Admiral will dish out share bonuses worth up to £3,600 to thousands of its staff after hailing a more positive year for the insurance market, with it reeling in more customers after cutting its prices.
The company, which sells car, home, travel and pet insurance, revealed its yearly profit nearly doubled last year.
Group pre-tax profits totalled £839.2 million over 2024, 90% higher than the £442.8 million made in 2023.
It benefited from an increase in the number of customers and the amount generated in turnover last year, driven by its UK motor insurance division.
Admiral said price rises put through in 2022 and 2023, to mitigate the impact of higher inflation, paid off last year.
But inflation starting to ease at the start of the year meant the business moved to reduce prices, ahead of rivals in the market, which brought in more car insurance customers.
Motor policies surged by 15% to a record 5.7 million at the end of 2024, it said.
Insurers have blamed price rises in recent years on a sharp rise in the cost of claims, with them having to spend more on things like repair and replacement expenses.
Milena Mondini de Focatiis, Admiral’s group chief executive, said: “To remain one of the most competitive insurers for the largest number of people is a priority for us.
“We have emerged from several rather challenging years so when we saw conditions improve we were quick to respond.”
She added that the group was “one of the first to reduce prices in response to easing inflation”.
Admiral announced that more than 13,000 of its employees would each receive free share awards worth up to £3,600 through its profit share scheme.
Staff are able to sell the shares three years after receiving them, and receive dividends on the shares twice a year.
Meanwhile, Admiral told investors that it was in talks with a potential buyer for its US business, which sells motor insurance through the Elephant brand.
Elephant returned to a profit of £14.4 million last year, up from a loss of nearly £20 million the prior year.
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