Car insurance company Admiral saw it’s turnover rise by 30% to £582 million in the 3rd quarter of the financial year, but warned that higher numbers of personal injury claims would dent profits. The company, which also owns Confused.com, insures around 3.3 million vehicles, equating to just over 10% of all the vehicles on UK roads.
Admiral’s profits reached £265.5 million in 2010, with strong increases in areas including breakdown cover, personal injury insurance and referral fees. Speaking about the results, Investec Securities analyst Kevin Ryan said: “The real problem, we believe, is that the Admiral business model needs new motor policies to feed it because most of the profit comes from ancillary sales.”
The comparison site is owned by Admiral and contributed to a 23% increase in profits
Profit from referral fees was contributed to by payments from personal injury lawyers for referring customers who have had a car accident. The company said that personal injury referral fees accounted for around 6% of UK car insurance pre-tax profits.
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