annual report 2007 - the Admiral Group plc

ADMIRAL GROUP plc 15UKGROUP£000EUROPE£0002007 2006TOTAL£000UKGROUP£000EUROPE£000TOTAL£000Underwriting profit 39,976 (2,474) 37,502 28,541 (190) 28,351Profit commissions 20,448 - 20,448 19,926 - 19,926Ancillary and other netincome 91,517 1,846 93,363 79,186 76 79,262Confused.com profit 36,727 - 36,727 23,080 - 23,080Share scheme, pre-launchand other charges (4,534) (1,408) (5,942) (2,782) (495) (3,277)Financial Review 14 - 21Profit before tax 184,134 (2,036) 182,098 147,951 (609) 147,342Europe figures include the results of Balumba in Spain, and set up and pre-launch costs relatingto AdmiralDirekt (Germany) and the Italian business.Turnover, comprising total premiums written (including premium underwritten by co-insurers),gross other income and net investment return (as a measure of the combined size of the Group’sbusinesses) continued to grow strongly:UKGROUP£000EUROPE£0002007 2006TOTAL£000UKGROUP£000EUROPE£000TOTAL£000Total premium written 617,023 14,228 631,251 566,048 560 566,608Other revenue 174,641 2,237 176,878 131,536 85 131,621Net investment return 16,662 133 16,795 9,925 - 9,925Turnover 808,326 16,598 824,924 707,509 645 708,154vehicle£69 £69£m1000900800700600500400300427.3548.0638.4708.2825.0Underwriting£37.5m21%12007£182.1m20010048%2006 200702003Turnover2004200520062007Ancillary and other£87.4mA reconciliation of turnover to figures appearing in the income statement is shown at the end ofthis review.Overall growth of 16% was made up of an 11% increase in total premium, a 34% rise in otherrevenue (predominantly ancillary income and Confused.com revenue) and a 69% increase ininvestment return after a disappointing investment year in 2006. Net revenue in the incomestatement increased by 17% to £364m.Balumba (providing all the European figures above) contributed 2% of total Group turnover.