Balumba is the Group’s first overseas brand and launched in Spain in 2006. balumba.es
An upward trend in pricing does now seem to have become established with a general increase of 4% over the year as a whole. Whilst only sufficient to offset general claims inflation, this breaks a 5 year pattern of flat or even slightly falling rates. Against this backdrop we were happy to take back 5% of the underwriting risk when it came available at the end of last year, increasing the proportion of gross premiums underwritten by Admiral in 2008 from 22½% to 27½%.
A more detailed split of Group profit, including geographical analysis follows below. Each element is discussed in the following notes.
Earnings per share (EPS) Earnings per share rose 22% to 48.6p from 39.8p in 2006. The difference in the increase compared to pre-tax profit growth (which was 23.5%) is due to the issue of new share capital in the year to the trustees of the Group’s share schemes.
Of the total Group cash and investments of £491m at the end of the year (2006: £449m), £336m (2006: £258m) was held in these money market funds.
The Board complied with the Combined Code in all respects during 2007 except for Code D.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. The views of investors expressed through this dialogue are communicated to the Board as a whole 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.
John Sussens gave individual feedback to the Chairman and was able to confirm that the performance of the Chairman continues to be effective, and that the Chairman continues to demonstrate commitment to his role.
In accordance with the Company’s Articles, which provide that a set number of Directors retire by rotation and stand for re-election at each AGM, David Stevens and John Sussens will retire by rotation and seek re-election by shareholders at the forthcoming AGM.
During the year the Committee did not purchase any consultancy services but the Company Secretary circulates market survey results as appropriate.
Executive Directors are allowed, or though none currently do, to accept appointments as Nonexecutive 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 each appointment these will be retained by the Company.
Directors’ service contracts The following table summarises the notice periods relating to the service contracts of the Executive Directors serving at 31 December 2007.
Directors’ shareholdings - Audited Directors’ interests in the ordinary shares of the Company are set out below: Ordinary shares of 0.1p
The best measures of our staff’s assessment of their working environment are the surveys that they have completed. Following independent measurement by the organisations involved Admiral has received the following awards: Corporate responsibility
Financial support is an important part of our commitment to our local communities and our customers. We contribute both as a Company and as individuals through a variety of schemes.
Leagas Delaney and has been with that Company for the past 12 years.
Martin Jackson (59) Non-executive Director (A, R) Martin was appointed Non-executive Director and Chairman of the Audit Committee in August
A further special resolution passed at that meeting granted authority to the Directors to allot equity securities in the Company for cash, without regard to the pre-emption provisions of the Companies Act 1985. This authority also expires on the date of the annual general meeting to be held on 29 April 2008 and the Directors will seek to renew this authority for the following year.
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding Directors’ remuneration and other transactions is not disclosed.
Deferred acquisition costs: Acquisition costs comprise all direct and indirect costs arising from the conclusion of insurance contracts. Deferred acquisition costs represent the proportion of acquisition costs incurred that corresponds to the unearned premiums provision at the balance sheet date. This balance is held as an intangible asset. It is amortised over the term of the contract as premium is earned.
Total liabilities excluding current and deferred tax balances 597,647 6,778 (1,771) 602,654
The Company has taken advantage of the exemption in FRS 8 not to disclose transactions or balances with its 90% or more owned subsidiary undertakings on the basis that the consolidated accounts are publicly available.