One provider of discount car insurance has recently reported a 56 per cent increase in its first quarter sales as the demand for low-cost cover rose.
Car insurance comparison site owner Admiral Group Plc reported that in the first three months of 2011 to March 31 revenue climbed to £539 million. Cardiff-based Admiral stated that 2010 first quarter revenues had only been £345 million. As a result the firm’s stock rose 2.1 per cent to a total of 1697 pence at the close of the business day – the largest such increase in two weeks. Admiral was valued at about £4.6 billion as a result.
Henry Engelhardt, chief executive for Admiral, commented in a recent statement that the firm’s UK motor car insurance business had not only had a stellar first quarter but has also continued to reap the benefits of positive market conditions. Mr Engelhardt added that not only did Admiral UK grow rapidly, the firm was also able to raise its premiums.
With better underwriting and lower costs than its rivals (which include such car insurance companies as RSA Insurance Group and Aviva PLC), Admiral is looking to win over more customers by offering cheaper car insurance to to UK motorists. UK insurance premiums have risen by more than 30 per cent over the past 12 months as the number of injury claims increased. said the Automobile Association.
Admiral stated that the company’s performance in the first quarter of 2011 has put it on track to meet the consensus profit estimates made by analysts for the 2011 year. The amount of cars that the insurer covered increased to 2.9 million during the period, which represented a 33 per cent rise overall.