0
0.0
0.0
(0.8)
6.1
(8.4)
(13.8)
0.4(77.9)(12.1)

93.3
229.6(63.4)
85.2
0.3
151.0
(144.4)(11.8)
1.2(66.3)(11.3)

114.9
227.0(70.3)
88.2
1.1
171.6
(156.9)(8.4)
0.9(76.6)(11.4)

134.0
215.0(80.7)
106.3
(0.8)
190.0
(159.8)(13.8)
0.4(77.9)(12.1)

Profit/(loss) before tax

556.7(86.0)(89.1)(102.0)

476.2

522.6

637.6

151.0
(144.4)

597.9

698.3

(1.1)

(0.9)

8.8

171.6
(156.9)

6.6

Notes: (1) Financial information not adjusted to exclude minority interests’ share; (2) Net of UK Stay at Home refund which impacts Turnover by £97m

14.7

183.9
(151.4)32.5

36Balance Sheet
Dec-18£m

Dec-19£m

Dec-20£m

ASSETS
Property, plant and equipment
Intangible assets
Corporation tax asset
Reinsurance contracts
Financial assets
Deferred income tax
Insurance and other receivables
Loans and advances to customers
Cash and cash equivalents
Assets associated with disposal group held for sale

28.1
162.0
1,883.5
2,969.7
0.2
1,082.0
300.2
376.8
-

154.4
160.3
2,071.7
3,234.5
1,227.7
455.1
281.7
-

140.4
166.7
22.9
2,083.2
3,506.0
1,182.0
359.8
298.2
83.0

Total assets

6,802.5

7,585.4

7,842.2

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

0.3
13.1
713.5
31.4
758.3
12.8

0.3
13.1
840.9
55.1
909.4
9.2

0.3
13.1
1,004.4
94.9
1,112.7
10.7

Total equity

771.1

918.6

1,123.4

LIABILITIESInsurance contracts
Financial liabilities
Trade and other payables
Deferred income tax
Lease liabilities
Corporation tax liabilities
Liabilities associated with disposal group held for sale

3,736.4444.2
1,801.5
49.3-

3,975.0
530.1
1,975.9
0.4
137.1
48.3
-

4,081.3
488.6
1,991.2
0.9
122.8
34.0

Total liabilities

6,031.4

6,666.8

6,718.8

Total liabilities and equity

6,802.5

7,585.4

7,842.2

37

Summary of Comparison Results
Turnover (£m)

£95

£113

Profit Before Tax (£m)

£29.4

£134
£14.3

2018

2019

2020

2018

£20.4

2019

Confused.com increased turnoverby 18% and profit by 44%•

European businesses moresignificantly impacted by Covid, so
results are pleasing•

Disposal of all Comparison
businesses to RVU (excl.
Compare.com) announced
December 2020 (completion
expected later in H1 2021)

Admiral Shareof Loss1 ($m)

Profit Before Tax (€m)

Turnover (€m)

2020

•

($1.8)($5.6)€ 52.1€ 57.1€ 54.5

€ 5.3

€ 5.2

2019

2020

($9.5)

€ 2.8

2018

2019

2020

2018

Note: (1) Result adjusted to exclude minority interest share

2018

2019

2020

38

Investment update
Dec ‘19: £3,516m

Dec ‘20: £3,858m

Cash
DepositFixed Income Investments

Money Market Funds
GILTS

AAA
AA
A
BBB
Other1

Note: (1) ‘Other’ comprises of sub-BBB ratings and unrated securities. Unrated securities consists of an AAA rated money market fund backed by government securities and other unrated
debt. Sub-BBB rated securities make up less than 1% of the total portfolio.

39Analysis of Other Group items▪ Share scheme charges increased by £1.1 million reflecting improved
2020

2019

Share scheme charges(53.8)(52.7)

Other interest &investment income

4.9

6.0

Business development

(1.8)

(2.1)

Other central overheads(22.9)(20.0)

Finance charges(12.1)(11.2)

Total(85.7)(80.0)

vesting outcomes resulting from a higher share price▪ Other interest and investment income decreased to £4.9 million. The
higher number in 2019 was driven by increased investment return
due to the increased cash holding in the parent company in that year

▪ Business development costs include costs associated with potential
new ventures. During the year Admiral established Admiral Pioneer,a team focusing on new product diversification opportunities in theUK, which incurred development costs of £0.8 million▪ Other central overheads of £22.9 million include the £6 million Covid
relief fund as declared by the Group in the year, as well as costs inrelation to the sale of the comparison businesses and continued
spend on a number of significant group projects including IMAP and
IFRS 17▪ Finance charges of £12.1 million primarily represents interest on the£200 million subordinated notes issued in July 201440

UK Car Insurance: Ultimate loss ratio, expense ratio and combined
ratio
Admiral projected ultimate loss ratio1
66%

68%

2015

2016

62%

2017

68%

2018

Admiral expense ratio2

77%
66%

2019

2020

16%

16%

16%

2015

2016

2017

17%

2018

18%

2019

19%

2020

Admiral projected ultimate combined ratio
95%
82%

84%

78%

85%

85%

▪ Recent accident year projections tend to be
prudent, particularly when adversely
influenced by large bodily injury

2015

2016

2017

2018

2019

2020

Notes: (1) Actuarial projection of ultimate loss ratio on accident year basis; (2) Admiral expense ratio is on a written basis.

41

UK Car Insurance: Booked loss ratio development by
underwriting year
UK car insurance booked loss ratio (%)
Development by financial year (colour-coded)
Split by underwriting year (x axis)

92%
88%

92%

87%

84%

83%
77%

81%
75%

73%

Ultimate loss ratio by
underwriting year

76%
72%

70%

68%

2016

78%

2017

2018
2020

2019

2018

2019
2017

2020

70%

2019

73%

2018

72%

2017

65%

2016

64%

2020

2016

42

UK Car insurance: Booked loss ratio sensitivity
Sensitivity of booked loss ratio (£m)
Underwriting year

2017

2018

2019

2020

Booked loss ratio

70%

78%

76%

72%

PBT impact of +1% move

-14.3

-11.6

-8.8

-3.2

PBT impact of +3% move

-43.5

-31.8

-28.6

-9.4

PBT impact of +5% move

-71.7

-52.2

-39.3

-14.8

PBT impact of -1% move

14.9

13.0

15.8

3.2

PBT impact of -3% move

44.1

42.3

44.2

9.7

PBT impact of -5% move

73.2

72.1

72.5

16.6

Notes: Underwriting year basis, therefore direct comparison to ultimate loss ratios on accident year basis is inappropriate; (1) Impact on profit after tax.

▪ The impact1 includes the change
in net insurance claims along withthe associated profit commission
movements that result fromchanges in loss ratios▪ The impact is not linear due tothe nature of the profit
commission arrangements e.g.
the impact of a 5% move cannot
be calculated by multiplying the
1% impact by five43

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 twomain material risk types - insurance risk and market risk. Within each risk type the sensitivities performed cover the underlying driversof the risk profile. The sensitivities have not been calibrated to individual return periods.
0%
Base
Scenario 1

50%

100%

150%

200%
187%
177%

Scenarios
1.

UK Motor – incurred loss ratio +5%

Scenario 2

186%

2.

UK Motor – 1 in 200 catastrophe event

Scenario 3

185%

3.

UK Household – 1 in 200 catastrophe event

Scenario 4

183%

4.

Interest rate – yield curve down 50 bps

Scenario 5

181%

5.

Credit spreads widen 100 bps

Scenario 6

6.

Currency – 25% movement in euro and US dollar

184%

7.

ASHE – long term inflation assumption up 0.5%

Scenario 7

184%

8.

Loans – severe peak unemployment scenario

Scenario 8

186%

44

UK co- and re- insurance arrangements
Motor
Admiral38%

38%Household

Munich Re

Admiral

Other

38%

Quota Share

38%

40%

40%

40%

40%

22%

22%

22%

22%

2018

2019

2020

2021

70%

70%

70%

70%

30%

30%

30%

30%

2018

2019

2020

2021

▪ Fully placed reinsurance arrangements until the endof 2021▪ Similar long-term quota share contracts to UK
motor▪ Similar contract terms and conditions▪ Admiral retains 30%▪ Reduction of underwriting share from 25% to 22%
with effect from 2017
▪ Munich Re continues to underwrite 40% of the UK
business until at least the end of 2021

45

Admiral UK Car co-and re-insurance1
Type

Munich Re Proportional2 co-insurance – 30%

Proportional reinsurance (quota share) – 48%(10% Munich Re, 38% other reinsurers)

Cost to Admiral

Variable, depending on combined ratio

Fixed – c2% of premium

Risk protection

Co-insurance

Starts at 100% combined ratio + Investment Income

Key items in profit commission calculation include premium, claims, expenses, sharescheme costs, investment income

Fixed fee to reinsurer, then 100% profit rebate to Admiral thereafter

Profit commission

Below ~98% combined ratio = 100%
Profit share % variable based on combined ratio and calculated in tranches with amaximum profit share of ca 65%

Funds withheld

No

Vast majority

Investment income

Munich Re

Admiral (provided combined ratio <100%)

Instalment income

AdmiralAdmiralCommutation

Not applicable

Admiral has option to commute contracts and typically does this 2 years after thestart of the underwriting year

Notes: (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) In 2016, Munich Re had a 40% co-insurance share which decreased to 30% in 2017.

46

Dividend policy overview and dates
Dividend policy and guidance▪ Admiral will pay 65% of post-tax profits as a normal dividend eachhalf-year▪ Admiral expects to continue to distribute all earnings not required tobe retained for solvency and buffers▪ Therefore expect normal plus special dividend to be in the order of
90-95% of earnings for foreseeable future
Dividend dates
Ex-dividend date:

6 May 2021

Record date:

7 May 2021

Payment date:

4 June 2021

47

Key definitions
Term

Definition

Accident year

The year in which an accident occurs, also referred to as the earned basis.

Co-insurance

An arrangement in which two or more insurance companies agree to underwrite insurance business on a specified portfolio in specified proportions. Each co-insurer isdirectly liable to the policyholder for their proportional share.

Combined ratio

The sum of the loss ratio and expense ratio.

Commutation

An agreement between a ceding insurer and the reinsurer that provides for the valuation, payment, and complete discharge of all obligations between the parties undera particular reinsurance contract.

Expense ratio

Reported expense ratios are expressed as a percentage of net operating expenses divided by net earned premiums.

Ogden discount rate

The discount rate used in calculation of personal injury claims settlements. The rate is set by the Lord Chancellor, the most recent rate of minus 0.25% in England andWales and minus 0.75% in Scotland implemented on 05 August 2019.

Loss ratio

Reported loss ratios are expressed as a percentage of claims incurred divided by net earned premiums.

Periodic Payment Order (PPO)

A compensation award as part of a claims settlement that involves making a series of annual payments to a claimant over their remaining life to cover the costs of thecare they will require.

Total / Gross / Net
Premium

Total = total premiums written including coinsurance
Gross = total premiums written including reinsurance but excluding coinsurance
Net = total premiums written excluding reinsurance and coinsurance

Reinsurance

Contractual arrangements whereby the Group transfers part or all of the insurance risk accepted to another insurer. This can be on a quota share basis (a percentage
share of premiums, claims and expenses) or an excess of loss basis (full reinsurance for claims over an agreed value).

Ultimate loss ratio

The projected ratio for a particular accident year or underwriting year, often used in the calculation of underwriting profit and profit commission.

Underwriting year

The year in which the latest policy term was incepted.

Underwriting year basis

Also referred to as the written basis. Claims incurred are allocated to the calendar year in which the policy was underwritten. Underwriting year basis results arecalculated on the whole account (including co-insurance and reinsurance shares) and include all premiums, claims, expenses incurred and other revenue (for example
instalment income and commission income relating to the sale of products that are ancillary to the main insurance policy) relating to policies incepting in the relevant
underwriting year.

Written/Earned basis

A policy can be written in one calendar year but earned over a subsequent calendar year.

48

Admiral brands

49

Disclaimer
The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made as to, and noreliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the company,
advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its
contents or otherwise arising in connection with this document. Unless otherwise stated, all financial information contained herein is stated in accordancewith generally accepted accounting principles in the UK at the date hereof.
Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and assumptions and are
subject to a number of known and unknown risks and uncertainties that may cause actual events or results to differ materially from any expected future
events or results expressed or implied in these forward-looking statements.
Persons receiving this announcement should not place undue reliance on forward-looking statements. Unless otherwise required by applicable law, regulationor accounting standard, the Group does not undertake to update or revise any forward-looking statements, whether as a result of new information, future
developments or otherwise.
This document is being distributed only to, and is directed at (a) persons who have professional experience in matters relating to investments, being
investment 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 entities falling within article 49(2)(a) to (d) of the Order, and other persons to whom it may be lawfully be communicated under
the Order (all such persons together being referred to as "Relevant Persons"). Any person who is not a Relevant Person should not act or rely on thisdocument or any of its contents. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be
engaged in only with Relevant Persons.
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 full year period ending 31st December 2020.

50