The Admiral Group plc (LON: ADM) share price plunged 9.7% after reporting a 39% drop in pre-tax profits during the 2022 financial year. The insurance company’s pretax profits fell 39% to £469.0 million from £769.0 million in 2021.
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The British financial services company revealed that its group revenues rose 5% in 2022 to £3.68 billion versus the £3.51 billion generated in 2021. However, the company’s net revenues fell 4% to £1.49 billion from £1.55 billion in the previous year.
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The above figures drove investors' adverse reaction to the annual results despite the company terming its results as being resilient. The markets disagreed with the management’s assessment, as evidenced by the decline in the Admiral share price.
Admiral’s characterisation of its resilient results is accurate, given that it grew its customer base by 11% to 9.8 million compared to 2021 when it had 8.36 million customers. The company also announced a 112.0p dividend for the year, representing a 40% decline from last year’s 187.0p dividend.
Milena Mondini de Focatiis, Amiral Group’s CEO, commented: “I am proud of the agility and adaptability that Admiral demonstrated in 2022 as it increased its customer base by 11% and delivered profits of £469 million against the backdrop of a challenging market environment. We have yet again shown focus and discipline, reacting quickly to emerging trends – we implemented price increases ahead of others in response to higher inflation whilst maintaining a conservative approach to reserving and capital management.”
The CEO further noted that Admiral continued implementing its diversification strategy, with its Admiral Money division making its first-ever profit. The firm also experienced growth in other business segments by inking new partnerships and distribution channels in international insurance markets, where it now has over two million customers.
The Admiral share price had recouped some of its earlier losses as investors digested the results, including the statements from the Group CEO and the Chairman. The company has a new chair, Mike Rogers, who will take over from Annette Court, the outgoing Chair.
*This is not investment advice.
Admiral share price.
The Admiral share price plunged 9.7% to trade at 1891.3p, from Tuesday’s closing price of 2094.5p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.