“ We have a simple philosophy at Admiral: if people like what they do, they’ll do it better. So we go out of our way to make this a good place to work. The result: happier staff, record profits.” Henry Engelhardt, CEO
Performance 11 Business Review 11 Group Financial Review 12 UK Car Insurance Review 16 International Car Insurance 18 Price Comparison 20 Other Group Items 22 Principal Risks and Uncertainties 24 Corporate Responsibility
Governance 29 Corporate Governance 30 The Admiral Board 32 Corporate Governance continued 44 Directors’ Report 48 Remuneration Report 57 Independent Auditor’s Report to the Members of Admiral Group plc
Financial statements 58 Consolidated Income Statement 59 Consolidated Statement of Comprehensive Income 60 Consolidated Statement of
Changes in Equity 63 Notes to the Financial Statements 90 Parent Company Financial
1993 2 January Admiral launches in Cardiff with just one brand, zero insured vehicles and 57 members of staff. The first policy is sold over the telephone at 9.10am.
2002 Confused.com launches, as the Group’s sixth brand and the UK’s first car insurance price comparison website.
Elephant Auto Insurance launches in Richmond, Virginia selling car insurance in the United States of America. Today it operates in Virginia, Maryland, Illinois and Texas.
On 28 December CEO Henry Engelhardt sells his first car insurance policy over the phone, during a management training course.
Admiral employees When an employee joins Admiral they receive a jigsaw piece, from Henry Englehardt the CEO, to reinforce that every person is part of the Admiral picture.
• Confused.com generated profit of £18.2 million in a fiercely competitive UK market.
• Gladiator decreased profit to £2.5 million due to an increasingly competitive commercial vehicle market.
shareholders. We were, therefore, delighted to be named best large UK workplace by the Great Place to Work® Institute in 2012.
The customer is at the centre of everything we do. We design our products and processes in order to meet their needs better than our competitors, and we are now pleased to be able to offer our UK customers household insurance alongside motor insurance. We seek feedback after every interaction in order to learn how we can improve our service. Last year we received over 140,000 individual items of feedback – in the critical area of claims processing over 90% of those claiming under their policy said that they would take motor insurance from us again. All departments have quality scores against their relevant key performance indicators, and compete to win Quality Awards. For customer-facing departments these quality measures underpin the regulatory assessment of our compliance with the principles of Treating Customers Fairly. We fully support initiatives that can reduce the overall cost of providing motor insurance, in turn making possible a reduction in the premiums insurers have to charge their customers. Minimising the potential for fraudulent claims and reducing incidental claims costs both have their part to play.
Admiral Overseas We have continued to grow our overseas businesses at the measured pace dictated by a strategy of organic growth and within the constraints of the challenging economic environment, particularly as affects southern Europe. We are still very much at the stage of learning how best to compete in each of these markets and shall focus in the near term on building the businesses that we have established over the past six years. When each year I visit our international operations I always know that I am in Admiral, testament to the effectiveness with which our can-do culture, management ethos, and approach to our customers and employees have been exported.
Thank You A business is only as good as its people and every individual has their particular contribution to the success of the whole. It is, therefore, everyone in Admiral across all the various markets and functions that now make up our Group that I must thank for what has been achieved in 2012. Whilst there are many elements to why Admiral is different, for me the most significant is that the management team has been successful in designing a business where the overwhelming majority of those I meet enjoy coming to work and through enjoying what they do, and the environment within which they work, are more successful in what they do. It is, therefore, no surprise that the average length of service of our 20 most senior UK managers is 13 years in a company that is itself just 20 years old. I am confident that this depth of focused knowledge and commitment within a supportive environment will lead to a continued strong performance within our markets.
We’ve done the heavy lifting: the first 20 years. We’ve put the hole in the ground and we’ve got the cranes in place. All that’s left to do is to build the metaphorical skyscraper.
In 2012 the return to form of the UK business was heartwarming to all of us. We enjoyed substantial reductions in the actuarial view of best estimate for the back years, which has in turn allowed us to release some reserves and increase the reserve stock for the future. The upshot of all this is a 15% increase in profits at Group level. Nice.
In addition, we did not chase growth. A common misconception seems to surround the question of policyholder growth and profit growth. If one tries to make a simple link between these two it would
Chief Executive’s statement completely miss the third part of the triangle: margin. Prices in the market fell more than 10% in 2012. We chased it some of the way down but not all the way down. As a result we kept some integrity with regard to margin. We believe that to have chased the market further, such that we could present greater year-end policyholder growth, would have meant sacrificing profit in both the short- and long-term.
The UK car insurance market has, historically, been violently cyclical: some profitable years followed by big losses. There is no reason to believe that the market will stop being cyclical, although the extent of the future violence is as yet unknown. Therefore there will be far better opportunities to grow at the next turn in the cycle, when rates begin going up faster than claims inflation.
Admiral is in the enviable position of being profitable throughout the cycle. This allows us to choose when we grow and how much we grow and what margins we maintain.
It was also a good sign that Confused.com, for the first time in four years, made more profit than the year before. However, the trading environment for Confused will be even more challenging in 2013. The rate of aggregator growth in the market is slowing. This isn’t a surprise for two reasons: first, so many people are already using price comparison that there aren’t that many new people left! Secondly, as rates tumble in the market consumers get renewal notices with premiums lower than last year. This only serves to dampen their enthusiasm for shopping. Confused is doing a lot of interesting things however to try and insulate itself from the vagaries of the car insurance market. It has, for example, a very sophisticated offering of credit cards and it has developed a very nifty app to help drivers find parking wherever they’re at in the UK.
2012 saw Admiral take a big but small step. After 19 years, 11 months and 16 days of having car insurance as the only stand-alone, underwritten product, we launched household insurance in the UK on 18 December, 2012. It’s a big step because we have, for the first time, diversified the product range which we underwrite. It’s a small step because the business is intended to be very small in the first year or two. Test and learn, test and learn…
The non-UK price comparison businesses each had a good year. The results for Rastreator and LeLynx, in Spain and France respectively, were better than expected. These two businesses are poised for great things, but achieving greatness is never easy.
2. Growing 100% organic, long-term approach to growth that adjusts according to market conditions.
4. Cash generative Strong cash flow and high dividend payout ratio.
6. High return on capital Enabled by a capital light strategy.
Our strategic priorities 1. Grow profitably our share of the UK private motor insurance market.
2. Exploit the knowledge, skills and resources attaching to our established UK businesses to promote our expansion overseas in both private motor and price comparison.
3. Learn by taking relatively small and inexpensive steps to test different approaches and identify the best way forward.
5. Give all our staff a stake in what they create by making them shareholders.
6. Recognise the responsibility we have to the communities of which we are a part.
And that in itself will be challenging because the bar was raised again in 2012 with a new record for profits (which we’ve done every year since we went public in 2004 and actually a few years before) and a return on capital of 60%.
This experience was a real eye-opener. We all learned a great deal about our business doing this but the biggest learning point was first-hand knowledge of how great the people who work for us are. It was a pleasure to be trained by them, helped by them, play games with them and learn from them. We all came away with a huge respect for our staff’s ability to tackle the challenges created by a complicated product, systems, regulation, etc. and still give great customer service every day. We also came away reinforced in our belief that if you treat customers well they appreciate it and will treat you well too.
Voted 4th Best Workplace in Europe 2012 was the year of the kangaroo: it bounced around a little bit but it turns out to be pretty big, strong and energetic with the babies protected in the mother’s pouch.
But that’s history. What does the future hold? The headlines (unusually in the popular press, as well as the trade press) are dominated by the current slew of actual and potential legislative and regulatory change – the Competition Commission, hot on the heels of the OFT enquiry, the Jackson reforms, possible further changes to the administration of, and costs associated with bodily injury claims, the banning of gender-based rating, the newly-formed Financial Conduct Authority’s focus on value for money add-ons. But it’s not the ultimate outcome of this frenetic activity that will determine the health of Admiral’s core UK operation in twenty years’ time. Current and proposed changes, as long as they’re implemented and enforced even-handedly and universally across the market, don’t affect relative competitive strength, over anything but the very short-term. Nor do they affect overall industry profitability. It is, as it has always been, the ability to execute better than others in dozens of individually insignificant, but collectively important, ways, and to respond to fundamental underlying changes more quickly and more adeptly than competitors that will be the key to future success.
Late last year, we launched our first major product extension ever, with the launch of household insurance. One question we will be able to answer in twenty years, or possibly sooner, is whether we’ve developed an industrybeating competence in a second £6 billion market without losing our edge in the ever more massive car insurance market.
• Group expense ratio 17.7%, up from 16.8% in 2011 (an improved UK ratio offset by a higher international ratio).
• Sustained, organic growth: 17% compound annual growth over five years.
• 2% increase in vehicle base in 2012 (growth slowed due to market conditions).
• Combined ratio improved in 2012 to 90% from 91%. • Expense ratio at 14% – around half the market average.
• Other revenue per vehicle of £79 in 2012 (2011: £84).
UK Car Insurance Strategy The strategy for Admiral’s UK business is unchanged and remains relevant and simple: • The Group aims to grow profitably its share of the UK
UK Car Insurance profit before tax 275.8 313.6 372.8 *1 GAAP = Generally Accepted Accounting Practice *2 Turnover (a non-GAAP measure) comprises total premiums written and other revenue *3 Total premiums written (non-GAAP) includes premium underwritten by co-insurers
Arrangements for 2012 to 2014 In early 2012 the Group was pleased to announce extensions to its arrangements such that capacity is fully placed until the end of 2014. The underwriting splits can be summarised as follows: Great Lakes (Munich Re) 40.00% 40.00% 40.00%
Total profit from car insurance underwriting and profit commission increased significantly, by 54% to £168.0 million from £108.8 million.
Profit from UK Car Insurance increased by 19% to £372.8 million (2011: £313.6 million).
The loss ratio before releases was broadly flat in the year, though larger reserve releases (3.9% of net earned premium compared to 2.5%) led to an improved net loss ratio of 76.1%.
The projected ultimate combined ratio for Admiral for the 2012 accident year is 83%, compared to 82% for the 2011 year. The reported combined ratio for the UK market for 2011 was 105%.
Regulatory Environment The UK Car Insurance business operates predominantly under the regulation of the UK Financial Services Authority (FSA), and, through a Gibraltar based insurance company, under the Financial Services Commission (FSC) in that territory.
The FSA regulates two Group companies involved in the business – EUI Limited (an insurance intermediary) and Admiral Insurance Company Limited (an insurer); whilst the FSC regulates Admiral Insurance (Gibraltar) Limited (also an insurer).
Admiral generates other revenue from a portfolio of insurance products that complement the core car insurance product, and also fees generated over the life of the policy. There is also some (less significant) income from other products unconnected to car insurance.
However, the accounting recognition and treatment of vehicle commission results in Other Revenue per vehicle in 2012 being reduced by approximately £6 (£16 million in total). Further detail on the intra-group element of vehicle commission is set out in note 3.
Net ancillary income 5.3 8.0 8.9 Other revenue and charges 0.3 (0.4) –
The Group has four direct car insurance businesses operating outside the UK: • Admiral Seguros (Seville, Spain): The most mature of the Group’s international businesses, having traded since October 2006. The business trades via two brands – Balumba.es and Qualitas Auto.
• ConTe (Rome, Italy): Launched in May 2008, ConTe is the largest of the non-UK insurers within the Group.
• L’olivier Assurances (Paris, France): The Group’s youngest (and smallest) international insurance business, launched in December 2010.
Growth in the younger businesses, along with some adverse prior year claims development in the more mature operations, led to a higher combined ratio however, which increased to 177% from 164%. The higher combined ratio, in conjunction with higher net insurance premium revenue led to a higher loss, of £24.5 million in 2012, up from £9.5 million in 2011.
The Group’s US insurer, Elephant Insurance Company is regulated by the Virginia State Corporation Commission’s Bureau of Insurance. The Company is required to maintain capital at levels prescribed by the regulator, and holds a surplus above these requirements at all times.
International Car Insurance Co-insurance and Reinsurance Reinsurance arrangements for the 2012 year remained the same as 2011 in all countries, with Admiral retaining 35% (Spain and Italy), 30% (France) and one third (USA) of the underwriting risk respectively.
The arrangements for 2013 will remain the same, other than in Spain, where Admiral will retain 30% of the risk, down from 35% in 2012. The balance of 70% will be shared equally between Munich Re and Swiss Re.
All contracts are subject to certain caps on the reinsurers’ exposures and all contracts have profit commission terms that allow Admiral to receive a proportion of the profit earned on the underwriting once the business reaches cumulative profitability. The contracts include proportional sharing of ancillary profits.
Confused.com profit 16.9 16.1 18.2 International Price Comparison result* (4.8) (5.6) (0.2)
UK Price Comparison • Confused.com is an insurance and financial services comparison website.
• Operating in the UK, the site allows consumers to compare a range of general insurance and financial services products across price and policy benefits.
• Confused is one of the UK’s leading car and home insurance comparison websites.
• To date Admiral has targeted four markets (Spain, France, Italy and the USA).
• The Group disposed of its Italian operation (Chiarezza.it) in April 2012.
Against this backdrop, Confused.com delivered an improved result, with revenue 7% higher at £82.7 million (2011: £77.6 million) and profit up £2.1 million to £18.2 million (2011: £16.1 million). Market share in car insurance price comparison was stable.
The combined revenue from the operations in 2012 (on a like-for-like basis) increased by 67% to £21 million, with 29% more quotes delivered. Both Rastreator and LeLynx have strong positions and brands in their respective markets.
The disposal of Chiarezza had an insignificant impact on the income statement.
In March 2013, Admiral launched a new price comparison operation in the USA (based in Virginia), trading as comparenow.com. The initial investment in the new business is not expected to be material in the context of the Group. Pre-launch costs are included in Other Group Items, below.
The European operations are all structured as branches of UK companies, with the UK insurance intermediary permission passported into Europe. Comparenow.com is a regulated insurance agency in Virginia, USA.
UK Household Insurance In December 2012, the Group launched a UK household insurance product, underwritten within the Group and based in the Group’s Cardiff offices. Common with other launches, initial plans are modest, and the business is supported by proportional reinsurance covering 70% of the underwriting risk (shared between Munich Re, 40% and Swiss Re, 30%).
The key focus of the Group’s investment strategy is capital preservation, with additional priorities including low volatility of returns and high levels of liquidity.
The Group’s Investment Committee continues to perform regular reviews of the strategy to ensure it remains appropriate.
The Group continues to generate substantial amounts of cash, and its capital efficient business model enables the distribution of the majority of post-tax profits as dividends.
Operating cash flow, before transfers to investments 522.0 779.1 742.0 Transfers to financial investments (240.8) (493.9) (441.9)
Operating cash flow 281.2 285.2 300.1 Tax and interest payments (69.5) (95.3) (79.7) Investing cash flows (capital expenditure) (11.1) (13.2) (10.9) Financing cash flows (largely dividends) (164.9) (197.8) (214.8) Foreign currency translation impact (0.8) (1.0) (2.7)
The main items contributing to the significant operating cash inflow are as follows: Profit after tax 193.6 221.3 258.4
Change in net insurance liabilities 129.7 244.3 200.0 Net change in trade receivables and liabilities 101.4 203.7 163.0 Non-cash income statement items 25.4 32.0 34.4 Tax and net interest expense 71.9 77.8 86.2
The key features to note are: • Total cash plus investments increased by £435 million or 31% (2011: £474 million, 52%), the lower rate of growth resulted from lower growth in the UK business; somewhat offset by higher growth internationally.
• The net change in actual cash balances was small, as funds were transferred into investments.
Other Financial Items Taxation The taxation charge in the income statement is £86.2 million (2011: £77.8 million), which equates to 25.0% (2011: 26.0%) of profit before tax. The average rate of UK Corporation Tax in 2012 was 24.5%.
The final dividend is made up of a 21.4 pence normal element based on the stated dividend policy of distributing 45% of post-tax profits, and a further special element of 24.1 pence. The special dividend is calculated with reference to distributable reserves after considering capital that is required to be held a) for regulatory purposes; b) to fund expansion activities; and c) as a further prudent buffer against unforeseen events.
Capital Structure, Financial Position The Group continues to manage its capital to ensure that all entities within the Group are able to continue as going concerns and also to ensure that regulated entities comfortably meet regulatory capital requirements. Excess capital above these levels within subsidiaries is paid up to the Group holding company in the form of dividends on a regular basis.
Minimum capital requirement £78m £25m £122m Surplus over minimum requirement £92m £60m £273m
At 31 January 2013, the Company had received notifications in accordance with the FSA’s DTRs of the following notifiable interests, in the voting rights in the Company’s issued share capital: Number of shares %
The impact on the business would be a worse UK Car Insurance result and lower return on capital employed.
• Continuous appraisal of and investment in staff, systems and processes
• A track record of innovation and an ability to react quickly to market conditions and developments
• A keen focus on maintaining a low-cost infrastructure and efficient acquisition costs.
• Weather-related or man-made catastrophe events (for example severe storm or flood)
For very large claims (catastrophe and otherwise) the Group purchases excess of loss reinsurance, which mitigates the loss to the selected deductible amount (typically between £5 million and £7 million at the total claim level).
The current economic environment has led management to have an increased focus on the identification and prevention of claims fraud, including material investment in systems and staff.
In the case of legislative changes impacting existing claims, the Group holds a buffer in booked reserves to cover significant changes.
The impact on the Group could be higher than planned losses (and potentially closure costs) and distraction of key management.
The Group’s approach to expansion is cautious. The overseas insurance businesses start small and are all backed by proportional reinsurance support which provides substantial mitigation against start-up losses in the early years.
Risk Impact Mitigating Factors 4. Other revenue – potential diminution There is a risk that the level of ancillary profit earned per customer will diminish. This might be due to regulatory or legal changes, or customer or market behaviour.
The most immediate risk to ancillary profits arises from regulatory intervention and most notably the referral of UK motor insurance to the Competition Commission. Whilst there are a range of possible outcomes from this study, Admiral is supportive of any changes that are likely to lead to lower claims costs.
Admiral earns other revenue from a portfolio of products and seeks to minimise reliance on any single item. This would mitigate the impact of a regulatory change which might affect a particular product or income stream. Admiral continuously assesses the value of the products it offers, and makes changes to ensure the products continue to offer value to policyholders.
There is a highly competitive UK market with four main businesses currently attempting to increase their market share through aggressive media activity.
The management of Confused.com maintain an awareness of the risks of continued competition. Management analyse the success or otherwise of all media activity.
Admiral uses proportional co-insurance and reinsurance across its insurance businesses to reduce its own capital needs (and increase return on the capital it does hold) and to mitigate the cost and risk of establishing new operations.
The Board also considers the following risks to be significant: • Operational risk – for example, major fraud (considered to be relatively low impact, and mitigated by a wide range of internal controls) and the resilience of IT systems.
• IT Development risk – failure to invest in appropriate technology to support the Group’s future business development, mitigated by regular review of the effectiveness of the Group’s IT capability by executive management and the Board.
Communication at Admiral is open, transparent and two-way. Employees are provided with a wide range of communication tools to assist in understanding our goals and objectives. We work to communicate these in as many ways as possible. For example, everyone is invited to participate in online chats with senior management. This year we have held three online chats featuring our CEO Henry Engelhardt, and one featuring our COO David Stevens. Other communication tools include our annual Staff General Meeting (SGM), internal newsletters, team briefings, suggestion schemes and staff forums.
Fundamental to equality, and also important for Reward and Recognition, is our performance-related pay structure and share ownership scheme. At Admiral we like to reward and recognise our employees for both their own personal achievement, and the overall performance of the Group.
Morale is good within Admiral 76% 89% 90% 93% 89% 90% 93% Morale is good within my department 87% 82% 90% 86% 84% 85% 87%
None of the managers have worked in our contact centres previously, but after gaining hands-onexperience on the ‘frontline’ of our business they have an increased understanding of the needs of our customers and the day-to-day challenges faced by our staff.
As of 31 December 2012 an employee who joined us on 1 January 2005 would have received a total of 2,496 shares, of which 1,821 would now be matured and 1,184 could be sold free of income tax and national insurance. If none of the matured shares had been sold, these shares would be worth £21,124 (based on the share price of £11.60 on 31 December 2012).
So how do we know our approach works? Our staff tell us. One of the most important tools we use to measure employee satisfaction is an anonymous survey that collects views on what it is like to work for Admiral. The survey results are analysed by department and each department manager shares the findings with their team, exploring any issues and concerns before making improvements.
This year we are pleased to announce that more employees than ever before would recommend Admiral as a good place to work – 96% of employees answered positively to this question – the highest number since the survey began in 1999. Likewise, the number of employees who believe that Admiral strives to understand the thoughts and opinions of its employees is higher than ever before, at 91%.
Sunday Times 100 Best Companies to Work For 32nd 42nd 46th 60th 20th 20th 21st 57th 37th 16th 9th 6th
This year we organised a new event in the form of an Admiral Talent Show, a contest open to all of our UK and overseas employees. The aim was to showcase the most talented performers from across the Group in a variety of acts including singing, dancing and comedy. Auditions were held in our offices in South Wales as well as in the USA, Canada, France, Italy, Spain and India. The response was fantastic, and all of the judges were impressed by the standard of performing talent.
The finalists from each country were invited to compete against each other at the Wales Millennium Centre in Cardiff, performing in front of a group of senior managers from each of the countries in which we operate. The event was won by French band, Lollipop, with second and third places going to singers Lewis Cook from Cardiff and Niki Lester from the USA, respectively.
The event enabled us to unite our international and UK employees, giving them a chance to get to know each other. This is just one way in which we have encouraged our staff to have fun this year, upholding the vibrant culture of working life at Admiral.
As a Group we participate in a number of independently managed surveys including The Sunday Times 100 Best Companies to Work For and the Great Place to Work® Institute’s Best Workplaces in the UK and Best Workplaces in Europe.
Every department has its own set of customer-focused measures to gauge performance. The measures are updated each year to challenge departments to make continual improvements. The programme is reported every month in our internal magazine and intranet, and the best departments are rewarded at our prestigious Quality Awards.
A report is produced each month and discussed at the UK Risk Management Committee (RMC), with process or behavioural changes agreed where appropriate. Please refer to the Corporate Governance section of this report for further details of the Risk Governance framework.
Customer Services Comment Form score 9.4% 9.4% 9.3% 9.3% 9.0% > 9.0% Claims Service Comment Form score 8.8% 8.8% 8.7% 9.0% 9.1% > 8.5% % Customers who would renew following a claim 93% 93% 92% 91% 90% > 85%
Awards include, ‘Best Measures Performance’, ‘Treating Customers Fairly Winner’ and ‘Best Complaint Prevention Winner’, amongst others.
We are currently trialling a new way of obtaining customer feedback via SMS text messaging, with a view to increasing the level of direct feedback that we receive. Our Claims department are now gathering most of their customer feedback via SMS, and we plan to introduce this method to other departments in the future.
Charity and Community Admiral plays a positive role in the community through charitable giving and sponsorship of local community partnerships. We promote payroll giving and provide matched funding for eligible employee initiatives. In 2012, we donated £141,000 to various local and national charities (2011: £194,000) and £285,000 (2011: £232,000) to subsidise local events for the public. The amount the Group donates fluctuates annually due to changes in sponsorship initiatives and employee demand for matched funding.
No journey too tough One team completed a sponsored walk to the top of Pen-y-Fan mountain – the highest peak in South Wales.
An apple a day; We provide fresh fruit for all our employees.
SEAT Young Driver Scheme We have been dedicated sponsors of the SEAT Young Driver scheme since its launch in October 2009. This nationwide scheme enables 11 to 17-yearolds to complete driving lessons with fully-qualified driving instructors long before they can even sit their test, using simulated road systems set up on private ground and featuring obstacles like traffic lights, junctions and roundabouts.
We support the Young Driver scheme because it enables us to play a role in increasing the number of well-trained, responsible young drivers on UK roads, resulting in fewer accidents amongst this traditionally high-risk group. This will help us to provide low-cost car insurance for young drivers.
Environment We are committed to: • Raising and maintaining employee awareness of, and ensuring that everyone is actively engaged in, activities to reduce our environmental impact.
The main source of our carbon emissions is the consumption of electricity and gas in our offices. At present we lease buildings rather than owning them outright, which means that we are largely dependent upon the managing agents of our properties to make changes which reduce water and energy consumption.
This Report is structured in order to demonstrate to shareholders that the Group has considered and complied with each section of the Code: Leadership; Effectiveness; Accountability and Relations with Shareholders. Remuneration is dealt with in the separate Remuneration Report.
Alastair Lyons, CBE (59) Non-Executive Chairman, appointed July 2000 Nomination Committee Chairman
Background and experience In his executive career Alastair has been Chief Executive of the National Provident Institution and of the National & Provincial Building Society, Managing Director of the Insurance Division of Abbey National plc, and Director of Corporate Projects at National Westminster Bank plc.
He was also a Non-Executive Director for the Department for Transport and the Department for Work and Pensions.
Background and experience David is a founder Director of Admiral and was recruited in 1991 to set up the Admiral business. David was part of the management team that led the MBO in 1999.
Prior to joining Admiral David worked at McKinsey & Co, in the Financial Interest Group, and Cadbury Schweppes in the UK and the USA.
David has an MBA from INSEAD and he was awarded a CBE in 2010 for service to business and the community in Wales.
Background and experience Henry is a founder Director of Admiral and was recruited by the Brockbank Group in 1991 to set up the Admiral business.
Prior to joining Admiral, Henry was the original Marketing and Sales Manager for Churchill Insurance.
Background and experience Martin was the Chairman of the Admiral Group Audit Committee from August 2004 until January 2012, when he became Chairman of the newly formed Group Risk Committee.
Martin was the Group Finance Director of Friends Provident plc between 2001 and 2003 and Friends Provident Life Office between 1999-2001.
Prior to this he was the Group Finance Director at London & Manchester Group plc from 1992, up to the date of its acquisition by Friends Provident Life Office.
John Sussens, (67) Senior Independent Non-Executive Director, appointed in August 2004 Remuneration Committee Chairman Group Risk Committee member
Colin Holmes, (47) Non-Executive Director, appointed in December 2010 Audit Committee Chairman Nomination Committee member
Background and experience In her 20 years at the Financial Times Lucy has been an oil correspondent, a Lex columnist and Brussels correspondent. Lucy is an author of various books.
Background and experience Between 2007 and 2010 Annette was CEO of Europe General Insurance for Zurich Financial Services and a member of the Group Executive Committee.
The UK Corporate Governance Code The Board complied with the Code in all respects during 2012 except for Code E.1.1, which requires that the Senior Independent Director should attend meetings with a range of shareholders. The Company has a comprehensive programme of meetings and dialogue with institutional investors and the Chairman makes himself available for meetings with the largest 10 such investors. The views of investors expressed through this dialogue are communicated to the Board as a whole on a regular basis through the Investor Relations report. All Directors can, therefore, develop an understanding of issues or concerns of major shareholders should any be raised. Feedback from shareholders suggests that these arrangements for communication between the Company and its shareholders continue to be viewed by them as effective. The Senior Independent Director is always available to meet with individual shareholders on request to ensure the Board is aware of any shareholder concerns that cannot be resolved through the routine mechanisms for investor communications.
Directors are expected to attend all meetings of the Board and the Committees on which they serve and to devote sufficient time to the Group to perform their duties. Where Directors are unable to attend meetings they receive papers for that meeting giving them the opportunity to raise any issues with the Chairman in advance of the meeting. The number of scheduled Board meetings and Committee meetings of which they are a member attended by each Director during 2012 is provided in the table below.
(i) Roger Abravanel was appointed to the Board with effect from 6 March 2012. Roger became a member of the Remuneration Committee with effect from 26 April 2012. During the year, Roger attended one of the scheduled Board meetings as an observer before he was formally appointed to the Board.
(ii) Annette Court was appointed to the Board with effect from 21 March 2012. Annette became a member of the Audit and Group Risk Committees on appointment. During the year, Annette attended two of the scheduled Board meetings, one Group Risk Committee and one Audit Committee meeting as an observer before she was formally appointed to the Board.
(iii) Colin Holmes stepped down from the Remuneration Committee with effect from 26 April 2012 and became a member of the Nomination Committee. (iv) Martin Jackson stepped down as Chair of the Audit Committee with effect from 1 January 2012 to become Chair of the Group Risk Committee. He stepped down as a member of the Audit Committee with effect from 26 April 2012. (v) Keith James stepped down from the Board, Audit and Nomination Committees at the AGM in April 2012.
The evaluation process in 2012 was led by the Chairman with support from the Company Secretary. The process consisted of the completion, by all Directors, of a comprehensive questionnaire evaluating the performance of the Board and its Committees. The questionnaire considered board processes and their effectiveness, Board composition, Board objectives, Board support, and content of discussion and focus at Board meetings and invited Directors to indicate where specific improvements could be made. Completion of the questionnaire by each Director was followed by one-to-one discussions between each Director and the Chairman where the Board’s role and structure, process, relationships, and any emerging issues were discussed.
The overall results of the evaluation were considered by the Chairman and the principal recommendations presented by him for review and discussion by the Board in January 2013. The evaluation concluded that good progress had been achieved in most of the areas identified for action in the last Board evaluation and that the Board and its Committees had continued to work very effectively in relation to most dimensions. Improvements have been seen in many of the areas of focus identified in the evaluation undertaken in 2011. These included the process of individual Non-Executive Directors accompanying the Chairman and Chief Executive on at least one of their overseas visits made during the year with such visits enabling Non-Executive Directors to get a more in-depth understanding of the operational and strategic challenges faced by the business. The importance of effective succession planning and identifying talented individuals across the Group who have senior management potential has continued to be a particular area of focus during the year. The Board has been mindful that several Non-Executive Directors will shortly reach nine years’ service on the Board.
In addition to the annual Board Effectiveness Review and in order to provide regular information as to the effective functioning of the Board and its meeting processes, following each Board meeting the Directors provide feedback, via the completion of an online questionnaire, as to the effectiveness of each Board meeting including the efficacy of the presentation of discussion topics and whether time available for the meeting was used effectively.
The Roles of the Chairman and Chief Executive The Board has approved a statement that sets out the clear division of responsibilities between the Chairman and the Chief Executive. The Chairman is primarily responsible for the leadership and workings of the Board, setting its agenda, and monitoring its effectiveness. The Chairman is not involved in the dayto -day management of the business. Save for matters reserved for decision by the Board, the Chief Executive, with the support of the other Executive Directors, is responsible for proposing the strategy to be adopted by the Group; running the business in accordance with the strategy agreed by the Board; and implementing specific Board decisions relating to the operation of the Group. The statements of division of responsibilities and matters reserved for decision by the Board are reviewed annually.
The Board currently comprises twelve Directors, the Chairman (who was independent on appointment), three Executive Directors, seven independent Non-Executive Directors, and one Non-Executive Director, Manfred Aldag, who is employed by a significant shareholder and is not, therefore, considered independent. There is no requirement that the significant shareholder has representation on the Board and, accordingly, Mr. Aldag’s appointment is subject to the same appointment and removal process as the other Board Directors. As can be seen from the Directors’ biographies on page 30, the Directors have a broad range of skills and experience and can bring independent judgement to bear on issues of strategy, performance, resources and standards of conduct which are integral to the success of the Group.
The Chairman performs a number of other non-executive roles outside the Group and details of these are included in the Chairman’s biography. The Board continues to be satisfied that these other commitments are not such as to interfere with the performance of his duties within the Group and will not impact on his ability to allocate sufficient time to discharge effectively his responsibilities to the Group.
John Sussens has been appointed as the Senior Independent Non-Executive Director. He is available to shareholders if they have concerns that contact through the normal channels of Chairman, Chief Executive, or Group Chief Financial Officer has failed to resolve or for which such contact is inappropriate. He is also responsible for leading the Board’s discussion on the Chairman’s performance and the appointment of a new Chairman, when appropriate.
Professional Development On appointment, Directors take part in a comprehensive induction programme where they receive financial and operational information about the Group; details concerning their responsibilities and duties; as well as an introduction to the Group’s governance, regulatory and control environment.
This induction is supplemented by visits to the Group’s head office in Cardiff, overseas offices, and meetings with members of the senior management team and their departments. Development and training of Directors is an ongoing process. Throughout their period in office the Directors are regularly updated on the Group’s business; legal matters concerning their role and duties; the competitive environments in which the Group operates; and any other significant changes affecting the Group and the industry of which it is a part. All Board members are also encouraged to attend relevant training courses at the Company’s expense.
In addition the Chairman had individual meetings during the year with major shareholders, and reported to the Board on issues raised with him.
This is supplemented by feedback to the Board on meetings between management and investors. External analysts’ reports are circulated to all Directors. In addition, the Investor Relations team produces a quarterly Investor Relations Report that is circulated to the Board. The Report contains an analysis of share price performance; a summary of analyst reports received during the month and of meetings that have been held with investors and analysts; together with details of any significant changes to the shareholders’ register.
All Committees are chaired by an independent Director, except the Nomination Committee which is chaired by the Chairman of the Board, and comprise a majority of independent Directors. Appointments to the Committees are made on the recommendation of the Nomination 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. The Committees are constituted with written terms of reference that are reviewed annually to ensure that they remain appropriate and reflect any changes in good practice and governance. These terms of reference are available on request from the Company Secretary and can also be found on the Company’s website: www.admiralgroup.co.uk. Directors are fully informed of all Committee matters by the Committee Chairmen reporting on the proceedings of their Committee at the subsequent Board meeting. Copies of Committee minutes are also distributed to the Board. Committees are authorised to obtain outside legal or other independent professional advice if they consider it necessary. The Chairman of each Committee attends the Annual General Meeting to respond to any shareholder questions that might be raised on the Committee’s activities.
The Company Secretary acts as Secretary to the Committee. The Committee usually meets four times per year and has an agenda linked to events in the Company’s financial calendar.
The Board considers that the members of the Committee have the appropriate competence and experience to carry out their duties and further considers that Colin Holmes (Committee Chair), as a Chartered Management Accountant, has the appropriate recent and relevant financial experience having previously been the UK Finance Director for Tesco plc, and until 2010 a member of its Group Executive Committee.
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, reviewing any significant financial reporting judgements which they contain; • To keep under review the effectiveness of the Company’s internal financial controls, internal control and risk management systems; • To review the Group’s procedures for handling allegations from whistleblowers and for detecting fraud; • To monitor and assess the role and effectiveness of the Group’s internal audit functions in the context of the Group’s overall internal control and risk management systems; • To consider and make recommendations to the Board, to be put to shareholders for their approval at the AGM, in relation to the appointment, re-appointment and removal of the Group’s external auditor; • To review the external auditor’s independence and objectivity and the effectiveness of the audit process; and
Membership at the end of the year was: Martin Jackson (Chair); John Sussens, David Stevens and Annette Court.
The duties and responsibilities of the Committee are set out in Terms of Reference that were approved by the Board in January 2013. The responsibilities of the Committee can be summarised as: • Agreeing the Group’s risk management framework, including the Risk Management Committees that are established within each of the Group’s operational entities; • Monitoring the Group’s prudential risk exposure, which includes ensuring that the Group’s capital resources and liquidity profile are appropriate to its needs whilst meeting minimum regulatory requirements; • Ensuring the adequacy and effectiveness of the Group’s systems and controls for the prevention of financial crime including prevention of bribery and adequacy of anti-money laundering systems and controls; • Monitoring the adequacy and effectiveness of the Group’s Compliance functions; • Reviewing the Group’s progress towards achieving Solvency II compliance; • Considering and recommending to the Board for approval the Group’s risk appetite, including any changes to the appetite for each material type of risk faced by the Group; and
• Overseeing and challenging the design and execution of the Group’s stress and scenario testing.
Summary of Key Activities in 2012 During the year the Committee: • Reviewed the Group’s risk appetite and profile of material risks; • Considered the adequacy of risk mitigation measures and contingency plans; • Reviewed the Group’s risk strategy in the context of the Group’s agreed strategic objectives; • Monitored the Group’s progress towards implementation of Solvency II; • Approved the design and reviewed the results of the stress and scenario testing programme; • Received an external presentation on Enterprise-wide
Risk Management benchmarking; • Reviewed in-depth analysis of a number of the Group’s most significant risk areas, including insurance risk in the UK car insurance operation; • Reviewed management information on conduct risk within the Group; • Reviewed its own terms of reference; • Reviewed its own effectiveness and sought to identify potential improvements that could be made to the Committee’s oversight of risk management in the Group.
The work of the Committee is supported by more detailed work undertaken by Risk Management Committees in each of the Group’s operational entities. Membership of each of these Committees includes the Managing Director of the operation. In the UK, membership of the Risk Management Committee includes the Group Chief Executive and the Chief Operating Officer. At each meeting, the Risk Management Committees consider significant movements in the operation’s risk profile, any risks that have arisen and any emerging risks. Risk Management Committees also assess and monitor any regulatory issues, ensuring that their resolution and the action taken are appropriately recorded. In the UK, the Risk Management Committee received regular information on Conduct Risk, such as complaint handling reports and TCF (Treating Customers Fairly) management information.
The membership at the year-end was Alastair Lyons (Chairman), Colin Holmes and Lucy Kellaway. The Company Secretary acts as Secretary to the Committee. The Committee invites the Chief Executive to attend meetings when it deems appropriate. The Committee met on one occasion during 2012.
The Board, at their meeting in December 2012, considered the Group’s current Succession Plan which considered the senior roles within the Group and identified whether there was emergency short- term cover in place in the event that the individual left the organisation, and whether there was a permanent replacement available within the organisation, or whether the position would need to be filled externally. It also identified where there were individuals who, with further experience and guidance, would be capable of moving into particular senior management roles.
At this meeting the emerging talent across the Group was discussed in detail with the Executive team identifying key individuals within the organisation who had impressed in their current roles and who had the potential to contribute to the business by working on projects in other areas of the Group. Such exposure would also assist with their development in order that, at the appropriate time, they might be in a position to succeed to senior management positions.
The Group already has strong female representation in both management and at Board level. On our Executive Committees women comprise 33% of that for the UK and 41% for our International operations. In addition, of the total employees across the Group in the UK, 49% are women. Given women already constitute 25% of our plc Board the Group has already met the target set for 2015 by Lord Davies in his report: Women on Boards. The Group remains committed to providing equal opportunities, eliminating discrimination and encouraging diversity amongst its workforce both in the UK and overseas.
The Board is of the view that there is an ongoing process for identifying, evaluating and managing the Group’s internal controls; that it has been in place for the year ended 31 December 2012; and that, up to the date of approval of the Annual Report and Accounts, it is regularly reviewed by the Board and accords with the internal control guidance for Directors provided in the Code.
There are several key elements to the risk management environment throughout the Group. These include the setting of risk management strategy, risk appetite and risk policy by the GRC; enforcement of that policy by the Chief Executive; delivery of the policy by the Risk Management Committee and the Group’s other UK and overseas entities by the application of the Group’s systems of internal control and risk management; and the overall assurance provided by internal audit to the Audit Committee that the systems operate effectively. The Board recognises that the day-to-day responsibility for implementing these policies must lie with the Senior Management whose operational decisions must take into account risk and how this can be controlled effectively. The GRC will report on its activities to the Audit Committee in support of the overall assurance provided by the Audit Committee that the Group’s risk management and compliance systems operate effectively.
As a result of this review the Directors have satisfied themselves that it is appropriate to prepare the financial statements on a going concern basis.
The Directors present their Annual Report and the audited financial statements for the year ended 31 December 2012.
Group Results and Dividends The profit for the year, after tax but before dividends, amounted to £258.4 million (2011: £221.3 million).
Charitable and Political Donations During the year the Group donated £141,000 (2011: £194,000) to various local and national charities. The amount the Group donates fluctuates annually due to changes in sponsorship initiatives and employee demand for matched funding. The Group has never made political donations. Refer to the Business Review for further details.
Contractual Arrangements The Group considers its coinsurance and reinsurance contracts, as described in the Business Review section on page 11 to be essential to the running of the Group’s business. No other contractual arrangements are considered to be essential.
Additional Information for Shareholders Where not provided previously in this Directors’ Report, the following provides the additional information required for shareholders as a result of the implementation of the Takeovers Directive into UK law.
There are a number of agreements that alter or terminate upon a change of control of the Company following a takeover bid, such as commercial contracts. None is considered to be significant in terms of their impact on the business of the Group as a whole except for the longterm co-insurance agreement in place with Great Lakes Reinsurance (UK) Plc. Details relating to this agreement are contained in the Business review.
Power to Issue Shares At the last Annual General Meeting, held on 26 April 2012, authority was given to the Directors to allot unissued relevant securities in the Company up to a maximum of £89,535, equivalent to one third of the issued share capital as at 21 March 2012. This authority expires on the date of the Annual General Meeting to be held on 25 April 2013 and the Directors will seek to renew this authority for the following year.
A further special resolution passed at that meeting granted authority to the Directors to allot equity securities in the Company (up to a 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 2013 and the Directors will seek to renew this authority for the following year.
Power of the Directors The Directors are responsible for managing the business of the Company and may exercise all powers of the Company subject to the 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 are also included in the Articles and such authorities are renewed by shareholders at the Annual General Meeting each year.
Directors’ Responsibilities The Directors are responsible for preparing the Annual Report and the Group and Parent Company financial statements, in accordance with applicable law and regulations.
In preparing each of the Group and Parent Company financial statements, the Directors are required to: • select suitable accounting policies and then apply them consistently; • make judgements and 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 EU; • for the Parent Company financial statements, state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the Parent Company financial statements; and
Under applicable law and regulations, the Directors are also responsible for preparing a Directors’ report, Directors’ Remuneration report and Corporate Governance statement that comply with that law and those regulations.
• The Directors’ report includes a fair view of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
Auditor The Company’s auditor, KPMG Audit Plc, 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 Annual General Meeting.
A Statement to Shareholders from the Chairman of the Remuneration Committee Dear Shareholder, I am pleased to introduce the Directors’ Remuneration report (the ‘Report’) for the year ended 31 December 2012, which has been prepared by the Remuneration Committee (the ‘Committee’) and approved by the Board.
This Report covers the reporting period from 1 January 2012 to 31 December 2012 and provides details of the activities of the Committee and remuneration policy of the Company.
The UK Government Department of Business Innovation & Skills (BIS) is currently proposing changes to the structure and contents of Directors’ Remuneration Reports (DRRs). The Committee has decided to adopt a number of these proposed changes early; therefore after this brief introduction, the Report is divided into three sections: • A Policy Report which will detail Admiral’s remuneration policies and links to Group strategy; • An Implementation Report, which will focus on the remuneration arrangements and outcomes for the year under review; and
During the year ended 31 December 2012, the Committee met on five separate occasions. The key matters considered included: • Reviewing salary and fee proposals for the Executive
Key Principles of Admiral Remuneration Arrangements The Group is committed to the primary objective of maximising shareholder value over time and 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 remuneration packages comprising basic salaries coupled with participation in performancebased share schemes to generate competitive total reward packages for superior performance. The Board is satisfied that the adoption of this policy continues to meet the objectives of attracting and retaining executives of the highest quality across the Group.
Remuneration Policy Table This section of our report describes the key components of the remuneration arrangements for Executive Directors and Non-Executive Directors for 2013 and beyond. No changes to the structure of remuneration are proposed for 2013.
Base salary To attract and retain talent by setting base salaries at levels appropriate for the business
Henry Engelhardt and David Stevens have declined to be included in the plan
Includes: • Death in service scheme; • Private medical cover; • Permanent health insurance
Awards, generally made as a specific number of shares, vest after three years subject to performance and continued employment
Award size for 2012: 52,250 shares, with a value on the date of award of £560,643
Awards vest by reference to growth in the Group’s EPS in excess of a risk-free return, defined as average three-month LIBOR, over a three-year period (10% of shares vest for matching LIBOR; full vesting for outperforming LIBOR by 10% p.a.; straight-line vesting in between)
All UK staff participate in the SIP (except Henry Engelhardt and David Stevens who have declined to participate). Grants are made twice a year based on the results of each half-year
Executive Directors have agreed to (acquire and) retain a beneficial shareholding equal to at least 100% of base salary, which can be built up over a period of five years from the date of appointment 100% of base salary
The Chairman fee is determined by the Committee after consultation with the Executive Directors. The Chairman, as with the founding Directors, holds a significant shareholding in the Group and this is reflected in the size of his fee, which is materially below that of Chairmen of organisations of similar size and complexity. The non-executive directors’ fees are determined by the Chairman together with the Executive Directors.
Non-Executive Chairman: £218,000 Non-Executive Director base fee: £50,000 Senior independent Director: £5,000
Committee Chairman: • Audit: £20,000 • Risk: £20,000 • Remuneration: £5,000 • Nomination: £5,000
Kevin Chidwick was reimbursed for expenses incurred in his relocation to the USA in January 2012
Roger Abravanel 3 years 6 March 2012 One month’s written notice
Colin Holmes 3 years 3 December 2010 One month’s written notice
Margaret Johnson 3 years 4 September 2012 One month’s written notice
Lucy Kellaway 3 years 4 September 2012 One month’s written notice
Termination Payments The Company’s policy is to limit severance payments on termination to pre-established contractual arrangements. In the event that the employment of an Executive Director is terminated, any compensation payable will be determined in accordance with the terms of the service contract between the Company and the employee, as well as the rules of any incentive plans.
For all other leavers, outstanding awards will lapse. The Committee retains discretion to alter these provisions (as permitted by the relevant Plan Rules) on a case-by-case basis following a review of circumstances and to ensure fairness for both shareholders and participants.
Pension £9,000 annual contribution for CFO; no contribution for CEO or COO £9,000 annual contribution for CFO; no contribution for CEO or COO Benefits Taxable value of annual benefits provided Taxable value of annual benefits provided DFSS 0% vesting 100% vesting DFSS bonus Based on DFSS bonus paid in 2012 Based on DFSS bonus paid in 2012
Considerations of Conditions Elsewhere in the Group In making remuneration decisions, the Committee also considers the pay and employment conditions elsewhere in the Group.
The increase to the CEO, CFO and COO’s base salary for 2012 of 4.5%, is in line with the average increase across the Group of 4.5%.
The Chairman and CEO are invited to meetings where the Committee considers it appropriate to obtain their advice on Group strategy and performance and Senior Executive pay strategy. The members of the Committee do not have any personal financial interests (other than shareholdings), or any conflicts, that relate to the business of the Committee. During the year under review, the Committee was aware of the cross-directorships held by Colin Holmes and Alastair Lyons, who are both Directors of Bovis Homes Group plc. Although not applicable given
Total Actual Remuneration To aid transparency for our shareholders, the table below sets out the total actual remuneration received by each Executive Director for the year to 31 December 2012, in line with the BIS single total figure definition.
Base salary The Committee approved the following base salaries for the Executive Directors in 2012: Director 2011 salary 2012 salary % change Effective date
Pensions The Company operates a Group Personal Pension Plan, where employee contributions are matched up to a maximum 6% of base salary with maximum employer contribution of £9,000. This is available to all employees following completion of their probationary period.
Kevin Chidwick is included in the plan and is subject to the maximum employer contribution limit of £9,000. The Company contributed £9,000 in 2012. Henry Engelhardt and David Stevens have declined to be included in the plan.
Face value of awards granted in 2012 CEO: n/a CFO: 52,250 shares on 11 October 2012 with a value at the date of award of £560,643 COO: n/a
Performance period 3 years from 1 January 2012 Performance conditions Growth in EPS vs. LIBOR Threshold (10% vests) Growth in line with LIBOR over 3 years Maximum (100% vests) Growth of 10% p.a. in excess of LIBOR over 3 years
In 2012, Kevin Chidwick received a DFSS bonus of £122,612 (2011: £106,692).
As at March 2013, the Directors have the following shareholdings: Shares held
Alastair Lyons 492,152 – Roger Abravanel – – Manfred Aldag 1,919 – Annette Court – – Colin Holmes 40,000 – Martin Jackson – – Margaret Johnson – – John Sussens 80,000 –
Shareholder context The table below shows the advisory vote on the 2012 Remuneration Report at the April 2012 AGM relating to the financial year 2011.
This section contains information that will be required for the 2012 DRR under current regulations, but which will no longer be required for the 2013 Directors’ Remuneration Report.
Directors’ Remuneration – Audited Remuneration for the year ended 31 December 2012 was as follows: Base salary and fees Bonuses Benefits 2012 Total
Awards to Kevin Chidwick under the DFSS and SIP: Type At start of year
The closing price of Admiral shares on 31 December 2012 was £11.60 per share.
* 100% of the DFSS award made in April 2009 vested during 2012. The earnings per share index for the performance period (2009 to 2011 years, inclusive) was 149 points, compared to the LIBOR index for the same period of 108 (outperformance of 41 points). 10% of the award is achieved for meeting LIBOR, with a further 2.5% for each point of outperformance (up to a maximum of 100%).
Other Directorships Executive directors are permitted to, although none currently do, accept appointments as Non-Executive Directors of companies with prior approval of the Chairman. Approval will only be given where the appointment does not present a conflict of interest with the Group’s activities and the wider exposure gained will be beneficial to the development of the individual. Where fees are payable in respect of such appointments, these would be passed to the Company.
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 to them 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 we have formed.
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate
• the information given in the Corporate Governance Statement set out on pages 29 to 43 with respect to internal control and risk management systems in relation to financial reporting processes and about share capital structures is consistent with the financial statements.
Under the Listing Rules we are required to review: • the Directors’ statement, set out on page 46 in relation to going concern; • the part of the Corporate Governance Statement on pages 32 to 37 relating to the Company’s compliance with the nine provisions of the UK Corporate Governance Code specified for our review; and
Insurance premium revenue 1,156.5 959.7 Insurance premium ceded to reinsurers (657.6) (513.9) Net insurance premium revenue 4 498.9 445.8
Share scheme charges 7 (20.6) (18.6) Total expenses (639.7) (571.2) Profit before tax 344.6 299.1
Profit after tax attributable to: Equity holders of the parent 258.4 221.2 Non-controlling interests – 0.1
Total comprehensive income for the period attributable to: Equity holders of the parent 255.9 220.2 Non-controlling interests (0.2) 0.1
Cash and cash equivalents 5 216.6 224.6 Total assets 3,204.2 2,614.9
Share premium account 13.1 13.1 Other reserves 0.7 3.2 Retained earnings 443.0 377.3
Total equity attributable to equity holders of the parent 457.1 393.9 Non-controlling interests 3.6 0.5
Trade and other payables 5, 9 1,006.5 856.6 Current tax liabilities 40.1 30.2
These financial statements were approved by the Board of Directors on 5 March 2013 and were signed on its behalf by: Kevin Chidwick Director Admiral Group plc Company Number: 03849958 60 Admiral Group plc Annual Report 2012
Profit after tax 258.4 221.3 Adjustments for non-cash items: – Amortisation of software 4.1 3.3 – Change in unrealised gains on investments (0.6) (1.9) – Other gains and losses 0.6 0.9 – Share scheme charge 7 23.7 23.6 Change in gross insurance contract liabilities 363.2 527.1 Change in reinsurance assets (163.2) (282.8) Change in trade and other receivables, including from policyholders 13.1 (88.4) Change in trade and other payables, including tax and social security 149.9 292.1 Taxation expense 86.2 77.8 Cash flows from operating activities, before movements in investments 742.0 779.1 Net cash flow into investments (441.9) (493.9) Cash flows from operating activities, net of movements in investments 300.1 285.2 Taxation payments (79.7) (95.3) Net cash flow from operating activities 220.4 189.9
Cash flows from investing activities: Proceeds from investing activities – 3.9 Purchases of property, equipment and software (10.9) (16.8) Net cash used in investing activities (10.9) (12.9)
Cash flows from financing activities: Non controlling interest capital contribution 4.6 – Capital element of new finance leases – 1.0 Repayment of finance lease liabilities (0.1) (0.3) Equity dividends paid 10 (219.3) (198.8) Net cash used in financing activities (214.8) (198.1)
Consolidated Statement of Changes in Equity 62 Admiral Group plc Annual Report 2012
None of these standards, amendments to standards or interpretations of current standards above will have a material impact on the Group’s financial statements in future periods.
The preparation of financial statements in conformity with adopted IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is reviewed if this revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years. To the extent that a change in an accounting estimate gives rise to changes in assets and liabilities, it is recognised by adjusting the carrying amount of the related asset or liability in the period of the change.
2. Critical accounting judgements and estimates Judgements: In applying the Group’s accounting policies as described in the notes to the financial statements, management has primarily applied judgement in the classification of the Group’s contracts with reinsurers as reinsurance contracts. A contract is required to transfer significant insurance risk in order to be classified as such. Management reviews all terms and conditions of each such contract, and if necessary obtains the opinion of an independent expert at the negotiation stage in order to be able to make this judgement.
The estimates of the ultimate cost of reported claims are based on the setting of claim provisions on a case-bycase basis, for all but the simplest of claims.
The claims reserves are subject to independent review by the Group’s actuarial advisors. Management’s reserving policy is to reserve at a level above best estimate assumptions to allow for unforeseen adverse claims development. For further detail on objectives, policies and procedures for managing insurance risk, refer to note 4 of the financial statements.
(ii) Foreign currency translation: Items included in the financial statements 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 millions of pounds sterling, which is the Group’s presentation currency.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. 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.
• All resulting exchange differences are recognised in other comprehensive income and in a separate component of equity.
UK Car Insurance: The segment consists of the underwriting of car insurance and other products that supplement the car insurance policy. It also includes the generation of ancillary income from underwriting car 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 income are not independent of each other and are performed as one business. This mirrors the approach taken in management reporting.
Price Comparison: The segment relates to the Group’s price comparison websites Confused in the UK, Rastreator in Spain and LeLynx in France. The Group’s price comparison operation in Italy, Chiarezza was sold in 2012. Each of the Price Comparison businesses are operating in individual geographical segments but are grouped into one reporting segment as LeLynx and Rastreator do not individually meet the threshold requirements in IFRS 8.
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 2012, by reportable segment are shown below. The accounting policies of the reportable segments are consistent with those presented in the notes to the financial statements for the Group.
Net insurance premium revenue 455.6 43.3 – – – 498.9 Other revenue and profit commission 342.7 10.8 103.5 12.5 – 469.5 Investment and interest income 13.9 0.1 – – – 14.0
Within the UK Car Insurance segment, transactions between the Group’s intermediary and the Group’s insurance companies relating to vehicle commission totalling £7.0m have not been eliminated (from the insurance expenses and other revenue lines in the income statement) in order to ensure consistency between the financial statements and key performance indicators quoted in the business review. There is no profit impact of the non-elimination.
Segment assets and liabilities The identifiable segment assets and liabilities at 31 December 2012 are as follows.
The segment assets and liabilities at 31 December 2011 are as follows.
4. Premium, Claims and Profit Commissions 4a Accounting policies (i) Revenue recognition – premiums: Premiums relating to insurance contracts are recognised as revenue proportionally over the period of cover. Premiums with an inception date after the end of the period are held in the statement of financial position as deferred revenue. Outstanding collections from policyholders are recognised within policyholder receivables.
(ii) Revenue recognition – profit commission: Under some of the co-insurance and reinsurance contracts under which motor premiums are shared or ceded, profit commission may be earned on a particular year of account, which is usually subject to performance criteria such as loss ratios and expense ratios. The commission is dependent on the ultimate outcome of any year, with revenue being recognised when loss and expense ratios used in the preparation of the financial statements, move below an agreed threshold.
• Claims Claims and claims handling expenses are charged as incurred, based on the estimated direct and indirect costs of settling all liabilities arising on events occurring up to the balance sheet date.
Notes to the Financial Statements continued 68 Admiral Group plc Annual Report 2012
Total motor insurance premiums written before co-insurance 1,897.2 1,841.3 Group gross premiums written after co-insurance 1,167.2 1,128.4 Outwards reinsurance premiums (679.1) (622.0) Net insurance premiums written 488.1 506.4 Change in gross unearned premium provision (10.7) (168.7) Change in reinsurers’ share of unearned premium provision 21.5 108.1 Net insurance premium revenue 498.9 445.8
Underwriting year: Total profit commission 108.4 61.8 4d Reinsurance assets and insurance contract liabilities (i) Objectives, policies and procedures for the management of insurance risk: The Group is involved in issuing motor insurance contracts that transfer risk from policyholders to the Group and its underwriting partners.
Insurance risk primarily involves uncertainty over the occurrence, amount or timing of claims arising on insurance contracts issued.
The key reserving risk is that the frequency and/or value of the claims arising exceeds expectation and the value of insurance liabilities established.
The Board of Directors is responsible for the management of insurance risk, although as mentioned in note 5, it has delegated the task of supervising risk management to the Group Risk Committee.
A number of the key elements of these policies and procedures are detailed below: • Co-insurance and reinsurance: As noted in the business review, the Group cedes a significant amount of the motor insurance business generated to external underwriters. In 2012, 40% of the UK risk was shared under a co-insurance contract, under which the primary risk is borne by the co-insurer. A further 35% of the UK risk was ceded under quota share reinsurance contracts. Co-insurance and reinsurance contracts are also used in the International car insurance businesses. Further detail can be found in the business review on page 13 and 17.
Gross: Claims outstanding 1,147.7 781.1 Unearned premium provision 549.2 552.6 Total gross insurance liabilities 1,696.9 1,333.7
The maturity profile of gross insurance liabilities at the end of 2012 is as follows: < 1 Year £m £m > 3 years £m
Analysis of claims incurred (Net amounts): £m £m £m £m £m
Underwriting year (UK only): (v) Analysis of net claims provision releases (UK business only): The following table analyses the impact of movements in prior year claims provisions, in terms of their net value, and their impact on the reported loss ratio. This data is presented on an underwriting year basis.
Notes to the Financial Statements continued 72 Admiral Group plc Annual Report 2012
Net unearned premium provision at start of period 247.0 180.6 Written in the period 488.1 506.4 Earned in the period (501.6) (440.0) Net unearned premium provision at end of period 233.5 247.0 5. Investments 5a Accounting policies (i) Investment income: Investment income from financial assets comprises interest income and net gains (both realised and unrealised) on financial assets classified as fair value through profit and loss and interest income on held to maturity deposits.
• Subsequent measurement Financial assets at FVTPL are stated at fair value, with any resultant gain or loss recognised through the income statement.
(iii) Cash and cash equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks, and other short-term deposits with original maturities of three months or less. All cash and cash equivalents are measured at amortised cost.
Net investment return 14.0 10.8 Interest receivable 1.9 2.9 Total investment and interest income 15.9 13.7
5c Financial assets and liabilities The Group’s financial instruments can be analysed as follows: £m £m
The approximate fair value of held to maturity deposits plus short dated debt securities is £562.8m (2011: £280.8m) based on a calculation to discount expected cashflows arising at the Group’s weighted average cost of capital (WACC). The amortised cost carrying amount of receivables is a reasonable approximation of fair value.
The maturity profile of financial assets and liabilities at 31 December 2012 is as follows: On demand £m
Financial assets: Investments held at fair value 1,025.4 – – – Held to maturity deposits with credit institutions – 213.8 162.0 – Held to maturity short dated debt securities – 200.4 – – Receivables – amounts owed by policyholders – 403.5 – – Total financial assets 1,025.4 817.7 162.0 – Trade and other receivables – 55.3 – – Cash and cash equivalents 216.6 – – –
• Credit risk The Group defines credit risk as the risk of loss if another party fails to perform its obligations. The key areas of exposure to credit risk for the Group result through its reinsurance programme, investments, bank deposits and policyholder receivables.
There are no specific concentrations of credit risk with respect to investment counterparties due to the structure of the liquidity funds which invest in a wide range of very short duration, high quality securities. Cash balances and deposits are placed only with highly rated credit institutions. The detailed holdings are reviewed regularly by the Investment Committee.
The Group’s maximum exposure to credit risk at 31 December 2012 is £2,221.7m (2011: £1,807.6m) being the carrying value of financial assets and cash. The Group does not use credit derivatives or similar instruments to mitigate exposure. The amount of bad debt expense relating to policyholder debt charged to the income statement in 2011 and 2012 is insignificant.
Financial institutions – Money market funds AAA 1,025.4 862.1 Financial institutions – Credit institutions AAA 60.1 – Financial institutions – Credit institutions AA 169.2 178.2 Financial institutions – Credit institutions A 506.4 98.0 Financial institutions – Credit institutions BBB 57.1 20.8 Reinsurers AA 117.8 –
• Liquidity risk 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.
A breakdown of the Group’s financial liabilities – trade and other payables is shown in note 9. In terms of the maturity profile of these liabilities, all amounts will mature within 3 – 6 months of the balance sheet date. (Refer to the maturity profile at the start of this note for further detail.)
In practice, the Group’s Directors expect actual cash flows to be consistent with this maturity profile except for amounts owed to co-insurers and reinsurers. Of the total amounts owed to co-insurers and reinsurers of £723.5m (2011: £579.4m), £609.6m (2011: £432.9m) is held under funds withheld arrangements and therefore not expected to be settled within 12 months.
A maturity analysis for insurance contract liabilities is included in note 4.
• Foreign exchange risks Foreign exchange risks arise from unfavourable movements in foreign exchange rates that could adversely impact the valuation of overseas assets.
The Group is exposed to foreign exchange risk through its expanding operations overseas. Although the relative size of the European and 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 in foreign currencies remain exposed.
The Group’s exposures to net assets held in euros and dollars at the balance sheet date were £13.3m and £46.7m respectively.
Fair value For cash at bank and cash deposits, the fair value approximates to the book value due to their short maturity. For assets held at fair value through profit and loss, their value equates to level 1 (quoted prices in active markets) of the fair value hierarchy.
Cash at bank and in hand 216.6 224.6 Total cash and cash equivalents 216.6 224.6
6. Other Revenue 6a Accounting policy (i) Ancillary and other revenue: Ancillary and other revenue includes revenue earned on the sale of ancillary products, administration and other charges paid by the policyholder, referral fees, revenue from policies paid by instalments and vehicle commission charges paid by co- and reinsurers. Revenue is credited to the income statement over the period matching the Group’s obligations to provide services. Where the Group has no remaining contractual obligations, the revenue is recognised immediately. An allowance is made for expected cancellations where the customer may be entitled to a refund of ancillary amounts charged.
Insurance contract expenses, which comprise of the acquisition costs, vehicle commissions and operating expenses referred to above are included in the income statement net of recoveries from co-insurers and reinsurers.
Total expenses and share scheme charges 77.3 157.9 235.2 62.9 144.5 207.4
Ancillary sales expenses 35.9 33.8 Price comparison operating expenses 85.5 79.9 Other expenses 15.9 12.2
The £26.7m (2011: £26.7m) administration and marketing costs allocated to insurance contracts is principally made up of salary costs.
Insurance contract expenses from above 77.3 62.9 Add: claims handling expenses 10.8 11.9 Adjusted expenses 88.1 74.8 Net insurance premium revenue 498.9 445.8 Reported expense ratio 17.7% 16.8%
7c Staff costs and other expenses Included in gross expenses, before co-insurance arrangements, are the following: 31 December £m 31 December £m
Depreciation charge: – Owned assets 5.4 5.4 – Leased assets 1.2 0.7 Amortisation charge: – Deferred acquisition costs 48.0 41.8 Operating lease rentals: Auditor’s remuneration (including VAT): – Fees payable for the audit of the Company’s annual accounts – – – Fees payable for the audit of the Company’s subsidiary accounts 0.3 0.2 – Fees payable for other services 0.3 0.3 Net foreign exchange losses – 0.8
(ii) The Discretionary Free Share Scheme (the DFSS) Under the DFSS, details of which are contained in the remuneration policy section of the remuneration report, individuals receive an award of free shares at no charge. Staff must remain in employment until the vesting date in order to receive shares. The maximum number of shares that can vest relating to the 2012 scheme is 2,149,566 (2011 scheme: 1,791,234).
The range of awards is as follows: • If the growth in EPS is less than the RFR, no awards vest • EPS growth is equal to RFR – 10% of maximum award vests • To achieve the maximum award, EPS growth has to be 36 points higher than RFR over the three year period.
Total awards committed 8,388,307 *1 – being the maximum number of awards expected to be made before accounting for expected staff attrition.
Number of free share awards vesting during the year ended 31 December 2012: Original Awards
(ii) Deferred tax: 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. It is calculated at the tax rates that have been enacted or substantially enacted by the balance sheet date, or that are expected to apply in the period when the liability is settled or the asset is realised.
Tax treatment of share scheme charges (3.8) (3.6) Capital allowances (1.9) (1.5) Carried forward losses (5.7) (2.6) Other differences (3.8) (2.6) Deferred tax (asset) at end of period (15.2) (10.3)
The UK corporation tax rate reduced from 26% to 24% on 1 April 2012. The average effective rate of tax for 2012 is 24.5% (2011: 26.5%). It will fall to 23% in April 2013, and is expected to fall to 22% in April 2014 although this change has not yet been substantively enacted. Deferred tax has therefore been calculated at 23% where the temporary difference is expected to reverse after this date.
Tax treatment of share scheme charges (1.3) (1.9) Capital allowances 0.4 0.2 Carried forward losses 3.1 1.3 Other difference 1.2 (0.3) Net deferred tax credited/(charged) to income 3.4 (0.7)
9. Other assets and other liabilities 9a Accounting policy (i) Property and equipment, and depreciation All property and equipment is 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: Motor vehicles – 4 years Fixtures, fittings and equipment – 4 years Computer equipment – 2 to 4 years Improvements to short leasehold properties – 4 years
(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 indications of impairment. If any such indications 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 are recognised through the income statement.
(iv) Intangible assets: Goodwill All business combinations are accounted for using the purchase 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.
The Goodwill held on the balance sheet at 31 December 2012 is allocated solely to the UK car insurance segment.
The value in use calculations use cash flow projections based on financial budgets approved by management covering a three year period. Cash flows beyond this period are considered, but not included in the calculation. The discount rate applied to the cash flow projections in the value in use calculations is 9.0% (2011: 11.3%), based on the Group’s weighted average cost of capital, which is in line with the market (source: Bloomberg).
Notes to the Financial Statements continued 84 Admiral Group plc Annual Report 2012
The net book value of assets held under finance leases is as follows: 31 December £m £m
Trade receivables 54.8 51.1 Prepayments and accrued income 0.5 1.0 Total trade and other receivables 55.3 52.1 9e Trade and other payables £m £m
Trade payables 13.0 12.1 Amounts owed to co-insurers and reinsurers 723.5 579.4 Finance leases due within 12 months 0.8 0.9 Other taxation and social security liabilities 22.9 21.9 Other payables 71.5 51.0 Accruals and deferred income (see below) 174.8 191.3 Total trade and other payables 1,006.5 856.6
Of amounts owed to co-insurers and reinsurers, £609.6m (2011: £432.9m) is held under funds withheld arrangements.
9f Obligations under finance leases Analysis of finance lease liabilities: At 31 December 2012 At 31 December 2011
9g Financial commitments The Group was committed to total minimum obligations under operating leases on land and buildings as follows: Operating leases expiring £m £m
Within one year 0.2 – Within two to five years 12.3 12.0 Over five years 15.5 20.3 Total commitments 28.0 32.3
In addition, the Group had entered into contracts at the end of 2012 in relation to the lease and fit-out of new premises in Cardiff and Newport, which are currently under construction and due for completion in 2014. There were no equivalent contracts in place at the end of 2011.
10. Share capital 10a Accounting policies (i) Share capital Shares are classified as equity when there is no obligation to transfer cash or other assets.
The dividends declared in March represent the final dividends paid in respect of the 2010 and 2011 financial years. The dividends declared in August are interim distributions in respect of 2011 and 2012.
The difference between the basic and diluted number of shares at the end of 2012 (being 688,707; 2011: 879,225) relates to awards committed, but not yet issued under the Group’s share schemes. Refer to note 7 for further detail.
1,177,519 (2011: 717,350) of these were issued to the Admiral Group Share Incentive Plan Trust for the purposes of this share scheme. These shares are entitled to receive dividends.
10e Objectives, policies and procedures for managing capital The Group manages its capital to ensure that all entities within the Group are able to continue as going concerns and also to ensure that regulated entities comfortably meet regulatory requirements. Excess capital above these levels within subsidiaries is paid up to the Group holding company in the form of dividends on a regular basis.
Capital continues to be held in equity form, with no debt.
10f Group subsidiary companies The Parent Company’s subsidiaries are as follows: Subsidiary Country of incorporation Class of shares held %
EUI (France) Limited England and Wales Ordinary 100 General insurance intermediary
Elephant Insurance Services Limited England and Wales Ordinary 100 Dormant Inspop USA LLC United States of America Ordinary 78.76% Internet insurance intermediary Comparenow.com Insurance Agency LLC
Total transactions in the course of price comparison business with Rastreator.com 0.7 0.7 Balances outstanding at 31 December 0.2 0.1
Net current liabilities (50.0) (9.1) Total assets less current liabilities 216.9 168.4
Capital and reserves 7 Called up share capital 8 0.3 0.3 Share premium account 13.1 13.1 Capital redemption reserve – – Profit and loss account 203.5 155.0
These financial statements were approved by the Board of Directors on 5 March 2013 and were signed on its behalf by: Kevin Chidwick Director Admiral Group plc Company Number: 03849958 90 Admiral Group plc Annual Report 2012
Parent Company accounting policies The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements: 1. Basis of preparation The accounts have been prepared on a going concern basis. In considering the appropriateness of this assumption, the Board have reviewed the Company’s projections for the next twelve months and beyond, including cash flow forecasts and regulatory capital surpluses. The Company has no debt.
The Admiral Group plc Company financial statements have been prepared in accordance with applicable accounting standards, under the historical cost convention and in accordance with the provisions of Section 396 to the Companies Act 2006.
The Parent Company audit fee is not disclosed in these accounts as it is disclosed in the Consolidated financial statements for Admiral Group plc, which precede them at note 7.
4. Employee share schemes: The Group operates a number of equity settled compensation schemes for its employees. For schemes commencing 1 January 2004 and after, the fair value of the employee services received in exchange for the grant of free shares under the schemes is recognised as an expense in the parent Company’s subsidiaries, with a corresponding increase in equity in the parent Company.
Issues of share capital – – – – Share scheme charges – – 23.6 23.6
Company Secretary Mark Waters Capital Tower Greyfriars Road Cardiff CF10 3AZ
Actuarial advisor Ernst & Young 1 More Place London SE1 2AF
Corporate website The Group’s corporate website is at www.admiralgroup.co.uk. A range of information about the Admiral Group is presented, including the Group’s history; financial reports and press releases; corporate responsibility and governance.
The interim results will be available on the corporate website from 29 August 2013.