One of the nation’s car insurance groups is expected to release the status of its financial health this coming week, with both revenue and pre-tax profits for the first six months of 2011 understood to be up.
Cardiff-basedmotor car insurance company Admiral, a member of the FTSE 100, includes several discount car insurance brands, such as elephant.co.uk and Diamond. Industry experts state that Admiral has increased its motor insurance market share over the past few months after it kept its prices competitive, putting its car insurance rates up less than other insurers.
Car insurance premium prices have skyrocketed across the UK due to an increase in fraudulent claim activity. Insurers additionally moved to widen their profit margins after taking a beating over the past few years, thanks to the advent of price comparison sites.
Industry experts expect Admiral to report £159.3 million in pre-tax profits for the first six months of 2011, which would be an increase of 26 per cent in comparison to the previous year’s figures. Admiral announced in its May report that turnover had increased by 56 per cent in the first three months of 2011 to £539 million, while the number of UK vehicles with cover from Admiral went up by one third to 2.9 million.
Admiral, which has in excess of 4,000 staff in Newport, Swansea, and Cardiff, also has plans to reveal if it has been able to salvage Confused.com, its price comparison website, which came under pressure last year due to poor performance of its advertising campaign in comparison to competitors Moneysupermarket, Compare The Market, and Go Compare.