Celebrating 30 years

BETTERTOGETHER

Annual Report and Accounts 2023

1

Contents

Financial Highlights

Company Overview

Group profit before tax1,2

EPS1,2 (pence)£443m

111.2p

2023

£443m

2022

ROE

£361m

Insurance revenue

36%

95.4p

1,2

£3.5bn

2023

36%

2022

29%

£3.5bn£3.0bnCustomers3 (million)£4.8bn9.7m

2023£4.8bn2022£3.7bn

2023

9.7m

2022

£3.5bn

2021

2023
2022

Turnover1

2021

Dividend per share (pence)

9.2m
8.4m

4

Solvency ratio1 (post dividend)

103.0p2022

111.2p

2022

1,2

2023

2023

2021

200%

2022
187.0p

180%

2021

195%

Sustainability Highlights
Gender split across the Group4(2022: 50% female, 50% male)Emissions5 (tonnes CO2 per employee)

0.15 tonnes
2023

0.08*

2022
Female
50%

Male
49%

13

2023 Awards

Strategic Report
15 Chair’s statement
18 Chief Executive Officer's statement
22 Our Strategy
28	Q&A with Milena, Geraint, Cristina
and Costantino
31 Key Performance Indicators
32 Group Chief Financial Officer's review
34 2023 Group overview
38 UK Insurance review
45 International Insurance review
50 Admiral Money review
52 Other Group Items
53 Group Capital Structure and Financial Position
56 Sustainability
71	Streamlined Energy and Carbon
Reporting (SECR)
73	Task Force on Climate-related Financial
Disclosures (TCFD)
87 Section 172 Statement96	Non-Financial and Sustainability
Information Statement
98 Principal Risks and Uncertainties

Corporate Governance2023

112.0pAbout usOur Business Model– What we do– The drivers of our success– Creating value for our stakeholders

109 Viability Statement200%

103.0p

6
8
10
11
12

0.14

* Excluding one-off leak event

Net Promoter Score (NPS)Group average across our operations6>45(2022: >50)

1 Alternative performance measures, see page 316.
2 Group profit before tax, Earnings per share, Insurance revenue and Return on equity for 2022 are restated for IFRS 17.
3 2021 and 2022 Customer numbers restated – refer to the end of the report for definition and explanation.
4 1% includes non-binary and other genders, and colleagues who’d prefer not to say.
5 Scope 1 and 2 market based emissions per employee per SECR on page 71.
6 Relational NPS, methodology updated in 2022. We've seen a decrease in the NPS mainly due to increased prices,which are a reflection of current market conditions.

114 Chair's Introduction to Governance
116 Q&A with the Chair
118 Board of Directors
125 Board Leadership and Company Purpose
140 Division of Responsibilities
146	Nomination and GovernanceCommittee Report161	Audit Committee Report
168 Group Risk Committee Report
172 Remuneration Committee Report
174 Remuneration at a Glance
176 Director's Remuneration Policy
185 Annual Report on Remuneration
198 Directors’ Report

0.15

Company Overview

2023 Financial andStrategic Highlights

Financial Statements
205 Independent Auditor's Report
216 Consolidated Income Statement217	Consolidated Statement ofComprehensive Income
218 Consolidated Statement of Financial Position
219 Consolidated Cashflow Statement
220 Consolidated Statement of Changes in Equity
221	Notes to the Consolidated
Financial Statements
303	Appendix to the Group Financial Statements(unaudited)
305 Parent Company Financial Statements
306	Notes to the Parent Company
Financial Statements
Additional Information

30 years ago in Cardiff, Wales, Admiral was born.
We started as a small motor insurance Company, buthave grown to become an established multinationaland multi-product insurer, putting our customers first,
doing business in five countries and proud to be
Wales’ only FTSE 100 Company.
We are always striving to be ‘better together’, as
outlined in our purpose statement – and it’s our uniqueculture and dedicated colleagues that help us achieve this.
Thank you to every single person who, over the last
30 years, has contributed to our purpose to help more
people to look after their future.

Celebrating

30 YEARSof Admiral

People who like what they do,

do it better.

316 Glossary

Admiral Group plc Annual Report and Accounts 2023

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Company Overview

SOMETHING
BETTER
Admiral was launched in 1993 by Henry Engelhardt, David
Stevens and their team. With only one brand and 57 colleagues,
they built Admiral from the ground up. They chose to do
things differently. They were happy to embrace innovation,
new technology, new ways of working, and to take risks.
They put customers at the heart of what they did and believedin the power of the team. In 2004, Admiral floated on theHenry
London Stock Exchange, and in 2007 became, and still is,
Engelhardt
the only Welsh Company in the FTSE 100.

Company Overview

Starting

Happy colleagues = happy customers

SupportingOUR PEOPLE#1Best Big Company toWork for in the UK

A LWAY S S T R IV IN G
FO R B E T T ER,
T O GE T HER.

David
Stevens
The secret to our success is our people and our culture.
We recognise that “people who like what they do, do it better”
and it’s because we care, that we get exceptional results.
From 57 to over 13,000 people worldwide,
we have always done things the Admiral way.
Read more on page 62

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

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5Company Overview

CaringABOUT OURCUSTOMERS

Today we serve over 9,700,000 customers
with products that reflect their extensive
and changing needs. We aim to be there forthem when they need us most.
Read more on page 90

Our aim is to achieve
Net zero b y
2040

Focusing

ON THE FUTURE

After 30 years of innovation, we continue
to focus on technology and agility; diversifying
our businesses; and progressing with theevolution of motor. Through all this change ourculture and customer focus remain at our core.
Read more on page 22

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Company Overview

lcome
e
w
,
o
l
l
e
H
al
to Admir6

7Company Overview

About usOur Business Segments
UK Motor Insurance
Admiral is one of the largest car
and van insurers in the UK
BrandsCustomers:

4.9 million(2022: 4.9 million)
Turnover7:£3.4 billion(2022: £2.5 billion)

Insurance revenue:£2.6 billion

UK Insurance(2022: £1.9 billion)

UK Household Insurance

International Insurance (US)UK Loans

Admiral has growing Household, Travel
and Pet insurance businesses.
BrandsCustomers:

1.8 million(2022: 1.6 million)
Turnover7:£339 million(2022: £255 million)

Gross insurance revenue:£293 million(2022: £237 million)

International Insurance (EUR)

International Insurance8

Customers:

Admiral has Motor insurance businesses
in Italy, France, Spain, and the US, aHousehold insurance business in France
and a Pet business in Italy.

(2022: 2.1 million)

Brands

2.2 million
Turnover7:£895 million(2022: £795 million)
Insurance revenue:£843 million(2022: £750 million)

People employed globally:

Customers worldwide:>13,000 9.7m

Turnover worldwide7:£4.8bnLoans
Admiral offers unsecured personal loans
and car finance products.
BrandsCustomers:

152,000(2022: 143,000)
Total revenue:£67 million(2022: £45 million)
Gross balances:
7 Alternative Performance Measures – refer to theend of the report for definition and explanation.
8 International Insurance numbers include Motor,
Home and Pet.

Admiral Group plc Annual Report and Accounts 2023

£1 billion(2022: £0.9 billion)

Admiral Group plc Annual Report and Accounts 2023

Company Overview

Admiral Group plc is an established financial
services provider offering Motor, Household,Travel and Pet insurance, as well as personal
lending products. We are trading in five countries,
namely the UK, France, Italy, Spain and the US.

89Company Overview

Our Business Model
Company Overview

Creating

VALUE FOR ALL OF
OUR STAKEHOLDERS
Everything starts with our purpose:
Help more people to look after their future.
Always striving for better, together.
Our drivers ofsuccess help achieve
our purpose.

Our strategy is
the foundation for
future growth.

Excellentcustomer service

So we can maximise thevalue we create for our
stakeholders.

What we do

Our customers

Customers

We provide a broad range of
insurance and lending products
to meet our customers’ specificneeds, enabling more people tolook after their future.

• Simple and clear communication• Responsible sales and transparent
claims processes• Satisfied customers

UniqueCompany culture• Communication• Equality

PeopleAccelerating towards
Admiral 2.0• Recognition and reward

Managing claims

Partners &Suppliers• Fun

Operational
excellence

We engage closely with ourcustomers throughout theclaims process, ensuring
they are supported andreceive a fair outcome in atimely manner.

Our people

Shareholders• Risk selection and data analytics• Efficient claims management

Diversification

Efficient capital
employment

Communities• Good risk management

Managing risk

People are at the heartof our business. We havealways focused on providing
a supportive environmentthat allows people to develop
and grow. Our unique culture
drives openness, equality
and employees who careabout their work.

• Good value financial products• Financial discipline

Our customers pay us an agreed premium to insure themselves
against a specific risk. We efficiently pool these risks and manage
our capital with discipline to protect our customers when they need
us. We generate further income from investing premiums, selling
ancillary add-ons and unsecured personal lending products, andfrom fees generated over the lifetime of a policy. The difference
between our revenues and our paid and expected claims andoperating costs drives our profitability. The majority of our profits
are paid out in dividends, with a proportion held back to continue
investing in our capabilities and business opportunities, and tosupport growth.

Partners/suppliers
These include our partners
in reinsurance, IT hosting,
distribution and claims
management, and finance.
Read more about how we areworking with partners andsuppliers on page 95

We underwrite carefully
selected risks and share a
proportion of that risk withreinsurers and co-insurers,
earning profit commission
where the businessgenerates overall profits.

Co-insurers/re-insurers• Strong shareholder returns

Track recordof long-term
profitable growth

Environment• Prudent reserving philosophy• Test-and-learn approach• Responsible and sustainable operations Read more on page 11

Admiral Group plc Annual Report and Accounts 2023

Evolution of Motor Read more on page 22 Read more on page 87

Managing investments

We prudently invest thepremiums we collect togenerate investment income.

Dividends

Investors

Read more about what we do on page 10

Admiral Group plc Annual Report and Accounts 2023

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Company Overview

Our Business Modelcontinued

Insurance underwriting
and other products

Our primary business is to sell car,van, home, travel, and pet insurance.
The majority of our customers buy our
products through the price comparison
channel, with a smaller proportion buying
either directly or through brokers andagents. We generate further income fromthe sale of ancillary add-ons and from fees
generated over the lifetime of a policy.
The UK is our core market and we havean estimated 19% share of the private
car insurance market (2022: 17%) anda 8% share of the private home insurance
market9 (2022: 7%). We leverage thecapabilities and resources from ourestablished UK business to grow ourinternational businesses.
Outside of our core underwriting
activities, we sell a range of unsecured
personal loans and car finance productsin the UK through Admiral Money.
We also invest in new ventures throughAdmiral Pioneer, which is designed totest new products and identify futuresources of earnings.

The drivers of our success
Optimising capital structure
through reinsurance

A key feature of our business modeland success is the extensive use ofreinsurance and co-insurance partnerships.
These include proportional and nonproportional risk-sharing agreements,
where insurers outside of the Group
underwrite the majority of the risk
generated. These arrangements include
profit commission terms which allow
us to retain a significant portion of the
profit generated.

Investing premiums

We also generate income by investing
the premiums we collect. Our investment
strategy is focused on capital preservationand low volatility of returns relative
to liabilities. We have an asset liability
matching strategy to manage interest
rate and currency risk. We hold a prudent
level of liquidity and the investment
portfolio has a high-quality credit profile.

CompetingIN THEADMIRALGAMES
In 2023, colleagues from aroundthe Group had a great time taking
part in the first Admiral Games.
Every business put a team together
and came to Cardiff with high spirits
and an aspiration to win, competingin sports ranging from athletics,
swimming, football and a pentathlon!
Admiral Pioneer was crowned the2023 champion, with UK BusinessSupport coming second and Admiral
Seguros third.
Emma Huntington, Admiral Pioneer
CEO: “I am so proud of our team andhow well we competed during theAdmiral Games. We had an amazing
team that supported each otherthrough the whole two days. It was adefining two days for me at Admiral.”Andrea Ferri, ConTe: “You find yourself
spending four days on a university
campus in Wales, with 160 athletes
and colleagues from different partsof the world, competing in ten sports,
carrying the Italian and ConTe flag:
this is Admiral!”Our drivers of success help us achieve our purpose, maximise
the value we create for our stakeholders, and stand out as ago-to insurance provider.
Excellent customer service

Our focus on providing good customer
service remains as crucial today as it wasin 1993.
We aim to create insurance productsthat are easily understood and accessible
through simple and clear communication.
Our sales teams provide all relevant
information, including limitations, so ourcustomers can make informed decisions
and choose the right products fortheir needs.
To ensure responsible sales andtransparent claims processes, we actively
review our practices against internal
policies and regulatory requirements.
We provide clear guidance and focus
on delivering good outcomes toour customers in a timely manner.
Customers can reach us via multiple
channels and we have controls in place
to identify and appropriately support
vulnerable customers.
We regularly measure customer
satisfaction across key benchmarks,
such as the Net Promoter Score® (NPS),
to stay close to customers’ views andunderstand areas where our service needs
improvement, as well as where we aredoing well.

Unique Company culture

A great culture goes a long way towards
building long-term commercial success.
Our four pillars of culture are thefoundation for why we enjoy coming
to work every day and why Admiral iscelebrated as a Great Place To Work®.
We encourage open and transparent
communication at all levels.
Our management operate an open-door
policy, and our Group CEO engages withcolleagues through the ‘Ask Milena’initiative.
We promote equality and an environment
where everyone can succeed and bethemselves. Employee-led diversity andinclusion groups empower colleagues
to actively shape our employee policies.
9 Estimated based on 2023 Gross Written Premium data from the Association of British Insurers (ABI).
These numbers are an approximation and consistently calculated year-on-year.

Admiral Group plc Annual Report and Accounts 2023

2023 highlights
Excellent customer service• 4.7 “Excellent” Trustpilot scorein ConTe10

Our share ownership scheme
plays an important role in how werecognise and reward our colleagues.
When people own a part of theirCompany, they share in its success.

• >45 Group average NPS11 scoreacross our operations (2022: >50)
• >80% of customers likely to renew
after a claim12 (2022: >80%)

Since day one we’ve said, ‘if people like what
they do, they do it better’. Our ‘ministry offun’ organises events so that colleagues canspend time together, have fun and connect.

Operational excellence

We take great pride in providing good value
financial products and services that meetcustomer needs.
Our focus on risk selection and data
analytics shapes our decision-making andis built upon extensive claims experience,
underwriting capabilities, and insightsfrom big data.
Our efficient claims management is backed
by a culture of continuous improvement,
proactive engagement, decades ofexperience in claims handling, and greatcustomer service.
We remain focused on building long-termsustainable and profitable businesses
through financial discipline. Our costconscious approach is strongly embedded
across the organisation as our employees
are shareholders, and this translates into
a competitive expense ratio.

Efficient capital employment

Our partnerships with our reinsurers areunderpinned by a track-record of strong
underwriting results and good risk
management. Sharing risk allows us to holdless capital whilst ensuring protection fromlosses, thus supporting our commitment
to strong shareholder returns. We include
an assessment of the projected solvency
and principal and emerging risks aspart of our capital plan and Own Risk
and Solvency Assessment.

Track record of long-term
profitable growth

Unique Company culture• 87% of colleagues believe Admiralis a Great Place To Work®13(2022: 86%)
• 90% of colleagues feel thatmanagement is approachable andeasy to talk to13 (2022: 88%)
• 96% of people feel they are treatedfairly regardless of race or sexual
orientation13 (2022: 96%)

Long-term profitable growth andefficient capital employment• Total shareholder return of 296%
over the last 10 years14 (2022: 259%)• 49% of customers are now
from non-UK Motor businesses(2022: 46%)
• 200% solvency ratio (2022: 180%)
Our strong culture of innovation andorganic growth has helped build ourbusinesses from the ground up using ourtest-and-learn approach. We identify
opportunities, take measured steps totest our understanding of the challenges,
and acquire learnings.
Central to our approach to lasting value
creation is our continued dedication
to drive positive outcomes for our
stakeholders. As their needs evolve,
we consciously adapt to remain a
responsible and sustainable businessfor the long-term.

10 ConTe Insurance sales only.
11 Relational NPS, methodology updated in 2022.

Our success is in part due to our prudent
reserving philosophy. We release reserves
over time as we gain more informationon the development of claims or defaults
across our insurance and loans businesses.

12 UK Motor Customers, monthly score averaged over theyear. 2022 figure is restated as methodology changed
in 2023.
13 Great Place To Work Survey (GPTW) result.
14 Total shareholder return is defined as the percentagechange over the period, assuming reinvestment
of income.

Admiral Group plc Annual Report and Accounts 2023

Company Overview

What we do

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13

Company Overview

Our Business Model2023 Awards

Creating value for our stakeholders
Our People

Our Business:
Partners and Suppliers

The needs of our customers shape
the products we deliver, and the ways
in which we do so. We strive to create
good value financial products to help
more people look after their future.

People who like what they do, do
it better. This attitude enables our
test-and-learn culture, operational
excellence, happier and moreproductive employees, and ultimately
better outcomes for all stakeholders.

Our partners and suppliers areintegral to us achieving our strategic
goals and we work hard to foster
strong relationships and mitigate
risks. They comprise financial,reinsurance, IT hosting, distribution,and claims services partners.

Value created in 2023

• We implemented new online
processes across our businesses toimprove customer journeys anddeliver a smoother experience• During storm events, we handled
c6,000 claims. During our busiest
periods we sustained an average
weekly call answer rate of 97%,
demonstrating our commitment
to our customers when they needus the most
• Our affordability team supported
many of our customers during thecost of living crisis.

Value created in 2023

• We became an official Real Living
Wage accredited employer15 in the
UK and helped colleagues during
the cost of living crisis• We launched the ‘leading at
Admiral’ framework throughout
the Group, which equips leaderswith deeper skills in managing
our people• We are proud to be recognised in
all our markets as a great place towork in a number of awards and invarying categories.

Value created in 2023

• We optimised our UK repair network,
providing greater oversight of ourcustomer and supplier interactions
and improving customer outcomes,
post the network reconfiguration at
the end of 2022
• We partnered with the AA to now
provide all our UK EV customers withfree out-of-charge recovery, after asuccessful test in 2022
• Our Italian Pet Insurance business
partnered with the biggest pet store
chain in Italy, Arcaplanet, to sell our
products in-store and online.

Our Business:
Shareholders

Our Society:
Communities

Our Society:
Environment

Market engagement is key to helping
investors understand our business,strategy, and investment case.
It also provides opportunities forshareholders and investors to share
their views.

A culture of giving and a sense of
responsibility for our communities
is shared across the Group.
Our employees play a key role in how
we engage with our communities todrive long-term change both insideand outside the Group.

It is increasingly important todemonstrate responsible businessbehaviour and reduce environmental
impacts, in line with our values andthose of our stakeholders.

Value created in 2023

• Visits to our Cardiff head officeprovided investors with theopportunity to meet managers
from across the business

Value created in 2023

• IFRS 17 Q&A sessions helped
analysts and investors understandthe new accounting standard andits impact on our results• We donated over £400,000
through our Global
Community Fund

• Our new Group Chair and several
Board members held meetings
with our largest shareholders
encouraging open dialogue.

• We invested over £1.4m into
employability programmes, helping
people into jobs

• We supported over 200
organisations via our Communityand Match Fund initiatives• We launched Admiral 5-9 Club
with Welsh ICE16 to support
female entrepreneurs.

Value created in 2023

• We fully offset our carbon emissions
by purchasing Gold Standard
carbon credits,17 and additionally
supported charities dedicated tosequestering emissions• Our MSCI ESG rating assessment24
remained at AA, and our Carbon
Disclosure Project (CDP) scoreincreased to B in 2023, from D
in 2022• Due to a one-off leak event ouroverall Scope 1 and 2 market-based
emissions have increased 26%.19
Without this event we would haveseen a decrease of 33%.

15 Accredited Living Wage Employer with the Living Wage Foundation.
16 Welsh ICE is an innovation centre for enterprise.

Company Overview

Our Customers

Great Place
To Work UK®20

Great Place
To Work®
International

GPTW Best Workplaces

GPTW World’s
Best Workplaces

GPTW Best Workplaces
in France

GPTW Best Workplaces
Europe Multinational

GPTW Best Workplacesin Canada

GPTW Best Workplacesin Italy

GPTW Best Workplacesin Spain

6th

GPTW Best Workplaces for Women

3rd

GPTW Best Workplaces in Financial
Services and Insurance

1st

13th

14th

6th

2nd

GPTW Best Workplaces for Wellbeing

10th

Other Awards

People Awards

Best Big Companies to Work For in the UK

Best Leader
Milena Mondini de Focatiis, Group CEO,

14th

Best Companies, 1st

Bigger, Bolder and Braver Partner Award
Women in Data

Commended Home Insurance Provider of the Year
Moneyfacts UK

Highly Commended in the STEM Educational
Programme of the Year21

2nd

in Best Companies Awards

Milena Mondini de Focatiis, Group CEO,15th in Insurance Post Power List

Antonio Bagetta, ConTe CEO,Recognised in the Social Impact category of the
CEOforLIFE Awards Italia

Wales STEM Awards

Dan Caunt, Company Secretary,

Best Data Academy or Skills Development
Programme shortlist

Named in UK Legal 500 GC Powerlist

DataIQBest Environment and Sustainability Strategy
Welsh Contact Centre Forum, 1stBest Performing FTSE 100 Companies
for Women on Boards
FTSE Women Leaders Review, 4th

Outstanding Achievement Award
Wales UK Fast Growth 50 Index

Hannah Davies, Head of UK Data Academy,
Named in WeAreTechWomen’s #Techwomen100 Awards

Michael Lewis, Group Chief Privacy Officer,
Named in DataIQ’s 100 most influential people in data

Pankaj Kane, Chief Engineer in UK,
Named in Computing’s IT Leaders 100 list

Owen James, Senior Lawyer,
Named in Managing IP’s Ones to Watch

17 Gold Standard carbon credits represents the reduction or removal of one tonne of C02 (tC02e).
18 The use by Admiral Group of any MSCI ESG research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship,endorsement, recommendation, or promotion of Admiral Group by MSCI. MSCI services and data re the property of MSCI or its information providers, and are provided ‘as-is’ and without warranty.
MSCI names and logos are trademarks or service marks of MSCI.
19 Scope 1 and 2 market based emissions per the SECR report on page 98. Increase due to one-off leak event due to activation of a fire suppression system. This is the only location to use this type ofgas in the UK and will be replaced in 2024.

Admiral Group plc Annual Report and Accounts 2023

20 Awarded by the Great Place To Work (GPTW) Institute.
21 Science, Technology, Engineering and Mathematics (STEM).

Admiral Group plc Annual Report and Accounts 2023

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15

Strategic Report

Chair’s statement

Strategic Report

STRATEGICREPORT

Celebrating
OUR RESILIENTPERFORMANCE AND
AUTHENTIC CULTURE

In this section
15 Chair’s statement
18 Chief Executive Officer’s statement
22 Our Strategy
28 Q&A with Milena, Geraint, Cristina and Costantino
31 Key Performance Indicators
32 Group Chief Financial Officer’s review
34 2023 Group overview
38 UK Insurance review
45 International Insurance review
50 Admiral Money review
52 Other Group Items
53 Group Capital Structure and Financial Position
56 Sustainability
71 Streamlined Energy and Carbon Reporting (SECR)
73 Task Force on Climate-related Financial Disclosures (TCFD)
87 Section 172 Statement
96 Non-Financial and Sustainability Information Statement
98 Principal Risks and Uncertainties
109 Viability Statement

As I reflect on the challenges
and triumphs of the past
year, I am pleased to present
my inaugural Chair statement
for Admiral Group.
This was certainly a challenging
year, with high inflation and macroeconomic uncertainty. Against thisbackdrop, Admiral remained steadfast
in its commitment to providing peaceof mind for our colleagues, customers
and shareholders. Having worked in theinsurance industry for a number of years,
I can say that there is an authenticity ofculture and strong commercial thinking at
Admiral. The pace and passion for better
consumer outcomes is infectious.

“Admiral’s vision to
help more people lookafter their future isevident in the strong
2023 performance.”
Mike Rogers
Group Chair

Exceptional leadershipin difficult times

Milena and her Executive team haveexhibited exceptional leadership
throughout a challenging period within
the industry and economic cycle.
Our customers, suppliers, colleagues
and shareholders have all endured avery demanding year – our ability to not
only weather these storms, but to adapt
and grow is a testament to the collective
strength and strategic foresight ofour management team.
Dividend per share (pence)

103.0p
2023
2022
2021

Admiral Group plc Annual Report and Accounts 2023

103.0p112.0p187.0pAdmiral Group plc Annual Report and Accounts 2023

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Strategic Report

Chair’s statement
continued

Resilience in performance

Admiral retains outstanding competitive
advantage in the UK motor market:
defending and extending this remains
our number one priority.
We are also mindful of our opportunity
to leverage our brand, capabilities andcustomer relationships into new products
and markets.
Presently, we cater to the needs ofnearly ten million customers across fivecountries. We have made good progress
in Admiral Money and Household, Pet,
Travel and Van insurance in the UK, alongwith our European franchises. We believethat diversifying our income streams
where we have competitive advantage
will add significant shareholder value.

Green transition

Our commitment to sustainability remains
strong. Businesses, now more than ever,play a critical role in the transition toa greener economy. Admiral recognises
this responsibility and underscores its
commitment in our latest Sustainability
Report. Our journey toward a greener
future is not just a reflection of corporate
responsibility but a strategic imperativereflected in the Group’s Net Zeroambition. From supporting our customers
in the adoption of electric vehicles tousing renewable energy in our sites,sustainability is becoming embedded
throughout the business.

30 years of growth

None of the Group’s achievements would
be possible without the dedication andresilience of our thousands of colleagues
worldwide. Their energy, adaptability,
and commitment have been thedriving force behind Admiral’s success.
From Cardiff to Rome, their commitment
to each other and our customers is thebeating heart of our organisation.
This year marked a significant milestone
as Admiral celebrated its 30th anniversary.
The insurance industry and the natureof work have evolved since Admiral’s
inception in 1993, and the Group has
consistently adapted to remain a leader
in the field.

I extend my thanks to Annette Court
who joined the Board in 2012 and was
appointed Chair in 2017. Annette guided
the management team through thetransition from a founder-led business,
strengthening leadership development
and succession, helping the businessnavigate regulatory, economic, andglobal challenges.
We also fondly remember Jean Park,
who retired from the Board earlier thisyear and sadly passed away soon after.
Jean’s contributions, particularly as the
Chair of the Group Risk Committee
and Senior Independent Director,
were invaluable. Her legacy of steadfast
support and wise counsel will be greatly
missed. I welcome the addition of Fiona
Muldoon to the Board. Fiona enhances
our collective expertise and strengthens
our customer-centric approach.

Rewarding

COLLEAGUES THROUGHOUR SHARE SCHEME

Staying true to our values

While the industry has undergonechanges, Admiral’s core values remain.
Looking ahead, we remain optimistic
about the future. The Group’s strategic
roadmap is designed to drive long-termvalue for our shareholders. We areconfident that our diversified portfolio,
agile business model, and unwaveringcommitment to achieve the best
outcomes for our customers, will position
us for continued success.
I extend my gratitude to the Board,
management team, and colleagues fortheir dedication and support. Together,
we will continue to shape the future
and continue our journey of sustained
growth and success.
Mike Rogers
Group Chair
6 March 2024

Embedding

Cheya: “I used my shares to pay forthree months travelling across Australia,
New Zealand and Thailand when I had acareer break at Admiral. It was an amazing
experience and I loved every minute ofit. The shares helped me save up money
without even having to think about it.
It’s great to feel like I own a part of thebusiness I work for!”We caught up with some of our colleagues
to find out how they have used theirshares over the years and what thescheme means to them:

Aaron: “Like a lot of other people acrossthe Company, I’ve cashed my shares with
the intention of putting together a housedeposit. However, after a bit of accounting
I realised I had some spare and decided
to treat myself to a new guitar!”

Will: “The Admiral share scheme has
made a huge difference to me; I feelinvested in the success of the business andmotivated to do my best to contribute toit. The scheme has also helped me to lookafter the future of my family – including
making it possible for us to fund theconstruction of a house extension.“

OUR PURPOSE
In 2021 we formalised our purpose
statement and framework:
Help more people to look after
their future. Always striving for
better, together. Our purpose
defines the reason we exist andunderpins everything we do, fromcreating products to supporting
customers as well as our approachto sustainability.
In October 2023, we launched our
purpose toolkit for managers across theGroup. It supports “Leading with purpose”
workshops where teams explore ourframework in more detail, leading to anincreased understanding of individual,
team and departmental roles in delivering
our purpose. Continuing to cascade andAdmiral Group plc Annual Report and Accounts 2023

Since 2004, Admiral Group has
given colleagues up to £3,600 worthof share awards per year throughthe employee share scheme1.
Our colleagues play a very importantrole in our success, and we wantthem to benefit financially fromtheir hard work and dedication.

embed our purpose at all levels of ourCompany ensures it remains top of mind
when engaging with all stakeholders.
Having one common statement brings
us together so we all strive to achieve
the same goal.
Our Group Governance and UK Householdproduct teams held their workshops
in November, where they considered
how they play a part in helping more
people to look after their futureand looking after our stakeholders.
During the workshops colleagues shared
their individual purpose, writing on
jigsaw pieces that all fitted together todemonstrate how each colleague plays
their part and the importance of working
together as a team.

1 Employees working at Admiral for more than one year
receive shares through our Approved Free Share Plan (SIP)or equivalent schemes.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Admiral’s vision to help more people
look after their future is evident in thestrong 2023 performance. The Groupdemonstrated its traditional ability
to adapt, evolve, and deliver results.
This resilience is no accident; it reflects
our financial discipline and longstanding
commitment to looking after our people
and customers; thereby safeguarding ourshareholders’ interests and ensuring thesustained success of Admiral Group.

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Strategic Report

Chief Executive Officer’s statement

Whilst so much has changed, I am proudthat so much has also stayed the same.
Our core values of putting our customers
and people first and enjoying what we
do are as true today as they were in 1993.

A year of two halves

Something else that sets us apart is ourability to focus on the long term whilst
being pragmatic in how we steer thebusiness in different parts of the insurance
cycle. We do not forego difficult decisions
for short term targets. This has beena year of two halves, and our approach
serves as a perfect example ofthis mindset.
In January it felt like we were standingat the foot of a mountain. We knew we
had a steep climb ahead of us. As weentered 2023, we were still helping
customers with the freeze events of 2022.
The year began with a spike in inflation,
which persisted, and the onset of new
supply chain concerns.

2023 was a strong year.
In the context of challenging
market conditions, wereported another set of solid
results with strong Group
profit of £443 million andturnover up 31%.

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

We welcomed more than 500,000
additional customers across the Group,
an increase of 6% and substantially
improved our loss ratios, while continuing
to strengthen and diversify our business.

Milena Mondini de Focatiis
Group Chief Executive Officer

Over the past couple of years, the industry
was hit by the worst inflation in recent
history and we faced a cost-of-living
crisis in the UK. This had a negative
impact on our customers and our people,
who needed more support too.

Admiral Group plc Annual Report and Accounts 2023

Once again, we maintained pricing
discipline and acted ahead of themarket to adapt to these trends.
We continued to build on our historicalstrengths and to look after our customers
and our people, whilst at the sametime making positive progress on
our strategic objectives.
The combination of these three
things has left us well placed to achieve
further growth, increase underwriting
margins and better provide for morecustomers’ needs.

Celebrating 30 years together

Our 30th anniversary served as a great
reminder to reflect on Admiral’s journey.
From a small start-up in Wales, theAdmiral team built a £4.8 billion businesscatering to over nine million customers
across five countries. We became themarket leader in UK Motor insurance, withcumulative profits of around £7 billion
over our 30 years and a dividend payout
ratio of around 90% for our shareholders

As in 2022, we acted fast. We continued
to increase premiums ahead of the market
to account for inflation, even if this meanta further reduction of our UK Motorbook, which was 7% down year on year
at the end of June (albeit this reduction
was more than compensated by growthin other parts of the Group).
After a few challenging months wereached the summit of the mountainand started to get comfortable with
our pricing levels, but it still felt like
we needed a stronger foothold amidst
the macro-economic uncertainty.
As the summer arrived, we started tohave a better outlook and a clear sightof the downward path. Inflation and claims
trends started to stabilise. As the restof the market followed by increasing
their premiums, our competitiveness andour retention improved and in the second
half of the year we reversed our loss ofpolicies in UK Motor.

Our strategic progress

One of Admiral’s historical characteristics
is to navigate the ups and downs of
the insurance cycle well, together with
continuing to enhance our capabilities
and preparing for the next climb.
This year we made strong progress inall of our three core strategic pillars:
Admiral 2.0, business diversification andmotor evolution.
Customer experience and outcomes
have remained our primary focus,
including embracing the new Consumer
Duty act in the UK. Something I’ve been
particularly proud of was the smooth
implementation of some large technology
delivery projects, including Guidewire
claims systems for our UK customers
and a new platform for lending.
We completed the transformation
to scaled agile across all our businesses,
materially reducing the cost oftechnology change.
We continued to diversify the businesswith the number of policies beyond UK
Motor up 12% and now accounting foralmost half of total Group customers.
It has been pleasing to see, despite
the challenging market conditions,that all our businesses older than
3 years improved their results.

Recognising

OUR COLLEAGUESWHO HAVE
BEEN HEREFROM THE START,30 YEARS AGO.

Tim

Tim started in Admiral on 7 June
1993, working in the post room.
After various positions in IT,
he now works as a systems
monitoring engineer.

Bethan

It wasn’t only organic growth that
we achieved in 2023. We accelerated
our diversification strategy in the UK,announcing our intention to acquire
the renewal rights for RSA’s pet andhome direct insurance businesses,
under the More Than brand. It marked
our first acquisition of relevant size
but more importantly, the opportunity
was a perfect fit with our strategy.

Bethan joined Admiral on
19 July 1993 as an analyst
programmer. 30 years
later, after working sometime as a team manager,
she now works as a senior
analyst programmer.

We achieved double digit growth inour electric vehicle book, supporting
more of our customers to transition
to green mobility, and through Veygo
we are offering differentiated propositions
to customers to meet their evolving
mobility needs.

Teri

Teri began her journey with
Admiral on 29 September 1992 as aprogrammer and analyst. She’s had
a number of roles in IT and is now an
IT consultant.

 Read more about Tim, Bethan and Terion page 35

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Doing
THE LITTLE THINGSTHAT ADD VALUE FOR ALL
OUR STAKEHOLDERS

over the last few years. We continued
our historical trend of strong capitalefficiency and a return on equity of 36%
in 2023. This is a growth story fueledby a strong combination of core technicalcompetence and continuous innovationin every part of the value chain: service,pricing, products and distribution.

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Strategic Report

Chief Executive Officer’s statement
continued

Donating

In 2023, we sadly saw manydifficult events devastate
communities across the world.
Helping more people to look after
their future is part of our core
purpose, and so in 2021 we set
up our Global Emergency Fund,allowing a process to speed up
making donations when people
and organisations need it most.
Our people

It was another memorable year ofaccolades for our culture. Not only
were we voted as the number one
Best Company to work for in the UK
and recognised as a diversity leader
in Europe, we were also ranked 13th
globally as one of the World’s Best
Workplaces™ by 2023 Great Place toWork®. We now have over 13,000 amazingcolleagues and we celebrated Admiral’s
30th birthday together with thefirst edition of the Admiral Games
sporting event.
Together, we also stepped up ourcontribution to ‘employability’
supporting around 2,000 people
to find new jobs and volunteeringover 14,000 impact hours.

2024 and beyond

Despite persistent geopolitical andmacro-economic uncertainty, ouroutlook is more positive. We arebenefiting from better market conditions
and a stronger position, thanks to
the discipline we maintained overthe past year.
I am always mindful that the descentfrom a mountain can be more dangerous
than the climb up. There is no room
for complacency or distractions.
We will focus on every single step,with clear priorities, strong execution
and continuing to leverage on our
historical competencies.

We are well positioned for further
growth and diversification.
Assuming no unforeseen market
disruptions, I am confident that
we should expect stronger underwriting
performance across all our geographies.
And in the long term, I look forward
to seeing Admiral celebrate another30 years of success.

Milena Mondini de Focatiis
Group Chief Executive Officer
6 March 2024

In 2023, we donated over £400,000 to anumber of urgent appeals, including:CanadaThe wildfires in Nova Scotia brought
devastation to its communities withover 200 homes and structures lost or
damaged, and over 16,000 residents
having to evacuate. To support therecovery, we donated CAN$50,000
through our Global Emergency Fund andcreated an emergency colleague support
fund to provide immediate assistance toemployees affected by the fires.

Italy

The region of Emilia-Romagna suffered
severe flooding in May, resulting in morethan 36,000 people displaced across
100 cities and towns. Through the Global

Helping

Emergency Fund, and working with
ConTe’s Charity Team, we donated €25,000
to the Civil Protection Department that
supported relief efforts on the ground.

Turkey and Syria

We donated £250,000 to the Disasters
Emergency Committee (DEC) Turkey
and Syria Earthquake Appeal following
the devastating effects of the
Kahramanmaras earthquakes in February
2023. This supported aid efforts including
emergency food for 2,000 families for ten
days, plus tents for 240 families who losttheir homes.
Our UK business also matched any
donations made from colleagues toTurkey-Syria appeals via our Give-As-YouEarn programme, from February to April,raising an additional £6,250.

OUR CUSTOMERSTHROUGH IMPACTS
OF EXTREME WEATHER
Weather events can be extremely
disruptive and stressful if homes
are damaged. One of our customers
and their family were faced with thepossibility of months out of theirhome after Storm Babet left theirhouse flooded. Their daughter had
been diagnosed with an aggressive
form of cancer a few weeks prior to
the event, and their home had been
set up to care for her.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report£400,000 AS PARTOF OUR GLOBAL
EMERGENCY FUND

As their insurer, we wanted to do
whatever was possible to get them safely
back in their home before Christmas,
knowing that claims of this magnitude
can mean restoration works take a very
long time. We worked closely with our
suppliers to assist the family in finding a
rental property suitable for their needs,
however as the restoration process wasexpedited with the help from suppliers,
the family decided to remain in the
hotel instead.

Thanks to the effort of all involved, thefamily were back in their home in time
for Christmas.
We understand the value of quality
products and efficient service, and areproud to have helped the family get backinto their home quickly. Supporting ourcustomers is at the heart of what we do:
we focus on being there for our customers
when they need us the most.

Admiral Group plc Annual Report and Accounts 2023

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Strategic Report

Our Strategy• L’olivier introduced a welcome
bot which uses AI to identify andauthenticate the customer andtheir reasons for calling. This means
customers can quickly be put throughto the right person to help

• ConTe launched a digital assistant that
identifies customer needs and guides
them to a solution, avoiding the needfor a phone call when appropriate.

1. ACCELERATINGTOWARDSADMIRAL 2.0
Overview

Our ambition is to accelerate theevolution of our core businesses
toward what we refer to as Admiral 2.0,
continuing to leverage our historicalstrengths whilst becoming even moreagile, digital and technology-focused.
Admiral 2.0 puts the customer first andleverages data and advanced analytics toconstantly be more efficient to improvetheir overall experience.

Core competencies:• Digital first• Scaled agile• Customer-centric innovation• Smart working• Data and advanced analytics andenhanced risk selection

Progress in 2023:
Digital first• We have continued transitioning to thecloud. This enables us to better serve ourcustomers by using modern, featurerich technology platforms with a good
digital experience• In 2023 >50% of Group digitalinteractions, sales and renewals werecompleted online, allowing customers toreach us in the way that suits them best

• The Elephant UK app brand in the UK
now has the ability for breakdown
customers to report a breakdown
directly through the Elephant app,thus accessing AA breakdown recovery
assistance easily and quickly.

Scaled agile• All businesses have further embedded
agile ways of working. Scaled agile
enables better collaboration between
functions and quicker customer
feedback, leading to improved products
and processes• Our UK insurance business createda new operating model that ensures
greater alignment between IT andbusiness areas, further reducing
dependencies between teams andcreating an optimised flow of value
delivered to our customers• Implementing scaled agile has helped tobetter organise people and outcomes,
with dedicated focus on growth,customer and efficiency targets.

Customer-centric innovation• Our UK operations have continued todevelop our virtual assistant capability
in our contact centres. Customers are
effectively directed to the right service
to them, whether digital or an agent

Admiral Group plc Annual Report and Accounts 2023

Smart working• We continued to evolve our hybrid
working model to focus on making
the time in the office meaningful
with more spaces for engagement
and collaboration• We regularly complete Pulse surveys
to ensure the happiness of staff
and effectiveness of our new way ofworking, and have continued to ensure
we support all colleagues no matter
where and how they work.

Data and advanced analytics andenhanced risk selection• In the UK, we have implemented the
NextGen Application Programming
Interface (API) platform alongsidea range of services, to improve theexperience of our contact centre
agents by swiftly providing them with
the information that they need when
they are on calls with customers

TO THE CLOUD
We have updated our US and UK
core product systems that manage
customer payments and policies andhave migrated these to the cloud.
We have also started the process
of upgrading the systems in our
European businesses. This will drive
better outcomes for our customers,
upgrade our technology stack andfuture-proof our businesses.
This upgrade helps to mitigate
technology and security risk, improves the
speed of release, reduces the overheadof upgrades going forward and the total
cost of ownership of the estate.

It’s been a hugely successful firstyear for the UK Data Academy.

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Security remains paramount and isembedded into all cloud-based processes:
anything hosted externally is managedwith directory-integrated, role-based
access and multi-factor authentication.

DATA ACADEMYTURNING ONE!

• We continued to enhance our risk
selection capabilities, and we leveraged
our cloud-based machine learning
platform by implementing our firstmodels in our Van insurance businessand continued to develop models inour other businesses.

B

Our UK Insurance business now performs
the majority of its transactions in thecloud, and crucially all new policies
and most claims are cloud managed.
This increases agility and speed to market
by reducing the cost and risk of launching
new products.

Celebrating• We are nearing completion of our new
European data platform. This is a suiteof innovative technologies which will
deliver faster and more insightful data
to support decision-making

A

Strategic Report• Admiral Seguros opened new customer
communication channels, including
WhatsApp for service, chat online forquotes, and online claims help for ‘first
notification of loss’

TransitioningLRead more on page 98
2 British Data Awards 2023 Finalist – Education
Initiative of the Year/Wales STEM Awards 2023
Highly Commended STEM Educational Programmeof the Year/DataIQ 2023 Finalist – Best data academy
or skills development programme.

The Academy was set up to supply
training and development programmes
and events, increase data awarenessand education, and improve diversity inthe data world. It has surpassed its 2023
target of 3,000 training hours, with over
500 people across 50 different teams
engaging with the Academy during theyear, and over 70 mentoring relationships
established. The training has focused onlearning events, cloud tooling, our data
strategy and topics such as generative
AI. Our people have benefitted fromaccess to training, learning events suchas lunch and learns and community
drop-in knowledge sessions, including
more than 50 people benefitting fromindividual development programmes sincelaunching. As well as this, the Academy
has continued to partner with Women in
Data, providing us access to their 35,000
strong Data Community. This has given usa unique opportunity to advertise roles totheir members and be represented at the
Women in Data Flagship event.
As of October 2023, our Data Community
figures are at 28% female, with theindustry benchmark from WiD being
25%. This is a great result for us – but we
recognise that there’s still more to do.
We are delighted that in 2023, theAcademy was a finalist across threeindustry recognised awards2 in the UK forBest Data Academy, and our UK businesshas been represented at 16 external
events including podcasts, panels andconference talks.

Admiral Group plc Annual Report and Accounts 2023

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Strategic Report

Our Strategy
continued

Strengthen customer propositions• We kicked-off our digital experience
platform project this year, which will
enable digital self-service across further
products, improving our customers’
experience online. We recognise theimportance of offering customers achoice in how they deal with us, either
online or over the phone

2. DIVERSIFICATION
Overview

Diversification is essential to our strategy
to keep building a sustainable and resilientbusiness. Our approach is to leverage
the capabilities and knowledge from ourestablished businesses to build future
successful propositions and to transition
to a low carbon economy. We makefocused and gradual investments in
new opportunities that strengthen andcomplement our existing customer
offerings and leverage our core strengths.
In just over a decade, we have launchednumerous products including Household,Travel and Pet insurance and a personal
lending business. Our diversified businessmodel means that customers can engage
with us across a number of products,
and we can support a growing variety of
their needs.

Core competencies• Scale up promising products• Strengthen customer propositions• Leverage core strengths

Progress in 2023
Scale up promising products• This year we saw growth in turnover for
all key diversification areas with 33% in
UK Household, 56% in Admiral Moneyand 17% in European Motor. 49% Of
customers are now from non-UK Motorbusinesses (2022: 46%)
• UK Travel insurance expanded customer
numbers by 41%, a positive turn after
the challenges faced post-pandemic.
UK Travel also expanded its footprint,
pricing for a wider range of customers,
enabling more access to our products• ConTe in Italy remained profitable
and reached the milestone of selling
one million policies during the year
(2022: 0.97 million policies), showing agood growth trajectory for the business• L’olivier in France returned to
profitability, driven by rateincreases and improvement in
expenses, strengthening our Group
diversification objective.

Admiral Group plc Annual Report and Accounts 2023

• UK Household launched the homeemergency digital notice of loss
form, facilitating the registrationof emergency claims online, should
customers wish to• UK Household also released a Storm
Hub website in 2023, which sends
timely weather warnings to customers
ensuring they are aware of any extreme
weather events that may affect them
• We have launched new functionality
for new and existing customers to add
a van onto MultiCover through digitalchannels, whilst also optimising andimproving our existing customers’
journey.

Leverage core strengths• We are leveraging our strengths andknowledge from our core business into
new products and businesses• Our UK Pet product turned one in
2023 and went live with renewals in
July 2023. It was great to see a numberof furry friends joining us again for asecond year
• After reporting its first profit in 2022,
Admiral Money has continued todeliver sustainable profits, up nearly
five-fold to £10.2m, despite a difficult
economic environment.

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Read more on page 98

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Celebrating

PET TURNING ONE!
We successfully entered a newmarket in 2022 with the launchof our UK Pet insurance product.
In July 2023 we went live withrenewals and enjoyed seeing manycustomers keeping their coverwith Admiral. Fun fact: our mostpopular pet name is Luna!

Strategic Report• Our Italian and Spanish operations havefocused on expanding distribution
channels by scaling their broker
networks and building their teams,
in line with our strategy to reach morecustomers through different channels
in these markets

Throughout 2023, we achieved strong
growth in sales and market share.
The acquisition due in 2024 of the “MoreThan” Pet and Household renewal rightsfrom RSA will help accelerate the growth
we have seen this year in our Pet productand we are looking forward to welcoming
more pets on board in 2024.

The Pet insurance team are continuallylooking for new ways to enhance theproduct. In partnership with Burns Pet
Nutrition, we launched new puppy
parenting classes, with help from
Lioness Bethany England and the TikTokinfluencer Ben the Vet, to support newpet parents. These 15-30 minute sessions
were streamed live and customers could
ask our special guests any question frompet health and training, to finding theright breeder.

Reaching

MORE CUSTOMERS AS CONTESELLS OVER ONE MILLIONPOLICIES DURING THE YEAR
ConTe in Italy is our largest
operation outside the UK andprovides customers with Motorand Pet insurance. In 2023 ConTe
sold over one million Motor
policies and continued to increasecustomer numbers (7%) profitably.
This success demonstrates ourability to take what we do well in
our UK Motor business and leverage
our core strengths into othermarkets and products.

ConTe is also advancing channel
diversification, by exploring alternativeacquisition methods. This year they havebeen dedicating time to expanding theirbroker networks and connections.

Our learnings from ConTe are being
applied across our businesses and drive
our diversification achievements forward.

In line with their customer-centric
approach, ConTe made several digital
improvements in 2023, such as
introducing a digital assistant to theirwebsite. This tool helps to identify what
the customer needs and quickly provides
a solution, for example a correct phone
number, an informative video or a linkto their online portal.
Admiral Group plc Annual Report and Accounts 2023

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Strategic Report

Our Strategy
continued

Evolve our proposition• During the year, we saw a double-digit
increase in electric vehicle customers.
We have a bespoke electric vehicle
customer journey to ensure ourpolicyholders are well informed of thebenefits and cover we provide

3. EVOLUTION
OF MOTOR
Overview

Our Evolution of Motor strategic pillar isbuilt on evolving our proposition for thechanges that are happening in mobility
worldwide. Different views exist on future
mobility trends and where the greatest
future impact will be, but all agree thatthe way people move is changing. It isan exciting time for the industry, andwe want to make sure that we fully
understand the changes and what they
will mean for our customers and forour business.
To stay close to these trends, we areharnessing our test-and-learn philosophy,
looking at emerging propositions, anddeveloping core competencies that will be
relevant for the future.

Core competencies• Understand changes in mobility• Evolve our proposition• Develop competencies for the future

Progress in 2023
Understand changes in mobility• Our dedicated mobility team continues
to investigate how changes in mobility
will impact our customers and ways wecan adapt our products to changing
customer needs• We continue to explore new methodsof mobility and what that means forthe insurance industry through thework of our dedicated Autonomous
Vehicle team• We have entered into a collaborationagreement with ZF, We Know, BP Pulse
and Ferrovial to explore the feasibilityof autonomous transportation between
Heathrow Airport and nearby hotels.
We aim to understand the insurance
requirements and processes, and thefundamentals of what a successful
autonomous transportation businesswould look like.

Admiral Group plc Annual Report and Accounts 2023

• We have continued to strengthen
our electric vehicle proposition bylaunching wall box cover for ourcustomers. This means that theirhome vehicle charger will be covered if
damaged during an accident or fire, orfrom theft• Veygo, our short-term car insurance
provider, launched a new subscription
service offering customers rollingmonthly insurance cover. Customers pay
monthly and can cancel at any timewith no fees, allowing customers toeasily buy insurance when they need itat the right price.

Develop competencies forthe future• In partnership with Ford Credit welaunched Ford Insure Live, a connected
car insurance product for Ford private
car customers. This will allow us tofurther explore connected car data andwhat it means for the future of mobility• Through Admiral Pioneer, we are testing
new propositions around changing
consumer preferences. This includes therise in popularity of subscription models
and the growth of embedded insurance
at the point of sale.

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Read more on page 98

L

OUR PARTNERSHIPWITH WAYVE
Wayve are one of the leading
autonomous vehicle software
companies in the UK. We firstpartnered with Wayve at the
beginning of their journey inApril 2018, insuring their very
first test vehicle. The partnershiphas expanded over time to now
insure their fleet of autonomous
test vehicles in central London.

Recently Wayve partnered with grocery
brands ASDA and Ocado to explore thefuture of last mile delivery and self-driving
technology and Admiral supported themby sharing our experience. We are proudof this collaboration and excited about
the future of autonomous technology.

This allows us to remain close to
the forefront of autonomous vehicle
development, gaining real world
experience by working with newand emerging technologies, andunderstanding what it takes to prepare
for the future of autonomous mobility.

“Our partnershipwith Admiral has proveninstrumental to ourdevelopment to date.
With their support,
we are able to conduct
real-world testing ofautonomous vehicles
on UK public roads andoperate the UK’s largest
autonomous grocery
delivery trial with ASDA.”
Alex Kendall
Co-Founder & CEO, Wayve

Launching

FORD INSURE LIVE
Understanding our customers’is essential to delivering products
and services that really meet theirneeds and provide added value.
We partnered with Ford Credit in2019, and together in 2023 welaunched Admiral Live and Ford
Insure Live, both for Ford private
car drivers.

Data is sent directly from the vehicle’s
modem, which replaces the need foran engineer to install a telematics
box, making the experience smootherfor customers.

The products utilise Ford’s connected car
technology, which shares live data andhas tracking capabilities to help provide amore personalised and accurately priced
product based on how customers drive.
Data is only shared with us if the customer
permits it, and ranges from the speed of
the vehicle to the status of seatbelts andnumber of passengers.

The introduction of Admiral Live and Ford
Insure Live will enable us to learn more
about connected car technology and how
it can benefit customers now and in the
future. Their introduction encapsulates
how we collaborate with the motor
industry and embrace technologicalchanges to provide ever-improving,customer-focused products and services.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report• Out of charge recovery was rolled out
to all our UK EV customers at the startof 2023 after a successful test in 2022.
This means customers in the UK and
the Channel Islands who completely
run out of charge will be recovered
alongside their vehicle and taken toeither the nearest charging point, theirhome address, or any other destination

Strengthening

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Strategic Report

Q&A with Milena, Geraint, Cristina and Costantino

Q: How does Admiral stay ahead of
the game and look to the future?

Q: How is Admiral helping
communities and meeting its
sustainability objectives?

I believe our strategic pillars –diversification, Admiral 2.0, and evolutionof motor – provide a good foundation
to serve our customers, strengthenedby our unique Company culture. As we
progress in all three, we aim to maintainour competitive edge in the long termand ensure sustainable value creationfor our stakeholders.
Embracing technology through Admiral
2.0, such as the roll out of Guidewire
10 and transitioning to the Cloud,has improved efficiencies and ourtech foundations. We use large data
sources and data analytics to refine
our risk selection and decision making,and our extensive claims experienceand underwriting capabilities leave
us well placed to effectively manage
claims. In addition, we have a strong
culture of managing costs well. All ofthese have resulted in a market leading
combined ratio. Diversifying into nonMotor insurance markets is essential
to building a sustainable and resilientbusiness. It creates more options for ourcustomers and leverages our brand andexperience. 49% of our customers are
now non-UK Motor customers, including
one of our more recent propositions, UK
Pet business, that just turned one.

“It’s been an amazing
30 years and whilst somuch has changed,
I’m proud that so much
has also stayed the same.
Our core values of
putting our customers
and people first andenjoying what we do areas true today as they
were in 1993.”

Evolving with emerging mobility trends,
for example electric vehicle insurance,
makes it easier for customers to find theright insurance for their needs and makegreener choices. Our EV growth was again
double digits in 2023.
We continue to challenge ourselvesto improve and strengthen our
fundamentals, and I believe Admiral’s
proven track record of growth, agility
and discipline positions us well for 2024
and the future!
3 Proposed baseline year for emissions cuts is 2021,
still to be verified by SBTi.

Admiral Group plc Annual Report and Accounts 2023

Milena Mondini de Focatiis
Group Chief Executive Officer

Considering long-term sustainability has
been part of Admiral’s DNA long before we
had a sustainability team. We have people
that have been here since we started 30
years ago, we’ve established long-term
partners and strong relationships, andour employees are engaged in their work
and invested in the performance of thebusiness, as they’re shareholders throughour share scheme.
Admiral donates to worthy causes acrossour businesses using many avenues.
A large part of our community investment
is focused on skills development andemployability, reducing inequalities
so that people can lead more secure
lives. Through our Global Emergency
Fund we have helped communities
through devastating events such as thewildfires in Canada, flooding in Italy, andearthquakes in Turkey and Syria. We also
fund many environmental causes andthrough our Match Fund employees cannominate charities they’d like to support.
I am proud that our people have given
over 14,000 hours of their time to suchgreat causes. Volunteering for charities,
mentoring, and planting trees are justa few ways our employees got involved
and made a difference in 2023.
From a customer perspective, ouraffordability team has supported ourcustomers with their payments andconcerns during the cost of living crisis
and we have helped them enjoy improved
customer journeys. During storm events
we maintained an average weekly callanswer rate of 97%, demonstrating
our commitment to our customers
when they need us.

Q. Are you confident with thesolvency position and do you haveany updates on the internal model?

I am confident that our capital position
remains strong and well above risk
appetite level. We had a successful debt
issue during the year and our improved
solvency rate of 200% is still supportiveof a stable dividend payout and theability to make future investments.
We’ve demonstrated over the past 15
years that we’ve been able to growfive insurance businesses from scratch,a lending business, and multiple pricecomparison businesses whilst maintaining
a 90% average pay-out ratio.
In addition, we have been progressing
on the internal model process and expect
to enter a pre-application process with
our regulators soon. We will provide
a further update when we have more
information to share.

Geraint JonesGroup Chief Financial Officer

Q: What are your thoughts on
the 2023 results and what should
we expect going forward?

I am pleased with how we have comethrough two challenging years, having
managed a lot of change and navigating
a complex cycle. Our teams also worked
very hard as we transitioned to the new
accounting standard, IFRS 17, to provide
clear information.
It was a solid set of results with a healthy
Profit Before Tax of £443 million driven
by improvements in almost all businesses.
We are gaining customers in the UK, Spain,
Italy and France with Group customer
growth of 6%. Admiral Money has grownprofit nearly five-fold to £10.2 million;
whilst having maintained our cautious
approach to growth and prudently held
provisions within the uncertain economic
context, which we believe continues tobuild a good foundation for the future.
We said 2022 was probably the worst
point of the cycle, and we are now starting
to see the benefits of our pricing actions.
In particular, this is reflected for UK Motor
Insurance where we slowed growth in
the first half but managed to grow in thesecond half of 2023, and are well placed
moving into 2024.

Cristina Nestares
CEO, UK Insurance

Q: What has been the biggest
challenge for UK Insurance this year?

It’s once again been a year of balancing
pricing increases with the continued
high claims inflation and macroeconomic
uncertainties. Our aim has been tonavigate this cycle well, focussing on
profit over growth and maintaining
pricing discipline. We are now seeing thebenefits of raising prices ahead of themarket, with a return to customer growthin the second half of the year. Inflation washigh but stable with high repair costs
and used car prices impacting claims, aswell as supply chain pressures and labour
shortages. Uncertainty on small bodily
injury claims together with the potential
impact of wage inflation on largebodily injury claims have added to thechallenges, but we adapted the businesswhere needed, with prudent reserving
and with some changes in our supply
network having a positive impact.

Our customer base has remained stable
despite the year’s challenges showingthat we can offer our customers goodquality products and services and givethem more options through MultiCoverwhich saw even more customers takeup these great products.
We were well placed for the
implementation of Consumer Duty
regulation, which aligns with ourcommitment to deliver good value andgood outcomes for our customers.
I am also proud to say we were voted the#1 Best Big Companies to Work For in the
UK and also #1 in Great Place To Work®
Best Workplaces in Financial Services andInsurance. This along with our 4.4 ‘Excellent’Trustpilot score means we must be doing
something right for our people and ourcustomers – which will remain key going
into 2024!

Q: How is Home Insurance
performing?

The Home Insurance book continues toshow promise, with customer growthof 12% and a profit of £7.9 million.
Weather events were less severe in 2023,
but some of the severe weather in 2022,
particularly the December freeze event,continued to impact the 2023 result.
Weather impacts will naturally comethrough every few years, but the reported
loss ratio – excluding prior period releases
and the impact of severe weather - wasonly marginally higher due to inflation as
we continued to improve risk selection
and claims capabilities. In response to
the threat of more regular and severe
weather, we regularly review our approachfrom a pricing and risk selection andclaims perspective and continue invest
in associated areas.
We have been part of Flood Re since2016. Flood Re is an agreement between
insurers and the UK government whichallows insurers to offer more affordable
insurance for UK homes in areas most at
risk of flooding that were built before 2009.
This allows us to help more customers get
the products they need at a fairer price.
Cost efficiencies were observed due
to our increased scale and higher inflation
was countered by raising prices aheadof the market. The acquisition due in 2024
of RSA’s direct home and pet operations
will strengthen our offering and scalein these businesses and I am excited
to welcome our new colleagues from
the More Than business.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Navigating
CHALLENGING
MARKET CONDITIONS

From an environmental perspective,
we have targets to reach Net zero by
2040, and to cut emissions in half by20303. Our UK scope 2 emissions havealready reduced to zero. We are well on
our way to setting Science Based Targets
for our emissions which we aim to sharein the future alongside our Net Zerotransition plan. Our focus is to do theright thing, and this has been reflected in
an MSCI index rating of AA, as well as an
improved CDP rating to B.

30

31

Strategic Report

Q&A with Milena, Geraint, Cristina and Costantino
continued

Key Performance Indicators
In order to implement, develop and measure the Group’s
strategic performance, we monitor several financial andnon-financial key performance indicators (KPIs).

Group profit

Costantino Moretti
CEO, International Insurance

Q: Are you pleased with theprogress in EU Insurance after
a challenging 2022?

I’m very proud of our hard work this year
and of the Admiral culture that is soembedded in our businesses, reflectedin having been voted in the top 10 inGreat Place To Work®4 across all our
European entities.
We continued to prioritise margin overgrowth and to strengthen businessfundamentals in tough market
environments, and delivered much
improved results overall with a £6 million
profit before tax in European Motorfrom strong rating action and improved
efficiency. As Admiral celebrates a big
birthday, I’ll take a moment to reflect
back on our journey so far.
Our first international operation,
Admiral Seguros, was launched in2006. The Spanish insurance market ischallenging, with intense competition.
Within this context, we focused onbuilding strong fundamentals andadapting our strategy to market
dynamics. We now have over 440,000
customers, a growing direct channel,
and are setting the basis for future growthby investing and expanding our broker
and partnership channels, for example
with our ING partnership.

GrowthGroup profit before tax

Group customer numbers£443m +6%

International customers(2022: £361m)(2022: +10%)5

Diversification

Shareholder returns

Capital position

+12%

103p

Solvency ratio

200%

Customer service

Digital progress>50%

UK Household customers

Dividend per share(2022: +19%)5

ConTe, which was launched in Italy in 2008,is our largest business outside the UKwith more than one million customers.
We delivered another year of profit anda 19% year on year increase in turnover.
We continue to explore new distribution
channels while remaining focused on
our direct channels, efficiency andadvanced analytics, and market-leading
customer service.
In France, we launched L’olivier in 2011,
steadily building scale in the direct market
and now insuring over 470,000 customers.
Our sustained focus on margin protection,
cost controls and efficiency has madeus very competitive and we are now
accelerating our product diversification
with our Household proposition to unlock
cross-selling opportunities.
We have built good businesses in Europe,customer-centric and well set-up forsustainable growth and creating longterm value for the Group, and we intend
to continue to deliver on our strategy.

International growth(2022: 112p)+4%(2022: +15%)5(2022: 180%)

Q: What is the outlook
for the US business?

We launched Elephant in 2009 andthe last couple of years have seen
an exceptionally challenging market
environment with strong competitionand very high levels of claims inflation.
We have taken strong action by increasing
prices to combat claims inflation, cost
reductions, and improved risk selection.
The reduced loss reported in 2023 isencouraging, and we expect to see further
benefits from our recovery plan earned
through in 2024.
In addition, we have built a solid techplatform that allows us to service ourcustomers better and faster and wecontinued to maintain our commitment
to Admiral 2.0 with upgrades to our main
policy and billing IT platform, Guidewire,
during the year which contributed to
improving efficiencies.
Looking ahead, we have made good
progress in exploring options for Elephant
to reach its full potential in a huge market.
These assessments take time and arereceiving our full attention.

Non-Financial Measures
Customer satisfaction

Customers likely to renew after a claim>80%

Net Promoter Score>45

Customer engagement

Great Place To Work®

Positive impact on society

Net zero by 2040

6th

+14,000 +26%

6(2022: >80%)

7

GPTW rankings

8(2022: >50)

Number of hours donatedby employees(2022: +3,300)>50% MTAs9 done online

Carbon emissions reductions(-33%)10 excluding one-off leak event(2022: -22%)11

5
6
7
8

2022 Customer numbers restated– refer to the end of the report for definition and explanation.
UK Motor Customers, monthly score averaged over the year.
Restated figure, methodology changed in 2023.
Relational NPS, methodology updated in 2022. We’ve seen a decrease in the NPS mainly due to increased prices,which are a reflection of current market conditions.
9 Mid Term Adjustments (UK operations) – adjustments made to a policy mid-term, by the customer.
10 Scope 1 and 2 (market based) emissions per SECR on page 71. Per SECR the 2022 comparative data is restatedto reflect final 12 month verified data.
11 Restated figure. Scope 1 and 2 (market based) emissions per SECR on page 71.

4 Great Place To Work® Best Workplaces in Italy 10th,
France 6th, Spain 2nd.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Financial Measures

32

33

Strategic Report

Group Chief Financial Officer’s review

Outside the UK our businesses
substantially improved their combined
result compared to 2022, with theEuropean businesses returning to overallprofit (despite continuing to invest
in new products beyond motor anddiversified distribution within Motor).
In the US, whilst the reported loss was still
not small, underlying results showed sharp
improvement year-on-year thanks to thestrong actions of our team there.
And a few observations on the other lines:• Admiral Money’s £10 million profit
was a clear highlight; the team took acautious approach to volume throughthe year and paused growth in thesecond half of the year to focus onhigh quality risk selection. We’re very
comfortable with arrears trends and our
cautious credit loss provision and thebusiness is well set to restart growthin 2024

The past few years havesurely been some of the mostchallenging in the Group’s
30-year history – exiting the
pandemic into two heavily
inflationary years leading
to tough conditions for theindustry (and of course forour customers). And that’s
not to mention several major
UK regulatory changes in
the past couple of years –well navigated by our teams.
Our clear goal for 2023 was to significantly
improve underlying insurance results
and it’s very positive to see clear
evidence of that emerging through theyear. I’ve been very satisfied with thedisciplined approach taken across theGroup, even if that resulted in a shrinking
customer base for a period in the UK
motor business.
Admiral Group plc Annual Report and Accounts 2023

“In 2023, the Groupdelivered a solid setof results. 2023 wasclearly a year where thestrong actions taken
since early 2022 started
to bear fruit.”
Geraint JonesGroup Chief Financial Officer

The 2023 numbers are the first full year
results reported under the major new
insurance accounting standard, IFRS
17. I want to repeat my huge thanks to
the team involved in getting the Groupready to produce these results, which was
definitely no small achievement A reallygreat team effort!
As usual I’ll begin with a quick reviewof the group profit versus last year*
in the table on the next page.
Considering the impact of the lower
profitability of the 2021/22 years is still
an important factor in the 2023 result,the near £600 million profit for the main
business was very positive. Only three
years have seen higher UK profit andtwo of those were very impacted by
reduced frequency during the pandemic.
Critically the impact of significant priceincreases over 2022 and 2023 has led tomuch improved underwriting year results
which will feed into the results over the
next few years. The business is well placed
moving into 2024 too.

• In Admiral Pioneer, the tremendous
growth and continued steps forward in
products in Veygo stood out, though
one particularly large claim impacted
the bottom line. Pioneer continues toinvest in testing its small commercial
insurance business line
• The cost of the Group’s share schemes
was basically in line with the previous
year, but other overheads and charges
increased fairly notably. There are
a number of factors explaining theincrease, many of which shouldn’t berepeated in 2024 (e.g. M&A project fees,£m

UK Insurance
Europe Insurance (motor & other lines)
US Insurance
Admiral Money
Admiral Pioneer
Share scheme cost
Other costs
Pre-tax profit

Dilutionadverse currency movement, costs
to settle a historic Italian tax matter).
Fuller details on page 52. I definitely
expect a much lower number in 2024
(barring anything unexpected).

More Than acquisition

As mentioned through the report,
Admiral’s first significant acquisition
will complete during H1 2024. We willfund the upfront payment of £82.5 million
from free cash.
As the acquisition is entirely of intangible
assets with no new capital raised to fundit, the transaction will result in a reduction
to the Group’s solvency ratio of around
10 points. Given the Group’s very strong
capital position, this is comfortably
absorbed. More details on the accounting
will feature in 2024’s accounts.

Internal model

The Group has been developing aninternal model to calculate its solvency
capital requirement (SCR) in a waythat reflects Admiral’s risk profile moreaccurately than the standard formula andallows management to better incorporate
capital considerations into businessdecisions. The model will calculate the
SCR for the Group’s main UK lines ofbusiness and for most of market risk.
Progress to application and approvalby the Group’s two main prudential
regulators has been slower than we’dhave liked, though huge effort from ourteam has gone, and continues to go
into the project. We expect to enter the
regulatory pre-application process soon
and will then hopefully have a clear path
to application and approval thereafter.
It’s too early to give concrete informationon the exact timing of the application or
likely financial outcome of the process
and more information will follow at theappropriate time.

Starting in 2024 we will make a change
to the way we provide shares to theGroup’s employee share schemes.
Historically we’ve issued new shares tothe trusts each year, mindful of a 10%
rolling ten-year cap. We will no longer
dilute shareholders to fund the shareschemes, initially (probably for 2024
and 2025) making use of shares alreadywithin the trusts and thereafter buying
shares in the market, funded through areduction in special dividend. This change
will increase earnings per share by around
1% per year from now on compared toour previous approach.

Wrap-up

Whilst the current year reported profit
won’t break many records, 2023 wasclearly a year when the strong actions
taken since early 2022 started to bear
fruit. We enter 2024 with much improved
margins across our insurance businesses
and a strong position in Admiral Money.
I look forward to seeing the improvements
start to feed through into the reported
results in 2024.

Geraint Jones
Chief Financial Officer
6 March 2024
A note on the 2022 IFRS 17 comparatives:
As explained more fully on page 37, therestated 2022 IFRS 17 insurance profits
are lower than the originally reported
IFRS4 numbers. This is due to differencesin the movements in reserve strength or
risk adjustment position over 2022 undereach standard.

IFRS 172023

IFRS 172022

Change v
2022

IFRS 4
2022

597
2
(20)
10
(16)
(54)
(76)
443

510
(20)
(36)
2
(14)
(52)
(29)
361

+87
+22
+16
+8
(2)
(2)
(47)
+82

616
(5)
(49)
2
(16)
(52)
(27)
469

* See important footnote below on the basis of preparation of the 2022 IFRS 17 numbers. The original IFRS 4 numbers are also shown.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Rising
TO EXTERNAL
CHALLENGES TO DELIVERSOLID RESULTS IN 2023

The UK Household business continued
to grow and delivered a profit of around£8 million, benefitting from reinsurer
profit commission related to older years.
Price increases led to higher averagepremiums which should improve margins
as we head into 2024.

34

35

Strategic Report

2023 Group overview
2023 Group overview£mAnalysis of profit:
UK Insurance
International Insurance
International Insurance – European Motor
International Insurance – US Motor
International Insurance – Other
Admiral Money
Other
Group profit before tax*1
Key metrics
Reported Group loss ratio*1*2 *3Reported Group expense ratio*1*2 *3Reported Group combined ratio*1*2 *3
Insurance service margin*2 *3
Customer numbers (million)*2*4
Earnings per share*1
Dividend per share
Special dividend from sale of Penguin Portals
Return on equity*1*2
Solvency ratio*22022(restated) *1% change vs.
2022*1,5

4.81
363.1
68.1
31.7
462.9
442.8

3.68
207.5
46.1
119.6
373.2
361.2

+31%
+75%
+48%
-73%
+24%
+23%

596.5
(18.0)
6.1(19.6)(4.5)
10.2(145.9)
442.8

509.7
(56.2)(16.5)(36.4)(3.3)
2.1(94.4)
361.2

+17%
Nm
Nm
Nm
Nm
+386%
-55%
+23%

63.9%
24.8%
88.7%
10.2%
9.73m

70.6%
26.2%
96.8%
7.4%
9.20m

-7pts
-1pts
-8pts
+3pts
+6%

111.2p103.0p
–
36.0%
200%

95.4p
112.0p
45.0p
29.4%
180%

17%
-8%
Nm
+7pts
+20pts*1. Operating profit, profit before tax (including analysis by segment), earnings per share, return on equity, and reported group loss, expense ratio and combined ratios restated following theimplementation of IFRS 17. See later in the report for further details.
*2. Alternative Performance Measures – refer to the end of the report for definition and explanation.
*3. Reported Group loss and expense ratios are calculated on a basis inclusive of all insurance revenue – this includes insurance premium revenue net of excess of loss reinsurance, plus revenue fromunderwritten ancillaries, an allocation of instalment and administration fees/related commissions. See glossary for an explanation of the ratios and Appendix 1a for a reconciliation of reported loss
and expense ratios, and insurance service margin, to the financial statements.
*4. 2022 Customer numbers restated – refer to the end of the report for definition and explanation.
*5. For % change vs 2022, + shows favourable movements, – shows unfavourable movements.
Nm – not meaningful.

Admiral Group plc Annual Report and Accounts 2023

Celebrating

COLLEAGUESTHAT HAVEBEEN HERE
SINCE THE START
As our co-founder Henry Engelhardt
said “people who like what
they do, do it better”, and thishas underpinned our culture
across the Group for the last 30
years. Since starting out in our
Cardiff office in 1993 with just51 colleagues, to growing to over
13,000 across the world today,
we have always put our people atthe heart of what we do. We are
incredibly proud that some of those
51 colleagues have stayed with us
for the last 30 years and helped
make us the Company we are today.
We asked them what they remember
about their first day at Admiral and what
has kept them here…

What do you remember about yourfirst day at Admiral?
Tim: This should be fun!

Bethan: How small the department was!
I’d followed my friend Teri to Admiral fromour previous jobs (she started September
1992 and is also still here) so I wasn’t
nervous, and it took about 10 minutes
to meet everyone. IT were based on floor
11 of the building along with ex-CEO
and founder Henry, the server room, postroom and Marketing – a tight squeeze!

BethanTeri

Teri: I was convinced I’d made a horrible
mistake. When I accepted the job, we werecalled DIAL and that’s what my contract
said. On my first day I came into the office
to find we’d changed our name, we had
desks and PCs but no chairs so I had to sit
on a pile of boxes of listing paper. Bear inmind that this was only three months
before we were due to launch. I spent
the first couple of weeks at offices in
Reading amending I/90 to fit our modelof direct insurance.

What kinds of roles have you had
during your time at Admiral?

What has been your best Admiralmemory from the past 30 years?

Teri: Every day is different and every
day is a challenge. What makes Admiral
special; even seeing the business growfrom 30-odd people to over 13,000,
it’s never lost its small local Company
feeling. I doubt you’d see senior managers
in the lift dressed in pyjamas in every
major Company.

Tim: Probably the day we floatedafter many years of waiting to see if itwould happen.

Teri: There have been a few days thatstand out; my first day, the day we opened
for business, the day we floated!
Bethan: I know most people say it waswhen we floated on the Stock Exchange,
but I was on maternity leave then andmissed all the excitement in work! Other
highlights for me have been the Stayat Home Refund during the pandemic.
A few of us worked on that, and after it
was tested and live - which was done reallyquickly - we monitored and ran the job
every day for a month to get them all out
by when we’d promised. Twitter wasgood for instant feedback, I loved seeing
people post about what they were doingwith their £25. My favourite was a girl
who bought new slippers and spent therest on cider!

Bethan: I’ve been in IT Development
since I joined - I started as an Analyst/
Programmer, then Senior Analyst/
Programmer, Team Manager.

Tim: I started in the Post Room, thenmoved to IT. Then within IT I’ve moved
from Operations in Cardiff to Swansea
and back again to Cardiff again!

What makes Admiral special to you?

Bethan: The answer to this has changed
as the Company has grown and changed.
In the early days, it was that we felt likea family and everyone knew everyone.
When we got too big for that, it was theway Admiral looks after us and the rewards
that come as a by-product of that.
Along the way it’s been the interesting
work, and more recently it’s been how
we give back to the community and theworld. There’ll always be something to
be proud of.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Group turnover (£bn)
Net insurance and investment result
Net interest income from financial services
Other income and expenses
Operating profit*1
Group profit before tax*1
*2

2023

Tim

36

37

Strategic Report

2023 Group overview
continued

The Group’s dividend policy is to pay 65%
of post-tax profits as a normal dividend
and to pay a further special dividend
comprising earnings not required to beheld in the Group for solvency or buffers.
The Board has proposed a final dividendof 52.0 pence per share (approximately£156 million) split as follows:• 35.4 pence per share normal dividend• A special dividend of 16.6 pence
per share

Group highlights

Admiral reports another solid set of resultsin 2023 against a backdrop of continued
elevated levels of claims inflation, andresulting significant rate increases.

• Group pre-tax profit was £443 million,
23% higher than 2022, restated on an
IFRS 17 basis:– UK Motor Insurance profit was£593 million, 13% higher than 2022(£525 million) as the significant
increases in average premium
over the last year started to earn
through, as well as higher investment
income due to the higher interest
rate environment

Highlights of the Group’s results for 2023
are as follows:• Businesses across the Group grewstrongly in 2023, with customer
numbers up 6% and turnover up
significantly more at 31% year-on-year:– UK Motor customers were broadly
flat at the end of 2023 having
fallen in the first half. Market priceincreases accelerated relative toAdmiral in the second half, leading
to improved competitiveness and a
return to growth– UK Household grew turnover by 33%
as a result of an increase in customersof 12% and continued increases inaverage premium. Including Travel
Insurance, (which reported its firstsmall profit), and Pet Insurance,
overall UK insurance customers grewby 6%

– UK Household reported a profit of£8 million (2022: loss of £11 million),with 2023 less impacted by severe
weather events, and benefitting fromthe positive impact of a commutationof quota share arrangements on priorunderwriting years.
• The International Insurance business
reported a notably lower loss of£18 million (2022: £56 million):– The EU Motor business returned
to a profit of £6 million for the year
(2022: loss of £16 million), as a resultof a lower current year combined
ratio arising from higher averagepremiums and small releases on priorunderwriting years– Outside the UK, International
Insurance customer numbers
increased by 4%, made up of a 7%
increase in Europe and a reductionin the US. Increases in averagepremiums to reflect the level ofclaims inflation led to a growth inturnover of 12%– Admiral Money has employed acontrolled approach to growth, witha total loans balance at the year endof £0.96 billion, 8% growth since
December 2022 and slightly lower
than the HY 2023 position.

– The result in the US also improved
from a loss of £36 million in 2022
to a loss of £20 million in 2023,
following actions taken to improvethe underwriting result throughlarge price increases and a focus on
reducing costs.
• Admiral Money reported a higher profitof £10 million (2022: £2 million), theincrease in the average loans portfolio
year-on-year driving the positive result
through increased net interest income• Other Group costs increased to£146 million (2022: £94 million), theadverse movement driven by higher
central costs due to a number of oneoff items, as well as higher businessdevelopment costs and finance charges.

Earnings per share

Earnings per share for 2023 is 111.2 pence(2022: 95.4 pence, restated on an IFRS 17
basis). The increase from 2022 is aligned
to the increase in pre-tax profit above,offset partly by a higher effective tax rate,with the increase in the UK corporation
tax rate to 25% (from 19%) from 1 April
2023 being a significant driver of thehigher effective rate.

Return on equity

The Group’s return on equity was
36% in 2023, 7 points higher than therestated 29% for 2022. Average equity
for 2023 is lower than 2022 as a resultof the transition to IFRS 17 and higher
dividends were paid out compared to
profits recognised on an IFRS 17 basis.
2022 full year post-tax profits on an
IFRS 17 basis were £86 million lower
than those reported under the previous
standard, IFRS 4. Further information on
the restatement of 2022 financials follows
later in the report.

“We enter 2024 withimproved margins acrossour insurance businesses
and a strong position
in Admiral Money.”
Geraint JonesGroup Chief Financial Officer

The 2023 final dividend reflects a pay-out
ratio of 97% of second half earnings
per share. 52.0 pence per share is in linewith the final 2022 dividend (52.0 pence
per share).
The total 2023 dividend, including theinterim dividend of 51.0 pence per share,declared with the Group’s interim 2023
results is 103.0 pence per share, 8% lower
than the 112.0 pence per share paidin 2022.
The total 2022 dividend also included thefinal additional special dividend of 45.0
pence per share arising from the phased
return to shareholders of the proceedsfrom the sale of the Penguin Portals
comparison businesses which completed
in 2021. The total 2022 dividend was
157.0 pence per share.
The 2023 final dividend payment date is
7 June 2024, ex-dividend date 9 May 2024
and record date 10 May 2024.

Re-statement of priorperiod comparatives following
IFRS 17 adoption

Economic backdrop

Global inflation continued to impact
claims inflation across Admiral’s markets
in 2023, although with some positive signsof improvement in the second half ofthe year, particularly in the Group’s main
UK market.

IFRS 17, the new insurance contracts
accounting standard has been effectivefrom 1 January 2023. As a result, theopening balance sheet as at 1 January2022, the 2022 comparative Income
Statement and the balance sheet as at
31 December 2022 have been restatedunder IFRS 17, using a fully retrospective
approach (i.e. as though IFRS 17 hadalways been in place).
The new accounting policies and choices
adopted in the implementation of IFRS
17 are disclosed in the notes to thesefinancial statements. Both the policies
and transition impact are consistent withthe key accounting policy decisions andtransition impact set out on page 234 of
the 2022 Annual Report.
Throughout this report, the Group’s
results under IFRS 17 at 31 December
2023 are compared to the 31 December
2022 comparatives which have been
restated under IFRS 17.
IFRS 17 reported profits for 2022 arelower than the previously reported IFRS 4
profits. The difference primarily arises asa result of differences in the movements
in reserve strength or risk adjustment
position over 2022 under each standard.
Under IFRS 4, Admiral moved down to the95th percentile over the course of 2022,with a greater proportion of this movetaking place in the second half of theyear. Under IFRS 17, Admiral moved down
to the 95th percentile at the transition
date of 1 January 2022, and remained atthat percentile during 2022. This resultsin lower reserve releases under IFRS 17 in
2022, and therefore lower profit.
Note 1 to the financial statements
provides further information regarding
the key factors driving the differences
between the IFRS 4 and IFRS 17 reported
results in 2022.

The main drivers of this claims inflation
continue to be higher repair costs,
longer repair timescales and high levelsof wage inflation which impacts the
projected costs of bodily injury claims.
Used car prices continue to be one of
the largest contributors to damage
inflation, although they stabilised in 2023
with inflation easing in the latter part of
the year.
Admiral continues to focus on medium
term profitability, and has maintained adisciplined approach to business volumes,
increasing prices to reflect the elevatedclaims inflation. The Group customer
base has continued to grow, although thisdisciplined approach has resulted in slower
growth in some businesses. UK Motorcustomers were broadly flat year-on-yearat the end of 2023, having slowed in thefirst half as a result of price increases
ahead of the market since 2022, offset by
growth during the second half of the year
as Admiral increased prices at a slower rate
than the market. The Group continues to
set claims reserves cautiously.
Admiral Money grew its consumer loans
book year-on-year, though the portfolio
reduced in size in the second half due
to a prudent approach reflecting themacroeconomic environment andpotential financial impact on consumers.
The business continues to holdappropriately cautious provisions for
credit losses.

The Group’s results
are presented in thefollowing sections:• UK Insurance – including UK
Motor (Car and Van), Household,Travel and Pet• International Insurance –including L’olivier (France),
Admiral Seguros (Spain), ConTe(Italy), and Elephant (US)• Admiral Money• Other Group Items – including
Admiral Pioneer and othercentral costs

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Reporting
ANOTHER SOLIDSET OF RESULTS

Dividends

38

39

Strategic Report

UK Insurance review

Supporting

2023 will be defined as the key turning
point in the recent challenging
insurance cycle and I believe we’re well
positioned with a strong team andgood fundamentals to capture market
opportunities for profitable growth in
2024 and further earnings momentum.

OUR
CUSTOMERSDURING THE
COST OFLIVING CRISISUK Insurance financial performance£m2023 was a more encouraging
year after a difficult 2022 forthe industry. Inflationary pressuresbegan to stabilise and our earlyand strong pricing response
positions the business for a robust
improvement in results.
Product proposition and pricing
enhancements and the Group’scommitment to helping more people
to look after their future, led to thegrowth of the UK customer base by
6% while achieving a Trustpilot ratingof 4.4 (one of the best in the industry).
Further, to remain competitively
priced, we continued to focus on
improving operational efficiencies
and sustaining our leading positionin claims management.
The cost-of-living crisis has createda lot of pressure for our people and in
addition to the energy support payments
and package improvements in 2022,
we officially recognised that we were
paying our people the real living wage
by signing up to the Real Living Wage
Foundation in 2023.
Our award winning culture was again
recognised by being placed in the Top 10
Great Places to Work survey and number
three for Great Places to Work for women.
A feature of our culture throughout ourhistory is to support our communities
and in 2023 our teams provided over
14,000 impact hours and helped overa thousand people into work or helped
them to gain new skills with funding
and support for our community partners.

“A solid set of results,
demonstrating theresilience of the businessduring challenging
economic conditions,whilst continuing toinvest in the business,and support ourcustomers and people.”
Cristina Nestares
CEO, UK Insurance
We’re very pleased that our motor bookhas returned to growth in the last six
months of 2023, after 12 months ofcontraction following our disciplined
approach of strong price increases
to offset the impact of inflation.
Our relatively early pricing response
led to a fall in our competitiveness andmarket share in the second half of 2022
and first half of 2023. We recognise thatthe market moves in cycles and there
are times when it’s better to protect
margin at the expense of growth,with a view to capturing volume whenthe market opportunity arises.

Admiral Group plc Annual Report and Accounts 2023

Inflation remained elevated compared
to pre-pandemic years. Supply chainpressures across the global repair network
led to slower damage repair times during2022 and early 2023, resulting in servicepressures across the industry. In response,
Admiral leveraged our scale and strong
working relationships with our repair
network partners to counter theseeffects, leading to good improvements inrepair times and easing service challenges
faced by our teams. Overall, damage
inflation appears to have moderated
towards the end of the year from thelevels seen during 2022, but higher wage
inflation is likely to feed into bodily injury
claims over time, which we have provided
for in our reserves.
Beyond motor, our diversification
businesses continued to show growthand deliver against key objectives.
Our strong multi-product proposition
and retention performance supported
further growth in our Household insurance
business, despite unprecedented rateincreases during the year to offset
inflation pressures. Enhanced pricing
capabilities and improvements to theHousehold proposition has establisheda great platform to capitalise on
future opportunities. The refreshed
Pet proposition that was relaunchedin late 2022 appears to resonate withour customers and the book has grownstrongly (albeit from a low base).
The acquisition of the More Than Pet
and Household renewal rights from RoyalSun Alliance (RSA) will give a further
boost to these businesses, significantly
accelerating our growth ambitions for Pet.
Our Travel business has bounced backvery well post-pandemic with record sales
volumes and a growing renewal book,and reports a profit for the first time.

Turnover*1*2
Total premiums written*1*3
Insurance revenue
Underwriting result including net investment income*1
Co-insurer profit commission and net other revenue
UK Insurance profit before tax*1

2023

2022 (restated)

3,776.0
3,502.6
2,596.9
438.6
157.9
596.5

2,784.3
2,555.0
2,174.1
301.6
208.1
509.7

Split of UK Insurance profit before tax
£m

Motor
HouseholdTravel and Pet
UK Insurance profit before tax

2023

2022 (restated)

593.3
7.9
(4.7)
596.5

524.9
(10.7)
(4.5)
509.7

2023

2022 (restated)

4.94m
1.76m
0.69m
7.39m

4.94m
1.58m
0.44m
6.96m

Key performance indicators
Vehicles insured at period end
Households insured at period end
Travel and Pet policies at period end
Total UK Insurance customers*1. Alternative Performance Measures – refer to the end of this report for definition and explanation*2. Alternative Performance Measures – refer to note 13 for explanation and reconciliation to statutory Income
Statement measures*3. Total premiums restated for prior periods to include premiums for all underwritten ancillary products.
There is a corresponding reduction in Other net income, and no impact on turnoverHighlights for the UK Insurance business include:• In UK Motor Insurance:– Customer numbers grew in the second half of the year, to finish at 4.94 million,
in line with a year earlier. Admiral’s price increases to account for claims inflationin the second half of 2022 and early 2023 were more significant than the wider
market, but this gap closed over the latter part of 2023. Turnover increased by
35% to £3.4 billion from £2.5 billion– Profit growth of 13% to £593 million (v £525 million) as the rate increases
implemented over the past year are now earning through, and the higher
interest yield environment results in increased investment income.

Formed during the Covid pandemic,
our Affordability team, has helped
to further focus on how we lookafter vulnerable policyholders.
With high inflation and the highcost of living in the UK, the teamhas been working with our mostimpacted policyholders to gettheir insurance payments backon track. The team plays a pivotal
role in helping customers whoare struggling, as well as thosedealing with other concerns
such as terminal illness, loss of
employment, disability, andmental health.
In 2023, we trained over 3,000 colleagues
on vulnerable customer awarenessto better identify and support thesecustomers. We also introduced aphone line that UK customers can callfor support and discuss alternative
payment arrangements. The feedback
has been resoundingly positive, with one
customer saying:“The amount of stress I’ve been inlately in terms of finances has beenvery overwhelming. I lost my dad in
December, prior to that he had remainedin hospital. I’m now the only driver in
my household and I passed my test
because I needed to take responsibility
for my family. I’ve never been in financial
difficulty, and I’m just trying to get backon track. I can’t thank you enough for
helping me in my lowest time.”• In UK Household Insurance:– Customer numbers grew by 12% to 1.76 million (31 December
2022: 1.58 million). As in Motor, price increases have led to higher averagepremiums which contributed to a strong 33% increase in turnover– Profit was £7.9 million (2022: loss of £10.7 million) as a result of less severe
impact of weather in 2023 compared to 2022, along with the benefit of thecommutation of quota share arrangements on prior underwriting years.
Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Finding
WAYS TO MAKE
A DIFFERENCE

To sustain our competitiveness andoperational resilience, we’ve continued
to invest to refresh our technology
estate and transform our channel anddistribution capabilities. During theyear, a key pillar of the strategy was the
migration of over 6.5 million customer
risks to a new policy and billing centre
on Guidewire, which I’m proud to say
was successfully completed.

40

41

Strategic Report

UK Insurance review
continued

UK Motor Insurance financial review£m2022 (restated)

3,371.8
3,118.2
2,115.4134.8
2,250.2
2,188.6(451.2)(1,729.0)
392.8(16.8)

2,493.0
2,271.3
1,795.7
114.0
1,909.7
1,865.1(389.6)(1,596.0)
327.2
95.2

4.1
388.5
111.8
(58.2)
53.6
76.5
74.7
593.3

5.2
307.1
53.8
(36.4)
17.4
127.5
72.9
524.9

*1. Alternative Performance Measures – refer to the end of this report for definition and explanation*2. Alternative Performance Measures – refer to Appendix 1 for explanation and reconciliation to statutory Income
Statement measures*3. Insurance expenses and quota share reinsurance result excludes gross and reinsurers’ share of share scheme charges
respectively. For share scheme charges refer to Other Group Items*4. Total premiums restated for prior periods to reflect premiums for all underwritten ancillary products. There is a corresponding
reduction in Other net income, and no impact on Turnover*5. XoL. Refers to Excess of Loss (non-proportional) reinsurance; see glossary at end of report for further information

Key performance indicators
Reported Motor loss ratio*1*2
Reported Motor expense ratio*1*3
Reported Motor combined ratio*1*2
Reported Motor Insurance service margin*1*4
Core Motor loss ratio before releases*1*5
Core Motor claims releases*1*5
Core Motor loss ratio*1*5
Core Motor expense ratio*1*6
Core Motor combined ratio*1*7
Core Motor written expense ratio*7
Vehicles insured at period end*1
Other revenue per vehicle*82023

2022 (restated)

61.1%
20.6%
81.7%
17.7%
87.0%
(20.2%)
66.8%
21.4%
88.2%
17.8%
4.94m
£62

68.0%
20.9%
88.9%
16.5%
95.7%
(20.0%)
75.7%
21.6%
97.3%
20.8%
4.94m
£58

*1. Alternative Performance Measures – refer to the end of this report for definition and explanation.
*2. Reported Motor loss ratio defined as insurance claims incurred and claims releases divided by insurance revenue, net of excess
of loss reinsurance. Reconciliation in Appendix 1b.
*3. Reported Motor expense ratio defined as insurance expenses divided by insurance revenue, net of excess of loss reinsurance.
Reconciliation in Appendix 1b.
*4. Reported Motor insurance service margin defined as underwriting result divided by insurance revenue, net of excess ofloss reinsurance.
*5. Core Motor loss ratio defined as insurance claims incurred and claims releases divided by core product insurance premium
revenue, net of excess of loss reinsurance. Presented to enable analysis of core Motor result excluding other ancillary income.
Reconciliation in Appendix 1b.
*6. Core Motor expense ratio defined as insurance expenses divided by core product insurance premium revenue, net of excess ofloss reinsurance. Reconciliation in Appendix 1b.
*7. Core Motor written expense ratio defined as insurance expenses divided by core product written insurance premium, net ofexcess of loss reinsurance.
*8. Other revenue per vehicle includes other revenue included within insurance revenue. See “Other Revenue” section for
explanation and reconciliation.

Admiral Group plc Annual Report and Accounts 2023

By year end 2023, customer numbers
were flat when compared to the end of2022, with growth in the second halfof 2023 due to market price increases
resulting in Admiral becoming increasinglycompetitive, after lower customers
earlier in the year due to the strong priceincreases implemented by Admiral aheadof the market in late 2022 and early 2023
reflecting the inflationary environment.
Gross earned premium at£2,115.4 million is 18% higher than 2022
(2022: £1,795.7 million), reflecting thesignificant increase in average earned
premium as the price increases over thelast year start to earn through.
The UK Motor core expense ratio
decreased to 21.4% (2022: 21.6%),
with the written expense ratio decreasingby 3 points to 17.8% (2022: 20.8%), asa result of the higher premiums noted
above. Insurance expenses are higher
in 2023, driven by wage increases,
higher amortisation of intangible assets
from the new systems that are now
in use, and a short-term increased costof claims handling as new claims systems
were implemented.
The movement in onerous loss
component reflects the movement in
the provision for projected claims costs,
inclusive of risk adjustment, on unearned
premium. The onerous loss component at
the start and end of 2023 was small (lessthan £2 million), with movements over thecourse of both years leading to immaterial
impacts in the Income Statement.

Claims incurred

Claims inflation remains high andcontinues to be influenced by the averagecosts of repairing vehicles, in turn due tothe elevated cost of replacement partsand paint, as well as high labour costs
and shortages. Used car price inflation
has stabilised, showing signs of slowing
down in the second half of the year,
and repair times have also started toreduce resulting in stabilising costs for
replacement vehicles.
Average claims cost inflation for 2023 isapproximately 10%, with higher inflationin the first half of 2023, easing modestlyin the second half. Claims frequency was
also slightly higher in 2023 compared to2022 as a result of increased miles driven,
although remains below pre-Covid levels.
The longer-term impacts of inflation on
bodily injury claims remain uncertain.
Admiral has not observed materialchanges in inflation for bodily injury
claims settled in 2023 when compared to2022. However, an allowance in the best
estimate reserve to reflect the potential
impacts of higher than historic levels of
future wage inflation on certain elementsof large bodily injury claims reserves,is maintained.
There is still a relatively high level of
uncertainty within motor claims acrossthe market arising from inflation and thefuture developments relating to bothCore Motor loss ratio*1

FY 2022
Change in current period loss ratio
Change in claims reserve release
FY 2023

whiplash reforms and the Ogden discountrate. The review of the Ogden discountrate is due to start in mid-2024, with the
new rate, and any change to methodology,
unlikely to be known until late 2024 or
early 2025. Admiral’s assumption for the
Ogden discount rate within best estimate
reserves continues to be the prevailingrate of minus 0.25 per cent.
Admiral holds significant and prudent risk
adjustment above best estimate reserves,which has reduced (93rd percentile
confidence level) when compared to theend of 2022 (95th percentile confidence
level), the movement being in line withexpectations given the slightly lessvolatile inflationary environment and aperceived lower likelihood of an adverse
movement in the Ogden discountrate, together with the continued
diversification of the business. Whilst theunderlying methods to calibrate thereserve risk distribution from which thepercentile is selected are consistent year
on year, a number of developments in thereserve risk modelling in 2023 result in aslightly less volatile distribution than at
the end of 2022.
Further information is included in notes 2,
3 and 5 to the financial statements.
The core Motor loss ratio has reduced to66.8% (2022: 75.7%) as a result of a lower
current period loss ratio. Movements inthe current period loss ratio and prior year
reserve releases were as follows:
Core Motorloss ratio before
releases

Impact ofclaims reserve
releases

Core Motorloss ratio

95.7%(8.7%)–
87.0%(20.0%)–(0.2%)(20.2%)

75.7%(8.7%)(0.2%)
66.8%

The current period loss ratio improvedby 8.7 points which can be primarily
attributed to higher average premiumin the period following significant
price increases.
The benefit from prior period releases
was flat at 20.2% (2022: 20.0%), with theabsolute level of prior period releases
increasing by £65.6 million or 20% to£392.8 million, from £327.2 million.
The benefit includes both favourable
development of the best estimate reservefor prior period claims, and the movementin the risk adjustment as set out above.
Reserve releases as a percentage ofpremium are heavily impacted by the 18%
increase in earned premium in the year.

Quota share reinsurance

Under IFRS 17, Admiral’s quota sharereinsurance result reflects the net
movement on ceded premiums, reinsurer
margins and expected recoveries (claims
and expenses) for each underwriting
year on which quota share reinsurance
is in place (primarily 2021 underwriting
year onwards).
Admiral’s UK Motor quota sharecontracts operate on a funds withheld
basis, with Admiral retaining cededpremium (net of the reinsurer margin)
which then covers claims and expenses.
If an underwriting year is not profitable,
investment income is allocated to thewithheld fund and used to delay the point
at which cash recoveries are collectedfrom the reinsurer. Other features of thearrangements include expense ratio caps
and commutation options for Admiralthat become available 24-36 months after
the start of the underwriting year.

*1. Reported Motor loss ratio shown on a discounted basis, excluding unwind of finance expenses

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Turnover*1
Total premiums written*1*2*4
Gross earned premium*1
Gross other insurance revenue
Insurance revenue
Insurance revenue net of XoL*2*5
Insurance expenses*1*2*3
Insurance claims incurred net of XoL*2*5
Insurance claims releases net of XoL*2*5
Quota share reinsurance result*2*3
Movement in onerous loss component net ofreinsurance*2
Underwriting result*2
Investment income
Net insurance finance expenses
Net investment income
Co-insurer profit commission
Other net income
UK Motor Insurance profit before tax*1

2023

UK Motor profit increased by 13% to£593.3 million (2022: £524.9 million) as
a result of a lower current period loss
ratio as the significant rate increases
from late 2022 and early 2023 startto earn through, as well as higher net
investment income due to the higher
interest rate environment. This was partly
offset by lower quota share recoveries
due to both the more favourable
current period loss ratio and continued
loss ratio improvements on priorunderwriting years, and lower co-insurer
profit commission.

42

43

Strategic Report

UK Insurance review
continued

Quota share reinsurance result

Net investment income

The quota share reinsurance result by underwriting year is as follows:£m

The adverse quota share result in 2023 istherefore driven by:– Lower recoveries of £30.3 million on
the 2023 underwriting year (UWY2023) compared to £91.0 million
recoveries on the 2022 underwriting
year (UWY 2022) in 2022 due to thesignificantly improved loss ratio on
UWY 2023 compared to UWY 2022
– A significant reversal of recoveries
that had been previously recognisedon the 2021 underwriting
year, as a result of favourable
developments in loss ratio.

2022 (restated)

2.3(57.6)
8.2
30.3(16.8)

(2.9)
7.1
91.0
–
95.2

Co-insurer profit commission

Co-insurer profit commission is lower
in 2023 (£76.5 million) compared to2022 (£127.5 million). In 2022, a greater
proportion of the reserve releases wererelated to older underwriting years(2019 and prior) which have lower
combined ratios, with the releases
therefore attracting higher profit
commission. In addition, in 2023 no profit
commission has been recognised onunderwriting years 2021 and 2022
due to the current combined ratio
positions on those years.

Other revenue
UK Motor Insurance Other revenue:

Net investment income benefitted
significantly from the higher yieldenvironment during 2023, increasing to£53.6 million from £17.4 million in 2022.
Investment income before insurance
finance expense more than doubled
to £111.8 million (2022: £53.8 million)
primarily as a result of the yieldenvironment. Further information on
the Group’s investment portfolio andthe income generated in the period
is provided in the Investments and Cashsection later in the report.
Net insurance finance expense reflects
the unwind of the discounting benefit
recognised when claims are initially
incurred. The expense has increased
significantly in 2023 (£58.2 million;
2022 £36.4 million) as a result of thesignificant increase in risk-free interest
rates since the start of 2022, with asignificant proportion of the insurance
finance expense in 2023 relating to claims
incurred during 2022 and, to a slightly
lesser extent, 2023.

2023
£m

Premium and revenue from additional products & fees*1
Instalment income and administration fees*2
Other revenue
Claims costs and allocated expenses*3
Net other revenue
Other revenue per vehicle*4
Other revenue per vehicle net of internal costs

Within underwriting
resultOther net
income

107.8
134.8
242.6
(70.0)
172.6

89.4
29.3
118.7
(44.0)
74.7

Total

197.2
164.1
361.3
(114.0)
247.3
£62
£52

Premium and revenue from additional products & fees*1
Instalment income and administration fees*2
Other revenue
Claims costs and allocated expenses*3
Net other revenue
Other revenue per vehicle*4
Other revenue per vehicle net of internal costs

Within underwriting
resultOther net
income

113.3
114.0
227.3
(63.4)
163.9

90.5
21.9
112.4
(39.5)
72.9

Total

203.8
135.9
339.7
(102.9)
236.8
£58
£48

*1. Premium from underwritten ancillaries is recognised within the insurance service result (underwriting result). Other income from non-underwritten products and fees is included within other net
income, below the underwriting result but part of the insurance segment result.
*2. Instalment income and administration fees are recognised within insurance revenue (% aligned to Admiral’s share of premium, net of co-insurance) and other revenue (% aligned to co-insurance
share of premium).
*3. Claims costs relating to underwritten ancillary products, along with an allocation of related expenses, are recognised within the insurance result. Expenses allocated to the generation of revenue
from non-underwritten ancillaries are recognised within other net income.
*4. Other revenue per vehicle (before internal costs) divided by average active vehicles, rolling 12-month basis. Presented here based on all ancillary income.

Admiral Group plc Annual Report and Accounts 2023

• Revenue from other insurance products,
not underwritten by Admiral

Overall contribution increased to£247.3 million (2022: £236.8 million),primarily as a result of increased
instalment income following an increasein the proportion of customers paying
by instalment and the increase inaverage premiums.
Other revenue was equivalent to £62
per vehicle (gross of costs), with net otherrevenue per vehicle at £52 per vehicle,
both favourable compared to 2022 asa result of the above-mentioned increases
as well as a broadly flat customer base.

• Fees such as administration andcancellation fees
• Interest charged to customers paying
for cover in instalments.

UK Household Insurance financial review£mTurnover*1
Total premiums written*1*2
Insurance revenue
Insurance revenue net of XoL*1
Insurance expenses*1
Insurance claims incurred net of XoL*1
Insurance claims releases net of XoL*1
Underwriting result, net of XoL reinsurance*1
Quota share reinsurance result*1*3
Underwriting result*1
Net insurance investment income
Other income
UK Household Insurance result before tax*1

2023

2022 (restated)

338.6
318.8
292.8
275.3
(80.9)(199.8)
6.4
1.0
(1.4)
(0.4)
1.6
6.7
7.9

255.4
245.7
236.9
222.8
(70.0)(198.1)
16.5(28.8)
9.2(19.6)
1.2
7.7(10.7)*1. Alternative Performance Measures – refer to the end of this report for definition and explanation.
*2. Total premiums restated for prior periods to reflect premiums for all underwritten ancillary products. There is a corresponding reduction in Other net income, and no impact on turnover.
*3. Quota share reinsurance result within the segment result excludes reinsurers’ share of share scheme costs.

Key performance indicators

2022 (restated)£m• Profit earned from Motor policy
upgrade products underwritten
by Admiral, including breakdown,
car hire and personal injury covers

Under IFRS 17, income from underwritten
ancillaries and an allocation of instalment
income and administration fees inline with Admiral’s gross share of thecore motor product premium, areincluded within Insurance Revenue inthe underwriting result as ‘Gross otherinsurance revenue’. The remaining income
from instalment income, fees as wellas income from other non-underwritten
ancillary products is presented in othernet income.

Reported Household loss ratio*1
Reported Household expense ratio*1
Reported Household combined ratio*1
Household insurance service margin
Household loss ratio before releases
Impact of severe weather and subsidence on reported loss ratio*1
Impact of severe weather and subsidence on result before tax*1 (£m)
Households insured at period end (m)20232022 (restated)

70.2%
29.4%
99.6%
(0.1%)
72.6%
11.3%
9.8
1.76

81.5%
31.4%
112.9%(8.8%)
88.9%
29.0%
33.3
1.58

*1. Alternative Performance Measures – refer to the end of this report for definition and explanation.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report2020 & prior
2021
2022
2023
Total

2023

Admiral generates other revenue froma portfolio of insurance products thatcomplement the core car insurance
product, and fees, generated over thelife of the policy. The most material
contributors to other revenue continue
to be:

44

45

Strategic Report

UK Insurance review
continued

The UK Household business enjoyedstrong top line growth in 2023 with a
33% increase in turnover to £338.6 million(2022: £255.4 million) as a result ofsignificant price increases in response tohigher claims inflation.

The result for the year also improved
materially, with the business deliveringa profit of £7.9 million compared to a lossof £10.7 million in 2022. The improvement
was due to two factors:• The impact of severe weather andsubsidence in 2023 was significantly
lower in 2023 than 2022. Whilst the
final quarter of 2023 saw a runof named storms which were the main
contributor to the £9.8 million weather
impact in the year, 2022 was impacted
by a significant winter freeze event
which impacted the prior year resultby £33.3 million.
• The 2023 result benefitted from a
one-off recognition of reinsurer profit
commission relating to prior period
following a commutation. This benefit
is recognised in the quota sharereinsurance result, with the prior period
quota share result being negatively
impacted by the original de-recognitionof that profit commission following
significant weather events.

The reported loss ratio - excluding priorperiod releases and the impact of severe
weather - for 2023 was 61.3%, marginallyhigher than the equivalent ratio for 2022
of 59.9%. The impact of higher claims
inflation was largely matched by theincreases in average premium, whichearned through in the second half of theyear and are expected to continue earning
through into 2024.
Admiral’s expense ratio improved to29.4% (2022: 31.4%), with the impact
of continued investment in technology
more than offset by increasing
average premiums and the benefits ofincreased scale.
The quota share result for the period wasa loss of £1.4 million (2022: £9.2 million
profit). Despite the benefit from theone-off recognition of reinsurer profit
commission, the quota share result wasmaterially lower than 2022 as there wasno repeat of the recoveries made fromreinsurers following the December 2022
freeze event.
Overall, excluding the impact of severe
weather, profit for the period was£17.7 million, £4.9 million lower than 2022
(2022: £22.6 million), primarily as a resultof the slightly higher attritional loss ratio.

Admiral Group plc Annual Report and Accounts 2023

Establishing
A DIVERSIFIEDSET OF CHANNELS
AND PRODUCTS
In 2023, markets continued
to be challenging with highclaims severity inflation,and the Motor insurance
industry has reported highcombined ratios. Within thiscontext, we continued toprioritise margin over growthand managed to achievesolid customer and turnovergrowth, with averagepremiums finally growing
in all geographies.
Despite the inflation decelerated
compared to 2022 it remains high, placingpressure on claims, so it is imperative
to continue to stay prudent andprioritise profitability.
The overall profit in Europe is a combined
outcome of the positive contribution
from Italy and France, while Spain hasreported a loss. France and Italy are now
both profitable, and we will continue togrow the book with discipline and invest
in diversification (distribution in Italy;
product with Household in France).

The Spanish result is a function of theunprecedented high combined ratioof the Motor insurance industry, as wellas continued investment to build our
distribution diversification capabilities.
We have taken strong action and have built
good foundations, which we believe will
result in improved performance in 2024.

“Markets hit the worst
part of their cycle in 2023,
but we have continued
to demonstrate strong
performance and results.”
Costantino Moretti
CEO, International Insurance

The US has shown a strong improvementof all KPIs and has reported a lower loss
compared to last year. We are confident
that the actions taken will continue tohave a positive impact and contribute tomove Elephant closer to breakeven.
Due to those improvements, Elephant
did not require a capital injection fromthe Group and we expect this will also
be the case in 2024. We have made good
progress on assessing strategic options
and we are now deep diving on a short listof them, aiming to get to a final decisionin the first part of 2024.
I am grateful for the hard work of
our employees who have made ourcompanies a Great Place to Work. I am
also proud of the focus we have put on
helping our customers and supportingthe communities in which we operate.
Well done to the team, as we look forward
to a positive 2024!

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

The number of households insured
increased by 12% to just under 1.8 million
with Admiral’s multicover offering
contributing strongly to the growth.

The reported loss ratio for the period
was 70.2%, increasing to 72.6% whenexcluding prior period releases whichprimarily reflect the reduction in risk
adjustment in the current period.
The impact of releases on the 2023
reported loss ratio (benefit of 2.4 points)
is lower than the prior period (benefitof 7.4 points) partly as a result of anincrease in the estimate of the ultimate
cost of the December 2022 freeze event.

International Insurance review

46

47

Strategic Report

International Insurance review
continued
FranceBy proactively adjusting our pricing
strategies ahead of competitors, we
saw favourable loss ratio development.
This, combined with stringent expense
control and continuous enhancements inoperational efficiency, culminated in our
fifth year of written profits, achieving arobust 95% written combined ratio.

Looking ahead to 2024, L’olivier is set tofurther leverage our commitment todigitalisation and artificial intelligence
deployment (for example, pushing
100% of new claims notification online).
This pivotal focus aims to serve ourcustomers faster and enables better
service while increasing our cost efficiency.
We are also poised to expedite our
product diversification with further
development in household insurance,
continuing our 2023 trend when turnovergrew by more than 100% (albeit from a
low base). This aligns with our ongoingstrategy to enhance cross-selling and ourmulti-product offering.
Finally, I would like to thank all L’olivier
staff for their energy, enthusiasm
and great contribution to these good2023 results.

Spain“We are starting to
see the benefit of strong
actions taken during
tough market
conditions in 2023.”

Pascal Gonzalvez
CEO, L’olivier

Italy

Antonio Bagetta
CEO, ConTe

Admiral Seguros was not immune to thismarket context. Inflation in the first twoquarters was ahead of our expectation,
putting pressure on loss ratios for boththe 2022 and 2023 underwriting years.
We took strong action, raising prices morethan the market across all channels witha focus on protecting margin. Q4 averagepremium was up 16% vs a year earlier,despite a portfolio shift towards lower-risk
profiles. The increasing trend in income
per policy contributed to an improved
expense ratio and sets the business up
well going into 2024.

With a more medium-term perspective,
we continued to invest in new distribution
channels as routes to future scale.
June saw the successful launch of ourdigital insurance product for ING bank,“Seguro de Auto NARANJA”. This has
attracted positive feedback about boththe product and purchase experience.
In the broker channel, we reinforced ourcommercial management team andmade pleasing progress in underwriting.
We improved productivity, and enhanced
our digital servicing platforms, increasing
our digital sales ratio by 30%, becoming
even more responsive to customer needs.
For another consecutive year, we werevoted 2nd Great Place to Work in Spain,
winning the special prize “Better for
People” in recognition of a collaborativeand open team culture. I would like tothank all of my colleagues for their hard
work and contribution during 2023.

Sarah Harris
CEO, Admiral Seguros

2023 was a positive year for ConTe, with
continued focus on sustainable growth:+20% revenue increase led by higher
average premiums (+13%) and customer
growth (+7%). Market conditions havebeen improving, following a challenging
2022 which saw the market combined
ratio increase to 108% and 128% for
the direct channel. These inflationarypressures, together with regulatorychanges, led direct competitors to raise
prices materially, allowing ConTe.it to do
the same.

“In a difficult market
environment, wedelivered good results andoperational successes.”Claims inflation was the major theme
for the Spanish car insurance industry in
2023. Q4 market results showed a market
combined ratio12 exceeding 100% for the
first time in two decades. Market pricecorrection started early in the year andaccelerated in the second half, we expect
this trend to continue into 2024.

Our key aim is to be a very profitable
insurer in Italy through advanced
technologies and analytics.
We strengthened our fundamentals witha new data platform which improves
the time to market for analytics
model releases.
Sustainability has been a cornerstone of
our operations making significant strides
in being more efficient (4pp of written
expense ratio reduction), responding
to customers’ needs and expectations,investing in data capabilities and ensuring
long term-viability.

Admiral Group plc Annual Report and Accounts 2023

ConTe also achieved the highest NPS in
the industry and the best Trustpilot score
for online insurance, largely reflecting our
excellent operational service levels.

US

Our people remained a key priority in
2023. We implemented several wellbeing
initiatives and increased our GPTW
Trust index by 9 points to 87 in 2023.
We were also awarded by Milano Finanza
for our innovative approach to people
management, and in particular for our
Corporate Welfare, Employee Benefit andFamily Care Welfare.
It has been a year of operational
successes, with sustainable growth of the
Italian business driven by higher averagepremium and number of customers,
continuing to strengthen our data andtechnological innovation and the launchof new channels. In addition, we continued
to focus on our customers and our people,
and I would like to thank the ConTe teamfor their continued commitment and hard
work in 2023!

“Despite very challenging
market conditions,
Elephant materially
improved its result with
reduced losses in 2023.”
Alberto Schiavon
CEO, Elephant

In 2023, Elephant materially improved its
result with a reduced loss of £20 million
from £36 million in 2022, in line with ourcommitment to turn around our financial
performance and despite very challenging
market conditions with sustained severity
inflation. Our combined ratio decreased
by around 9 points13 (compared to anindustry projection of 3.514 points lower)
driven by improvements in both our loss
and expense ratios.

note is that the most recent underwriting
quarters continue to show improving
results compared to prior ones, at thesame point of development. It remains
early days but this is promising.

Our expense ratio was 5 points15 better
than 2022, benefitting from efficiency
initiatives (including a reduction inheadcount) and a more favourable
acquisition market. The latter was driven
by reduced competition in a difficult
market, as many players lowered their
growth appetite to protect their bottom
line while increasing rates.

I am very grateful to the Elephant teamfor the dedication, hard work, andcommitment in delivering excellent
customer service, modernising ourtechnology stack, while improving ourbusiness fundamentals at a much fasterrate than the market.

Our loss ratio improved by 4 points16
as a result of strong rating action andintentional mix shift towards lower loss
ratio segments and away from newer
channels and states. We increased baserates by an additional 38% in 2023,
compared to circa 16% across the top
five players in our states.17 Important to

Our significant rate increases over the last
few years have led to a 18% reduction in
vehicles insured throughout 2023, but at
a substantially higher average premium,leading to an overall growth in turnoverof 1%.

12 ICEA market data, net of reinsurance.
13 Earned whole account basis net of XoL.
14 Data is from S&P Global Market Intelligence 2023 Auto
Insurance Market Report.
15 Insurance expenses, excluding share schemes divided
by insurance revenue net of XoL.
16 Insurance claims incurred and claims releases divided
by insurance revenue net of XoL.
17 State filing rate changes for Virginia and Texas.
Weighted average change from top 5 players basedon market share.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report“L’olivier adeptly navigatedmarket uncertainties
and I am pleased
to report a profitable
Motor performance.”

In 2023, L’olivier performed well in thecontext of challenging market conditions.
Amidst escalating inflation and sluggish
market volumes that fell short ofprojections, L’olivier adeptly navigatedthese uncertainties by prioritising margin
protection. This approach inevitably
moderated our growth trajectory,
resulting in a 6% year-on-year increasein our motor policy base up to 420,000
customers. Concurrently, our turnover saw
a 15% increase to £219 million, bolsteredby a robust average premium.

48

49

Strategic Report

International Insurance review
continued

International Insurance financial performance
£m

2023

2022 (restated)

894.9
840.0
842.6
811.8
(249.4)(565.2)(2.8)(22.1)
0.6(24.3)
4.3
2.0(18.0)

795.9
744.2
750.0
732.0
(254.6)(547.1)(69.7)
13.9(1.0)(56.8)
1.1(0.5)(56.2)*1. Alternative Performance Measures – refer to the end of this report for definition and explanation*2.	Total premiums restated for prior periods to reflect premiums for all underwritten ancillary products. There is a corresponding reduction in Other net income, and no impact on turnover*3. Quota share reinsurance result within the segment result excludes reinsurers’ share of share scheme costs*4. Costs related to the settlement of a historic Italian tax matter during 2023 are excluded from the International Insurance result and presented within Group other costs, given that these are notreflective of the underlying trading performance of the International Insurance business.

Key performance indicators£m

Loss ratio*1
Expense ratio*1
Combined ratio*1
Insurance service margin*1
Customers insured at period end*1 (million)

2023

2022 (restated)

69.6%
30.7%
100.3%(3.0%)
2.17

74.7%
34.8%
109.5%(7.8%)
2.08*1. Alternative Performance Measures – refer to the end of this report for definition and explanation

International Motor Insurance – Geographical analysis *1
2023

Vehicles insured at period end
Turnover (£m)
2022

Vehicles insured at period end
Turnover (£m)

Spain

Italy

France

US

Total

0.45m
121.8

1.04m
272.4

0.42m
219.1

0.19m
271.2

2.10m
884.5

Spain

Italy

France

US

Total

0.43m
104.6

0.97m
227.9

0.40m
190.4

0.24m
268.5

2.04m
791.4

2023

2022 (restated)

6.1(19.6)(4.5)(18.0)(16.5)(36.4)(3.3)(56.2)*1. Alternative Performance Measures – refer to the end of this report for definition and explanation

Split of International Insurance result£mEuropean Motor
US Motor
Other
International Insurance loss before tax

Admiral Group plc Annual Report and Accounts 2023

Inflation remained high throughout
2023 and had a material impact on theInternational results, driving increased
market premiums particularly in Italy,
Spain and the US. Admiral continues tofocus on medium term profitability.

The insurance service margin also
improved to -3.0% (2022: -7.8%),
driven by an improved combined
ratio. This, together with increased
investment income, resulted in a lower
reported loss before tax of £18.0 million(2022: £56.2 million).

Admiral Seguros (Spain) grew its customer
base by 3% to 0.45 million customers
over the past year (2022: 0.43 million)
despite strong price increases in acompetitive market with high claims
inflation. The business continues tofocus on improving margins, enhancing
digital and data capabilities, as well assustainable growth through distribution
diversification through the broker channel
and other partnerships.

The combined ratio improved to 100.3%(2022: 109.5%), due to the combined
effect of higher premiums, increased scalein the European businesses, and a strong
focus on expense efficiency in Europe
as well as a reduced cost base in the US.
This resulted in the loss ratio improving to
69.6% (2022: 74.7%) while the expense
ratio reduced to 30.7% (2022: 34.8%).
Investment in diversification continued
with a focus on distribution in Italy
and Spain, and Household insurance inFrance. This will further facilitate thelong-term growth and profitability ofthese businesses.
The European insurance operationsin Spain, Italy and France insured
1.91 million vehicles at 31 December
2023 – 6% higher than a year earlier(2022: 1.80 million). Motor turnover
was up 17% to £613.3 million(2022: £522.9 million), driven by strong
price increases and the larger book sizes.
The combined European Motor profit was£6.1 million (2022: loss of £16.5 million),
an improvement driven by higher averagepremium and an improved expense ratio
despite continued inflationary pressures.
The combined ratio reduced to 95.4%(2022: 104.2%).

The Group’s largest international
operation, ConTe in Italy, increased
vehicles insured by 7% to
1.04 million (2022: 0.97 million) andMotor turnover by 20% to £272.4 million(2022: £227.9 million) reflecting
disciplined growth and price increases.
The business continued to focus on risk
selection and expense reduction as wellas growth in the broker channel.

In the US, Admiral underwrites motor
insurance through its Elephant Autobusiness. After a disappointing 2022 andin a context of high inflationary pressures,
Elephant focused on materially improving
its underwriting result in 2023 withstrong rating action and cost reduction.
The conscious decision to focus on
improving underwriting results led to an
18% decrease in the number of vehicles
insured to 0.19 million (2022: 0.24 million),a moderately higher turnover of£271.2 million (2022: £268.5 million) anda reduced loss before tax of £19.6 million(2022: loss of £36.4 million). In light ofthis early progress, the business did notneed further capital from the Group in
2023. Elephant will continue to prioritise
improving the loss ratio ahead of growthin the immediate future.

L’olivier (France) increased its
customer base by 6% to 0.42 million(2022: 0.40 million). The business has
focused on margin protection in a difficult
market with risk selection and loss
ratio improvements, alongside strong
cost control and the development ofhousehold insurance to leverage crossselling opportunities and further support
future growth.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Turnover*1
Total premiums written*1*2
Insurance revenue
Insurance revenue net of XoL*1
Insurance expenses*1
Insurance claims net of XoL*1
Underwriting result, net of XoL*1
Quota share reinsurance result*1*3
Movement in net onerous loss component
Underwriting result*1
Net investment income
Net other revenue
International Insurance loss before tax*1*4

Admiral’s International insurance
businesses continued to grow, withcustomers increasing by 4% to2.17 million (2022: 2.08 million) andturnover growth of 12% to £894.9 million(2022: £795.9 million).

50

51

Strategic Report

Admiral Money review

£m

2023

2022

Total interest income
Interest expense*1
Net interest income
Other fee income
Total income
Credit loss charge
Expenses
Admiral Money profit before tax*2

94.7(28.3)
66.4
0.1
66.5
(33.4)(22.9)
10.2

58.7(14.1)
44.6
0.3
44.9
(20.6)(22.2)
2.1*1. Includes £1.5 million intra-group interest expense (FY 2022: £1.5 million).
*2. Alternative Performance Measures – refer to the end of this report for definition and explanation.

I’m pleased to be able to say
it has been a positive 2023
for Admiral Money.
Coming into the year we knew there
would be continued uncertainty withhigher interest rates and inflation
impacting on the cost of living. I’m proudof how we have navigated these uncertain
times and I am absolutely delighted with
our first double digit profit of £10 million.
I would also draw particular attention to
our cost income ratio which is below 40%
for the first time and which represents
growing evidence of a likely long-termcompetitive advantage.
Through the year we have continued tofocus on high quality risk selection anda controlled and conservative approachto growth. Our on-balance sheet loan
book at end of December stands at£0.96 billion, 8% growth since FY 2022
and slightly down on the HY 2023
position. Our net income of £66 million
has increased by 49% from 2022, largely
reflecting the higher average balances
through the year as well as margin
improvements to provide risk resiliency.
We retain a firm focus on prime
lending and are seeing a high level ofresilience from our customers despite
inflation and higher interest rates.
Where loss experience has varied from our
expectation, in true Admiral fashion we
have adapted our approach quickly anddecisively and have remained well below
our IFRS 9 expected credit loss (ECL)
reserve position. Our NPS score of 68 andTrustpilot score of 4.5 provide continued
evidence that our commitment to being
an efficient prime focused lender andproviding certainty and transparency
to UK customers on their lending needs
is a successful formula.

Admiral Group plc Annual Report and Accounts 2023

2023 has also been a year of significant
and successful investment in ourcapabilities, particularly in technology
and data. We are especially looking
forward to seeing the benefits of our
new origination platform in 2024.
This new technology also provides us
with options to broaden our participationin the consumer lending market in
the future.

“I’m proud of how wehave navigated these
uncertain times,
and I am absolutely
delighted with our
first double digit profitof £10 million.”
Scott Cargill
CEO, Admiral Money

We have also completed the deliveryof several enablers for realising our goal
to be the lender of choice for Admiral
Insurance customers. This is a key pillarof our strategy and where we havethe most significant and sustainedcompetitive advantage. Over 50% of
our new customer flows in 2023 camefrom either current or recent Admiral
Insurance customers.
Looking to 2024, we enter the yearwith good momentum. We expect tobenefit from our strong position in a
growing market as we see a continued
shift to comparison and credit scoremarketplaces. I expect to see further
growth in our loan balances towards
the £1.2 billion range during 2024,
assuming current economic conditions.
Combined with a tightly controlled
cost base, we should see continued
improvements in the economics in the
coming years.

Admiral Money distributes andunderwrites unsecured personalloans and car finance products for UK
consumers through price comparison,credit scoring applications and directchannels. The proposition is focused onoffering real rates to provide customers
with upfront transparency and certainty.
Admiral Money recorded a pre-tax profitof £10.2 million in 2023 (improved from
£2.1 million profit in 2022), continuing
the positive trajectory seen since 2020.
Gross loan balances grew 8% to£0.96 billion (2022: £0.89 billion),with a £81.7 million (2022: £63.7 million)
credit loss provision, leading to a net loanbalance of £875.1 million(2022: £823.7 million). The increasein average portfolio size year on year
contributed to a 49% increase in
net interest income to £66.4 million(2022: £44.6 million).
As with prior year, Admiral Money
continued to carefully manage
affordability and credit criteria for
new lending in 2023 to reflect thehigher interest rate and elevatedinflation environment. At the sametime interest rates on new loans wereincreased to reflect the rising costof funding. These measures will help
ensure sustainable financial performance
into the future.

The credit loss charge increased to£33.4 million (2022: £20.6 million).
Overall, an appropriately cautious
approach has been taken to calculating
the credit loss provision, including
post model adjustments for model
performance, cost of living, economic
scenarios forecast uncertainty, reflecting
the level of uncertainty in the current
economic environment. For further
information, refer to note 7 in thefinancial statements.
Admiral Money is funded through a
combination of internal and externalfunding sources. The external funding
is secured against certain loans via
transfer of the rights to the cash-flows
to two special purpose entities (SPEs).
The securitisation and subsequent issue
of notes via SPEs does not result in asignificant transfer of risk from the Group.

I’d like to finish by thanking ourcustomers and all of my colleagues
and wish everyone the best for 2024.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Enhancing
OUR DIGITALCAPABILITIES

Admiral Money financial review

52

53

Strategic Report

Other Group Items

Group Capital Structure and Financial Position

Other Group items financial review

The Group manages its capital to ensurethat all entities are able to continue
as going concerns and that regulated
entities comfortably meet regulatory
capital requirements. Surplus capital
within subsidiaries is paid up to the Groupholding company in the form of dividends.

£m

2023

2022 (restated)(54.4)(41.7)(16.2)(15.3)(20.3)(2.6)
4.6(145.9)(51.7)(15.6)(13.5)(8.8)(12.1)(2.8)
10.1(94.4)*1. A number of small re-allocations of costs/income have been made between these lines and UK insurance/International insurance 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 a lower loss in Admiral Pioneer than reported in 2022.
*2. Finance charges within other group items include £1.7 million (2022: £0.7 million) that relate to intra-group arrangements, with the corresponding income presented within the UK
Insurance result.

Share scheme charges relate to theGroup’s two employee share schemes.
The increase in the charge compared to2022 is driven primarily by the higher
share price in 2023 relative to 2022,
which increases the employer’s national
insurance cost on shares due to vest.
Other central costs consist of Grouprelated expenses and include the cost of
a number of significant Group projects,
such as the internal model development
and other regulatory projects, central
management salaries and expenses,
and additional expenses including gains
and losses on amounts held in foreign
currencies. The significant increase inother central costs is driven primarily bycosts incurred on interest and penalties
on settlement of a historic Italian tax
matter (further details are provided in
the taxation section later in this report);
an adverse impact of foreign exchange
movements (compared to a gain on thesebalances recognised in 2022), and higher
costs related to M&A activity.
Admiral launched Admiral Pioneer
in 2020 to focus on new productdiversification opportunities, as part ofthe investment in product diversification.
Pioneer businesses include Veygo (flexible
pay-as-you-go and learner driver insurer
in the UK) and small business insurance
in the UK. Pioneer reported a loss of£16.2 million in 2023 (2022: £13.5 million).
This was mainly driven one particularlarge claim in Veygo, for which a cautious
reserving approach has been adopted,
together with continued investment insmall business insurance.

Business development costs increased to£15.3 million (2022: £8.8 million), primarily
attributed to increased investment in new
businesses within the operations acrossthe Group as part of the diversification
strategy. Admiral took the decision toclose its small fleet insurance businessin France, which also resulted in modest
closure costs.
Finance charges of £20.3 million(2022: £12.1 million) primarily related
to interest on subordinated notes, aswell as a small one-off charge in relation
to the renewal of the Group’s revolving
credit facility. In July 2023, the Groupissued £250 million subordinated loan
notes, at a fixed rate of 8.5%, with aredemption date of January 2034. At thesame time as the new issue, the Groupmade a tender offer for the existing£200 million subordinated loan notes, with
£145 million of the 2024 notes tendered.
At 31 December 2023 the resulting
nominal value of subordinated liabilities
on the balance sheet is £305 million,
which will reduce to £250 million in
July 2024.
A loss of £2.6 million (2022: £2.8 million)
was attributed to compare.com in
the first half of the year, which was
a combination of a small loss in thebusiness together with a small loss
recognised on disposal. The sale of thisUS comparison business completed
during the period, with no cash exchange
as a result, but Admiral receiving aminority share in the acquiring business.

Admiral Group plc Annual Report and Accounts 2023

Other interest and investment
income decreased to £4.6 million(2022: £10.1 million). In 2022, there wasa gain of £4.7 million from the sale of
UK government bonds which was notrepeated in the current period, andthe current period also includes a lossof £3.6 million in 2023 related to there-purchase of bonds as a result of thedebt restructure. Excluding these factors,
underlying interest and investment
income increased to £8.2 million from
£5.4 million, in line with the higher
interest rate environment.

The Group’s regulatory capital isbased on the Solvency II Standard
Formula, with a capital add-on to reflect
recognised limitations in the Standard
Formula with respect to Admiral’sbusiness, predominantly in respectof profit commission arrangements
in co- and reinsurance agreements.

In the interim period before model
approval, the current standard formulaplus capital add-on basis will continue
to be used to calculate the regulatory
capital requirement.
The estimated and unaudited Solvency
ratio for the Group at the date of thisreport is as follows:

Group capital position (estimated and unaudited)
Eligible Own Funds (post-dividend)*1
Solvency II capital requirement*2
Surplus over capital requirement
Solvency ratio (post-dividend)*3

YE 2023£bn

YE 2022
£bn

1.42
0.71
0.71
200%

1.20
0.66
0.54
180%

*1. 2023 Own Funds include approximately £250 million of Tier 2 capital following the Group’s recent issue of ten-year subordinated loan notes. YE’22 Own Funds include approximately £200 million ofTier 2 capital.
*2. Solvency capital requirement includes updated, unapproved capital add-on.
*3. Solvency ratio calculated on a volatility adjusted basis.

The Group’s solvency ratio has improved
over 2023 to a strong closing position at
200% (2022: 180%). Strong generationof economic capital in the core UK
motor business, in particular during thesecond half of the year, contributed to anincrease in Own Funds of approximately£200 million. The increase in Tier 2 Capitalof approximately £50 million (further
detail below) also contributed to the
Own Funds increase as well as smaller
favourable impacts from movements inyields and spreads in the year, and theimpact of changes in the risk margin
arising from the PRA’s introduction of the
new UK prudential regime for insurers,‘Solvency UK’.

The SCR also increased over the year,
though to a lesser extent. The increase of
approximately £50 million was primarily asa result of the increase in premiums acrossall Group businesses and the associatedimpact on underwriting and operationalrisk elements of the capital requirement.

During the second half of 2023, the PRA
issued notice of an updated fixed Group
capital add-on of £24 million, which islower than the previously approved addon of £81 million, but higher than theGroup’s own assessment of the capital
add-on at the end of 2023.

The SCR above includes an updated
capital add-on which is recalculated at
the end of each period. As a result, it isdifferent to the fixed Group capital addon which is included in the regulatory
Quantitative Reporting Templates (QRTs)
reported to the PRA.

The estimated solvency ratio including
the fixed Group capital add-on of£24 million, that is calculated at thebalance sheet date rather than the dateof this report, and will be reported in
the Group’s 2023 Solvency and Financial
Condition Report (SFCR) is as follows:

Regulatory solvency ratio (estimated and unaudited)

Solvency ratio as reported above
Change in valuation date*1
Other (including impact of updated, unapproved capital add-on)
Solvency ratio to be reported (SFCR)

2023
£m

2022
£m

200%
(11%)
(6%)
183%

180%
(11%)
(20%)
149%

*1. The solvency ratio reported above includes additional own funds generated post year end, up to the date of the approval of the dividend.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Share scheme charges
Other central costs*1
Admiral Pioneer result*1
Business development costs*1
Finance charges*2
Compare.com loss before tax
Other interest and investment income*1
Total

The Group continues to develop its
partial internal model to form thebasis of future capital requirements.
Having taken time to review, update andextend the scope of the model as well ascompleting further cycles of independent
external validation, the Group expects toenter a pre-application process with its
regulators soon. Once the pre-application
process is complete, the Group expects
to be able to communicate timelines
for a full application.

54

55

Strategic Report

Group Capital Structure and Financial Position
continued

Issue of subordinated loan notes

Investments and cash
Investment strategy

Admiral Group’s investment strategy
focuses on capital preservation and low
volatility of returns relative to liabilities
and follows an asset liability matchingstrategy to control interest rate, inflationand currency risk. A prudent level ofliquidity is held and the investment
portfolio has a high-quality credit profile.
In 2023, the focus remained on matching,and cashflows were invested into highquality assets to take advantage of risingrisk-free rates, whilst being appropriately
cautious on the credit outlook. The Groupholds a range of government bonds,
corporate bonds, alternative and private
credit assets, alongside liquid holdings incash and money market funds.
A further aim of the strategy is to
reduce the Environmental, Social, andGovernance (ESG) related risks in theportfolio whilst continuing to achievesustainable long-term returns. In 2023,
the portfolio weighted average ESG score
had an MSCI AA rating.
Net investment income for 2023 was£126.7 million (2022: £66.4 million).
Provisions for expected credit losses
developed favourably, leading toa £2.5 million release of provisions(2022: £1.8 million favourable impact).
The investment return on the Group’s
investment portfolio (excluding unrealised
gains and losses and the movement inprovision for expected credit losses)
was £124.4 million (2022: £64.1 million).
The annualised rate of return was higher
at 3.3% (2022: 1.6%), due to higher
reinvestment yields and higher returns
on floating rate securities as interest rates
rose throughout the year.

£m

2023

2022

UK Motor – incurred loss ratio +5%
UK Motor – 1 in 200 catastrophe event
UK Household – 1 in 200 catastrophe event
Interest rate – yield curve up 100 bps
Interest rate – yield curve down 100 bps
Credit spreads widen 100 bps*1
Currency – 25% movement in Euro and US dollar
ASHE – long term inflation assumption up 50 bps
Loans – 100% weighting to ‘severe’ scenario*2

-11%
-1%
-5%
-1%
+1%
-5%
-3%
-3%
-1%

-11%
-1%
-4%
-2%
+2%
-6%
-3%
-3%
-1%

*1. 2022 credit spread sensitivity restated to include the benefit of offsetting movements in the volatility adjusted yield curveused for discounting liabilities.
*2. Refer to note 7 to the financial statements for further information on the ‘severe’ scenario.

Investment return£m

Underlying investment income yield
Investment return
Unrealised (losses)/gains on derivatives
Movement in provision for expected credit losses
Total investment return

2023

2022

3.30%
124.4
(0.2)
2.5
126.7

1.6%
64.1
0.5
1.8
66.4

Cash and investments analysis£mFixed income and debt securities
Money market funds and other fair value instruments
Cash deposits
CashTotal*1

2023

2022

2,825.9
918.8
116.7
353.1
4,214.5

2,372.7
934.7
101.4
297.0
3,705.8*1. Total Cash and Investments include £278.2 million (2022: £198.2 million; 2020: £74.8 million) of Level 3 investments. Refer tonote 6e in the financial statements for further information.

Cashflow£m

Operating cashflow, before movements in investments
Transfers to financial investments
Operating cash flow
Tax payments
Investing cash flows (capital expenditure)
Financing cash flows
Loans funding through special purpose entity
Foreign currency translation impact
Net cash movement
Unrealised gains/(losses) on investments
Movement in accrued interest, foreign exchange andunrealised gains/(losses) on derivatives
Net increase in cash and financial investments

2023

2022 (restated)

697.5(285.5)412.0(133.0)(75.9)(216.7)
44.9
24.8
56.1
98.1

379.1
189.0
568.1
(91.2)(101.0)(692.8)267.8(26.6)(75.7)(255.6)

69.0
508.7

113.2
(407.1)

The main items contributing to the operating cash inflow are as follows:£m

Profit after tax
Change in net insurance contract liabilities
Net change in trade receivables and liabilities
Change in loans and advances to customers
Non-cash Income Statement items
Taxation expense
Operating cashflow, before movements in investments

Admiral Group plc Annual Report and Accounts 2023

2023

2022 (restated)

337.2
309.5
(42.3)(73.6)
61.1
105.6
697.5

285.3
248.6
(21.2)(280.6)
71.1
75.9
379.1

An increase in the market valueof the portfolio of £98.1 million(2021: £255.6 million reduction)
primarily relates to the reversal of losses
recognised in 2022 as the bonds areheld closer to maturity. That movement
is reflected in the Statement of Other
Comprehensive Income.
The Group continues to generatesignificant amounts of cash and its
capital-efficient business model enables
the distribution of the majority of
post-tax profits as dividends. Total cash
and investments at 31 December 2023
was £4,214.5 million (31 December
2022: £3,705.8 million), the increasereflecting market value gains noted
above, an increase in assets at the Grouplevel following the refinancing of theGroup’s subordinate debt during 2023,
and growth in premiums written.
The net increase in cash and investmentsin the period is £508.7 million (2022:
decrease of £407.1 million).

Taxation

The tax charge for the period is£105.6 million (2022: £75.9 million),
which equates to 23.8% (2022: 21.0%)
of profit before tax. The increase in the
UK rate of corporation tax to 25% (from19%) from 1 April 2023 is a significant
driver of the increase. In addition, inlate 2023 the Group settled an amountrelated to a historic Italian tax matter.
This is not expected to result in a material
increase in the tax charge going forward.
See note 10 to the financial statements
for further details.

Co-insurance and reinsurance

Admiral makes significant use of
proportional risk sharing agreements,
where insurers outside the Group
underwrite a majority of the risk
generated, either through co-insurance
or quota share reinsurance contracts.
These arrangements include profit
commission terms which allow Admiral
to retain a significant portion of the
profit generated.

UK Motor Insurance

Munich Re and its subsidiary entity,
Great Lakes, currently underwrites 40%of the UK Motor business. From 2022,
20% of this total is on a co-insurance basis(via Great Lakes) and will extend to 2029.
The remaining 20% is on a quota sharereinsurance basis and these arrangements
now extend to 2026.
The Group also has other quota sharereinsurance arrangements confirmed
to at least 2024, covering 38% of thebusiness written.
The nature of the co-insurance proportion
underwritten by Munich Re (via Great
Lakes) in the UK is such that 20% of all
Motor premium and claims accrue directly
to Great Lakes and are not reflected in theGroup’s financial statements. Similarly,
Great Lakes reimburses the Group for its
proportional share of expenses incurred inacquiring and administering this business.
The quota share reinsurance
arrangements result in all Motorpremiums, claims and expenses thatare ceded to reinsurers being includedin the Group’s financial statements.
These agreements operate on a funds
withheld basis and include certain
features such as expense caps and an
allocation of investment income earnedon the funds held by Admiral on behalfof the reinsurers. These features resultin higher profit commission should theunderwriting year reach profitability.

In 2023, there were no significant
commutations, with the majority of quota
share reinsurance covering underwriting
year 2020, and all arrangements covering
the 2019 and prior underwriting years,
having now been commuted.

UK Household Insurance

The Group’s Household business is
supported by long-term proportional
reinsurance arrangements covering
70% of the risk, that run to at least
2024. In addition, the Group has nonproportional reinsurance to cover therisk of catastrophes stemming fromweather events.

International Car Insurance

In both 2022 and 2023 Admiral retained
35% (Italy), 30% (France), 30% (Spain) and
40% (USA) of the underwriting risk in eachcountry respectively.

Excess of loss reinsurance

The Group also purchases excess of loss
reinsurance to provide protection against
large claims and reviews this cover annually.
The UK Motor excess of loss cover remained
similar to prior years with cover starting at£10 million.

Admiral tends to commute its UK Car
Insurance quota share reinsurance
contracts 24-36 months after inceptionof an underwriting year, assuming there
is sufficient confidence in the profitabilityof the business covered by thereinsurance contract.
After an underwriting year is commuted,
movements in financial statement
loss ratios result in reserve releases (orstrengthening if the loss ratios wereto increase) rather than reduced orincreased profit commission.

Although the primary focus and disclosure
is in relation to the UK Motor insurance
book, similar longer-term arrangements
are in place in the Group’s international
insurance operations and the UK
Household and Van businesses.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

During July 2023, Group issued 10.5 year,
8.5% £250 million subordinated loan
notes. At the same time as the new issue,
the Group made a tender offer for the
existing £200 million subordinated loan
notes, due to mature in 2024. £145 millionof the 2024 notes were tendered, withthe remaining £55 million of 2024 notes
not classified as Tier 2 Capital within Own
Funds at the end of 2023.

Solvency ratio sensitivities

57

Strategic Report

Sustainability

Driving

Our approach to sustainability

Sustainability has always been at theheart of Admiral’s business, throughout
the Group’s thirty year history. Admiral has
supported millions of customers,
provided a great place for its employees
to work and thrive, and supported
its communities. The Group has sought
to reduce its carbon footprint forover a decade.
In 2023, the Group further increased its
focus on sustainability. It has brought
together existing sustainability efforts
under a newly-appointed Group Head of
Sustainability, supported by an enhanced
sustainability governance structure.
This approach will provide the dedicatedresource, expertise, and Group-wide
focus needed to co-ordinate all aspectsof sustainability already present acrossthe Group.

The new structure supports the Group’s
ambition to further embed considerationof sustainability within its commercial
strategy and all business activities andbehaviours. Admiral strives to increase
the impact of its focus on sustainability
through engagement of operations andsupply chain, the leveraging of skills andvolunteering to create more jobs in its
communities, evolution of its investment
portfolio, and the development of
new products and services to support
customers’ lifestyles.

Admiral Group plc Annual Report and Accounts 2023

Quick reference guide
Item

Strategy
Material Sustainability Issues
Our Customers
Our People
Our Business
Our Society
External Engagement
Sustainability Ratingsand Rankings

Page

56
58
60
62
64
66
68
70

Always striving for
better, together”

Board Committees: The Board hasdelegated authority to several permanentcommittees that deal with sustainability
related matters. The principal committeesof the Board – Group Audit, Group
Remuneration, Group Risk, and Group
Nomination and Governance – play animportant role in the Group’s sustainability
related decision-making processes.
For example, the Group Risk Committee
oversees the management of climaterelated risk and ensures appropriate
oversight is in place for both ‘outside in’risks and ‘inside out’ risks. The Group Audit
Committee oversees the reporting of risk
disclosures in respect of climate change
and ensures that all external reporting iscomplete, accurate and not misleading.

eiv
sit soPo on

POSITIVE CHANGE
TOGETHER

Our Purpose“Help more people
to look after their future.

Sustainability governanceGroup Board: The Admiral Group Board isultimately responsible for understanding
the Group’s impact on the environment, as
well as the impact of a changing climate
on the Group. It is the principal governing
body for sustainability-related issues andtakes ownership of sustainability andclimate-related topics and associatedstakeholder engagement. The Board
approves the Group’s sustainability
approach and our sustainability ambitions
which can have a material impact
on Admiral. Milena Mondini, Group
CEO, is the accountable Sustainability
representative for the Group and theGroup CRO, Keith Davies has designated
SMCR responsibilities in relation tounderstanding and managing the risks tothe business created by climate change.

Gr
e
ex at
pe cu
ri

e
ac
l
p rk
o

i
c i mp
et ac
t
y

cc i
S u usb

Sustainability Steering Committee:
To support a more holistic andco-ordinated approach to sustainability
issues, in October 2023 the Group Board
approved the creation of a management
Sustainability Steering Committee (SSC)and five supporting Working Groups(see below), to replace the former
Sustainability Working Group and Climate
Change Committee.
The SSC provides guidance on the overall
programme of sustainability-related workand ensures a joined-up approach acrossthe entire Group. Chaired by the Executive
Sponsor for sustainability, it meetsquarterly and comprises the Group CEO,AECS CEO, Chief Financial Officer, Group
Head of Sustainability and Chairs of theWorking Groups. In addition, the Group
Head of Sustainability provides updates
to the Group Board and relevant entity
Boards and Committees, as required.
The sustainability Working Groups
are based on the key areas of oursustainability strategy. They discussand make decisions on how these areas
impact and are impacted by all theelements of Environment, Social, andGovernance (ESG). Although the Climate
Change Committee has been retired,climate – along with other ESG aspects– is integrated into each of the Working

Groups, allowing for a more holistic
assessment of our sustainability approach.
The working groups are chaired by senior
management experts who lead theGroup’s activities in their respective areas:• Sustainability Positioning& Communications• Customer & Product• Operations, Investments& Procurement• Risk, Compliance & Reporting• People, Learning & Development
Green Team: The Green Team is aninternal colleague-led group which looks
at initiatives on environmental topics,
such as minimising our operational
impact of climate change and engaging
colleagues directly with solutions.
The Green Team is also responsible fororganising environmentally-themed
events within the workplace inassociation with partners such as Stump
Up for Trees and Size of Wales.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

The purpose framework and its
consideration of stakeholders provides
a roadmap for the types of decisions
taken across the business on issuesof sustainability. To see this in action,please turn to our Materiality Assessment
on page 58.

Our Purpose framework

er
om s
st ce
en

Admiral Group’s purpose is to help more
people to look after their future, while
always striving for better, together.
The purpose framework demonstrates
how our purpose is embedded acrossAdmiral Group.

es
n e s fuss l

Our Purpose

Gr
e
to at
w

56

59

Strategic Report

Sustainability
continued

Material Sustainability Issues
Reviewing our materiality assessment

In 2024, we will revisit our materiality assessment to reflect ‘double materiality’. This will allow us to better understand the risks thatsustainability topics pose for us both internally and externally.
Priority

1. No poverty

7. Affordable andclean energy

13. Climate action

Focus

To capture and address the sustainability
topics that matter most to AdmiralGroup’s businesses, we ran a materiality
assessment in 2021. In this assessment,internal and external stakeholders ranked
topics that they believed material toAdmiral Group’s success. Rankings werebased on topics’ relative importance
operations, not Admiral Group’s current or
historic performance.

The UN Sustainable Development Goals

We will undertake a revised assessment
in 2024 on a double materiality basis inreadiness for the upcoming EU’s Corporate
Sustainability Reporting Directive (CSRD).

Admiral’s Board has affirmed that
Admiral has six stakeholder groups:
Customers, employees, suppliers andpartners, shareholders, community,
and the environment. These six groups
are reflected in the four quadrants ofour purpose framework.
Our materiality assessment was
conducted by reviewing the needs ofeach of the six stakeholder groups andsurveying over 500 managers, over 2,000
customers and over 2,000 membersof our communities. The resulting
materiality assessment reflects thepriorities and concerns of stakeholders
during this work.

2. Zero hunger

3. Good healthand well-being

4. Quality education

8. Decent work andeconomic growth

9. Industry, innovationand infrastructure

10. Reduced inequalities To view more about our stakeholder
engagement, see our Section 172 reporton page 87

14. Life below water

15. Life on land

16. Peace, justice andstrong institutions

Admiral Group plc Annual Report and Accounts 2023

United Nations Sustainable
Development Goals

Risk governance and business resilience

8

Talent acquisition and development

4 8

Product quality

9

Employability and social mobility

8 10

Impact of operations on climate change

13

Eco-friendly products

12 13Innovation

8

Diversity and inclusion

5 10

Educational opportunities

4

Fair and affordable price10

People, health, and wellbeing

3

Smart, green, and safe mobility

9 11

Investing responsibly

13

Strong ethical partnerships

16

Community health and wellbeing

11

External efforts to fight climate change

13Sports, arts and culture

4 11

Executive remuneration

5 10

Financial inclusion

10Homelessness and housing

11

To read more on the SDG’s, please refer to our Sustainability Report on our corporate website.
Monitor: These topics are part of our ESG tracker, with the view that they may progress to being actively managed in the long term.

Aligning issues with UN Sustainable
Development Goals
To better align our engagement
on material topics with worldwide
efforts around these topics, in 2023,
we began mapping the topics in ourmateriality matrix to the UN Sustainable
Development Goals (see table below).
Whilst the SDGs are a useful tool to help
evaluate our contributions to sustainable
development, not all our material issues
from 2021 are aligned to the 17 goals.
Only those issues that are aligned areincluded in the below table.

ManageDefining materiality via
stakeholder engagement

Material issue

Manage: These topics are prioritised on our ESG tracker. They are viewed as topics on which we do well, so they will be managed
and maintained.
5. Gender equality

11. Sustainable cities
and communities

6. Clean waterand sanitation

12. Responsible
consumption andproduction

17. Partnerships
for the goals

Focus: These are topics that the Sustainability Approach will focus on in the short term (18-24 months). Our ambitions for Focus will
evolve over time.

 Read more on our
engagement with the
UN SDGs, see page 68

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Our approach tosustainability materiality

Monitor

58

60

61

Strategic Report

Sustainability
continued

Our Customers

Our purpose of helping more people tolook after their future drives us to deliverproducts and services that help our ninemillion customers meet their needs,
achieve their goals and live resilient lives.

Implementation of Consumer Duty

The UK Financial Conduct Authority’s new
Consumer Duty (‘Duty’) regulation, whichcame into force in July 2023, has helped
and will continue to help us demonstrate
how we put customers at the heartof everything we do. Under the Duty,
customers are to receive communications
they can understand, products andservices that meet their needs and offer
fair value, and receive the support theyneed, when they need it.
The Duty builds on our already strong
foundations: for example, where weundertake regular customer service
monitoring, assessment of customer
demands and needs. We have also,
and will continue to, enhance ourManagement Information (MI), reporting
against the four Duty outcomes on amore granular basis, allowing us to view
outcomes through a customer lens better.
In the case where outcomes are notas we would like, we make amendments
and enhancements to improvecustomer outcomes.
This is particularly important as we
continue to refine our product and service
offerings in line with customers’ changing
sustainability preferences, so that they areable to pursue their financial objectives
and sustainability goals.
 Read more about Consumer Duty on
page 111 of this report

Sustainable and quality products

We strive to create and maintain goodquality, sustainable products for ourcustomers. Target market and fair value
assessments are undertaken internally,
to confirm that we aim to, and do, meetcustomer needs. In the very few instanceswhere this is not the case, we act quickly
to make changes and improvements
where needed. Our Product and Oversight
Policy also acts as a control to provide
customers with products that perform as
expected and meet their needs.

Financially inclusive products

The nature of insurance means that
individuals, families, and households areprotected from unforeseen financial
difficulties, with the cost of the insured
risk shared amongst many, making it
more accessible to a greater proportion of
the population. It is important to us that
we provide accessible, inclusive financial
products and services that can help more
people plan for the future and protect
themselves against adverse events.
In 2023, this included performing apremium finance review to ensure our
UK product APRs are delivering fair value,
allowing more customers to financeinsurance payments. In addition, we
continued to develop our tiered UK motor
product offering, which offers an essential
level of cover accessible at lower prices.

Sustainable products

In our UK motor products, we haveworked to support environmentallyfriendly products like supporting
our customers with the transition toalternative-fuel vehicles. In 2023, we are
one of the market-leading underwritersof electric vehicles by leveraging our corepricing strengths and developing new
product features.

if customers’ vehicles run out of charge,
cover for wall boxes installed at the home,cover for EV batteries and charging cables
already included in our cover. In 2023, UK
motor launched a partnership with BP
Pulse testing a free six-month ‘On-The-Go’charging subscription for a subset of our
EV customers. Our aim was to ease the
EV transition by providing customers withaccess to charging credit and discounted
charging rates.
As EV adoption continues to evolve in
2024, we will continue to take a customerled approach and develop our offering tosupport UK customers’ EV transitions.

Climate-resilient products

As a UK insurer, since 2016 our UK
Household business has taken part in the
Flood Re scheme, which is designed toallow insurers to offer more affordable
insurance for UK homes built before
2009 in areas most at risk of flooding.
Our UK Household business also utilises
quota share reinsurance arrangements,
including both catastrophe and aggregate
cover for the UK household lines.
These agreements allow us to support
more customers with home insurance atfairer prices. We continue to assess how
we can better support customers affectedby extreme weather events as well as
explore new ways to work with suppliers
to make properties more resilient.
Group average NPS18>45
Trustpilot Score

4.4

We expanded our electric vehicle (EV)insurance proposition by listening tocustomer needs and understanding
how they have evolved. In 2023, our UK
motor product launched a range of EV
specific features, such as free recovery

Transparent claims outcomes

As an insurer, we are committed toproviding appropriate claims experiencesthat deliver good outcomes for ourcustomers in a timely manner.
We are continually improving claims
service in all areas. Notable enhancements
in 2023 include in UK Motor, making
handling processes clearer, increasing theopportunity for additional contact, andmaking it easier for our partner garages
to provide updates more regularly to ourcustomers. These initiatives combined
helped to provide reassurance to UK
customers throughout the claims process.
In Spain and Italy, customers are offered‘cash settlements’ to reduce claims
settlement times and improve service.
In France, we upgraded our online claims
feature to make it easier for customers
to open claims in the channel of theirpreference. Our France-based customers
can now open almost all claims throughthe customer portal and chatbot, which
offers automated solutions, in turnimproving customer service and reducing
customer wait times.

Climate-related claims

The impact of climate change continues
to affect our customers through extreme
weather events such as flooding andincreased subsidence in the UK andhailstorms in the US. In these situations,
it is important that there is clear andtransparent communication between
our claims department and customers.
For example, with our UK insurance
businesses, we send communication topotentially affected customers aheadof severe weather events to help themtake steps to reduce the chance of aloss and to remind them how to make aclaim. In 2023, we launched a ‘Storm Hub’to provide Household customers withinformation on all things storm related.

Taking care of vulnerable customers

Financial inclusion is part of oursustainability approach. We knowthat individual customers may havedifferent requirements when it comes tounderstanding and being informed about
our products, and to be inclusive, we seek
to accommodate those requirements.
Our Vulnerable Customer Policy underpins
our identification, treatment, andmonitoring of vulnerable customers
through their circumstances, whether
temporary or long-term. The Policy
aims to ensure that there are sufficient
controls in place so that these customers
are treated fairly and appropriately andthat their needs are considered in thedevelopment of all products.
In 2023, in UK Motor, we put newvulnerable customer standards in place,as well as a process to share the needs ofvulnerable customers with our suppliers.
The aim was to our ensure customers
receive the right level of support
throughout their journey with us. Also in
2023, we launched a feature to allow
customers to update their accessibility
needs in the UK MyAccount portal.
In addition, we re-wrote our in-depth
process guides for customers who needvarying levels of support and rolled out
specific agent training and Company-widetraining to create more awareness.

Launching

STORM HUB
In light of the recent extreme weather
events in the UK, our Household teamlaunched ‘Storm Hub’ in June 2023.
The Storm Hub aims to improve ourcustomers’ awareness of weather
events and how they can keep
themselves and their properties as safe
as possible. It also usefully highlights
what their insurance cover includes,
for any subsequent claims they needto make.
Storm Hub sends weather warnings
to our customers to make sure they
are aware of any extreme weather
events due to happen in the UK, we
use this to direct to information in the
Storm Hub. Our key priority is keeping
our customers safe and helping thembetter understand the risks aroundextreme weather.

One example of taking care of vulnerable
customers was in October 2023, whena fire at Luton Airport affected several
hundred of our customers. We treatedall Luton claims customers as vulnerable
and high need at that stage, due to thecircumstances they faced.
When considering vulnerable customers,
it’s important to not take a ‘one-sizefits-all’ approach. Our UK business has
dedicated work streams in place to ensurechanges around customer needs aresupported, making it easier for customers
to communicate their needs to us.

18 Relational NPS, methodology updated in 2022. We’ve
seen a decrease in the NPS mainly due to increased prices,which are a reflection of current market conditions.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Customers are at the heartof everything we do.

62

63

Strategic Report

Sustainability
continued

Our People‘Always striving for better, together’ is
not only part of our purpose but a key
pillar when it comes to our approach to
our people. All of our people have theopportunity to shape and contributeto our unique culture, evolve our testand-learn approach, and support ouroperational excellence. This opportunity
fosters happier and more productive
colleagues, ultimately shaping better
outcomes for our customers andother stakeholders.

Diversity and Inclusion

We support Diversity and Inclusion (D&I)
initiatives across Admiral Group, with 94%
of our colleagues around the world statingin 2023 that they believe that AdmiralGroup is a diverse and inclusive employer.
We have Group-wide working groups
focused on maintaining fair processes forour people and implementing new, betterways to support diversity in our workspace(see table below). Cristina Nestares, CEOof UK insurance, is the Executive Sponsor
of D&I and supports these groups fromthe top. Alongside our working groups,
we run D&I training sessions for allcolleagues on topics like neurodiversity,and also run mandatory D&I training for
all of our line managers.
In the UK in 2023, we became a Foster and
Adoption Friendly Employer. The improved
UK adoption policy mirrors our maternity
policy and allows colleagues to attend preadoption appointments throughout theirjourney. Meanwhile, our Foster Carers
Policy gives colleagues paid time off toattend any meetings or training during
the approval process, and paid leave tosettle a child or young person when theyfirst arrive. We recognise the different
journeys our colleagues may be on, andwant to ensure everyone has the rightsupport throughout.
In 2023, we continued to be a Disability
Confident employer in the UK, giving
us the recognition for our devotion
to ensuring that disabled people in
our workplaces are able to participate
fully and receive – a fair chance andfull consideration for job roles, anddevelopment opportunities. In December
2023, we marked the ‘Purple Light Up’,a global movement celebrating anddrawing attention to the contributionsof our colleagues with disabilities. As partof our celebration for Purple Light Up,
we shared an inspirational chat eventfor colleagues, highlighting the positive
impact of embracing disability at our
UK headquarters.

Diversity and Inclusion Working Groups in 2023
Gender Equality

Ethnicity and Culture

Ty Rainbow LGBTQ+

AgeDisability

Social Mobility

Considers and raises awareness on issues
surrounding gender; continues to support
colleagues and promote an inclusive culture
Supports Admiral in becoming a more ethnicallydiverse and inclusive Company through awareness,
discussion, and improvements to the working
environment
Promotes a safe and inclusive environment tosupport LGBTQ+ colleagues and customers,
as well as providing a social support network
Focuses on understanding the needs of ourcolleagues in various age ranges, including 16-30,
30-50, and 50+. Initiatives in this area include
menopause support, assisting colleagues withaccess to appointments
Promotes safe and healthy environments,
raises awareness, and advocates fair and inclusive
workplaces for our colleagues with disabilities
across our Group
Supports work to ensure that regardless ofsocioeconomic background, everyone can fulfil
their potential and progress their careers.

Employee engagement

Part of our culture is making sure ourpeople feel part of the bigger picture,and that their contributions matterand are valued. Our different Employee
Consultation Groups (ECG) across ourinternational locations provide our people
with a platform to share their views
and give them a voice at the highest
level of the organisation. We encourage
the ECG to share their opinions on any
topic they feel necessary, to ensuretransparent and fair conversations are
happening within Admiral Group, and theirconversations are regularly debated at
the Group Board. In 2023 there have beenfour ECG meetings in the UK and many
more across our European operations,addressing topics such as career
progression, the cost of living crisis, andour sustainability approach.
As well as the ECG, we engage across thegroup with multiple channels, such as
regular one to ones with line managers,
Intranet blogs and articles, colleague
surveys, feedback initiatives such as ‘
Ask Milena’ and ‘Have your say’, and our
global participation in the Great Place
To Work® initiative.

Strategic Report

Our ambition is to be oneof the best places to workin the world.

Learning and development

One of our five newly-createdsustainability working groups (see page 57
for more information) focuses on people,
learning, and development, with theaim of educating colleagues on a rangeof sustainability topics such as climatechange and sustainable consumption.
The goal is to support colleagues tomake changes that will have long-lasting,positive impacts on our communityand planet.
Our specialised Learning andDevelopment teams act as the coreof our training and support across theGroup. We believe that giving our people
widespread excellent opportunities
to learn and grow elevates our cultureof helping people to love what they
do, and ultimately makes our businessbetter. Our learning tools include internal
leadership programmes and development
hubs, as well as mandatory training incore areas.

In 2023 we have made over 5,000 courses
available on our internal development
hub for our UK colleagues, plus over
10,000 courses available globally to
our colleagues via LinkedIn Learning.
We run international, Group-wide
programmes such as Get Discovered,
aimed at supporting our next generationof female leaders. In 2023 a group of 23
female colleagues took part, getting theopportunity to extend their network
widely and have mentorship support
from some of our most successful leadersacross the Group.
Our new performance management
tool launched in 2023 across our UK
and European businesses, providing ourcolleagues with better tools to empower
their careers, training and progress.
We also continued work on improving
global mobility across the group. In 2023
we set up new global mobility guidelines
and policies, offering more central support
to our colleagues with the aim to aiding
the future mobility of colleagues acrossour entities, as well as making it moreaccessible to our people.

 Read more about our awards on page 13

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

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Strategic Report

Sustainability
continued

Our BusinessOur net zero ambition

We strive to help more people look after
their future, which includes contributing
to global efforts on climate resiliencethrough limiting our impact upon theplanet, as best we can.
In 2021, Admiral Group formallycommitted to achieving net zero
greenhouse gas emissions by 2040 and
to cut these emissions in half by 2030.19
By knowing our market-based
emissions we gain greater control over
our operational footprint. We havedemonstrated this via our UK Scope 2
emissions, which we have reduced to zero.
This is due to purchasing 100% of our UK
energy from renewable sources in 2023.
Across the Group, we purchased 77% of
our energy from renewable sources in
2023, up 8% from 2022.

Greenhouse gas (GHG)
emissions from operations

In 2023 we were on track to reduce ouroverall Scope 1 and Scope 2 emissions by
33%, continuing the downward trend.
However, due to a one-off fugitive gas
leak, this was not achieved.

During August 2023, our Admiral GroupHouse office in Swansea experienced aone-off emissions event during building
servicing by a third-party vendor.
During the event, a fire suppression
system designed to protect our data
centres was activated, causing a fugitive
gas leak of 295kg of gas equalling 988.25
tonnes of carbon dioxide equivalent(tCO2e). Due to this event, we saw anincrease in our combined Scope 1 and2 emissions of 26% compared to theprevious year, despite the 33% fall in other
underlying emissions.
This is the last of our office locations to
use this type of refrigerant gas in the
UK. The refrigerant gas system will be
replaced in 2024, as planned. Otherwise,
we continue to ensure that changes inoperational activities are consistent with
our sustainability objectives. This includes
our environmental and social targets, andhow these are seen by agencies outsideof Admiral.
Successes from our internal
activities include:• Offsetting emissions by purchasing
Gold Standard carbon offsets
since 2019
• Purchasing electricity in the UK from
100% renewable sources at all sites• Our Cardiff headquarters is BREEAM
Excellent rated and has photopholtaics
which feed electricity back into the grid

• We have closed 396,000 sq ft ofoffice space in the last 3 years,
which has significantly reduced ourcarbon footprint• We are installing improved Building
Management Systems (BMS) to
improve the data reporting and adjust
controls accordingly.

Climate impact methodology

In 2017, the Task Force on Climate-related
Financial Disclosures (TCFD) defineda climate-related risks and opportunities
classification. We have used this as
our starting point for our qualitative
methodology to identify climate risks andopportunities that might impact AdmiralGroup. We assess these risks using ourexisting Emerging Risk Matrix.
The output of individual assessments isan “expected magnitude”, assessed acrossthree distinct timeframes (0-5 years,
5-10 years, and 10+ years). We apply
this methodology to all our current andpotential future lines of business, ouroperations, and our investments. We also
consider existing and emerging regulatory
requirements related to climate change.
Results of this assessment are disclosed in
our annual TCFD report (see page 73).
To quantify the impact of climate-related
issues, we conducted two climate change
scenarios from the Network for Greening
the Financial System (NGFS) 2022 phaseIII. Results of these scenarios are disclosed
in our annual ORSA report (see page 109).
We are continually striving for
improvement in evaluating our impact
on climate change. We consistently aim
to improve our methodology by working
with third parties to help ensure we arematched to industry developments andstandards. In 2023, we submitted our
proposal for Science-Based Targets (SBTs)
to the Science-Based Targets Initiative
after validating past years’ emissions with
Carbon Intelligence, an external advisory
body. Setting SBTs will help us set a clearly
defined path to reduce emissions inline with Paris Agreement goals. We willdevelop further targets and updates
once validated.

Therefore, for 2024, we aim to draft andimplement our net zero transition planby leveraging existing work, getting
our SBTs independently verified, andincluding the potential impacts of ouridentified risks and opportunities on our
financial statements.

Responsible investment

Admiral Group has a responsible
investment policy in recognition of ourduty to protect the interests of ourcustomers, society, and environment
when investing the premiums we collect.
Our investment portfolio strategy
is focused on Net zero by 2040 toachieve real economic carbon emissions
reductions. Admiral Group follows theInstitutional Investors Group on Climate
Change (IIGCC) Net zero Framework.
This guides how we decarbonise a range
of investments we hold.
In 2023, with the help of third parties,
we revamped our Environmental, Social,
Governance (ESG) reporting and reviewed
our carbon emissions methodology.
We monitor progress towards ourinvestment targets by regularly tracking
and reviewing ESG figures and statistics
and this ensures they remain themost relevant.
We are confident in our approach tosustainable investment as we continue toreposition our portfolio to invest in more
assets that reduce carbon emissions andcontribute positively to the environmentand society. Examples of these include
investments in green bonds andrenewable energy infrastructure.

Sustainable procurement

Admiral Group has embedded
sustainable business practices acrossall procurement processes. Our due
diligence questionnaire asks questions
related to the environment, financial
crime, data protection, and modern
slavery, and ensures suppliers arealigned to our sustainable procurement
standards. Suppliers are risk assessed
throughout the supplier lifecycle process.
Where suppliers’ responses demonstrate
no policies or procedures, Admiralissues an assessment to the supplierto capture further information and toencourage improvements.
 Read more about Admiral’s sustainableprocurement processes in the TCFD reporton page 73

Admiral Group’s contract management
system allows our procurement team tobetter assess the procurement categoryof the supply chain risks. This allows forincreased visibility throughout the supply
chain, ensuring we effectively assess thebusiness relationships with suppliers.

Regular shareholder engagement

Shareholder engagement fosters anunderstanding of Admiral Group’s
strategy and investment case.
It allows us to explain the businessand strategic decisions and rationale
whilst providing opportunities forshareholders to comment and challengebusiness priorities.
Admiral’s management team actively
engages with the Group’s shareholders topromote open and transparent dialogue.
In 2023, we hosted an investor day in ourTy Admiral Cardiff office which allowed
investors to meet management andbetter understand Admiral’s culture
and the key to its success. One-toone management meetings, annual
Corporate Governance meetings with our
Board Chair, IFRS 17 updates, and othermeetings continued in 2023.
 Read more about shareholder engagementin the Governance section of the reporton page 136

In the UK in 2023, we have engaged
with our motor supply chain partners
through forums on topics such as electricvehicles, carbon emissions reduction, andcircular economy.
 Read more about Admiral’s stakeholder
engagement with our suppliers and partners
in our Section 172 on page 95 Read more about our responsible investment
portfolio in the TCFD report on page 73

Investment portfolio MSCI rating ofAA

19 Proposed baseline year for emissions cuts is 2021, still tobe verified by SBTi.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

We strive to build successful
businesses with operational
resilience and deliver on bothfinancial and non-financial
targets.

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67

Strategic Report

Sustainability
continued

Our Society
Our community investment strategy

We have always strived to make positive
impact in our communities, and in
2023 we continued to reach this goal
through external partnerships andphilanthropic giving.

• Social mobility and reduced inequalities

In line with our business purpose, ‘to help
more people look after their future’, ourstrategy includes:• Employability• Educational opportunities• Financial inclusion• Sports, arts and culture• Partnerships

25%
increase in people worked with throughthe Jesus College access programme.

19%
increase in access specific events from2022 thanks to the Admiral 2023 donation.

Supporting
PEOPLE INTO
JOBS WITH
GENERATIONAs a large employer across several
countries, we want to help improve
our communities in a sustainable andresponsible way. Our approach to affecting
positive change is centred around skills
development and providing more people
with access to employment, helping themlead more sustainable and inclusive lives.
We have partnered with expert charities
and organisations across the world who
specialise in supporting people into long
lasting and meaningful employment,
reducing skill gaps in local economies.
We are proud that the demographic ofpeople we’ve supported ranges fromyoung people to ex-offenders, females intech to females in construction, disabled
adults to those individual most distantfrom employment opportunities.

Around the world, Generation prepares
individuals facing unemployment tojoin or re-enter the workforce througha career-launching job that provides
economic mobility with positive
intergenerational effects. Thanks to
the generous support from Admiral,
Generation Italy has supported learners
like Gianmarco whose inspiring stories
are shared below.
Before stepping into the transformative
world of Generation Italy’s program,
Gianmarco was navigating
unemployment, with brief stints as
a warehouse worker. Yet, deep inside,a spark for the realm of IT was always
glowing. He chose the Junior Java
Developer course, his enthusiasm
fuelled by a friend’s success story
in the same field.

Admiral Group plc Annual Report and Accounts 2023

Impact hours

Alongside our community investment,
our Impact Hour programme gives eachof our colleagues across the world two
paid volunteering days a year for themto use to make positive impacts intheir communities.
Globally, from January to December
2023 our colleagues have volunteered
over 14,000 Impact Hours to theircommunities reviewing CVs, sharing skills
and mentoring, planting trees, litter
picking, working with care homes andworking at animal shelters to name a few.
In 2023 we have continued our work tofind and build meaningful relationships
with organisations for our colleagues
to volunteer with. We aim to build andencourage more bespoke opportunities
for our colleagues across Admiral Group.
Throughout 2023, we have encouraged
colleagues to share their skills throughmentoring programmes, teachingpresentations and inspirational talks
to people across our community. As an
example, some of our senior managers
helped facilitate ‘Admiral 5–9 Club’, aprogramme for female entrepreneurs that
we funded with Welsh ICE.

“The educators were truly extraordinary.
I found the soft skills lessons especiallyinvaluable. They’re not just theoretical –I’ve been applying them daily in my job.
This emphasis on behavioural skills sets
Generation’s programme apart; I’ve neverencountered it in any other Java course.”
When Gianmarco completed the course,
Reactive Almaviva, a Company involved
in guiding the digital transformationof the finance world, recognised
Gianmarco’s potential and offered him
a position. There, he’s been refining
his expertise and scaling professionalheights, “I’ve recommended this course
to a friend because Generation provided
me with the essential foundation to diveinto this sector. Thanks to Generation,
I joined a prestigious Company like
Reactive Almaviva. This course has beena turning point in my life.”

Empowering
FEMALE
FOUNDERS

Partnerships

Partnerships with philanthropic andimpact organisations help us to increase
the breadth and depth of the impact
we can make with our community
contributions. In 2023 we are proud tohave invested over £1.4 million to support
people outside of our organisation into
sustainable employment. We have done
this by partnering with experts suchas Generation.
In the UK, 2023 was our third year ofpartnership with University of Oxford’s
Jesus College on their Welsh accessinitiative, which aims to reach moreacademically gifted young people
across the country who are currently
underrepresented at Oxford and otherleading universities across the UK.
Through our ongoing support, the accessand outreach teams have been able tocontinue their work improving theiraccess programmes, but also finding new
ways to engage with young people.
Internationally, our partner Generation
is a non-profit organisation striving totransform the education system into an
employment system. Over 2023 we havepiloted programmes across the world,
supporting programmes in technology
in Italy and programmes in technology,
service, sales, and health sectors in India.

Global emergency fundIn 2022, we set up our global emergency
fund, which is dedicated to making
prompt donations to people andorganisations who need them themost around the world. During 2023,
we have given over £400,000 to globalorganisations such as International Red
Cross and the Disasters Emergency
Committee (DEC), ensuring that funds are
distributed to those most in need as soon
as possible. You can read more on about
our global emergency Fund on page 21.

Environmental engagement

In 2023 we authorised a donation to theenvironmental organisation Stump Up For
Trees, part-funding carbon sequestration
via the planting of 2.75 hectares of new
woodland creation. The donation enabled
us to increase tree cover at sites acrossthe Bannau Brycheiniog, Brecon Beaconsand South Wales. Along with Stump Up
For Trees, we furthered our donations toenvironmental conservation charity Sizeof Wales. During the past nine months,
the Size of Wales project has worked witha community in Boré, Kenya to protect
four of the kayas (sacred forests) in thelocal area. Over 29,500 native species
seedlings have also been planted by Kayacommunity members. The project has
engaged local unemployed youth in forest
restoration activities, such as building fire
breaks, while supporting them to earn aliving. The project therefore had a double
impact in helping more people look after
their future.
We believe in the importance of
demonstrating responsible businessbehaviour with regards to theenvironment, not just because our
stakeholders demand it, but because itis the right thing to do.

Colleague-led donations

Our community and match fundinitiatives continued in 2023, andfrom our colleagues’ nominations we
supported over 200 organisations with
grants, spending over £100,000 in total
with the majority going towards sports
and art clubs. As a business, we offer ourmatch fund for colleagues to request
their fundraising efforts be matched by
the business. In 2023, we have helped atotal of 59 fundraisers totalling around£64,000 going towards causes close to
our colleagues’ hearts.

As part of our ongoing commitment
to help people into jobs, we recently
worked with the Welsh Innovation
Centre for Enterprise (ICE) to launch
the Admiral 5-9 Club for Female
Founders, a programme designed
to empower 30 ambitious female
entrepreneurs who want to turn theirbusiness ideas into reality.
The Admiral 5-9 Club sets out toprovide female entrepreneurs withthe opportunity to strengthen theirbusiness skills without having tosacrifice their daytime commitments.
A total of 38 entrepreneurs took partin the programme, with businesses
ranging from doggy daycare centres
to artificial intelligence and medical
robotics. Each week different speakers
from inside and outside of Admiral gave
presentations on key business topics.
Each entrepreneur was also allocatedan ‘Admiral Mentor’, who used their
Impact Hours to dedicate time to help
provide guidance and key advice totheir mentee.
On conclusion of the nine weeks’ course,
the entrepreneurs presented theirbusiness ideas to a ‘Dragons Den’-stylepanel. As a result of this partnership,
34 women were inspired to pursue
their business and entrepreneurial
goals. A total of 13 new businesses havealready started trading and growing
thanks to the support and interventionof the Admiral 5-9 Club.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report‘Together For Better’ is ourcommitment to transforming
futures outside of ourorganisation.

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Strategic Report

Sustainability
continued

The UN and the World Bank consider insurance itself to be a product that underpins financial inclusion, contributing directly to
SDG 8 of Decent Work and Economic Growth and SDG 9 of Industry, Innovation, and Infrastructure. By protecting against risks,
insurance increases the capacity of individuals, households, and businesses to absorb financial shocks and continue participation in ahealthy, inclusive economy. In line with our purpose and our work to lower our impact on the environment, we contribute to several
other SDGs, as outlined in the table below.

External Engagement
Contributing to the UN Sustainable Development Goals

SDG 4: Quality Education

SDG 10: Reduce Inequalities
TargetContribution

10.2: By 2030, empower and promote the social, economic andpolitical inclusion of all, irrespective of age, sex, disability, race,
ethnicity, origin, religion or economic or other status• Our workplace is a safe environment for colleagues tobe themselves, access what they need, and have equal
opportunities across our Group. In 2023, 94% of our colleagues
around the world stated that they believe Admiral Group is
a diverse and inclusive employer

TargetContribution

4.3: By 2030, ensure equal access for all women and men toaffordable and quality technical, vocational and tertiary education,
including university• We help eliminate gender disparities by supporting womenin business through internal programs such as ‘Get Discovered’

10.3: Ensure equal opportunity and reduce inequalities of outcome,including by eliminating discriminatory laws, policies and practices
and promoting appropriate legislation, policies and action inthis regard• Our Emerging Talent Programme develops vocational skills
and creates opportunity by encouraging internal mobility

10.4: Adopt policies, especially fiscal, wage and social protection
policies, and progressively achieve greater equality.

4.4: By 2030, substantially increase the number of youth and adults
who have relevant skills, including technical and vocational skills,
for employment, decent jobs and entrepreneurship
4.5: By 2030, eliminate gender disparities in education and ensure
equal access to all levels of education and vocational training forthe vulnerable, including persons with disabilities, indigenous
peoples and children in vulnerable situations.

• Our community investment helps those with vulnerable
characteristics achieve gainful employment. Examples include
our partnerships with Women Unlimited, Code First Girls, The
Princes Trust, Llamau and The Wallich. We helped >2000 people
into jobs in 2023. For more information please see page 66‘Our Society’.

TargetContribution

8.2: Achieve higher levels of economic productivity throughdiversification, technological upgrading and innovation• Diversification and innovation are integral to our strategy.
In 2023 we further expanded outside of our UK Motor insurance
operations by growing our Home, Pet and Travel Insurance
businesses, as well as our loans businesses. We supported
technological upgrades and innovation in mobility by becoming
a market-leading underwriter of electric vehicles. We support
decent job creation via our community investment, which
generates gainful employment as discussed under SDG4.

8.4: Improve progressively, through 2030, global resource efficiency
in consumption and production and endeavour to decouple economic
growth from environmental degradation, in accordance with the 10-year
framework of programmes on sustainable consumption and production,with developed countries taking the lead.

• Our charity partners help those in economic need into
employment, as well as helping women into gainful employment
in industries which are historically excluded such as construction
and tech. For more information see ‘Our Society’ section on
page 66.

SDG 11: Sustainable Cities and Communities

SDG 8: Decent Work and Economic Growth

8.3: Promote development-oriented policies that support productive
activities, decent job creation, entrepreneurship, creativity andinnovation, and encourage growth of micro, small and medium-sizedenterprises, including through access to financial services• Internal programs that promote equality and a safe working
environment for all include our Get Discovered Programme forwomen in business, our strong internal social mobility processes,
and our pledge to be a neurodiversity-friendly employer. For more
information on these initiatives see our 2023 Sustainability Report

TargetContribution

11.1: By 2030, ensure access for all to adequate, safe and affordable
housing and basic services and upgrade slums• As mentioned under SDG 9, our home insurance product supports
access to housing through financial inclusion by lowering therisk associated with home ownership, including ever-increasing
extreme weather events such as flooding and storms

11.5: By 2030, significantly reduce the number of deaths and thenumber of people affected and substantially decrease the direct
economic losses relative to global gross domestic product causedby disasters, including water-related disasters, with a focus onprotecting the poor and people in vulnerable situations
11.6: By 2030, reduce the adverse per capita environmental impactof cities, including by paying special attention to air quality andmunicipal and other waste management.

• Our UK electric vehicle insurance product mentioned under
SDG 8 allows greater accessibility to more sustainable methodsof transport, which helps reduce the environmental impact oftransport on global climate and local air quality• Our Global Emergency Fund has helped communities respondto natural disasters. In February 2023, we donated £250,000 to
the DEC’s Turkey-Syria earthquake appeal, as well as £30,000
to help the Halifax wildfire response in May of 2023.

SDG 9: Industry, Innovation and Infrastructure

SDG 13: Climate Action

TargetContribution

TargetContribution

9.1: Develop quality, reliable, sustainable and resilient infrastructure,including regional and transborder infrastructure, to support
economic development and human well-being, with a focus onaffordable and equitable access for all• Our motor insurance product helps make vehicle use andownership safer and more financially accessible for more
people, ultimately mobilising them to have better access towork, school, healthcare, and other essential parts of life which
promote wellbeing

13.1: Strengthen resilience and adaptive capacity to climate-related
hazards and natural disasters in all countries• Greater adaptive capacity to climate-related hazards is gainedby our customers through our home insurance product lowering
the risk associated with home ownership. This includes initiatives
such as our Storm Hub, which educates and raises awareness ofthese hazards by sending weather warnings and information,so our customers are empowered to better react and takeproactive measures.

9.2: Promote inclusive and sustainable industrialization and, by 2030,
significantly raise industry’s share of employment and gross domestic
product, in line with national circumstances, and double its share in
least developed countries
9.4: By 2030, upgrade infrastructure and retrofit industries to makethem sustainable, with increased resource-use efficiency and greater
adoption of clean and environmentally sound technologies andindustrial processes, with all countries taking action in accordancewith their respective capabilities.
Admiral Group plc Annual Report and Accounts 2023

• Our household insurance also helps to make housing financiallyaccessible for more people by lowering the riskof home ownership• With our newfound success as an underwriter of electricvehicles in the UK, we support our customers as they adopt
more efficient and sustainable forms of transport, lowering thebarriers associated with upgrading to an electrical vehicle.

13.3: Improve education, awareness-raising and human andinstitutional capacity on climate change mitigation, adaptation,
impact reduction and early warning
13.b: Promote mechanisms for raising capacity for effective
climate change-related planning and management in least
developed countries and small island developing States, including
focusing on women, youth and local and marginalized communities.

• We promote resilience to climate-related hazards through ourcommunity initiatives, such as a Sustainable Land Management
and tree planting project in Boré, Kenya which also employed
women and local unemployed youth.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

The Sustainable Development Goals (SDGs) are a set of 17 goals developed by the United Nations. The SDGs define sustainability
priorities and aspirations for the world to achieve by the year 2030. The goals encompass global societal and environmental concerns.
Admiral Group supports these important goals.

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Strategic Report

Sustainability

Streamlined Energy and Carbon Reporting (SECR)

continued

Sustainability Ratings and Rankings
Our performance in 2023

In 2023, we maintained our AA ranking
on MSCI.
Our Sustainalytics score decreased
due to changes in ranking for ProductGovernance and Data Protectionand Security.
We saw improvement on our‘Environmental Dimensions’ scoring in the
Dow Jones Sustainability Index. However,
the overall Dow Jones score dropped
slightly compared to 2022. This was due
to stricter evidence requirements thanprevious years.

MSCI ESG ratingassessment20
2023: AA
2022: AA
2021: A

Sustainalytics
ESG Risk Rating21

2023: 24.3
2022: 22.3
2021: 21.0
31st percentile subindustry
ranking (2022: 21st)

Dow Jones
Sustainability Index
2023: 41/100
2022: 47/100
2021: 37/100

While we have included previous scoresfrom the Tortoise Responsibility100
index, they have halted their scoring
as of 2023. As such, we will not include
it in future reports.

Restatements

In our 2022 Annual Report, we mistakenly
published our 2021 Sustainalytics ratingof ‘21’ as our 2022 rating, and our2022 Sustainalytics rating of ‘22.3’ asour 2021 rating. Also, the Dow Jones
Sustainability Index for 2022 should haveread ‘47/100’. We have amended thesein our 2023 report.

CDP Climate Score
DISCLOSURE I NSIGHT ACTION

2023: B
2022: D2021: C

TortoiseResponsibility100 index
2023: HALTED
2022: 63rd out of 100
2021: 21st out of 100

20 The use by Admiral Group of any MSCI ESG research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship,endorsement, recommendation, or promotion of Admiral Group by MSCI. MSCI services and data re the property of MSCI or its information providers, and are provided ‘as-is’ and without warranty.
MSCI names and logos are trademarks or service marks of MSCI.
21 Copyright ©2022 Sustainalytics. All rights reserved. This report contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of
Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor aninvestment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/
legal-disclaimers
22 A decile rank of 1 indicates high relative performance versus a decile rank of 10 which indicates poor relative performance.

Admiral Group plc Annual Report and Accounts 2023

Energy and carbon emissions

During the reporting period January2023 to December 2023, our measured
Scope 1 and 2 emissions (market-based)
totalled 2,092 tCO2e. Reported figuresfor 2022 and 2023 comprise of anadditional column omitting the one-off
event activation of a fire suppression
system which has impacted our footprint
and without it, would have resulted ina market based 33% decrease in Scope
1 and 2 carbon emissions:

FY 20221
Emissions (tCO2e)

FY 2021 (Baseline)1
Emissions (tCO2e)

ISS ESG performance2023: C2022: C2021: C4th industry decile rank
(2022: 3rd)22

Strategic Report

We welcome independent
external assessment to arange of Environmental,
Social, and Governance (ESG)
ratings providers. We do thisas a way to engage with thewider industry and track
our performance on various
sustainability topics.

This statement has been
prepared in accordance with
our regulatory obligation
to report greenhouse gas(GHG) emissions pursuant
to the Companies (Directors’
Report) and Limited Liability
Partnerships (Energy andCarbon Report) Regulations
2018 which implement
the government’s policy
on Streamlined Energy
and Carbon Reporting.

Scope 1
Scope 2 – location-based
Scope 2 – market-based
Total Scope 1 & 2(location-based)
Total Scope 1 & 2(market-based)
Scope 1 & 2 intensity per FTE– market-based
Scope 1 & 2 intensity per FTE– location-based
Scope 1 & 2 intensity per
headcount3 – market-based
Scope 1 & 2 intensity per
headcount – location-based
Scope 3

FY 20232
Emissions(tCO2e)FY 2023
Emissions (tCO2e)UK

Rest of
world

Total

Total
excluding
leak

1,465
1,312
0

42
606
585

1,507
1,918
585

519
1,918
585

3,047

2,777

648

3,425

2,436

1,094

1,660

1,467

627

2,092

1,104

0.07

0.27

0.14

0.18

0.13

0.16

0.08

0.36

0.26

0.27

0.26

0.33

0.14

0.26

0.19

0.32

0.19

0.07

0.26

0.14

0.17

0.13

0.15

0.08

0.32
517

0.34
914

0.25
530

0.26
753

0.25
1,366

0.32
807

0.13
1,170

0.25
1,977

0.18
1,977

UK

Rest ofworld

UK

Rest of
world

Total

917
1,750
14

12
1,175
1,175

929
2,925
1,189

Total

553
1,400
13

7
1,087
1,087

560
2,487
1,100

2,667

1,187

3,854

1,953

1,094

932

1,187

2,119

566

0.13

0.34

0.20

0.37

0.34

0.12
0.35
397

1 	Restated SECR figures using 12 months data and evidence (previously reported Admiral Group SECR in 2022 annual report was based on 9 months data and evidence and 3 months modelled).
2	Adjusted to show the emissions without the Scope 1 fugitive gas leak (gas suppression activation).
3	We will be using headcount for our intensity ratio from 2023 onwards. Headcount refers to the numbers of individual employees. FTE refers to the “full time equivalent” of employees when taking
into consideration part time workers.

Admiral Group plc Annual Report and Accounts 2023

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73

Strategic Report

Streamlined Energy and Carbon Reporting (SECR)

Task Force on Climate-related
Financial Disclosures (TCFD)

continued

Explanation of movements

Overall, our Scope 1 and 2 (market-based)emissions have increased by 26% against
last year. Our Scope 1 and 2 (locationbased) emissions have increased by 12%
against last year. This was due to a firegas suppression system activation used
to protect data centres from business
impact and is reported under a fugitive
gas leakage during the year. This is thelast location to use this type of refrigerant
gas in the UK and will be replaced in
2024. The fire suppression fugitive gas
leak of 295kg of gas (type HFC-227ea)
and equalled 988.25 tCO2e. Without thisleak, our overall Scope 1 emissions would
have decreased by 7% to 519 tCO2e.
For further context, without the fugitive
gas leak, our Scope 1 & 2 market-based
emissions would have decreased by 33%
to 1104 tCO2e.
The Scope 1 increase was partially offset
by the inactivity of one office in the
USA and two offices in the UK. Due tothe pandemic and subsequent Return
To Office and hybrid working, we haveconsolidated offices which were being
used into a more efficient portfolio thathas resulted in a reduction in numbersof buildings and space. Though we havemaintained a hybrid work model, thepast year has seen an increase in staff
working in the office and subsequently

an increase in utilities consumption.
To mitigate the uplift in consumption,
we made efficiencies on the existingbuilding management system at
our two largest offices in Cardiff andSwansea. The Building Management
System upgrade for the two offices
will be completed in H1 2024 and willfurther optimise data, monitoring andperformance. In addition to improving thecontrols and use of Scope 1 & 2 utilities,
we have been actively disposing of ourproperty portfolio which has further
contributed to the 33% decrease.
Another increase in Scope 1 is due toelephant.com and EUI Halifax reportingon Company cars from January 2023.
In September 2023, we removed leased
vehicles in the UK and intend to the samein Halifax by the end of 2024.

Methodology

We quantify and report our organisational
GHG emissions in alignment with theWorld Resources Institute’s Greenhouse
Gas Protocol Corporate Accounting andReporting Standard (revised version) andin alignment with the Scope 2 Guidance.
We consolidate our organisationalboundary according to the operational
control approach, which includes all
our operations and sites. The GHG
sources that constituted our operationalboundary for the year are:
• Scope 1:– Natural gas combustion– Diesel vehicle combustion• Scope 2:– Purchased electricity - standard– Purchased electricity - renewable

In 2023 we purchased 77% of ourelectricity from renewable sources, anincrease from 69% in 2022. Scope 2(market-based) emissions for the UK have
reduced to zero due to purchasing 100%of our electricity from renewable sources.
We have also had three buildings in theportfolio move over to fully renewable
resources which has contributed to the
33% decrease in Scope 1 & 2 emissions(excluding fugitive gas leak).

• Scope 3:

Our Scope 3 emissions are comprised ofbusiness travel, waste, water, and Fueland Energy-Related Activities (FERA)
not included in Scope 1 or Scope 2.
Our measured Scope 3 emissions totalled
1,977 tCO2e, an increase of 54% from lastyear due to a large increase in businesstravel emissions.

The Scope 2 Guidance requires that wequantify and report Scope 2 emissions
according to two different methodologies(“dual reporting”): (i) the location-based
method, using average emissions factors
for the country in which the reported
operations take place; and (ii) the marketbased method, which uses the actual
emissions factors of the energy procured.

During the year, our total fuel andelectricity consumption totalled
11,564,413 kWh, a decrease of 21% fromlast year due to reduction in electricity
consumption. 77% of fuel and electricity
consumption was consumed in the UK.
The split between fuel and electricity
consumption is displayed below.

– FERA– Waste– Water– Business Travel
In some cases, where data is missing,values have been estimated using either
extrapolation of available data or datafrom the previous year as a proxy.

FY 2022
Energy consumption (kWh)Electricity
Fuels1Introduction
Recognising Admiral’s partin tackling climate change,
Admiral has reported in linewith the FCA’s listing rule
LR 9.8.6R and included in
its annual financial reportdisclosures consistent withrecommendations of the
Task Force on Climate-related
Financial Disclosures (TCFD)
since 2019.
This has provided transparency aroundthe ways in which climate change impacts
the Group now and will do in the future.
In addition, Admiral also reports on the
Climate-related Financial Disclosure (CFD)
requirements – introduced in 2022 as partof the UK Government’s Greening Financeroadmap. The sections below therefore
involve Admiral making disclosuresconsistent with all 11 recommendations
and recommended disclosures fromthe TCFD framework, and with all eight
CFD requirements (as required under
the Companies (Strategic Report)(Climate-related Financial Disclosure)
Regulations 2022 sections 414CA and414CB of the Companies Act 2006).
During 2023 Admiral has madeimprovements to comply withrecommendations and recommended
disclosures relating to TCFD Strategy
disclosure b – “describe the impact ofclimate-related risks and opportunities
on the organization’s businesses,
strategy, and financial planning”,
and to Metrics and Targets disclosurec – “describe the targets used by theorganization to manage climate-relatedrisks and opportunities and performanceagainst targets”.

• Various activities have been enhanced
to enable Admiral to better evidence
the objectives of TCFD Strategy
disclosure b. To quantify the impact ofclimate-related risks and opportunities,
the Company has run climate-related
stress and scenario testing (SST), andincreased the extent to which physicalrisks arising from climate-related eventsare considered in the financial planning
process – with projected loss ratios for
Admiral’s Household business including(an increased) allowance for weather
events with a combined target overa five-year period. Indeed, in order tomeet the increased cost, frequency, andseverity of claims (including weatherrelated events arising from climatechange) the Company has proactively
increased average premiums in UK
Car and UK Household businessduring 2022 and 2023, and has also
implemented localised rate increases
in the US motor business. Work willcontinue to be undertaken during2024 to consider the potential impactof additional climate-related metrics
and targets in the Company’s financial
planning and accounting activities.
Finally, the “Diversification” and“Evolution of Motor” pillars of the Groupstrategy, which could mitigate someof the climate-risk faced by the Group(and capture upside opportunities),
form a key part of the annual strategicplanning and dynamic businessplanning processes.

• The submission of Admiral’s GHG
targets to the Science-based targets
initiative (SBTi) in September 2023
represents a clear development inclimate-related metrics and targets
consistent with cross-industry
standards, as required by therecommended disclosures within
TCFD Metrics and Targets disclosurec. This includes scope 1, 2, and 3 GHG
emissions (category 1-14 – supply chain
and category 15 – investments) withintermediate performance targets
against a 2021 baseline. Such targets
represent the key environmental
performance indicators required toassess Admiral’s progress against its
net zero ambitions. Other key metrics
already used to assess the performanceof Admiral’s products and services
against climate-related risks include
key inputs into pricing and reserving
decisions, and information on “weatherrelated losses following natural
catastrophes” for the UK Household,UK car, and US motor businesses.
Reinsurance programmes are in place tomitigate these losses, and the adequacyof Admiral’s reinsurance programme,
the evolution of losses due to natural
catastrophes, and the performance of
the Company’s pricing, reserving, andclaims management approaches, as wellas the metrics and targets mentioned
above, are all monitored and reported
to the Group Risk Committee (GRC) and
the Group Board in various reports.
Further discussion and information are
included in the relevant sections of thereport and are signposted as such.

FY 2023

UK

Rest of
world

Total

UK

Rest of
world

Total

7,239,000
2,856,000

4,495,000
30,00011,734,000
2,886,000

6,334,403
2,604,942

2,433,641
191,428

8,768,044
2,796,370

1 Natural gas and transportation fuels (petrol and diesel).

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Admiral Group PLC report both Scope 2
market-based emissions andScope 2 location-based emissions.
A location-based method reflects theaverage emissions intensity of grids onwhich energy consumption occurs (using
mostly grid-average emission factor
data). A market-based method reflects
emissions from electricity that companies
have purposefully chosen (or their lackof choice). Admiral report both figures
to demonstrate the variance between
the two reporting methods and toreport against Admiral’s science-basedtarget, baselined on Scope 2 Marketbased emissions.

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75

Strategic Report

Task Force on Climate-related
Financial Disclosures (TCFD)
continued

Management andmanagement committees

Governance
Board and Board Committees

presentations (e.g., ORSA Report) or
discussions on environmental, social andgovernance (ESG) topics.
Admiral’s climate and sustainability
governance structure as well as roles andresponsibilities are summarised in the Table
1. Such arrangements are proportionate
to the nature, scale and complexity of theCompany’s operations and business.

Table 1. Board and Board Committees covering climate-related risks and opportunities.
Committees

Roles and responsibilities

Activity during 2023

Group Board• The Group Board is ultimately responsible forunderstanding the Group’s impact on the environment,
as well as the impact of a changing climate on theGroup, and for agreeing how this is considered in thecontext of the Group’s governance structure, strategy,
risk management, and business outcomes, including
performance against business objectives• During 2023, there were seven scheduled Group Board
meetings and some ad hoc meetings. Specific focus wasgiven to climate-related change during four meetings.
For example, in April 2023, the Group Board received aformal update on climate change including progress madeacross several climate-related areas• The Group Board approves the Group ORSA Report,
which includes consideration of climate-related risks
and opportunities alongside SST.

Group Risk
Committee• The GRC has delegated authority from the Group
Board for overseeing risk management activities, and istherefore responsible for reviewing climate-related risks
and opportunities• Developments in relation to climate-related risks andopportunities are included in the CRR and the CRO Report
where appropriate, which are both presented at each of
the five scheduled GRC meetings annually (as well as atsome ad hoc meetings)• Dedicated agenda items allow a full update of climaterelated activities to be considered, including progress
towards goals and targets• Climate change considerations are also reported within
the ORSA Report, which is reviewed by the GRC before
being recommended for approval by the Group Board.

Group Audit
Committee• The Group Audit Committee is responsible for overseeing
climate-related financial disclosures under TCFD, and CFD,
as well as any climate-related audits (of which there was
one in 2023).

• In 2023 the Board requested and oversaw the submissionof GHG targets to the SBTi for official approval• The annual strategy review included a review of theCompany’s approach to sustainability including climate issues.
• During 2023, the GRC met nine times (five scheduled andfour ad hoc meetings) to review, manage and monitor
all aspects of risk management. Specific focus was given
to climate-related risks and opportunities during threemeetings. For example, in June 2023, the Committee
reviewed the development of Admiral’s EV offering tosupport the transition to a low carbon economy, andof Admiral’s carbon offsetting strategy. In addition, theCommittee reviewed and challenged progress towards
Admiral’s GHG targets• Throughout the year the Committee considered the impact
from named storms and other weather events (e.g., storms
Babet and Ciaran), as well as actions taken by Admiral tomitigate and manage the impact.

• In April 2023, the Committee reviewed the ‘Climate Risk’audit report produced by the Internal Audit Team providing
an independent opinion on key processes and controls inplace to manage and report climate risk
• The Committee reviews and approves several climate
related disclosures, including this report, the Streamlined
Energy and Carbon Reporting Regulation (SECR) report andthe annual Sustainability Report.

Investment
Committee• The Investment Committee is responsible for the
responsible investment strategy and support theCompany’s effort to achieve net zero by 2040.

Admiral Group plc Annual Report and Accounts 2023

Senior management from across theGroup have various responsibilities
relating to climate-related issues, andmost sit on appropriate fora, such as
the SSC or its five Working Groups.
The reporting at each forum allows
management to be informed ofclimate-related issues and to monitor
them closely.

The Group CRO has designated Senior
Manager and Certification Regime(SMCR) responsibilities in relation toclimate change, chairs the SSC, andis the day-to-day executive sponsor
of sustainability activities across theGroup. They are tasked with developing
Admiral’s Sustainability Team and ensuring
effective coverage of sustainability topics
across all lines of defence.
The Group CFO is responsible forinvestments, including responsible
investment and climate change
considerations. They are also responsible
for the reinsurance programme which
increasingly considers excess of loss coverfor extreme weather events.

The Group Enterprise Risk Management(ERM) Team monitors emerging risks
and Principal Risks and Uncertainties(PR&Us) and identifies and assesses
climate-related risks and opportunities.
The output is included in regular andad hoc Board and committee reporting.
The Group ERM Team, in conjunction
with the Sustainability Team, also
coordinates climate risk-related
work across the Group, including theidentification of climate-related risks,
their potential impact, and any resulting
opportunities. Management teams acrossAdmiral are responsible for managing
areas of the business which may affector be affected by climate change, andfor reporting progress to the SSC’s five
Working Groups and other committees.
They have a key role in identifying climaterelated risks in their respective areas.

Climate-related risks and opportunities
are typically articulated at Group level,although the materiality and potential
exposure of individual lines of businessare considered and actions relating tooperations, investments and products
are actually implemented at entity level.

Table 2. Management Committees covering climate-related risks and opportunities.
Committees

Roles and responsibilities

Activity during 2023

Group
Executive
Committee• This Committee is comprised of the Group CEO, CRO, and
CFO, along with the EUI CEO and other senior managers• In 2023, this Committee continued to operate as theexecutive-level forum covering climate-related initiatives
and propositions. For example, Admiral’s approach toembedding sustainability, material weather events, andthe development of Admiral’s EV offering, were discussed
during the year.

Sustainability
Steering
Committee• The SSC, which replaced the Climate Steering Groupand the Sustainability Working Group in 2023, provides
oversight, challenge, and guidance on the overall
programme of sustainability-related work (including
climate change) and ensures a joined-up approach acrossall Group functions and Group entities• The Committee is appraised of, and provides guidance on,
climate-related initiatives across the three focus areas ofoperations and supply chain, investments, and products
and services.

• The establishment of the SSC was approved by the Group
Board in October 2023 and the first meeting was held in
Q1 2024• Prior to establishing the SSC, guidance on the overall
programme of climate-related work, including discussionof risks and opportunities, was provided by the Climate
Steering Group, which met quarterly, with oversight fromthe Sustainability Working Group• It meets quarterly and covers discussions/outcomes(including climate-related risks and opportunities) fromfive Working Groups (covering operations, investments and •procurement, risk and compliance, customer and product,
people and communication) and developments from theSustainability Team.
•The SSC reports directly to the Group CEO, to whom any
key decisions are escalated and who provides updates to
the Group Board
The SSC is chaired by the Group CRO and is supported by
five Working Groups which are attended by representatives
from businesses and functions from around the Group.

• During 2023, the Investment Committee reviewed andchallenged several reports covering climate change(e.g., four reports monitoring the performance of the
responsible investment strategy, one report proposing
to update the integration of ESG considerations into the
responsible investment strategy and one report on climate
solutions and natural capital).
Admiral Group plc Annual Report and Accounts 2023

Strategic Report

The Admiral Group Board is responsible
for promoting the long-termsustainable success of the Group andhas ultimate oversight of climaterelated risks and opportunities.
Responsibility for reviewing climaterelated risks is delegated to the GRC andassociated disclosures are reviewed at theGroup Audit Committee.

Climate-related risks are embedded
within the business as usual (BAU)
risk management approach, and any
developments are reported within
regular committee reports including theConsolidated Risk Report (CRR) and the
CRO Report, as well as regularly scheduled
dedicated climate updates. In addition,
Boards and committees receive numerous
additional updates as part of other

During 2023 the governance surrounding
sustainability (and therefore climatechange) was further enhanced andembedded, not least by the appointmentof a Group Head of Sustainability incharge of ESG approach, building up
the Sustainability Team, and setting
up the new sustainability governanceframework with the establishment of the
Sustainability Steering Committee (SSC),
superseding the existing Climate SteeringGroup and Sustainability Working Group(see Table 2). Discussions/outcomes fromthe SSC are escalated to the Executive
Committee and to the Board and Board
Committees mentioned in Table 1 above.
The Group Head of Sustainability reports
ultimately to the Group CEO.

The Group CEO is the accountablesustainability representative for theGroup, with a remit that includes climaterelated risks and opportunities. The SSC
reports directly to the Group CEO.

76

77

Strategic Report

Task Force on Climate-related
Financial Disclosures (TCFD)
continued

Figure 1. Climate-related governance

Strategy

Admiral Group Board

Group Audit CommitteeGroup
Executive Committee

Group Risk Committee

Investment Committee

Sustainability
Steering Committee(i)	its impact on the environment;
andManagement andmanagement committee

Five working groups

Green TeamThe Green Team is an internal staff-led working group in operation since 2018. It looks at green initiatives, such as increasing
recycling rates and engaging Admiral’s staff on all aspects of climate-change and environmental matters including the Cycle
Solution scheme. The group is responsible for organising green events within the Company, in association with partners such as
Stump Up for Trees and Size of Wales. In 2023, the group organised Admiral Green Week with film writer Paul Goodenough as aguest speaker to present his book and the Rewriting Extinction project (a global collaboration to save species from extinction).

For further information see:Page

Sustainability Steering Committee
Board leadership and company purpose
The Group Risk Committee

57
125
168

Admiral Group plc Annual Report and Accounts 2023

When considering theimpacts of climate change,
Admiral recognises that
there are two components(double materiality):(ii)	the impact of climate changeon the Group and all its lines ofbusiness, on its revenues, costs
and via other non-financial risks.

Consideration of the company’s impact on
the environment and on people’s futures
is integral to Admiral’s purpose to help
more people to look after their future.
Always striving for better, together.”
Admiral has therefore committed toachieve net zero emission across all its
carbon footprint by 2040 and to achieve
net zero in operation emissions by 2030.
To consider the impact of climate changeon the Group, Admiral’s climate-related
efforts are aligned to three focus areas –operations and supply chain, investments,
and products and services – each ofwhich are potentially exposed to thethree components of climate-relatedrisks (transition, physical, and liability)
and opportunities, as defined by the TCFD
framework. During 2023, as agreed by
the Group Board, Admiral’s sustainability
approach has been formally embedded
into the Group strategy. To guide efforts
towards achieving the company’s net zerocommitment, the plan to transition toa low carbon economy includes:• Operations and supply chain:
Investment has been made to increase
Admiral’s capacity and capability to
manage sustainability topics (e.g.,building out the Sustainability Team),
improve Admiral’s governance ofclimate- and sustainability-related
topics (e.g., implementing the SSC
and its five Working Groups), and alignbusiness decisions to the company’s
net zero commitment. GHG targets
against a 2021 baseline were submitted
in Q3 2023 for validation by SBTi,
which will allow Admiral to track the
performance of its GHG emissions
reductions on an ongoing basis andtake tailored action as needed toachieve these targets and, later, thecompany’s net zero commitment.
Initiatives for further reducing theGroup’s operational footprint havebeen identified (e.g., mechanicaland electrical (M&E) changes toplant and building management
systems). The introduction of supply
chain risk controls in Admiral’scontract management system has
allowed the company to better

assess the procurement categoryof environmental risk, and will allow
Admiral to engage with key suppliers
to encourage them to reduce their
GHG emissions.
• Investments: ESG considerations
are embedded into the investment
approach, and since 2020 Admiral has
followed the Institutional Investors
Group on Climate Change (IIGCC) Net
Zero Framework to help guide thedecarbonisation of its investment
portfolio, set carbon reduction targets,and monitor the performance ofAdmiral’s investment metrics.
• Products and services: To manage thetransition to a low carbon economy,
the annual strategic planning andbusiness planning processes include
increased allowance for weather
events in projected loss ratios, as wellas the continued development of
the electric vehicle (EV) offering. The“Diversification” pillar of the Group’s
strategy further supports the transition
to a low carbon economy by developing
and launching new products andservices. Pricing and reserving discipline
are key metrics used to mitigate
physical risks impacting Admiral’s
products and are considered in the SST
run by the company in 2023.
Outcomes from the analysis done on
climate-related risks and opportunities,
as well as from climate-related SST,
discussed in detail later, and additional
analysis from the strategic planning,business planning and ORSA processes
confirm that the company’s businessmodel and strategy remain resilient
to potential climate-related impacts
over the periods considered (2023 to2025): no climate-related risks (including
operational impacts) are assessed as
being catastrophic, the solvency position
remains robust, and some opportunities
offer significant upside. The potential
impact from climate-related litigations(liability risk) is not presented in therisk assessment below, as it is currently
assessed as not material.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Board and Board
committees

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79

Strategic Report

Task Force on Climate-related
Financial Disclosures (TCFD)
continued

Time horizons andassessment ratings

Risk ratings are defined as follows:• Moderate/minor impact: relates toa non-significant impact on revenue
or profit.

• Significant impact: relates to apotential impact on revenue or profit
which exceeds normal month-tomonth variance.
• Severe impact: relates to a potential
impact on revenue or profits in excess
of typical annual variance.

Opportunity ratings aredefined as follows:• Major: relates to a potential impact onrevenue or profit which exceeds normalmonth-to-month variance.

Figure 2. Time horizons for climate-related risks and opportunities
Long-term (LT): 10+ years

Short-term (ST): 0-5 years
Detailed five-year financial
projections are produced as partof the business planning process,using robust assumptions basedon current group structure andbusiness mix.

Strategic investments are being
made now in order to provide amaterial contribution to Group
results in the medium-term.
Results are inherently subject tomore uncertainty, as customer
demands, consumer behaviour,and the external operating
environment are all subject tochange, not least from the impact
from climate change.

Transition risks

Admiral has taken steps over a numberof years to reduce its environmental
impact, and any remaining operational
carbon footprint is offset via thepurchase of Gold Standard carbon
credits. Admiral’s purpose-built
Tŷ Admiral building complies withBREEAM excellent standards and has
photovoltaics/solar panels fitted which
provide energy directly back into thegrid. Moreover, since 2021, Admiral has
been working with an external party,
Arup Group, to baseline its property
and facilities infrastructure in order
to consider possible carbon footprint

Business Impacted

All

ImpactST Moderate/Minor

Metrics

Scope 1, 2 and 3 (categories 1-14)

Key management actions• The Company has set granular GHG emissions targets and submitted its
GHG targets to SBTi for approval.

Physical risks

home and/or critical IT infrastructure
or disrupt key suppliers in a way notencountered during the pandemic.
To mitigate this risk, an improvement of
the company’s operational resilience isongoing. For example, migrating to thelatest, cloud-based claims management
software has included testing forthe capacity to rollback to an earlier
version that uses traditional in-house
data servers.

Admiral may be exposed to increased
capital and operating expenditures,
should legal or regulatory requirements
designed to reduce GHG emissions,
and/or increasing climate-related
expectations from shareholders,customers, staff, or other stakeholders
require environmentally-friendly
changes to business operations,products or focus.

• Moderate: relates to a non-significant
impact on revenue or profit.

• Transformative: relates to a potential
impact on revenue or profits in excess
of typical annual variance.

Medium-term (MT): 5-10 years

Operations and supply chain

Beyond ten years it is possible that
the Group will look considerably
different to today and will
potentially be operating within
a much-changed environment.
There is significant uncertainty
over long-term projections.

Both acute and chronic physicalrisks could have a significant impact
on Admiral’s business continuity, by
restricting staff’s ability to commute to
the workplace, making Admiral offices
inaccessible or unsafe, or damaging
critical infrastructure such as data
centres, roads and buildings, or causing
damage to interconnected digitaltechnologies (e.g., cloud-based services
failing due to elevated temperatures
or floods). While the Group is better
prepared for such an eventuality
following the experience of responding
to Covid and subsequent hybridworking model, future climate-related
events may impact staff working from

improvements. The identified strategic
initiatives are generally medium-term
commitments, such as M&E changes
to plant and building management
systems, which focus on more
economical use of utilities, water, andwaste, improving controls of the main
M&E plant and associated systems, andend-of-life replacement of M&E plantand machinery where a significant
carbon reduction can be achieved.
All such initiatives should be further
supported by on-going improvementsin the accuracy of data produced
throughout the property portfolio.

MT Significant

Admiral’s supply chain partners will
also, to a greater or lesser extent, be
exposed to the same risks from climatechange as the Group. Therefore, Admiralis working with its largest suppliers on
assessing their exposure to physical risk

LT Severeand reducing their carbon footprints.
During 2023 Admiral has begun toaccount for sustainability factors in
its procurement process, such as byincluding 16 questions related to theenvironment23 into the due diligencequestionnaire (48 questions in total).
The change to the questionnaire allows
Admiral to tailor questions dynamically
based on a supplier’s response, allowing
the response to be risk-assessed.
The introduction of supply chain
risk controls in Admiral’s contract
management system has allowed it tobetter assess the procurement categoryof environmental risk.

Business Impacted

All

ImpactST Moderate/Minor

Metrics

Operational resilience; ESG score from key suppliers

Key management actions• An improvement of the company’s operational resilience is ongoing to better
manage and mitigate physical risks which could impact Admiral’s business
continuity, and ensure it is tailored to specific geographic conditions/exposuresof the company

MT Significant

LT Severe• Admiral’s procurement framework was improved in 2022 to include ESG
performance of partners and suppliers• Additional supply chain controls were introduced in 2023 in Admiral’s contract
management system to allow better assessment of environmental risks fromthird parties. This work is still ongoing.

23 E.g., “Does your business hold ISO:14001 accreditation (Environmental Management Systems)?”, “Does your business have an Environmental Policy?”.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Admiral has defined the following time
horizons for climate-related risks andopportunities: short-term (0-5 years);
medium-term (5-10 years); and long-term(10+ years). This is shown graphically in
Figure 2. The short-term time horizoncorresponds with the business planninghorizon, and the medium-term horizon
coincides with the expected useful life ofbuildings and infrastructure (dependingon the nature of the infrastructure).
Both transition risks and physical risks are
beginning to crystallise in the short-term,
however the worst physical effects fromchanging weather and climatic patterns
may materialise in the medium- andlong-term if a smooth transition to a
low carbon economy is not achieved.
Liability risks are highly uncertain, in
scope and in outcome – the first cases are
currently being brought against oil, gas
and energy companies – therefore any
emergence and timing is less certain.

The potential impact is assessed
qualitatively using subject-matter
expert (SME) input and is cross-checkedagainst the scenario outputs. At present,
given the large uncertainty aroundthe likelihood and severity of climaterelated issues, only assumptions related
to changes to claims frequencies andclaims costs, and the associated impact
on loss ratios are incorporated into thefinancial planning process, and whenmonitoring financial performance andfinancial position. Work will be undertaken
during 2024 to consider how AdmiralGroup can add additional climaterelated assumptions and their potential
impacts in its financial planning andaccounting activities.

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Strategic Report

Task Force on Climate-related
Financial Disclosures (TCFD)
continued

Operations and supply chain continued
Opportunities24

Opportunities

Business Impacted

All

ImpactST Moderate

MT Majorattendance habits in a post-Covid
business environment. There may also be
opportunities to lower costs and to seek
more favourable terms from suppliers
seeking climate-friendly partnerships.

LT Major

Investments
Transition risks

Admiral’s investments will be exposedto transition risks, as the move to a low
carbon future may lead to some assets
becoming less attractive. To mitigate
these risks, Admiral has set targets to
reduce the average carbon intensityof its portfolio by 25% by 2025 froma year-end 2020 baseline, in line with
the Group’s overall net zero target for2040. In 2023, Admiral has re-baselined
its GHG emissions using a 2021 baseline
to be consistent with competitorsand submitted its GHG targets to SBTi
for verification (as part of the overall
Group submission). To date, climate
considerations have only had a limited
impact on the Group’s approach toacquisitions and divestments, although
any potential mergers and acquisitions(M&A) activity needs to align with theGroup’s overall strategy including climatechange. The acquisition of the UK direct
Home and Pet personal lines insurance
operations of RSA due in 2024, is in linewith Admiral’s overall strategy and will be

Business ImpactedAll

incorporated into the company’s net zerocommitment. Climate-related issues have
not had any adverse impact on access tocapital, and indeed the company’s strong
ESG ratings may actually be positive
for the availability and costs of funding.
Similarly, climate-related issues have notadversely impacted Admiral’s investment
in research and development (R&D) but
have instead shaped areas of priority andstrategy such as the development of EVs.

ImpactST Moderate/Minor

Metrics

Scope 3 cat.15, SST and capital and liquidity forecast, Weighted average carbon
intensity (WACI), investment in green bonds or in firms with SBTs
• Climate-related considerations are incorporated into investment decisions,and the decision-making process is clearly documented to support investments
in renewable energy infrastructure, green bonds, and other corporate bonds

Key management actions

MT Significant

LT Significant• The Company has set climate-related metrics for its investments with granulartargets regularly monitored.

While climate change poses a risk to theGroup’s investments, the transition to a
low carbon economy should also present
investment opportunities – Admiral has
already invested in renewable energy
infrastructure, green bonds, and othercorporate bonds with credible transition
plans, and is considering approving otherinvestible asset classes. The company isSome of Admiral’s investments will be
exposed to physical risks, as changing
climatic conditions may negatively
impact the performance of investee
companies and cause assets to lose
value prematurely.

Effects may be company-specific(e.g., capital and liquidity issues),
sector-specific, or may have an impact
on the broader economy and macro
environment, such as reduced economic
growth, higher unemployment orchanges in inflation.

Business Impacted

All

ImpactST Moderate/Minor

Metrics

Scope 3 cat.15, SST and capital and liquidity forecast, WACI, investment in green
bonds or in firms with SBTs
• Investments in new businesses and opportunities, (e.g., through the “Diversification”
pillar of the Group’s strategy) to help the company in its effort to move away fromless attractive type of assets or obsolete investments.

Key management actions

MT Significant

LT Significant

The company has targets to grow thenumber of third parties which have acredible plan to align emissions with a
2°C pathway, for example via SBTs. Also,
Admiral does not allow investments in

Business Impacted

All

ImpactST Moderate

MT Moderate

LT Moderate

Products and services
Transition risks

The move away from personal petroland diesel vehicles is the most obvioustransition risk faced by the Group and is
one which presents a strategic challenge
to Admiral as the company may
experience an erosion of its traditional
competitive advantages in pricing andclaims handling. Initiatives to reduce
aggregate GHG emissions could see amove from petrol and diesel vehicles
to EVs, and/or a concerted move awayfrom traditional models of transport
to a model of integrated and active
transport, based on EVs and alternatively
fuelled vehicles (AFVs). The pace oftransition towards such vehicles is
unclear, being driven by a number offactors including customer preferences
Business Impacted

Physical risks

companies generating more than 10%of their revenues from coal or tar sands
and restricts investment in companies
not aligned to a maximum of 2°C ofwarming, or not subject to engagement
or stewardship actions. By 2025 the aim
is for portfolios to also have 5% green
bonds, with 35% of the portfolio with
Paris-aligned commitments.

also seeking to secure a sustainabilitylinked loan, which will be based on
hitting environmental and othersustainability targets.

and behaviour, the supply and cost of
EVs and associated infrastructure, andcrucially the stance of Government.
The UK Government’s 2030 ban on salesof new petrol and diesel vehicles has
been postponed for five years to 2035,
the plug-in car grant scheme was ended
in June 2022, and the allocated funding
has been refocused towards extending
plug-in grants to boost sales of plug-in
taxis, motorcycles, vans and trucks andwheelchair accessible vehicles.

vehicle registrations, the proportionof which are EVs, as well as internal
metrics capturing the attractivenessand competitiveness of the EV
proposition, the claims experience,and the broader customer experience(e.g., times top, market share, loss
ratio – all of which would be consideredcommercially sensitive). Such data helps
the Group continually assess whether
it is developing adequate capabilities
in these innovative technologies.

Admiral monitors company-specificand market-wide metrics which
are incorporated into the businessplanning process, reported in monthly
management packs, and discussed atrelevant fora. Key data includes new
UK car; Europe car

ImpactST Significant

Metrics

Risk selection; EVs offering

Key management actions• To further support climate-related risks and opportunities being considered in
key business decisions, work is being undertaken to further embed all aspects ofsustainability into the Group strategy and activities. This ensures that climaterelated risks and opportunities are consistently considered in the decision-making
process (e.g., use Admiral’s traditional competitive advantages to develop an EV
offering in line with the company’s net zero ambition and customers’ expectations)

MT Severe

LT Severe• The development of an EV offering has become an explicit target in the Group’s
strategy and Admiral is already one of the leading insurers for EVs in the UK market.

24 Businesses impacted and metrics used for opportunities are the same as the ones used for climate-related risks (transition and physical) for each focus area (operations and supply chain,
investments and products and services).

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

There are opportunities based aroundcity centre heating proposals andgeothermal technology in somemajor cities, although these are

medium- to long-term in nature.
Tactical opportunities for carbon
footprint reduction are already in force,
including property downsizing and a
hybrid working model reflecting office82

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83

Task Force on Climate-related
Financial Disclosures (TCFD)
continued

Products and services continued
Physical risks

To mitigate and manage these risks,
Admiral takes a flexible, proactive, anddynamic approach to risk selection andpricing, ensuring that written business iswithin risk appetite, and that projected
loss ratios and combined ratios lead to
profitability over the cycle.
Admiral also uses reinsurance
arrangements extensively, including
quota share and catastrophe coverfor Household lines. These are in place
to provide protection against an
accumulation of claims associated with aweather catastrophe event.
Since launching the UK Householdbusiness in 2012, Admiral has sought
to control its exposure to flood risk by
developing an understanding of the risk
at a granular geographical level, which
has been coupled with a conservative

appetite for underwriting such risk.
In order to support this, Admiral iscontinually updating and improving
its risk modelling, including adopting
perils-based pricing which allows forinterrogation of specific concentrationsof risks. In the UK, Admiral takes part in
the Flood Re scheme, which is designed
to allow insurers to offer more affordable
insurance for homes built before
2009 in areas most at risk of flooding.
The volume and value of policies ceded
to Flood Re is monitored on an ongoingbasis. By participating in the Flood
Re scheme Admiral can underwrite
properties which are outside of its
acceptable flood criteria by ceding theflood risk to Flood Re, while still offering
customers protection via underwriting
all other perils.

Business Impacted

UK household

ImpactST Significant

Metrics

Risk selection; Reinsurance arrangements; Loss ratios (Probable Maximum Loss (PML)of insured products from weather related natural catastrophes).
• The resilience of Admiral’s business model and strategy is assessed as part of SST,
which are considered within the annual Business Plan process and included in theannual ORSA Report (including climate-related scenarios and their financial impacts)

Key management actions

MT Severe

LT Severe• Pricing and reserving discipline is applied and regularly re-calibrated to ensure thatchanges in claims frequency, severity, location and cost are appropriately reflected inproposed rates, most notably in Motor and Household lines of business• Reinsurance is used to mitigate large losses from natural catastrophes.

Opportunities

page 26. Related to the Household
offering, and due to the physical risk
impacting Admiral’s Household lineof business, in 2023 the company
released a Storm Hub website tosend timely weather warnings tocustomers ensuring they are aware ofany extreme weather events that may
affect them.

There are two types of opportunities
related to Admiral’s products
and services:• The first relates to the developmentof new climate-related products andservices. For example, aligned to thethird of the Group’s strategic pillars,“Evolution of motor”, Admiral alreadyhas a strong and competitive EV
offering, which will help counteract
the expected long-term decline in thenumber of petrol and diesel vehicles
on the road. The offering, which iscontinuously being developed andexpanded, is discussed further on• The second is aligned with thesecond pillar of the Group’s strategy– “Diversification” – and seeks todevelop and launch new products
and services in line with emerging
customer needs outside its corebusiness, and which may be lessBusiness Impacted

UK car; Europe car; UK household

ImpactST Moderate

Admiral Group plc Annual Report and Accounts 2023

MT Majoremissions-intensive. These initiatives
may help counteract any long-term
move away from private vehicle
ownership to more integrated
transport solutions.
Taken together, these areas will help
support Admiral in the transition to a
low-carbon economy, by exploring newopportunities as well as by shielding
Admiral from any contraction in its corebusiness. The loans business may also beaffected in the longer-term as increasing
demand of loans for Household
improvements could create additional
opportunities for the Company.

LT Major

While qualitative assessments of the impact from climatechange are useful, it is also important to quantify the
impact where possible to better understand the financial
cost of climate change. Stress and Scenario Testing (SST) is
conducted as part of the annual ORSA process to understandthe robustness of the Group’s business model and strategy
to the impact of various risks. In addition to the standard ORSA
scenarios, two climate change scenarios from the Network
for Greening the Financial System (NGFS)25 2022 phase III were
performed this year.
The two scenarios examined were “disorderly – delayedtransition” and “hot house world – current policies”, both ofwhich were modified and recalibrated to be relevant andapplicable for Admiral’s climate risk exposure. The period
modelled is 2023-2025 as the current focus is on shortterm impact, as inherent uncertainty as well as developing
approaches to assessment mean there is less confidence inmedium-term and long-term impacts. As modelling capabilities
are further developed, Admiral will increasingly also focus on
medium- and long-term assessments.
The NGFS “disorderly – delayed transition” scenario assumes
that the implementation of policies needed to drive thetransition to net zero is delayed until 2030, and is then sudden
and disorderly, resulting in material short-term macroeconomic
disruption. Under this scenario, global warming is limited to
an increase of 1.6°C by 2050. This scenario has been applied toAdmiral by exploring the transition risks from climate change
relating to the transition of the UK motor book from petrol/
diesel vehicles to EVs, affecting the profitability of the business.
This scenario impacts Group, AIGL and AICL, and key
assumptions, linked to the erosion of Admiral’s traditional
competitive advantages in pricing and claims handling, are:
• Mispricing of EV risks by 15% each year.
• Two large losses per year through ordinary driving totalling£30m.
• Fire catastrophe events caused by an EV in a multistorey car
park with £25m total losses.
The NGFS “hot house world – current policies” scenario assumes
that no action is taken on climate change so that global
temperature levels continue to increase, reaching 3°C above
pre-industrial levels by 2080. This scenario has been interpreted
as resulting in increased incidents of extreme weather events,
impacting the UK Household, Car, and Van books, impacting
Group, AIGL and AICL. Specifically, it has been assumed that acatastrophic windstorm event (i.e., PRA General Insurance Stress
Test (GIST) 2022 – Scenario A3: UK windstorm and UK flood)
occurs each year in the UK.

For further information see:
Our purpose-led approach
Our strategy
Evolution of Motor
Our environment
Responsible investment

For both scenarios, it is assumed that excess of loss reinsurance
would be in place, and the outputs are modelled for Group withdividends set to the base capital plan at 90% of profits.
The scenarios performed give comfort that the Group’s businessmodel and strategy should remain resilient to potential climaterelated impacts over the period modelled. Under both scenarios,
the Group solvency ratio is projected to remain above the lower
trigger (150% on a dynamic capital add-on basis) throughout
the projection period. Both scenarios were also used to identify
possible management actions that the business could takeshould similar events to the scenarios actually occur.
The risks presented by a transition to a low-carbon economy
are not currently considered substantial in the short term.
However, as Admiral’s strategy focuses on initiatives whichshould mitigate these risks, Admiral’s activities are considered
to be aligned to a well-below 2°C world. In such a transition
scenario, the strategic focus will be to accelerate the Evolutionof Motor and Diversification pillars of the Group’s strategy.
For the transition risk scenario, the estimated financial impact
is a reduction in own funds each year, reducing by over £90m
in 2025 under the no management actions assumptions, due
to reduced profits from increased claims and reduced profit
commissions. Physical risks may have the greatest potential
impact on the Group’s Household insurance business in thelong-term – in such a hot house world, the focus will be on
ensuring robustness of the core business via pricing discipline
and appropriate reserving. For the physical risk scenario,
with no management actions, the overall financial impact
at YE25 is ~£150m for Group Solvency II own funds. In the
short term, the impact on the company’s financial positions(own funds, SCR) is limited and management actions available(e.g., dividend retention) further mitigates the financial impact
on the company.
The financial impact assessment of the scenarios does notallow for Government/scientific responses or management
and mitigating actions (e.g., annual repricing of insurance
policies, greater or different use of reinsurance, changes
to asset allocation in the investment portfolio), except forchanges to dividends. However, potential mitigating actions
are discussed qualitatively.
The output of this scenario analysis has been used in discussions
at GRC, Group Audit Committee, and Group Board about future
strategic direction.

Page

8
22
26
56
65

25 NGFS Scenarios Portal, Data & Resources, NGFS.

Admiral Group plc Annual Report and Accounts 2023

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Admiral is exposed to both acute andchronic physical risks mainly impacting
its Household lines of business.
Climate change is causing sea levels torise and is also causing more frequentand heavier rainfall, increasing the risk offlooding. Changes in weather patterns
may also increase the incidence andseverity of storm and freeze events,
as well as hailstorms and subsidence.
Together these indicate that anincrease in the volume and value ofHousehold claims is likely. The Group
had experienced a surge in claims inearly 2023 due to the prolonged freeze
experienced in early December 2022 in
the UK. In addition, Admiral was exposed
to several storm events during 2023 –although their impact was relatively low.

Stress and Scenario Testing (SST)

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Task Force on Climate-related
Financial Disclosures (TCFD)
continued

Risk management

Identification

The identification of potential climaterelated risks, as well as any opportunities,
is embedded into Admiral’s existing
three Lines of Defence model. It follows
a multi-stage process which incorporates
internal viewpoints and forecasts (e.g.,
from departmental expertise, insightfrom working groups, committees, andBoards) with those from external sources,
both insurance-specific and more broadly.
Management teams across Admiral,
whose business areas may affect or beaffected by climate change are a sourcein identifying climate-related risks in theirrespective areas, and act as an input towork coordinated by the Sustainability
Team and the Group ERM Team, who
articulate risks and opportunities at
the Group level. Existing and emerging
regulatory requirements related toclimate change and sustainability arealso considered.

Materiality assessment

The nature, magnitude and timingof climate-related risks are all highly
uncertain. As a result, such risks do not fit
naturally into standard risk assessment
approaches, and so a hybrid approach,which comprises both qualitative andquantitative components, is utilised.
The assessment is performed at Grouplevel considering transition, physical, andliability risks, as well as microeconomic
and macroeconomic transmission
26 The causal chains linking climate risks to the financial risks
faced (as per the PRA Climate Change Adaptation Reportfor banks and insurers – Climate-related financial risk
management and the role of capital requirements.

channels26 applicable to each businessline. This allows the Group to identify
any potential impacts and opportunities
from climate change on all current andpotential future products and services,
as well as on operations and investments.
The impact of existing and emerging
regulatory requirements related toclimate change are also assessed.
Climate-related risks, and any resulting
opportunities, are initially evaluatedqualitatively. A risk matrix approach is
employed, whereby the potential impactof the risk (scored between minor andcatastrophic) is considered alongside thelikelihood of impact (scored between
rare and almost certain), assessed acrossshort-, medium- and long-term horizons.
The “expected magnitude” is defined as
the product of magnitude of impact on
Admiral and the likelihood/plausibilityof impact.
Where appropriate, a quantitative
approach to assess climate-related risks
can also be taken, and two scenarios fromthe NGFS were included as part of the SST
section of the 2023 Group’s ORSA report(as shown in the box above).

Management and mitigation

The primary approach to risk mitigationis the ongoing successful executionof the Group strategy, which seeks todiversify the Group’s revenue and profit
streams, thus reducing the Group’s
reliance on UK Car, which is exposedto transition risk. Considerable efforts
have been made to mitigate the riskof a transition to EVs, both via new andexisting businesses, which have invested
in developing and testing new products
and product features to meet developing
customer requirements. Regulatory and/or reputation risks from climate change
is managed through efforts made to
reduce the Company’s GHG emissions andby submitting GHG targets to SBTi for
official approval.

The Group’s approach to managing
the risk that climate change poses toinsurance book is similar to its approachto managing other insurance risks:disciplined pricing and assessmentof impact by peril, clear underwriting
criteria, regular assessment of thereserving approach, and risk transfer
via reinsurance. Admiral uses industrystandard flood and catastrophe models
to understand its underlying physicalunderwriting risk, and hence what amountof risk is accepted, what amount of risk is
mitigated, and the reinsurance protection
deemed appropriate for risk transfer.
Admiral’s approach to pricing is the key
tool for managing climate-related risks
but given its commercial sensitivity, theapproach is not disclosed.

Monitoring and reporting

Climate-related risks and opportunities
are monitored by the Group ERM Teamand are reported to the GRC via the
CRR and CRO Report, and annuallyas part of the Group’s ORSA Report.
They are also reported to the Group
Board, management committees, andto subsidiary Boards and committees as
required. This monitoring and reporting
ensures that the highest level of Company
Management is aware of the risks andopportunities, can account for them infuture business planning and strategy
setting, and can devise management
actions to mitigate their effects or tocapture any resulting opportunities.
The Regulatory Compliance Team, part ofGroup Compliance, monitors and reviews
publications and pronouncements fromvarious regulators, supervisors, andtransnational bodies, including but notlimited to the FCA, the PRA, the Bankof England, and EIOPA. Summaries are
distributed to relevant stakeholders
as and when material is published, amonthly round-up is distributed more
broadly across the Group, and regulatory
developments are discussed in the
SSC’s Risk, Compliance, and Reporting
Working Group.

For further information see:Page

Principal risks and uncertainties
Emerging risks

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Admiral Group plc Annual Report and Accounts 2023

Substantial progress has been made in2023 regarding the collection, verification,and reporting of climate-related data.
Most notably, Admiral’s GHG targets for
Scope 1, 2 and Scope 3 emissions, which
support the achievement of Admiral’s
net zero ambitions across all of its
carbon footprint by 2040, were approvedby the Board and submitted to SBTi
for verification.
Metrics relevant to operations and supply
chain, investments, and products andservices disclosed in this section arealigned to the risks and opportunities
presented above. However othernumerical values that may be consideredcommercially sensitive are not included.
Other cross-industry climate-related
metrics are not disclosed in this report asthey are not considered to be materiallyrelevant to the Company’s performance –given the nature, scale and the complexityof its operations and business.

Operations and supply chain

As a global financial services Company,
Admiral has a low operational footprint
when compared to its complete carbon
footprint, including the supply chain
and investment portfolio. This has been
aided by the efforts made over the past
decade to mitigate the physical risk on its
operations and supply chain. Efforts have
led to improvements in the efficiency ofbuildings, critical IT infrastructure, theprocurement process, and has helped
the strengthening of the evaluation andmonitoring of its energy consumption
with support from Accenture.
Since 2019 Admiral has offset its
remaining Scope 1 and 2 emissions, aswell as some Scope 3 emissions. However,
Admiral recognises that offsetting
emissions is not enough, and Admiralshould seek to further reduce its GHG
emissions. Therefore, Admiral is working
hard to reduce the absolute level of its
operational GHG emissions.

GHG emissions are quantified inalignment with the World Resources
Institute’s Greenhouse Gas Protocol
Corporate Accounting and ReportingStandard and are discussed further in the
SECR section of the annual report on page
71. Unverified emissions data, including
for 2023, as well as a description of themethodology used to estimate metrics
if data is missing, is also included in that
section, as are further operational metrics.

Investments

As a financial services company, asignificant part of Admiral’s emissions are
category 15 emissions (part of Scope 3),
from the investment portfolio. Admiral has
therefore committed to achieving a
reduction in investment-related GHG
emissions of 25% by 2025, and of 50% by2030, reaching net zero GHG emissions
by 2040 at the latest – aligned to theoverall target.
To mitigate the transition risk of having
an obsolete investment approach and/or
holding unattractive assets, and to ensurethat above targets are met, Admiral has
developed an investment proposal toalign its corporate bond mandates to theParis Agreement, following the Net zero
Investment Framework. This is a practical
blueprint for achieving net zero emissions
by 2050 which has been endorsed by the
UN’s Race to Zero campaign. The proposal
has several features, including reducing
emissions over time and increasing
investment in sustainable assets andfunds (green bonds and holdings withconfirmed SBTs, as per Admiral’s climate-

related investment metrics). There will not
be blanket divestment rules, but instead
Admiral’s investment managers are
expected to be engaging with companies
which could, as a last resort, possibly leadto divestment and reinvestment in lesscarbon-intensive names over time.
Several challenges should be noted:
sourcing reliable and consistent data;
avoiding unintentional consequencessuch as under-diversification; and reliably
determining the expected risk and return
impact of such a strategy. However,in order to guide and review progress
towards overall targets, a number of
metrics are tracked, shown in Table 3.
Investment metrics are calculated by
identifying in-scope non-cash assets andapplying MSCI ESG data on a per security
basis. Various metrics are subsequently
calculated at a whole portfolio level.
Weighted average carbon intensity (WACI)
is calculated by taking the most recently
available carbon emissions (Scope 1 and 2)
per million USD of revenue for all in-scope
securities, and weighting that by theindividual security’s market value relative
to the in-scope portfolio (in scope refers
to public corporate bonds as defined by
EIOPA’s Complementary Identification
Code (CIC)). The WACI shows how carbon
intense (how much carbon per million
USD of revenue) the average company
in which Admiral holds investments is(of the in-scope investments); it is ameasure of Admiral’s exposure to carbon
intense companies.

Figure 3. Weighted average carbon intensity (WACI) formulan∑iPosition Weighti x

Position Scope 1 & 2 Emissionsi
Position Revenuei

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

The four-step risk management process
for climate-related risks is the sameprocess as that employed for otherrisks and is therefore embedded into
Admiral’s Enterprise Risk Management
Framework (ERMF). Climate-relatedrisks are captured in the emerging risk
horizon scanning process, are subject
to the same materiality assessments
as emerging risks, are represented on
the emerging risk radar, and have their
expected magnitudes assessed annually.
They are discussed at and reported in
the management and Board committees
described in the “Governance” section ofthis disclosure.

Metrics and targets

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Task Force on Climate-related
Financial Disclosures (TCFD)

Section 172 Statement

continued

Table 3. Climate-related investment metrics
MetricWeighted average carbon intensity (new methodology1)
Investment in holdings with confirmed SBTs
% Allocated to coal and oil sands
Investment in Green bonds

2022

2021

71 tCO2e/$m revenue2
£485m
0%
£98m

77 tCO2e/$m revenue3
£422m
0%
£73m

Prior year figures have changed as a result of changes to the calculation methodology following work done with Accenture as part of the SBT targets submission
55% portfolio coverage. 61 tCO2e/$m revenue for benchmark
67% portfolio coverage. 83 tCO2e/$m revenue for benchmark
The calculation methodology of Admiral’s investment in holdings with confirmed SBTs is currently being reviewed and updated with the support of Accenture. To avoid disclosing a number from a
non-finalised/non-approved calculation methodology, for 2023, Admiral will not disclose SBT numbers.

Products and services

As discussed above, the effects ofclimate change may impact all of
Admiral’s business lines. Physical risks,
which may be managed via risk selection
and reinsurance protection, might bemore prominent in Admiral’s Householdbusinesses, while transition risks may befelt more keenly in the Motor businesses.
The “Diversification” pillar of the Group’s
strategy should mitigate such impacts
from physical and transition risks.

Table 4. Physical risk metrics

Admiral tracks a number of climate- anddiversification-related metrics in order
to assess its exposure to climate-relatedrisks, such as modelled burn cost per peril,
the number and value of weather-eventrelated claims, or times top27 and loss
ratios for the EV offering. However, in themain, these are considered commerciallysensitive. Admiral is able to disclose themetrics shown in table 4 opposite, as per
the Sustainability Accounting Standards
Board Standard.

For further information see:
Our Society – Environment
SECR disclosure
Evolution of Motor

Page

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26

Description

Metrics

Probable Maximum
Loss (PML) of
insured products
from weather
related natural
catastrophes• Admiral utilises various methods and evaluations to makeunderwriting and reinsurance decisions that manage theGroup’s exposure to catastrophic events. Across the Group’s
insurance book, the main weather-related risks pertain to
Admiral’s UK Household book, as well as the US Motor book
• Admiral’s Household excess of loss reinsurance provides
catastrophe cover with a limit above the estimated 1-in-200 loss.
As of January 2024, this was estimated to be £560-580 million
from floods and storms, etc. for the UK Household insurance
business. Admiral’s excess of loss deductible is £65 million, andthe 70% quota share leads to a net event loss of £19.5 million• In relation to Admiral’s UK Car insurance business, the 1-in-200
estimated possible loss as of December 2022 was £90-115 million.
Admiral currently has up to £80 million of cover from the motor
excess of loss reinsurance and a further £6 million from theproperty excess of loss reinsurance. Therefore, after the £12 million
deductible, Admiral is covered up to a £98 million single event• In relation to the US Motor insurance business, the 1-in-200
estimated possible loss as of June 2023 was $22-26 million.
The US business has $21.5 million of cover from the motor excess
of loss reinsurance. Therefore, after the $3.5 million deductible,
the US business is covered up to a $25 million single event.

Total amount of
Admiral Group does not separately identify losses by modelledmonetary losses
and non-modelled catastrophes. However, the table below
attributable toprovides some details on the weather-related losses following
insurance payouts
natural catastrophes in relation to the UK Household book,fromwhich represents the main weather-related risk from across(1) modelled natural the Group’s operations. The table covers property catastrophe
catastrophes andlosses above £5.0m across 2018-2023. The most notable change(2) non-modelledcompared to data disclosed in the 2022 TCFD report is for Storm
natural catastrophes, Eunice and the freeze event from 2022, which now have anby type of event and incurred cost of >£50m.
geographic segment
PeriodPerilsPaid (£m) Incurred (£m)(net and gross2018 Freeze, flood, and storm
10.7
10.5
of reinsurance)

2019
2020
2021
2022
2023

Flood and storm
Flood and storm
Flood and storm
Freeze, flood, and storm
Flood and storm

0.0
0.0
5.6
37.6
0.0

0.0
0.0
5.9
51.6
5.8

Fulfilling
THE BOARD’S s172 DUTIESTO ITS SHAREHOLDERS
AND STAKEHOLDERS
The Board balances theoccasionally conflicting
needs and priorities ofAdmiral’s key stakeholders,
whilst ensuring all decisions
taken promote the long-term
success of the Group.
In accordance with their duties unders172(1) of the Companies Act 2006,
the Board of Directors individuallyand collectively confirm that, during
the year under review, they have acted
in a way that they consider, in goodfaith, is most likely to promote thelong-term success of the Company
for the benefit of its members as awhole, whilst having due regard to thematters set out in section 172(1)(a) to(f) of the Companies Act 2006, being:• a) the likely consequences of any
decision in the long-term;• b) the interests of theCompany’s employees;• c) the need to foster the Company’sbusiness relationships with
suppliers, customers and others;• d) the impact of the Company’s
operations on the communityand environment;• e) the desirability of the Company
maintaining a reputation for highstandards of business conduct; and• f) the need to act fairly between
members of the Company.
Pages 87 and 128 set out how theAdmiral Board has met its obligations
under s172.

27 Times top represent times when Admiral’s quote comesout as the best price on a price comparison website.

Admiral Group plc Annual Report and Accounts 2023

How the Board fulfils its
duties under s172

Our Directors and the Board collectively
are bound by the duties set out under
section 172(1) Companies Act 2006 andare required to confirm in a statement
how these obligations have been fulfilledduring the year. Our s172 statement
detailed on page 87 explains how, during
the year, the Board has acted in a waythat it considers, in good faith, would
be most likely to promote the successof the Company for the benefit of ourshareholders, whilst having due regard to
those stakeholders identified under s172.
The principal decisions taken by the Board
during the year, which take into accounts172 considerations, can be found on
page 128.
Understanding the requirements,
concerns and ambitions of Admiral’s
stakeholders is important to informthe Board’s creation of an effective andsustainable business strategy. The Board
takes into consideration the views of all
stakeholders both when formulating,and also when implementing this strategy.
In doing this, in conjunction with ourvalues and our culture, the Board isconfident that it will ultimately fulfil
our purpose and drive the long-termsustainable success of the Admiral Group.
The Board understands that relevant
stakeholder considerations should be
integral to Board discussions and its
decision-making process. It is mindfulin all its deliberations of the long-term
consequences of its decisions, as wellas the importance of the AdmiralGroup maintaining its reputation forhigh standards of business conduct.
Engagement with our stakeholders
is key to this process, allowing theBoard to obtain comfort that relevant
stakeholders have been identified, theirpositions considered and understood,
and that different stakeholder groups
have been treated fairly. The feedback
we receive through our engagementwith stakeholders is detailed in our Board
reports and forms a key part of Board
discussions, ensuring the Board can focus
on running the business for the benefitof all our stakeholders for the long-term.
During 2023, the Board reviewed its
key stakeholder profiles and confirmedthat of the six groups identified withins172; people, shareholders, customers,
suppliers and partners, community,
and the environment, all remainedmaterial stakeholders for the AdmiralGroup and continued to be strategicallyimportant to the long-term success ofAdmiral’s operations. As part of its 2023
review, the Board considered the current
approach to engagement with, andgovernance around, each stakeholder
group. In addition, the internal stakeholder
relationship owners within the AdmiralGroup provided detail to the Boardon existing engagement methods,
feedback processes and the activities
and plans for stakeholder engagement
for the year ahead.
Further information on wider stakeholder
engagement across the Admiral Group canbe found within the Sustainability Reporton page 56, and the Corporate Governance
Report on page 113. A description of theprincipal decisions taken by the Board
during the year, taking into account s172
considerations, are set out on page 128.
Key stakeholder engagement channels
along with Board considerations anddecision-making outcomes in accordancewith s172 are set out overleaf.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

1
2
3
4

2023

58 tCO2e/$m revenue
N/A4
0%
£146m

88

89

Strategic Report

Section 172 Statement
continued

The Board promotes the long-term success of the Admiral Group by ensuring the highest standardsof business conduct, understanding the long-term implications of its decisions, and ensuring all
stakeholders are treated fairly. It does this through:Understanding the required Board skills, knowledge andexperience: Directors have wide ranging, relevant expertiseand experience that they are able to use to inform and guidedecision-making to ensure this is of the highest quality, whilst also
incorporating a balanced consideration of the expectations of
all relevant stakeholders. Significant time is spent inducting new
Board members along with annually assessing and implementing
educational programmes. This allows for educated and informed
decisions being made to promote the long-term sustainablesuccess of the Group in the best interests of all stakeholders.
See page 146 for further information.

Ensuring high quality Board meetings: Board and Board
Committee agenda planners set out matters to be consideredby the Board and Board Committees during the year. These areregularly reviewed and updated during the year to ensure thatthe Board continues to meet the evolving demands of the Group.
Standardised Board reporting templates are in place and training
has been provided to those producing Board papers to ensure
consistency, clarity and conciseness in approach. See pages 144
and 145 for further information.

Considering stakeholder interests and impact: Board papers
are accompanied by a covering document outlining; i) whichstakeholders could potentially be impacted by a Board decision,ii) an explanation of how stakeholder interests have been
considered, iii) the likely consequences for those stakeholders,and iv) how the impact on stakeholders could be monitored.
This process ensures the Board is aware of and gives due regard
to its s172 obligations during the Board discussion and decisionmaking process. See pages 144 and 145 for further information.

Effective Board review process: The Board is regularly updated
Open Board discussion and decision-making process: Ouron the implementation and results of key decisions through theBoard environment encourages an open, honest and accountable
Board and Committee reporting framework. This is carried out
decision-making culture, which is subject to rigorous risk
management and challenge to ensure any decision taken is of the through regular management reports and shareholder and wider
highest standard and supports the long-term sustainable success of stakeholder feedback submitted to the Board as part of thethe Group. The Board is aware that in some situations stakeholder engagement process. The Board’s performance in its decisionmaking processes are monitored and appraised through its
interests may be conflicted and it may have to prioritise interests,
annual Board and Committee performance evaluation to ensure
however the Board ensures that, as part of those considerations
evaluated through its decision-making process, all stakeholders are it maintains the highest standard of conduct. Further details on
this process can be found on page 158.
taken into account and are treated fairly.
The principal decisions taken by the Board during the year and how the requirements set out under s172 were taken into accountare set out in the Governance Report on page 128.

Through our culture andvalues, we are committed toproviding a diverse, inclusive
and supportive working
environment. During the year
Admiral has been recognised
as being one of the best places
to work in the UK, and in
the other countries in which
we operate.
Why engaging with our
employees is important

We believe that people who like what
they do, do it better. Our c.13,000
colleagues’ well-being and positive
engagement in their roles is essential
to the long-term success of Admiral.
Our team has always been a powerfulsource of competitive advantage and,as such, Admiral takes great pride inlooking after its employees and helping
them look after their future. The Board’s
engagement with the Admiral teamfosters a happier and more productive
workforce, supports operational
excellence, and ultimately shapes
better outcomes for our customers
and other stakeholders. In 2023, 95% of
our colleagues around the world statedtheir belief that the Admiral Group
was a diverse and inclusive employer.

How the business engages
with our employees

Admiral employees are encouraged toengage across multiple channels, virtuallyand face-to-face. Examples of this include:• UK and International employee
consultation groups providing an
employee voice and input into how
the business operates• Employee surveys capturing feedback
and engagement across the business• A wide variety of employee forums
and working groups around diversity
and inclusion – see page 56 forfurther information• One to ones with managers and regulardevelopment meetings• Feedback schemes such as ‘Ask Milena’and ‘Have your say’
• Regular employee education andcompliance courses• Whistleblowing channels.
Further examples of how we engage withour colleagues can be found on page 132.

How the Board engages
with employees

The Board recognises the importanceof engaging with its workforce and does
so through a combination of formal
and informal channels. The Board has
established a UK Employee Consultation
Group (ECG) and an International
Employee Consultation Group (IECG).
Board Directors are invited to participate
in these meetings. The Chairs of theemployee forums report directly to
the Board on key areas discussed togive an ‘employee voice’ at the Board
table, and subsequently report back to
the employee forums with updates on
Board discussions. The Board also regularly
meets employees through visits to officesites, presentations at Board meetings,
and is regularly updated by managementon people matters, employee
engagement, survey results and culture.

For further information see:
Employee consultation
Diversity and inclusion
Principal decisions
CultureAwardsAdmiral Group plc Annual Report and Accounts 2023

Outcomes and impact ofBoard decision-making• Regular communication through avariety of internal channels and social
communication tools

The Board discussed the output received
from several ECG and IECG engagement
sessions during the year for the purposesof understanding those issues that wereof interest or concern to employees.
Significant topics addressed included theimpact of the increased cost of living,working practices and sustainability/
ESG issues. The Board also received andconsidered reports and updates from theHead of People Services and subsidiaryboards. The Board discussed financial
measures to support employees and,as a result, were supportive of a five
percent pay increase to all UK based
employees, approved by the EUI Board, tohelp mitigate the impact of inflationary
costs. In addition, the Board confirmeda share award to employees to ensure
a sense of shared ownership in the
success of the business. As a result of theBoard’s approval of the acquisition of
the More Than home and pet personallines insurance operations from RSA,
Admiral is delighted to welcome c.300
new colleagues to the Admiral Group.
The Board was pleased that the significant
work ongoing around the building of
a diverse and inclusive culture wasrecognised through the results of theGreat Place To Work Survey with 87%
of employees believing Admiral was agreat place to work. This was further
demonstrated through several awards
received during the year including thebest big company to work for at the Best
Company Awards. The Board ensured thatthe significant activity streams already inplace would continue and evolve, and that
the Group would continue to focus onbuilding its unique culture through these
multiple channels.

Page

137
62, 154128
132
13
Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Defining Admiral group’s purpose, culture, values and strategy:
The Board has defined Admiral’s purpose and sets and monitors
the culture and values of the Group. Our purpose, culture andvalues alongside engagement with, and an understanding of, therequirements of our stakeholders, assist in guiding the strategic
direction and long-term interests of the Group, informing Board
discussion, and ensuring decisions are taken in line with theagreed strategy, giving equal regard to all our stakeholders.
See pages 14 and 132 for further information.

People90

91Strategic Report

Section 172 Statement
continued

Customers

We aim to protect and manage
our shareholder capital in a
responsible and accountablemanner, whilst generating
long-term sustainable value
for the Group.

We aim to provide a greatcustomer experience.
Why engaging with ourcustomers is important

Why engaging with ourshareholders is important

Shareholder engagement fosters analignment of interests between theowners of the business and the Board.
It allows the Board to explain the rationale
behind business and strategic decisions
whilst providing opportunities forshareholders to comment and challengebusiness priorities.

How the business engages
with shareholders

Admiral aims to have regular andconstructive engagement with ourshareholders through a varied numberof channels, examples of which include:• Investor site visits, conference calls
and meetings• Market disclosures, including interim
and full year results announcements
and presentations• The Annual Report andSustainability Report• Investor and analyst presentations,roadshows (in person and remotely)
and corporate governance meetings,
for example, to discuss the Directors’
Remuneration Policy• Regular analyst engagement, including
ad hoc sessions on topical issues, forexample the implementation of the
IFRS 17 accounting standard

How the Board engages
with shareholders

The Board enjoys long-standing
relationships with Admiral’s largest
shareholders, including the founders of
the Group, and receives regular updates
on the activities of the Investor Relations
team as well as meetings with investors
held with the Board and management
team. The Board also receives investor
feedback (post roadshows results/
conferences) and uses this to help shape
its approach to corporate governanceand strategy, ensuring that any issues orconcerns raised are considered during
Board discussions. During 2023, there
were over 80 separate engagements heldwith institutional shareholders, including
significant engagement with shareholders
regarding the Remuneration Policy to
be voted on by shareholders at the 2024
AGM. The Board also receives regular
updates on market dynamics, share priceperformance and share register changes.
The Board engages with Admiral’s retailshareholders through the AGM process.

• The 2023 Annual General Meeting• Admiral’s corporate website, whichis regularly updated and contains all
relevant shareholder information.

For further information see:
Governance Report
Stakeholder engagement
Business model
Remuneration Policy

Admiral Group plc Annual Report and Accounts 2023

Outcomes and impact ofBoard decision-making

As part of the new Chair’s induction
process, Mike Rogers met with significant
shareholders to understand their viewson various aspects of the business,
including Admiral’s strategy and corporate
governance. This engagement assisted
the new Chair in shaping the directionof Board discussion and decisionmaking processes. The Remuneration
Committee incorporated feedback
received through direct engagementwith significant shareholders to assist
in formulating a revised Remuneration
Policy, ensuring there was an alignmentof interests. The Board considered theviews received through its shareholder
engagement programme, which fed into
its Board strategy sessions and assisted
in formulating the framework for Groupstrategy. The Board’s engagementwith stakeholders regarding Admiral’s£250 million Tier 2 bond issue along witha tender for the existing £200 million
5.5% subordinated Tier 2 notes ensured
this process was concluded without issue.
The Board also considered feedback
from shareholders as part of its process
when considering interim and final
dividend approval.

Our customers are at the heart ofour business and the focus of our
purpose to ‘help more people to lookafter their future. Always striving for
better together’. As a customer-centricorganisation, we seek to provide more
people with the opportunity to accessgood financial services products.
The needs of our customers shape theproducts we deliver, and their feedback
and expectations inform the designof our customer distribution channels
and platforms.
In 2023, we implemented the newConsumer Duty regulation with thegoal of monitoring and evidencing
good customer outcomes and making
enhancements, where required, to drive
even better outcomes. We continue to
use data and insights to inform theseprocesses thinking seriously about theoutcomes we deliver for our customers
and continually making improvements toour products and services where needed.
For more information see pages 60, 111
and 130.

How the business engages
with our customers

There are opportunities for the businessto communicate and engage with ourcustomers, and vice versa, throughout thedifferent points in the customer life cycle.
Some of these mechanisms include:• Discussions with our customer
service teams, new business andrenewals teams, claims teams, andcomplaints teams• Online customer portals: During 2023,
we built more functionality into the UK
customer portal to make services easierfor customers to access• Live chats with agents and ‘Admiral App’messages• Social media: In 2023, we increased
engagement through simplified
wording and website updates• Customer feedback through comment
forms, surveys, SMS, along withcustomer focus groups and panels• Perception studies: Frequently
reviewing the engagement
mechanisms across our customer base,particularly throughout digital journeys,
allows us to understand what is mostimportant to our customers and helps
us to continually refine and improve ourservice to customers.

How the Board engages
with our customers

Whilst not having significant direct
exposure to customers, the Board
continues to receive updates frommanagement on the treatment of its
existing customers and the various
processes that are designed to ensure
fair outcomes throughout the customer
journey. Customer satisfaction levels
are fed into Board discussions which
ultimately helps shape strategic decision
making, including plans related todigital investment and future productdiversification. The Board receives annual
feedback on the conduct risk framework
through the Group Risk Committee.
Board members also took part in calllistening in the customer claims area aspart of this year’s Board strategy meeting.

Outcomes and impact of Board
decision-making

During the year the Board, throughits reporting framework, oversaw the
implementation of the new Consumer
Duty regulations within the Group’s
relevant regulated subsidiary entities,
and received detailed updates as tothe progression against agreed plans.
The FCA were invited to the April 2023
Board meeting, where constructive
discussions were held around the
FCA’s expectations in terms of theimplementation of the new Consumer
Duty regime and how Admiral’s plans
met with these expectations. The Board
ensured that mechanisms were in place
to monitor the treatment of, along withthe outcomes for, our customers, andoversee that appropriate changes in
products and services would be madewhere required. The Board was able tooversee the further alignment of Admiral’s
processes as a result of its engagementwith the FCA and feedback throughcustomer surveys. The Board oversaw thesuccessful migration of over 6.5 million
customer policies to a new policy andbilling centre on Guidewire during theyear, which will integrate technologicalimprovements with enhanced security
measures, providing an improved
customer experience. The Board approved
the acquisition of the More Than direct
Home and Pet personal lines insurance
business from RSA in December 2023.
Once completed this will both support theBoard’s objective of diversification, whilst
offering existing and new customers astrong multi product proposition.

Page

113
87, 136, 137
8176

For further information see:
Strategic Report
Principal decisions
Consumer duty
Business model

Page

14
128
60, 111, 130
8Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Shareholders

92

93

Strategic Report

Section 172 Statement
continued

Communities

Why engaging with ourcommunities is important

Giving back to our communities is an
integral part of Admiral’s culture. As alarge employer across several countries,
we believe it is our responsibility toprovide employment opportunities for
those in the local areas whilst at the sametime, training and developing our people.
We are committed to recognising andpromoting diversity both within Admiraland within the communities in which
we operate. Issues identified throughengagement with our communities
include employability, social mobility,
educational opportunities, financial
inclusion, and support for sports, arts,and culture. By addressing these, we
demonstrate a genuine commitment
to the well-being of our community
stakeholders. This strategic engagement
not only reflects our values, but also
positions us as a responsible corporate
citizen, who contributes to long-term
positive change both within and beyond
the Group.

How the business engages
with our communities

Our engagement with communities
is driven by our people, who actively
participate in nominating and selecting
initiatives that align with local community
needs. This culture of giving and shared
responsibility is embedded across ourentire Group. Our approach to community
engagement includes:• Colleague volunteering:Through initiatives like our ‘Impact
Hours’ scheme, where our colleagues
contribute their time and skills to
support various community projects• Charity initiatives: We are involvedin a range of charity initiatives,demonstrating our commitment
to financial and resourcebased contributions• Partnerships: We foster partnerships
with organisations across theworld, recognising the importanceof collaboration in addressing key
community issues• Sponsorship and fundraising:We support community events
through sponsorships, fundraisingefforts, and the funding of projects
via our Community Fund and Match
Fund processes.
To manage risks and capitalise onopportunities as they evolve, our
Community Strategy is continuously
reviewed and adapted. Monitoring theimpact of our actions is integral to ourapproach, with feedback mechanisms
from our partners, our people, ourcommunities, and external entities
such as the Welsh Government.
This comprehensive system of monitoring
ensures that our community engagement
remains effective, responsive, andaligned with our strategic goals.
This objective will be further enhanced
going forward by moves to combine ourprogrammes to support community andenvironmental issues.

For further information see:
Strategic Report
Business Model
Sustainability
Admiral Group plc Annual Report and Accounts 2023

How the Board engages withour communities

The Board believes Admiral should be seen
as a force for good within its communities
and has oversight over the implementationof initiatives in line with this ambition
and receives updates as to their progress.
Locally, through our UK charitable giving,
the Board oversaw Admiral volunteering
14,000+ impact hours during 2023 and has
set the ambitious target of volunteering
25,000 impact hours in 2024 – seepage 66. Alongside this are numerous
community and sponsorship initiatives,
further details of which can be foundat www.admiral.com/community-andsponsorship. Further afield, internationallyour Global Emergency Fund, supportedby the Board, has enabled Admiral to
make fast donations when people andorganisations need it most, for example,
significant donations were made to assist
charities involved in the Turkey-Syria
earthquake appeal, the Canadian wildfires
and flooding in Italy. In 2023, Admiraldonated over £400,000 to a numberof urgent appeals through our Global
Emergency Fund – see pages 21 and 66
for further information.

Outcomes and impact of Board
decision-making

The Board received updates on key
community initiatives across the Group,
providing strategic direction andapproving innovative programs such as
our Community Investment Strategy
discussed on page 66. The Board reviewed
progress on the ‘Together for Better’
programme, Admiral’s commitment
to transforming futures in the local
community. This programme pledged,
over a five-year period, a percentage ofGroup profit as a financial commitment
to enable our Community Investment
Strategy to focus on helping local people
obtain employment, filling gaps in thelabour market, and an ambitious target
to cumulatively complete 100,000
volunteering hours in our communities.
Page

14
8
56

We are committed toachieving net zero greenhousegas emissions by 2040,
across all three scopes ofemissions, and to cut theseemissions in half by 203028.
Why engaging with environmental
issues is important

Engaging with environmental issues isstrategically important to Admiral andreflects our commitment to responsible
business behaviour and our recognitionof the importance of addressing climate
challenges. It also aligns with our purposeof ‘helping more people to look after
their futures; always striving for better,
together’. This commitment is driven by
several key stakeholder considerations:• Our people seek assurance thatthey are part of a Company
that actively contributes to theprotection of the natural world andaddresses the climate emergency.
Demonstrating responsibility
towards the environment is integral
to maintaining a motivated andengaged workforce• Our customers not only expect
protection for their property but
also want assurance that we aresafeguarding their future by adopting
environmentally responsible practices.
This builds trust and enhances
our reputation• Our shareholders and regulators
are increasingly concerned with howbusinesses respond to environmental
challenges – both how the environment
impacts the business and how thebusiness impacts the environment.
Demonstrating resilience toclimate-related events and seizing
opportunities aligns with their
expectations and contributes to theGroup’s overall robustness• Our commitment is to minimise ourdirect environmental impact, including
reducing our carbon footprint, andalso support our customers with thetransition to a greener society. This not
only aligns with regulatory and societal
expectations but positions us wellfor changes in markets and customer
expectations and also highlights
Admiral as a conscientious and forwardthinking organisation.

How the business engages withenvironmental issues

Our engagement with environmental
issues is multifaceted and reflects
a proactive approach to increasingawareness and taking concrete actions.
Key initiatives include:• Sustainability Steering Committee:
To support a more holistic and coordinated approach to sustainability
issues, the former Sustainability
Working Group and Climate Change
Steering Committee were replacedin 2023 by the Sustainability Steering
Committee (SSC) in Q4 2023.
Supported by five working groups,
the SSC is a management committeethat provides guidance on the overall
programme of sustainability-related
work and ensures a joined-up approachacross all Group functions and Group
entities. This includes environmental
issues such as climate change• Operational sustainability: Admiral isa carbon neutral entity. Key initiatives
to achieve this milestone included
investments in solar panels on ourheadquarters in Cardiff, purchasing ofenergy from 100% renewable sources(in the UK), and purchasing of Gold
Standard carbon credits since 2019
to offset its operational emissions.
This covers Scope 1 and 2 emissions,and partially covers Scope 3• Green Team initiatives: Our internal
Green Team is a working groupdedicated to green initiatives.
Regular internal updates from thisteam drive awareness and action tolessen the impact of climate change– both within the business and within
employees’ own lifestyle choices• Internal promotion: Special events
such as Green Week and Earth Day,
promoted internally, serve to raiseawareness and engage employees inenvironmentally responsible practices• Employee engagement: We actively
engage with employees throughforums, CEO updates, and various
recycling initiatives across our offices.
This ensures that our commitment
to environmental responsibility isembedded within our Group culture• Monitoring and reporting: We
recognise that environmental
disclosures are increasingly requested
by investors, shareholders, customers,
regulators and other stakeholders.
For 2023, Admiral made disclosuresconsistent with the Task Force on
Climate-related Financial Disclosures(TCFD), against the Streamlined
Energy and Carbon Reporting
Framework (SECR) and against the
Sustainability Accounting Standards
Board (SASB) Standards. In addition,
Admiral also reports on the Climaterelated Financial Disclosure (CFD)
requirements introduced in 2022 aspart of the UK Government’s Greening
Finance roadmap.
To read more on how the businessengages with environment issues see
our Sustainability Report on page 56, our
SECR disclosures on page 71, andour TCFD disclosures on page 73.

• Net zero ambition: We have formallycommitted to achieving net zero
greenhouse gas emissions by 2040
at the latest, across all three scopesof emissions, and to cut these emissions
in half by 2030.28 We are currently inthe process of securing verified
science-based targets that will enable
us to hit both targets.

28 Proposed baseline year for emissions cuts is 2021,
still to be verified by SBTi.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

We aim to ensure that
Admiral’s impact on society
is positive.

Environment

94

95

Strategic Report

Section 172 Statement
continued

How the Board engages withenvironmental issues

The Board reaffirmed the Group’s
sustainability agenda as part of a2023 strategy refresh, overseeing theappointment of a new Group Head of
Sustainability and enhancements tothe sustainability governance structure.
The Board also confirmed Admiral’scommitment to achieving net zero
greenhouse gas emissions by 2040, across all
three scopes of emissions, and to cut theseemissions in half by 2030, and reviewed
progress in relation to these ambitions.
Updates were received on requirementsfrom regulators and government initiatives
with regards to sustainability and climatechange. This included a review of the

For further information see:Business model
Sustainability
SECR and TCFD disclosures
Risk management

PRA’s position on climate change andthe financial system. The PRA notified
businesses that climate change presented
an increasing, material risk to firms andthe financial system and confirmed that it
was taking a more active role in supervisingfirms in relation to its expectations on
climate change. To address the increasingsustainability agenda, the Board oversaw
the introduction of the Sustainability
Steering Committee in October 2023
to provide a joined-up approach acrossall Group functions. More information
on how the Board assesses climate
related risks and opportunities alongwith the implementation of climate andsustainability initiatives is included in our
climate-related disclosure section on
page 71.

Page

8
56
71, 7398, 168

Partners and Suppliers
We aim to build strong,mutually beneficial working
relationships with ourpartners and suppliers.
Why engaging with our partners
and suppliers is important

Our partners and suppliers comprise amix of financial partners, reinsurance
partners, IT hosting, distribution, claims
management and services partners, andmany others. It is crucial that the Groupmanages these relationships effectively
to mitigate the associated third-party
risks across the supply chain. Our partners
and suppliers are considered strategicallyimportant to us either because (i) the
supplier is a material outsourcer, (ii) the
supplier or partner is integral to achieving
future strategic goals, (iii) there areparticularly preferential rates or terms inplace, or (iv) another factor which makes
the relationship hard to replicate or
replace. Admiral’s supply chain supports
our global operations in delivering services
to our customers and involves over 1,100
contracted suppliers.
We act responsibly when dealing with
our suppliers, choosing to support local
and regional providers where possible.
We also choose and encourage an ethicaland environmentally friendly supply chain
and also making sure we pay in a timely
manner to support the financial resilienceof our suppliers.

How the business engages with
our partners and suppliers

To ensure strong third-party suppliermanagement there are dedicatedprocesses across the Group to govern
end-to-end relationships. Key business
units have internal relationship managers
responsible for ongoing performance
management, which would include
ensuring active contract renewals,
negotiations, business reviews and service
improvement. Business continuity andexit plans are in place and are actively
managed. Admiral uses a dedicatedcontract management system tomonitor and support the governanceof procurement, provide tendermanagement, contract management,
supplier management and due diligence
under a single platform. The Group’s
dedicated regulatory relationship teams
maintain channels of communication
with the FCA and PRA in the UK, and
the Group’s international regulated
intermediaries and insurers have similar
teams in place.

How the Board engages with
our partners and suppliers

Whilst not having direct engagement withpartners and suppliers, the Board receives
updates from management on:• All proportional risk-sharing
agreements, including co-insurance
and reinsurance contracts

The Board takes all updates into accountwhen considering the long-term
consequences of its strategies andbusiness plan. The CFO provides updates
on the activities related to the renewalof the Group’s co-insurance, reinsurance
and quota share contracts, including
maintaining Admiral’s ongoing strategic
relationship with Munich Re.

Outcomes and impact ofBoard decision-making

The Board received updates on theperformance of our business partners
and suppliers through reporting frommanagement and the risk function, it also
reviewed supplier payment metrics in linewith the Prompt Payment Code of which
Admiral is a signatory. The Board hadoversight of the monitoring of Modern
Slavery provisions with key suppliers.
The Board also oversaw training rolled out
for relevant employees on conduct with
suppliers/partners including anti-bribery
and corruption and modern slavery.
The Board approved Admiral’s Modern
Slavery Statement for 2023 which sets
out the business’ zero tolerance approach
to modern slavery in all its forms. This isenacted through our policies, training
and risk management – for more details
around how we do this, our Modern
Slavery Statement is set out in full on
our website.

• Relationships with key partners andprocurement, including Admiral’s
payment policies and practices• Matters relating to partnerships
and opportunities• Customer-facing suppliers• Third-party risk management
regulatory, technological andconsumer trends• Modern slavery risks in the supply chain.

Admiral Group plc Annual Report and Accounts 2023

For further information see:

Page

Business model
Sustainability
Principal decisions
SECR and TCFD disclosures

8
56
128
71
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The Board is the principal governing bodyoverseeing sustainability-related issues
and takes ownership of sustainability andclimate-related topics and associatedstakeholder engagement. The Board
approves the Group’s sustainability
approach and our Environmental, Socialand Governance (ESG) ambitions which
can have a material impact on Admiral.
Milena Mondini, Group CEO, is theaccountable sustainability representativeon the Group Board. The Board receives
regular updates on climate and wider ESGrelated topics, providing feedback, andensuring alignment with our Responsible
Investment Policy.

Outcomes and impact ofBoard decision-making

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Non-Financial and Sustainability Information Statement
The non-financial and sustainability reporting requirements contained in sections 414CA and414CB of the Companies Act 2006 are addressed within this section by means of cross reference,
to indicate where they are located within the strategic narrative and to avoid duplication.
Page

Business model
Strategy
Financial stability
Key Performance Indicators

See page 8
See page 22
See page 11
See page 31

Sustainability

Page

Our approach to sustainability
Culture and values
Employees Diversity and Inclusion
Community engagement
Responsible investments

See page 56
See page 11
See page 62
See page 66
See page 64

Climate disclosure

Page

Task Force on Climate-related Financial Disclosures
Streamlined Energy and Carbon Reporting

See page 73
See page 71

Governance

Page

Risk
GovernanceSee page 98
See page 113

The policies in the table below can be located on our website www.admiralgroup.co.uk
PolicyDescription

Code of Conduct

Our Code of Conduct outlines the standards of behaviour that all colleagues must adhere
to regardless of their role. Colleagues are expected to abide by these policies and act withintegrity, due skill, care and diligence.
Our Health and Safety policy outlines our commitment to ensuring the health and safety ofstaff and anyone affected by our business activities, and our commitment to providing a safe
environment for those attending our premises.
Our Equality, Diversity and Dignity at Work policy outlines that Admiral is committed toensuring that any type of discrimination is not accepted. This policy outlines the standards of
behaviour that are expected from all employees to ensure that everyone at Admiral is treatedwith dignity and respect. This policy explains that all managers should be alert to potential
discrimination and harassment and actively prevent this from occurring, communicate thispolicy to all employees, and be responsive and supportive to anyone who makes a complaint.
Our Anti-Slavery, Exploitation and Human Trafficking policy confirms Admiral’s zero tolerance
approach to modern slavery, outlines our ongoing commitment to eliminating unethicalworking practices, and provides guidance to employees on reporting any problems identified
at work or in the community. We release an annual Modern Slavery Statement in line with theModern Slavery Act 2015.
Our Group Procurement and Outsourcing policy states that all employees who engage inprocurement activity must enhance and protect the standing of the business, maintain thehighest standard of integrity in all business relationships, promote the eradication of unethicalbusiness practices including modern slavery, and ensure full compliance with laws andregulations whilst continuing to drive the de-carbonisation agenda across Admiral’s critical,
strategic and key suppliers. This is enforced through strict controls and monitoring.
Our Whistleblowing policy encourages and enables employees to raise any concerns they
have about serious malpractice or wrongdoing. The policy is designed to ensure that an
employee can raise their concerns without fear of victimisation, subsequent discrimination,
disadvantage, or dismissal. This policy details internal and external reporting lines for any
employee concerns.
Our Financial Crime policy ensures that robust systems and controls are in place to detect,prevent and deter financial crime across the Group and ensures we remain compliant withapplicable laws and regulations in our operational jurisdictions. All areas of financial crime
are captured by this policy, including money laundering, market abuse and insider trading,sanctions regime, modern slavery, tax evasion and bribery and corruption.
Our Anti-Bribery policy strictly prohibits the solicitation or acceptance of any bribe, to or fromany person or company, by an individual employee, Board member, agent or other person or
body on Admiral’s behalf, in order to gain any commercial, contractual, or regulatory advantage
for Admiral in an unethical way or to gain any personal advantage for the individual or anyone
connected with the individual.
Our Gifts and Gratuities policy recognises that sometimes customers, suppliers or businessassociates offer gifts or gratuities to staff and confirms that all such gifts must be made andreceived openly and fairly, must not include cash, must be reported and be in line with the policy.
Our Tax Strategy policy documents our approach to taxation. The policy confirms that theGroup’s primary objective is to be compliant with all tax legislation requirements in all theterritories in which we operate.

Health and Safety

Equality, Diversity andDignity at Work

Modern Slavery

Procurement and Outsourcing

Whistleblowing

Financial Crime

Anti-Bribery and Corruption

Gifts and Gratuities

Tax

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Our businessGroup policies

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Principal Risks and Uncertainties
The table below sets out the principal
risks and uncertainties (PR&U) which
Admiral has identified through its
Enterprise Risk Management Framework(ERMF). The impact of those risks,development of the risks during 2023,
and actions taken to mitigate them
are explained below. This section also
includes a description of Admiral’s
approach to identify, manage, and govern
emerging risks.

Risk appetite: The Admiral Grouprisk strategy contains strategic riskstatements for the relevant risks which
help deliver the Group’s businessobjectives. The Group risk appetite isowned and approved by the AdmiralGroup Board. The responsibility for theGroup risk appetite is delegated to theGroup Risk Committee which reviews allcomponents prior to Board approval andmonitors the performance of the businessagainst the approved Group risk appetite
through the consolidated risk report andother risk reporting.

A

Reserving risk

Possible impact
on the strategic
initiatives

1 2

Risk
Admiral is exposed to reserving risk through its underwritingof Motor, Household and other insurance policies.
Claims reserves in the financial statements may prove
inadequate to cover the ultimate cost of claims which are by
nature uncertain.
This is a particular risk for motor insurance liabilities, where
the estimated amount payable for bodily injury claims(particularly large claims) can change significantly during
lifetime of the claim as a result of various factors including
external risks such as changes in Ogden rates (expected in2024), impacts of increased levels of Periodical Payment
Orders (PPOs) and claims inflation.
During this period, increased uncertainty in forecasting boththe level and duration of the impact of higher inflation rates
on claims reserves may lead to adverse development andhigher claims costs than projected.

Identification of risks
Principal risks (A–L)
Insurance Risk:

Insurance Risk

Group Risk:

Credit Risk:
H 	Credit risk

B Premium risk and catastrophe risk

E 	Erosion of competitive advantage
in UK Car insuranceC 	Reduced availability of co-insurance
and reinsurance arrangements

F 	Failure of geographic and/or
product expansion

D 	Potential diminution ofother revenue

G 	Reliance on price comparison
distribution channel

A 	Reserving risk

Market Risk:
I 	Market risk

Non-Financial Risk:

PPO claims are capital intensive owing to increased
uncertainty of the cost of these claims over a longer term.
There is therefore a risk of higher claims costs and loss ratios,
resulting in reduced profits or underwriting losses.

Mitigating factors
The Group continues to reserve conservatively, setting
its IFRS 17 risk adjustment in the financial statements
between the 85th and 95th percentiles which is aligned
to Group risk appetite.
Best estimate reserves are estimated both internallyand externally by independent actuaries.
For very large claims Admiral purchases excess of loss
reinsurance, which mitigates a portion of the loss.
Regular reviews of both settled and potential PPO cases
are undertaken by the Claims and Actuarial teams, withindependent actuarial analysis provided as part of theexternal reserving process.
Admiral’s investment strategy is the result of a structured,disciplined and transparent investment process. Longdated inflation linked assets are held to partly hedge therisks associated with PPO claims.

Risk development in 2023
The risk has reduced during the year as the uncertainty
caused by the inflationary environment has fallen, inparticular during the second half of the year, and morefavourable expectations with respect to the future Ogden
rate have emerged.

J 	Legal and regulatory risk
K 	Operational risk
L 	Reputation risk

Principal risks and uncertainties reflect
the main risks faced by the Company
in achieving its strategic objectives.
The strategic objectives have been
listed with the links to the strategy
noted against each principal risk anduncertainty (for more information on
the strategy refer to page 22).

Strategic objectives:
1 	Admiral 2.0: Continuing to build on historical strengths whilst becoming
even more agile, digital and technology-focused. Admiral 2.0 puts thecustomer first and leverages data and advanced analytics to constantly
be more efficient to improve their overall experience iversification: Building a sustainable and resilient business.
2 D
Admiral’s approach is to leverage the capabilities and knowledge fromthe established businesses to build future successful propositions
3 	Motor Evolution: Evolving the proposition for changes in mobility.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

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The Board, with support fromthe Group Risk Committee
and the Group Risk Function,
undertakes a regular androbust assessment of theprincipal and emerging
risks facing the Group
alongside engaging with the
management team on theGroup Strategy. These risks
have been summarised as
those which would threaten
its business model, future
performance, solvency or
liquidity, and reputation.

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Strategic Report

Principal Risks and Uncertainties
continued

Insurance Risk continued

Insurance Risk continued

B

C

Premium risk and catastrophe risk

Possible impact
on the strategic
initiatives

The risk of increased claims costs and/or reduced
business volumes could be driven by potential economic,
social, environmental, regulatory or political changesuch as the slowdown in China or the Russia-Ukraine andIsrael-Hamas conflicts, impacting supply chains and inflation,or new entrants to the market.
Admiral is exposed to the risk of higher losses
than anticipated due to the occurrence ofmanmade catastrophes or natural weather events,
potentially increased in frequency and severity due
to climate change.
Acute physical climate risks include changes in thefrequency of both large catastrophe events and severe
weather events, where trends are difficult to identify,
and which have large claims costs associated with them.

Mitigating factors
There are a number of aspects which contribute to
Admiral’s strong UK underwriting results, including:Possible impact
on the strategic
initiatives• Experienced and focused senior management andteams in key business areas including pricing andclaims management.

1 2 3• Highly data-driven and analytical approachto the regular monitoring of claims andunderwriting performance.
• Capability to identify and resolve underperformance
promptly through rapid and dynamic changes to key
performance drivers, particularly pricing.

Inflationary uncertainty and other factors could resultin a change in reinsurer appetite and an increased costof reinsurance protection for insurers. Climate change
and the increased frequency and severity of extreme
weather events, as well as increased chronic physicalrisks, could adversely impact the availability and costof reinsurance protection for insurers.

• Continuous appraisal of and investment in employees,
systems and processes.
• Monitoring the impact arising from climate changerisks, covering both physical and transitional risks,
as well as other Emerging Risks which may impact
premium or catastrophe drivers.

Admiral continues to enjoy a long-term relationship withseveral different co- and reinsurers, some of which areamongst the world’s largest.
Quota share and co-insurance arrangements are contracted
over a number of underwriting years. These long-termarrangements are in place throughout the UK andinternational businesses.

Unavailability of co- and/or reinsurance or at an
uneconomical price may mean that Admiral does not
co- and/or reinsure all the desired risks, leading toincreased costs should an adverse event arise.
Risk development in 2023
The risk has increased during the year with reduced
appetite of reinsurers in some areas leading to ahardening market. The recent January UK motor
reinsurance renewal was positive, however, but pressure
is likely to remain on other product lines in 2024.

A large flood or windstorm, causing extensive property
damage (both Motor and Household) to a significant
proportion of the portfolio, could lead to a larger than
anticipated total claims cost.

D

Potential diminution of other revenue

Possible impact
on the strategic
initiatives

1 2 3

Risk
Admiral earns other revenue from a portfolio of products
and services in addition to the core insurance products.
The level of this revenue could diminish due to political,
regulatory, legal, social/customer behaviour, strategic,
market or economic changes.
ImpactLower profits from business operations and lower returnon capital.
Risk development in 2023
The risk has trended broadly stable and within appetite
for the year. The risk has the potential to increase going
into 2024 due to a heightening market-wide regulatory
focus on ancillary and premium finance products.

Admiral Group plc Annual Report and Accounts 2023

Mitigating factors
Admiral mitigates the risk to its reinsurance arrangements
by ensuring that it has a diverse range of financially secure
partners, and that contract maturities are staggered toprevent a cliff-edge ending of a large reinsurance cover.

ImpactA potential need to raise additional capital to support
an increased underwriting share. Return on capitalmight reduce compared to current levels.

Admiral purchases excess of loss reinsurance, which isdesigned to mitigate the impact of very large individual
or catastrophe event claims.

ImpactHigher claims costs, reduced business volumes and/or higher loss ratios, resulting in reduced profits orunderwriting losses.

Risk development in 2023
The risk has trended broadly stable in 2023 as Admiral has
continued to manage the challenging external environment
with a disciplined, long-term approach to pricing andgrowth, with a focus on building the business for the longterm. The risk remains subject to increased volatility inweather patterns, as demonstrated by the ten named
UK storms experienced between September 2023 andJanuary 2024.

Risk
Admiral uses proportional co-insurance and reinsurance
across its insurance businesses to optimise the use ofcapital, to increase the return on the capital it does hold,and to mitigate the cost and risk of establishing new
operations. There is a risk that co- and/or reinsurance
cover will not be available or that it will be available atan uneconomical price in the future if the results and/or prospects of either the UK businesses or other lessestablished operations are not satisfactory to the coand/or reinsurers.

Mitigating factors
Admiral continuously assesses the value to its customerof the products it offers and makes changes to ensure
the products continue to meet customer needs and offer
good value.
Admiral seeks to minimise reliance on any single sourceby earning revenue from a range of products. This would
mitigate the impact of regulatory or market changes,
or changes in consumer behaviour, which might affecta particular product or income stream.
Admiral works closely with its regulators and other key
industry bodies to understand potential developments.

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1 2 3

Risk
The Group is exposed to the risk that inappropriate
premiums are charged for its insurance products leading
to either insufficient premiums to cover claims costs or
uncompetitive rates leading to reduced business volumes.
This risk is increased during periods of high inflation
leading to greater market uncertainty.

Reduced availability of co-insurance and reinsurance arrangements

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Principal Risks and Uncertainties
continued
Group Risk

Group Risk continued

E

G

Erosion of competitive advantage in UK Car insurance

Possible impact
on the strategic
initiatives

ImpactA worse insurance result and lower return on
capital employed.
A sustained and uncorrected erosion of competitive
advantage could affect the ability of Admiral tomaintain its customer base, profitability and reinsurance
arrangements, which might in turn require Admiral tohold more capital.

Mitigating factors
Admiral’s focus remains on the wide range of factors that
contribute to Admiral’s combined ratio outperformance of
the UK Car market. Some are set out earlier in the Strategic
Report, but other factors include:

1 2 3• A focus on maintaining a low-cost infrastructure, efficientacquisition costs, and strong expense controls.
• An experienced and focused management team.

Less profitable new business or slower growth in Europe.

• A robust and agile pricing discipline to ensure
prudent behaviour to try and protect Admiral’scompetitive advantage.

However, a more competitive market might benefit theinsurance businesses through lower acquisition costs.

H

One or more of the operations could fail to becomea sustainable, profitable long-term business, with theresult that the businesses do not collectively deliver the
profit diversification required.

The Group has developed a capital allocation framework
which seeks to allocate funding to those businesses most
likely to add to the diversification of profits or contribute to
the strategic objectives of the Group.

Product expansion into new areas or expansion throughM&A activity could lead to unprofitable business, could
increase regulatory risk, and may introduce new risks
into the Group.

The Directors are mindful of management stretch and anyother key interdependencies that may strain the business,regularly assessing the suitability of the infrastructure
in place for Admiral’s UK and international operations,alongside oversight and challenge from appropriate boards
and committees.

A collective failure of these businesses could threaten
Admiral’s objective to diversify its earnings by expanding
into new markets and products, though the failure of asingle product or geography is expected to be tolerable.
Risk development in 2023
The risk has reduced during the year, noting the strong
results from Admiral Money and improved performances
in most overseas markets. In addition, the acquisitionof the UK direct Home and Pet personal lines insurance
operations of RSA due in 2024 is expected to accelerate
diversification going forward.
Admiral Group plc Annual Report and Accounts 2023

Mitigating factors
Admiral contributes materially to the revenues of all four
major UK comparison businesses, and has a strong brandpresence, and therefore it is not considered probable thata material source of new business would be lost.
Admiral continues to grow its MultiCover and MultiCar
products which promotes retention. It also has a direct
offering to new and existing customers, with continuing
investment made to improve its online/digital offering.
Admiral continually looks to improve its customer experienceand business optimisation by sharing comparison distribution
learnings throughout the Group, leveraging applicable
experiences with brokers, and implementing additional
controls to enhance selection and underwriting criteria.
Distribution channels other than price comparison are
explored and used as and when deemed necessary.

Credit Risk

Mitigating factors
Admiral’s approach to expansion and product development
remains conservative, applying the test-and-learn philosophy
that has proven successful for previous operations.
International insurance businesses have generally executed
cautious launch strategies and are usually backed byproportional reinsurance support which provides substantial
mitigation against start-up losses in the early years.

ImpactHigher than planned losses and potentially closure costs,
and distraction of key management.

Risk development in 2023
The risk has trended broadly stable during the yearwith no material movement in the share of new businesscoming from aggregators.

• A strong Admiral brand and customer orientated culture
to attract and retain customers.

Risk
In line with the Group’s diversification strategy, Admiralcontinues to develop its UK insurance businesses, UK
non-insurance businesses such as Admiral Money, and its
international businesses. Admiral Pioneer is the vehicle
for the development and launching of new products andservices, other than those already covered by existing
established Group businesses.

Growth in developing businesses could exceed the scaleof infrastructure of the operation.

Risk
Admiral utilises comparison websites as an importantsource of new business and growth. Growth in this
distribution channel could slow, cease or reverse, orAdmiral could lose one or more of the websites as asource of customers.
ImpactA potentially material reduction in UK insurance new
business volumes, in particular for UK Motor.

Failure of geographic and/or product expansion

Possible impact
on the strategic
initiatives

1 2 3• A track record of innovation and ability to react quickly tomarket conditions and developments.

Risk development in 2023
The risk has reduced during the year as Admiral’scompetitiveness has increased despite making
significant price increases.

F

Possible impact
on the strategic
initiatives

The Group has established a sufficiently large and diverse
portfolio to mitigate the risk of failure of individual
new operations.

Credit risk

Possible impact
on the strategic
initiatives

1 2

Risk
Admiral is primarily exposed to institutional credit risk in
the form of: (a) reinsurance counterparty credit risk; (b)banking counterparty credit risk and/or (c) the credit riskof the investment portfolios.
One or more counterparties could suffer significant
losses leading to a credit default and the loss ofreinsurance cover or banking deposits, while adowngrade or default of investments could erode
their value.
In addition, Admiral Money’s loan portfolio exposes
the Group to retail credit risk in relation to customer
defaults on its unsecured personal loan and secured car
finance business.
Impact
The impact of a major credit event could be realised
losses and reduced capital, dependent on its natureand severity.
Admiral would also need to ensure that it continues tohave sufficient liquid assets to meet its claims and otherliabilities as they fell due.
Increased defaults could impact future profitably andlending capabilities.
Risk development in 2023
The risk has trended broadly stable during the yearwith no material movement in the credit quality ofsignificant counterparties.

Mitigating factors
Admiral monitors the credit quality of its reinsurance andbanking counterparties within Board approved limits.
The Group reinsurance policy is to contract with reinsurersthat are rated ‘A-‘ or above (taking the highest rating fromany applicable external rating agency such as S&P, AM Bestor Fitch), though there are circumstances where a lower
rating could be tolerated. In addition, major reinsurance
contracts are operated on a funds withheld basis, which
substantially reduces credit risk, as Admiral holds the cash
received from policyholders as collateral.
The credit risk in Admiral’s investment portfolio is managed
through diversification and appointing high-quality thirdparty asset managers. Limits on counterparties and certain
credit ratings ensure that credit risk is managed withinrisk appetite, and produces a high quality credit portfolio.
The Group invests in a range of liquidity funds which holda wide range of short duration, high quality securities, andin fixed income funds holding primarily investment grade
assets. Cash balances and deposits are placed only withhighly rated counterparties. Most long-term investments areheld in Government bonds to further mitigate the exposure
to credit risk.
Admiral considers counterparty exposure frequently
and in significant detail, and has in place appropriate
triggers and limits to mitigate exposure to individual
investment counterparties.
Admiral Money’s credit risk appetite is set to ensure thatthe risk taken is commensurate to the expected returns
whilst also considering customer affordability. Admiral Money
continuously monitors its criteria for new business pricing
and the performance of its portfolio.

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Strategic Report

1 2 3

Risk
Admiral typically maintains a significant combined ratio
advantage over the UK Car market. This advantage and/or the level of underwriting profit (and associated profit
commission) could be eroded by unfavourable loss or
expense ratio results, irrational competitor pricing, newcompetitors or technologies used within the insurance
market and/or regulatory intervention.

Reliance on price comparison distribution channel

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Principal Risks and Uncertainties
continued
Market Risk

Non-Financial Risk

I

J

Market risk

Possible impact
on the strategic
initiatives

ImpactMarket volatility (notably significant changes in risk freeinterest rates or material increases in credit spreads)
can adversely impact the value of the Group’s assets.
The Group’s solvency can also be adversely impacted
due to an increased regulatory valuation of claims
liabilities, in particular in relation to longer-dated
potential PPO claims.
Continued growth of the Group’s businesses outside theUK has altered the exposure to net assets and liabilities
in currencies other than pounds sterling, increasing theGroup’s exposure to Euros and Dollars in particular.
Risk development in 2023
The risk has trended broadly stable over the courseof the year, despite the market volatility seen earlyon, following the collapse of SVB and the takeover ofCredit Suisse. As observed with these banking failures
and increased geopolitical instability, event risk remains
heightened, however.

Mitigating factors
A dedicated Investment Committee, a Group Management
Committee, advises each Subsidiary Board and oversees
the investment management of funds as well as advisingon effective treasury and foreign currency exposure
management of the Group and each entity’s noninvested funds.

Possible impact
on the strategic
initiatives

1 2 3

Risk
As Admiral operates globally, across various business lines
and products, it is exposed to differing political regimes,
legal jurisdictions, regulatory expectations and tax systems.
Legal and regulatory risk may arise where Admiral fails
to identify, interpret, or fully comply with legal, tax
and/or regulatory requirements, in a timely manner.
Current examples include interpretation and compliancewith General Insurance Pricing Practices, the FCA’s
Consumer Duty regulations, updates to the Corporate
Governance Code by the Financial Reporting Council,
mandatory climate-related financial disclosures, and the
EU Whistleblowing Directive. This risk may also arise whereprevious industry, tax, regulatory and/or legal compliancestandards are revisited with negative consequences andapplied retrospectively, for the industry and/or the Group.

The Group policy relating to the managing of cash andinvested assets supports the Group’s compliance with theSolvency II Prudent Person Principle and PRA expectations.
The investment strategy focuses on preservation of
the amount invested, low volatility of returns, matching
duration and currency of liabilities, and strong liquidity.
The majority of the portfolio is invested in high quality fixedincome and other debt securities, and money market funds
and other similar funds in order to achieve these objectives.

Mitigating factors
Ongoing line one, two and three monitoring of the Group’s
compliance with current and proposed requirements.
Interaction with regulators and consultation with internaland external subject matter experts by Executive
Management and the Board.
Assurance gained through external reviews andbenchmarking exercises ensuring compliance with legal andregulatory requirements.
Strong change governance is a key control in managing
regulatory change.

Failing to meet increasing expectations from regulators,
legislators, and shareholders around climate change andbroader environmental, social and governance matters
could potentially lead to exposure to legal and regulatory
risk and potentially adversely impact other stakeholders’perceptions.

The Group’s mitigation for interest rate risk resulting fromlong duration PPO liabilities includes reinsurance cover anda continuing focus on appropriate investment strategies,
such as asset/liability matching, hedging options forthese liabilities, including of certain risks associated with
PPO claims.

A legal and regulatory risk could arise through incorrect
or delayed regulatory reporting.
ImpactExposure to regulatory intervention, censure and/or
enforcement action through fines and other sanctions.
Potential criminal and/or civil enforcement action.
Possible customer detriment, as well as negative
reputational and brand impacts.
Risk development in 2023
The risk has increased during the year due to theheightened regulatory environment, for example via theimplementation of the FCA Consumer Duty regulation.

K

Operational risk

Possible impact
on the strategic
initiatives

1 2 3

Risk
Operational risk arises within all areas of the business.
The principal categories of operational risk for Admiralare conduct risk, change risk, people risk, technology
risk, business continuity and operational resilience, data
governance risk, information security/cyber risk, process
risk, and outsourcing and procurement risk.
Impact
The following are a limited number of examples of thepotential impacts of operational risks:
Customer detriment, customer dissatisfaction, regulatorycensure/enforcement, and/or reputational damage asa result of Admiral’s action or inaction.
Being unable to service customers with the level ofdistinction associated with the Admiral brand.

Admiral Group plc Annual Report and Accounts 2023

Mitigating factors
Admiral operates a three lines of defence model, andinternal controls are in place and are monitored to mitigate
risks. The control framework is regularly reviewed, and theInternal Audit function has an agreed cycle of testing of
the adequacy and effectiveness of controls. The following
are a limited number of examples of how operational risks
are mitigated:• Conduct: Monitoring, managing and reporting on
customer outcomes, including the ongoing enhancementof Admiral Group Customer Outcomes MI; robust project
governance around legislative and regulatory changesuch as Consumer Duty implementation and monitoring;
attracting, retaining and motivating quality employees
to deliver superior customer service and to achievebusiness objectives.
• Change: Employing change governance and oversight at
a Group and Entity level; with external specialist support,
review and assurance utilised where required.
Admiral Group plc Annual Report and Accounts 2023

Strategic Report

1

Risk
Market risk arises due to developments in economic
and financial market conditions that result inmovements in interest rates, credit spreads and foreignexchange rates, or regulatory/legislative changes to thebasis of internal assumptions or methodologies.

Legal and regulatory risk

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Principal Risks and Uncertainties
continued

Non-Financial Risk

Non-Financial Risk continued

K

L

Operational risk continued

Possible impact Impact continued
on the strategic The move to a hybrid working world poses risks tothe culture that has underpinned Admiral’s historicalinitiatives
successes, both by increasing labour mobility andreducing the office-based activity that has been acornerstone of Admiral’s historic ways of working.

Making poor business decisions due to lack of system
availability and data integrity and/or data confidentiality.
Cyber events leading to loss of service, loss of data andpotential ransom demands.
Reductions in earnings and/or value, through financial
or reputational loss, from inadequate or failed internal/
outsourced projects, processes and systems, or frompeople related, hybrid working or external events.
Risk development in 2023
The risk has reduced during the year as hybrid working
has been further embedded and large change projects
have been navigated successfully.

1 2 3• Culture: Admiral has embraced more flexible ways ofworking to hire, motivate and retain employees and is
evolving hybrid working practices in ways that supportand maintain the unique culture.

• Process: Admiral’s internal control framework is regularly
monitored and reviewed within the three lines ofdefence model.
• Outsourcing and Procurement: Strategic reviews
are periodically undertaken to align procurement andoutsourcing arrangements with the wider businessstrategy and also in response to ongoing macroeconomic
challenges; monitoring outsourced activities throughongoing supplier relationship and performance
management and regular due diligence reviews.
Admiral also purchases a range of insurance covers to
mitigate the impact of a number of operational risks;
including Cyber Liability insurance subject to market
capacity, Civil Liability insurance, and Employers’
Liability insurance.

A negative reputation could have a significant impact
on customer trust, the share price and brand value,
which can be difficult to recover from.

Impact
The impact can be wide ranging and reputational risk can
impact customers, employees, shareholders, suppliers,
regulatory bodies and/or the community and media.

• Information security/cyber: Ongoing enhancementof the control environment to protect the Group fromthe continuously evolving cyber threat landscape.
Significant investment continues to be made in ensuringthat people, processes, and technologies are resilientto the wide-ranging tactics, techniques and procedures
employed by threat actors. Focus is also given to ensuring
there are robust mitigation plans in place to effectively
handle any incident, with simulations completed toensure prompt and effective response, containment,
and recovery.

• Data Governance: The Group is enhancing and further
embedding its approach to data ownership, the ongoing
review of data quality including responding to issues
when they are identified, as well as having a consistent
approach to the recording of data definitions and lineage
so that the data is better understood.

Admiral does not meet stakeholder expectations.

Reputational risk can be a secondary impact caused
by failures in any part of the Group such as operational
events. However it can also be a primary risk should thefirm’s perceived behaviours or communications not meetstakeholder expectations. In either case, a reputation
event could impact Admiral’s standing with customers,
regulators, employees, suppliers and other stakeholders
and could reduce profitability and investor support.

• Technology: Continuous investment in the Group’s
IT infrastructure, coupled with regular Executive
Management and Board review of effectiveness given
the strategic importance of technology in improving
the customer journey and enhancing businessdecision making.

• Business continuity and operational resilience: Staffing
a Line-1 major incident team within IT which is tasked
with maintaining system availability; business continuity
and disaster recovery plans are in place and are regularly
tested, alongside completion of an operational resilience
work stream; data is regularly backed-up to allow for its
recovery in the event of corruption.

Admiral Group plc Annual Report and Accounts 2023

Possible impact Riskon the strategic Admiral could be exposed to an erosion in trust as a resultof decisions, associations, actions or inactions, such that
initiatives

Mitigating factors
Admiral has in place risk appetite statements that set out
the level of risk the Group is willing to accept for each key
risk, and the Group monitors associated metrics that inform
reputational risk analysis for different stakeholder groups.
This analysis includes social media metrics, staff surveys,
and investor relation reports.
The Executive Management team is experienced, andreputational impact is considered across key decisions andmajor external events.
Given the breadth of events that could impact on Admiral’s
reputation, a number of the mitigating factors captured
in the other principal risks and uncertainties would also
mitigate reputational risk.
Admiral has a crisis response and communications plan thatseeks to minimise the reputational and other impacts of anevent once it has materialised.

Depending on the type of reputational risk event, theimpact could include reduced sales, reduced profitability,
a decline in share price, difficulty in recruiting andretaining talent, and increased regulatory focus.
Risk development in 2023
The risk has trended broadly stable during the year withno notable issues having a discernible impact.

Emerging Risks

The management of emerging risks isa key element of Admiral’s strategic risk
management, and emerging risks andopportunities continued to be reviewed
throughout 2023.
Admiral Group identifies and monitors
emerging risks, issues which may bepotentially significant, but may not be
fully foreseen, assessed or allowed for ininsurance terms and conditions, pricing,reserving or capital setting, or strategic
and business decisions. By their very
nature, emerging risks are many andvaried, with a high degree of uncertainty
around the likelihood of occurrence,
severity and/or timing. The broad analysis
of a wide range of emerging risks andopportunities may lead to a change instrategy, management behaviour, ways
of working or risk management andin turn, to a stronger and more robust
business which better delivers on its
commitments to customers, employees,
and other stakeholders.

Emerging risks are identified via horizon
scanning. This involves an extensive
literature review, consultations withinternal working groups, and interviews
with internal stakeholders, subject
matter experts, and external specialists.
Emerging risks are assessed using aninternally-developed framework, which
includes qualitative and quantitative
analysis to grade each emerging risk
on a scale designed to be comparable
across entities and compatible withmanagement of operationalised risks.
Evaluation of the potential impact toAdmiral includes consideration of how
the risk may interact with existing
principal risks and uncertainties (PR&Us),
as well as any new risks that could
arise. It also covers the precautionary
deployment of management actions andmitigating controls.

Admiral’s Emerging Risk Radar captures
an assessment of potential impact andtime to crystallisation for emerging risks.
It categorises each risk into four broad risk
segments: (a) social, political & economic,(b) legal & regulatory, (c) technology and(d) environmental. Plotting emerging risks
in this way can shed light on the macro
trends with common drivers and effects.
Reporting on emerging risks andopportunities is provided to the GRC andrelevant Boards, is incorporated into theGroup ORSA Report, and is discussedwith the senior management and entity
risk teams.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

1 2 3

Mitigating factors continued• People: Employing targeted recruitment and identifying
potential leaders through internal development, talentmanagement and retention processes for the purposesof succession planning; an ongoing commitment todiversity and inclusion.

Reputation risk

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Strategic Report

Viability Statement

Reflecting

Hola! I’ve been in the AdmiralGroup for 12 years and spent thelast 8 of those years as CEO of
our Spanish insurance business –Admiral Seguros.
As CEO of Admiral Seguros, I oversee a
fantastic team of people, based mostly
in Seville. We serve our 440k Spanish
customers through the Qualitas Auto,
Qualitas Classic and Balumba brands.
I originally joined Admiral as a Business
Development Manager, reporting into
Henry Engelhardt. Previous to Admiral
I had been a senior manager in PwC
Madrid, also completing an MBA at
INSEAD. In my first day on the job Henry
asked me if I would mind delaying mytraining and flying to the US, to support
a team investigating what would later
become Compare.com. Thus started an
intense but fun-packed three years during
which I worked closely with both Henryand David Stevens, running group projects
and launching the UK telematics product.

In 2014 I had the chance to move to Parisand support the in-sourcing of our French
operation, L´olivier. From there I moved toSeville and transitioned into leadershipof the Admiral Seguros team at the time
Cristina Nestares moved to the UK.
What struck me about Admiral when I
first joined was its open culture, combinedwith a strong willingness to do things
differently and to trust in people as adriver of results. I’m pleased to say that 12
years on, the Admiral culture is still verymuch prevalent across the Group.
It’s been great to reflect during 2023 on
everything the Group has achieved in thelast 30 years. I look forward to continuing
to build together on this success.

USA

Admiral Group plc Annual Report and Accounts 2023

“What struck me
about Admiral when
I first joined was its open
culture, combinedwith a strong willingness
to do things differently
and to trust in people asa driver of results.
I’m pleased to say that
12 years on, the Admiralculture is still verymuch prevalent acrossthe Group.”
Sarah Harris
CEO, Admiral Seguros

Cardiff
Paris

SevilleAs per provision 31, Admiral considers
three years to be a period of assessment
over which it has a reasonable degree ofconfidence. Although the Group reviews
financial projections that extend beyond
the three-year time horizon covering theyears up to 2028, Admiral considers that
there is an inherent risk and uncertainty
in projecting beyond this three-year
period, as the degree of certainty inthe impact of internal and external
developments reduces greatly due tothe nature of Admiral’s primary business(one-year insurance policies). However,these financial projections contain no
information which would cause different
conclusions to be reached over the longterm viability of the Group.
At least annually, the Group produces an
ORSA report, which is one of the sourcesof evidence used by the Board to assess
viability. The ORSA report sets out adetailed consideration of the principal
risks and uncertainties facing the Groupand considers current and projected levelsof solvency and liquidity over the short tomedium term.

In addition to the ORSA, the Board utilises
other relevant reporting, some of which
is longer term in nature. Notably theseinclude five-year financial projections
reviewed twice a year, three-year solvency
projections reviewed at least twice a year,
and a one-year financial budget for theforthcoming 12 months approved on anannual basis.

Key strategic decisions, including thesetting of dividend payments, consider
the solvency impact against the Boardapproved capital risk appetite of 150%,
which is a key criterion for the Board inassessing viability. Refer to the Strategic
Report (page 54) for information on
sensitivities to the reported 2023 solvency
ratio position.

Another source of evidence is thealignment of the financial and businessplanning process and the solvency
assessment, referred to within Admiral
as the capital plan. This makes sure that
Admiral is appropriately capitalised ata fixed point in time as well as over the
future planning time horizon, given
Admiral’s principal risks and uncertainties
and a plausible range of potential stressed
conditions. The capital plan is a key
consideration for Group and Subsidiary
Boards in assessing and approving thebusiness strategy, business/financial
plan, capacity to pay dividends, andkey business decisions.

To assess the robustness of the Groupto the impact of various risks, 13 S&STs
and two RSTs have been quantified tounderstand the potential impact on theGroup’s solvency ratio. In 2023 a range of
scenarios have been performed, capturing
insurance risk, market/credit risk, strategic
risk, natural catastrophe, climate change
and cyber/operational risk.

The quantitative assessment considers
how the regulatory capital requirements,
economic capital needs, own funds
and solvency position of the Group areprojected to change over the three-year
horizon, with a requirement to maintaina solvency ratio above the approved
capital risk appetite buffer throughout
the projection.
As part of the ORSA process, a seriesof sensitivity, stress and scenario tests(S&STs) and reverse stress tests (RSTs)
are examined and quantified basedon the regulatory capital basis (whichis the standard formula method withadjustments tailored to reflect Admiral’srisk profile) to understand the potential
impact on the Group’s solvency, liquidity
and profitability over a three-year period.
In addition to these Group tests, there arealso entity-specific scenarios, consideredof lower materiality to the Group, that are
performed by each subsidiary insurance
entity as part of their ORSA processes.

The results provide comfort that Admiral
has sufficient capital to withstand theextreme scenarios. Whilst the 150% lower
trigger is breached in five instances –three severe inflation-based scenarios, a
US banking crisis scenario and a liquidity
stress, should such scenarios actuallyoccur there are a number of management
actions, including adjustments toshareholder dividends, that would becalled on to alleviate capital pressures andimprove the solvency ratio to bring it backabove the 150% buffer. Another exception
is an extreme RST, combining severe
and extreme insurance and market
risk scenario combinations with credit
and liquidity risk. In the absence ofmanagement actions, this would resultin a breach of the 100% solvency ratio
but, as is the intention of the RST, it isconsidered to be an extremely remoteoutcome, being well in excess of a
1-in-200-year event. Overall, the Groupis likely to remain adequately capitalised
and liquid in future, given the results of
the S&STs.

The results of the stress tests form partof the process to set the Group’s capitalrisk appetite, which seeks to hold a buffer
on top of the Group’s regulatory capitalrequirement that is sufficient to protect
its regulatory capital position against arange of significant but plausible potential
shocks and stresses.

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

ON INTERNALMOBILITY AT ADMIRALIn accordance with
provision 31 of the 2018
UK Corporate Governance
Code, the Directors haveassessed the prospects of theCompany over a three-year
period, having referenced
the Group’s Own Risk andSolvency Assessment (ORSA),
the Capital Plan, risk strategy,
risk appetite, principal risks
and uncertainties, key risk
drivers, and ongoing risk
management activities.

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Strategic Report

Viability Statement
continued

The Admiral Group Risk Strategy is
considered and approved by the Board.
The strategy is directly linked to thebusiness plan and seeks to ensure that
all risks are managed effectively toallow the Group to meet its strategic
aims (page 22). Supporting this is theAdmiral Group Risk Management Policy,
which sets out Admiral’s approach to risk
management, as well as the governanceof risk management across the Group.
This approach ensures that there isappropriate oversight of the Group’s risk
profile, and that the Group remains withinrisk appetite in all its operations.
While each of Admiral’s principal risks
and uncertainties could have potentially
impacted the Group’s performance,
during 2023 the following key risk drivers
were seen to be of notable importance:changing economic outlook, geopoliticalinstability, technology, cyber andoperational resilience, Consumer Duty,
and climate change.

Changing economic outlook:

Admiral has reviewed and continues
to monitor the Group’s solvency andliquidity positions in response to market
volatility and wider economic uncertainty,
considering factors such as sustained highinflation, banking uncertainties resulting
from the collapse of regional US banks
and the UBS rescue of Credit Suisse,
the wider impact of continued supply
chain disruption, high energy prices,high interest rates, and the pressures
on individual Household finances whichhave led to a cost of living crisis in many
countries. Some of the current trends
in risks most impacted by the changing
economic outlook are highlighted below:
Premium Risk and Catastrophe
Risk: Global uncertainties, supply
chain pressures and increasing vehicle
repair and replacement costs haveall contributed to claims inflation.
While labour shortages have generally
eased, wages have also grown quickly
to keep up with inflation, impacting largebodily injury claims. In most insurance
markets, motor claims frequency has
increased but is still noticeably below
pre-pandemic levels. Admiral continues
to manage these challenges with adisciplined, long-term approach topricing and growth, with a focus onbuilding the business for the long term.
Credit Risk: Cost of living pressure has
seen growing demand for the “essentials”
insurance product and a modest increasein the number of loan customers
falling into arrears. Controls are in place
to identify and support vulnerable
customers on a case-by-case basis.
Within Admiral Money, the screening
process has been adjusted to include
stricter creditworthiness and affordability
checks to ensure that customers areresilient to ongoing inflation. The loan
portfolio is subject to regular stress tests
and the risk adjusted returns achieved
indicate a resilient portfolio.

Reserve Risk: The Group has a prudent
approach to reserving, which helps tominimise the impact of inflation and helps
build strong, resilient businesses for thelong term. Provision has been made forthe impact of inflation on unsettled bodily
injury (BI) claims, for which cost of care is
the primary driver, ensuring that reserves
capture excess inflation for all large BI
heads of damage exposed to inflation,
but particularly for wage inflation over
the average time it takes for BI claims tosettle. This continues to be reviewed, with
best-estimates of these impacts beingreflected in the reserves recognised as at
the balance sheet date.
Operational Risk: While 2023 has seen
the relative normalisation of working
conditions following the pandemic-era,the business has continued to review
the impacts and level of operationalrisk in the context of a modern, hybrid
workforce. Admiral received real living
wage accreditation in the UK in July which
helped to support colleagues throughcost of living concerns.

Geopolitical instability:

The escalation of geopolitical risk
following the Russian invasion of Ukraine
led to a review of potential exposure
across the Group’s PR&Us. At that time,
both market risk and insurance risk were
flagged as key areas to monitor.
Market Risk: The initial investment
spread shock was of brief durationand there was very limited indirect
exposure across the investment portfolio.
Market risks are reviewed by theinvestments team and asset managers
to ensure Admiral is adequately positioned
in this rapidly changing environment.
Insurance Risk: The risk of reduced
availability of co-insurance/reinsurance
arrangements remains heightened due
to tensions between Russia-Ukraine andan anticipated Ogden rate change in 2024,
however monitoring is being undertaken
to adequately react to any scenario.
More recently, Admiral reviewed its
exposure to geopolitical conflict in
response to the outbreak of the 2023
Israel-Hamas war. Initial analysis suggests
there is no reason to believe Admiral will
be materially impacted as a result of theconflict. The position is being monitored.

Cyber and operational resilience:

Admiral’s strategy to drive continuous
delivery of good customer outcomes
includes effective and safe usage oftechnology and data. In support of thisthe Group Risk function has specialist
staff which:• Complete oversight, challenge
and escalation of Technology andInformation Security risks throughregular engagement with each of thebusinesses within the Admiral Group;• Monitor the risk position throughsetting and review of specific KRIs,
with reporting and, where appropriate,escalation through to Committees;• Ensure that there is an embedded
Group Cyber Crisis management
plan which includes all necessary
stakeholders to ensure the effective
response to a cyber crisis; and• Work with the businesses to undertake
deep-dive reviews of specific topics
highlighted through threat intelligenceand the key cyber risks facing
the Group.

Consumer Duty:

The FCA’s Consumer Duty came into
effect on 31 July 2023. The Duty
introduces higher and clearer standardsof consumer protection across financial
services and requires firms to focus on
customer outcomes. This aligns with
the Group purpose and commitment todelivering good customer outcomes for
all customers. Admiral has worked hard toreview critical customer communications
and interactions, products and services,and customer journeys to align with therequirements of the Consumer Duty.
Admiral has also had close engagementwith external third parties and the FCA
throughout the year on the Consumer
Duty implementation and requirements.
There is an ongoing focus to ensure that
the Consumer Duty is fully embedded
within the business and Admiralcontinue to monitor this to ensure that
good outcomes are being delivered
to customers.

Climate change:

Admiral remains committed torecognising and understanding therisks and opportunities posed byclimate change to the Group, as
well as to mitigate its impact on theenvironment. Climate-related risks canimpact on all of Admiral’s business lines,
operations, investments, and reinsurance
arrangements. Admiral Group recognisesthat while there are risks from delayed
action, there are also opportunities fromconsidering the challenges, including
the potential to accelerate the Group’stransformation, to build resilience, and to
gain competitive advantage in new andexisting markets.

Strategic Report Approval

The Strategic Report is approved for issue
by the Board of Directors, and signed onbehalf of the Board:

Milena Mondini de Focatiis
Group Chief Executive Officer
6 March 2024

As part of this work there is an ongoingGroup focus on:• Ensuring full compliance withexisting and emerging regulatory anddisclosure requirements• Researching climate-change trends andassessing the risks and opportunities
arising from climate change• Incorporating climate-related risks intobusiness-as-usual risk management
and financial planning, such asenhancing Admiral’s climate scenario
testing capabilities, linking climaterelated targets and achievements
against the directors’ remuneration,and better reflecting climate change
considerations in projections from theBusiness Plan and• Continuing efforts to further reduce theGroup’s carbon footprint.
Admiral Group’s strategy linked to climatechange is discussed in more detail in the
Task Force on Climate-related Financial
Disclosures disclosure (page 73).
Based on the results of this analysis, theDirectors have a reasonable expectationthat the Group will be able to continue inoperation and meet its liabilities as theyfall due, for the period up to and including
December 2026.

29 Please also see note 6 to the financial statements which sets out the Group’s objectives, policies and procedures for managing financial assets and liabilities.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Strategic Report

Risk management is an essential part ofAdmiral’s operations, and successful risktaking is key to the Group achieving its
business objectives. Risk management
is therefore a key consideration whensetting the Group’s strategy, managing
performance, and rewarding success.
The current risks that are faced by theGroup are captured in the Risk Universe,with the most notable risks captured
in the Group’s principal risks anduncertainties (page 98)29. In addition tothese principal risks and uncertainties,
the Group also considers a range of
emerging risks that could impact theGroup to varying degrees in the future,
but which are not yet fully understood,
including those related to climate change(page 107).

112

Strategic Report

Celebrating

ADMIRAL’S CUSTOMERCHAMPIONS
We love to celebrate when ourcolleagues go the extra mile fora customer, to ensure we recognise
and reward exceptional service.
Every month our UK CEO Cristina
selects a customer champion, acolleague that has gone above andbeyond for a customer.
Nancy from our Canadian operation
was awarded this title for her amazing
service to a customer who had been in
an accident. The customer was still on theroadside with a car that couldn’t be driven
and feeling very shaken up. The initial
contact with our customers is usuallya brief call to get them and their car
home safely.

However, in this instance the customer
had no one else to call for comfort so
Nancy called the customer back after
their initial call. She stayed on the linewith the customer for 30 minutes
supporting them until the recovery
vehicle arrived.
We understand that customers can bein a state of anxiety or shock when they
initially contact us, we accompany themon some of their worst days, which is why
we always try to help make the processeasier with a friendly voice at the end of
the phone.

Admiral Group plc Annual Report and Accounts 2023

113

In this section
114 Chair’s Introduction to Governance
116 Q&A with the Chair
118 Board of Directors
125 Board Leadership and Company Purpose
140 Division of Responsibilities
146 Nomination and Governance Committee Report
161 Audit Committee Report
168 Group Risk Committee Report
172 Remuneration Committee Report
174 Remuneration at a Glance
176 Director’s Remuneration Policy
185 Annual Report on Remuneration
198 Directors’ Report

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

CORPORATEGOVERNANCE

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115

Corporate Governance

Chair’s Introduction to Governance

Building
A DIVERSIFIED BUSINESSWITHIN AN EFFECTIVE
GOVERNANCE FRAMEWORKGovernance at a glance

Board gender

Board independence

Board Director skills
Finance
Risk
Insurance
Executive Strategic LeadershipMarketing/Retail8 Independent

M&A
City

2 Non-Independent

6 Men

1 Chair*

5 WomenInternational

Board ethnicity

Board tenure
Corporate Governance

Tech/Digital/Data
Operations

Dear Shareholder,

On behalf of the Board, I am pleased
to present Admiral’s Governance Reportfor the financial year ended 31 December
2023, my first as Chair of the Board.
Through the course of my first year,
I have been impressed with the focus
that Admiral places on ensuring thatan effective governance frameworkcomplements its unique culture andthat both are embedded throughout
the Group. This report describes theframework in place to ensure our Boardand its Committees are operating
effectively by supporting and challenging
management to maintain high standardsof governance across the Group as we
continue to drive long-term value forall our stakeholders.

Board changes

2023 has been a year of considerable
change for the Board of Admiral. I was
honoured to take over the responsibilityof Chair of the Board following Annette
Court stepping down as Chair at the 2023
Annual General Meeting. You can find a fulldescription of my appointment process
in last year’s Annual Report. Following theannouncement of my appointment inJanuary 2023, I went through a bespokeand comprehensive induction, detailsof this process are set out on page 151.
Again, I would like to express my gratitude
to Annette for her exemplary leadershipof the Board. I can confirm that my fellow
Board members and the wider Admiral
Team are equally grateful for Annette’s
dedication and thoughtful guidance.
Jean Park retired from the Board and all
her Admiral commitments with effectfrom 20 January 2023, having spent nine
years on the Board. As I have previously
mentioned, it was with great sadness
we learnt that Jean had passed awaychange across the Group. Following his
resignation from the Board, Keith chaired
and served on a number of subsidiaryboards until he retired as a director in
2019. Keith then continued to undertake
mentoring roles to many of the Admiralmanagement team until shortly before
his untimely death. Keith was universally
liked, respected and admired by somany across South Wales and beyond
and will be deeply missed by the whole
Admiral community.

“The Board is focused ondelivering Admiral’s
purpose and building its
culture through aframework of good
governance and establishedvalues which, in turn,will deliver long-term,
sustainable returns
to our shareholders.”
Mike Rogers
Group Chairin May 2023. Whilst Jean left prior to
my joining the Board, I am well awareof the invaluable contribution she madeto Admiral and the Board throughout her
nine years’ service, as well as the esteem
within which she was held by her fellow
Board Directors and our colleagues acrossthe business.
Sadly, we also learned that our former
Board colleague Keith James passed
away in May 2023 after a short illness.
Keith joined the Board in 2002 and served
until 2012 overseeing huge growth andAdmiral Group plc Annual Report and Accounts 2023

We were delighted to welcome Fiona
Muldoon who joined the Board on
2 October 2023. Fiona was appointed
as a new independent Non-Executive
Director and member of the Audit
Committee. Fiona’s biography can befound on page 123. A description of theappointment process undertaken to findand recruit Fiona is set out on page 149.

People and culture

One of the most significant and enduringobservations from my first year as Chairis the sheer quality of people we haveat Admiral and the passion they show
for the business, this is demonstrated
every day in the work they do. There is a
special culture embedded throughout
the Group, which I believe is unique toAdmiral. We build our culture throughour purpose and our values, these are notjust words on paper, they are lived daily
by our teams and integrated througheverything we do as a business. On behalfof the Board, I would like to thank all our
employees for the hard work, dedicationand enthusiasm they have shown
throughout the year. Our people and our
culture are what sets us apart from othercompanies and are the reason why in2023, Admiral was acknowledged as thebest large Company to work for in the UK,
and our Chief Executive Officer, Milena

Entrepreneurial
Lending
Small /Medium Enterprise
Remuneration/People
ESG/Sustainability

0

2

4

6

8

10

12

* Independent on appointment

Mondini de Focatiis, was recognised as
the best leader of a big Company at theBest Companies to work for awards, seemore at www.b.co.uk. You can find out
more about our culture and why Admiral isconsidered a great employer throughout
this report.

ESG and sustainability

ESG and sustainability considerations form
part of the narrative to every decision
we take as a Board and are integral
to the formation of our wider Group
Strategy. During the year, the Board
considered the effects of the cost of living
situation and, amongst other financial
and non-financial measures taken to
keep employees healthy, motivatedand productive, declared a 5% salary
increase for all our UK based employees.
Further information on this can be foundon page 129.
With regards to diversity, I am pleased toreport that the Admiral Board exceeds
the FTSE Women Leaders Review targets,with a range of 45% to 55% female Board
representation during the year. We havea female CEO and Senior Independent
Director and have met The Parker Review
target for Director ethnicity at Group
Board level. Whilst this is positive, wecannot rest on our laurels, there is still

10 White British or other White(including white minority groups)

2 0–2 years

3 4–6 years

1 Asian /Asian British

4 2–4 years

2 6+ years

much work we can do to ensure a fully
inclusive environment sits alongside
a diverse pipeline of talent to drive
the business forwards. You can readmore about our diversity and inclusion
initiatives on pages 62 and 154.
Climate change and the wider
environment are important considerations
we take into account as a Board. You canread about how Admiral has taken steps
to meet its environmental obligations
through its TCFD and SECR reporting
disclosures set out on pages 71 and 73.
As Chair, I am conscious that the Boardis accountable to all our shareholders
and wider stakeholders such as our
employees, customers, partners,
suppliers, communities and theenvironment. We maintain an active
dialogue with our shareholders and haveregular interaction with all our wider
stakeholders. How we do this is set out
in our section 172 statement on page 87
along with further details on page 136.

Effectiveness

The Board conducted an evaluationof its own performance and those of
its committees in December 2023.
In line with its three-year cycle, thisreview was conducted internally by
the Company Secretary in conjunction

with myself. The findings from the2023 evaluation along with an updateon the progress made against thoserecommendations from the previous
year’s external review process can befound on page 158. This process gives
a clear focus on what we can do as a
Board to improve during the forthcoming
year, however it did confirm that theBoard and its committees are working
effectively in ensuring the businessis managed for the long-term benefitof all our stakeholders.
I would like to thank my fellow Board
members for their insight and support
during my first year as Chair. I lookforward to our 2024 AGM, which will
once again be held in person on 25 April
2024. Further details will be publishedin the Notice of Annual General Meeting,which will be sent or made available toshareholders on the Company’s website.

Mike Rogers
Chair

6 March 2024

Admiral Group plc Annual Report and Accounts 2023

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117

Corporate Governance

Q&A with the Chair

Helping
PEOPLE LOOK AFTER
THEIR FUTURE

How valuable did you find yourinduction process in preparing
you for your role as Chair?

My induction process was incredibly
helpful and insightful. One of myoverwhelming impressions of Admiral is
how knowledgeable and collaborativecolleagues are across the UK and beyond.
Admiral staff generally have a very longtenure and therefore the knowledge
that they build up and are able to shareis incredibly valuable. I believe that theway that Admiral colleagues collaborate
so closely really adds to the overall
competitive advantage that Admiral has
been able to maintain for so many years.
Meeting with management during my
induction process has really reinforced
this in my mind. On top of meeting
management, I have also spent time
listening to customer calls as well as
spending time in a number of call centreswith our front-line staff. Everyone I have
met has been generous with their timeand it is clear that people at Admiral love
working here.
See page 151 for further information

What does effective governancemean to you and how is thisdemonstrated at Admiral?

Throughout my career I have seen howembracing effective governance, initiatedat the most senior levels of a Company
and cascaded down through the business,builds a culture where integrity andvalues are put at the very heart of howthat business operates. This in turn allows
trust to be built through accountability
and transparency, which encourages
investment and the building ofstakeholder relationships with confidence
and mutual respect. At Admiral, I haveseen this integrity demonstrated througha strong sense of purpose and values, led
by an effective Board who understandand espouse the benefits that effective
governance can have on building a positive
workplace culture and, ultimately, on theperformance of the business. Whilst this in
itself cannot guarantee Admiral’s success,it certainly can create a strong base fromwhich the Company is given the best
opportunity to flourish.
See page 113 for further information

What have been your initial
impressions of Admiral’s culture
during your first year?

Before I joined as Chair, I was aware of
Admiral’s reputation for its unique culture,
this was a factor in guiding my decision
to join the Company. Having spent myfirst year visiting all areas of the businessand meeting a large cross-section of ourcolleagues, I can honestly say that I havenot been disappointed. I believe I can sum
up Admiral’s culture with the following
words: engaging, innovative, collaborative,
inclusive, focused, conscientious andfun. The Board and senior management

Admiral Group plc Annual Report and Accounts 2023

team view our culture as the heart ofwhat Admiral is, and what it stands for as
a business. Admiral’s culture is key to why
the Company has been so successful ingrowing over the past 30 years to where
we are today and, for this reason, should beprotected at all costs. Amongst the many
awards received which reflect our culture,
we were delighted to be named Best Large
Company to work for in 2023 and our CEO,Milena, was awarded Best Leader of a Big
Company at the Best Companies Awards.
See page 132 for further information

How much consideration should
the Board give to Admiral’s
purpose and values during its
decision-making process?

Embracing people from all areas of society
and walks of life brings with it different
experiences, skills and perspectives. This inturn delivers a stronger, more creativeand capable workforce. Inclusive anddiverse workplaces foster a keen senseof belonging and create an environment
where employees feel their contributions
are valued and respected, this enhances
the culture of the Company. High quality
candidates are attracted to diverse andinclusive companies and employees feel
more comfortable and satisfied within
inclusive environments, creating loyalty
and reducing attrition. Equality is one of
the four pillars of Admiral’s culture andI’ve been impressed with the seriousness
and focus the Group gives to ensuring
diversity and inclusion, from the Board
through to all levels within the Company.
We have many forums throughout
Admiral which focus on all aspects ofdiversity and inclusion, this is key toenhancing our culture and ultimately the
success of our business. The team is proudof its diverse working culture – it’s whatmakes us Admiral.
See page 154 for further information

Why is stakeholder engagement
important to Admiral?

Stakeholder engagement is a key
responsibility for the Board, we value
all our stakeholders and throughunderstanding their individual needs
the Board is able to create a balanced
and fair approach to their varying,sometimes conflicting, interests.
Engagement through effective
communication builds trust, credibility
and confidence, and we take into accountour various stakeholder views andopinions to build a shared vision for the
future. Engagement also brings clarity
and alignment as to what the businesswants to achieve and consensus as to how
it should do this. Our stakeholders havea huge wealth of relevant knowledge
and experience which we are able to tap
into to help Admiral be more impactful,sustainable and successful, whilst at thesame time assist in mitigating potential
risks, conflicts and resistance to change.
The Board understands the importanceof these relationships and Admiral has
an in depth understanding of who ourstakeholders are and how best to engage
with them for the benefit of the Company
in the long-term.

What does being a sustainablebusiness mean to the Admiral Board?
As a Board we understand that having
an understandable, transparent andsustainable approach to business has
environmental, economic and social
benefits, not just for our stakeholders but
for society as a whole. We have a duty topromote sustainable working practices
and, where possible, to mitigate thenegative aspects of any impact we haveon our environment. Everyone benefits
from working in a more sustainable
environment and by doing our best to
reduce emissions and promote equality,
as a couple of examples amongst
many, we can do our small part to help
secure and build a society for future
generations. As a Board, we understandthat the perception from our stakeholders
around Admiral’s commitment to beinga sustainable business has a bearing on
our reputation, our customer loyalty,
employee engagement and investment
decisions. By continuing to integrate andembed sustainability and ESG practices
throughout our business we are ensuring
Admiral’s success and resilience over the
longer-term.
See page 56 for further information

See pages 56, 87 and 136 forfurther information

On joining the business, Admiral’sphilosophy was explained to me in simple
terms, we want to help people to lookafter their future, always striving for
better together. This is our purpose,and in my relatively short time with thebusiness I’ve been impressed in seeing
how our colleagues embody this purpose
every day through our values. With every
discussion and decision we take as a
Board, our purpose and values are at
the forefront of our minds. Simply put,
if the Board believes something does
not measure up to the high bar we haveset ourselves then it will be rejected.
Our values are embraced through an open
and inclusive workplace, where people canhave fun, work hard, and be rewarded fortheir achievements. The Board and oursenior management team lead from thefront, truly believing that people who likewhat they do, do it better, and it is ourcustomers and wider stakeholders who
benefit as a result.
See page 132 for further information

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

We asked Mike Rogers
to share some of his
initial impressions andobservations from his firstyear as Chair of Admiral.

How important is diversity
and inclusion to the successof the business?

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119

Corporate Governance

Board of Directors

Mike Rogers
Chair

C

Appointed

Appointed as Chair of the Board on 27 April 2023.

Current appointments• Chair of Experian plc

Key
Board skills matrix
FinanceInsurance
Marketing/Retail
City
Technology/Digital/Data
Entrepreneurial
Remuneration/People
Risk
Executive/Strategic Leadership
M&A
International
Operations
Lending
ESG/Sustainability
Small/Medium EnterpriseCommittee Membership
Audit Committee member
Remuneration Committee memberGroup Risk Committee member Nomination and GovernanceCommittee member
C

Committee Chair
Senior Independent Director

Admiral Group plc Annual Report and Accounts 2023

Background and experience

Mike was Group Chief Executive Officer of LV= Group from2006 until 2016, during which time he grew the organisation
into a signiﬁcant player in the life and general insurance
market. Before that, Mike was with Barclays plc for morethan 20 years, holding a number of senior roles, most recently
as Managing Director, UK Retail Banking. Mike was previously
a Non-Executive Director of NatWest Group plc (where he
Chaired its Group Sustainable Banking Committee and saton the Group Performance and Remuneration Committee).
He was also previously a Non-Executive Director of the
Association of British Insurers.

Contributions and reasons for appointment

Mike was appointed as Chair of the Board based on his widebusiness, insurance and financial services knowledge andon him being someone who would make a strong strategic
impact on the future of Admiral. Mike has over 30 years
of international financial services experience holding thesenior positions described above. Mike also has a wealthof Board experience, he is currently Chair of Experian plc,
and stepped down as Non-Executive Director of NatWest
Group plc immediately prior to joining Admiral and as Chair
of Aegon UK on 22 January 2024. Mike’s recent and relevant
background and experience, and the skills he has developed
over his significant and distinguished career made him theideal choice as Chair to lead the Admiral Board and businessthrough the next stage of its evolution.

SkillsMilena Mondini de Focatiis
Chief Executive Officer (CEO)Geraint Jones
Chief Financial Officer (CFO)

Appointed

Appointed

Appointed to the Board in August 2020 and became
CEO on 1 January 2021.

Current appointments• Admiral Insurance Company Limited member(an Admiral Group subsidiary)• Able Insurance Services Limited Board member(an Admiral Group subsidiary)• Mentor for A-Road, Growth Capital

Background and experience

Milena joined Admiral in 2007 and was appointed CEO
in January 2021. She has been a member of the leadershipteam throughout her time at Admiral, has extensive
experience of the Group’s operations and has attended
and actively contributed at Board meetings as an observer
since 2011. Her previous roles included being Head of UK
and European Insurance and CEO of ConTe, Admiral’s Italian
insurance business which she founded in 2008. Before joining
Admiral, Milena worked as a consultant for Bain & Co andAccenture. She holds an MBA from INSEAD and a degree
in Telecommunication Engineering from Università degliStudi di Napoli Federico II.

Contributions and reasons for appointment

Milena leads a very strong and experienced management
team and is an effective CEO who continues to build aneven stronger Admiral for the future. In 2023 Milena wasawarded the Best Leader of a Big Company at the 2023
Best Companies Awards.

SkillsAppointed in August 2014.

Current appointments• Admiral Financial Services Limited Board member(an Admiral Group subsidiary)• Admiral Insurance (Gibraltar) Limited Board member(an Admiral Group subsidiary)• Admiral Insurance Company Limited Board member(an Admiral Group subsidiary)• Trustee and Chair of the Finance and Audit Committeeof the Wales Millennium Centre• Finance, Audit and Risk Committee member at the
Football Association of Wales

Background and experience

Geraint joined Admiral in 2002 and held several senior financepositions including Head of Finance, before being promoted
to Deputy CFO in January 2012 and CFO in August 2014.
Geraint is responsible for finance, investments and investor
relations. A Fellow of the Institute of Chartered Accountantsin England and Wales, Geraint spent the early part of his
career as an external auditor at Ernst & Young and KPMG.

Contributions and reasons for appointment

Geraint has worked for Admiral for over 20 years andhas been Group CFO for nearly 10 years. He has a deep
understanding of the Group’s businesses and strategy,
which, together with his significant financial and accounting
experience and broad range of skills and commercial
expertise, makes him a valuable contributor both to theBoard and the wider Group. Geraint is also able to use his
financial and accounting experience to provide insight
into the Group’s financial reporting and risk management
reporting processes.

SkillsAdmiral Group plc Annual Report and Accounts 2023

Corporate GovernanceOur aim is to accelerate
the evolution of ourcore businesses toward
what we call Admiral
2.0, an organisation thatleverages on Admiral’s
historical strengths whilst
being even more agile
and technology focused.

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121

Corporate Governance

Board of Directors
continued

Karen Green C
Non-Executive Director

Justine Roberts, CBE
Non-Executive Director

Andy Crossley C
Non-Executive Director

Appointed

Appointed

Appointed

Appointed

Current appointments

Current appointments

Current appointments

Current appointments• Non-Executive Director of The Open Data Institute• Non-Executive Director, member of Remuneration
Committee, Risk Committee and Chair of Audit Committee
at Vitality Health Ltd (Vitality Health Ltd, Vitality Life Ltd,
Vitality Corporate Services Ltd) and Senior Independent
Director of Vitality Life Ltd.

Appointed in October 2018.
• Chair of Admiral Financial Services Limited (Admiral Money)(an Admiral Group subsidiary)

Appointed in December 2018.

• Director, Trustee and Chair of Finance and Risk Committeeof the Rose Theatre Trust• Non-Executive Director, Senior Independent Director
and Chair of the Sustainability Committee, memberof the Nominations and Remuneration Committees,
Phoenix Group Holdings plc• Non-Executive Director and Chair of Audit Committee
and Risk and Compliance Committee at Alpha Bank
London Limited• Non-Executive Director, member of the Audit, Nomination
and Remuneration Committees, Great Portland
Estates PLC

Background and experience

Michael was CFO of Metro Bank Plc between 2009 and 2018,
helping lead the business from start-up to profitability andlisting on the FTSE. He spent seven years at Capital One
Europe in various roles including CFO Europe, CFO UK and
Chief Risk Officer Europe. He has also served as CFO for
Royal Trust Bank, Financial Controller at Industrial Bank ofJapan (London Branch), Director Business Risk at Barclaycard
and was co-founder, Deputy Managing Director and CFO
of Gentra Limited. Michael is a Fellow of the Institute ofChartered Accountants in England and Wales.

Contributions and reasons for appointment

Michael brings a depth of knowledge from working atsenior levels across multiple financial services sectors,
jurisdictions and markets. As a result of his extensive financial
and commercial experience, Michael is able to contribute
effectively as a Non-Executive Director, and in his role asa member of the Audit and Remuneration Committees.
Through his recent and relevant financial experience, he isable to effectively challenge management on the financial
reporting and internal control matters that come before the
Audit Committee. Michael demonstrates full commitment
to the responsibilities that go with his Board and Committee
roles and offers appropriate challenge and guidance inrespect of the matters considered in these forums.

Skills• Non-Executive Director, and Risk and Audit Committee
Chair and member of the Remuneration Committee ofMiller Insurance Services LLP• Non-Executive Director, Chair of the Risk Committee
and member of the Remuneration Committee, AstaManaging Agency Ltd• Advisor role for Insurtech, Cytora Limited• Supervisory Board member and Audit Chair for the
TMF Group• Charity Trusteeship, Wellbeing of Women

Background and experience

Karen Green is the former CEO of Aspen UK. Other senior
Aspen positions included Group Head of Strategy, Corporate
Development, Office of the Group CEO and she was amember of the Group Executive Committee for 12 years.
Prior to that, she held various corporate finance, M&A andprivate equity roles at GE Capital Europe and Stone Point
Capital having started her career in investment banking
at Baring Brothers and Schroders.

Contributions and reasons for appointment

Appointed in June 2016.
• CEO and Founder, Mumsnet.com and Gransnet.com• Non-Executive Director of Boring Money• Non-Executive Director and Chair of Remuneration
Committee of the English Football League

Background and experience

Justine founded Mumsnet in 2000 and is responsible forcreation, strategic direction and overall leadership. In May
2011, Justine founded Gransnet, a sister site to Mumsnet,
for the over-50s. Before that Justine was a freelance footballand cricket journalist for the Times and Daily Telegraph, afterworking for Warburgs and Deutsche Bank as an economist,
strategist and head of South African Equities in New York.

Contributions and reasons for appointment

As CEO of the successful Mumsnet and Gransnet brands,
Justine has strong digital and customer experience insightsthat she is able to bring to the Board decision-making
process. Justine also has a strong background in driving
change through digital capabilities and brings a fresh andinsightful perspective to the matters for considerationby the Board. Justine is also an effective member of theNomination and Governance Committee and demonstrates
full commitment to the role as well as performing the roleof Senior Independent Director.

SkillsAppointed in February 2018.
• Chair of EUI Limited (an Admiral Group subsidiary)

Background and experience

Andy was CFO at Domestic & General Group from 2014
to 2017. He spent 14 years at Prudential Plc from 2000 as
Director, Group Finance; Group Chief Risk Officer, and CFO and
Deputy Chief Executive of Prudential UK. He previously held
senior manager roles at Legal & General Group Plc, where he
was Group Financial Controller, and Lloyds Bank Plc. Andy is a
Fellow of the Institute of Chartered Accountants in Englandand Wales.

Contributions and reasons for appointment

Andy has held a variety of senior roles relating to financial
planning, strategy and risk across UK financial services.
He has a wealth of accounting and financial experienceand provides progressive insights to the matters that comebefore the Board. Andy is a valuable contributor to the Boardand as a member of the Audit Committee and Chair of theGroup Risk Committee. Through his recent and relevant
financial experience, he is able to effectively challengemanagement on the financial reporting matters that comebefore the Audit Committee.

Skills

Karen has substantial financial services experience andhas a deep understanding of insurance and reinsurance.
Karen also has a strong background in strategic planningand corporate development and the relevant financial andindustry expertise to be Chair of the Audit Committee.
She demonstrates the commitment required to discharge
effectively the responsibilities attached to this role and tochallenge management on the Group’s financial reporting
and risk management processes.

Skills* Ceased to be a member of the Audit Committee on 7 March 2024.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate GovernanceMichael Brierley
Non-Executive Director

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123

Corporate Governance

Board of Directors
continued

Evelyn Bourke C
Non-Executive Director

Bill Roberts
Non-Executive Director

Fiona Muldoon
Non-Executive Director

Appointed

Appointed

Appointed

Appointed

Appointed in April 2020.

Appointed in April 2021.

Current appointments

Current appointments

Current appointments

Current appointments• Independent Non-Executive Director Elephant Insurance
Company (EIC) (an Admiral Group subsidiary)• Chair of Sretaw PE DAC• Non-Executive Director and member of Remuneration
Committee (joint with both Allfunds entities) of Allfunds
Bank SA and Allfunds Group Plc• Non-Executive Director, Chair of the Audit and Risk
Committee and member of the Nomination Committee
at Marks and Spencer Group Plc• Non-Executive Director and member of Remuneration and
Nominations, Audit and Risk Committees at Daily Mail andGeneral Trust Plc (DMGT)• Non-Executive Director, member of the Nominations
Committee, Sustainability Committee, Remuneration
Committee and Workforce engagement NED at Bank of
Ireland Group plc.

• Board Member and Chair Quarterly Security Forum ofHarmsworth Media• Non-Executive Director and member of Audit Committee,
Human Resources and Remuneration Committee andChair, Sustainability, and Innovation Committee of National
Bank of Greece S.A.
• Member and Chair, Business Development Committee,
Board of Trustees, Cumberland Lodge• Member, Board of Trustees, Web Science Trust

Background and experience

Jayaprakasa Rangaswami (JP) has a wealth of large-scale IT
operational experience gained through his roles as Chief
Information Officer (CIO) with Dresdner Kleinwort (2001 to2006) and Managing Director/Chief Scientist at BT Group(2006 to 2010). JP has also been Chief Scientist with Salesforce(a US cloud-based software Company) (2010 to 2014) and was
Chief Data Officer (CDO) and Group Head of Innovation with
Deutsche Bank (2015 to 2018).
JP is also a former global CIO of the Year as well as European
Innovator of the Year.

Contributions and reasons for appointment

JP brings a wide range of technology and digital experience
which helps to complement and enhance the existingskills around the Board table. He has operated in financial
services for over ten years and understands the challenges
of working in a regulated environment. He is also able toeffectively contribute to the Board debate and demonstrates
full commitment to the role. JP is also a member of theGroup Risk Committee, a role for which he has the relevant
experience and capability.

• Non-Executive Director, Senior Independent Director,
member of Audit Committee, Risk and Compliance
Committee and Nominations Committee at AJ Bell Plc

Background and experience

Evelyn was Bupa Group’s CFO between 2012 and 2016,
before becoming Bupa’s Group Chief Executive Officer from2016 to 2020. Evelyn has held several senior leadership roles
during her career including Chief Commercial Officer at
Friends Life UK (2011 - 2012), CFO at Friends Provident(2009 – 2010), CFO at Standard Life Assurance (2006 -2008),
and CEO at Chase de Vere (2004). Evelyn is a qualified actuary
and holds an MBA from London Business School.

Contributions and reasons for appointment

Evelyn brings valuable general management, financeand strategy experience from life and health insurance,internationally. She complements and enhances the rangeof skills currently on the Board. Evelyn has held several
leadership positions in financial services organisations
and has the appropriate skills, knowledge and experienceto perform her roles as Non-Executive Director and Chairof the Remuneration Committee.

Appointed in June 2021.
• Advisor at Hi Marley

Background and experience

Bill Roberts has a wealth of insurance, underwriting andmarketing experience gained during his time at US insurer,
GEICO, which he joined in 1984. Whilst at GEICO, Bill held
several Executive appointments, including COO and President
and CEO for all GEICO Insurance Companies, a position heheld from 2018 until he was promoted to Vice Chairman,
GEICO Insurance Companies in 2020. Bill held this role until
he retired from GEICO in December 2020.

Contributions and reasons for appointment

Bill brings valuable insurance experience and insight on the
US insurance market having held several senior executive
positions with US insurer, GEICO. Bill contributes andchallenges effectively on the matters that come before theBoard. His extensive US insurance experience and insightis of specific value to the Group’s US business as it seeks tocontinue to develop and grow. Bill does not currently haveany other Executive or Non-Executive Director commitmentsthat would impact the time commitment requirements for
his Admiral Non-Executive Director role and member of theNomination and Governance Committee and has capacity
to fulfil the duties and responsibilities for these roles.

SkillsAppointed in October 2023.
• Non-Executive Director, Chair of the Risk Committee
and member of the Audit Committee at Beazley plc

Background and experience

Fiona has thirty years’ experience in the insurance industry.
Fiona was the CEO of FBD Holdings plc, a listed generalinsurer in Ireland, from 2015 to 2020. Prior to that Fiona was
Director of Credit Institutions and Insurance Supervision at
the Central Bank of Ireland, the Irish regulator. Fiona spent
17 years of her career with XL Group in various progressively
senior finance and general management positions, in Dublin,
London, and Bermuda. She is a Fellow of the Institute ofChartered Accountants in Ireland.

Contributions and reasons for appointment

Fiona has acquired extensive experience of the insurance
sector during her 30+ years’ career in financial services.
Fiona has built a compelling portfolio in the financial services
sector, demonstrating an ability to leverage her financial
and commercial skills to make a useful contribution to board
discussions. Fiona was a Non-Executive Director of Bank of
Ireland Group for eight years, also sitting on the board of
New Ireland Assurance Company, the bank’s wholly owned life
insurance, pension and investment business. She additionallyserves on the board of Beazley; a FTSE 100 specialist insurerand she chairs the board of Sretaw DAC a private equity
Company based in Ireland.

SkillsSkillsSkillsAdmiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Jayaprakasa Rangaswami
Non-Executive Director

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125

Corporate Governance

Board of Directors

Board Leadership and Company Purpose

continued

Our Culture
Engagement#1

Best Big Company to Work for in the UK

Appointed

Appointed in May 2022.

Background and experience

Dan trained at Field Fisher where he qualified into the IP
disputes team in 2005. Dan relocated to Cardiff in 2008.
He spent two years in the IP/commercial litigation team at
Osborne Clarke before joining Admiral’s in-house legal teamin September 2010. Dan became Group Company Secretary
and General Counsel at Admiral in May 2022 and leads
the in-house Group Legal and Company Secretarial teams
within the business. Dan is secretary to the Admiral Group
Board and all Group Board Committees.

Diversity95%

of our employees believe Admiral isa diverse and inclusive employer.
GPTW Survey

Dan CauntGroup Company Secretary
and General Counsel

Admiral is required to report toshareholders on how it has applied theprinciples and provisions of the Codeduring the year and, where we have not,the reasons for not doing so. The Board
confirms that Admiral has compliedwith all of the provisions set out in the
Code for the year ended 31 December
2023, with the exception of Provision 19.
This is explained in further detail below.
Details on how Admiral has applied theprinciples set out in the Code and how
governance operates throughout theGroup have been summarised throughout
this Governance section and elsewherein this Annual Report and are set out inthe table below.

Board leadership and Company purpose

87%

A
B
C
D
E

Effective Board
Purpose, values and culture
Governance framework
Stakeholder engagement
Workforce policies and practices

GPTW Survey

2

Division of Responsibilities

F
G
H
I

Board roles and responsibilities
Independence
External commitments and conflicts of interest
Board resources

3

Composition, Succession and Evaluation

J
K
L

Appointments to the Board
Board skills, experience and knowledge
Annual Board evaluation

4

Audit, Risk and Internal Control

M
NO

External Auditor and Internal Auditor
Fair, balanced and understandable review
Internal financial controls and risk management

5

Remuneration

P
Q
R

Linking remuneration to purpose and strategy
Remuneration policy review
Performance outcomes 2023

Community

88%

of employees feel good about how Admiralcontributes to the community.
GPTW Survey

Equality#3

Admiral was recognised as the 3rd best workplace
for women in the UK by Great Places to Work.
www.greatplacetowork.co.uk

Provision 19 of the Code states that
‘The chair should not be in post beyond
nine years from the date of their first
appointment to the Board.’ Annette
Court was appointed as Board Chairin April 2017, having spent five years asa Non-Executive Director of the Board.
Annette reached her nine-year tenure
as Non-Executive Director on the Board
in March 2021. As reported in the 2021
Annual Report, the Board considered andagreed, having consulted shareholders,that Annette should remain in post to
facilitate an effective succession process
for both CEO in 2021 and Chair in 2023.
Mike Rogers was appointed Chair at
Admiral’s AGM held on 27 April 2023,
at which time Annette stood down fromthe Board.

Compliance with Corporate Governance Code Principles
1

Our Cultureof our colleagues are proud to tell others
that they work for Admiral.

“As Company Secretaryof Admiral Group PLC, my role
is focused on ensuringthat the Group conforms to
the highest standards ofcorporate governance practiceas well as ensuring compliancewith all of its legal andregulatory requirements.”

The UK Corporate Governance Code(‘the Code’) available at www.frc.org.uk,
applied to Admiral throughout the year
ended 31 December 2023. At the heartof the Code is a set of principles whichemphasise the value that good corporate
governance can have on the longterm sustainable success of a business.
By applying the principles, and following
the more detailed provisions of the Code,the Board can demonstrate to Admiral’s
stakeholders how the creation of aneffective, transparent and accountablecorporate governance framework,aligned to the purpose and values of theCompany, assists the Board in building our
special Admiral culture and delivering thebusiness strategy within the relevant legal
and regulatory landscapes in which theGroup operates.

Pages

118
8, 132
113
56, 87, 136
96, 132

118, 140
118, 152
143, 154
144

118, 146
153
158

163
161, 201
98, 161, 168

172
176
185

Provision 19 of the Code states that ‘To facilitate effective succession planning and the development of a diverse board, this period canbe extended for a limited time.’ Annette’s re-election was supported by shareholders at the 2022 AGM (99.3% votes in favour) and her
2022 performance review, led by the Senior Independent Director, concluded that she continued to perform effectively as Board Chair,continued to exercise objective judgement and promoted constructive challenge amongst Board members. Following Annette stepping
down and the appointment of Mike Rogers as the new Chair in April 2023, Admiral has been in full compliance with the Code.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Dan CauntGroup Company Secretary
and General Counsel

Voted the best big Company to work for in the UK in 2023
by the Best Companies to Work For awards.
www.b.co.uk

UK Corporate Governance Code

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127

Corporate Governance

Board Leadership and Company Purpose
continued

Principal areas of focus
How the Board spent
its time during 2023.

Strategy and business plan

• Received regular updates aroundkey areas of business strategy acrossthe Group including progress against
current plan and strategic priorities
for the business going forward• Review of the operational performanceof the business through regular reports
from the CEO and presentations from
CEOs and senior management fromacross business divisions• Regular updates from the CFO on
the Group’s financial performanceagainst strategic objectives, businessplans, capital allocation and budgets,
tax planning and international tax
considerations, planning liquidity andadequacy of solvency thresholds andprudential buffers considering market
conditions, analyst forecasts andfinancial and non-financial KPIs
• Approval of significant debt refinance see principal decision page 129• Review and approval of the half year
and full year results and consideration
and approval of interim andfinal dividends• A two-day Board strategy meeting
took place at Admiral’s Swansea officein October where the Group’s businessstrategy, 5-year plan, Admiral 2.0,
capital allocations and diversification
were discussed• Consideration of fair, balanced andunderstandable requirements in thehalf and full year financial reports,
along with going concern and viability
statements following review by the
Audit Committee• Consideration of individual businessstrategies within the Group businesspresented by divisional CEOs, evaluating
how these tied into the wider
Group strategy• Reviewed and approval of risk
framework, policy and appetite
for the Group through the Group
Risk Committee• Approval of acquisitions and disposals
including disposal of Compare.com
to Insurify, Inc., and the acquisition
due to complete in 2024 of UK direct
home and pet personal lines insurance
operations of RSA, review of M&A
processes and lessons learnt – see
principal decision page 128• Review of ESG, sustainability andcommunity strategies and how these
are integrated throughout the wider
business strategy• Brand, technology and digitalprogramme updates.

• Integration of new technology see principal decision page 130• Oversight of internal control
environment and framework throughupdates from Audit Committee andRisk Committee including Cyber
Risk, ORSA, Solvency II and Group
Governance framework.

Culture and stakeholders• Consideration of how the Grouppurpose and values have been
imbedded throughout the business• Review of how Admiral’s culture
continued to develop including analysisof feedback from Great Place To Work®
(GPTW) survey results, working groups,
culture scorecard and Diversity andInclusion Policy review - see more on
pages 56 and 132.

• Consideration of stakeholder map
and respective stakeholder updates
throughout the year, including
engagement mechanisms - see moreon pages 56, 87 and 136

Governance and Regulatory• Employee welfare review andconsiderations including cost of living
analysis and hybrid and remote working
practice considerations - see pages 129
and 132• Consideration of the work of theNomination and GovernanceCommittee on Board compositionand succession planning, including
approval of the appointments of Mike
Rogers as Chair and Fiona Muldoon as
Independent Non-Executive Director• Presentations and discussion fromthe Chairs of the UK and Overseas
Employee Consultation Groups see page 138• Overview of Group reward strategy
including review of share-based awards
and approval of Directors Remuneration
Policy through the Remuneration
Committee – see page 172• Talent management and succession
planning throughout the Group• Review of Investor Relations reports• Group health and safety updates.

Society, environmentand sustainability• Oversight of Group ESG andsustainability strategy to ensurealignment with the Group’s wider
strategic objectives and culture –see page 79• Review of climate change strategy,
related activities and risk management
including progress towards climate
commitments and understanding the
evolving expectations of stakeholders• Updates on progress againstsustainability targets• Analysis of suppliers and partners
and the communities within which
Admiral operates• Updates on volunteering and charity
propositions within the Group as part ofa wider community outreach strategy
including sponsorship of community
events, charitable giving, volunteeringand fundraising• Updates on the customer journey,
customer engagement and ensuring
fair and reasonable claim outcomes for
all customers with special considerationof vulnerable and disadvantaged groups
within society• Received regular reports from the
Chairs of the Audit, Risk, Nomination
and Governance and the Remuneration
Committee’s• Regular updates and consideration of
new regulatory requirements including
implementation mechanisms forthe new Consumer Duty regulationand oversight and education on
the integration of IFRS 17 reporting
framework - see page 131• The fostering of good relations andopen and constructive dialogue
with regulators• Discussions around conclusions of
the external Board evaluation findings
and agreed areas of focus and Board
objectives for 2023
• Consideration of skills, experience andtime requirements for Directors andrecommendations to shareholders
regarding their reappointment• Discussions around The Parker
Review disclosure requirements
for senior management ethnicity
through Nomination and GovernanceCommittee and the implications for
succession planning• Review and approval of Group policies
including Board members’ potential
Conflicts of Interest, Modern Slavery
and Anti-Bribery considerations
and approval of Admiral’s Modern
Slavery Statement• Considered and approved the Noticeof 2023 Annual General Meeting (AGM)
for issue to shareholders• Reviewed matters reserved for the
Board and the committees’ respective
terms of reference.

Principal areas of focus for
the Board for 2024
• Continued focus on accelerating theevolution of Admiral’s core businessand competencies toward ‘Admiral
2.0’, leveraging the Group’s historicalstrengths whilst being even more agile
and technology focused• Oversight of progress of the Group’s
diversification strategy to ensure
long-term resilience within thebusiness whilst strengthening
and complementing existingcustomer propositions• Monitoring the ongoing embeddingof culture and values throughout thebusiness, including closely monitoring
the effects of hybrid working to ensurethat the uniqueness of Admiral’s culture
is maintained and developed• To continue focus in relation to theAdmiral internal model, supporting aplanned regulatory pre-application andsubsequent full regulatory application• Provide steering and oversight forcapital management and reinsurance• Embedding the Group’s sustainability
strategy ensuring that it continues
to be integral to the Group’s
wider strategy

THINKING AT
ADMIRAL
Whilst a significant proportion of
the Board’s time is focused towards
addressing the short to medium termbusiness considerations required inmanaging a business such as Admiral,
it is also important that the Board isallowed the opportunity to take a stepback and assess the bigger picture,
to promote discussion and strategicplanning over the medium to long termin order to identify and address thosesignificant opportunities and risks
that may present themselves. As well
as being part of every Board meeting,Admiral annually dedicates two full days
to focus on its strategy. In 2023, theBoard was taken to Admiral’s Swansea
office for their annual strategy meeting,at this meeting the following items areexamples of some of those issues theBoard addressed.
• Group-wide strategy and objectives• Admiral 2.0• Diversification strategy• Focus on Board composition and skills
in conjunction with Nomination and
Governance Committee along withexecutive team succession planning• Motor evolution strategy• UK insurance strategy• Organic versus inorganic growth• Ensure diversity and inclusion objectives
are embedded throughout the Groupand continued progress is made in
respect of ethnic diversity• Monitoring progress against
key pledges for climate change
and community

Strategic• International business strategy• Five-year plan
• Strategic opportunities• Organisational requirements.

• Continued deepening of the Board’s
understanding of external risk factors• Ongoing oversight of FCA’s Consumer
Duty regime implementation acrossthe business.

2

full days each year
to focus on strategy

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate GovernanceIn 2023, the Board held seven scheduled
meetings, in addition there were anumber of ad hoc Board meetings to deal
with significant matters that were unable
to wait until the next scheduled meeting.
A Board planner is in place which sets out
those items to be reviewed on an annual
basis at scheduled Board meetings inaccordance with the Matters Reserved for
the Board Schedule. The items below are
not exhaustive but demonstrate some of
the key areas of the Board’s focus during
the year ended 31 December 2023.

Operational performance,
financial and risk management

128

129

Corporate Governance

Board Leadership and Company Purpose
continueds172 Principal
decisions

Principal decision 1

Our section 172 statement, set out
on page 87, highlights how the Board
considers those matters set out unders172. On the pages that follow are
examples of some of the key discussions
and decisions taken by the Board during
the year along with details around how
those considerations set out unders172 were taken into account during
the Board’s decision-making process.

A 	Long-term impact
B Interests of employees
C 	Fostering business relationships
D 	Impact on communityand environment
E 	Maintaining reputation for highstandards of business conduct
F Treating stakeholders fairly

Key

CustomerPartners/
Suppliers

Shareholders

Communities

PeopleThe strategic objectives the Board
considers when evaluating potential
acquisitions and disposals are:
1. To accelerate Admiral’s diversification
strategy: to increase the pace ofgrowth of non-motor products, such as
Household, Pet and Travel in the UK
2. To build new capabilities: acquiringknowledge in fields where Admiral
has not yet developed therequired competencies
3. A path to scale: opportunities
identified where Admiral is able to driveincremental value through pricing
and claims expertise and driving
cost efficiencies
4. To divest from non-attractive markets:generating value from adjusting theportfolio to focus on markets where wesee long-term growth potential.
In alignment with Admiral’s strategy ofdiversification of its product offering
into insurance products beyond Motor,
the Board was pleased to announce
the acquisition of the More Than direct
Home and Pet personal lines insurance
business from RSA in December 2023.
This transaction will see Admiral welcome
c.300 new colleagues as well as thetransfer of the renewal rights and the‘More Than’ brand.
The proposal to engage in the process toacquire the More Than business was firstpresented to the Board in September
2023, and then on a number of occasions
at milestone points throughout theprocess. Board deliberations focused on:• Strategic fit: The Board concurred withmanagement that the acquisition
represented a strong strategic fit andachieved the objective of diversificationin the UK by accelerating the scale andmarket share of both Admiral’s Homeand Pet products• Impact on core business: The Board
considered the impact on the core/
existing business, particularly in termsof management time, and felt that
this could be mitigated by a properly
structured, funded and resourced
integration team

Admiral Group plc Annual Report and Accounts 2023

• Brand reach: The Board agreed tooffer RSA customers an Admiral
Home product and discontinue theMore Than brand for home insurance.
Admiral would continue to offer
the More Than brand to RSA Pet
customers at renewal and to sell new
business under this brand, whilst also
maintaining the Admiral brand.
A key consideration for the Board inrespect of the More Than acquisition was
the impact on all stakeholders in the shortand the longer terms. This was factored
into the Board’s evaluation and decisionmaking process. In such situations,
key stakeholders will be identified, forexample, employees, customers andshareholders, and analysis is undertaken
to understand any relevant issues specificto each stakeholder group. The Board willbalance the often-conflicting interestsof stakeholders whilst, at the sametime, ensuring all receive equitable
treatment. In the case of the More Thanbusiness, after in-depth analysis theBoard agreed that this was a strategic
fit with the existing Admiral businessand its stakeholders, and approved theacquisition as being in the long-term bestinterests of the Admiral Group.
During the year, Admiral said goodbye
to our colleagues at Compare.com in
the US, as the final step in our exit fromthe comparison market. The sale ofCompare.com Insurance Agency LLC to
Insurify, Inc., a US-based virtual insurance
agent, was completed in March 2023 anddemonstrated the Boards divestment
strategy to focus on markets Admiral
has identified as having the potential for
longer term growth.

Key s172 criteria consideredA B C D E

Principal decision 2

Principal decision 3

Liquidity/
Refinancing ofsubordinated debt

Employeewelfare and thecost of living

In June 2023, Admiral Group successfully
priced a GBP £250 million 10.5-year Tier
2 bond issue, this was the second bondissue in its history. The bond issue wasaccompanied by a tender for Admiral’s
existing £200 million 5.5% subordinatedTier 2 notes, due to mature in July 2024,
which attracted participation in linewith expectations.

Admiral takes great pride in looking
after its colleagues by helping them tolook after their future, this is especially
important in challenging economic times.
In 2023 the Board continued its focus
on maintaining a workforce which was
healthy, motivated and productive, whilst
also ensuring that the required talentand skills were built on to equip Admiral
for the future. During the year, the Board
oversaw investment in multiple initiatives
to build on pre-existing employee
engagement, believing that employees
who feel supported during uncertain
times, were better equipped to deal
with them.

The Board considered the Tier 2 bondissue to be an important part of theCompany’s active management of its
debt profile and capital base and took
the opportunity to refinance, prudently
well ahead of the maturity date in July
2024. The proceeds of the new notes
were to be used to fund general businessand commercial activities of the Groupand to allow the Group to refinanceits existing notes well in advance of
maturity. The success of the new bondissue, which was oversubscribed, and therefinancing demonstrated the strength ofAdmiral’s credit and investor confidence in
the Group.
The Board sought external advice as
to the most opportune timing for the
proposed new issue and tender given
the maturity date of the existing Tier 2
notes. The Board approved the refinanceof the notes in June 2023 subject tofavourable market conditions and pricing,given inflationary pressures and an
uncertain global economic backdrop, inthe best interests of the business andits stakeholders.

Key s172 criteria consideredA B C EF

Relevant stakeholders considered

In H1 2023, conscious of the ongoing costof living situation in the UK, the Board
oversaw a one-off maximum salary upliftof 5% to all directly employed UK based
colleagues. In addition, the timing of
this increase was accelerated to ensurecolleagues received benefit from theuplift for the majority of the year rather
than awaiting the annual pay review
date. Admiral also committed to paying
the Real Living Wage for all of UK roles,
to continue to support those impacted
by the ongoing increased cost of living.
This rate was paid from March 2023 andAdmiral will be making the increase to£12, effective from 1 March 2024. This wasapproved at the EUI Board, the main UK
trading business.

resulting in 743 free parking spaces.
The Board also approved a free shareaward to employees to ensure a senseof shared ownership in the success ofthe business. As a result of these andmultiple other initiatives overseen by
the Board, attrition rates continued tosee improvements, overall absenteeism
continued to see small reductions
and recruitment performed well withincreases in application volumes andstrong acceptance of offers. The Board
was also pleased to see an increase in
the hiring of internal candidates forsenior positions.
Employees were able to feedback
to the Board through the Employee
Consultation Group (ECG), where topics
such as the cost of living, employee
engagement and morale were discussed.
Engagement scores across the Groupremained strong, signposting areas forcontinued focus. Pleasing results werenoted around inclusion, bolstered byexternal recognition and accreditation
across several areas such as thegovernment’s Disability Confident Leader
and the gold Corporate Health Standard.
The Board was delighted that the work
carried out by the team during the year
was recognised with Admiral achieving
multiple awards for its workplace culture see page 13.

Key s172 criteria consideredA B C D E

F

Relevant stakeholders considered

In addition to multiple health, wellbeing,
diversity and inclusion and career
initiatives - see pages 62 and 132,
examples of additional initiatives overseenby the Board to specifically assist
employees with the cost of living haveincluded a canteen subsidy of 50% forfood and drink covering approximately
2000 people a day and a car park subsidy

F

Relevant stakeholders considered

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Key: Board considerations as
defined under s172:

Acquisitions
and disposals• Comparison of organic versus inorganic
growth: An alternative approachof investing in organic growth wasconsidered. The Board agreed that
there was no alternative opportunity
equivalent to the increase in scale for
the Home and Pet businesses which
would be achieved by this acquisition

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131

Corporate Governance

Board Leadership and Company Purpose
continued

Principal decision 4

New technology
New technology

Following the implementation of the
Guidewire Claims Centre platform in 2022,
this year the Guidewire Policy Centre andBilling Centre were migrated to the cloud
and at the same time updated to thelatest version. Policy Centre and Billing
Centre has been used by Admiral in the
UK since 2016 but the cloud deployment
and updates to the latest version allows
the business to benefit from new features,
mitigate technology and security risk,
further improve the speed of release byshifting to an ‘environments on-demand’model, and reduce the overall total costof ownership of the estate. There werealso improvements in customer contact,
supported by the scaled deployment
across the business of a new cloud contact
centre platform which allows Admiral
to utilise new technologies to enhance
the customer telephony experience.
In addition to telephony, Admiral is also
modernising the customers’ digital
experience through a new web portal
and mobile applications. Work has alsocommenced on the implementation of a
new customer master database, which will
provide a single customer view across theAdmiral Group.

Key s172 criteria consideredA B C D E

F

Relevant stakeholders considered

Admiral Group plc Annual Report and Accounts 2023

Principal decision 5

Regulatory
decisions
IFRS 17IFRS 17, the new insurance contracts
accounting standard, which establishes
the principles for the recognition,measurement, presentation anddisclosure of insurance contracts,
including information about a Company’s
financial position and enhanced
disclosures in respect of claims reserves,
was effective from 1 January 2023.
The new standard applies to the Groupand its insurance subsidiaries in the UK
and Gibraltar.
During 2023, the Group Board continued
to closely monitor the implementationof IFRS 17 and discuss and approve key
information including accounting policy
decisions, the impact on the transition
balance sheet, 2022 comparatives,and projected future results, proposed
revisions to key performance indicators.
In August 2023 the Board, in conjunction
with the Audit Committee oversaw thesuccessful conclusion of the IFRS 17
implementation programme, delivering
the first external reporting under IFRS
17 as part of Admiral’s interim results.
Given the significance of the changes inreporting, external stakeholders were
provided with supplementary information
within the presentation, and additional
opportunities to discuss the resultsin order to clarify the impact of thereporting changes.

Consumer Duty

The FCA’s Consumer Duty regime cameinto effect on 31 July 2023. The Duty
introduced higher and clearer standardsof consumer protection across financial
services and required firms to focus
on customer outcomes. This new
requirement aligned with Admiral’s wider
Group purpose and commitment todelivering good customer outcomes forall our customers.

The Board oversaw the implementationof the Consumer Duty regime through its
relevant regulated subsidiary entities who
fell under the scope of the new regime.
Subsidiary board Non-Executive Directors
were appointed as Consumer Duty“champions” in their respective businesses
and implementation plans were approved.
The FCA attended a Group Board
meeting in April 2023 where constructive
discussions were held around Consumer
Duty implementation expectations,which were then fed back to the relevant
subsidiary boards. The Group Board
attained oversight and assurance throughreports from the Group Risk Committee,
Group Compliance Committee andConsumer Duty Steering Committee thatappropriate implementation plans were inplace to ensure the Group would meet its
obligations which came into effect in July
2023, and that monitoring processes werein place to ensure effective embedding
within the business and the continued
delivery of requirements to customers inline with the Group’s purpose and values.

Internal model

The Board along with the Group Risk
Committee continued its focus on theAdmiral internal model during the year,
receiving regular reporting to help drive
key discussions and decisions in relation
to the model. The Board oversaw the
updating of the UK Car model in 2023
to address limitations identified during
prior independent validation reviews.
This will help to ensure that the model
is well placed to support a regulatory
pre-application – see pages 33 and 169 forfurther information.

Key s172 criteria consideredA B C EF

Relevant stakeholders considered

Admiral Group plc Annual Report and Accounts 2023

Corporate GovernanceA strategic priority for the Board is toaccelerate the evolution of Admiral’score business and competencies toward‘Admiral 2.0’, leveraging the Group’s
historical strengths whilst being evenmore agile and technology focusedto ensure that it continues to put thecustomer first. To support the journey toAdmiral 2.0 the Board is overseeing thebuilding of next generation architecture,leveraging cloud, data, analytics anddigital to continually improve thecustomer experience.

Moving to Admiral 2.0 is a strategic
priority for the Board. Board oversightaround the introduction of newtechnology and the migration of systems
to the cloud will assist the businessin meeting this objective. The roll outof new technologies brings modern,capable platforms that allow Admiral tocreate great features and experiences
for customers, a faster time tomarket, improved scalability, stability
and resilience, whilst also assisting in
addressing the increasing risks aroundthe protection of customer data andcyber security. The Board received
updates and presentations from thebusiness in addition to oversight ofproject milestones and agreed targets.
As a result of the changes made as partof this transformation journey, Admiralaims to become a much more digitally
diverse business both to customers andemployees and the changes will also help
in meeting sustainability targets.

132

133

Corporate Governance

Board Leadership and Company Purpose
continued
CultureAn important part of the Board’s role is
to lead from the front in promoting andsafeguarding Admiral’s unique culture.
This is achieved through establishing
purpose and values and is especially
important in times where there may besignificant challenges and changes to how
the business operates.

The Code emphasises the importance ofthe role of the Board regarding culture,with specific recommendations that theBoard assesses and monitors culture, andensures that workforce policies, practices
and behaviours are aligned with theCompany’s purpose, values and strategy.
At Admiral we believe that our cultureis the real essence of what our business
is; how we act, what makes us different,
our character and personality, and how

we treat our employees, customers andother key stakeholders. Our culture is aculmination of the implementation of our
purpose through our values. The Board
sets the tone and leads by example, thispermeates through the business andcreates a culture lived daily by colleagues
as well as our wider stakeholders.
We strongly believe that Admiral’s culture
is unique as we aim to demonstrate
throughout this report. It is fundamentally
important that Admiral’s culture evolves

Implementing our purpose through our four pillars of culture
Recognition and reward

85% of employees believe that good work andextra effort is appreciated. All colleagues inthe business will receive up to the equivalent of£3,600 of shares in Admiral during the year.

Aligning our culture with our
purpose, values, strategy,
policies and practices

embedded within the operational process
and policies and that there continued
to be alignment with its rewards andincentives. Maintaining culture was a
key part of Admiral’s Board discussion
throughout the year and will continue tobe at the forefront of its decision-making
rationale through the year to come.

Striving

TO BE AGREAT PLACETO WORK

Guiding and promoting culture

Admiral’s culture is strongly aligned toour purpose to ‘Help more people tolook after their future. Always striving for
better, together’. Providing customers
with great products and services, whilst
caring for our people and other important
stakeholders is key to what we do.
Our Four Pillars of Culture are built into
the fabric of our training, communication,
policies and the way we do business.
During the year, the Board received
assurance from management that
the Group purpose continued to be

Our Board has the responsibility to act
with integrity, to lead by example and topromote the desired culture. The Board
does this through its governanceframework, its decision-making processes
and its everyday interactions. We also
ensure that any policies which apply
to Directors are consistent with thoseequivalent policies for the workforce.

Admiral has been recognised as thebest big Company to work for in the
UK in 2023 by the Best Companies
awards, as well as being in the top 15
best multinational companies to work
for in Europe by ‘Great Places to Work’a global authority on workplace culture.

Many initiatives take place during theyear to promote Admiral’s unique culture,
examples of these are shown below:

Admiral’s cultural initiatives

Our Purpose“Help more people tolook after their future.
Always striving for
better, together.”Equality

95% of employees
believe Admiral is a diverse
and inclusive employer
and 96% believe that
Admiral’s culture is open
to different sensibilities
and backgrounds.

Fun

84% of employees perceive
Admiral as being a fun place
to work and 93% of employees
believe that they workin a friendly environment.

Communication

90% of employees believe their managers areapproachable and easy to talk to and 85% believe they
are kept informed on important issues and changes.

Fun

We want our people to lookforward to coming to work,
to celebrate who they are,and to feel happy and supported
enough to give that little
bit extra.
What makes Admiral a funplace to work can be foundthroughout our Strategic Reporton page 14 and in our Corporate
Governance Report on page 132.

Communication

We encourage effective andtransparent communication
at all levels. This is aided byaccessible management andopportunities to encourage
feedback across the Group.
Further information on ourchannels of communication canbe found on pages 89 and 136.

Admiral Group plc Annual Report and Accounts 2023

Equality

We work hard to promote a
sense of fairness and equality.
Everyone has the opportunity
to succeed, backed up by
multiple focus and working
groups supporting diversity,
inclusion and social mobility.
Further information as to how
we do this can be found in ourStrategic Report on page 62 andthe Nomination and GovernanceCommittee Report on page 154.

Recognition and reward

A job well done should beappropriately rewarded. At theheart of this pillar is our shareownership scheme, which
rewards employees with a stakein the Company. The Group’s
approach to investing in andrewarding its workforce can befound in our Strategic Report on
pages 17, 89, 129 and 172.

Fun and inclusive activities: Our 30th
anniversary celebrations included,
amongst other things, an allemployee ‘Admiral Olympics’ andstaff music festival called ‘MultiFest’

Flexible working arrangements.
Empowering teams to define their own
optimum working blueprint and self-organise in
the most effect way, whilst coming together toshare key moments

Department and team away days
including spending allocated time
giving back to the community

A compensation and promotion structure basedon meritocracy, including a 5% increase insalary to all UK employees during the year andexcellent employee benefit offers

Employee induction workshops
focusing on Admiral’s cultureStar lunches where colleagues are recognised
for their performance and are invited to attend alunch with a senior manager

Diversity and inclusion working
groups and initiatives

Excellent opportunities for career development
throughout the business leading to highretainment of employees

Group Top 10 competition:
departments compete in a Groupwide competition which includes
a presentation to a panel of senior
managers on a different subject eachyear in order to be awarded
the best department

Health and wellbeing initiatives to encourage
employees to speak up if they needed support,a weekly health and wellbeing bulletin, yoga
and meditation classes, choirs, running clubs,
webinars and art classes, amongst manyother things

Annual manager awards

Local reward and recognition programmes

Encouraging use of training
opportunities for work andpersonal development

High five feedback programmes, where
employees can submit feedback on colleagues
across departments who have given great service

The Ministry of Fun organises
events and entertainment
throughout the Group.

Regular Group-wide updates on businessperformance and matters of importance from
Executive Directors and senior management.

Sharing

OUR
EXPERIENCES
In October 2023, Jayaprakasa
Rangaswami (JP), our Group
Non-Executive Director, held anall-employee forum on diversity andinclusion along with a question-andanswer session at our head office in
Cardiff. This included his experiences
growing up from an ethnically diverse
background and the challenges andopportunities he faced throughout his
career. This session was well attended
by colleagues across the business, bothin-person and online.

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

At Admiral we implement
our purpose through ourunique workplace culture.
This is reinforced by ourvalues – the ‘Four Pillarsof our Culture’.

and adapts as the business environmentchanges. It is even more critical that thoseparts of our culture that we see as ourcompetitive advantage and a key driver ofour success to date, are fiercely protected,
especially during continuing periodsof change.

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135

Corporate Governance

Board Leadership and Company Purpose
continued

How the Board monitors
and assesses culture
People and culture scorecard

The people and culture scorecard
continues to provide a good analysisof the key people and culture metrics
in order to help management and theBoard’s assessments of the overall healthof the Group’s culture. It also supports
the identification of any trends in theevolution of the Group’s workforce andculture, including any associated risks
which could impact the execution andsupport of the Group’s strategy.

Score

GPTW Trust Index:
The Trust Index comprises 60 questions fromthe GPTW survey, which are stable over time,benchmarked against the best companies in eachmarket, and highly representative of the overall
people sentiment of a positive culture.

85%
2022: 84%

GPTW Engagement Index:
The Engagement Index is a specific measurecomprising nine questions from the GPTW
survey relating to willingness to go the extra mile,intention to stay with the business and likelihoodof being an employer brand promoter. It is alsobenchmarked and stable over time and has a provencorrelation with business performance. According
to the GPTW institute research, the drivers that are
most correlated to higher engagement scores are:(i) teamwork, (ii) career development, (iii) values
and ethics, (iv) empowerment and accountability,and (v) innovation.

83%

GPTW Culture Index:
The Culture Index is a specific measure comprisingof eight questions from the GPTW survey relating
to employee perception of the workplace as friendly,
fun and welcoming.

87%

Pulse surveys:
Pulse surveys are undertaken four times a year
and ask the same questions of our people toenable management to track any trends.
Pulse survey results in 2023 demonstrated thatcolleagues at Admiral continued to feel well
supported by their managers. Hybrid working
arrangements were welcomed by employees
and communication was scored highly.

87%2022: 82%

Scores pertaining to culture continue
to be very high across the Groupdemonstrating the strength and impactof the Admiral culture. During the year
Admiral was recognised as the best big
Company to work for in the UK in 2023
by the Best Companies awards, as well
as being in the top 15 best multinational
companies to work for in Europe by‘Great Places to Work’ a global authority
on workplace culture. Admiral was also
placed 3rd in the UK’s Best Workplaces for
Women award in 2023.

How Admiral retains its uniqueculture whilst offering flexibility
in working practices

2022: 89%of our people feel they are well
supported by their manager*
2022: 86%**

84%

of our people think we are
truly customer focused*
2022: 86%**88%

of our people think thatimportant knowledge andinformation is shared withthem by their manager*
2022: 88%**

92%

For a Company of Admiral’s size there
can be no ‘one size fits all’ solution
to working practices. The Board
understands that a post Covid world
has increased the opportunity andexpectation for greater flexibility
within the working environment, witha hybrid working model becoming
more common practice. At Admiral,
individual business functions anddepartments are empowered to define
their own blueprint and self organise
their teams in a manner which they
believe creates maximum benefit forthe business, whilst, at the same time,ensuring that our special culture isretained and enhanced. For example,
at a Group level a guide as to where
and when colleagues should be
spending time together is driven byour ‘Admiral Moments’ model, these
are key moments when it matters forcolleagues to be together in-person.
The Board enables each businessdivision to interpret these principles intheir own way to maximise workplace
efficiencies and enhance culture
throughout the Group.

The Board received an update on thepeople and culture scorecard metrics
during the year, this included a review as
to how hybrid and remote working were
impacting on Admiral’s unique culture andhow this potential risk to the Company’s
culture should be managed. This oversight
was achieved by focusing on several
key metrics across the Group, including
recruitment, engagement, productivity,
absence and attrition trends, whichwere closely associated with the risks toculture heightened by a move to a morepermanent model of hybrid working.

The Board agreed that a hybrid working
model was an effective working model for
Admiral in the current climate, however
close attention should be maintained as
to the effects that this was having on theculture of the business, and more ‘officebased moments’ should be encouraged
whilst, at the same time, empowering
teams to set their own blueprint forworking patterns and avoiding mandated
days in the office.

Admiral Moments

Admiral promotes a hybrid working model, empowering business functions anddepartments to organise their own working arrangements in a manner that createsmaximum benefit for the Group. However, our ‘Admiral Moments’ model below
sets out examples where we encourage in-person or ‘face to face’ engagement
amongst our teams, to ensure that Admiral’s unique culture is retainedand enhanced.

Team building
activities

Charitycontribution

Feedback
and appraisal
moments

Connections &networking

Onboarding newstarters andlearning activities

Brainstorming
and innovatingAwards &celebrationsof our people believe
Admiral Group is a diverse
and inclusive employer*
2022: 92%**

Other people metrics:
Recruitment, gender balance, headcount,absence, attrition.
* Q3 2023 Pulse survey results** Q3 2022 Pulse survey results

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

The Group continues to view the following
people and culture metrics that arederived from the annual Great Place
To Work® (GPTW) survey and Admiral’sregular internal pulse surveys as thelead indicators for people and culture at
Admiral. The GPTW survey is an externalsurvey which collates anonymised
question responses from all colleagues
to provide an overall result, as well as
departmental results.

Index

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137

Corporate Governance

Board Leadership and Company Purpose
continued
Other tools

The Board Committees also help the
Board monitor and assess culture throughtheir respective responsibilities, someexamples of which are highlighted below.
Nomination and Governance Committee– Succession and talent management
strategies, along with a diversity andinclusion strategy and policies andprogress against targets to ensurealignment with the Group’s strategy
and values.
Remuneration Committee – Monitoringof alignment of workforce remuneration
policies to culture and strategy, risk
events reported to it by the Risk
Committee under the malus and claw
back framework.
Audit Committee – Whistleblowing,
Internal Audit, Group Minimum Standards.

As well as receiving updates on theGroup’s culture at Board meetings,
Directors utilise other mechanisms
to assess and monitor culture, suchas attending meetings of the UK ECG,
subsidiary boards and performing site
visits across the different entities within
the Group which, during their discussions
with a cross-section of colleagues, enables
the Directors to gauge the culture forthemselves. In 2023, Mike Rogers, theBoard Chair visited L’olivier offices in
Paris and Lille, the Admiral Seguros officein Seville and Madrid, and the Admiral
Europe Compañía de Seguros S.A.U.
(AECS) in Rome for meetings with the
management team and employees.

Whistleblowing

The Board has in place arrangements bywhich employees can raise concerns in
confidence and, if necessary, anonymously.
During the year, the Board received an
update on the Group’s whistleblowing
arrangements from the management
team. The Audit Committee, chairedby the Group’s WhistleblowingChampion, Karen Green, was satisfied
that the update was proportionate forindependent internal investigation of thematters raised and supported an ethicalbusiness culture where colleagues felt
safe raising concerns. In addition, and on
an exceptions basis, the Board is updated
in respect of reports arising from mattersthat have been raised by employees
under the Policy. The Audit Committee
receives more regular updates in respectof whistleblowing matters, see page 161
for further information.

Group Risk Committee – Risk events thatwould impact remuneration from a malus
and claw back perspective, financial crimeand misconduct risks.

Admiral Group plc Annual Report and Accounts 2023

Shareholder engagement

The Board has continued to focus
on effective engagement with its
stakeholders during the year, to ensurethat their interests are taken into
account in its decision-making processes.
Detailed information is set out in theStrategic Report on pages 56 and 87
outlining how the Board has discharged
its duties under s172(1) of the Companies
Act, including further information on
the ECG and IECG see page 137, whichconstitute formal workforce advisory
panels under the Code.
Communication and interaction withshareholders remains very importantand engagement occurs on a regularbasis. Open and frequent dialogue
enables shareholders to fully understandthe Group’s strategy, objectives andgovernance processes. The Investor
Relations team has day-to-day
primary responsibility for managing
communications with institutional
shareholders through a combination ofbriefings to analysts and institutional
shareholders, both at the half-year andfull-year results and on other occasions
such as roadshows and conferences.
Meetings, briefings and conferenceswith investors have taken place bothin-person and virtually, with investor
visits generally taking place twice a year.
In addition, the Chair, CEO and Chair of theRemuneration Committee held meetings
during the year with major shareholders
to understand their views on governance,
for example the proposed Remuneration
Policy, and also Admiral’s performanceagainst strategy and reported to theBoard on any significant issues raisedwith them. During 2023, there were over
80 separate engagements held withinstitutional shareholders.

Meetings with investors aresupplemented by regular feedback to
the Board. The Investor Relations teamproduces a report on their activities in
the previous quarter which is circulated
to the Board for their consideration.
The report contains an analysis of shareprice performance, a summary of analyst
reports received during the month, andof meetings that have been held withinvestors and analysts, together withdetails of any significant changes to theshareholders’ register.
The Senior Independent Director has
specific responsibility to be available toinvestors who have any issues or concerns,
and in cases where contact with the Chair,Chief Executive Officer and Chief Financial
Officer has either failed to resolve theirconcerns, or where such contact isinappropriate. No such concerns havebeen raised in the year under review.
All shareholders are invited to attend theCompany’s Annual General Meeting (AGM)
in person. The 2023 AGM was held on
27 April 2023 with the required quorum.
Shareholders were able to vote on theimportant customary annual businessand encouraged to submit questions
to the Board in advance of the AGM.
The Chairs of the Audit, Remuneration,
Nomination and Governance, and Group
Risk Committees attend the AGM alongwith the other Directors and are available
to answer shareholders’ questions on
the activities of the Committees they
chair. Shareholders are also invited to ask
questions during the meeting and have an
opportunity to meet with Directors after
the formal business of the meeting has
been concluded. Details of proxy voting by
shareholders, including votes withheld, aremade available on request and are placedon the Company’s website following
the meeting.

The Group maintains a corporate website(www.admiralgroup.co.uk) containing
a wide range of information of interest
to institutional and private investors.
The major shareholders of the Company
are listed in the Directors’ Report on
page 199.
The regular channels of communication
with both the Financial Conduct Authority(FCA) and Prudential Regulation Authority(PRA) that existed throughout the year
were supplemented by the regulators
being invited to attend Board meetings.
The FCA attended the Board remotelyin April 2023, which gave the Board an
opportunity to directly hear their viewson specific areas such as Consumer Duty,
as well as wider market issues. The PRA
had previously attended a meeting of
the Board in December 2022. The Boardis also kept up to date with the regularcommunications between the Admiral
Insurance (Gibraltar) Limited Boardand the Gibraltar Financial Services
Commission as well as contact between
the Group’s other insurance subsidiaries
and respective regulators.

Employee Consultation Group
PurposeThe Board recognises the importance ofengaging with its workforce and does
so through a combination of formal andinformal channels. To ensure a twoway communication platform and an
effective means by which the views of
the workforce can be heard, the Board
established a UK Employee Consultation
Group (ECG) in 2019 with the aim ofenhancing and formalising its pre-existing
employee engagement arrangements.
For the purposes of Provision 5 of theCode, the ECG is a formal workforce
advisory panel.

Membership and attendance

Membership of the UK ECG comprises
elected colleague representatives andthe remit of the ECG is to act as a forum
for employee consultation, gatheringcolleague opinion and fostering a safe
environment to raise matters of interest
and generate ideas. There is a democratic
member election process and members
are provided with an induction to ensurethat there is clarity about the role andremit of the ECG, as well as their roleas members.
Non-Executive Directors are invited toattend ECG meetings on a rotational basis
and report back to the Board on matters
discussed, as well as actions agreed at
the ECG meeting. Taking this approachensures that each of the Non-Executive
Directors can engage with the workforce
directly and hear first-hand the issues andmatters that are affecting the workforce.
To ensure that the meetings remain a
two-way mechanism, Non-Executive
Directors are also asked to comment on
any insights from ECG meetings at thefollowing Board meeting and the Chair of
the UK ECG is regularly invited to attend
Board meetings to report on matters
discussed by the ECG and highlight any
areas of concern. Minutes of the ECG
meetings are also published on theintranet for all employees to view. NonExecutive Directors also provide an update
at ECG meetings on recent matters
discussed by the Board.

Admiral Group plc Annual Report and Accounts 2023

Corporate GovernanceIn addition to employee participation in
regular monthly surveys and the annual
GPTW survey, there are several othermechanisms used by the Group and theBoard to monitor and assess culture.
For example, culture audits conductedby the internal audit function; ‘Meet
the Manager’ meetings; the ‘Ask Milena’scheme; regular online manager chats;
ECG and IECG meetings (see page 137),
mandatory training completion rates;
health and safety data; whistleblowing
and grievances; and customer net
promoter score (NPS). All are felt to bevaluable methods of capturing the moodof our people and to gauge the health of
our culture.

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139

Corporate Governance

Board Leadership and Company Purpose
continued

Areas of focus for the Employee Consultation Group

During 2023, the Employee Consultation Group (ECG) forum remained focused on important issues for employees, such as hybrid
and remote working, remuneration and the cost of living, the performance management and appraisal processes, ideas on how to
improve engagement, employee morale, attrition and absence, proposals to support mental health and wellbeing, staff survey results
and improving diversity. There were four scheduled ECG meetings during 2023, with a wide range of topics discussed. There were also
a number of ad hoc meetings where important one-off items were brought to the ECG’s attention that required an ‘employee voice’prior to being presented to the Board. Presentations on the following topics were given to the ECG during the year, the results of these
discussions were presented to the Board by the ECG Chair:
Meeting

Main presentations and key topics discussed

Outcome/impact

February 2023

Group strategy refresh

The Group CEO attended the meeting to discuss Group strategy,
diversification, investments, technological advancements and elements of
the international business. Members were able to direct questions to the
CEO to gain a greater understanding of how business strategy was alignedwith Admiral’s purpose and values.
The Chair of the Remuneration Committee took the meeting throughthe current Director’s Remuneration Policy to ensure the ECG had fulltransparency around executive reward structure. Questions were asked
around alignment with the wider workforce.

UK Insurance, customer outcomes

The ECG was updated on the steps Admiral was taking to deliver first classcustomer outcomes and experience, how these were benchmarked, andmeasures taken to ensure the customer was always treated fairly.

Operational resilience

September 2023

The International Employee Consultation Group has been formally meeting since 2022, and is Chaired by Costantino Moretti, Head ofInternational Insurance.
This year, five IECG meetings took place in-person across the international offices of ConTe, L’olivier, Admiral Seguros together with
Admiral Tech, AECS and Elephant alongside the Admiral Europe Compañía de Seguros (AECS) Board meetings. The meetings wereattended by candidates chosen on a voluntary basis, with an agenda created to incorporate employee interests, questions and proposals.
Entity/Meeting

Topics discussed

Outcome/Impact

AECS –
February 2023

Insurance market developments

Discussions were held around how the insurance market had developed
in recent years through advancements in technology, new competitors
entering the market, and new regulatory requirements.

Challenges faced by employees

Concerns were shared regarding challenges being experienced
by employees and potential improvements that could be madewere discussed.

Talent and opportunities

Members discussed the opportunities Admiral offered in terms ofprofessional development, for example taking temporary opportunities inother Group entities.

Admiral culture

Members shared their views on Admiral’s culture and how this was evolving
with changing working practices.

L’olivier growth over the year

Discussions took place around the progress and growth of the businessover the year when compared to the other European countries. It was
confirmed that much had been achieved already, however development
and improvements were still required.

Product diversification

Members discussed how the insurance market had changed in recent years,
and how, through a strategy of expanding into different products, Admiralcontinued to evolve to meet future consumer requirements.

The importance of being eco-friendly

It was agreed that social and ecological issues were of growing importancefor brands and customers, in step with this was an increasing demand
for transparency and accountability. Admiral’s initiatives in this area
were discussed.

L ’olivier –March 2023

A discussion was held around Admiral’s ability to prevent, adapt, respondto, and learn from operational disruptions in line with FCA and PRA
requirements. Admiral’s important business services were identified
together with what the priorities were for the remainder of the year.

New representative orientation

New employee appointed representatives were welcomed and inducted to
the ECG.

Share dividends

A presentation and discussion was held around share dividends and how
new tax treatment may impact employees, along with focus on Admiral’s
dividend reinvestment scheme.

October 2023*

Hybrid working

The ECG discussed the impact of hybrid working on the business andactions being taken to preserve the Admiral culture in an evolving
working environment.

Admiral Seguros Main challenges for the futureand Admiral Tech –September 2023

A discussion was held around what members regarded to be the three main
challenges for the businesses over the next few years and how these should
be addressed.

November 2023*

Remuneration Policy

A presentation was made on the proposed amended Remuneration Policy
to be put to shareholders at the 2024 AGM for approval.

ConTe –
November 2023

ESG and sustainability

The meeting discussed how the evolving Group strategy was incorporating
ESG and sustainability trends.

December 2023

Climate change update

A presentation was made on the increasing expectations and regulatory
reporting requirements for banks and insurers on climate change, theambitious targets Admiral had set itself on net zero and the initiatives
being rolled out to meet these targets.

EU collaboration

Members agreed that greater collaboration between businesses in EU
countries could add value to the Admiral Group.

Diversification

The meeting discussed how a key element of the Group strategy was
focused on the diversification of products and channels.

Group sustainability

The meeting discussed how Admiral had a long track record of deliveringon key sustainability and ESG issues. A new Group wide approach was
being embedded into the core strategy and governance framework of thebusiness led by a recently appointed new Group Head of Sustainability.

* Ad hoc ECG meetings to address important one-off items that required an ‘employee voice’ prior to being presented to the Board.

Whilst recognising that this engagement mechanism will evolve over time, the Board continues to believe that the operation of the
ECG has been, and continues to be, an effective means of engaging with the workforce, to help the Board understand matters thatconcern the workforce and their specific interests, whilst having regard to these matters in the discussions and decisions that take placeat the Board. The Board will ensure that the ECG continues to develop as an effective, formal workforce advisory panel and that regularinteraction between the Board and the ECG is maintained.

Admiral Group plc Annual Report and Accounts 2023

New technologies and hybrid working The new technologies introduced to both improve the customer
experience and also assist in the work life balance of employees werehighlighted. Members confirmed that employees had benefitted from theversatility that came from a hybrid working model.
Elephant –November 2023

Strong culture and working practices

Members agreed that there was a strong culture within the business,where they felt valued, listened to and trusted by management.
Flexibility in working arrangements was viewed positively and assisted ineasing concerns around cost of living.

Admiral Group plc Annual Report and Accounts 2023

Corporate GovernanceMay 2023

Director remuneration

International Employee Consultation Group (IECG)

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141

Corporate Governance

Division of Responsibilities
Through the strong governance framework that it has in place, the Board is able to deliver on its
strategy and, in doing so, provide strong, sustainable financial and operational performance forour shareholders and wider stakeholders.
Board and Committee framework

Our Board and Committee framework supports the development of the highest standards of governance practices across the Group
which is integral to the successful delivery of our strategy.

Shareholders

Principal Board Committees
Audit Committee

Responsible foroverseeing theCompany’s systems forinternal financial control,risk management andfinancial reporting,and monitoring
the integrity of thefinancial statements.
 See page 161

Nomination
and GovernanceCommittee

Remuneration
Committee

Responsible forremuneration policy,
performance-related
pay schemes and sharebased incentive plans.

Reviews the compositionof the Board, considers
succession planning at
both Board and senior
management level andleads the process of
appointments to
the Board.

 See page 172

Group Risk
Committee

Assists with theoversight of theGroup’s risk appetite,
tolerance and strategy.
Monitors current
and potential
risk
Recognition
and reward
andwillthereceive up
Colleagues inexposures
the business
effectivenessofof
therisk into the equivalentof £3,600
sharesmanagement
Admiralduring theframeworkyear.
 See page 168 See page 146

CEOGroup Board Management Committees
Group
Reserving
Committee

Group Model
GovernanceCommittee

Group Assets
and Liabilities
Committee

Group
Investments
Committee

Group
Disclosure
Committee

Board roles and responsibilities

The Chair is primarily responsible forleading the Board, setting its agenda,
promoting a culture of openness anddebate and monitoring its effectiveness.
The Chair is supported by the Senior
Independent Director, who acts asa sounding board and serves as anintermediary for the other Directors
if required. Neither are involved in the
day-to-day management of the Group.
Save for the matters reserved for the
Board, the Chief Executive Officer(with the support of the Chief Financial
Officer and the senior executives) is
responsible for proposing the strategy
to be adopted by the Group, running thebusiness in accordance with the strategy
agreed by the Board and implementing
Board decisions.

Chair• Runs the Board and sets its agenda, with an emphasis on strategic issues.
• Ensures the Board has effective decision-making processes, demonstrating
objective judgement and applying sufficient challenge to proposals.
• Facilitates constructive Board relations, including effective contributions from
Non-Executive Directors.
• Ensures the Board has an appropriate balance of skills, knowledge, experienceand diversity.
• Leads the induction and development plans for new and existing Board members.
• Communicates with major shareholders and ensures the Board understands
their views.
• Ensures the Board receives accurate, timely and clear information.
• Leads the annual Board evaluation.

Senior Independent Director• Supports the Chair in the delivery of their objectives.
• Acts as a sounding board for the Chair and serves as an intermediaryfor the other Directors.
• Available to shareholders if they have concerns that cannot be resolved
through the normal channels.
• Works with the Chair and other Directors/shareholders to resolve significant issues
where necessary.

It is the Non-Executive Directors’ role toprovide constructive challenge, strategic
guidance, offer their respective specialist
advice and hold management to account.

• Leads the annual performance evaluation of the Chair.

It is the role of the Company Secretary
to support the Chair and administer theworkings of the Board and Committees,
ensuring Directors have precise andtimely information to enable an effective
decision-making process, whilst providing
governance, legal and statutory advice
and ensuring a record of decisions andactions is clear and attributable.

Chief Executive Officer

The Board has approved a statementthat sets out the clear division of
responsibilities between the Chair,Chief Executive Officer and SID. This andMatters Reserved for Decision by the
Board are reviewed annually and areavailable to review on Admiral’s website
at www.admiralgroup.co.uk.

• Ensures management provides the Board with appropriate information andnecessary resources.

• Leads the Chair appointment process.

• Runs the Group’s business and delivers its commercial objectives.
• Proposes and develops the Group’s strategy, in close consultation with theGroup’s senior management, the Chair and the Board.
• Implements the decisions of the Board and its Committees.
• Ensures operational policies and practices drive appropriate behaviour, in linewith the Group’s culture.
• Leads the communication programme with key stakeholders, including employees.

Divisional CEO’s, Subsidiary Boards and Committees,
Management Committees and Senior Management

Admiral Business

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

The Board

The Board is collectively responsible for establishing the purpose, values and strategy of the Group and for promoting
the long-term success of Admiral for the benefit of our shareholders and stakeholders.

Our CEO, Milena Mondini de Focatiis
was awarded the Best Leader ofa Big Company at the 2023 Best
Companies Awards. You can find out
more at www.b.co.uk

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143

Corporate Governance

Division of Responsibilities
continued
Role of the Board

The Board is responsible for promoting
the long-term, sustainable success of theGroup, generating value for shareholders,taking into consideration all of its
stakeholders and contributing to thewider society in which Admiral operates
its business. The Board is the principal
decision-making forum for the Group,
providing entrepreneurial leadership, both
directly and through its committees, anddelegating authority to the Executive
Directors and the senior management
team for the day-to-day operation of
the business.

The Group’s UK-regulated entities areaccountable to the Financial Conduct
Authority (FCA) and the Prudential
Regulatory Authority (PRA) for ensuring
compliance with the Group’s UK
regulatory obligations and that dealings
with the FCA and PRA are handled
in a constructive, co-operative andtransparent manner. Similar provisions
apply in respect of the Group’s
international businesses with regard
to the relevant regulatory authorities,
such as the Gibraltar Financial Services
Commission and Dirección General de
Seguros y Fondos de Pensiones in Spain.

Directors are expected to attend all
meetings of the Board and the Board
committees on which they serve and to
devote sufficient time to the Group to
perform their duties. Where Directors areunable to attend meetings, they receive
papers for that meeting, giving themthe opportunity to raise any issues with
the Chair in advance of the meeting.
The number of scheduled Board andBoard committee meetings attended byeach Director during 2023 is provided in
the table below.
In addition to the scheduled meetingsof the Board set out in the tablebelow, the Board also held a number of
additional late notice, ad hoc meetings
to discuss matters that were of sufficientimportance that they could not wait until
the following scheduled Board meeting.
All Directors are invited to participate insuch meetings which, by their nature,
are arranged at short notice. Where they
are unable to do so due to pre-existingcommitments, Directors are given theopportunity to contribute their views to
the Chair prior to the meeting. The Board
also delegates authority to a Board
sub-committee for the approval of final
drafts of announcements and proposals
which had already been considered by the
Board or its committees. The Board met
in-person for all seven of its scheduled
meetings held during the year, including
its strategy meeting (and October Board)which was held over two days in the UK.

Board and Committee meeting attendance

Board

Audit Committee

Group Risk
Committee

Mike Rogers1 (Chair)
Milena Mondini de Focatiis (Chief Executive Officer)
Geraint Jones (Chief Financial Officer)
Karen Green
Justine Roberts
Andy Crossley
Michael Brierley
Jayaprakasa (JP) Rangaswami
Evelyn Bourke
William (Bill) Roberts
Fiona Muldoon5
Annette Court6
Jean Park7

4/4
7/7
7/7
7/7
7/7
7/7
7/7
7/7
7/7
7/7
2/2
3/3
1/1

–
–
–
8/8
–
7/84
8/8
–
–
–
2/2
–
–

–
–
–
8/8
–
8/8
–
8/8
–
–
–
–
1/1

1
2
3
4
5
6
7

Matters reserved for the Board

Board and Committee meetings

Nomination
and GovernanceCommittee

Remuneration
Committee

4/4
–
–
–
6/6
–
–
–
–
6/6
–
2/2
1/1

–
–
–
1/12
5/73
–
7/7
–
7/7
–
–
–
–

The Board has adopted a formal scheduleof matters reserved for the Board’s
consideration. This is monitored by theCompany Secretary and reviewed by the
Board on an annual basis. Specific mattersreserved to the Board include theapproval of:• The Group’s long-term objectives andcorporate strategy• Operating and capital budgets, financial
results, and any significant changes toaccounting practices or policies• The Group’s capital structure• Results and financial reporting• The system of internal control andrisk management• The Group’s overall risk appetite• Changes to the structure, size andcomposition of the Board, including
new appointments• Succession plans for the Board andsenior management• Dividend policy and proposals for
dividend payments• Major acquisitions, disposals, and othertransactions outside delegated limits• The annual review of its own
performance and that of its
Board Committees• Annual review of selectedGroup policies• The review of the Group’s overall
corporate governance arrangements.

Board Committees

Group conflicts of interest

All committees are chaired by anindependent Non-Executive Director,
except for the Nomination and
Governance Committee, which is chairedby the Chair of the Board, and comprise amajority of independent Non-Executive
Directors. In accordance with the Code,all members of the Audit Committee are
independent Non-Executive Directors.
Appointments to the Committees are
made on the recommendation of theNomination and Governance Committee
and are for a period of up to three
years, which may be extended for two
further three-year periods, provided
the Director remains independent andthey are annually reappointed to theBoard by shareholders. The committees
are constituted with written Terms ofReference that are reviewed annually
to ensure that they remain appropriate
and reflect any changes in goodpractice and governance. These Termsof Reference are available on requestfrom the Company Secretary and canalso be found on the Company’s website:www.admiralgroup.co.uk.

In addition, each Board member is asked
to complete, annually, a conflicts ofinterest questionnaire that sets out any
situation in which they, or their connected
persons, have, or could have, a direct orindirect interest that could conflict with
the interests of the Company. Any current
directorships that they, or theirconnected persons hold, any advisory
roles or trusteeships held, together withany companies in which they hold morethan 1% of the issued share capital arealso disclosed. The Board is satisfied thatnone of the Directors had any potential
conflicts of interest during the year which
could not be authorised by the Board.

The Board has delegated authority
to several permanent committees todeal with matters in accordance withwritten Terms of Reference. The principal
committees of the Board – the Audit,
Remuneration, Risk, and Nomination and
Governance Committees all comply withthe requirements of the Code.

In compliance with the requirementsof the Companies Act 2006 regarding
Directors’ duties in relation to conflictsof interest, the Group’s Articles of
Association allow the Board to authorise
potential conflicts of interest that may
arise and to impose such limits as it
thinks fit. The Group has a Conflicts ofInterest Policy which deals with conflictsof interest, and this was reviewed andapproved by the Board in October 2023.
The Policy sets out the process andprocedure by which the Board manages
potential conflicts of interest that
may arise at Board level, within Board
Committees, and within the Group’s
Subsidiary Boards. Following this review,
the Board concluded that the processcontinued to operate effectively.

Directors are fully informed of allcommittee matters by the committee
Chairs who report on the proceedingsof their committee at the subsequent
Board meeting. Copies of committee
minutes are also distributed to theBoard. Committees are authorised
to obtain outside legal or otherindependent professional advice if they
consider it necessary. The Chair of eachcommittee attends the Annual General
Meeting to respond to any shareholder
questions that might be raised on thecommittee’s activities. An evaluationof the performance of each committee
against the duties set out in each Terms ofReference is carried out annually.

Mike Rogers joined the Board on 27 April 2023.
Karen Green was appointed to the Remuneration Committee on 2 October 2023.
Justine Roberts joined the Remuneration Committee on 31 January 2023, she missed two Committee meetings due to pre-existing engagements made prior to her joining the Committee.
Andy Crossley missed one meeting of the Audit Committee due to a pre-existing engagement.
Fiona Muldoon joined the Board and Audit Committee on 2 October 2023.
Annette Court stepped down from the Board on 27 April 2023.
Jean Park stepped down from the Board on 20 January 2023.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

The Board has determined the Group’s
purpose, to ‘help more people to lookafter their future. Always striving for
better, together’. This is embedded in
the culture of the business through ouraligned values and strategy. Part of theBoard’s role is to promote the Group’s
culture and, in particular, ensure that its
uniqueness is safeguarded. This has been
especially important in recent years where
there have been significant challenges to
how the business operates and its culture,such as the recent Covid-19 pandemic(see page 132).

The Board is responsible for organisingand directing the affairs of the Group ina manner that generates and preserves
value over the long-term. Through thestrong governance framework that it has
in place, the Board is able to deliver on its
strategy of providing strong sustainablefinancial and operational performance.
The Board is also accountable for ensuringthat in carrying out its duties, the Group’s
legal and regulatory obligations are being
met; and for ensuring that it operates
within appropriate risk parameters.

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145

Corporate Governance

Division of Responsibilities
continued

Information flows toand from the Board
Agendas and papers

Agendas and papers are circulated to
the Board electronically in a securemanner in preparation for Board andBoard committee meetings. The Board
agenda is structured by the Chairin consultation with the Company
Secretary and CEO. An annual scheduleof agenda items is reviewed and updated
regularly to ensure that items are
considered at the appropriate pointin the financial and regulatory cycle.

Meetings are structured so as to allow forconsideration and debate of all matters.
Routine Board papers are supplemented
by information specifically requested by
the Directors from time to time.
At each scheduled meeting, the Board
receives updates from the Chair, theCEO and CFO as to the financial andoperational performance of the Groupand any specific developments of which
the Board should be aware. In addition,
there is an update provided at each Boardon the matters discussed and considered

at each of the Group’s principal subsidiary
Board meetings. Additional meetings
are called as and when required andthere is contact between the Board,
Board committees, subsidiary boards
and management, where necessary,
to progress the Group’s business.

Cross-committee membership

Board and committee papers are circulated
electronically at least one week prior to the meeting.

The Chair will meet with Executive Directors andNon-Executive Directors ahead of the meeting toascertain any areas of particular concern or focus.

Admiral Group plc Annual Report and Accounts 2023

As shown on pages 118 and 142,
committee membership is composedin a way that ensures that there iscross-committee membership, whichallows items of importance to be flaggedfrom committee to committee in atimely manner. This complements thecommittee briefings that the Board
receives on the key points of discussion
following each committee.

AdviceStandardised Board reporting
templates and report coversheets are in place andtraining has been given to
those producing Board andCommittee reports to ensure
there is consistency, clarity andconciseness in approach.

All the Directors have access to the advice
and services of the Company Secretary,
who has responsibility for ensuring that
Board procedures are followed and foradvising the Board, through the Chair,on governance matters. The Company
Secretary provides updates to the Boardon regulatory and corporate governanceissues, new legislation, and Directors’
duties and obligations. The appointment
and removal of the Company Secretaryis one of the matters reserved for the
Board. Dan Caunt has held the positionof Company Secretary since 1 May 2022,
his biography can be found on page 124.
The Directors are also given accessto independent professional advice
at the Group’s expense, should
they deem it necessary to carry out
their responsibilities.

Other information flows

Training and professional
development

The Board Chair met with a wide rangeof Admiral colleagues and visited various
parts of the business during 2023 aspart of his induction process. The NonExecutive Directors are invited to visit
areas of the business for in-person onsite visits to meet employees and review
business functions.
As referenced within the commentaryon employee consultation on page
137, the Non-Executive Directors areinvited to attend ECG meetings andparticipate in the two-way engagementwith employees.
The Non-Executive Directors met
in-person during the year without the
Executive Directors being present.
From April 2023, Non-Executive Directors
individually met with the Chair for
discussion ahead of each Board meeting
and also met with the CEO for a debriefat the conclusion of each scheduled
Board meeting.

The development and training of Directors
is an ongoing process and is consideredthroughout the year. The Directors are
regularly updated on the Group’s business;legal matters concerning their roles andduties; the competitive environments
in which the Group operates; and anyother significant changes affecting theGroup and the industry of which it is apart. During the year, the Board received
deep dive updates, briefings and training
on the following topics: Admiral internal
model (AIM), IFRS 17, Chat GPT education
session (Large Language Models), Pioneer
Toolbox SME Market overview, Consumer
Duty training provided by KPMG, amongst
several business deep dives.

The Chair holds one-to-one meetings
with members of the Group’s senior
management team either in-personor on a virtual basis. Members of thesenior management team were invited
to join Board dinners which allows theopportunity for informal interaction
between Directors and the senior
management team.

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

All Board and committee meetings during
the year were held in an open atmosphereconducive to robust and constructive
challenge and debate. All Directors havetherefore been able to bring independentjudgement to bear on issues such as
strategy, risk management, performance,and resources.

The Company Secretary manages a yearly plannerof scheduled agenda items for the Board andBoard Committees.

Board and committee papers are draftedby relevant authors throughout the businessand are subject to an establishedreview process ahead of submission.

The CEO of UK Insurance (Cristina
Nestares), together with the Chief Risk
and Compliance Officer (Keith Davies),
the Head of International Insurance(Costantino Moretti) and the CEO of
Admiral Money (Scott Cargill) are invited
to attend every Board meeting andregular Board dinners. This has proved
an effective means of ensuring that
senior managers below Board level have
exposure to and gain experience of theoperation of the Board.

Dynamics

Board and Board committee meeting preparation process

The Company Secretary liaises with the Chair,
Executive Directors, committee Chairs and key
members of senior management in advanceof each respective meeting to confirm agenda
items and required attendees.

Attendees

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Corporate GovernanceNomination and Governance Committee Report

Overseeing
OUR BOARDCOMPOSITION
Dear Shareholder,

Six committee
meetings
held in 2023.

As a Committee, we have continued
our focus on the composition, skills
and experience present on the Board
and Board committees to ensure thesereflect the current requirements of
the Admiral business and meet the
expectations of our stakeholders.
To effectively oversee this process, theCommittee has maintained and refineda skills matrix which maps those skills
currently present on the Board and thoserequired to ensure the effective deliveryof our business strategy. Where gaps
in skills and experience are identified
these are reviewed and addressed by
the Committee and the necessary
recommendations are made to the Board.
Diversity and inclusion were key topics forCommittee discussion during the year.
The Committee ensured that the Board
continued to meet the FTSE Women
Leaders Review target that 40% of theBoard should be female, in addition to
The Parker Review’s target that theBoard should include at least one director
from an ethnic minority background by
2024. The evolving requirements of The
Parker Review at a senior managementlevel were discussed in detail, and theCommittee ensured that the Group’s

Admiral Group plc Annual Report and Accounts 2023

Following an external review of the Board
and Board Committee’s effectivenessin 2022, the 2023 annual review of theCommittee’s effectiveness, which took
place in December, was carried out by
way of an internal review led by myself
in conjunction with the Company
Secretary. This review concluded that,
overall, the Board and its committees
remained effective but noted some areas
for improvement for 2024. These are
outlined on page 160 of this report, alongwith progress against the previous year’s
recommendations set out on page 159.
In line with the requirements of Solvency
II, the Senior Insurance Manager Regime,
and in accordance with the Group’s Senior
Managers & Certification Regime Policy,
I have also carried out the process ofassessment for the Group CEO, Group
Non-Executive Directors, and the Chairsof the Group’s material, regulated
subsidiaries; EUI Limited, Admiral
Insurance Company Limited, Admiral
Insurance (Gibraltar) Limited, and Admiral
Financial Services Limited (Admiral
Money), Able Insurance Services Limited(Admiral Pioneer), Elephant Insurance
Company (USA), and Admiral Europe
Compania de Seguros - AECS (Europe) toensure they meet the requirements interms of qualifications, capability, honesty
and integrity.
The rest of this Report sets out in moredetail the activities of the Committee
during 2023. I would like to thank theCommittee members for their continued
contributions and support throughout
the year.
Mike Rogers
Chair of the Nomination and
Governance Committee
6 March 2024

Committee meetings
held during the year

Committee Membershipand Meeting Attendance

The Committee is chaired byMike Rogers, in addition to Mike,
the Committee comprises two
independent Non-Executive Directors:
Justine Roberts and Bill Roberts.
Individual meeting attendance andchanges to membership during theyear are detailed below.
MemberAttendance1

Mike Rogers
Justine Roberts
Bill Roberts
Annette Court3
Jean Park4
2

4/4
6/6
6/6
2/2
1/1

1 Scheduled meetings only, additional ad hoc
Committee meetings took place during the year.
2 Mike Rogers joined the Committee as Chair on
27 April 2023.
3 Annette Court retired from the Board and all of hercommittee memberships following the 2023 AGM
on 27 April 2023.
4 Jean Park retired from the Board and all of hercommittee memberships on 20 January 2023.

Composition

The Committee met formally six times
during the year. The membership of
the Committee at the year-end wasMike Rogers (Chair), Justine Roberts
and Bill Roberts. Mike Rogers wasappointed as Chair of the Committee
following the 2023 AGM on 27 April
2023, replacing Annette Court who
stood down from the Committee
and the Board at this time. Jean Park
retired from the Committee andthe Board on 20 January 2023.
Justine Roberts and Bill Roberts are
independent Non-Executive membersof the Committee, in accordancewith the Code which requires thatthe majority of members should be
independent Non-Executive Directors.

The Committee meets at least twice
per year, in accordance with its Terms ofReference, and at such other times as
the Chair may require. During 2023, theCommittee held six formal scheduled
meetings. The Committee Chair agrees
the meeting agendas for each meetingwith the Company Secretary, items
covered during the year are linked
to an agenda planner covering the
responsibilities of the Committee.

Attendees at Committee meetings
The above table shows the attendanceof Committee members at meetings
during 2023. The Company Secretaryacts as Secretary to the Committee.
Other individuals, such as the Chief
Executive Officer, the Group Head ofPeople Experience and representativesof different parts of the Group, may
be invited to attend all or part of any
meeting, as and when appropriate.

Role and responsibilitiesof the Committee

The Committee reviews the leadershipand succession needs of the Board andensures appropriate procedures arein place for nominating, training andevaluating Directors. It also oversees thegovernance of the Group to ensure thebusiness is operating within a transparent
and accountable framework.

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

As a Committee, we havecontinued our focus on
the composition, skills andexperience of the Board
and Board committees
to ensure these reflect thecurrent requirements of theAdmiral business and meetthe expectationsof our stakeholders.

On behalf of the Board,
I am pleased to present myfirst report as Chair of theNomination and GovernanceCommittee (the Committee).
The Committee plays a keyrole in overseeing Admiral’s
Board composition, ensuring
it has the optimum balanceof skills, experience andknowledge, as well as ensuring
diversity in the broadest senseon the Board and all of its
committees. The Committee
also ensures that theGroup operates withina robust and transparent
governance framework.
This report sets out theCommittee’s main activities,
along with how it hasdischarged its responsibilities
throughout the year ended
31 December 2023.

Succession planning was a key focus
for the Committee during 2023.
As I discussed on page 114, I succeeded
Annette Court as Chair following the2023 AGM in April. My induction process,which began following the announcementof my appointment in January 2023,
was bespoke and comprehensive.
Further details on this are set out on
page 151. In addition to myself as
Chair, the Board, on recommendationfrom the Committee, also appointed
Fiona Muldoon as a new Non-Executive
Director in October 2023. The full searchand recruitment process for Fiona’s
appointment is set out on page 149.

policy on diversity and inclusion was
reviewed during the year and continued
to be embedded throughout theGroup. Where necessary, changes were
implemented to the appointment
and succession processes to ensurethat evolving diversity considerations
were key to discussions during theseprocesses. More details on this and wider
considerations around diversity andinclusion in the workplace are set out on
page 154.

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149

Corporate GovernanceNomination and Governance Committee Reportcontinued

The Nomination and Governance Committee is primarily responsible for:

The Committee is regularly updated on proposed senior appointments and governance changes across the Group, as well as key
developments within the corporate governance landscape. The terms of reference of the Committee include all the relevant matters set
out under the UK Corporate Governance Code, they are reviewed annually by the Committee and are available to view on the Company
website in the investor relations section.

Key activities of the Committee during the year

A description of the activities the Committee has focused on during the year ended 31 December 2023 is outlined under thefollowing headings:

Fiona Muldoon

Non-Executive Director search and recruitment process
Candidate criteria and search
January – February 2023

Shortlist and interview
March – June 2023

STEP 1
Identification of rolerequirements

STEP 4
Shortlisting candidates

STEP 2Engagement of third party
advisor

STEP 5Interview process

The Committee, led by the Chair,gave consideration as to the skills,
experience, knowledge and diversityof the Board and those requiredfor optimal Board and Committee
composition. During this process
the Committee canvased the viewsof the Board and senior Admiralmanagement. From this, NonExecutive Director (NED) candidate
criteria requirements were agreed
at the Committee meeting inJanuary 2023.

H&S prepared an initial longlist of
candidates which was presented
to the Committee in March 2023.
Shortlisted candidates were thenreviewed at the Committee meeting
held in April 2023. Following themeeting, shortlisted candidates were
contacted to establish interest andan initial interview was undertaken
by H&S.

Approval and appointment
July – October 2023

STEP 6
Committee recommendation
and Board approval

Following the satisfactory receipt ofreferences, the Committee met to
discuss a proposal to recommend
to the Board the appointment of
Fiona Muldoon as Non-Executive
Director and member of the Audit
Committee. The Board considered
and accepted the recommendationof the Committee. A formal offer was
put to, and accepted by, Fiona.

Non-Executive Director appointment process and appointments made during 2023

Appointments to the Board are the responsibility of the Board as a whole, acting on the advice and recommendations of the Nomination
and Governance Committee. The Committee seeks to balance the retirement and recruitment of Non-Executive Directors well aheadof relevant deadlines so as to avoid a dislocation of Board process by losing experience and skills. The Committee is mindful of the needto promote diversity and inclusion in appointments to the Board and throughout the Group. Appointments are made on merit andagainst objective criteria, having due regard to the benefits of diversity, and with a view to ensuring the Board has the appropriate mix of
personalities, skills and experience.
The policy on Board appointments involves the Committee developing an appropriate job specification that identifies the required skills
and experience for the role and, in most instances, engaging external recruitment consultants, to lead the search process and identify
suitable candidates. Interviews of the shortlisted candidates are held with the Chair and members of the Committee. After considerationby the Committee, a recommendation is made to the Board to appoint a preferred candidate. Further details of how this process
worked effectively during the year are set out below. The Committee is satisfied that this constitutes a formal, rigorous and transparent
process for the appointment of new Directors to the Board and its subsidiaries, embracing a full evaluation of the skills, knowledge andexperience required of new Directors.
Mike Rogers, Chair: Appointed 27 April 2023. Mike Rogers joined the Board as Chair following the 2023 AGM. Mike was also appointed
as Chair of the Nomination and Governance Committee at this time. The search and recruitment process for Mike was set out in detailin the Committee Report in the 2022 Annual Report and Accounts. Annette Court, the Board and Committee Chair until the 2023
AGM, played no part in the recruitment process of the replacement Board Chair. This process was led by Justine Roberts, the thenInterim Senior Independent Director. Justine was appointed as the Senior Independent Director on a permanent basis with effect from
31 January 2023.

Heidrick and Struggles (‘H&S’),experts in the field of search andrecruitment, were engaged by theCommittee to assist with the searchfor potential NED candidates. H&S
was asked to ensure the search
identified candidates from a diverse
range of backgrounds and industries.
Alongside the Committee, H&S
prepared the Admiral Group plc NonExecutive Director role specification,
this included a requirement for
relevant financial experience to allow
the candidate to be considered formembership to the Audit Committee.

Fiona Muldoon, Non-Executive Director: Appointed 2 October 2023. Fiona Muldoon joined the Board as Non-Executive Director and,having specific and relevant financial experience, became a member of the Audit Committee on 2 October 2023. A summary of therecruitment process for Fiona is set out below.

External Recruitment Consultant

Heidrick and Struggles (‘H&S’) was engaged as the external independent recruitment search consultant in the appointments of both
Mike Rogers and Fiona Muldoon. H&S is committed to promoting diversity in the candidates that it presents on an annual, global
and cumulative basis and this was reflected in the candidates it identified for the appointments of Mike and Fiona. H&S has no otherconnection with the Admiral Group or its Board Directors.

Admiral Group plc Annual Report and Accounts 2023

Following further discussions, theleading three candidates wereinterviewed by the sub-committee
and two additionally met the CFO.
The merits and suitability of thecandidates were scrutinised ateach stage during this processagainst the candidate specification.
Fiona Muldoon emerged as being
the Committee’s preferred candidate
given her strong and relevant skills
and experience, including relevant
financial experience. It was agreed
that she would be a good cultural fit,and had the capability to contribute
effectively to the Group Board.
Fiona subsequently met with theGroup CEO.

STEP 7
Appointment

Fiona was appointed to the Admiral
Board and as a member of the
Audit Committee with effect from
2 October 2023. Fiona immediately
embarked on a personalised
and in-depth induction process.
Her appointment will be put before
shareholders for approval at the2024 AGM.

STEP 3
Initial search process

A sub-committee of the Committee
was formulated consisting of the
Chair, Non-Executive Directors andthe Head of People Experience tooversee the recruitment process.
H&S commenced a wide-ranging
search process and regular updates
on progress were given to thesub-committee.
Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Reviewing the structure size and composition of the Board as a whole, along with consideration of the balance of skills, knowledge,
experience, time commitment and diversity of the Board and its committees.
Succession planning for Executive Directors and Non-Executive Directors and leading the process for Board appointments by making
recommendations regarding Board vacancies.
Make recommendations to the Board on refreshing the membership of the Board’s principal committees.
Overview of succession planning at executive and senior management level throughout the Admiral Group, ensuring there is anexperienced and diverse pipeline for succession.
Devising the selection criteria for the role, skills, capabilities and experience required for a particular appointment and engagementwith independent, third-party recruitment experts.
Consideration of results of the Board evaluation and consideration of the proposed annual re-election of Directors to the Board
at the AGM.
Review of Admiral’s governance framework to ensure transparency and accountability, and to consider developing corporate governancematters to bring to the attention of the Board where necessary.
Consideration of the Committee’s draft report for inclusion in the Annual Report and Accounts.

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Corporate GovernanceNomination and Governance Committee Reportcontinued

Non-Executive Director induction

Upon appointment, our Non-Executive Directors embark on a bespoke and comprehensive induction programme, comprising common
elements for all Non-Executive Directors, as well as elements tailored to the individual depending on their role, skills, knowledge andexperience. The induction process, led by the Company Secretary, covers topics such as the role of a Non-Executive Director and their
responsibilities, the workings of the Board and the Group’s subsidiary boards, and the Company’s operations. Non-Executive Directors areprovided with a suite of background reading materials before induction sessions are arranged with individuals from each of the Groupbusinesses, again, depending on the individual’s induction requirements. Ongoing professional development needs of newly appointed
Non-Executive Directors are then monitored via annual individual Director evaluations and the Committee’s oversight of the NonExecutive Director skills matrix.
Inductions took place for both Mike Rogers, Chair, and Fiona Muldoon, Non-Executive Director, during the year. Outlined opposite isa summary of Mike Rogers’ induction process at Admiral. Fiona also received a comprehensive and bespoke induction similar to thatoutlined opposite.

Board Committee changes, term extensions and internal appointments addressed by the Committee during 2023
The Board, on recommendation from the Committee, agreed to the following proposals/changes during the year:• The appointment of Justine Roberts as permanent Senior Independent Director and permanent member of the Remuneration
Committee was made effective from 31 January 2023

Chair induction process
Previous Chair

Prior to Annette Court stepping
down as Chair, she met with Mike tofacilitate the smooth transition of
the responsibilities of Chair. She gave
an overview as to the workings ofthe Board and its committees, her
key thoughts from a cultural andgovernance perspective, and thechallenges and opportunities facing
Admiral. This also included her work
as Chair of the Committee.

Senior management

Mike met with key members ofAdmiral’s senior management teamincluding the Chief Executives ofeach of our UK and overseas businessdivisions along with the department
heads of Investor Relations,
Compliance, Finance & Actuarial,
Risk Management, Internal Audit,
IT, Pricing, IT Security and People
Services to understand these key
areas of businesses.

• Annette Court retired as Chair of the Board including all of her committee memberships following the 2023 AGM held on 27 April 2023

Non-Executive Directors

Mike met and has continued tomeet individually with each of the
Non-Executive Directors who gave
their insight into Board dynamics,
culture and governance as well as
highlighting their backgrounds andareas of expertise. Mike also met
with the Chairs of our subsidiary
Boards and overseas businesses.
Board Committee Chairs brought
Mike up to speed on their respective
Committee’s business.

• Mike Rogers was appointed as a Chair of the Company and Chair of the Committee effective from 27 April 2023
• The extension of JP Rangaswami’s three-year term as Non-Executive Director became effective on 29 April 2023
• Fiona Muldoon was appointed as a Non-Executive Director and member of the Audit Committee effective 2 October 2023
• Karen Green was appointed as a member of the Remuneration Committee effective 2 October 2023
• The appointment of Andy Crossley as Chair of the Group Risk Committee was made permanent on 23 October 2023
• Approval of internal senior subsidiary board and non-executive appointments• Approval of additional external appointments for existing Board Directors• Consideration of and recommendation for reappointment of all Directors at 2023 AGM.

Senior Independent Director

Site visits

As Senior Independent Director,
Justine Roberts works closely with
the Chair providing a sounding board
and additional perspective into Board
matters. Justine was able to give Mikethe benefit of her seven years ofservice on the Admiral Board.

Mike undertook various site visits
during his first year and met withmanagement and colleagues acrossthe business as part of his induction
process, this included our UK sites inSouth Wales, as well as L’olivier offices
in Paris and Lille, the Admiral Seguros
office in Seville, AECS in Madrid andConTe in Rome.

Annual re-election

As set out in the Group’s Articles of Association, all Directors should retire and offer themselves for re-election at each AGM, in accordancewith the UK Corporate Governance Code (the Code) and the Company’s current practice. Therefore, all Directors will be submitting
themselves for election or re-election by shareholders at the forthcoming AGM.
Following a full review and evaluation during the year, the Board is satisfied that all Directors are properly qualified for their election or
re-election by virtue of their skills and experience and their contribution to the Board and its committees. Further details of why each
Director’s contribution is, and continues to be, important to the Company’s long-term sustainable success is provided on page 118 andwithin the notes to the Notice of the 2024 Annual General Meeting.

CEO

Mike and Milena Mondini de Focatiis
met frequently to discuss key areasof focus for the Company and theBoard. Milena briefed Mike on Groupmatters including an overview ofGroup strategy, operations, risks,people and culture, markets andsuccession planning.

CFO

Geraint Jones briefed Mike on all
Group finance matters including;financial performance andprojections, investor feedback,market analysis, investments, capitalmanagement, budgets, reporting andcontrol processes.

External advisors

Mike met with many of Admiral’s
key external advisers including our
external auditor, lawyers and brokers
to obtain external perspectives ofthe business.

Admiral Group plc Annual Report and Accounts 2023

Mike Rogers

Significant shareholders

Chair Mike joined Admiral as Chairfollowing the 2023 AGM held on
27 April 2023. Mike was subject to acomprehensive and bespoke induction
programme designed to provide himwith the necessary information toeffectively take on the role as Chair,
this process began following theannouncement of his appointment
on 31 January 2023.

Mike has met with a number ofAdmiral’s significant shareholders,
including the founders of theCompany, Henry Engelhardt andDavid Stevens, to understand theirviews on the business. Mike regularly
meets with employee shareholders
throughout the business and theopportunity for individual retailshareholders to meet the Chair takes
place annually at the AGM.

Company Secretary

Information and educational
materials

Dan Caunt, spent time with Mike
explaining the Group governanceframework; this included all
operational aspects of the Boardand its committees as well as
engagement with stakeholders,
Admiral’s AGM process, Director
duties, UK Corporate Governance
Code requirements, Board policies,
the results of the most recent Board
evaluation and areas of Board focus
for the coming year.

A comprehensive suite of educational
materials was provided to Mike by
the Company Secretary including,for example; Admiral’s businessplan and strategy, key roles andresponsibilities of the Board, itscommittees, Directors, guidelines
and policies for a UK Listed insurance
Company regulated by the FCA and
PRA, minutes of meetings, terms ofreference etc.
Admiral Group plc Annual Report and Accounts 2023

Corporate Governance• Jean Park retired from the Board including all of her committee memberships on 20 January 2023

Mike Rogers

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Corporate GovernanceNomination and Governance Committee Reportcontinued

Our Board composition and how we plan for succession

The composition of the Board is kept under constant review by the Committee. As at 31 December 2023, the Board comprised 11
Directors: The Chair (who was independent on appointment), two Executive Directors, and eight independent Non-Executive Directors –see page 118.
The Committee carefully considers the independence, composition and balance of skills and knowledge of the Board. As a result,
the requirement to refresh Board and committee memberships in an orderly manner is continually monitored so as to maintain thecontinuity of Board process and the strength of personal interaction which underlies the effectiveness of the Board.

The tenure of the previous Group Board Chair, Annette Court, came to an end at the 2023 AGM held on 27 April 2023. Annette had no
involvement in the recruitment of her successor, Mike Rogers, as Chair. An explanation as to why Annette’s tenure extended beyond
the nine years recommended by the Code is provided on page 125. Mike Rogers appointment as Chair of the Board became effective
following the AGM held on 27 April 2023. On appointment, the Board considered that Mike met the independence criteria set out inprovisions 9 and 10 of the Code. The Chair’s biography can be found on page 118.
The independence of each Non-Executive Director has been assessed during the year, in line with the independence criteria contained
within provision 10 of the Code. The Board has identified on page 152 which Directors it considers to be independent. The Board
considered all the Non-Executive Directors to be independent during the year. For the year ended 31 December 2023, 80% of the Board,
excluding the Chair, were considered independent Non-Executive Directors. The number of independent Non-Executive Directors meetsthe requirements set out under provision 11 of the Code which requires that at least half of the Board, excluding the Chair, should be
Non-Executive Directors whom the Board considers to be independent.

Balance of skills,
knowledge andexperience

Balance of skills, knowledge and experience

ESG/Sustainability

Remuneration/
PeopleSmall/Medium
EnterpriseLending

Entrepreneurial

Operations

Tech/Digital/Data

International

City

M&A

Director

Marketing/Retail

The Committee understands that a wide range of complementary skills on the Board will assist in the meeting of Board objectives andthe delivery of Company strategy. The Committee regularly reviews the Board skills matrix, particularly in the context of succession
planning and skills that are potentially lost at the end of a Director’s tenure on the Board. The current skills and experience on the
Board are outlined below and an explanation regarding how this feeds into succession planning follows later in this report.
Executive/Strategic
LeadershipTimecommittment
and external
appointments

The Directors have a broad range of skills, knowledge and experience and can bring independent judgement to bear on issues of strategy,
performance, risk management, resources and standards of conduct which are integral to the success of the Group.

Insurance

Annual Board
evaluation andindividual
director appraisals

Non-Executive
tenure andindependence

Risk

Board
diversity

Board
compositionand succession
planning

Non-Executive Directors
Tenure and independence

The table below details the length of service of the Chair and each of the current Directors. It illustrates the balance between experienceand bringing in fresh perspective, as well as the independence of each of the Non-Executive Directors.

Board tenure
Director

Date of appointment

Length of service as a Director
as at 31 December 2023

Independence

27 April 2023
17 June 201627 February 2018
5 October 201814 December 201829 April 2020
30 April 2021
11 June 2021
2 October 2023

8 months
7 years 6 months
5 years 10 months
5 years 3 months
5 years
3 years 8 months
2 years 8 months
2 years 6 months
3 months

On appointment
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent

Director – 11 August 2020
CEO – 1 January 2021
13 August 2014

3 years 4 months

Executive Director

9 years 4 months

Executive Director

Non-Executive Directors
Mike Rogers (Chair)
Justine Roberts
Andy Crossley
Michael Brierley
Karen GreenJP Rangaswami
Evelyn Bourke
Bill Roberts
Fiona Muldoon

Mike Rogers (Chair)
Justine Roberts
Andy Crossley
Michael Brierley
Karen GreenJP Rangaswami
Evelyn Bourke
Bill Roberts
Fiona Muldoon

Executive Directors
Milena Mondini de Focatiis
Geraint Jones

Executive Directors
Milena Mondini de Focatiis
Geraint Jones

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Our Board has abroad range ofskills and experience
which it uses tobring independentjudgement to bearon issues of strategy,
performance,risk management,
resources andstandards of conduct
which are integral
to the success of
the Group.

The Chair, Senior Independent Director and independent Non-Executive Directors are currently appointed for fixed periods of three
years, subject to election by shareholders. The initial three-year period may be extended for two further three-year periods subject
to performance review and annual re-election by shareholders. JP Rangaswami’s term of appointment as Non-Executive Director was
extended by a further three-year period during the year, subject to annual re-election by shareholders. Letters of appointment may beinspected at the Company’s registered office or can be obtained on request from the Company Secretary.

Finance

152

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Corporate GovernanceNomination and Governance Committee Reportcontinued

Time commitment and external appointments

On appointment, all Directors are advised of, and requested to make, the necessary time commitment required to discharge their
responsibilities effectively. This time commitment is also outlined in the letters of appointment issued to the Chair and Non-Executive
Directors. When making new appointments, the Committee takes into account other demands on the Directors’ time. Prior toappointment, significant commitments are disclosed by Directors to the Committee and the Board.
As part of the annual performance evaluation each Director is appraised on their time commitment dedicated to the Company.
The Committee also reviews the time commitment required of all Non-Executive Directors at least annually to consider whether theguidance on time commitment of certain roles needs to be extended due to market or responsibility changes. The Board is satisfied thatall Directors have dedicated the required amount of time to the Company to effectively fulfil their roles, and that the Company has given
the Non-Executive Directors sufficient time to perform the duties required of them.

Women on the Board represented five (46%) of its 11 Director membership as at 31 December 2023, compared with six (55%) as
at 31 December 2022. Admiral continues to be one of only a few FTSE 100 companies where the Board positions of CEO and Senior
Independent Director are held by women, demonstrating Admiral’s continued strong support for the progression of women in seniorleadership roles. Official data published by the FTSE Women Leaders (succeeding the Women on Boards Report and Hampton Alexander
Review), issued in February 2023, reported that the percentage of women on FTSE 100 Boards was 40.5% improving from 39.1% in 2022,
this demonstrates Admiral’s outperformance when compared with the average of the FTSE 100.

Board diversity
Nationality

Ethnicity

Age

GenderAs well as considering the demands of a Director’s time upon appointment, as required under provision 15 of the Code, there is inplace a formal procedure for the approval of additional external appointments for Directors through the Committee and the Board.
The Committee and the Board are satisfied that the external commitments of all the Non-Executive Directors do not conflict with theirduties and commitments as Directors of the Company.
The Board, through ongoing assessment and annual performance review, remains satisfied that it has the appropriate balance of skills,
experience, independence and knowledge of the Group to enable it and its committees to discharge their duties and responsibilities
effectively, as required by the Code. In addition, the Directors are aware of their legal duties under s172 of the Companies Act 2006 to act
in a way they consider, in good faith, will be most likely to promote the success of the Company for its shareholders, as well as considering
the interests of wider stakeholders. Further details of how the Board fulfils its duty in this regard are outlined on page 87.

Board and senior management diversity and inclusion

The Listing Rules and Disclosure Guidance and Transparency Rules were amended to include new disclosure requirements for listedcompanies for financial years starting on or after 1 April 2022. As required under the amended requirements, a table setting out genderand ethnicity diversity at Board and senior management level is included on page 156. The Board diversity targets, which are in-line withthe targets set by the FTSE Women Leader’s Review and the Parker Review, are: at least 40% of the board are women; at least one of
the senior board positions (Chair, SID, CEO and CFO) is held by a woman; and at least one member of the Board is from a minority ethnic
background. As set out below, the Committee is content that Admiral meets the targets set out in the Listing Rules and Disclosure
Guidance and Transparency Rules 9.8.6(9)(a).

Gender diversity

Diversity and inclusion and the variety of perspectives that it brings has been proven in studies to increase innovation and creativity, and,as a result, improves performance. It also has other positive impacts, such as providing greater awareness, widens the talent pool andchallenges the views or practices that may have become embedded over time. Admiral depends on all of the above, which are enhanced
through having a diverse workforce, to successfully implement its business strategy.
During the year, the Committee reviewed the Board Diversity and Inclusion Policy and discussed the appropriateness of the measurable
targets to increase diversity and inclusion at Board, Subsidiary board and senior management level. The wording of our policy has been
updated to increase the breadth of diversity we aim to see in our business, this includes wording explicitly referencing additional diversity
aspects such as “ethnicity, sexual orientation, disability and socio-economic background (in addition to the aspects of age, genderor educational and professional backgrounds)” and “approach, skills and experience, race, age, gender, educational and professional
background and other relevant personal attributes”. The Committee seeks to ensure that a clear recruitment strategy for Board andsenior management appointments is in place and is aligned to this policy.
Measures that are covered under the Policy, including progress updates against each, include:(i)	Having one member of the senior executive team who is responsible and accountable for gender diversity and inclusion at Grouplevel. Cristina Nestares (EUI CEO) is the accountable executive for gender diversity(ii)	Setting internal targets for gender diversity in senior management. Progress against the Group’s target of 40% of women in senior
management by 2023 is detailed below(iii)	Publishing progress annually against these targets in reports on the Group’s website. Progress updates on the UK business’ progressagainst the HM Treasury’s Women in Finance Charter commitments are provided on an annual basis on the Group’s website(iv)	Linking the pay of the EUI CEO to the progress made against internal targets on gender diversity. The Remuneration Committee has
also approved the linkage of progress against the Women in Finance target within the non-financial performance measures of the EUI
CEO, Cristina Nestares.

Admiral Group plc Annual Report and Accounts 2023

British 7

40s 2

60s 3

Non-British 4

50s 5

70s 1

White British or otherWhite (including white
minority groups) 10

Male 6
Female 5

Asian/Asian British 1

As a result of the continued progress to balance gender diversity at Board level and to align with the Women in Finance Charter’s aim ofincreasing female representation at the UK senior executive level to 40% by the end of 2023, and the FTSE Women Leaders target of
40% representation by 2025, the Committee has aligned the annual target of women in senior management positions at 40%. The aim
is to achieve this level of gender diversity at an aggregate level across the subsidiary boards too. As at 31 December 2023, women
represented 33% of all of the subsidiary board appointments. Focus will continue to improve gender diversity at this level during 2024.
Female representation was 40% of our Senior Executives (Executive Committee equivalent) and 34.4% of their direct reports. Admiral is
working to ensure it continues to achieve the 40% target by the end of 2025. As at 31 December 2023, the gender diversity split acrossthe Admiral Group was 50% female / 49% male. The remaining 1% included non-binary and other genders, and colleagues who’d prefer
not to say.

Ethnic diversity

The Committee continues to monitor the requirements of The Parker Review’s report on ethnic diversity in the context of thecomposition of its Board and the new reporting requirements for senior management. It also monitors the initiatives that are being
implemented across the Group to increase diversity, along with consideration as to how measures to develop a diverse pipeline of talentfor Board and senior management appointments should be developed and monitored. The Board includes one Director from an ethnic
minority background, which meets one of The Parker Review’s key recommendations for FTSE 100 companies, as well as Listing Rules
and Disclosure Guidance and Transparency Rule 9.8.6(9)(a). Further information on how the Group is developing a pipeline of ethnicallydiverse candidates is outlined below.
The Group remains strongly supportive of the principle of boardroom diversity, of which gender and ethnicity are important, but not theonly, aspects. What is also important is diversity of thought, experience and approach and each new appointment must complement
what already exists around the Board table.
Ethnic diversity amongst senior management and the wider workforce is something that Admiral continued to focus on throughout
2023. Admiral produced its first ethnicity pay gap report in the UK during the year, further demonstrating its commitment to ethnic
diversity in the workplace. Whilst the Committee recognises that the workforce is not always comfortable with voluntarily sharing such
personal information, there have been initiatives introduced to encourage more people to make such voluntary disclosures. As a result,
we have seen an increase this year to 84% disclosure in the UK. As set out in the table below, the percentage of ethnic diversity at senior
management levels is 3%. The Committee has discussed The Parker Review recommendations to implement a target for ethnic diversity
representation at senior management level within the Group by 2027 and will be updating shareholders in this regard in due course.

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Overall assessment of composition

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Corporate GovernanceNomination and Governance Committee Reportcontinued

Activity to improve diversity and inclusion in the talent pipeline

Examples of the work Admiral has undertaken to improve its diversity pipeline during the year are set out below, for further information
see pages 62 and 132.

1

2
Admiral is designing a talentand development program, inpartnership with McKinsey which
focuses on finding talented
employees from ethnically diverse
backgrounds at different levels andsupporting these employees into
leadership roles.

Admiral has signed several pledges
such as the Menopause Pledge,
Endometriosis Friendly Employer,
Neurodiversity Friendly Employer
and continued a commitment to theRace at Work Charter by signing up
to their extended initiatives.

The Committee oversees the succession planning strategy and appointment procedure for new Director’s on behalf of the Board.
The Committee reviews those skills present on the Board in order to understand where there are strengths and potential weaknesses,
and where there may be the opportunity to bring in complementary skills to improve the functionality and depth of experienceof the Board. These requirements are then fed through to an independent consultant who will seek out candidates matching theskillset provided and draw up a diverse shortlist of candidates for the Committee to review. The Committee will also consider senior
management appointments on behalf of the Board and consider where these appointments fit in with established Board succession
planning strategy. Any new recruitment process for the Board is based on merit and assessed against objective criteria. The Committee
considers diversity in all of its forms as a central consideration to this process. Further information around Admiral Board’s recruitment
process can be found in the appointment process for Fiona Muldoon set out on page 149.

Non-Executive Directors

Non-Executive Director succession planning is split into short, medium and longer-term horizons to ensure that all eventualities, as far as
possible, are planned for.

Horizon: Emergency cover
Description

45Admiral has completed its third yearof the Admiral Aspire Programme,
an internship aimed at offering
students from ethnically diverse
backgrounds and Women in STEM
(Science, Technology, Engineeringand Mathematics) valuable work
experience over 12 weeks.

There are emergency succession plans to ensure that there is sufficient short-term cover or a plan in place for key roles of the Board,
namely, the Chair, the SID, committee Chairs and, in turn, Committee members if a Committee Chair’s absence is longer than expected.
These plans take account of any requirements under the respective Committee’s Terms of Reference, as well as any Code requirements.

6

Admiral has partnered with a global
diversity and talent consultancy
called Green Park to undertake anin-depth ‘Culture and Inclusion’audit, focused on Equality, Diversity
and Inclusion (EDI).

Horizon: Medium term (3–6 year tenure)

Admiral’s focus on culture andinclusion was demonstrated bywinning the best UK Company
at the 2023 Best Companies
awards, being named the 6th bestsuper large workplace (1,001+
employees) in the UK by the Great
Place To Work® Institute, the global
authority on workplace culture.
Admiral also placed 3rd in the UK’s
Best Workplaces for Women award
in 2023.

Admiral remains committed to providing equal opportunities, eliminating discrimination, and encouraging diversity amongst its
employees both in the UK and overseas. A breakdown of the gender and ethnicity of Directors and senior employees at the end of thefinancial year together with details of the Group’s Equality, Diversity and Dignity at Work Policy are set out in the tables below.

GenderNumber of Board
members

Percentage of the
Board

Number of senior
positions on
the Board(CEO, CFO, SID,
and Chair)

6
5
–
–

55%
45%
–
–

2
2
–
–

48
26
–
–

65%
35%
–
–

Number of Board
members

Percentage of the
Board

Number of senior
positions on
the Board(CEO, CFO, SID,
and Chair)

Number in executive
management

Percentageof executive
management

10
–
1
–
–
–

91%
–
9%
–
–
–

4
–
–
–
–
–

72
–
2
–
–
–

97%
–
3%
–
–
–

Men
Women
Other Category
Not specified/prefer not to say

Ethnicity

White British or other White (including
minority white groups)
Mixed/Multiple Ethnic Groups
Asian/Asian British
Black/African/Caribbean/Black British
Other Ethnic group, including Arab
Not specified/prefer not to say
Admiral Group plc Annual Report and Accounts 2023

Number in executive
management

Percentageof executive
management

Description

The Committee’s medium-term succession planning involves considering the replacement of Non-Executive Directors over time torefresh the Board. The Committee considers (i) each Director’s period of tenure and aims to have staggered departure dates, (ii) the
skills and experience gaps that will be created as each Director’s tenure comes to an end, and (iii) the diversity gaps that might also
become present.

Horizon: Longer term (6–9 year tenure)
Description

The Committee’s longer-term succession planning involves the consideration of the skills, experience, and diversity that the Board
will need over the longer-term, taking into account the Group’s strategy and the main trends and factors that are likely to affect theGroup’s long-term success.
The regular review of these succession plans provides an opportunity for the Committee to discuss the insights provided by the datain order to inform the desired mix of skills, experience and diversity that the Board needs now and in the future, in the context of theGroup’s strategic objectives.

Executive Directors and senior management

The responsibility for making appointments within senior management rests with the CEO, with direction from the Committee.
Talent management continues to be a key area of focus for the Committee to ensure that there is a diverse pipeline of talent for senior
management and Executive Director succession.
During 2023, the Committee considered progress in improving talent management and succession planning within the Group.
The Committee strongly believes that an effective internal talent management process will ensure the preservation of Admiral’s uniqueculture as far as possible. During the year, the Committee received an update on the succession planning framework which is used acrossthe Group. This framework encourages more structured thinking about opportunities across departments and internationally, even incircumstances where this is a well embedded practice already within Admiral. Discussions on success profiles have also helped to visualise
how success will look in the future for the critical senior management roles, whilst also providing future talent with visibility on what
future development might look like for them.

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Admiral’s recruitment strategy
aims to increase the number ofcandidates from ethnically diverse
backgrounds and women onto
shortlists for leadership roles.
The ‘Get Discovered’ programme
focuses on developing talented
women within the Group to become
the leaders of tomorrow.

3

Succession planning

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Corporate GovernanceNomination and Governance Committee Reportcontinued

The review of succession planning undertaken during the year concluded that there was a healthy pipeline of talent across the Group,with no immediate risk in respect of leadership continuity, and the right level of talent to execute our ‘internally grown leaders’ strategy.
The Group continues to work to ensure that all areas of the business are working to achieve Admiral’s commitment to diversity at
all levels in all its forms. The Committee will continue to monitor levels of diversity across the business through 2024 and will work
to improve the ethnic diversity of entities located in geographies where such diversity should be better represented. For further
information as to what the Company is doing in relation to diversity see page pages 62 and 154.
The Committee remains satisfied that effective succession plans for Directors and senior management are in place to ensure thecontinued ability of the Group to implement strategy and compete effectively in the markets in which it operates.

Governance

The Committee also regularly reviews the Group’s governance arrangements, including any changes to the subsidiary board orcommittee structure, changes to the UK Corporate Governance Code and FCA Listing Rules, as well as oversight of the regulatory
applications made under the Senior Managers Regime.

Committee effectiveness review

The Committee discussed the output from this performance review at its meeting in December 2023 and concluded that, overall,the Committee had performed effectively during the year under review. Areas of focus for the Committee in 2024 were identified,
this included ensuring effective governance around Admiral’s subsidiary board structure and further oversight in the areas of talentmanagement and executive succession planning.

Evaluation of the effectiveness of the Board, Board committees and individual Directors
How we assess our Board’s effectiveness

Each year Admiral conducts an evaluation to assess the skills, experience, independence and knowledge of the Board to confirm
it has been able to discharge its duties and responsibilities effectively. The composition and diversity of the Board and its
committees and how well the Directors are working together is considered, as well as the individual performance of the Directors
and the Chair. In line with the provisions of the Code, Admiral undertakes an externally facilitated evaluation every three years.
In the two intervening years, internal reviews of the Board, its committees and individual Directors are carried out. This year theprocess was facilitated internally by way of questionnaire led by the Chair in conjunction with the Company Secretary. The 2022
Board evaluation was conducted by way of external evaluation by Bvalco Ltd. Progress against the Board objectives that stemmed
from the 2022 Board evaluation process are set out opposite.

2020
Internal Board
Evaluation

2021
Internal Board
Evaluation

Admiral Group plc Annual Report and Accounts 2023

2022
External Board
Evaluation

2023
Internal Board
Evaluation

In December 2022, the Board undertook an externally facilitated Board, Board Committee and individual Director evaluation of its
performance for the year ended 31 December 2022, carried out by Bvalco Ltd. Bvalco Ltd had no other connections with the Group or its
Directors. The results of the evaluation were discussed at the Board meeting in January 2023, they demonstrated a Board that appeared
to be functioning well, with some identified opportunities for improvement. The recommendations from the Board evaluation fed into
the Board’s agreed objectives for 2023 and were detailed in the 2022 Annual Report as “Principal areas of focus for the Board in 2023”.
At the June 2023 Board meeting, the Board received a six-month update on progress against these agreed areas for focus. The Board
discussed the 2022 Board evaluation recommendations at their meeting in December 2023 and agreed good progress had been madeagainst all recommendations during the year. This progress is set out in the table below. It was agreed that, where appropriate, the Board
would continue to focus on these recommendations during 2024 to ensure these were fully implemented and embedded.
Areas of focus during 2023

Progress update

To review the quality of information
presented to the Board to ensure
improved decision-making processes.

The overall quality of information presented to the Board in terms of clarity andcontext continued to improve throughout the year enabling improved Board
discussions and effective challenge around key items of business resulting in better
decision-making processes.

Review the balance of allocatedBoard agenda time between strategy
and governance/regulatory matters.

Agenda planners for the Board and Board committees were reviewed and redrafted
during the year to ensure that the balance between strategic and governance/
regulatory matters was appropriate. Terms of reference were reviewed and updated
to allow for further delegation of non-strategic matters to Board committees andsubsidiary boards where appropriate.

To ensure Non-Executive Directors haveopportunities to meet together outsideof scheduled Board time and also withexecutive management.

Non-Executive Directors have the opportunity to meet with the CEO following each
Board meeting and also have a separate Non-Executive Director only debrief session.
Board members and other senior management are invited to attend Board dinners,
this allows for informal conversations to take place outside of normal Board activities.
A Non-Executive Director session on mobility took place during the year. Opportunities
for further engagement continue to be considered.

Review the value of Board strategy
sessions and ensure the Board has early
involvement in the development ofstrategic proposals.

The October Board strategy session was well received with Directors having theopportunity for early involvement in the strategic planning process along with theoption to contribute to the development of the specific proposals. The Board provided
constructive feedback on individual presentations and topics. The format of Board
strategy sessions will continue to be reviewed and updated to ensure alignment withthe requirements of the business.

Ensure required metrics and milestones
are present to allow the Board to holdexecutives to account on strategic
implementation.

The Capital Allocation Framework alongside budgets and the five-year plan were
presented to the Board and discussed in detail during the year to enable themeasurement of the implementation of strategy against plan and ensure management
was held to account.

Consideration of the value of an
overarching approach to ESG initiatives.

A new Group Head of Sustainability was recruited during the year to ensure theco-ordination of ESG initiatives. Significant focus was given to ESG through strategy
discussions, reporting and risk management which will continue throughout 2024.

The executive team should be canvasedon key skills required when considering
Board appointments.

Executive management’s views had been canvassed in respect of the key skills required
when considering all new Group Non-Executive Director appointments and senior
management hires during the year.

Review how hybrid meeting arrangements
could be improved to allow the fullparticipation of all participants inmeetings.

Scheduled Board and Board committee meetings generally take place in person,
therefore it is rare for Board members to attend virtually. However, where this isnecessary, for example where ad hoc, late notice meetings are required, updates totechnology allow for effective attendance and participation where a member cannot
attend in person. Where Board members were unable to attend meetings, they wereable to submit questions and comments in advance to the Chair.

Contributors to Board agenda items to
be reminded of the guidelines as to form,
content and paper submission deadlines.

The Company Secretary and his team continued to drive improvements in the content
and delivery of Board papers throughout the year. Improvements in the Board andcommittee meeting preparation process were acknowledged by the Board.

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

The Committee’s 2023 annual review was conducted by way of a self-assessment, overseen by the Company Secretary, this involved
completion of a wide-ranging questionnaire. The questionnaire asked a set of questions designed to provide objective assessment of theCommittee’s performance, including its effectiveness in monitoring Board composition, consideration of Executive and Non-Executive
Director succession, overseeing talent management, senior management succession planning and developing directors’ knowledge.

Progress against 2022 Board evaluation recommendations

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Corporate GovernanceNomination and Governance Committee Reportcontinued

Audit Committee Report

Overseeing
THE IMPLEMENTATIONOF IFRS 172023 Board evaluation

Having carried out an external Board evaluation in 2022 in accordance with the Code requirement that FTSE 350 companies should
carry out an externally facilitated evaluation of the Board at least every three years, the 2023 Board evaluation process was facilitatedinternally, led by the Chair with the support of the Company Secretary. The evaluation used a questionnaire developed by the external
consultancy Independent Audit, who has no other connection with the Group or its Directors. The online questionnaire was used toevaluate the Board’s performance and dynamics throughout 2023 and was sent to all Board members as well as regular Board attendees
in November 2023, it considered:• Board dynamics and the interaction between the Chair, Non-Executive Directors and executive management to achieve theBoard’s objectives• Leadership and succession planning, including the oversight of the Group’s processes for managing, developing and retaining talent• Understanding by the Board of the prevailing culture within the Group• Quality, timeliness of delivery and presentation of Board papers and Board support• Time management and operational performance of Board and Committee meetings

Dear Shareholder,I am pleased to set out
in this report an updateon the main activities of
the Committee in 2023.

• The effectiveness of the Board’s strategic and operational oversight• Priorities for change that would enhance Board performance.
The results of the evaluation were collated by the Company Secretary and discussed at the December 2023 Board meeting. The overall
impression from the evaluation process was that the Admiral Board and its committees continued to be performing strongly andfunction effectively. The Board was open and inclusive and supported the culture of the Admiral Group with some opportunities for
improvement identified. A summary of the main recommendations resulting from the 2023 Board evaluation process are set out in thetable below. Recommendations have fed into the Board’s agreed objectives for 2024 and are detailed under the ‘Principal areas of focus
for the Board in 2024’ section on page 127.
Outcomes and areas of focus for 2024

CultureTo improve understanding around the impact of hybrid working on the Group’s culture
and the associated risks.

ESG

Focus on environmental, social and governance considerations, including ensuring theBoard has the correct information to monitor ESG performance, and the setting of ESG
targets that reflect the Group’s values.

Control framework

Review of control framework to ensure appropriate focus on compliance and changes
to the regulatory risk outlook and associated risks.

Board reporting

To ensure standard reporting templates are rolled out across all committees andsubsidiary Boards for consistency of approach.

Informal Board interactions

Consideration of further opportunities for informal Board and management interactions
to ensure management was able to benefit from Non-Executive Director insight andexperience. Group Board Non-Executive Directors to have further engagement withsubsidiary Board Non-Executive Director’s to ensure sharing of knowledge and experience.

Areas of focus in thereporting period“The Committee
dedicated a significant
amount of time tounderstanding andassessing the impact
of IFRS 17 on theGroup’s results.”
Karen Green
Chair of the Audit Committee

Eightmeetings1
in 20232023 Board Committee effectiveness reviews

Further information on each of the Board Committee’s evaluations of their own performance can be found within the respective Board
Committee reports.

Individual Director evaluation

The performance of the CFO is appraised annually by the CEO, to whom he reports. The Chair, taking into account the views of the other
Directors, reviews the performance of the CEO. The Chair also carries out the performance assessments of each of the Non-Executive
Directors. Each of the Directors were determined to have continued to effectively contribute to the work of the Board in 2023.

Members Attendance

The performance of the Chair is reviewed by the Board led by the Senior Independent Director. The latest review took place in December
2023 and was reported to the December Board. The Senior Independent Director considered and discussed with the Chair the comments
and feedback that had been received from the Directors as part of the Chair’s evaluation questionnaire and was able to confirm that theperformance of the Chair from his time of appointment in April 2023 was effective.

Karen Green (Chair)
Andy Crossley2
Michael Brierley
Fiona Muldoon

Member

1 Based on scheduled meetings.
2 Andy Crossley missed one meeting due
to a pre-existing arrangement.

Admiral Group plc Annual Report and Accounts 2023

Significant financial reporting issues

Attendance

8/8
7/8
8/8
2/2

The Committee considered the economic
backdrop facing the Group, including
the geopolitical backdrop and supply
chain challenges. It gave particularconsideration to current UK inflationarypressures and the impact on the key
accounting and actuarial judgements
made by management in relation to thevaluation of insurance contract liabilities
and credit loss provisions, as well as thepotential impact on going concern andviability assumptions. The Committee
also dedicated a significant amount oftime to understanding and assessing theimpact of the new IFRS 17 (Insurance
Contracts) accounting standard on theGroup’s financial results and ensuring
appropriate disclosure in the financial
statements. The Committee monitored
the continued effectiveness of theGroup’s key internal controls in a hybrid
working environment, in particular given
the implementation of various newimportant systems.

The setting of insurance contract
liabilities in accordance with the Group’s
agreed reserving methodology is a key
accounting judgement in the Group’s
financial statements (as set out innote 2 to the financial statements),
and the Committee continues toplace considerable focus on this area.
The Committee challenged the key
reserving assumptions and judgements,
movements, emerging trends andanalysis of uncertainties underlying
the analysis of outstanding claims for
the UK Car Insurance business proposedby management alongside that of theGroup’s external independent actuarial
advisers. In 2023, this included theimpact of inflation on the claims reserves
as set out in more detail below, futurescenarios for the Ogden discount rateand ensuring the accuracy of claims data
following the transition to the new claims
management system. It also focused on
management’s selection of a confidence
level for the IFRS 17 risk adjustment held
within the liability for incurred claims.
The Committee also received reports on
the claims reserving processes performed
for insurance businesses other than UK
Car and recommended to the Board theaggregate claims reserves for inclusionin the Group’s financial statements.
In addition to claims reserving, theCommittee spent time reviewing
management’s support for a numberof other significant financial reporting
matters including the expected credit
loss provision held in relation to the Loans
receivable balance held by the Group’s
consumer lending business Admiral
Money, other potential provisions andcontingent liabilities, and the resultsof impairment testing performed inrelation to the Group Parent Company’s
investments in Group subsidiaries.

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance• Risk management and the effectiveness of the Board in considering the Group’s risk management framework and internal controls

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Corporate Governance

Audit Committee Reportcontinued

IFRS 17 (Insurance Contracts)

Corporate governance andreporting changes

The Committee was kept informedof the Group’s engagement with the
Department for Business, Energy &Industrial Strategy (BEIS) consultation on‘Restoring trust in audit and corporate
governance: proposals on reforms’
during 2023 including the proposedchanges to the UK Corporate Governance
Code and will continue to monitor
developments in this area. The Committee
also oversaw, in conjunction with theGroup Risk Committee, the Group’s
progress in further aligning reportingwith the Taskforce on Climate-related
Financial Disclosures (TCFD) publishedrecommendations. The Committee
received a report from the Group’s
external auditor on TCFD and otherclimate-related reporting and trends inthe market.

Internal controls

The Committee has continued to review
the effectiveness of the internal control
systems across the Group, in particulargiven the implementation of various
system changes, including areas ofpotential weakness highlighted throughaudit and other assurance reports.
I hope you find the above summary, andthe more detailed report, both usefuland informative.
Karen Green
Chair of the Audit Committee
6 March 2024

How the Committee operates
Membership

Membership of the Committee at theend of the year was: Karen Green (Chair),Andy Crossley, Michael Brierley andFiona Muldoon.
Two of the Committee’s members are
Fellows of the Institute of Chartered
Accountants in England and Wales,
and one is a Fellow of the Instituteof Chartered Accountants in Ireland.
Given the insurance and financial services
experience of the members of theCommittee, the Board considers that they
have a broad range of skills, experienceand knowledge of the insurance andfinancial services sector, which represents
the principal market in which the Group
operates, and also the area of consumer
lending in which the Group has a growing
business, such that they are able toeffectively analyse, challenge and debate
the issues that fall within the Committee’s
remit. The Board is satisfied that theCommittee as a whole has competence
relevant to the sectors in which the Group
operates and further considers that a
number of its members have recent andrelevant financial experience.

Attendance at meetings

The Company Secretary acts as Secretary
to the Committee. The Group Chief
Financial Officer, Group Chief Risk Officer,
Director of Group Finance & Chief
Actuary and Group Head of Internal Audit
routinely attend all Committee meetings(other than certain private sessions).
Other individuals, such as the Chair of theBoard, Chief Executive Officer, Head ofGroup Compliance, and representativesof different parts of the Group, may be
invited to attend all or part of any meetingas and when appropriate. The Chairs of
the Audit Committees of the Group’s
European insurer and US subsidiary also
attend at least one meeting each year topresent on their activities.
The external auditor was invited toattend all of the Committee’s meetings
held in 2023, except in respect of those
agenda items when its own performance,
reappointment and fees were reviewed
and discussed, or where any other conflict
was identified.

Meetings held

The Committee meets at least six times
per year and has an agenda planner linked
to events in the Company’s financial
calendar and other significant issues that

Admiral Group plc Annual Report and Accounts 2023

arise throughout the year, which fall for
consideration by the Committee under its
remit. The Chair of the Audit Committee
agrees the agenda for each meeting.

Role and responsibilitiesof the Committee

There were eight scheduled Committee
meetings held during the year (withtwo of these meetings focused onreserving matters in conjunction withthe half year and full year reporting andanother on the approval of the Group’s
Solvency and Financial Condition Report).
Two additional meetings were held during
the year, focused on various mattersrelevant to the Committee’s remit.

Financial reporting

Details of member attendance at theCommittee meetings held during the year
are outlined on page 162.

How the Committee
keeps up to date

The Committee is kept up to date withchanges to Accounting Standards andrelevant developments in financial
reporting, Company law, and thevarious regulatory frameworks throughpresentations from the Group’s external
auditor, Group Chief Financial Officer,
Group Chief Actuary and Group Company
Secretary. In addition, all members
attend relevant seminars, briefings andconferences provided by external bodies.
The Committee also receives tailored
reports from management and theGroup’s external auditors from time totime. Topics included the Task Force on
TCFD and other climate-related reporting
proposed changes to the UK Corporate
Governance Code in 2023.
The Terms of Reference of the audit
Committee include all the mattersrequired under the Code and are reviewed
annually by the Committee.
The Chair of the Audit Committee meetswith the Group Head of Internal Audit,
Group Chief Financial Officer, Directorof Group Finance & Chief Actuary, Headof Reserving, the external auditors and
UK Head of People Services (who has
overall responsibility for coordinating theGroup’s whistleblowing arrangements) ona regular basis. The Committee also held(i) two private meetings with the Group
Head of Internal Audit, (ii) one private
meeting with the Chief Financial Officer,and (iii) two private meetings with theexternal auditor during the year.

The Audit Committee’s primary
responsibilities are to:• Monitor the integrity of the Group’s
financial statements and any
formal announcement relating to
the Group’s financial performance,
including the Group’s Solvency and
Financial Condition Report, reviewing
any significant financial reporting
judgements which they contain,
including that of the Group’s Going
concern status• Provide advice (where requested by the
Board) on whether the Annual Reportand Accounts, taken as a whole, is fair,balanced and understandable, andprovides the information necessary
for shareholders to assess the Group’s
position and performance, businessmodel and strategy• Oversee the Group Risk Committee’s
work on climate-related
financial disclosures.

Internal controls and internal audit• Keep under review the effectivenessof the Company’s internal financial
controls, internal control and risk
management systems• Monitor and assess the role andeffectiveness of the Group’s internal
audit functions in the context of theGroup’s overall internal control and risk
management systems.

External audit• Make recommendations to the Board,
to be put to shareholders for theirapproval at the Annual General Meeting(AGM), in relation to the appointment,
reappointment and removal of theGroup’s external auditor• Approve the remuneration andterms of engagement of the Group’s
external auditor• Review and monitor the Group external
auditor’s independence and objectivity,
and the effectiveness of the audit
process, taking into consideration
relevant UK professional andregulatory requirements• Review the policy on the engagementof the Group external auditor to provide
non-audit services, ensuring that there
is prior approval of non-audit services,considering the impact this may haveon independence and taking into
account the relevant ethical guidancein this regard.

Other• Oversee the Group’s proceduresfor handling allegations
from whistleblowers• Report to the Board on how it hasdischarged its responsibilities.

Summary of key activities
during 2023

During the year the Committee reviewed
the following:

Financial reporting• The Group Annual Report and interim
results announcement, including key
accounting judgements and disclosures• Parent Company financial statements(both annual and interim), and related
key accounting judgements anddisclosures, including impairment
testing of the Parent Company’s
investments in subsidiaries• Updates from the Group’s consumer
lending business on the IFRS 9(Financial Instruments) expected credit
loss provision• Reports assessing the accounting anddisclosure impacts of risk events arisingacross the Group• Information supporting the accounting
treatment of a historic Italian
tax matter• The financial statement disclosureson the impact of the new standard
required by IAS 8 (Accounting Policies,
Changes in Accounting Estimatesand Errors) (further detail on theCommittee’s work in relation to IFRS 17
is set out below)• The Group’s disclosures relating
to climate risk, including those
disclosures required by the TCFD
and CFD, and received a report fromthe external auditor on regulatory
developments in climate-related
disclosure requirements.

Internal audit and internal controls• Reports from the Chair of the Group
Risk Committee on the principal
risks faced by the Group and thework undertaken by the Group
Risk Committee to ensure risk isappropriately managed• Reports from the Chair of the Admiral
Insurance Company Limited (AICL) and
Admiral Insurance (Gibraltar) Limited(AIGL) Audit Committees on thefinancial statements for AICL and AIGLat HY 2023, including key accounting
judgements and disclosures• The Group Solvency and Financial
Condition Report, including disclosures
specific to AICL and AIGL• Presentations from the Group’s
actuarial reserving team andindependent external actuarial
experts to assist the Committee inconcluding on the adequacy of theGroup’s IFRS reserves and Solvency IItechnical provisions• Information supporting the Group’s
Going concern assumption• Information prepared by management
demonstrating risk transfer within
reinsurance contracts in linewith the requirements of IFRS 17(Insurance Contracts)• Reports from the internal audit
functions within the Group on theeffectiveness of the Group’s risk
management and internal control
procedures and progress against the2023 Audit Plan, approval of changes
requested to the 2023 Plan and the
Audit Plan for 2024 including resourcing
levels, details of key audit findings,
and actions taken by management tomanage and reduce the impact of therisks identified• Performance and effectiveness of theInternal Audit function• A summary of the key findings from allreports from Internal Audit, including
management responses to theconclusions set out in the reports• Reports on the controls in place,including significant breaches orincidents, across the Group and its
overseas subsidiaries• European insurance internal audit
updates, including an update from the
Chair of the European Audit Committee(of the Group’s subsidiary Admiral
Europe Compañía de Seguros, S.A.,(AECS) which underwrites the Group’s
European insurance businesses) on theactivities of that Committee

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

The Group successfully implemented
the new IFRS 17 (Insurance Contracts)
accounting standard ahead of the
1 January 2023 implementation date.
Given the fundamental changes to
the Group’s financial statements, theCommittee dedicated a significant
amount of time to understanding
and assessing the impact of thestandard on the Group’s financial
results. The Committee reviewed
and challenged key judgements andaccounting considerations, as well as
the financial statement disclosures on
the impact of the new standard requiredby IAS 8 (Accounting Policies, Changes
in Accounting Estimates and Errors)
and related accounting disclosures.

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Corporate Governance

Audit Committee Reportcontinued• US insurance internal audit updates,
including an update from the Chair of
the Audit Committee of the Group’s US
subsidiary Elephant, on the activities ofthat Committee• Reports on the output of theassessments of adherence to andembedding of the Group MinimumControl Standards’ framework andplanned developments in relation tothat framework

External audit• Reports from the external auditor
highlighting system and control
recommendations, key accounting andaudit issues and conclusions on the halfyear and full year reporting• Confirmation of the external
auditor’s independence• Reports from Deloitte, the external
auditor, on their proposed audit scopeand plan• Proposed external audit fee and thedrivers of the year-on-year increase.

Other• Updates on tax matters supporting theGroup Tax Strategy which is available atwww.admiralgroup.co.uk• Progress updates on the BEIS
consultation relating to audit andcorporate governance reforms,
including updates received from theexternal auditor• The effectiveness of the Group’s
Whistleblowing Policy, which sets
out the arrangements for raisingand handling allegations from
whistleblowers, and receiving regular
reports on instances of whistleblowingthat have been raised• The Committee’s terms of reference• The Committee’s effectiveness.

After discussion with both management
and the external auditor, the Audit
Committee determined that the key risksof misstatement of the Group’s financial
statements, as in prior years, related
to the valuation of insurance contract
liabilities under IFRS 17. This key risk of
misstatement can be separated into
the best estimate of future cashflows
required to fulfil insurance contracts,
and the methodology and measurementof the risk adjustment for non-financial
risk. In addition, given the inflationary
environment referenced above, a specificsignificant risk was agreed in relation to
inflation assumptions applied to UK Car
bodily injury claims reserves given thelong-tail nature of the claims and thecurrent higher inflationary environment.
The implementation of IFRS 17 in
the period also gives rise to a key
audit matter given that the standard
introduces a number of new key
accounting judgements.
Furthermore, the IFRS 9 provision for
expected credit losses in relation to
the Group’s lending business, Admiral
Money, and the impairment testing
exercise performed in relation to theGroup Parent Company investments
in Group subsidiaries were significant
financial reporting issues considered by
the Committee.
These significant issues were discussedwith management during the year andwith the external auditor at the time
the Committee reviewed and agreed
the external auditor’s Group audit plan,
when the external auditor reviewed
the interim financial statements inAugust 2023 and also at the conclusionof the external audit of these full year
financial statements.

Valuation of insurance
contract liabilities

The Committee continued to spend
significant time reviewing and challenging
the approach, methodology and key
assumptions adopted by management
in setting reserves for insurance liabilities
in the financial statements to ensure
consistency with the Group’s statedaccounting policies, which have been
updated following the implementationof IFRS 17.

Admiral Group plc Annual Report and Accounts 2023

In this context, the Committee challenged
management on the importantjudgements and assumptions used inestimating the best estimate of future
claims cashflows, including specificfocus on inflation assumptions applied inrelation to UK Car bodily injury claims, andthe measurement of the risk adjustment
for non-financial risk. Further informationis set out in more detail in the criticalaccounting estimates section of note 2 tothe financial statements.
As in previous periods, the Committee
held meetings specifically focused onreserving, receiving presentations on UK
Car Insurance reserves from the internal
actuarial reserving and finance teams, aswell as the independent external actuarial
advisors. At these meetings management
provided further information on the
projected best estimate claims reserves,
as well as payment patterns used toestimate the resulting future claims
cashflows. Management also presented
to the Committee on the measurementof the risk adjustment for non-financial
risk including the methods used toestimate the reserve risk probability
distribution and the selection of theconfidence level in line with the Group’s
stated 85th – 95th percentile accounting
policy. The Committee also received
presentations from the external actuarial
firm that performed independentvalidation of the best estimate claims
reserves and the external Big Four
firm that performed independentvalidation of the reserve risk distribution
and the appropriateness of the risk
adjustment at the target confidence
level. Management were challenged by
the Committee on the key assumptions
and judgements made in these processes
and justification for the movement
in confidence level since the start of
the year.
The Committee reviewed and discussed
the effects of inflationary pressures onclaims reserves in relation to both damage
and bodily injury claims. In addition,
the move to a new claims system wasconsidered as well as scenarios in relation
to the future Ogden rate and updates
regarding the FCA’s multi-firm review ofmotor total loss claims. The Committee
also reviewed management’s assessmentof the level of uncertainty inherent in
the claims reserves, and changes to thatassessment from previous periods as wellas the results of management’s reserve
stress and scenario testing.

The Committee also received updates
from the Group’s external auditor,
Deloitte, on its work in relation to thissignificant audit risk. This included
reviewing management’s actuarial data
quality assessments, best estimate
reserve projections and the risk
adjustment for non-financial risk, as wellas assessing management’s qualitativeand quantitative support for grossinsurance contract liabilities includedin the financial statements. Based on
this work, the auditor was satisfied thatthe financial statement reserves remain
appropriate and consistent with theGroup’s accounting policy.
The Committee also received reports on
the reserving processes for the Group’s
insurance businesses other than UK Car
Insurance. Management presented an
overview of the claims reserving processes
and resulting recommendations for
the UK Household and UK Van lines ofbusiness as well as European and US
motor businesses, including the resultsof actuarial best estimate reserving
processes and justification for the risk
adjustment for non-financial risk foreach business.
Whilst acknowledging that the settingof reserves for claims which will settle in
the future is a complex and judgemental
area and having had the opportunity
to challenge management’s proposal
in respect of both best estimate
reserves and risk adjustment held above
best estimate to cover unforeseen
deteriorations in the best estimate,
the Committee is comfortable that an
appropriate process has been followed,
and that there has been sufficient
scrutiny, challenge and debate to giveconfidence that the reserving levels set
incorporate a risk adjustment for theuncertainty in the best estimate which isconsistent with the Group’s stated IFRS 17
accounting policies.

Inflation assumptions applied
within valuation of UK motor
bodily injury claims reserves

The Committee placed focus during theyear on reviewing and challenging theapproach, data inputs, methodology
and key assumptions adopted bymanagement in determining anallowance for excess inflation on
bodily injury claims, included in claims
reserves. Whilst acknowledging that
ultimate outcome is highly uncertain,
the Committee had the opportunity to• Review and approval of the Group’s
restated 2022 interim and full year
financial statements under IFRS 17,
including the work of the external
auditor Deloitte in respect of
the restatement

challenge management’s judgements
in respect of selected projections ofinflation, in particular future wage
inflation as well as the elements ofbodily injury claims that will be subject
to this excess inflation. The Committee
concluded that the data and underlying
methodology used in calculating excess
inflation was reasonable, and in line withmarket practice and that the inflation
assumptions adopted were appropriate.

• Review and approval of all IFRS 17
related policies including accounting
policies and those related to accounting
judgements and materiality• Review and approval of the Group’s
revised methodology for estimating
co-insurance profit commission, whichis recognised under the accounting
standard for revenue, IFRS 15.
Whilst not directly impacted by IFRS 17,
the loss ratio inputs to the calculation
were amended to ensure consistency
with the new standard

Other financial reporting issues
IFRS 17 implementation

IFRS 17 is the new insurance accounting
standard that came into effect from
1 January 2023. Given the fundamental
changes to the Group’s financial
statements and systems and processes
that have arisen because of the newstandard, the Committee dedicateda significant amount of time during
previous financial reporting periods
to understanding and assessing theimpact of the standard on the Group’s
financial reporting process and theprogress of implementation of chosen
software solutions.

• Reports setting out management’s
assessment of key technical accounting
matters as part of the review of 2023
interim and final financial statements,
including the status of the work of theexternal auditor Deloitte in respect of
those technical issues

In 2023, the Group presented interim
and full year financial statements under
the new standard, including a transition
balance sheet as at 1 January 2022, a fullrestatement of 2022 primary financial
statements and related notes to thefinancial statements as well as revised
accounting policies and other disclosures.
Throughout the year the Committee
continued to dedicate significant time tothe subject and received regular updates
on implementation activities, as well
as reviewing and approving accounting
policies, methodologies and judgements
relating to the new standard. Activities of
the Committee included:• Regular updates as to the programme
status, ahead of the first reporting
under IFRS 17 in the Group’s interim
financial statements including
progress against plans for individual
workstreams and other issues such as
resourcing levels• Review and approval of the Group’stransition balance sheet as at 1 January2022, including the work of theexternal auditor Deloitte in respect of
the transition• Updates from the Group’s external
auditor on their audit of the Group’s
IFRS 17 work and IFRS 17 developmentsin the market generally.
The critical accounting judgements
reviewed by the Committee in relation
to IFRS 17 included management’s
justification for the use of the simplified‘Premium Allocation Approach’, thelowest unit of account under IFRS 17
and the classification and presentationof reinsurance contracts under the
standard. The Committee, having
reviewed management’s supporting
papers and hearing from external auditor
Deloitte on the matters, concluded
that the judgements were reasonable
and appropriate.
The Committee was pleased to note thepositive findings of the FRC’s thematic
review of companies’ disclosures relating
to IFRS 17 ‘Insurance Contracts’ in theinterim accounts, which highlighted theGroup’s disclosures as an example ofbetter practice.

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance• Reports on the various improvements
underway to the Group’s control
environment including regular updates
on work to strengthen the Group’s IT
access control management and plansto further enhance the Group’s Fraud
and Financial Crime Framework.

Significant issues consideredby the Committee

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Corporate Governance

Audit Committee Reportcontinued

IFRS 9 provision for
expected credit losses

During the year, the Committee hascontinued to review and challenge the
IFRS 9 provision for expected credit loss
arising through the Group’s loans business,
Admiral Money. Areas of focus included
the potential impact of UK inflationarypressures and the increase in UK market
interest rates on default experience,
the assessment of circumstancesindicating a significant increase in credit
risk and underlying forward-looking
economic assumptions.

On the basis of the work performed andhaving had the opportunity to challengemanagement’s proposal in respect ofthe provision for expected credit losses,
the Committee was comfortable that an
appropriate process has been followed,
noting the continued enhancements
made to the provisioning methodology
reflecting the increasing maturity ofthe business, and that there has been
sufficient scrutiny and challenge to giveconfidence that the provision has been
set in line with the IFRS 9 requirements
and included appropriate allowance for
uncertainties arising from the current
macro-economic environment.

Impairment testing for the Group’s
investment in subsidiaries

During the year, the Committee consideredmanagement’s work in relation to theGroup Parent’s investment in subsidiary
entities. Under the relevant accounting
standard, IAS 36 ‘Impairment of Assets’management identified entities withindicators of impairment and performed
detailed impairment testing in relation to
those investments, calculating recoverable
amounts primarily through the use of
discounted cashflow calculations.
Management proposed the recognitionof non-cash impairment losses inrespect of investments in Elephant, theGroup’s US insurer, as well as subsidiary
entities supporting the Group’s newer
growth businesses in the UK and in
Italy. The impairment charge relating
to Elephant followed a similar approachto previous periods and was the morematerial of the impairment losses,
reflecting the reduction in net assetsof the business (used as a proxy for fairvalue less costs to sell) arising from losses
incurred during 2023.

Misstatements

No material unadjusted audit differenceswere reported by the external auditor.
The Committee confirms that it issatisfied that the auditor has fulfilled
its responsibilities with diligence andappropriate professional scepticism.
After reviewing the presentations
and reports from management andconsulting, where necessary, with theauditor, the Committee is satisfied thatthe financial statements appropriately
address the critical judgements and key
sources of estimation uncertainty (bothin respect to the amounts reported andthe disclosures). The Committee is alsosatisfied that the significant assumptions
used for determining the value of assets
and liabilities have been appropriately
scrutinised, challenged and are
sufficiently robust.

External audit
External auditor appointment

The Group last completed an audit
tender during 2020/21 when, following
the completion of a transparent andindependent audit tender process,Deloitte LLP were recommended toshareholders as the Group’s auditor at
the Annual General Meeting (AGM) in
April 2021 and a resolution was passed
to that effect. Deloitte LLP’s overall tenure
up to and including the 2023 financial
year is eight years. The Committee
confirms it is in compliance with theprovisions of the Statutory Audit
Services for Large Companies Market
Investigation Order 2014.
On the recommendation of theCommittee, the Board approved that
Deloitte should be recommended
to shareholders for reappointment
as the Group’s auditors at the 2024
AGM. A resolution to that effect will be
proposed at the AGM.

Admiral Group plc Annual Report and Accounts 2023

Audit fee

During 2023, the Committee reviewed
and approved the audit fee proposal
for the 2023 year end Group audit.
The agreed fee for the audit and otherassurance related services for 2023 is£3.48 million (2022: £2.76 million), with
the increase reflecting inflation in linewith market increases, the impact onongoing audit work required relating
to IFRS 17 (Insurance Contracts) andthe impact on audit work requiredin relation to new financial systems.
The Committee approved the fee increase
having discussed with the auditor therationale for the proposal.
In addition to the agreed fee for 2023,
the Group incurred a one-off audit fee
during 2023 of £0.83 million relating
to the transition to IFRS 17 and the representation of the Group’s 2022 financial
statements under the new standard.

Safeguarding the external auditor’s
independence and objectivity

The Committee reviewed and approved
its policy on non-audit services in February
2023 and was satisfied that it continued
to align with current regulatory guidance.
Under the policy, the Group’s statutory
auditor will only be engaged to carryout non-audit services in prescribedcircumstances or where there is aregulatory request, and where agreed
by the Committee. This is to ensure thatthe independence and objectivity ofthe external auditor is safeguarded.
The Committee will continue to monitor
regulatory developments in this area toensure that its policy on non-audit fees
adheres to current guidance.

Effectiveness of the external
audit process

The Committee undertakes an annual
review to assess the independence andobjectivity of the external auditor and theeffectiveness of the audit process, taking
into consideration relevant professionaland regulatory requirements, the progressachieved against the agreed audit plan,and the competence with which theauditor handled the key accounting andaudit judgements.
As part of its review, the Committee
considered, among other things,
the following: submissions by theexternal auditor relating to theircontinued independence, the output
of a questionnaire completed by all
Committee members and relevant
members of the Group’s Finance andInternal Audit functions and the findingsof the FRC Audit Quality Reviews (AQR)
published in July 2023. Following thisreview, the Committee concluded thatthe external auditor, Deloitte LLP,
remained independent and that theexternal audit process remained effective.

Internal audit

The Group Head of Internal Audit
attended all Audit Committee meetingsand provided a range of presentations
and papers to the Committee, throughwhich the Committee monitored theeffectiveness of the Group’s materialinternal controls, including financial,
operational and compliance controls onbehalf of the Board.
The Group Head of Internal Audit also
carries out an annual review of theeffectiveness of the Group’s systems ofinternal control and risk management
and reports on the outcome of this review
to the Committee. In February 2024, theGroup Head of Internal Audit reported
an adequate level of assurance in relation
to the Group’s arrangements for risk
management, control infrastructure,
governance and fraud prevention controls.
This was supported by a summary of theassurance activity performed by the Line
2 Risk and Compliance functions and anannual assessment of internal controls
by Line 2.

The Committee reviewed and approved
the Group Internal Audit Policy, which
includes the Group Internal Audit Terms ofReference setting out the role, objectives,
reporting lines and accountability,
authority, independence, and objectivityof the Internal Audit function.
The Committee also monitored anddiscussed the evolution and developmentof the Internal Audit function, andconsidered the role, competence andeffectiveness of each internal audit
function across the Group. The Group
Head of Internal Audit continues to have
responsibility to ensure the quality of theinternal audit activities in the Group’s
overseas locations. The Chairs of theEuropean and US Audit Committees
each updated the Committee on theirrespective activities during the year.
Members of the Committee also
receive all issued internal audit reports,
enabling them to challenge the reports’content, including the rating, and related
recommendations. The Committee
approves the internal audit plan at thestart of each calendar year and any
inflight amendments to that plan, whilst
the effectiveness and workload of theinternal audit functions and the adequacyof available resources are monitored
throughout the year.
The European operations in Spain, Italy
and France have a dedicated internal
audit team and the US business also has
its own locally based team. All reports
are evaluated by the Group Head ofInternal Audit to ensure the quality andeffectiveness of the reported findings,
and a summary of the key findings ofeach completed audit is provided to theCommittee as part of the Group Headof Internal Audit’s regular Committee
update. In addition, the UK internal audit
function carries out high-level governancereviews of all foreign operations, assessing
the internal control frameworks andsystem of risk management.

The Committee discussed the results of
the review at its meeting in December
2023 and concluded that the Committee
continued to operate effectively andwithin its remit. There were a number ofareas identified for further improvement,such as ensuring that issues andrisks were prominently presented inCommittee papers.
Priorities for the Committee for 2024
include ensuring that the Committee
is appropriately briefed on the UK
Corporate Governance Code change andclimate-related reporting, requesting therelevant business managers to attend
Committee meetings to answer questions
on significant internal audit reports andreinforcing the use of more effective
summaries to highlight the issues andrisks that the Committee needs tofocus on.

Whistleblowing

On behalf of the Board, the Committee
considered and reviewed theGroup’s whistleblowing policy andreceived quarterly updates on theuse and effectiveness of the policy,
whistleblowing metrics and theinstances of whistleblowing that had
been raised across the Group during theyear. During the year, the Committee
concluded that the Group’s current
whistleblowing arrangements were an
appropriate means by which employees
could raise concerns in confidence
and anonymously.

Committee effectiveness review

As part of the Committee’s annual review
of its own performance and processes,
each Committee member completed acomprehensive questionnaire designed
to provide objective assessment of theCommittee’s performance, including its
effectiveness in monitoring internal andexternal audit.

Admiral Group plc Annual Report and Accounts 2023

Corporate GovernanceFurther information on the provision and
key assumptions are found in note 7 tothe financial statements.

The Committee challenged
management’s proposal for recognitionof impairment losses as well as
conclusions for other subsidiary entities
where indicators for impairment were
present but no impairment was deemednecessary as a result of recoverable
amounts being in excess of the carrying
value of investments.

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Corporate GovernanceGroup Risk Committee ReportManaging
RISK EFFECTIVELY
Dear Shareholder,“The Group Board is of
the view that the Group’s
risk management andinternal control systems
have operated effectively
during the year.”
Andy Crossley
Chair of the Group Risk Committee

The Committee has received updates
on each of the Group businesses aspart of the Group’s Enterprise Risk
Management Framework (ERMF).
Developments considered by theCommittee throughout the year included:• Admiral’s risk strategy and approach
to risk management including regularreviews of the Group’s risk strategy andrisk appetite, monitoring a suite of
Key Risk Indicators, and oversight of the
management of material risk events

The ongoing focus on monitoring andreporting customer outcome risks
continues with the Committee reviewing
the Group Conduct Risk Framework(aligned with the ERMF). The Committee
also received updates on the Group
Minimum Standards which continue
to be enhanced and embedded.

• Ongoing risk assessment andmonitoring of the impact of inflation,market volatility, and economic outlook
on capital and liquidity risks across theAdmiral GroupThe Committee has spent time on
key risks that affect the Group as well
as reviewing the management andoutcomes of notable risk events reported
during the year.

• The implementation of Consumer Duty
• Oversight of work required to ensure
Admiral is prepared to meet thechallenges of climate change

Eightmeetings
in 2023• Oversight of material projects andchange programmesCommittee members
Members

Andy Crossley (Chair)
JP Rangaswami
Cristina Nestares1
Karen Green
Jean Park2

Attendance

8/8
8/8
7/8
8/8
1/1

• Oversight of Admiral’s technology andInformation Security work, including
the future technology strategy• Discussions on people risk andrisk culture• The continuing development of theAdmiral internal model.

1 Cristina Nestares missed one meeting due to apreexisting arrangement.
2 Jean Park retired from the Board and all of her Committee
memberships on 20 January 2023.

The Committee held eight scheduled
meetings, with an additional meeting also
taking place.
Admiral Group plc Annual Report and Accounts 2023

Capital management: The Committee
has reviewed the Group’s proposed
dividend level, capital plan and capital
buffer in line with the Capital Policy.
The review considered the expected
impact on the Group’s solvency ratio
due to a range of different sensitivities,
and stress and scenario tests. The Group
continues to make use of Undertaking
Specific Parameters (USPs) in Admiral
Insurance (Gibraltar) Limited (AIGL) andthe Volatility Adjustment (VA) in AIGL and
its UK insurance entity, Admiral Insurance
Company Limited (AICL). The Committee
discussed the capital add-on, and received
updates on the process and outcome
during the year.

Consumer Duty: The Committee received
regular updates on the delivery ofConsumer Duty implementation during2023. Since the Duty came into effect inJuly 2023, the Committee has continued
to receive regular updates, focusing on
how the Duty is embedding and on thedelivery of good customer outcomes.
Climate change: The Committee hasreceived updates on the work being
undertaken relating to climate change toensure that Admiral is meeting current
requirements and is appropriately
preparing to meet future challenges.
These updates include commentaryon risk management, ongoing climaterelated strategic developments, andthe changes that may be necessary forcompliance with emerging regulatory
requirements. This is further describedin the Viability Statement (page 109),
and additional information on Admiral’s
approach to climate change can be foundin the Task Force on Climate-related
Financial Disclosures (page 73).
Geopolitical instability: The Committee
has been apprised of geopoliticaldevelopments over the course of theyear. In particular, the Committee has
considered the effects of the 2022 Russian
invasion of Ukraine, which continues
to drive cost of living pressures andput supply chains under strain, and theadded uncertainty from the more recent
Israel-Hamas conflict. The Committee
has also considered potential exposure to
disruption in the global electric vehicle(EV) manufacturing industry, which isdominated by China, if a geopoliticalconflict were to develop between China
and Taiwan or the United States.
Material projects and change
programmes: As a result of theCommittee’s oversight of individualGroup entities, combined with theoversight afforded by the Group’s project
governance framework, the Committee
has considered and challenged updates

relating to material projects and change
programmes within the Group, including
those designed to accelerate existingproducts. The Guidewire migrations in
the Group have been the topic of focusedsessions at GRC, in particular to ensure
consideration of the published lessons
learnt from an incident at a peer.
Technology and information security:
The level of oversight of technology
risks including operational resilience hascontinued to increase over the year withregular reporting and discussion of therisk position at GRC. The Committee
has received regular updates on
relevant topics including the futuretechnology strategy.

Duties and responsibilitiesof the Group Risk Committee

The duties and responsibilities of theCommittee are set out in the Committee’s
Terms of Reference, and were reviewed
and approved by the Admiral Group Board.
The main responsibilities of theCommittee are:• Overseeing the development,
implementation and maintenance of
the Group’s overall Risk Management
Framework and ensuring that it isin line with emerging regulatory,
corporate governance and bestpractice guidelines

People risk and risk culture: The
Committee has considered the potential
impact on people and culture whenreviewing strategic decisions. In addition,
a number of the Key Risk Indicators andsupporting commentary are focused on
people risk.
Progress of Admiral internal model(AIM): The Group Risk Committee and
Board have maintained their focus in
relation to the Admiral internal model
during 2023, and have continued toreceive regular reporting to help drive
key decisions in relation to the model.
The UK Car model has been updated in
2023 to address limitations identified
during prior independent validation
reviews. This will help to ensure that themodel is well placed to support a planned
regulatory pre-application. The new UK
Car model will be subject to anothercycle of independent validation to ensurethat the updates have been successfully
implemented prior to the pre-application
regulatory submission. In parallel, theproject is continuing a programme toexpand the model to produce Solvency
Capital Requirements for Admiral Group,
AIGL and AICL and to expand its scope
to include UK Household, UK Van,
Travel and Pet products. This expanded
scope partial internal model will be thebasis of a regulatory full application.
Regular communications with the PRA
and GFSC are being held both at senior
management and project levels to aligndelivery for the pre-application and fullapplication regulatory reviews.

• Considering and recommending to
the Board for approval the Group’s risk
appetite, as well as ongoing monitoring
and review of the Group’s risk exposures• Monitoring the Group’s prudential
risk exposure, which includes ensuringthat the Group’s capital resources andliquidity profile are appropriate toits needs, whilst meeting minimum
regulatory requirements, including
overseeing and challenging the designand execution of the Group’s stress andscenario testing• Reviewing the Group’s capacity to pay
interim and final dividends• Reviewing the annual Group ORSA
Report and any required interim ORSA
Reports, with recommendations being
provided to the Board for approval• Reviewing and approving the Solvency
II Actuarial Function Reports on
Risk Management, Reinsurance andUnderwriting each year
• Reviewing the Group’s progress towards
approval of the Group’s internal
capital model• Monitoring the adequacy andeffectiveness of the Group’s Risk andCompliance functions• Approving the annual plans andresourcing for the Group Risk andCompliance functions which include
reviewing regulatory developments andany planned meetings between the
PRA and FCA and the business• Reviewing any significant risk issues
that have a material impact on thecustomers of the business and/or
concern the regulator

Andy Crossley
Chair of the Group Risk Committee
6 March 2024
Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

As Chair of the Group Risk
Committee, I am pleased
to present the Committee’sreport for 2023.

Risk strategy and approach to risk
management: During the year theCommittee has discussed and considered
proposals to enhance the risk strategy
and the approach to risk management
in order to continue supporting theeffective and efficient delivery of theGroup’s overall strategy. The Committee
continues to monitor a suite of Key Risk
Indicators with associated triggers andlimits against the Group risk appetite.

Economic uncertainty: The Committee
has reviewed and continues to monitor
the Group’s solvency and liquidity
positions in response to market volatility
and wider economic uncertainty,
considering factors such as changes in
inflation, the wider impact of supply chain
disruption, banking events, high interest
rates, and the pressures on individual
household finances.

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171

Corporate GovernanceGroup Risk Committee Reportcontinued• Ensuring the adequacy andeffectiveness of the Group’s systems
and controls for the prevention offinancial crime, and data protection
systems and controls• Reviewing the Group’s compliance with
Solvency II• Annually reviewing and approving theGroup Minimum Standards Framework
and required standards• Reviewing compliance with Group
policies, including the Group’s
Reinsurance Policy, Group ORSA Policy,
and Group Underwriting Policy• Reviewing reports from the Group
Risk, Group Compliance, Group Data
Protection and Privacy, and GroupInternal Audit functions• Formally reporting to the Group
Audit Committee to facilitate theirrecommendation of the Annual Reportand Accounts to the Board on thefollowing key areas and disclosures;principal risks and uncertainties, risk
management and internal control,
viability, risks associated with materialtransactions and/or strategic proposals,
and the Taskforce on Climate-related
Financial Disclosures.

In addition, to ensure that the Committee
is operating effectively, it conducts aperiodic review of its performance (lastreviewed in November 2023) and at
least annually reviews its constitution
and terms of reference (last reviewed
in December 2023). Any changes it
considers necessary are recommended
to the Group Board for approval. As partof the Committee’s annual review of
its own performance and processes,
all Committee members and regularattendees were invited to complete an
online evaluation designed to provide
objective assessment of the Committee’s
performance, including its effectiveness.
The Committee discussed the resultsof the review at its meeting in January2024 and concluded that, overall, theCommittee remained effective withfeedback from the Committee being
largely positive. Areas of focus andimprovement for the Committee in 2024
included greater focus on change risk
and further examination of the business’s
ability to manage key/strategic risks.

Summary of key Group Risk
Committee activities in 2023

The Committee Chair reports formallyto the Board on the Committee’s
proceedings after each meeting,on all matters within its duties andresponsibilities, as set out in previously
circulated minutes to the Board.
The Committee Chair also reports on theactivities of the Committee in a formal
written report that is submitted to anddiscussed by the Board annually.

During the year the Committee:

The work of the Committee is supported
by more detailed work undertaken bysubsidiary Boards and/or executive
Risk Management Committees in eachof the Group’s operational entities.
At each meeting, the Risk Management
Committees consider notable:
movements in the operation’s risk
profile; risk events; and emerging risks.
Risk Management Committees also assess• Reviewed the Group’s capacity to pay
dividends, capital plan and capital
buffer in line with the Capital Policy• Reviewed the Group’s updated risk
strategy, and ongoing enhancements
to the risk appetite framework in
the context of the Group’s agreed
strategic objectives• Recommended the 2023 Group ORSA
Report and ORSA Policy for Board
approval prior to submission of thereport to the regulator• Received updates on the Group’s
regulatory capital add-on review as partof the Solvency II capital requirements• Received regular updates on customer
outcome risk, the Group MinimumStandards, and Policy Framework

Admiral Group plc Annual Report and Accounts 2023

• Received in-depth updates ofindividual Group entities, Admiral
Europe Compañia de Seguros (AECS),EUI, Admiral Money (AFSL), Elephantand Able• Considered in-depth analysis of anumber of the Group’s most significant
risk areas, via stress and scenario testing
and reverse stress testing• Considered the adequacy of risk
mitigation measures and contingency
planning including a review of theGroup’s reinsurance provisions• Dedicated a significant amount of time
to developing the Admiral internal
model, receiving regular updates on the
progress of the project and providing
challenge to key project work streams• Monitored climate change-related
initiatives, including continued
progress to reduce Scope 1 and 2
emissions, progress to validating Scope
3 emissions, and submitting sciencebased targets• Received regular risk monitoring
reports on performance of Key Risk
Indicators within the overall risk
management framework• Received updates on the impact of
notable risk events throughout 2023
• Received regular updates in relation
to key programmes of work including
Identity and Access Management,
Guidewire Upgrade and Consumer
Duty, as part of the Group’s project
governance framework• Considered the annual renewal of theGroup’s corporate insurance coverage• Assisted the Group Board in its
oversight of M&A opportunities,
including the acquisition due in 2024 of
the UK direct Home and Pet personallines insurance operations of RSA.

Principal risks and uncertainties

The Board of Directors confirms that it
has performed a robust assessment of
the Group’s principal and emerging risks.
These risks, along with explanationsof how they are being managed andmitigated, are included in the Strategic
Report, page 98.
Information on how key risk drivers have
impacted on the Group’s principal risks
has been included within the Viability
Statement, page 109.

Risk management and internal
control systems

The system of risk management andinternal control over Admiral’s insurance,
operational, market, credit and grouprisk is designed to manage rather thaneliminate the risk of failure to achievebusiness objectives and breaches ofrisk appetites.
Furthermore, risk management can only
provide reasonable and not absoluteassurance against material misstatement
or loss. The Group Board is ultimately
responsible for the Group’s system ofrisk management and internal control
and the Group Audit Committee (GAC)
has reviewed the effectiveness of thissystem (a summary of GAC duties andresponsibilities, as well as key GAC
activities in 2023 is available on page 161.
The Group Board is of the view: that there
is an ongoing process for identifying,evaluating and managing the Group’s risks
and internal controls; that it has been inplace for the year ended 31 December
2023 and that it has operated effectively;
and that, up to the date of approval of theAnnual Report and Accounts, it is regularly
reviewed by the Group Board and accords
with the internal control guidance
for Directors provided in the 2018 UK
Corporate Governance Code.
The Group Board confirms that it has
performed a robust assessment of theGroup’s principal and emerging risks.
These risks, along with explanationsof how they are being managed andmitigated, are included in the strategic
report on page 98, with key risk drivers
impacting Admiral’s principal risks anduncertainties being further discussed
in the Viability Statement on page109. The Group Board is responsible fordetermining the nature and extent of
the principal risks it is willing to takein achieving its strategic objectives.
This assessment supports the Group
Board in monitoring the integrity of theGroup’s reported financial statements.
The Group Board meets at least seventimes a year to discuss the direction of
the Group and to provide oversight of theGroup’s risk management and internal
control systems.

The Group Board has delegated thedevelopment, implementation andmaintenance of the Group’s overall risk
management framework to the Group
Risk Committee (GRC). The GRC reports
on its activities to the Group Board andthe GAC, supporting the overall opinion
provided by the GAC that the Group’s
internal control, risk management
and compliance systems continue tooperate effectively.

3rd Line of Defence: The “third line ofdefence” comprises the independent
assurance provided by the Group Internal
Audit function, overseen by the GAC.
Internal Audit undertakes a programmeof risk-based audits covering all aspectsof both the first and second lines ofdefence. The findings from theseaudits are reported to all three lines, i.e.
Management, the Executive and oversightCommittees, and the GAC.

The Group Board has delegated to the
GAC the review of the adequacy andeffectiveness of the Company’s internalfinancial controls, and internal control andrisk management systems.

The Subsidiary Boards, GRC, and entity
Risk Committees receive reports settingout key performance and risk indicatorsand consider possible control issues
brought to their attention by early
warning mechanisms that are embedded
within the operational units. They,
together with the GAC, also receive
regular reports from the Internal Audit
function, which include recommendations
for improvement of the control andoperational environments.

The Group operates a “three linesof defence” approach to Risk andInternal Control.
1st Line of Defence: The Group
Board recognises that the day-to-day
responsibility for implementing policies
for risk identification, assessmentand management lies with the senior
management, whose operational
decisions must take into account risk andhow it can be controlled effectively.
2nd Line of Defence: The “second line ofdefence” is led by the Group Chief Risk
and Compliance Officer and comprises
the Corporate Governance functions andCommittees that are in place to provide
oversight of the effective operation of theinternal control framework. The Corporate
Governance functions facilitate theoversight and operation of the Group
Policy Framework and Group MinimumStandards, covering risk management andcontrols for all notable risks to the Group.
The Corporate Governance functions
perform second line reviews, including
reviews of the capital modelling andbusiness planning processes to support
the Group Board’s assessment of theGroup’s ongoing viability. Regular reviewsof risks are undertaken in conjunction
with senior management, with theresults of these reviews recorded in risk
registers and reported to the appropriate
governance forums and Boards.

The Chair of the GRC provides a written
report to the Group Board of the activities
carried out by the Committee on anannual basis (a summary of GRC duties
and responsibilities, as well as key GRC
activities in 2023 is available on page 168).
In addition, the Group Board receives
regular reports throughout the year fromthe Chairs of the GRC and GAC as to theiractivities, together with copies of theminutes from Subsidiary Board meetings,
the GRC and the GAC.
The GAC’s ability to provide an opinion
to the Group Board depends on theprovision of periodic and independentconfirmation, primarily by Group Internal
Audit, that the controls established by
Management are operating effectively
and where necessary provides a highlevel challenge to the steps being
taken by the GRC to implement the risk
management strategy.

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance• Reviewing the proposed risk-based
adjustments to remuneration for senior
managers and making subsequent
recommendations for approval to
the Group Remuneration Committee,
as well as providing feedback on the
Directors Remuneration Policy, andcommenting on remuneration metrics
to help ensure there is no conflict withrisk management objectives

and monitor regulatory issues, ensuringthat their resolution and the actions
taken are appropriately recorded. The Risk
Management Committees receive
regular information on Conduct Risk,
such as complaint handling reports andother related management information.
The Group Risk Management function
reviews and collates information fromacross the Group for consideration by
the Committee.

172

173

Corporate Governance

Remuneration Committee Report

Ensuring
OUR PEOPLE
ARE SUPPORTED

2023 DFSS award

On 28 September 2023, Milena Mondinide Focatiis was granted an award of
90,000 shares and Geraint Jones was
granted an award of 52,500 shares
under the DFSS. Using the share priceon the date of the grant of £23.72,
this is the equivalent to £2,134,800
or 290% of Milena’s base salary and£1,245,300 or 287% of Geraint’s basesalary respectively.
The awards will vest based on:

Dear Shareholder,“We are recommending
policy changes which
we believe makethe Executive Directors’
packages more competitive,
while reinforcing thestrong alignment withshareholders’ interests andmaintaining fairness ofreward approach to reinforce
Admiral’s unique culture.”
Evelyn Bourke
Chair of the Remuneration Committee

Committee members
Evelyn Bourke (Chair)
Michael Brierley
Justine Roberts1
Karen Green2

2023 business context

2023 has been a landmark year for
the Group, celebrating thirty years
in business, however, it has notbeen without its challenges – both
macroeconomic and geopolitical.
As Milena has made clear in her statement
this year, we have continued to deliver
the right products and service to ourcustomers. This is evidenced in 6% growthin customer numbers and profit of £443m,
a solid performance given the challenging
context. We have been able to deliver
this performance due to reacting quickly
and navigating the changing market
conditions well.
During 2023 we have continued to ensurethat our people are supported throughthe ongoing cost-of-living challenges.
We are clear that the continuing successof Admiral is possible due to the hard workand dedication of the people who workfor us, and we will continue to ensure they
are supported for the year ahead.

Sevenmeetings
in 2023

MemberI would like to thank shareholders forsupporting Admiral’s Annual Report
on Remuneration at the April 2023 AGM
with a vote of 88.5%. I look forward
to welcoming you at our AGM in 2024
and to your continued support.

Attendance

7/7
7/7
5/7
1/1

1. Justine Roberts joined the Remuneration Committee on
31 January 2023, she missed two meetings to pre-existingengagements made prior to her joining the Committee.
2. Karen Green was appointed to the Remuneration
Committee on 2 October 2023.

Admiral Group plc Annual Report and Accounts 2023

Taking into account the approved
remuneration structure and Admiral’sbusiness performance, the Committee
made the following decisions during 2023.

2021–23 Discretionary Free Shares
Scheme (DFSS)

Based on our performance for the period2021-2023, 43.76% and 43.73% of the
DFSS award granted in 2021 will vest to
Milena Mondini de Focatiis and Geraint
Jones, respectively. This is the lowest
vesting performance in recent times.
As the 2021 DFSS awards were granted
during the pandemic period, we needed
to consider whether windfall gains haveoccurred, as this was a period where shareprices were generally lower than prioryears for most companies. The Committee
is satisfied that no such windfall occurredon the basis that the share price atthe end of the performance period ismaterially lower than the grant price,and that DFSS awards are allocated as afixed number of shares, as opposed to apercentage of salary.
The full details of the vesting outcomesare on page 187.

2023 DFSS bonus

Milena Mondini de Focatiis and Geraint
Jones will receive a DFSS bonus of£296,071 and £172,676 respectively.
This bonus is equivalent to dividends
which would have been paid during
the year on all outstanding DFSS andsalary shares awarded, but not yet
vested, plus a 6.43% adjustment for
performance against a scorecard of
Non-Financial Metrics. In addition, theDFSS bonus is subject to a potential
downward adjustment to take accountof any risk events considered to have amaterial customer, regulatory or financial
impact. For this year there were no suchrisk adjustments. The full details of the
DFSS bonus calculations are on page 189.

• EPS - 26.67% weighting;• TSR vs. FTSE 350 (excluding investmentcompanies) – 26.67% weighting;• RoE – 26.67% weighting; and• the average outcomes of the scorecards
of Non-Financial Metrics used to assess
DFSS bonus adjustments over the
performance period – 20% weighting.
There will also be the potential for
downwards adjustment subject to anassessment which will take account ofrisk events considered to have a material
customer, regulatory or financial impact
over the course of the performance
period. Further details can be foundon page 187.

2024 Remuneration Policy review

The Remuneration Policy was lastapproved by shareholders at the 2021
AGM, effective for a maximum of three
years. Consequently, the Committee isseeking shareholder support for a revised
Remuneration Policy at the 2024 AGM.
In arriving at the planned changes to
the Remuneration Policy the Committeesought to maintain the positioning of
fixed pay towards the lower end of themarket while ensuring that the variable
elements would deliver significant extra
reward for outperformance. The Chairof the Committee consulted extensively
with shareholders, who were generally
very supportive of the changes.

• Annual bonus – we propose to remove
the DFSS Cash bonus in favour of anannual bonus plan. The maximum
bonus potential for the Executive
Directors is proposed to be 200% ofbase pay, with 40% of any bonus earned
being deferred into shares for a periodof three years. Bonus payments will
be subject to potential downwards
adjustments to take account of risk
events, and are subject to malus
and clawback provisions, in line with
the Group’s Malus and Clawback
Framework. Full details of the plan canbe found on page 193.
• Pension – there is no change proposedto the contribution rate (which isconsistent with that available to UK
employees), but we propose theremoval of the absolute cap on theamount of Company contributions.
• Dividend equivalent on unvested
DFSS and invested annual bonus
share awards – we propose to give
the Committee the flexibility to apply
dividend equivalent shares to the
Executive Directors’ unvested awards.
This would only be deployed for
Executive Directors if it were also being
applied across the whole population
who receive DFSS awards.

2024 remuneration arrangements

Executive Director remuneration
arrangements for 2024 will operate inline with the 2024 Remuneration Policy,
subject to shareholder vote.
We propose to increase Milena Mondinide Focatiis’ salary by 4.97% to £774,000
and Geraint Jones’ salary by 7.27% to£465,000, effective from 1 January 2024.
For Milena, this increase is in line withthe proposed base pay changes acrossthe UK workforce of the Group, where
we anticipate the average increase forcolleagues to be of the order of 5% as we
continue to support our people throughthe impact of the high inflationary
environment. For Geraint, the increase

begins to address the competitivenessof his base pay relative to the lower
quartile of the market. The Remuneration
Committee intends to increase his salaryto the lower quartile of the market by theend of this policy period, in increments.
The Remuneration Committee will review
his increase each year to ensure it isappropriate and moves his positioning
as intended. This means that the increasefor Geraint may be ahead of thosegenerally given to colleagues for theduration of the policy.
We propose that Milena Mondini deFocatiis be granted an award of 95,000
shares and Geraint Jones be granted
an award of 55,000 shares under the
DFSS for 2024. The Committee will review
these awards prior to the September
grant date to ensure the quantum
remains appropriate.
The Committee reviewed the metrics
that will apply to DFSS and Annual Bonusawards for 2024. Further details are shownon page 191.

In summary

The proposed Remuneration Policy will
be put to shareholders at the AGM in
2024 and is subject to a binding vote.
Both the Committee and the Board
strongly believe that the proposed
Remuneration Policy will continue toserve the Group’s strategic ambitions andincentivise executives to create value forour shareholders. The Annual Report on
Remuneration (subject to an advisoryvote) will also be put to a shareholder voteat the AGM. The Committee and I hopethat you vote in favour of both the reportand policy. I am happy to discuss our
Remuneration Policy and Annual Report
on Remuneration with shareholders.
Evelyn Bourke
Chair of the Remuneration Committee
6 March 2024

Admiral Group plc Annual Report and Accounts 2023

Corporate GovernanceOn behalf of theRemuneration Committee,
I am delighted to present
the Directors’ Remuneration
Report for the year ended
31 December 2023.

Remuneration for 2023

There are three proposed changes
to highlight:

174

175

Corporate Governance

Remuneration at a Glance“I would like to thank shareholders
for supporting the Annual Report
on Remuneration at the April 2023
AGM with a vote of 88.5%.”

How did we perform during 2023?
Profit£443m

Evelyn Bourke
Chair of the Remuneration Committee

Overview of the Directors’ Remuneration Policy

Y2

Y3

Y4

2022: 124.3p
2022 restated IFRS17: 95.4p

36%

Y5

2022: 35%2022 restated IFRS17: 29%

103.0pDiscretionary Free Share
Scheme (DFSS) Bonus

2022: 112.0p

1 year TSR

33.1%

Performance period
Holding period

2022: -26%

How are remuneration outcomes linked to Group Purpose and Strategy?

The table below details how each of the performance measures link to our Group Purpose and Strategy.
Group Purpose

Performance measures

Non-financial
performance

EPS growth (33.33%)
TSR vs. FTSE 350 (33.33%)
Return on Equity (33.33%)
Vesting

ThresholdMaximum

Actual outturn

Outcome as %of maximum

Vesting
Contribution

0.50%
Median25%

36%Upper quartile
55%-37.70%56th percentile
41.50%

0.00%
45.20%
66.40%

0.00%
15.07%
22.13%
37.20%

Milena Mondinide Focatiis

Geraint
Jones

29.76%

29.76%

14.00%

13.97%

43.76%

43.73%

Milena Mondinide Focatiis

Geraint
Jones

69.98%

69.83%

Non-financial performance(20% weighting)Total financial performancevesting at 80% weighting
Total non-financial performancevesting at 20% weighting
Overall Vesting

Full year dividend per share (pence)

Pension, Benefits & Share
Incentive Plan (SIP)

Financialperformance

Performance range
Financial
Performance measure

Return on equity (%)

Base salaryDFSS

2022: £469m
2022 restated IFRS17: £361m

Great
CustomerExperiences

Successful
Business

Positive
impact onsocietyStrategy
Great place
to work

Accelerating
towards
Admiral 2.0

Evolution
Diversification of Motor

EPS
ROE
TSR
Strategic Assessment
Customer Feedback
Customer Outcomes
Trust Index
Diversity
Inclusion

The Committee is committed to ensuring remuneration outcomes for the Executive Directors are commensurate with performanceand are aligned to the Group purpose, strategic priorities, and shareholders’ interests. Variable pay is subject to stretching
performance outcomes and is delivered primarily through shares to ensure a long-term focus and alignment with shareholders.

DFSS bonus in respect of 2023

A summary of the 2023 NFM outcomes and associated cash bonus outcomes for the Executive Directors:
Category

TargetStrategy

16.50%

Customer feedback

8.50%

Customer outcomes

8.50%

People (Trust index)

9.00%

Female representation
at senior level

3.75%

Inclusion survey results

3.75%

33.00%

25.30%
9.44% (H2)

9.98% (H1)

5.46% (H1)

17.00%

12.42%(H2)

17.00%
18.00%

9.00%

7.50%

5.63%
7.50%
62.86% (H1)
105.14% (H1)

100.00%7.50%

69.29% (H2)

107.72% (H2)

120.00%* The Committee did not apply discretion to the outcome of the performance measures.

What did our Executive Directors earn in 2023?
• Pension, benefits and SIP include the2023 pension contribution of £15,000
for the CEO and CFO, respectively.
• DFSS bonus of £296,017 and £172,676 for
the CEO and CFO, including an adjustment
for performance against the scorecard of
non-financial measures.
• DFSS value for the CEO and CFO relates
to 43.76% and 43.73% of their 2021
DFSS awards vesting, respectively.

Admiral Group plc Annual Report and Accounts 2023

Maximum

Total
Overall scorecard
multiplier

Outcome£19,060
CFO £433,472£589,791£172,676£19,060£296,017 £1,011,775

CEO £737,326
Key

SalaryPension, benefits & SIP

DFSS Bonus

DFSS Shares

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

The following chart shows the operation of the key
elements of the Directors’ Remuneration Policy forthe 2023 performance year:
Y1

A summary of the outcomes for the Executive Directors in respect of the 2021 DFSS award:

Earnings per share (pence)

111.2p

How was performance determined in 2023?
DFSS awards vesting on performance to 31 December 2023

176

177

Corporate GovernanceDirectors’ Remuneration Policy
Compliance Statement

This Remuneration Report has been prepared according to the requirements of the Companies Act 2006 (the Act), Regulation 11
and Schedule 8 of the Large and Medium-Sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2018, theCompanies (Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations 2019 and other relevant requirementsof the FCA Listing Rules. In addition, the Board has adopted the principles of good corporate governance set out in the UK Corporate
Governance Code (the Code) and the guidelines issued by its leading shareholders and bodies such as ISS, the Investment Association,and the Pensions and Lifetime Savings Association.
Unless otherwise stated, information contained within this Remuneration Report is unaudited.
The following Remuneration Policy (the “2024 Policy”) will come into effect, subject to shareholder approval, from the April 2024 AGM.
The policy table below summarises the changes from the Remuneration Policy approved at the 2021 AGM (the 2021 Policy).

Remuneration Policy table

This table describes the key components of the remuneration arrangements for Executive Directors.
Purpose and link to strategy

Operation

Opportunity and performance metrics

ChangesBase Salary
To attract and retain
talent by settingbase salaries at levels
appropriate for thebusiness.

Salaries are reviewed annually or
following a significant change
in responsibilities.

Any salary increases are applied in line withthe outcome of the review.

No changes.

Salary levels/increases take account of:• Scope and responsibility ofthe position.
• Individual performance andeffectiveness, and experience of theindividual in the role.

Key Principles of Admiral Remuneration Arrangements• Average increase awarded acrossthe Group.

This policy has been reviewed in 2023 as part of the usual three-year cycle and will be put to a shareholder vote at the 2024 AGM.

Where increases are awarded in excess ofthat for the general employee population,
the Committee will provide the rationale
in the relevant year’s Annual Report on
Remuneration.

The Board is satisfied that this revised policy continues to meet the objectives of attracting and retaining high quality executives
across the Group.
The Committee reviews the remuneration framework and packages of the Executive Directors and senior managers and recognises theneed to ensure that the Remuneration Policy is firmly linked to the Group’s strategy, including its risk management approach. In setting
the Policy and making remuneration decisions, the Committee takes into account pay and conditions elsewhere in the Group. The mainprinciples underlying the Remuneration Policy are:• Competitive total package – the Group aims to deliver total remuneration packages that are market-competitive, taking into accountthe role, job size, responsibility, and the individual’s performance and effectiveness. Prevailing market and economic conditions
and developments in governance are also considered, as are general salary levels throughout the organisation. There is sufficient
opportunity within the variable pay of Executive Directors to reward outstanding levels of performance, taking into account themarket context, with upper quartile remuneration outcomes;• Significantly share-based – our base salaries are typically targeted towards the lower end of market but are combined withmeaningful annual share awards that vest on long-term performance to ensure strong alignment with shareholders and thelong-term interests of the Group. Executives are also encouraged to build up significant shareholdings in the Group to maximise
shareholder alignment;• Long-term perspective – a significant part of senior executives’ remuneration is based on the achievement of appropriate but
stretching performance targets that support the delivery of the Group’s strategy and shareholder value. The extended performanceand vesting horizons promote a long-term perspective that is appropriate to the insurance sector;• Effective risk management – incentives are designed to ensure they do not encourage excessive risk-taking. They are aligned with thedelivery of positive customer outcomes and reinforce the Group’s risk policy;• Open and honest culture – the Group has a strong culture of focussing on collective success, whilst recognising individual contribution
to the Group’s performance, and this is reflected in our remuneration structure across the business; and• Transparency for stakeholders – the remuneration structure is designed to be easy to understand, and all aspects are openly
communicated to employees, shareholders, and regulators.

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

The Group is committed to maximising shareholder value over time in a way that also promotes effective risk management, excellent
customer outcomes while ensuring that there is a strong link between performance and reward. This is reflected in the Group’s stated
Remuneration Policy of paying competitive, performance-linked and shareholder-aligned total remuneration packages. These comprisebasic salaries coupled with participation in performance-based share schemes to generate competitive total reward packages forsuperior performance.

For current Executive Directors, that
increases in cash salary will not normallyexceed the increase for the generalemployee population over the term of thisPolicy. More significant increases may beawarded in certain circumstances including,but not limited to: where there has been asignificant increase in role size or complexity,
to apply salary progression for a newly
appointed Executive Director, or where
the Executive Director’s salary has fallen
significantly behind market.

PensionTo provide retirement
benefits.

The Group operates a Personal Pension
Plan, a Defined Contribution Scheme.
This is available to all employees
following completion of theirprobationary period.

Executive Directors may receive an employer
contribution consistent with that received
by UK employees (currently matched
contribution up to 6% of base salary)or the equivalent value in cash. Base salaryis the only element of remuneration thatis pensionable.
The pension provision and rules are the samefor Executive Directors and the main bodyof UK staff.

Other Benefits
To provide competitive
benefits.

Includes (but not limited to):Benefits may vary by role.

• Death in service scheme

None of the existing Executive Directors
received total taxable benefits exceeding
5% of base salary during the most recent
financial year, and it is not anticipated thatthe cost of benefits provided will exceed thislevel over the term of this Policy.

• Private medical cover• Permanent health insurance• Relocation, at theCommittee’s discretion
All benefits are non-pensionable

No change tocontribution rate
(which is consistent
with that available
to UK employees)
but the absolute
GBP cap has
been removed.

No changes.

The Committee retains the discretion
to approve a higher cost in exceptional
circumstances (e.g., relocation), or incircumstances driven by factors outside theCompany’s control (e.g., material increases inhealthcare insurance premiums).

Admiral Group plc Annual Report and Accounts 2023

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179

Corporate GovernanceDirectors’ Remuneration Policy
continued

Operation

Opportunity and performance metrics

Changes

Purpose and link to strategy

Operation

Opportunity and performance metrics

Changes

Annual Bonus
To motivate andreward the delivery of
stretching near-term
financial and nonfinancial targets
based on thebusiness strategy.

Bonus payments are determined after
the year end and will be based on
performance achieved against targets
over the financial year.

Maximum annual bonus potential for
Executive Directors is 200% of base salary.

The annual bonus isa new arrangement
which will replace
the previous
DFFS Bonusarrangement.

Discretionary Free
Share Scheme (DFSS)
To motivate andreward longer term
performance, aid
long term retentionof key executive
talent, use capitalefficiently, grow profits
sustainably andfurther strengthen
the alignment of
the interests ofshareholders and staff.

Executive Directors may be granted
awards annually at the discretion of
the Committee.

Maximum opportunity: A maximum facevalue on award of 500% of base salary
applies. Threshold performance will resultin vesting of up to 25% of the maximum
award.

No changes otherthan providing
flexibility for
dividend equivalentshares to beprovided.

40% of any bonus will be deferred intoshares for a period of three years, withthe remaining portion paid in cash.
Any bonus earned is non-pensionable.
Where any bonus is deferred, dividend
equivalent shares may be accrued onawards during the deferral period, only
receivable on shares which vest at theend of the period.

For a Threshold level of performance,
a bonus of 25% of the maximum
potential award is payable and for target
performance 50% of maximum is payable.
Bonuses will be based on a combination offinancial and non-financial performancetargets. The Committee has the ability todetermine the relevant metrics, weightings
and targets each year based on evolving
business priorities.

Bonus payouts are subject to apotential downwards adjustment
based on an assessment of risk events
considered to have a significant
customer, regulatory or financial
impact over the course of theperformance period.
Bonus payouts are subject to malus
and clawback provisions, i.e., forfeiture
or reduction of unvested awards andrecovery of vested awards. Events
which may lead to the applicationof malus and clawback are set out
in the Group’s Malus and Clawback
Framework and include material
financial misstatement, responsibility
for conduct which results insignificant losses, material failureof risk management, misconduct,
reputational damage andcorporate failure.

Awards may be in the form of nil ornominal priced options or conditional
shares. Awards are normally granted
on an annual basis and vest after aminimum of three years subject toGroup performance and continued
employment.

DFSS shares are granted as a fixed numberof shares (subject to the quantum limits ofthe plan, as described above). The number
granted is reviewed and may be adjusted
by the Committee, for example, if there
has been a significant change in share price.
A two-year holding period applies
Vesting of DFSS awards is subject to theto vested awards, during which timeGroup’s performance over a three-year
Executive Directors may not sell
performance period. The performancethe vested awards except to covermeasures may include EPS growth, ROE,
tax liabilities.
relative TSR and a scorecard of non-financial
metrics selected by the Committee.
Awards are subject to a potential
Details of the measures, weightings anddownwards adjustment based on an
performance targets used for specific DFSS
assessment of risk events considered
to have a material customer, regulatory grants are included in the relevant year’s
Annual Report on Remuneration.
or financial impact over the course of
the performance period.

Corporate GovernancePurpose and link to strategy

Awards are subject to malus andclawback provisions, i.e., forfeiture or
reduction of unvested awards andrecovery of vested awards. Events
which may lead to the applicationof malus and clawback are set out
in the Group’s Malus and Clawback
Framework and include material
financial misstatement, responsibility
for conduct which results in significant
losses, material failure of risk
management, misconduct, reputational
damage, and corporate failure.

The Remuneration Committee has
discretion to adjust the formulaic
vesting outcome to ensure the final
outcome is a fair and true reflectionof underlying business performance,
both financial and non-financial.

The Remuneration Committee has
discretion to adjust the formulaic
vesting outcome to ensure the final
outcome is a fair and true reflection ofunderlying business performance, bothfinancial and non-financial.
Dividend equivalent shares may be
accrued on awards during the vesting
period, only receivable on shares whichvest at the end of the period.
Approved Free Share
Incentive Plan (SIP)
To encourage shareownership across all
employees, using HMRC
approved schemes for
eligible UK employees.

Admiral Group plc Annual Report and Accounts 2023

All eligible UK employees participate
in the SIP after completing a minimumof 12 months’ service. Grants are
made twice a year based on the
results of each half year and vest after
three years subject to continued
employment.

The SIP is an all-employee scheme andExecutive Directors participate on the sameterms as other employees. The acquisitionof shares is therefore not subject to thesatisfaction of a performance target.
Maximum opportunity is in line with
HMRC limits.

No changes.

Admiral Group plc Annual Report and Accounts 2023

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181

Corporate GovernanceDirectors’ Remuneration Policy
continued

Purpose and link to strategy

Operation

Opportunity and performance metrics

Changes

In-employment
Shareholding
Requirement
To align interests of
Executive Directors
with shareholders.

Guideline to be met within five yearsof the later of the introduction of theguidelines and an Executive Director’s
appointment.

400% of base salary.

No changes.

Post-termination
Shareholding
Requirement
To further align theinterests of Executive
Directors withshareholders andencourage a focus on
long-term sustainable
performance.

Shareholding required to be maintained 400% of base salary (or number of shares
held at time of termination, if lower).
at the in-employment requirement(or number of shares held at time oftermination, if lower) for a period of
two years post termination.

Remuneration Policy for Other Employees

The Company’s approach to annual salary reviews is consistent across the Group, with consideration given to the role size, complexity,
experience required, individual performance and pay levels in comparable companies.
In general, the Remuneration Policy which applies to other senior executives is consistent with that for Executive Directors.
Remuneration is typically linked to Company and individual performance in a way that reinforces shareholder value creation.

No changes.

Notes to the Remuneration Policy table
Payments from Existing Awards

Executive Directors are eligible to receive payment from any award made prior to the approval and implementation of the 2024
Remuneration Policy. This includes all outstanding awards under the previous 2018 and 2021 Remuneration Policies, or any awards madeprior to appointment to the Board. Details of any such payments will be set out in the Annual Report on Remuneration as they arise.

Selection of Performance Measures

Vesting under the DFSS is linked to the following financial measures: EPS growth, ROE, and relative TSR.
EPS growth has been selected as a performance measure as the Committee feels it is a strong indicator of both long-term shareholder
return and the underlying financial performance of the business. It is transparent and highly visible to executives.
ROE has been selected as the Committee believes that a returns metric reinforces the focus on capital efficiency and delivery of strong
returns for our shareholders, thereby further strengthening the alignment of incentives with Admiral’s strategy.
Relative TSR has been selected to reflect value creation for Admiral’s shareholders as compared to comparative alternative investments.
Since the 2019 award, vesting of DFSS awards is also linked to non-financial measures which may include strategic, customer and othermeasures. The Committee believes that the additional emphasis on these measures reinforces Admiral’s focus on our customers andon other non-financial Group priorities, whilst also more clearly demonstrating alignment of Group remuneration practices with therequirements of Solvency II.

Most holders of DFSS awards receive a DFSS cash bonus, which is equivalent to the dividend on unvested DFSS share awards. The bonus
for a number of senior managers is adjusted for performance against a scorecard of customer and other non-financial metrics.
The Company operates a personal pension scheme which is available to all UK employees once they have completed their probationary
period. For all employees, including the Executive Directors, the Company matches the employee contribution up to a maximum of 6%
of salary or provides the equivalent value in cash.
All UK employees who have served a minimum tenure at Admiral are eligible to participate in the SIP on the same terms. Most overseas
employees receive an equivalent award to the UK SIP awards and these awards have no performance measures attached.

Service Contracts and Leaver/Change of Control Provisions

The Company’s Policy is to limit payments upon termination of employment to pre-established contractual arrangements. In the eventthat the employment of an Executive Director is terminated, any compensation payable will be determined in accordance with the termsof the service contract between the Company and the employee, as well as the rules of any incentive plans. Under normal circumstances,
Executive Directors are entitled to receive termination payments in lieu of notice based on base salary and compensation for loss ofbenefits. The Company has the ability to pay such sums in instalments. The notice period for all Executive Directors is one year.
Executive Director

Date of appointment

Contract duration

Geraint Jones
Milena Mondini de Focatiis

13 August 2014
11 August 2020

Rolling contract, 12-month notice period
Rolling contract, 12-month notice period

There is no provision in the Executive Directors’ contracts for compensation to be payable on early termination of their contract over andabove the notice period element. The Executive Directors’ service contracts are available to view at the Company’s registered office.
When considering termination payments, the Committee reviews all potential incentive outcomes to ensure they are fair to bothshareholders and participants. The table below summarises how the awards under the DFSS and Annual Bonus scheme are typicallytreated in specific circumstances, with the final treatment remaining subject to the Committee’s discretion.

The specific performance measures and their respective weightings for each DFSS award may vary to reflect the strategic priorities at
the time of the award.
For the annual bonus, forward-looking performance measures, weightings and targets are selected near the start of the year covering
financial and non-financial measures to align with the Group’s strategic objectives.
Performance targets are set taking into account the Company’s strategic priorities and the economic environment in which theCompany operates. The Committee believes the performance targets are stretching and motivational, and that maximum outcomes areavailable only for outstanding performance.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

The Committee is satisfied that the above Remuneration Policy is in the best interests of shareholders and does not promote excessiverisk-taking. The Committee retains discretion to make changes required to satisfy legal or regulatory requirements and other nonsignificant changes to the Remuneration Policy without reverting to shareholders.

Around 4,300 employees from across the Group, including the Executive Directors, participate in the DFSS. The Committee determines
DFSS awards for those executives within its remit and on an aggregate basis for all other participants in the DFSS. For the Executive
Directors, all DFSS share awards are subject to performance conditions. For other senior managers and employees, a proportion of awards(ranging from half to two-thirds) are subject to performance, with performance conditions either in line with those described aboveor set based on key performance drivers of the individual’s relevant business unit, and the remainder has no performance conditions
attached other than the requirement that the recipient remains an employee of the Group at the date of vesting. Award sizes vary byorganisational level and an assessment of both financial and non-financial performance.

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183

Corporate GovernanceDirectors’ Remuneration Policy
continued
Plan

Scenario

Treatment of awards

Timing of vesting

Details of the 2024 Policy on NED fees are set out in the table below:

DFSS

Resignation.

Awards lapse under most circumstances
e.g., dismissal for cause or resignation.

n/a.

Purpose and link to strategy

Operation

Opportunity and performance metrics

Fees are reviewed annually.

Death, injury or disability, redundancy,
retirement, or any other reasons theCommittee may determine.

Any unvested award will be pro-rated fortime with reference to the proportionof the vesting period remaining at termination,and performance, unless the Committee
determines otherwise.

Normalvesting date.

To attract and retain NEDsof the highest calibrewith experience relevantto the Company

Fee levels are set by reference to NED fees atcompanies of a similar size and complexity.

Change of control.

Unless the Committee determines otherwise,
any unvested award will be pro-rated for timewith reference to the proportion of thevesting period remaining at change of control,and extent to which the Committee determinesthat the performance conditions have been
met or are likely to be met at the pointof change of control.

Immediately.

Resignation.

Eligibility forfeited under most circumstances,e.g., dismissal for cause or resignation.

n/aDeath, injury or disability, redundancy,
retirement, or any other reasons theCommittee may determine.

Any bonus payable will be pro-rated fortime with reference to the portion of theperformance period remaining at termination,and performance, unless otherwise determinedat the discretion of the Committee.

Normalpayment date.

Unless the Committee determines otherwise,
any bonus eligibility will be pro-rated
for time with reference to the proportionof the performance period remaining at changeof control, and extent to which the Committee
determines that the performance conditions
have been met or are likely to be met at the
point of change of control.

Immediately.

Change of control.

Additional fees are payable for acting as
Senior Independent Director or as Chair or
member of a Board Committee and may bepayable as appropriate in relation to otheradditional responsibilities (e.g., attending
meetings overseas).

The maximum aggregate annual fee for
NEDs is capped at the limit provided forin the Company’s Articles of Association.

Fees are paid in a mix of cash and Company
shares for the Company Chair, and incash for other Non-Executive Directors.
The Board retains discretion to vary the mix
or determine that fees are paid entirely incash or Company shares.
There are no changes to the 2024 Policy on NED fees from the 2021 version.

Pay-for-Performance: Scenario Analysis

For all leavers (with the exception of termination for cause), vested DFSS awards that are still subject to a holding period will normallybe released in full at the end of the holding period, though the Committee has discretion to determine otherwise, taking into accountthe circumstances at the time.

Non-Executive Directors

The following charts provide an estimate of the potential future reward opportunities for the Executive Directors, and the potential split
between the different elements of pay under different performance scenarios in a given year.

Illustrative Scenario Analysis
Group CEO
Minimum

100%

On-target

29%

Maximum

17%

32%

Maximum withshare price growth

14%

26%

The Company has entered into letters of appointment with its Non-Executive Directors (NEDs).
Summary details of terms and notice periods are included below.

27%

43%

51%

61%

Group CFO

NED

Term

Initial date of appointment

Commencementof current contract

Notice period

Mike Rogers
Justine Roberts
Andy Crossley
Michael Brierley
Karen Green
Jayaprakasa Rangaswami
Evelyn Bourke
Bill Roberts
Fiona Muldoon

3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years

1 February 2023
17 June 201627 February 2018
5 October 201814 December 201829 April 2020
30 April 2021
11 June 2021
2 October 2023

1 February 2023
17 June 2023
27 February 2024
5 October 2021
14 December 2021
29 April 2023
30 April 2021
11 June 2021
2 October 2023

Three months
One month
One month
One month
One month
One month
One month
One month
One month

The NEDs are not eligible to participate in the SIP, DFSS or Annual bonus scheme and do not receive any pension contributions.

Admiral Group plc Annual Report and Accounts 2023

In the event that there is a material
misalignment with the market or a change
in the complexity, responsibility or timecommitment required to fulfil a NED role, theBoard has discretion to make an appropriate
adjustment to the fee level.

Corporate Governance

Annual bonus

The Group Chair fee is determined by theCommittee after consultation with the
Executive Directors. The NED fees are
determined by the Group Chair together
with the Executive Directors.

Minimum

100%

On-target

30%

Maximum

17%

33%

Maximum withshare price growth

14%

26%

£0

Key

28%

42%

£1,000,000

Fixed remuneration

50%

60%
£2,000,000

Annual Bonus£3,000,000£4,000,000£5,000,000£6,000,000£7,000,000

DFSS

The value of DFSS awards is calculated based on the average share price in the last three months of 2023 £25.69 and the number of DFSS
shares to be awarded in 2024 (95,000 and 55,000 shares respectively).

Admiral Group plc Annual Report and Accounts 2023

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185

Corporate GovernanceDirectors’ Remuneration Policy

Annual Report on Remuneration

The performance scenarios are based on the following assumptions:This section of the report provides details of how Admiral’s Remuneration Policy was implemented in 2023 andhow the Remuneration Committee intends to implement the proposed Remuneration Policy in 2024 (subject toshareholder approval).

continued
Fixed remuneration

On-target remuneration
Maximum remuneration
Maximum remuneration with
50% share price appreciation

Comprising the 2024 base salary, benefits (based on the annualised 2023 single figure for the GroupCEO and CFO) and a 6% pension contribution (uncapped).
Fixed remuneration plus the value of the Annual Bonus and DFSS achieving on-target performanceof 50% of maximum.
Fixed remuneration plus the value of the Annual Bonus and DFSS achieving maximum performance.
Maximum remuneration increased to assume a 50% increase to the value of the shares granted
under the DFSS since the point of grant.

Approach to Remuneration Relating to New Executive Director Appointments
External Appointments

When appointing a new Executive Director, the Committee’s policy is to set the remuneration package for a new Executive Director inaccordance with the approved Remuneration Policy at the time of the appointment.

The Committee may also make an award to ‘buy out’ incentive arrangements forfeited on leaving a previous employer. In doing so, theCommittee will consider relevant factors including any performance conditions attached to the forfeited awards and the likelihood of
those conditions being met to ensure that the value of the buy-out award is no greater than the fair value of the awards it replaces.
The Committee may also avail itself of Listing Rule 9.4.2 R if appropriate for the buy-out of incentive arrangements (i.e., if the terms ofparticipation for the prospective Executive Director are similar to all, or substantially all employees who participate in the plan, thenapproval by ordinary resolution of the shareholders of the listed Company in general meeting is not required).

Internal Appointments

Remuneration for new Executive Directors appointed by way of internal promotion will similarly be determined in line with the Policy forexternal appointees, as detailed above. Where an individual has contractual commitments made prior to their promotion to the Board,
the Company will continue to honour these arrangements. Incentive opportunities for below-Board employees are typically no higher
than for Executive Directors, but measures may vary if necessary.

Other Directorships

The Board sets the Group’s Remuneration Policy and, through the authority delegated to it by the Board, the Committee is responsible
for making recommendations to the Board on the implementation of the Remuneration Policy. Its remit includes recommending
the remuneration of the Group Board Chair and the Executive Directors; approving the remuneration of senior management; anddetermining the composition of and awards made under the performance-related incentive schemes.
At the end of 2023 the Committee comprised Evelyn Bourke, Michael Brierley, Justine Roberts and Karen Green. The Committee had
seven scheduled meetings and it also held a number of ad hoc/late notice meetings to deal with specific issues in a timely manner.
The Group Chair, CEO, CFO and CRO are invited to meetings where the Committee considers it appropriate to obtain their advice onGroup strategy and performance and senior executive pay strategy. The Group CEO typically attends all meetings. No director is involved
in deciding their own remuneration outcome. The members of the Committee do not have any personal financial interests (other thanshareholdings), or any conflicts, that relate to the business of the Committee. The Committee members do not have any day-to-day
involvement in the running of the Group.

Committee activities

During the year ended 31 December 2023, in addition to its regular activities, the Committee also:• Reviewed and proposed revisions to the Remuneration Policy in anticipation of the upcoming binding vote by shareholders at the AGM
in 2024;• Reviewed the implementation of a set of group-wide non-financial performance measures for the DFSS;• Reviewed the performance ranges for the financial measures for the 2023 DFSS; and• Reviewed the design of annual incentives as part of the ongoing work on the Group’s reward strategy.
As mentioned in the Governance Report, during the year ended 31 December 2023, the Committee also performed its regular activities:• Reviewed the DFSS vesting and bonus arrangements for Executive Directors, senior management and relevant staff (Material Risk
Takers) covered under Solvency II;• Reviewed Admiral’s Gender Pay Gap reporting statistics;• Reviewed risk events and their impact on variable pay;

Executive Directors are permitted to accept appointments as Non-Executive Directors of companies with the prior approval of the Group
Board. Approval will be given only where the appointment does not present a conflict of interest with the Group’s activities, and where
the wider exposure gained will be beneficial to the development of the individual.

• Undertook an evaluation of the Committee’s performance during the year;

Considerations of Conditions Elsewhere in the Group• Reviewed external remuneration trends and market conditions.

Considerations of Shareholder Views

Remuneration topics were discussed with employees at the Employee Consultation Group (ECG), which met four times over the year.
Key themes discussed at the ECG were: Executive Director compensation, Real Living Wage, the ongoing cost of living crisis, employee
benefits and changes to the HMRC dividend allowance.

Considerations of Regulatory Requirements

On 1 March 2024, the Chair of the Remuneration Committee and Group Head of Reward met with the ECG to discuss the remuneration
for the Executive Directors and the proposed changes to the 2024 Directors’ Remuneration Policy. The detail of the Policy was be covered
in depth, with time set aside for members of the ECG to give feedback and ask any questions they felt were relevant. There was somegood discussion about how the remuneration for Executive Directors linked to wider colleague pay.

The Committee considers the pay and employment conditions elsewhere in the Group when determining remuneration for
Executive Directors.
When determining remuneration, the Committee takes into account best practice guidelines issued by institutional shareholder bodies.
The Committee is open to feedback from shareholders on the Remuneration Policy. It will continue to monitor trends and developments
in corporate governance and market practice to ensure the remuneration structure for our Executive Directors remains appropriate.
The Committee regularly reviews the Remuneration Policy and structure in the context of Solvency II remuneration guidance, and EBA,
PRA, and FCA expectations regarding the supervision of insurance firms. The Group Chief Risk Officer periodically attends Committee
meetings as part of this process and provides support to the Committee in understanding any risk-related implications of remuneration
decisions. Whilst the Remuneration Policy includes several features which help ensure compliance with current regulatory guidance, theCommittee reserves the discretion to adjust the Remuneration Policy, and its execution, to take into account any developments in such
regulatory guidance.

• Reviewed the Committee’s terms of reference;• Reviewed the Group’s Malus and Clawback Framework; andShareholder engagement on the 2024 Directors’ Remuneration Policy

In October of 2023, we wrote to our top 35 shareholders, outlining the proposed changes to the Directors’ Remuneration Policy andthe rationale for the changes. This distribution covered around 70% of the shareholder base. Our brokers considered this level ofengagement to be very thorough. We consulted with our brokers on the list and overall coverage before issuing the letter.
The Committee Chair held follow up meetings with eight investors, received with written responses from two shareholders, and ‘no needto meet or positive’ responses from a further five. A further meeting was held in February 2024 with one investor. Additionally, a letter
was issued to the four main proxy agencies, with meetings happening in January and February 2024.
The overall summary of the feedback from shareholders shows broad support for the policy changes which are being proposed.
There was a good deal of feedback focusing on the implementation of the policy changes, including ensuring that measures and targets
in the DFSS and new Annual Bonus Plan are relevant and stretching. Shareholders commented on the distinctive culture of Admiral with
its high level of share ownership and wanted assurance that the Policy would not lead to unfairness between Executive Directors and thewider population. This has been taken into consideration.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate GovernanceIn determining the appropriate remuneration for a new Executive Director, the Committee will consider all relevant factors to ensure that
arrangements are in the best interests of the Company and its shareholders. Where an individual is appointed on an initial base salary thatis below market, any shortfall may be managed with phased increases over a period of time, subject to the individual’s performance anddevelopment in the role. This may result in above-average salary increases during this period.

Remuneration Committee Membership in 2023

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187

Corporate Governance

Annual Report on Remuneration
continued

Committee effectiveness review

As part of the Committee’s annual review of its performance and processes, each Committee member and regular attendee completed
a questionnaire designed to assess the Committee’s performance, including the activities and general operation of the Committee.
The Committee discussed the results of the review at its meeting in December 2023 and concluded that, overall, the Committee
remained effective.

6.	DFSS bonus: the bonus is equivalent to dividends that were paid in respect of the performance year on all outstanding DFSS sharesawarded but not yet vested. The bonus is paid in two tranches annually:i) f or H1 2023: a bonus of £144,778 was paid to Milena Mondini de Focatiis, based on 270,000 unvested shares, a scorecard outcomeof 105.14% and the interim dividend of 51p per share; and a bonus of £84,454 was paid to Geraint Jones based on 157,500 unvested
shares and a scorecard outcome of 105.14% and the interim dividend of 51p per share.

To help improve its performance over the coming year, the Committee highlighted the importance of discussing key issues in a timely
fashion and getting management engagement earlier to ensure sufficient time for management to change direction where needed or
implement a new plan. It was noted that Committee support had improved.

ii) for H2 2023, due for payment in May 2024: a bonus of £148,330 is due to Milena Mondini de Focatiis, based on 270,000 unvested
shares, a scorecard outcome of 107.72% and the final dividend of 52p per share; and a bonus of £86,526 is due to Geraint Jones
based on 157,500 unvested shares and a scorecard outcome of 107.72 % and the final dividend of 52p per share.

Advisors to the Committee

The payments for H2 2023 are subject to completion of internal governance procedures.

During the year, to enable the Committee to reach informed decisions, we obtained advice on market data and trends from independent
consultants Willis Towers Watson (WTW). WTW reported directly to the Committee Chair and are signatories to and abide by the Code of
Conduct for Remuneration Consultants (which can be found at www.remunerationconsultantsgroup.com). WTW also provided advice to
the Company on capital modelling, claims metrics, and pricing.

Total Single Figure of Remuneration for Non-Executive Directors (audited)

The table below sets out the total single figure remuneration received by each NED for the years ended 31 December 2023 and
31 December 2022.

The Committee undertakes due diligence periodically to ensure that advisors remain independent of the Company and that the advice
provided is impartial and objective. The Committee is satisfied that the advice provided by WTW is independent.
The table below shows the results of the advisory vote on the 2022 Annual Report on Remuneration.
For

AgainstTotal votes cast

Abstentions

225,445,845
88.50%

29,282,756
11.50%

254,728,601

4,420

Total Single Figure of Remuneration for Executive Directors (audited)

The table below sets out the total single figure remuneration received by each Executive Director for the years ended 31 December 2023
and 31 December 2022:
Executive Director

1.
Base salary2.
Benefits

3.
PensionTotal
fixed pay

Milena Mondini 2023
de Focatiis
2022
2023
Geraint Jones
2022£737,326£715,850£433,472£416,800

£455
£480
£455
£480

£15,000£15,000£15,000£15,000£752,781£731,330£448,927£432,280

4.
SIP

5.
DFSS

6.
DFSS bonus

Totalvariable pay

Total
remuneration£3,605 £1,011,775 £296,017£3,589 £1,139,007 £399,085£3,605£589,791 £172,676£3,589£637,324 £260,516£1,311,397£1,541,681£766,072£901,429£2,064,178£2,275,5117£1,214,999£1,333,709

The figures have been calculated as follows:
1. Base salary: amount earned for the year.
2. Benefits: the taxable value of annual benefits received in the year.
3. Pension: the value of the Company’s contribution during the year.
4. SIP: the face value at grant.
5.	DFSS: the value at vesting of shares vesting on performance over the three-year periods ending 31 December 2023 and 31 December
2022. For the 2023 figures, given that vesting occurs after the 2023 Directors’ Remuneration Report is finalised, the figures are basedon the average share price in the last three months of 2023 of £25.69. The 2022 figures have been trued up based on the actual
share price on vesting of £22.62 for Milena Mondini de Focatiis and £23.92 for Geraint Jones. For 2023, unfavourable movementsof -£348,942 and -£203,408 are included in the DFSS value, attributable to a decrease in the share price over the vesting period for
Milena Mondini de Focatiis and Geraint Jones, respectively. For 2022, an increase of £9,567 of the DFSS value is attributable to shareprice appreciation over the vesting period for Milena Mondini de Focatiis. For Geraint Jones, a decrease of £100,981 is attributable
to share price depreciation over the vesting period. For the purpose of clarity, it should be noted that the awards for the Executive
Directors were made at different points in 2020, which has led to the difference in these figures.

2022

Fees

Taxable benefits10

Fees

Taxable benefits10

1

Annette Court
Mike Rogers2
Karen Green
Jean Park3
Justine Roberts4
Andy Crossley5,6Michael Brierley6
Jayaprakasa Rangaswami7
Evelyn Bourke£82,136£270,042£113,000(£1,477)£106,045£188,000£152,000£85,955£95,000£879£889£2,205–£1,253£5,166£4,806£932£3,605£346,084–£103,750£153,000£87,875£170,667£140,000£93,583£95,000£1,739
–
£808
£130
£769
£1,918£992£528£1,659Bill Roberts8
Fiona Muldoon9£103,352£20,928£25,161–£75,000–£8,135–

Director

Summary of Shareholder Voting at the 2023 AGM

Annual Report on Remuneration Total number of votes% of votes cast

Total fees
2023

1 The 2023 fee for Annette Court is £82,136 (a cash fee of £57,495 and a share fee of £24,641) and is reflective of her leave date of 27 April 2023.
2 Mike Rogers was appointed as the Group Chair on 27 April 2023.
3 Jean Park’s fees for 2023 are reflective of her retiring from the board on 20 January 2023. Additionally, there was an overpayment of fees in 2022, which were corrected and paid back in 2023,
leading to the negative fee showing for 2023.
4 Justine Roberts joined the Group Remuneration Committee on 31 January 2023. In addition, Justine was confirmed as Senior Independent Director on a permanent basis effective 31 January 2023,
having undertaken the role on an interim basis since 22 February 2022.
5 Andy Crossley was appointed Chair of the Group Risk Committee effective from 23 October 2023. This followed a period as interim Chair since 22 February 2022.
6 The fees for Andy Crossley and Michael Brierley include additional fees in relation to their positions as Chair of the EUI Limited Board of Directors and Admiral Financial Services Limited Board of
Directors, respectively.
7 Jayaprakasa Rangaswami left the Group Remuneration Committee as an interim member on 31 January 2023.
8 The fee for Bill Roberts includes an additional fee in relation to his position as a NED of the Elephant Board of Directors, which he was appointed to on 1 February 2023.
9 Fiona Muldoon was appointed as an independent Non-Executive Director and member of the Group Audit Committee on 2 October 2023.
10 Taxable benefits represent those expense reimbursements relating to travel, accommodation and subsistence in connection with the attendance at Board, Subsidiary and Committee meetings
during the year, which are deemed by HMRC to be taxable. The amounts in the table are ‘grossed-up’ to include the UK tax paid by the Company on behalf of the Non-Executive Directors.
Non-taxable expense reimbursements have not been included in the table.

Incentive Outcomes for Financial Year to 31 December 2023 (audited)
DFSS Awards Vesting on Performance to 31 December 2023

On 23 September 2021, Milena Mondini de Focatiis was granted an award under the DFSS of 90,000 shares with a value at the dateof award of £3,109,500 (based on a grant date share price of £34.55).
On 23 September 2021, Geraint Jones was granted an award under the DFSS of 52,500 shares with a value at the date of awardof £1,813,875 (based on a grant date share price of £34.55).
Vesting of the award was based 80% on the achievement of financial performance measures and 20% on a scorecard of
non-financial measures.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

The fees paid to WTW for work supporting the Committee in 2023 (based on time and materials) totalled £75,818.

7.	Milena Mondini de Focatiis received an Anniversary award of £2,500 during 2022 which is included in the total remuneration number.
Anniversary payments are made to all colleagues who reach significant milestones in their employment with the Group.

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Annual Report on Remuneration
continued

Financial performance outcomes

DFSS bonus for 2023

Over this period there was solid return for our shareholders, with TSR slightly above median vs the FTSE350 benchmark, and with ROEof 41.60%. This is in contrast to an EPS growth of -37.7%, which was impacted by the very high EPS for 2020, which was impacted by the
pandemic period. The combination of these shareholder returns, and EPS growth contributes to a vesting of 37.20% for the financial
measures. The Committee reviewed this vesting outcome and concluded that it was appropriate.

For the customer and ESG strategic pillars, relevant quantitative data was used to assess performance and an outcome was determined.
For the strategy, the Board members derived a collective view on the progress against the strategic priorities.

The performance measures applicable to these awards are, EPS growth, TSR vs. FTSE 350 (excluding investment companies), and ROE,
weighted equally and all measured over the three-year period 1 January 2021 to 31 December 2023.

The table below details the Company’s performance against the performance range.

Details of the measures used in the scorecard and outcomes are summarised in the table below:

Performance range

Vesting Contribution(% of maximum)

ThresholdMaximum

Vesting schedule

Actual outturn

EPS growth

0.5% growth

36% growth

TSR vs. FTSE
350 (excluding
investmentcompanies)
Return on
Equity (ROE)MedianUpper quartile

25%

55%

-37.70%10% for achieving
threshold with straightline relationship to100% for maximum
performance
56th percentile
25% for median, withstraight line relationshipto 100% for upper
quartile
41.60%
25% for achieving
threshold with straightline relationship to100% for maximum
performance

0.00%

Outcomes(% out weighting for each category)Category

Metrics

Strategy

Overall scoring from the Board on scorecard ofmeasures around:• Progress towards Admiral 2.0• Diversification – existing non-motor productdevelopment (both top line and KPIs), in
particular Household and Lending• Diversification – development of new products• Progress towards defining motor
mobility strategy
Customer Feedback (NPS)
Customer Outcomes (CRMI)
People (Trust Index)
Diversity (Female representation at Senior level)
Inclusion (Inclusion survey results)

45.20%

66.40%
Customer
ESG

Vesting37.20%

Non-financial performance outcomes

The individual vesting contribution of the non-financial measures for Milena Mondini de Focatiis and Geraint Jones are set out in the tablebelow. These aggregated to an overall rating across the 3 years of 69.98% and 69.83% respectively and have a weighted outcome of
14.00% and 13.97%, respectively.
Further details of the scoring for 2023 can be seen on page 190.

Overall Vesting

The combined vesting outcomes for Milena Mondini de Focatiis and Geraint Jones can be seen in the below table.
Award Weighting
Milena Mondinide Focatiis

Financial performance measures:
EPS growth, TSR vs. FTSE 350(excluding investment companies)
and Return on Equity (ROE)
Non-financial performance measures
Total

Geraint Jones

Performance outcomes
Milena Mondinide Focatiis

80.00%
20.00%
100.00%

Geraint Jones

37.20%
69.98%

Vesting (% of maximum)
Milena Mondinide Focatiis

Geraint Jones

29.76%
69.83%

14.00%
43.76%

13.97%
43.73%The Committee reviewed the vesting outcomes and concluded that they were appropriate, and that no adjustments were required.
Based on performance and scorecard outcomes the total amount that will vest in September 2024 to Milena Mondini de Focatiis will
therefore be 43.76% (i.e., 39,384 shares), and the total amount that will vest to Geraint Jones will be 43.73% (i.e., 22,958 shares), subject totheir continued employment on the vesting date.
Vested DFSS awards are subject to clawback provisions. Events which may lead to the application of clawback are set out in the Group’s
Malus and Clawback Framework and include material financial misstatement, responsibility for conduct which results in significant losses,
material failure of risk management, misconduct, reputational damage or corporate failure.

Total
Overall scorecard
multiplier

TargetMaximum

16.50%

33.00%

8.50%
8.50%
9.00%
3.75%
3.75%
50.00%
100.00%17.00%
17.00%
18.00%
7.50%
7.50%
100.00%120.00%H1

H2

25.30%

9.98%
5.46%

9.44%
12.42%
9.00%
5.63%
7.50%

62.86%
105.14%69.29%
107.72%The Admiral Group Board makes an annual judgment based on its collective view of progress against the stated strategic measures.
The Board was satisfied that progress against strategic aims continued to be solid, and having reviewed business context and supporting
data, assessed this progress was worthy of 76.67% of maximum.
Customer outcome and feedback scoring is measured against entity set targets, with results assessed for each half year.
Customer outcomes for the UK business improved markedly in H2 2023 to 70% of maximum vs. 20% for H1 2023, as the pressure on
claims processing and staff numbers eased through the year. Customer feedback was generally steady through the year, with a slight fallin outcomes for Admiral Money and Elephant between the half years; Admiral Seguros’ outcomes for H2 fell below threshold, with 0%
outcome, compared with 55% for H1.
Trust Index scores are measured relative to the benchmark from the Great Place To Work® (GPTW) survey annually, with outcomes
determined mechanically relative to benchmark. For 2023, the Group’s score was up 1% compared with 2022, moving to 85% from 84%.
However, the GPTW benchmark score also increased by 1% from 2022 to 87% for 2023. This means that the score remains 2% below thebenchmark, giving an outcome of 50% for the 2023 performance year.
The Inclusion survey results are scored on a similar basis to the Trust Index, relative to the GPTW benchmark. Scores improved for 2023 incomparison to 2022, with all responses coming at or above the benchmark, meaning 100% outcome for this element.
The Diversity measure outcome based on mechanical scoring against set targets – is slightly down on last year due to headcountmovements, with a year-end position of 35.29%, which equates to an outcome of 75% of maximum.
The overall outcome of the scorecard was assessed as a 105.14% multiplier to the DFSS bonus paid for H1 2023 and a 107.72% multiplierto the DFSS bonus for H2 2023 (to be paid in 2024) for Milena Mondini de Focatiis and Geraint Jones.
In addition, the Executive Directors’ DFSS bonus is subject to a further risk adjustment (downwards only) to take account of risk events
considered to have a material customer, regulatory or financial impact.
During the year, and in addition to the above, the Committee took into account relevant trigger events as part of the established risk
adjustment process, and determined it was not appropriate to apply a downwards adjustment on that basis.
DFSS bonus payments are subject to malus and clawback provisions.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Performance measure

DFSS Vesting Component

In line with the Remuneration Policy, the Group paid a bonus to all holders of DFSS shares in 2023, which was equivalent to the dividend
payable on all outstanding DFSS shares awarded but not yet vested. The 2023 Bonus for Executive Directors also includes a potential +/20% adjustment to the DFSS bonus based on performance of a set of non-financial performance metrics, which for 2023 was grouped
into three categories: Strategy, customer and ESG.

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Annual Report on Remuneration
continued

Scheme Interests Granted in 2023 (audited)
DFSS

Setting the 2023 DFSS Financial Performance Ranges

On 28 September 2023, Milena Mondini de Focatiis was granted an award of 90,000 shares and Geraint Jones was granted an award of
52,500 shares under the DFSS. Using the share price on the date of the grant of £23.72, this is the equivalent to £2,134,800 or 290% of
Milena’s base salary and £1,245,300 or 287% of Geraint’s base salary respectively.
The three-year period over which performance will be measured is 1 January 2023 to 31 December 2025. The award is eligible to vest on
the third anniversary of the date of grant i.e., September 2025, subject to performance and to continued employment. Vested awards will
be subject to an additional two-year post-vest holding period.
The award will vest on EPS growth, TSR vs. FTSE 350 (excluding investment companies), ROE and a scorecard of strategic, customer
and other non-financial measures, inclusive of customer outcomes, ESG and strategic measures. There will also be the potential for
downwards adjustment subject to an assessment of risk events considered to have a material customer, regulatory or financial impact
over the course of the performance period. The performance conditions are summarised in the table below:
Performance range
Performance measure

WeightingThresholdStretchFinancial
Performance

Earnings per share (EPS) EPS growth overthe performance
period26.67%

Growthof 0%

Growthof 10%

Return on Equity (ROE)

26.67%

Total Shareholder
Return (TSR)

Non-financial Strategy
Performance

ROE over the
performance
periodTSR ranked ona relative basis
vs FTSE 350
comparator
group

Strategic
The Board’s
Assessment assessment ofprogress towards
strategic aims.

26.67%

6.60%

25%

Median

N/A

35

35%

N/A

N/A

48

Maximum Vesting

Growth 25% for reachingof 30% Threshold, 75% forachieving Stretch and100% for Maximum
performance.
45% 25% for reachingThreshold 75% forachieving Stretch and100% for Maximum
performance.
Top 25% for reaching
Quartile Threshold and100% for Maximum
performance.
N/A Vesting of between
0% and 100% basedon the outcome of theBoard’s assessment.
55 25% for reachingThreshold, 75% forachieving Stretch and100% for Maximum
performance.

The EPS measure was changed to an absolute EPS target range for the 2022 DFSS scheme because a growth target was consideredunsuitable due to the exceptionally high EPS achieved during 2021. Following feedback from shareholders, the proposed target for the2023 scheme has reverted to an EPS growth target.

Return on Equity

The 2023 scheme performance range has been set considering the Group’s strategic objective of long-term growth and diversification,
which is projected to increase equity and result in a flatter ROE over the next few years. Recognising shareholder feedback, the proposed
ROE targets for the 2023 scheme are more challenging than the 2022 scheme, with higher targets set for threshold, stretch andmaximum in the performance range, moving from 20-40% for 2022 to 25-45% for 2023.

Total Shareholder Return

TSR is assessed on relative performance and is therefore considered an appropriate measure of the Group’s return to shareholders.
Consequently, no changes to the measure were proposed for the 2023 scheme.

SIP

In March 2023, Milena Mondini de Focatiis and Geraint Jones were granted awards under the SIP of 95 shares with a face value of£1,787.43, which will mature on 13 March 2026, subject to continued employment.
In August 2023 Milena Mondini de Focatiis and Geraint Jones were granted awards under the SIP of 77 shares with a face value of£1,817.97, which will mature on 21 August 2026, subject to continued employment.

Exit Payments (audited)

No exit payments were made to an Executive Director during the year.

Payments to Past Directors (audited)

Following stepping down from the role of CEO on 31 December 2020, David Stevens has continued as an adviser to the Group in a parttime capacity. During 2023, he earned a salary of £60,090.
He also sits as a Non-Executive Director on the Board of Admiral Financial Services Limited for which he receives no fee.

Implementation of Remuneration Policy for 2024
Executive Directors
Salary, Pension and Benefits

The outcome of
the Group NPS,
weighted byentity customer
headcount.

6.80%

Diversity

The proportionof womenin seniormanagement
roles.

3.30%

30%

36%

40% 25% for reachingThreshold, 75% forachieving Stretch and100% for Maximum
performance.

Consideration was given to ensure these increases are fair relative to the proposed increases for employees across the Group for 2024.
The average pay review in 2024 is expected to be in the region of 5% as we continue to support our people through the impact of
the cost of living challenges. The benchmarking of the fixed elements of remuneration for Milena and Geraint indicated that theirsalaries were significantly lower than the lower quartile of peer companies across the FTSE 100 and major UK and European insurers.
The proposed salary increases are designed to align their salaries more towards the lower quartile of peer salaries.

Inclusion

The Group’s
Inclusion scoresfrom the GPTW
Survey, scored ona basis relative tothe benchmark.

3.30%

>10%
below
benchmarkN/A

At 20% for reaching
bench- Threshold, 40% formark >6% below benchmark
and 100% for Maximum
performance.

The Remuneration Committee notes the increase for Geraint Jones is above that which is expected for most colleagues. This increase
begins to address the competitiveness of his base pay relative to the lower quartile of the market. The Remuneration Committee intends
to increase his salary to the lower quartile of the market by the end of this policy period, by increments. The Remuneration Committee
will review his increase each year to ensure it is appropriate and moves his positioning as intended. This means that the increase for
Geraint may be ahead of those generally given to colleagues for the duration of the policy.

Customer Group NPS

ESG

Description

Earnings Per Share

DFSS awards are subject to malus and clawback provisions, which are set out in the Group’s Malus and Clawback Framework.

Salaries for the Executive Directors in 2024 have been determined in line with the proposed Remuneration Policy, subject to shareholder
approval. Milena Mondini de Focatiis’ salary was increased by 4.97% to £774,000 effective 1 January 2024 and Geraint Jones’ salary wasincreased by 7.27% to £465,000 effective 1 January 2024.

The Executive Directors will continue to participate in the Group Personal Pension Plan on a consistent basis with other employees, where
employee contributions are matched up to a maximum 6% of base salary. The Company will offer individuals a choice between pension
contributions and cash in lieu. Both Executive Directors will continue to receive benefits in line with the Policy. Both will benefit from theremoval of the cap of £15,000 on the absolute amount of contribution.

DFSS

The Committee intends to make awards under the DFSS to Milena Mondini de Focatiis and Geraint Jones in September 2024 of 95,000
and 55,000 shares, respectively. The Committee will confirm the size for each of the 2024 DFSS awards closer to the award date.
In determining whether the award size should differ from the above number of shares, the Committee will consider any large share pricechange over the prior year, and in particular whether this is due to external factors out of management control. The actual 2024 DFSS
awards will be disclosed in the 2024 Annual Report on Remuneration.
Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate GovernanceAward Element

The financial performance targets for the 2022 DFSS scheme were changed more significantly than in previous years due to the
exceptional earnings per share achieved during 2021 and the impact of the Group’s diversification strategy on ROE. The Remuneration
Committee chair met with a number of shareholders to hear their views. While understanding the unique circumstances of 2020 and
2021, most shareholders preferred reversion to the target setting approach of the past. The proposed 2023 DFSS financial performancetargets are set out below:

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Annual Report on Remuneration
continued

It is currently anticipated that the vesting of 2024 DFSS awards for Milena Mondini de Focatiis and Geraint Jones will continue to beassessed across the three-year performance period using an 75% performance weighting on EPS growth, TSR (measured on a relativebasis, equally split between the FTSE100 and a subset of insurance peers with substantial general insurance segments) and ROE, and a
25% weighting on a scorecard of strategic, customer and other non-financial metrics. The measures and performance ranges for the2024 DFSS are set out in the table below.
Performance range
Performance measure

WeightingThresholdStretchFinancial
Performance

Earnings per share (EPS) EPS growth overthe performance
period25.00%

0%35%

Return on Equity (ROE)ROE over the
performance
period25.00%TSR ranked ona relative basis
vs FTSE 100 andinsurance peer
comparatorgroup

25.00%

Strategic
The Board’s
Assessment assessment ofprogress towards
strategic aims.

8.25%

N/A

N/A

N/A Vesting of between 0%
and 100% based on theoutcome of the Board’s
assessment.

The outcome of
the Group NPS,
weighted byentity customer
headcount.

8.50%

35

48

55 25% for reachingThreshold, 75% forachieving Stretch and100% for Maximum
performance.

The proportionof womenin seniormanagement
roles.

2.06%

The Group’s
Inclusion scoresfrom the GPTW
Survey, scored ona basis relative tothe benchmark.

2.06%

tbc1

4.13%

Total Shareholder
Return (TSR)

Non-financial Strategy
Performance

Customer Group NPSESGDiversity

Inclusion

Carbonemissions

Description

30%

Median

30%

>10%
below
benchmark

tbc1

N/A%

N/A

36%

N/A

tbc1

Maximum Vesting

45% 25% for reachingThreshold, 75% forachieving Stretch and100% for Maximum
performance.
45% 25% for reachingThreshold, and 100% forMaximum performance.
Top 25% for reaching
Quartile Threshold and 100% forMaximum performance.

40% 25% for reachingThreshold, 75% forachieving Stretch and100% for Maximum
performance.
At bench- 25% for reaching
mark Threshold, 40% for >6%
below benchmark and100% for Maximum
performance.
tbc1 tbc1

1 Carbon emissions target to be confirmed, subject to work of base lining the Company’s carbon emissions as set out below.

The Committee intends that this set of financial measures applies to the DFSS awards made throughout this policy period, which is to say
the awards for 2024, 2025 and 2026.
It has been an aim of the Committee to include carbon emissions targets as part of the NFM scorecard to support the delivery of theGroup’s net zero targets. For the 2024 scheme, the non-financial measures will comprise, Group NPS, Diversity, Inclusion and carbon
emissions targets. This is subject to the work of base lining the Company’s carbon emissions which has been delayed due to the agency
having a back log.

Under the 2024 Policy, subject to shareholder approval, Milena Mondini de Focatiis and Geraint Jones will be eligible to participate in an
Annual Bonus in 2024. The bonus opportunity will be 0-200% of base pay for the Executive Directors, with an on-target award of 100%.
Performance will be based on the following measures and weightings:
MeasureFinancial Measures (75% of total)
ProfitTurnoverNon-financial Measures (25% of total)
Trust Index (people)
Customer Outcomes (CRMI)
Total

Weighting

67.5%
7.5%
12.5%
12.5%
100%

The profit measure will be profit before tax. Turnover is the total value of the revenue generated by the Group. Both Profit andTurnover values are reported in the ARA annually, and the values used to determine Annual Bonus outcomes will be consistent with thereported figures.
Customer Outcomes comprise customer measures and associated outcomes from the Group entities for the performance year, in which
outcomes are scored relative to entity-set performance ranges, with mechanical outcomes based on performance for each month.
The Trust Index is the average of employee responses to the core survey questions in the Great Place To Work® (“GPTW”) survey. This isscored relative to the benchmark of the world’s 25 best workplaces provided by GPTW.
The Remuneration Committee will follow a two-phase methodology for determining Executive Director Annual Bonus outcomes; theformulaic outcome against the measures detailed above followed by a holistic review of the extent to which that formulaic outcome isreflective of the overall performance of the Group.
Phase 1: Formulaic Review. At the end of the performance period, the final performance against each measure is assessed on astandalone basis. Data for the measures is taken from the Group’s financial reports which are reviewed by the Audit Committee andapproved by the Board.
Phase 2: Holistic Review. The Committee will then consider the overall fairness of the formulaic Group scorecard outcome in the context
of the business performance in the prevailing market conditions, which can be assessed against a non-exhaustive basket of measures
such as:• Executive Director personal performance• Dividend and/or share price performance• Impact on strategic delivery• Risk appetite adherence• Loss and/or combined ratio outcomes• Financial stability of the Group• Wider ESG performance• Inclusion and diversity measures• Delivery of technology milestones.
The Committee will be able to carefully determine a final bonus outcome for each Executive Director that is fair and appropriate for theyear’s performance and is in the best interests of shareholders.
A detailed summary of the factors used to determine bonus outcomes for the Executive Directors will be disclosed in the DRR following
the performance period.
In line with the position set out in the Policy, 40% of any bonus earned will be subject to deferral into Admiral Group shares for a periodof three years.
There will be the potential for downwards adjustment subject to an assessment of risk events considered to have a material customer,
regulatory or financial impact over the course of the performance period.

There will be the potential for downwards adjustment subject to an assessment of risk events considered to have a material customer,
regulatory or financial impact over the course of the performance period.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate GovernanceAward Element

Annual Bonus

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Annual Report on Remuneration
continued

Chair and Non-Executive Directors

Fees for the Board Chair and other Non-Executive Directors were reviewed in January 2024 having previously been last reviewed in 2023.
Increases were made, effective 1 January 2024, to reflect the increased time commitment of these roles.
2024 fee (p.a.)2023 fee (p.a.)£386,250£73,500£375,000£70,000£26,250£45,150£26,250£10,500£25,000£43,000£25,000£10,000£15,750£15,750£12,600£8,400£17,850£15,000£15,000£12,000£8,000£17,000

1 The 2023 fee shown is for the new Chair, Mike Rogers. The Board Chair does not receive any additional fees (e.g., for committee membership) as these are included in the overall Chair fee.
2 The fee payable for 2024 for Chairing the Group Risk Committee continues to include an additional fee in recognition of the increased time commitment required due to the Admiral Internal
Model process. It comprises a base fee of £26,250 and an additional fee of £18,900.

New Group Chair Arrangements

It was announced on 31 January 2023 that Mike Rogers was to be appointed as Admiral Group Chair subject to regulatory approvaland shareholder approval at the Admiral AGM. His fee was set at £375,000. In June 2023, Mike Rogers entered into a Share Acquisition
Agreement with the Group to purchase an annual amount equal to 30% of the gross amount of the fee, which will continue on thisbasis until he achieves a shareholding equal to 150% of his annual fee. This will be assessed annually, and the agreement contains a top
up mechanism; if the value of the purchased shares is less than 150% of the gross amount of the fee, the Chair will purchase additional
shares to maintain a shareholding of 150% of the gross fee.

CEO pay ratio

2023
2022

The table below shows the percentage change in dividends and total employee remuneration spend from the financial year ended
31 December 2022 to the financial year ended 31 December 2023.

Distribution to shareholders
Employee remuneration

2023
£m

2022
£m

% change

309
501

465
452

-34%
11%

The Directors are proposing a final dividend for the year ended 31 December 2023 of 52 pence per share bringing the total dividend for2023 to 103 pence per share (2022: 157 pence per share).

Pay for Performance

The following graph sets out a comparison of Total Shareholder Return (TSR) for Admiral Group plc shares with that of the FTSE 100 and
FTSE 350 indices, of which the Company is a constituent, over the ten-year period to 31 December 2023. The Directors consider these
to be the most appropriate indices against which the Company should be compared. TSR is defined as the percentage change over theperiod, assuming reinvestment of income.

10 year TSR performance: Admiral vs. FTSE100 and FTSE350 indices
Growth in value of a hypothetical £100 holding over the 10 years to 31 December 2023
£450
£400
£350
£300
£250
£200
£150
£100

The table below sets out the pay ratios for the CEO for the periods ended 31 December 2022 and 31 December 2023.
Year

Relative Importance of Spend on Pay

MethodOption A£50

Lower quartile

MedianUpper quartile

75:1
80:1

64:1
69:1

43:1
45:1

The lower quartile, median and upper quartile employees were determined using calculation methodology A which involved calculating
the actual full-time equivalent remuneration for all UK employees for 2023. From this analysis, three employees were then identified
as representing the 25th, 50th and 75th percentile of the UK employee population. Admiral chose this method as it is the preferredapproach of the Government and investor bodies and Admiral had the systems in place to apply this method. It is also consistent with theapproach used to calculate the ratios for 2018 to 2022.

£0
Dec-13

Dec-14

Dec-15

Dec-16

Dec-17Admiral

CEO

2014

2015

2016

Dec-18Dec-19FTSE 1002017

Dec-20Dec-21

2018

2019

2020

2021
MilenaMondini deFocatiis4

David
StevensDavid
StevensDavid
StevensDavid
Stevens

CEO single figureof Remuneration£393,260£397,688£148,776£246,023£395,019£403,662£413,724£421,285 £2,082,1914 £2,275,5115 £2,064,178

DFSS vestingoutcome(% of maximum)

n/a

n/a

n/a

n/a

n/a

n/a

n/a

2015

2016

2017

2018

2019

2020

2021

2022

2023

Kevin
Chidwick

Geraint
Jones3

Geraint
Jones

Geraint
Jones

Geraint
Jones

Geraint
Jones

Geraint
Jones

Geraint
Jones

Geraint
Jones

Geraint
Jones

Geraint
Jonesn/a

The employee pay levels for 2023 are detailed below:£1,204,164£363,551£539,704£599,139£1,184,445£1,461,813£1,773,303£2,329,513

DFSS vestingoutcome(% of maximum)

70.00%

85.00%

69.00%

50.00%
and 0.00%

74.20%

87.60%

88.8%

98.5%

P25 (lower quartile)P50 (median)

P75 (upper quartile)£21,392£27,382£26,164£32,050£42,000£48,397

1 The single figure of remuneration for the CEO includes actual salary and pension costs paid during 2023, in line with The Companies (Miscellaneous Reporting) regulations 2018. For other
employees, salary and pension costs are included on an FTE basis, in line with the legislation. While the basis of calculation differs between CEO and other employees, management considers this afair comparison of remuneration.

The pay ratio has fallen over the course of 2023. This is due to the slight fall in CEO pay in 2023, compared with 2022. The underlying data
for employee pay levels is broadly flat compared with 2022, despite an increase in population of c.9%, the majority of which will havebeen at more junior levels of the workforce.

2023

David
Stevens2

Incumbent

CEO

2022

MilenaMilenaMondini de Mondini deFocatiis
Focatiis

Henry
Henry
Engelhardt Engelhardt1

CFO single figureof Remuneration£737,326£2,064,178

Dec-23Henry
Engelhardt

Incumbent

The Committee has considered the pay data for the three employees identified and believes that it fairly reflects pay at the relevant
quartiles amongst our UK workforce. The three individuals identified were full time employees during the year. None received an
exceptional incentive award which would otherwise inflate their pay figures. No adjustments or assumptions were made by theCommittee with the total remuneration of these employees calculated in accordance with the methodology used to calculate the single
figure of the CEO. It should be noted that the lower quartile employee was in receipt of DFSS bonus and/or DFSS vesting in the year.

SalaryTotal Remuneration1

Dec-22

FTSE 350

CFO

2014

98.57%

59.24%

43.76%7£1,737,805 £1,333,7096 £1,214,999
93.08%

59.21%

43.73%7

1 Henry Engelhardt stepped down from the Board on 13 May 2016. His 2016 remuneration includes salary and benefits for his service as CEO.
2 David Stevens was appointed as the CEO on 13 May 2016. His 2016 remuneration includes salary, pension and benefits for his service as CEO.
3 Geraint Jones was appointed to the Board as CFO on 13 August 2014. His 2014 remuneration includes salary, pension and benefits for his service as CFO, his full year DFSS and his full year
DFSS bonus.
4 Milena Mondini de Focatiis was appointed as the CEO on 1 January 2021. Her 2021 remuneration includes salary, pension and benefits for her service as CEO.
5 This figure has been trued up since the 2022 report for the value of the 2020 DFSS based on the actual share price on vest of £22.43.
6 This figure has been trued up since the 2022 report for the value of the 2020 DFSS based on the actual share price on vest of £27.71.
7 43.76% of Milena Mondini de Focatiis’ and 43.73% of Geraint Jones’ 2021 DFSS award will vest in September 2024, subject to their continued employment on the vesting date.

There are no annual bonus outcomes to report in the table as the Admiral DFSS bonus is not structured as a traditional annual bonus
scheme and consequently a vesting outcome (as a percentage of maximum) is meaningless. This will be different for the 2024 Annual
Report with the new structure of Annual Bonus
Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Chair1
NED base fee
Additional fee for chairing:• Audit Committee• Group Risk Committee2• Remuneration Committee• Nomination and Governance Committee
Additional fee for membership of:• Audit Committee• Group Risk Committee• Remuneration Committee• Nomination and Governance Committee
Additional fee for being Senior Independent Director

A significant proportion of Milena Mondini de Focatiis’ remuneration is dependent on the Company’s performance and therefore it mayvary more materially, resulting in movements in the CEO pay ratio from year to year. However, the reward policies and structures applying
to the CEO are broadly aligned with those of the wider workforce and therefore consistent performance is likely to lead to a broadly
consistent CEO pay ratio.

196

197

Corporate Governance

Annual Report on Remuneration
continued

Annual change of each director’s pay compared to the annual change in average employee pay

1
2
3
4

The following table summarises the annual percentage change of each director’s remuneration compared to the annual percentagechange of the average remuneration of the company’s employees, calculated on a full-time equivalent basis.
Financial year-ended 31 December 2023

2023 (% change)

Director’s remuneration

Taxable benefits

DFSS bonus

3.00%
4.00%

(5.21%)(5.21%)(25.83%)(33.72%)(76.27%)
N/A
0.00%
8.92%
(100.97%)(8.15%)
20.68%
10.16%
8.57%
37.80%
N/A
9.01%(49.45%)
N/A
117.30%172.90%(100%)
76.52%
62.94%
169.33%384.46%209.30%N/A(5.31%)

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(43.58%)The percentage increases for the Non-Executive Director taxable benefits relate to expenses for travel, accommodation and subsistence.
The percentage change in employee base pay is a view across the whole group and is inclusive of colleague internal movements andpromotions throughout 2023.

Dilution

The Company has previously used newly issued shares to fund the DFSS and SIP shares. The Company has controls in place to ensure thatshares awarded under the incentive schemes operated by the Company within any rolling ten-year period do not exceed 10% of thenumber of ordinary shares in the capital of the Company in issue at the time of each award. It is currently anticipated that a combinationof attrition and actual vesting will result in dilution of less than 10%. As required by the rules of our share schemes, the Company will inany event ensure that the actual dilution level does not exceed 10% in any rolling ten-year period by funding of any vested (and future)share scheme awards as appropriate with market-purchased shares.
In 2024 the Company will change the way the employee share schemes are funded. Initially shares already assigned to the trust will be
used to fund the schemes and then the Company will move to a market purchase funding model (likely from 2026 onwards).

Interests held by Directors (audited)

The Company has adopted Executive Director shareholding guidelines whereby all Executive Directors are required to acquire and retain
a beneficial shareholding in the Company equal to at least 400% of base salary (excluding salary shares, where applicable), which canbe built up over a period of five years from the later of the introduction of the guidelines and the individual’s date of appointment.
Both Executive Directors meet the shareholding requirement.
As at 31 December 2023, the Directors held the following interests:
Shares held

Director’s remuneration

Subject to
Beneficiallycontinued
owned outright5 employment only

Milena Mondini de Focatiis4
Geraint Jones
Mike Rogers
Evelyn Bourke
Jayaprakasa Rangaswami
Justine Roberts
Andy Crossley
Michael Brierley
Karen Green
Bill Roberts
Fiona Muldoon
Admiral Group plc Annual Report and Accounts 2023

108,1541
143,8411
4,813
7,459
–
–
4,984
4,287
–
9,245
–

39,3842
22,9582

Subject toperformance
conditions

Shareholding
requirement(% of2023 salary)

Current
shareholding(% of2023 salary)

Requirementmet?3180,000
105,000

400%
400%

>400%
>400%

Yes
Yes

There have been no changes in the Directors’ holdings in the share capital of the Company, as set out in the table above, between
31 December 2023 and the date of this Report1.
None of the Directors had an interest in the shares of any subsidiary undertaking of the Company or in any significant contracts of
the Group.

Executive Directors’ Interests in Shares under the DFSS and SIP and salary share awards (audited)

At startof yearType

Milena Mondini de Focatiis
DFSS
85,000DFSS
90,000DFSS
90,000
DFSS
SIP
SIP
SIP
SIP
SIP
SIP
SIP
SIP
Geraint Jones
DFSS
DFSS
DFSS
DFSS

Awardedduring year––

Vested/maturedduring year

At endof yearPrice ataward (£)

Value ataward date(£)

50,354–––90,00090,00090,000£22.43£34.55£21.59£23.79£1,906,550£3,109,500£1,943,100£2,141,100£1,811£1,795£1,796£1,806£1,786£1,802£1,787£1,81890,000

Value at
31 December
2023
or maturity(£)

Date of
Award

Final
vesting/maturity
date£1,138,905£2,415,600£2,415,600£2,415,600

24/04/2020
23/09/2021
22/09/2022
28/09/2023

24/04/2023
23/09/2024
22/09/2025
28/09/2026

88
68
61
50
72
81
–
–

–
–
–
–
–
–
95
77

88
68
–
–
–
–
–
–

–
–
61
50
72
81
95
77

£20.58£26.40£29.44£36.11£24.81£22.25£18.82£23.6145,00052,50052,500–––52,50026,644–––52,50052,50052,500£27.71£34.55£21.59£23.79

2,500
2,500

–
–

2,500
2,500

–
–

£20.58£26.40£51,450£66,000£46,265 13/03/2020 13/03/2023£59,537 02/09/2020 02/09/2023

88
68
61
50
72
81
–
–

–
–
–
–
–
–
95
77

–
–
–
–
–
–
–
–

88
68
61
50
72
81
95
77

£20.58£26.40£29.44£36.11£24.81£22.25£18.82£23.61£1,811£1,795£1,796£1,806£1,786£1,802£1,787£1,818£1,683 13/03/2020 13/03/2023£1,612 02/09/2020 02/09/2023£1,637 12/03/2021 12/03/2024£1,342 01/09/2021 01/09/2024£1,932 11/03/2022 11/03/2025£2,174 24/08/2022 24/08/2025£2,550 13/03/2023 13/03/2026£2,067 21/08/2023 21/08/2026

Salary Shares
Salary Shares
SIP
SIP
SIP
SIP
SIP
SIP
SIP
SIP

£1,683 13/03/2020 13/03/2023£1,612 02/09/2020 02/09/2023£1,637 12/03/2021 12/03/2024£1,342 01/09/2021 01/09/2024£1,932 11/03/2022 11/03/2025£2,174 24/08/2022 24/08/2025£2,550 13/03/2023 13/03/2026£2,067 21/08/2023 21/08/2026£1,246,950£637,324 24/09/2020 24/09/2023£1,813,875 £1,409,100 23/09/2021 23/09/2024£1,133,475 £1,409,100 22/09/2022 22/09/2025£1,248,975 £1,409,100 28/09/2023 28/09/2026

1 The value at maturity relates only to shares vested.
2 For SIP and Salary Shares, the price at award reflects the average closing share price over the five days prior to the award date.

The closing price of Admiral shares on 29 December 2023 was £26.84 per share.
By order of the Board,
Evelyn Bourke
Chair of the Remuneration Committee
6 March 2024

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Executive Directors
Milena Mondini de Focatiis
Geraint Jones
Non-Executive Directors
Annette Court
Mike Rogers
Evelyn Bourke
Karen Green
Jean Park
Jayaprakasa Rangaswami
Justine Roberts
Andy Crossley
Michael BrierleyBill Roberts
Fiona Muldoon
Percentage change in employees’ remuneration

Base salary/fees

Total includes SIP shares both matured and awarded.
Total reflects shares from the 2021 DFSS award (performance test has been applied, and award is due to vest in September 2024).
The final column in the above table relates to meeting the current Remuneration Policy requirement of 400% of salary, based on a share price of £26.84 at closing on 29th December 2023.
Milena Mondini de Focatiis has 5 years from her appointment as Executive Director (11 August 2020) to meet the guideline.

198

199

Corporate GovernanceDirectors’ Report
The Directors present their Annual Report and audited Financial Statements for the year ended
31 December 2023.
Group results and dividends

The profit for the year, after tax but before dividends, amounted to £337.2 million (2022: £285.3 million, restated following the adoptionof IFRS 17). The Directors declared and paid dividends of £307.1 million during 2023 (2022: £658.3 million). Refer to note 12b forfurther details.

Following consideration of all of the above, the Directors have reasonable expectation that the Group has adequate resources tocontinue in operation for the foreseeable future, a period of not less than 12 months from the date of this report, and that it is therefore
appropriate to adopt the going concern basis in preparing the consolidated financial statements.
Further information is shown in the Viability Statement on page 109.

Share capital, AGM and related matters
Major shareholders

The Directors have proposed a final dividend of £156 million (52 pence per share). Subject to shareholders’ approval at the 2024 Annual
General Meeting (AGM), the final dividend will be paid on 7 June 2024 to shareholders on the register at the close of business on
10 May 2024.

Other than as stated below, as far as the Company is aware, there are no persons with significant direct or indirect holdings in the
Company. Information provided to the Company pursuant to Rule 5 of the FCA’s Disclosure and Transparency Rules (DTRs) is published on
a Regulatory Information Service and on the Company’s website.

Further information on the Group’s dividend policy is located in note 3 on page 236 and on page 37 of the Strategic Report.

The Company received notifications in accordance with the FCA’s DTRs of the following notifiable interests in the voting rights in the
Company’s issued share capital:

Research and development

Details of costs incurred in respect of research and development can be found in note 11c on page 297.
No political donations were made during the year.

Interest capitalised

No interest was capitalised by the Group during the year.

Significant contracts of material interest to shareholders

The Group considers its co-insurance and reinsurance contracts to be significant and of material interest to shareholders. A number of theGroup’s contractual arrangements with reinsurers include features that, in certain scenarios, allow for reinsurers to recover losses incurred
to date. The overall impact of such scenarios would not lead to an overall net economic outflow from the Group. No other contractual
arrangements are considered to be significant to the running of the Group’s business.

Financial instruments

The objectives and policies for managing risks in relation to financial instruments held by the Group are set out in note 2 to the
Financial Statements.

Directors and their interests

The present Directors of the Company are shown on page 118 of this Report, whilst Directors’ interests in the share capital of theCompany are set out in the Remuneration Report on page 196. A list of Directors in the financial period to 31 December 2023 is shown on
page 142.

Going concern

Under Provision 30 of the 2018 UK Corporate Governance Code, the Board confirms that it considers the going concern basis ofaccounting appropriate. In considering this requirement, the Directors have taken into account the factors below.
In particular, as part of this assessment the Board considered updated projections of performance and profitability a number of times
throughout the year, with some key highlights including:• The Group’s profit projections, including:– Changes in premium rates and projected policy volumes across the Group’s insurance businesses– The impacts of the continued elevated inflationary environment on the cost of settling claims across all of the Group’s
insurance businesses– The return of motor claims frequency towards pre-pandemic levels– Projected trends in other revenue generated by the Group’s insurance business from fees and the sale of ancillary products

Mawer Investment Management Ltd.
Henry Engelhardt & Diane Briere de I’Isle
BlackRock Inc.
Moondance Foundation
Rothschild and Co Wealth Management UK Limited
Vanguard Group Holdings
FMR LLCDavid & Heather Stevens
Münchener Rückversicherungs- Gesellschaft AG

Number of Shares% voting rights

21,727,558
20,277,027
17,849,752
15,400,000
15,322,698
12,560,052
11,711,392
8,422,950
5,297,781

7.2%
6.7%
5.8%
5.1%
5.0%
4.1%
3.9%
2.8%
1.7%

The percentage of voting rights detailed above were calculated at the time the relevant disclosures were made in accordance with the
DTRs. The DTRs require notification when the percentage voting rights (through shares and financial instruments) held by a shareholder
reaches, exceeds or falls below an applicable threshold. The information provided below was correct at the date of notification; however,the date the notification was received may not have been within the current financial year. It should be noted that these holdings arelikely to have changed since the Company was notified. However, notification of any change is not required until the next notifiable
threshold is crossed.
Notifications received by the Company in accordance with the FCA’s DTRs in the period from 31 December 2023 to 6 March 2024
were as follows:

Shareholder

Rothschild and Co Wealth Management UK Limited
Rothschild and Co Wealth Management UK Limited
Rothschild and Co Wealth Management UK Limited
Rothschild and Co Wealth Management UK Limited
Rothschild and Co Wealth Management UK Limited
Rothschild and Co Wealth Management UK Limited

Date of notification

Number of sharesas at date of
notification% of voting rights
as at the date of
notification

3 January 2024
5 January 2024
26 January 2024
22 February 2024
28 February 2024
6 March 2024

15,310,942
15,316,355
15,296,742
15,320,057
15,315,212
15,321,078

4.99%
5.00%
4.99%
5.00%
4.99%
5.00%

There are no people who hold shares carrying special rights with regard to control of the Company.

– Projected contributions to profit from businesses other than the UK Car insurance business

Further information on the rights attaching to shares under the employee share schemes are provided in the Remuneration Report.

– Expected trends in unemployment in the context of credit risks and the growth of the Group’s consumer lending business

Shares held in Employee Benefit Trust (EBT)– The More Than acquisition due to complete in the first half of 2024
– Assessment of wider market risk and changes in investment performance given the changing interest rates toward the end of 2023.
• The Group’s solvency position, which has been closely monitored through periods of market volatility. The Group continues to maintaina strong solvency position above target levels

The EBT does not use its voting rights in respect of the shares it holds in the EBT at general meetings, however, it may choose to do so if
recommended by the Company via a letter of wishes. If any offer is made to shareholders to acquire their shares, the trustee will not be
obliged to accept or reject the offer in respect of any shares which are at that time subject to subsisting awards, but will have regard to theinterests of the award holders and will have power to consult them to obtain their views on the offer. Subject to the above, the trustee may
take action with respect to any offer it thinks fair. The trustee has waived its right to dividends on the shares held in the trust.

• The adequacy of the Group’s liquidity position after considering all of the factors noted above• The results of business plan scenarios and stress tests on the projected profitability, solvency and liquidity positions including theimpact of severe downside scenarios that assume severe adverse economic, credit and trading stresses• The regulatory environment, focusing on regulatory guidance issued by the FCA and the PRA in the UK and regular communications
between management and regulators• A review of the Company’s principal risks and uncertainties and the assessment of emerging risks, including climate related risks.
Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Political donations

As at 31 December 2023
Shareholder

200

201

Corporate GovernanceDirectors’ Reportcontinued

Additional information for shareholders

The Board is of the view that it is in the best interests of the Group to attract and retain the services of the most able and experienced
Directors by offering competitive terms of engagement, including the granting of such indemnities. Neither the Deed Poll of Indemnity
nor insurance cover would provide any coverage in the event that a Director is proved to have acted fraudulently or dishonestly.

At 31 December 2023, the Company’s issued share capital comprised a single class of shares referred to as ordinary shares. Details of theshare capital and shares issued during the year can be found in note 12d. The rights and obligations attached to the Company’s ordinary
shares are set out in the Articles of Association of the Company, copies of which can be obtained from Companies House.

Annual General Meeting (AGM)

If a poll is called at a general meeting, every member present in person or by proxy and entitled to vote shall have one vote for every ordinary
share held. The notice of the general meeting specifies deadlines for exercising voting rights either by proxy notice or present in person orby proxy in relation to resolutions to be passed at general meeting. All proxy votes are counted and the numbers for, against or withheld in
relation to each resolution are announced at the Annual General Meeting and published on the Company’s website after the meeting.

Reporting, accountability and audit
UK Corporate Governance CodeThe following provides the additional information required for shareholders in accordance with the Takeovers Directive and therespective UK law.

There are no restrictions on the transfer of ordinary shares in the Company other than:• Certain restrictions may from time to time be imposed by laws and regulations (for example, insider trading laws)

The Company has not purchased any of its own shares during the period.
There are no agreements between the Company and its Directors or employees providing for compensation for loss of office or
employment (whether through resignation, purported redundancy or otherwise) that occur because of a takeover bid.
There are a number of agreements that alter or terminate upon a change of control of the Company following a takeover bid, such ascommercial contracts (entered into in the normal course of business). None are considered to be significant in terms of their impact on
the business of the Group as a whole.

Powers of the Company Directors

The Directors are responsible for managing the business of the Company and may exercise all powers of the Company subject tothe provisions of relevant statutes, to any directions given by special resolution and to the Company’s Memorandum and Articles.
The Articles, for example, contain specific provisions and restrictions concerning the Company’s power to borrow money. Powers relating
to the issuing of new shares and buyback of shares are also included in the Articles and such authorities are renewed by shareholders at
the Annual General Meeting each year.

Power to issue shares

At the last Annual General Meeting, held on 27 April 2023, authority was given to the Directors to allot unissued relevant securities in the
Company up to a maximum nominal amount of £202,157 representing the Investment Association’s Guidelines limit of approximately
two thirds of the issued share capital as at 17 March 2023. This authority expires on the date of the Annual General Meeting to be held on
25 April 2024 and the Directors will seek to renew this authority for the following year.

Admiral is subject to the UK Corporate Governance Code (the Code), published by the Financial Reporting Council (FRC) in July 2018 andavailable on their website, www.frc.org.uk. The Company’s Annual Report and Accounts, taken as a whole, addresses the requirementsof the 2018 Code.
The Code was applicable for the Group during the year under review, and the Group has applied the principles and complied with theprovisions of the Code except with regard to non-compliance with provision 19 for part of the year from 1 January 2023 to 27 April
2023, from this date to the 31 December 2023 the Company was in full compliance with the requirements of the Code, as set out in the
Corporate Governance Report on page 113.
Admiral has reviewed the changes to the revised Code which the FRC published on 22 January 2024 and intends to be effective forcompanies with financial reporting periods beginning on or after 1 January 2025. Admiral intends to be fully compliant with the revised
Code from 1 January 2025 and will disclose the measures introduced to ensure compliance with the new Code in the 2025 Annual Reportand Accounts to be published in 2026.
The Directors confirm that the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides theinformation necessary for shareholders to assess the Company’s position and performance, business model and strategy.
The Board is ultimately responsible for the Group’s system of risk management and internal control and, through the Audit Committee,
has reviewed the effectiveness of the Group’s internal control and risk management arrangements relating to the financial reporting
process and the principal risks facing the business. The Board is satisfied that the Group’s internal control and risk management
framework is prudent and effective and that, through the Audit Committee and Group Risk Committee, risk can be assessed, managed
and assurance given that all material controls are reviewed and monitored.
Information on the composition and operation of the Board and its Committees is located in the following sections:• Corporate Governance Report on page 113 in respect of the Board• Nomination and Governance Committee Report on page 146• Audit Committee Report on pages 161• Group Risk Committee Report on page 168

A further special resolution passed at that meeting granted authority to the Directors to allot equity securities in the Company (up toa maximum of 5% of the issued share capital of the Company) for cash, without regard to the pre-emption provisions of the Companies
Act 2006. This authority also expires on the date of the Annual General Meeting to be held on 25 April 2024 and the Directors will seek torenew this authority for the following year.

• Remuneration Committee Report on page 185.

The Board is aware of the principles published by the Pre-Emption Group in November 2022, and their template resolutions published on
4 November 2022, allowing a Company the ability to seek authority over a further 10% of the issued ordinary share capital on a non-preemptive basis subject to certain conditions. The Board has set out its proposal, in line with the Pre-Emption Group principles, regarding its
requested authority to allot shares in the Notice of Meeting for the 2024 AGM.

The Group has several branches located in Canada, India, France and Italy, through its subsidiary structure. Further details of theCompany’s subsidiaries, associated undertakings and branches are contained in note 12e.

Appointments of Directors

The Company’s Articles of Association (the Articles) give the Directors power to appoint and replace Directors. Under the Terms ofReference of the Group Nomination and Governance Committee, any appointment must be recommended by the Group Nomination
and Governance Committee for approval by the Board of Directors. The Articles provide that all Directors will retire and offer themselves
for re-election at each Annual General Meeting, in accordance with the UK Corporate Governance Code and the Company’s current
practice. Therefore, all Directors will be submitting themselves for either election or re-election by shareholders at the forthcoming AGM.

Articles of Association

The Articles may only be amended by special resolution of the shareholders.

Directors’ indemnities and insurance

Directors and Officers insurance cover is in place for all Directors to provide cover against certain acts or omissions on behalf of theCompany. A Deed Poll of Indemnity was executed in October 2015, indemnifying each of the Directors, and Company Secretary, in
relation to certain losses and liabilities that they might incur in the course of acting as Directors of the Company. The Deed Poll of
Indemnity is categorised as qualifying third party provisions as defined by Section 234 of the Companies Act 2006 and remains in force
for all past and present Directors of the Company.

Admiral Group plc Annual Report and Accounts 2023

The Group’s gender diversity information for the financial year, together with an explanation of the policies related to diversity, are set
out in the Strategic Report on page 62 and in the Nomination and Governance Committee Report on page 154.

Branches

Directors’ responsibilities

The Directors are responsible for preparing the Annual Report and the Group and Parent Company financial statements in accordancewith applicable law and regulations.
Company law requires the Directors to prepare Group and Parent Company financial statements for each financial year. Under that law
they are required to prepare the Group Financial Statements in accordance with United Kingdom adopted international accounting
standards and applicable law and have elected to prepare the parent Company financial statements in accordance with UK accounting
standards and applicable law, including FRS 101 Reduced Disclosure Framework.
Under Company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair viewof the state of affairs of the Group and Parent Company and of their profit or loss for that period. In preparing each of the Group andParent Company financial statements, the Directors are required to:• Select suitable accounting policies and then apply them consistently• Make judgements and accounting estimates that are reasonable and prudent• For the Group financial statements, state whether they have been prepared in accordance with IFRS as adopted by the UK

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance• Pursuant to the Listing Rules of the FCA whereby certain employees and Directors of the Company require the approval of theCompany to deal in the Company’s securities.

It is proposed that the next AGM be held at Tŷ Admiral, David Street, Cardiff, CF10 2EH on Thursday 25 April 2024, notice of which will beavailable to shareholders alongside, or at a date near to the publication of the Annual Report.

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Corporate GovernanceDirectors’ Reportcontinued• For the Parent Company financial statements, state whether applicable UK accounting standards, including FRS 101 Reduced
Disclosure Framework, have been followed, subject to any material departures disclosed and explained in the Parent Company
financial statements

Information/disclosure• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue
in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Company’stransactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and enable them toensure that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as arereasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’
Remuneration Report and Corporate Governance Statement that complies with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the
Company’s website.

Responsibility statement

The Directors confirm that to the best of their knowledge:• The financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of theassets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as awhole; and• The Directors’ Report and the Strategic Report include a fair review of the development and performance of the business and theposition of the Company, and the undertakings included in the consolidation taken as a whole, together with a description of theprincipal risks and uncertainties.

Disclosure of information to auditor

The Directors who held office at the date of approval of this Directors’ Report confirm that, so far as they are each aware, there is no
relevant audit information of which the Company’s auditor is unaware; and each Director has taken all the steps that they ought to havetaken as a Director to make themselves aware of any relevant audit information and to establish that the Company’s auditor is aware ofthat information.

Auditor

Following the Board’s approval of the Audit Committee’s recommendation to reappoint the Company’s auditor, Deloitte LLP has
indicated willingness to continue in office and resolutions to reappoint it and to authorise the Directors to fix its remuneration will be
proposed at the AGM.

Index of disclosures

Information included in the Strategic Report: As permitted by legislation, some matters required to be included in the Directors’ Report
have instead been included in the Strategic Report as the Board considers them to be of strategic importance. These are identified withan asterix (*) in the table below.

Information/disclosure
Agreement for loss of office or employment on takeover
Allotment of shares for cash pursuant to Group employee share schemes*
Amendment of the Articles of Association
Annual General Meeting (AGM)
Appointment and replacement of Directors
Audit Committee Report
Business review
Business model
Directors in office during the year
Significant agreements impacted by a change of control
Changes in borrowings
Charitable donations
Climate related disclosures, including GHG emissions and energy consumption
Corporate Governance Report
CultureAdmiral Group plc Annual Report and Accounts 2023

Pages

181, 200
299
200
201
200, 146
161
32
08
118, 142200
235, 275
21, 6671
113
132

Details of long-term incentive schemes*
Directors’ insurance and indemnities
Directors’ inductions and training
Directors’ interests in shares
Directors’ Responsibilities Statement
Directors’ service contracts
Disclosure of information to the Auditor
Diversity disclosures
Dividends
Engagement with suppliers, customers and others in a business relationship with the Company*
Employee engagement
Employees with disabilities
Fair, balanced and understandable
Financial risk management
Financial instruments
Future developments of the businessGoing Concern Statement
Group Risk Committee
Independent Auditors’ Report
Interest capitalised by the Group*
Nomination and Governance Committee Report
Non-Financial Information Statement
Political donations and expenditure
Post-balance sheet events
Powers for the Company to issue or buy back its sharesPowers of Directors
Principal risks and uncertainties
Related undertakings
Reappointment of Auditor
Remuneration Committee Report
Rights attaching to shares
Risk management and internal control
s172 Statement
Share capital
Shareholder engagement
Shareholder waiver of dividends and future dividends*
Significant related party agreements*
Significant shareholders
Statement of compliance with the UK Corporate Governance CodeStrategic Report
Sustainability Report
Viability Statement
Voting rights

172
200
146
196
201
181
202
154
198, 299
87
62, 8962201
228198, 268
22
198, 306
168
205
205
146
96
198
301
200
200
98
300
185
185
199, 298
98, 161, 201
87
199, 298
90, 136
199, 299
200, 301, 312
199
125, 201
14
56
109
200

* Information required to be disclosed in the Annual Report under Listing Rule 9.8.4R is marked with an asterisk (*).

Approved by the Board of Directors and signed on its behalf by

Dan Caunt			
Company Secretary			

Geraint Jones
Chief Financial Officer

6 March 2024			

6 March 2024

Admiral Group plc Annual Report and Accounts 2023

Corporate Governance

Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation inother jurisdictions.

Pages

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Financial Statements

Independent Auditor’s Reportto the members of Admiral Group plc

Report on the audit of the Financial Statements
1. Opinion
In our opinion:

FINANCIALSTATEMENTS• the financial statements of Admiral Group plc (the ‘Parent Company’) and its subsidiaries (the ‘Group’) give a true and fair viewof the state of the Group’s and of the Parent Company’s affairs as at 31 December 2023 and of the Group’s profit for the year
then ended;• the Group financial statements have been properly prepared in accordance with United Kingdom adopted international
accounting standards;• the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework”; and• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:• the Consolidated and Parent Company Income Statements;• the Consolidated and Parent Company Statements of Comprehensive Income;In this section

Additional Information

316 Glossary• the Consolidated Cash Flow Statement;• the Consolidated and Parent Company Statements of Changes in Equity;• the related notes 1 to 13 to the Group financial statements, excluding the capital adequacy disclosures in note 3.2.3 calculated inaccordance with the Solvency II regime which are marked as unaudited; and• the related notes 1 to 14 to the Parent Company financial statements.
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law andUnited Kingdom adopted international accounting standards. The financial reporting framework that has been applied in the preparationof the Parent Company financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced
Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).

2. Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of
our report.
We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our auditof the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public
interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services
provided to the Group for the year are disclosed in note 9c to the financial statements. We confirm that we have not provided any
non-audit services prohibited by the FRC’s Ethical Standard to the Group or the Parent Company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Admiral Group plc Annual Report and Accounts 2023

Financial Statements

205 Independent Auditor’s Report
216 Consolidated Income Statement
217 Consolidated Statement of Comprehensive Income
218 Consolidated Statement of Financial Position
219 Consolidated Cashflow Statement
220 Consolidated Statement of Changes in Equity
221 Notes to the Consolidated Financial Statements
303 Appendix to the Group Financial Statements (unaudited)
305 Parent Company Financial Statements
306	Notes to the Parent Company Financial Statements• the Consolidated and Parent Company Statements of Financial Position;

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Independent Auditor’s Reportto the members of Admiral Group plc

continued

3. Summary of our audit approach
Key audit matters

The key audit matters that we identified in the current year were:• Valuation of UK motor large bodily injury reserves within the liability for incurred claims;• Inflation assumptions applied to UK motor bodily injury claims within the liability for incurred claims; and• Initial adoption of IFRS 17 Insurance Contracts.
Within this report, key audit matters are identified as follows:
Newly identified
Increased level of risk

5. Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statementsof the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we
identified. These matters included those which had the greatest effect on: the overall audit strategy; the allocation of resources in theaudit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, andwe do not provide a separate opinion on these matters.

5.1. Valuation of UK motor large bodily injury reserves within the liability for incurred claims
Key audit
matter description

Similar level of risk
Decreased level of risk
Materiality

The materiality that we used for the Group financial statements was £22.1 million which was determinedon the basis of 5% of profit before tax (‘PBT’).

Scoping

We identified five reporting components which we determined should be subject to full scope audits
this year.

Specifically, our significant areas of focus are the Group’s selection of the frequency and severity
assumptions for large bodily injury claims arising in the UK motor insurance business. These particular
claims result in higher individual claims reserves and are more judgmental, in terms of thedevelopment of the ultimate losses, due to the longer-term nature of the Group’s exposure (compared
to property damage claims). Therefore, we determine this as a key audit matter.

Specific audit procedures were completed in respect of five further components which, although notfinancially significant, did present some specific audit risks which needed to be addressed.

Significant changes
in our approach

IFRS 17 became effective on 1 January 2023, thus we have also identified the impact of the Group’s
adoption of IFRS 17 on the restated comparative information presented for the year ended 31 December
2022 as an additional key audit matter, as this is a new and complex accounting standard which has
required considerable judgment and interpretation in its implementation.

Refer to page 164 in the Audit Committee report where this is included as a significant issue and note
3 and note 5f in the financial statements which refer to this matter.
How the scope of ouraudit responded to the
key audit matter

We obtained and inspected the reports from management and involved our internal actuarial
specialists to support our assessment of management’s frequency and severity assumptions for UK
motor insurance business.

4. Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.

We benchmarked the frequency assumptions against available industry data and considered thecomparison in the context of the risk profile of the Group’s portfolio and the year-on-year changes inthese assumptions.

Our evaluation of the directors’ assessment of the Group’s and Parent Company’s ability to continue to adopt the going concern basis ofaccounting included:

We undertook a graphical analysis of incurred development patterns to assess and challenge theseverity assumptions. We benchmarked the average cost per claim assumptions against available
third-party industry data in the context of this incurred development analysis.

• We obtained an understanding of the relevant controls relating to the Board’s going concern assessment process;• We inspected the Group ORSA (‘Own Risk and Solvency Assessment’) to support our understanding of the key risks faced by the Group,
its ability to continue as a going concern, and the longer-term viability of the Group;• We evaluated management’s going concern assessment in light of the current macroeconomic uncertainties;• We considered the available cash and cash equivalents balance at year-end and assessed how this is forecast to fluctuate over a periodof at least 12 months from the date of signing the financial statements in line with management’s forecast performance. This analysis
included assessing the amount of headroom in the forecasts considering cash and regulatory liquidity requirements;

We obtained an understanding, and tested the relevant controls governing the selection of thefrequency and severity actuarial assumptions identified for large bodily injury claims in the UK
motor insurance business, as well as the wider process supporting the valuation of the liability forincurred claims.

Key observations

Based on the procedures described above, we concluded that the selection of the frequency andseverity assumptions for large bodily injury claims arising in the UK motor insurance business within
the gross liability for incurred claims is appropriate.

• We assessed management’s reverse stress testing over the projected profitability, solvency and liquidity positions and the likelihood of
the various scenarios that could adversely impact upon the Group’s liquidity and solvency headroom; and• We obtained and inspected correspondence between the Group and its regulators, as well as reviewed the Group Risk Committee
meeting minutes, to identify any items of interest which could potentially indicate either non-compliance with regulation or potential
litigation or regulatory action held against the Group.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group's and Parent Company’s ability to continue as a going concern for aperiod of at least twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add or draw
attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to
adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of
this report.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

The components within the scope of our audit procedures account for 98% of the Group’s profit before tax,
99% of the Group’s revenue and 99% of the Group’s net assets.

The Group’s gross liability for incurred claims totalled £3,452m as at 31 December 2023 (31 December
2022: £3,174m). Judgments made in determining the valuation of claims reserves are by far the mostsignificant in terms of their impact on the Group’s financial position. Setting these claims reserves is
an inherently subjective exercise and small changes in underlying assumptions may have a material
impact on the overall year-end result reported.

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Independent Auditor’s Reportto the members of Admiral Group plc

continued

5.2. Inflation assumptions applied to UK motor bodily injury claims within the liability for incurred claims

5.3. Initial adoption of IFRS 17 Insurance Contracts

Key audit
matter description

Key audit
matter description

Given the ongoing uncertainty associated with the UK’s current and future inflationary environment,
the impact of future inflation assumptions requires the application of significant judgment which
has a material impact on the liability for incurred claims. In the current macroeconomic environment,
there is a greater level of uncertainty associated with projecting future assumptions than in previous
periods owing to the uncertainty in forecast future inflation and the extent to which this will impact
claims inflation.
The most significant impact of such inflation assumptions relates to bodily injury claims given therelatively low implicit inflation in historical data trends and the time it takes for such claims to develop
and settle. Therefore, the effect of such inflationary pressures will not be observable in the claims
data for some time, unlike for damage claims where the impact of inflation is already arising due
to inflationary trends in historical data, their faster development, and is more closely linked to theConsumer Price Index (‘CPI’).

The application of IFRS 17 to the Group’s insurance contracts requires significant management
judgment in developing the valuation methodology, defining the related accounting policies andimplementing those policies appropriately within the relevant calculation models. The judgments,
policy choices and elections made have the potential to significantly impact the financial results of theGroup and its key performance indicators.

Our audit work to respond to the specific risks associated with inflationary assumptions in the UK
motor bodily injury claims reserves required significant input from our actuarial specialists and was thefocus of a significant amount of audit effort therefore, we considered this a key audit matter.

We obtained an understanding of and tested relevant controls relating to the key inflation
assumptions identified.
We obtained and inspected the reports from both management and with involvement of our actuarial
specialists we assessed the key inflation assumptions.

Refer to page 165 in the Audit Committee report where this is included as a significant issue and note
1 in the financial statements which sets out the qualitative and quantitative IFRS 17 information,
including the relevant recognition and measurement requirements of the Standards, and theaccounting policies applied on its adoption.

We benchmarked management’s inflation assumptions against available industry data and considered
the results of this comparison.
We inspected and challenged the methodology applied in determining the impact of excess inflationon the year-end liability for incurred claims, including challenging the future inflation assumptions
with reference to current and future expectations of market wage inflation.
Key observations

Based on the procedures described above, we concluded that the inflation assumptions applied to UK
motor bodily injury claims reserves are appropriate.

How the scope of ouraudit responded to the
key audit matterTo respond to the key audit matter we have performed the following:• Obtained an understanding of and tested the relevant controls governing the restated 2022
comparative financial information and, in particular, those controls over the assumptions andmethodologies applied in the new IFRS 17 models in valuing the liability for incurred claims;• Evaluated the appropriateness of key technical accounting decisions, judgments, assumptions
and elections made in determining the impacts to assess compliance with the requirements ofthe standard;• With the involvement of our internal actuarial specialists we performed procedures to assess theGroup’s implementation of the defined methodology and IFRS 17 calculation models;• We evaluated the data and other information required for the IFRS 17 calculations, including thedata inputs to the calculation of the fulfilment cashflows and the risk adjustment within the liability
for incurred claims; and• We tested the new disclosures and the disclosures related to the transition impact and reconciled
the disclosures to underlying accounting records and supporting data.

Key observations

Admiral Group plc Annual Report and Accounts 2023

Based on the procedures described above, we are satisfied that the Group’s insurance contracts areappropriately recognised under IFRS 17.

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

We have concluded that the impact of the adoption of IFRS 17 on the restated 2022 comparative
financial information forms a key audit matter as this is a new and complex accounting standard which
has required considerable judgment and interpretation in its implementation. Furthermore, the newstandard has introduced a number of significant changes, including new requirements regarding therecognition and measurement of insurance contracts and related account balances and classes oftransactions. In order to meet the requirements of the new standard, significant changes have also
been made to the systems, processes and controls with effect from 1 January 2023. This resulted in an
increased extent of audit effort, including the involvement of our internal actuarial and IT specialists.

Refer to page 165 in the Audit Committee report where this is included as a significant issue and note
3 and note 5f in the financial statements which refer to this matter.
How the scope of ouraudit responded to the
key audit matterWith effect from 1 January 2023, the Group transitioned to IFRS 17: Insurance Contracts which replaced
the existing standard for insurance contracts, IFRS 4. The new standard establishes the principles
for the recognition, measurement, presentation and disclosure of insurance contracts which aresignificantly different to those required under IFRS 4. The Group’s financial statements for the year
ended 31 December 2023 are the Group’s first set of financial statements to include the adoptionof the new standard. As a result, comparative financial information has been restated from 1 January2022, with the first-time adoption of IFRS 17 resulting in a decrease in equity of £125.6 million upontransition as shown in the Consolidated Statement of Changes in Equity.

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Independent Auditor’s Reportto the members of Admiral Group plc

continued

6. Our application of materiality
6.1. Materiality

7. An overview of the scope of our audit
7.1. Identification and scoping of components

Based on our professional judgment, we determined materiality for the financial statements as a whole as follows:

Each of these significant components was subjected to a full-scope audit, completed to individual component materiality levels
which ranged from £3.2 million to £17.6 million (2022: £2.9 million to £22.2 million) dependent upon the relative significance of eachindividual component.

We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisionsof a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work
and in evaluating the results of our work.
Group financial statements

Parent Company financial statements

Materiality£22.1 million (2022: £23.4 million)£4.4 million (2022: £4.2 million)

Basis for determining
materiality

5% of profit before tax(2022: 5% of profit before tax).

3% of two-year average of net assets(2022: 3% of two-year average of net assets).

Rationale for thebenchmark applied

We consider profit before tax to be the criticalbenchmark of the performance of the Group andconsider this benchmark to be suitable having
compared to other benchmarks. Our materiality
equates to 1% of insurance revenue and 2%of equity (2022: 1% of insurance revenue and2% of equity).

The Parent Company primarily exists as theholding company which carries investments
in Group subsidiaries and is the issuer of listed
securities. We consider that net assets is thecritical benchmark for the Parent Company.
The measure uses a two-year average of net
assets which we consider appropriate given theinherent volatility associated with the timing ofdividend payments.

The five (2022: five) significant components of the Group which were identified in our audit planning are Admiral Insurance (Gibraltar)
Limited, Admiral Insurance Company Limited, EUI Limited, Admiral Europe Compañía de Seguros, and the Parent Company, AdmiralGroup plc.

We have completed specific audit procedures, designed to address specific audit risks, for five (2022: eight) further components.
The components within the scope of our audit procedures account for 98% (2022: 98%) of the Group’s profit before tax, 99%(2022: 99%) of the Group’s revenue and 99% (2022: 99%) of the Group’s net assets.
For the remaining components which were not subject to full-scope audits or specified audit procedures, we performed analysis
at an aggregated Group level to re-assess our evaluation that there were no significant risks of material misstatement in any ofthese components.
Finally, we performed audit procedures over the consolidation process by testing the material consolidation adjustments made bymanagement in calculating their consolidated financial statements.

Revenue
9%

Profit before tax
1%

4%

2%

Net assets
4%1%

Financial Statements

Group materiality£22.1mComponentmateriality range£3.2m to £17.6m

PBT£442.8m

90%

Audit Committee
reporting threshold
£1.1m

94%

95%

Full audit scope

Full audit scope

Specified audit proceduresSpecified audit procedures

Full audit scope
Specified audit procedures

Review at group level

Review at group level

Review at group level

PBTGroup materiality

7.2. Our consideration of the control environment

6.2. Performance materiality

We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected andundetected misstatements exceed the materiality for the financial statements as a whole.
Group financial statements

Parent Company financial statements

Performance materiality

70% (2022: 70%) of Group materiality

70% (2022: 70%) of Parent Company materiality

Basis and rationale fordetermining performancemateriality

In determining performance materiality, we considered the following factors:• our risk assessment, including our assessment of the Group’s overall control environment and that
we consider it appropriate to rely on controls over a number of business processes; and• our past experience of the audit, which has indicated a low number of uncorrected misstatements
identified in prior periods.

We obtained an understanding of and tested the relevant controls within the Group, including controls over the following businessprocesses: financial reporting, insurance revenue, other revenue, insurance service expenses, liability for incurred claims, liability forremaining coverage, reinsurance and coinsurance, cash and investments. We also identified the key IT systems in the Group that wererelevant to the audit, and involved our internal IT specialists to support our testing of general IT controls over these systems, including
the policy administration system, claims administration systems and the data warehouse.

7.3. Our consideration of climate-related risks

In planning our audit, we have considered the impact of climate change on the Group’s operations and subsequent impact on its financial
statements. The Group sets out its assessment of the potential impact on page 107 of the Emerging Risks section.
In conjunction with our climate reporting specialists, we have held discussions with the Group to understand management’s:• process for identifying affected operations, including the governance and controls over this process, and the subsequent effect on thefinancial reporting of the Group; and• long-term strategy to respond to climate-related risks as they emerge including the effect on the Group’s forecasts.

6.3. Error reporting threshold

We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £1.1 million(2022: £1.1 million), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds.
We also report to the Audit Committee on disclosure matters that we identified when assessing the overall presentation of thefinancial statements.

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Admiral Group plc Annual Report and Accounts 2023

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Independent Auditor’s Reportto the members of Admiral Group plc

continued

In addition, our audit work also involved:

11. Extent to which the audit was considered capable of detecting irregularities, including fraud• challenging the completeness of the physical and transition risks identified based on our understanding of the Group, and consideredin the Group’s climate risk assessment and the conclusion that there is no material impact of climate change risk on the current year
financial reporting;Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which ourprocedures are capable of detecting irregularities, including fraud is detailed below.

• assessing the Group’s qualitative analysis which supports the Group’s conclusion that there is no material financial statement impact ofclimate risk on expected credit losses;

11.1. Identifying and assessing potential risks related to irregularities• assessing disclosures in the Annual Report against the requirements of the TCFD framework, paragraph 8(a) of Listing Rule 9.8.6R, as
well as the mandatory climate-related financial disclosure requirements (“CFD”) ; and• evaluating the appropriateness of disclosures included in the financial statements in Note 2.
We have not been engaged to provide assurance over the accuracy of TCFD disclosures set out on page 73 of the annual report. As partof our procedures, we are required to read these disclosures and to consider whether they are materially inconsistent with the financial
statements or our knowledge obtained during the course of our audit. We did not identify any material inconsistencies as a result of
these procedures.

7.4. Working with other auditors

We engaged local component auditors, being Deloitte member firms in Spain and the US, to perform the audit work over entities
residing in these respective territories. We also engaged component auditors in the Deloitte UK firm to perform the audit work over
the Admiral Money segment of the Group. We directed and supervised the work of Deloitte Spain and Deloitte UK, including throughin-person visits and through remote communication and review of their work.

8. Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’sreport thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in ourreport, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise toa material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is amaterial misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.

9. Responsibilities of directors• the nature of the industry and sector, control environment and business performance including the design of the Group’s
remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;• the Group’s own assessment of the risks that irregularities may occur either as a result of fraud or error;• results of our enquiries of management, internal audit, the directors and the Audit Committee about their own identification andassessment of the risks of irregularities, including those that are specific to the Group’s sector;• any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to:– identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;– detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;– the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and• the matters discussed among the audit engagement team including significant component audit teams and relevant internal
specialists, including tax, actuarial, financial instruments, IT, climate, and industry specialists regarding how and where fraud mightoccur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud andidentified the greatest potential for fraud in the following areas: valuation of UK motor large bodily injury claims reserves within
the liability for incurred claims and inflation assumptions applied to UK motor bodily injury claims within the liability for incurredclaims. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk ofmanagement override.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of thoselaws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.
The key laws and regulations we considered in this context included the UK Companies Act, Listing Rules, Solvency II regulation andrelevant tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but
compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included the Group’s
operating licence, and the Financial Conduct Authority and the Prudential Regulation Authority regulations.

11.2. Audit response to risks identified

As a result of performing the above, we identified the valuation of UK motor large bodily injury reserves within the liability for incurredclaims and inflation assumptions applied to UK motor bodily injury claims within the liability for incurred claims as key audit mattersrelated to the potential risk of fraud. The key audit matters section of our report explains the matters in more detail and also describes
the specific procedures we performed in response to those key audit matters.

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In addition to the above, our procedures to respond to the risks identified included the following:

In preparing the financial statements, the directors are responsible for assessing the Group’s and the Parent Company’s ability tocontinue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative
but to do so.

• enquiring of management, the Audit Committee and in-house legal counsel concerning actual and potential litigation and claims;

10. Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/
auditorsresponsibilities. This description forms part of our auditor’s report.

Admiral Group plc Annual Report and Accounts 2023

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of
relevant laws and regulations described as having a direct effect on the financial statements;• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement
due to fraud;• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with
HMRC, the Financial Conduct Authority and the Prudential Regulation Authority; and• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and otheradjustments; assessing whether the judgments made in making accounting estimates are indicative of a potential bias; and evaluating
the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, includinginternal specialists and significant component audit teams, and remained alert to any indications of fraud or non-compliance with laws
and regulations throughout the audit.

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

For the US auditors we concluded it was not necessary to undertake in-person visits to this component, rather we directed andsupervised the work of the component auditor by having frequent phone calls with the component audit team, participating in videoconferences and reviewing key audit documentation remotely.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws andregulations, we considered the following:

214

215

Financial Statements

Independent Auditor’s Reportto the members of Admiral Group plc

continued

Report on other legal and regulatory requirements
12. Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the directors’ remuneration report to be audited has been properly prepared in accordance with theCompanies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:• the information given in the strategic report and the directors’ report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and their environment obtained in thecourse of the audit, we have not identified any material misstatements in the strategic report or the directors’ report.

13. Corporate Governance Statement

The Listing Rules require us to review the directors' statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code specified
for our review.

15. Other matters which we are required to address
15.1. Auditor tenure

Following the recommendation of the Audit Committee, we were appointed by shareholders’ approval at the Annual General Meeting on
27 April 2023 to audit the financial statements for the year ending 31 December 2023 and subsequent financial periods. The period of
total uninterrupted engagement including previous renewals and reappointments of the firm is eight years, covering the years ending
31 December 2016 to 31 December 2023.

15.2. Consistency of the audit report with the additional report to the Audit Committee

Our audit opinion is consistent with the additional report to the Audit Committee we are required to provide in accordance with ISAs (UK).

16. Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state tothem in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions wehave formed.
As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R, thesefinancial statements form part of the Electronic Format Annual Financial Report filed on the National Storage Mechanism of the FCA
in accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides no assurance over whether the Electronic Format Annual
Financial Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:• the directors’ explanation as to its assessment of the Group’s prospects, the period this assessment covers and why the period isappropriate set out on page 109;
• the directors' statement on fair, balanced and understandable set out on page 201;
• the Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 98;• the section of the annual report that describes the review of effectiveness of risk management and internal control systems set
out on page 98; and• the section describing the work of the Audit Committee set out on page 161.

Financial Statements• the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any
material uncertainties identified set out on page 198;
Adam Addis(Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
6 March 2024

14. Matters on which we are required to report by exception
14.1. Adequacy of explanations received and accounting records

Under the Companies Act 2006 we are required to report to you if, in our opinion:• we have not received all the information and explanations we require for our audit; or• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received
from branches not visited by us; or• the Parent Company financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.

14.2. Directors’ remuneration

Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration have notbeen made or the part of the Directors’ Remuneration Report to be audited is not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

216

217

Financial Statements

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2023

For the year ended 31 December 2023

Year ended

Year ended

Restated1
31 December 2023 31 December 2022
£m
Note
£m

Earnings per share
Basic
DilutedDividends declared and paid (total)
Dividends declared and paid (per share)

5
5
5
6
5
5

7
7
8
9
9
6

6
6

10

12
12
12
12

3,486.1(3,093.2)
392.9(87.1)
305.8
122.9(94.5)
28.9(65.6)
363.1
94.9(26.8)
68.1
205.7(250.8)107.8(31.0)
31.7
462.9(20.5)
0.4(20.1)
442.8(105.6)337.2

2,956.9(2,737.2)
219.7(38.4)
181.3
64.6(52.0)
13.6(38.4)
207.5
58.7(12.6)
46.1
256.4(204.6)
86.7(18.9)
119.6
373.2(13.5)
1.5(12.0)
361.2(75.9)
285.3

338.0
(0.8)
337.2

286.5
(1.2)
285.3

111.2p110.8p307.1
103.0p

95.4p
95.0p
658.3
223.0pProfit for the period
Other Comprehensive Income
Items that are or may be reclassified to profit or loss
Movements in fair value reserve
Deferred tax charge in relation to movement in fair value reserve
Movements in insurance finance reserve
Deferred tax in relation to movement in insurance finance reserve
Exchange differences on translation of foreign operations
Movement in hedging reserve
Deferred tax charge in relation to movement in hedging reserve
Other Comprehensive Income for the period, net of income tax
Total comprehensive income for the period
Total comprehensive income for the period attributable to:Equity holders of the parent
Non-controlling interests

337.2

285.3

98.1
(5.7)
(78.9)
9.7
3.7(18.1)
4.5
13.3
350.5

(255.6)13.0
177.8(22.8)
(4.3)
25.1
(7.0)
(73.8)
211.5

351.3
(0.8)
350.5

212.6
(1.1)
211.5

1. 2022 comparative figures have been restated following the adoption of IFRS 17 Insurance Contracts. For further information see note 2 to the financial statements.

1 2022 comparative figures have been restated following the adoption of IFRS 17 Insurance Contracts. For further information see note 2 to the financial statements.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Insurance revenue
Insurance service expenses
Insurance service result before reinsurance
Net expense from reinsurance contracts held
Insurance service result
Investment return
Finance expenses from insurance contracts issued
Finance income from reinsurance contracts held
Net insurance finance expenses
Net insurance and investment result
Interest income from financial services
Interest expense related to financial services
Net interest income from financial services
Other revenue and profit commission
Other operating expenses
Other operating expenses recoverable from co-insurers
Expected credit losses
Other income and expenses
Operating profit
Finance costs
Finance costs recoverable from co- and reinsurers
Net finance costs
Profit before tax
Taxation expense
Profit after tax
Profit after tax attributable to:Equity holders of the parent
Non-controlling interests (NCI)

Restated1
31 December 2023 31 December 2022
£m
£m

218

219

Financial Statements

Consolidated Statement of Financial Position

Consolidated Cashflow Statement

For the year ended 31 December 2023

For the year ended 31 December 2023

As at
Restated1
31 December 2023 31 December 2022
£m
Note
£m

11
11
10
5
7
6
6
6

12
12

5
6
6, 11
6

90.1
242.9
46.1
20.4
1,191.9879.4
409.9
3,862.4
353.1
7,096.2

89.8
217.6
28.4
9.1
1,015.4823.9
316.4
3,411.2
297.0
6,208.8

103.2
151.8
20.7
10.2
987.2
556.8
391.5
3,742.6372.7
6,336.7

0.3
13.1(40.5)
1,018.9
991.8
1.0
992.8

0.3
13.1
(50.2)
922.6
885.8
1.2
887.0

0.3
13.1
23.7
1,243.5
1,280.6
2.3
1,282.9

4,581.7
1,129.8
305.8
81.2
4.9
6,103.4
7,096.2

4,025.4
939.1
254.9
88.5
13.9
5,321.8
6,208.8

3,926.4
670.9
351.2
105.3
–
5,053.8
6,336.7

1. 2022 comparative figures have been restated following the adoption of IFRS 17 Insurance Contracts. For further information see note 2 to the financial statements.

The accompanying notes form part of these financial statements. These financial statements were approved by the Board of Directors on
6 March 2024 and were signed on its behalf by:

Geraint Jones
Chief Financial Officer
Admiral Group plc
Company Number: 03849958

Admiral Group plc Annual Report and Accounts 2023

Restated1
31 December 2023 31 December 2022
£m
Note
£m

Profit after tax
Adjustments for non-cash items:– Depreciation of property, plant and equipment and right-of-use assets– Impairment/ disposal of property, plant and equipment and right-of-use assets– Amortisation and impairment of intangible assets– Movement in expected credit loss provision– Share scheme charges– Interest expense on funding for loans and advances to customers– Investment return– Finance costs, including unwinding of discounts on lease liabilities– Taxation expense
Change in gross insurance contract liabilities
Change in reinsurance assets
Change in insurance and other receivables
Change in gross loans and advances to customers
Change in trade and other payables, including tax and social security
Cashflows from operating activities, before movements in investments
Purchases of financial instruments
Proceeds on disposal/ maturity of financial instruments
Interest and investment income received
Cashflows from operating activities, net of movements in investments
Taxation payments
Net cashflow from operating activities
Cashflows from investing activities:
Purchases of property, equipment and software
Investments in Associates
Net cash used in investing activities
Cashflows from financing activities:
Proceeds on issue of loan backed securities
Proceeds from other financial liabilities
Finance costs paid, including interest expense paid on funding for loans
Repayment of lease liabilities
Equity dividends paid
Net cash used in financing activities
Net increase/ (decrease) in cash and cash equivalents
Cash and cash equivalents at 1 January
Effects of changes in foreign exchange rates
Cash and cash equivalents at end of period

11

6
10
5
5
7
11

12

6

337.2

285.3

18.2
(4.0)
40.5
15.7
63.3
26.2
(119.3)
20.5
105.6
451.3
(141.8)(94.7)(73.6)
52.4
697.5(3,538.4)
3,176.1
76.8
412.0(133.0)
279.0

18.2
(1.2)
23.7
11.7
57.3
12.6
(64.6)
13.4
75.9
372.8
(124.2)75.1(280.6)(96.3)
379.1(3,198.0)
3,328.3
58.7
568.1(91.2)
476.9(75.9)–(75.9)(98.6)(2.4)(101.0)44.9
136.2(35.1)(10.7)(307.1)(171.8)
31.3
297.0
24.8
353.1

267.8
–
(25.3)(9.2)(658.3)(425.0)(49.1)
372.7(26.6)
297.0

1. 2022 comparative figures have been restated following the adoption of IFRS 17 Insurance Contracts. For further information see note 2 to the financial statements.

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

ASSETS
Property and equipment
Intangible assets
Deferred income tax
Corporation tax asset
Reinsurance contract assets
Loans and advances to customers
Other receivables
Financial investments
Cash and cash equivalents
Total assets
EQUITY
Share capital
Share premium account
Other reserves
Retained earnings
Total equity attributable to equity holders of the parent
Non-controlling interests
Total equity
LIABILITIESInsurance contracts liabilities
Subordinated and other financial liabilities
Trade and other payables
Lease liabilities
Corporation tax liabilities
Total liabilities
Total equity and total liabilities

Year ended
Restated1
1 January 2022
£m

220

Financial Statements

Consolidated Statement of Changes in Equity
For the year ended 31 December 2023

Attributable to the owners of the Company

Note

At 1 January 2022
previously reported
Impact of initial applicationof IFRS 171
At 1 January 2022 restated1
Profit/(loss) for the period1
Other Comprehensive Income1
Total comprehensive
income for the period1
Transactions withequity holders
Dividends
Share scheme credit
Deferred tax credit on
share scheme credit
Total transaction withequity holders
As at 31 December 20221
At 1 January 2023
Profit/(loss) for the period
Other Comprehensive Income
Total comprehensive
income for the period
Transactions withequity holders
Dividends
Share scheme credit
Deferred tax credit on
share scheme credit
Transfer to loss on disposalof assets held for sale
Total transactions withequity holders
As at 31 December 2023

12

12

Share
capital£mSharepremium£m

Fair value
reserve£m

Hedging
reserve£m

Foreignexchangereserve
£m

0.3

13.1

36.7

3.0

–
0.3
–
–

–
13.1
–
–

–
36.7
–
(242.6)––––

Insurance1
financereserve£m

Retained1
profitand loss£m

Noncontrollinginterests
Total
£m
£m
1

Total
equity1£m

4.3– 1,348.8 1,406.2

2.3 1,408.5

–
3.0
–
18.1

0.2
4.5
–
(4.4)

(20.5) (105.3) (125.6)(20.5) 1,243.5 1,280.6
–
286.5
286.5
155.0
–
(73.9)–(125.6)
2.3 1,282.9
(1.2)
285.3
0.1
(73.8)(242.6)

18.1

(4.4)

155.0

286.5

212.6

(1.1)

211.5

–
–

–
–

–
–

–
–

–
–

(658.3)57.3(658.3)57.3––(658.3)
57.3

–

–

–

–

–

–

(6.4)

(6.4)

–

(6.4)

–
0.3
0.3
–
–

–
13.1
13.1
–
–

–
(205.9)(205.9)
–
92.4

–
21.1
21.1
–
(13.6)

–
0.1
0.1
–
3.7

– (607.4) (607.4)
134.5
922.6 885.8
134.5
922.6 885.8
–
338.0
338.0
(69.2)–
13.3– (607.4)
1.2
887.0
1.2
887.0
(0.8)
337.2
–
13.3

–

–

92.4

(13.6)

3.7(69.2)

338.0

351.3

(0.8)

350.5

–
–

–
–

–
–

–
–

–
–

–
–

(307.1)
63.3(307.1)
63.3––(307.1)
63.3

–

–

–

–

–

–

2.1

2.1

–

2.1

–

–

–

–

(3.6)

–

–

(3.6)

0.6

(3.0)

–
0.3

–
13.1

–
(113.5)

–
7.5

(3.6)
0.2

– (241.7) (245.3)
65.3 1,018.9 991.8

0.6
1.0

(244.7)992.8

1. 2022 comparative figures have been restated following the adoption of IFRS 17 Insurance Contracts. For further information see note 2 to the financial statements.

Admiral Group plc Annual Report and Accounts 2023

221

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

General information

Admiral Group plc is a public limited Company incorporated in England and Wales. Its registered office is at Tŷ Admiral, David Street,
Cardiff, CF10 2EH and its shares are listed on the London Stock Exchange. The nature of Admiral Group operations and its principal
activities is set out in the Business model section on page 8.

1. Basis of preparation

The consolidated financial statements have been prepared and approved by the Directors in accordance with United Kingdom adopted
international accounting standards in conformity with the requirements of the Companies Act 2006. The Company has elected toprepare its Parent Company financial statements in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework(FRS 101).
The accounting policies set out in the notes to the financial statements have, unless otherwise stated, been applied consistently to all
periods presented in these Group financial statements.
The financial statements are prepared on the historical cost basis, except for the revaluation of financial assets classified as fair value throughprofit or loss or as fair value through Other Comprehensive Income, and insurance and reinsurance contract assets and liabilities which
are measured at their fulfilment value in accordance with IFRS 17 Insurance Contracts. The Group and Company financial statements arepresented in pounds sterling, rounded to the nearest £0.1 million.
Cashflows from operating activities before movements in investments comprise all cashflows arising from the Group’s insurance andreinsurance activities, and from loans and advances issued to customers. Cashflows from financing activities include the cashflows on issuesof loan backed securities, lease liabilities and other financial liabilities.
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and can affect those returns through its power over the entity.

The Group has securitised certain loans and advances to customers by the transfer of the loans to special purpose entities (’SPEs’)controlled by the Group. Securitisation enables a subsequent issuance of debt by the SPEs to investors who gain the security of theunderlying assets as collateral. These SPEs are fully consolidated into the Group financial statements under IFRS 10 Consolidated Financial
Statements, as the Group controls the entity in line with the above definition.
The preparation of financial statements in conformity with adopted IFRS requires management to make judgements, estimates andassumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimatesand associated assumptions are based on historical experience and various other factors that are believed to be reasonable under thecircumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are notreadily apparent from other sources.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in theyear in which the estimate is reviewed. To the extent that a change in an accounting estimate gives rise to changes in assets and liabilities,
the movement is recognised by adjusting the carrying amount of the related asset or liability in the period in which the change occurs.
Further information regarding the Group’s critical accounting judgements and estimates is provided in note 2 to the financial statements.

Going concern

The consolidated financial statements have been prepared on a going concern basis. In considering this requirement, the directors havetaken into account the following:• The Group’s profit projections, including:– Changes in premium rates and projected policy volumes across the Group’s insurance businesses– The impacts of the continued elevated inflationary environment on the cost of settling claims across all of the Group’s
insurance businesses– The return of motor claims frequency towards pre-pandemic levels– Projected trends in other revenue generated by the Group’s insurance business from fees and the sale of ancillary products– Projected contributions to profit from businesses other than the UK Car insurance business– Expected trends in unemployment in the context of credit risks and the growth of the Group’s consumer lending business– The More Than acquisition due to complete in the first half of 2024
– Assessment of wider market risk and changes in investment performance given the changing interest rates toward the end of 2023.

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. The acquisition date is the dateon which control is transferred to the acquirer. The financial statements of subsidiaries are included in the consolidated financial statementsfrom the date that control commences until the date control ceases. Losses applicable to the non-controlling interests in a subsidiary areallocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance.

222

223

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

1. Basis of preparation continued

Presentation and disclosure• The adequacy of the Group’s liquidity position after considering all the factors noted above• Portfolios of insurance contracts issued that are assets• The results of business plan scenarios and stress tests on the projected profitability, solvency and liquidity positions including theimpact of severe downside scenarios that assume severe adverse economic, credit and trading stresses• Portfolios of insurance contracts issued that are liabilities• The regulatory environment, focusing on regulatory guidance issued by the FCA and the PRA in the UK and regular communications
between management and regulators• Portfolios of reinsurance contracts held that are liabilities.

• The Group’s solvency position, which has been closely monitored through periods of market volatility. The Group continues to maintaina strong solvency position above target levels• A review of the Company’s principal risks and uncertainties and the assessment of emerging risks, including climate related risks.
Following consideration of all of the above, the Directors have reasonable expectation that the Group has adequate resources tocontinue in operation for the foreseeable future, a period of not less than 12 months from the date of this report, and that it is therefore
appropriate to adopt the going concern basis in preparing the consolidated financial statements.
Further information regarding the Company’s business activities, together with the factors likely to affect its future development,
performance and position, is set out in the Strategic Report. Further information regarding the financial position of the Company,
its cashflows, liquidity position and borrowing facilities are also described in the Strategic Report. In addition, note 2 to the financial
statements include the Group’s insurance and financial risk management objectives, details of its financial instruments and its exposures
to credit risk and liquidity risk; and its objectives, policies and processes for managing its capital.

Adoption of new and revised standards

The Group has adopted the following IFRSs and interpretations during the year, which have been issued and endorsed:• Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (effective
1 January 2023)• Amendments to IAS 1 Presentation of Financial Statements and Practice Statement 2: Disclosures of Accounting policies (effective
1 January 2023)• Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (effective
1 January 2023).
• Amendments to IAS 12 Income Taxes: International tax reform - Pillar two model rules (effective 1 January 2023).
The application of the amendments listed above has not had a material impact on the Group’s results, financial position and cashflows.
Further information on the impact of the transition to IFRS 17 is provided below.

IFRS 17 adoption

IFRS 17, the new insurance contracts standard, replaces IFRS 4 Insurance Contracts, from 1 January 2023.
As a result, the opening balance sheet (1 January 2022) and prior year comparatives (FY 2022) have been restated under IFRS 17, applying
the transitional provisions in Appendix C to IFRS 17. The nature of the changes in accounting policies can be summarised as follows:

Changes to classification and measurement.

The adoption of IFRS 17 did not change the classification of the Group’s insurance contracts.

• Portfolios of reinsurance contracts held that are assets
The portfolios referred to above are those established at initial recognition in accordance with the IFRS 17 requirements.
The line item descriptions in the Statement of Profit or Loss and Other Comprehensive Income have been changed significantly
compared with last year. Previously, the Group reported the following line items:• Gross written premiums• Net written premiums• Changes in unearned premium reserves• Gross insurance claims• Net insurance claims• Net operating expenses.
Instead, IFRS 17 requires separate presentation of:• Insurance revenue• Insurance service expenses• Income or expenses from reinsurance contracts held
• Insurance finance income or expenses.
The Group provides disaggregated qualitative and quantitative information about:• Amounts recognised in its financial statements from insurance contracts issued and reinsurance contracts held
• Significant judgements, and changes in those judgements, when applying the standard.
The new accounting policies and choices adopted in the implementation of IFRS 17 are disclosed in the notes to thesefinancial statements.

Transition approach

The full retrospective approach was applied to the insurance contracts issued and reinsurance contracts held that were in force at thetransition date.
The transition approach was determined at a group of insurance contracts level. Accordingly, the Group has recognised and measured
each group of insurance contracts in this category as if IFRS 17 had always applied; derecognised any existing balances that would notexist had IFRS 17 always applied; and recognised any resulting net difference in equity.

Impact of Transition on Equity

The Group was previously permitted under IFRS 4 to continue accounting using its previous (UK GAAP) accounting policies. However, IFRS
17 establishes specific principles for the recognition and measurement of insurance contracts issued and reinsurance contracts held by
the Group.

The total impact of the transition was a reduction in equity of £125.6 million, as shown in the Consolidated Statement of Changes
in Equity. The Statement of Financial Position presents the restated balance sheet as at the transition date of 1 January 2022, withsupporting notes providing further detail as required.

Under IFRS 17, the Group’s insurance contracts issued and reinsurance contracts held have all been assessed as eligible to be measured
by applying the premium allocation approach (‘PAA’). The PAA simplifies the measurement of insurance contracts in comparison with thegeneral model in IFRS 17.

The key changes driving the adverse impact on transition are:
• An adverse impact arising from the Group’s accounting policy choice to expense acquisition costs, which results in a write off of theGroup’s gross deferred acquisition cost asset

The measurement principles of the PAA differ from the ‘earned premium approach’ used under IFRS 4 in the following key areas:• A reduction in quota share reinsurance assets primarily as a result of the change in timing in recognition of ceded quota share expense
recoveries, which under IFRS 17 are realised in line with the earning of premium, rather than aligned to when the gross expenses
are incurred• The liability for remaining coverage reflects premiums received less amounts recognised in revenue for insurance services provided• The Group has chosen to expense its insurance acquisition cashflows as incurred• Measurement of the liability for remaining coverage involves an explicit evaluation of risk adjustment for non-financial risk when agroup of contracts is onerous in order to calculate a loss component• Measurement of the liability for incurred claims (previously claims outstanding) is determined on a discounted probability-weighted
expected value basis, and includes an explicit risk adjustment for non-financial risk.
• Measurement of the asset for remaining coverage (reflecting reinsurance premiums paid for reinsurance held minus ceded earned
premium) is adjusted to include a loss-recovery component to reflect the expected recovery of onerous contract losses where suchcontracts reinsure onerous direct contracts.

Admiral Group plc Annual Report and Accounts 2023

• An adverse impact due to the deferral of revenue in relation to underwritten ancillary products, which was previously recognised
immediately as commission income• An offsetting favourable impact due to change in the Group’s claims liabilities, net of reinsurance, as a result of the requirements forthe liability and asset for incurred claims to be calculated using a probability weighted, discounted best estimate plus risk adjustment
for non-financial risk
• The tax treatment of the transition impact follows the accounting treatment, with no transitional relief available. The tax impact ontransition has been calculated at an entity level, based on the tax rates in place in 2023, when the tax transition impacts are realised.
Deferred tax assets in relation to carried forward losses are recognised only to the extent that it is probable future taxable profit will beavailable against which the assets can be utilised, in accordance with the Group’s accounting policy for taxation.

Admiral Group plc Annual Report and Accounts 2023

Financial Statements• IFRS 17 Insurance Contracts (effective 1 January 2023)

For presentation in the Statement of Financial Position, the Group aggregates insurance and reinsurance contracts issued and reinsurance
contracts held respectively, and presents separately:

224

225

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

1. Basis of preparation continued
Summary of Impact of Transition on FY 2022 restated result

Acquisition of More Than home and pet personal lines from RSA
31 December 2022£m

IFRS 17IFRS 4

ChangeAnalysis of profit
UK Insurance
International Insurance
International Insurance – European Motor
International Insurance – US Motor
International Insurance – Other
Admiral Money
Other
Group profit before tax

509.7(56.2)(16.5)(36.4)(3.3)
2.1(94.4)
361.2

615.9(53.8)(1.6)(48.9)(3.3)
2.1(95.2)
469.0(106.2)(2.4)(14.9)
12.5––
0.8(107.8)The 2022 profit before tax on an IFRS 17 basis is lower than that reported under IFRS 4. The following table sets out the key differences
for the UK and international insurance profits reported under IFRS 17 compared to IFRS 4:£m

International

615.9(93.3)
15.4(41.2)
12.9
509.7(53.8)
(9.9)
9.5
(2.9)
0.9
(56.2)The difference between IFRS 4 and IFRS 17 reported profit primarily arises as a result of differences in the reserve strength or risk
adjustment position over the course of 2022 under each standard. Under IFRS 4, Admiral moved down to the 95th percentile over thecourse of 2022. Under IFRS 17, Admiral moved down to the 95th percentile at the transition date of 1 January 2022, and remained at thatpercentile during 2022. This results in lower reserve releases under IFRS 17 in 2022, and therefore lower profit.
The discounting impact shown above is the impact of the discounting of the gross, net of XoL claims cost and finance expenses
recognised in the period. In UK Insurance, whilst there is a favourable impact of discounting of the claims incurred of circa £52 million at
YE 2022, this is offset by the unwind of discounting of prior years, reducing the overall discounting benefit to £15 million when compared
to IFRS 4 claims costs. It should be noted that whilst the higher discount curves seen in 2022 result in lower claims reserves, the Group’s
accounting policy decision to take the impact of changes in yield curve on outstanding claims reserves to Other Comprehensive Incomemeans that this is not a material driver of IFRS 17 profit in 2022.

2. Critical accounting judgements and estimates

In applying the Group’s accounting policies as described in the notes to the financial statements, the Directors are required to makejudgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimatesand assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimatesand associated assumptions are based on historical experience and other factors that are considered to be relevant, including whereappropriate, weather-related factors. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if therevision affects both current and future periods.

2.1 Critical accounting judgements

The following are the critical judgements, apart from those involving estimations (which are presented separately below), that the
Directors have made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts
recognised in financial statements.

Premium allocation approach (‘PAA’)The Group applies the PAA to all of its insurance and reinsurance contracts.
The coverage period of insurance contracts is typically one year or less, including insurance contract services arising from all premiums
within the contract boundary. The Group does not consider the existing products with more than 12 months coverage to be material.
The Group’s insurance contracts are therefore automatically eligible for the PAA.
However, the Group’s reinsurance contracts are not automatically eligible for the PAA given that the coverage period is greater than one
year. The Group has modelled the expected cashflows and reasonably possible future scenarios for its reinsurance contracts, and as aresult expects that the measurement of the asset for remaining coverage for the group containing those contracts under the PAA does
not differ materially from the measurement that would be produced applying the general model. Its reinsurance contracts are therefore
eligible for the PAA.
The modelling of the cashflows associated with the Group’s reinsurance contracts, and reasonably possible future scenarios, is a key areaof judgement that impacts the PAA eligibility assessment and the resulting measurement of and presentation of reinsurance contracts inthese financial statements.

Classification of the Group’s contracts with reinsurers as reinsurance contracts

In addition, the majority of the discounting benefit on gross claims net of excess of loss reinsurance is offset by the significant adverse
movement on quota share recoveries. This is significant given that, due to quota share contracts having been largely commuted onearlier underwriting years, there is no significant offsetting finance income (representing the unwind of discounting within the quota
share result).

A contract is required to transfer significant insurance risk in order to be classified as such. Management reviews all terms and conditionsof each such insurance and reinsurance contract in order to be able to make this judgement. In particular, all reinsurance contracts (bothexcess of loss and quota share contracts) held by the Group have been assessed and it has been concluded that all contracts transfer
significant insurance risk and have therefore been classified and accounted for as reinsurance contracts within these financial statements.

Other movements include a number of largely offsetting differences in the timing of recognition of acquisition expenses, quota sharereinsurance profit commission recoveries, and movements in the onerous loss component.

Unit of account: combination of insurance contracts and separation of distinct components

New and revised IFRS Standards in issue but not yet effective

At the date of authorisation of these financial statements, the Group has not applied the following new and revised IFRS Standards thathave been issued but are not yet effective:• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (effective 1 January 2025)• Amendments to IAS 7 Statement of Cashflows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements(effective 1 January 2024)

The lowest unit of account in IFRS 17 is the contract and there is a presumption that a contract with the legal form of a single contract
would generally be considered a single contract in substance. However, there might be certain facts and circumstances where legal
form does not reflect the substance of the arrangement and separation of the contract is required, or alternatively circumstances whencontracts should be combined, such as when a set of insurance contracts with the same or a related counterparty may achieve, or be
designed to achieve, an overall commercial effect.
Overriding the legal contract to reflect substance is not a policy choice; it is a significant judgement requiring careful consideration of all
relevant facts and circumstances. The following considerations, as set out by the IFRS 17 Transition Resource Group, are deemed relevantin assessing whether the contracts should be separated, or alternatively, combined:• Amendments to IAS 1 Presentation of Financial Statements: Classification of liabilities as Current or Non-current(effective 1 January 2024)• whether there is interdependency between the different risks covered• Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (effective 1 January 2024).

• whether components can be priced and sold separately.

• whether components lapse together, andThe Directors do not expect that the adoption of the Standards listed above will have a material impact on the financial statementsof the Group in future periods.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

IFRS 4 reported profit
Timing of reserve releases
Discounting
Timing of Quota share reinsurance recoveries
Other
IFRS 17 reported profit before tax

UK

During December 2023 the Group signed an agreement to acquire the UK direct Home and Pet personal lines insurance operations of
RSA Insurance Group Limited (“RSA”). The acquisition is expected to complete during the first half of 2024. The consideration payable atcompletion is £82.5 million, with a further potential payment of £32.5 million depending on the number of policies successfully migrated
to the Group. The acquisition will not include liabilities relating to existing policies, which will remain with RSA. There is no impact on the
results reported in these financial statements as a result of the transaction.

226

227

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

2. Critical accounting judgements and estimates continued

In addition, any cashflows related to promises to transfer distinct goods or services, other than insurance contract services, that arewithin the host insurance contract are separated and recognised by applying IFRS 15. In determining whether there are such distinct
components, the following is considered:• whether the policyholder can benefit from the good or service on its own or together with other resources available tothe policyholder• whether the cashflows and risks associated with the good or service are highly interrelated with the cashflows and risks associatedwith the insurance components in the contract• whether the Group provides a significant service in integrating the good or service with the insurance components.
After separating any such distinct components, IFRS 17 is applied to all remaining components of the (host) insurance contract.
The Group has determined that, in applying these requirements to its insurance contracts:

Best estimate of future cashflows to fulfil insurance contracts

The ultimate cost of outstanding claims that have been incurred prior to the balance sheet date and that remain unsettled at thebalance sheet date, for material lines of business, is estimated by internal actuarial teams using a range of standard actuarial claims
projection techniques, (such as incurred and paid chain ladder techniques, Bornhuetter-Ferguson methods and initial expectedassumptions) to allow an actuarial assessment of their potential outcome. This includes an allowance for unreported claims.
The projection of the overall claims reserve is subject to comparison against equivalent outputs produced by an independent external
actuarial specialist for material lines of business.
Claims are segmented into groups with similar characteristics and which are expected to develop and behave similarly, for example bodily
injury (attritional and large) and damage claims, with specific projection methods selected for each head of damage. Key sources of
estimation uncertainty arise from both the selection of the projection methods and the assumptions made in setting claims provisions.
Internal and external factors may affect the cost of settling claims in ways that wouldn’t be allowed for by standard actuarial techniques;
where this occurs adjustments to the technique, assumptions or result may be applied. Examples of these factors include:• The individual insurance policies contained in a ’multi-cover policy’ are treated as separate contracts, given that the components canbe priced and sold separately, there is little interdependency between the risks covered, and the components can lapse separately• Changes in the reporting patterns of claims impacting the frequency of bodily injury and damage claims• The cashflows associated with administration fees (for changes to the underlying insurance policy), and instalment income (being
the additional fees payable by a policyholder associated with paying for an insurance contract over 12 months, rather than in one
up-front payment), are non-distinct given that the policyholder cannot benefit from these services separately and the services arehighly interrelated with the core insurance policy. These cashflows are therefore treated as insurance revenue under IFRS 17. However,for the component of the insurance policy that is underwritten outside the Group by a third party insurer, the Group is performing anagency service on behalf of the third party insurer, and therefore this component is treated as a separate component of revenue andaccounted for under IFRS 15• The likelihood of bodily injury claims settling as Periodic Payment Orders

In addition, the Group’s quota share reinsurance contracts contain profit commission arrangements. Under these arrangements, there
is a minimum guaranteed amount that the Group, as the policyholder, will always receive – either in the form of profit commission, or
as claims, or another contractual payment irrespective of the insured event happening. The minimum guaranteed amounts have beenassessed to be highly interrelated with the insurance component of the reinsurance contracts and are, therefore, non-distinct investment
components which are not accounted for separately. Given that the receipt and payment of these non-distinct investment components
do not relate to the provision of insurance services, the amounts are excluded from the net reinsurance expenses in the Group’s Income
Statement (i.e. both ceded reinsurance premiums and ceded recoveries are presented net of the minimum guaranteed amount that theGroup will always receive).

Presentation of reinsurance ‘funds withheld’ contracts

The Group has a number of quota share reinsurance contracts that have funds withheld features, whereby the quota share proportion of
ceded premiums and related recoveries are retained by the Group, and settled on a net basis at commutation. The only initial cashflows
during the coverage period are therefore the payment of any reinsurer margin.
Under IFRS 17, the reinsurance assets related to these funds withheld contracts are presented on a cashflow basis i.e. the full proportional
share of ceded premiums and recoveries is not presented in either the Income Statement or the Statement of Financial Position.

Consolidation of the Group’s special purpose entities (‘SPEs’)

The Group has set up a number of SPEs in relation to the Admiral Money business, whereby the Group securitises certain loans by thetransfer of the loans to the respective SPEs. The securitisation enables a subsequent issue of debt by the SPEs to investors who thereby
gain the security of the underlying assets as collateral.
The accounting treatment of SPEs has been assessed and it has been concluded that the entities should be fully consolidated into theGroup’s financial statements under IFRS 10. This is due to the fact that despite not having legal ownership, the Group has control of theSPEs, being exposed to the returns and having the ability to affect those returns through its power over the SPEs.
The SPEs have therefore been fully consolidated in the Group’s financial statements.

2.2 Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may havea significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, arediscussed below.

• Changes in the regulatory or legal environment that lead to changes in awards for bodily injury claims and associated legal costs• Changes to the underlying process and methodologies employed in setting and reviewing case reserve estimates.
Additional qualitative judgement is used to assess the extent to which past trends may not apply in future, (e.g., to reflect one-off
occurrences, changes in external or market factors such as public attitudes to claiming, economic conditions, levels of claims inflation,
judicial decisions and legislation, as well as internal factors such as portfolio mix, policy features and claims handling procedures) in order
to arrive at the estimated ultimate cost of claims that present the probability weighted expected value outcome from the range ofpossible outcomes, taking account of all the uncertainties involved.
The Group also has the right to pursue third parties for payment of some or all costs. Estimates of salvage recoveries and subrogation
reimbursements are offset against ultimate claims costs. Other key circumstances affecting the reliability of assumptions include delays
in settlement.
Outputs of the actuarial projections include ultimate average cost per claim and claim frequency by accident year, implied claims
inflation metrics and ultimate loss ratios and burn costs by accident year and underwriting year. These metrics are reviewed andchallenged as part of the process for making allowance for the uncertainties noted.

Methods used to measure the risk adjustment for non-financial risk

The risk adjustment for non-financial risk is the compensation that is required for bearing the uncertainty about the amount and timing of
cashflows that arises from non-financial risk as the insurance contract is fulfilled. Because the risk adjustment represents compensation for
uncertainty, estimates are made on the degree of diversification benefits and expected favourable and unfavourable outcomes in a way thatreflects the Group’s degree of risk aversion. The Group estimates an adjustment for non-financial risk separately from all other estimates.
Applying a confidence level technique (value at risk (“VaR”), the Group estimates the probability distribution of the present value of the
future cashflows from insurance contracts at each reporting date and calculates the risk adjustment for non-financial risk as the excess ofthe value at risk at the target confidence level over the expected present value of the future cashflows.
The Group’s risk adjustment is set in a range between the 85th and 95th percentile, on a net of excess of loss reinsurance basis. The level andestimate of risk adjustment required at reporting date is made in a way that reflect the Group’s degree of risk aversion, taking into accountboth internal factors (such as data quality and trends; diversification across portfolios) and external factors (such as inflation and potentialchanges in Ogden rate) that are relevant at that point in time.
To determine the risk adjustment for non-financial risk for reinsurance contracts, the Group applies these techniques both gross and netof excess of loss reinsurance and derives the amount of risk being transferred to the reinsurer as the difference between the two results.
The net of excess of loss risk adjustment is allocated to quota share reinsurance contracts on a proportional basis.
The risk adjustment is calculated at the issuing entity level. Diversification benefit is included across portfolios within the entity, to reflect
the diversification in contracts sold across entities.
The risk adjustment is then allocated down to each portfolio of contracts within the entity using a spread VaR methodology to inform theallocation, to ensure coherence of the gross and excess of loss reinsurance results for risk adjustment across the portfolios within an entity.
Allocations of the risk adjustment to each underwriting year (annual cohort) of contracts within a portfolio is performed manually, based on asystematic approach using management judgement. This typically involves allocating a higher proportion of the risk adjustment to the more
recent underwriting years that are less developed and therefore more uncertain, compared to the proportion of risk adjustment allocated toolder, more developed years.
Where a risk adjustment is required for the liability for remaining coverage due to facts and circumstances indicating that contracts areonerous, this is derived using the risk adjustment for the earned portion of the reserves, adjusted for the unearned claims reserves to reflect
the difference in exposure/size of reserves and difference in drivers of risk in the reserves.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements• The cashflows associated with ancillary or ’add on’ products (which are sold within the same set of contracts as the core product), areseparated from the core product in cases where the policyholder can benefit from the product on its own, and where the cashflows are
not highly interrelated with the insurance components in the contract or the Group does not provide a significant service in integrating
the products.

• Emerging inflationary trends on the average cost of bodily injury and damage claims

228

229

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

2. Critical accounting judgements and estimates continued
Calculation of expected credit loss provision

The Group is required to calculate an expected credit loss (‘ECL’) allowance in respect of the carrying value of the Admiral Money loan
book in line with the requirements of IFRS 9. Due to the size of the loan book, the calculation of the ECL is deemed to be a criticalaccounting judgement and includes key sources of estimation uncertainty.

Reserve risk is mitigated through a series of processes and controls. The key processes are as follows:• Regular management and internal actuarial review of individual and aggregate case claim reserves, including regular reporting ofmanagement information and exception reporting of significant movements

Management applies judgement in:• Regular management and internal actuarial review of large claims, including claims settled or potentially settled by PPOs for which theuncertainty is increased by factors such as the lifetime of the claimant and movements in the indexation for the cost of future care of
the claimant• Determining the appropriate modelling solution for measuring the ECL• Bi-annual external actuarial review of best estimate claims reserves using a variety of recognised actuarial techniques• Calibrating and selecting appropriate assumptions• Internal actuarial analysis of reserve uncertainty through qualitative analysis, scenario testing and a range of stochastic
reserving techniques• Setting the criteria for what constitutes a significant increase in credit risk
• Identification of key scenarios to include and determining the credit loss in these instances.
The key areas of estimation uncertainty are in the calculation of the probability of default (‘PD’) in the base scenario for stage 1 and 2
assets, and the determination, impact assessment and weighting of the forward-looking scenarios.
Refer to the analysis in note 7 to the financial statements for further detail on the Group’s ECL methodology applied in the period.

3. Insurance and financial risk

The Group’s activities expose it primarily to insurance risk, and financial risks of credit, spread, interest rate, liquidity and foreign exchangerisk. The Board of Directors is ultimately responsible for the management of insurance risk and financial risks, although it has delegatedthe detailed oversight of supervising risk management and internal control to the Group Risk Committee.

• Ad hoc external reviews of reserving related processes and assumptions• The application of a risk adjustment aligned with Group risk appetite.
As described in note 2, critical accounting judgements and estimates, the Group includes the risk adjustment for non-financial risk within
its measurement of insurance contracts and reinsurance contract assets, using a confidence level technique, with the risk adjustment
being set in a range between the 85th and 95th percentile, on a net of excess of loss reinsurance basis.
Whilst the underlying methods to calibrate the reserve risk distribution from which the percentile is selected are consistent year on year,
a number of developments in the reserve risk modelling in 2023 result in a slightly less volatile distribution than at the end of 2022.

3.1 Insurance risk

3.1.2 Premium risk

The Group’s primary business is the issuance of insurance contracts that transfer risk from policyholders to the Group and its coinsurance partners.
Insurance risk involves uncertainty over the occurrence, amount or timing of claims arising on insurance contracts issued.
It is primarily comprised of Reserve risk; the risk that the value of insurance liabilities established is insufficient to cover the ultimate costof claims incurred at the balance sheet date, and premium risk; the risk that the claims experience on business written but not earned ishigher than allowed for in the premiums charged to policyholders.
The Board has ultimate responsibility for the management of insurance risk although as set out above, it has delegated the detailed
oversight of risk management to the Group Risk Committee. The Group also has a Group Reserving Committee as well as local Reserving
Committees which are comprised of senior managers within the finance, claims, pricing and actuarial functions in the respective
businesses. The Reserving Committees primarily recommend the approach for claims reserving but also review the systems and controls
in place to support accurate reserving and consider material reserving issues such as large bodily injury claims frequency and severity, theimpact of changes in the claims systems and the external environment.
The Board implements certain policies to mitigate and control the level of insurance risk accepted by the Group. These include
pricing policies and claims management and administration processes, in addition to reserving policies and entering into
reinsurance arrangements.

3.1.1 Reserve risk

Reserve risk arises from:• The uncertain nature of claims, in particular the development of large bodily injury claims• Unexpected future impact of socioeconomic trends or regulatory changes, for example changes to the Ogden discount rate
• Data issues and changes to the claims reporting process

As noted above, the Group defines premium risk as the risk that claims cost on business written but not yet earned is higher than allowed
for in the premiums charged to policyholders. This also includes catastrophe risk, the risk of incurring significant losses as a result of theoccurrence of manmade catastrophe, or natural weather events.
Key processes and controls operating to mitigate premium risk are as follows:• Experienced and focused senior management and teams in relevant business areas including pricing and claims management• A data-driven and analytical approach to regular monitoring of claims and underwriting performance• Observations of weather events trends to understand climate impacts on frequency and severity• Capability to identify and resolve underperformance promptly through changes to key performance drivers, in particular pricing.

3.1.3 Reinsurance risk

The Group purchases reinsurance as part of its risk mitigation programme. Reinsurance held is placed on both an excess of loss basis,
designed to protect the Group against very large individual claims and catastrophe losses, and a proportional basis i.e. quota–sharereinsurance which is taken out to reduce the overall exposure of the Group to its insurance contracts.
Reinsurance risk is the risk of placement of ineffective reinsurance arrangements, or the economic risk of reduced availability ofreinsurance arrangements in future periods.
The Group mitigates these risks by ensuring that it has a diverse range of financially secure reinsurance partners, including a long-term
relationship with Munich Re and a number of other large reinsurers.
Amounts recoverable from reinsurers are estimated in a manner consistent with underlying insurance contract liabilities and inaccordance with the reinsurance contract terms. Although the Group has reinsurance arrangements, it is not relieved of its direct
obligations to its policyholders and thus a credit exposure exists with respect to reinsurance held, to the extent that any reinsurer isunable to meet its obligations.

• Failure to recognise claims trends in the market including a slow-down in the processing of recoveries and liabilities with third party
insurers which increases the estimation risk of these amounts

Information regarding reinsurance credit risk is provided in note 3.2.1.

• Changes in underwriting and business written so that past trends are not necessarily a predictor of the future.

3.1.4 Concentration of insurance risk

Understatement of reserves may result in not being able to pay claims when they fall due. Alternatively, overstatement of reserves canlead to a surplus of funds being retained resulting in opportunity cost; for example, lost investment return or insufficient resource topursue strategic projects and develop the business.

The Directors do not believe there are significant concentrations of insurance risk. This is because the risks are spread across a large
number of policies across a wide regional base. The International Car Insurance, UK Household, UK Travel and UK Pet businesses further
contribute to the diversification of the Group’s insurance risk.
The Group’s placement of reinsurance is diversified such that it is neither dependent on a single reinsurer nor are the operations of theGroup substantially dependent upon any single reinsurance contract.
The tables in note 5f(i) show the concentration of net insurance contract liabilities by product type and geographic area.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

There are several key elements to the risk management environment throughout the Group. These are detailed in full in the Corporate
Governance Statement. Specific considerations for the risks arising from insurance and financial risk are detailed below.

The reserves including risk adjustment at 31 December 2023 equated to a 93rd percentile confidence level position (2022: 95th
percentile) to the nearest whole percentile. The reduction in the confidence level from 2022 is reflective of the Group’s assessment of
uncertainty and the level of adverse risks associated with both internal and external factors, and in particular the Group’s continued
diversification across portfolios.

230

231

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

3. Insurance and financial risk continued
3.1.5 Sensitivity analysis

Undiscounted loss ratios, including risk adjustment

The following sensitivity analysis shows the impact on profit for reasonably possible movements in key assumptions with all otherassumptions held constant. The correlation of assumptions will have a significant effect in determining the ultimate impacts, but todemonstrate the impact due to changes in each assumption, assumptions have been changed on an individual basis. It should be notedthat movements in these assumptions are non-linear.
The sensitivities are shown for UK motor only, being the line of business where such sensitivities could have a material impact at aGroup level. The sensitivities are shown on a gross and net of quota share reinsurance basis to illustrate the impacts on shareholder
profit and equity before and after risk mitigation from quota share reinsurance. The sensitivities (both gross and net) include theimpacts of movements in co-insurance profit commission, given that underwriting year loss ratios including risk adjustment, are a direct
input to the calculation of profit commission. Refer to note 8 to these financial statements for the accounting policy for co-insurance
profit commission.

Ogden discount rate

The sensitivities reflect the impact on profit before tax and equity in 2023 for changes to the Ogden discount rate from the current rateof minus 0.25%, with all other assumptions (including the absolute value of risk adjustment) remaining unchanged.
2023

£m

Impact on profit
before tax net ofreinsurance

Impact on
equity gross ofreinsurance

Impact on
equity net ofreinsurance

133.9
82.8
29.2
(104.4)

95.3
57.4
20.0
(70.2)

110.6
68.3
24.0
(86.3)

77.0
46.3
16.1
(56.6)The sensitivities do not reflect the full ultimate impacts of changes in the Ogden rate as some of the impact will flow into futurefinancial periods.

Risk adjustment

The sensitivities reflect the impact on profit before tax in 2023 and equity as at the end of 2023 for changes in the selection of the UK
motor risk adjustment confidence level at 31 December 2023, with all other assumptions remaining unchanged.

Risk adjustment increase to 95th percentile
Risk adjustment decrease to 90th percentile
Risk adjustment decrease to 85th percentile£mIncrease of 1%: gross of reinsurance
Increase of 3%: gross of reinsurance
Increase of 5%: gross of reinsurance
Decrease of 1%: gross of reinsurance
Decrease of 3%: gross of reinsurance
Decrease of 5%: gross of reinsurance
Increase of 1%: net of reinsurance
Increase of 3%: net of reinsurance
Increase of 5%: net of reinsurance
Decrease of 1%: net of reinsurance
Decrease of 3%: net of reinsurance
Decrease of 5%: net of reinsurance

UWY 2021 impact on:

UWY 2022 impact on:

UWY 2023 impact on:

PBT

EquityPBT

EquityPBT

EquityPBT

Equity(19.8)(59.3)(98.9)
19.8
59.3
98.9
(19.8)(59.3)(98.9)
19.8
59.3
98.9

(15.2)(45.7)(76.1)
15.2
45.7
76.1
(15.2)(45.7)(76.1)
15.2
45.7
76.1

(13.9)(41.7)(69.5)
13.9
41.7
69.5
(6.4)
(19.1)(29.0)
7.0
27.3
49.0

(11.1)(33.4)(55.6)
11.1
33.4
55.6
(5.0)
(15.1)(22.8)
5.5
21.7
39.0

(14.5)(43.4)(72.3)
14.5
43.4
72.3
(4.4)
(13.1)(21.8)
4.4
13.1
24.1

(12.6)(37.7)(62.9)
12.6
37.7
62.9
(3.6)
(10.8)(18.0)
3.6
10.8
20.0

(9.6)
(28.7)(47.8)
9.6
28.7
47.8
(3.5)
(10.4)(17.3)
3.4
10.4
19.6

(8.4)
(25.3)(42.2)
8.4
25.3
42.2
(2.8)
(8.5)
(14.2)
2.8
8.5
16.3

*2. ‘Booked’ loss ratios are undiscounted underwriting year loss ratios, including risk adjustment.

3.2. Financial risk

The Group’s activities expose it primarily to financial risks of credit, spread, interest rate, liquidity and foreign exchange risk. The detailed
oversight of supervising risk management and internal control has been delegated to the Group Risk Committee.
There is also an Investment Committee that makes recommendations to the Group and subsidiary Boards on investment strategy, andoverseas the Group’s investments, as well as advising on liquidity funding and foreign exchange management.

In addition, should the Ogden discount rate change in future periods, the impacts on profit before tax and equity are likely to be larger
than those set out above, as a result of including the impacts on claims arising in relation to premium written and earned beyond
31 December 2023.

£m

2023
UWY 2020 impact on:

Impact on profit
before tax gross ofreinsurance

Impact on profit
before tax net ofreinsurance

Impact on
equity gross ofreinsurance

Impact on
equity net ofreinsurance(54.4)
45.6
108.8(25.6)
24.1
57.6(45.6)
38.3
91.2(20.3)
19.3
46.0

3.2.1 Credit risk

The Group defines credit risk as the risk of financial loss if another party fails to perform its obligations. The key areas of exposure tocredit risk for the Group result through its reinsurance programme, investments, bank deposits, loans and advances to customers andpolicyholder receivables.
The Directors consider credit quality and counterparty exposure frequently and in significant detail. The Directors consider that thepolicies and procedures in place to manage credit exposure continue to be appropriate for the Group’s risk appetite and, during 2023,
and historically, no material credit losses have been experienced by the Group.

Financial investments and cash

Credit and counterparty risk is managed by the Group by investing in high quality money market funds, and setting suitable parameters
for asset managers to adhere to when purchasing debt securities. Cash balances and deposits are placed only with highly rated
credit institutions.
The Group primarily invests the following asset types:• Debt securities are held within segregated mandates and investment funds. This includes government debt, private debt and asset
backed securities. The guidelines of the investments ensure management of credit risk. Generally, the duration of the securities isrelatively short and similar to the duration of the on book claims liabilities• Liquidity funds, which in turn invest in a mixture of short-dated fixed and variable rate securities, such as cash deposits, certificates ofdeposits, floating rate notes and other commercial paper• Deposits held with well rated institutions and which are short in duration (under three years). These are classified as held at amortised
cost. Therefore, neither the carrying value of the asset, nor the interest return will be impacted by fluctuations in interest rates.
The detailed holdings are reviewed regularly by the Investment Committee.

Reinsurance assets

To mitigate the risk arising from exposure to reinsurers (in the form of reinsurance recoveries), the Group only conducts business withcompanies of appropriate financial strength ratings. In addition, many reinsurance contracts are operated on a funds withheld basis,
which substantially reduces credit risk, as the Group retains the cash received from policyholders.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Ogden discount rate increase by 125 bps to +1.00%
Ogden discount rate increase by 75 bps to +0.50%
Ogden discount rate increase by 25 bps to 0.00%
Ogden discount rate decrease by 75 bps to -1.00%

Impact on profit
before tax gross ofreinsurance

The sensitivities reflect the impact on profit before tax in 2023 and equity as at the end of 2023, of a change in the booked loss ratios forindividual underwriting years (UWY) as at 31 December 2023, with all other assumptions remaining unchanged.

232

233

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

3. Insurance and financial risks continued
Loans and advances to customers

31 December 2022

The risk appetite for the lending business is set to ensure that the risk taken is commensurate with the expected returns.
Management has defined an amber and a red loan loss limit, representing points at which action is required. These limits have been
defined by management to reflect the business maturity, the business’ ambitions and the economic climate. Risk appetite is assessed atleast annually, while the limits are continuously monitored. See note 7 for further information.

Other receivables

A further principal form of credit risk is in respect of amounts due from policyholders, largely due to the potential for default by
instalment payers. The impact of this is mitigated by the large customer base and low average level of balance recoverable. There is also
mitigation by the operation of numerous high- and low-level controls in this area, including payment on policy acceptance as opposed toinception and automated cancellation procedures for policies whereby payment has not been received.
The amount of bad debt expense relating to policyholder debt charged to the Income Statement in 2023 and 2022 is insignificant.
Trade receivables and other debtors are also subject to credit risk, although this is mitigated by a review of the credit worthiness of all
counterparties prior to them being accepted.
All other assets are assessed as low credit risk under IFRS 9, with no significant amounts past due or impaired. No further disclosure isprovided due to this having an immaterial impact on the financial statements.

Credit exposure and quality analysis

The table below provides information regarding the credit risk exposure of the Group.
31 December 2023

Financial investments measured
at FVTPL
Money market and other funds
Equity Investments (designated FVTPL)
Derivative financial instruments
Investment in associate
Financial investments
classified as FVOCICorporate and private debt securities
Government debt securities
Equity Investments (designated FVOCI)
Financial assets measured
at amortised cost
Deposits with credit institutions
Total financial investments
Cash and cash equivalents
Reinsurance contract assets
Other receivables
Loans and advances to customers(note 7)*2
Total exposure

AA
£m

A
£m

BBB and
Sub-BBB£m

Not rated*1
£m

Total
£m

194.9
–
–
–

236.1
–
–
–

355.7
–
–
–

71.2
–
–
–

30.9
12.4
17.6
1.0

888.8
12.4
17.6
1.0

414.2
57.2
–

235.7
455.3
–

955.3
5.2
–

468.1
1.9
–

210.0
–
23.0

2,283.3
519.6
23.0

–
666.3
–
–

–
927.1
12.2
913.8

116.7
1,432.9
318.2
277.4

–
541.2
22.6
0.7

–
294.9
0.1
–
75.0

116.7
3,862.4
353.1
1,191.9
75.0

666.3

1,853.1

2,028.5

564.5

879.4
1,249.4879.4
6,361.8

AA
£m

A
£m

BBB and
Sub-BBB£m

Not rated*1
£m

Total
£m

66.3
–
–
–

344.2
–
–
–

328.3
–
–
–

89.8
–
–
–

66.7
6.4
33.0
2.4

895.3
6.4
33.0
2.4

258.3
266.7
–

188.5
209.3
–

845.6
1.7
–

451.5
2.1
–

123.9
–
25.1

1,867.8
479.8
25.1

–
591.3
–
–
–

–
742.0
23.5
586.6
–

101.3
1,276.9
254.1
423.4
–

–
543.4
19.2
1.1
–

0.1
257.6
0.2
4.3
87.6

101.4
3,411.2
297.0
1,015.4
87.6

–
591.3

–
1,352.1–
1,954.4

–
563.7

823.9
1,173.6

823.9
5,635.1*1. £26.8 million (2022: £59.4 million) of the unrated exposure stems from money market funds, which are rated AAA/AA, but the underlying securities are not. The remaining unrated exposure is a
mixture of private debt £210.0 million (2022: £123.9 million) and other holdings £57.1 million (2022: £71.8 million).
*2. Loans and advances to customers are assets generated within the Group and hence not externally rated. See note 7 for management’s internal assessment of credit risk.

There were no further significant financial assets that were past due at the close of either 2023 or 2022.

3.2.1.2 Credit Spread risk

Spread risk is the risk of losses arising from changes in the spread between corporate bond yields and the risk-free yield curve.
These losses may not be realized as bonds are typically held to maturity.

Sensitivity to credit spread risk

The impact on equity of 100 and 200 basis point increases in credit spreads on financial investments and cash at the relevant valuation
date, is as follows:
31 December 2023 31 December 2022£m£m

Reduction in equity – 100bps
Reduction in equity – 200bps(75.4)(150.8)(64.4)(128.7)The impact on the Income Statement from movements in credit spreads at the valuation date is immaterial.
No sensitivity analysis has been presented in relation to the impact on insurance liabilities and reinsurance assets in respect of changes
in credit spreads, as it has been assumed that there is no direct impact on the illiquidity premium as a result of a movement incredit spreads.
Also see note 7 for further information on sensitivity in respect of credit risk in relation to loans and advances to customers.

3.2.2 Interest rate risk

The Group considers interest rate risk to be the risk that unfavourable movements in interest rates could adversely impact on the capitalvalues of financial assets and liabilities.
Interest rate risk on financial instruments arises primarily from the Group’s investments in debt securities. These investments are
exposed to the risk of adverse changes in fair values or future cashflows because of changes in market interest rates.
In addition, the value of insurance contract liabilities and reinsurance contracts assets recognised within the financial statements are
impacted by changes in interest rates, given that these are discounted using a risk-free interest rate, plus illiquidity premium.
The Group manages interest rate risk by closely matching, where possible, the durations of insurance contracts with fixed and guaranteed
terms and the supporting financial assets. The Group monitors its interest rate risk exposure through periodic reviews of asset andliability positions. Additionally, estimates of cashflows and the impact of interest rate fluctuations are modelled and reviewed every
six months.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

AAA£mFinancial investments measured at FVTPL
Money market and other funds
Equity Investments (designated FVTPL)
Derivative financial instruments
Investment in associate
Financial investments classified as FVOCICorporate and private debt securities
Government debt securities
Equity Investments (designated FVOCI)
Financial assets measured
at amortised cost
Deposits with credit institutions
Total financial investments
Cash and cash equivalents
Reinsurance contract assets
Trade and other receivables
Loans and advances to customers(note 7)*2
Total exposure

AAA
£m

234

235

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

3. Insurance and financial risks continued
Loans and advances to customers

3.2.3 Liquidity risk

The Group’s consumer loan portfolio consists of fixed rate loans, which are funded at a floating variable rate. The Group has interest
rate swap arrangements in place to eliminate the majority of the interest rate risk variability in the cashflows payable on the loan
backed securities.

Hedge accounting

Hedge accounting is applied when the criteria specified in IFRS 9 are met. In line with IFRS 9, the gain or loss on the hedged position as at
the balance sheet date is recognised through Other Comprehensive Income.
This results in a hedging reserve in relation to the interest rate swap.

Financial liabilities

Following the repurchase of the subordinated loan notes and the issuance of new subordinated loan notes, the Group holds two
financial liabilities in the form of a £55.1 million subordinated loan note with a ten year maturity and fixed rate coupon of 5.5% with aredemption date of 25 July 2024 and a £250.0 million subordinated loan note with a ten year maturity and fixed rate coupon of 8.5% witha redemption date of 6 January 2034. The liabilities are valued at amortised cost and therefore neither the carrying value of the deposits,
nor the interest payable, will be impacted by fluctuations in interest rates.

Other financial assets and liabilities

There is no significant exposure to interest rate risk for other financial assets and liabilities due to these being held at amortised cost.

Sensitivity to interest rate risk

31 December 2023£m

Impact on profit
before tax gross ofreinsurance

Impact on profit
before tax net ofreinsurance

Impact on profit
before tax gross ofreinsurance

Impact on profit
before tax net ofreinsurance

22.2(24.3)
42.7(51.2)

15.4(17.0)
29.5(36.2)

60.1(68.4)
113.9(148.5)49.7(57.4)
93.8(125.9)

Increase of 100 basis points
Decrease of 100 basis points
Increase of 200 basis points
Decrease of 200 basis points

The impact on profit before tax of a 100 basis and 200 basis point move in relation to investments and cash is not significant, at£15.2 million and £30.4 million respectively. The impact on equity is more significant, at £81.7 million and £163.4 million respectively, as aresult of the gains and losses on the majority of the financial investment portfolio being reflected in Other Comprehensive Income.
Sensitivities for the 2022 comparative period are not significantly different to those provided above.
Changes in interest rates mainly affect the Income Statement and equity as follows:

Income statement• Interest revenue and other finance costs on floating-rate financial instruments (assuming that interest rates had varied by 100 basis
points during the year)• Changes in the fair value of derivatives and fixed-rate financial instruments measured at FVTPL• Changes in the discounted fulfilment cashflows of onerous contracts• Insurance claims expenses, reinsurance claims recoveries and finance income or expenses recognised in profit or loss, as a result of
discounting future cashflows at a revised current rate (assuming that interest rates had varied by 100 basis points during the year).

Equity• Changes in the fair value of fixed-rate financial assets measured at FVOCI• Insurance finance income and expenses recognised in OCI as a result of discounting future cashflows at a revised current rate
• The effect on profit or loss as above, net of tax.
The Group’s Solvency II balance sheet, which includes technical provisions discounted using Bank of England and EIOPA yield curves
reflects a low sensitivity to interest rates as a result of well-matched durations of assets and liabilities.

The Group holds appropriate liquidity buffers at the Parent Company and subsidiary levels.
Further, as noted above, a significant portion of insurance funds are invested in investment funds with same day liquidity, meaning thata large proportion of the Group’s cash and investments are readily available.

Insurance and reinsurance contracts

The following table analyses the undiscounted, best estimate cashflows of the Group’s claims liabilities under its insurance andreinsurance contracts, which reflects the dates on which the cashflows are expected to occur. Liabilities and assets for remaining
coverage are excluded from this analysis.
< 1 year£m

1 –3 years£m

3 –5 years£m> 5 years
£m

667.1
152.1
277.1

691.2
38.8
163.1

428.8
7.8
51.9

791.9
0.5
123.5

609.5
105.2
263.7

643.2
31.7
120.7

384.6
9.8
52.4

679.3
1.3
110.0

< 1 year£m

1 –3 years£m

3 –5 years£m> 5 years
£m

37.5
115.2
255.5

56.6
40.8
90.0

58.4
7.9
41.2

271.5
0.6
120.0

31.4
79.7
257.3

65.3
17.3
79.9

33.0
4.6
35.6

235.6
0.6
78.7

At December 2023

< 1 year£m

1 –3 years£m

3 –5 years£m> 5 years£mFinancial liabilities
Subordinated notes*1
Loan backed securities
Other borrowings
Trade and other payables
Lease liabilities*1
Total financial liabilities

79.4
258.9
55.0
303.8
14.9
712.0

42.5
341.6
–
1.9
15.1
401.1

42.5
128.3
–
0.1
11.5
182.4

366.9
30.8
–
–
50.5
448.2

At December 2022

< 1 year£m

1 –3 years£m

3 –5 years£m> 5 years£mFinancial liabilities
Subordinated notes*1
Loan backed securities
Other borrowings
Trade and other payables
Lease liabilities*1
Total financial liabilities

11.0
241.0
20.0
254.9
10.2
537.1

211.0
326.0
–
–
18.4
555.4

–
125.5
–
–
16.6
142.1

–
22.2
–
–
57.7
79.9

Insurance contract liabilities

31 December 2023
UK Motor
UK Non-motor insurance
International
31 December 2022
UK Motor
UK Non-motor insurance
International
Reinsurance contract assets

31 December 2023
UK Motor
UK Non-motor insurance
International
31 December 2022
UK Motor
UK Non-motor insurance
International

Financial liabilities*1. Maturity analysis has been performed on a cash-settled basis.

*1. Maturity analysis has been performed on a cash-settled basis.

A breakdown of the Group’s other borrowings, trade payables and other payables is shown in note 11. The majority of trade and otherpayables will mature within three to six months of the balance sheet date.
Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

The impact on profit and loss (before tax) and equity arising from the impact of 100 basis point and 200 basis point increases anddecreases in interest rates on insurance contract liabilities and reinsurance contract assets, is as follows:

Liquidity risk is defined as the risk that the Group does not have sufficient available financial resources to enable it to meet its obligations
as they fall due, or can only secure them at excessive cost.

236

237

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

3.2.5 Objectives, policies and procedures for managing capital

3. Insurance and financial risks continued
Financial assets

The following table analyses the carrying value of financial investments and cash and cash equivalents by contractual maturity, which canfund the repayment of liabilities as they crystallise, as well as the Group’s other financial assets recognised under IFRS 9. The Group has
disclosed a maturity analysis for financial assets that it holds as part of managing liquidity risk because it considers that this informationis necessary to enable users of financial statements to evaluate the nature and extent of its liquidity risk.
At December 2023

Financial investments
Money market funds
Derivative financial instruments
Deposits with credit institutions
Debt securities
Total financial investments
Cash and cash equivalents
Total financial investments and cash
Insurance, trade and other receivables
Loans and advances to customers
Total financial assets

Financial investments
Money market funds
Derivative financial instruments
Deposits with credit institutions
Debt securities
Total financial investments
Cash and cash equivalents
Total financial investments and cash
Insurance, trade and other receivables
Loans and advances to customers
Total financial assets

1 –3 years£m

3 –5 years£m> 5 years
£m

888.8
19.1
116.7
336.7
1,361.3
353.1
1,714.4347.7
251.4
2,313.5–(0.6)–
1,000.6
1,000.0–
1,000.0–439.4
1,439.4

–
(0.9)
–
754.2
753.3
–
753.3
–
167.1
920.4

–
–
–
711.4
711.4
–
711.4
–
21.5
732.9

< 1 year£m

1 –3 years£m

3 –5 years£m> 5 years
£m

895.3
19.9
101.4
431.4
1,448.0
297.0
1,745.0
275.2
235.1
2,255.3

–
13.1
–
717.3
730.4
–
730.4
–
401.1
1,131.5

–
–
–
626.6
626.6
–
626.6
–
159.2
785.8

–
–
–
572.3
572.3
–
572.3
–
28.5
600.8

The Group aims to operate a capital-efficient business model by transferring a significant proportion of underwriting risk to co-insurance
and reinsurance partners. This in turn reduces the amount of capital the Group needs to retain to operate and grow and allows the Groupto distribute the majority of its earnings as dividends.
The Board has determined that it will hold capital as follows:• Sufficient Solvency II Own Funds to meet all of the Group’s Solvency II capital requirements (over a 1 year and ultimate time horizon)

The Group’s Directors believe that the cashflows arising from these assets will be consistent with this profile. Liquidity risk is not,therefore, considered to be significant.

3.2.4 Foreign exchange risk

Foreign exchange risk arises from unfavourable movements in foreign exchange rates that could adversely impact the valuation ofoverseas assets and liabilities.

• An additional contingency to cover unforeseen events and losses that could realistically arise. This risk appetite buffer is assessed via
stress testing performed on an annual basis and is calibrated in relation to the one-year regulatory SCR.
The Group’s current risk appetite buffer is 50% above the regulatory SCR.
The Group’s dividend policy is to:• Pay a normal dividend equal to 65% of post-tax profits for the period• Pay a special dividend calculated with reference to distributable reserves and surplus capital held above the risk appetite buffer.
This policy gives the Directors flexibility in managing the Group’s capital.
As noted above, the Group’s regulatory capital position is calculated under the Solvency II Framework. The Solvency Capital Requirement(SCR) is based on the Solvency II Standard Formula, with a capital-add-on to reflect limitations in the Standard Formula with respect toAdmiral’s risk profile (predominately in respect of profit commission arrangements in co-and reinsurance agreements and risks relating to
Periodic Payment Order (PPO) claims).

Solvency ratio (unaudited)

At the date of this report, the Group’s regulatory solvency ratio, calculated using a capital add-on that has not been subject to regulatory
approval, is 200% (2022: 180%). This includes the recognition of the 2023 final dividend of 52.0 pence per share (2022: 52.0 pence per share).
The Group’s 2023 Solvency and Financial Condition Report (SFCR) will, when published, disclose a solvency ratio that is calculated at
the balance sheet date rather than annual report date, using the capital add-on that was most recently subject to regulatory approval.
The estimated and unaudited SFCR solvency ratio is 183%, with the reconciliation between this ratio and the 200% noted above being
as follows:
31 December 2023 31 December 2022
£m
£m

Regulatory solvency ratio (estimated and unaudited)
Solvency ratio as reported above
Change in valuation date*1
Other (including impact of updated, unapproved capital add-on)
Solvency ratio to be reported (SFCR)
The Group has complied with its regulatory capital requirements throughout the period.

Subsidiaries

The Group’s exposure to net assets and profits in currencies other than the reporting currency is immaterial other than for US dollars andeuros. The Group’s exposure to net assets held in dollars at the balance sheet date was £3.9 million (2022: £23.6 million); the exposure to
net assets held in euros was £76.8 million (2022: £69.3 million).

4. Operating segments
4a. Accounting policies(i) Group consolidation

If the sterling rates with euros had strengthened/weakened by 10%, the Group’s profit before tax for the year would increase/decreaseby £1.3 million (2022: £2.3 million).

180%
(11%)
(20%)
149%

*1. The solvency ratio reported above includes additional own funds generated post year-end up to the date of this report.

The Group is exposed to foreign exchange risk through its operations overseas. Although the relative size of the international operations
means that the risks are relatively small, increasingly volatile foreign exchange rates could result in larger potential gains or losses.
Assets held to fund insurance liabilities are held in the currency of the liabilities; however, surplus assets held as regulatory capital inforeign currencies remain exposed.

If the sterling exchange rates against US dollars had strengthened/weakened by 10%, the Group’s profit before tax for the year would
increase/decrease by £2.0 million (2022: £3.9 million).

200%
(11%)
(6%)
183%

The Group manages the capital of its subsidiaries to ensure that all entities within the Group are able to continue as going concerns andalso to ensure that regulated entities meet regulatory requirements with an appropriate risk appetite buffer. Excess capital above theselevels within subsidiaries is paid up to the Group Parent Company in the form of dividends on a regular basis.

The consolidated financial statements comprise the results and balances of the Company and all entities controlled by the Company,
being its subsidiaries and SPEs (together referred to as the Group), for the year ended 31 December 2023 and comparative figures forthe year ended 31 December 2022. The financial statements of the Company’s subsidiaries and its SPEs are consolidated in the Groupfinancial statements.
The Company controls 100% of the voting share capital of all its principal subsidiaries, except Admiral Law Limited.
An SPE is fully consolidated into the Group financial statements under IFRS 10, where the Group has control over the SPE.
The Parent Company financial statements present information about the Company as a separate entity and not about its Group.
In accordance with IAS 24, transactions or balances between Group companies that have been eliminated on consolidation are notreported as related party transactions in the consolidated financial statements.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

At December 2022

< 1 year£m

The Group’s capital management policy defines the Board oversight, risk appetite and tier structure of the Group’s capital in addition to
management actions that may be taken in respect of capital, such as dividend payments.

238

239

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

4. Operating segments continued(ii) Foreign currency translation

Items included in the financial records of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in pounds
sterling, the Group’s presentational currency, rounded to the nearest £0.1 million.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of thetransactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end
exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement.
Non-monetary items measured at cost are translated at their historic rate and non-monetary items held at fair value are translated using
the foreign exchange rate on the date that the fair value was established.
The financial statements of foreign operations whose functional currency is not pounds sterling are translated into the Group
presentation currency (pound sterling) as follows:• Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet• Income and expenses for each Income Statement are translated at an average exchange rate (unless this average is not a reasonableapproximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses aretranslated at the date of the transaction)• All resulting exchange differences are recognised in Other Comprehensive Income and in a separate component of equity except tothe extent that the translation differences are attributable to non-controlling interests.

4b. Segment reporting

The Group has four reportable segments, as described below. These segments represent the principal split of business that is regularly
reported to the Group’s Board of Directors, which is considered to be the Group’s chief operating decision maker in line with IFRS 8
Operating Segments.

Turnover*1
Insurance revenue
Insurance revenue net of XoL
Insurance expenses
Insurance claims net of XoL
Quota share reinsurance result
Net movement in onerous loss component
Underwriting result
Net investment income*2
Net interest income from financial services
Net other revenue and operating expenses
Segment profit/(loss) before tax*4
Other central revenue and expenses,
including share scheme charges*4
Investment and interest income
Finance costs
Consolidated profit before tax
Taxation expense
Consolidated profit after tax

UK Insurance£mAdmiral
Money
£m

Other
£m

Eliminations*3
£m

Total
£m

3,776.0
2,596.8
2,517.3(559.6)(1,560.2)(18.4)
4.3
383.4
55.2
–
157.9
596.5

894.9
842.6
811.8
(249.4)(565.2)(22.1)
0.6(24.3)
4.3–
2.0(18.0)

92.1
–
–
–
–
–
–
–
–
66.4
(56.2)
10.2

48.5
46.7
44.4
(27.9)(33.1)
0.1–(16.5)
0.3
0.2(12.4)(28.4)

–
–
–
–
–
–
–
–
(3.2)
1.5
–
(1.7)

4,811.5
3,486.1
3,373.5(836.9)(2,158.5)(40.4)
4.9
342.6
56.6
68.1
91.3
558.6
(101.8)
4.6(18.6)
442.8(105.6)
337.2

Revenue and results for the corresponding reportable segments for the year ended 31 December 2022 are shown below.
Year ended 31 December 2022

UK Insurance

The segment consists of the underwriting of Motor, Household, Pet and Travel insurance and other products that supplement theseinsurance policies within the UK. It also includes the generation of revenue from additional products and fees from underwriting
insurance in the UK. The Directors consider the results of these activities to be reportable as one segment as the activities carried out
in generating the revenue are not independent of each other and are performed as one business. This mirrors the approach taken in
management reporting.

International Insurance

The segment consists of the underwriting of car and home insurance and the generation of revenue from additional products and feesfrom underwriting car insurance outside of the UK. It specifically covers the Group operations Admiral Seguros in Spain, ConTe in Italy,
L’olivier Assurance in France and Elephant Auto in the US. None of these operations are reportable on an individual basis, based on thethreshold requirements in IFRS 8.

Admiral Money

The segment relates to the Admiral Money business launched in 2017, which provides unsecured personal loans and car finance productsin the UK, primarily through the comparison channel, credit scoring applications and direct channels.

Other

The ‘Other’ segment is designed to be comprised of all other operating segments that are not separately reported to the Group’s Boardof Directors and do not meet the threshold requirements for individual reporting. It includes the results of Admiral Pioneer, and compare.
com prior to its disposal on 27 March 2023.
Taxes are not allocated across the segments and, as with the corporate activities, are included in the reconciliation to the Consolidated
Income Statement and Consolidated Statement of Financial Position.
An analysis of the Group’s revenue and results for the year ended 31 December 2023, by reportable segment, is shown below.
The accounting policies of the reportable segments are materially consistent with those presented in the notes to the financial
statements for the Group.

Turnover*1
Insurance revenue
Insurance revenue net of XoL
Insurance expenses
Insurance claims net of XoL
Quota share reinsurance result
Net movement in onerous loss
component
Underwriting result
Net investment income*2
Net interest income fromfinancial services
Net other revenue andoperating expenses
Segment profit/(loss) before tax*4
Other central revenue and expenses,
including share scheme charges*4
Investment and interest income
Finance costs
Consolidated profit before tax
Taxation expense
Consolidated profit after tax

UK Insurance£mInternational
Insurance£mAdmiral
Money
£m

Other
£m

Eliminations*3
£m

Total
£m

2,784.3
2,174.2
2,115.7(475.7)(1,466.6)
104.5

795.9
750.0
732.0
(254.6)(547.1)
13.9

59.0
–
–
–
–
–

41.7
32.7
31.3
(24.8)(17.5)
(1.0)

(0.3)
–
–
–
–
–

3,680.6
2,956.9
2,879.0(755.1)(2,031.2)
117.4

5.1
283.0
18.6

(1.0)
(56.8)
1.1

–
–
–

–
(12.0)
0.1

–
–
(2.2)

4.1
214.2
17.6

–

–

44.6

–

1.5

46.1

208.1
509.7

(0.5)
(56.2)(42.5)
2.1(5.6)(17.5)

–
(0.7)

159.5
437.4
(74.9)
10.1(11.4)
361.2(75.9)
285.3*1. Turnover is an Alternative Performance Measure presented before intra-group eliminations. Refer to the glossary and note 13 for further information.
*2. Net investment income is reported net of impairment of financial assets, in line with management reporting.
*3. Eliminations are in respect of the intra-group trading between the Group’s comparison and UK and International Insurance entities and intra-group interest charges related to the UK Insurance andAdmiral Money segment.
*4. Segment results are presented net of gross share scheme charges, and any quota share reinsurance recoveries; these net share scheme charges are presented within ‘Other central revenue andexpenses, including share scheme charges’ in line with internal management reporting.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

On disposal of a foreign operation, the cumulative amount recognised in equity relating to that particular operation is recognised in the
Income Statement.

Year ended 31 December 2023
International
Insurance
£m

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241

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

4. Operating segments continued
Segment revenues

Co-insurance contracts

The UK and International Insurance reportable segments derive all insurance revenue from external policyholders. Revenue within thesesegments is not derived from an individual policyholder that represents 10% or more of the Group’s total revenue.
Revenues from external customers for products and services are consistent with the split of reportable segment revenues.

Information about geographical locations

Under the terms of these arrangements, the co-insurers reimburse the Group for the same proportionate share of the directly
attributable costs in fulfilling the insurance contracts.

All material revenues from external customers, and net assets attributed to a foreign country, are shown within the International
Insurance reportable segment shown on the previous pages.

(ii) Level of aggregation

Segment assets and liabilities

IFRS 17 requires an entity to determine the level of aggregation for applying its requirements. The level of aggregation for the Groupis determined firstly by dividing the business written into portfolios, which comprise contracts subject to similar risks and which aremanaged together.

The identifiable segment assets and liabilities at 31 December 2023 are as follows:Year ended 31 December 2023
UK Insurance£mInternational
Insurance£mAdmiral
Money
£m

Other
£m

Eliminations
£m

Total
£m

5,128.1(3,981.6)
1,146.5

1,045.8(958.3)
87.5

980.1(969.2)10.9

256.5(419.7)(163.2)(610.8)610.8–

6,799.7(5,718.0)
1,081.7(88.9)
992.8

Reportable segment assets
Reportable segment liabilities
Reportable segment net assets
Unallocated assets and liabilities
Consolidated net assets

The Group’s insurance business is therefore divided into portfolios based on both the product (line of business such as motor, householdetc), and geography (UK, Italy, Spain, France and the US).
IFRS 17 requires a further division of the portfolios into a ‘group’ of contracts (being the lowest unit of account) based on expected
profitability, and also requires that no group contains contracts issued more than one year apart. However, the Group makes an evaluationof the smallest unit of account, i.e. whether a series of contracts need to be treated together as one unit based on reasonable andsupportable information, or whether a single contract contains components that need to be separated and treated as if they were standalone contracts.
Following the application of the IFRS 17 level of aggregation requirements, each of the Group’s portfolios (which are determined bygeography and line of business) is further disaggregated by year of issue into a group of contracts based on expected profitability at
inception into three categories:a) A group of contracts that are onerous at initial recognition, if any

Eliminations represent inter-segment funding, balances included in insurance and other receivables and deemed loan receivables inrespect of securitised loan receivables.

b) A group of contracts that at initial recognition have no significant possibility of becoming onerous subsequently, if anyc) A group of the remaining contracts in the portfolio.

The segment assets and liabilities at 31 December 2022 are as follows:

The Group has elected to group together those contracts that would fall into different groups only because law or regulation specificallyconstrains its practical ability to set a different price or level of benefits for policyholders with different characteristics.

Year ended 31 December 2022 (restated)
UK Insurance£mInternational
Insurance£mAdmiral
Money
£m

Other
£m

Eliminations
£m

Total
£m

4,579.0(3,508.4)
1,070.6

955.3(863.4)
91.9

929.1(902.0)27.1

218.0(485.2)(267.2)(682.7)682.7–

5,998.7(5,076.3)
922.4(35.4)
887.0

5. Insurance service resulta) Accounting policies(i) Insurance, Reinsurance and Co-insurance contracts classification

Under IFRS 17, an insurance contract is defined as a contract under which one party (the insurer) accepts significant insurance risk fromanother party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event)adversely affects the policyholder.

Insurance contracts

The Group issues insurance contracts in the normal course of business, under which it accepts significant insurance risk from its
policyholders. As a general guideline, the Group determines whether it has significant insurance risk by comparing benefits payable after
an insured event with benefits payable if the insured event did not occur.

To assess the profitability of groups of contracts, the Group determines the appropriate level at which reasonable and supportable
information is available. The Group assumes that no contracts in the portfolio are onerous at initial recognition unless facts andcircumstances indicate otherwise. For contracts that are not onerous, the Group assesses, at initial recognition, that there is no significant
possibility of becoming onerous subsequently by assessing the likelihood of changes in applicable facts and circumstances. The Groupconsiders facts and circumstances to identify whether a group of contracts are onerous based on:• Pricing information• Results of similar contracts it has recognised• Environmental factors, e.g. a change in market experience or regulations.
The Group divides portfolios of reinsurance contracts held applying the same principles set out above, except that the references toonerous contracts refer to contracts on which there is a net gain on initial recognition.
Reinsurance contracts held are assessed for aggregation requirements on an individual contract basis. For many of the Group’s
reinsurance contracts held, a group comprises a single contract. The Group reports its reinsurance contracts by portfolio, which aggregate
the contracts by type of reinsurance (e.g. quota share or XoL) and product.
These groups represent the level of aggregation at which insurance contracts issued and reinsurance contracts held are initiallyrecognised and measured. Such groups are not subsequently reconsidered.

Reinsurance contracts

The Group also enters into both excess of loss (‘XoL’) and quota share reinsurance contracts. A contract is only accounted for as areinsurance contract in these financial statements where there is significant insurance risk transfer, after an assessment made bymanagement based on the terms and conditions of the contracts.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Unallocated assets and liabilities consist of other central assets and liabilities, plus deferred and current corporation tax balances.
These assets and liabilities are not regularly reviewed by the Board of Directors in the reportable segment format.

Reportable segment assets
Reportable segment liabilities
Reportable segment net assets
Unallocated assets and liabilities
Consolidated net assets

Co-insurance arrangements are contracts entered into by the Group’s intermediaries, under which insurance risks are shared on a
proportional basis, with the co-insurer taking a specific percentage of premium written and being responsible for the same proportionof each claim. The co-insurer therefore takes direct insurance risk from the policyholder and is subsequently directly responsible to theclaimant for its proportion of the claim. As the contractual liability is several and not joint, neither the premiums nor the claims relating
to any external co-insurance contract (i.e. outside the Group) are included in the Income Statement.

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243

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

5. Insurance service result continued(iii) Recognition, modification and derecognition(vi) Measurement• The beginning of the coverage period

Area

IFRS 17 options

Adopted approachPremium allocation
approach (‘PAA’)eligibility

Subject to specified criteria, the PAA can be adopted
as a simplified approach to the IFRS 17 general model.

Insurance acquisition
cashflows for insurance
contracts issued

Where the coverage period of all contracts withina group is not longer than one year, insurance
acquisition cashflows can either be expensed as
incurred, or allocated, using a systematic and rational
method, to groups of insurance contracts (including
future groups containing insurance contracts that are
expected to arise from renewals) and then amortisedover the coverage period of the related group. For
groups containing contracts longer than one year,
insurance acquisition cashflows must be allocated torelated groups of insurance contracts and amortisedover the coverage period of the related group.
Where there is no significant financing component
in relation to the LRC, or where the time between
providing each part of the services and the related
premium due date is no more than a year, an entity is
not required to make an adjustment for accretion ofinterest on the LRC.
For PAA groups, where claims or directly attributable
insurance expenses are expected to be paid within
a year of the date that the claim is incurred, it is
not required to adjust these amounts for the timevalue of money.

Coverage period for the Group’s insurance
contracts assumed is one year or less and so
qualifies automatically for PAA.
Reinsurance contracts (both XoL and quota share)include contracts with a coverage period greaterthan one year. However, there is no material
difference in the measurement of the asset forremaining coverage between PAA and the generalmodel, therefore these qualify for PAA.
The Group’s insurance contracts are all one year
or less. The Group has therefore taken the option
to expense acquisition costs as incurred.

Groups of insurance contracts issued are recognised from the earliest of the following:• The date when the first payment from the policyholder is due or actually received, if there is no due date
• For a group of onerous contracts, when the Group determines that facts and circumstances indicate that the group is onerous.

Accounting policy choices

A group of reinsurance contracts held is entered into from the earlier of:• The beginning of the coverage period of the group of reinsurance contracts held. However, the Group delays the recognition of a groupof reinsurance contracts held that provide fully proportionate coverage until the date any underlying insurance contract is initiallyrecognised, if that date is later than the beginning of the coverage period of the group of reinsurance contracts held
• The date the Group recognises an onerous group of underlying insurance contracts if the Group entered into the related reinsurance
contract held in the group of reinsurance contracts held at or before that date.
The Group derecognises an insurance or reinsurance contract when it is:• Extinguished i.e. when the obligation specified in the insurance contract expires or is discharged or cancelled, or• The contract is modified such that the modification results in a change in the measurement model or the applicable standard formeasuring a component of the contract, substantially changes the contract boundary, or requires the modified contract to be included ina different group. In such cases, the Group derecognises the initial contract and recognises the modified contract as a new contract.

(iv) Contract boundary

The Group includes in the measurement of a group of insurance contracts all the future cashflows within the boundary of each contract
in the group. Cashflows are within the boundary of an insurance contract if they arise from substantive rights and obligations thatexist during the reporting period in which the Group can compel the policyholder to pay the premiums, or in which the Group has
a substantive obligation to provide the policyholder with insurance contract services. A substantive obligation to provide insurance
contract services ends when:• The Group has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or level of benefits
that fully reflects those risks, or• Both of the following criteria are satisfied:i. The Group has the practical ability to reassess the risks of the portfolio of insurance contracts that contain the contract and, as aresult, can set a price or level of benefits that fully reflects the risk of that portfolio

Liability for Remaining
Coverage (‘LRC’),adjusted for financial
risk and time valueof money
Liability for Incurred
Claims (‘LIC’), adjusted
or time value of money

ii. The pricing of the premiums up to the date when the risks are reassessed does not take into account the risks that relate to periods
after the reassessment date.
A liability or asset relating to expected premiums or claims outside the boundary of the insurance contract is not recognised.
Such amounts relate to future insurance contracts. In assessing the practical ability to reprice, risks transferred from the policyholder tothe Group, such as insurance risk and financial risk, are considered; other risks, such as lapse or surrender risk, are not included.

For some claims, for example within the travel
product line in the UK, and other immaterial
product lines across the Group, the incurred claims
are expected to be paid out in less than one year.
Similarly, the majority of directly attributable
insurance expenses are expected to be settled
within one year. For these claims and expenses, noadjustment is made for the time value of money.
In addition, given the impact of discounting
outstanding claims in the Group’s US insurance
operation is immaterial, no discounting has
been applied.

For groups of reinsurance contracts held, cashflows are within the contract boundary if they arise from substantive rights and obligationsof the Group that exist during the reporting period in which the Group is compelled to pay amounts to the reinsurer or in which theGroup has a substantive right to receive services from the reinsurer.

(v) Presentation

The Group presents separately, in the Statement of Financial Position, the carrying amount of portfolios of insurance contracts issued thatare assets, portfolios of insurance contracts issued that are liabilities, portfolios of reinsurance contracts held that are assets and portfolios ofreinsurance contracts held that are liabilities.

Insurance financeincome and expense

The Group disaggregates the total amount recognised in the Consolidated Income Statement and Consolidated Statement of Other
Comprehensive Income into an insurance service result, comprising insurance revenue and insurance service expense, and insurance financeincome or expenses.

Interim reporting

The Group separately presents income or expenses from reinsurance contracts held from the expenses or income from insurance contracts
issued. This is presented as one single amount in the Consolidated Income Statement, with additional disclosure provided in the notes to thefinancial statements.

There is no allowance made for accretion ofinterest on the LRC given that the premiums arereceived within one year of the coverage period.

There is an option to disaggregate part of the
movement in the LIC resulting from changes
in discount rates, and present this in Other
Comprehensive Income (‘OCI’).
Where an entity is required to apply IAS 34 (as for theGroup) there is an option as to whether to choose ayear-to-date” basis or a “period to date” basis forfinancial reporting.

For all other business, the LIC is adjusted for thetime value of money.
The impact on LIC of changes in discount rates will
be captured within OCI, in line with the accounting
for assets backing the insurance claims liabilities.
The Group has opted to apply the option to use
year-to-date accounting for interim reporting.

The Group does not disaggregate the change in risk adjustment for non-financial risk between a financial and non-financial portion.
It includes the entire change as part of the insurance service result.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

When a modification is not treated as a derecognition, the Group recognises amounts paid or received for the modification with thecontract as an adjustment to the relevant liability for remaining coverage.

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245

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

5. Insurance service result continued
Fulfilment cashflows within the contract boundary

Insurance revenue

The fulfilment cashflows (‘FCF’) are the current estimates of the future cashflows within the contract boundary of a group of contracts
that the Group expects to collect from premiums and pay out for claims, benefits and expenses, adjusted to reflect the timing and theuncertainty of those amounts. The estimates of future cashflows:• Are based on a probability weighted mean of the full range of possible outcomes• Are determined from the perspective of the Group, provided the estimates are consistent with observable market prices formarket variables

The insurance revenue for the period is comprised of the amount of expected premium receipts (excluding any investment component)
allocated to the period. The Group allocates the expected premium receipts to each period of insurance contract services on the basis of
the passage of time. However, if the expected pattern of release of risk during the coverage period differs significantly from the passageof time, for example due to seasonality of claims, then the allocation is made on the basis of the expected timing of incurred insurance
service expenses. For the periods presented, all insurance premium revenue has been recognised based on the passage of time.
If a change in allocation is necessary due to a change of facts and circumstances, the change is accounted for prospectively as a changein accounting estimate.
The Group’s insurance revenue is comprised of the following component parts:• Reflect conditions existing at the measurement date.
In estimating future cashflows, the Group incorporates, in an unbiased way, all reasonable and supportable information that is available
without undue cost or effort at the reporting date. This information includes both internal and external historical data about claims andother experience, updated to reflect current expectations of future events. The estimates of future cashflows reflect the Group’s viewof current conditions at the reporting date, as long as the estimates of any relevant market variables are consistent with observable
market prices.
An explicit risk adjustment for non-financial risk is estimated separately from the other estimates.
For the Group’s contracts which are measured under the PAA, unless the contracts are onerous, the explicit risk adjustment for
non-financial risk is only estimated and included within the measurement of the liability for incurred claims.

• Instalment income: In contrast to IFRS 4, instalment income related to the risk attaching part of the premium that is retained within
the Group is recognised as part of the insurance revenue cashflows due to it being considered non-distinct from the underlying
insurance policy, as set out in note 2 to the financial statements.
• Administration fees: Administration fees are costs charged to the customer for arranging a change to their policy. The performanceobligation is the change in a customer’s policy and given that the obligation related to activities that are required to fulfil the insurance
contract and the policyholder cannot benefit from the service by itself, it is considered as part of fulfilment cashflows,i.e. the full transaction price is therefore recognised as part of insurance revenue on a point in time basis.
IFRS 17 does not require separate insurance revenue analysis for insurance contracts measured under PAA. See Appendix 1 and note 13
for further information regarding the disaggregation of insurance revenue.

The Group estimates certain fulfilment cashflows at the portfolio level or higher and then allocates such estimates to groupsof contracts.

As stated in note 2, the Group has excluded any instalment income and administration fees derived from the proportion of insurance
coverage under the co-insurance arrangements where the Group bears no risks.

The Group uses consistent assumptions to measure the estimates of the present value of future cashflows for the group of reinsurance
contracts held and such estimates for the groups of underlying insurance contracts.

Insurance service expenses

Discount rates

The following elements are included in insurance service expenses:• Incurred claims and benefits excluding investment components

A bottom-up approach has been applied in the determination of discount rates. Under this approach, the discount rate is determined as
the risk-free yield adjusted for differences in liquidity characteristics between the financial assets used to derive the risk-free yield andthe relevant liability cashflows (known as an illiquidity premium).

• Other incurred directly attributable insurance service expenses, including administration and acquisition expenses, and share scheme
expenses that are attributable to insurance services

A separate risk-free yield is obtained for each currency, where a material amount of business is written in that currency. The risk-free yield
curve is obtained using rates published by the Prudential Regulation Authority (PRA) for the UK insurance business, whilst for AECS theEIOPA risk free term structures are used. These curves are available from October 2015 and provides rates for terms up to 150 years.

• Changes that relate to future service (i.e. losses/reversals on onerous groups of contracts from changes in the loss components).

For periods prior to October 2015, observable market data is available for terms up to 25 years for GBP (30 years for EUR). For terms
that aren’t directly observable from market data, the Smith-Wilson approach is used to derive the rates which extrapolates between
the observable data and an assumed ultimate forward rate. The Smith-Wilson approach is used to derive the published Solvency II yield
curves, which supports consistency over time.
Similarly to the approach to risk-free rates, an illiquidity premium will be set by currency. The illiquidity premium will be set by reviewing
internal illiquidity benchmarks and, when required, performing quantitative analysis to support qualitative judgement.
The following weighted average rates, based on the yield curves derived using the above methodology, were used to discount the liability
for incurred claims at the end of the current and prior periods:
31 December 2023

UK Insurance
International (European motor)

31 December 2022

1 year

3 years

5 years

10 years

1 year

3 years

5 years

10 years

5.4%
4.0%

4.3%
3.1%

4.0%
3.0%

3.9%
3.0%

5.1%
3.8%

5.0%
3.9%

4.7%
3.8%

4.4%
3.7%

Generally, the illiquidity premium is expected to be stable over time and re-assessment of the assumption will be triggered by significant
changes in internal illiquidity benchmarks and/or changes in the illiquidity of the liabilities (e.g. claims mix). Quantitative analysis will be
performed when the illiquidity premium changes, including performing sensitivity analysis on the assumption.

• Changes that relate to past service (i.e. changes in the fulfilment cashflows relating to the Liability for Incurred Claims)
Only items that reflect insurance service expenses (i.e. incurred claims and other insurance service expenses arising from insurance
contracts the Group issues) are reported as insurance expenses. Cashflows that are not directly attributable to a portfolio of insurance
contracts, such as some product development and training costs, are recognised in other operating expenses as incurred.
The total costs incurred in relation to the co-insurance share of insurance business are presented within other operating expenses,
as is the reimbursement of these costs, given that they are not related to the costs directly attributable to fulfilling the Group’s
insurance contracts.

Reinsurance net expense/income

The Group has presented the income or expenses from a group of reinsurance contracts held separately from insurance finance income
or expenses as a single amount and has provided in the disclosure note a separate analysis of the amounts recovered from the reinsurer
and an allocation of the premiums paid that together give a net amount equal to that single amount.
As part of its quota share arrangements, the Group typically recovers either a set ceding commission, or the quota share reinsurer’s
proportional share of the expenses that are incurred in fulfilling the insurance contracts.
These amounts are typically settled net with the premium charged and are not contingent on claims. As a result, under IFRS 17 theexpenses and ceding commissions recovered are considered to reflect a reduction in the transaction price equivalent to charging a lower
premium (with no corresponding ceding commission or expense recovery).
In addition, as set out in note 2 to these financial statements, where the reinsurance arrangements result in a “minimum recovery” fromthe reinsurer due to profit commission or sliding scale commission arrangements that is not contingent on claims, and the amount is notsettled “net” with premium, the minimum recovery is treated as a non-distinct investment component.
As a result, the Group treats reinsurance cashflows that are contingent on claims on the underlying contracts as part of the claims thatare expected to be reimbursed under the reinsurance contract held, and excludes non-distinct investment components and commissions
from the allocation of reinsurance premiums presented in the notes to the financial statements.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Risk of the Group’s non-performance is not included in the measurement of groups of insurance contracts issued. In the measurementof reinsurance contracts held, the probability weighted estimates of the present value of future cashflows include potential credit losses
and other disputes of the reinsurer to reflect the non-performance risk of the reinsurer.

• Insurance premium revenue: Insurance premium revenue reflects the expected premium receipts allocated to the period based on
the passage of time, adjusted for seasonality if required. It excludes any additional income that arises from the writing of the insurance
contract that is presented as part of insurance revenue as set out below.

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247

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

5. Insurance service result continued
Insurance finance income and expense

Insurance finance income or expenses comprise the change in the carrying amount of the group of insurance contracts arising from:(a) The effect of the time value of money and changes in the time value of money(b) The effect of financial risk and changes in financial risk.
The Group disaggregates insurance finance income or expenses on insurance contracts issued between the Consolidated Income
Statement and the Consolidated Statement of Other Comprehensive Income. The impact of changes in market interest rates on thevalue of the insurance assets and liabilities are reflected in Other Comprehensive Income in order to minimise accounting mismatches
between the accounting for financial assets and insurance assets and liabilities. The Group’s financial assets backing the insurance
portfolios are predominantly measured at Fair Value through Other Comprehensive Income (‘FVOCI’).

Insurance contracts: Liability for remaining coverage
Initial measurement

For a group of contracts that is not onerous at initial recognition, the Group measures the liability for remaining coverage as: :• The premiums, if any, received at initial recognition• Any other asset or liability previously recognised for cashflows related to the group of contracts that the Group pays or receives before
the group of insurance contracts is recognised.

Subsequent measurement

The subsequent measurement of reinsurance contracts held follows the same principles as those for insurance contracts issued andhas been adapted to reflect the specific features and terms and conditions of the reinsurance contracts held. In addition, changes in
the fulfilment cashflows that arise from changes in the risk of non-performance of the reinsurer are reflected within net expenses fromreinsurance contracts held within the Income Statement.
Where the Group has established a loss-recovery component, the Group subsequently reduces the loss recovery component to zero inline with reductions in the onerous group of underlying insurance contracts in order to reflect that the loss-recovery component shall not
exceed the portion of the carrying amount of the loss component of the onerous group of underlying insurance contracts that the entity
expects to recover from the group of reinsurance contracts held.
The extinguishment or commutation of a reinsurance arrangement results in a derecognition of any reinsurance assets or liabilities
related to the commuted contract from the balance sheet, so that the Group retains the full future risk of claims development. As aresult of commutation, any difference arising between the present carrying value of reinsurance assets or liabilities and the cash
settlement is recognised in the Consolidated Income Statement.

5b. Insurance revenue

Insurance revenue for the corresponding reportable segments for the period ended 31 December 2023 are shown below.
31 December 2023
UK Motor£m

UK Non-motor£mInt. Insurance
£m

Other
£m

Total Group£m

2,250.2

346.6

842.6

46.7

3,486.1

Insurance revenue related movement in liability
for remaining coverage

There is no allowance for time value of money as the premiums are received within one year of the coverage period.

Insurance revenue for the corresponding reportable segments for the period ended 31 December 2022 are shown below.

Where facts and circumstances indicate that contracts are onerous at initial recognition, the onerous contracts are separately groupedfrom other contracts and a loss is recognised in the Consolidated Income Statement for the net outflow, resulting in the carrying amountof the liability for the group being equal to the fulfilment cashflows. A loss component is established by the Group for the liability forremaining coverage for such onerous group depicting the losses recognised.

Subsequent measurement

The Group measures the carrying amount of the liability for remaining coverage at the end of each reporting period as:

31 December 2022 (restated)

Insurance revenue related movement in liability
for remaining coverage

UK Motor£m

UK Non-motor£mInt. Insurance
£m

Other
£m

Total Group£m

1,909.7

264.5

750.0

32.7

2,956.9• Premiums received in the period, minus

The Group’s share of its insurance business was underwritten by Admiral Insurance (Gibraltar) Limited, Admiral Insurance Company
Limited, Admiral Europe Compañia Seguros (‘AECS’) and Elephant Insurance Company. The majority of contracts are short term induration, lasting for between 6 and 12 months.

• The amount recognised as insurance revenue for the services provided in the period, minus

5c. Insurance service expenses• The liability for remaining coverage at the beginning of the period; plus

• Payments to the tax authorities in respect of premium receipts.

Insurance service expenses for the corresponding reportable segments for the period ended 31 December 2023 are shown below.
31 December 2023

The onerous loss component is remeasured over the coverage period so that at the end of the coverage period, it is reduced to £nil.

Insurance contracts: Liability for incurred claims

The Group estimates the liability for incurred claims as the fulfilment cashflows related to incurred claims, including any creditors related
to directly attributable insurance expenses. The liability for incurred claims also includes an explicit adjustment for non-financial risk (therisk adjustment).

Reinsurance contracts held
Initial measurement

The Group measures its reinsurance assets for a group of reinsurance contracts that it holds on the same basis as insurance contracts that
it issues. However, they are adapted to reflect the features of reinsurance contracts held that differ from insurance contracts issued.
Where the Group recognises a loss on initial recognition of an onerous group of underlying insurance contracts or when further onerous
underlying insurance contracts are added to a group, the Group establishes a loss-recovery component of the asset for remaining
coverage for a group of reinsurance contracts held depicting the recovery of losses. The Group calculates the loss-recovery component
by multiplying the loss recognised on the underlying insurance contracts and the percentage of claims on the underlying insurance
contracts the Group expects to recover from the group of reinsurance contracts held. The Group uses a systematic and rational method
to determine the portion of losses recognised on the group of insurance contracts covered by the reinsurance contracts held, in thecase that there is partial coverage of underlying insurance contracts by reinsurance contracts. The loss-recovery component adjusts the
carrying amount of the asset for remaining coverage.

Incurred claims
Claims incurred in the period
Changes to liabilities for incurred claims
Total incurred claims
Movement in onerous contracts
Directly attributable expenses
Administration expenses
Acquisition expenses
Insurance expenses
Share scheme expenses
Total insurance expenses and share scheme expenses
Total insurance service expenses

UK Motor£m

UK Non-motor£mInt. Insurance
£m

Other
£m

Total Group£m

1,755.5(406.9)1,348.6(18.6)

255.0
(9.1)
245.9
(2.4)

618.2
(21.3)
596.9
(2.4)

36.4
(3.3)
33.1
–

2,665.1(440.6)2,224.5(23.4)

377.8
73.4
451.2
43.2
494.4
1,824.4

73.5
34.8
108.3
2.4
110.7
354.2

184.0
65.4
249.4
8.9
258.3
852.8

19.0
8.9
27.9
0.8
28.7
61.8

654.3
182.5
836.8
55.3
892.1
3,093.2

The risk adjustment for non-financial risk is the amount of risk being transferred by the Group to the reinsurer and is calculated withreference to the gross risk adjustment, adjusted for any excess of loss risk adjustment, as required.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

The Group recognises any insurance premium tax collected in relation to the premiums received as part of the premium receipts,
but given it is acting as an agent, these taxes are not included as either insurance revenue or an insurance expense. Any outstanding
insurance premium tax liability is presented within the liability for remaining coverage until paid.

248

249

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

5. Insurance service result continued

5e. Finance (expenses)/income from insurance contracts held and reinsurance contracts issued

Insurance service expenses for the corresponding reportable segments for the period ended 31 December 2022 are shown below.

31 December 2023 31 December 2022£m
£m

31 December 2022 (restated)

Incurred claims
Claims incurred in the period
Changes to liabilities for incurred claims
Total incurred claims
Movement in onerous contracts
Directly attributable expenses
Administration expenses
Acquisition expenses
Insurance expenses
Share scheme expenses
Total insurance expenses and share scheme expenses
Total insurance service expenses

UK Motor£m

UK Non-motor£mInt. Insurance
£m

Other
£m

Total Group£m

1,620.4(437.2)
1,183.2(19.1)

214.8(16.9)
197.9
0.4

516.0
37.2
553.2
(3.9)

21.1
(3.6)
17.5
–

2,372.3(420.5)
1,951.8(22.6)

327.7
61.9
389.6
39.4
429.0
1,593.1

54.6
31.5
86.1
4.2
90.3
288.6

182.5
72.1
254.6
9.4
264.0
813.3

16.0
8.7
24.7
–
24.7
42.2

580.8
174.2
755.0
53.0
808.0
2,737.2

5d. Net expenses from reinsurance contracts held

Net expenses from reinsurance contracts held for the corresponding reportable segments for the period ended 31 December 2023
are shown below.

Allocation of reinsurance premiums
Amounts recoverable from reinsurers for incurredinsurance service expenses
Incurred claims
Changes to liabilities for incurred claims
Net expense from reinsurance contracts excluding
movement in onerous loss component
Other reinsurance recoveries including movement in loss
recovery component
Net expenses/(income) from reinsurance contracts held

UK Non-motor£mInt. Insurance
£m

Other
£m

Total Group
£m

93.6

49.5

190.0

2.2

335.3

(173.8)135.1(52.0)(1.4)(270.3)
95.9

–
(0.1)

(496.1)
229.5

54.9

(3.9)

15.6

2.1

68.7

14.5
69.4

2.2
(1.7)

1.7
17.3

–
2.1

18.4
87.1

Net expenses from reinsurance contracts held for the corresponding reportable segments for the period ended 31 December 2022
are shown below.
31 December 2022 (restated)

Allocation of reinsurance premiums
Amounts recoverable from reinsurers for incurredinsurance service expenses
Incurred claims
Changes to liabilities for incurred claims
Net expense from reinsurance contracts excluding
movement in onerous loss component
Other reinsurance recoveries including movement in loss
recovery component
Net expenses/(income) from reinsurance contracts held

Admiral Group plc Annual Report and Accounts 2023

UK Motor£m

UK Non-motor£mInt. Insurance
£m

Other
£m

Total Group
£m

69.8

44.4

161.3

1.4

276.9

(182.8)136.7(43.5)
0.8(232.6)
64.2

0.2
–

(458.7)
201.7

23.7

1.7

(7.1)

1.6

19.9

13.9
37.6

(0.3)
1.4

4.9
(2.2)

–
1.6

18.5
38.4

(94.5)(94.5)
28.9
28.9(65.6)(52.0)(52.0)
13.6
13.6(38.4)(128.1)
49.2(78.9)

274.0(96.2)
177.8

5f. Insurance Liabilities and Reinsurance assets(i) Analysis of recognised amounts
2023

2022

Assets£m

Liabilities
£m

Net
£m

Assets£m

Liabilities
£m

Net
£m

–
–
–
–
–

3,315.7
353.7
862.5
49.8
4,581.7

3,315.7
353.7
862.5
49.8
4,581.7–––––

2,953.3
267.7
776.7
27.7
4,025.4

2,953.3
267.7
776.7
27.7
4,025.4

519.9

–

519.9

457.5

–

457.5

UK Non-Motor
International Motor
Other
Total reinsurance contracts held
Net

191.6
481.8
–
1,193.3

–
–
(1.4)
(1.4)

191.6
481.8
(1.4)
1,191.9

126.5
432.2
–
1,016.2

–
–
(0.8)
(0.8)

126.5
432.2
(0.8)
1,015.4

UK Motor
UK Non-Motor
International Motor
Other
Total insurance contracts issued

–
–
–
–
–

2,795.8
162.1
380.7
51.2
3,389.8

2,795.8
162.1
380.7
51.2
3,389.8–––––

2,495.8
141.2
344.5
28.5
3,010.0

2,495.8
141.2
344.5
28.5
3,010.0

Insurance contracts issued
UK Motor
UK Non-Motor
International Motor
Other
Total insurance contracts issued
Reinsurance contracts held
UK Motor

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

31 December 2023
UK Motor£m

Amounts recognised through the Income Statement
Insurance finance expenses from insurance contracts issued
Finance expenses from insurance contracts issued
Insurance finance income from reinsurance contracts held
Finance income from reinsurance contracts issued
Net finance expense from insurance / reinsurance contracts issued
Amounts recognised in Other Comprehensive Income(Losses)/gains due to changes in discount rates – insurance contracts
Gains/ (losses) due to changes in discount rates – reinsurance contracts
Total gains before tax recognised in Other Comprehensive Income

250

251

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

5. Insurance service result continued(ii) Roll-forward of net asset or liability for insurance contracts issued
UK Motor

2022£ million

The following tables reconcile the opening and closing balances of the LRC and LIC for UK Motor.
2023£ million

Losscomponent–(534.1)(534.1)
2,250.2

–
(8.1)
(8.1)
–

Liability for incurred claims
Total

Present value of
future cashflows

Risk adj. for nonfinancial risk

Total

Total

–
(542.2)(542.2)2,250.2–(1,984.5)(1,984.5)––(426.6)(426.6)––(2,411.1)(2,411.1)––(2,953.3)(2,953.3)
2,250.2–––(2,105.1)(144.8)(2,249.9)(2,249.9)

–

–

–

140.1

266.8

406.9

406.9

–
2,250.2

18.6
18.6

18.6
2,268.8–(1,965.0)

–
122.0

–
(1,843.0)

18.6
425.8

–

(4.1)

(4.1)

(59.0)(12.3)(71.3)(75.4)

–

(9.4)

(9.4)

(60.5)(27.0)(87.5)(96.9)

2,250.2–

5.1–

2,255.3–(2,084.5)
–

82.7
–

(2,001.8)
–

253.5
–

(2,482.1)–(2,482.1)–––(2,482.1)––(2,482.1)(766.0)–(766.0)

–
–
–
(3.0)
–
(3.0)

–
–
(2,482.1)(769.0)–(769.0)1,866.2–
1,866.2(2,202.8)–(2,202.8)–––(343.9)–(343.9)1,866.2–
1,866.2(2,546.7)–(2,546.7)

1,866.2–(615.9)(3,315.7)–(3,315.7)

Admiral Group plc Annual Report and Accounts 2023

Loss
component–(473.1)(473.1)
1,909.7

Liability for incurred claims
Total

Present value of
future cashflows

Risk adj. for nonfinancial risk

Total

Total

–
(28.8)(28.8)––(501.9)(501.9)1,909.7–(1,993.7)(1,993.7)––(507.8)(507.8)––(2,501.5)(2,501.5)––(3,003.4)(3,003.4)
1,909.7–––(1,836.9)(212.5)(2,049.4)(2,049.4)

–

–

–

175.6

261.6

437.2

437.2

–
1,909.7

19.1
19.1

19.1
1,928.8–(1,661.3)

–
49.1

–
(1,612.2)

19.1
316.6

–

(1.8)

(1.8)

(36.5)(8.4)(44.9)(46.7)

–

3.4

3.4

191.9

40.5

232.4

235.8

1,909.7–

20.7–

1,930.4–(1,505.9)
(1.7)

81.2
–

(1,424.7)
(1.7)

505.7
(1.7)

(2,000.8)–(2,000.8)–––(2,000.8)–
30.1(1,970.7)(534.1)–(534.1)

–
–
–
(8.1)
–
(8.1)

–
30.1
(1,970.7)(542.2)–(542.2)

1,516.8–
1,516.8(1,984.5)–(1,984.5)–––(426.6)–(426.6)

1,516.8–
1,516.8(2,411.1)–(2,411,1)

1,516.8
30.1(453.9)(2,953.3)–(2,953.3)

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Opening assets
Opening liabilities
Net opening balance
Insurance revenue
Insurance service expenses
Incurred claims and insurance
service expenses
Changes to liabilities forincurred claims
Losses and reversals of losses
on onerous contracts
Insurance service result
Insurance finance income/(expense) recognised in
profit or loss
Insurance finance income/(expense) recognised in OCI
Total changes incomprehensive income
Other changes
Cashflows
Premiums received
Claims and other insurance
service expenses paid
Other movements
Total cashflows
Net closing balance
Closing assets
Closing liabilities

Liability for remaining coverage
Excluding loss
component

Opening assets
Opening liabilities
Net opening balance
Insurance revenue
Insurance service expenses
Incurred claims and insurance
service expenses
Changes to liabilities forincurred claims
Losses and reversals of losses
on onerous contracts
Insurance service result
Insurance finance income/(expense) recognised in
profit or loss
Insurance finance income/(expense) recognised in OCI
Total changes incomprehensive income
Other changes
Cashflows
Premiums received
Claims and other insurance
service expenses paid
Other movements
Total cashflows
Net closing balance
Closing assets
Closing liabilities

Liability for remaining coverage
Excluding loss
component

252

253

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

5. Insurance service result continued
UK Non-Motor

2022

The following tables reconcile the opening and closing balances of the LRC and LIC for other UK insurance (UK Household, Pet and Travel).
2023£ million

Excluding loss
component

Losscomponent

Total

Present value of
future cashflows

Risk adj. for nonfinancial risk

Total

Total

–
(100.9)(100.9)
346.6

–
(0.1)
(0.1)
–

–
(101.0)(101.0)346.6–(141.2)(141.2)––(25.5)(25.5)––(166.7)(166.7)––(267.7)(267.7)
346.6

–

–

–

(363.6)(2.1)(365.7)(365.7)

–

–

–

4.3

4.8

9.1

9.1

–
346.6

2.4
2.4

2.4
349.0

–
(359.3)–2.7–(356.6)

2.4
(7.6)

–

–

–

(5.4)

(0.9)

(6.3)

(6.3)

–

(2.3)

(2.3)

(1.4)

(0.2)

(1.6)

(3.9)

346.6
–

0.1
–

346.7
–

(366.1)–1.6–(364.5)–(17.8)–(381.9)–(381.9)–––(381.9)––(381.9)(136.2)–(136.2)

–
–
–
–
–
–

–
–
(381.9)(136.2)–(136.2)

313.7
–
313.7
(193.6)–(193.6)–––(23.9)–(23.9)

313.7
–
313.7
(217.5)–(217.5)313.7–(68.2)(353.7)–(353.7)Admiral Group plc Annual Report and Accounts 2023

Opening assets
Opening liabilities
Net opening balance
Insurance revenue
Insurance service expenses
Incurred claims and insurance
service expenses
Changes to liabilities forincurred claims
Losses and reversals of losses
on onerous contracts
Insurance service result
Insurance finance income/(expense) recognised in profit
or loss
Insurance finance income/(expense) recognised in OCI
Total changes incomprehensive income
Other changes
Cashflows
Premiums received
Claims and other insurance
service expenses paid
Other movements
Total cashflows
Net closing balance
Closing assets
Closing liabilities

Loss
component

Total

Present value of
future cashflows

Risk adj. for nonfinancial risk–
(125.6)(125.6)
264.5

Total

Total

–
–
–
–

–
(125.6)(125.6)264.5–(74.2)(74.2)––(16.0)(16.0)––(90.2)(90.2)––(215.8)(215.8)
264.5

–

–

–

(281.4)(23.7)(305.1)(305.1)

–

–

–

2.5

14.4

16.9

16.9

–
264.5

(0.4)
(0.4)

(0.4)
264.1

–
(278.9)–(9.3)–(288.2)(0.4)(24.1)

–

(0.4)

(0.4)

(2.0)

(0.4)

(2.4)

(2.8)

–

0.7

0.7

1.4

0.2

1.6

2.3

264.5
–

(0.1)
–

264.4
–

(279.5)–(9.5)–(289.0)–(24.6)–(239.8)–(239.8)–––(239.8)––(239.8)(100.9)–(100.9)

–
–
–
(0.1)
–
(0.1)

–
–
(239.8)(101.0)–(101.0)

212.5
–
212.5
(141.2)–(141.2)–––(25.5)–(25.5)

212.5
–
212.5
(166.7)–(166.7)212.5–(27.3)(267.7)–(267.7)Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Opening assets
Opening liabilities
Net opening balance
Insurance revenue
Insurance service expenses
Incurred claims and insurance
service expenses
Changes to liabilities forincurred claims
Losses and reversals of losses
on onerous contracts
Insurance service result
Insurance finance income/(expense) recognised in profit
or loss
Insurance finance income/(expense) recognised in OCI
Total changes incomprehensive income
Other changes
Cashflows
Premiums received
Claims and other insurance
service expenses paid
Other movements
Total cashflows
Net closing balance
Closing assets
Closing liabilities

Liability for incurred claims

Liability for remaining coverage£ million

Liability for incurred claims

Liability for remaining coverage
Excluding loss
component

254

255

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

5. Insurance service result continued
International Insurance

2022

The following tables reconcile the opening and closing balances of the ARC and AIC for International Insurance.
2023£ million

2022£ million

Opening assets
Opening liabilities
Net opening balance
Insurance revenue
Insurance service expenses
Incurred claims and insurance
service expenses
Changes to liabilities forincurred claims
Losses and reversals of losses
on onerous contracts
Insurance service result
Insurance finance income/(expense) recognised in
profit or loss
Insurance finance income/(expense) recognised in OCI

Loss
component–(200.7)(200.7)
842.6

–
(4.7)
(4.7)
–

Liability for incurred claims
Total

Present value of
future cashflows

Risk adj. for nonfinancial risk

Total

Total

–
(205.4)(205.4)842.6–(495.2)(495.2)––(76.1)(76.1)––(571.3)(571.3)––(776.7)(776.7)
842.6

–

–

–

(835.7)(40.8)(876.5)(876.5)–––(22.6)

43.9

21.3

21.3

–
842.6

2.4
2.4

2.4
845.0

–
(858.3)–3.1–(855.2)2.4(10.2)

–

–

–

(8.2)

(1.7)

(9.9)

(9.9)

–
2.3

(0.7)
0.1

(0.7)
2.4

(12.7)
15.7

(3.4)
2.0

(16.1)
17.7(16.8)
20.1

844.9
–

1.8
–

846.7
–

(863.5)––0.1(863.5)0.1(16.8)
0.1(862.3)–(862.3)–––(862.3)––(862.3)(218.1)–(218.1)

–
–
–
(2.9)
–
(2.9)

–
–
(862.3)(221.0)–(221.0)

793.2
–
793.2
(565.5)–(565.5)–––(76.0)–(76.0)

793.2
–
793.2
(641.5)–(641.5)793.2–(69.1)(862.5)–(862.5)

Risk adj. for nonfinancial risk

Total

Total

–
(58.4)(58.4)––(480.2)(480.2)––(653.2)(653.2)750.0

Foreign exchange impact
Total changes incomprehensive income
Other changes
Cashflows
Premiums received
Claims and other insurance
service expenses paid
Other movements
Total cashflows
Net closing balance
Closing assets
Closing liabilities

Liability for remaining coverage

Liability for incurred claims

Losscomponent

Total

Present value of
future cashflows–(164.6)(164.6)
750.0

–
(8.4)
(8.4)
–

–
(173.0)(173.0)750.0–(421.8)(421.8)––––(794.8)(12.4)(807.2)(807.2)

–

–

–

(3.8)

(4.7)

(8.5)

(8.5)

–
750.0

3.9
3.9

3.9
753.9

–
(798.6)–(17.1)–(815.7)

3.9(61.8)

–

(0.1)

(0.1)

(2.2)

(0.3)

(2.5)

(2.6)

–

0.2

0.2

27.4

3.8

31.2

31.4

Admiral Group plc Annual Report and Accounts 2023

(6.9)

Liability for incurred claims
Total

Present value of
future cashflows

Risk adj. for nonfinancial risk

Total

Total

(0.3)

(7.2)

(32.2)(4.1)(36.3)(43.5)

743.1
–

3.7
–

746.8
–

(805.6)–(17.7)–(823.3)–(76.5)–(779.2)–(779.2)–––(779.2)––(779.2)(200.7)–(200.7)

–
–
–
(4.7)
–
(4.7)

–
–
(779.2)(205.4)–(205.4)

732.2
–
732.2
(495.2)–(495.2)–––(76.1)–(76.1)

732.2
–
732.2
(571.3)–(571.3)732.2–(47.0)(776.7)–(776.7)(iii) Roll-forward of net asset or liability for reinsurance contracts held
UK Motor

The following tables reconcile the opening and closing balances of the ARC and AIC for UK Motor.
2023

Excluding loss
component

Losscomponent£ million

Opening assets
Opening liabilities
Net opening balance
Allocation of reinsurance
premiums
Amounts recoverable fromreinsurers for incurredclaimsIncurred claims
Changes to liabilities forincurred claims
Changes in the loss recovery
component
Net income/(expense) fromreinsurance contracts held
Reinsurance finance income/(expense) recognised in profit
or loss
Reinsurance finance income/(expense) recognised in OCI
Total changes incomprehensive income
Cashflows
Premiums paid
Claims recoveries
Recoveries as a result ofcommutations
Total cashflows
Net closing balance
Closing assets
Closing liabilities

Asset for remaining coverage
Excluding loss
component

Loss-recovery
component

20.2
–
20.2

Asset for incurred claims
Total

Present value of
future cashflows

Risk adj. for nonfinancial risk

Total

Total

6.3
–
6.3

26.5
–
26.5

255.4
–
255.4

175.6
–
175.6

431.0
–
431.0

457.5
–
457.5

(93.6)–(93.6)–––(93.6)

–

–

–

96.7

77.1

173.8

173.8

–

–

–

(43.1)(92.0)(135.1)(135.1)–(14.5)(14.5)–––(14.5)(93.6)(14.5)(108.1)

53.6(14.9)

38.7(69.4)

–

3.2

3.2

9.4

7.5

16.9

20.1

–

7.3

7.3

12.5

15.4

27.9

35.2

(93.6)(4.0)(97.6)

75.5

8.0

83.5

(14.1)

94.2
–

–
–

94.2
–

–
(2.2)

–
–

–
(2.2)

94.2
(2.2)

–
94.2
20.8
20.8
–

–
–
2.3
2.3
–

–
94.2
23.1
23.1
–

(15.5)(17.7)
313.2
313.2
–

–
–
183.6
183.6
–

(15.5)(17.7)
496.8
496.8
–

(15.5)
76.5
519.9
519.9
–

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Opening assets
Opening liabilities
Net opening balance
Insurance revenue
Insurance service expenses
Incurred claims and insurance
service expenses
Changes to liabilities forincurred claims
Losses and reversals of losses
on onerous contracts
Insurance service result
Insurance finance income/(expense) recognised in
profit or loss
Insurance finance income/(expense) recognised in OCI
Foreign exchange impact
Total changes incomprehensive income
Other changes
Cashflows
Premiums received
Claims and other insurance
service expenses paid
Other movements
Total cashflows
Net closing balance
Closing assets
Closing liabilities

Liability for remaining coverage
Excluding loss
component£ million

Liability for remaining coverage
Excluding loss
component

256

257

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

5. Insurance service result continued2022£ million

Asset for remaining coverage

The following tables reconcile the opening and closing balances of the ARC and AIC for UK Non-motor insurance (Household, Travel and Pet).

Asset for incurred claims

2023

Excluding loss
component

Loss-recovery
component

Total

Present value of
future cashflows

Risk adj. for nonfinancial risk

Total

Total

24.7
–
24.7

21.7
–
21.7

46.4
–
46.4

250.7
–
250.7

203.1
–
203.1

453.8
–
453.8

500.2
–
500.2

(69.8)–(69.8)–––(69.8)

–

–

–

91.9

90.9

182.8

182.8

–

–

–

(36.7)(100.0)(136.7)(136.7)–(13.9)(13.9)–––(13.9)(69.8)(13.9)(83.7)

55.2

(9.1)

46.1

(37.6)

–

1.3

1.3

5.1

3.9

9.0

10.3

–

(2.8)

(2.8)

(44.8)(22.3)(67.1)(69.9)(69.8)–(15.4)–(85.2)–

15.5
1.8(27.5)–(12.0)
1.8(97.2)
1.8

65.3
–
65.3
20.2
20.2
–

–
–
–
6.3
6.3
–

65.3
–
65.3
26.5
26.5
–

–
(12.6)(12.6)
255.4
255.4
–

–
–
–
175.6
175.6
–

–
(12.6)(12.6)
431.0
431.0
–

65.3
(12.6)
52.7
457.5
457.5
–

Admiral Group plc Annual Report and Accounts 2023

£ million

Opening assets
Opening liabilities
Net opening balance
Allocation of reinsurance
premiums
Amounts recoverable fromreinsurers for incurredclaimsIncurred claims
Changes to liabilities forincurred claims
Changes in the loss recovery
component
Net income/(expense) fromreinsurance contracts held
Reinsurance finance income/(expense) recognised in
profit or loss
Reinsurance finance income/(expense) recognised in OCI
Total changes incomprehensive income
Reinsurance investment
components
Cashflows
Premiums paid
Claims recovered
Recoveries as a resultof commutations
Total cash flows
Net closing balance
Closing assets
Closing liabilities

Asset for remaining coverage
Excluding loss
component

Loss-recovery
component

11.7
–
11.7

Asset for incurred claims
Total

Present value of
future cashflows

Risk adj. for nonfinancial risk

Total

Total

0.1
–
0.1

11.8
–
11.8

98.6
–
98.6

16.1
–
16.1

114.7
–
114.7

126.5
–
126.5

(49.5)–(49.5)–––(49.5)

–

–

–

53.3

(1.3)

52.0

52.0

–

–

–

1.7

(0.3)

1.4

1.4

–

(2.2)

(2.2)

–

–

–

(2.2)

(49.5)(2.2)(51.7)

55.0

(1.6)

53.4

1.7

–

–

–

3.6

0.6

4.2

4.2

–

2.1

2.1

0.9

0.2

1.1

3.2

(49.5)(0.1)(49.6)

59.5

(0.8)

58.7

9.1

(111.7)–(111.7)

111.7

–

111.7

–

170.9
–

–
–

170.9
–

–
(91.2)–––(91.2)

170.9(91.2)

–
170.9
21.4
21.4
–

–
–
–
–
–

–
170.9
21.4
21.4
–

(23.7)(114.9)
154.9
154.9
–

–
–
15.3
15.3
–

(23.7)(114.9)
170.2
170.2
–

(23.7)
56.0
191.6
191.6
–

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Opening assets
Opening liabilities
Net opening balance
Allocation of reinsurance
premiums
Amounts recoverable fromreinsurers for incurredclaimsIncurred claims
Changes to liabilities forincurred claims
Changes in the loss recovery
component
Net income/(expense) fromreinsurance contracts held
Reinsurance finance income/(expense) recognised in
profit or loss
Reinsurance finance income/(expense) recognised in OCI
Total changes incomprehensive income
Other changes
Cashflows
Premiums paid
Amounts received
Total cashflows
Net closing balance
Closing assets
Closing liabilities

UK Non-Motor

258

259

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

5. Insurance service result continued2022£ million

Excluding loss
component Loss component

The following tables reconcile the opening and closing balances of the ARC and AIC for International Insurance.

Asset for incurred claims
Total

Present value of
future cashflows

Risk adj. for nonfinancial risk

Total

Total

8.4
–
8.4

–
–
–

8.4
–
8.4

66.6
–
66.6

3.1
–
3.1

69.7
–
69.7

78.1
–
78.1

(44.4)–(44.4)–––(44.4)

–

–

–

31.6

11.9

43.5

43.5

–

–

–

(1.8)

1.0

(0.8)

(0.8)

–

0.3

0.3

–

–

–

0.3

(44.4)

0.3(44.1)

29.8

12.9

42.7

(1.4)

–

0.3

0.3

1.4

0.2

1.6

1.9

–

(0.5)

(0.5)

(0.7)

(0.1)

(0.8)

(1.3)

(44.4)

0.1(44.3)

30.5

13.0

43.5

(0.8)

(78.4)–(78.4)

78.4

–

78.4

–

126.1
–
126.1
11.7
11.7
–

–
–
–
0.1
0.1
–

126.1
–
126.1
11.8
11.8
–

–
(76.9)(76.9)
98.6
98.6
–

–
–
–
16.1
16.1
–

–
(76.9)(76.9)
114.7
114.7
–

126.1
(76.9)
49.2
126.5
126.5
–

Admiral Group plc Annual Report and Accounts 2023

2023
£ million

Opening assets
Opening liabilities
Net opening balance
Allocation of reinsurance
premiums
Amounts recoverable fromreinsurers for incurredclaimsIncurred claims
Changes to liabilities forincurred claims
Changes in the loss recovery
component
Net income/(expense) fromreinsurance contracts held
Reinsurance finance income/(expense) recognised in
profit or loss
Reinsurance finance income/(expense) recognised in OCI
Foreign exchange impact
Total changes incomprehensive income
Reinsurance investment
components
Cashflows
Premiums paid
Amounts received
Total cashflows
Net closing balance
Closing assets
Closing liabilities

Asset for remaining coverage
Excluding loss
component

Loss-recovery
component–(19.0)(19.0)

Asset for incurred claims
Total

Present value of
future cashflows

Risk adj. for nonfinancial risk

Total

Total

3.4
–
3.4

3.4
(19.0)(15.6)

412.7
–
412.7

35.1
–
35.1

447.8
–
447.8

451.2
(19.0)
432.2(190.0)–(190.0)–––(190.0)

–

–

–

243.7

26.6

270.3

270.3

–

–

–

(69.8)(26.1)(95.9)(95.9)

–

(1.7)

(1.7)

–

–

–

(1.7)

(190.0)(1.7)(191.7)

173.9

0.5

174.4

(17.3)

–

–

–

4.0

0.6

4.6

4.6

–
6.3

0.5
–

0.5
6.3

7.4
(11.7)

1.9
(0.7)

9.3
(12.4)

9.8(6.1)(183.7)(1.2)(184.9)

173.6

2.3

175.9

(9.0)

(148.9)–(148.9)

148.9

–

148.9

–

328.4
–
328.4
(23.2)–(23.2)

–
–
–
2.2
2.2
–

328.4
–
328.4
(21.0)
2.2(23.2)–(269.8)(269.8)
465.4
465.4
–

–
–
–
37.4
37.4
–

–
(269.8)(269.8)
502.8
502.8
–

328.4
(269.8)
58.6
481.8
505.0
(23.2)

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Opening assets
Opening liabilities
Net opening balance
Allocation of reinsurance
premiums
Amounts recoverable fromreinsurers for incurredclaimsIncurred claims
Changes to liabilities forincurred claims
Changes in the loss recovery
component
Net income/(expense) fromreinsurance contracts held
Reinsurance finance income/(expense) recognised in
profit or loss
Reinsurance finance income/(expense) recognised in OCI
Total changes incomprehensive income
Reinsurance investment
components
Cashflows
Premiums paid
Amounts received
Total cashflows
Net closing balance
Closing assets
Closing liabilities

International Insurance

Asset for remaining coverage

260

261

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

5. Insurance service result continued2022£ million

Asset for incurred claims
Risk adj. fornon-financial
risk

Financial year ended 31 December 2023

Excluding loss
component

Loss recovery
component

Total

Present value of
future cashflows

Total

Total

13.8
–
13.8

8.0
–
8.0

21.8
–
21.8

322.8
–
322.8

25.4
–
25.4

348.2
–
348.2

370.0
–
370.0

(161.3)–(161.3)–––(161.3)

–

–

–

227.0

5.6

232.6

232.6

–

–

–

(69.2)

5.0(64.2)(64.2)

–

(4.9)

(4.9)

–

–

–

(4.9)

(161.3)(4.9)(166.2)

157.8

10.6

168.4

2.2

–

0.1

0.1

1.3

0.1

1.4

1.5

–
(11.4)–
0.2–(11.2)(18.6)
28.1

(2.0)
1.0

(20.6)
29.1(20.6)
17.9(172.7)(4.6)(177.3)

168.6

9.7

178.3

1.0

(129.6)–(129.6)

129.6

–

129.6

–

269.5
–
269.5
(19.0)–(19.0)

–
–
–
3.4
3.4
–

269.5
–
269.5
(15.6)
3.4(19.0)–(208.3)(208.3)
412.7
412.7
–

–
–
–
35.1
35.1
–

–
(208.3)(208.3)
447.8
447.8
–

269.5
(208.3)
61.2
432.2
451.2
(19.0)(iv) Claims development

The tables below illustrate how estimates of cumulative claims for UK Motor, UK Non-Motor and International Insurance have developed
over time on a gross and net of reinsurance basis.
Each table shows how the Group’s estimates of total claims for each underwriting year have developed over time and reconciles the
cumulative claims to the amount included in the Statement of Financial Position. Balances have been translated at the exchange rates
prevailing at the reporting date. The Group has not disclosed information for underwriting years 2017 and prior for the international
insurance and UK Non-Motor insurance businesses, given that the claims that remain outstanding on those years are immaterial.
IFRS 17 does not require an entity to disclose claims development information for which uncertainty about the amount and timing of
the claims payments is typically resolved within one year. Therefore, the Group has not disclosed information about the claims in its otherlines of business or related directly attributable expenses.

Admiral Group plc Annual Report and Accounts 2023

Underwriting year

2013 &
prior

UK Motor (core)
At end of year one
At end of year two
At end of year three
At end of year four
At end of year fiveAt end of year six
At end of year seven
At end of year eightAt end of year nine
Ten years later
Gross best
estimates of
undiscounted
claims3,225
Cumulative grossclaims paid
(3,075)Gross undiscounted
best estimate
liabilities
150
Risk adjustment(undiscounted)
Effect of
discounting
Gross claims
liabilities
Ancillary claims
liabilities andexpense liabilities
UK Motor Gross
liabilities forincurred claims
UK Non-motor(core)At end of year one
At end of year two
At end of year three
At end of year four
At end of year fiveAt end of year six
At end of year seven
At end of year eightAt end of year nine
Ten years later
Gross best
estimates of
undiscounted
claims5
Cumulative grossclaims paid
(5)

2014
£m

2015
£m

2016
£m

2017
£m

2018
£m

2019
£m

2020
£m

2021
£m

2022
£m

2023
£m

Total
£m

382
675
659
689
643
635
619
604
593
590

394
701
707
680
636
619
606
594
585

436
829
788
727
713
690
656
652

552
1,144
994
947
912
890
865

686
1,175
1,109
1,064
1,008
1,000

701
1,067
1,010
996
981

552
985
954
921

688
1,326
1,294

845
1,584

973

590

585

652

865

1,000

981

921

1,294

1,584

973 12,670

(576)

(560)

(616)

(747)

(893)

(770)

(662)

(826)

(971)

(395) (10,091)

14

25

36

118

107

211

259

468

613

578

2,579
411
(537)
2,453

94

2,547

18
19
19
19
19
19
19
19

34
35
34
33
33
33
33
33

26
50
47
47
47
47
47
48

29
78
76
75
76
76
75

56
102
102
102
102
100

55
105
103
102
93

53
96
95
90

58
128
124

116
224

146

19

33

48

75

100

93

90

124

224

146

957

(19)

(33)

(48)

(75)

(97)

(90)

(85)

(109)

(147)

(50)

(758)

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Opening assets
Opening liabilities
Net opening balance
Allocation of reinsurance
premiums
Amounts recoverable fromreinsurers for incurred claims
Incurred claims
Changes to liabilities forincurred claims
Changes in the loss recovery
component
Net income/(expense) fromreinsurance contracts held
Reinsurance finance income/(expense) recognised in profit
or loss
Reinsurance finance income/(expense) recognised in OCI
Foreign exchange impact
Total changes incomprehensive income
Reinsurance investment
component
Cashflows
Premiums paid
Amounts received
Total cashflows
Net closing balance
Closing assets
Closing liabilities

Gross claims development
Asset for remaining coverage

262

263

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

Claims development net of XoL reinsurance

5. Insurance service result continued
Financial year ended 31 December 2023
Underwriting year

–

2014
£m

–

2015
£m

–

2016
£m

–

2017
£m

–

2018
£m

3

2019
£m

3

Financial year ended 31 December 2023

2020
£m

5

2021
£m

15

2022
£m

77

2023
£m

96

Total
£m

199
22
(7)
214

4

218

138
143
143
143
143
151

181
211
211
211
212
233

237
253
251
251
251
248

259
304
300
300
300
296

177
356
349
350
350
339

236
382
388
384
364

204
368
364
365

270
496
498

313
601

338

399

151

233

248

296

339

364

365

498

601

338

(398)

(149)

(193)

(244)

(281)

(320)

(336)

(316)

(412)

(414)

(155) (3,218)

1

2

40

4

15

19

28

49

86

187

183

Admiral Group plc Annual Report and Accounts 2023

3,832

614
88
(98)
604

38

642

Underwriting year

2013 &
prior

UK Motor (core)
At end of year one
At end of year two
At end of year three
At end of year four
At end of year fiveAt end of year six
At end of year seven
At end of year eightAt end of year nine
Ten years later
Net of XoL best
estimates of
undiscounted
claims3,190
Cumulative
claims paid
(3,075)
Net of XoL
undiscounted best
estimate liabilities
115
Risk adjustment(undiscounted)
Effect of
discounting
Net of XoL claims
liabilities
Ancillary claims
liabilities andexpenses
UK Motor Net of
XoL liabilities forincurred claims
UK Non-motor(core)At end of year one
At end of year two
At end of year three
At end of year four
At end of year fiveAt end of year six
At end of year seven
At end of year eightAt end of year nine
Ten years later
Gross best
estimates of
undiscounted
claims4
Cumulative
claims paid
(4)

2014
£m

2015
£m

2016
£m

2017
£m

2018
£m

2019
£m

2020
£m

2021
£m

2022
£m

2023
£m

Total
£m

373
659
644
659
623
619
606
597
589
589

378
682
667
637
607
599
586
579
577

427
783
743
692
677
663
640
635

510
1,053
917
883
860
840
820

646
1,123
1,053
1,024
974
978

675
1,033
986
969
950

520
949
927
892

661
1,292
1,257

825
1,550

951

589

577

635

820

978

950

892

1,257

1,550

951

(576)

(560)

(616)

(747)

(893)

(770)

(662)

(826)

(971)

(395) (10,091)

13

17

19

73

85

180

230

431

579

556

12,389

2,298
331
(420)
2,209

94

2,303

18
19
19
19
19
19
19
19

34
35
34
33
33
33
33
33

26
50
47
47
47
47
47
48

29
78
75
75
76
75
75

56
102
101
101
101
100

54
96
94
93
93

50
91
90
90

57
126
124

116
220

127

19

33

48

75

100

93

90

124

220

127

933

(19)

(33)

(48)

(75)

(97)

(90)

(85)

(109)

(148)

(50)

(758)

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Gross undiscounted
best estimate
liabilities
Risk adjustment(undiscounted)
Effect of
discounting
Gross claims
liabilities
Ancillary claims
liabilities andexpense liabilities
UK Non-motor
Gross liabilities forincurred claims
International
Insurance
At end of year one
At end of year two
At end of year three
At end of year four
At end of year fiveAt end of year six
At end of year seven
At end of year eightAt end of year nine
Ten years later
Gross best
estimates of
undiscounted
claimsCumulative grossclaims paid
Gross undiscounted
best estimate
liabilities
Risk adjustment(undiscounted)
Effect of
discounting
Gross claims
liabilities
Ancillary claims
liabilities andexpense liabilities
International
Insurance Gross
liabilities forincurred claims

2013 &
prior

264

265

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

Claims development net of reinsurance

5. Insurance service result continued
Financial year ended 31 December 2023
Underwriting year

–

2014
£m

–

2015
£m

–

2016
£m

–

2017
£m

–

2018
£m

3

2019
£m

3

Financial year ended 31 December 2023

2020
£m

5

2021
£m

15

2022
£m

72

2023
£m

77

Total
£m

175
19
(7)
187

3

190

397

138
143
143
143
143
151

181
211
211
211
212
210

237
253
251
251
251
248

259
304
300
300
300
290

177
356
349
350
350
337

236
382
388
384
360

204
368
364
355

270
496
477

313
559

335

397

151

210

248

290

337

360

355

477

559

335

(397)

(149)

(193)

(244)

(280)

(320)

(336)

(316)

(412)

(414)

(155) (3,216)

–

2

17

Admiral Group plc Annual Report and Accounts 2023

4

10

17

24

39

65

145

180

3,719

503
73
(46)
530
38

568

Underwriting year

2013 &
prior

UK Motor (core)
At end of year one
At end of year two
At end of year three
At end of year four
At end of year fiveAt end of year six
At end of year seven
At end of year eightAt end of year nine
Ten years later
Net best estimatesof undiscounted
claims3,190
Cumulative net
claims paid
(3,076)
Net undiscounted
best estimate
liabilities
114
Risk adjustment(undiscounted)
Effect of
discounting
Net claims
liabilities
Ancillary claims
liabilities andexpenses
UK Motor Net
liabilities forincurred claims
UK Non-motor(core)At end of year one
At end of year two
At end of year three
At end of year four
At end of year fiveAt end of year six
At end of year seven
At end of year eightAt end of year nine
Ten years later
Net best estimatesof undiscounted
claims2
Cumulative net
claims paid
(2)

2014
£m

2015
£m

2016
£m

2017
£m

2018
£m

2019
£m

2020
£m

2021
£m

2022
£m

2023
£m

Total
£m

373
659
644
659
623
619
606
597
589
589

378
682
667
637
607
599
586
579
577

427
783
743
692
677
663
640
635

493
1,016
886
853
830
811
793

625
1,086
1,018
990
957
944

626
1,033
986
969
950

520
949
927
892

657
1,259
1,239

762
1,442

939

589

577

635

793

944

950

892

1,239

1,442

939 12,190

(576)

(560)

(616)

(719)

(864)

(770)

(662)

(826)

(971)

(395) (10,035)

13

17

19

74

80

180

230

413

471

544

2,155
172
(365)
1,962

88

2,050

5
6
6
6
6
6
6
6

10
10
9
9
8
9
9
9

7
14
12
12
12
12
12
13

6
22
24
22
24
24
24

20
34
33
37
37
36

18
25
31
30
29

16
12
19
18

16
41
36

43
94

68

6

9

13

24

36

29

18

36

94

68

335

(6)

(9)

(13)

(23)

(34)

(28)

(16)

(28)

(87)

(55)

(301)

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Net of XoL
undiscounted best
estimate liabilities
Risk adjustment(undiscounted)
Effect of
discounting
Net of XoL claims
liabilities
Ancillary claims
liabilities andexpense liabilities
UK Non-motor Net
of XoL liabilities forincurred claims
International
Insurance
At end of year one
At end of year two
At end of year three
At end of year four
At end of year fiveAt end of year six
At end of year seven
At end of year eightAt end of year nine
Ten years later
Gross best
estimates of
undiscounted
claimsCumulative grossclaims paid
Gross undiscounted
best estimate
liabilities
Risk adjustment(undiscounted)
Effect of
discounting
Gross claims
liabilities
Ancillary claims andexpense liabilities
International
Insurance Gross
liabilities forincurred claims

2013 &
prior

266

267

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued(v) UK Motor loss ratios and changes to liabilities for incurred claims

5. Insurance service result continued
Financial year ended 31 December 2023
Underwriting year

–

2014
£m

–

2015
£m

–

2016
£m

–

2017
£m

1

2018
£m

2

2019
£m

1

2020
£m

2

2021
£m

8

2022
£m

7

2023
£m

13

Total
£m

34
6
(2)
38

31 December

UK Motor Insurance loss ratio development –undiscounted, gross net of excess of loss reinsurance

2021

2022

2023

Underwriting year
2018
2019
2020
2021
2022
2023

73%
73%
68%
95%
–
–

68%
71%
65%
91%
104%
–

65%
67%
58%
86%
96%
94%

* Booked undiscounted loss ratios presented from the transition date of IFRS 17 (1 January 2022) onwards.

8

46

71
76
77
47
46
52

92
82
83
70
70
83

115
132
131
86
86
85

85
97
96
101
101
99

61
120
117
119
119
115

79
129
129
130
123

83
145
144
144

100
185
187

114
218

140

2021

2022

2023

Underwriting year
2018
2019
2020
2021
2022
2023

71%
71%
67%
92%
–
–

67%
69%
63%
86%
97%
–

64%
65%
57%
81%
88%
86%

* Loss ratios using discounted locked-in curves, excluding finance expenses are presented from the transition date of IFRS 17 (1 January 2022) onwards.

The following table analyses the impact of movements in changes to liabilities from incurred claims by underwriting year on a gross andnet of excess of loss reinsurance basis for UK Motor.

295

52

83

85

99

115

123

144

187

218

140

(298)

(51)

(68)

(83)

(95)

(109)

(114)

(129)

(163)

(223)

(100) (1,433)

(3)

1

15

2

4

6

9

15

24

(5)

Admiral Group plc Annual Report and Accounts 2023

31 December
UK Motor Insurance loss ratio development –discounted*, gross net of excess of loss reinsurance

40

1,541

108
24
(20)
112

27

Gross
Underwriting year2018 & prior
2019
2020
2021
2022
2023
Total UK Motor gross changes to liabilities for incurred claims
Net
Underwriting year2018 & prior
2019
2020
2021
2022
2023
Total UK Motor net of excess of loss changes to liabilities for incurred claims

31 December 2023£m

31 December 2022
(restated)
£m

91.5
61.4
98.2
76.4
79.4
–
406.9

262.4
34.3
84.4
56.1
–
–
437.2

80.6
65.0
97.7
80.1
69.4
–
392.8

187.2
29.0
62.8
48.2
–
–
327.2

139

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Net undiscounted
best estimate
liabilities
Risk adjustment(undiscounted)
Effect of
discounting
Net claims
liabilities
Ancillary claims
liabilities
and expenses
UK Non-motor
Net liabilities forincurred claims
International
Insurance
At end of year one
At end of year two
At end of year three
At end of year four
At end of year fiveAt end of year six
At end of year seven
At end of year eightAt end of year nine
Ten years later
Net best estimatesof undiscounted
claimsCumulative net
claims paid
Net undiscounted
best estimate
liabilities
Risk adjustment(undiscounted)
Effect of
discounting
Net claims
liabilities
Ancillary claims
liabilities andexpenses
International
Insurance net
liabilities forincurred claims

2013 &
prior

The table below shows the development of UK Motor Insurance loss ratios for the past three financial periods, presented on anunderwriting year basis, both using undiscounted amounts (i.e. cashflows) and discounted amounts.

268

269

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

6. Investment income and finance costs
6a. Accounting policies
i) Financial assets
Classification and measurement

The classification and subsequent measurement of the financial asset under IFRS 9 depends on:a. The Group’s business model for managing the financial assets, andb. The contractual cashflow characteristics of the financial asset.
Based on these factors, the financial asset is classified into one of the following categories:

Amortised cost

The credit rating of all assets is regularly monitored. As at the year-end reporting date, the majority of financial assets are of investment
grade and considered low risk under IFRS 9. These therefore remain within stage 1 and a 12-month expected loss is used to calculate theimpairment provision required.
The impairment provision at 31 December 2023 is £6.9 million (£9.4 million at 31 December 2022).
The calculated impairment loss within the fair value is recognised through the Income Statement whilst fair value movements arerecognised in Other Comprehensive Income.
Given there is no material change in the credit quality or type of financial assets in the year and the movement in provision is immaterial,
no further disclosure has been made.

These comprise assets which are held in order to collect contractual cashflows and the contractual terms of the financial asset giverise to cashflows which are solely payments of principal and interest on the principal amount outstanding (SPPI), where the asset is notdesignated as fair value through profit or loss (FVTPL).

Derecognition

For the Group, these include deposits with credit institutions, cash and cash equivalents, insurance receivables, trade and otherreceivables and loans and advances to customers.

ii) Financial liabilities
Classification and subsequent measurement

The interest income generated from these assets is included in investment returns, with the exception of loans and advances tocustomers and cash and cash equivalents relating to the loans business, where the interest receivable is recognised in interest income.

Fair value through Other Comprehensive Income (FVOCI)A financial asset is derecognised when the rights to receive cashflows from that asset have expired, or when the Group transfers the asset
and all the attached substantial risks and rewards relating to the asset to a third party.

All financial liabilities are classified as subsequently measured at amortised cost using the effective interest method, except forderivatives that are classified at fair value through profit or loss and subsequently measured at fair value.
Movements in the amortised cost are recognised through the Income Statement.

These comprise assets which are held both to collect contractual cashflows and to sell the asset, where the contractual terms of thefinancial asset give rise to cashflows which are solely payments of principal and interest on the principal amount outstanding (SPPI),
where the asset is not designated as FVTPL.

Derecognition

For the Group, these assets include corporate, government and private debt securities. These assets are held to match policyholder
liabilities or interest on debt liabilities. If sold before maturity, gains or losses on these assets impact the consolidated Income Statement.

Investment return from financial assets comprises distributions as well as net realised and unrealised gains on financial assets classified as
FVTPL, interest income and net realised gains from financial assets classified as FVOCI, and interest income from financial assets classified
as amortised cost.

Movements in the carrying amount are taken through OCI, with the exception of recognition of impairment gains or losses, interest
revenue, dividend income and foreign exchange gains or losses which are recognised in profit or loss.
A gain or loss on disposal of an investment measured at FVOCI is presented within investment return in the period in which it arises.

iii) Investment return and finance costs

Finance costs from financial liabilities comprise interest expense on subordinated notes, loan backed securities, credit facilities andlease liabilities, calculated using the effective interest rate method. The effective interest rate method calculates the amortised costof a financial asset or liability (or group of financial assets or financial liabilities) and allocates the interest income or expense over the
expected life of the asset or liability.

6b. Investment return
31 December 2023
£m

Fair value through profit or loss (FVTPL)

These are assets which do not meet the criteria for amortised cost or FVOCI, or which are designated as FVTPL.
For the Group these assets include liquidity funds investing in short duration assets, other funds and derivative financial instruments.
The regulatory capital within the Group is used to invest in these instruments in addition to any surplus funds which may be held.
Buying and selling activity occurs depending on timing of different cashflows.

Impairment

The expected credit loss model (ECL) is used to calculate any impairment to be recognised for all assets measured at amortised cost,
as well as financial investments measured at FVOCI. The general approach, which utilises the three-stage model, is used for loans andadvances to customers (see note 7) whilst impairment for the remaining assets is measured using the simplified approach.
This simplified approach is based on an assessment made based on an external credit rating agency or an assessment from the Group’s
external asset managers, to assess whether there has been a significant increase in credit risk, combined with other external data
as follows:• Financial assets in stage 1 are those where the credit risk has not increased significantly since initial recognition. A 12-month ECL isrecognised. To determine the default rate, the average of external rates using Standard & Poor and Moody’s is used, together withconsideration of any overlay based on qualitative criteria• Financial assets in stage 2 are those where credit risk has increased significantly since initial recognition, with the provision reflecting
a lifetime loss. A significant increase in credit risk is defined as public assets that are downgraded outside of investment grade, or fora bond purchased at sub-investment grade, a fall in of a full credit banding i.e. BB to B; and private assets which have been flagged onwatchlists for significant credit deterioration. For assets in stage 2, the lifetime credit loss is calculated by multiplying the default rateby the number of years from maturity. For assets in stage 1 and stage 2, a recovery rate is also applied to the loss given default, basedon an average of a number of external and internal sources.

Investment return
On assets classified as FVTPL
On assets classified as FVOCI*1*3
On assets classified as amortised costs*1
Net unrealised losses
Unrealised (loss) / gain on forward
contracts
Share of associate profit/ loss
Interest receivable on cash and cash
equivalents*1
Total investment andinterest income*2

31 December 2022
£m

At EIR

Other

Total

At EIR

Other

Total

–
77.0
4.1

43.3
(3.6)
–

43.3
73.4
4.1

–
50.3
2.0

8.4
2.3
–

8.4
52.6
2.0

–
–

(0.2)
(1.3)

(0.2)
(1.3)

–
–

0.5
(0.1)

0.5
(0.1)

–

3.6

3.6

–

1.2

1.2

81.1

41.8

122.9

52.3

12.3

64.6

*1. Interest received during the year was £76.8 million (2022: £58.7 million).
*2. Total investment return excludes £3.2 million of intra-group interest (2022: £2.2 million).
*3. Realised losses on sales of debt securities classified as FVOCI are £0.9 million (2022: £2.2 million gain).

• Financial assets in stage 3 are credit impaired, which typically occurs when the asset has defaulted, restructured or is not expected toreturn full proceeds. Each asset in this category is reviewed to assess the recoverable amount based on the information available.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

In addition, IFRS 9 allows an irrevocable election at initial recognition to designate equity investments at FVOCI that otherwise would beheld at FVTPL, provided these are not held for trading. The Group has made this election for certain investments which are not held for
trading and are strategic investments to be designated as being reported through FVOCI.

A financial liability is derecognised when the obligation under that liability is discharged, cancelled or expires.

270

271

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

6. Investment income and finance costs continued
6c. Finance costs

6e. Financial assets and liabilities

The Group’s financial assets and liabilities can be analysed as follows:
31 December 2022
(restated)£mInterest payable on subordinated loan notes and other credit facilities*1*2
Interest payable on lease liabilities
Interest recoverable from co and re-insurers
Total finance costs

18.5
2.0
(0.4)
20.1

11.5
2.0
(1.5)
12.0

587.5
301.3
17.6
12.4
918.8

706.5
188.8
33.0
6.4
934.7

*1. Interest paid during the year was £20.5 million (2022: £13.4 million).
*2. See note 7e for details of credit facilities.

Finance costs represent interest payable on the £305.1 million (2022: £200.0 million) subordinated notes and other financial liabilities.
Interest payable on lease liabilities represents the unwinding of the discount on lease liabilities under IFRS 16 and does not result in acash payment.

2,040.6519.6
242.7
2,802.9
23.0
2,825.9

1,701.2
479.8
166.6
2,347.6
25.1
2,372.76d. Expected credit losses
Note

Expected credit (gains)/losses on financial investments
Expected credit losses on loans and advances to customers*1
Total expense for expected credit losses

31 December 2023 31 December 2022
£m
£m

6f
7b

*1. Includes £15.0 million (2022: £7.2 million) of write offs, with total movement in the expected credit loss provision being £33.5 million (2022: £20.7 million).

See note 6a and note 7b for details of the impairment methodology.

(2.5)
33.5
31.0

(1.8)
20.7
18.9

116.7

101.4

1.0

2.4

Total financial investments

3,862.4

3,411.2

Other financial assets (measured at amortised cost)
Insurance receivables
Trade and other receivables
Insurance and other receivables
Loans and advances to customers (note 7)
Cash and cash equivalents
Total financial assets

272.7
75.0
347.7
879.4
353.1
5,442.6

187.6
87.6
275.2
823.9
297.0
4,807.3

Financial liabilities
Subordinated notes
Loan backed securities
Other borrowings
Derivative financial instruments
Subordinated and other financial liabilities
Trade and other payables
Lease liabilities
Total financial liabilities

315.2
759.6
55.0
–
1,129.8
305.8
81.2
1,516.8

204.4
714.7
20.0
–
939.1
254.9
88.5
1,282.5

Financial investments measured at FVTPL
Money market funds
Other funds*1
Derivative financial instruments
Equity Investments (designated FVTPL)
Financial investments classified as FVOCICorporate debt securities
Government debt securities
Private debt securities
Equity investments (designated FVOCI)
Financial assets measured at amortised cost
Deposits with credit institutions
Investment in Associates*1. Other funds include fixed income securities recognised as fair value through profit and loss.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

31 December 2023£m

31 December 2023 31 December 2022
£m
£m

272

273

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

6. Investment income and finance costs continued
6f. Fair value measurement

6g. Cash and cash equivalents
31 December 2023 31 December 2022£m
£m

IFRS 13 requires assets and liabilities that are held at fair value to be classified according to a hierarchy which reflects the observability ofsignificant market inputs, based on three levels. The Group policy is to recognise transfer between fair value hierarchy levels as at the endof the reporting period. There were no transfers between fair value hierarchy levels in the reporting period (2022: none).

Cash at bank and in hand*1
Total cash and cash equivalents

The table below shows how the financial assets held at fair value have been measured using the fair value hierarchy:*1 Cash at bank and in hand includes £38.9 million (2022: £36.6 million) related to special purpose entities which is not available for use by the Group.

31 December 2023

Level one (quoted prices in active markets)
Level two (use of observable inputs)
Level three (use of significant unobservable inputs)
Total

31 December 2022

FVTPL
£m

FVOCI
£m

FVTPL
£m

FVOCI
£m

888.8
17.6
12.4
918.8

2,560.1–
265.8
2,825.9

900.2
28.1
6.4*1
934.7

2,180.9–
191.8
2,372.7

353.1
353.1

Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term deposits with original maturitiesof three months or less.
An assessment has been completed for impairment purposes in line with that set out in note 6a above. Given the short-term duration ofthese assets and low risk of these assets, no impairment provision has been recognised.
For cash at bank and cash deposits and other receivables, the fair value approximates to the book value due to their short maturity.

6h. Other assets

Insurance and other receivables*1. Gains through the Income Statement are recognised within Investment return. See note 6b for further information.

31 December 2023 31 December 2022£m
£m

Fair value measurement using significant unobservable inputs (level three)
Level three investments consist of debt securities and equity securities.

Equity securities are primarily comprised of investments in Private Equity and Infrastructure Equity funds, which are valued at the
proportion of the Group’s holding of the NAV reported by the investment vehicle. These are based on several unobservable inputs
including market multiples and cashflow forecasts.

Equity Securities£m

Debt Securities
£m

Total
£m

31.6
(0.1)
(1.0)
6.1
(1.1)
35.5

166.6
10.0
0.8
89.6
(24.3)
242.7

198.2
9.9
(0.2)
95.7
(25.4)
278.2

Insurance receivables are measured at historic cost. Given that non-repayment would result in a withdrawn policy and the short-term
duration of these assets, no bad debt provision has been recognised.

Impairment. Where a provision is required for these receivables, it is calculated in line with the simplified method for trade receivables
per IFRS 9, whereby lifetime expected credit losses are recognised irrelevant of the credit risk. In this case, the provision is based on a
combination of(i) Aged debtor analysis(ii) Historic experience of write offs for each receivable(iii) Any specific indicators of credit deterioration observed, and(iv) Management judgement.
The level of provision is immaterial.
The amortised cost carrying amount of receivables is a reasonable approximation of fair value.

31 December 2022

Admiral Group plc Annual Report and Accounts 2023

Insurance receivables

Classification. Trade and other receivables are measured at amortised cost, being made up of multiple types of receivable balances.

31 December 2023

Balance as at 1 January 2022
Gains / (losses) recognised in IS
Gains / (losses) recognised in OCI
Purchases
Disposals
Translation differences
Balance as at 31 December 2022

187.6
87.6
41.2
316.4

Trade and other receivables

The table below presents the movement in the period relating to financial instruments valued using a level three valuation:

Level Three Investments

272.7
75.0
62.2
409.9

Insurance receivables reported within other receivables are comprised of the external coinsurer’s share of premium receivable, with therelated liability in respect of written premium presented within amounts owed to the coinsurer.

There were no significant inter-relationships between unobservable inputs that materially affect fair values.

Balance as at 1 January 2023
Gains / (losses) recognised in IS
Gains / (losses) recognised in OCI
Purchases
Disposals
Balance as at 31 December 2023

Insurance receivables
Trade and other receivables
Prepayments and accrued income
Total insurance and other receivables

Equity Securities£m

Debt Securities
£m

Total
£m

21.5
1.8
1.1
9.4
(2.5)
0.3
31.6

125.5
3.9
(9.6)
74.4
(27.6)
–
166.6

147.0
5.7
(8.5)
83.8
(30.1)
0.3
198.2

Contract balances

The following table provides information about receivables and contract assets from contracts with customers. Both balances areincluded in Trade and other receivables.
31 December 2023 31 December 2022£m£m

Receivables
Contract assets

14.9
17.0

20.0
19.3

The contract asset relates to the Group’s right to consideration for work undertaken in the law companies on behalf of clients which is
ongoing or where the final fee has not yet been billed. The contract asset is transferred to trade receivables once the fee has been billed.

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Debt securities are comprised primarily of investments in debt funds which are valued at the proportion of the Group’s holding of the
Net Asset Value (NAV) reported by the investment vehicle. These include funds that invest in corporate direct lending, residential andcommercial mortgages, and other private debt. In addition, there is a small allocation of privately placed bonds which do not trade on
active markets, these are valued using discounted cash-flow models designed to appropriately reflect the credit and illiquidity of these
instruments; these valuations are performed by the external fund managers. The key unobservable input across private debt securities isthe discount rate which is based on the credit performance of the assets. A deterioration of the credit performance or expected future
performance will result in higher discount rates and lower values.

Level Three Investments

297.0
297.0

274

275

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

6. Investment income and finance costs continued

Other borrowings

Significant changes in the contract asset balance during the period are as follows:
31 December 2023
£m

Contract asset balance

At 1 January 2022
Revenue recognised
Transferred to trade receivables
Write offs
At 31 December 2022
Revenue recognised
Transferred to trade receivables
Write offs
At 31 December 2023

23.8
16.3
(20.2)
(0.6)
19.3
18.9
(20.6)(0.6)
17.0

The amount of revenue recognised in 2023 from performance obligations satisfied (or partially satisfied) in previous periods in relation to
the above contract balances is £nil (2022: £nil).

6i. Financial and lease liabilities

Loan backed securities

Asset backed senior loan note facilities of £1,000.0 million have been established in relation to the Admiral Money business (see note
2 for details of the accounting treatment of SPEs). As at the year end, £759.6 million (2022: £714.7 million) of these facilities had
been utilised.
The carrying value is a reasonable approximation of fair value.

Lease liabilities

The Group leases various properties, with rental contracts typically for fixed periods of 5 to 25 years although these may have extension
options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The leaseagreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes.

Loan backed
securities£m

Other borrowingsand derivatives
£m

Lease
liabilities
£m

Total
£m

204.4
17.5
94.2

714.7
40.6
4.3

20.0
5.4
29.6

88.5
2.0
(10.7)

1,027.6
65.5
117.4

(0.9)
315.2

–
759.6

–
55.0

1.4
81.2

0.5
1,211.0

The lease liability is initially measured at the present value of remaining lease payments, which include the following:• Fixed payments (including in-substance fixed payments), less any lease incentives receivable• Variable lease payments that are based on an index or a rate
• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group’s
incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset ofa similar value in a similar economic environment, with similar terms and conditions. Generally, the Group uses its incremental borrowing
rate as the discount rate.
Subsequently, lease payments are allocated to the lease liability, split between repayments of principal and interest. A finance cost is
charged to the profit and loss so as to produce a constant period rate of interest on the remaining balance of the lease liability.

31 December 2022
Subordinated
notes
£m

Loan backed
securities£m

Other borrowingsand derivatives
£m

Lease
liabilities
£m

Total
£m

204.4
11.0
(11.0)

446.5
11.7
256.5

20.0
1.3
(0.9)

105.3
2.0
(11.3)

776.2
26.0
233.3

–
204.4

–
714.7

(0.4)
20.0

(7.5)
88.5

(7.9)
1,027.6

Whereby a change in lease term is identified, the lease liability is recalculated based on the present value of the remaining
lease payments.

*1. Cash amounts relating to the interest proportion of the lease liability were £2.1 million.

Subordinated notes

Financial liabilities are inclusive of two separate issuances of subordinated notes totalling £305.1 million. The first subordinated notes
were issued on 25 July 2014 at a fixed rate of 5.5% per annum and a total value of £200 million. In July 2023 these notes were tenderedwith a take-up of 72.45%, with the remaining amount retaining the original redemption date of 25 July 2024.
The second subordinated notes were issued on 6 July 2023 at a fixed rate of 8.5% per annum, with a total value of £250 million and aredemption date of 6 January 2034 (subject to various provisions of the terms and conditions governing the notes).
The notes are unsecured subordinated obligations of the Group and rank pari passu without any preference among themselves. In theevent of a winding-up or bankruptcy, they are to be repaid only after the claims of all other senior creditors have been met.
There have been no defaults on any of the notes during the year. The Group has the requirement to defer interest payments on the notes
in certain circumstances but to date none of these circumstances has arisen.
The fair value of subordinated notes (level one valuation based on quoted prices in active markets) at 31 December 2023 is £329.8 million(2022: £196.4 million).

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Subordinated
notes
£m

*1. Cash amounts relating to the interest proportion of the lease liability were £1.9 million.

Financial liability at the start of the period
Interest payable per Income Statement
Cashflows*1
Other foreign exchange and non-cash
movements
Financial liability at the end of the period

The carrying value is a reasonable approximation of fair value.

For each lease, a right-of-use asset and corresponding lease liability is recognised at the date at which the leased asset becomes available
for use by the Group.

31 December 2023

Financial liability at the start of the period
Interest payable per Income Statement
Cashflows*1
Other foreign exchange and non-cash
movements
Financial liability at the end of the period

The Group holds various revolving credit facilities including a £300.0 million facility which expires in April 2026, a £20.0 million facility
which expires in August 2024 and a €100.0 million facility which expires in August 2024. As at 31 December 2023 £55.0 million was
drawn under these facilities (2022: £20.0 million), which is shown within other borrowings in the table above. This is made up of£35.0 million from the facility expiring April 2026 (2022: £nil) and £20.0 million from the pound sterling facility expiring August 2024
(2022: £20.0 million).

276

277

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

7. Loans and Advances to Customers
7a. Accounting policies

Fair value measurement

The loans and advances are recognised at fair value at the point of origination and then subsequently on an amortised cost basis.
This carrying value is deemed a reasonable approximation of fair value, which is calculated based on estimates using the present value of
future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

Loans and advances to customers consist of unsecured personal loans and car finance products.

Classification

Loans and advances to customers are measured at amortised cost. This is because assets are held in order to collect contractual cashflows
and the contractual terms of the financial asset demand cash inflows which are solely payments of principal and interest on the principal
amount outstanding.

Interest income and expense

Interest income received in relation to loans and advances to customers is calculated using the effective interest method which
allocates interest, direct and incremental fees and costs over the expected lives of the assets and liabilities. There has been no change inrecognition of interest income from the comparative period.
Interest expense is calculated using the process appropriate to each source of funding, which is not linked to individual accounts.

Finance leases

Included within loans and advances to customers are personal contract purchase (PCP) and hire purchase (HP) arrangements which areclassified as finance leases under IFRS 16. A receivable equal to the net investment in the lease has been recognised. The net investment
is equal to the gross investment in the lease discounted at the rate implicit in the lease.
Lease interest income is recognised within interest income in the Income Statement over the term of the lease using the effective
interest rate method.

• The Group does not enter into any finance leases with a maximum loan-to-value limit, reducing the risk of shortfall on termination of
the contract• The Group requires the lessee to insure the underlying vehicle at all times, reducing the risk of non-recovery if the asset is stolen
or destroyed• The estimated future value of each vehicle, which is sourced externally, is considered in the pricing of the lease contracts to provide
protection against deterioration in that value.

7b. Loans and advances to customers
31 December 2023 31 December 2022
£m
£m

887.4
(63.7)
823.7
0.2
823.9

Loans and advances to customers are comprised of the following:• Exposure at Default (EAD): The amount of balance at the time of default. For loans that are in arrears the EAD is taken as the current
balance plus any expected interest arrears. For up-to-date loans the EAD is calculated as the expected balance 3 months prior to eachperiod, plus 3 months of interest arrears to account for the time it takes to default following falling into arrears.
• Loss Given Default (LGD): The amount of the asset not recovered following a borrower’s default, determined through analysis ofhistoric recovery performance.
The PD is applied to the EAD to calculate the expected loss excluding recoveries. The LGD is then applied to this loss to calculate the total
expected loss including recoveries. A forward-looking provision is also calculated, as set out later in this note.
• Stage 1 – no significant increase in credit risk of the financial asset since inception;• Stage 2 – significant increase in credit risk of the financial asset since inception;• Stage 3 – financial asset is credit impaired.
For assets in stage 1, the allowance is calculated as the expected credit losses from events within 12 months after the reporting date.
For assets in stages 2 and 3 the allowance is calculated as the expected credit loss from events in the remaining lifetime of each asset.
The allowance is calculated for each loan at an individual level.
Significant increase in credit risk (SICR) (stage 2)
As explained above, stage 1 assets have an ECL allowing for losses in the next twelve months, and stage 2 or 3 assets have an ECL allowing
for losses over the remaining lifetime of the contract. An asset moves to stage 2 when its credit risk has increased significantly since initialrecognition. IFRS 9 does not prescribe a definition of significant increase in credit risk but does include a rebuttable presumption that thisdoes occur for loan assets which are 30 days past due (which the Group does not rebut).
The Group has deemed a significant increase in credit risk to have occurred where:• The loan is in arrears, or• The behavioural PD has moved outside a specified threshold from the application PD• The customer is identified as being two or more payments in arrears on a credit product with a third party and reported to the credit
reference agency.
The Group maintains two probation periods:• Where a customer is up to date but previously has been 30+ days past due they will be held in stage 2 for 6 months;• Where a customer is up to date but previously Credit impaired (stage 3) they will be held in stage 2 for 12 months.

31 December 2023 31 December 2022£m£m

Unsecured personal loans
Finance leases
Other
Total loans and advances to customers, gross• Probability of Default (PD): The likelihood of an account defaulting; calibrated through analysis of historic customer behaviour.
Where customers have already met the definition of default this is 100%. For customers that are not in default the PD is determinedthrough analysis of historic default data using external and internal data sources available at the reporting date.

937.7
19.1
4.4
961.2

855.8
31.6
0.2
887.6

A range of metrics including accuracy rates, false positive rates, oscillation rates and the Mathews corelation are monitored in relation toloans which are held in the above probation periods.
Credit impaired (stage 3)
The Group does not rebut the presumption within IFRS 9 that default has occurred when an exposure is greater than 90 days past due,
which is consistent with a customer being three or more payments in arrears. In addition, a loan is deemed to be credit impaired where:• There is an Individual Voluntary Arrangement (IVA) agreement confirmed or proposed, or• Customer has started or progressed bankruptcy action, or• A repayment plan is in place, or• A customer is deceased.
As at 31 December 2023, there were 7,300 loans totalling £40.1m that were subject to forbearance (2022: 4,400 loans totalling£21.5m). Significant categories of forbearance arrangements include Bankruptcy, Debt Management Plans and Individual
Voluntary Arrangements.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Some of the ways in which the Group maintains its rights to the vehicle, and thus manages the risk of loss associated with the financelease, include:

956.8(81.7)
875.1
4.3
879.4

The expected credit loss model is a three-stage model based on forward looking information regarding changes in the credit quality sinceorigination. Credit risk is measured using a Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD) defined
as follows:

Loan assets are segmented into three stages of credit impairment:

The title to the underlying vehicle remains with the Group until the lessee has made all contractual payments, at which point ownershipis transferred to the lessee. In the event of breach of contract, such as non-payment, the vehicle itself acts as collateral for the financelease, becoming available for repossession in most cases.

Loans and advances to customers – gross carrying amount
Loans and advances to customers – provision
Total loans and advances to customers – Admiral Money
Total loans and advances to customers – Other
Total loans and advances to customers

Expected credit losses

278

279

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

7. Loans and Advances to Customers continued
Judgements required - Post Model Adjustments (‘PMA’s)

Sensitivities to key areas of estimation uncertainty

The key areas of estimation uncertainty identified, as per note 3 to the financial statements, are in the PD and the forwardlooking scenarios.

As at 31 December 2023, the expected credit loss allowance included PMAs totalling £9.2 million (2022: £11.3 million).
31 December 2023 31 December 2022£m£m

Post Model Adjustments

Model performance
Cost of Living
Economic scenarios

2.0
6.5
0.7
9.2

3.9
6.5
0.9
11.3

PMAs are calculated using management judgement and analysis. The key categories of PMAs are as follows:

Model performance

The model has been calibrated on historical data that may not fully reflect the risk of losses in the recent and ongoing, highly volatile
macro-economic period. In addition, interest rate rises in 2023 have created the potential for performance uncertainty. For this reason
a Model Performance PMA has been made. It effectively recalibrates the modelled probability of default of the loans to reflect recent
monitored performance. A refresh of the PD model during 2023 has reduced the PMA in comparison to the previous year end.

Cost of Living

This PMA captures the risk of customers falling into a negative affordability position, whereby customers are no longer able to meet their
credit commitments due to higher expenditure driven by higher prices and increased mortgage payments, when their standard variableor fixed term rate comes to an end. A PMA is held to acknowledge this, using both external and internal data.
An uncertainty factor determined by management judgment has been added to reflect the recent volatility in unemployment forecasts.
This factor has been reduced as variability between successive forecasts has fallen.

Write off policy

Loans are written off where there is no reasonable expectation of recovery. The Group’s policy is to write off balances to theirestimated net realisable value. Write offs are actioned on a case-by-case basis taking into account the operational position and thecollections strategy.

Base
UpturnDownturn
SevereThe scenario weighting assumptions used are detailed below, along with the unemployment rate assumed in each scenario at
31 December 2023.
31 December 2023
31 December 2022
Scenario peak
Scenario peak
Unemployment 31 December 2023
Unemployment 31 December 2022
rate
Weightingrate
WeightingBase
UpturnDownturn
Severe

4.7%
3.5%
6.0%
8.0%

50%
10%
30%
10%

4.8%
3.5%
6.0%
7.9%

40%
10%
40%
10%

40%
10%
40%
10%

(1.3)
(6.9)
1.4
5.7

Stage 1 assets represent 81% of the total loan assets; 0.1% increase in the stage 1 PD, i.e. from 2.2% to 2.3% would result in a £0.6 million
increase in ECL.

Amounts arising from ECL: loans and advances to customers

The following table sets out information about the credit quality of the loans and advances to customers measured at amortised cost.
Credit grades are used to segment customers by apparent credit risk at the time of acquisition. Higher grades are the lowest credit risk
with each subsequent grade increasing in expected credit risk. The Group does not have any purchased or originated credit impaired
assets. These tables are inclusive of the finance lease assets which are held by the Group, further analysis of these balances can be foundin note 7c.
All probability of default figures included in this paragraph allow for forward-looking information, i.e. the PDs are a weighted average fromthe economic scenarios considered and relate to the Admiral Money consumer lending business. The average probability of default infor stage 1 assets is 2.2% (2022: 2.7%) reflecting the expectation of defaults within 12 months of the reporting date. The average PD for
assets in stage 2 is 36.8% (2022: 36.6%) reflecting expected losses over the remaining life of the assets. The PD for assets in stage 3 is100% (2022: 100%) as these assets are deemed to have defaulted.

Under IFRS 9 the provision must reflect an unbiased and probability-weighted amount that is determined by evaluating a range ofpossible outcomes. The means by which the Group has determined this is to run scenario analysis.
The key economic driver of credit losses from the scenarios is the likelihood of a customer entering hardship through unemployment.
Unemployment forecasts include a risk grade split of PD based on the correlation between grade-level default rates observed relative
to the change in unemployment rates in the previous downturn, adjusted for the unemployment forecast expected in the current
economic environment.

(1.1)
(5.2)
2.5
8.2

The sensitivities in the above tables show the variance to ECL that would be expected if the given scenario unfolded rather than theweighted position the provision is based on. At 31 December 2023 the implied weighted peak unemployment rate is 5.2%: the tableshows that in a downturn scenario with a 6.0% peak unemployment rate the provision would increase by £2.5 million, whilst the upturnwould reduce the provision by £5.2 million, base case reduce by £1.1 million and severe increase the provision by £8.2 million.

Forward-looking information

Management judgment has been used to define the weighting and severity of the different scenarios based on available data.

50%
10%
30%
10%

31 December 2023
31 December 2022
Sensitivity 31 December 2022
Sensitivity£m
Weighting£mCredit Grade*1
HigherMediumLower
Credit impaired
Gross carrying amount
Expected credit loss allowance
Other loss allowance*2
Carrying amount – Admiral Money
Carrying amount – Other
Carrying amount

31 December 2023

31 December 2022

Stage 112- month ECL£mStage 2Lifetime ECL£mStage 3
Lifetime ECL
£m

Total
£m

Total
£m

566.0
155.8
53.6
–
775.4
(12.8)
(0.5)
762.1
4.3
766.4

83.3
30.8
11.8
–
125.9
(29.1)
(0.1)
96.7
–
96.7

–
–
–
55.5
55.5
(39.2)
–
16.3
–
16.3

649.3
186.6
65.4
55.5
956.8
(81.1)
(0.6)
875.1
4.3
879.4

600.2
200.0
53.2
34.0
887.4
(63.1)
(0.6)
823.7
0.2
823.9

*1. Credit grade is the internal credit banding given to a customer at origination. This is based on external credit rating information.
*2 Other loss allowance covers losses due to a reduction in current or future vehicle value or costs associated with recovery and sale of vehicles and those as a result of changes in the performance of.the EIR asset.

The economic scenarios and forecasts have been updated in conjunction with a third party economics provider. The probability
weightings reflect the view that there is a probability of 90% attached to recessionary outcomes.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Economic scenarios

31 December 2023
Weighting

280

281

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

7. Loans and Advances to Customers continued

The following tables reconcile the opening and closing gross carrying amount and expected credit loss allowance. Loans originated in theyear are initially classified as Stage 1. In the following tables, the loans are presented in line with their staging as at each year end.
Stage 112- month ECL£mStage 2Lifetime ECL£mStage 3
Lifetime ECL
£m

Total
£m

Gross carrying amount as at 1 January 2023
Transfers
Transfers from stage 1 to stage 2
Transfers from stage 1 to stage 3
Transfers from stage 2 to stage 1
Transfers from stage 2 to stage 3
Transfers from stage 3 to stage 1

728.3

125.3

34.0

887.6

(60.2)(19.4)
51.7
–
0.3

60.2
–
(51.7)(10.8)
–

–
19.4
–
10.8
(0.3)

–
–
–
–
–

Transfers from stage 3 to stage 2
Principal redemption payments
Write offs
EIR adjustment
New financial assets originated or purchased
Gross carrying amount as at 31 December 2023–
(315.0)
–
0.3
393.6
779.6

0.8
(48.8)
–
0.2
50.8
126.0

(0.8)
(5.5)
(15.6)
0.2
13.4
55.6

–
(369.3)(15.6)
0.7
457.8
961.2

2023

2022

Gross carrying amount as at 1 January 2022
Transfers
Transfers from stage 1 to stage 2
Transfers from stage 1 to stage 3
Transfers from stage 2 to stage 1
Transfers from stage 2 to stage 3
Transfers from stage 3 to stage 1
Transfers from stage 3 to stage 2
Principal redemption payments
Write offs
EIR adjustment
New financial assets originated or purchased
Gross carrying amount as at
31 December 2022

2023

Expected credit loss allowance
as at 1 January 2023
Movements with a profit and loss impact
Transfers
Transfers from stage 1 to stage 2
Transfers from stage 1 to stage 3
Transfers from stage 2 to stage 1
Transfers from stage 3 to stage 1
Changes in PDs/LGDs/EADs
New financial assets originated or purchased
Total net profit and loss charge in the period
Write offs
Transfers
Transfers from stage 2 to stage 3
Transfers from stage 3 to stage 2
Expected credit loss allowance as at
31 December 2023

Admiral Group plc Annual Report and Accounts 2023

Stage 112- month ECL£mStage 2Lifetime ECL£mStage 3
Lifetime ECL
£m

Total
£m

510.6

68.4

28.0

607.0

(62.6)
(9.4)
25.3
–
0.2
–
(235.3)
–
3.4
496.1

62.6
–
(25.3)(4.2)–
0.4(39.9)
–
0.4
62.9

–
9.4
–
4.2
(0.2)
(0.4)
(5.9)
(7.2)
–
6.1

–
–
–
–
–
–
(281.1)
(7.2)
3.8
565.1

728.3

125.3

34.0

887.6

Stage 112- month ECL£mStage 2Lifetime ECL£mStage 3
Lifetime ECL
£m

Total
£m

13.4

23.5

26.2

63.1

(1.9)
(0.7)
3.4
–
(9.5)
8.0
(0.7)
–

5.0
–
(7.4)
–
(1.4)
12.5
8.7
–

–
1.9
–
(0.1)
13.6
9.8
25.2
(15.0)

3.1
1.2
(4.0)
(0.1)
2.7
30.3
33.2
(15.0)

–
–

(3.2)
0.3

3.2
(0.3)

–
–

12.7

29.3

39.3

81.2

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Of the amounts written off during the year, £8.3m related to loans which were still subject to enforcement activity (2022: £NIL). The loss
allowance in place in relation to these loans at the time of writing off totalled £7.9m (2022: £NIL).

The EIR adjustment represents incremental acquisition costs incurred when advancing loans. These costs are spread over the expectedeconomic lives of the loans under the effective interest rate method.

282

283

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

7. Loans and Advances to Customers continued
2022

Expected credit loss allowance as at 1 January 2022
Movements with a profit and loss impact
Transfers
Transfers from stage 1 to stage 2
Transfers from stage 1 to stage 3
Transfers from stage 2 to stage 1
Transfers from stage 3 to stage 1
Changes in PDs/LGDs/EADs
New financial assets originated or purchased
Total net profit and loss charge in the period
Write offs
Expected credit loss allowance as at 31 December 2022
Other movements with no profit and loss impact
Transfers
Transfers from stage 2 to stage 3
Transfers from stage 3 to stage 2

7d. Interest income
Stage 112- month ECL£mStage 2Lifetime ECL£mStage 3
Lifetime ECL
£m

Total
£m

13.7

12.7

23.5

49.9

(1.5)
(0.4)
1.8
–
(10.1)
9.9
(0.3)
–
13.4

4.4
–
(3.9)
–
(2.4)
12.7
10.8
–
23.5

–
1.0
–
(0.1)
4.4
4.6
9.9
(7.2)
26.2

2.9
0.6
(2.1)
(0.1)
(8.1)
27.2
20.4
(7.2)
63.1

–
–

(1.3)
–

1.3
–

–
–

56.1
2.6
–
58.7

Interest income receivable is recognised in the Income Statement using the effective interest method, which calculates the amortised
cost of the financial asset and allocates the interest income over the expected product life.

7e. Interest expense
31 December 2023 31 December 2022£m
£m

Interest payable on loan backed securities
Interest payable on other credit facilities
Total interest expense*1

23.4
3.4
26.8

11.7
0.9
12.6

8. Other revenue and co-insurer profit commission
8a. Accounting policy(i) Composition of Other revenue and co-insurer profit commission

7.0
14.3
–
21.3
(2.2)
19.1
(0.3)
18.8

9.8
25.7
–
35.5
(4.0)
31.5
(0.8)
30.7

5.7
13.4
–
19.1

7.9
23.7
–
31.6

• Where additional fee and commission revenue is generated from the sale of insurance contracts, but that revenue separable fromthe host insurance contract in accordance with the principles of IFRS 17, and the goods or services provided to the policyholder are
distinct, the revenue is recognised applying IFRS 15• Revenue from the Group’s law firm
• Comparison income
Other revenue also includes instalment income on insurance premium paid via instalments, where it is not recognised under IFRS 17(see notes 2 and 5) due to the income being separable from the host insurance contract. This instalment income is recognised using theeffective interest rate method, and as such is not within the scope of IFRS 15.
Co-insurer profit commission revenue falling within the scope of IFRS 15 Revenue from Contracts with Customers relates primarily to acontractual arrangement between the Group’s insurance intermediary EUI Limited, and an external co-insurer (Great Lakes, a subsidiaryof Munich Re) which underwrites a share of the UK Car Insurance business generated by EUI Limited.

The net investment in finance leases shown above includes an unguaranteed residual value of £0.2 million (2022: The net investment infinance leases shown above is net of the unguaranteed residual value of £0.3 million).

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements• Fee and commission revenue related to the sale of insurance contracts (see notes 2 and 5)

31 December 2023 31 December 2022£m
£m

Net investment in finance leases, receivable
Less than 1 year
Between 1 to 5 years
More than 5 years

90.2
2.0
2.7
94.9

Other revenue falling within the scope of IFRS 15 Revenue from Contracts with Customers is generated from:

Loans and advances to customers include the following finance leases. The Group is the lessor for leases of cars

Unearned finance income
Net investment in lease receivables
Less impairment allowance

From loans and advances to customers
From finance leases
From bank interest*1. Interest paid in total net of swaps during the year was £25.6 million (2022: £11.9 million).

7c. Finance lease receivables

Gross investment in finance leases, receivable
Less than 1 year
Between 1 to 5 years
More than 5 years

31 December 2023 31 December 2022
£m
£m

284

285

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

8. Other revenue and co-insurer profit commission continued(ii) Nature of goods and services

The following is a description of the principal activities within the scope of IFRS 15 from which the Group generates its other revenue.
Products and services
Fee and commission revenue,
including administration fees:
where the income is separablefrom the underlying
insurance contract

Revenue fromlaw firm

Nature, timing of satisfaction of performance obligations and significant payment terms
The performance obligation is the provision of insurance intermediary services, at which point
the performance obligation is met. Revenue is therefore recognised at a point in time, matching
the Group’s provision of services. Where the Group has no remaining obligations, the revenue isrecognised immediately. An allowance is made for expected cancellations where the customer may
be entitled to a refund of amounts charged.
Payment from revenue generated from policyholders is due immediately, or in line with direct debit
instalments. Payments from external parties is due within 30 days of the period close.
The performance obligation is the pursuit of the compensation from the at fault party’s insurer
on behalf of the customer. Once the case is settled the performance obligation is fully satisfied.
Revenue is therefore recognised over time using the expected value method. This method values
revenue by multiplying hours incurred on open cases by a 12-month realisable rate. The realisablerate is a probability weighted transaction price based on settled cases. The expected value method
therefore results in revenue recognised being constrained to that where there is a high probability ofno significant reversal.
Revenue is recognised over time because the Group has an enforceable right to payment for
performance completed to date and the work performed to date has no alternative use to the Group.

Profit commission
from co-insurers

Payment is due within 28 days of invoice.
Profit commission is generated if an individual year is profitable, based on the premiums written,
and expenses and claims costs incurred. It is therefore a variable consideration, recognised at apoint in time.
The cumulative profit commission recognised is calculated in aggregate across the contract, in linewith contract terms, based on a number of detailed inputs for each individual underwriting year, themost material of which are as follows:• Premiums, defined as gross premiums ceded including any instalment income, less reinsurance
premium (for excess of loss reinsurance)• Insurance expenses incurred

The adoption of IFRS 17 has resulted in a presentational change whereby a significant proportion of “Other revenue” is now recognised
under IFRS 17. The prior year comparatives have been restated from those previously reported as a result.
During the period, there has been a change in accounting estimate in relation to the calculation of co-insurer profit commission within
the scope of IFRS 15. The underwriting year loss ratio inputs to the calculation were previously based on IFRS 4 financial statement loss
ratios in line with the Group’s insurance accounting. The transition from IFRS 4 to IFRS 17 has resulted in a change to the underwriting
year loss ratio inputs to the calculation, such that the new basis of estimation results in the recognition of co-insurer profit commissionaligned to the IFRS 17 loss ratios, including risk adjustment, as set out above. The impact of the change in estimation basis in the period
and in future is not expected to have a material impact on the Group’s financial statements.
There has been no further change in revenue recognition from the restated comparative period.

8b. Disaggregation of revenue

In the following tables, other revenue is disaggregated by major products/service lines and timing of revenue recognition. The total
revenue disclosed in the table of £205.8 million (2022: £256.4 million) represents total other revenue and co-insurer profit commission
and is disaggregated into the segments included in note 4.
31 December 2023

Major products/service line
Fee and commission revenue
Revenue from law firm
Comparison income
Total other revenue
Profit commission from co-insurers
Total other revenue and co-insurer profit
commission
Timing of revenue recognition
Point in time
Over time
Revenue outside the scope of IFRS 15• Claims costs incurred.
Whilst the premiums and insurance expenses related to an underwriting year are typically fixedat the conclusion of each underwriting year and are not subject to judgement, the claims cost is
subject to inherent uncertainty. This results in the co-insurer profit commission recognised under
IFRS 15 being a variable amount.
As such:• The Group uses the expected value method for the initial calculation of profit commission
revenue, based on known premiums and expenses, and the best estimate of claims costs.
• The variable revenue estimated using the expected value method above is constrained throughthe inclusion of the risk adjustment within the claims cost element of the calculation, with theprofit commission recognised aligned to the IFRS 17 booked loss ratios, discounted at lockedin rates, and inclusive of finance expense. The inclusion of the risk adjustment constrains the
cumulative profit commission revenue recognised to a level where there is a high probability of no
significant reversal.

Comparison

The key methods, inputs and assumptions used to estimate the variable consideration of profit
commission are therefore in line with those used for the calculation of claims liabilities, as set out innote 3 to the financial statements, with further detail also included in note 5. There are no further
critical accounting estimates or judgements in relation to the recognition of profit commission.
The performance obligation is the provision of insurance intermediary services, at which point theperformance obligation is met. Revenue is therefore recognised at a point in time.

Admiral Group plc Annual Report and Accounts 2023

UK Insurance£mInternational
Insurance£mAdmiral Money
£m

Other
£m

Total
£m

107.2
18.3
–
125.5
76.5

–
–
–
–
2.0

0.1
–
–
0.1
–

–
–
1.6
1.6
–

107.3
18.3
1.6
127.2
78.5

202.0

2.0

0.1

1.6

205.7

160.4
20.1
21.5
202.0

2.0
–
–
2.0

0.1
–
–
0.1

1.6
–
–
1.6

164.1
20.1
21.5
205.7

UK Insurance£mInternational
Insurance£mAdmiral Money
£m

Other
£m

Total
£m

104.3
15.8
–
120.1
127.5

–
–
–
–
–

0.3
–
–
0.3
–

0.2
–
8.3
8.5
–

104.8
15.8
8.3
128.9
127.5

247.6

–

0.3

8.5

256.4

209.0
17.8
20.8
247.6

–
–
–
–

0.3
–
–
0.3

8.5
–
–
8.5

217.8
17.8
20.8
256.4

31 December 2022 (restated)

Major products/service line
Fee and commission revenue
Law firm revenue
Comparison income*1

Total other revenue
Profit commission from co-insurers
Total other revenue and co-insurer profit
commission
Timing of revenue recognition
Point in time
Over time
Revenue outside the scope of IFRS 15*1. Comparison revenue excludes £nil million (31 December 2022: £0.3 million) of income from other Group companies.

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

A contract asset is recognised equal to the work performed up to the balance sheet date but not yet
billed. Refer to note 6h for further detail of this balance.

Profit commission from reinsurers is within the scope of IFRS 17, and not within the scope of IFRS 15 Revenue from Contracts with
Customers due to the nature of the income.

286

287

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

8. Other revenue and co-insurer profit commission continued
Profit commission analysis

Underwriting year
2019 & prior
2020
2021
2022
2023
Total UK motor profit commission

31 December 2023£m

31 December 2022
(restated)
£m

48.8
27.7
–
–
–
76.5

105.9
24.5
–
(2.9)
–
127.5

9. Directly attributable and other expenses
9a. Accounting policies(i) Directly attributable insurance expenses

Directly attributable expenses are cashflows that are directly attributable to a portfolio of insurance contracts and recognised as incurredinsurance service expenses. See note 5a for details of the types of expenses recognised as directly attributable insurance expenses.

(ii) Other operating expenses

All other operating expenses are charged to the Income Statement in the period that they are incurred.

For the cash settled schemes, the expense recognised for the fair value of services received results in a corresponding increasein liabilities.
The key drivers and assumptions used to calculate the charge for the schemes over the three year vesting period are:
• The number of shares awarded, which is set at the start of each scheme. Details of the number of shares awarded for each scheme
where shares remain unvested is set out in note 9f (iii)• The fair value of the shares;– For the SIP, the fair value of the shares awarded is the share price at the award date. Awards under the SIP are entitled to receive
dividends, and hence no adjustment is made to this fair value– For the DFSS equity settled awards, awards are not eligible for dividends, although a discretionary bonus is currently paid equivalent
to the dividend that would have been paid on the shareholding, hence the fair value of the shares is revised downwards to takeaccount of these expected dividends– For the DFSS cash settled awards, the fair value is based on the share price at the vesting date. The closing share price at the end ofeach reporting period is used as an approximation for the closing price at the end of the vesting period.
• Employee attrition rates, which impact the ultimate number of shares that vest.
• In the case of the DFSS, the vesting rates based on the performance conditions, which also impact the ultimate number of sharesthat vest.

As detailed in the Remuneration Committee Report, the key elements of employee remuneration are:

The number of shares that have ultimately vested compared to those originally awarded is set out in note 9f(iv).

• Base salaries and pension contributions;

At each balance sheet date, the Group revises its assumptions on the number of shares which will ultimately vest based on the latest
forecast information for attrition rates and, for the DFSS, the extent to which the performance conditions are met.

• Share based incentive plans;• A discretionary bonus, (the ‘DFSS Bonus’), rather than an annual cash bonus, that is based on the number of DFSS awards held andactual dividends paid out to shareholders.
Within note 9b, the charges for base salaries and pension contributions (and the related social security costs) are recognised within
Administration and acquisition expenses, Expenses relating to additional products and fees and Other expenses based on the role ofthe employee.
Charges for the share-based incentive plans (and related social security costs) and discretionary bonus are included within share scheme
charges. These charges are not shown as part of the result for each reportable segment, or within the expense ratio, due to them beingmaterially comprised of an accounting charge in line with IFRS 2 Share-based payments which does not result in a cash payment toemployees but instead results in an issue of new shares (resulting in a dilution of existing shares).

The financial impact as a result of any change in the assumptions is recognised through the Income Statement. Any significant changes
in assumptions may therefore result in an increased/decreased charge in an accounting period as a result of this true-up of the expectedcumulative charge required.

Social security costs on share-based incentive plans

Social security costs are incurred by the Group in respect of the share-based incentive plans, with the expense recognised over thevesting period for each share scheme. For the SIP, these costs are paid when the employees sell the shares after vesting (typically 3–5
years after the grant date). For the DFSS, the costs are paid immediately upon vesting.
The total social security costs are calculated based on the following:• The taxable value of the shares, being:

The rules of the share schemes ensure that the actual dilution level does not exceed 10% in any rolling ten-year period.

– For the SIP, the lower of the share price at award date and the share price at the balance sheet date

Base salaries and pension contributions– For the DFSS, the share price at the balance sheet date

Base salaries and the related employer social security costs are charged to the Income Statement in the period that they are incurred.
The Group contributes to defined contribution personal pension plans for its employees. The contributions payable to these schemes arecharged in the accounting period to which they relate.

Share based incentive plans and related social security costs

The Group operates a number of equity and cash settled compensation schemes for its employees, the main ones being:• A Share Incentive Plan (SIP), which is in place for all UK employees encouraging wide share ownership across employees, and• The Discretionary Free Share Scheme (DFSS). DFSS shares are typically awarded to managers, and for the majority of employees 50%of the DFSS shares awarded are subject to three performance conditions being Earnings per Share growth, Return on Equity and Total
Shareholder Return vs. the FTSE 350 (excluding investment companies) over a three-year period. The other 50% are guaranteed with
continued employment.

• The number of shares expected to vest for each scheme, driven by the number of shares awarded, attrition rates and, for the DFSS, thevesting rate based on performance conditions• The appropriate social security rate.
These assumptions are updated at the end of each reporting period. The financial impact as a result of any change in the assumptions
is recognised through the Income Statement. Any significant changes in assumptions may therefore result in an increased/decreased
charge in an accounting period as a result of this true-up of the expected cumulative charge required.

Discretionary bonus on shares allocated but unvested

The cost of the DFSS bonus is recognised and paid in each period equivalent to the dividends on shares allocated to employees that are
still entitled to vest but have not yet vested. The cost shown also includes the social security costs on the discretionary bonus. No accrualis made for future discretionary bonus payments due to there being no contractual obligation for such a bonus at the balance sheet date.

For both schemes, employees must remain in employment three years after the award date (i.e. at the vesting date), otherwise theshares are forfeited.
The majority of these schemes are classed as equity settled under IFRS 2, due to the employees receiving shares (rather than cash) as
consideration for the services provided.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements(iii) Employee benefits

For equity settled schemes, the charge, which reflects the fair value of the employee services received in exchange for the grant of thefree shares, is recognised as an expense, with a corresponding increase in equity, as shown in Consolidated statement of changes in equity(2023: £63.3 million; 2022: £57.3 million).

288

289

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

9. Directly attributable and other expenses continued
9b. Operating expenses and share scheme charges

9d. Employee numbers (including Directors)
Average for the year
2023
Number

2022
Number

8,365
4,276
12,641

7,490
3,845
11,33531 December
2023£m

31 December
2022
£m

1.2
2.1
–
3.3

1.1
2.2
–
3.3

2023
Number

2022
Number2

2

31 December 2023

Administration and acquisition expenses
Expenses relating to additional products and fees
Share scheme expenses
Loan expenses (excluding movement on ECL provision)
Movement in expected credit loss provision
Other*1
Total

Directly
attributable
expenses£m

Other operating
expenses£m

Total expenses
£m

836.8
–
55.3
–
–
–
892.1

100.8
41.4
28.5
23.0
31.0
57.1
281.8

937.6
41.4
83.8
23.0
31.0
57.1
1,173.9

31 December 2022 (restated)
Other operating
expenses£m

Total expenses
£m

755.1
–
53.0
–
–
–
808.1

83.8
38.5
26.3
22.2
18.9
33.8
223.5

838.9
38.5
79.3
22.2
18.9
33.8
1,031.69e. Directors’ remuneration(i) Directors’ remuneration

Directors’ emoluments
Amounts receivable under SIP and DFSS share schemes
Company contributions to money purchase pension plans
Total*1*1. Directors’ remuneration is stated as that of the Executive Directors. For information on Non-Executive Directors’ remuneration see the remuneration report(ii) Number of Directors
Retirement benefits are accruing to the following number of Directors under:– Money purchase schemes

9f. Employee share schemes

Total share scheme costs for the Group are analysed below:*1. Other includes centralised costs (2023: £34.5 million, 2022: £15.0 million) , business development costs (2023: £15.3 million, 2022: £8.8 million) and other costs (2023: £7.3 million,
2022: £10.0 million).

31 December 2023
SIP charge (i) £m DFSS charge (ii) £m

9c. Employee costs and other expenses
31 December 2023 31 December 2022
Total
Total
£m
£m

Salaries
Social security charges
Pension costs
Share scheme charges (see note 9f)
Total employee expenses
Depreciation charge:– Owned assets– ROU assets
Amortisation charge:– Software
Auditor’s remuneration (including VAT) (total Group):– Fees payable for the audit of the Company’s annual accounts– Fees payable for the audit of the Company’s subsidiary accounts– Fees payable for audit related assurance services pursuant to legislation or regulation

439.4
45.5
16.5
83.8
585.2

397.0
41.4
14.6
79.3
532.3

11.2
7.0

10.1
8.1

40.3

23.7

0.3
3.0
1.1

0.1
1.7
1.0

IFRS 2 charge for equity settled share schemes
IFRS 2 charge for cash settled share schemes
Total IFRS 2 charge
Social security costs on IFRS 2 charge
Discretionary bonus on shares allocated but unvested
Total share scheme charges
Amounts recovered from co-and reinsurance arrangements
Net share scheme charges

17.0
–
17.0
1.3
–
18.3

46.3
3.2
49.5
7.3
8.7
65.5

Total charge £m

63.3
3.2
66.5
8.6
8.7
83.8
(29.4)
54.4

31 December 2022
SIP charge (i) £m DFSS charge (ii) £m

18.0
–
18.0
0.7
–
18.7

39.3
0.2
39.5
0.4
20.7
60.6

Total charge £m£146,600 (inclusive of VAT) (2022: £10,800) was payable to the auditor for other services in the year.

IFRS 2 charge for equity settled share schemes
IFRS 2 charge for cash settled share schemes
Total IFRS 2 charge
Social security costs
Discretionary bonus on shares allocated but unvested
Total share scheme charges
Amounts recovered from co-and reinsurance arrangements
Net share scheme charges

57.3
0.2
57.5
1.1
20.7
79.3
(27.6)
51.7

Refer to the Corporate Governance Report for details of the Audit Committee’s policy on fees paid to the Company’s auditor for nonaudit services. Audit fees are 74% (2022: 65%) of total fees and 26% (2022: 35%) of total fees are for non-audit services, which are classed
as audit related assurance services under the FRC rules on non-audit services.

Share scheme charges are presented on a net basis within the strategic report, after allocations to co-insurers (in the UK and Italy) andreinsurers (in the International Insurance businesses), in line with internal management reporting. The proportion of net to gross sharescheme charges would be expected to be consistent in each period, at approximately 65%.

The majority of amortisation of software is charged to directly attributable expenses in the Income Statement

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Administration and acquisition expenses
Expenses relating to additional products and fees
Share scheme expenses
Loan expenses (excluding movement on ECL provision)
Movement in expected credit loss provision
Other*1
Total

Directly
attributable
expenses£m

Direct customer contact employees
Support employees
Total

290

291

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

9. Directly attributable and other expenses continued(iv) Number of free share awards vesting during the year ended 31 December 2023
Financial year ended 31 December

Analysis of gross cost

Total cumulative
charge to date£m

2020 and prior
£m

2021
£m

2022
£m

2023
£m

9.4
3.1
–
–
–

6.4
6.7
4.4
–
–

4.1
5.4
5.4
3.1
–
18.0

–
3.1
5.3
5.3
3.3
17.0

19.9
18.3
15.1
8.4
3.3

14.3
4.7
–
–
–

15.8
13.0
4.9
–
–

8.0
14.6
13.4
3.5
–
39.5
57.5

–
10.0
19.2
14.9
5.4
49.5
66.5

38.1
42.3
37.5
18.4
5.4

Year of share scheme – SIP
2019
2020
2021*12022*12023*1Gross IFRS 2 costs – SIP
Year of share scheme – DFSS
2019
2020
2021*22022*22023*2Gross IFRS 2 costs – DFSS
Total IFRS 2 costs

Original awards

Awards vested

982,6432,795,261

819,861
1,898,249

The difference between the original and vested awards reflects employee attrition (SIP schemes) and both employee attrition and thevesting outcomes based on performance conditions noted above (DFSS schemes).
The weighted average fair value of the shares granted in the year was £20.48 (2022: £19.45).
The weighted average market share price at the date of exercise for shares exercised during the year was £23.28 (2022: £21.51).

10. Taxation
10a. Accounting policy

Income tax on the profit or loss for the periods presented comprise of current and deferred tax.

(i) Current tax

Current tax is the expected tax payable on the taxable income for the period, using tax rates that have been enacted or substantively
enacted by the balance sheet date, and includes any adjustment to tax payable in respect of previous periods.
Current tax related to items recognised in Other Comprehensive Income is also recognised in Other Comprehensive Income and not in
the Income Statement.

(ii) Deferred tax(i) The Approved Share Incentive Plan (the SIP)

Eligible UK based employees qualify for awards under the SIP based upon the performance of the Group in each half-year period.
The maximum award for each year is £3,600 per employee and the maximum number of shares that can vest relating to the 2023
schemes is 1,045,697 (2022 schemes: 872,728; 2021 schemes: 688,384).
The awards are made at the discretion of the Remuneration Committee, taking into account the Group’s performance.

(ii) The Discretionary Free Share Scheme (the DFSS)

Under the DFSS, details of which are contained in the remuneration policy section of the Directors’ Remuneration Report, individuals
receive an award of free shares at no charge.
The maximum number of shares that can vest relating to the 2023 schemes is 3,360,665 (2022 scheme: 3,070,323; 2021
scheme: 2,850,114).

Deferred tax is provided in full using the balance sheet liability method, providing for temporary differences arising between the carrying
amount of assets and liabilities for accounting purposes and the amounts used for taxation purposes.
Deferred tax is calculated at the tax rates that have been enacted or substantively enacted by the balance sheet date and that are
expected to apply in the period when the liability is settled, or the asset is realised.
The principal temporary differences arise from carried forward losses, differences between tax capital allowances and depreciation ofproperty, plant and equipment, reserve movements and share scheme charges.
The resulting deferred tax is charged or credited in the Income Statement, except to the extent it relates to items that are recognised in
Other Comprehensive Income or directly in equity, in which case the deferred tax is also recognised in Other Comprehensive Income or
directly in equity respectively.
Deferred tax liabilities are recognised for all taxable temporary differences, and deferred tax assets (including those relating to carriedforward losses) are recognised only to the extent that it is probable that future taxable profits will be available against which the assets
can be utilised. The probability of the availability of future taxable profits is determined by a combination of the existence of taxable
temporary differences and reviewing future profit projections for the businesses.

10b. Taxation

The vesting percentage for most employees for the 2020 DFSS scheme which vested during 2023 was 78.25% (2019 DFSS
scheme: 98.9%).

(iii) Number of free share awards committed at 31 December 2023
Awardsoutstanding*1

688,384
872,728
1,045,697
2,850,114
3,070,323
3,360,665
11,887,911

Current tax
Corporation tax on profits for the year
Under/(over) provision relating to prior periods
Current tax charge
Deferred tax
Current period deferred taxation movement(Over)/Under provision relating to prior periods
Total tax charge per Consolidated Income Statement

31 December 2023£m

31 December 2022
(restated)
£m

91.6
21.3
112.9

107.6
(0.8)
106.8

0.7
(8.0)
105.6

(31.6)
0.7
75.9*1. Being the maximum number of awards committed before accounting for expected employee attrition and vesting conditions.
*2. Shares are awarded in March and September of each year, and vest three years later.
*3. The main award is made in September of each year, with smaller awards made at other points through the year.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements*1. Awards are made in March and September of each year, and vest over 36 months from award date. On the 2021 scheme, an average of 5 months’ charge remains outstanding, on the 2022 scheme
an average of 17 months’ charge remains outstanding, and on the 2023 schemes an average of 29 months’ charge remains outstanding.
*2. The main award is made in September of each year, with smaller awards made at other points through the year. The shares vest over 36 months from award date. On the 2021 main DFSS,
9 months’ charge remains outstanding; on the 2022 main DFSS 21 months’ charge remains outstanding, and on the 2023 main DFSS, 33 months’ charge remains outstanding.

SIP 2021*2
SIP 2022*2
SIP 2023*2
DFSS 2021*3
DFSS 2022*3
DFSS 2023*3
Total awards committed

SIP 2020 schemes
DFSS 2020 schemes

292

293

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

10. Taxation continued

10c. Deferred income tax asset/(liability)

Factors affecting the total tax charge are:Profit before tax
Corporation tax thereon at effective UK corporation tax rate of 23.5% (2022: 19.0%)
Expenses and provisions not deductible for tax purposes
Non-taxable income
Impact of change in UK tax rate on deferred tax balances
Adjustments relating to prior periods
Impact of different overseas tax rates
Unrecognised deferred tax
Total tax charge for the period as above

Analysis of deferred tax asset/(liability)
31 December
2023£m

31 December
2022 (restated)
£m

442.8
104.1
3.0
(13.4)
(0.4)
13.5
(8.9)
7.7
105.6

361.2
68.6
2.2
(6.0)
(5.6)
(0.2)
3.6
13.3
75.9

Corporation tax assets as at 31 December 2023 totalled £20.4 million, with corporation tax liabilities of £4.9 million (2022: £13.9 million
liability and £9.1 million asset).
The UK corporation tax rate for 2023 is 23.5% (2022: 19.0%). An increase to the main rate of corporation tax in the UK from 19% to 25%
was announced in the 2021 Budget and has come into effect from 1 April 2023.

In 2021, over 130 countries reached a historic agreement to reform the international tax framework. The main aim of the agreement was
to ensure that large, multinational corporations pay their fair share of tax in the countries in which they operate and this included theintroduction of a new global minimum corporate income tax rate of 15% - referred to as the Pillar Two rules.
Legislation has now been enacted in various countries (including the United Kingdom) and draft legislation or announcements havebeen made in others, with the rules first coming into effect for the Group from 1 January 2024. Under the new rules, the Group may berequired to pay top-up taxes either in the UK ultimate parent location or in the overseas jurisdiction if a jurisdiction has an effective tax
rate of less than 15%, as calculated under the rules.
The Group expects top-up tax to arise in relation to our operations in Gibraltar, where the statutory corporate tax rate is 12.5%. However,since the enacted Pillar Two legislation is only effective from 1 January 2024, the Group has no related current tax impact for the year
ended 31 December 2023. If the Pillar Two rules had applied in the year ended 31 December 2023, top-up tax arising in relation to the
profits in Gibraltar would have been immaterial to the Group.
The Pillar Two rules are complex and the Group continues to monitor ongoing developments in legislation and guidance to assess theimpact for future periods. Current modelling indicates that the top-up tax will primarily be dependent on the profits arising in Gibraltar.
Based on current forecasts and the expected profit mix across the Group for the next two financial years (2024 and 2025), it is notexpected that the Pillar Two rules will result in a material increase in the Group effective tax rate compared to the average of the last
three years (2021-2023: 21% average).
The Group has applied the temporary mandatory exception to recognising and disclosing information about deferred tax assets andliabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
In addition to the Pillar Two legislation, the Government of Gibraltar announced on 24 January 2024 that the taxation of interest income
as trading income is to be extended to include that of insurers for accounting periods beginning on or after 1 February 2024. This change
would result in additional investment and interest income of the Group’s subsidiary, Admiral Insurance (Gibraltar) Limited becoming
taxable from 1 January 2025 at the Gibraltar corporation tax rate of 12.5%.

Capitalallowances£m

Carriedforwardlosses£m

Fair value
reserve£m

Hedging
reserve£m

Insurance
financereserve£m

Otherdifferences
£m

Total
£m

8.5

7.8

8.4

(5.8)

–

3.0

(1.2)

20.7

1.2

–

–

–

–

–

–

1.2

(6.3)
–
–
–
–

–
(0.7)
–
–
–

–
–
29.2
–
–

–
–
–
13.0
–

–
–
–
–
(7.0)

–
–
–
–
–

–
–
–
–
–

(6.3)
(0.7)
29.2
13.0
(7.0)

–
–

–
–

–
–

–
(0.3)

–
–

(22.8)––
1.4(22.8)
1.1

3.4

7.1

37.6

6.9

(7.0)

(19.8)

0.2

28.4

1.7

–

–

–

–

–

–

1.7

2.1
–
–
–
–

–
(11.0)
–
–
–

–
–
15.9
–
–

–
–
–
(5.7)
–

–
–
–
–
4.5

–
–
–
–
–

–
–
–
–
–

2.1
(11.0)
15.9
(5.7)
4.5

–
–

–
–

–
–

–
–

–
–

9.7
–

–
0.5

9.7
0.5

7.2

(3.9)

53.5

1.2

(2.5)

(10.1)

0.7

46.1

Positive amounts presented above relate to a deferred tax asset position.
The deferred tax asset has increased during the year, mainly relating to unused tax losses in the UK and Gibraltar which are recognised as
it is considered probable that there are sufficient future taxable profits available to utilise the losses.
At 31 December 2023, the Group had unused tax losses amounting to £233.0 million (2022: £322.0 million, including losses of compare.
com which was disposed of in 2023) and other deductible timing differences of £43.4 million, relating primarily to the Group’s businesses
in the US and Spain for which no deferred tax assets have been recognised. This is due to uncertainty over the availability and timing of
future taxable profits against which to utilise these deferred tax assets. The earliest expiry date for the US tax losses is 2029, with no
expiry for the losses in Spain.

If the change in treatment had taken effect for the current financial year ended 31 December 2023, the impact to the Group on current
tax and deferred tax is estimated to be immaterial. The Group are continuing to review the draft legislation against the particular natureof the investments held in Gibraltar to determine how widely it applies.
It should be noted that there will be interactions between these two legislative changes. Additional corporation tax in Gibraltar payable
as a result of the proposed changes to the taxation of interest income will correspondingly reduce the Pillar Two top-up tax required tobe paid by the Group for periods ending 31 December 2025 onwards.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Adjustments relating to prior periods are higher than previous periods, with £11.7 million of the above total impact of £13.5 million
due to the Group deciding to settle a historic Italian tax matter, relating mainly to cross border matters. Further costs of £6.8 million
relating to this inspection, such as interest and penalties, are included in Other Group costs within the Income Statement. These costs are
expected to be non-recurring.

Balance brought forward at
1 January 2022 (restated)
Tax treatment of share scheme
charges through income or expense
Tax treatment of share scheme
charges through reserves
Capital allowances
Carried forward losses
Movement in fair value reserve
Movement in hedging reserve
Movement in insurance
finance reserve
Other difference
Balance carried forward at
31 December 2022 (restated)
Tax treatment of share scheme
charges through income or expense
Tax treatment of share scheme
charges through reserves
Capital allowances
Carried forward losses
Movement in fair value reserve
Movement in hedging reserve
Movement in insurance
finance reserve
Other difference
Balance carried forward at
31 December 2023

Tax
treatmentof shareschemes
£m

294

295

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

11. Other Assets and Other Liabilities
11a. Accounting policy

Impairment of goodwill(i) Property and equipment, and depreciation
All property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method
to write off the cost less residual values of the assets over their useful economic lives. These useful economic lives are as follows:
Improvements to short leasehold buildings
Computer equipment
Office equipment
Furniture and fittings
Right-of-use assets– four to ten years– two to four years– four years– four years– two – twenty years, aligned to lease agreement

The annual impairment review involves comparing the carrying amount to the estimated recoverable amount (by allocating the goodwill
to CGUs) and recognising an impairment loss if the recoverable amount is lower. Impairment losses are recognised through the Income
Statement and are not subsequently reversed.
The recoverable amount is the greater of the fair value of the asset less costs to sell and the value in use of the CGU.
The value in use calculations use cashflow projections based on financial budgets approved by management covering a period of up to
three years. Cashflows beyond this period are considered, but not included in the calculation.
The key assumptions used in the value in use calculations are those regarding revenue growth, along with expected changes in pricing
and expenses incurred during the forecast period. Management estimates revenue growth rates and changes in pricing based on pastpractices and expected future changes in the market.

As set out further in note 6i to the financial statements, a right-of-use asset is established in relation the Group’s lease arrangements.

The headroom above the goodwill carrying value is very significant, and there is no foreseeable event that would eliminate this margin.

The right-of-use asset is measured at cost, which comprises the following:

Software• The amount of the initial measurement of lease liability (note 6i to the financial statements)• Any lease payments made at or before the commencement date less any lease incentives received• Any initial direct costs, and• Restoration costs.

Purchased software is recognised as an intangible asset and amortised over its expected useful life (generally the licence term which
is typically between 2 and 4 years). Internally generated software is recognised as an intangible asset, with directly attributable costs
incurred in the development stage capitalised. The internally generated software assets are amortised over the expected useful life of
the systems and amortisation commences when the software is available for use.

The Group does not have any significant leases which qualify for the short-term leases or leases of low-value assets exemption.

Customer contracts and relationships(ii) Impairment of property and equipment

In the case of property and equipment, carrying values are reviewed at each balance sheet date to determine whether there are
any indicators of impairment. If any such indicators exist, the asset’s recoverable amount is estimated and compared to the carrying
value. The carrying value is the higher of the fair value of the asset less costs to sell and the asset’s value in use. Impairment losses arerecognised through the Income Statement.

(iii) Intangible assets
Goodwill

Customer contracts and relationships are recognised as an intangible asset and amortised over its expected useful life (generally theterm of the contract), amortisation commences when the contract begins.
The carrying value of customer contracts and relationships are reviewed every six months for evidence of impairment, with the value
being written down if any impairment exists. Impairment may be reversed if conditions subsequently improve.

(iv) Provisions, contingent liabilities and contingent assets

Provisions are recognised when a legal or constructive obligation arises as a result of an event that occurred before the balance sheet
date, when a cash-outflow relating to this obligation is probable and when the amount can be estimated reliably.

All business combinations are accounted for using the acquisition method. Goodwill has been recognised in acquisitions of subsidiaries
and represents the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired.

Where a material obligation exists, but the likelihood of a cash outflow or the amount is uncertain, or where there is a possible obligation
arising from a past event that is contingent on a future event, a contingent liability is disclosed.

The classification and accounting treatment of acquisitions occurring before 1 January 2004 have not been reconsidered in preparing
the Group’s opening IFRS balance sheet at 1 January 2004 due to the exemption available in IFRS 1 (First time adoption). In respect ofacquisitions prior to 1 January 2004, goodwill is included at the transition date on the basis of its deemed cost, which represents theamount recorded under UK GAAP, which was tested for impairment at the transition date. On transition, amortisation of goodwill hasceased as required by IAS 38.

Contingent assets are possible assets that arise from past events, whose existence will be confirmed only by the occurrence or nonoccurrence of future events. Where it is probable that a cash inflow will arise from a contingent asset, this is disclosed.

Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash generating units (CGUs) according tobusiness segment and is reviewed annually for impairment.
The goodwill held on the balance sheet at 31 December 2023 and 2022 is allocated solely to the UK Insurance segment.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

The right-of-use asset is subsequently depreciated over the shorter of the lease term and the asset’s useful life on a straight-line basis.

The carrying value of software is reviewed every six months for evidence of impairment, with the value being written down if any
impairment exists. Impairment may be reversed if conditions subsequently improve.

296

297

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

11. Other Assets and Other Liabilities continued
11b. Property and equipment
Improvements toshort leaseholdbuildings£mComputerequipment£m

Officeequipment
£m

37.0
1.7
–
(1.6)

68.9
7.0
–
(2.7)

0.4
37.5

Goodwill£m

Customer
contracts andrelationships£mSoftware– Internallygenerated£m

Software– Other
£m

Total
£m

62.3
–
–
–
62.3
–
–
–
–
–
–
62.3

–
–
–
–
–
7.9
–
–
–
–
–
7.9

64.4
83.4
(18.3)
6.9
136.4
51.1
(34.8)
(0.1)
(0.2)
–
(0.4)
152.0

25.0
5.2
(5.4)
(5.9)
18.9
7.7
(5.5)
–
–
–
(0.4)
20.7

151.7
88.6
(23.7)
1.0
217.6
66.7
(40.3)
(0.1)
(0.2)
–
(0.8)
242.9

Furniture andfittings£m

ROU
Asset – Leaseholdbuildings
£m

Total
£m

21.9
0.6
–
(1.5)

9.9
0.7
–
(0.1)

103.3
1.3
(1.3)
(9.7)

241.0
11.3
(1.3)
(15.6)

0.7
73.9

0.4
21.4

0.2
10.7

1.4
95.0

3.1
238.5

26.3
3.2
–
(1.6)

57.3
5.5
–
(2.4)

19.9
0.8
–
(1.5)

8.5
0.6
–
–

25.8
8.1
(0.7)
(3.2)

137.8
18.2
(0.7)
(8.7)

0.2
28.1

0.7
61.1

0.3
19.5

0.1
9.2

0.8
30.8

2.1
148.7

10.7

11.6

2.0

1.4

77.5

103.2

Internally generated software includes a new claims system implemented within the UK business during 2022 which has a net carrying
amount of £24.1 million as at 31 December 2023 (2022: £33.4 million) and a remaining amortisation period of 3 years.

9.4

12.8

1.9

1.5

64.2

89.8

Only one year of forecasts is required to support the recoverable value of goodwill above. Given the short time period used to support therecoverable amount, no terminal growth rate or discounting is applied.

37.5
3.5
–
(10.9)

73.9
4.9–(20.8)

21.4
0.2
–
(2.8)

10.7
0.7
–
(1.9)

95.0
3.3
6.1
(5.6)

238.5
12.6
6.1
(42.0)

(0.4)
29.7

(0.7)
57.3

(0.5)
18.3

0.1
9.6

1.1
99.9

(0.4)
214.8

28.1
3.1
–
(9.5)

61.1
6.4
–
(20.8)

19.5
0.9
–
(2.8)

9.2
0.8
–
(1.7)

30.8
7.0
(0.2)
(5.4)

148.7
18.2
(0.2)
(40.2)

(0.1)
21.6

(0.9)
45.8

(0.4)
17.2

0.1
8.4

(0.5)
31.7

(1.8)
124.7

8.1

11.5

1.1

1.2

68.2

90.1

At 1 January 2022
Additions
Amortisation charge
Foreign exchange movement
At 31 December 2022
Additions
Amortisation charge
Disposals
Impairment
Transfers
Foreign exchange movement & otherAt 31 December 2023

Goodwill relates to the acquisition of Group subsidiary EUI Limited (formerly Admiral Insurance Services Limited) in November 1999.
As described in the accounting policies, the amortisation of this asset ceased on transition to IFRS on 1 January 2004. All annual
impairment reviews since the transition date have indicated that the estimated recoverable value of the asset is greater than the
carrying amount and therefore no impairment losses have been recognised.

Refer to the accounting policy for goodwill for further information.

11d. Trade and other payables

Trade payables
Other tax and social security
Amounts owed to co-insurers
Other payables
Accruals and deferred income
Total trade and other payables
Analysis of accruals and deferred income
Accruals
Deferred income
Total accruals and deferred income as above

31 December 2023£m

31 December 2022
(restated)
£m

42.3
11.9
156.9
42.5
52.2
305.8

22.7
14.9
115.8
38.2
63.3
254.9

28.3
23.9
52.2

41.0
22.3
63.3

11e. Leases

The Group occupies various properties under leasing arrangements that are now recognised as right of use assets and lease liabilities.
Amounts recognised in the Statement of Financial Position are as follows:

Lease liabilities
Current
Non-Current
Total

31 December 2023£m

31 December 2022
(restated)
£m

13.7
67.5
81.2

8.3
80.2
88.5

See note 11b for right of use assets depreciation and the carrying amount of right of use assets at the end of the reporting period.
Only one class of underlying assets is identified as leasehold buildings. Total cash outflows in relation to leases is disclosed under 6i.
The Group has no significant financial commitments other than those accounted for as right of use assets and lease liabilities under
IFRS 16.
Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Cost
At 1 January 2022
Additions
Impairment
Disposals
Foreign exchange and othermovements
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
Impairment
Disposals
Foreign exchange and othermovements
At 31 December 2022
Net book amountAt 1 January 2022
Net book amountAt 31 December 2022
Cost
At 1 January 2023
Additions
Impairment
Disposals
Foreign exchange and othermovements
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
Impairment
Disposals
Foreign exchange and othermovements
At 31 December 2023
Net book amountAt 31 December 2023

11c. Intangible assets

298

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

11. Other Assets and Other Liabilities continued
11f. Contingent liabilities

The Group’s legal entities operate in numerous tax jurisdictions and on a regular basis are subject to review and enquiry by the relevant
tax authority.
One of the Group’s previously owned subsidiaries was subject to a Spanish Tax Audit which concluded with the Tax Authority denying theapplication of the VAT exemption relating to insurance intermediary services. The Company has appealed this decision via the Spanish
Courts and is confident in defending its position which is, in its view, in line with the EU Directive and is also consistent with the way
similar supplies are treated throughout Europe. Whilst the Company is no longer part of the Admiral Group, the contingent liability which
the Company is exposed to has been indemnified by the Admiral Group up to a cap of £22 million.
No material provisions have been made in these financial statements in relation to the matters noted above.
The Group is, from time to time, subject to threatened or actual litigation and/or legal and/or regulatory disputes, investigations orsimilar actions both in the UK and overseas. All potentially material matters are assessed, with the assistance of external advisers if
appropriate, and in cases where it is concluded that it is more likely than not that a payment will be made, a provision is established
to reflect the best estimate of the liability. In some cases it will not be possible to form a view, for example if the facts are unclear or
because further time is needed to properly assess the merits of the case or form a reliable estimate of its financial effect. In thesecircumstances, specific disclosure of a contingent liability and an estimate of its financial effect will be made where material, unless it is
not practicable to do so.
The Directors do not consider that the final outcome of any such current case will have a material adverse effect on the Group’s financial
position, operations or cashflows, and as such, no material provisions are currently held in relation to such matters.
A number of the Group’s contractual arrangements with reinsurers include features that, in certain scenarios, allow for reinsurers torecover losses incurred to date. The overall impact of such scenarios would not lead to an overall net economic outflow from the Group.

12. Dividends, Earnings and Share Capital

The Group’s capital includes share capital and the share premium account, other reserves which are comprised of the fair value reserve,
insurance finance reserve, hedging reserve and foreign exchange reserve, and retained earnings.

12a. Accounting policies(i) Share capital

Shares are classified as equity when there is no obligation to transfer cash or other assets.

(ii) Fair value reserve

For investments recognised as Fair Value through Other Comprehensive Income (FVOCI), changes in fair value are accumulated within
the fair value reserve within equity. The accumulated changes in fair value are transferred to profit or loss when the investment isderecognised or impaired.

(iii) Hedging reserve

The hedging reserve includes the cash flow hedge reserve. The cash flow hedge reserve is used to recognise the effective portion ofgains or losses on derivatives that are designated and qualify as cash flow hedges. Amounts are subsequently reclassified to profit or loss
as appropriate.

(iv) Insurance finance reserve

The insurance finance reserve relates to the impact of changes in market interest rates on the value of the insurance and reinsurance
assets and liabilities. These changes are reflected in the insurance finance reserve in order to minimise accounting mismatches between
the accounting for financial assets and insurance assets and liabilities.

(v) Dividends

Dividends are recorded in the period in which they are declared and paid.

(vi) Earnings per share

Basic earnings per share is calculated by dividing profit or loss attributable to equity holders of the Group Parent Company, Admiral Groupplc by the weighted average number of ordinary shares during the period.
Diluted earnings per share is calculated by dividing profit or loss attributable to equity holders of the Group Parent Company by theweighted average number of ordinary shares outstanding, adjusted for the effects of all dilutive potential ordinary shares.

Admiral Group plc Annual Report and Accounts 2023

299

12b. Dividends

Dividends were proposed, approved and paid as follows:

Proposed March 2022 (118.0 pence per share, approved April 2022 and paid June 2022)
Declared August 2022 (105.0 pence per share, paid October 2022)
Proposed March 2023 (52.0 pence per share, approved April 2023 and paid June 2023)
Declared August 2023 (51.0 pence per share, paid October 2023)
Total dividends

31 December 2023£m

31 December 2022
(restated)
£m

–
–
154.9
152.2
307.1

348.1
310.2
–
–
658.3

The dividends proposed in March (approved in April) represent the final dividends paid in respect of the 2021 and 2022 financial years.
The dividends declared in August are interim distributions in respect of 2022 and 2023.
A 2023 final dividend of 52.0 pence per share (approximately £156.2 million) has been proposed. Refer to the financial narrative forfurther detail.

12c. Earnings per share
31 December2022(restated)
£m

338.0
303,989,170
111.2p305,052,941
110.8p286.5
300,207,330
95.4p
301,543,390
95.0p

The difference between the basic and diluted number of shares at the end of 2023 (being 1,063,771; 2022: 1,336,060) relates to awardscommitted, but not yet issued under the Group’s share schemes. Refer to note 9 for further detail.

12d. Share capital

Authorised
500,000,000 ordinary shares of 0.1 pence
Issued, called up and fully paid
306,304,676 ordinary shares of 0.1 pence
302,837,726 ordinary shares of 0.1 pence

31 December 2023£m

31 December 2022
(restated)
£m

0.5

0.5

0.3
–
0.3

–
0.3
0.3

During 2023, 3,466,950 (2022: 3,283,006) new ordinary shares of 0.1 pence were issued to the trusts administering the Group’s
share schemes.
806,950 (2022: 675,927) of these were issued to the Admiral Group Share Incentive Plan Trust for the purposes of this share scheme
resulting in cumulative shares issued to the Trust at 31 December 2023 of 14,500,249 (31 December 2022: 13,693,299). Of the sharesissued, 4,028,579 remain in the Trust at 31 December 2023 (2022: 3,851,967). These shares are entitled to receive dividends.
2,660,000 (2022: 2,607,079) shares were issued to the Admiral Group Employee Benefit Trust for the purposes of the Discretionary
Free Share Scheme resulting in cumulative shares issued to the Trust of 33,209,027 (31 December 2022: 30,549,027). Of the sharesissued 5,868,352 remain in the Trust at 31 December 2023 (2022: 5,111,601) to be used for future vesting, the remaining issued shares
having vested.
The balance of awards made to employees under the Discretionary Free Share Scheme that have not either vested or lapsed is 8,755,431(2022: 8,302,363).
The Trustees have waived the right to dividend payments, other than to the extent of 0.001 pence per share, unless and to the extent
otherwise directed by the Company from time to time.
There is one class of share with no unusual restrictions.

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Profit for the financial year after taxation attributable to equity shareholders
Weighted average number of shares – basic
Unadjusted earnings per share – basic
Weighted average number of shares – diluted
Unadjusted earnings per share – diluted

31 December 2023
£m

300

301

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

12. Dividends, Earnings and Share Capital continued
12e. Group related undertakings
Class ofshares held

Incorporated in England and Wales
Registered office: Ty Admiral, David Street, Cardiff, United Kingdom, CF10 2EH
Admiral Law Limited

Ordinary

Able Insurance Services Limited

Ordinary

EUI Limited*2

Ordinary

Admiral Insurance Company Limited
Admiral Syndicate Limited
Admiral Syndicate Management Limited
Bell Direct Limited*4
Diamond Motor Insurance Services Limited*4
Elephant Insurance Services Limited*4
Admiral Life Limited*4

Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary

Ordinary% ownership

95 Legal Company
Insurance
100
Intermediary
Insurance
100
Intermediary
Insurance
100
Company
100
Dormant*1
100
Dormant*1
100
Dormant*1
100
Dormant*1
100
Dormant*1
100
Dormant*1
Financial
Services
100
Company

Ordinary

100

Insurance
Company

Incorporated in France
Registered office: la Boétie, 75008 Paris
Pioneer Intermediary Europe Services

Ordinary

100 (indirect)

Insuranceintermediary

Grove General Agency Inc

Ordinary

100 (indirect)

Platinum General Agency Inc
Registered office: Corporation Trust Center, 1209 Orange Street, Wilmington,
Delaware 19801

Ordinary

100 (indirect)

Elephant Insurance Services LLC

Ordinary

100 (indirect)

Elephant Holding Company LLC
Subsidiaries by virtue of control
The related undertakings below are subsidiaries in accordance with IFRS 10,
as Admiral can exercise dominant influence or control over them:
Registered office: 10th Floor, 5 Churchill Place, London, E14 5HU

Ordinary

100

Seren One Limited

n/aSeren Two Limited

n/a

Associates
Registered office: Tramshed Tech, Pendyris Street, Capital Tower,
Greyfriars Road, Cardiff, Wales, CF10 3AD
Wagonex Limited

Ordinary

Insurancecompany
Insuranceintermediary
Insuranceintermediary

Insuranceintermediary
HoldingCompany

Special purpose
entitySpecial purpose
0
entity023.56 (indirect) Internet-based
Subscription
Platform*1. Exempt from audit under S480 of Companies Act 2006.
*2. EUI Limited has branches in India and Canada.
*3. Admiral Intermediary Services S.A. has branches in Italy and France.
*4. At the balance sheet date Admiral Life Limited, Bell Direct Limited, Diamond Motor Insurance Services Limited and Elephant Insurance Services Limited were in the process of being dissolved.

12f. Related party transactions

Ordinary

100

Financialservices
Company

Incorporated in Spain
Registered office: Calle Rodríguez Marín 61 1ª Planta, 28016 Madrid
Admiral Europe Compañía de Seguros, S.A.
Registered office: Calle Albert Einstein, 10 41092 Sevilla

Ordinary

100

Insurance
Company

Admiral Intermediary Services S.A.*3

Ordinary

100

Insurance
Intermediary

Admiral Group plc Annual Report and Accounts 2023

100 (indirect)

For further information on how the Group conducts its business across the UK, Europe and the US, refer to the Strategic Report.

Incorporated in Italy
Registered office: Via Della Bufalotta 374, 00139 Roma

Admiral Financial Services Italia S.P.A.

Ordinary

Principal Activity

Incorporated in Gibraltar
Registered office: 2Aa 2nd Floor, Leisure Island Business Centre, 23, Ocean Village
Promenade, Gibraltar, GX11 1AA
Admiral Insurance (Gibraltar) Limited

Elephant Insurance Company

Principal Activity

The Board considers that only the Executive and Non-Executive Directors of Admiral Group plc are key management personnel.
A summary of the remuneration of key management personnel is as follows, with further detail relating to the remuneration andshareholdings of key management personnel set out in the Directors’ Remuneration Report.
Key management personnel received short term employee benefits in the year of £2,900,278 (2022: £3,058,170), post-employment
benefits of £30,000 (2022: £30,000) and share based payments of £1,608,776 (2022: £1,561,768). Key management personnel are able toobtain discounted motor insurance at the same rates as all other Group employees, typically at a reduction of 15%.

12g. Post balance sheet events

No events have occurred since the reporting date that materially impact these financial statements.

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Admiral Financial Services Limited% ownership

Incorporated in the United States of America
Registered office: 8801 Park Central Drive, Suite 500, Richmond, VA 23227

The Parent Company’s subsidiaries are as follows:
Subsidiary

Class ofshares held

Subsidiary

302

303

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

13. Reconciliation of turnover to reported insurance premium and other revenue as per the financial statements

The following table reconciles turnover, a significant Key Performance Indicators (KPIs) and non-GAAP measure presented within theStrategic Report, to insurance revenue, as presented in note 4 to the financial statements
31 December 2023
Note£m

Insurance premium revenue
Movement in unearned premium
Premiums written after co-insurance
Co-insurer share of written premiums
Total premiums written
Other insurance revenue
Other revenue
Interest income
Turnover as per note 4b of financial statements
Intra-group income elimination*1
Total turnover

5b

5b
8

3,283.3
528.3
3,811.6
577.8
4,389.4
202.8
127.2
92.1
4,811.5–
4,811.5

31 December 2022
(restated)£m

2,782.1
142.7
2,924.8
393.4
3,318.2
174.8
128.9
58.7
3,680.6
0.3
3,680.9*1. Total insurance revenue of £3,486.1 million (2022: £2,956.9 million), comprised of insurance premium revenue of £3,283.3 million (2022: £2,782.1 million) and Other insurance revenue of£202.8 million (2022: £174.8 million).
*2. Intra-group income elimination relates to comparison income earned by compare.com from other Group entities.

APPENDIX 1 TO THE GROUP FINANCIAL STATEMENTS (unaudited)

The following tables reconcile significant Key Performance Indicators (KPIs) and non-GAAP measures included in the Strategic Report toitems included in the financial statements.

1a. Reconciliation of reported loss and expense ratios: Group
31 December 2023

£m

5b/5d
5c
5c/5d
5c/5d

Core
product

Ancillary
income

Total
gross

Total, net of XoL
reinsurance

3,152.3

131.0

3,283.3

3,170.6–
3,152.3(795.2)(2,624.6)
440.6

202.8
333.8
(41.6)(40.5)–

202.8
3,486.1(836.8)(2,665.1)
440.6

202.8
3,373.4(836.8)(2,605.8)
447.3(40.4)
4.9
342.6(36.8)
305.8
63.9%
24.8%
10.2%

31 December 2022 (restated)£m

Insurance premium revenue
Administration fees, instalment income andnon-separable ancillary commission
Insurance revenue (A)Insurance expenses (B)Claims incurred (C)Claims releases (D)Quota share reinsurance result*1
Onerous loss component movement*2
Underwriting result (E)Net share scheme costs*3
Insurance service result
Reported loss ratio ((C+D)/A)
Reported expense ratio (B/A)
Insurance service margin

Consolidated
financialstatement note

5b/5d
5c
5c/5d
5c/5d

Core
product

Ancillary
income

Total
gross

Total, net of XoL
reinsurance

2,646.5

135.6

2,782.1

2,704.0–
2,646.5(710.4)(2,339.3)
420.5

174.8
310.4
(44.6)(33.0)–

174.8
2,956.9(755.0)(2,372.3)
420.5

174.8
2,878.8(755.0)(2,341.0)
309.8
117.4
4.1
214.1
(32.8)
181.3
70.6%
26.2%
7.4%

*1. Quota share reinsurance result excludes quota share reinsurers’ share of share scheme costs and movement in onerous loss-recovery component.
*2. Onerous loss component movement is shown net of all reinsurance.
*3. Net share scheme costs of £36.8 million (2022: £32.8 million), being gross costs of £55.3 million (2022: £53.0 million, see note 5c) less reinsurers’ share of share scheme costs of £18.5 million(2022: £20.2 million) are excluded from the underwriting result.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Insurance premium revenue
Administration fees, instalment income andnon-separable ancillary commission
Insurance revenue (A)Insurance expenses (B)Claims incurred (C)Claims releases (D)Quota share reinsurance result*1
Onerous loss component movement*2
Underwriting result (E)Net share scheme costs3
Insurance service result
Reported loss ratio ((C+D)/A)
Reported expense ratio (B/A)
Insurance service margin (E/A)

Consolidated
financialstatement note

304

Financial Statements

Notes to the Consolidated Financial Statements
For the year ended 31 December 2023

continued

1b. Reconciliation of reported loss and expense ratios: UK Motor
31 December 2023£m

Total premiums written
Gross premiums written
Insurance premium revenue
Instalment income
Administration fees non-separable
ancillary commission
Insurance revenue (A)Insurance expenses (B)Claims incurred (C)Claims releases (D)Current period loss ratio (C/A)
Claims releases (D/A)
Reported loss ratio ((C+D)/A)
Reported expense ratio (B/A)

Consolidated
financialstatement note

5b/5d
5c
5c/5d
5c/5d

Core
product

Ancillary
income*1

Total
gross

Total, netof XoLreinsuranceCore productnet of XoL
reinsurance

3,004.3
2,453.9
2,007.6
–

113.9
113.9
107.8
99.0

3,118.2
2,567.8
2,115.4
99.0

3,016.8
2,485.0
2,053.8
99.0

2,903.0
2,371.1
1,946.0––
2,007.6(416.8)(1,719.9)
406.9

35.8
242.6
(34.4)(35.6)–

35.8
2,250.2(451.2)(1,755.5)
406.9

35.8
2,188.6(451.2)(1,729.0)
392.8
79.0%
(17.9%)
61.1%
20.6%

–
1,946.0(416.8)(1,693.4)
392.8
87.0%
(20.2%)
66.8%
21.4%

31 December 2022 (restated)£m

Total premiums written
Gross premiums written
Insurance premium revenue
Instalment income
Administration fees and nonseparable ancillary commission
Insurance revenue (A)Insurance expenses (B)Claims incurred (C)Claims releases (D)Current period loss ratio (C/A)
Claims releases (D/A)
Reported loss ratio ((C+D)/A)
Reported expense ratio (B/A)

Consolidated
financialstatement note

5b/5d
5c
5c/5d
5c/5d

Core
product

Ancillary
income*1

Total
gross

Total, netof XoLreinsuranceCore productnet of XoL
reinsurance

2,157.7
1,772.8
1,682.4
–

113.6
113.6
113.3
75.3

2,271.3
1,886.4
1,795.7
75.3

2,213.5
1,838.9
1,751.1
75.3

2,099.9
1,725.3
1,637.8––
1,682.4(354.4)(1,592.2)
437.2

38.7
227.3
(35.2)(28.2)–

38.7
1,909.7(389.6)(1,620.4)
437.2

38.7
1,865.1(389.6)(1,596.0)
327.2
85.5%
(17.5%)
68.0%
20.9%

–
1,637.8(354.4)(1,567.8)
327.2
95.7%
(20.0%)
75.7%
21.6%

*1. Ancillary income combined with other net income is presented as part of UK motor insurance other revenue in reporting “Other revenue per vehicle”.
Total other revenue was £247.3 million (2022: £236.8 million).

Admiral Group plc Annual Report and Accounts 2023

305

Parent Company Financial Statements
Parent Company Income Statement
Year ended
31 December 2023 31 December 2022
£m
£m
Note
Total
Total

Administrative expenses
Operating loss
Investment and interest income
Impairment expense
Gain/(loss) on disposal of subsidiaries
Interest payable
Profit before tax
Taxation credit
Profit after tax

2
3
4
6
7

(29.9)(29.9)
362.8(37.2)(3.2)(20.4)
272.1
12.1
284.2

(26.3)(26.3)
320.1(37.0)–(12.0)
244.8
5.7
250.5

Parent Company Statement of Comprehensive Income
Year ended
31 December 2023 31 December 2022
Note
£m
£m

7

284.2

250.5

13.4
(3.4)
10.0
294.2

(20.9)
5.2(15.7)
234.8

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Profit for the period
Other Comprehensive Income
Items that are or may be reclassified to profit or loss
Movements in fair value reserve
Deferred tax in relation to movement in fair value reserve
Other Comprehensive Income for the period, net of income tax
Total Comprehensive income for the period

306

307

Financial Statements

Parent Company Financial Statements
For the year ended 31 December 2023

Parent Company Statement of Changes in Equity

Parent Company Statement of Financial Position

Share premium
account£m

Fair ValueReserve£m

Retainedearnings£m

Total equity£m

ASSETS
Investments in group undertakings
Intangible assets
Financial investments
Corporation tax asset
Deferred tax asset
Trade and other receivables
Cash and cash equivalents
Total assets
EQUITY
Share capital
Share premium accountFair value reserve
Retained earnings
Total equity
LIABILITIES
Subordinated and other financial liabilities
Trade and other payables
Total liabilities
Total equity and total liabilities

0.3
–

13.1
–

14.1
–

447.3
250.5

474.8
250.5

4
5
6
7
7
8
6

10
10

6
9

426.2
–
220.2
9.0
10.0
227.6
5.0
898.0

421.6
0.4
167.5
4.6
0.9
184.5
3.5
783.0

10

–

–

(20.9)–(20.9)

7

–

–

5.2

–

5.2

–

–

(15.7)

250.5

234.8

10
10

–
–
–
–
–
0.3
0.3
–

–
–
–
–
–
13.1
13.1
–

–
–
–
–
–
(1.6)
(1.6)
–

(658.3)
–
57.3
(0.1)
(601.1)
96.7
96.7
284.2

(658.3)
–
57.3
(0.1)
(601.1)
108.5
108.5
284.2

0.3
13.1
8.4
137.2
159.0

0.3
13.1
(1.6)
96.7
108.5

370.2
368.8
739.0
898.0

224.4
450.1
674.5
783.0

10

–

–

13.4

–

13.4

7

–

–

(3.4)

–

(3.4)

The accompanying notes form part of these financial statements.
These financial statements were approved by the Board of Directors on 6 March 2024 and were signed on its behalf by:

–

–

10.0

284.2

294.2

–
–

–
–

–
–

(307.1)–(307.1)–

Geraint Jones
Chief Financial Officer
Admiral Group plc

–
–
–
0.3

–
–
–
13.1

–
–
–
8.4

63.3
0.1
(243.7)
137.2

63.3
0.1
(243.7)159.0

Company Number: 03849958

Admiral Group plc Annual Report and Accounts 2023

Note

At 1 January 2022
Profit for the period
Other Comprehensive Income
Movements in fair value reserve
Deferred tax charge in relation to
movements in fair value reserve
Total comprehensive income/(expense)
for the period
Transactions with equity holders
Dividends
Issues of share capital
Share scheme credit
Deferred tax on share scheme credit
Total transactions with equity holders
As at 31 December 2022
At 1 January 2023
Profit for the period
Other Comprehensive Income
Movements in fair value reserve
Deferred tax charge in relation to
movements in fair value reserve
Total comprehensive income
for the period
Transactions with equity holders
Dividends
Issues of share capital
Share scheme credit
Deferred tax on share scheme credit
Total transactions with equity holders
As at 31 December 2023

1010Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Share capital
£m

As at
31 December 2023 31 December 2022
Note
£m
£m

308

309

Financial Statements

Notes to the Parent Company Financial Statements
For the year ended 31 December 2023

continued

1. Accounting policies
1.1 Basis of preparation

These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS
101). The financial statements are prepared on the historical cost basis except for the revaluation of financial assets classified as fair value
through the profit or loss or as fair value through Other Comprehensive Income. The Parent Company financial statements are presented
alongside the consolidated financial statements which can be found on page 437.
In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements ofInternational Financial Reporting Standards as adopted by the UK (“Adopted IFRSs”) but makes amendments where necessary in order tocomply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.
Admiral Group plc is considered to be the parent entity and the ultimate parent Company of the Group.

1.2 Changes to accounting policies

No changes to accounting policies have been made in the period which have a material impact.

1.3 Disclosure exemptions applied under FRS 101

The Company has taken advantage of the following disclosure exemptions under FRS 101:

1.7 Employee share schemes

The Company operates a number of share schemes for employees of the Group’s subsidiaries. For equity settled schemes, the fair valueof the employee services received in exchange for the grant of free shares under the schemes is recognised as an increase in equity in the
Company. A corresponding intercompany charge is made to the subsidiaries whose employees receive the free shares. For further detail,see note 9 in the consolidated financial statements.

1.8 Taxation

The charge for taxation is based on the profit for the year and takes into account taxation deferred because of timing differences
between the treatment of certain items for taxation and accounting purposes.
Deferred tax assets are recognised to the extent that they are regarded as recoverable. They are regarded as recoverable to the extent
that, on the basis of all available evidence, it can be regarded as more likely than not that there will be sufficient taxable profits fromwhich the future reversal of the underlying timing differences can be deducted.

1.9 Financial assets and financial liabilities

Under IFRS 9, classification and subsequent measurement of financial assets depend on:• The Company’s business model for managing the asset; and• FRS 101.8 (a): the requirements of paragraph 45(b) and 46 to 52 of IFRS 2 Share-based payment• The cashflow characteristics of the asset.

• FRS 101.8 (d): the requirement of IFRS 7 Financial Instruments: Disclosure to make disclosures about financial instruments

Based on these factors, the Company classifies its financial assets into one of the three categories below:• FRS 101.8 (f): the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in
respect of:• Amortised cost: assets held for collection of contractual cashflows where the cashflows represent solely payments of principal andinterest, that are not designated as FVTPL.

– paragraph 118(3) of IAS 38 Intangible Assets• FRS 101.8 (h): the requirements of IAS 7 Statements of Cashflows to produce a cashflow statement• FRS 101.8 (i): the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors toinclude a list of new IFRSs that have been issued but that have yet to be applied• FRS 101.8 (k): the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or
more members of a group, provided that any subsidiary which is a party to transaction is wholly owned by such a member• Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortised cost or FVOCI, or which are designated as
FVTPL at initial recognition.
In line with the above:• Gilts and other debt securities are measured at FVOCI. Unrealised changes in the fair value of these assets are recognised in Other
Comprehensive Income (OCI). The recognition of impairment gains or losses and interest revenue are recognised in the profit or loss.
• Investments measured at FVTPL are primarily money market funds. Interest income is recognised in the Income statement.

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in thesefinancial statements.

The expected credit loss model is used to calculate any impairment to be recognised for all assets measured at amortised cost, as well as
financial investments measured at FVOCI. Impairment is measured using the simplified approach.

1.4 Going concern

Cash and cash equivalents include cash in hand and deposits held at call with banks. All cash and cash equivalents are measured atamortised cost.

The financial statements have been prepared on a going concern basis. In considering the appropriateness of this assumption, theBoard have reviewed the Company’s projections for the next twelve months and beyond, including cashflow forecasts and regulatory
capital surpluses.
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for theforeseeable future. Thus, they continue to adopt the going concern basis in preparing the annual financial statements.

1.5 Critical accounting judgements and key source of estimation uncertainty

In applying the Company’s accounting policies as described below, management consider there to be a key source of estimation
uncertainty within the impairment testing of the Company’s investments in group undertakings. Management recognises the estimation
involved in determining whether the carrying value of the investment may be supported by the recoverable amount calculation based onthe ‘value in use’ of the asset (the net present value of future cashflows arising from the asset).
In calculating the net present value of future cashflows, Management has made assumptions over the timing and amount of underlying
profit projections of the relevant undertakings, long term growth rates in those projections and the discount rate applied to theseprojections that is appropriate to reflect the market’s view of the risk of the relevant investment. Sensitivity of these assumptions is also
considered in calculating the net present value and suitably incorporated in Management’s valuations.

The Company’s financial liabilities comprise of subordinated notes and revolving credit facilities which are held at amortised cost using
the effective interest method.

1.10 Intangible Assets

Purchased software licences are classified as an intangible asset and stated in the balance sheet at a cost less accumulated amortisation.
Software is amortised from the point at which the asset is operational and is amortised over the licence period.

1.11 Trade and other receivables

Trade and other receivables are measured at amortised cost, less any impairment.

1.12 Trade and other payables

Trade and other payables are measured at amortised cost.

2. Administrative expenses

Included within administrative expenses are re-charges of £7.1 million (2022: £6.1 million) relating to employees within the Group who
perform services on behalf of the Company. No employees are directly employed by the Company.

No key accounting judgements have been made in the process of applying the Company’s accounting policies.

1.6 Shares in Group undertakings

Shares in Group undertakings are valued at cost less any provision for impairment in value.
The requirements of IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with respect to theCompany’s investments in subsidiaries. When necessary, the entire carrying amount of the investment is tested for impairment inaccordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair valueless costs of disposal) with its carrying amount. Any impairment loss recognised forms part of the carrying amount of the investment.
Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable amount of the investment
subsequently increases. See note 4 to these financial statements for further detail.
Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements• FRS 101.8 (g): the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1 Presentationof Financial Statements to produce a cashflow statement, a third balance sheet and to make an explicit and unreserved statement ofcompliance with IFRSs• Fair value through Other Comprehensive Income (FVOCI): Financial assets that are held for collection of contractual cashflows andselling the assets, where the assets’ cashflows represent solely payments of principal and interest, and that are not designatedat FVTPL.

310

311

Financial Statements

Notes to the Parent Company Financial Statements
For the year ended 31 December 2023

continued

3. Investment and interest income

5. Intangible Assets
Software
£m

Total
£m

Cost
At 1 January 2023
Additions
Disposal
At 31 December 2023

0.4
–
–
0.4

0.4
–
–
0.4

Amortisation
At 1 January 2023
Charge for the year
Disposal
At 31 December 2023

–
0.4
–
0.4

–
0.4
–
0.4

Net Book ValueAt 31 December 2022
At 31 December 2023

0.4
–

0.4
–

31 December 2023 31 December 2022£m
£m

Dividend income from subsidiary undertakings
Interest income - other
Interest (expense)/income at effective interest rate*1
Total investment and interest income

357.5
7.1
(1.8)
362.8

310.0
1.3
8.8
320.1

*1. Interest income at effective interest rate in 2023 includes £3.6 million loss on disposal of gilts (2022: £4.7 million gain).

4. Investments in Group undertakings
£m

315.1
143.5
–
(37.0)
421.6
41.7–(37.1)
426.2

A full list of the Company’s subsidiaries is disclosed in note 12 of the consolidated financial statements.
The additions to investments in the period of £41.7 million relate to the following:• Further investment in Admiral Europe Compañía de Seguros (‘AECS’) (£30.7 million);• Further investment in Able Insurance Services Limited (‘Able’) (£5.0 million);• Further investment in Admiral Financial Services Italia S.P.A (‘AFSI’) (£6.0 million)
An annual impairment review is performed over the carrying value of the investments in subsidiary undertakings, which involves
comparing the carrying amount to the estimated recoverable amount. The recoverable amount is the greater of the fair value of theasset less costs to sell, and the value in use of the subsidiary, calculated using cashflow projections based on financial budgets approvedby the Group Board.

Elephant

In 2023 a non-cash impairment loss of £19.5 million (2022: £35.2 million) has been recognised by the Parent Company in respect of its
investment in the Group’s US Insurance business Elephant. The impairment charge is to reflect the loss incurred during 2023 to bring thevalue of the investment to its recoverable amount, being its fair value less costs to sell (equivalent to net asset value), of £36.9 million(2022: £56.3 million). The impairment charge is presented within the “Impairment losses” line of the Parent Company Income Statement.
The carrying value is based on fair value less costs of disposal, for which the net assets has been used as a reasonable approximation, usingtier 3 of the fair value hierarchy. Due to limitations on evidential market information and restrictions in readily available information, net
assets have been used to estimate fair value less costs to sell.
As the valuation is based on net assets, any movement in future profits will impact the investment held.

Able

In 2023 a non-cash impairment loss of £7.9 million (2022: £nil) has been recognised by the Parent Company in respect of its investment in
the Group’s UK based insurance business Able. The impairment charge is to bring the value of the investment to its recoverable amount,being its fair value less costs to sell (equivalent of net asset value), of £6.1 million (2022: £9.0 million).

6. Financial assets and liabilities

The Company’s financial instruments can be analysed as follows:
31 December 2023 31 December 2022£m£m

Investments classified as FVOCIGilts and government debt securities
Corporate debt securities

134.6
78.2
212.8

143.6
–
143.6

7.4
7.4

23.9
23.9

Total financial investments

220.2

167.5

Financial assets held at amortised cost
Trade and other receivables (note 8)
Cash and cash equivalents
Total financial assets

227.6
5.0
452.8

184.5
3.5
355.5

Financial liabilities
Subordinated notes
Other borrowings
Trade and other payables (note 9)
Total financial liabilities

315.2
55.0
368.8
739.0

204.4
20.0
450.1
674.5

Investments classified as FVTPL
Money market and other similar funds (level 1 of the IFRS 13 hierarchy)

The amortised cost carrying amount of deposits and receivables is a reasonable approximation of fair value.

AFSI

In 2023 a non-cash impairment loss of £9.8 million (2022: £nil) has been recognised by the Parent Company in respect of its
investment in the Group’s Italian loans business AFSI. The impairment charge is to reflect the loss incurred during 2023 to bring thevalue of the investment to its recoverable amount, being its fair value less costs to sell (equivalent of net asset value), of £4.7 million(2022: £8.5 million).
The Board continues to explore new adventures and is committed to supporting Able and AFSI in its diversification strategy.
Impairment charges is presented within the “Impairment losses” line of the Parent Company Income Statement.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Investments in subsidiary undertakings:
At 1 January 2022
Additions
Disposals
Impairment
At 31 December 2022
Additions
Disposals
Impairment
At 31 December 2023

312

313

Financial Statements

Notes to the Parent Company Financial Statements
For the year ended 31 December 2023

continued

6. Financial assets and liabilities continued

The table below compares the carrying value of subordinated notes (as per the Statement of Financial Position) with the fair value of thesubordinated notes using a level one valuation:
31 December 2023
Fair
value
£m

Carrying
amount
£m

Fair
value
£m

315.2

329.8

204.4

196.4

The subordinated notes consist of two separate issuances. The first subordinated notes were issued on 25 July 2014 at a fixed rate of 5.5%
and a total value of £200 million. In July 2023 these notes were tendered with a take-up of 72.45%, with the remaining amount retaining
the original redemption date of 25 July 2024.
The second subordinated notes were issued on 6 July 2023 at a fixed rate of 8.5%, with a total value of £250 million and a redemption
date of 6 January 2034.
Total interest payable of £20.4 million (2022: £12.0 million) was recognised, of which £17.5 million (2022: £11.1 million) was in relation to
the subordinated loan notes.

7. Taxation
7a. Taxation credit
31 December 2023 31 December 2022
£m
£m

9.0
(9.3)
(0.3)

4.6
1.0
5.6

0.2
12.2
12.1

0.1
–
5.7

The UK corporation tax rate for 2023 is 23.5% (2022: 19.0%). An increase to the main rate of corporation tax in the UK from 19% to 25%
was announced in the 2021 Budget and has come into effect from 1 April 2023.
Factors affecting the total tax credit are:
31 December 2023 31 December 2022£m£m

Profit before tax
Corporation tax thereon at effective UK corporation tax rate of 23.5% (2022: 19.0%)
Expenses and provisions not deductible for tax purposes
Adjustments relating to prior periods
Non-taxable income
Total tax credit for the period as above
At the year end, the corporation tax asset was £9.0 million (2022: £4.6 million).

272.1
63.9
10.9
(2.9)
(84.0)(12.1)

244.8
46.5
6.2
–
(58.4)(5.7)

Balance brought forward at 1 January 2022
Tax treatment of share scheme charges
through income or expense
Tax treatment of share scheme charges
through reserves
Movement in fair value reserve
Balance carried forward at
31 December 2022
Tax treatment of share scheme charges
through income or expense
Tax treatment of share scheme charges
through reserves
Carried forward losses
Movement in fair value reserve
Balance carried forward at
31 December 2023

Tax
treatmentof shareschemes£mCapitalallowances£m

Carriedforward losses£m

Fair value
reserve£m

Otherdifferences
£m

Total
£m

(0.3)

–

–

4.6

–

4.3

(0.1)

–

–

–

–

(0.1)

0.1
–

–
–

–
–

–
(5.2)

–
–

0.1
(5.2)

(0.3)

–

–

(0.6)

–

(0.9)

(0.2)

–

–

–

–

(0.2)

(0.1)
–
–

–
–
–

–
(12.2)
–

–
–
3.4

–
–
–

(0.1)
(12.2)
3.4

(0.6)

–

(12.2)

2.8–(10.0)The recognition of deferred tax assets is supported by the expected future taxable profits of the UK group.
Legislation to introduce a global minimum effective tax rate of 15% known as the Pillar Two rules was substantively enacted in the
UK on 20 June 2023 under Finance (No.2) Act 2023. The rules introduce a domestic top-up tax and multinational top-up tax effective
for accounting periods starting on or after 31 December 2023. There is therefore no related current tax impact for the year ended
31 December 2023. The Parent Company has applied the temporary mandatory exception to recognising and disclosing information
about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
Further information can be found in note 10 of the consolidated financial statements.

8. Trade and other receivables
31 December 2023 31 December 2022£m£m

Trade and other receivables
Amounts owed by subsidiary undertakings
Total trade and other receivables

2.8
224.8
227.6

1.2
183.3
184.5

Held within amounts owed by subsidiary undertakings is £223.7 million (2022: £182.2 million) which relate to loans with formal
agreements in place between the parent and the subsidiary. The estimated credit losses of these loans has been considered and any
expected credit loss is considered to be immaterial due to the assessment of credit risk being low due to the positive net value of assetsof the subsidiaries and future trading projections.
Of the above amount, £28.5 million is due in greater than one year (2022: £155.1 million).

9. Trade and other payables
31 December 2023 31 December 2022£m£m

Trade and other payables
Amounts owed to subsidiary undertakings
Total trade and other payables

10.3
358.5
368.8

7.2
442.9
450.1

Held within amounts owed to subsidiary undertakings is £201.4 million (2022: £198.2 million) which relate to loans with formal
agreements in place between the parent and the subsidiary.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Current tax
Corporation tax credit on profits for the year
Change in provision relating to prior periods
Current tax credit
Deferred tax
Current period deferred taxation movement
Change in provision relating to prior periods
Total tax credit per income statement

Analysis of deferred tax (asset)/liability

31 December 2022

Carrying
amount£m

Financial liabilities
Subordinated notes

7b. Deferred income tax (asset)/liability

314

315

Financial Statements

Notes to the Parent Company Financial Statements
For the year ended 31 December 2023

continued

10. Share capital and reserves

Capital within the Company is comprised of share capital and the share premium account, the fair value reserve (which reflects
movements in the fair value of assets classified as FVOCI) and retained earnings. Further information can be found within note 12 of theconsolidated financial statements.

10a. Share capital
31 December 2023 31 December 2022£m£m

Authorised
500,000,000 ordinary shares of 0.1 pence
Issued, called up and fully paid
306,304,680 (2022: 302,837,726) ordinary shares of 0.1 pence

0.5

0.5

0.3
0.3

0.3
0.3

10b. Dividends

12. Guarantees and contingent liabilities

During 2018, a Special Purpose Entity (SPE) was set up in order to secure additional funding for the Admiral Money business, with asecond such SPE set up in October 2021. The Company acts as guarantor for certain operational performance conditions of its subsidiary,
AFSL, as seller and servicer for the SPEs, and indemnifies AFSL in respect of any amount that would have been payable by AFSL for noncompliance with such performance conditions.
One of the Groups’ previously owned subsidiaries was subject to a Spanish Tax Audit which concluded with the Tax Authority denying theapplication of the VAT exemption relating to insurance intermediary services. The Company has appealed this decision via the Spanish
Courts and is confident in defending its position which is, in its view, in line with the EU Directive and is also consistent with the way
similar supplies are treated throughout Europe. Whilst the Company is no longer part of the Admiral Group, the contingent liability which
the Company is exposed to has been indemnified by the Admiral Group up to a cap of £22 million.
A number of the Group’s contractual arrangements with reinsurers include features that, in certain scenarios, allow for reinsurers torecover losses incurred to date. The overall impact of such scenarios would not lead to an overall net economic outflow from AdmiralGroup plc.

13. Post balance sheet events

Dividends were proposed, approved and paid as follows:
31 December 2023 31 December 2022
£m
£m

–
–
154.9
152.2
307.1

348.1
310.2
–
–
658.3

14. Continued application of Financial Reporting Standard (FRS) 101 – Reduced Disclosure Framework

Following the first time application of FRS 101 Reduced Disclosure Framework in 2015, the Board considers that it is in the best interestsof the Group for Admiral Group plc to continue to apply the FRS 101 Reduced Disclosure Framework in future periods. A shareholder orshareholders holding in aggregate 5% or more of the total allotted shares in Admiral Group plc may serve objections to the use of thedisclosure exemptions on Admiral Group plc, in writing, to its registered office (Tŷ Admiral, David Street, Cardiff, CF10 2EH) no later than
30 June 2024.

The dividends proposed in March (approved in April) represent the final dividends paid in respect of the 2021 and 2022 financial years.
The dividends declared in August are interim distributions in respect of 2022 and 2023.
A final dividend of 52.0 pence per share (£156.2 million) has been proposed in respect of the 2023 financial year. Refer to the Chair’s
Statement and Strategic Report for further detail.
The profit and loss account of the Parent Company does not include any unrealised profits, therefore the amount available for
distribution by reference to these accounts is £137.2 million. Interim accounts will be laid before Companies House prior to paymentof the 2023 Final Dividend in order to demonstrate that profits are available for distribution.
The Group also has substantial retained profits in its subsidiary companies which are expected to flow up to the Parent Company in due
course, such that surplus cash generated can continue to be returned to shareholders.

11. Related party transactions

The Company has taken advantage of the exemptions permitted by Financial Reporting Standard 101.8 (k) and not disclosed details oftransactions with other wholly owned group undertakings. Transactions with group undertakings that are not wholly owned by AdmiralGroup plc are disclosed below.
Balance atTransaction 31 December 2023
Value
due/(to) related
2023
party
£m
£m

compare.com Insurance Agency LLC (Subsidiary undertaking)

Admiral Group plc Annual Report and Accounts 2023––

Balance atTransaction 31 December 2022
Value
due/(to) related
2022
party
£m
£m

0.3

2.6

Admiral Group plc Annual Report and Accounts 2023

Financial Statements

Proposed March 2022 (118.0 pence per share, approved April 2022 and paid June 2022)
Declared August 2022 (105.0 pence per share, paid October 2022)
Proposed March 2023 (52.0 pence per share, approved April 2023 and paid June 2023)
Declared August 2023 (51.0 pence per share, paid October 2023)
Total dividends

No events have occurred since the reporting date that materially impact these financial statements.

316

317

Additional Information

Glossary
Alternative Performance Measures

Throughout this report, the Group uses a number of Alternative Performance Measures (APMs); measures that are not required orcommonly reported under International Financial Reporting Standards, the Generally Accepted Accounting Principles (GAAP) underwhich the Group prepares its financial statements.

Expense Ratio

Expense ratios are reported as follows:
Reported expense ratios are expressed as a percentage, of expenses incurred, on a gross basis excluding sharescheme costs, divided by insurance revenue net of XoL reinsurance premiums ceded.
The reported expenses ratios use the total expenses ratios, we use the total expenses (excluding share scheme
costs), and earned premium and related income (instalment income, administration fees and ancillary income
where it is highly correlated to the core product). It is understood that this is consistent with the approach taken
by peers, and it is considered to be reflect the true profitability of products sold.

These APMs are used by the Group, alongside GAAP measures, for both internal performance analysis and to help shareholders andother users of the Annual Report and financial statements to better understand the Group’s performance in the period in comparison toprevious periods and the Group’s competitors.
The table below defines and explains the primary APMs used in this report. Financial APMs are usually derived from financial statement
items and are calculated using consistent accounting policies to those applied in the financial statements, unless otherwise stated.
Non-financial KPIs incorporate information that cannot be derived from the financial statements but provide further insight into theperformance and financial position of the Group.

Core product expense ratios use the total expenses (excluding share scheme costs) and earned premiums
for the core product only. This measure is more consistent with that used previously, and are reflective of theperformance of the core product in a line of business.
Written expense ratios are calculated using total expenses (excluding share scheme costs) and written
premiums, net of cancellation provision, for the core product only.

TurnoverThe calculations of the reported expense ratios are presented within Appendix 1a and Appendix 1b to thefinancial statements.
Combined ratios are the sum of the loss and expense ratios as defined above. Explanation of these figures is noted
above and reconciliation of the calculations are provided in Appendix 1a and Appendix 1b.
This is the reported insurance segment underwriting result, divided by insurance revenue net of excess of loss
premiums ceded.
The total result (ceded premiums minus ceded recoveries) from contractual quota share arrangements,
excluding the quota share reinsurer’s share of share scheme expenses, finance expenses and onerous
loss component.
The profit or loss before tax reported for individual business segments, which exclude net share scheme costs andother central expenses.
Return on equity is calculated as profit after tax for the period attributable to equity holders of the Group divided
by the average total equity attributable to equity holders of the Group in the year. This average is determined by
dividing the opening and closing positions for the year by two. It excludes the impact of discontinued operations.
Group customer numbers reflect the total number of cars, vans, households and pets on cover at the end of theyear, across the Group, and the total number of travel insurance and Admiral Money customers.

Turnover is defined as total premiums written (as below), Other insurance revenue, Other revenue andinterest income from Admiral Money. It is reconciled to financial statement line items in note 13 to thefinancial statements.
This measure has been presented by the Group in every Annual Report since it became a listed Group in 2004.
It reflects the total value of the revenue generated by the Group and analysis of this measure over time provides aclear indication of the size and growth of the Group.

Total Premiums
Written

The measure was developed as a result of the Group’s business model. The UK Car insurance business has
historically shared a significant proportion of the risks with Munich Re, a third party reinsurance Group, througha co-insurance arrangement, with the arrangement subsequently being replicated in some of the Group’s
international insurance operations. Premiums and claims accruing to the external co-insurer are not reflectedin the Group’s Income Statement and therefore presentation of this metric enables users of the Annual Report
to see the scale of the Group’s insurance operations in a way not possible from taking the Income Statement
in isolation.
Total premiums written are the total forecast premiums, net of forecast cancellations written in the underwriting
year within the Group, including co-insurance. It is reconciled to financial statement line items in note 13 to thefinancial statements.

Combined Ratio
Insurance service
marginQuota share result

Segment result
Return on Equity

Group Customers

This measure has been presented by the Group in every Annual Report since it became a listed Group in 2004.
It reflects the size of the Group’s customer base and analysis of this measure over time provides a clear indicationof the growth. It is also a useful indicator of the growing significance to the Group of the different lines of businessand geographic regions.

This measure has been presented by the Group in every Annual Report since it became a listed Group in 2004.
It reflects the total premiums written by the Group’s insurance intermediaries and analysis of this measure overtime provides a clear indication of the growth in premiums, irrespective of how co-insurance agreements havechanged over time.

Earnings per share
Underwriting result(profit or loss)

Loss Ratio

The reasons for presenting this measure are consistent with that for the Turnover APM noted above.
Earnings per share represents the profit after tax attributable to equity shareholders, divided by the weighted
average number of basic shares.
For each insurance business an underwriting result is presented. This shows the insurance segment result before
tax excluding investment income, finance expenses, co-insurer profit commission and other net income. It
excludes both gross share scheme costs and any assumed quota share reinsurance recoveries on those sharescheme costs.
Loss ratios are reported as follows:

Effective Tax Rate

The measure has been restated from 2022 onwards to exclude Veygo policies, given the significant fluctuations
that can arise at a point in time as a result of the short-term nature of the product.
Effective tax rate is defined as the approximate tax rate derived from dividing the Group’s profit before tax by thetax charge going through the Income Statement. It is a measure historically presented by the Group and enables
users to see how the tax cost incurred by the Group compares over time and to current corporation tax rates.

Reported loss ratios are expressed as a percentage, of claims incurred, on a gross basis net of XoL reinsurance,
divided by insurance revenue net of XoL reinsurance premiums ceded.
The reported loss ratios use the total claims, and earned premium loss ratios, we use the total claims, and earned
premium and related income (instalment income, administration fees and ancillary income where it is highly
correlated to the core product). It is understood that this is consistent with the approach taken by peers, andreflects the true profitability of products sold.
Core product loss ratios use the total claims and earned premiums for the core product only. This measure ismore consistent with that used previously, and are reflective of the performance of the core product in a lineof business.
The calculations and compositions of the loss ratios are presented within Appendix 1a and Appendix 1b to thesefinancial statements.

Admiral Group plc Annual Report and Accounts 2023

Admiral Group plc Annual Report and Accounts 2023

Additional Information

APMs may not necessarily be defined in a consistent manner to similar APMs used by the Group’s competitors. They should be considered
as a supplement rather than a substitute for GAAP measures.

318

Additional Information

Glossary continued
Additional Terminology

There are many other terms used in this report that are specific to the Group or the markets in which it operates.
These are defined as follows:
Accident year
Actuarial best
estimate
ASHE
Claims reserves
Co-insurance

Commutation

Insurance
market cycle
Claims net of XoL
reinsurance
Excess of Loss (‘XoL’)reinsurance
Insurance premium
revenue net of XoL
Insurance revenue
Net promotor score

Ogden discount rate
Other insurance
revenue
Periodic Payment
Order (PPO)
Premium

Profit commission

The year in which an accident occurs. Claims incurred may be presented on an accident year basis or anunderwriting year basis, the latter sees the claims attach to the year in which the insurance policy incepted.
The probability-weighted average of all future claims and cost scenarios calculated using historical data,
actuarial methods and judgement.
‘Annual Survey of Hours and Earnings’ – a statistical index that is typically used for calculating the inflation ofannual payment amounts under Periodic Payment Order (PPO) claims settlements.
A monetary amount set aside for the future payment of incurred claims that have not yet been settled, thus
representing a balance sheet liability.
An arrangement in which two or more insurance companies agree to underwrite insurance business on a
specified portfolio in specified proportions. Each co-insurer is directly liable to the policyholder for their
proportional share.
An agreement between a ceding insurer and the reinsurer that provides for the valuation, payment, andcomplete discharge of all obligations between the parties under a particular reinsurance contract.
The Group typically commutes UK motor insurance quota share contracts after 24-36 months from the start ofan underwriting year where it makes economic sense to do so. Although an individual underwriting year may
be profitable, the margin held in the financial statement claims reserves may mean that an accounting loss
on commutation must be recognised at the point of commutation of the reinsurance contracts. This loss oncommutation unwinds in future periods as the financial statement loss ratios develop to ultimate.
The tendency for the insurance market to swing between highs and lows of profitability over time, with thepotential to influence premium rates (also known as the “underwriting cycle”).
The cost of claims incurred in the period, less any claims costs recovered via salvage and subrogation arrangements
or under XoL reinsurance contracts. It includes both claims payments and movements in claims reserves.
Contractual arrangements whereby the Group transfers part or all of the insurance risk accepted to anotherinsurer on an excess of loss (‘XoL’) basis (full reinsurance for claims over an agreed value).
The element of premium, less XoL reinsurance premium, earned in the period.
Gross earned premium (excluding any co-insurer share) plus Other insurance revenue.
NPS is currently measured based on a subset of customer responding to a single question: On a scale of 0–10
(10 being the best score), how likely would you recommend our Company to a friend, family or colleague
through phone, online or email. Answers are then placed in 3 groups; Detractors: scores ranging from 0 to 6;
Passives/neutrals: scores ranging from 7 to 8; Promoters: scores ranging from 9 to 10 and the final NPS score is :% of promoters - % of detractors.
The discount rate used in calculation of personal injury claims settlements in the UK.
Revenue that is considered non-separable from the core insurance product sold and therefore under IFRS 17 isreported as insurance revenue. For the Group, this is typically the instalment income, administration fees andany other non-separable income related to the Group’s retained share of the underwritten products.
A compensation award as part of a claims settlement that involves making a series of annual payments to aclaimant over their remaining life to cover the costs of the care they will require.
A series of payments are made by the policyholder, typically monthly or annually, for part of or all of the durationof the contract. Written premium refers to the total amount the policyholder has contracted for, whereas
earned premium refers to the recognition of this premium over the life of the contract.
A clause found in some reinsurance and co-insurance agreements that provides for profit sharing. Co-insurer
profit commission is presented separately on the Income Statement whilst reinsurer profit commissions arepresented within the reinsurance result, as a part of any recovery for incurred claims.

Regulatory Solvency
Capital Requirement(‘SCR’)The Group’s Regulatory Solvency Capital Requirement (SCR) is an amount of capital that it should hold in addition
to its liabilities in order to provide a cushion against unexpected events. In line with the rulebook of the Group’s
regulator, the PRA, the Group’s SCR is calculated using the Solvency II Standard Formula, and includes a fixed
capital add-on to reflect limitations in the Standard Formula with respect to Admiral’s risk profile (predominately
in respect of co-and reinsurance profit commission arrangements and risks relating to Periodic Payment Orders(PPOs). The Group’s current fixed capital add-on of £24 million was approved by the PRA during 2023.
The Group is required to maintain eligible Own Funds ( Solvency II capital) equal to at least 100% of the Group SCR.
Both eligible Own Funds and the Group SCR are reported to the PRA on a quarterly basis and reported publicly on
an annual basis in the Group’s Solvency and Financial Condition Report.

Admiral separately calculates a ‘dynamic’ capital add-on and has used this to report a solvency capital requirement
and solvency ratio at the date of this report. A reconciliation between the regulatory solvency ratio and that
calculated on a dynamic basis is included in note 3 to the Group financial statements.
Reinsurance
Contractual arrangements whereby the Group transfers part or all of the insurance risk accepted to anotherinsurer. This can be on a quota share basis (a percentage share of premiums, claims and expenses) or an excess ofloss (‘XoL’) basis (full reinsurance for claims over an agreed value).
Scaled Agile
Scaled Agile is a framework that uses a set of organisational and workflow patterns for implementing agile
practices at an enterprise scale. Scaled agile at Admiral represents the ability to drive agile at the team level
whilst applying the same sustainable principles of the Group.
Securitisation
A process by which a group of assets, usually loans, is aggregated into a pool, which is used to back the issuanceof new securities. A Company transfer assets to a special purpose entity (SPE) which then issues securities
backed by the assets.
Solvency ratio
A ratio of an entity’s Solvency II capital (referred to as Own Funds) to Solvency Capital Requirement.
Unless otherwise stated, Group solvency ratios include a reduction to Own Funds for a foreseeable dividend (i.e.
dividends relating to the relevant financial period that will be paid after the balance sheet date).
An entity that is created to accomplish a narrow and well-defined objective. There are specific restrictions orSpecial Purpose
Entity (SPE)limited around ongoing activities. The Group uses an SPE set up under a securitisation programme.
Ultimate loss ratio
A projected actuarial best estimate loss ratio for a particular accident year or underwriting year.
Underwriting year
The year in which an insurance policy was incepted.
Underwriting
Also referred to as the written basis. Claims incurred are allocated to the calendar year in which the policy was
year basis
underwritten. Underwriting year basis results are calculated on the whole account (including co-insurance
and reinsurance shares) and include all premiums, claims, expenses incurred and other revenue (for example
instalment income and commission income relating to the sale of products that are ancillary to the main
insurance policy) relating to policies incepting in the relevant underwriting year.
Written/Earned basis An insurance policy can be written in one calendar year but earned over a subsequent calendar year.

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Admiral Group plc Annual Report and Accounts 2023

Thank you

TO ALL OUR
COLLEAGUESOVER THE LAST
30 YEARS

Registered OfficeTŷ AdmiralDavid Street
Cardiff
CF10 2EH
www.admiralgroup.co.uk