Premiums stopped falling during the first half of the year but drivers should not expect the cost of insurance to soar soon, the boss of Admiral said today.
Henry Engelhardt said that prices had tumbled over the past two years due to intense competition across the market, impacting the company’s growth as pre-tax profits rose just 1% to £183.3 million in the six months ending June 30.
He added: “In the UK there are some signs that premiums are no longer falling but we have yet to see firm evidence of an inflection point and a return to premium growth.”
Cardiff-based Admiral insures more than three million drivers in the UK and also owns the price comparison website Confused.com, which saw its revenues remain flat at £44.4 million. Its international businesses in Spain, Italy, France and the United States posted a £15.5 million loss although turnover was up 9% to £104.3 million.
Admiral said its finance director Kevin Chidwick will be moving across the pond to expand its US business; he will be replaced by his deputy Geraint Jones. The company refused to comment on reports that it plans to buy telematics specialist Insure the Box for more than £150 million.
Analysts said a deal made “strategic logic” as more drivers start to use in-car technology to lower their premiums.
