annual report 2007 - the Admiral Group plc

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12 CHIEF EXECUTIVE’S STATEMENTOnce again, the key test was marketing.And, once again, we were pleased bythe results. AdmiralDirekt.de made9,000 sales with income of £1.7m, allwith a policy start date of January 1,2008. Lo and behold, the first claimoccurred the morning of January 2,2008, when one of our customers hit aboar at 5:30 a.m. I suspect this will bea first claim not soon forgotten!Project Chianti, otherwise known asThe Italian Job, is moving forward atpace with an anticipated launch laterin 2008. The operation will be basedin Rome.Gladiator grows and webegin to take calls inCanadaOther notable accomplishmentsduring the year include the growthin customer numbers of GladiatorCommercial and the creation of a callcentre in Halifax, Nova Scotia primarilyto handle evening calls from the UK.Gladiator is our commercial vehicleintermediary and it turned in aprofit before tax of £2m. However,Gladiator increased its customer basesignificantly during the year and nowboasts over 62,000 customers up from43,000 last year (+44%), which bodeswell for the futureA combination of a strong serviceethic and a four-hour time differenceled us to open a call centre in easternCanada. We now have almost 100agents on the phones, taking overfrom the UK in the early evening (midafternoonthere).Almost the end of thereportI’m proud to say that it was anothervery good year for return on capital.This is the benefit of our model,where we have reinsurers put up thecapital pro-rata for their share ofthe underwriting, but we get profitcommissions from them when wemake profits and we keep the revenuefrom everything else we do, likeConfused, for ourselves. Althoughwe do sacrifice some profit to getthis reinsurance support it gives us alayer of protection against losses andserves to make us capital efficient. Agood measure of this is our return oncapital, which in 2007 was 58% (2006:57%). Another important indicator isour return on income - 57% in 2007, upfrom 53% in 2006.Finally, the best possible tribute toour staff: the first lot of free sharesdistributed since our 2004 float willvest in 2008. We want all our staffto feel like they own part of theCompany and the best way to do thatis to give them part of the Company toown. We are very pleased that thosewho qualified in 2005 and earnedfree shares will take control of thoseshares later this year. Our staff give alot of themselves to the organisationand it is great to share the fruits of ourcommunal efforts with every person inthe Company.
ADMIRAL GROUP plc 13Last point of note, at the end of 2007we joined the FTSE 100. We are theonly Welsh Company in this elite club.In fact, we are only the second WelshCompany in history to be in the 100,the first one having been a member for9 months back in 1992-93. (I hope thatby the time you read this we’re still amember!) Our rapid rise into the FTSE100 is a tribute to all the staff acrossour six sites in five countries who arebuilding a great business by workinghard every day to give customers greatservice.Chief Executive’s Statement 08 – 13This is a very exciting time for theAdmiral Group and we’re lookingforward to another great year in 2008.Henry EngelhardtChief Executive Officer
Page 1: annual report 2007
Page 8: 8 CHIEF EXECUTIVE’S STATEMENTChie
Page 11: ADMIRAL GROUP plc 1167%. Advertisin
Page 15 and 16: ADMIRAL GROUP plc 15UKGROUP£000EUR
Page 17 and 18: ADMIRAL GROUP plc 17Profit commissi
Page 19 and 20: ADMIRAL GROUP plc 19Investments and
Page 21 and 22: ADMIRAL GROUP plc 21Reconciliation
Page 23 and 24: ADMIRAL GROUP plc 23John Sussens ga
Page 25 and 26: ADMIRAL GROUP plc 25This is supplem
Page 27 and 28: ADMIRAL GROUP plc 27During 2007, th
Page 29 and 30: ADMIRAL GROUP plc 29The Committee h
Page 31 and 32: ADMIRAL GROUP plc 31· Approved Fre
Page 33 and 34: ADMIRAL GROUP plc 33The following t
Page 35 and 36: ADMIRAL GROUP plc 35Awards made und
Page 37 and 38: ADMIRAL GROUP plc 37Corporate respo
Page 39 and 40: ADMIRAL GROUP plc 39Impact Area Usa
Page 41: ADMIRAL GROUP plc 41Manfred Aldag (
Page 44 and 45: 44 FINANCIAL STATEMENTSDirectors’
Page 46 and 47: 46 FINANCIAL STATEMENTSAppointments
Page 48 and 49: 48 FINANCIAL STATEMENTSIndependent
Page 50 and 51: 50 FINANCIAL STATEMENTSConsolidated
Page 52 and 53: 52 FINANCIAL STATEMENTSConsolidated
Page 54 and 55: 54 FINANCIAL STATEMENTSNotes to the
Page 56 and 57: 56 FINANCIAL STATEMENTSInvestment i
Page 58 and 59: 58 FINANCIAL STATEMENTSand expected
Page 60 and 61: 60 FINANCIAL STATEMENTS4. Segment r
Page 62 and 63:
62 FINANCIAL STATEMENTS5. Net insur
Page 64 and 65:
64 FINANCIAL STATEMENTSAnalysis of
Page 66 and 67:
66 FINANCIAL STATEMENTS10. Staff co
Page 68 and 69:
68 FINANCIAL STATEMENTSFactors affe
Page 70 and 71:
70 FINANCIAL STATEMENTS16. Property
Page 72 and 73:
72 FINANCIAL STATEMENTS18. Financia
Page 74 and 75:
74 FINANCIAL STATEMENTSLiquidity ri
Page 76 and 77:
76 FINANCIAL STATEMENTSiii) Effecti
Page 78 and 79:
78 FINANCIAL STATEMENTSD) Analysis
Page 80 and 81:
80 FINANCIAL STATEMENTSF) Reconcili
Page 82 and 83:
82 FINANCIAL STATEMENTS23. Obligati
Page 84 and 85:
84 FINANCIAL STATEMENTSStaff share
Page 86 and 87:
86 FINANCIAL STATEMENTS26. Analysis
Page 88 and 89:
88 FINANCIAL STATEMENTS29. Related
Page 90 and 91:
90 FINANCIAL STATEMENTSParent Compa
Page 92 and 93:
92 FINANCIAL STATEMENTSNotes to the
Page 94 and 95:
94 FINANCIAL STATEMENTS8. Reconcili
Page 96 and 97:
NotesADMIRAL GROUP plc
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