14th May 2014 07:11
LONDON (Alliance News) - Admiral Group PLC Wednesday said first-quarter turnover dropped due to its UK car insurance business, partly offset by growth in its international car insurance business, as intense competition in the UK continues.
The FTSE 100 motor insurer said group turnover fell to GBP514.0 million in the three months ended March 31, compared with GBP551.0 million in the corresponding quarter a year earlier, as UK car insurance turnover fell by GBP50.0 million to GBP420.0 million. UK car insurance premiums written fell by GBP384.0 million, from GBP432.0 million. Claims developed "in line with expectations" in the UK, Admiral said.
International car insurance turnover increased to GBP54.0 million from GBP48.0 million.
Admiral said its customer numbers - which include UK car insurance vehicles, international car insurance vehicles, Gladiator UK van vehicles and UK households insured - rose by 200,000 to 3.8 million.
While the bulk of Admiral's earnings are dominated by its UK motor insurance business, it is expanding its UK household business and international operations as it seeks to reduce its reliance on the cyclical nature of its the UK car insurance market.
Chief Executive Henry Engelhardt said little has changed since Admiral's 2013 earnings, with expectations remaining "positive" and unchanged.
"The UK car insurance market remains competitive and consumers continue to benefit from reduced prices. Consistent with the reduction we reported at the 2013 full year results, our total premiums were down around 11% year-on-year. We continue to focus on customer service and retention and as a result, we were pleased to grow customer numbers by 2% in the quarter," Engelhardt said in a statement Wednesday.
"Growth outside the UK remains strong and we are happy with the progress we are making in all our international markets," he added.
Admiral shares off 0.4% at 1,442.00 pence at the open Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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