According to chief executive Henry Engelhardt, one UK motor car insurance provider has grown its market share to cover one out of every ten cars in the UK.
UK insurer Admiral has pulled even further ahead of rival car insurance companies Fortis, Esure, and Aviva. The firm, stated that it has been closing the gap between itself and the market share of the Royal Bank of Scotland’s insurance arm as well.
The RBS brands of Churchill and Direct Line have long been leaders in the discount car insurance market with around a 30 per cent combined share in 2009. By comparison Admiral’s share was approximately 7 per cent.
Mr Engelhardt recently told the Financial Times that the firm’s business has been growing at a rapid pace. As long as Admiral continues to grow in both quality and size, the chief executive saw no natural ceiling to the percentage of market share the company could gain.
There are some industry experts that have begun to question how long the insurer will be able to sustain such rapid growth, however. These analysts point out that the industry leaders have advertising budgets that number in the tens of millions in order to maintain their businesses and combat both the rising popularity of price comparison websites and the high claims inflation rate as well.
The FTSE 100 rated company has one of the highest price/earnings ratios for a publicly held company in the UK. Its initial 2004 float was 275p, while this past Friday the firm’s shares were valued at £16.37 at close.
As a founder director, Mr Engelhardt’s business stake is worth more than £60 billion, thanks to the firm’s strong stock market record. Admiral also owns popular comparison site confused.com.