Pretax profit in 2020 rose to £638.4mln from £526.1mln the previous year as turnover climbed 2% to £3.55bn.
“Covid impacted the results in all markets in which we operate, resulting in reduced accident frequencies and lower loss ratios,” it said. “We continue to maintain a prudent approach and, as a result, benefited from strong reserve releases from past years.”
It plans to pay a final dividend of 86p, which includes a special dividend of 22.4p, up from 77p in 2019.
“Our existing customers chose to stay with us more than ever before, and we increased the share of those switching from other insurers to Admiral, resulting in over 650,000 new customers in 2020,” said Milena Mondini de Focatiis, who took over as chief executive at the end of last year.
The company noted that the Financial Conduct Authority’s market pricing study for general insurance will “predominantly” affect its motor and household products. “This is still to be finalised, but we anticipate that it will have a significant impact on the market,” it said.