Looking after
what matters most
Admiral Group Plc Annual Report and Accounts 2025
Admiral supports more than
11.8 million customers across four
countries, offering a diverse range
of financial products designed
to meet their changing needs.
We are committed to being there
for our customers at the moments
that matter most.
Our purpose framework
Strategic Report
2
Bringing the theme to life
6
About us
7
Our business segments
8
Market overview
10
Our business model
15
Chair’s statement
16
Chief Executive Officer’s statement
18
Our strategy
26
Key performance indicators
28
Group Chief Financial Officer’s review
30
2025 Group overview
33
UK Insurance review
44
European Insurance review
48
Admiral Money review
50
Other Group items
51
Group capital structure and financial position
55
Sustainability overview
74
Streamlined Energy and Carbon Reporting (‘SECR’)
76
Task Force on Climate-related Financial Disclosures
(‘TCFD’)
87
Section 172 statement
95
Non-financial and sustainability information statement
97
Principal risks and uncertainties
105
Viability statement
Corporate Governance
108
Chair’s introduction to governance
110
Board of Directors
116
Board leadership and Company purpose
129
Division of responsibilities
134
Nomination and Governance Committee report
147
Audit Committee report
154
Group Risk Committee report
159
Remuneration Committee report
162
Remuneration at a glance
164
Directors’ Remuneration Policy
174
Annual report on remuneration
191
Directors’ report
Financial Statements
197
Independent Auditor’s Report
206 Consolidated Income Statement
207 Consolidated Statement of Comprehensive Income
208 Consolidated Statement of Financial Position
209 Consolidated Cashflow Statement
210
Consolidated Statement of Changes in Equity
212
Notes to the consolidated financial statements
311
Appendix 1 to the Group financial statements
315
Appendix 2 to the Group financial statements
317
Parent Company financial statements
320 Notes to the Parent Company financial statements
Additional Information
329 Glossary
Our purpose
In this document
Read more about our purpose
on page 55
Financial highlights1
Group profit before tax 2
£957.9m
EPS2 (pence)
247.4p
2025
2025
2024
2024
RoE2
53%
Insurance revenue
£4,979m
2025
2025
2024
2024
Turnover3
£5.90bn
Group Risks3,4 (million)
11.8m
2025
2025
2024
2024
Dividend per share2 (pence)
205p
Solvency ratio1, 2 (post dividend)
193%
2025
2025
2024
2024
Sustainable highlights
Gender split across the Group5
(2024: 51% female, 48% male)
Emissions6 (tonnes CO2 per employee)
0.08 tonnes
2025
2024
Net Promoter Score (‘NPS’)7
Group average across our operations (2024: >45)
>50
1 All figures include continued operations only, with prior-year comparatives restated to exclude discontinued operations relating to the
sale of Elephant – see page 31 for further details.
2 For the year ended 31 December 2024, Group profit before tax, EPS, RoE, Dividend per share and Solvency ratio as reported, included a
gain of £100 million related to the change in Personal Injury discount rate (‘Ogden’) from -0.25% to +0.5%. The estimated impact of Ogden
in 2025 is circa £30 million.
3 Alternative Performance Measures – refer to the end of the report, page 329 for definition and explanation.
4 Group risks – refer to the end of the report, page 329, for definition and explanation.
5 For 2025, 1% (2024: 1%) includes non-binary and other genders, and colleagues who’d prefer not to say.
6 Scope 1 and 2 market-based emissions per employee per SECR. 2024 SECR figures restated to reflect 12 months of actual data.
See page 74 for further explanation.
7 Relational NPS.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
2025 financial and strategic highlights
Admiral Group Plc Annual Report and Accounts 2025
1
£958m
£827m
247.4p
212.8p
53%
56%
£4,979m
£4,553m
£5.90bn
£5.95bn
11.8m
11.0m
205p
192p
193%
203%
51%
Female
48%
Male
0.08
0.07
We look after
what matters most
From our customers, our colleagues, and the
communities we serve, our distinctive culture
and the dedication of our colleagues underpin
everything we do. We believe that people who
like what they do, deliver the best results,
and it is our collective success as a team that
continues to drive our business forward.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
2
Charging ahead:
Where repairs meet the road to a greener future
This year, our UK Insurance business,
Admiral, launched its first co-branded repair
centre in Manchester in partnership with
garage network The Vella Group.
The launch marks the start of a wider rollout, with plans
to extend the co-branded model to other trusted partners
across the UK so that we can help even more customers
back on the road as quickly and safely as possible.
Exclusively serving Admiral customers, the state-of-the-
art motor repair facility is also equipped for electric vehicle
(‘EV’) repairs, featuring specialist tools, EV bays, charging
facilities and trained technicians.
This aligns with our wider focus on working with repair
partners to reduce the environmental impact of motor
claims, for example, by encouraging the adoption of
science-based targets to accelerate industry-wide
decarbonisation.
The Vella Group is certified as carbon neutral to the
PAS 2060 standard, with the new repair centre employing
UV and ambient cure paint systems, which use less
energy for heating than traditional methods, therefore,
helping to lower emissions.
The repair centre enhances Admiral’s ability to deliver
expert repairs in a timely manner and upholding its
position as a leading EV insurer. We’re continually
investing in a repair network that supports our growing
customer base and helps drive us towards a more
sustainable future.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Our customers
Admiral Group Plc Annual Report and Accounts 2025
3
Read more about how we are becoming a more
sustainable business on page 55
Legendary loyalty:
25 years of being one of the UK’s Best Workplaces
In 2025, our UK business celebrated
25 consecutive years of being named one
of the UK’s Best Workplaces by Great Place
To Work®.
This remarkable achievement resulted in it being awarded
the Legendary Status™ in recognition of consistently
being a great employer for colleagues.
We are proud to have so many colleagues who have
chosen to grow their career with us. We spoke to our
UK Head of Customer Support and Insights, Mike King,
who has been a part of the Group for the last 25 years
to understand why he believes that Admiral is a great
place to work.
“Over the last 26 years, I’ve had the privilege of working in
areas and roles across the Group. I began my journey in
motor claims, assisting customers with accident reports
and queries, before working my way up to being a manager
and then Head of Claims Service. During this time, I led the
department dedicated to supporting our customers through
the claims process. After spending 17 years in claims, I had
the incredible opportunity to move to Canada to support the
expansion and upskilling of teams that handle complaints
and support vulnerable customers in the UK.
When I returned to the UK, I spent another two years
in claims where I spearheaded the digital acceleration
of online claims notifications and total loss settlements,
which allowed us to get customers back on the road
quicker than ever.
In my current role, I manage customer complaints and
drive continuous improvement through detailed root
cause analysis to ensure that we are providing customers
with a seamless service and good outcomes.”
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Our colleagues
Admiral Group Plc Annual Report and Accounts 2025
4
Admiral is a company that truly values
its people, providing them with endless
opportunities to grow and experience
different areas of the business.”
Partnering with the King’s Trust to increase
digital skills and employment
Since 2022, Admiral has partnered with
The King’s Trust to deliver the Digital Skills
Pathway Cymru, which has supported over
800 young people in Wales. The partnership
focuses on supporting disadvantaged young
people into sustainable employment by
building their confidence and skills.
Our commitment has seen us invest over £380,000
in the last three years, leading to 350 positive outcomes,
meaning that 350 of these young people have benefitted
from employment, education or training. This is helping
those furthest from the labour market build confidence
and vital digital skills for the future.
Our colleagues have supported The King’s Trust further
by using their Impact Hours (working hours that can be
used for volunteering and charity work) to support young
people through CV reviews, mock interviews and digital
skills events.
In 2025, our impact was recognised as Admiral was
awarded The King’s Trust Rising Star Award and Gold
Patron Partner status, celebrating our dedication to
empowering young people and driving positive change
in our communities.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Our communities
Admiral Group Plc Annual Report and Accounts 2025
5
My confidence grew over the five weeks
and I went from feeling shy and timid
to feeling much more confident.”
Ben
Young person who completed a Get Into:
Digital Skills programme
Admiral Group plc is a well-established financial services
provider offering Motor, Household, Travel, and Pet Insurance,
as well as personal lending services. We serve customers
in four countries: the UK, France, Italy, and Spain.
United Kingdom
Europe
France
Italy
Spain
Strategic Report
Corporate Governance
Financial Statements
Additional Information
About us
Admiral Group Plc Annual Report and Accounts 2025
6
People employed globally:
>15,000
Customers worldwide:
11.8 million
Turnover worldwide:
£5,896 million
UK Motor Insurance
Admiral is one of the leading
motor insurers in the UK.
Brands
Customers:
5.8 million
(2024: 5.7 million)
Turnover1:
£4.2 billion
(2024: £4.5 billion)
UK Home, Pet and
Travel Insurance
Admiral’s business continues
to grow in these product lines.
Brands
Customers:
3.8 million
(2024: 3.1 million)
Turnover1:
£756 million
(2024: £613 million)
European Insurance
Admiral has Motor Insurance businesses
in Italy, France, and Spain, a Household
Insurance business in France, and a Pet
Insurance business in Italy.
Brands
Customers:
1.9 million
(2024: 2.0 million)
Turnover1:
£674 million
(2024: £640 million)
Admiral Money
Admiral offers unsecured personal loans,
car finance products, and secured
homeowner loans.
Brand
Customers:
200,000
(2024: 155,000)
Gross balances:
£1.46 billion
(2024: £1.17 billion)
1 Alternative Performance Measures – please refer to the end of the report for definition and explanation.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Our business segments
Admiral Group Plc Annual Report and Accounts 2025
7
General Insurance markets in the countries in which we operate continue to evolve through
consolidation, technological advancement, the continued growth of direct distribution
(particularly in the UK), and evolving mobility trends. Admiral remains well positioned
to benefit from these shifts by leveraging our strengths across customer centricity,
underwriting excellence, agility, and innovation.
Generative and agentic
artificial intelligence
UK direct insurance market
Generative and agentic artificial intelligence (‘AI’) is
fundamentally reshaping consumer behaviours across
industries, with potential implications for how individuals
engage with insurance, as well as likely impacts on
efficiency. While predictions vary, future scenarios may
include ‘hyper-shopping’ and shifts in traditional loyalty
dynamics and distribution.
In addition, customer expectations for seamless digital
experiences are rising, especially among younger
generations. Admiral continues to invest in product
innovation and process optimisation, leveraging modern
technology stacks, cloud-based infrastructure, and agile
delivery models to drive increased responsiveness
to market and regulatory developments, efficiency,
competitiveness, and better customer outcomes.
Over the past ten years, the UK direct insurance market
has demonstrated consistent growth, with medium-term
forecasts indicating further expansion. Within this
landscape, price comparison websites are capturing an
increasing share of new business, reinforcing Admiral’s
competitive edge given our longstanding strength in
this channel.
Although the distribution landscape may be impacted
by AI in the future, we expect price comparison
websites to continue to play a dominant role in the UK
insurance market in the medium term, in light of
governance, regulations, and the complexity of pricing
and claims dynamics.
Motor and mobility trends continue to evolve
Electric vehicles account for a growing proportion of
new registrations, with the shift expected to accelerate
as the required infrastructure expands. Admiral continues
to lead in the UK EV insurance market with an estimated
20% market share and good claims performance.
Autonomous vehicles are expected to gain traction in
commercial applications such as RoboTaxis and logistics
in the short to medium term, with broader personal
adoption in the UK and Europe likely to require a longer
time horizon and material progress across regulations,
technology, and consumer mindset.
Admiral continues to follow these trends closely,
while strengthening the skills that will likely be required
to win. This includes partnering with car manufacturers,
industry disruptors, underwriting the UK’s largest
RoboTaxi trials with Wayve, while also focusing
on connected car technology, telematics capabilities,
and continuously enhancing risk selection.
This approach not only positions Admiral at the forefront
of insuring next-generation mobility but also enables
the Company to embed insurance directly into the
customer journey, whether through commercial fleets,
Mobility-as-a-Service platforms, or emerging ownership
models like leasing and subscription. By leveraging
data-driven insights and digital innovation, Admiral aims
to deepen customer relationships, personalise insurance
offerings, and play a pivotal role in the evolving
mobility ecosystem.
Finally, in an ever-changing landscape, the need for
strong governance, responsible business practices,
ethical and transparent data use, and robust risk
management will remain paramount. Admiral’s proven
track record in navigating industry and regulatory
changes reinforces our reputation as a trusted
and forward-thinking market leader.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Market overview
Admiral Group Plc Annual Report and Accounts 2025
8
Weathering the storm:
building flood resilience for a more secure future
As a home insurer, we see the impact that
extreme weather is having on our customers’
properties and lives. We believe that we
have an important role to play in building
flood resilience by working with government
and industry to help people better
understand their flood risk.
We are proud to sponsor flood support guidance
specialists BeFloodReady's and Flood Re’s Floodmobile,
which aims to help people better understand and manage
their flood risk. The Floodmobile shows people how
property flood resilience equipment can help properties
withstand flooding, and travels around the UK to raise
awareness and give people the opportunity to seek
advice from experts.
In October, our Director of Home, Travel and Pet
Insurance, Scott Cargill, attended a roundtable with the
Minister for Water and Flooding, Emma Hardy, and other
senior insurance leaders to discuss how insurers can
work with other sectors and government to prevent
severe flooding.
As well as this, senior members of our household team,
including Household Director Noel Summerfield, visited
customers impacted by Storm Claudia in Monmouthshire
in December to inspect damage and assess progress on
their claims.
Our purpose is to help more people to look after their
future, and so we’re committed to raising awareness
about flood prevention so that our customers’ homes
are better protected against extreme weather events
today and in the future.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
9
Everything starts with our purpose:
Help more people to look after their future.
Always striving for better, together.
In 2025, we remained focused on looking after what matters most – our customers, our people,
our communities, and our planet. This purpose underpins our strategy, culture, and operations,
guiding how we serve our customers, empower our people, and create long-term value for
all stakeholders.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Our business model
Admiral Group Plc Annual Report and Accounts 2025
10
Read more on page 12
Read more on page 13
What we do:
We protect what matters most. From car and home, to travel and pet
insurance, plus personal lending solutions – we help customers feel
at ease every day.
We generate income through multiple channels: investing premiums, offering ancillary
add-ons, charging fees across the lifetime of a policy, and providing unsecured personal loans
via Admiral Money. We also invest in new ventures through Admiral Pioneer, which explores
innovative products and future revenue streams.
Our customers
We offer a wide range of insurance and lending
products tailored to meet specific customer needs.
Our core business centres on car, van, home, travel,
and pet insurance, primarily sold through price comparison
websites, with a smaller share purchased directly
or via brokers and agents. Additional income is
generated through ancillary products, lending services,
and policy-related fees.
Managing risk
Customers pay a fixed premium to insure against defined
risks. We pool these risks efficiently and share a portion
with external reinsurers and co-insurers. This structure
provides protection against large losses and enables us
to earn profit commission when the portfolio performs well.
Reinsurance is a cornerstone of our capital strategy and
a key driver of long-term success.
Managing investments
We invest collected premiums prudently to generate stable
returns. Our strategy prioritises capital preservation and
low volatility relative to liabilities. The portfolio maintains
high credit quality and liquidity, ensuring we can meet
obligations and support customers when needed.
Managing claims
We work closely with customers throughout the claims
journey, collaborating with partners and suppliers
to deliver fair, timely outcomes. We continue to invest
in our digital capabilities, for example we have launched
a WhatsApp initiative for our motor customers in the UK
to ensure our customers are well-informed of any updates.
This approach reinforces value, trust and ease,
and supports our reputation for excellent service.
Our people
People are central to our success. We foster a supportive
and inclusive culture that encourages growth and
development. Our values include openness, equality, and
doing the right thing, which are reflected in how our teams
serve customers and collaborate across the business.
Our shareholders
Profitability stems from the gap between revenue and
costs. Most profits are returned to shareholders as
dividends, while a portion is reinvested to strengthen
capabilities and pursue new growth opportunities.
This balance supports sustainable value creation.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Our business model continued
Admiral Group Plc Annual Report and Accounts 2025
11
Our drivers of success
These enable us to fulfil our purpose, maximise the value we deliver to stakeholders,
and distinguish ourselves as the preferred insurance provider.
Excellent customer service
We are committed to creating high-quality, sustainable
insurance products that are easy to understand and are
accessible to all. Through clear and simple communication,
our customer-facing colleagues ensure customers receive
all relevant information, including any limitations, so they
can make informed choices.
We continuously review our practices against internal policies
and regulatory standards to ensure our sales and claims
processes remain responsible and transparent. Customer
satisfaction is regularly measured using key benchmarks
such as the Net Promoter Score® (‘NPS’), helping us track
performance and drive ongoing improvements.
Unique Company culture
Admiral’s culture is built on four core pillars: communication,
equality, reward and recognition and fun, which underpins
our reputation as a Great Place to Work®.
We champion open communication across all levels of
the organisation, with leadership embracing an open-door
approach and initiatives like ‘Ask Milena’ offering colleagues
direct access to our Group CEO. Our inclusive culture
empowers individuals to thrive and be themselves,
supported by employee-led diversity and inclusion groups
that actively shape our workplace policies.
From the beginning, we’ve believed that, ‘if people like
what they do, they do it better.’ Our ‘Ministry of Fun’ brings
colleagues together through events that foster connection.
Our share ownership scheme is a cornerstone of how we
recognise and reward contribution. When colleagues own
a stake in Admiral, they share in its success.
Operational excellence
We take pride in offering inclusive, good-value financial
products that meet customer needs and encourage greener
behaviours. Our decision making is guided by robust risk
selection and data analytics, underpinned by decades
of claims experience and underwriting expertise.
Efficient claims management is supported by a culture
of continuous improvement and proactive engagement.
We remain focused on building sustainable, profitable
businesses through financial discipline. A cost-conscious
mindset is embedded across the organisation, contributing
to our competitive expense ratio.
Efficient capital employment
Our capital strategy is strengthened by longstanding
partnerships with reinsurers and co-insurers, built on a track
record of strong underwriting and effective risk management.
By sharing risk, we reduce capital requirements with
maintaining robust protection against losses, thus supporting
our commitment to delivering strong shareholder returns.
Consistent, profitable growth
Our prudent reserving philosophy plays a key role in our
long-term successes. Reserves are released gradually
as claims and defaults evolve across our businesses.
We embrace a culture of innovation and organic growth,
using a test-and-learn approach to explore opportunities,
validate assumptions and apply insights. Our focus on
lasting value creation is driven by a commitment to
delivering positive outcomes from stakeholders. As their
needs change, we adapt to remain a responsible, profitable,
and sustainable business.
2025 highlights
Top 3
Trustpilot
(or equivalent)
for UK and Europe1
2nd
in Great Place
To Work® Super
Large company2
(2024: 6th)
>50
Group average NPS3
(2024: >45)
96%
of colleagues feel they
are treated fairly regardless
of race or sexual
orientation⁴ (2024: 97%)
273%
Total shareholder return
over the last ten years5, 7
(2024: 285%)
193%
Solvency ratio6, 7
(2024: 203%)
1 Trustpilot for UK, ConTe, Seguros and Admiral Money, relative
to comparable competitors and Opinion Assurance for L’olivier.
2 Great Place to Work® award.
3 Relational NPS.
4 Great Place To Work® Survey result.
5 Total shareholder return is defined as the percentage change
over the period, assuming reinvestment of income.
6 For the year ended 31 December 2024, Solvency ratio included
a gain of £100 million related to the change in Personal Injury
discount rate (‘Ogden’) from -0.25% to +0.5%. The impact of
Ogden in 2025 is circa £30 million.
7 Alternative Performance Measures – refer to the end of the
report for definition and explanation.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Our business model continued
Admiral Group Plc Annual Report and Accounts 2025
12
Creating value for our stakeholders
Our customers
Our people
Our customers’ needs guide the development of our
products and services. We are committed to delivering
sustainable, high-value financial solutions that empower
more people to take care of their future.
Our unique culture promotes transparency, supports
happier and more productive employees, and ultimately
drives better outcomes for all stakeholders.
Value created in 2025
• We introduced our new Customer Promise, built on the
principles of value, trust, and ease. Its purpose is to shift
our focus from delivering customer service excellence
to becoming a truly customer-centric organisation
• During storm and flood events in the UK, we managed
approximately 7,500 claims. Even at the height of these
surge periods, we maintained an average weekly call
answer rate of 98%, reflecting our strong commitment
to being there when our customers need us most.
Value created in 2025
• Admiral was proud to be recognised as the 2nd best
workplace in the Super Large category by Great Place
to Work® and honoured with the Legendary Status
award for being part of the programme for 25
consecutive years in the UK¹
• We launched our new Reward Framework to bring
greater structure, consistency, and transparency to
pay and recognition. The rollout introduced job families,
job levels, and salary ranges.
Business:
shareholders
Society:
environment and communities
Market engagement is key to helping investors understand
our investment case, strategy, and performance, and is an
opportunity for us to listen to their views.
Acting responsibly and reducing our environmental
impact are central to us. A shared culture of giving
and accountability across the Group drives positive, lasting
change for our people and communities.
Value created in 2025
• We met with more than 300 shareholders,
investors and analysts across more than 65 events
including roadshows, conferences, sales forces
and regular meetings
• Group Chair met with Top Twenty shareholders as part
of a corporate governance roadshow
• We welcomed investors at our Cardiff head office,
giving them the opportunity to meet leaders from across
the business and experience our unique culture.
Value created in 2025
• We contributed over 45,000 volunteering hours
in local communities²
• We donated over £6 million to our communities
• We invested £1.7 million into employability programmes
and supported over 3,000 people into jobs outside
of our organisation.
1 Great Place To Work® award result.
2 Volunteering hours completed by UK colleagues.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Our business model continued
Admiral Group Plc Annual Report and Accounts 2025
13
Investing in talent to help more people back onto the road
We work hard to get customers back on the
road as quickly and safely as possible after
an incident, and there are a wide range of
roles which ensure that we deliver a seamless
customer experience.
We recently launched a motor engineering apprenticeship
programme, and two of our apprentices, Lauren and
Ellesha, and Network Support Operations Manager Craig,
share how their work benefits customers and the
importance of increasing opportunities for women
in engineering.
Craig, tell us why you introduced
this apprenticeship?
We introduced this engineering apprenticeship because
we saw a strategic opportunity to enhance our workforce,
increase diversity and address skill gaps within the industry.
By investing our time in apprentices, we can develop
a pipeline of skilled talent tailored to our business needs
and continue to foster the culture of learning and
development that exists across the Group.
What inspired you to pursue a career
as an engineer?
Ellesha: Having worked in a body shop and achieved
a qualification in car mechanics, this role felt like the perfect
opportunity to bring together my love of cars and passion
for helping people.
Lauren: It’s been my dream to become an engineer because
of my love for cars and having grown up with my dad who
works in vehicle body repair. I’m really proud to be following
in his footsteps and being able to do this alongside other
women has made the process even more enjoyable.
How does your work support Admiral?
Ellesha: The claims process is the moment of truth for
customers. We’ve been learning how to review a repair
estimate, for example, by using the Thatcham research
methods and Code of Practice. This skill is key to ensuring
that the cost estimates given by our repair network are
accurate, identifying the safest option for our customers.
Lauren: Learning automotive vehicle body processes,
such as welding and fabricating, are essential skills that
Admiral needs to be able to quickly support customers
whose vehicles have been involved in an incident.
Training new engineers from within the business also
shows Admiral’s commitment to internal talent development
and the progression routes that are available here.
What do you love about working at Admiral?
Ellesha: What I love most about Admiral is the supportive
culture and the people. It’s clear that they value their
people, and I truly believe that ‘people who like what they
do, do it better’. The company genuinely values diversity,
inclusion and fun, creating an environment where everyone
feels welcomed and respected.
Lauren: I’ve been at Admiral for 13 years and truly believe
it’s a company that values their colleagues and is a place
where people can have fun, work hard, and be rewarded
for their achievements. I’ve always wanted to get to where
I am now and it goes to show that with dedication and
effort, you can do that at Admiral!
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
14
Putting people first
– because that’s
what matters most
2025 has been another excellent year for the
Group. Despite falling prices in the UK motor
insurance market, ongoing political and
regulatory scrutiny of the sector and uncertain
macroeconomics, the Group has continued
to perform strongly by staying focused on its
key objectives.
As a leading financial services provider, Admiral’s purpose is
simple: to help more people look after their financial futures
by supporting them as quickly and safely as possible when
misfortune strikes. Our colleagues strive every day to bring
this promise to life when our customers most need us.
The markets and countries in which the Group operates
continue to shift – through consolidation, rapid advances
in technology, new mobility trends and changing consumer
behaviour. However, Admiral’s customer focus, combined
with its underwriting and operational expertise, proven
agility and willingness to invest and innovate using data
and technology, mean we are well-placed to anticipate and
respond to these changes. That willingness to adapt can be
seen in our investment in technology and predictive AI, our
growing electric vehicle book, our progress in connected-
car and telematics technology, and our long-standing
partnership with Wayve.
To continue to stay ahead, the Group is also actively
managing its portfolio of businesses and focussing on
markets where it can win. The Group has now completed
the acquisition of More Than and the sale of its US
business. We wish the Elephant team well as they embark
on their new chapter under the ownership of JC Flowers.
The Group now serves nearly 12 million customers in four
countries with multiple products. Our ongoing focus will be
on countries, customer segments and products where we
believe we have the right to win.
In early 2026 we announced our agreement to acquire
Flock, a fast-growing digital fleet insurance provider with
an innovative telemetry-based proposition. The transaction,
which is subject to regulatory approval, builds on the
Group’s existing expertise in telemetry in the personal lines
market, allowing the business to support a broader set
of customers as mobility trends change.
As a group, we are committed to positively impacting the
environment and our communities. As a provider of home
insurance, our colleagues see the devastating impact
of flooding and support those who have been impacted.
Through the Group’s new partnership with the National
Trust we hope to make a real difference to people through
natural flood management initiatives.
Admiral’s unique culture continues to be one of its greatest
strengths. This year, we were once again recognised as
one of the best workplaces in the world, with the UK
business celebrating its 25th consecutive year on the list –
achieving “legendary" status. This recognition reflects the
commitment our colleagues show to each other every day.
At the start of 2026, it was announced that Geraint Jones
will retire from his role as Group CFO this summer. I would
like to extend my sincere gratitude to Geraint as he has
helped to guide the company through a period of consistent
and sustained growth. We are pleased that he will remain
with the Group in a part time capacity and the Board are
looking forward to working even more closely with his
successor, Rachel Lewis.
In 2025, Paola Bonomo and Carlos Selonke joined the
Group Board. Both have extensive experience in digital
transformation, gained whilst working for well-known
consumer-facing brands. I am confident in the quality
and mix of skills of the Board and our ability to leverage
this deep knowledge and insight to support the business
to deliver its commercial and strategic objectives.
The Group’s strong 2025 performance was the result of
a true team effort. The dedication and agility of Admiral
colleagues, coupled with the investment the Group has
made, and continues to make, into its technology and core
competencies mean that it is well-positioned to continue
to deliver long-term sustainable growth.
Mike Rogers
Group Chair
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Chair’s statement
Admiral Group Plc Annual Report and Accounts 2025
15
Delivering results
that matter through
focus and discipline
“We deliver strong results,
drive growth, good
customer outcomes and
invest in our capabilities
and people so we are
well-positioned to succeed
in a fast-evolving world.”
Milena Mondini de Focatiis
Group Chief Executive Officer
2025 was another remarkable year for Admiral.
We achieved record profits of £958 million
up 16 percent, underpinned by strong
performances across the Group, while
growing our customer base by 7 percent
and continuing to provide great service.
We also made important progress beyond financial results,
advancing our strategy, strengthening our platform for
growth, and investing in capabilities that position Admiral
well for the future.
The UK motor market has remained softer for longer than
expected, but our strong focus and execution drove
excellent results in our core business. Our UK other personal
lines businesses and Admiral Money contributed £88 million
in profit. Europe also performed well, with strong growth and
profitability in France and a rapid recovery in Italy.
We further increased our returns to shareholders, with
a 7 percent increase in dividend per share, and maintained
a strong capital position, with a solvency ratio at 193%.
2025 marked an acceleration in our strategic progress.
We completed the integration of More Than, which is
now contributing positively to our results, and finalised the
sale of Elephant. Though it is always hard to say goodbye
to colleagues, we believe this outcome benefits both
businesses, letting us focus on exciting opportunities
in the UK and Europe.
Our performance
Group profit before tax1
£958 million
2025
2024
Group customer numbers1
11.8 million
2025
2024
1 Continuing operations only, excludes discontinued operations
as a result of the sale of Elephant see page 31 for further details.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Chief Executive Officer’s statement
Admiral Group Plc Annual Report and Accounts 2025
16
£958m
£827m
11.8m
11.0m
In early 2026, we announced plans to acquire Flock, a fast-
growing digital fleet insurance provider we have invested
in and partnered with since 2024. Flock’s telemetry-based
insurance uses data to improve safety and performance.
Combining their sector expertise and technology with our
data, claims management, and pricing strengths, we aim
to grow in a large market ripe for disruption, and support
our “safer driving” ambitions.
Another key milestone was the forward-flow arrangement
in Admiral Money, which allows us to continue to grow,
but in a capital-efficient way similar to our insurance model.
We accelerated our investment in artificial intelligence and
established a GenAI Centre of Excellence that is scaling
priority use cases and equipping our people with the right
tools. Early insights suggest significant potential for
efficiency and productivity gains. Across the Group, we are
now managing over 150 GenAI initiatives across different
businesses and functions, including real-time support for
more than 4,000 colleagues and the first implementations
of agentic technology.
Over the last five years, since the Group strategy was
announced in 2020, turnover has grown by 87 percent,
profit by 56 percent, and our customers by 58 percent.
Since the start of 2020, we have also returned £3.2 billion
of capital to shareholders.
Admiral is now more resilient and diversified, with over
half our customers from lines or geographies other than
UK Motor, contributing nearly £100 million to profits in 2025.
Our UK Motor business continues to grow, maintaining
a more than 20-point combined ratio advantage over
the market.
Since 2020, we have significantly expanded our
addressable markets, moving into broker channels in
Europe and launching pet insurance and commercial
insurance in the UK. The markets we operate in have a
combined size of around £130 billion, so there is plenty
of room to grow.
We continue to enhance our motor offering and invest
early in emerging trends, establishing a leading position
in electric vehicle insurance and partnering with Octopus
to insure salary‑sacrifice EV schemes. Our telematics
product keeps growing, and we are testing insurance for
autonomous vehicles – expected to be about 4% of the car
parc by 2035 – through our partnership with Wayve. Our
strengths in data and telematics mean we are well-placed
to respond to evolving mobility trends.
We invested early and effectively in machine learning and
predictive AI, strengthening our leadership in underwriting
with over 120 models live, one of the drivers of our twelve
points advantage in loss ratio versus the market. We have
fully embedded scaled agile and renewed our tech stack,
with over 90 percent of core systems on the cloud.
We are now faster, and more agile, and have kept our cost
effectiveness and unique culture. A massive thank you goes
out to the 15,000 brilliant colleagues right across Admiral –
the real driving force behind all these achievements, with
their unwavering dedication to our customers, the business
and each other.
As we have now achieved the key objectives of the Group
strategy announced in 2020, we are taking the opportunity
to refresh it. More details are on page 18, but the approach
is to compound our existing strengths in data, technology,
diversified products, and operational expertise to drive
greater efficiency, economies of scale, and stronger
customer retention across single and multi-product policies.
We plan to keep growing UK Motor with discipline and drive
margin improvement in other lines to deliver even stronger
shareholder returns, while amplifying the Admiral DNA
through evolving our culture, continuing to develop our
people and acting to positively impact our communities.
At the start of the year, we announced that Geraint Jones
will retire as Group CFO in the summer. Over many years,
Geraint has played a key role in shaping Admiral – not just
through his financial leadership, but through the values,
integrity and great role modelling he brings to everything
he does. He truly embodies Admiral culture and has been
a highly valued colleague, trusted adviser and friend to so
many of us. I am pleased that he will continue to support
the Group in a part-time capacity, and that we have once
again been able to promote from within for his replacement.
Rachel Lewis, currently CFO for UK Insurance, will become
Group CFO on 1 July 2026. I look forward to working with
Rachel, whose commercial finance skills and deep business
knowledge make her a great CFO for our organisation.
We also announced Emma Powell’s promotion to CEO for
Admiral Money following Scott Cargill’s move to the new
Household, Travel and Pet Director role in UK Insurance.
Our strong record in internal talent development and
upskilling is why people choose Admiral and one of the
many reasons why we are recognised as a Great Place
to Work in all our markets.
Our origins as a disruptor have shaped our agile, efficient
culture, allowing us to respond quickly to latest trends.
Combined with our customer focus, diversification
opportunities, and investment in people and technology,
I am confident Admiral is well-positioned for success
in 2026 and beyond.
Milena Mondini de Focatiis
Group Chief Executive Officer
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Chief Executive Officer’s statement continued
Admiral Group Plc Annual Report and Accounts 2025
17
Bo
Over thirty years ago, Admiral launched as a challenger
brand, disrupting the UK motor insurance market through
direct distribution, cost efficiency, proactive claims
management and superior use of data. We have had a great
deal of success with this approach, growing our market
share in UK Motor to around 20% with a combined
operating ratio advantage of more than twenty percentage
points and expanding into new products and geographies.
Over the past five years, we have further strengthened our
competitive advantages by investing in predictive AI, our
data platforms and technology. Our customer base is now
far more diverse, with more than 50% of risks now coming
from our other business lines and geographies, and we
have evolved our motor proposition to reflect new mobility
and vehicle technology trends. Throughout this period, we
have consistently outperformed the market, continued to
grow, and delivered good outcomes for customers and
strong financial results.
We are now well-positioned to capitalise on our
investments in technology. We operate in large, growing,
and attractive markets with a combined size of around £130
billion and plenty of headroom to grow. Our new strategy is
not a change of direction – it’s an acceleration of value
creation using the strong platforms we have built, with
benefits compounding through greater scale, synergies
and multi-product benefits.
Our strategy is built on three pillars:
1. Scaling selectively and profitably
2.Future-proofing our competitive advantage
3.Amplifying the Admiral DNA
1.Scaling selectively and profitably
Our ambition is to continue to scale all our business and
increase margins in our newer lines. That will make us
stronger, more resilient, and better prepared for long-term
changes in the market.
a) UK Motor
As we always have, we will continue to grow our UK Motor
business with discipline and at the right time, investing
to drive further improvements in loss ratio and efficiency
and maintain our market-leading margins.
b) Other Personal lines: UK household, travel,
pet, UK lending, European Insurance
We will grow these businesses faster than UK Motor and
drive higher margins, benefiting from economies of scale,
higher retention from customers who hold multiple
products, and by transferring competitive advantages
from our core business.
c) Commercial Motor and SMEs insurance
We aim to scale our UK Commercial business by extending
our distribution in SME and integrating Flock to support
growth in Commercial Motor.
2. Future proofing our competitive advantage
This pillar underpins our growth ambitions. We will leverage
our strengths in data, customer focus, and agility to increase
customer lifetime value, giving us greater flexibility to reinvest
in growth, enhance capabilities, or sustain higher margins.
We will keep improving our mobile‑first, end‑to‑end digital
customer experience, increase multi‑product adoption,
and improve retention.
We are extending our leadership in predictive AI beyond
pricing and underwriting into customer management
and across all lines of business. By leveraging GenAI and
combining it with automation, digitalisation and our continued
cost management, we expect material efficiency gains.
3. Amplifying our DNA
This is about investing in our people, culture and
communities: it is what makes Admiral special – our focus
on having a greater positive impact in the long-term for all
our stakeholders.
As the market evolves, we are ensuring that we help our
people evolve too, through reskilling, and supporting internal
talent, diversity, development, and mobility across the Group.
We are also focussed on ensuring we retain our culture
of curiosity and innovation so we can continue to anticipate
and meet our growing and evolving customer base’s needs
with special attention on safety and greener choices, such
as electric vehicles and advanced car safety features.
Finally, we remained committed to supporting the
communities in which we operate and mitigating any harm
to the environment.
We are excited to begin this new strategy cycle with strong
momentum and clear priorities. I am confident that
successful execution will increase the value we deliver
to both shareholders and customers.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group strategy refresh
Admiral Group Plc Annual Report and Accounts 2025
18
Championing Responsible AI deployment
for scalable success
Across the Group, we are committed to
working with a range of stakeholders to ensure
that artificial intelligence (‘AI’) is implemented
responsibly. In October, our Head of Group
Responsible AI and Data, David Crelley,
took part in a panel decision at Momentum
AI London. Momentum AI is a two-day event
designed to equip business executives with
cutting-edge strategies to build scalable
generative and agentic AI systems.
At the panel session ‘Governance That Scales Without
Scaling’, the focus was on designing governance that
supports scalable AI deployments while ensuring
compliance, ethics, and adaptability. David explained the
importance of working with regulators, such as the Financial
Conduct Authority and Prudential Regulation Authority,
as well as the Association of British Insurers, to develop
safe and practical governance standards for the financial
services industry.
David shared his experience of integrating AI governance
into existing model development processes to improve
business outcomes and why he believes that human
expertise remains vital. He also spoke about the role
that our Data and AI Academy plays in helping colleagues
across the Group to understand responsible AI and the
importance of collaboration across all functions to ensure
colleagues are empowered to deliver even better outcomes
for customers.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
19
Accelerating towards
Admiral 2.0
Overview
Our ambition is to advance our core businesses towards
Admiral 2.0, maintaining traditional strengths, while
becoming more agile, digital, and technology focused.
Admiral 2.0 prioritises our customers and uses data and
advanced analytics to enhance efficiency and improve
the overall experience.
Core competencies
• Digital first
• Scaled agile
• Customer-centric innovation
• Data, advanced analytics and enhanced risk selection.
Progress in 2025:
Digital first
• Veybot served as Veygo’s main digital entry point in
2025, handling most customer interactions and resolving
around five in six journeys without agent involvement.
When escalation is needed, cases are handed over with
fuller context, leading to more consistent handling and
fewer repeat contacts. Veybot has improved service
speed and quality for customers
• The UK Insurance business has made progress with their
cloud platforms, with more than 90% of core systems
now cloud-based enabling faster, and improved data
quality. Data requests are now allocated and completed
more efficiently, with many fulfilled on the same day
• Admiral Seguros has introduced a fully automated,
AI-driven ‘touchless’ claims process for minor vehicle
damage. Through collaboration with Tractable, the
company has enhanced claims handling, resulting in
quicker settlements, improved customer satisfaction,
and greater operational efficiency.
Scaled agile
• Admiral Seguros has embedded engineers into Agile
Release Trains to reduce silos, and accelerate delivery
by continuous collaboration, and limiting external
dependencies.
Customer-centric innovation
• We enhanced the Admiral Mobile App, with a modernised,
analytics-enabled homepage aligned to our updated
brand, improving clarity, navigation and performance,
while laying the foundations for future personalised
experiences. We also launched our first customer
engagement feature, MOT Reminders, enabling
customers to set push‑notifications ahead of their MOT
and strengthening proactive, value‑adding interactions
• We introduced WhatsApp in the UK as a new
communication channel for motor claims customers,
giving greater choice by allowing customers to receive
updates and share evidence without needing to call.
Since launch, follow‑up calls have reduced, suggesting
that WhatsApp helps keep customers better informed,
and improves customer experience
• Admiral Money has expanded its use of GenAI,
which enhances our ability to review customer calls,
increasing automation and improving operational
efficiency. This broader oversight helps maintain
consistent service standards and identifies opportunities
sooner, ultimately supporting better outcomes for
our customers.
Data, advanced analytics and enhanced
risk selection
• There is widespread use of predictive AI, and machine
learning models embedded, driving improved
performance, faster speed-to-market, with deployment
across the Group
• We have strengthened our UK car pricing capabilities
by refreshing our key machine learning models for both
risk and retail pricing, helping us to predict claims costs
and market prices more accurately. Together, these
enhancements build on our established machine learning-
driven pricing approach, improving both accuracy,
and competitiveness
• We are scaling GenAI, with acceleration planned over the
next year under strict governance. In the UK, over a third
of agents are using call summarisation, reducing average
handling time and allowing them to focus on higher-value
tasks, and customer service
• L’olivier and ConTe completed major upgrades to their
core insurance system, which was delivered over the
year. These developments will generate significant
long‑term benefits, including faster quotation times,
greater efficiency, enhanced document validation, and
greater capability to develop new products and features
• This year, we successfully implemented a new rating
engine for L’olivier Motor products. This upgrade
enhances pricing agility, autonomy, and speed,
supporting our goal of delivering market-leading risk
selection and maximise business value. The new engine
is scheduled to go live for Household in 2026.
Relevant principal risks
Read more from pages 97 to 102
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Our Strategy
Admiral Group Plc Annual Report and Accounts 2025
20
Harnessing AI to increase motor claims
efficiency and identify fraud
We responsibly use AI within areas of the
business where it helps make our colleagues’
and customers’ lives easier.
This year, we have implemented the use of AI in our UK
motor and household claims departments to summarise
customer calls for over 440 customer-facing colleagues.
The roll-out of AI to summarise calls has accelerated the
process, allowing colleagues to take more calls and help
more customers to get back onto the road quickly and
safely. It has also resulted in better-quality notes, making
it easier for any colleague to quickly understand
a customer’s situation and how best to support them
during the claims process.
Within our Spanish business, Admiral Seguros, we are using
AI in a similar way to summarise reports during motor
claims. This implementation has accelerated certain
processes by as much as 80%. All AI applications across
the Group are subject to stringent oversight to ensure that
our approach remains responsible and customer focused.
Through these measures, we are able to safely improve
both customer outcomes and operational efficiency.
We continue to review our processes to understand
where AI can help us to enhance the support that
we offer our customers.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
21
Diversification
Overview
Diversification is key to our strategy of building a
sustainable and resilient business. We leverage our
established capabilities to build future successful
propositions and support the transition to a low-carbon
economy. We invest selectively in new opportunities that
strengthen our current offerings. Over the past decade,
we have launched numerous products including Household,
Travel and Pet insurance, and a personal lending business.
Our diversified model allows us to meet our customers’
varied and evolving needs with our suite of products.
Core competencies
• Scale up promising products
• Strengthen customer propositions
• Leverage core strengths.
Progress in 2025:
Scale up promising products
• We achieved robust growth across the UK in Household,
Pet, Travel and Lending, with turnover increasing by 25%
and the number of customers rising by 21% overall to
3.95 million
• UK Household reported its highest ever customer base,
now exceeding 2 million customers, with profits
increasing by 60% when compared to 2024
• Both Travel and Pet Insurance delivered strong results,
with Pet reaching break-even, and customer numbers
rising 75% compared to 2024. Travel also performed well,
generating £7.7 million in profits, increasing customer
numbers by 29% compared to 2024
• Admiral Money delivered record profits of £25.8 million
in 2025, with customer numbers increasing by 29% from
the previous year. Part of this performance reflects the
impact of our forward-flow deal, following the successful
back book sale of £146.4 million of loan sales in H1,
which generated income of £5.9 million. Since then,
we’ve continued to forward-flow £279.5 million of loans,
creating £11.2 million in income, further diversifying our
funding sources and routes to profitable growth
• L’olivier delivered record growth, with Motor reaching
over 500,000 policies (15% YoY) and Household
surpassing 100,000 policies (+25% YoY), while overall
profits increased by 58%, compared to 2024
• Our Spanish brokers have seen double-digit new
business growth (albeit from a low base), with good
loss ratio. Italy is also performing well, showing growth
and an improvement in loss ratio performance.
Strengthen customer propositions
• The RSA More Than renewal rights acquisition book
completed for £83 million, which delivered strong strategic
and cultural alignment, smooth execution, and accelerated
growth, adding over £100 million gross written premium,
renewing 380,000 risks and onboarding 300 colleagues.
In year one, customer conversion rates were on target,
whilst retention and loss ratios outperformed expectations.
The deal has expanded capabilities in pricing, claims, and
brand, which further strengthens our propositions and
deepens our expertise
• Admiral Travel Insurance was awarded Silver in the British
Travel Awards for ‘Best Company for Travel Insurance’,
which was voted for by our customers
• We launched an enhanced UK Van insurance product
that provides a similar-sized replacement van as standard
at the point of claim, helping customers stay on the road
and keep working
• Admiral Business in Pioneer partnered with Tide to
broaden our proposition, support growth, and deliver
great value to customers. The partnership provides direct
access to operational banking data, giving a real-time
view of how the business operates which we can use to
better understand how and when to engage out customers
• Admiral Money introduced new product lines through
expanded distribution channels, including car finance
via dealers and brokers, supporting greater diversification
and meeting a wider range of customer needs.
Leverage core strengths
• We continue to draw on expertise across our entities.
For example, learnings from ConTe’s large-loss model
were used to build prototypes for L’olivier and Seguros,
which were successfully implemented following testing.
Relevant principal risks
Read more from pages 97 to 102
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Our strategy continued
Admiral Group Plc Annual Report and Accounts 2025
22
Meet Emma Powell, CEO of Admiral Money
Hi Emma, tell us about your Admiral
Money journey.
I joined Admiral Money in 2016, originally as its Head of
Risk and Compliance, before becoming Chief Operating
Officer in 2019 and Chief Risk Officer in 2020. Having
been a member of the business from its inception, I know
the business inside-out and was thrilled to take over the
role of CEO from Scott Cargill in 2025.
How are you ensuring you deliver
for your customers?
As always, our main priority is delivering good outcomes
for our customers and so we continue to implement
measures that we believe help support them. We
continually review a range of metrics, customer feedback
and complaints data to identify areas we can improve.
We’ve recently introduced the use of GenAI to monitor
customer calls for quality assurance. Previously, calls were
randomly selected for periodic monitoring, whereas we
are now able to monitor a much larger number of calls.
This allows us to maintain consistently good service
standards and identify areas for process changes sooner,
so that we can adjust procedures as needed to better
serve our customers.
What’s your focus going forward?
It’s been amazing to see the business grow from just
20 people to over 350 people and a £25.8 million profit.
We now offer a range of lending products to help
customers with their financial needs. My primary focus is
to drive sustainable growth by expanding our distribution
channels and enhancing our customer experience. We are
committed to leveraging data and technology, allowing
us to streamline processes and meet the evolving needs
of our customers more effectively.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
23
Evolution of Motor
Overview
Our Evolution of Motor strategic pillar is designed to
adapt our offerings in response to global mobility changes.
While there are differing perspectives on future mobility
trends and their potential impacts, we recognise that
transportation methods are evolving. This presents an
exciting opportunity for the industry, and it is imperative
that we thoroughly understand these transformations and
their implications for both our customers and our business.
We are committed to supporting the transition to electric
mobility and we are paving the way for a more
sustainable future.
To stay ahead of these trends, we are employing a
test-and-learn approach, examining emerging market
propositions, and cultivating essential competencies
that will be relevant in the future.
Core competencies
• Understand changes in mobility
• Evolve our proposition
• Develop competencies for the future.
Progress in 2025:
Understand changes in mobility
• The UK Government announced a ban on sales of new
Internal Combustion Engine (‘ICE’) vehicles from 2030,
and new hybrid vehicles will be sold until 2035.
We continue to be consistently recognised as a market
leader in Electric Vehicles (EVs) – defined as fully-electric
vehicles powered by a battery, rather than a combustion
engine – with around 20% of all UK EVs insured by us.
This represents 7% of our UK Motor book, up from 5%
in 2024. We were the only insurer showing at Everything
Electric exhibitions in the UK; and continue to develop our
EV product based upon customer feedback, with Defaqto
naming Admiral as a ‘Trailblazer’ for innovation in EV cover
• Our UK business was one of the first to offer telematics
insurance to customers, and we continue to be a leader
in this market, offering black box to app-based solutions
• Growth in connected cars gives rise to opportunities
to provide more innovative products and services
to customers, to which Admiral is at the forefront of,
through continued pilots and test-and-learn initiatives.
Evolve our proposition
• Veygo, our short-term car insurance provider is designed
to support young drivers throughout their journey, from
learning to drive, becoming newly qualified, to using an
app-based telematics solution and subscription policy.
Veygo delivered another strong year, growing premiums
to £66 million having served more than 1.5 million
customers since launch
• We partnered with Tesla to provide insurance for their
EV customers. Admiral is now embedded on Tesla’s
website and continues to be the preferred insurer of
Tesla vehicles in the UK. In 2026, we plan to build on this
partnership by exploring opportunities around connected
vehicle data, and Advanced Driver Assistance Systems
(‘ADAS’) capabilities
• Admiral Business customer numbers grew in 2025.
Our partnership with Flock also performed strongly,
delivering solid growth in gross written premiums.
The team continued to leverage claims insights from
our core motor business to maintain prudent underwriting
throughout the year.
Develop competencies for the future
• We have partnered with Wayve, a leading autonomous
vehicle technology company since 2018, insuring their
fleet of test vehicles in the UK.
• We launched a new loyalty scheme, Zoom EV, which
will enable all Admiral EV customers to access rewards
covering charging, parking, servicing, and repairs.
Following a successful trial in 2025, this will be made
available to all EV customers in 2026
• Admiral Pioneer has partnered with Octopus Electric
Vehicles to offer a smarter insurance proposition for
EV drivers using salary sacrifice schemes. With private
registrations now accounting for less than one in four
new EVs, and salary sacrifice continuing to grow,
this partnership moves beyond traditional fleet-rated
insurance models that price cover based on an average
risk. Instead, it delivers premiums tailored to individual
drivers, ensuring insurance costs better reflect how
people drive and providing greater value for customers.
Relevant principal risks
Read more from pages 97 to 102
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Our strategy continued
Admiral Group Plc Annual Report and Accounts 2025
24
Steering the future of mobility with electric
and autonomous vehicles
As a leading motor insurer, it’s important for
us to be part of the conversation on evolving
mobility trends. In 2025, our electric vehicle
(‘EV’) and autonomous vehicle (‘AV’) teams
engaged with businesses and the UK
Government to share our knowledge and
work on autonomous technology.
We continue to support customers’ transition to a greener
way of travelling, with our UK business sponsoring the
Everything Electric Giga Theatre in 2025. This included
the sponsorship of two shows in April and October where
colleagues provided guidance on EV ownership and
spoke with visitors about their experiences as EV users.
Electric Vehicle Product Manager, Craig Codell, also
spoke on panels at both shows on investment in the
EV industry and how EV users can limit charge anxiety.
We also worked with the Association of British Insurers
on its response to the UK Government’s Automated
Vehicles Act 2024: Call for Evidence on the Statement
of Safety Principles, and want to see the government
consider how autonomous vehicle insurance will work
in the next phase of legislation.
We have insured autonomous vehicle company Wayve’s
cars in the UK since 2018.This year, we took Baroness
Caroline Pidgeon MBE, the Liberal Democrat Lords
Spokesperson for Transport; Samantha Niblett MP,
co-chair of the Financial Technology all-purpose
parliamentary group; and Scott Arthur MP, a member of
the Transport Select Committee, to Wayve’s headquarters
in London to show them how autonomous technology
is evolving and the role that insurance plays in enabling
its development, and provide a ride around the City
in an autonomous vehicle.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
25
In order to implement, develop and measure the Group’s strategic
performance, we monitor several financial and non-financial key
performance indicators (‘KPIs’).
Financial measures
Group profit1,2
Group profit before tax
£958m
Shareholder returns1,2
Dividend per share
205.0p
Capital position2
Solvency II ratio
193%
2025
2025
2025
2024
2024
2024
2023
2023
2023
Performance
Group continuing operations grew
pre-tax profit 16% compared to 2024,
with improved performances across
all segments.
Performance
Dividend per share was 205.0 pence
mainly reflecting higher group profit.
Performance
Admiral maintained a strong capital
position of 193%, well in excess of
target levels.
Non-financial measures
Group growth1,2
Group risk numbers
+7%
European growth
European risks
-2%
Diversification growth1
Other lines
+13%
2025
2025
2025
2024
2024
2024
2023
2023
2023
Performance
Mainly driven by a significant
increase in Home, Travel and Pet
in the UK.
Performance
European risks insured numbers
declined by 2% in 2025, mainly
driven by portfolio actions
undertaken in Italy, while France
delivered strong growth.
Performance
This includes all Other Personal Lines
and Admiral Money customers, which
primarily increased across UK Home,
Travel and Pet.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Key performance indicators
Admiral Group Plc Annual Report and Accounts 2025
26
£958m
£827m
£443m
205.0p
192.0p
103.0p
193%
203%
200%
11.8m
11.0m
9.7m
1.9m
2.0m
2.0m
5.9m
5.3m
4.8m
Key
Linked to remuneration
Customer satisfaction³
Customers likely to renew after a claim
>91%
Customer service⁴
Net Promoter Score
>50
Digital progress⁵
Customer engagement
>52%
2025
2025
2025
2024
2024
2024
2023
2023
2023
Performance
Customer satisfaction has improved
due to a continued focus on
optimising our customer journeys.
Performance
Relational NPS reflects improvements
across all entities in a continued
focus on our customers.
Performance
This has remained largely in line
with prior years. Improving digital
engagement remains a key focus
in 2026.
Great Place To Work®
GPTW ranking
2nd
Positive impact on society⁶
Hours donated by employees
>45,000
Net zero by 2040⁷
Movement in carbon emissions
10%
2025 2nd
2025
2025
2024 6th
2024
2024
2023 6th
2023
2023
Performance
This year, Admiral ranked 2nd for
Great Place to Work® UK in our
category as a Super Large company.
This is up from 2024’s 6th position.
Performance
This has increased from last year’s
32,500, mainly driven by our
continued focus on investing in
our communities and long-term
relationships with local charities.
Performance
Scope 1 and 2 market‑based
emissions increased by 10%
compared to 2024, driven by
increased electricity usage at our
Delhi site and a fugitive gas loss
on a critical air conditioning system.
1 All 2025 and 2024 figures relate to continuing operations only, excluding discontinued operations as a result of the sale of Elephant
see page 31 for further details. All 2023 figures relate to worldwide operations (including Elephant) as was reported then.
2 2024 Group profit, shareholder returns and capital position include the favourable impact of the change in Ogden discount rate from
-0.25% to +0.5%. See 2024 Annual Report for further details.
3 UK Motor customers, monthly score averaged over the year.
4 This is relational NPS, based on a weighted calculation across the Group.
5 Mid-term adjustments (UK operations) – adjustments made to a policy, mid-term, by the customer.
6 Volunteering hours completed by UK colleagues.
7 2024 SECR figures restated to reflect 12 months of actual data. See page 74 for further explanation. Carbon emission data includes
that generated from discontinued operations throughout the year.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Key performance indicators continued
Admiral Group Plc Annual Report and Accounts 2025
27
91%
87%
82%
50
48
46
52%
54%
54%
45,964
32,571
14,257
10%
(47%)
26%
Results in 2025
exceeded 2024
in almost all aspects
“Much has changed since
2014, but our commitment
to customers and
our amazing culture
has stayed constant
throughout.”
Geraint Jones
Group Chief Financial Officer
After setting a pretty high bar in 2024,
Admiral’s 2025 results exceeded (sometimes
significantly) those of the prior year in
practically all aspects.
Group pre-tax profit of £958 million was a record result,
and if we exclude the impact of Ogden (see below) on both
years, then the year-on-year increase of 28% is some
achievement. UK Motor insurance breaking through
£1 billion of profit for the first time was a decent milestone,
and it was especially great to report some excellent results
beyond that – the UK Home, Travel and Pet result was just
under three times 2024’s, Admiral Money’s profit doubled
and the European result improved by nearly £30 million
after the disappointing Italian result of 2024. Our main Other
personal lines (excluding UK Motor) reported a combined
result of £95 million in 2025 vs. £15 million in 2024 –
important and significant progress. I’m really happy with
these results, but importantly we have good momentum
moving into 2026 and beyond.
We end the year with a strong financial position and very
prudent reserves (as usual), and beyond the numbers
we have a refreshed Group strategy, a new approach
to returning capital to shareholders, likely an imminent
application for internal capital model approval and (subject
to regulator approval), a new business to integrate into
the Group following the announcement of the acquisition
of Flock!
Looking in a bit more detail at the results:
£m
2025
2024
Change vs.
2024
UK Motor Insurance
1,024
955
+69
UK Other Insurance
Lines
62
22
+40
Europe
7
(20)
+27
Admiral Money
26
13
+13
Share schemes
(72)
(61)
-11
Other
(89)
(82)
-7
Total
958
827
+131
Impact of change in
Ogden DR1
+30
+100
-70
1 For the year ended 31 December 2024, the results include a gain
of £100 million related to the change in the Ogden rate from
-0.25% to 0.5%. The impact of Ogden in 2025 is circa £30 million.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Group Chief Financial Officer’s review
Admiral Group Plc Annual Report and Accounts 2025
28
The UK Motor business rightly takes centre stage,
with a £69 million increase in profit (£139 million if the
impact of Ogden is excluded). The combined ratio remained
very positive at 75% (vs. 73% on a like-for-like basis).
Total premium was lower than 2024 as prices reduced,
reflecting improving claims inflation but also a competitive
market. Market prices appear to have plateaued around the
end of 2025, and we expect prices to start increasing in the
not-too-distant future (and have increased our own motor
prices in early 2026).
Our UK Other Lines businesses had a very strong year,
completing the migration of the More Than policies
acquired from RSA, growing customer numbers by 21%
and increasing profits nearly threefold – really strong
performance from a part of the business where we plan
to maintain growth.
Having called out the Italian result as a disappointment in
2024, it was very positive to see a strong recovery in the
European bottom line, which was nearly £30 million better
than 2024. We saw good growth and higher profit in France
and a small profit in Italy (though at the expense of a smaller
portfolio as we expected). In Spain the result was a little
worse on the bottom line, though this was mainly due to
new reinsurance contracts taking effect (the gross results
improved). All in all a very satisfactory year in Europe
and we expect further growth and improvement in results
over the coming years.
And finally, a really good year from Admiral Money where
profits doubled to £26 million, loans balances grew strongly
and we started to effectively use third-party capital in the
business with a new forward flow arrangement contributing
to profits and higher return on capital.
More detailed comments on performance follow throughout
the report.
Internal model
We have been developing an internal capital model to be
used to calculate the Group capital requirements. Intense
work has continued over the past year and we are now very
close to the point of submitting our formal application for
approval to our main prudential regulators.
The regulators’ review will take some time, and we will
communicate further on the results of the process and
the impact on Admiral’s capital position and solvency
risk appetite soon.
Capital return change
We have announced that from the interim 2026 dividend
onwards, we will change the way we return surplus capital
to shareholders. Historically we have paid special dividends,
but from the middle of 2026 we will either pay a special
dividend, or buy back and cancel shares based on Board
determination. We don’t generally expect the change itself
to mean a different amount of capital is either returned to
shareholders or used to buy shares for the employee
shares plans (currently guided to total ~90% of post-tax
profit). And for 2026 interim and final dividends we expect
to buy back shares as opposed to paying special dividends.
Why change? In our view the balance of arguments has
tipped in favour of buying back over special dividends (in
part due to changes to staff bonus schemes to delink from
dividends), and this was further supported by a consultation
of our largest shareholders during 2025, which indicated
a majority in favour of a change in approach. We will, as
always, continue to invest appropriately for growth and the
long term, and this change only applies to surplus capital.
Signing off
This is my twelfth and final Annual Report CFO Review.
Notable in my first report, back in 2014, was much thicker
brown(ish) hair and, according to Mrs Jones, much chubbier
cheeks, which I’m taking as a half-compliment. Lots has
changed since 2014, including quite a number of
businesses I was commenting on then no longer being part
of the group (including of course Elephant in the US where
the sale completed at the end of 2025) but much remains
the same – a leading UK personal lines insurance business
and growing, exciting businesses beyond that; a deep
focus on doing our best for customers and an amazing
culture.
I will hugely miss working day-to-day with my amazing
colleagues but am glad to be able to hang around and help
in a part-time role. I’m delighted that Rachel Lewis, who
I know well, will be taking over as CFO from July 2026.
She’ll do an amazing job!
Geraint Jones
Group Chief Financial Officer
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Group Chief Financial Officer’s review continued
Admiral Group Plc Annual Report and Accounts 2025
29
2025 Group performance overview
£m
2025
2024
% change vs.
20244
Group turnover (£bn)1, 3, 5
5.90
5.95
-1%
Net insurance and investment result5
884.2
785.8
+13%
Net interest income from financial services
89.0
76.3
+17%
Other income and expenses
8.7
(9.2)
nm
Operating profit 5
981.9
852.9
+15%
Group profit before tax from continuing operations
957.9
826.5
+16%
Group profit before tax from discontinued operations
(3.1)
12.7
nm
Group profit before tax
954.8
839.2
+14%
Analysis of profit
UK Insurance6
1,086.3
976.7
+11%
UK Insurance (Ogden -0.25%)6
1,056.3
876.4
+21%
European Insurance
6.6
(19.7)
nm
European Insurance - Motor
9.3
(14.8)
nm
European Insurance - Other
(2.7)
(4.9)
+45%
Admiral Money
25.8
13.0
+98%
Other
(160.8)
(143.5)
-12%
Group profit before tax from continuing operations5
957.9
826.5
+16%
Key metrics
Reported Group loss ratio1, 2, 5
59.2%
55.3%
+3.9pts
Reported Group expense ratio1, 2, 5
20.9%
21.6%
-0.7pts
Reported Group combined ratio1, 2, 5
80.1%
76.9%
+3.2pts
Insurance service margin1, 2, 5
17.3%
16.8%
+0.5pts
Group risks (million)1, 5
11.77
10.97
+7%
Earnings per share
246.4
216.6
+14%
Earnings per share from continuing operations
247.4
212.8
+16%
Dividend per share
205.0
192.0
+7%
Return on equity1
53%
56%
-3pts
Solvency ratio1
193%
203%
-10pts
1 Alternative Performance Measures – refer to the end of the report for definition and explanation.
2 Reported Group loss and expense ratios are calculated on a basis inclusive of all insurance revenue – this includes insurance premium
revenue net of excess of loss reinsurance, plus revenue from underwritten ancillaries and an allocation of instalment and administration
fees / related commissions. See glossary for an explanation of the ratios and Appendix 1a for a reconciliation of reported loss and expense
ratios, and insurance service margin, to the financial statements.
3 Alternative Performance Measures – refer to note 14 for explanation and reconciliation to statutory income statement measures.
4 Definition: nm – not meaningful.
5 Reported on a continuing basis only. 2024 comparatives are re-presented to exclude the US Insurance result following its sale.
6 For the year ended 31 December 2024, the result included a gain of £100 million related to the change in Personal injury discount rate
("Ogden") from -0.25% to +0.5% (see Glossary for further information).The estimated impact of Ogden in 2025 is circa £30 million.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
2025 Group overview
Admiral Group Plc Annual Report and Accounts 2025
30
Group highlights
• Group continuing operations pre-tax profit was £957.9
million, 16% higher than 2024, with improved results
reported across all segments
• Group risks insured increased by 7% to 11.8 million, with
good growth in UK Insurance (in particular 21% across
Home, Travel and Pet); though a small reduction
in Europe (2%) due to portfolio actions in Italy
• Group turnover was broadly flat as continued growth in
UK Other Personal lines was offset by lower UK Motor
turnover (7%) as average premiums reduced
• UK Motor Insurance profit increased by 7% to £1,024.0
million from £955.1 million. The increase in profit
excluding the Ogden impact was 16% (£994 million vs
£855 million), with a strong current year combined ratio
due to disciplined growth in a competitive market
• Higher pre-tax profit in UK Household Insurance of
£54.4 million (2024: £34.1 million) as the growth and
favourable performance from 2024 fully earns through.
Profits also increased in UK Travel with a break even
result in UK Pet
• A significantly improved result in European Insurance
(£6.6 million profit vs. £19.7 million loss), with increased
profits in L’olivier and a return to profit in Italy
• Admiral Money profit up, to £25.8 million (2024:
£13.0 million) and gross loan balances of £1.46 billion
(+24% year-on-year growth) – new forward flow
arrangements and a sale of a portion of the back book
loan portfolio contributing to the higher pre-tax profits.
Sale of Elephant
As announced in January 2026, the Group has completed
the sale of its US motor insurance business, including
Elephant Insurance Company and Elephant Insurance
Services (“Elephant”) to J.C. Flowers & Co. (“J.C. Flowers”)
a global private investment firm dedicated to investing in
the financial services industry, effective as at 31 December
2025. The Elephant result for 2025 is presented separately
as a discontinued operation within the Group results,
with the prior year comparative results re-presented
on the same basis.
Earnings per share
Earnings per share for continuing operations for 2025 were
247.4 pence (2024: 212.8 pence). The increase from 2024
is broadly aligned to the increase in continuing operations
pre-tax profit.
Return on equity
Return on equity was 53% for 2025, 3 points lower than the
56% reported for 2024. Excluding the impact of Ogden in
both years, return on equity was broadly flat.
Dividends
The Group’s dividend policy is to pay 65% of post-tax
profits as a normal dividend, and to pay a further special
dividend comprising earnings not required to be held
in the Group for solvency, buffers or purchasing shares
for the Group’s employee share plans.
Subject to regulatory approval, from the interim 2026
dividend this policy will change such that in addition to the
normal dividend, the Group will either pay a special dividend
and/or buy back and cancel shares based on Board
determination. See the Group Capital Structure section later
in this report for further information.
The Board has proposed a final dividend of 90.0 pence
per share (approximately £274.6 million) splits as follows:
• 72.8 pence per share normal dividend
• A special dividend of 17.2 pence per share.
The final dividend, plus share purchases for the employee
share scheme made in late 2025, equate to 90% of second
half continuing operations post-tax profits; excluding share
purchases, the final dividend reflects a pay-out ratio of 81%.
The dividend of 90.0 pence per share is 26% lower than the
final 2024 dividend (121.0 pence per share), reflective of
share purchases and lower second half earnings per share.
The 2025 final dividend payment date is 5 June 2026,
ex-dividend date 7 May 2026, and record date 8 May 2026.
Honouring Admiral’s top talent
Recognition is one of the pillars that the Group was
founded on, so our ‘Top 10’ and Group Managers’
Awards evening is always a hotly anticipated
event in the Admiral calendar, as it celebrates our
amazing colleagues.
Top 10 is the Group's annual competition to determine
the best department to work for, based on scores
and engagement from the annual Great Place To Work
survey, alongside presentations responding to that
years’ Top 10 question.
This year, colleagues were asked to show how they
are ensuring that their departments are making Admiral
a place where colleagues can grow and progress,
share in our future, be you and make a difference.
This led to responses that outlined examples of how
the Group supports colleagues to grow their careers
through leadership programmes and qualification
funding, and examples of how we make a difference
by ensuring we uphold our Customer Promise of value,
trust and ease.
Each Top 10 Awards evening also hosts the annual
Group Managers' Awards. The awards recognise
colleagues who have been nominated for going above
and beyond in different ways to support other
colleagues and our customers. Winners included Justin
Beddows, UK Consumer Public Relations Specialist,
who led on the UK’s “Your ride, your rules” road safety
campaign, and Vero Hermelo, Head of European
Strategy, for her passion and dedication in executing
our European strategy.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
2025 Group overview continued
Admiral Group Plc Annual Report and Accounts 2025
31
Celebrating 20 years of our Future Leaders programme
Our colleagues are critical to our success,
which is why we’re so passionate about
attracting and nurturing the talent we need
to meet and anticipate customers’ needs.
This year marked 20 years since we launched our Future
Leaders programme, an MBA graduate programme, which
gives participants the opportunity to work closely with our
executive team on key strategic projects.The programme
is designed to deepen their understanding of our strategy
and culture, ultimately preparing them for leadership roles.
Since its inception, more than 60 people have participated
in the scheme, including our Group CEO, Milena Mondini
de Focatiis; Head of Travel Insurance in Admiral UK,
Cosmin Sarbu; and CEO of our Spanish business ‘Admiral
Seguros’, Sarah Harris, who have been, and continue to be,
instrumental to the Group’s success.
To celebrate its 20th anniversary, we made it a night
to remember by bringing together alumni from the
programme to connect and discuss how the experience
has helped shape their career with the current intake,
as well as share how the business continues to support
their personal and professional development.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
32
>60
people have participated in the
Future Leaders programme
2025 was another year of strong results for UK
Insurance, we have grown in all business lines reporting
a record profit in motor, and reaching profitable scale
in Other UK Personal lines.
“Our UK Insurance business has delivered
a strong set of results demonstrating
our ability to deliver good outcomes for
customers, our competitive advantages
in Motor, and our ability to replicate
our success in other business lines.”
Alistair Hargreaves
CEO, UK Insurance
Our performance
UK Insurance profit before tax
£1,086m
UK Insurance customer numbers
9.6 million
2025
2025
2024
2024
Our customer centricity, Motor operational
excellence, disciplined cycle management,
and growing Home, Travel and Pet businesses
all combined to result in us welcoming 780,000
new customers, sustain our market-leading
combined ratio and deliver £1.1 billion profit
before tax, whilst having an industry leading
Trustpilot customer rating of 4.5.
In Motor, 2025 saw positive claims trends, with severity
moderating and frequency improving. These trends
translated into falling motor premiums, which is good news
for motorists and demonstrates how highly competitive this
market is. We welcomed the Government’s motor taskforce’s
final report in December, which recognised this and the
direct link between claims costs and motor premiums.
The 2025 market dynamic of declining premiums and
continued moderation of claims inflation required our
disciplined pricing approach. We reduced prices slightly less
than the market in the first half of the year, then kept prices
broadly flat in the second half as market prices continued
to decline. This, combined with continued growth through
MultiCar and MultiCover, a focus on electric vehicles with
a market share that is now 20%, and strong retention,
enabled us to deliver a strong loss ratio, whilst growing
modestly to the end of the year with 5.8 million Motor
customers. We were pleased that we simultaneously
delivered efficiency savings resulting in a reduced cost
per risk, whilst maintaining very strong service levels,
with overall NPS >55. This all culminated in an increased
profit before tax of £1.1 billion for all UK Insurance.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
UK Insurance review
Admiral Group Plc Annual Report and Accounts 2025
33
£1,086m
£977m
9.6m
8.8m
2025 saw a step change for Other UK Personal Lines,
as we proved we can replicate our UK Motor operational
excellence in distribution, pricing, and claims management,
to deliver good customer outcomes and sustainable profits.
Across Pet, Home and Travel, we grew by 21% and now
cover 3.8 million customers. This growth was both organic,
with MultiCover a key driver for household, and inorganic
with the successful completion of the More Than Home
and Pet renewal migration. Turnover rose to £756 million,
and profit before tax to £62.3 million, with record results
in Home and Travel, and Pet achieving break-even just
three years since its launch. We’re pleased with this
progress, in markets totalling £11 billion, we have top five
market positions and are confident we can achieve top
three market positions with market leading combined ratios.
We continue to invest to further improve customer journeys
and this has supported us to reach 1.6 million unique
customers with two or more risks. We’ve built strong
capability in predictive AI, accelerating machine learning
model deployment in pricing and claims. In 2025, we laid
good foundations in GenAI and Agentic AI to enhance our
operational excellence.
This includes completion of a wide range of proof of
concepts and scaling some processes; call summarisation
is now deployed to over a third of agents. Ongoing
investments in cyber and operational resilience ensure
we operate at a market-leading standard.
The driving force of our business is our culture and people,
we were extremely proud to be named a Great Place to
Work® for the 25th consecutive year, receiving a Legendary
Status™ as a result. We were again listed in the Top Ten for
both Great Places to Work®, and for Great Places to Work®
for Women and were recognised at the Women in
Technology Excellence Awards.
2025 has been another good year for UK Insurance.
By remaining disciplined and customer focused, we have
continued to grow profitably. Looking ahead, some
uncertainty remains around near-term market dynamics,
but our strong team and fundamentals give us a great
platform to continue to provide value, trust, and ease
for customers and in doing so, make the most of our
opportunities for sustainable profitable growth in 2026
and beyond.
UK Insurance financial performance
£m
2025
2024
Turnover1, 2
4,952.5
5,108.5
Total premiums written 1
4,586.3
4,745.2
Insurance revenue
4,221.6
3,873.4
Underwriting result1
843.1
764.4
Net investment income
87.9
70.5
Co-insurer profit commission and net other revenue
155.3
141.8
UK Insurance profit before tax1
1,086.3
976.7
Segment result: UK Insurance profit before tax1
£m
2025
2024
Motor
1,024.0
955.1
Motor (Ogden -0.25%)3
994.0
854.8
Household
54.4
34.1
Travel and Pet
7.9
(12.5)
UK Insurance profit before tax3
1,086.3
976.7
Segment performance indicators1
million
2025
2024
Vehicles insured at period end
5.83
5.69
Households insured at period end
2.19
1.97
Travel and Pet policies at period end
1.56
1.14
Total UK Insurance risks
9.58
8.80
1 Alternative Performance Measures – refer to the end of this report for definition and explanation.
2 Alternative Performance Measures – refer to note 14 for explanation and Group reconciliation to statutory income statement measures.
3 For the year ended 31 December 2024, the result included a gain of £100 million related to the change in Personal injury discount rate
(‘Ogden’) from -0.25% to +0.5%. The estimated impact of Ogden in 2025 is circa £30 million.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
UK Insurance review continued
Admiral Group Plc Annual Report and Accounts 2025
34
Highlights for the UK Insurance business include:
• In UK Motor:
– Profit of £1,024.0 million, 7% higher than 2024
(£955.1 million), 16% higher when excluding the impact
of the change in Ogden discount rate (£994.0 million
vs. £854.8 million). Strong profitability from
underwriting year 2024 continued to earn through
combined with a disciplined approach to growth in
2025, resulting in a strong current year combined ratio
– A 2% increase in risks insured – modest growth with
Admiral focusing on medium-term profitability in a more
competitive market
– Turnover reduced by 7% due to rate reductions and
a shift in sales mix from new business to renewals,
leading to lower average premiums.
• In UK Household:
– Profit significantly increased to £54.4 million (2024:
£34.1 million) – a result of higher insurance revenue
following growth in 2024 and 2025, along with
continued relatively benign weather, and lower quota
share charges due to higher profit commission
– Continued growth in numbers of risks insured, of 11%
to 2.19 million (31 December 2024: 1.97 million).
• In UK Travel and Pet Insurance:
– A combined profit for the first time (2025: £7.9 million
profit vs. 2024: £12.5 million loss). Travel profits continue
to grow, whilst Pet achieved a break even result
– Both businesses continued to grow their customer
base and turnover through organic means and as
a result of the More Than renewals in Pet.
UK Motor Insurance financial review
Insurance revenue increased, despite lower written
premiums, as a result of the significant growth in 2024
continuing to earn through.
The current year loss ratio remained strong following
disciplined growth in a more competitive market, although
the decrease in written premiums resulted in a higher
written expense ratio.
Quota share costs reduced in 2025, with underlying claims
releases in 2024 resulting in a higher charge for the unwind
of quota share assets on underwriting years 2021–2023.
Favourable net investment income continues to be primarily
driven by higher investment balances.
£m
2025
2024
Turnover1
4,196.9
4,495.9
Total premiums written1, 2
3,860.2
4,157.7
Insurance premium revenue1
3,306.2
3,160.5
Other insurance revenue1
205.3
209.0
Insurance revenue
3,511.5
3,369.5
Insurance revenue net of XoL2, 4
3,429.6
3,271.4
Insurance expenses1, 2, 3
(600.2)
(586.8)
Insurance claims incurred net of XoL2, 4
(2,283.9)
(2,078.1)
Insurance claims releases net of XoL2, 4
310.4
374.6
Underwriting result, net of XoL reinsurance
855.9
981.1
Quota share reinsurance result2, 3
(60.7)
(228.8)
Movement in onerous loss component net of reinsurance2
–
1.1
Underwriting result2
795.2
753.4
Investment income
183.2
150.0
Net insurance finance expenses
(102.9)
(83.4)
Net investment income
80.3
66.6
Co-insurer profit commission
74.5
53.3
Other net income
74.0
81.8
UK Motor Insurance profit before tax1,9
1,024.0
955.1
UK Motor Insurance profit before tax (Ogden -0.25%)
994.0
854.8
Strategic Report
Corporate Governance
Financial Statements
Additional Information
UK Insurance review continued
Admiral Group Plc Annual Report and Accounts 2025
35
Segment performance indicators
2025
2024
Reported Motor loss ratio1, 2, 5
57.5%
52.1%
Reported Motor expense ratio1, 2, 5
17.5%
17.9%
Reported Motor combined ratio1, 2, 5
75.0%
70.0%
Reported Motor combined ratio (Ogden -0.25%)1,2,9
75.6%
73.2%
Reported Motor Insurance service margin1, 2, 5
23.2%
23.0%
Core Motor loss ratio before releases1, 2, 6
72.8%
69.2%
Core Motor claims releases1, 2, 6
(10.0)%
(12.7)%
Core Motor loss ratio1, 2, 6
62.8%
56.5%
Core Motor expense ratio1, 2, 6
17.7%
18.2%
Core Motor combined ratio1, 6
80.5%
74.7%
Core Motor written expense ratio1, 2, 7
18.4%
16.8%
Vehicles insured at period end1 2
5.83m
5.69m
Other revenue per vehicle2 8
£71
£76
1 Alternative Performance Measures – refer to the end of this report for definition and explanation.
2 Alternative Performance Measures – refer to Appendix 1b for explanation and reconciliation to statutory income statement measures.
3 Insurance expenses and quota share reinsurance result excludes gross and reinsurers’ share of share scheme charges respectively.
Share scheme charges are reported in Other Group Items.
4 XoL refers to Excess of Loss (non-proportional) reinsurance; see glossary at end of report for further information.
5 Reported Motor loss ratio, expense ratio and insurance service margin are all net of XoL, as defined in the glossary. Reconciliation
in Appendix 1b.
6 Core Motor loss ratio, expense ratio and combined ratio are all net of XoL, as defined in the glossary. Reconciliation in Appendix 1b.
7 Core Motor written expense ratio defined as insurance expenses divided by core product written insurance premium, net of excess
of loss reinsurance.
8 Other revenue per vehicle includes other revenue included within insurance revenue. See ‘Other Revenue’ section for explanation.
9 For the year ended 31 December 2024, the results include a gain of £100 million related to the change in the Ogden rate from -0.25%
to 0.5%. The impact of Ogden continuing to earn through 2025 is circa £30 million.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
UK Insurance review continued
Admiral Group Plc Annual Report and Accounts 2025
36
Claims
Estimated claims inflation is stable, with Admiral's
current estimate of average claims cost inflation for
full-year 2025 being mid-single digits (2024: mid-to-high
single digits). Admiral’s observed claims frequency has
marginally reduced.
As usual, the longer-term impacts of inflation on bodily
injury claims remain uncertain. Admiral did not observe
material changes in inflation for bodily injury claims settled
in 2025 when compared to 2024. A prudent allowance
is held in the best estimate reserve to reflect potential
impacts of higher than historic levels of future wage
inflation on certain elements of large bodily injury
claims reserves.
There is still uncertainty within motor claims across the
market arising from inflation, and future developments
relating to economic, political and regulatory changes.
The Ogden discount rate of +0.5%, as announced
in December 2024, continues to be used within the best
estimate reserves.
Admiral continues to hold a significant and prudent risk
adjustment above best estimate reserves, with the risk
adjustment confidence level held at the 94th percentile
in UK Motor (31 December 2024: 95th percentile) and
at, or close to, the maximum across all lines of business.
When setting the level of risk adjustment, due consideration
has been given to the inherent uncertainty in bodily injury
claims, the Group’s ongoing assessment of uncertainty
arising from internal and external factors and continued
releases seen in recent periods in the UK motor book.
There has been no significant change in the reserve risk
distribution from which the percentile is selected since 2024.
As reported in H1 2025, in line with the FCA’s multi-firm
review into UK Motor Insurance total loss claims valuations,
Admiral has conducted a review of its total loss and related
processes, considering current practice and customer
outcomes in the recent past. Primarily as a result of certain
internal processes failing to respond swiftly enough to
evolving external factors, including significant volatility in
used car prices in recent years, the review has concluded
that some action is required in respect of total loss
settlements covering the period 2019 to 2024.
The estimated incremental claims cost of this action to
Admiral (excluding statutory interest) is aligned to that
reported in August 2025, at approximately £50 million,
around half of which has been accounted for in 2025,
the remainder in the previous financial year. For context,
the cost represents approximately 3% of Motor total loss
claims over the relevant period. Admiral started contacting
impacted customers during H2 2025, and whilst noting
uncertainty remains, does not expect the final cost
of the action to vary materially from that noted above.
The core Motor loss ratio has increased to 62.8% (2024:
56.5%) with offsetting movements in the current period loss
ratio and prior year reserve releases, as follows:
Core Motor loss ratio1, 2
Core
motor
loss ratio
before
releases
Impact of
claims
reserve
releases
Core
motor
loss ratio
FY 2024
69.2%
(12.7%)
56.5%
Prior period impact of
Ogden change (-0.25% to
+0.5%)
0.9%
2.7%
3.6%
FY 2024 (excluding
Ogden impact)
70.1%
(10.0%)
60.1%
Change in current period
loss ratio
3.4%
—%
3.4%
FY 2025 (excluding
Ogden impact)
73.5%
(10.0%)
63.5%
Impact of Ogden discount
rate change
(0.7%)
—%
(0.7%)
FY 2025
72.8%
(10.0%)
62.8%
1 Core Motor loss ratio shown on a discounted basis,
excluding unwind of finance expenses.
2 Alternative Performance Measures – refer to Appendix 1b for
explanation and reconciliation to statutory income statement
measures.
The core motor loss ratio before releases has remained
strong in 2025, with reduced average premiums leading
to a modest increase of just over 3 percentage points,
excluding the impact of Ogden.
The benefit from prior-period releases includes both the
positive development of the best estimate reserve and the
unwind of risk adjustment for prior-period claims. Both the
absolute value of releases and releases as a percentage of
premium are lower than that observed in 2024, with higher
releases on the best estimate in 2024 given the increase
in Personal Injury (‘Ogden’) Discount Rate.
Quota share reinsurance
Admiral’s quota share reinsurance result reflects the net
movement on ceded premiums, reinsurer margins and
expected recoveries (claims and expenses, excluding
share scheme charges) for underwriting years on which
quota share reinsurance is in place (2021 underwriting
year onwards).
The ‘Group capital structure’ section sets out further details
on Admiral’s UK Motor quota share arrangements.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
UK Insurance review continued
Admiral Group Plc Annual Report and Accounts 2025
37
Quota share reinsurance result1
£m
31 December
2025
31 December
2024
Quota share
claims asset
31 December
2025
2022 and
prior
(34.6)
(111.2)
52.0
2023
(1.0)
(81.0)
–
2024
(21.9)
(36.6)
–
2025
(3.2)
–
39.4
Total
(60.7)
(228.8)
91.4
1 Quota share result in underwriting year 2025 includes a
£15.3 million recharge for the reinsurer’s assumed share scheme
recoveries out of other Group costs in line with prior period
(2024: £11.1 million).
The significantly reduced quota share charge in 2025
is the result of:
• A lower quota share charge for the reinsurers’ share
of favourable developments on underwriting years 2021
and 2022, given lower comparative releases net of XoL
in 2025 relative to 2024 excluding the impact of Ogden
• The charge on underwriting years 2023 and 2024
reflecting only the cost of the margin in 2025, given that
these years are already profitable with no remaining
quota share asset at year-end 2024. In 2024, the charges
were significant, as a result of sharing the impact of
favourable claims development
• A small charge in 2025, reflecting the cost of the margin
offset by the recognition of a modest quota share asset
on underwriting year 2025 due to the booked combined
ratio for underwriting year 2025 being over 100% on an
undiscounted basis.
Co-insurer profit commission
Co-insurer profit commission of £74.5 million is higher than
in 2024 (£53.3 million).
In 2024, profit commission was suppressed on underwriting
year 2024 (and 2023) due to losses on underwriting years
2021 and 2022 being carried forward in line with
contractual clauses. Over the last 12 months, the loss ratios
on underwriting years 2021-23 have developed favourably,
which, combined with the strong performance of the 2024
underwriting year, means that profit commission is now
recognised on the 2024 year, which contributes the
majority of profit commission recognised.
The combined ratio is not yet low enough to recognise
profit commission on underwriting years 2021-23, or 2025
where a cautious approach has been taken, as usual, given
the early stage of development.
Net investment income
Net investment income increased to £80.3 million from
£66.6 million, benefiting from higher investment income,
which was partly offset by increased net insurance
finance expenses.
Investment income grew by 22% to £183.2 million
(2024: £150.0 million), primarily as a result of the continued
increase in investment balances. Further information on
the Group’s investment portfolio and the income generated
in the period is provided later in the report.
Net insurance finance expense reflects the unwind of
the discounting benefit recognised when claims are initially
incurred. The expense has increased by 23% in 2025
(£102.9 million; 2024 £83.4 million), impacted by both the
significant increase in risk-free rates from 2022 onwards,
and the increasing size of claims liabilities given the
continued growth in the book. A significant proportion
of the insurance finance expense in 2025 relates to claims
incurred during 2023 and 2024.
Other revenue
Admiral generates other revenue from a portfolio of
insurance products that complement the core motor
insurance product, and also fees generated over the life
of the policy. The most material contributors to other
revenue continue to be:
• Profit earned from Motor policy upgrade products
underwritten by Admiral, including breakdown, car hire
and personal injury covers
• Revenue from other insurance products, not underwritten
by Admiral
• Fees such as administration and cancellation fees
• Interest charged to customers paying for cover
in instalments.
Under IFRS 17, income from underwritten ancillaries, and
an allocation of instalment income and administration fees,
in line with Admiral’s gross share of the core motor product
premium, are included within Insurance revenue in the
underwriting result. The remaining income from instalment
income and fees, as well as income from other non-
underwritten ancillary products is presented in other
net income.
Overall contribution increased to £333.3 million (2024:
£321.8 million), primarily due to continued growth
in customer numbers in the past year.
Other revenue was equivalent to £71 per vehicle (gross
of costs) (2024: £76), with net other revenue per vehicle
at £58 per vehicle, (2024: £61) the decrease being the
result of lower instalment income due to lower average
premiums and a reduction in the rate of interest charged
for this payment method over the year.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
UK Insurance review continued
Admiral Group Plc Annual Report and Accounts 2025
38
Other revenue
UK Motor Insurance other revenue
2025
£m
Within
underwriting
result
Other net
income
Total
Premium and revenue from additional products and fees1
157.9
88.0
245.9
Instalment income and administration fees2
205.3
43.2
248.5
Other revenue
363.2
131.2
494.4
Claims costs and allocated expenses3
(103.9)
(57.2)
(161.1)
Net other revenue
259.3
74.0
333.3
Other revenue per vehicle4
£71
Other revenue per vehicle net of internal costs
£58
2024
£m
Within
underwriting
result
Other net
income
Total
Premium and revenue from additional products and fees1
139.8
83.4
223.2
Instalment income and administration fees2
209.0
45.7
254.7
Other revenue
348.8
129.1
477.9
Claims costs and allocated expenses3
(108.8)
(47.3)
(156.1)
Net other revenue
240.0
81.8
321.8
Other revenue per vehicle4
£76
Other revenue per vehicle net of internal costs
£61
1 Premium from underwritten ancillaries is recognised within the insurance service result (underwriting result). Other income from
non-underwritten products and fees is included within other net income, below the underwriting result but part of the insurance
segment result.
2 Instalment income and administration fees are recognised within insurance revenue (% aligned to Admiral’s share of premium,
net of co-insurance) and other revenue (% aligned to co-insurance share of premium).
3 Claims costs relating to underwritten ancillary products, along with an allocation of related expenses, are recognised within the insurance
result. Expenses allocated to the generation of revenue from non-underwritten ancillaries are recognised within other net income.
4 Other revenue per vehicle (before internal costs) divided by average active vehicles, rolling 12-month basis. Presented here based
on all ancillary income.
UK Household Insurance financial review
£m
2025
2024
Turnover1
538.3
475.4
Total premiums written1
508.9
450.3
Insurance revenue
521.0
399.6
Insurance revenue net of XoL1
494.6
376.4
Insurance expenses1
(114.0)
(102.9)
Insurance claims incurred net of XoL1
(321.3)
(225.7)
Insurance claims releases net of XoL1
19.2
37.0
Underwriting result, net of XoL reinsurance1
78.5
84.8
Quota share reinsurance result1, 3
(35.3)
(61.2)
Underwriting result1
43.2
23.6
Net investment income
4.6
3.9
Other income
6.6
6.6
UK Household Insurance profit before tax1
54.4
34.1
Strategic Report
Corporate Governance
Financial Statements
Additional Information
UK Insurance review continued
Admiral Group Plc Annual Report and Accounts 2025
39
Segment performance indicators
2025
2024
Reported Household loss ratio1, 2
61.1%
50.1%
Reported Household expense ratio1, 2
23.0%
27.3%
Reported Household combined ratio1, 2
84.1%
77.4%
Household insurance service margin1, 2
8.7%
6.3%
Household loss ratio before releases1, 2
65.0%
60.0%
(Favourable) impact of weather on reported loss ratio vs budget4
(1.0)%
(7.9)%
Households insured at period end
2.19m
1.97m
1 Alternative Performance Measures – refer to the end of this report for definition and explanation.
2 Alternative Performance Measures – refer to Appendix 1c for explanation and reconciliation to statutory income statement measures.
3 Quota share reinsurance result within the segment result excludes reinsurers’ share of share scheme costs.
4 Weather impact, being the combined impact of claims related to freeze, flood, storm and subsidence, is disclosed relative
to a budget expectation.
The UK Household Insurance business reported a record
profit of £54.4 million, with strong growth in customers
and turnover over 2024 and 2025 arising from both the
renewal rights acquired through the More Than acquisition,
and organic growth, notably from Admiral’s multi-product
offering, now earning through.
Turnover of £538.3 million was 13% higher than 2024
(£475.4 million), largely aligned to the increase in
the number of homes insured, which increased by 11%.
The net of XoL underwriting result was slightly lower than
2024, impacted by:
• A significant increase in insurance revenue arising from
higher earned premiums reflecting increases in both
customers and price increases, primarily during 2024
to reflect ongoing inflation
• A higher current period loss ratio of 65% (2024: 60%).
Although weather was not a significant factor, it was less
benign than 2024 with more subsidence, following the
dry UK summer weather. The overall impact of weather
was considered slightly below a budget expectation,
creating a net benefit to the current period loss ratio
of just under (1%) (2024: benefit of 7.9%)
• Lower prior year reserve releases of £19.2 million
compared to an exceptionally high 2024 (£37.0 million) –
the comparative figure reflected the unwind of reserves
in relation to the freeze event in late 2022, along with
the impact of some unwind of storm events in 2023
• An improved expense ratio, with absolute expenses
increasing due to ongoing growth in the business,
but at a lower rate than the increase in earned premiums.
Expenses in 2024 also included one-off IT integration
costs related to the More Than acquisition.
The quota share result for the period (a charge of £35.3
million compared to £61.2 million in 2024) arises as a result
of the proportional sharing of the positive underlying
underwriting result. The lower charge in 2025 is primarily
the result of profit commission recognition on underwriting
year 2024, as that year continues to perform favourably.
No profit commission has been recognised to date
on underwriting year 2025.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
UK Insurance review continued
Admiral Group Plc Annual Report and Accounts 2025
40
UK Pet and Travel Insurance financial review
£m
2025
2024
Turnover1
217.3
137.2
Insurance revenue net of XoL1
188.3
103.4
Insurance expenses1
(73.1)
(56.0)
Insurance claims net of XoL1
(110.5)
(59.9)
Underwriting result, net of XoL reinsurance1
4.7
(12.5)
Net investment income
3.0
–
Other income
0.2
–
UK Travel and Pet result before tax1
7.9
(12.5)
Segment performance indicators
2025
2024
Loss ratio1, 2
58.7%
57.9%
Expense ratio1, 2
38.8%
54.2%
Combined ratio1, 2
97.5%
112.1%
Insurance service margin1, 2
2.5%
(12.1%)
Customers insured at period end
1.56m
1.14m
1 Alternative Performance Measures – refer to the end of this report for definition and explanation.
2 Alternative Performance Measures – refer to Appendix 1c for explanation and reconciliation to statutory income statement measures.
The combined Travel and Pet Insurance businesses
reported a profit in 2025 (£7.9 million; (2024 loss:
£12.5 million), with Pet achieving break-even for the first
time and Travel reporting higher profits. The improvement
reflects the impact of increased premiums earning through
from the strong growth in both customers (+38% to 1.6
million) and turnover (+58% to £217.3 million), reflecting
both organic growth and the impact of Pet Insurance
renewals from the More Than acquisition.
UK regulatory developments
Over recent periods there have been a number of industry-
wide regulatory reviews and publications that have a
potential impact on the general insurance market and the
Group. In particular, the FCA has conducted reviews in
respect of motor total loss claims, premium finance, motor
insurance pricing and claims, home and travel insurance
claims practices, the evaluation of general insurance pricing
practices and add-on products that have involved the Group.
The Group engages extensively with its regulators as part
of normal operations and has participated in these industry-
wide regulatory reviews, with UK Motor total loss costs
recognised and remediation underway, the premium
finance review concluded, and no material impacts
expected as a result of other ongoing reviews.
Admiral continues to focus on providing fairly priced
products which meet the needs of its customers, as well
as monitoring and responding to regulatory developments
as they progress.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
UK Insurance review continued
Admiral Group Plc Annual Report and Accounts 2025
41
How our ‘20% Projects’ power people,
progress and problem-solving
Using data and artificial intelligence (‘AI’)
to make our colleagues’ and customers’
lives easier is a key priority for us.
In the UK, we’ve launched our 20% Projects programme,
which is a cross-functional initiative that provides
colleagues with the opportunity to spend 20% of their
time using data and AI to solve real business challenges
outside of their normal role for up to 12 weeks.
Teams of up to five people from across the UK’s 900-
person strong data community come together to explore,
test and deliver solutions that create tangible business
value. It is also a great opportunity to build connections,
with colleagues at every level and from each UK business
taking part.
The Data and AI Academy completed 11, 20% Projects
in 2025, which included a review of the way that Veygo
evolves its customer chatbot to provide personalised
policy help, with a pilot for existing customers already live,
as well as building a platform that supports our fraud
analysts to make smarter and faster decisions when
detecting application fraud.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
42
11
20% projects
completed in 2025
Going the extra mile with our road safety campaigns
As a leading motor insurer, we regularly see
the devastating impact of dangerous driving.
We want to see safer roads for all and believe
that we have an important role to play in this
beyond the products that we offer that reward
good driving behaviour.
Following on from our award-winning ‘Words To Live By’
road safety campaign in 2024, one in five respondents
surveyed by Admiral said that they would have a meaningful
conversation about safer driving with a family member1.
In 2025, our UK Motor Insurance business, Admiral,
launched its second road safety campaign ‘Your Ride, Your
Rules’. The campaign urged young drivers and passengers
to set the rules when in the car with their peers and to speak
up about unsafe driving habits. The campaign also supports
the UK Government’s aim of reducing the number of deaths
and injuries on British roads by 65% by 2035.
Young drivers with passengers their own age are four
times more likely to be in a fatal crash than if they drive
alone. What happens inside the car influences how people
drive - whether it’s pressure to take risks, distractions from
friends, or silence when things don’t feel right.
This campaign was inspired by research which found that
79% of young adults behave differently behind the wheel
with friends in the car, with a third saying they wouldn’t call
out risky driving, even if they felt uncomfortable2.
Admiral wanted the campaign to be authentic and relevant,
so it teamed up with a range of young content creators
who shared their own experiences of calling out risky
driving, and how they turn awkward silences into confident
conversations. This includes assigning roles before the
journey and using humour to take away the awkwardness.
Behavioural psychologist Jo Hemmings also shared her
advice with young people on how to open up the
conversation on safe driving behaviours, which was
included on the campaign page to empower young people
to speak up about unsafe driving habits and make our
roads safer for everyone.
Post campaign research showed that the message had
got through to young adults, with 58% saying that they
would speak up when they are a passenger and the driver
is driving recklessly, while 55% said they would speak
up when driving if their passengers were distracting them.
In Italy, various new legislation has been passed such
as new penalties for driving whilst using a mobile phone
and new speed limits in major cities. Our Italian business,
ConTe, continues to promote responsible driving
behaviours on its social media channels. Its ‘superpower’
campaign aims to encourage safer driving habits by
highlighting that drivers that respect the rules of the road
are true ‘superheroes’, as doing so helps to save lives.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
43
1 Survey conducted by YouGov involving
2,000 people who had seen the Words
To Live By campaign.
2 Survey conducted by Admiral Motor
Insurance involving 2,000 young
drivers under the age of 24.
Young adults fear creating awkwardness
or seeming boring to their mates when calling
out risky behaviour in the car. Your Ride,
Your Rules aims to give young adults the
confidence to speak up in a way that feels
comfortable for them. We hope to spark
conversations about shared responsibilities
and provide practical ways to help reduce
the number of incidents on our roads.”
Adam Gavin,
Admiral Motor Director
2025 has been a year of significant
recovery and strategic progress
“Prioritising underwriting discipline and a
sustained focus on margin enhancement has
contributed to healthier books across the
region and improved operational efficiency.”
Costantino Moretti
CEO, European Insurance
Our performance
European Insurance profit before tax
£7m
European Insurance customer numbers
1.9 million
2025
2025
2024
2024
2025 has been a year of significant recovery
and strategic progression for our European
businesses, returning to a state of combined
profitability, with continued focus on
strengthening portfolio health.
The European entities have made good progress on their
strategic plan, whilst prioritising underwriting discipline and
a sustained focus on margin enhancement. This emphasis
on portfolio quality has contributed to healthier books
across the region and improved operational efficiency.
While market conditions varied, with some regions
experiencing continued tariff increases, and others seeing
modest premium growth, our businesses successfully
navigated these environments through rigorous risk
selection and cost control.
France had an exceptional year, with L’olivier increasing its
Motor Insurance policy count by 15%, while simultaneously
enhancing margins and service quality. Household
Insurance also showed strong momentum with a 25%
increase in policies, albeit from a low base. Looking ahead,
the recruitment of experienced personnel and improved
segmentation will be key levers for continued acceleration.
Italy has seen 2025 as a year of restoration of profits,
focusing on risk selection and improving the health of the
book. Although this led to a 15% reduction in the customer
base, a thorough cost review, fully modernised technology
and data infrastructures have created a leaner organisation,
putting us in a good position to return to sustainable growth
in 2026.
Spain advanced its multichannel growth and maintained
strong underwriting discipline. The core direct business
continues to deliver a good performance, while we
maintained investments in the broker channel as well as
in the ING bank insurance partnership, both of which saw
improvements in commercial and technical results.
Our modern, cloud‑native infrastructure gives us a strong
foundation of high‑quality data assets. Building on this,
we are scaling our core AI capabilities and piloting GenAI
in the areas with the greatest potential.
Our focus remains on our people and culture, with Spain
achieving a “Level A” Certificate of Excellence from
Fundación MásFamilia, France volunteering over 2,000
hours to local charities, and Italy receiving a special
recognition for Women, Diversity, Equality and Inclusion for
Great Place to Work®. I am very grateful for the hard work
and dedication of our employees across Europe, whose
commitment remains instrumental to our success.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
European Insurance review
Admiral Group Plc Annual Report and Accounts 2025
44
£7m
£(20)m
1.9m
2.0m
France
Spain
Italy
In Motor Insurance, we grew
our policy count by 15%, while
strengthening our margins (combined
ratio of 85%), delivering £13.4 million
in profits and enhancing excellent
service levels, reflected by great
customer feedback scores from all
major customer platforms. This is
especially notable in the French
market where many insurers have
had to maintain, or intensify, tariff
increases. Our recent strategic
choices, particularly around pricing,
customer mix, and investments in
operational efficiency are bearing
fruit and position us well for continued
rapid and profitable growth.
In Household Insurance, we pursued
a focused growth strategy, expanding
our in-force policy base by 25%, while
strengthening our segmentation
and pricing capabilities. These
enhancements, supported by the
addition of experienced talent from
the French market, will be essential
in sustaining our momentum in the
years ahead.
In addition, we achieved the Great
Place to Work® for Women award,
Top 30 in the Great Place to Work®
in our category, 100% in the Gender
Equality index, and exceeded 2,000
volunteering hours.
These strong results are a testament
to the dedication and hard work of
every L’olivier team member. Their
commitment continues to impress me,
and I extend my sincere thanks to
each of them.
In 2025, Admiral Seguros continued
to advance its multichannel growth
strategy, while maintaining sound
underwriting practices. We also earned
the “Level A” Certificate of Excellence
from Fundación MásFamilia,
recognising our commitment to work-
life balance and equal opportunities.
The market saw further premium
increases, particularly in the first half,
marking its first return to profitability
since 2022. Against this backdrop,
we remained focused on risk selection
and cost control within our core direct
business, keeping volumes stable.
In our expanding distribution channels,
brokers delivered a strong
improvement in technical results,
driven by new commercial agreements
and a continued shift toward higher-
margin segments. Our partnership
with ING bank also gained momentum,
with policy numbers doubling over
the year, albeit from a small base.
We made progress in technology
and transformation and began the
adoption of the new European
data platform as well as enhancing
customer processes, leading to
improved contact centre efficiency
and customer satisfaction.
While underlying margins continued
to improve, reported results were
affected by accounting adjustments
due to delays in profit recognition
under new reinsurance contracts. I am
grateful to the team for their hard work
throughout 2025 and look forward
to new opportunities in 2026.
2025 marked a year of recovery
for ConTe. In an environment of
contained inflation and modest
market-wide premium increases,
the team succeeded in significantly
improving the health of the portfolio
and ultimately restoring profitability.
This improvement in performance
was driven by rate increases, risk
selection, and more robust rating
controls. As a result of our sustained
focus on margins, our policy count
was reduced by 15%. Our expense
ratio remained stable despite the
reduced scale thanks to a thorough
cost review and efficiency mindset.
ConTe also accelerated its digital
transformation, achieving a full
legacy-free infrastructure.
Importantly, this progress was made
while preserving market-leading
customer service, reflected in our top
Google and Trustpilot scores across
the insurance sector.
Our people continue to see ConTe
as a special place to work, supported
by our inclusive culture – reflected in
our third-place Great Place to Work®
ranking for the second year running,
and a record 88% Trust Index.
Looking ahead to 2026, our focus will
centre on three pillars: strengthening
governance through our new data
platform and rating system, returning
to sustainable growth, whilst
remaining disciplined, and scaling
our presence in the intermediary
market so we can support even
more customers.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
European Insurance review continued
Admiral Group Plc Annual Report and Accounts 2025
45
Julien Bouverot
CEO L’olivier
Sarah Harris
CEO, Admiral
Seguros
Antonio Bagetta
CEO, ConTe
European Insurance financial performance
£m
2025
2024
Turnover1
674.3
639.9
Total premiums written1
620.2
596.7
Insurance revenue
654.5
606.7
Insurance revenue net of XoL1
623.5
572.7
Insurance expenses1
(175.0)
(168.0)
Insurance claims net of XoL1
(414.0)
(437.7)
Underwriting result, net of XoL1
34.5
(33.0)
Quota share reinsurance result1, 3
(31.3)
12.4
Movement in net onerous loss component
1.2
0.4
Underwriting result1
4.4
(20.2)
Net investment income
2.7
1.4
Net other revenue
(0.5)
(0.9)
European Insurance result, before tax1
6.6
(19.7)
Segment performance indicators
2025
2024
Loss ratio1, 2
66.4%
76.4%
Expense ratio1, 2
28.1%
29.3%
Combined ratio1
94.5%
105.7%
Insurance service margin1, 2
0.7%
(3.5%)
Customers insured at period end1
1.92m
1.97m
Segment result: European Insurance result1
£m
2025
2024
European Motor
9.3
(14.8)
Spain Motor
(6.7)
(3.1)
Italy Motor
2.6
(22.8)
France Motor
13.4
11.1
Other
(2.7)
(4.9)
European Insurance profit/(loss) before tax
6.6
(19.7)
European Motor Insurance - Geographical analysis1
2025
Spain
Italy
France
Total
Vehicles insured at period end
0.46m
0.81m
0.52m
1.79m
Turnover (£m)
140.1
240.4
275.4
655.9
2024
Spain
Italy
France
Total
Vehicles insured at period end
0.45m
0.96m
0.45m
1.86m
Turnover (£m)
131.8
269.1
224.0
624.9
1 Alternative Performance Measures – refer to the end of this report for definition and explanation.
2 Alternative Performance Measures – refer to Appendix 1d for explanation and reconciliation to statutory income statement measures.
3 Quota share reinsurance result within the segment result excludes reinsurers’ share of share scheme costs.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
European Insurance review continued
Admiral Group Plc Annual Report and Accounts 2025
46
Admiral’s European Insurance businesses reported an
increase in turnover to £674.3 million (2024: £639.9
million). Customer numbers reduced modestly (2%) to
1.92 million (31 December 2024: 1.97 million), with growth
in France more than offset by the result of the strong
pricing action taken in Italy.
The combined result for the segment improved significantly
by £26.3 million to a profit of £6.6 million (2024: loss of £19.7
million) with the combined ratio improving to 94.5% (2024:
105.7%) largely as a result of the pricing action referred to in
Italy leading to a much-improved result compared to 2024,
along with continuing strong profits in France.
The improved underwriting result in the period was partially
offset by the movement in the quota share result, which
changed from a recovery of £12.4 million to a charge of
£31.3 million, reflecting the quota share reinsurers’ share
of the much improved underwriting result. The charge
is greater than the quota share’s proportional value due
to the varying quota share arrangements in each line of
business leading to different phasing of recoveries and
charges depending on the underwriting performance.
Claims reserves in Europe continue to be set at, or very
close to, the maximum 95th percentile risk adjustment
strength allowed under the Group’s reserving policy.
ConTe in Italy reported a small profit of £2.6 million
(2024: loss of £22.8 million), the 2024 result being
impacted by the significant increase to the settlement
inflation rate for large bodily injury claims provided by the
court of Milan (known as the Milano tables) and also the
impact of continued inflation on claims settlement costs,
particularly on business written in 2023. Strong pricing
and underwriting actions taken throughout 2024 and in
2025 show signs of significantly improved loss ratios,
which are now starting to earn through. Vehicles insured
decreased by 16% to 0.81 million (2024: 0.96 million),
as a result of the actions, with turnover decreasing by
slightly less at 11% to £240.4 million (2024: £269.1 million).
L’olivier assurance (France) continued to grow strongly,
with vehicles insured increasing by 15% to 0.52 million
(2024: 0.45 million), and turnover increasing by 23% to
£275.4 million (2024: £224.0 million). Both the reported loss
and expense ratio continued to improve in 2025 with
growth achieved in relatively favourable current market
conditions, resulting in the business reporting higher profits
in 2025 (£13.4 million vs. £11.1 million).
In Admiral Seguros (Spain) customer numbers were
slightly higher at 0.46 million (2024: 0.45 million), leading
to a modest increase in turnover. The underwriting result
excluding quota share reinsurance improved as a result
of decreases in both the loss and expense ratios, in line
with the main focus of the business to improve underlying
profitability. The reported loss for the period was higher
(£6.7 million vs £3.1 million), impacted by new quota share
arrangements in 2025 which result in lower recoveries on
a booked combined ratio basis. Admiral Seguros continues
to focus on sustainable growth, balancing its direct
business with growing in the intermediary channel.
Women in Technology:
ConTe’s Serena Banci
1. Can you tell us about your journey at ConTe?
I joined ConTe in November 2018 and I started my
journey as a developer working in a team that was
responsible for managing legacy products. Over time
I became passionate about the world of rate analysis
and was given the opportunity to work closely with
colleagues from in the Domain Risk team to protect
the business’ digital assets. Today, I am a Software
Architect in the Gold Standard Pricing team, where
we analyse machine learning models to identify
patterns in customer data so that we can better serve
our customers’ needs.
2. How has ConTe helped you grow your career?
Thanks to ConTe, I’ve been able to embark on a
professional growth path that aligns with my personal
values and skills. I’m supported with training not only
aimed at increasing my technical skills, but also at
evolving my soft skills such as communication and
emotional resilience. Working here I have learned that
you can make mistakes (as long as you learn from
them) and that asking for help from colleagues is not
a sign of weakness, but a sign of strength.
3. How does ConTe support women?
Here, my opinion and my voice are listened to and
respected in exactly the same way as my male
colleagues and have helped spark further conversation
and innovation. I recently completed the Leading at
Admiral programme which supports colleagues who
have been identified with leadership potential to grow
within the business with management training and
workshops. Also, ConTe really supported me when
I became a mother. When I returned from maternity
leave, I was given the opportunity to find my work-life
balance without pressure – not many employers offer
colleagues such flexibility.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
European Insurance review continued
Admiral Group Plc Annual Report and Accounts 2025
47
Another year of significant growth
and positive momentum
“We continue to deliver sustainable growth and
are proud of the meaningful steps forward in
how we fund, scale, and serve our customers.”
Emma Powell
CEO, Admiral Money
Our performance
Admiral Money profit before tax
£26m
Gross loans
£1.46bn
2025
2025
2024
2024
2025 was another strong year for Admiral
Money, with several significant milestones
delivered, evolving us into a multi-product
lender with broader distribution. It was a year
in which we combined controlled growth with
meaningful steps forward in how we fund,
scale and serve our customers.
Our vision remains to help more customers with their
lending needs. We provide customers with affordable
guaranteed rates, ensuring transparency and certainty.
We ended the year with over 200,000 customers and
managing over £1.8 billion of loan balances, a 50%
increase since full year 2024. As a result, our gross
income of £159 million has grown 40%.
We continue to be agile in our approach to credit
decisioning and pricing changes, resulting in stable
and expected credit performance with full year cost
of risk of 2.5%, which is the same as 2024.
We effectively managed costs during our growth
and expansion into new distribution channels while
simultaneously enhancing efficiency through increased
automation, delivering a cost income ratio of 39%.
The outcome of this balanced growth, high quality
risk selection and cost discipline has been our fourth
consecutive year of increased profits.
In 2025 we evolved our capital efficient funding strategy
to support future growth with our first forward flow
arrangement. We completed a £146 million back‑book sale
of unsecured personal loans (UPLs) alongside the transfer
of additional balances through ongoing originations.
This resulted in loans with original balances of £426 million
being off-balance sheet at year end. Importantly, Admiral
Money continues to service all loans sold in both the back
book and forward flow sales earning further revenue.
As we grow, our customer promise of value, trust and
ease remains central to everything we do. I’m proud that
our customer satisfaction scores reached new highs and
Trustpilot scores rose to 4.9, compared to 4.4 in 2024.
following enhancements to our customer journeys which
helped us deliver faster decisions and better service at scale.
Internal mobility has helped deepen capability across the
business, colleague satisfaction remained high, and we
were recognised with a People & Culture award at Cnect
Wales, an industry-led employers’ forum for the Welsh
contact centre community. Our commitment to community
also doubled, with over 1,400 volunteering hours.
As I reflect on my first year as CEO, I am incredibly proud
of the team and what we have delivered in 2025 and I’d like
to thank our customers, partners and all my colleagues for
their support.
Looking ahead to 2026, we are in a strong position to grow
further both on- and off-balance sheet, particularly with our
wider distribution channels.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Money review
Admiral Group Plc Annual Report and Accounts 2025
48
£26m
£13m
£1.46bn
£1.17bn
Admiral Money financial review
£m
2025
2024
Total interest income
139.2
112.5
Interest expense1
(61.2)
(43.2)
Net interest income
78.0
69.3
Origination fee income2
17.1
–
Other income
2.4
0.5
Total income
97.5
69.8
Credit loss charge
(33.3)
(26.9)
Expenses
(38.4)
(29.9)
Admiral Money profit before tax3
25.8
13.0
1 Includes £8.3 million intra-group interest expense (2024: £6.1 million).
2 Origination fee income in the year ended 31 December 2025 includes £5.9 million of income relating to a back-book sale of £146.4 million
of loans through a forward flow agreement.
3 Alternative Performance Measures – refer to the end of this report for definition and explanation.
Admiral Money distributes and underwrites unsecured
personal loans (‘UPLs’) and car finance products for UK
consumers through the comparison channels, credit scoring
applications, through car dealerships, and direct to
consumers via the Admiral website. The business aims to
provide customers with affordable guaranteed rates,
ensuring transparency and certainty.
Admiral Money recorded a pre-tax profit of £25.8 million
in 2025 (2024: £13.0 million), continuing the positive
trajectory of the business. During the year, Admiral Money
entered into a forward flow funding arrangement with an
external counterparty, which included an initial sale of
existing UPLs on day one of the arrangement, alongside the
ongoing sale of newly originated loans. As part of the day-
one transaction, a portfolio of UPLs with a total carrying
value of £146.4 million was sold, generating origination fee
income of £5.9 million, alongside a credit provision release
of £4.9 million. After recognising transaction-related costs
of £1.0 million, including the immediate write-off of
unamortised deferred acquisition costs, the initial sale
contributed £9.8 million to profit before tax.
In addition, £279.5 million of newly originated UPLs were
sold during the year under the same forward flow
arrangement, generating further origination fee income of
£11.2 million. Admiral Money continues to service all loans
sold under the arrangement and earned servicing income
of £1.1 million during the period, with incremental servicing
costs driven by increased assets under management
recognised within operating expenses. Gross loan balances
administered for third parties totalled £343.3 million as at
year end 2025 (2024: £nil).
Despite the loan sales, the business has also grown net
interest income by 13% to £78.0 million (2024: £69.3
million). Gross on-balance sheet loan balances totalled
£1.46 billion at the end of the period (2024: £1.17 billion),
with a £0.10 billion (2024: £0.08 billion) expected credit loss
provision. This leads to a net on-balance sheet loan balance
of £1.36 billion (2024: £1.09 billion).
Admiral Money is funded through a combination of internal
and external funding sources. The external funding is
secured against certain loans via a transfer of the rights
to the cash flows to special purpose entities (‘SPEs'). The
securitisation and subsequent issue of notes via SPEs does
not result in a significant transfer of risk from the Group.
The new forward flow facility provides further diversification
of funding and capacity to support origination growth.
Loans sales made through the forward flow arrangement
and initial back book sale do result in a significant transfer
of risk from the Group, and as such the loans sold are
derecognised from the balance sheet.
During the second half of the year, a portion of the loans
sold through the forward flow were subsequently
securitised through the public markets by the purchaser.
The business continues to service the loans included in this
transaction on the same commercial basis as those in the
forward flow.
Credit loss models reflect the latest economic assumptions
and post model adjustments (‘PMA’) remain in place to
maintain an appropriately prudent level of provisioning
reflecting the credit risk in the loan book.
The provision coverage ratio varied by asset class, with
UPLs increasing to 7.6% (2024: 7.2%) and car finance
increasing to 1.9% (2024: 1.6%). The slight increase in
coverage in the year is largely driven by some softening
in economic forecasts, particularly in the expected UK
unemployment rate. Despite the macro back drop,
the performance of the portfolios remain strong, with an
ongoing focus on writing high-quality loans contributing
to this positive loss performance.
Post-model adjustments reduced to £3.8 million
(2024: £4.6 million) reflecting continued refinements
to the IFRS 9 provisioning model, particularly in relation
to economic uncertainty, as well as reductions in cost-of-
living related PMAs.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Money review continued
Admiral Group Plc Annual Report and Accounts 2025
49
Other Group items financial review
£m
2025
20242
Share scheme charges
(71.9)
(60.7)
Other central costs
(53.4)
(51.1)
Admiral Pioneer result
(11.3)
(11.3)
Business development costs
(18.4)
(20.1)
Finance charges1
(23.5)
(26.3)
Sale of shares in Insurify
–
12.5
Other interest and investment income
17.7
13.5
Total
(160.8)
(143.5)
1 Finance charges within other Group items include £1.1 million (2024: £1.8 million) that relate to intra-group arrangements, with the
corresponding income presented within the UK Insurance result.
2 Other group costs in 2024 have been re-presented to exclude costs in relation to the US Motor business, which are presented within
discontinued operations following its sale.
Share scheme charges relate to the Group’s two employee
share schemes. The increase in charge in the period
is driven by both increases in bonuses linked to dividends
paid in the year and the higher share price.
Other central costs consist of Group-related expenses,
an allocation of Group employee costs and the cost
of a number of significant Group projects. Total costs
increased modestly in 2025 primarily as a result of higher
spend on the Group’s internal model development as
activity continues, towards application for approval, and
higher ongoing spend on central Group employee expenses
and community initiatives, which outweighed the 2024
additional one-off employee bonus costs.
Admiral launched Admiral Pioneer in 2020 to focus on new
product diversification opportunities. Pioneer businesses
include Veygo (short-term and learner driver car insurance
in the UK), and Admiral business (commercial insurance,
including fleet). Pioneer’s businesses reported a loss of
£11.3 million in 2025 (2024: £11.3 million), due primarily
to costs of investing in the development of new products,
offset in part by profits in Veygo. Losses continue to be
recognised on new commercial insurance lines as premiums
are not yet materially earning through.
Business development costs were lower at £18.4 million
(2024: £20.1 million), with 2024 including non-recurring
transaction and other costs of £6.5 million related to the
More Than acquisition, whilst 2025 comprises increased
spend on alternative lending products such as secured
homeowner loans in the UK.
Finance charges of £23.5 million (2024: £26.3 million)
primarily related to interest on the £250 million
subordinated notes issued in July 2023 at a rate of 8.5%,
with the charge in 2024 including interest on the £55 million
subordinated loan notes issued in July 2014 prior
to redemption.
Other interest and investment income increased to
£17.7 million (2024: £13.5 million), primarily due to higher
investments held in 2025.
As part of the disposal of compare.com in 2023, the Group
received shares as a minority interest shareholder of
the acquirer, Insurify.com. In 2024, the Group sold those
shares, resulting in a one-off gain of £12.5 million.
Award-winning governance
In October, our Group Company Secretary
team and Responsible AI and Data team
were acknowledged for their outstanding
efforts to keeping our business and
customers safe.
Our Group Company Secretary team picked up Team
of the Year at the Chartered Governance Institute
UK & Ireland awards for blending legal expertise and
innovation, and integrating AI into board operations,
while our Responsible AI and Data team were Highly
Commended at the DataIQ awards for the way that they
ensure that AI is used responsibly across the Group.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Other Group items
Admiral Group Plc Annual Report and Accounts 2025
50
The Group manages its capital to ensure that all entities
are able to continue as going concerns, and that regulated
entities comfortably meet regulatory capital requirements.
Surplus capital within subsidiaries is regularly paid up to the
Group holding company in the form of dividends.
The Group’s regulatory capital is based on the Solvency II
Standard Formula, with a capital add-on to reflect recognised
limitations in the Standard Formula with respect to Admiral’s
business, predominantly in respect of profit commission
arrangements in co-insurance and reinsurance agreements.
The current regulatory approved capital add-on
is £24 million.
Admiral continues to develop its partial internal model
to form the basis of calculating capital requirements post-
approval. Intense work has continued over the past year,
including regular engagement with the regulator, and the
Group is now close to submitting a formal application for
approval to its main prudential regulators.
The estimated and unaudited Solvency ratio for the Group
at the date of this report is as follows:
Group capital position (estimated and unaudited)
£bn
2025
2024
Eligible Own Funds (post-dividend)1
1.83
1.74
Solvency II capital requirement2
0.95
0.86
Surplus over capital requirement
0.88
0.88
Solvency ratio (post-dividend)3
193%
203%
1 Own Funds include approximately £250 million of Tier 2 capital following the Group’s issue of subordinated loan notes in 2024.
Own Funds reported above are inclusive of additional own funds generated post-period-end up to the date of this report.
2 Solvency capital requirement (‘SCR’) includes updated, unapproved capital add-on.
3 Solvency ratio calculated on a volatility adjusted basis.
The Group’s solvency position remains strong at 193%,
though lower than the 2024 closing position of 203%.
There has been continued growth in own funds during
2025, but at a lower rate due to both high dividends
declared and paid as a result of the strong reported result
in H2 2024 and H1 2025, the purchase of shares to fund
the employee share trusts, and lower written profits from
the core UK Motor business relative to 2024.
The SCR also increased over the year, primarily due to
the growth in the loans balances, particularly in H2 2025,
along with premium growth across the Group’s businesses
and the associated impact on underwriting and operational
risk elements of the capital requirement.
The estimated solvency ratio including the fixed Group
capital add-on of £24 million, that is calculated at the
balance sheet date rather than the date of this report, and
is expected to be reported in the Group’s 2025 Solvency
and Financial Condition Report (‘SFCR’) is as follows:
Regulatory solvency ratio (estimated and unaudited)
2025
2024
Solvency ratio as reported above
193%
203%
Change in valuation date1
(11)%
(9)%
Other (including impact of updated, unapproved capital add-on)
3%
4%
Solvency ratio to be reported ('SFCR')
185%
198%
Solvency ratio sensitivities
2025
2024
UK Motor – incurred loss ratio +5%2
(21) %
(26) %
UK Motor – 1-in-200 catastrophe event
(4) %
(3) %
UK Household – 1-in-200 catastrophe event
(3) %
(3) %
Interest rate – yield curve up 100 bps
(1) %
(1) %
Interest rate – yield curve down 100 bps
1 %
–%
Credit spreads widen 100 bps
(2) %
(2) %
Currency – 10% (2024: 10%) movement in euro and US dollar
(3) %
(2) %
ASHE – long-term inflation assumption up 100 bps (2024: 100 bps)
(6) %
(6) %
Loans – 100% weighting to ‘severe’ scenario3
(1) %
(1) %
1 The solvency ratio reported above includes additional own funds generated post-year-end up to the date of this report.
2 The lower sensitivity of the incurred loss ratio stress is the result of the lower written premium and relative profitability of the most recent
underwriting year following increased competition in the period driving rate reduction.
3 Refer to note 7 to the financial statements for further information on the ‘severe’ scenario.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Group capital structure and financial position
Admiral Group Plc Annual Report and Accounts 2025
51
Change in capital return policy
As set out previously, there has been a change in the
Group’s approach to capital return which will be in place
from the interim 2026 dividend onwards (subject to
regulatory approval). The Group’s revised dividend
approach is to:
• Pay a normal dividend equal to 65% of post-tax profits
for the period
• Pay either a special dividend or buy back and cancel
shares to the value of surplus economic capital available
at the dividend calculation date (with reference to
available distributable reserves at the calculation date).
Surplus economic capital is calculated as at the dividend
valuation date and is defined as:
• Available capital
• Less capital requirements
• Less risk appetite buffer
• Less any further buffer determined by the Board at the
appropriate time.
The decision whether to distribute via dividend or to
buyback shares will be made by Board determination.
Investments and cash
Investment strategy
Admiral Group’s investment strategy focuses on capital
preservation and low volatility of returns relative to liabilities,
and follows an asset liability matching strategy to control
interest rate, inflation and currency risk. A prudent level
of liquidity is held and the investment portfolio has a
high-quality credit profile. In 2025, the focus remained
on matching, and cashflows were invested into high-quality
assets to take advantage of healthy risk-free rates, whilst
being appropriately cautious on the credit outlook.
The Group holds a range of government bonds, corporate
bonds, alternative and private credit assets, alongside liquid
holdings in cash and money market funds.
A further aim of the strategy is to reduce the Environmental,
Social, and Governance (‘ESG’) related risks in the portfolio,
whilst continuing to achieve sustainable long-term returns.
Admiral’s corporate bond portfolio has an average MSCI
rating of AA.
Total investment income for 2025 was £215.5 million
(2024: £170.9 million).
The investment return on the Group’s investment portfolio
(excluding unrealised losses on derivatives and the
movement in provision for expected credit losses) was
£209.8 million (2024: £177.4 million).
The credit in relation to the movement in provision for
expected credit losses is the result of an accounting
reclassification of a number of assets from fair value
through other comprehensive income to fair value through
profit and loss, and does not impact the overall valuation
of assets.
The reduction in interest rates during 2025 has resulted
in an increase in the market value of the portfolio of £48.7
million (2024: £11.3 million increase), which is reflected
in the Statement of Other Comprehensive Income.
The annualised rate of return was slightly up at 4.1% (2024:
4.0%), driven by reinvestment at improved risk-free rates.
Investment return
£m
2025
2024
Underlying investment income yield
4.1%
4.0%
Investment return
209.8
177.4
Unrealised losses on derivatives
(0.4)
(0.2)
Movement in provision for expected credit losses
6.1
(6.3)
Total investment return
215.5
170.9
Cash and investments analysis
£m
2025
2024
Fixed income and debt securities
3,707.6
3,335.4
Money market funds and other fair value through P&L investments
1,479.3
1,421.0
Cash deposits
57.9
91.7
Cash
301.1
313.6
Total1
5,545.9
5,161.7
1 Total Cash and Investments includes £500.1 million (2024: £354.5 million) of Level 3 investments. Refer to note 6d in the financial
statements for further information.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Group capital structure and financial position continued
Admiral Group Plc Annual Report and Accounts 2025
52
Cashflow
£m
2025
2024
Operating cashflow, before movements in investments
874.4
1,303.4
Transfers to financial investments
(245.8)
(810.3)
Operating cashflow
628.6
493.1
Tax payments
(192.1)
(124.1)
Investing cashflows (capital expenditure)
(95.2)
(144.2)
Financing cashflows
(712.6)
(436.0)
Loans funding through special purpose entity
414.7
178.1
Acquisition of shares
(35.3)
—
Foreign currency translation impact
(20.6)
(6.4)
Net cash movement
(12.5)
(39.5)
Unrealised gains on investments
48.7
11.4
Movement in accrued interest, foreign exchange and unrealised gains on derivatives
102.2
165.0
Net increase in cash and financial investments
384.2
947.2
The main items contributing to the operating cash inflow are as follows:
£m
2025
2024
Profit after tax
742.3
662.9
Change in net insurance contract liabilities
379.5
606.5
Net change in trade receivables and liabilities
29.1
46.3
Change in loans and advances to customers
(539.9)
(231.4)
Non-cash income statement items
50.8
42.8
Taxation expense
212.6
176.3
Operating cashflow, before movements in investments
874.4
1,303.4
The Group continues to generate significant amounts of
cash, and its capital-efficient business model enables the
distribution of the majority of post-tax profits as dividends.
Total cash and investments at 31 December 2025 was
£5,545.9 million (31 December 2024: £5,161.7 million).
The net increase in cash and investments in the period
is £384.2 million (2024: increase of £947.2 million),the
difference due primarily to higher dividend payments in
2025 relative to 2024, as well as a lower relative increase
in cash inflows from the insurance businesses.
Taxation
The tax charge for the period for continuing operations
is £212.6 million (2024: £175.3 million), which equates
to 22.2% (2024: 21.2%) of profit before tax. The effective
tax rate in 2025 was higher than in 2024 due to a reduced
impact from lower overseas tax rates, resulting from
a change in the relative split of profits across different
tax jurisdictions.
Co-insurance and reinsurance
Admiral makes significant use of proportional risk
sharing agreements, where insurers outside the Group
underwrite a majority of the risk generated, either through
co-insurance or quota share reinsurance contracts.
These arrangements include terms which allow Admiral
to retain a significant portion of the profit generated.
Although the primary focus and disclosure is in relation
to the UK Motor Insurance book, similar longer-term
arrangements are in place in the Group’s European
Insurance operations and the UK Household and
Van businesses.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Group capital structure and financial position continued
Admiral Group Plc Annual Report and Accounts 2025
53
UK Motor Insurance
Munich Re and its subsidiary entity, Great Lakes, currently
underwrite 40% of the UK Car business. From 2022, 20%
of this total is on a co-insurance basis (via Great Lakes) and
will extend to 2029. The remaining 20% is on a quota share
reinsurance basis and these arrangements extend to 2026
and 2027 (with discussions on extensions due to take place
in Q2 2026).
The Group also has other quota share reinsurance
arrangements confirmed to at least 2027 covering 38%
of the business written.
The nature of the co-insurance proportion underwritten
by Munich Re (via Great Lakes) in the UK is such that
20% of all Car premium and claims accrue directly to
Great Lakes and are not reflected in the Group’s financial
statements. Similarly, Great Lakes reimburses the Group
for its proportional share of expenses incurred in acquiring
and administering this business.
Admiral’s UK Motor quota share reinsurance arrangements
result in all premiums, claims and expenses that are ceded
to reinsurers being included within the quota share result
in the Group’s financial statements, with a recovery
recognised where years are not yet profitable.
These agreements operate on a funds withheld basis
with Admiral retaining ceded premium (net of the reinsurer
margin), which then covers claims and expenses. If an
underwriting year is not profitable, investment income is
allocated to the withheld fund and used to delay the point
at which cash recoveries are collected from the reinsurer.
Other features of the arrangements include expense
ratio caps and commutation options for Admiral that
become available 24-36 months after the start of the
underwriting year.
Admiral tends to commute its UK Car Insurance quota share
reinsurance contracts 24-36 months after inception of an
underwriting year, assuming there is sufficient confidence
in the profitability of the business covered by the reinsurance
contract and having assessed the solvency implications of the
commutation for the Group and its underwriting subsidiary.
All arrangements covering the 2020 and prior underwriting
years, and a majority of contracts from underwriting year
2021, were commuted as at 31 December 2024. In addition,
the UK Van arrangements for underwriting years 2021 and
2022 were commuted during 2025, along with a small
number of UK Car commutations on underwriting years 2022
and 2023.
UK Household Insurance
The Group’s Household business is supported by long-term
proportional reinsurance arrangements covering 70% of
the risk, that run to at least 2027. In addition, the Group has
non-proportional reinsurance to cover the risk of
catastrophes stemming from weather events.
European Car Insurance
In 2023 and 2024, Admiral retained 35% (Italy), 30%
(France), and 30% (Spain), of the underwriting risk in each
country, respectively, whilst in 2025, Admiral retained 60%
of the underwriting risk in Italy, with the retained share in
France and Spain unchanged. In 2026, Admiral will retain
52.5% (Italy), 40% (France) and 42.5% (Spain) of the
underwriting risk in each country respectively.
Excess of loss reinsurance
The Group also purchases excess of loss reinsurance
to provide protection against large claims and reviews
this cover annually. The UK Motor excess of loss cover
in 2025 remained similar to prior years with cover starting
at £10 million.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Group capital structure and financial position continued
Admiral Group Plc Annual Report and Accounts 2025
54
Our approach to sustainability
Our approach to sustainability is rooted in
our cultural DNA and shaped by our purpose:
‘Help more people look after their future.
Always striving for better, together’. In 2025,
we focused on embedding sustainability more
deeply into our business, taking practical steps
that support long-term progress.
Our strategy is anchored in the United Nations Sustainable
Development Goals (‘SDGs’), which provide a global
blueprint for tackling the world’s most pressing challenges.
We use this framework to guide our priorities and identify
where our initiatives can contribute – such as reducing
emissions (SDG 13: Climate Action), improving circularity in
claims (SDG 12: Responsible Consumption and Production),
and supporting financial resilience and wellbeing (SDG 3:
Good Health and Well-being, and SDG 8: Decent Work and
Economic Growth).
As the only FTSE 100 company headquartered in Wales,
we also take inspiration from the principles of the Well-
being of Future Generations Act, which calls for long-term
thinking and collaborative action. This perspective helps us
consider the needs of future generations alongside today’s
priorities, reinforcing our commitment to responsible
business practices across all regions where we operate.
For Admiral, sustainability means moving beyond
compliance to deliver real impact. This includes working
with suppliers and partners to accelerate responsible
practices and improve how we measure and report impact.
In 2025, we brought sustainability into everyday decisions
through initiatives focused on climate action, economic
opportunity, and wellbeing, while continuing to build
inclusion across our global operations. Our ambition remains
clear: to embed sustainability into every part of
our business so that progress is practical, lasting, and
makes a positive difference for people and the planet.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview
Admiral Group Plc Annual Report and Accounts 2025
55
Our purpose
is to help more
people to look after
their future, while
always striving
for better, together.
Our reporting suite
For more information on our sustainability
commitments and progress, visit our website
to explore our reporting suite:
admiralgroup.co.uk/investor-relations
Sustainability
Report
Net Zero
Transition Plan
Gender Pay Gap
Report
Modern Slavery
Statement
Our purpose framework
Key achievements and focus areas
External recognition
Rising Star
Partnership Awards
The King’s Trust
Sustainability & Privacy
Initiative of the Year
PICASSO Awards
Legendary Status
Great Place to Work® UK
Highly Commended
Best Privacy Initiative
British Data Awards
India’s Best Workplaces
for Women™ Great Place
to Work®
Highly Commended
Responsible AI Initiative
DataIQ Awards
4th Best Workplace
for Women™ Great Place
to Work® UK
Silver, Mental Health &
Wellbeing Wales Awards
MSCI ESG rating assessment
2025: AAA
2024: AAA
2023: AA
2022: AA
CDP Climate Score
2025: B
2024: C
2023: B
2022: D
Sustainalytics ESG Risk Rating
2025: 21.6
2024: 24.2
2023: 24.3
2022: 21.0
ISS ESG performance
2025: C Prime
2024: C-
2023: C-
2022: C-
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
56
£4.4m
spent in community
investment
45k
colleague
volunteering hours
8
New Green Earth
Schools created
through Earthwatch
(two in 2024)
£500k
in colleague match
funding and small grants
Joined Save the
Children Humanitarian
Network
Expanded flood
support: FloodMobile,
Build Back Better,
£1 million National
Trust partnership
Advanced
sustainability in
vehicle repair
Flood Force launched
(reach: 4.8 million)
EV book growth;
Defaqto EV Trailblazer
Joined Partnership for
Carbon Accounting
Financials (‘PCAF’)
Our approach to materiality
At Admiral, we know that for our sustainability efforts to
have real impact, we first need to focus on what matters
most – to our people, our communities, the environment,
and our business.
That’s why, in 2025, we refreshed our Double Materiality
Assessment (‘DMA’). Updating the DMA each year helps
us stay ahead of change, allocate resources effectively,
maintain transparency with stakeholders, and integrate
sustainability into everyday decision making.
The DMA helps us to identify the sustainability issues
that matter most by looking at two perspectives:
• Impact materiality – how our activities affect people
and the environment
• Financial materiality – how sustainability issues could
influence Admiral’s long-term performance and value.
Turning insight into action
The DMA is a strategic tool that guides decision making
across the business. It helps us to:
• Manage sustainability-related risks
• Identify opportunities for innovation and long-term
sustainable growth
• Focus resources where they create the greatest impact.
In 2025, these insights shaped the creation of our
RISE Framework, which focuses on four key areas:
Responsibility, Inclusion, Safety, and Employability.
Our RISE framework provides a clear foundation for further
embedding sustainability into governance, operations,
and culture, helping us deliver long-term value across the
business. For further details, please refer to our 2025
Sustainability Report.
What we did in 2025
We carried out a light-touch refresh of the DMA following
the comprehensive assessment completed in 2024.
Teams across the Group – including Sustainability,
Procurement, Operations, Investments, and People –
reviewed whether any topics had changed in importance.
Outcome
Our material topics remain unchanged from 2024. Climate
change, workforce wellbeing, business conduct, and
customer-related topics continue to be key areas of impact.
We also maintain focus on supply chain sustainability,
diversity and inclusion, and opportunities to improve
circularity in claims and procurement.
2025 materiality assessment results
Environment
Climate change
How we help to mitigate and adapt to climate change, which is the long-term
shift in average temperatures and weather patterns of the Earth, alongside the
use of energy in all our operations.
Biodiversity and
ecosystems
The interactions between our business and the natural environment occurring
mainly through supply chain and policyholder activities, focusing on biodiversity,
biodiversity loss, and the health and functionality of ecosystems.
Resource use and
circular economy
The careful use of natural resources such as fossil fuels and circular economy
principles, which focuses on eliminating waste and preventing the depletion
of natural resources within our operations, while servicing customer claims.
Social
Own workforce
Maintenance of positive working conditions within our organisation, striving
for equal treatment and opportunities for all colleagues, and upholding all other
work-related rights.
Workers in the
value chain
The equal treatment, opportunities and work-related rights for those employed
within our supply chain.
Affected
communities
How we engage with local communities through partnerships and providing
support. We take pride in supporting our local communities, an ethos that has
been in Admiral since the start.
Consumers and
end-users
How we ensure the personal safety of our customers and the protection
of their personal data, and achieve social and financial inclusion.
Governance
Business conduct
How we strive to foster a strong corporate culture emphasising ethical
behaviour and integrity, and are committed to responsible business practices
and transparent reporting.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
57
Our culture: The heart of our progress
Our culture
At Admiral, culture isn’t just policies or awards – it’s the
everyday experience shaped by colleagues who bring
curiosity, kindness, and commitment to making a difference.
Our culture is built on respect, inclusion, and collaboration –
celebrating individuality and welcoming ideas. These values
come to life daily, helping customers through tough
moments, supporting teammates, or volunteering to make
a positive impact.
In 2025, this culture was recognised globally. Admiral Group
ranked among Fortune’s Top 25 World’s Best Workplaces,
and our UK business achieved Great Place to Work®
Legendary Status after 25 consecutive years on their Best
Workplaces list. These accolades, based on independent
surveys and colleague feedback, reflect the trust and sense
of belonging across our teams.
Colleague engagement and voice
Engagement is central to our culture. In our latest Great
Place to Work® survey, 84% of colleagues agreed that
every effort is made to understand their opinions, with
participation reaching 85% across 15,000 colleagues.
Voices are heard at the highest level through our Employee
Consultation Groups (‘ECG’), which influence decisions
on diversity, reward, mental health, and engagement.
Wellbeing
Wellbeing is an integral part of life at Admiral. We aim to
create an environment where colleagues feel supported,
healthy, and able to thrive. Oversight sits with senior
leadership, while day-to-day responsibility lies with our
Health and Wellbeing Team, supported by a dedicated
Workplace Support Team, and a network of wellbeing
representatives. In 2025, we strengthened our mental
health support as 762 line managers completed mental
health training and 72 colleagues became accredited
Mental Health First Aiders – enhancing our ability to offer
meaningful support when it matters most.
We launched a new Health and Wellbeing survey to
understand colleague experiences and shape future
priorities. Listening to feedback helps us identify what’s
working and where we can improve, ensuring wellbeing
remains at the heart of our culture.
Support includes counselling, occupational health
assessments, and wellbeing initiatives covering mental
health, exercise, nutrition, and financial wellbeing, and our
DEI networks.
This year, wellbeing came to life through colleague-led
initiatives. Our Women’s Health Community organised
a fundraising walk for Endometriosis UK, and the Men’s
Health Roundtable created space for honest conversations
about mental and physical health with GP panelists
and speakers from charities Tidy Butt and Andy's Man.
These events reflect our commitment to inclusion and
support for every colleague.
Celebrating our culture
We celebrate individuality and connection through events
like Culture Day, Black History Month, and the launch of the
Every Body Café for colleagues with disabilities and allies.
During Pride Month, our Tŷ Rainbow LGBTQIA+ working
group led the theme ‘More than just a party’ – reminding us
that Pride is about solidarity and allyship. Admiral has been
a proud sponsor of Pride Cymru for 25 years, standing for
equality and visibility.
In 2025, Admiral proudly ranked 4th in the UK’s Best
Workplaces for Women, as recognised by Great Place to
Work®. This achievement reflects the impact of our efforts
to remove barriers, challenge taboos, and create an
environment where women feel seen, heard, and supported
at every level.
762
line managers completed
mental health training
72
colleagues became accredited
Mental Health First Aiders
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
58
Diversity, equity and inclusion (‘DEI’)
This commitment to culture and wellbeing is underpinned
by our approach to diversity, equity, and inclusion.
At Admiral, we are committed to creating an environment
where every colleague feels genuinely supported and
empowered to be themselves. Our DEI vision is realised
through colleague-led networks representing gender
equality, race, ethnicity and culture, LGBTQIA+,
disability and neurodiversity, social mobility, and age.
These networks actively foster allyship and help build
a safe, healthy workplace, with 95% of colleagues
affirming Admiral as a diverse and inclusive employer
in our 2025 Great Place to Work® survey.
Inclusivity starts at recruitment, with job adverts placed
on diverse platforms and accessible tools like Recite Me
to reduce entry barriers. We are proud to be recognised
as a Disability Confident Leader in the UK, ensuring fair
participation and development opportunities for colleagues
with disabilities. We give full and fair consideration to
applications for employment made by disabled persons.
We support colleagues with disabilities during their
employment, making reasonable adjustments to help them
remain in meaningful work and continue their development.
Our wellbeing and workplace support teams are accredited
as workplace needs assessors, and provide customised
adjustment plans for those with health conditions,
neurodiversity, or disabilities. Tools such as Claro Read
are available to all colleagues, supporting universal
design principles.
We champion leadership accountability, with local senior
sponsors and our Group executive sponsor driving progress
across the Group. Our ambition for 2026 is to further
increase representation, for a more diverse workforce.
Our ‘Where You Can’ promise celebrates the unique talents
and journeys of every colleague. Flexible and hybrid
working ensures work fits around life, and our inclusive
culture is strengthened by events, safe spaces, and
community-building initiatives across all countries.
We are proud to hold accreditations such as Neurodiversity
Friendly Employer, Menopause Friendly Employer, and
Living Wage Employer. Programmes like Empowering
Women Across Europe and our Women in Tech team
support talent mobility and leadership progression.
We continue to refine recruitment, talent development,
and retention practices, ensuring our workforce reflects our
customers and communities. Through ongoing education,
awareness campaigns, and leadership training, the Admiral
Group remains dedicated to advancing equity and fostering
a truly inclusive workplace.
Number of
Board members
Percentage of
the Board
Men 7
Men 58%
Women 5
Women 42%
Other 0
Other 0
Not specified / prefer
not to say 0
Not specified / prefer
not to say 0
Percentage of
senior managers
and direct reports1
Number of senior
managers in
accordance with the
Companies Act 20062
Men 62.5%
Men 14
Women 37.5%
Women 10
Other 0
Other 0
Not specified / prefer
not to say 0
Not specified / prefer
not to say 0
Number of all
employees2
Percentage of all
employees
Men 7,162
Men 48.4%
Women 7,525
Women 50.8%
Other3 35
Other3 0.2%
Not specified / prefer
not to say 83.
Not specified / prefer
not to say 0.6%
1 This figure is provided pursuant to the UK Corporate Governance Code 2018 requirement to confirm the gender balance of those
in senior management and their direct reports. The definition of ‘senior management’ for this purpose is the Executive Committee
or the first layer of management below Board level, including the Company Secretary.
2 The number of senior managers and the number of employees of each sex is disclosed for the purposes of section 414C(8) of the
Companies Act 2006. In accordance with section 414C(9) and 414C(10), the definition of ‘senior managers’ includes the Executive
Committee equivalent for Admiral Group and the Directors of the subsidiaries included in the consolidated accounts.
3 Other includes; Non-Binary, Gender Non-conforming and Other Genders. Data as at 31 December 2025.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
59
A
B
A
B
A
B
A
B
A
B
C
D
A
B
C
D
Grow and progress:
Learning that shapes our future
In 2025, colleagues completed 774,340 hours of learning
across the year. During learning at work week alone,
colleagues logged 700+ hours across sessions on digital
skills, data, communication, and wellbeing. Generative
AI was the most attended topic, showing how fast future
skills are shaping our business.
Our senior learning partners work hand-in-hand with
business leaders to identify future skills, design tailored
programmes, and embed development into everyday work.
This collaborative model ensures learning is relevant,
scalable and aligned with long-term goals.
We track progress through clear governance measures:
learning hours, participation rates, career development
reviews, multi-year trends in training investment, and
feedback scores – so we know what works and where
to improve.
Accessible learning for all
Learning is open to everyone – full-time, part-time
and temporary colleagues. Through iLearn, colleagues
completed 212,321 regulatory learning courses, from
ethical standards to leadership skills. Mentoring and
coaching programmes delivered tailored support to
2,053 participants, and we continue to fund degree
programmes and professional certifications.
Innovative programmes
We launched Elevate, our first Governance Academy
programme, with 14 participants, alongside Risk’s Emerging
Talent Programme and Admiral Launchpad – 11 workshops
were facilitated with the Welsh Innovation Centre for
Enterprise. Connect R, our mentoring platform, and agile
learning programmes remain core to our approach.
Performance reviews and feedback
Improvements to performance reviews continue to embed
across the Group, with quarterly cycles and annual
appraisals harmonised for EU entities. Continuous feedback
is supported by 360-degree tools and peer input, while
training evaluation forms and governance forums ensure
learning stays effective and impactful.
774,340
learning hours completed in 2025
Leading at Admiral
At Admiral, culture matters. How we work
together shapes how people feel at work,
how decisions are made, and how we
deliver for customers. That’s why we
created Leading at Admiral – our approach
to leadership development, built around
who we are and what we value.
As the way we work continues to change, the
programme helps people in leadership roles stay
connected to Admiral’s culture, while building the skills
and behaviours needed to lead change well. It supports
our strategic priorities, including our Customer Promise
– value, trust, and ease – by encouraging inclusive,
agile and people‑centred ways of working.
Leading at Admiral is guided by four core principles:
Lead with Meaning, connecting everyday work to
purpose and values; Empower to Succeed, creating
safe and trusting environments; Nurture Talent,
supporting learning and growth; and Drive for Better
Together, focusing on shared improvement.
The programme is delivered through a mix of
purpose‑led workshops, immersive and practical
learning, helping strategy translate into action.
By investing in culture‑led leadership, Admiral supports
wellbeing, inclusion, good governance and long‑term,
responsible success.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
60
Supporting communities: Creating progress together
Our approach to community investment
At Admiral, social purpose isn’t a programme, it’s part
of who we are. Every hour volunteered, every partnership
formed, and every grant awarded reflects our belief that
progress should include everyone. We believe progress
is best when it’s people-powered, and our community
investment strategy reflects this belief – rooted in empathy,
driven by action, and designed to make a meaningful
difference in the lives of those around us.
Admiral has a medium-term ambition to allocate an average
of 1% of operating profit to community investment. In 2025,
we invested £4.4 million to support causes aligned with
our purpose to: help more people look after their future,
always striving for better together. This commitment spans
our international operations across the UK, Europe, India,
and Canada, and is guided by transparency and
measurable impact.
To strengthen accountability, we onboarded the Social
Value Portal (‘SVP’), enabling us to track outcomes using
the nationally recognised TOMs framework. This ensures
our investments – whether financial, time-based, or skills-
driven – deliver real value.
Our approach is structured around:
• Colleague-led impact: Empowering Admiral colleagues
to volunteer, fundraise, and nominate local causes
• Collaborative partnerships: Working with expert
organisations to build resilience in climate, financial
wellbeing, and disaster response
• Inclusive environmental action: Supporting nature-
based solutions and green infrastructure
• Employability and opportunity: Tackling inequality
by helping underrepresented groups access
meaningful work
• Humanitarian support: Responding to global crises with
urgency and compassion.
This culture of giving is reflected in our Great Place to Work
survey, where colleagues said they were proud of Admiral’s
community and charitable approach. Looking ahead, we will
deepen our impact through partnerships, colleague-led
initiatives, and data-driven insights.
Match Fund Impact:
Running For Harriet
Earlier this year, Admiral colleague Michael Price and
his team took on a 55-mile overnight run from Cardiff’s
Noah’s Ark Children’s Hospital to Bristol Children’s
Hospital, inspired by the journeys made by his best
friend’s daughter, Harriet, during her treatment for
a congenital heart condition. The challenge raised a
total of £7,940 for The Grand Appeal, including funds
matched by Admiral, funding specialist equipment
and family services that make long hospital stays more
bearable. Michael said, “I’m incredibly proud of what
we achieved together and grateful for Admiral’s
support in helping us make a bigger impact for children
and families when they need it most.”
This story shows how Admiral’s Match Fund amplifies
colleague-led initiatives, turning personal passion into
meaningful community impact.
We invested
£4.4m
to support causes aligned
with our purpose
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
61
Driving impact through people
and partnerships
Our colleagues are at the heart of Admiral’s community
investment. Their passion and commitment turn our
purpose into action.
In 2025, Admiral colleagues contributed over 45,000
volunteering hours, supporting causes from health boards
and food banks to schools, cultural events, and
environmental clean-ups. Volunteering is more than giving
time – it builds empathy, strengthens local networks,
and connects our people to real-world challenges.
Through our Match Fund programme, Admiral doubled the
impact of colleague fundraising by matching donations to
registered charities. In 2025, we approved 167 match fund
applications, supporting 87 charities, including 61 focused on
health and wellbeing. Over £169,000 was matched, helping
causes from cancer research to mental health support.
Our Community Small Grants scheme provides funding
to grassroots organisations nominated by colleagues.
Any Admiral colleague can apply for funding to support
a cause that matters locally – whether it’s a youth sports
team, a cultural event, or a renewable energy project.
We granted over 500 applications, supporting more than
400 clubs, charities, and community groups – from youth
sports teams to knitting circles and solar panel projects.
These initiatives reflect our belief that local voices matter.
Strategic partnerships amplify this impact. In 2025,
we focused on:
• Climate resilience: Through our Green Fund, we
partnered with WWT, Earthwatch, Walk Wheel Cycle
Trust, and the National Trust to restore habitats, improve
infrastructure, and deliver climate education. For
example, through Earthwatch Europe we funded Wales’
first Green Earth Schools, and in 2025 grew the number
of Earth Schools in Wales from two to ten, engaging
thousands of children in citizen science projects
• Financial resilience: We supported programmes that
promote financial literacy and digital skills, helping
individuals and families build confidence and resilience in
a changing economy. Since 2022, Admiral has partnered
with The King’s Trust to deliver the Digital Skills Pathway
Cymru, which has supported over 800 young people.
Our commitment has led to 350 positive outcomes
(employment, education or training), helping those
furthest from the labour market build confidence and
vital digital skills for the future.
Looking ahead, we’re prioritising digital and skills, ensuring
young people are ready for the jobs of tomorrow. This year,
our impact was recognised with The King’s Trust Rising Star
Award and Gold Patron Partner status, celebrating our
dedication to empowering young people and driving
positive change in our communities. These efforts
demonstrate Admiral’s commitment to collaboration,
combining colleague passion with expert partnerships
to create lasting, measurable change.
Earthwatch Europe:
Bringing nature back
to cities
Admiral is Wales’ first corporate supporter
and largest contributor to Earthwatch
Europe’s Nature in Cities programme.
Together, we’ve created ten Green Earth Schools and
funded two Tiny Forests across Port Talbot, Swansea,
Newport, and Cardiff, giving over 2,200 children
hands-on environmental learning opportunities and
training more than 70 teachers to embed sustainability
in education.
This partnership tackles inequality by increasing access
to green spaces, helping communities in South Wales
thrive by creating healthier, greener environments.
Admiral colleagues have also volunteered at planting
days and championed environmental action during our
internal Green Week campaign.
Looking ahead, we’re committed to growing this impact
further, helping communities flourish and inspiring the
next generation to protect our planet.
Admiral colleagues contributed over
45,000
volunteering hours in 2025
We supported
87
charities through match funding in 2025
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
62
Building a resilient future
Environmental action remained a priority in 2025.
In partnership with the Welsh Sports Association,
Admiral launched the Sustainability in Sport Fund,
enabling community sports organisations to pitch for seed
funding to drive innovation in sustainability. These projects
embed sustainable practices into grassroots sport –
from promoting low-carbon travel for players and fans,
to installing energy-efficient technology at local facilities.
One initiative saw the Boys & Girls Club of Wales’ young
eco-leaders embark on a 100-mile canoe expedition,
monitoring water quality, documenting local flora and
fauna, and deepening their environmental awareness
along the way.
We also advanced employability and opportunity through
partnerships with the King’s Trust and Generation.
These programmes delivered digital skills and job-ready
training for under-represented groups, helping hundreds
of participants gain confidence and secure employment
in high-demand sectors.
Humanitarian support is another cornerstone of our
strategy. In 2025, Admiral joined the Disasters Emergency
Committee Rapid Response network, activating our first
appeal for the Myanmar earthquake, and others through
the year. This partnership ensures rapid, effective aid when
communities need it most. Admiral colleagues also
contributed through global volunteering and fundraising
efforts, demonstrating the power of people-led action even
in times of crisis. In addition to DEC appeals, Admiral joined
Save the Children’s Humanitarian Network, and contributed
to Plan International’s outreach work covering rapid funding
for disaster risk management and climate hazard
anticipation globally, enabling interventions before hazards
strike. Through Plan International, we also supported local
efforts in Burkina Faso, enabling woman and young people
to access sustainable livelihoods, while protecting
and conserving their local environment.
Admiral will continue to champion inclusive growth,
climate resilience, and humanitarian response – putting
people at the heart of progress. As we look ahead,
we’ll keep listening to communities, backing bold ideas,
and empowering our colleagues to support change.
Women Unlimited
Admiral supports Women Unlimited,
a 16-week employability programme
delivered through Nova Scotia Community
College (‘NSCC’) that empowers women
and gender diverse individuals to enter
trades and technology–sectors where
women represent just 5% of the workforce
in Nova Scotia.
Through a three-year CAD $195,000 funding
commitment, Admiral helps remove financial barriers
by providing bursaries, cost-of-living support and
emergency assistance. In 2025, Women Unlimited
supported 96 participants into trades and technology
careers, building on 155 placements in 2024, with 53
Admiral Insurance bursaries awarded in 2025 alone.
The programme improves access to education, builds
confidence, and enables participants to complete
training and transition into sustainable employment,
helping address skills shortages, while advancing
gender diversity and economic opportunity across
the region.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
63
Protecting people in a digital world:
Advancing responsible progress
Technology that puts people first
At Admiral, technology isn’t just about systems – it’s about
people. In 2025, we invested in digital innovation that makes
life fairer, safer, and more accessible for customers,
colleagues, and communities. From advanced cybersecurity
to inclusive skills programmes that open doors for future tech
talent, we’re using technology to drive progress responsibly.
Keeping data secure and accessible
Every day, Admiral handles sensitive information – whether
it’s for our customers, colleagues, or partners. Protecting
that data is non-negotiable. We operate an Information
Security Management System aligned with the Information
Security Forum’s Standard of Good Practice, which draws
on multiple industry frameworks, including ISO 27001, the
NIST Cybersecurity Framework, and Cloud Security Alliance
(‘CSA’) guidelines.
This means regular risk assessments, strong encryption,
and independent audits, including CBEST exercises
that simulate real-world cyberattacks. We also run
frequent phishing simulation campaigns to keep security
awareness high.
Our privacy and responsible data team oversees
compliance with UK and EU GDPR and the EU AI Act, while
helping teams apply responsible and ethical practices in AI
projects. In 2025, our work earned industry recognition,
including the PICASSO Award for Sustainability and Privacy
Initiative of the Year and a Data IQ Highly Commended
Award for Responsible AI.
Empowering our people
Technology is changing fast, and we want our colleagues
to feel confident and ready. In 2025:
• Admiral colleagues achieved industry-leading
certifications like CISSP and CISM, with others
pursuing postgraduate degrees in cyber security
and software security
• We launched Data Skills for All, a learning pathway
through our Data and AI Academy, helping colleagues
build confidence in data-driven decision making
• The Academy hosted a hackathon with 90 participants
and celebrated Love Data Week with interactive sessions.
Championing diversity in tech
We’re proud to partner with Women in Data, an organisation
that shares our commitment to development and inclusion.
In 2025, we hosted the 10th Anniversary Women in Data
event at our Tŷ Admiral office, featuring an inspiring panel
of leaders from Admiral and across the industry.
We also celebrated success at the Women in Tech
Excellence Awards, where Admiral received eight
nominations: Best Employer, IT Leader, Rising Star,
Role Model, Team Leader and Transformation Leader,
Hero of the Year (Highly Commended), and Engineer
of the Year (Winner).
Opening doors to tech careers
Digital inclusion matters. That’s why we partner with
organisations to help people gain the skills they need
for the future. In 2025, we delivered digital skills sessions
through The King’s Trust, Code First Girls and continued
our partnership with Cyber College Cymru.
We also continued to grow talent through our Data
Graduate Programmes in Analytics and Data Science,
and our Data Analytics Apprenticeship.
Driving better decisions with data quality
Good decisions need good data. That’s why we are further
investing in data assurance platforms that enable real-time
monitoring of data quality across the business. This helps
ensure that our data is accurate, consistent, and reliable –
essential for compliance and for delivering the best
outcomes for our customers.
Looking ahead
Technology will keep evolving, but our commitment remains
the same: to use innovation responsibly and inclusively.
By focusing on fairness, security, and accessibility,
we build trust with customers, empower colleagues,
and strengthen communities.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
64
Governance: Driving responsible progress
Responsible progress
At Admiral, being a responsible business is central to
our purpose: helping more people look after their future,
always striving for better together. Acting with integrity and
operating responsibly are essential because trust underpins
how we do business. In 2025, we focused on practical
actions to strengthen this commitment – from managing
sustainability risks and building resilient supply chains to
continuing our sustainability-linked loan.
Our customer promise
Our customer promise sets out what customers can
expect from us when they interact with Admiral. It focuses
on three principles:
• Value means fairness and relevance, offering competitive
prices and products designed to meet diverse needs
• Trust means being clear and reliable – providing
transparent information and acting with integrity
• Ease means simplicity and accessibility – using clear
language and offering multiple channels for quick
communication.
This framework ensures consistency in how we design
products and deliver everyday experiences. It is embedded
across all teams – from claims and contact centres to tech,
risk, and marketing – so every decision reflects our values.
Managing sustainability risks
Sustainability risk is embedded within the Group’s
Enterprise Risk Management Framework. During the year,
we expanded our approach to explicitly include governance
and social risks alongside the climate risk management
framework we introduced in 2024. We also simplified tools
and methodologies to align with the wider Group approach,
making risk registers easier to use and improving
consistency across teams.
Other enhancements include the increased use of MI
to monitor physical risks such as floods and storms,
transition risks driven by regulatory and technological
change, and governance risks. In addition, we continued
integrating climate risk into our Own Risk and Solvency
Assessment (‘ORSA’), modelling three climate scenarios
to assess potential impacts on solvency. For further detail,
please refer to our Task Force on Climate-related Financial
Disclosures (‘TCFD’) disclosure on page 76.
Responsible communication
Clear and fair communication is essential to building trust.
In 2025, we strengthened governance for sustainability
messaging through a formal review process, ensuring
claims are evidence-based and compliant with FCA and
ASA guidelines.
Accessibility remains a priority: we use plain English, avoid
jargon, and design content for screen readers. We also
partner with Plain Numbers to make numerical information
easier to understand.
Marketing and communications teams received specialist
training to avoid greenwashing, and we expanded
resources for vulnerable customers. Campaigns such
as Your Ride, Your Rules promoted shared responsibility
for safer driving, reflecting our values of Trust.
Responsible investment
Our Investment Policy is designed to control sustainability
risks and achieve more sustainable long-term returns.
For climate risk specifically, we align with the IIGCC Net
Zero Investment Framework. In 2025, we continued to
strengthen this approach by maintaining exclusions for
sectors inconsistent with net zero – such as coal and oil
sands – while progressing our SDG-aligned targets, such
as climate solutions. We monitored progress against our
net zero targets by reducing metrics like Weighted Average
Carbon Intensity (‘WACI’) and Financed Emissions.
Engagement through asset managers remained a core
focus to ensure sustainability considerations are included
in investment decisions.
Business ethics and human rights
We maintain zero tolerance for bribery, corruption, and
unethical practices, reinforced through our Code of
Conduct and mandatory training programmes. In 2025,
we partnered with Slave Free Alliance to develop our
Modern Slavery Toolkit and improve training.
Driving supply chain improvements
We integrate sustainability criteria into procurement
decisions and encourage suppliers to adopt carbon action
plans. Our third-party risk management framework is
designed to align with our values across environment,
financial crime, data protection, ethical practices, and
modern slavery. Supplier practices are assessed throughout
their lifecycle – from initial due diligence to ongoing
monitoring – with corrective actions where needed.
In 2025, we strengthened this approach by using platforms
such as EcoVadis and Risk Ledger to assess risks and
provide targeted support. We hosted engagement sessions
with our motor repair providers to drive collaboration on
shared goals. We engaged with our top 200 corporate
suppliers to encourage them to commit to SBTs and
complete an EcoVadis sustainability assessment so we
can better understand and improve sustainability across
our supply chain
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
65
Advocacy and collaboration
In 2025, Admiral engaged in industry discussions on climate
resilience, road safety, motor insurance affordability, good
employment practice, and responsible finance. We co-
hosted a session during Wales Week in London with PwC
to showcase Welsh sustainability leadership and joined
a Treasury Select Committee session on flood resilience.
Beyond events, we influenced best practice and policy
through forums such as the FCA’s Climate Financial Risk
Forum, the Partnership for Carbon Accounting Financials
(‘PCAF’), and the FloodAction Coalition, helping explore
emerging ideas on climate risk and carbon accounting.
We also worked with associations including ABI, CBI Wales,
and European bodies such as UNESPA to promote
sustainable insurance practices.
Governance
In 2025, Admiral Group continued to strengthen its
sustainability governance under the continued oversight
of the Group Board, building on our 2024 framework.
The Group sustainability team worked closely with
governance committees to embed sustainability into
decision making and operations, ensuring alignment
with our long-term objectives.
Our tiered governance structure remains central to this
approach. The Sustainability Steering Committee (‘SSC’)
and five specialist working groups played a key role in
supporting stakeholders and providing expertise to
integrate sustainability considerations across all areas
of the business. The SSC convenes quarterly to maintain
a cohesive approach, oversee progress towards our net
zero objective, and monitor strategic developments.
The Committee provides recommendations on
sustainability initiatives identified by the working groups
and escalates material items for Board consideration
and approval. In 2025, this included approving our new
sustainability framework RISE, agreement to become a
PCAF signatory, 2025 DMA, and Sustainability Risk Policy.
The SSC is chaired by Admiral’s Group Chief Risk Officer
(‘CRO’), who also serves as Executive Sponsor for
sustainability and DEI. Membership includes the Group
CEO of Admiral Group – who holds ultimate accountability
for sustainability – CEO of Admiral Europe Compañía de
Seguros (‘AECS’), Admiral’s Group Chief Sustainability
Officer (‘CSO’), Group Chief Financial Officer, and Chairs
of the five sustainability working groups. The CSO reports
regularly to the Group and entity Boards and other
governance committees to ensure transparency
and accountability.
Sustainability governance is delivered in alignment with
other key committees, ensuring integration across risk,
reporting, and remuneration:
• Group Risk Committee (‘GRC’) – Oversees climate-related
and broader ESG risks within the Group’s risk
management framework. The GRC receives a
sustainability risk dashboard, and an update on
sustainability issues at most meetings
• Group Audit Committee (‘GAC’) – Received updates
on sustainability disclosures and approved the auditor’s
limited assurance over key sustainability metrics
• Remuneration Committee (‘RemCo’) – Incorporates
sustainability-linked performance measures into
executive remuneration, reinforcing accountability
for progress against our objectives.
Details of committee oversight of climate-related matters –
such as investment, reserving, and risk – are provided in our
TCFD section on page 76.
Our governance structure provides a robust framework
for embedding sustainability into long-term planning,
ensuring regulatory compliance and risk management,
and enabling transparent monitoring of sustainability
performance. In 2026, our priority will be building on this
foundation to accelerate delivery of our sustainability
framework RISE and embed sustainability even further
into core business decisions.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
66
Driving environmental change:
Reducing impact together
Supporting more customers to make
sustainable choices
Helping customers make sustainable choices – whether
on the road or at home – is central to Admiral’s approach
to sustainability. From electric vehicles to greener homes,
we’re enabling customers to take practical steps towards
a lower-carbon future.
Helping customers choose electric vehicles
Battery electric vehicles (‘EVs’) have a significantly lower
environmental impact over their lifetime compared to petrol
or diesel cars – even when accounting for battery
manufacturing. We know that this is important to customers:
in a 2025 Admiral EV customer survey, 59% of respondents
listed environmental concerns as a reason behind their
EV purchase. Supporting customers to make the switch is,
therefore, a key part of Admiral’s sustainability approach.
Admiral is one of the leading insurers of EVs in the UK.
In the UK and France, our EV-specific features include
out-of-charge recovery and cable theft cover, making
EV ownership easier and more secure. During 2025,
we grew our EV insurance books in the UK and France.
In 2025, Admiral was recognised by Defaqto, a UK market
intelligence firm, as a ‘Trailblazer’ for our innovation in EV
insurance such as including ‘out of charge’ cover within our
core comprehensive offering. We also partnered to open
Admiral-branded repair centres equipped with specialist
EV tools, charging bays, and expert-trained technicians –
helping customers access quick, competent EV repairs.
Read more about sustainable repair in our 2025
Sustainability Report.
Beyond our own insurance, we’re enabling EV adoption
through partnerships and research. We provide car finance
for used EVs via Admiral Money and began underwriting
EVs through new partner channels in 2025. Through 2025,
we have also been working with ZoomEV to roll out
additional free EV benefits to Admiral customers in the UK,
helping them save money on things like home and public
charging, and maintenance. This aligns with our approach
to provide customers with what they truly need and want
as an EV owner.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
67
Everything Electric 2025
By the end of 2025, more than 1.8 million fully electric
vehicles were on UK roads making up 5.3% of the
country's 34 million1 vehicles, up from just 2% in 20222.
EVs also accounted for 23.4% of all new UK vehicle
registrations in 20253. While this marks strong
progress, further expansion of the EV market
will be necessary to align with the UK’s Zero Emissions
Vehicle ambitions.
To continue to promote EV adoption, during 2025,
Admiral UK sponsored its second year of the Everything
Electric trade show series. Everything Electric is one of
the UK’s largest public events focused on electrified
transport and low‑carbon living. Across the shows, more
than 47,000 people attended, engaging with expert
talks, demonstrations, myth‑busting content and Q&A
sessions aimed at improving public understanding of
EVs and other electric technologies.
Consumer hesitation remains a barrier to EV adoption.
By providing clear, accessible information that cuts
through misinformation, the event helps consumers
navigate common EV concerns like charging, cost,
battery performance and insurance. Knowledge
can empower consumers to make confident,
sustainable choices.
This public shift is essential to Admiral’s own net zero
ambitions, as we cannot reach net zero across our
entire business without accounting for the emissions
produced by our customers.
Supporting lower-impact driving
Not every journey needs a car of your own. Our Veygo
pay-as-you-go insurance helps customers who choose
alternatives to private ownership – such as car sharing –
allowing them to drive only when they need to. In 2025,
more Veygo customers opted for electric vehicles,
reflecting a growing shift toward sustainable mobility.
We also make safer, lower-impact driving more accessible
through LittleBox telematics insurance, which rewards safer
habits with lower premiums and can help young drivers –
often priced out of EV ownership – get behind the wheel
of electric cars.
And when EV customers need a courtesy car during a claim,
we aim to provide electric vehicles wherever possible.
Expanding access to EV courtesy cars is a priority for the
future, helping customers experience cleaner transport
options firsthand.
Cleaner and greener homes
Homes account for a significant share of carbon emissions,
and household claims themselves can be carbon-intensive.
In 2025, we continued work with LeakBot, a smart device
that detects leaks early to prevent Escape of Water claims –
reducing water waste and avoiding carbon-heavy repairs.
After the success of our 2024 trial, in 2025 we completed
the foundational work needed to launch a significantly
expanded trial in 2026. We updated eligibility criteria,
refreshed terms and conditions, and developed new
customer communications. In 2026, we plan to distribute
another 10,000 LeakBot devices to customers.
Through Admiral Money, we continue to provide Home
Improvement loans, which can be used by customers for
a range of purposes, including retrofitting measures that
may help improve energy efficiency and lower bills. We also
explored new propositions that drive energy efficiency
and resilience to extreme weather through our Household
Innovation Project, using human-centred design to identify
barriers and develop concepts for testing in 2026.
Finally, we’re making claims more sustainable by
incentivising repairs over replacements and piloting
refurbishment for electronics. Admiral household insurance
continues to cover heat pumps, solar panels, and domestic
wind turbines.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
68
1 Society of Motor Manufacturers and Traders (SMMT), January 2026
2 Society of Motor Manufacturers and Traders (SMMT), January 2023
3 Department for Transport (DfT)/Driver and Vehicle Licensing Agency (DVLA), September 2025 plus forward estimations
Building resilience at home: Protecting what matters
Supporting customers in changing weather
Storms, floods, and freezing weather events aren’t just
statistics – they disrupt lives. 2025 saw extreme weather
events in all of Admiral’s operating countries, from storm-
related flooding in the UK to severe wildfire, heatwaves,
and hailstorms in continental Europe.
When the worst happens, Admiral is there to help
customers recover and rebuild. While extreme weather
affects all of our insurance businesses, it is most relevant
to our UK home insurance line. Our household insurance
and claims teams provide our customers with support
through every stage of recovery, and we’re evolving our
products to stay affordable and responsive, especially for
those in high-risk areas.
Flooding is one of the UK’s most serious climate risks,
with one in four properties projected to be at risk by 2050.
Winters are projected to become up to 30% wetter by
2070, increasing the risk of river and surface water flooding.
Persistently high water tables following wet seasons can
also lead to groundwater flooding, which is harder to model
and often affects basements and low-lying properties.
Urban areas with ageing drainage systems and
impermeable surfaces are particularly vulnerable.
Taking action on flood prevention
We’re tackling this challenge head-on. Admiral has
participated in Flood Re, the UK Government-backed
affordable cover scheme for properties at high flood risk,
since it started. During 2025, we supported flood claims
customers with Flood Re’s Build Back Better, through
which we funded up to £10,000 in property flood resilience
measures as part of eligible repairs. We also sponsored
the relaunch of Flood Re’s Floodmobile, a travelling
demonstration unit that brings practical flood resilience
advice and equipment to communities across the UK.
Floodmobile empowers homeowners to take proactive
steps before disaster strikes.
We also work at a system level. As a member of the cross-
industry FloodAction Coalition launched in 2025, Admiral
will support the development of the UK’s first investment
market for natural flood and drought resilience – unlocking
capital for large-scale, nature-based solutions that protect
homes, improve water quality, and restore biodiversity.
Supporting communities when disaster strikes
Our partnerships extend beyond insurance. In 2025,
Admiral provided targeted support for communities
impacted by the UK’s Storm Claudia, including up to
£25,000 through a colleague-led flood response fund in
Monmouth. We also donated £100,000 to the British Red
Cross following Hurricane Melissa in Jamaica and Cuba.
Our partnership with the National Trust funded three major
natural flood management sites in 2025 in addition to those
funded in 2024. We also launched a customer campaign –
Flood Force – to raise awareness and drive action.
©National Trust Images/Mike Selby
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
69
Partnering for nature-based flood resilience
Our partnership with the National Trust goes beyond
supporting natural flood management projects – we’re
working together to help look after what matters most
to our customers. With 80% of UK homeowners
unaware surface water flooding could hit their homes1
and three times as many properties at threat from
surface flooding than from flooding by rivers and sea2,
in November 2025, we launched the Flood Force.
Supported by the National Trust, the Flood Force aims
to raise awareness of surface water flooding and help
UK homeowners make their homes more flood resilient.
Led by TV presenter and National Trust ambassador
Sean Fletcher, our Flood Force initiative brings
together leading experts to educate customers on how
to make homes, gardens and the wider environment
more flood resilient.
Through practical guidance, expert tools and
accessible advice, the Flood Force helps our
customers to prepare their homes and feel confident
taking the right actions during a flood, supporting
greater resilience in the face of a changing climate.
The campaign spans a press launch, a dedicated
webpage, a hero film, a suite of expert videos,
infographic‑led tips and an emergency‑preparedness
checklist. Together, these resources have already
reached an estimated 4.8 million people – driving
awareness, inspiring preparedness and supporting our
commitment to building a more resilient, sustainable
future for everyone.
The Flood Force is our first partnership campaign with
the National Trust and combines Admiral’s expertise
in looking after what matters most with the National
Trust’s experience in protecting our planet.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
70
Our research makes clear how surface
flooding is no longer a rare event –
it’s an increasing reality. By partnering
with National Trust and bringing together
experts through the Flood Force,
we want to empower homeowners
with the knowledge and tools to better
protect what matters most.”
Noel Summerfield
Household Director
1 Data collected following a consumer survey of 2,002 Brits conducted by Admiral Home Insurance in September 2025.
2 Data from the government’s ‘National assessment of flood and coastal erosion risk in England 2024’ shows there are three
times as many properties at high risk of flooding from surface water than flooding from rivers and sea (England).
Our journey to net zero:
Turning ambition into action
Highlight of the steps we’re taking towards
net zero – and what’s still ahead
Progress matters – and so does measurement.
To effectively manage emissions, we must measure them,
and our commitment to transparency in measurement
is central to delivering on our climate goals.
Admiral published its first Net Zero Transition Plan in
December 2024. Our science-based targets, approved
in 2024, help guide our path to net zero by 2040
and align us with the latest climate science.
Below, we share how we’re tracking against these targets
and others – because reducing emissions isn’t just about
ambition, it’s about action and accountability.
From operational emissions to investing impacts, we’re
embedding measurement into every part of our business.
For a deeper look at the actions behind these numbers,
see the next page for narrative updates on our Transition
Plan, and explore our full Sustainability Report for progress
on all targets.
Admiral’s progress against our science-based targets
Scope 1 and 2: Admiral Group plc commits to reduce absolute Scope 1 and 2 GHG emissions by 70% by 2030 from a 2021
base year.
Scope 1 and 2 GHG emissions
Scope 1
Scope 2 (market-based)
Combined Scope 1 and 2
Corporate bonds: Admiral Group plc commits to 48.6% of its corporate bonds portfolio by invested value setting
SBTi-validated targets by 2028, from a 2021 base year.
Proportion of bond counterparties with science-based targets
Target
Actual
Admiral’s SBT 2028 target
Light blue line gives an indication of future expected progress. It does not constitute an annual formal target
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
71
929
560
1,482
538
593
431
388
344
300
256
1,189
1,100
605
532
584
499
456
413
370
327
2,118
1,660
2,087
1,071
1,178
930
844
757
670
583
CY 2021
(baseline)
CY 2022
CY 2023
CY 2024
CY 2025
CY 2026
CY 2027
CY 2028
CY 2029
CY 2030
0
500
1,000
1,500
2,000
2,500
3,000
22.0%
29.0%30.5%32.8%37.4%
48.6%
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
0%
25%
50%
75%
100%
A
B
A
A
A
A
A
A
A
A
A
B
B
B
B
B
B
B
B
B
Target
Actual
Admiral’s SBT 2028 target
Year 1 of Admiral’s Net Zero Transition Plan
In December 2024, we published our first Net Zero Transition Plan, outlining how we’ll work to achieve net zero by 2040 and
support our customers to do the same. During 2025, our people, operations, partners, and wider community worked towards
this net zero goal. Below is a summary of the progress we’ve made on our net zero ambition during 2025. More information
can be found in our 2025 Sustainability Report and in the Metrics and Targets section of our Task Force for Climate-related
Financial Disclosures (‘TCFD’) report, page 76.
Area
Targeted impact
In 2025, we have...
Underwriting To support customers
in adopting greener lifestyles
via sustainable insurance
and loans products.
• Supported over 750,000 customers to choose electric and hybrid vehicles
through loans or insurance
• Supported consumer understanding of EVs through informational
events and partnerships like Everything Electric and Electric Vehicles UK
• Supported customers on safety, resilience, and claims prevention through
programmes like LeakBot, partnerships like National Trust, and campaigns
like Your Ride, Your Rules and Words to Live By
• Developed better claims experience for EV drivers through our supply
chain partnerships
• UK business recognised as a ‘Defaqto Trailblazer’ for our EV insurance
• Launched a Sustainability Policy that helps better integrate sustainability
and net zero into Group-wide decision making. See our 2025 Sustainability
Report for further details on the Sustainability Policy.
Investments
To facilitate decarbonisation
of the real economy by
investing in green assets
and increasing exposure
to investee companies who
have pledged to set
decarbonisation targets.
• Reduced corporate bonds emissions and carbon intensity from the
previous year
• Increased investments in green bonds and percentage of assets invested
in companies with decarbonisation targets.
Supply chain To support net zero
in the wider economy
by encouraging suppliers
to decarbonise, selecting
suppliers who are
sustainability leaders, and
reducing the environmental
impact of claims.
• Achieved 30.6% of corporate supply chain emissions from companies that
have committed to science-based targets, ahead of 2025 target
• Began integrating ESG criteria in supplier tenders for UK home and motor
claims procurement as well as Group corporate (non-claims) procurement
• With repair partners, launched programmes to reduce waste and emissions
in motor repair via co-branded repair garages
• Joined the Partnership for Carbon Accounting Financial’s exploratory
working group on claims carbon accounting
• Launched detailed monthly monitoring of our emissions from tech,
cloud, and AI. For details, see our 2025 Sustainability Report.
Own
operations
To set an example by
reducing GHG emissions
of our direct operations.
• Surpassed our 50% renewable energy procurement target over the first nine
months and maintained a positive trajectory over the remaining quarter
• Kicked off a multi-year project to better understand and reduce our
emissions from business travel and employee commuting
• Planned offsetting of 3,525 tonnes of operational emissions with Gold
Standard carbon credits
• For details, see our Streamlined Energy and Carbon Reporting disclosure.
Engagement To engage with
government, public sector,
communities, and civil
society on climate change,
with the aim to help build
a world in which net
zero is possible.
• Contributed £1.2 million to environmental projects through our Green Fund
Initiative, with recipients including EarthWatch, WWT, and National Trust
• Became a signatory to the Partnership for Carbon Accounting Financials
and a member of FloodAction Coalition
• Contributed to the FCA’s Climate Financial Risk Forum paper on the
intersection of climate and nature risk, as well as net zero-related working
groups for the Association of British Insurers and CBI Wales
• Spoke about net zero at events like EarthFest, Insurance Innovators’ Summit,
Social Value Conference, the Conduit, and Welsh Sports Association events.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
72
Green Week 2025:
Engaging 8,500 colleagues in climate action
Every year, we host an internal Green Week to inspire
and empower colleagues to take positive actions that
support the environment and the climate. In 2025,
we shifted the focus of Green Week to our net zero
transition and in particular, how it could affect our
customers. Over 8,500 colleagues engaged with
workshops, webinars, and content on how to make
more sustainable choices, and support customers
to do the same.
The campaign sparked unprecedented engagement,
with 80,000+ views of internal content across our
intranet and social platforms. Daily ‘Net Zero Heroes’
videos and articles highlighted practical actions
and personal stories on reducing carbon footprints.
Colleagues pledged environmental commitments
on how to bring net zero into their work and lives.
Green Week also featured events that combined
education with hands-on impact. Leadership-led
webinars featured our Group Chief Sustainability
Officer and partners like the National Trust.
Colleagues ventured out of the office for tree planting
and seed sowing with Earthwatch. Other content
included strategy-focused round tables on sustainable
claims processes and the worldwide electric vehicle
transition, as well as lifestyle sessions on EV salary
sacrifice and cycle-to-work promotions.
Teams across the Group also joined in with nature
walks, quizzes, webinars, and a Sustainability Forum
co-hosted with accounting firm PwC, where participants
shared ideas on decarbonisation and innovation.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Sustainability overview continued
Admiral Group Plc Annual Report and Accounts 2025
73
This statement has been prepared
in accordance with our greenhouse
gas (‘GHG’) emissions pursuant
to the Companies (Directors’ Report)
and Limited Liability Partnerships
(Energy and Carbon Report)
Regulations 2018, which implement
the government’s policy on Streamlined
Energy and Carbon Reporting.
Energy and carbon reporting
Due to the timeliness of actual consumption data, Admiral has deemed it best practice to report emissions each year based
on nine-months of data (January to September) and three-months of modelled data (October to December), including
a restatement of prior-period emissions data obtained after the reporting period. In 2026, Admiral will issue a restatement
of its 2025 emissions to reflect actual data for October to December 2026.
During the reporting period January 2025 to December 2025, our measured Scope 1 and 2 emissions (market-based) for
Admiral Group totalled 1,178 tCO2e. Reported figures for 2025 include an additional column that excludes f-gas emissions
from the emission totals.
FY 20241
FY 2025
UK
Rest of
world
Total
UK
Rest of
world
Total
FY 2025
(tCO2e)
Total
adjusted2
Scope 1
448
90
538
572
21
593
84
Scope 2 Location-based
1,253
660
1,913
956
629
1,585
1,585
Scope 2 Market-based
–
532
532
–
584
584
584
Total Scope 1 & 2 Location-based
1,702
750
2,452
1,528
650
2,178
1,668
Total Scope 1 & 2 Market-based
449
622
1,071
572
605
1,178
668
Scope 1 & 2 intensity per employee market-
based
0.05
0.11
0.07
0.07
0.09
0.08
0.04
Scope 1 & 2 intensity per employee location-
based
0.18
0.14
0.17
0.18
0.1
0.14
0.11
Scope 3
1,245
1,210
2,455
1,141
1,211
2,352
2,352
Biogenic emissions (outside of scopes)
313
313
313
Total Scope 1 & 2 (MB), excluding Elephant
Insurance3
449
467
916
572
475
1,047
537
Scope 3 excluding Elephant Insurance4
1,245
1,122
2,367
1,141
1,174
2,315
2,315
1 Restated 2024 SECR using 12 months data.
2 Adjusted figure excluding refrigerant gas.
3 Total Scope 1 & 2 emissions for Admiral Group excluding Elephant Insurance for the full 12-month reporting period
(2024 included for comparison to 2025).
4 Total Scope 3 emissions for Admiral Group excluding Elephant Insurance for the full 12-month reporting period
(2024 included for comparison to 2025).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Streamlined Energy and Carbon Reporting (‘SECR’)
Admiral Group Plc Annual Report and Accounts 2025
74
Narrative of movements
During the reporting period, Admiral Group undertook a
series of energy efficiency actions. This was the first full
year of using the new Building Management System (‘BMS’)
at Tŷ Admiral and Admiral Group House, which improved
visibility of heating and cooling demand, enabling more
precise control of natural gas and electricity consumption.
Further savings were delivered through lighting upgrades
as LED lighting was installed at Tŷ Admiral and Admiral
Group House, with measurable reductions of 642,658 kWh
in electricity demand for the two sites combined.
The introduction of biogas in October 2024 for UK
buildings supported further reductions.
To more accurately track electricity consumption in our
Spain, Italy, and France offices, a project is underway
to install meters.
Admiral Group reports both Scope 2 market-based
and location-based emissions in accordance with the
Greenhouse Gas (‘GHG’) Protocol. Reporting both
methodologies provides transparency of performance
across different reporting frameworks and allows for
comparison against Admiral’s science-based target,
set based on Scope 1 and 2 market-based emissions.
Overall, Scope 1 and 2 (market-based) emissions increased
by 10% in 2025, mainly due to increased electricity usage
in sites without renewable electricity, with the Delhi sites
being the biggest contributors. Scope 1 and 2 (location-
based) emissions decreased by 11% driven by improved
building energy management systems, upgrades to more
efficient lighting, and a decrease in natural gas use across
UK operations.
Scope 1 emissions increased from 538 tCO2e in 2024
(restated) to 593 tCO2e in 2025, an increase of 10%. This
was primarily driven by an increase in F-Gas leaks across key
sites. A 78kg system top-up to the building cooling system
and 289kg due to a faulty part at Tŷ Admiral and 25kg leak
at Admiral House Newport resulted in emissions of 510 tCO2e
in 2025, whereas 120 tCO2e was reported in 2024.
Decreases in natural gas consumption are attributed to
mild weather conditions in the first quarter of 2025 and
the introduction of efficiency measures through the new
Building Management Systems (‘BMS’) at Tŷ Admiral and
Admiral Group House.
While Scope 2 market-based emissions increased by 10%,
scope 2 location-based emissions decreased by 17% in
2025, largely due to LED lighting installations and enhanced
control of HVAC systems through upgraded Building
Management Systems (‘BMS’), which together reduced
electricity consumption at UK sites. The introduction of
landlord-supplied electrical invoices for the L’Olivier Paris
office provided more accurate consumption data, leading
to an 84% reduction in reported electricity use compared
to the previous estimation method.
Scope 3 emissions decreased by 4%. Admiral Group is
continuing its efforts to improve business travel data and
management controls to enhance reporting accuracy.
During the reporting year, total energy consumption
from fuel and electricity accounted for 9,490,794 kWh,
representing an overall reduction of 12% in 2025. Of this,
79% was consumed in the UK. The combined efficiency
measures have contributed to a measurable reduction
in total energy demand across the Group, demonstrating
Admiral’s continued progress in managing operational
energy consumption in line with its environmental
commitments.
Methodology
The methodology used to calculate the GHG emissions is in
accordance with the requirements of the following standards:
• World Resources Institute (‘WR’I) Greenhouse Gas (‘GHG’)
Protocol (revised edition)
• Defra’s environmental Reporting Guidelines: Including
Streamlined Energy and Carbon Reporting requirements
(March 2019)
• UK office emissions have been calculated using DEFRA
2024 issue of the conversion factor repository.
The organisational boundary has been consolidated
according to the operational control approach, which
includes all our operations and sites.
• Scope 1
– Natural gas consumption
– Biogas consumption
– Refrigerant gas leakage
– Vehicle combustion
• Scope 2
– Purchased electricity: market-based
– Purchased electricity: location-based
• Scope 3
– Fuel and energy-related activities
– Waste
– Water
– Business travel.
FY 2024 (kWh)
FY 2025 (kWh)
Energy consumption (kWh)
UK
Rest of
world
Total
UK
Rest of
world
Total
Electricity
6,054,089
2,230,073
8,284,162
5,399,628
1,969,110
7,368,738
Fuels1
2,364,549
185,265
2,549,814
2,055,669
66,387
2,122,056
1 Natural gas and transportation fuels (petrol and diesel).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Streamlined Energy and Carbon Reporting (‘SECR’) continued
Admiral Group Plc Annual Report and Accounts 2025
75
This section of our report follows the recommendations of the Task Force
on Climate-related Financial Disclosures (‘TCFD’), meets the requirements
of the FCA’s UK Listing Rule 6.6.6 (8), and aligns with the climate-related
reporting obligations under the Company Act.
Governance
Clear ownership and accountability help us
stay on track with our strategy and manage
risk effectively.
Board oversight
The Group Board leads on climate strategy and risk
oversight. In 2025, climate was discussed at two Board
meetings, including one focused on an environmental
deep-dive.
The Group Risk Committee holds primary responsibility
for oversight of climate risk. As of 2025, a sustainability
risk dashboard is submitted to the Group Risk Committee
showing key climate risk indicators at every meeting.
The Group Audit Committee oversees the publication of
climate-related reports, alongside overseeing the assurance
of our sustainability-linked revolving credit facility.
More on these Committees is available on page 66.
Embedding sustainability into governance
The Sustainability Steering Committee reviews climate-
related risk alongside other sustainability priorities. This
Management Committee is supported by five working
groups, which form the backbone of Admiral’s sustainability
governance. These groups provide a way of updating
management across the business of climate-related issues.
These groups support senior leaders including the Group
Chief Risk Officer, Group Chief Sustainability Officer, Group
Chief Executive Officer, and Group Chief Financial Officer.
The Group Chief Risk Officer holds the SMF accountability
for climate-related risk.
Other Committees involved:
Several other Committees also contribute to climate-related
decision making:
• Group Investment Committee: Oversees the integration
of climate factors into strategic asset allocation and
portfolio construction and monitoring, approves
investments in green finance, and contributes to the
development of Admiral’s Investment Policy
• Group Asset and Liability Committee (‘GALCO’):
Manages reinsurance agreements to reduce exposure
to acute physical risks, particularly within the household
insurance portfolio. GALCO also reviews climate
(and other) scenarios used in the Own Risk and Solvency
Assessment (‘ORSA’), prior to approval by the Group Risk
Committee
• Product and Pricing Committee: Oversees pricing
assumptions for UK insurance products, incorporating
the latest data on climate trends, weather patterns,
and emerging technologies
• Reserving Committee: Oversees the process of setting
the claims reserves in line with the Group’s reserving
policies and IFRS 17 requirements. This includes ensuring
that the impact of any serious weather events and the
uncertainties associated with new technologies are
considered. This helps to ensure that our financial
statements capture any significant weather-related
impact in the short term, while the Group Risk team
run scenarios to consider if we are adequately covered
in the medium to long term.
An organisational chart has been included on page 66
showing the relationships between the key Committees
and working groups discussed above.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Task Force on Climate-related Financial Disclosures
(‘TCFD’)
Admiral Group Plc Annual Report and Accounts 2025
76
Risk management
Integrating climate-related risks into the
Group Enterprise Risk Management Framework
The Group Risk Management function took meaningful
steps this year to further embed climate-related risks into
Admiral’s enterprise-wide risk management framework.
This work ensures stronger alignment with evolving
regulatory expectations, recognised industry standards,
and Admiral’s own sustainability goals. It reflects the
increasing significance of climate risk to the Group’s long-
term resilience and strategic sustainability ambitions.
By enhancing the way climate risks are identified, assessed,
managed, and reported, Admiral is building a more
systematic and forward-looking approach across the
organisation. These development and integration efforts
were coordinated and overseen by the Risk, Compliance
and Reporting Sustainability Working Group, which plays
a central role in embedding climate considerations into
our governance and operational practices.
Key integration developments in 2025
In 2025, we incorporated the following measures to integrate
climate risk into our existing risk management structures:
Improved regular risk monitoring
The Group Risk Committee now monitors a set of climate-
related Key Risk Indicators (‘KRIs’) as part of its routine
oversight. These indicators offer early warnings of
emerging risks and help track exposure across the
business. By embedding KRIs into its agenda, Admiral has
improved its ability to spot trends, flag vulnerabilities,
and escalate material issues. This supports more informed
decisions and reinforces our commitment to proactive
climate risk management and regulatory alignment.
Sustainability risk policy creation
Admiral has developed a Sustainability risk policy in 2025
to strengthen how environmental, social, and climate risks
are managed across the organisation. This policy has been
approved by the Group Risk Committee and is expected
to go live in 2026. As part of the policy, we have included
our Climate Risk Management Framework, which sets
clear principles for integrating these risks into strategy,
operations, and governance. The policy applies across
the Group, ensuring consistent treatment of issues like
climate change, biodiversity loss, and social inequality.
It defines roles for senior leaders and working groups,
and outlines expectations for scenario analysis, reporting,
and escalation. By embedding sustainability into our risk
framework, Admiral aims to build resilience and deliver
long-term value for customers, communities,
and the environment.
Simplifying our climate risk registers
In 2024, we introduced new climate risk registers to make
risk management more effective across the business.
In 2025, we expanded this approach to other areas of
sustainability risk, while simplifying the approach based
on user feedback. This both improves consistency across
the Group and increases usability.
Weather analysis
In 2025, Admiral strengthened its weather review process
to improve how weather-related risks are assessed
and managed across the Home Insurance portfolio.
The updated approach simplifies the analysis by focusing
on key weather trends – such as flood, storm, and
subsidence – and links them more directly to claims
experience and exposure data.
Embedding climate risks into other risk
management processes
We have continued to integrate climate-related risks into
our wider risk management framework. Key developments
include:
• Scenario analysis: We have created internal narrative
scenarios, which will be quantified as part of the FY 2025
ORSA. These help us assess how well the Group’s
financial and operational performance can withstand
different climate outcomes
• Proactive customer messaging: To help our customers
prepare for storms we email our customers with ideas
for actions they can take to reduce potential damage
to their homes
• Household claim response rate: We have continued to
work on our response to large weather events. During
Storm Eowyn, these improved processes maintained
a call rate of 99.8%.
Looking ahead
This work provides a strong foundation for managing
climate risks across the Group. But our risk culture is built
on continuous improvement. In the year ahead, we plan to:
• Expand scenario analysis to deepen our understanding of
long-term climate impacts. This includes using short-term
narrative scenarios to explore emerging risks
• Refine key risk indicators to strengthen monitoring and
improve early warning against our risk appetite
• Deep dive into the impact of climate change on specific
business lines and activities.
Through these steps, Admiral remains committed to staying
resilient in the face of climate change and supporting the
transition to a sustainable future.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
Admiral Group Plc Annual Report and Accounts 2025
77
Risk appetite
The Board has set its approach to sustainability risk.
This focuses on identifying risks that could affect Admiral’s
ability to balance strong long-term financial performance
with its ESG commitments.
Our sustainability risk appetite is defined across sub-risk
areas: climate change, social, governance, and other
environmental risks. This structure allows us to manage
these risks more precisely and align them with our strategic
goals. The Board takes a cautious stance on climate
change, embedding climate risks into investment,
underwriting, and strategy decisions. This supports our net
zero ambition and the transition to a low-carbon economy.
Responding to extreme weather
Storm Eowyn brought severe weather and disruption
across parts of the UK in January, reminding us
once again of the growing impact of climate-related
events. For Admiral, protecting our customers and
supporting our communities during these moments
is a core responsibility.
We activated escalation procedures to assess the scale
of the event, prioritise customer needs, and deploy
resources where they were most needed.
A key measure of this response was our ability to stay
connected with customers. Despite the surge in calls,
our teams achieved a 99.8% call answer rate, ensuring
customers received timely support when it mattered
most. This performance reflects our investment in
resilience and preparedness, as well as the dedication
of our people.
By continually refining our risk management and
response processes, Admiral remains ready to act
decisively – whether addressing immediate safety
concerns or supporting long-term recovery. These
efforts underscore our commitment to protecting lives,
livelihoods, and the environment, and to standing by our
customers and communities when they need us most.
Managing climate risk
Climate risk follows the same risk management cycle as
our principal risks: identify, assess, manage, monitor, and
report. Climate risk is embedded across our principal risks
rather than treated as a separate principal risk. See page 97
for details on which principal risks are affected.
Risk identification
Each year, Admiral identifies and assesses climate risks
centrally and with subsidiaries. In 2025, the Group risk team
enhanced our environment-specific risk identification
through additional identification workshops. The outcome
was a tailored list of climate risks, categorised by our
internal taxonomy and assessed for materiality, time
horizon, and business impact.
We also draw on industry insights through the Association
of British Insurers climate change working group. These
help shape our risk identification, scenarios, and financial
impact analysis.
Risk assessment
We assess climate risks by looking at both impact and
likelihood across short, medium, and long-term horizons.
This allows us to determine how we prioritise risks.
Impact considers financial, operational, and reputational
consequences, such as damage from extreme weather
or regulatory changes. We use four levels of severity:
• Minor: manageable adjustments to operations
• Moderate: recalibration of underwriting and processes
• Significant: strategic changes to risk models
and operations
• Major: potential solvency challenges without
management action.
Likelihood is rated across four levels using scenario
analysis, historical data, and forward-looking assumptions.
Combining impact and likelihood gives a risk rating from low
to very high. This is done via a risk matrix approach with
scores assigned to each impact and likelihood, which are
multiplied together to give a rating score.
High or very high risks are those that could affect our ability
to meet strategic objectives, regulatory obligations,
or commitments to customers and stakeholders.
In 2025, this risk assessment included a blend of qualitative
and quantitative analysis. This has resulted in the
downgrading of a number of short-term risks in the table
included on page 80. It was further complemented by
a quantitative stress and scenario analysis, the details
of which are included on page 82.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
Admiral Group Plc Annual Report and Accounts 2025
78
Time horizons
Short term (0–3 years)
This corresponds to Admiral’s typical business planning
and operational cycle, capturing immediate risks
and impacts that align with near-term strategic
objectives and budgeting cycles.
Medium term (4–10 years)
This is more closely related with strategic planning,
capital allocation and risk modelling timeframes,
encompassing transition risks such as regulatory
changes and shifts in market dynamics.
Long term (10+ years)
This is critical for assessing risks from a future view
point such as the climate impacts under difference
climate pathways, assessing the financial impact of
physical and transition risks under different
temperatures.
In addition to the qualitative assessments, we have
established internal quantitative guidelines tailored for
different business areas. These guidelines cover financial,
claims, operational, customer, and investment impacts.
Reporting on climate-related risks
Admiral is required to report publicly on material climate
risks through several standards including TCFD and CFD.
In addition to our regulatory requirements, we voluntarily
publish data on climate risk related to the carbon disclosure
project (‘CDP’).
We consider external and emerging regulatory
requirements through our discussions with industry experts,
the regulators, and our own horizon scanning activities.
Where relevant, these are reported to the Sustainability
Steering Group or Group Risk Committee.
Changes in the climate risk profile of the Group, and any
progress on actions, is reported to the Group Risk
Committee. Climate-related disclosures are reviewed
by the Group Audit Committee. Other information on
sustainability activities is reported to the Sustainability
Steering Group, Group Asset and Liability Committee,
Investment Committee, and Product Pricing Committees
on a periodic basis as appropriate.
Climate risk impact assessment
on Admiral Group’s Statement
of Financial Position
Group Finance, in collaboration with Group Risk, perform
an annual assessment of potential impact and likelihoods
of significant and major climate-related risks against the
Statement of Financial Position as reported (short term),
and in the longer term, as follows:
1. The climate-related risks identified by Group Risk are
used to analyse whether, and how, those risks could
impact the Statement of Financial Position
2.The potential impact of climate-related risks is assessed
for those balances that constitute more than 1% of the
total assets, equity or liabilities. This threshold ensures
that all material line items are captured.
In addition, the completeness of the assessment is
considered by considering all climate risks identified and
whether they could have a material impact on any line
of the balance sheet.
Following this assessment, no such additional areas were
identified as a result of this review and we continue with
our methodology development so we can assess more fully
the impact on our projected business plan in future periods
and provide further disclosures.
Risk mitigation and monitoring
Our main approach to managing climate risk is to deliver
the Group strategy of diversifying revenue and profit
streams. This reduces reliance on UK Motor and helps
limit transition risks from changes in mobility. We invest
in new and existing businesses that design products for
evolving customer needs and prepare for the shift to
electric vehicles.
We manage climate risks in our insurance portfolio using
the same methods as other insurance risks. This includes
disciplined pricing, assessing peril impacts, setting clear
underwriting criteria, reviewing reserving, and transferring
risk through reinsurance. We use advanced flood,
windstorm, and catastrophe models to understand physical
risk, decide how much risk to accept, and set reinsurance
protection. Pricing remains our main tool for managing
climate risk, but due to commercial sensitivity, we do not
disclose details.
The following table1 shows examples of risks from our
climate risk register and key mitigation actions. For more
on how we manage transition risk across our value chain,
see our Transition Plan.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
Admiral Group Plc Annual Report and Accounts 2025
79
Acute physical risks
Primary business impacted:
UK Home
Short-term impact: Moderate
Medium-term impact:
Significant
Long-term impact: Significant
PR&U affected: Reserving,
insurance, catastrophe
• Acute physical risks refer to severe
weather events that can cause
significant damage and higher-than-
expected insurance claims. These
include wildfires, freezes, hail,
windstorms, and supply chain
disruptions.
• Our primary mitigants for managing
exposure is via pricing and reinsurance.
Both mechanisms mitigate large losses
from natural catastrophes
• Our pricing and reserving is continually
adjusted as we learn more about changes
to our climate, in particular the volatility
and increasing frequency of large storms,
heatwaves and freeze events
• We monitor our claims experience, and this
is used to provide a check and additional data
for tailoring our pricing
• We utilise Stress and Scenario Testing (‘SST’)
to assess the impact of natural catastrophe
events on our balance sheet. A specific
physical climate risk scenario has been
modelled, focusing on the UK Motor and
Household Insurance lines, which are
significant aspects of our portfolio
• We have developed specific processes to
deal with high storm claims. These ‘surge’
processes allow us to respond quickly in large
claim volume situations.
Chronic physical risks
Primary business impacted:
UK Home
Short-term impact: Moderate
Medium-term impact:
Significant
Long-term impact: Significant
PR&U affected: Reserving,
insurance, strategic,
reinsurance
• Chronic physical risks involve long-
term changes such as coastal erosion,
persistent flooding, and subsidence
that exceed expected and reserved
levels, potentially leading to large
financial losses or making certain
risks uninsurable.
Policy and legal
transition risks
Primary business
impacted: All
Short-term impact: Moderate
Medium-term impact:
Moderate
Long-term impact: Moderate
PR&U affected: Legal and
regulatory, reputation
• Policy and legal transition risks stem
from regulatory changes, such as
mandatory internal carbon pricing
or taxation, increased regulatory
burden, and the consequent rise in
compliance costs. These changes
can impact our strategic decisions
and increase non-compliance risks
• Legal transition risk arises from legal
challenges, such as attempts to sue
internal combustion engine vehicle
manufacturers for a pollution-related
reason, or for misleading
communication (greenwashing).
• In 2025, Group risk ran a litigation stress test
to assess the impact of legal risks on our
business (see scenario 2 on page 83).
We expanded our sustainability team to
manage resource pressures from increased
regulation and also engaged external experts
to support compliance through industry-
aligned expertise.
Technology transition
risks
Primary business
impacted: All
Short-term impact: Moderate
Medium-term impact:
Moderate
Long-term impact: Moderate
PR&U affected: Strategic,
insurance
• Technology transition risks involve
the adoption of new technologies,
such as electric vehicles (‘EVs’) and
eco-friendly building practices, which
can cause unexpected changes in
customer behaviour, revenue, and
claims if they evolve differently from
our business plans
• They also include climate-related risk
arising from AI use.
• Electric Vehicle underwriting is an essential
component of our strategy, following a
rigorous pricing approach similar to that
applied to combustion engine vehicles
• Modifications to home insurance policy
underwriting conditions are evidence-based
and follow tried and tested evidence-based
change procedures
• Claims experience from all business is closely
monitored and feeds back into pricing
assumptions. This is given particular focus
for policies that include new technologies
• We are continuing to build AI-related and
cloud-related emissions monitoring.
Climate change sub-risk types
Climate-related risks
Steps to manage – metrics and targets
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
Admiral Group Plc Annual Report and Accounts 2025
80
Market transition risks –
Changing customer
demand
Primary business
impacted: All
Short-term impact: Moderate
Medium-term impact:
Moderate
Long-term impact: Moderate
PR&U affected: Strategic,
insurance
• If customer climate expectations
evolve at a different pace than
Admiral's actions, it may result
in a loss of business if Admiral isn’t able
to provide products that customers
need and competitors can
• Customer behaviour may change
due to climate-related factors,
such as increased adoption of electric
vehicles or the introduction of lower
speed limits, which could affect
pricing models
• Economic volatility resulting from
climate change (e.g., loss of jobs
in high-emission sectors or climate-
driven inflation) could reduce
individuals' ability to pay for insurance.
• Admiral actively assesses evolving market
trends and customer preferences to
understand potential impacts on our business.
Through market research, we aim to identify
shifts in demand and integrate these insights
into our products and service development.
This supports our response to changing
expectations and emerging opportunities in
the transition to a more sustainable economy
• Admiral created Admiral Pioneer, a venture
business to support diversification into non-
traditional mobility insurance.
Market transition risks –
Supply chain
Primary business
impacted: All
Short-term impact: Moderate
Medium-term impact:
Moderate
Long-term impact: Moderate
PR&U affected: Strategic,
insurance, reputation
• There are increasing costs associated
with the supply chain due to climate-
related risks
• If the cost of reinsurance rises quickly
and cannot be priced into product
rates, this creates a profitability risk
• There is a risk that the supply chain
may not transition in line with Admiral's
future targets, potentially causing the
Company to miss its publicly stated
emissions goals
• High-emission activities within
the supply chain, such as mineral
mining for batteries, could lead
to reputational harm.
• Admiral is continuously refining its
procurement and ongoing third-party
management process to better incorporate
sustainability performance criteria for all
partners and suppliers – in order to promote
sustainability and responsible business
practices across the full third-party life cycles.
Market transition risks –
Investments
Primary business
impacted: All
Short-term impact: Minor
Medium-term impact: Minor
Long-term impact: Minor
PR&U affected: Market,
reputation
• Investment returns could be
adversely affected by transition risks,
such as the downgrading of high-
emission sectors, impacting overall
investment performance.
• Admiral has integrated climate-related
considerations into its investment decisions.
The decision making process is designed to
support investments in renewable energy
infrastructure, green bonds, and other issuers
with their own transition plans. Admiral has
established specific climate-related metrics
for its investments, with detailed targets that
are regularly monitored
• Investments are subject to strict concentration
limits to effectively manage exposure.
At a counterparty level, limits are set to
minimise exposure to specific high-emitting
entities. At a sector level, limits are imposed
to reduce exposure to high-risk sectors.
Market transition risks
and opportunities
• This comprehensive assessment highlights key areas where market transition risks due
to climate change could affect Admiral's operations, customer base, and investment
strategies. Proactive measures and adaptive strategies are essential to mitigate these
risks and support long-term sustainability. The transition also gives rise to climate
opportunities such as insurance of new technologies.
Climate change sub-risk types
Climate-related risks
Steps to manage – metrics and targets
1 These risks cover actions, which may be taken by the first and second lines of defence. For more information on our three lines of
defence model please see page 158. The four levels of impact are minor, moderate, significant, and major as described on page 78.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
Admiral Group Plc Annual Report and Accounts 2025
81
Scenario analysis and stress testing
Admiral uses climate scenario analysis and
stress testing to understand how different
climate pathways could affect our business.
These tools help us assess both financial and
operational impacts from physical, transition,
and liability risks over short, medium, and
long-term horizons. By modelling scenarios
such as rapid decarbonisation or delayed
policy action, we can identify potential
vulnerabilities in our business model,
investment strategy, and customer products.
From a customer perspective, this work supports continuity
of service, effective claims handling, and product design
that meets changing needs. It also reflects our commitment
to protecting policyholders by anticipating risks that could
affect coverage, affordability, and access. Overall, scenario
analysis and stress testing strengthen decision making,
improve resilience, support regulatory compliance, and
safeguard solvency for the benefit of all stakeholders.
Scenario design and calibration
To ensure relevance, our Group Risk team adapted
industry-standard scenarios for Admiral’s operations.
We used the Network for Greening the Financial System
(‘NGFS’) pathways, including ‘Hot House’ and ‘Delayed
Transition,’ to create three scenarios covering physical,
transition, and litigation risks.
We then calibrated these scenarios to reflect Admiral’s
business profile. Key adjustments included:
• Shorter timeframes to match our policy durations and
investment portfolio
• Motor-specific assumptions, such as impacts on vehicle
damage claims and bodily injury reserves
• Transition risk adjustments for sectors sensitive
to climate change
• Litigation risk tailored to Admiral’s size and regulatory
environment
• Pricing risks for electric vehicles, given their growing
share and early-stage insurance dynamics.
Link to risk appetite and capital management
Climate risk is integrated into our capital adequacy
framework and reviewed annually to align with evolving
regulations and insights. We include climate risks in our
Own Risk and Solvency Assessment (‘ORSA’) and run
stress climate risks threaten our Solvency Capital Ratio,
we would act – such as adjusting reinsurance or
reallocating capital.
Scenario analysis informs:
• The ORSA, which includes at least three climate scenarios
for transition, physical, and litigation risks
• Capital adequacy, ensuring short-term physical risks are
reflected in provisions
• Regulatory disclosures, including those based on TCFD
reporting and compliance with PRA guidance (previously
SS3/19 moving to SS5/25 in 2026).
Clear communication of assumptions and limitations remains
essential due to the complexity of scenario development.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
Admiral Group Plc Annual Report and Accounts 2025
82
Scenario 1:
Hot House World
(2.9°C by 2100)
The Network for Greening the
Financial System (‘NGFS’) ‘hot
house world – current policies’
scenario predicts no climate
action, leading to a 2.9°C
temperature rise by 2100.
This will likely increase extreme
weather in the UK, impacting
households and causing inflation
in car, van, and household
insurance.
This scenario has been
interpreted as resulting in
increased incidents of extreme
weather events, impacting the
UK Household book, coupled
with an inflationary environment
impacting UK Car, Van and
Household. The impact of
inflationary pressures on loan
defaults was also considered.
In line with the PRA General
Insurance Stress Test 2022,
this scenario includes historical
storms (Daria (1990), Capella
(1976), the 1987 Great Storm
(1987), and Vivian (1990)) causing
windstorm, storm surge, and
flood losses for UK households.
Scenario 2:
Disorderly Delayed
Transition leading
to Climate Litigation
(1.7°C by 2100)
In the NGFS ‘disorderly – delayed
transition’ the scenario assumes
policies for net zero are delayed
until 2030, causing economic
disruption but limiting global
warming to 1.7°C by 2100.
This scenario assesses Admiral's
litigation and legal risks under
the FCAs new greenwashing laws
that came into force this year,
highlighting regulatory scrutiny
like the Competitions and
Markets Authority's review
of online green claims.
This scenario parallels a recent
greenwashing ruling by the UK
Advertising Standards Authority
against a UK financial services
firm for misleading ads and
environmental claims. It assumes
Admiral's ‘green’ car insurance
policy faces fines and legal action
from NGOs due to misleading
advertisements, omitting lifecycle
impact details and lacking
transparency in benefit
calculations. These are assumed
to result in further costs through
reputational damage.
Scenario 3:
Disorderly Fast
Transition
(1.7°C by 2100)
This scenario also draws on
the NGFS ‘disorderly – delayed
transition’ but has been tailored
to examine a faster-than-
anticipated shift to net zero.
It explores the transition risks
related to the switch from petrol
and diesel vehicles to electric
vehicles within Admiral’s
UK motor book, which could
impact profitability, including
a mispricing of 15% for electric
vehicles each year and two large
losses per year through ordinary
driving totalling £35 million.
The scenario also includes an
asset stress component. Since
the EU is the most proactive
regulator regarding climate
policies, this component of the
scenario models the sector-wide
downgrades for the two highest-
emitting sectors in Europe:
energy and transport.
Scenario results
Under the Climate Litigation scenario, Admiral’s Group
Solvency Ratio stays comfortably above the 150% lower
trigger throughout the three‑year period. By contrast, in
the Disorderly Delayed Transition and Hot House World
scenarios, when no management actions are applied,
the ratio falls below this threshold, with Hot House World
declining to under 100%. These reductions are primarily
driven by higher claims costs and lower profit commissions.
By the end of 2026, the Disorderly Delayed Transition
scenario results in a 43% reduction, while Hot House World
delivers a 62% reduction relative to the base case.
To respond to these pressures, Admiral would consider
measures such as revising the dividend policy, annual
repricing of insurance products, changes to the structure or
scale of reinsurance, and adjustments to investment asset
allocation. Even applying only a dividend adjustment keeps
the solvency ratio above 150% in both Disorderly Delayed
Transition and Hot House World. Further information on
these mitigations is set out in the Risk Management section,
and our broader climate risk strategy is detailed in the
Transition Plan.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
Admiral Group Plc Annual Report and Accounts 2025
83
Strategy
Integration of climate risk into Admiral’s
business strategy
Admiral’s strategy is built to ensure long-term resilience and
profitability with a changing climate. This means managing
risks, while also capturing opportunities to deliver innovative
products and invest in sustainable growth.
Our commitment to reach net zero by 2040 across
investments, operations, underwriting, and supply chain
activities is central to our strategy. Climate risk
assessments inform this goal and shape key initiatives,
such as becoming a leading insurer of electric vehicles.
Incorporating climate risk assessments
Climate risk assessments are embedded in our Group
strategy. Transition and reputational risks drive our net zero
ambition. We also address supply chain risks by increasing
alignment with science-based targets (‘SBTs’) and reducing
emissions. To manage global supply chain disruptions,
we promote repairs over replacements and partner with
UK specialists for recycled parts.
Our Transition Plan sets out further opportunities to reduce
transition risks and emissions.
Embedding physical and transition
risk management
We recognise the growing impact of climate-related
events on our Household and Motor portfolios. Regulatory
changes, such as carbon pricing and EV mandates,
also present transition risks. To address these:
• Underwriting: Climate data informs risk selection and
pricing. Motor products are adapted for EV growth
• Investment: Our Investment Policy aligns the portfolio
with a low-carbon economy and supports our net
zero target
• Financial Planning: In our home insurance book we assess
weather trends as part of our claims projections and
reinsurance assumptions. Physical climate risk, and how
it may change the claims experience is a key part of this
planning process. We assess transition risk through our
analysis of transition technologies in our portfolio, and the
impact they may have on claims rates. In our motor book
we assess EV growth and its impact on revenue and costs
• Acquisitions: Sustainability is included as part of due
diligence in acquisitions.
Climate-related opportunities
We are proactively developing new products to
meet growing customer demand for sustainable
insurance solutions:
• Motor insurance: Admiral offers tailored products
for electric vehicles, offering competitive premiums
for environmentally conscious customers. A key part
of our strategy is our aim to be a leader in electric
vehicle insurance
• Household insurance: Green home insurance, providing
cover for eco-friendly home improvements and materials
that enhance energy efficiency.
We also take advantage of opportunities that may arise
in our dealings with other businesses in our supply chain:
• We have invested in Green Bonds and continue to look
for sustainability-related investment opportunities
• We work with our supply chain partners to take
advantage of innovations such as the growing use
of second hand parts in motor repairs.
The types of capital available to us has increased with
the conversion of the Revolving Credit Facility (‘RCF’)
to a Sustainability-Linked Loan. Please see our 2025
Sustainability Report for basis of reporting on the
Sustainability-Linked Loan.
See our Transition Plan for more detail on opportunities
we can access through the transition. Further details are
included in the sustainability section beginning on page 55.
Admiral’s business strategy influences
our approach to climate risk management
Admiral uses the Group strategy and business plan to
inform the development of climate scenarios, including
stresses related to the adoption of EVs. We also incorporate
business planning data to calibrate our internal risk
measures, factoring in projected balance sheet sizes and
future customer growth in our risk impact assessments.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
Admiral Group Plc Annual Report and Accounts 2025
84
Metrics and targets
Greenhouse gas metrics and targets
Admiral is committed to achieving net zero by 2040 across
Scope 1, 2, and 3 emissions. Net zero means reducing
emissions by over 90%, with any remaining unavoidable
emissions offset. Our Transition Plan sets out how we will
achieve this goal.
Reducing emissions lowers our exposure to transition risks.
It helps protect investment value and ensures our insurance
products remain relevant as regulations, such as those for
electric vehicles, evolve.
This year, we expanded our emissions reporting to include
insurance-related emissions from our UK and EU Motor
portfolios, following the Partnership for Carbon Accounting
Financials (‘PCAF’) standards. These are in addition to
emissions from investments, our corporate and claims
supply chains, and operations.
In this report, we focus on two major sources: Investments
and Underwritten Activities. Further details on Scope 1,
Scope 2, and supply chain emissions are in the SECR
section and our Transition Plan.
Investments
Target: Admiral aimed to cut investment-related GHG
carbon intensity by 25% by 2025 compared to the baseline
set in 2021. We achieved this target with a reduction of
48%. Future targets are to cut investment-related GHG
carbon intensity to 50% by 2030 compared to the baseline
set in 2021, and reach net zero by 2040.
Risks: Several challenges should be noted: sourcing reliable
and consistent data, avoiding unintentional consequences
such as under-diversification, and reliably determining the
expected risk and return impact of the strategy.
Metrics: To guide and review progress toward overall
targets, several metrics are tracked, as shown below.
Investment metrics are calculated by identifying relevant
non-cash assets and applying MSCI ESG data on a per
security basis. Various metrics are subsequently calculated
at the portfolio level.
Metric
2025
2024
2023
Weighted average
carbon intensity
50 tCO2e /
$m revenue
52 tCO2e /
$m revenue
58 tCO2e /
$m revenue
% Allocated to
coal
–
–
–
Investment in
Green bonds
£280m
£287m
£146m
Weighted average carbon intensity (‘WACI’) is calculated
using the latest available carbon emissions (Scope 1 and 2)
per million USD of revenue for all our investments for which
data is available. This is weighted by each security’s market
value relative to the part of the investment portfolio that
is in scope. The scope is determined by the data and
methodology availability and includes public corporate
bonds as defined by EIOPA’s Complementary Identification
Code (‘CIC’). WACI indicates the carbon intensity
per million USD of revenue for the average company
in Admiral's investments.
Insurance-associated activities
Targets: Clear underwriting targets are essential to
achieving net zero and helping customers cut emissions.
Vehicle fuel type is the main driver of insurance-related
emissions. Admiral aims to grow the share of EVs in our
portfolio, aligned with our net zero ambition and Motor
Evolution strategy.
Risks: Supporting the EV transition faces uncertainties,
including future legislation on combustion engine sales
and the pace of EV adoption.
Metrics: In 2025, we calculated emissions for UK and EU
motor portfolios. For UK combustion engines, we used
CarWeb-specific factors; other calculations use UK national
averages from the Department for Energy Security and
Net Zero.
Risk metrics and targets
Transition risk
We monitor exposure to transition risk in investments and
supply chains by tracking the proportion of companies with
science-based targets (‘SBTs’). The investment team also
monitors portfolio diversity by sector and counterparty.
Physical risk
We monitor physical climate risks through established
internal metrics that track exposure to weather‑related
events across our portfolios, such as named storm events
or subsidence events.
These metrics form part of our broader risk management
and scenario analysis processes and help us assess trends
in storm, flood, freeze and other climate‑driven perils.
While we do not disclose event‑level monetary losses for
commercial reasons, we continue to evaluate these risks
regularly and integrate the insights into underwriting,
pricing and capital planning.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
Admiral Group Plc Annual Report and Accounts 2025
85
The TCFD outlines 11 recommendations for climate reporting. The following table indicates where these are detailed,
both within our Annual Report and other sustainability reports. While we meet all recommendations, we aim to continuously
enhance our climate risk management practices and our disclosures.
TCFD pillars
TCFD recommended disclosures
Section of the Strategic
Report, that disclosures are
included in, in compliance
with the Companies Act
Relevant codes, policies
and statements available
at admiralgroup.co.uk
Governance
Disclose the
organisation’s
governance around
climate-related issues
and opportunities
a) Describe the Board’s oversight
of climate-related risks and
opportunities
Governance section of
the sustainability section,
page 65
Governance section of the
TCFD section, page 76
Details are included in our
Transition Plan page 82
b) Describe management’s role in
assessing and managing climate-
related risks and opportunities
Governance section of
the sustainability section,
page 65
Governance section of the
TCFD section, page 76
Details are included in our
Transition Plan page 83
Strategy
Disclose the actual and
potential impacts
of climate-related risks
and opportunities
on the organisation’s
businesses, strategy,
and financial planning
where such information
is material
a) Describe the climate-related risks
and opportunities the organisation
has identified over the short,
medium, and long term
Risk management section
of the TCFD section, page 77
b) Describe the impact of climate-
related risks and opportunities on
the organisation’s businesses,
strategy and financial planning
Embedding physical and
transition risk management
section of the TCFD section,
page 77
See our Transition Plan for
details of how this applies
to key elements of our
value chain
c) Describe the resilience of the
organisation’s strategy, taking into
consideration different climate-
related scenarios, including a 2°C
or lower scenario
Scenario results of the
TCFD section on page 82
Risk management
Disclose how the
organisation identifies,
assesses and manages
climate-related risks
a) Describe the organisation’s
processes for identifying and
assessing climate-related risks
Risk identification of the
TCFD section on page 78
b) Describe the organisation’s
processes for managing climate-
related risks
Risk-by-risk analysis included
on page 80 and 81
c) Describe how processes for
identifying, assessing and managing
climate-related risks are integrated
into the organisation’s overall risk
management
Key integration developments
in 2025 in the TCFD section
on page 77
Metrics and targets
Disclose the metrics
and targets used to
assess and manage
relevant climate-related
risks and opportunities
where such information
is material
a) Disclose the metrics used by
the organisation to assess climate-
related risks and opportunities in
line with its strategy and risk
Metrics and targets section
of the TCFD section page 85
See our Transition Plan for
details of how this applies
to key elements of our
value chain
b) Disclose Scope 1, Scope 2, and,
if appropriate, Scope 3 greenhouse
gas (‘GHG’) emissions, and the
related risks
SECR reporting section on
page 74 for GHG emissions.
Key risks highlighted on
page 78
c) Describe the targets used by
the organisation to manage climate-
related risks and opportunities
and performance against targets
Targets are listed alongside
key parts of the value chain
on page 85
Targets for each element
of the value chain are listed
in our Transition Plan
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
Admiral Group Plc Annual Report and Accounts 2025
86
Fulfilling the Boards’ s172 duties to its shareholders
and stakeholders
The Board of Directors confirm that, during the year ended 31 December 2025, it acted in good
faith, to promote the long-term success of the Company for the benefit of its members as a
whole, whilst having due regard to the matters set out in section 172 of the Companies Act 2006.
How the Board fulfills its duties under
Section 172
Section 172(1) of the Companies Act 2006 (‘s172’) requires
Directors to act in a manner they consider, in good faith,
would be most likely to promote the success of the
Company for the benefit of its members as a whole.
In doing so, Directors must have regard to a range of
factors, including the long-term consequences of its
decisions, the interests of employees, the need to foster
relationships with suppliers, customers and others,
the impact of operations on the community and the
environment, and the importance of maintaining a
reputation for high standards of business conduct.
The Directors of Admiral Group plc, both individually and
collectively as a Board, are fully committed to upholding the
statutory duties set out in s172. A clear understanding of
the needs, expectations and aspirations of our stakeholders
is fundamental to the development and execution of a
sustainable and effective business strategy. The Board
ensures that ongoing consideration of stakeholder interests
is embedded within its discussions and decision-making
processes, thereby supporting the continued progression
of Admiral’s strategic objectives and promoting the long-
term success of the Group.
The Board recognises the importance of maintaining
Admiral’s reputation for integrity and high standards
of business conduct. Accordingly, it ensures that all
stakeholder groups are treated fairly and with respect in
its deliberations. All decisions are taken in alignment with
the Company’s defined purpose, culture and values, which
serve as guiding principles in the pursuit of sustainable
growth and value creation for shareholders.
During 2025, the Board undertook a review of Admiral’s key
stakeholder groups, reaffirming that all six groups identified
under s172 of the Companies Act 2006; employees,
shareholders, customers, suppliers and partners, the
community, and the environment, remain material to the
Group and integral to its long-term success. As part of
this review, the Board assessed current engagement
practices, governance frameworks, feedback mechanisms,
alongside future engagement plans, concluding that these
processes remained effective in providing Directors with a
comprehensive understanding of stakeholder interests and
continued to inform strategic decision making. Examples of
how stakeholder views are considered in Board discussions
are included throughout this s172 statement. Details of
principal decisions made during the year, reflecting s172
considerations, can be found on page 119.
In October 2025, the Board oversaw a review of how the
business continued to embed sustainability into the core
Admiral strategy, an ongoing and evolving process
navigating a complex regulatory environment. The business
continued to enhance its Social Licence to Operate and
strengthen its ESG ratings, including achieving MSCI AAA,
which reflects its robust commitment to sustainability and
responsible business practices, aligned with its purpose
of ‘helping more people look after their future, always
striving for better together’. Additional information on wider
stakeholder engagement across the Admiral Group can
be found within the sustainability section on page 55,
and the Governance Report on page 107.
“The Board continues to carefully
balance the diverse priorities
of Admiral’s stakeholders,
while maintaining a clear focus
on promoting the sustainable
growth and long-term prosperity
of the Group.”
Mike Rogers
Group Chair
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Section 172 statement
Admiral Group Plc Annual Report and Accounts 2025
87
The Board is committed to promoting the long-term success of the Admiral Group by ensuring
it adheres to the highest standards of business conduct, through both its own actions and those
of its employees; understanding the long-term implications of its decisions; and ensuring all
stakeholders are treated fairly.
It does this through:
Defining Admiral Group’s purpose,
culture, values, and strategy:
The Board has clearly articulated Admiral’s purpose and
is responsible for overseeing and monitoring the Group’s
culture and values. These elements, together with active
engagement with stakeholders, guide the strategic direction
of the business. Strategic decisions are taken in alignment
with the Group’s defined purpose and long-term objectives.
Board papers explicitly outline how each matter under
consideration supports the Company’s strategy and
purpose, and the Board regularly reviews strategic priorities
to ensure they remain appropriate and effective.
Ensuring appropriate Board skills,
knowledge, and experience:
Collectively, the Board comprises Directors with a broad
range of relevant expertise and experience, enabling high-
quality discussion and decision making that reflects the
long-term interests of the Company, whilst balancing
the often diverse range of interests of its stakeholders.
Individual Directors contribute specialist knowledge
from a broad range of key areas, including environmental,
social and governance (‘ESG’) matters, ensuring focused
and balanced oversight. The Board receives regular
updates and training to maintain and enhance its
collective capabilities.
See page 123 for further information
See page 134 for further information
Fostering open discussion and
accountable decision making:
The Board recognises that decisions may involve
balancing competing stakeholder interests. Admiral’s
governance culture promotes open, honest and
accountable discussion and decision making, supported
by robust risk management and constructive challenge.
This ensures that all stakeholder perspectives are taken
into account and considered fairly, and that decisions
contribute to the long-term sustainable success
of the Group.
Considering stakeholder
interests and impact:
To assist the Board in fulfilling its obligations under
s172, each Board paper is accompanied by a stakeholder
impact assessment. This outlines: i) the stakeholders
potentially affected by the item under consideration;
ii) how their interests have been taken into account;
iii) the anticipated consequences of any decision;
and iv) how the impact will be monitored over time.
This process ensures that stakeholder considerations
are embedded in Board deliberations.
See page 116 for further information
See page 126 for further information
Maintaining high-quality
Board information:
The Board and its Committees operate to structured
agenda planners, which are reviewed and updated
throughout the year to reflect evolving business needs and
stakeholder expectations. Standardised Board reporting
templates are in place and training has been provided to
ensure consistency, clarity and conciseness. Board papers
undergo a rigorous review process to ensure they are
accurate, focused, and of the highest quality, thereby
supporting effective governance and decision-making.
Implementing an effective
Board review process:
The Board receives regular updates on the implementation
and outcomes of key decisions through its internal
reporting framework. The performance of individual
Directors, Board Committees, and the Board as a whole,
are evaluated annually, with independent external review
every three years, to ensure continued effectiveness
and adherence to the highest standards of conduct
and governance.
See page 133 for further information
See page 145 for further information
The principal decisions taken by the Board during the year, and how the requirements set out under s172 were taken
into account, are set out in the Governance Report on page 119.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Section 172 statement continued
Admiral Group Plc Annual Report and Accounts 2025
88
People
Admiral continues to be recognised as a
leading employer within the UK and across
its international operations, with a culture
and values that underpin its commitment to
fostering a diverse, inclusive, and supportive
working environment.
Why engaging with our employees is important
At Admiral, we firmly believe that if our people enjoy what
they do, they will do it better. The wellbeing and
engagement of our colleagues are recognised as critical
drivers of the Group’s long-term success. Our people
continue to represent a significant source of competitive
advantage, and the Board remains deeply committed to
supporting their development and future wellbeing. The
Board and senior management maintain active engagement
with employees across the business, fostering a positive
and inclusive working environment. This approach
contributes to a more motivated and productive workforce,
enhances operational performance, and supports improved
outcomes for customers and other stakeholders.
How the business engages with our employees
Employees are encouraged to engage across multiple
channels. Key engagement mechanisms include:
• UK and international employee consultation groups
provide direct input into operational and strategic matters
• Regular employee surveys capture feedback and
measure engagement across the Group
• Internal communications through multiple platforms,
including feedback initiatives such as ‘Ask Milena’
and ‘Speak Up’
• Dedicated forums and working groups focused on
diversity, equity and inclusion
• One-to-one meetings with managers, development
conversations, and mandatory training programmes
covering professional development and compliance.
Further examples of how Admiral engages with
its colleagues can be found on pages 58 and 127
How the Board engages with employees
The Board recognises the importance of meaningful
engagement with Admiral’s workforce and maintains
a structured approach through both formal and informal
channels. Dedicated employee consultation groups,
comprising the UK Employee Consultation Group (‘ECG’)
and the International Employee Consultation Group (‘IECG’),
provide a representative voice from across the Group.
Each ECG meeting held during the year was attended
by at least one Admiral Group Non-Executive Director,
ensuring direct Board-level engagement.
The Chairs of the Admiral employee forums report key
discussion points to the Board, offering valuable insight into
workforce perspectives. These updates are followed by
Board feedback to the forums, ensuring effective two-way
communication between employees and the Board.
In addition, Directors engage with employees through site
visits, participation in internal presentations, and regular
updates from senior management on people-related
matters, including employee engagement, survey
outcomes, and cultural indicators.
Outcomes and impact of engagement
on Board decision making
The Board has prioritised employee engagement as key to
Admiral’s long-term value and sustainability. A major focus
during the year was the new reward framework, approved
in May 2025, which modernised our UK pay structures and
included employee consultation and representations. Chairs
of the UK and International Employee Consultation Groups
attended selected Board meetings, providing employee
insights on reward changes, working practices, and
engagement initiatives. Non-Executive Directors also joined
employee forums, ensuring workforce feedback assisted
in shaping policy.
The Board reviewed hybrid working, confirming its benefits
for productivity, culture, and diversity, and endorsed
continued flexibility. It oversaw Board and senior leadership
appointments, including a new CEO at Admiral Money, as
well as Group Chief Data Officer and Group Head of GenAI,
reflecting a commitment to innovation and AI preparedness.
To reinforce shared ownership, the Board approved
a discretionary share award and endorsed an updated
Diversity and Inclusion Policy, supported by strong results
from the Great Place to Work® Survey. These actions
underline the Board’s focus on inclusivity and maintaining
Admiral as a great place to work.
For further information see:
Page
Awards and recognition
56
Employee consultation
127
Diversity and inclusion
59, 141
Culture
58, 123
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Section 172 statement continued
Admiral Group Plc Annual Report and Accounts 2025
89
Shareholders
Delivering long-term sustainable value for
the Group by managing shareholder capital
with integrity and accountability.
Why engaging with our shareholders
is important
Engaging with shareholders is essential to securing
continued support for Admiral’s strategic objectives and
long-term value creation. Effective engagement enables
alignment between the Board and the Company’s owners,
providing a platform to communicate the rationale behind
key decisions and strategic priorities. It also offers
shareholders the opportunity to provide feedback, raise
concerns, and contribute to the ongoing development
of the business.
How the business engages with shareholders
Admiral is committed to maintaining regular, transparent,
and constructive engagement with its shareholders through
a range of established channels. These include:
• A comprehensive investor relations programme
encompassing site visits, industry conferences, results
and non-results roadshows, and ad-hoc meetings
• Ongoing dialogue with analysts to ensure clarity around
the Group’s performance and strategic direction
• Timely and informative market disclosures, including
the Annual Report, Sustainability Report, and interim
and full-year results announcements and presentations
• The Annual General Meeting and dedicated corporate
governance discussions
• Admiral’s corporate website is regularly updated to
provide shareholders with access to key information.
This multi-channel approach ensures shareholders remain
well-informed and able to engage meaningfully with the
Company’s strategy and performance.
How the Board engages with shareholders
The Board maintains strong relationships with Admiral’s
major shareholders, including the Group’s founders, and
receives regular updates on investor engagement from
senior management and the Investor Relations team.
Shareholder feedback is routinely shared and actively
considered in governance and strategic decisions.
Throughout the year, the Board has remained informed
on market developments, share price performance,
and changes in the share register.
Engagement with institutional investors and analysts occurs
through meetings, briefings, roadshows, and conferences,
while the Chair, Senior Independent Director, Executive
Directors, and Committee Chairs remain accessible to
significant shareholders. The Board also engages with retail
shareholders via the Annual General Meeting, providing an
open forum for dialogue and ensuring all shareholders can
interact directly with the Company’s leadership.
Outcomes and impact of engagement
on Board decision making
The Board remains committed to open and constructive
dialogue with Admiral’s shareholders, recognising their
input as integral to the long-term success of the business.
During 2025, engagement was delivered through a
structured investor relations programme, with feedback
carefully considered in Board discussions to ensure
decisions aligned with the Group’s purpose, values,
and strategy.
Capital allocation remained a key focus, with focused
engagement on optimising shareholder returns guiding
the Board’s assessment of strategic options. Shareholder
input also shaped decisions on interim, final, and special
dividends, which were assessed alongside financial
performance and capital strength to balance shareholder
expectations with long-term resilience.
The Board maintained oversight of credit ratings,
ESG performance, and sustainability priorities, addressing
areas for improvement to meet stakeholder expectations.
This proactive approach strengthened investor confidence,
supported long-term value creation, and ensured Admiral
remains well-positioned to respond to evolving shareholder
and market demands.
For further information see:
Page
Business model
10
Governance Report
107
Shareholder engagement
126
Remuneration Policy
164
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Section 172 statement continued
Admiral Group Plc Annual Report and Accounts 2025
90
Customers
We aim to provide a great customer experience.
Why engaging with our customers is important
Admiral places customers at the centre of its business
model, guided by its purpose, to help more people look
after their future. Always striving for better together.
The Group is committed to broadening access to competitive
financial services and ensuring customer needs shape
product design and delivery. Feedback informs ongoing
improvements, and customer experience is continually
assessed against expectations and regulatory standards.
In line with the FCA’s Consumer Duty, Admiral has
strengthened processes to ensure clear communications,
fair value, and appropriate support. During 2025, the
business reviewed data and implemented enhancements
to products and services, including its approach to FCA
focus areas and reviews such as motor total loss
(see page 147), thereby reinforcing its commitment to
positive customer outcomes. Further details are provided
on page 154.
How the business engages with our customers
Admiral is committed to strong, transparent, and responsive
customer relationships across every stage of the customer
journey. Engagement is supported through multiple channels,
including digital platforms (customer portals, surveys, SMS
feedback, and the Admiral App), live chat, and social media
for real-time interaction and service refinement. Customer
insight initiatives such as focus groups, panels and
perception studies inform enhancements to digital
experiences, while direct engagement with frontline teams
ensures feedback is acted upon promptly. Internal feedback
loops escalate insights to senior leadership, shaping strategic
decisions and service improvements.
Customer satisfaction is embedded in Admiral’s culture
and performance framework, forming a key component
of the Group’s reward structure. Notably, 12.5% of the
vesting criteria for share awards, impacting around
4,600 colleagues, is linked directly to customer satisfaction
metrics. Further details on Admiral’s approach to
responsible customer engagement can be found in the
sustainability section on page 55.
How the Board engages with our customers
While the Board does not engage directly with customers,
it maintains robust oversight of customer experience and
outcomes through regular reporting from management.
These updates include assessments of how customers
are treated throughout their journey, with particular
focus on ensuring good outcomes and compliance with
regulatory expectations, including the integration
of Consumer Duty principles.
Customer-related objectives formed part of the Board’s
2025 priorities, and progress against these is reviewed
at Board meetings (see page 118 for further details).
Customer satisfaction metrics are routinely incorporated
into strategic discussions, informing decisions on digital
investment, service enhancements, and product
development. In addition, the Board receives updates
on conduct risk via the Group Risk Committee, ensuring
customer considerations remain central to Admiral’s
governance and risk oversight.
Outcomes and impact of Board decision making
During 2025, the Board maintained its strategic focus on
delivering good customer outcomes, particularly through
the implementation of the Consumer Duty regulation
across the Group. Regular updates on governance and
reporting enhancements enabled the Board to strengthen
oversight and swiftly address any emerging risks to
customer experience.
Customer insights, gathered via surveys, focus groups,
and the Admiral Customer Panel were reviewed by the
Board and directly informed decisions to improve pricing
transparency, simplify communications, and enhance claims
handling. Benchmarking exercises highlighted areas for
improvement, leading to targeted service enhancements.
The Board also monitored the rollout of new technology
strategies, including generative AI, which improved
customer journeys through greater personalisation and
operational efficiency. New senior hires in this space were
overseen by the Board. Safeguards were reinforced to
detect and resolve poor outcomes promptly.
Through its review of customer outcomes and feedback,
the Board confirmed Admiral’s compliance with Consumer
Duty obligations and reaffirmed its commitment to
delivering good outcomes as a core strategic priority.
For further information see:
Page
Business model
10
Strategic Report
14
Principal decisions
119
Consumer duty
155
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Section 172 statement continued
Admiral Group Plc Annual Report and Accounts 2025
91
Communities
Admiral is committed to ensuring its impact
on society is both positive and enduring.
Why engaging with our communities
is important
Admiral is committed to making a positive and lasting
contribution to the communities in which we operate,
as well as to wider society. Community engagement is
a core element of our culture and reflects our values as
a responsible corporate citizen. Through ongoing dialogue
with community stakeholders, we have identified key areas
of focus including employability, social mobility, education,
financial inclusion, and support for sports, arts, and culture.
By addressing these priorities, Admiral demonstrates
a genuine commitment to social impact and long-term
value creation beyond the boundaries of the business.
As a major employer across multiple countries, Admiral
recognises its responsibility to provide meaningful
employment opportunities within local communities, while
investing in the training and development of our people.
We are also committed to promoting diversity and inclusion
both within Admiral and in the communities we serve,
ensuring our actions contribute to a more equitable and
resilient society.
How the business engages with
our communities
Supporting the communities in which Admiral operates
is a core part of the Group’s culture. Through targeted
investment in programmes, education, and local
enterprises, Admiral addresses immediate needs, while
empowering individuals and organisations for long-term
success, reflecting our commitment to societal value and
community resilience. Our strategy is built on three pillars:
Partnerships – collaborating globally and listening to
stakeholders to direct support where it is most needed;
Impact Funds – providing aid during crises and supporting
climate resilience projects; and Colleague Engagement –
enabling employees to contribute through grants, match
funding, volunteering, and special interest groups.
To ensure effectiveness, Admiral’s Community Strategy
undergoes regular review, with impact monitored through
feedback from partners, employees, community
stakeholders, and external bodies. This evaluation
framework ensures our engagement remains responsive,
aligned with our values, and delivers meaningful outcomes.
How the Board engages with our communities
The Board provides strategic oversight of Admiral’s
community initiatives, ensuring alignment with priorities
such as employability, financial inclusion, climate resilience,
and social mobility, while fostering a culture that encourages
employee participation in worthwhile causes. In 2025,
the Board supported investment of over £4.4 million in
community programmes, including donations to strategic
partners, and delivered 45,000 Impact Hours of colleague
volunteering (2024: 32,500 hours). These efforts were
complemented by colleague-led community and
sponsorship activities, with further details available on our
website. Internationally, the Board backed Admiral’s Global
Emergency Fund, enabling swift donations to humanitarian
causes, including contributions to the Disaster Emergency
Committee alongside financial aid for flood-affected regions.
To measure impact, the Board endorsed the Social Value
Portal, which evidenced millions of pounds in social value
delivered to date. The Board also receives regular updates
on community strategy through governance papers,
dashboards and committee reviews, incorporating
feedback from partners, colleagues, and external bodies
to ensure engagement remains effective, responsive,
and aligned with Admiral’s strategic goals.
Outcomes and impact of Board decision making
During 2025, the Board maintained strategic oversight
of Admiral’s community impact and social purpose agenda.
It reviewed progress against key objectives and received
regular updates on flagship initiatives, including investment
in Earth Schools, which promotes environmental education,
and Admiral’s membership of the Disaster Emergency
Committee Rapid Response Network, enabling swift
humanitarian support during global crises.
The Board provided direction on Admiral’s social purpose
priorities and endorsed plans to strengthen this strategy
further in 2026 and beyond. This included guiding future
investment through the Community Investment Programme
and ensuring alignment with long-term objectives. These
actions demonstrate the Board’s commitment to delivering
measurable social value and reinforcing Admiral’s role as
a positive influence within its communities.
For further information see:
Page
Business model
10
Strategic Report
14
Sustainability
55
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Section 172 statement continued
Admiral Group Plc Annual Report and Accounts 2025
92
Environment
Admiral is committed to reaching net zero
greenhouse gas emissions across its
operations by 2040.
Why engaging with environmental
issues is important
Admiral is committed to proactive environmental
engagement as a strategic imperative and a reflection
of our responsible business practices. Addressing climate-
related challenges is essential to securing a sustainable
future for our customers, colleagues, shareholders, and
society. Being an environmentally responsible company
matters to all stakeholders, our colleagues want to work for
an organisation that protects the environment, customers
expect us to support a sustainable future, and shareholders
and regulators increasingly focus on environmental risks
and opportunities. Our environmental strategy includes
reducing our operational carbon footprint, supporting
customers in their transition to a low-carbon economy,
meeting evolving regulatory expectations, and contributing
to broader industry and societal change. Further details
are available in our Sustainability Report on our website.
How the business engages
with environmental issues
Admiral adopts a proactive and structured approach to
environmental engagement. Our strategy is designed to
raise awareness, drive meaningful action, and support the
transition to a low-carbon economy. Key initiatives include:
• Net Zero Commitment: Achieving net zero greenhouse
gas emissions in our operations, supply chain, and
investments by 2040, supported by our inaugural
Net Zero Transition Plan
• Sustainability Governance: Oversight is led by the
Sustainability Steering Committee, which includes the
Group CEO, with five working groups ensuring alignment
and integration across the Group
• Operational Sustainability: Carbon-neutral operations
covering Scope 1 and 2 emissions and selected
Scope 3 categories
• Employee Engagement: Sustainability roundtables,
forums, and events like Green Week unite colleagues
to share ideas and drive sustainability initiatives
• Community Investment: The Green Fund initiative
supports environmental work in local communities,
such as nature-based flood prevention
• Embedding Sustainability: Integrated into Group strategy,
linked to communications and non-financial metrics,
with disclosures aligned to TCFD, SECR, SASB, and CFD.
How the Board engages with
environmental issues
The Board oversees Admiral’s sustainability and climate
agenda, approving strategy and ESG ambitions as drivers
of long-term value. Directors provide diverse expertise and
regularly review environmental topics, including regulations,
climate initiatives, and emerging risks. The Group CEO
holds overall accountability, supported by the Chief Risk
and Compliance Officer, who leads climate-related matters
and ensures integration across the Group.
Outcomes and impact of Board decision making
During 2025, the Board strengthened the integration
of environmental considerations into Admiral’s strategy,
long‑term planning and operational priorities. This included
enhancing climate governance through the introduction of
a Sustainability Risk Policy and development of a Climate
Risk Management Framework, due to launch in 2026,
alongside monitoring progress against the Group’s 2040
net zero ambition.
Climate risks and opportunities were further embedded
within strategic planning and the Own Risk and Solvency
Assessment (‘ORSA’), supporting capital adequacy and
resilience under different climate scenarios. The Board also
reviewed ESG performance, regulatory developments and
oversaw the Sustainability Report, reinforcing accountability
and transparency in environmental reporting.
For further information see:
Page
Sustainability
55
Responsible business practices
65
SECR and TCFD disclosures
74, 76
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Section 172 statement continued
Admiral Group Plc Annual Report and Accounts 2025
93
Partners and suppliers
We are committed to cultivating strong,
collaborative relationships with our partners
and suppliers that deliver mutual value and
long-term benefit.
Why engaging with our partners
and suppliers is important
Our partners and suppliers play a vital role in enabling
the Group to achieve its strategic objectives. Representing
a broad spectrum of businesses, including financial and
reinsurance partners, IT hosting providers, and those
delivering distribution and claims services, amongst others,
alongside the regulators and governments within the
countries in which we operate. Admiral is committed
to cultivating strong, collaborative relationships through
well-established governance processes that oversee the
full lifecycle of supplier engagement across the Group.
Effective management of these relationships is essential
to mitigating third-party risks throughout our supply chain.
Admiral acts responsibly in our procurement practices,
prioritising local and regional suppliers where feasible,
and promoting ethical and environmentally sustainable
standards. In support of supplier financial resilience,
we also strive to ensure timely payment practices.
How the business engages with
our partners and suppliers
The Group maintains robust processes for managing third-
party relationships, with dedicated relationship managers
overseeing supplier performance, contract renewals,
negotiations, service reviews, and continuous improvement
initiatives. For example, to ensure governance and
transparency, Admiral uses an integrated contract
management platform in the UK, which centralises
procurement activities such as tendering, contract lifecycle
management, supplier oversight, and has invested in new
procurement technology to run supplier due diligence
across our main entity EUI Ltd, ensuring consistency
and accountability across all stages of engagement.
In addition, specialist regulatory relationship teams maintain
proactive communication with the FCA and PRA in the UK,
while equivalent teams operate within international
businesses to manage local regulatory relationships.
This approach ensures compliance and alignment with
regulatory expectations globally, supporting the Group’s
commitment to strong governance and effective
stakeholder engagement.
How the Board engages with our
partners and suppliers
The Board does not engage directly with partners and
suppliers but receives regular updates from management
on strategic relationships, procurement activities, payment
practices, emerging partnership opportunities, co-insurance
and reinsurance arrangements, customer-facing supplier
performance, third-party risk management, and modern
slavery risks within the supply chain. These updates inform
the Board’s assessment of long-term strategic implications,
with the Chief Financial Officer providing detailed reports on
the renewal of co-insurance, reinsurance, and quota share
agreements, ensuring continuity of Admiral’s strategic
partnership with Munich Re.
Outcomes and impact of Board decision making
In 2025, the Board strengthened oversight of Admiral’s
relationships with partners and suppliers to ensure
resilience, regulatory compliance, and ethical standards
across the value chain. It supported collaboration with major
suppliers to drive knowledge exchange and innovation,
improving operational efficiency and customer experience.
This included reviewing strategic partnerships, overseeing
good payment practices, reinforcement of Modern Slavery
provisions across the supply chain, and approval
of Admiral’s Modern Slavery Statement, which sets out a
zero-tolerance approach to forced labour and exploitation.
These actions were supported by comprehensive employee
training on anti-bribery, corruption, modern slavery
practices and supplier conduct.
The Board also received updates on the project to enhance
Third-Party Risk Management (‘TPRM’), including supplier
due diligence, the establishment of a TPRM forum, and
development of an enterprise-wide risk framework to
ensure consistent application across the Group.
It maintained open, constructive relationships with the PRA
and FCA, responding promptly to feedback and adapting
processes to meet regulatory expectations. The PRA
attended the January 2025 Board meeting to discuss
regulatory matters, including Admiral’s pre-Internal Model
application, and the Board reflected on this feedback to
adjust its processes where necessary.
For further information see:
Page
Business model
10
Sustainability
55
Principal decisions
119
SECR and TCFD disclosures
74, 76
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Section 172 statement continued
Admiral Group Plc Annual Report and Accounts 2025
94
The non-financial and sustainability reporting requirements contained
in sections 414CA and 414CB of the Companies Act 2006 are addressed
within this section by means of cross reference, to indicate where they
are located within the Annual Report and to avoid duplication.
Reporting
requirement
Annual Report
Page
Relevant policies, statements and codes
available at admiralgroup.co.uk
Our business
Business model
See page 10
• Group Underwriting Risk & Pricing Policy
• Group Remuneration Policy
• Group Investments Policy
• Group Liquidity Management Policy
• Group Capital Management Policy
• Group Tax Strategy Policy
Strategy
See page 21
Group capital structure and
financial position
See page 54
Key performance indicators
See page 27
Sustainability
Our approach to sustainability See page 56
• Sustainability Report 2025
• Net Zero Transition Plan
• Sustainability Policy
Responsible investments
See page 67
• Group Investments Policy
Environmental
Environmental sustainability
See pages 69, 79, 81
• Sustainability Report 2025
• Net Zero Transition Plan
Task Force on Climate-
related Financial Disclosures
(
)
See page 81
Climate-related Financial
Disclosures (‘CFD’)
See page 81
Streamlined Energy and
Carbon Reporting (‘SECR’)
See page 79
Employees
Our culture
See pages 59, 131
• Group Health and Safety Management Policy
• Equality, Diversity and Dignity at Work Policy
Diversity, equity and inclusion See pages 60, 147
• Sustainability Report 2025
Social matters
Social purpose
See page 62
• Group Data Protection Policy
• Corporate Website Privacy Notice
• Group Board Diversity & Inclusion Policy
Community investment
See page 62
• Sustainability Report 2025
Respect for
human rights
Human rights and modern
slavery, responsible
business practices
See pages 66, 101
• Modern Slavery Statement
• Group Procurement & Outsourcing Policy
• Group Vulnerable Customers Policy
• Equality, Diversity and Dignity at Work Policy
• Anti-slavery, Exploitation and Human
Trafficking Policy
Anti-corruption
and
anti-bribery
matters
Financial crime and anti-
corruption and anti-bribery
See pages 66, 163
• Group Financial Crime and Anti-Bribery Policy
• Group Conduct Risk Policy
Suppliers
See pages 66, 75, 101
• Group Procurement & Outsourcing Policy
• Group Whistleblowing Policy
Governance
Principal risks and
uncertainties
See page 106
• Group Risk Management Policy
• Group ORSA Policy
Governance
See pages 68, 115
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Non-financial and sustainability information statement
Admiral Group Plc Annual Report and Accounts 2025
95
Group Policies
Admiral’s governance framework supports the due‑diligence processes underpinning our policies. Our sustainability governance
structure and DE&I Working Groups help ensure relevant matters are considered and that clear communication is maintained
across the business. The annual Great Place to Work® survey provides an important due‑diligence mechanism for identifying
social and employee‑related issues, with results discussed throughout this Annual Report. All Group policies are reviewed
regularly, and all in‑scope business areas must demonstrate how they comply with each policy and its associated controls.
Policy
Description
Group Health and
Safety Management
Policy
This policy outlines our commitment to ensuring the health and safety of staff and anyone affected
by our business activities, and our commitment to providing a safe environment for those attending
our premises.
Equality, Diversity
and Dignity at Work
In line with The Worker Protection (Amendment of Equality Act 2010) Act 2023, this policy outlines
Admiral’s commitment to ensuring that any type of unfair discrimination including harassment,
victimisation, favouritism, and bullying is not accepted. It outlines the standards of behaviour that
are expected from all employees to ensure that everyone at Admiral is treated with dignity and
respect, feels comfortable in the workplace, and has equal opportunities.
Code of Conduct
Our Code of Conduct outlines the standards of behaviour that all colleagues must adhere to
regardless of their role. Colleagues are expected to abide by these policies and act with integrity,
due skill, care and diligence.
Group Sustainability
Policy
This policy outlines Admiral’s commitment to operating responsibly and sustainably across its
business activities. It sets expectations for managing environmental, social and governance (‘ESG’)
impacts, integrating sustainability into decision‑making, and ensuring that the Group works towards
long‑term value creation for colleagues, customers, communities and the environment.
Group Data
Protection Policy
This policy outlines our obligations and expectations regarding the processing of personal data.
This policy is supported by a comprehensive Privacy Compliance Programme. Adherence to the
Policy and to the requirements contained within our Privacy Control Framework is monitored through
regular reviews and audit activities, which are reported to Audit and Risk Committees.
Group Board
Diversity & Inclusion
Policy
This policy sets out the approach to Board diversity for Boards within Admiral, covering diversity
of approach, skills and experience, race, age, gender, educational and professional background
and other relevant attributes. Board appointments should complement the existing Board’s skills
and experience and will always be made on merit against objective criteria, including diversity.
Group Vulnerable
Customers Policy
This policy outlines the behaviour and standards expected when dealing with vulnerable customers
throughout the end-to-end product lifecycle. It has been designed to ensure that Admiral acts
to deliver good outcomes for customers with characteristics of vulnerability.
Modern Slavery
Our Anti-Slavery, Exploitation and Human Trafficking policy confirms Admiral’s zero tolerance approach
to modern slavery, outlines our ongoing commitment to eliminating unethical working practices, and
provides guidance to employees on reporting any problems identified at work or in the community.
We release an annual Modern Slavery Statement in line with the Modern Slavery Act 2015.
Group Conduct
Risk Policy
This policy covers the risk that our products, services, culture, communication or interaction with
customers may result in unfair customer outcomes. It demonstrates Admiral’s commitment to
ensuring that customers receive the outcomes they can reasonably expect from the products
and services we provide, and how to mitigate conduct risk within the business.
Group Financial
Crime and Anti-
Bribery Policy
This policy ensures that robust systems and controls are in place to detect, prevent and deter
financial crime across the Group, covering areas such as money laundering, market abuse and
insider trading, sanctions breaches, modern slavery, tax evasion, and bribery and corruption. It also
strictly prohibits the solicitation or acceptance of any bribe by anyone acting on Admiral’s behalf,
whether to gain an unfair commercial, contractual or regulatory advantage for Admiral, or any
personal benefit for the individual or their associates.
Group Procurement
& Outsourcing Policy
This policy requires employees engaging in procurement activity to uphold business integrity,
combat unethical practices such as including modern slavery, comply with laws, and drive
de-carbonisation with key suppliers. This is enforced through strict controls and monitoring.
Group
Whistleblowing
Policy
This policy encourages and enables employees to raise any concerns they have about serious
malpractice or wrongdoing. It is designed to ensure that an employee can raise their concerns
without fear of victimisation, subsequent discrimination, disadvantage, or dismissal. This policy
details internal and external reporting lines for any employee concerns.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Non-financial and sustainability information statement continued
Admiral Group Plc Annual Report and Accounts 2025
96
The Board, with support from the
Group Risk Committee and the
Group Risk Management Function,
undertakes a regular and robust
assessment of the principal and
emerging risks facing the Group
alongside engaging with the
management team on the Group
Strategy. These risks have been
summarised as those which would
threaten its business model, future
performance, solvency or liquidity,
and reputation.
The following table sets out the principal risks and
uncertainties (‘PR&Us’), which Admiral has identified through
its Enterprise Risk Management Framework (‘ERMF’).
Admiral continues to monitor how the PR&Us interact with
external events and emerging risks. In 2025, this notably
included the impact of geopolitical instability on global trade
conditions and the development and broader adoption of
new and emerging technologies such as fully autonomous
vehicles (‘AVs’), generative AI, and quantum computing.
This volatility has foregrounded the role of operational
resilience and cyber-security in ensuring the Group
is sufficiently robust and agile to respond to threats,
cyber-attacks, and risk events. The impact of the PR&Us,
development of the risks during 2025, and actions taken
to mitigate them are explained below. This section also
includes a description of Admiral’s approach to identify,
manage, and govern emerging risks.
Admiral Group’s risk management and strategy linked to
climate change, is discussed in the Task Force on Climate-
Related Financial Disclosures on page 76.
Risk appetite: The Admiral Group risk strategy contains
strategic risk statements for the relevant risks that help
deliver the Group’s business objectives. The Group risk
appetite is owned and approved by the Admiral Group
Board. The responsibility for the Group risk appetite is
delegated to the Group Risk Committee, which reviews
all components prior to Board approval and monitors the
performance of the business against the approved Group
risk appetite through the Group CRO Report and other
risk reporting.
The PR&Us reflect the main risks faced by the Group
in achieving its strategic objectives, with the links to the
strategy noted against each PR&U. For more information
on the strategy, refer to page 20.
Identification of risks
Principal risks (A–J)
Impact on strategic initiatives key
Reserving risk
Accelerating towards Admiral 2.0
Insurance risk
Diversification
Market risk
Evolution of Motor
Operational risk
Risk trend key
Legal and regulatory risk (including conduct)
Risk increased
Credit risk
Risk stable
Catastrophe risk
Risk decreased
Reinsurance risk
Strategic risk
Reputation risk
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Principal risks and uncertainties
Admiral Group Plc Annual Report and Accounts 2025
97
See also note 3 to the financial statements, which
provides further details on a number of these risks
Reserving risk
Impact on the strategic initiatives:
Admiral is exposed to reserving risk where claims reserves
may prove insufficient to cover the ultimate cost of claims,
which are by nature uncertain. This is a particular risk for
motor insurance liabilities, where the amount payable for
bodily injury claims (particularly large claims) can change
significantly during the lifetime of the claim due to risks such
as changes in Ogden rates, increased propensity of
Periodical Payment Orders (‘PPOs’), and claims inflation.
This uncertainty, also impacted by economic, environmental,
regulatory, or political change (such as geopolitical conflicts
impacting supply chains) can lead to adverse development
and higher claims costs than projected, resulting in higher
loss ratios, reduced profits, or underwriting losses.
The impact of environmental risks is drawn out in more detail
for climate-related risks in the TCFD section on page 78.
In mitigation, the Group continues to reserve conservatively,
setting its IFRS 17 risk adjustment in the financial statements
between the 85th and 95th percentiles, which is aligned
to the Group risk appetite for reserve risk.
Best estimate reserves are estimated both internally and
externally by independent actuaries. For very large levels of
claims, Admiral purchases excess of loss reinsurance, which
mitigates a portion of the loss.
Insurance risk
Impact on the strategic initiatives:
Admiral has a high appetite for writing insurance and value-
added ancillary products, while maintaining a low expense
ratio. The Group is exposed to the risk that inappropriate
premiums are charged for its insurance products leading
to either insufficient premiums to cover claims costs or
uncompetitive rates resulting in reduced business volumes.
Insurance risk can be affected by geopolitical conflicts and
economic uncertainty, driving supply chain pressures and
fluctuations in vehicle repair and replacement costs,
changes to customer behaviour or to the competitive
market, and climate change. Growth in technologies such
as electric vehicles and AI also introduce additional
insurance risk by driving market trends.
Mitigating factors, which contribute to Admiral’s strong
UK underwriting results, include a disciplined, dynamic and
forward-looking approach to pricing and growth, with a focus
on building the business for the long term. Admiral has
experienced and focused senior management teams,
notably in pricing and claims and a highly data-driven
and analytical approach to the regular monitoring of claims
and underwriting performance. The business is capable
of identifying and resolving underperformance promptly
through rapid and dynamic changes to key performance
drivers, particularly pricing, and continuously appraises
and invests in employees, systems, and processes.
Market risk
Impact on the strategic initiatives:
Market risk arises due to developments in economic and
financial market conditions that result in movements in
interest rates, credit spreads, and foreign exchange rates.
Market volatility (notably significant changes in risk-free
interest rates or material increases in credit spreads) can
adversely impact the value of the Group’s assets. In addition,
growth of the Group’s businesses outside the UK has altered
the exposure to net assets and liabilities in currencies other
than pounds sterling, increasing the Group’s exposure to
Euros in particular.
In mitigation, Admiral has a dedicated Investment
Committee, which advises each subsidiary board and
oversees the investment management of funds as well as
advising on effective treasury and foreign currency exposure
management of the Group’s funds. The Group’s investment
and liquidity policies for managing cash and invested assets
support compliance with the Prudent Person Principle
and other regulatory requirements. These policies also
set expectations to ensure that assets and liabilities are
adequately matched, thereby reducing mismatch risk.
This is translated into the Group’s investment strategy,
which is derived based on key considerations, which include
the preservation of the amount invested, low volatility
of returns, matching duration and currency of liabilities,
and strong liquidity. The majority of the portfolio is invested
in high-quality fixed-income and other debt securities,
money market funds, and other similar funds, in order to
achieve these objectives, with a limited exposure to private
credit and equity markets. This is reviewed regularly by
the investments team, Investment Committee, and asset
managers to ensure Admiral is adequately positioned.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Principal risks and uncertainties continued
Admiral Group Plc Annual Report and Accounts 2025
98
2025 trend:
2025 trend:
2025 trend:
Operational risk
Impact on the strategic initiatives:
Admiral continues to review the impacts and level of
operational risk in the context of a modern, digital, hybrid
workplace. The principal categories of operational risk
for Admiral include transformation and change, people,
technology, information security / cyber, resilience,
data management, and third-party management.
Operational risk can arise in a number of forms, including
poor business decisions due to lack of data or weaknesses
in the data, inadequate or failed internal / outsourced
projects, processes, and systems, and from people-related
sources such as hybrid working, or external events. These
can lead to loss of services and data, customer detriment /
dissatisfaction, regulatory censure / enforcement, reduced
earnings, and / or reputational damage due to Admiral’s
action or inaction.
Admiral operates a three lines of defence model, and internal
controls are in place and are monitored to mitigate risks.
The following are a limited number of examples of how
operational risks are managed:
• Transformation and change: To enable its strategic
objectives of driving innovation and agility, Admiral is
prioritising the reduction of technical debt, leveraging
emerging technologies, and automating manual
processes. These efforts are supported by strong
change governance and assurance, to ensure robust
development and delivery
• People: Admiral continues to strengthen succession
planning in the UK through targeted recruitment and
internal talent development. The commitment to diversity
and inclusion is embedded in a refreshed DE&I strategy
and supported by inclusive hiring practices. Admiral
remains accredited under the UK Real Living Wage and
has enhanced reward practices to support fair pay.
Embracing hybrid working remains central to attracting,
engaging and retaining talent in a flexible, inclusive and
productive environment
• Technology: Admiral is continually evolving and
enhancing its technology landscape to keep pace with
industry standards, while reducing complexity and
maintenance costs. The scale, nature, and pace of these
changes introduce risks related to the security and
effectiveness of new systems, potential disruptions
during cutover and post-migration, and the need to
maintain high levels of customer service. The business
continues to apply rigorous governance and oversight,
including performance and operational testing, rollback
planning, and business readiness activities, ensuring
robust support during upgrades and minimising disruption
to services
• Information security / cyber: Enhancing the cyber
defence capabilities has remained a key priority to stay
ahead of an increasingly sophisticated threat landscape.
Admiral employs a multi-layered security strategy focused
on prevention, detection, and rapid response. Vigilance
is maintained through continuous monitoring, proactive
threat hunting and simulation, and real-time adaptation
to emerging threat intelligence and evolving tactics,
techniques, and procedures. In addition, Admiral
continues to collaborate with industry partners and the
National Cyber Security Centre as part of its broader
commitment to cyber security resilience. During the year,
the Group increased the limits of its cyber insurance
arrangements
• Resilience: Resilience is recognised as a pervasive risk
that underpins all aspects of operations and is supported
by dedicated incident management teams within entities.
With new regulations through 2025 enhancing
requirements for stronger business continuity and disaster
recovery practices, further maturity in resiliency practices
is developing, which ensures that continuity and recovery
plans are regularly tested including system and data
recovery
• Data management: The Group recognises the increasing
significance of high-quality data for decision making and
AI integration. Accordingly, a new data governance and
quality policy has been approved to establish robust
standards for data quality and ownership. In addition,
a Group-level second line responsible data team has been
established with the aim of supporting the consistent
application of critical data definitions and lineage across
Group-level metrics, and helping to optimise the
management of critical data assets. A centralised annual
data maturity assessment is now conducted by this team
• Third-party management: Strategic reviews are
periodically undertaken to align procurement and
outsourcing arrangements with the wider business
strategy and in response to ongoing macroeconomic
challenges. Outsourced activities are monitored through
regular risk assessments, ongoing supplier relationship
management, initial and ongoing due diligence reviews,
exit plan testing, and integrated business continuity
planning for material outsourcers. Oversight is particularly
focused on the cyber risks posed by third parties and also
their own suppliers.
Admiral also purchases a range of insurance covers to
mitigate the impact of a number of operational risks,
including public and products liability insurance, civil liability
insurance, and employers’ liability insurance.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Principal risks and uncertainties continued
Admiral Group Plc Annual Report and Accounts 2025
99
2025 trend:
Legal and regulatory risk (including conduct)
Impact on the strategic initiatives:
As Admiral operates globally, across various business lines
and products, it is exposed to differing political regimes,
legal jurisdictions, regulatory expectations, and tax systems.
Admiral has a very low appetite to legal and regulatory risk,
which may arise where Admiral fails to identify, interpret, or
fully comply with legal, tax, and / or regulatory requirements,
including regulatory reporting in a timely manner.
This could lead to regulatory intervention, censure, and /
or enforcement action through fines and other sanctions,
potential criminal and / or civil enforcement action, and
potential customer detriment and / or dissatisfaction.
This risk may also arise where previous industry, tax,
regulatory, and / or legal compliance standards are
reinterpreted with negative consequences and applied
retrospectively, for the industry and / or the Group.
Failing to meet increasing expectations from regulators,
legislators, and shareholders around climate change and
broader environmental, social and governance matters
could also potentially lead to exposure to legal and
regulatory risk and potentially adversely impact other
stakeholders’ perceptions.
In mitigation, Admiral operates a three lines of defence
model with strong oversight from Group, entity boards and
committees, to monitor the Group’s compliance with current
and proposed requirements. Admiral also interacts regularly
with regulators and consults with internal and external
subject matter experts to advise on industry best practice.
Assurance of compliance with legal and regulatory
compliance is gained through internal assurance and
monitoring, external reviews and benchmarking exercises.
In addition, the Group undertakes regulatory horizon
scanning and has implemented strengthened governance
of change initiatives in order to identify and implement
regulatory change, whilst also increasing the size and
strength of both Group and local regulatory teams. Admiral
continues to have a strong customer focus and monitors,
manages, and reports on customer outcomes, including
product value assessments, and aims to attract, retain, and
motivate quality employees to deliver superior customer
service and to achieve business objectives.
Credit risk
Impact on the strategic initiatives:
Admiral is primarily exposed to institutional credit risk
in the form of: (a) reinsurance counterparty credit risk; (b)
banking counterparty credit risk; and (c) the credit risk of the
investment portfolios. One or more significant counterparties
suffering financial difficulties could lead to a deterioration
in their credit quality resulting in a downgrade by rating
agencies or ultimate credit default. In addition, Admiral is
exposed to retail credit risk in relation to customer defaults
on Admiral Money’s loan portfolio.
An increase in credit risk detailed above could result in
financial losses, increases in capital requirements and / or
potential liquidity strains (should there be a default event
of any primary cash holding or facility-providing
counterparties). Increased defaults could also impact future
profitability and lending capabilities or a reduction in
capacity in the event of reinsurer default.
To mitigate this risk, the Group reinsurance policy requires
Admiral to contract with reinsurers that are rated ‘A-’ or
above. In addition, major reinsurance contracts are operated
on a funds withheld basis, which substantially reduces credit
risk, as Admiral holds the payments due as collateral.
The credit risk of Admiral’s banking and investment
counterparties is managed by ensuring a well-diversified
portfolio with respective counterparty limits based on their
credit quality. This is supported by frequent monitoring and
the appointment of specialist third-party asset managers.
Such arrangements mean that the average credit quality
of the Group’s bond mandate is high (A+) and that cash
balances and deposits are placed only with highly rated
counterparties. The Group also invests in a range of liquidity
funds, which hold a wide range of short duration, high-
quality securities, and in fixed-income funds holding primarily
investment grade assets. All investments, which are of
elevated credit risk, are monitored via a credit watchlist
by the investment team and the Investment Committee.
Admiral Money’s credit risk appetite is set to ensure that
the risk taken is commensurate with its pricing framework.
During the year, credit performance remained resilient across
all portfolios, evidenced by low and stable arrears rates.
Strategic diversification away from a solely unsecured book
has enhanced the portfolio’s risk characteristics by
increasing collateralised exposure and reducing relative loss
severity. Admiral Money continuously monitors its criteria for
new business pricing and the performance of its portfolio.
Creditworthiness and affordability checks are in place,
with additional support available to vulnerable customers.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Principal risks and uncertainties continued
Admiral Group Plc Annual Report and Accounts 2025
100
2025 trend:
2025 trend:
Catastrophe risk
Impact on the strategic initiatives:
Admiral has a low appetite for net risk exposure caused by
catastrophe events. Admiral is exposed to the risk of higher
losses than anticipated due to the occurrence of man-made
catastrophes or severe natural weather events, such as
large floods, freeze events, subsidence, or windstorm, which
could cause extensive property damage. The risk is likely
to increase in frequency and severity due to climate change.
To mitigate this, Admiral monitors the impact arising from
climate change risks, covering physical risks, as well as other
emerging risks, which may impact catastrophe drivers.
Admiral contributes a levy to the government-backed Flood
Re scheme to protect against large flood losses and
contributes to a similar scheme in Spain.
Admiral also purchases excess of loss reinsurance, which
is designed to mitigate the impact of very large individual
or catastrophe event claims.
Reinsurance risk
Impact on the strategic initiatives:
Admiral has a low appetite for inappropriate or inefficient
use of capital and, therefore, uses proportional co-insurance
and reinsurance across its insurance businesses to optimise
the use of capital, to increase the return on the capital it
does hold, and to mitigate the cost and risk of establishing
new operations.
There is a risk that co- and / or reinsurance cover will not
be available, that it is ineffectively placed, or that it will
only be available at an uneconomical price in the future.
This could lead to a need to raise additional capital to
support an increased underwriting share, and return on
capital might reduce compared to current levels.
Inflationary uncertainty, geopolitical instability, and other
factors could result in a change in reinsurer appetite and
an increased cost of reinsurance protection for insurers.
Climate change and the increased frequency and severity
of extreme weather events, as well as increased chronic
physical risks, could also adversely impact the availability
and cost of reinsurance protection for insurers.
Admiral mitigates the risk to its reinsurance arrangements
by regular monitoring and scenario testing, by ensuring that
it has a diverse range of financially secure partners, and by
staggering contract maturities to prevent a cliff-edge ending
of large reinsurance covers. Admiral continues to enjoy
strong, long-term relationships with several different co- and
reinsurers, some of which are amongst the world’s largest.
Quota share and co-insurance arrangements are contracted
over a number of underwriting years.
Admiral’s Group Risk Committee is responsible for approving
the Group Reinsurance Policy, in addition to helping set
stress and scenario tests, which consider both the
availability and effectiveness of reinsurance in combination
with other adverse events.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Principal risks and uncertainties continued
Admiral Group Plc Annual Report and Accounts 2025
101
2025 trend:
2025 trend:
Strategic risk
Impact on the strategic initiatives:
Admiral is exposed to strategic risk and external factors,
which could lead to the Group being unable to fully meet its
strategic objectives. These include technological changes,
such as needing to build the capabilities in data and AI
required to maintain Admiral’s competitive advantage in its
main UK market.
In particular, Admiral continues to closely monitor the
development and use cases of generative and agentic AI,
including its potential to open new distribution channels
for Admiral products. Against this background, customer
retention becomes ever more critical; Admiral is increasing
its focus on offering great value products with easy
service, whilst delivering best-in-class pricing. Various
enhanced mobility trends will also continue to shape the
industry, such as mobility as a service, EVs, telematics,
embedded insurance, and connected or fully autonomous
vehicles (‘AVs’).
Higher penetration of AVs is expected in the longer term
and has the potential to impact the personal lines motor
insurance markets the Group operates in and Admiral will
remain close to these developments, including through
partnerships such as the existing partnership with Wayve
in the UK.
While Admiral is generally insulated from some of the current
macroeconomic and global instability, risks to the supply
chain and ability to grow remain. Additionally, consolidation
of the UK personal lines market is anticipated to see certain
competitors benefit from economies of scale and gain
access to additional data points, though this could also lead
to a more stable market with more rational players.
Admiral’s strategy generally covers a three-year time horizon
and is refreshed annually with input from management as
well as a wide range of stakeholders. Entity and Group
strategies are aligned with priorities shared top-down and
bottom-up. The Group Board reviews and approves the
Group strategy annually along with the priorities for the
following year, which inform the Group KPIs and objectives
and key results (‘OKRs’); these are tracked and reported on
monthly. Developments, including technological and market
changes, that could impact delivery of the strategy are also
monitored and, where appropriate, acted upon on an
ongoing basis.
In mitigation to the risk of failing to execute the strategy,
Admiral seeks to minimise reliance on any single source
by earning revenue from a range of products, distribution
channels, and territories. Admiral continues to react quickly
to changes in market conditions and customer feedback
on its products and services.
Reputation risk
Impact on the strategic initiatives:
Admiral has a very low appetite for reputation risk and
could be exposed to an erosion in trust from customers,
regulators, employees, shareholders, suppliers, and other
stakeholders, as a result of decisions, associations, actions,
or inactions, as well as accusations of greenwashing.
A negative reputation could have a significant impact on
the share price and brand value and could result in reduced
sales, reduced profitability, difficulty in recruiting and
retaining talent, and increased regulatory focus.
Reputation risk can be a secondary impact caused by
failures in any part of the Group such as operational events.
However, it can also be a primary risk should the firm’s
perceived behaviours or communications not meet
stakeholder expectations.
In mitigation, Admiral monitors metrics that inform
reputational risk analysis for different stakeholder groups,
including customer feedback, social media metrics, staff
surveys, and investor relation reports. The Group also
monitors parliamentarians’ questions and the announcement
of regulation and policy changes. Reputational impact is
considered across key decisions and major internal and
external events, and Admiral has a crisis response and
communications plan that seeks to minimise the reputational
and other impacts of an event once it has materialised.
Moreover, given that reputation risk will often be a secondary
impact of other types of risk event, controls that mitigate the
primary risk also help limit reputation risk.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Principal risks and uncertainties continued
Admiral Group Plc Annual Report and Accounts 2025
102
2025 trend:
2025 trend:
Emerging risks
This year, Admiral took steps to further improve emerging
risk management and better integrate it into routine
risk reporting as a key element of Admiral’s strategic
risk management and an important tool for identifying
business opportunities.
Admiral Group leverages the Cambridge Centre for Risk
Studies’ definition, considering emerging risks to be ‘a new
risk, changing risk, or novel combination of risks, which may
present both opportunities and threats, and for which the
broad impact, likelihood, and timescale to crystallisation
are not yet well understood’. Emerging risk management,
therefore, consists in working to identify these risks, the
potential threats and opportunities they may pose, and to
provide an estimate as to the timescale and magnitude of
their impact. As emerging risks are inherently unpredictable
and difficult to quantify, emerging risk management
processes are designed to provide context and data that
can inform a change in strategy, management behaviour,
ways of working or risk management. This in turn leads
to a stronger and more robust business, which better
delivers on its commitments to customers, employees,
and other stakeholders.
Emerging risks are identified via horizon scanning. This is
conducted by the Group Risk Management Function and
consists of an extensive literature review, consultations,
focus sessions with internal working groups, and interviews
with internal stakeholders, subject matter experts, and
external specialists. The Group Risk Management Function
assesses emerging risks using an internally-developed
framework, which includes qualitative and quantitative
analysis to grade each emerging risk on a scale designed
to be comparable across entities and compatible with the
management of operationalised risks. Evaluation of the
potential impact to Admiral includes consideration of how
the risk may interact with existing principal risks and
uncertainties (‘PR&Us’).
Admiral’s emerging risk radar captures an assessment of
potential impact and time to crystallisation for emerging
risks. It categorises each risk into four broad risk segments:
(a) political, economic and social; (b) legal and regulatory;
(c) technology; and (d) environmental. Plotting emerging
risks in this way can shed light on the macro trends with
common drivers and effects, helping to drive discussions
and identify exposure across product lines.
The visually redesigned radar continues to employ velocity
arrows to highlight risks crystallising more or less quickly
than before. In this instance, velocity arrows on risks
such as (1) ‘climate change transition risks’; (2) ‘geopolitical
instability’; and (10) ‘future of AI’ point towards the centre
of the radar. This visualises ongoing trends in the external
environment, and can provide texture to reporting and
facilitate ‘at-a-glance’ readings of emerging risk
developments.
The highest priority risks are frequently the subject of
targeted analysis provided to, and discussed by, forums
such as the Group Risk Committee. This helps to ensure
management awareness of issues such as severe weather
events or risks to supply chains and products, enabling
more informed decision making, driving the precautionary
deployment of management actions and mitigating
controls, and supporting opportunity analysis and strategic
goal setting.
The conflict in the Middle East is not currently expected to
have a direct impact on Admiral, given that the Group does
not operate in the region and has limited exposure through
its operations and investment portfolios. In addition, whilst
disruption to key trade routes could contribute to broader
supply chain pressures, the impact on the Group’s motor
and household repair networks is currently expected to be
limited given a significant proportion of supplies are either
produced or stored in Europe, and the Group is working
closely with global partners to ensure supply routes remain
unrestricted. However, such risks could increase should the
conflict, or the impact on trade, spread more widely.
Currently the main potential impact relates to heightened
financial market volatility, driven by energy price
movements and wider inflationary pressures, and the
subsequent impact on macro-economic prospects for the
Group’s main markets. The Group is closely monitoring the
situation, any indirect exposures and other risks and
impacts. At the date of this report, no significant changes
to the Group’s principal risks and uncertainties or solvency
position are noted.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Principal risks and uncertainties continued
Admiral Group Plc Annual Report and Accounts 2025
103
Emerging risk radar 2025
Top emerging risks / macro trends (1–15)
Climate change transition risks
Crystallisation
Velocity
Geopolitical instability
<1 year
Towards centre:
approaching crystallisation
Changing consumer expectations
1−2 years
Economic shocks and crises
2−5 years
Away from centre:
becoming less immediate
Domestic social dysfunctions
5+ years
Future workforce risks
Changing claims landscape
Material opportunity
Magnitude
Non-traditional competition
High
New mobility solutions
Medium−high
Future of AI
Medium−low
Disruptive technology
Low
Digital infrastructure failure
Mobility as a service (‘MaaS’)
Climate change physical risks
Pandemics and infectious diseases
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Principal risks and uncertainties continued
Admiral Group Plc Annual Report and Accounts 2025
104
In accordance with provision 31 of
the 2024 UK Corporate Governance
Code, the Directors have assessed
the prospects of the Company over
a three-year period, having
referenced the Group’s business
plan, Own Risk and Solvency
Assessment (‘ORSA’), the capital
plan, AIM analysis, risk strategy,
risk appetite, principal risks and
uncertainties, key risk drivers, and
ongoing risk management activities.
As per provision 31, Admiral considers three years to be
a period of assessment over which it has a reasonable
degree of confidence. Although the Group reviews financial
projections that extend beyond the three-year time horizon
covering the years up to 2030, Admiral considers that there
is an inherent risk and uncertainty in projecting beyond this
three-year period, as the degree of certainty in the impact
of internal and external developments reduces greatly due
to the nature of Admiral’s primary business (one-year
insurance policies). However, these financial projections
contain no information that would cause different
conclusions to be reached over the longer-term viability
of the Group. In addition, the Group considers the long-term
prospects for its markets and products as part of its
strategic planning, and considers liquidity on a rolling basis.
The Board utilises a range of relevant reporting to assess
viability, including five-year financial projections reviewed
twice a year, three-year Standard Formula solvency
projections reviewed at least twice a year, AIM solvency
projections, the ORSA, and a one-year financial budget for
the forthcoming 12 months approved on an annual basis,
in addition to multiple time horizon liquidity projections.
The Group’s business plan projects the Group to report
profits throughout the viability projection period. The Group
Risk Management function has performed a high-level
review and challenge of the business plan to give comfort
over the robustness of the process and output. As part of
the business planning process, several adverse scenarios
were modelled in order to explore the impacts on profits
of various risks to the plan, including:
• In 2026, anticipated price increases in the UK Car market
are delayed, which leads to lower projected growth
for Admiral
• Impact of a major weather event on UK Household
• Impact on investment income of a macroeconomic stress
based on the European Banking Authority 2025 EU-wide
stress test.
Another source of evidence is the alignment of the financial
and business planning process, liquidity assessment and
solvency assessment, referred to within Admiral as the
capital plan. This makes sure that Admiral is appropriately
capitalised and liquid at a fixed point in time as well as over
the future planning time horizon, given Admiral’s principal
risks and uncertainties and a plausible range of potential
stressed conditions. The capital plan is a key consideration
for Group and subsidiary boards in assessing and approving
the business strategy, business / financial plan, capacity
to pay dividends, and key business decisions.
The Group seeks to hold a buffer on top of the regulatory
capital requirement that is sufficient to protect its regulatory
capital position against a range of significant but plausible
potential shocks and stresses. The Board-approved capital
risk appetite includes a lower trigger of intervention for the
solvency ratio of 150%, which is a key criterion for the Board
in assessing viability. Refer to the Strategic Report on page
51 for information on sensitivities to the reported 2025
solvency ratio position. The Group also ensures that any
potential liquidity risks are managed appropriately by
identifying potential risk drivers, setting an appropriate
liquidity buffer for the Group through the Liquidity
Contingency Plan and by holding appropriate liquidity
and solvency buffers at an individual entity level.
At least annually, the Group produces an ORSA Report,
which is another source of evidence used by the Board
to assess viability. The ORSA Report sets out a detailed
consideration of the principal risks and uncertainties facing
the Group and also examines a series of stress and scenario
tests (‘S&STs’) and reverse stress tests (‘RSTs’)1. These are
examined and quantified based on the regulatory capital
basis (which is the Standard Formula method with
adjustments tailored to reflect Admiral’s risk profile) to
understand the potential impact of severe but plausible
events on the Group’s solvency, liquidity, and profitability
over a three-year period from year-end 2024 to year-end
2027. In addition to these Group tests, there are also entity-
specific scenarios, considered of lower materiality to the
Group, that are performed by each subsidiary insurance
entity as part of their ORSA processes. In 2025, a range
of scenarios have been performed, including a standalone
liquidity scenario, and scenarios capturing insurance risk,
market / credit risk, strategic risk, natural catastrophe,
climate change and cyber / operational risk. In total, 14
S&STs and three RSTs have been quantified to understand
the potential impact on the Group’s solvency ratio.
The results of the stress tests also form part of the process
to set the Group's capital risk appetite.
1 Reverse Stress Tests are very remote, extreme, goal-seeking
stresses, which go beyond normal stress testing and are
designed to determine the firm’s breaking point – historically this
has been defined as the point at which Admiral’s solvency ratio
drops below 100%.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Viability statement
Admiral Group Plc Annual Report and Accounts 2025
105
The results provide comfort that Admiral has sufficient
capital and liquidity to withstand the extreme scenarios.
While the 150% lower solvency trigger is breached in
several S&ST instances, once changes in dividend
payments are included, the Solvency Capital Requirement
(‘SCR’) recovers to above the 150% trigger. Similarly for the
respective liquidity scenario, the liquidity ratio recovers post
adjustments to the dividend payments and tactical Group
funding allocations.
The exceptions to this are extreme RSTs, combining several
severe stresses. In the absence of management actions,
these would result in a breach of the 100% minimum
solvency ratio but, as is the intention of the RSTs, they are
considered to be extremely remote outcomes, being well
in excess of 1-in-200-year events. Should such scenarios
actually occur, there would be a number of management
actions that would be called on to alleviate financial
pressures and maintain the solvency and liquidity ratios
above their respective triggers. Depending on the nature,
severity, and timing, these range from modest actions,
e.g. pricing rate changes, to more significant changes,
e.g. raising additional capital through the issuance of new
shares, the sale of a business, or reducing planned
dividend payments.
In addition to the ORSA / Standard Formula scenarios,
a suite of scenarios has been run on an AIM capital basis,
ahead of the forthcoming full application submission to the
PRA. These also give comfort that Admiral is adequately
capitalised, with no scenarios breaching the 150% lower
trigger once changes in dividends are taken into account.
Risk management is an essential part of Admiral’s
operations, and successful risk taking is key to the Group
achieving its business objectives. Risk management is,
therefore, a key consideration when setting the Group’s
strategy, managing performance, and rewarding success.
The Enterprise Risk Management Framework and Group
Risk Management Policy set out Admiral’s approach to risk
management, as well as the governance of risk
management across the Group. The current risks that are
faced by the Group are captured in the risk universe, with
the most notable risks captured in the Group’s principal
risks and uncertainties (page 97)1, and the key risk drivers
impacting Admiral being further discussed in the Group Risk
Committee (‘GRC’) report on page 154.
1 See note 3 to the financial statements for further details on the
management of financial risks.
The Group also considers a range of emerging risks that
could impact the Group to varying degrees in the future,
but which are not yet fully understood, see page 103.
No emerging risks seem sufficiently likely to threaten the
business model at this stage.
Admiral Group’s strategy linked to climate change is
discussed in more detail in the Task Force on Climate-
Related Financial Disclosures on page 76.
Based on the results of all these activities, the Directors
have a reasonable expectation that the Group will be able
to continue in operation and meet its liabilities as they fall
due, for the period up to, and including, December 2028.
Strategic Report approval
The Strategic Report is approved for issue by the Board
of Directors, and signed on behalf of the Board:
Milena Mondini de Focatiis
Group Chief Executive Officer
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Viability statement continued
Admiral Group Plc Annual Report and Accounts 2025
106
Corporate
Governance
108 Chair’s introduction to governance
110
Board of Directors
116
Board leadership and Company purpose
129 Division of responsibilities
134 Nomination and Governance Committee report
147
Audit Committee report
154 Group Risk Committee report
159 Remuneration Committee report
162 Remuneration at a glance
164 Directors’ Remuneration Policy
174
Annual report on remuneration
191
Directors’ report
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
107
Delivering sustainable growth within
an effective governance framework
“Our governance framework is designed
to uphold Admiral’s purpose and nurture
its distinctive culture. By embedding these
principles into every decision we ensure that
our business remains strong, responsible,
and focused on delivering long-term returns.”
Mike Rogers
Group Chair
Dear shareholder,
On behalf of the Board, I am pleased to present
Admiral’s Corporate Governance Report for the
financial year ended 31 December 2025.
This report outlines our governance framework that
underpins effective Board and Committee operations,
fostering robust support and critical challenge to
management and the wider organisation, alongside how
the Board and its Committees have executed their
responsibilities within this framework throughout 2025.
Through this approach, we uphold the highest standards
of governance across the Group, while continuing to deliver
sustainable, long-term value for all stakeholders.
Board and senior management appointments
During 2025, we strengthened the Board with the
appointments of Paola Bonomo and Carlos Selonke
de Souza as Non-Executive Directors. These new
appointments bring varied expertise and reflect our
commitment to ensuring the Board has the right skills
to oversee a rapidly evolving business landscape.
More information on these appointments and what they
bring to the business can be found on pages 119 and 134.
At the executive level, we welcomed a new CEO at Admiral
Money, we appointed senior leaders in data, AI and
technology, including a Group Chief Data Officer and are
in the process of appointing a Group Chief Technology
Officer, to accelerate Admiral’s adoption of advanced
technologies and data-driven decision making.
These appointments underscore our strategic focus
on innovation and resilience in a digital-first world.
People and culture
Admiral’s culture remains the foundation of our success,
and in 2025, the Board continued to play an active role
in overseeing how this culture is nurtured and sustained
across the Group. The Board regularly reviewed updates
on employee engagement, diversity and inclusion initiatives,
and talent development to ensure our values remain
embedded within every aspect of the business. We
monitored progress against cultural objectives, including
maintaining Admiral’s reputation as one of the UK’s best
employers (see pages 58 and 123), and supported
management in fostering an environment where colleagues
feel empowered, respected, and motivated. The Board
remains committed to ensuring that our people strategy
aligns with long-term business goals and continues to
deliver positive outcomes for colleagues and customers
alike. See pages 89 and 91 for more information.
Reward framework
A key governance priority for the year, overseen by the
Board, was the introduction of a new reward framework
for our UK colleagues. This project, designed to ensure
fairness, transparency, and alignment with Admiral’s
purpose and values, involved discussion and challenge
by the Remuneration Committee as well as oversight from
the Board, and was successfully rolled out to approximately
13,000 of our UK colleagues across the Group in October
2025. This framework supports competitive reward,
reinforces performance culture, and ensures compliance
with regulatory expectations. More information is provided
on page 13 and 127.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Chair’s introduction to governance
Admiral Group Plc Annual Report and Accounts 2025
108
Governance at a glance
Skills and experience on the Board (%)
81
83
83
88
60
71
65
71
69
65
69
63
56
73
58
Finance
Risk
Insurance
Executive / Strategic Leadership
Marketing / Retail
M&A
Capital markets
International
Technology / Digital / Data
Operations
Entrepreneurial
Personal finance and consumer credit
Small / Medium Enterprise
Remuneration / People
ESG / Sustainability
Board nationality
Board age
Board ethnicity
Board gender
British 6
40s 3
60s 5
White British or other
White (including White
minority groups) 10
Male 7
Non-British 6
50s 3
70s 1
Female 5
Ethnic minorities 2
ESG and sustainability
ESG considerations remain central to our decision making
and are embedded within our Group Strategy. I am pleased
to report that the Admiral Board’s female representation
throughout the year was between 42% and 45%, exceeding
the 40% target set by the FTSE Women Leaders Review,
and we have met the objectives of the Parker Review on
ethnic diversity at Board level. While these achievements
are significant, we recognise the need to continue building
an inclusive culture and developing a diverse talent pipeline
to support our long-term success. Further details on
our diversity and inclusion initiatives, including targets
for ethnicity within senior management, are provided
on page 141.
On climate and environmental stewardship, the Board
remains committed to meeting our responsibilities and
advancing our sustainability agenda. Our progress and
disclosures are outlined in the SECR and TCFD reports
on pages 74 and 76.
Board and Board Committee effectiveness
In December 2025, the Board completed its annual
evaluation of its own performance and that of its
Committees. In line with our three-year cycle, this review
was conducted by the independent, external company,
Bvalco Ltd. The findings, together with progress against
recommendations from the previous year, are set out on
page 145. This process ensures a clear focus on areas for
development for the Board, its Committees, and individual
Directors, while confirming that they operated effectively
throughout the year to support the long-term success of
the business and its stakeholders.
I would like to thank my fellow Board members for their
insight and support during the year. I look forward to
welcoming shareholders to our 2026 AGM, which will
be held on 29 April 2026. Further details will be provided
in the Notice of Annual General Meeting, which will be sent
or made available on the Company’s website.
Mike Rogers
Chair
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Chair’s introduction to governance continued
Admiral Group Plc Annual Report and Accounts 2025
109
A
B
A
B
C
D
A
B
A
B
Current appointments
• Chair of Experian Plc.
Background and experience
Mike was Group Chief Executive Officer of LV= Group
from 2006 until 2016, during which time he grew the
organisation into a significant player in the life and general
insurance market.
Before that, Mike was with Barclays plc for more than
20 years, holding a number of senior roles, most recently
as Managing Director, UK Retail Banking.
Mike was previously a Non-Executive Director of NatWest
Group plc (where he Chaired its Group Sustainable
Banking Committee and sat on the Group Performance
and Remuneration Committee). He was also previously
a Non-Executive Director of the Association of British
Insurers and Chair of Aegon UK.
Appointed
Appointed as Chair of the Board on 27 April 2023.
Contributions and reasons for appointment
Mike was appointed as Chair of the Board based on his
wide business, insurance and financial services knowledge
and on his ability to impact the strategic direction of
Admiral. Mike has over 30 years of international financial
services experience holding the senior positions described
above. Mike also has a wealth of board experience; he is
currently Chair of Experian plc and stepped down as Non-
Executive Director of NatWest Group plc immediately prior
to joining Admiral. Mike’s recent and relevant background
and experience, and the skills he has developed over his
significant and distinguished career made him the ideal
choice as Chair to lead Admiral Board and business through
the next stage of its evolution.
Committee membership
Audit Committee member
Remuneration Committee member
Group Risk Committee member
Nomination and Governance Committee member
Committee Chair
Senior Independent Director
Current appointments
• Admiral Insurance Company Limited Board member
(an Admiral Group subsidiary)
• Mentor for A-Road, Growth Capital.
Background and experience
Milena joined Admiral in 2007 and was appointed CEO
in January 2021. She has been a member of the leadership
team throughout her time at Admiral, has extensive
experience of the Group’s operations, and has attended and
actively contributed at Board meetings as an observer since
2011. Her previous roles included being Head of UK and
European Insurance and CEO of ConTe.it, Admiral’s Italian
insurance business, which she founded in 2008.
Before joining Admiral, Milena worked as a management
consultant for Bain & Co and Accenture. She holds an MBA
from INSEAD and a degree in Telecommunication
Engineering from Universitá degli Studi di Napoli Federico II.
Appointed
Appointed to the Board in August 2020 and became CEO
on 1 January 2021.
Contributions and reasons for appointment
Milena leads a very strong and experienced management
team and is an effective CEO who continues to build an
even stronger Admiral for the future. In 2023, Milena was
awarded the Best Leader of a Big Company at the 2023
Best Companies Awards.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board of Directors
Admiral Group Plc Annual Report and Accounts 2025
110
Mike Rogers
Chair
Milena Mondini
de Focatiis
Chief Executive Officer
(‘CEO’)
Committee
membership
Current appointments
• Admiral Financial Services Limited Board member
(an Admiral Group subsidiary)
• Admiral Insurance (Gibraltar) Limited Board member
(an Admiral Group subsidiary)
• Admiral Europe Compañia de Seguros, S.A.U.
(an Admiral Group subsidiary)
• Director, Trustee and Chair of the Finance and Audit
Committee of the Wales Millennium Centre
• Finance, Audit and Risk Committee member at the
Football Association of Wales.
Background and experience
Geraint joined Admiral in 2002 and held several senior
finance positions including Head of Finance, before being
promoted to Deputy CFO in January 2012 and CFO in
August 2014. Geraint is responsible for finance, investments
and investor relations. A Fellow of the Institute of Chartered
Accountants in England and Wales, Geraint spent the early
part of his career as an external auditor at Ernst & Young
and KPMG.
Appointed
Appointed in August 2014.
Contributions and reasons for appointment
Geraint has worked for Admiral for 24 years and has been
Group CFO for over 11 years. He has a deep understanding
of the Group’s businesses and strategy, which, together with
his significant financial and accounting experience, and
broad range of skills and commercial expertise, makes him a
valuable contributor both to the Board and the wider Group.
Geraint is also able to use his financial and accounting
experience to provide insight into the Group’s financial
reporting and risk management reporting processes.
Current appointments
• Chair of Admiral Financial Services Limited (Admiral
Money) (an Admiral Group subsidiary)
• Non-Executive Director and Chair of the Audit Committee
and Risk and Compliance Committee at Alpha Bank
London Limited.
Background and experience
Mike was CFO of Metro Bank Plc between 2009 and 2018,
helping lead the business from start-up to listing on the
London Stock Exchange and profitability. He spent seven
years at Capital One Europe in various roles including CFO
Europe, CFO UK and Chief Risk Officer Europe. He has also
served as CFO for Royal Trust Bank, Financial Controller at
Industrial Bank of Japan (London Branch), Director Business
Risk at Barclaycard and was co-founder, Deputy Managing
Director and CFO of Gentra Limited. Mike is a Fellow of the
Institute of Chartered Accountants in England and Wales.
Appointed
Appointed in October 2018.
Contributions and reasons for appointment
Mike brings a depth of knowledge from working at senior
levels across multiple financial services sectors, jurisdictions
and markets. As a result of his extensive financial and
commercial experience, Mike is able to contribute effectively
as a Non-Executive Director, and in his role as a member
of the Audit, Investment and Remuneration Committees.
Through his recent and relevant financial experience, he is
able to effectively challenge management on the financial
reporting and internal control matters that come before the
Audit Committee. Mike demonstrates full commitment to the
responsibilities that go with his Board and Committee roles,
and offers appropriate challenge and guidance in respect
of the matters considered in these forums.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board of Directors continued
Admiral Group Plc Annual Report and Accounts 2025
111
Geraint Jones
Chief Financial Officer
(‘CFO’)
Mike Brierley
Non-Executive Director
Committee
membership
Current appointments
• Non-Executive Director, Senior Independent Director
and Chair of the Sustainability Committee, member of
the Nominations, Remuneration and Risk Committees
Standard Life Plc
• Non-Executive Director, Risk and Audit Committee Chair,
Senior Independent Director and member of the
Remuneration Committee of Miller Insurance Services
LLP and Ben Nevis Clean Co Ltd
• Non-Executive Director, Senior Independent Director,
member of the Audit, Nomination and Remuneration
Committees, Great Portland Estates Plc
• Board member and Risk and Audit Committee Chair
of the TMF Group Ltd
• Trustee and member of the Audit Committee of Wellbeing
of Women, a registered charity
• Adviser to Cytora Limited, an InsureTech owned
by Applied Systems Inc
• Non-Executive Director and member of the Audit and
Compensation Committees of Hamilton Insurance Group
• Governor of Bute House Preparatory School for Girls Ltd.
Background and experience
Karen is the former CEO of Aspen UK. Other senior Aspen
positions included Group Head of Strategy, Corporate
Development, Office of the Group CEO and she was a
member of the Group Executive Committee for 12 years.
Prior to that, she held various corporate finance, M&A and
private equity roles at GE Capital Europe and Stonepoint
Capital having started her career in investment banking
at Baring Brothers and Schroders.
Appointed
Appointed in December 2018.
Contributions and reasons for appointment
Karen has substantial financial services experience and
has a deep understanding of insurance and reinsurance.
Karen also has a strong background in strategic planning
and corporate development, and her experience of sitting
on remuneration committees of other businesses means
that she is well placed to be the Chair of Admiral’s
Remuneration Committee.
Current appointments
• Chair of EUI Limited (an Admiral Group subsidiary).
Background and experience
Andrew was CFO at Domestic & General Group from 2014
to 2017. He spent 14 years at Prudential Plc from 2000 as
Director, Group Finance, Group Chief Risk Officer, and CFO
and Deputy Chief Executive of Prudential UK. He previously
held senior manager roles at Legal & General Group Plc,
where he was Group Financial Controller, and Lloyds Bank
plc. More recently, he served on the board of Vitality Health
and Life for nine years until July 2025 and was Chair of its
Audit Committee. Andrew is a Fellow of the Institute of
Chartered Accountants in England and Wales.
Appointed
Appointed in February 2018.
Contributions and reasons for appointment
Andrew has held a variety of senior roles relating to financial
planning, strategy and risk across UK financial services.
He has a wealth of commercial and financial experience
and provides progressive insights to the matters that come
before the Board. Andrew is a valuable contributor to the
Board and as a member of the Group Risk Committee
(of which he is Chair). Andrew also demonstrates full
commitment to his role as a member of the Group
Nomination and Governance Committee and as Senior
Independent Director.
Committee membership
Audit Committee member
Remuneration Committee member
Group Risk Committee member
Nomination and Governance Committee member
Committee Chair
Senior Independent Director
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board of Directors continued
Admiral Group Plc Annual Report and Accounts 2025
112
Karen Green
Non-Executive Director
Andrew Crossley
Non-Executive Director
Committee
membership
Committee
membership
Current appointments
• Non-Executive Director and member of Remuneration
Committee (joint with both Allfunds entities) of Allfunds
Bank SA and Allfunds Group Plc
• Non-Executive Director and member of Remuneration
& Nominations, Audit & Risk Committees, Chair of the AI
and Technology Security Committees at Daily Mail and
General Trust Plc (‘DMGT’)
• Board Member of Harmsworth Media
• Non-Executive Director and member of Audit Committee,
Human Resources and Remuneration Committee and
Chair of the Sustainability and Innovation Committee
of National Bank of Greece S.A.
• Board member of Cumberland Lodge
• Chair of the Board of Trustees of Web Science Trust
• Advisory role at Future Energy Ventures
• Advisory role at Generation Investment Management
• Adjunct professor in Electronics and Computer Science
at the University of Southampton.
Background and experience
Jayaprakasa (JP) has a wealth of large-scale IT operational
experience gained through his roles as Chief Information
Officer (Dresdner Kleinwort 2001–06) and Managing
Director / Chief Scientist (BT Group 2006–10). JP has also
been Chief Scientist (Salesforce 2010–14) and was Chief
Data Officer and Group Head of Innovation (Deutsche Bank
2015–18). JP is an adviser for Future Energy Ventures one
of the world's largest early-stage climate and energy tech
investors. Additionally, he is an adviser for Generation
Investment Management one of the world's largest growth
stage climate and energy-related investors.
Appointed
Appointed in April 2020.
Contributions and reasons for appointment
JP brings a wide range of IT skills and digital experience,
which helps to complement and enhance the existing skills
around the Board table. He has operated in financial
services for over ten years and understands the challenges
of working in a regulated environment. He is also able
to effectively contribute to the Board debate and
demonstrates full commitment to the role, as well as his
role as a member of the Group Risk Committee.
Current appointments
• Non-Executive Director, Chair of the Audit & Risk
Committee and member of the Nominations Committee
at Marks and Spencer Group Plc
• Non-Executive Director and member of the Group Audit
Committee and Group Remuneration Committee of
St James’s Place Plc (with effect 1 March 2026)
• Chair of GenesisCare UK Limited and Non-Executive
Director of GenesisCare Cayman Holdings
• Director of Gatcombe Court and Highgrove Court
Management Company Limited
• Adviser role at League Inc.
Background and experience
Evelyn was Bupa Group’s CFO between 2012 and 2016,
before becoming Bupa’s Group Chief Executive Officer
from 2016 to 2020. Evelyn has held several senior
leadership roles during her career including Chief
Commercial Officer at Friends Life UK (2011–2012), CFO
at Friends Provident (2009–2010), CFO at Standard Life
Assurance (2006–2008), and CEO at Chase de Vere (2004).
Evelyn has also served as a Non-Executive Director on the
boards of The Children’s Mutual, IFG plc, Bank of Ireland plc
and AJ Bell plc. Evelyn is a qualified actuary and holds an
MBA from London Business School.
Appointed
Appointed in April 2021.
Contributions and reasons for appointment
Evelyn brings valuable general management, finance and
strategy experience from life and health insurance,
internationally. She complements and enhances the range
of skills currently on the Board. Evelyn has held several
leadership positions in financial services organisations and
has the appropriate skills, knowledge and experience to
perform her role as a Non-Executive Director. Through her
recent and relevant financial experience, Evelyn is able to
effectively challenge management on the financial reporting
matters that come before the Audit Committee.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board of Directors continued
Admiral Group Plc Annual Report and Accounts 2025
113
Evelyn Bourke
Non-Executive Director
Jayaprakasa
Rangaswami
Non-Executive Director
Committee
membership
Committee
membership
Current appointments
• None.
Background and experience
Bill has a wealth of insurance, underwriting and marketing
experience gained during his time at US insurer, GEICO,
which he joined in 1984. Whilst at GEICO, Bill held several
Executive appointments, including COO and President and
CEO for all GEICO Insurance Companies, a position he
held from 2018 until he was promoted to Vice Chairman,
GEICO Insurance Companies in 2020. Bill held this role
until he retired from GEICO in December 2020.
Appointed
Appointed in June 2021.
Contributions and reasons for appointment
Bill brings valuable insurance experience and insight on the
US insurance market having held several senior Executive
positions with US insurer, GEICO. Bill contributes and
challenges effectively on the matters that come before the
Board. His extensive US insurance experience and insight
has been of specific value to the Group. Bill does not
currently have any other Executive or Non-Executive
Director commitments outside of the Group that would
impact the time commitment requirements for his roles
as Non-Executive Director and member of the Nomination
and Governance Committee.
Committee membership
Audit Committee member
Remuneration Committee member
Group Risk Committee member
Nomination and Governance Committee member
Committee Chair
Senior Independent Director
Current appointments
• Non-Executive Director, Chair of the Risk Committee,
member of the Audit Committee and Employee
Engagement Director at Beazley plc
• Non-Executive Director of ITX Re.
Background and experience
Fiona has 30 years’ experience in the insurance industry.
Fiona was the CEO of FBD Holdings plc, a listed general
insurer in Ireland, from 2015 to 2020. Prior to that, Fiona
was Director of Credit Institutions and Insurance
Supervision at the Central Bank of Ireland, the Irish
regulator. Fiona spent 17 years of her career with XL group
in various progressively senior finance and general
management positions, in Dublin, London, and Bermuda.
Fiona served eight years on the Board of the Bank of Ireland
(2015–2023) and was the inaugural Chair of the Board
Sustainability Committee. Additionally, Fiona served two
years as Treasurer of the Eastern region of the Society
of St Vincent de Paul in Ireland (2020–2022), which is
a registered charity focused on addressing social justice
issues and alleviating poverty in Ireland. Fiona is a member
of the International Women's Forum. The IWF is a global
women leader's organisation aimed at supporting and
developing women in leadership positions. She is a Fellow
of the Institute of Chartered Accountants in Ireland.
Appointed
Appointed in October 2023.
Contributions and reasons for appointment
Fiona has acquired extensive experience of the insurance
sector during her career in financial services. Fiona has
built a compelling portfolio in the financial services sector,
demonstrating an ability to leverage her financial and
commercial skills to make a useful contribution to Board
discussions. Fiona’s background and experience means
that she has the relevant financial and industry expertise
to be Chair of the Audit Committee. She demonstrates
the commitment required to discharge effectively the
responsibilities attached to this role and to challenge
management on the Group’s financial reporting and risk
management processes.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board of Directors continued
Admiral Group Plc Annual Report and Accounts 2025
114
Fiona Muldoon
Non-Executive Director
Bill Roberts
Non-Executive Director
Committee
membership
Committee
membership
Current appointments
• Non-Executive Director, Vice Chair, Chair of the
Remuneration and Nomination Committee and member
of the Control and Risk Committee of Infrastrutture
Wireless Italiane S.p.A
• Non-Executive Director of FAAC Technologies
• Vice Chair of Italian Angels for Growth.
Background and experience
Paola has a wealth of expertise in digital innovation gained
through several senior leadership roles during her career,
notably Global Marketing Solutions Regional Director for
Southern Europe at Facebook (2015–16); Head of Online
Services, Commercial Operations for Vodafone Italy
(2010–13); Head of Il Sole 24 Ore’s Online Business Unit;
and Senior Director of EU Operations at eBay. Previously,
she was a Partner at McKinsey & Company. Additionally,
she is an experienced angel investor in technology startups
and an adviser to a venture capital fund.
Paola was a Non-Executive Director of AXA Assicurazioni
S.p.A., the Italian operating entity of the AXA Group (2014
to April 2025) and was a member of its Audit, Internal
Control and Risk, and Remuneration Committees.
She was a Non-Executive Director of TIM S.p.A., a leading
telecommunications operator in Italy and Brazil (2018–24)
and served as a member of its Remuneration and
Nomination, Strategies and Sustainability, and Control
and Risk Committees.
Appointed
Appointed in May 2025.
Contributions and reasons for appointment
Paola brings a wide range of strategy, digital and innovation
experience, which complement and enhance the existing
skills around the Board table. Paola has acquired extensive
experience of the insurance sector, as well as Board-level
experience in M&A, carve-outs and asset disposals,
and has demonstrated an ability to leverage her financial
and commercial skills, as well as her understanding
of regulated services, to make a useful contribution
to Board discussions. She brings substantial expertise
in remuneration in an insurance context and has the
appropriate skills, knowledge and experience to perform
her roles as Non-Executive Director and member of the
Remuneration Committee.
Current appointments
• Chief Information Officer of Revolut UK.
Background and experience
Carlos is the current Chief Information Officer for Revolut
UK, a British multinational neobank and fintech company.
Carlos spent seven years at Santander Group from
2014 and 2021 as Head of Core Banking Migration,
Chief Information Technology Officer in the UK and
Chief Information Officer in the US. He has an MBA
in Management from the Massachusetts Institute
of Technology, USA.
Appointed
Appointed in December 2025.
Contributions and reasons for appointment
Carlos is a proactive, business-oriented Senior Level IT
Executive with more than 15 years of experience in
managing Information Technology focused on efficiency,
quality service and operational risk. He’s able to effectively
contribute to the Board debate and demonstrates full
commitment to the role.
Dan Caunt
Group Company Secretary
and General Counsel
Appointed
Appointed in May 2022.
Background and experience
Dan trained at Field Fisher where he qualified into
the IP disputes team in 2005. Dan relocated to
Cardiff in 2008. He spent two years in the IP /
commercial litigation team at Osborne Clarke before
joining Admiral’s in-house legal team in September
2010. Dan became Group Company Secretary
and General Counsel at Admiral in May 2022, and
leads the in-house Group Legal and Company
Secretarial teams within the business. Dan is
Secretary to the Admiral Group Board and all Group
Board Committees.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board of Directors continued
Admiral Group Plc Annual Report and Accounts 2025
115
Carlos Selonke
de Souza
Non-Executive Director
Paola Bonomo
Non-Executive Director
Committee
membership
UK Corporate Governance Code
The UK Corporate Governance Code (2024) (the ‘Code’),
available at frc.org.uk, applied to Admiral throughout
the year ended 31 December 2025.
The Code is built around a set of principles that highlight
the importance of strong corporate governance in driving
the long-term, sustainable success of a business.
By embracing these principles and adhering to the detailed
provisions of the Code, the Board can clearly demonstrate
to Admiral’s stakeholders that an effective, transparent,
and accountable governance framework, aligned with the
Company’s purpose and values, supports the development
of Admiral’s unique culture and enables delivery of the
Group’s strategy within the legal and regulatory environments
in which the Group operates.
Admiral is required to report to shareholders on how it has
applied the principles and whether it has complied with all
provisions of the Code during the year and, where it has not
complied with a provision, the reason for not doing so.
The Board confirms that Admiral has complied with all
of the provisions set out in the Code for the year ended
31 December 2025.
Details on how Admiral has applied the principles,
complied with the provisions set out in the Code, and how
governance operates throughout the Group, have been
summarised throughout this Governance section and
elsewhere in this Annual Report.
The table below cross references where explanations
of Admiral’s application of the Code principles are located.
Although provision 29 of the Code does not come into
effect before accounting periods beginning on, or after,
1 January 2026, the Group Audit Committee has been
monitoring the work to strengthen the Group’s approach
to evidencing internal control effectiveness. Further details
of its work can be found on page 147.
Application of the Code principles
1
Board leadership and Company purpose
Pages
A
Effective Board
110, 130, 145
B
Purpose, values and culture
10, 116
C
Governance framework
107, 129
D
Stakeholder engagement
55, 87, 126
E
Workforce policies and practices
95, 123
2
Division of responsibilities
Pages
F
Board roles and responsibilities
110, 130
G
Independence and division of responsibilities
110, 139
H
External commitments and conflicts of interest
132,140
I
Board resources
133
3
Composition, succession and evaluation
Pages
J
Appointments to the Board
110, 138
K
Board skills, experience and knowledge
110, 140
L
Annual Board evaluation
145
4
Audit, risk and internal control
Pages
M External Auditor and Internal Auditor
151
N
Fair, balanced and understandable review
147, 193
O
Risk management and internal control framework
97, 147, 154
5
Remuneration
Pages
P
Linking remuneration to purpose and strategy
159
Q
Remuneration policy
164
R
Performance outcomes 2025
174
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose
Admiral Group Plc Annual Report and Accounts 2025
116
Principal areas of focus for the Board in 2025
In 2025, the Board held seven scheduled meetings and
several ad hoc Board meetings to deal with significant
matters that were unable to wait until the next scheduled
meeting. A Board planner sets out those items to be
reviewed on an annual basis at scheduled Board meetings
in accordance with the Schedule of Matters Reserved
for the Board. The items below are not exhaustive but
demonstrate some of the key areas of the Board’s focus
during the year ended 31 December 2025.
Strategy and business plan
• Set Group milestones for the year and followed up
on performance against them and the non-financial
performance measures for Executive Directors
• Regular updates around key areas of business strategy
across the Group including progress against current plan
and strategic priorities for the business going forward
• Careful consideration and approval of the sale of the
Group’s US motor insurance business, Elephant – see
more on page 119
• A two-day Board strategy meeting took place in Oxford
where the Group’s business strategy was refreshed
• Consideration of individual business strategies within
the Group presented by divisional CEOs, evaluating how
these tied into the wider Group strategy
• Review of ESG, sustainability and community strategies
and how these are integrated throughout the wider
business strategy
• Brand, change, technology, and digital programme updates.
Operational performance,
financial and risk management
• Review of the operational performance of the business
through regular reports from the CEO and presentations
from CEOs and senior management from across
business divisions
• Regular updates from the CFO on the Group’s financial
performance against strategic objectives, business plans,
capital allocation and budgets, tax planning and
international tax considerations, planning liquidity and
adequacy of solvency thresholds and prudential buffers
considering market conditions, analyst forecasts and
financial and non-financial KPIs
• Review and approval of the half-year and full-year
results and consideration and approval of interim and
final dividends
• Consideration of fair, balanced and understandable
requirements in the half and full-year financial reports,
along with going concern and viability statements
following review by the Audit Committee – see page 193
• Review and approval of the risk management framework,
policy and appetite for the Group through the Risk
Committee – see page 154
• Oversight of internal control environment and framework
through updates from Audit Committee and Risk
Committee including Cyber Risk, ORSA, Solvency II and
Group Governance framework – see pages 147 and 154
• An update on share scheme dilution management
• An update on cyber incidents in the external environment
• Review and approval of Capital Return Policy / Share
Buyback Programme – see page 119.
Culture and internal stakeholders
• Consideration of how the Group purpose and values
are aligned
• Review of how Admiral’s culture continued to develop
and embed including analysis of feedback from Great
Place To Work® (‘GPTW’) survey results, working groups,
culture scorecard and Diversity and Inclusion Policy
review – see more on pages 125 and 141
• Consideration of stakeholder map and respective
stakeholder updates throughout the year, including
engagement mechanisms – see more on pages 58, 87
and 127
• Presentations and discussion from the Chairs of the
UK and Overseas Employee Consultation Groups –
see page 127
• Updates on the implementation of the Group reward
strategy – see page 122
• Review and approval of the award of shares to
employees under the Group’s Share Incentive Plan
• Talent management strategy throughout the Group
• Review of Investor Relations reports
• Group health and safety updates.
Society, environment and sustainability
• Oversight of Group ESG and sustainability strategy
to ensure alignment with the Group’s wider strategic
objectives and culture – see page 55
• Updates on environmental sustainability and strategic
priorities, given the Group’s environmental impact, work
required to address environmental risk and the
expectations of the Group’s stakeholders – see page 55
• Updates on progress against sustainability targets
– see page 55
• Updates on suppliers and partners and the communities
within which Admiral operates – see pages 94 and 92
• Updates on volunteering and charity propositions within
the Group as part of a wider community outreach
strategy including sponsorship of community events,
charitable giving, volunteering and fundraising
– see page 61
• An update on customer outcomes being delivered across
the Group and how the Duty has been further embedded
– see page 91.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
117
Governance and Regulatory
• Approval of the appointments of Paola Bonomo and
Carlos Selonke de Souza as Non-Executive Directors to
the Group Board, on recommendation of the Nomination
and Governance Committee
• Regular reports from the Chairs of the Audit,
Risk, Nomination and Governance, and the
Remuneration Committees
• Regular updates on regulatory developments, including
the FCA’s investigations into total loss, premium finance
and ancillaries in the motor insurance market
• Review and approval of the target operating model
and legal structure of the European businesses
• The fostering of good relations and open and
constructive dialogue with regulators
• Discussions around conclusions of the Board evaluation
findings and agreed areas of focus and Board objectives
for 2025
• Consideration of skills, experience and time requirements
for Directors and recommendations to shareholders
regarding their reappointment
• Discussions around diversity, equity and inclusion,
including the diversity targets set for senior management,
in accordance with the Parker Review and FTSE Women
Leaders Review, as well as the implications for
succession planning
• Review and approval of Group policies including Board
members’ potential Conflicts of Interest, Modern Slavery
and Anti-Bribery considerations and approval of Admiral’s
Modern Slavery Statement
• Considered and approved the Notice of 2025 Annual
General Meeting (‘AGM’) for issue to shareholders
• Reviewed matters reserved for the Board and the
Committees’ respective Terms of Reference.
Principal areas of focus for the Board in 2026
• Continued focus on improvements to customer
experience, including claims service levels, customer
satisfaction and loyalty
• Ensuring there remains a deep understanding across the
business of the importance of the FCA’s Consumer Duty
• Continued progress on the UK multi-product
advancement strategy, including brand strategy, and
implementation of technical and data enablers
• Oversight of the development of a Group-wide artificial
intelligence (‘AI’) and data strategy, measures to track
progress, an appropriate AI governance framework,
and the onboarding of new senior roles in these fields
• Oversight of progress of the Group’s diversification
strategy to ensure long-term resilience within the
business, while strengthening and complementing
existing customer propositions
• Oversight of the review of Admiral’s capital return policy
• Continued focus on the Admiral internal model,
supporting a planned full regulatory application
• Continued focus on Board composition and skills,
in conjunction with the Nomination and Governance
Committee’s work to review succession planning in light
of the vacancies arising on the Board in 2027
• Oversight of the Group CFO transition plan
• Ensure diversity and inclusion objectives are embedded
throughout the Group and continued progress is made
• Continued deepening of the Board’s understanding
of external risk factors.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
118
s172 Principal decisions
Our section 172 statement,
set out on page 87, highlights how
the Board considers those matters
set out under section 172 of the
Companies Act 2006. On the pages
that follow are examples of some of
the key discussions and decisions
taken by the Board during the year,
along with details around how those
considerations set out under section
172 were taken into account.
Disposal of US motor insurance business
As announced on 22 April 2025, Admiral Group entered
into an agreement to sell its US motor insurance business
(Elephant Insurance Company and Elephant Insurance
Services (‘Elephant’)) to J.C. Flowers, a global private
investment firm dedicated to investing in the financial
services industry. The deal was for an undisclosed cash
consideration and was subject to regulatory approval.
Headquartered in Richmond, Virginia, Elephant offers
US customers simple and affordable car insurance.
The company’s tools allow customers to find the best
protection for their needs and budget, with tools that
are easy to use and understand.
In the lead up to the agreement to sell Elephant, the Group
Board had oversight, including multiple discussions and
updates, of the following during Group Board meetings:
• Elephant’s strategy and financial performance to confirm
profitability and capital independence
• Negotiations and due diligence updates
• The governance process and risk management
to ensure that good customer outcomes would
be maintained across the Group
• The process to select and appoint financial advisers,
Bank of America
• Analysis of the strategic options available
• The impact of all elements of the decision on key
stakeholders, for example:
– The decision to sell the business as a whole, going
concern benefited Elephant employees and
customers, rather than selling assets separately
– Allowing the business to be self-sustaining outside
of the Admiral Group was the best decision for
Elephant employees and customers
– No further capital injections from Admiral
– Opting to sell to another buyer could have led to a
higher risk of Elephant not being supported longer term
– On shareholders, who had been engaged and
supported the sale
• Work to engage the Virginian regulator.
The Group Board balanced the interests of a range of
Group and Elephant stakeholders in reaching the final
decision to divest.
As announced, the sale of Elephant to J.C. Flowers
completed on 31 December 2025.
Key s172 criteria considered:
Relevant stakeholders considered:
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
119
Key
Board considerations as defined under s172
Long-term impact
Interests of employees
Fostering business relationships
Impact on community and environment
Maintaining reputation for high standards of business
Treating stakeholders fairly
Stakeholders
Customer
Shareholders
People
Partners / Suppliers
Communities
Appointment of Paola Bonomo
Appointment of Carlos Selonke de Souza
As announced on 13 May 2025, Paola Bonomo was
appointed to the Group Board as a Non-Executive Director
(‘NED’) and a member of the Remuneration Committee with
effect from 12 May 2025.
The Nomination and Governance Committee reviewed NED
succession in the context of a vacancy on the Board arising
in June 2025 and established that, following the departure
of Justine Roberts at the end of her tenure, the Board
would need a candidate that ideally:
• Is, or recently was, a business leader
• Had a strong focus on customer centricity and an
understanding of how Admiral could continue to improve
customer experience, drive retention and achieve
sustainable growth
• Was curious, able to support the Group’s ongoing growth
and innovation initiatives, which continue to inform
Admiral’s culture
• Had M&A experience
• Was familiar with how the digital landscape and new
technologies were impacting regulated industries
• Could contribute their insights and perspectives
on European markets.
External consultancy, Spencer Stuart, was engaged
in the search and following interviews, Paola was
identified as the most suitable candidate with European,
remuneration and data experience. Therefore, the
Nomination and Governance Committee recommended
her appointment to the Group Board on the basis that
she was a strong fit for this role.
Further information is detailed in Paola’s biography
on page 115.
On 10 December 2025, Carlos Selonke de Souza was
announced as having been appointed as a Non-Executive
Director (‘NED’) of the Group Board with immediate effect.
The Nomination and Governance Committee continued
to review the composition of the Group Board, following
Paola Bonomo’s appointment and the review of the Group
Strategy in October 2025, deciding that it would be
beneficial to seek an additional member of the Group Board
to bolster its skills and experience.
External consultancy, Egon Zehnder, was engaged to lead
the search for a NED candidate with the following skills
and attributes:
• A robust background in either the insurance sector
or broader retail financial services
• Significant experience in technology was essential,
particularly in senior roles such as Chief Technology
Officer or Chief Information Officer, or in comparable
senior leadership positions focused on data and digital
leadership
• A genuine affinity to Admiral’s customer-centric
approach
• A strong cultural fit with the Admiral Group Board,
with the ability to thrive in an informal, dynamic
environment and embrace a culture that prioritises
direct communication and close collaboration.
Following interviews, Carlos Selonke de Souza was
identified as the preferred candidate for the additional role,
given his experience in consumer-facing brands and
managing information technology with a focus on
efficiency, quality service and operational risk.
Further information is detailed in Carlos’ biography
on page 115.
Key s172 criteria considered:
Key s172 criteria considered:
Relevant stakeholders considered:
Relevant stakeholders considered:
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
120
Decision to appoint Rachel Lewis as Group
CFO (with effect from 1 July 2026)
Appointment of Emma Powell
as CEO of Admiral Money
As announced on 12 January 2026, the Group’s current
CFO, Geraint Jones, has decided to retire from his role
and transition to a part-time role within the Group from
July 2026. Rachel Lewis, who is currently CFO and Director
of the EUI Limited Board, will be appointed Group CFO
and join the Admiral Group Board as an Executive Director
on 1 July 2026, subject to regulatory approval.
During 2025, the Group Nomination and Governance
Committee had oversight of an external recruitment
process, as well as internal succession plans, to identify
a suitable successor for the Group CFO. As part of this
process, the Group Nomination and Governance
Committee considered the following:
• The success profile of the Group CFO role
• The appointment of an external search consultancy
• The succession plan for the role and a robust
assessment of potential internal candidates
• A market analysis summary identifying potential external
candidates
• The interview process and those that should be involved
• A critical review of the experience, competencies,
cultural fit, potential risks, and development needs
of shortlisted candidates against the Group CFO
success profile
• The impact on, and desired composition of, the Board.
The Group Nomination and Governance Committee
approved the recommendation to appoint Rachel as Group
CFO with effect from 1 July 2026, subject to regulatory
approval, on the basis that she is a strong fit for the role,
has a strong history with Admiral and an established
expertise in insurance accounting, as well as having a clear
understanding of how the role must expand and evolve.
The Board’s decision to appoint Rachel, demonstrates
Admiral’s philosophy of developing internal talent.
The Group Nomination and Governance Committee will
continue to oversee the impact of this transition during
2026, including on regulatory accountabilities and Senior
Management Function changes, and the consequential
subsidiary board changes.
In accordance with its Terms of Reference, the Group
Nomination and Governance Committee is responsible
for approving appointments to subsidiary boards, as well
as periodically considering the Group’s succession plans
for such key roles, on behalf of the Group Board.
In order to arrive at the decision to approve the
appointment of Emma Powell as CEO of Admiral Money,
the Group Nomination and Governance Committee
considered the following:
• The success profile of the Admiral Money CEO role
• The succession plan for the Admiral Money CEO
• Whether a search for external candidates was necessary
• Emma’s biography, including a critical review of her
experience and competencies mapped against the
Admiral Money CEO success profile, and her
development needs
• 360 feedback from Emma’s current and former
managers, peers, direct reports, members of the EUI
Board and other key stakeholders (both internal
and external)
• The impact on the composition of the Admiral Money
Board, noting that this was limited given Emma was
already a member of this Board
• The impact of regulatory accountabilities and Senior
Management Function changes and applications
required.
The Group Nomination and Governance Committee
approved the recommendation to appoint Emma as CEO
of Admiral Money on the basis that she was a strong fit
for the role, already well regarded by the Admiral Money
Board and management, champions the customer and
strong customer outcomes, considers all perspectives
and stakeholders, and a very strong cultural fit.
Key s172 criteria considered:
Key s172 criteria considered:
Relevant stakeholders considered:
Relevant stakeholders considered:
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
121
Capital Return Policy /
Share Buyback Programme
Group Reward Transformation Project
As part of its commitment to delivering sustainable, long-
term value to shareholders, the Board approved a change
to Admiral’s capital return policy in December 2025.
This change, announced in March 2026, will mean that
surplus capital will be returned to shareholders either
through special dividend or through buying back and
cancelling shares. Admiral expects to confirm returns
of surplus capital via buy back at both interim and final
2026 results announcements.
Subject to regulatory approval the buy backs will commence
in 2026 and will involve open market purchases of the
Company’s ordinary shares on the London Stock Exchange.
Throughout 2025, the Board evaluated a range of options
for returning capital to shareholders. After careful
consideration, the Board determined that introducing the
option to buy back shares to return surplus capital was
an effective way to enhance shareholder value, provide
flexibility in capital management, demonstrate confidence
in Admiral’s long-term prospects and strong capital position,
and optimise its capital structure, whilst maintaining
regulatory solvency requirements and supporting future
growth opportunities.
The decision to change the capital return policy was informed
by extensive engagement with stakeholders including:
• Shareholders: In summer 2025, Admiral consulted its
top 30 shareholders, representing approximately 70%
of the register. Feedback indicated broad support for
introducing a buyback programme alongside dividends
• Employees: The Board assessed the potential impact
on employees, ensuring that the policy change would
not compromise investment in talent, reward structure,
or growth initiatives
• Regulators: Admiral engaged proactively with regulators
to confirm that the programme aligned with prudential
requirements and maintained a robust capital position.
Special dividends or buy backs will only use surplus
capital and this approach is consistent with Admiral’s
ESG commitments. By maintaining a strong capital base,
a commitment to disciplined capital management and
prioritising sustainable growth, the Company ensures
resilience in a changing economic and regulatory
environment. The decision to combine dividends
with buy backs reflects responsible capital allocation,
supporting long-term value creation for shareholders,
while safeguarding investment in innovation, customer
service, and employee development.
The Board and Remuneration Committee provided strong
governance and strategic oversight throughout the Group
Reward Transformation Project, which aimed to modernise
and harmonise pay structures for all UK colleagues through
the introduction of a new remuneration framework across
the Group. This project was a significant initiative, aligning
reward practices with the Group’s long-term objectives
as it grows into a diversified multinational business, while
addressing market competitiveness, employee
expectations and regulatory requirements.
Board members actively engaged with employees through
this process by attending Employee Consultation Groups
(‘ECG’) during the design and consultation phase, ensuring
that a wide range of stakeholder perspectives were heard
and incorporated.
Direct feedback from these ECG sessions, alongside Board
and Board Committee discussions and benchmarking data,
influenced refinements to the proposed framework, including
clearer job families and enhanced communication tools.
Oversight was maintained through Board and Board
Committee papers, governance reports, and updates from
the Group Reward Steering Committee, which monitored
milestones and emerging risks.
Key s172 criteria considered:
Key s172 criteria considered:
Relevant stakeholders considered:
Relevant stakeholders considered:
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
122
Culture
At Admiral, we regard culture as the essence of our
business – defining how we act, what differentiates us,
our character and personality, and how we engage with
our employees, customers and other key stakeholders.
The Board sets the tone from the top, leading by example,
and embedding behaviours that cascade through the
Company, creating a culture lived daily by colleagues
and recognised by our wider stakeholders.
We believe Admiral’s culture is truly distinctive, as reflected
through this report. While it is essential that our culture
continues to evolve and adapt in response to a changing
business environment, it is equally critical that the elements,
which represent our competitive advantage and have
underpinned our success to date, are safeguarded and
preserved, particularly during periods of ongoing change.
At Admiral we implement our purpose through our unique
workplace culture. This is reinforced by our values – the
‘Four Pillars of our Culture’:
78%
of employees believe that
everyone has the opportunity
to get special recognition.
After at least one year's service,
all colleagues in the business
will receive up to the equivalent
of £3,600 of shares in Admiral
during the year.
82%
of employees perceive
Admiral as being a fun place
to work.
95%
of employees believe
Admiral is a diverse and
inclusive employer.
90%
of employees believe that
their managers share important
knowledge and information
with them.
Fun
A big part of working at
Admiral Group, and one
of the reasons it’s a great
place to work, is having fun.
We want our people to
feel proud to be part of the
Group and look forward
to working within a team
where they can celebrate
who they are and the
value they bring each
and every day.
What makes Admiral a
fun place to work can be
found throughout our
Strategic Report and in
our Governance Report
on pages 14 and 107.
Communication
All our colleagues play
an important role in our
businesses delivering
against our purpose
and strategy so we
encourage transparent
communication at every
level. We have an open-
floor office structure and
encourage feedback
across the Group. Further
information can be found
on pages 58 and 89.
Equality
Our commitment to our
people is to ensure an
inclusive and supportive
workplace where everyone
feels that they can succeed.
We continuously evolve our
proposition and policies so
that we can meet the needs
of our people and empower
colleagues to share views
to inform our approach.
Further information
can be found in our
Sustainability Report on
page 59 and the Nomination
and Governance Committee
Report on page 141.
Recognition and reward
Recognising our colleague’s
dedication to our customers
is crucial and our share
ownership scheme is just
one of the ways that we thank
our people. We are proud
to offer colleagues the
opportunity to own part
of the Group and to benefit
financially from the hard
work throughout the year.
The Group’s approach to
investing in, and rewarding,
its workforce can be found
on page 164.
1 2025 Great Place to Work® survey results.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
123
1
1
1
1
Aligning our culture with our purpose,
values, strategy, policies, and practices
Admiral’s culture is closely aligned to our purpose to ‘Help
more people to look after their future. Always striving for
better, together’. Delivering excellent products and services
to customers, while caring for our people and other key
stakeholders, remains central to everything we do.
Our Four Pillars of Culture are embedded within our training,
communications, policies, and day-to-day operations.
Guiding and promoting culture
The Board is responsible for acting with integrity, leading by
example and fostering the desired culture. This is achieved
through its governance framework, decision-making
processes and day-to-day interactions. We also ensure
that any policies that apply to Directors are consistent with
those in place for the wider workforce.
A range of initiatives are undertaken throughout the year
to promote Admiral’s unique culture, examples of which
are outlined below:
Admiral has been recognised in the
top 2 UK Best Workplaces by ‘Great
Places to Work®’ a global authority on
workplace culture.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
124
Initiatives that shape Admiral’s culture
Compensation and
promotion structure
A compensation and promotion structure based on meritocracy and a rounded employee
benefit offering.
Career development
Excellent opportunities for career development throughout the business leading to high retention
of employees.
Training opportunities Encouraging use of training opportunities for work and personal development.
Diversity and
inclusion
Diversity and inclusion working groups and initiatives
Leadership visibility
Leadership visibility is strengthened through Live Q&As, monthly CEO video updates, Ask Milena
mailbox, in-person and virtual meet-and-greets, and Friendly Forums.
Admiral’s Got Talent
Admiral’s Got Talent was a Group-wide competition where local heats across countries selected
finalists, through audience votes and judges’ scores, to compete in the grand final in Cardiff.
Multifest
Multifest was our biannual celebration inspired by our multi-cover insurance product. 4,000
colleagues and guests came together at Principality Stadium in 2025 for a four seasons
themed festival.
Department and team
away days
Department and team away days including time allocated for Impact Days to give back
to the community.
Workshops
Employee induction workshops focusing on Admiral’s culture.
Top 10
The Group Top 10 competition sees departments present on a new culture-focused question
each year to a panel of senior managers, competing to be named the best department.
Manager awards
Annual manager awards, both locally and Group-wide.
Flexible working
Flexible working empowers teams to design their own optimal working blueprint, self-organise
effectively, and still come together for key shared moments.
‘People Who like…’
‘People Who like…’ is Admiral’s fun engagement initiative that helps colleagues discover new
interests, learn new skills, connect meaningfully, and enjoy tailored activities, from Zumba to candle
making, while giving out over £14,000 in prizes.
Long service awards
Long service awards since 1999. Whether it’s five years or thirty, we mark each milestone
with thoughtful and personalised events that show how much we value people.
Health and
wellbeing initiatives
Health and wellbeing is supported through initiatives encouraging colleagues to seek help, a weekly
health and wellbeing bulletin, online yoga and meditation, running clubs, outdoor day, webinars on
a range of financial wellbeing benefits.
Reward and
recognition
Local reward and recognition programmes.
Live feedback
Live feedback in the moment and throughout the year, enabling colleagues to reflect in their
quarterly reviews.
Regular Group-wide
updates
Regular Group-wide updates on business performance and matters of importance from Executive
Directors and senior management.
How the Board monitors and assesses culture
People and culture metrics
The key people and culture metrics continue to provide
valuable insight, supporting management and the Board
in assessing the overall health of the Group’s culture. They
also support the identification of any trends in workforce
and cultural evolution, including potential risks that could
affect the delivery and support of the Group’s strategy.
The Group regards the following people and culture
metrics, derived from the annual Great Place To Work®
(‘GPTW’) survey and Admiral’s internal pulse survey as some
of the key indicators of Admiral’s cultural health. The GPTW
survey is an independent, external survey that aggregates
anonymised responses from all colleagues to produce
overall and departmental results.
Scores relating to culture remain consistently high across
the Group, reflecting the strength and impact of Admiral’s
culture. During the year, Admiral was recognised
in the Top 2 UK Best Workplaces by GPTW, a global
authority on workplace culture.
The Board received an update on the people and culture
metrics during the year, which focused on several key
metrics across the Group, including recruitment,
engagement, productivity, absence and attrition trends,
which are considered to be closely associated with cultural
risks, particularly in the context of a hybrid working model.
Index
Score
GPTW Trust Index:
The Trust Index comprises 60 questions from the GPTW
survey, which are stable over time, benchmarked against
the best companies in each market, and highly representative
of the overall people sentiment of a positive culture.
83%
2024: 86%
GPTW Engagement Index:
The Engagement Index is a specific measure comprising
nine questions from the GPTW survey relating to willingness
to go the extra mile, intention to stay with the business and
likelihood of being an employer brand promoter. It is also
benchmarked and stable over time, and has a proven
correlation with business performance. According to the
GPTW institute research, the drivers that are most
correlated to higher engagement scores are: (i) teamwork;
(ii) career development; (iii) values and ethics; (iv)
empowerment and accountability; and (v) innovation.
81%
2024: 84%
GPTW Leadership Effectiveness Index:
The Leadership Effectiveness Index is a specific measure
comprising four questions from the GPTW survey relating
to employee perception of management and their
competency at running the business.
84%
2024: 87%
Pulse surveys:
Based on colleague feedback about survey fatigue,
the Pulse survey frequency was adjusted to once a year
in June for the entire Group.
92%
“I believe Admiral Group is a diverse and
inclusive employer.”
89%
“My manager shares important knowledge
and information with me.”
87%
“I understand how my role brings to life
Admiral Group's purpose to; help more
people to look after their future. Always
striving for better, together.”
84%
“In my opinion, the Admiral Group is truly
customer focused.”
Other people metrics:
Recruitment, gender balance, headcount, absence, attrition.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
125
Other tools to monitor the embedding of culture
In addition to workforce participation in surveys and the
annual GPTW survey, there are several other mechanisms
used by the Group and the Board to monitor and assess
culture. For example, ‘Meet the Manager’ meetings; the
‘Ask Milena’ scheme; regular online manager chats; ECG
and IECG meetings (see page 127); mandatory training
completion rates; health and safety data; whistleblowing
and grievances; and customer net promoter score (‘NPS’).
All are felt to be valuable methods of capturing the mood
of our people and to gauge the health of our culture.
The Board Committees play an important role in supporting
the Board in monitoring and assessing culture through their
respective responsibilities, as illustrated below:
• Nomination and Governance Committee – Oversees
succession and talent management strategies, diversity
and inclusion policies and progress against targets to
ensure alignment with the Group’s strategy and values
• Remuneration Committee – Monitors the alignment
of workforce remuneration policies with culture and
strategy, and reviews risk events reported by the Risk
Committee under the malus and clawback framework
• Audit Committee – Oversees whistleblowing
arrangements, Internal Audit, and adherence to Group
Minimum Standards
• Risk Committee – Considers risk events that may impact
remuneration under malus and clawback provisions,
as well as financial crime and misconduct risks.
In addition to receiving updates on Group culture at Board
meetings, Directors use other mechanisms to assess and
monitor culture, including attending meetings of the UK
ECG, observing subsidiary board sessions, and conducting
site visits across the Group’s entities. These visits provide
opportunities for Directors to engage with a cross-section
of colleagues and gain first-hand insight into the prevailing
culture. In 2025, the Board Chair and several other Non-
Executive Directors visited the L’olivier office in Paris, the
ConTe office in Rome, and Admiral India for meetings with
the Boards, management team and employees.
Whistleblowing
The Board has established arrangements that enable
employees to raise concerns confidentially and, where
necessary, anonymously. During the year, the Board
received an update from management on the Group’s
whistleblowing framework. The Audit Committee, chaired
by the Group’s Whistleblowing Champion, Fiona Muldoon,
was satisfied that the arrangements were appropriate for
independent internal investigation of matters raised and
supported an ethical culture where colleagues feel safe
to speak up. In addition, the Board is informed, on an
exceptions basis, of reports arising from issues raised under
the Policy. The Audit Committee receives more frequent
updates in respect of whistleblowing matters. See page 153
for further information.
Stakeholder engagement
The Board prioritised effective stakeholder engagement
throughout the year, ensuring their interests informed
decision making. Full details are in the Strategic Report on
page 87, outlining how the Board has discharged its duties
under s172(1) of the Companies Act 2006, and information
on the ECG and IECG workforce advisory panels is adjacent
(see page 127).
Shareholders
Regular communication with institutional shareholders and
market participants remains essential. Open dialogue helps
shareholders understand the Group’s strategy, objectives,
governance, and performance. The Investor Relations (‘IR’)
team manages day-to-day market communications, with
meetings, briefings, roadshows, and conferences, and
teach-in sessions held in-person and virtually by senior
management and IR. Investor visits to Cardiff generally occur
twice yearly, enabling engagement with senior leaders.
The Board receives IR reports summarising market
feedback, share price performance, shareholder register
changes, and analyst forecasts.
The Senior Independent Director is available to investors
who have any issues or concerns, and in cases where
contact with the Chair, Chief Executive Officer and Chief
Financial Officer has either failed to resolve their concerns,
or where such contact is inappropriate. No such concerns
have been raised in the year under review.
All shareholders are invited to the Company’s Annual
General Meeting (‘AGM’) in person. The 2025 AGM was held
on 9 May 2025 with the required quorum. Shareholders
were able to vote on the annual business and encouraged
to submit questions to the Board in advance of the AGM.
The Chairs of the Audit, Remuneration, Nomination and
Governance, and Risk Committees attend the AGM along
with the other Directors and are available to answer
shareholders’ questions on the activities of the Committees
they chair. Shareholders are also invited to ask questions
during the meeting and have an opportunity to meet with
Directors after the formal business of the meeting has been
concluded. Proxy voting details, including votes withheld,
are published on the Company’s website.
The Group’s corporate website (admiralgroup.co.uk)
provides further investor information. The major
shareholders of the Company are listed in the Directors’
Report on page 192.
Regulators
Regular communication with the Financial Conduct
Authority (‘FCA’) and Prudential Regulation Authority (‘PRA’)
was maintained throughout the year. Additionally, the PRA
joined the Board meeting remotely in January 2025 to
discuss its periodic summary meeting letter. The Board
is also kept up to date with the regular communications
between the Admiral Insurance (Gibraltar) Limited Board
and the Gibraltar Financial Services Commission, as well as
contact between the Group’s other insurance subsidiaries
and respective regulators.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
126
Employee Consultation Group
Purpose
The Board recognises the importance of engaging with its
workforce and does so through a mix of formal and informal
channels. To support two-way communication and ensure
the views of the workforce are heard, the Board established
a UK Employee Consultation Group (‘ECG’) in 2019,
strengthening and formalising its existing employee
engagement arrangements. For the purposes of Provision
5 of the Code, the ECG is a formal workforce advisory panel.
Membership and attendance
Membership of the UK ECG comprises elected colleague
representatives and its remit is to provide a forum for a safe
space to raise issues and share ideas. Members are elected
through a democratic process and receive an induction
to clarify both the ECG’s purpose and their responsibilities.
Non-Executive Directors are invited to attend ECG meetings
on a rotational basis and report to the Board on discussions
and agreed actions. This approach ensures that each Non-
Executive Director can engage directly with the workforce
and hear first-hand the issues affecting colleagues.
To maintain a two-way mechanism, Non-Executive
Directors share insights from ECG meetings at subsequent
Board meetings, and the ECG Chair is regularly invited to
update the Board on matters raised. ECG meeting minutes
are published on the intranet and Non-Executive Directors
also update the ECG on recent Board discussions.
Meeting
Main presentations and
key topics discussed
Outcome / impact
January
2025
Reward transformation
Discussions highlighted the critical part ECG representatives will play before, during
and after the review. The need for a Reward Framework was explained; reasons
included governance and transparency, responding to GPTW feedback, to offer clear
direction to colleagues, consistency, and to support talent retention.
May
2025
CEO UK Insurance
Update
Alistair Hargreaves provided an update on UK Insurance business performance,
emphasising the importance of customer retention. An explanation of the key
business objectives and metrics was provided, along with a summary of initiatives
to retain data scientists.
Single-sex and gender-
neutral facilities
The ECG was updated on the steps Admiral was taking to ensure all colleagues
felt safe and supported.
Pensions
Mercer gave a presentation to the ECG on Admiral’s current scheme including
structure, investment options, benefits of Salary Exchange and accessing pension
funds for retirement, as well as the importance of saving for retirement.
Facilities
The Facilities team shared the latest overview of proposed changes to parking
facilities in response to feedback received via the ECG representatives. The ECG
was given the opportunity to challenge, suggest and approve proposals.
July
2025
Pule survey results
The Engagement Manager shared annual Pulse Survey results and discussed
comparisons to the GPTW survey results, the increased response rate and the
strong overall score. A detailed breakdown of scoring was provided and it was
noted that the new ‘Customer Promise’ concept was being incorporated into future
surveys. The ECG was encouraged to support progress by delivering results locally
and feeding back any concerns or support needed.
Reward framework
follow up
This topic was revisited to continue to engage with the ECG. A summary of the
next steps was provided, which included ECG training sessions to address ongoing
concerns / questions around how colleagues would be impacted.
November
2025
Health and wellbeing
The ECG discussed the health and wellbeing support available, new initiatives
and responded to feedback that had been provided.
Reward framework
follow up
The ECG discussed phase 2 of the Reward transformation project and provided
feedback and challenge.
2026 OKRs
The ECG was provided with a high level view of the Objectives and Key Results
(OKRs) for 2026 for discussion.
The Board remains confident that the ECG has been, and continues to be, an effective mechanism for engaging with the
workforce. The Board is committed to supporting the ongoing development of the ECG as a formal and effective workforce
advisory panel and will maintain regular interaction between the Board and the ECG.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
127
International Employee Consultation Group (‘IECG’)
The IECG was formed in 2022 and meetings are chaired by AECS Board members, on rotation. There were three IECG
meetings in 2025, which were attended by candidates chosen on a voluntary basis, with agendas focusing on employee
interests, questions and proposals.
Entity / Meeting
Topics discussed
Outcome / Impact
ConTe –
May 2025
Sustainability and
environmental impact
The IECG discussed that sustainability was a key focus of the Group, recognised
ongoing initiatives and highlighted the strategic opportunities presented by electric
mobility and evolving green policies.
Technology and
artificial intelligence
Discussions emphasised the integration of artificial intelligence as a key lever for
accelerating innovation. Data protection was also identified as a key priority, with
recognition of the need for sustained investment to mitigate increasing cyber
threats.
Strategic decision
making and
communication
Board members highlighted the pivotal tole of European business CEOs in shaping
strategic decisions. The discussion also addressed internal communication
practices, acknowledging areas of good practice, while noting the need for
improved information selection and contextual clarity in others.
AECS –
September
2025
Impact of AI and
Company ambition
The IECG confirmed a positive trajectory, noting the launch of predictive AI models
and the implementation of generative AI across claims, IT, pricing, risk selection,
productivity, and internal operations. These advancements were viewed as the
start of a broader journey towards enhanced efficiency and the creation of
valuable roles.
The role of
technology
in achieving
strategic goals
The discussion focused on the mid-term outlook for the European business
and the new strategy to centralise efforts in order to secure competitive
advantages. Non-Executive Directors raised questions regarding the extent
of AI utilisation, noting its successful application in rewriting procedural manuals.
Technology was identified as an area for improvement, with a focus on enhancing
control, profitability and preserving culture and talent.
Cross-functional
communication
The IECG discussed the operational challenges and emphasised the need
to strengthen cross-functional communication, collaboration and mutual
understanding across teams. The strategic objective of unifying the Company
to drive Admiral’s European growth was reiterated.
Career reflections
Board members shared insights into their career journeys, which led to a
discussion on work-life balance. The IECG expressed a desire for professional
growth opportunities at Group level.
L’olivier –
November
2025
Natural disaster risk
management
Discussions addressed the Group’s strategy regarding extreme weather events,
referencing the 2024 flooding in Spain. The ECG noted that prevention and land
use planning were crucial actions, and discussed the Group’s speed to react,
which was seen as a key differentiator when compared with competitors.
European growth
strategy and mission
The IECG discussed the vision for the future of the European business, noting that
growth needed to be profitable and not only driven by volume. The focus was on
growth in the Group’s current European markets and related products, by sharing
knowledge and assets across these markets.
Governance
A central theme of discussion was the optimal balance between maintaining local
operational agility and adhering to Group standards and governance. The strategic
focus had shifted towards greater standardisation to drive efficiencies. It was
acknowledged that local agility remained paramount to accommodate specific
market requirements.
Strategic priorities
The IECG discussed priorities for the coming years, which included customer
centricity, data and technology, talent management and retention, core system
modernisation, and the impact of new generations.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Board leadership and Company purpose continued
Admiral Group Plc Annual Report and Accounts 2025
128
By maintaining a robust governance framework, the Board ensures effective
delivery of its strategic objectives, driving sustainable financial and
operational performance for shareholders and wider stakeholders.
Board and Committee framework
Our Board and Committee framework supports the development of the highest standards of governance practices across
the Group, which is integral to the successful delivery of our strategy.
The Board is collectively responsible for establishing the purpose, values and strategy of the Group and
for promoting the long-term success of Admiral for the benefit of our shareholders and stakeholders.
Audit
Committee
Nomination
and Governance
Committee
Remuneration
Committee
Risk
Committee
Responsible for
overseeing the
Company’s systems for
internal financial control,
risk management and
financial reporting, and
monitoring the integrity of
the financial statements.
Reviews the composition
of the Board, considers
succession planning
at both Board and
senior management
level and leads the
process of appointments
to the Board.
Responsible for
remuneration policy,
performance-related pay
schemes and share-
based incentive plans.
Assists with the
oversight of the Group’s
risk appetite, tolerance
and strategy. Monitors
current and potential risk
exposures and the
effectiveness of the risk
management framework.
Read more on page 147
Read more on page 134
Read more on page 159
Read more on page 154
Group Reserving
Committee
Group Model
Governance
Committee
Group Assets
and Liabilities
Committee
Group
Investments
Committee
Group
Disclosure
Committee
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Division of responsibilities
Admiral Group Plc Annual Report and Accounts 2025
129
Board roles and responsibilities
The Chair is primarily responsible for leading the Board,
setting its agenda and monitoring its effectiveness.
He is supported by the Senior Independent Director (‘SID’),
who acts as a sounding board and serves as an
intermediary for the other Directors. Neither are involved
in the day-to-day management of the Group.
Save for the matters reserved for the Board, the Chief
Executive Officer (with the support of the Executive
Directors and senior management) is responsible for
proposing the strategy to be adopted by the Group,
running the business in accordance with the strategy
agreed by the Board and implementing Board decisions.
It is the Non-Executive Directors’ role to provide constructive
challenge, strategic guidance, offer their respective
specialist advice and hold management to account.
The Company Secretary’s role is to support the Chair
and administer the workings of the Board and Committees,
ensuring Directors have precise and timely information
to enable effective decision making, whilst providing
governance, legal and statutory advice and ensuring
a record of decisions and actions is clear and attributable.
The Board has approved a statement that sets out the
clear division of responsibilities between the Chair,
Chief Executive Officer and SID. This, and the Schedule of
Matters Reserved for decision by the Board, are reviewed
annually and are available to review on Admiral’s website
at admiralgroup.co.uk.
Chair
• Runs the Board and sets its agenda, with an emphasis on strategic issues
• Ensures the Board has effective decision-making processes and applies sufficient challenge to proposals
• Facilitates constructive Board relations, including effective contribution from Non-Executive Directors
• Ensures the Board has an appropriate balance of skills, knowledge, experience and diversity
• Leads the induction and development plans for new and existing Board members
• Communicates with major shareholders and ensures the Board understands their views
• Ensures the Board receives accurate, timely and clear information
• Leads the annual Board evaluation.
Senior Independent Director
• Supports the Chair in the delivery of their objectives
• Provides as a sounding board for the Chair and serves as an intermediary for the other Directors
• Available to shareholders if they have concerns that cannot be resolved through the normal channels
• Works with the Chair and other Directors / shareholders to resolve significant issues where necessary
• Leads the annual performance evaluation of the Chair
• Leads the Chair appointment process
• Available to step in on a temporary basis should the Chair be unable to perform their duties.
Chief Executive Officer
• Runs the Group’s business and delivers its commercial objectives
• Proposes and develops the Group’s strategy, in close consultation with the Chair and the Board
• Implements the decisions of the Board and its Committees
• Ensures operational policies and practices drive appropriate behaviour, in line with the Group’s culture
• Leads the communication programme with shareholders and other key stakeholders, including staff
• Ensures management provides the Board with appropriate information and necessary resources.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Division of responsibilities continued
Admiral Group Plc Annual Report and Accounts 2025
130
Board and Committee meeting attendance
Board
Audit
Committee
Risk
Committee
Nomination
and
Governance
Committee
Remuneration
Committee
Mike Rogers (Chair)
7/7
6/6
Milena Mondini de Focatiis (Chief Executive Officer)
7/7
Geraint Jones (Chief Financial Officer)
7/7
Karen Green
7/7
8/95
6/6
Justine Roberts
4/41
3/31
4/41
Andy Crossley
7/7
9/9
3/37
Michael Brierley
7/7
8/8
6/6
Jayaprakasa (JP) Rangaswami
7/7
7/92
Evelyn Bourke
7/7
7/84
William (Bill) Roberts
7/7
6/6
Fiona Muldoon
7/7
8/8
6/66
Paola Bonomo
4/43
3/33
Carlos Selonke de Souza
1/18
1 Justine Roberts stepped down as a Non-Executive Director and from her other roles on 18 June 2025.
2 JP Rangaswami was unable to attend the January and June 2025 Risk Committee meetings due to illness.
3 Paola Bonomo was appointed as a Non-Executive Director and a member of the Remuneration Committee on 12 May 2025.
4 Evelyn Bourke was unable to attend the May 2025 Board meeting due to a prior commitment.
5 Karen Green was unable to attend the January 2025 Risk Committee meeting due to a funeral.
6 Fiona Muldoon was appointed as a member of the Risk Committee on 28 April 2025.
7 Andy Crossley was appointed as the Senior Independent Director and member of the Nomination and Governance Committee
on 18 June 2025.
8 Carlos Selonke de Souza was appointed as a Non-Executive Director on 10 December 2025.
Collective role of the Board
The Board is responsible for promoting the long-term,
sustainable success of the Group, creating value for
shareholders, while considering the interests of all
stakeholders and contributing to the wider society in which
Admiral operates. The Board is the principal decision
making body of the Group, providing entrepreneurial
leadership, both directly and through its Committees, and
delegating authority to the Executive Directors and senior
management for the day-to-day running of the business.
The Board holds responsibility for overseeing and guiding
the Group’s activities to create and sustain long-term value.
Supported by a robust governance framework, the Board
ensures delivery of its strategic objective to achieve strong,
sustainable financial and operational performance. It is also
accountable for confirming that, in fulfilling its duties, the
Group complies with all legal and regulatory requirements
and operates within appropriate risk boundaries.
Board and Committee meetings
Directors are expected to attend all meetings of the
Board and the Board Committees on which they serve,
dedicating sufficient time to the Group to fulfil their duties
and responsibilities. When attendance is not possible,
Directors receive the relevant meeting papers, enabling
them to raise any matters with the Chair in advance.
Details of the number of scheduled Board and Committee
meetings attended by each Director during 2025
is provided in the above table.
In addition to the scheduled Board meetings outlined in the
table above, the Board convened several ad-hoc meetings
to address matters of sufficient urgency that could not be
deferred until the next scheduled meeting. All Directors are
invited to participate in these meetings, which are arranged
at short notice. Where attendance is not possible due to
prior commitments, Directors are given the opportunity to
share their views with the Chair beforehand. The Board also
delegates authority to a sub-committee for the approval
of final drafts of announcements and proposals previously
considered by the Board or its Committees. During the year,
the Board met in-person for six out of seven of its
scheduled meetings, including the two-day strategy
meeting (and October Board) held in Oxford.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Division of responsibilities continued
Admiral Group Plc Annual Report and Accounts 2025
131
Matters reserved for the Board
The Board has adopted a formal schedule of matters
reserved for the Board’s consideration. This is monitored
by the Company Secretary and reviewed by the Board
on an annual basis. Specific matters reserved to the Board
include the approval of:
• The Group’s long-term objectives and corporate strategy
• Operating and capital budgets, financial results, and any
significant changes to accounting practices or policies
• The Group’s capital structure
• Results and financial reporting
• The system of internal control and risk management
• The Group’s overall risk appetite
• Changes to the structure, size and composition of the
Board, including new appointments
• Succession plans for the Board and senior management
• Dividend policy and proposals for dividend payments
• Major acquisitions, disposals, and other transactions
outside delegated limits
• The annual review of its own performance and that
of its Board Committees
• Annual review of selected Group policies
• The review of the Group’s overall corporate governance
arrangements.
Board Committees
The Board has delegated authority to several permanent
Committees to deal with matters in accordance with written
Terms of Reference. The principal Committees of the Board
– the Audit, Remuneration, Risk, and Nomination and
Governance Committees – all comply with the requirements
of the Code.
All Committees are chaired by an independent Non-
Executive Director and each comprises a majority of
independent Non-Executive Directors. In line with the Code,
all Audit Committee members are independent Non-
Executive Directors. Committee appointments are made
on the recommendation of the Nomination and Governance
Committee for a term of up to three years, which may be
extended for two additional three-year periods, subject
to the Director’s continued independence and annual
reappointment to the Board by shareholders.
Each Committees operates under written Terms of
Reference, reviewed annually to ensure they remain
appropriate and reflect developments in best practice and
governance. These Terms of Reference are available from
the Company Secretary and on the Company’s website:
admiralgroup.co.uk.
Directors are kept fully informed of Committee activities
through the reports from the Committee Chairs at
subsequent Board meetings, and copies of Committee
minutes are circulated to the Board. Committees have
authority to seek external legal or other independent
professional advice, where deemed necessary. The Chair
of each Committee attends the Annual General Meeting
to address any shareholder questions regarding the
Committee’s work. An annual evaluation of each
Committee’s performance against its Terms of Reference
is also undertaken.
Group conflicts of interest
In accordance with the Companies Act 2006 requirements
on Directors’ duties regarding conflicts of interest,
the Group’s Articles of Association permit the Board
to authorise potential conflicts and apply any restrictions
it considers appropriate. The Group maintains a Conflicts
of Interest Policy, which was reviewed and approved by the
Board in October 2025. This Policy outlines the procedures
for managing potential conflicts at Board level, within Board
Committees, and across the Group’s Subsidiary Boards.
Following its review, the Board confirmed that these
processes continue to operate effectively.
Additionally, each Director completes an annual conflicts
of interest questionnaire, disclosing any circumstances
in which they or their connected persons have, or may
have, a direct or indirect interest that could conflict with
the Company’s interests. This includes details of any
companies in which they hold more than 1% of issued
share capital. The Board is satisfied that no Director
had any potential conflicts during the year that could
not be authorised.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Division of responsibilities continued
Admiral Group Plc Annual Report and Accounts 2025
132
Information flows to and from the Board
Agendas and papers
Agendas and supporting papers are distributed to the
Board electronically in a secure format ahead of Board
and Committee meetings. The Chair, in consultation with
the Company Secretary and CEO, structures the Board
agenda. An annual schedule of agenda items is maintained
and reviewed regularly to ensure matters are addressed at
the appropriate stage in the financial and regulatory cycle.
Meetings are designed to allow thorough consideration and
discussion of all items, with routine papers supplemented
by information specifically requested by Directors,
as required.
At each scheduled meeting, the Board receives updates
from the Chair, the CEO and CFO on the Group’s financial
and operational performance, together with any significant
developments requiring attention. Additionally, each the
principal subsidiary board meetings. Ad hoc meetings are
convened when necessary, and ongoing contact between
the Board, its Committees, subsidiary boards, and
management ensures the effective progression of the
Group’s business.
Attendees
The CEO of UK Insurance (Alistair Hargreaves), together
with the Chief Risk and Compliance Officer (Keith Davies),
the Head of International Insurance (Costantino Moretti),
and the Director of Pet, Travel and Household (Scott Cargill)
are invited to attend every Board meeting and regular Board
dinners. This has proven to be an effective means of
ensuring that senior managers below Board level, have
exposure to the Board and the way it operates.
Dynamics
Throughout the year, all Board and Committee meetings
were conducted in an open environment that encouraged
robust and constructive challenge and debate. This
approach enables the Directors to exercise independent
judgement on matters including strategy, risk management,
performance, and resource allocation.
Cross-Committee membership
As shown on pages 110 and 131, Committee membership
is structured to enable cross-Committee membership,
ensuring that matters of significance can be highlighted
and addressed across Committees promptly. This approach
is complemented by the briefings provided to the Board,
summarising the key points of discussion following each
Committee meeting.
Advice
All Directors have access to the advice and support of
the Company Secretary, who is responsible for ensuring
compliance with Board procedures and advising the Board,
through the Chair, on governance matters. The Company
Secretary provides regular updates on regulatory
developments, corporate governance issues, new
legislation, and Directors’ duties and obligations.
Appointment and removal of the Company Secretary is
a matter reserved for the Board. Dan Caunt has served
as Company Secretary since 1 May 2022; his biography
can be found on page 115.
Directors also have the right to seek independent
professional advice at the Group’s expense, whenever
they consider it necessary to discharge their
responsibilities effectively.
Other information flows
The Board Chair met with a wide range of Admiral
colleagues and visited various parts of the business,
including those in France, India and Italy during 2025.
The Non-Executive Directors are invited to visit areas
of the business for in-person on-site visits to meet
employees and review business functions.
As referenced within the commentary on employee
consultation on page 127, the Non-Executive Directors
are invited to attend ECG meetings and participate in the
two-way engagement with employees.
The Non-Executive Directors met in-person during the
year without the Executive Directors being present.
Non-Executive Directors individually met with the Chair for
discussion ahead of each Board meeting in 2025 and also
met with the CEO for a debrief at the conclusion of each
scheduled Board meeting.
The Chair holds one-to-one meetings with members
of the Group’s senior management team either in-person
or on a virtual basis. Members of the senior management
team were invited to join Board dinners, which allowed
the opportunity for informal interaction between Directors
and the senior management team.
A session was held at the end of the year to provide an
opportunity for all subsidiary board Non-Executive Directors
to meet and hear more about the Group Strategy, following
the October Group Board Strategy meeting.
Training and professional development
Director development and training is an ongoing process
and remains a focus throughout the year. Directors receive
regular updates on the Group’s business, legal matters
relating to their roles and responsibilities, the competitive
landscape in which the Group operates, and other
significant developments impacting the Group and its
industry. During the year, the Board received more in-depth
updates, briefings and training on topics such as (i) Senior
Management Functions, Conduct Rules and Reasonable
Steps; (ii) the new UK Corporate Reporting and Audit
Regime; (iii) AI and the external environment; and (iv)
several sessions on the Admiral internal model (‘AIM’).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Division of responsibilities continued
Admiral Group Plc Annual Report and Accounts 2025
133
Overseeing our Board composition
“The Nomination and Governance Committee
is committed to building a leadership structure
that is effective, diverse and aligned with the
Group’s strategic ambitions.”
Mike Rogers
Chair of the Nomination and Governance Committee
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report
Admiral Group Plc Annual Report and Accounts 2025
134
Membership
• Mike Rogers (Chair)
• Bill Roberts
• Andy Crossley.
Roles and responsibilities
The Committee assists the Board with its oversight
of Board composition, Board and senior management
succession and corporate governance by:
• Reviewing the structure, size and composition of the
Board as a whole and identifying and nominating
candidates for vacancies
• Considering the balance of skills, knowledge,
experience, time commitment and diversity
requirements of the Board and its Committees
• Reviewing and overseeing the effectiveness of
Admiral’s corporate governance framework to ensure
effectiveness, transparency and accountability
• Overseeing the Board, Board Committees and
subsidiary board evaluations and implementation
of any resulting recommendations
• Evaluating Admiral's leadership framework including
skills and expertise requirements to ensure the
Company remains competitive in a dynamic market
• Reviewing the Committee’s own effectiveness.
Committee at a glance
The full Terms of Reference of the Committee
can be found on our website:
Board governance | Admiral Group Plc
2025 highlights
• Appointment process completed for an Executive
Director, in line with established succession plan
• Appointment process completed for two
Non-Executive Directors
• Oversight of subsidiary board evaluations,
succession planning and diversity
• Recommended the appointment of the new
CEO of Admiral Money in line with established
succession plan
• Monitoring and overseeing progress towards
the achievement of diversity targets
• Review of own performance and recommendations
from Board and Committee external performance
review.
2026 priorities
• Succession planning for Executive and Non-
Executive Directors (‘NEDs’), particularly in light
of several NED nine-year terms ending in 2027
• Succession planning for subsidiary boards,
particularly the EUI Board Chair who is due to step
down in 2027
• Oversight of the implementation of the actions
arising from the external Board performance review
• Oversight of the diversity, equity and inclusion
strategy
• Oversight of talent and succession planning
in senior management.
Dear shareholder,
I am pleased to present this year’s report,
which describes the Committee’s main
activities, along with how it has discharged
its responsibilities throughout the year ended
31 December 2025.
Succession planning
The Committee was busy supporting the Board with
succession planning, particularly at Board level, during 2025.
NED and Senior Independent Director (‘SID’) succession
was reviewed in the context of Justine Roberts’ departure
following the end of her nine-year tenure in June 2025.
Paola Bonomo was identified as the most suitable
replacement and joined the Board and Remuneration
Committee on 12 May 2025.
Following an internal process to identify a suitable
candidate to replace Justine Roberts as SID, Andy Crossley
was selected and appointed, given his experience on
the Board and as Chair of the UK’s insurance business,
EUI Limited. Andy also became a member of the Committee
on 18 June 2025.
Having carefully reviewed the composition of the Board
in light of the Group Strategy, the Committee concluded
that it would be appropriate to further bolster its skills and
experience by recruiting another NED. Carlos Selonke de
Souza was identified as a strong candidate to meet these
needs and the Board welcomed his appointment on
10 December 2025.
Following a robust internal and external process, which
the Committee oversaw in 2025, on 12 January 2026 the
Board announced that it had approved the appointment
of an internal successor, Rachel Lewis, as Group Chief
Financial Officer (‘CFO’) with effect from 1 July 2026,
subject to regulatory approval.
At a senior management level, the Committee considered
the succession of the CEO of the Group’s UK lending
business, Admiral Money, and subsequently approved
the recommended appointment of Emma Powell.
Further information on the Director appointment and
induction process can be found on pages 136 and 137.
Further detail about these decisions is outlined
on page 119.
Diversity, equity and inclusion
Diversity, equity and inclusion also continued to be a key
topic for Committee discussion in 2025. The Committee
monitored progress to meet the FTSE Women Leaders
Review target, that 40% of the Board should be female,
in addition to the Parker Review’s target that the Board
should include at least one Director from an ethnic minority
background. The Board continues to satisfy these
recommended targets, whilst recognising that there is
further work to be done at a senior management level.
Governance
During 2025, subsidiary board chairs were invited
to present to the Committee on the outcome of their
respective board performance review and provide an
update on their board succession planning and diversity.
These updates were invaluable, strengthening the
Committee’s oversight of subsidiary governance,
and so will continue in 2026.
The 2025 annual review of the Board and Committees’
performance took place in December and was externally
facilitated in accordance with the Code. The review
concluded that, overall, the Board and its Committees
remained effective but noted some areas for improvement.
These are outlined on pages 145, 147, 154 and 159 of
this report.
The rest of this report sets out, in more detail, the activities
of the Committee during 2025. I would like to thank the
Committee members for their continued contributions and
support throughout the year.
Mike Rogers
Chair of the Nomination
and Governance Committee
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
135
Committee meetings held during the year
The Committee meets at least twice per year,
in accordance with its Terms of Reference, and at such
other times as the Chair may require. During 2025,
the Committee held six formal scheduled meetings.
The Committee Chair agrees the meeting agendas
for each meeting with the Company Secretary.
The table outlined on page 131 shows the attendance
of Committee members at meetings during 2025.
Attendees at Committee meetings
The Company Secretary acts as Secretary to the
Committee. Other individuals, such as the Group Chief
Executive Officer, the Group Chief People Officer
and representatives of different parts of the Group,
may be invited to attend all, or part of, any meeting,
as and when appropriate.
Key activities of the Committee during the year
A description of the activities the Committee has focused
on during the year ended 31 December 2025 is outlined
under the following headings.
Director appointment process
Appointments to the Board are the responsibility
of the Board as a whole, acting on the advice and
recommendations of the Committee. The Committee seeks
to balance the retirement and recruitment of Non-Executive
Directors well ahead of relevant deadlines so as to avoid a
dislocation of Board process by losing experience and skills.
Similarly, in the case of Executive Directors, succession
plans are carefully considered to identify suitable internal
candidates and their readiness. The Committee is mindful
of the need to promote diversity and inclusion in
appointments to the Board and throughout the Group.
Appointments are made on merit and against objective
criteria, having due regard to the benefits of diversity,
and with a view to ensuring the Board has the appropriate
mix of personalities, skills and experience.
The Board appointment procedure requires the Committee
to develop a detailed role specification outlining the
necessary skills and experience. In most cases, external
recruitment consultants are engaged to lead the search
and identify suitable candidates. Shortlisted candidates
are interviewed by the Chair and Committee members,
after which the Committee considers the outcomes and
makes a recommendation to the Board for the appointment
of the preferred candidate. The Committee is satisfied that
this process is formal, rigorous and transparent, ensuring
a comprehensive evaluation of the skills, knowledge
and experience required for new Directors to the Board
and its subsidiaries.
External recruitment consultants
As reported in the previous Annual Report, Spencer Stuart
was engaged at the end of 2024 as the external,
independent recruitment consultant in anticipation of
former Non-Executive Director, Justine Roberts, stepping
down at the end of her nine-year tenure in June 2025.
Egon Zehnder was also engaged in early 2025 as the
external, independent recruitment consultant in the search
for an additional Non-Executive Director to join the Board.
Additionally, Russell Reynolds was engaged during 2025
as the external, independent recruitment consultant in the
market search for potential external candidates for the
Group CFO role.
Spencer Stuart, Egon Zehnder and Russell Reynolds have
no other connections with the Admiral Group or its Board
Directors.
Non-Executive Director induction
On appointment, Non-Executive Directors undertake
a tailored and comprehensive induction programme.
This includes core elements common to all Non-Executive
Directors, alongside components customised to the
individual’s role, skills, knowledge and experience. Led by
the Company Secretary, the induction programme covers
the role and responsibilities of a Non-Executive Director,
the operation of the Board and the Group’s subsidiary
boards, and an overview of the Group’s business. Non-
Executive Directors receive a suite of background materials
in advance, followed by induction sessions with senior
leaders across the Group, aligned to their specific
requirements. A summary of Paola Bonomo’s induction
is outlined on the next page.
Ongoing professional development needs are monitored
through annual individual Director evaluations and the
Committee’s oversight of the Board skills matrix.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
136
Non-Executive Director induction process
Chair
Paola met with Mike Rogers
to discuss the workings of the
Board and its Committees, the
contribution expected of Admiral
NEDs, and the challenges and
opportunities facing Admiral.
Senior management
Paola met with key members
of Admiral’s senior management
team including the Chief Executives
of each of our UK and overseas
business divisions, and department
heads across the business
to understand the key areas.
Paola also spent time meeting
key members of the Group
Reward team.
External advisers
Paola met with Admiral’s key
external advisers including
our remuneration advisers,
Willis Towers Watson.
CEO
Paola and Milena Mondini de
Focatiis met to discuss matters
including the Group strategy,
operations, risks, market
positioning, management
development and succession
planning. Milena also provided
an introduction to Admiral UK
underwriting, claims, reserving
and pricing processes.
Non-Executive Directors
Paola met with each of the
Non-Executive Directors who gave
their insight into Board dynamics,
culture and governance as well
as highlighting their backgrounds
and areas of expertise. Board
Committee Chairs brought Paola
up to speed on their respective
Committee’s business.
CFO
Geraint Jones briefed Paola on all
Group finance matters including;
financial performance and
projections, investor feedback,
market analysis, investments,
capital management, budgets,
reporting and control processes.
Paola Bonomo
Paola joined Admiral as a NED
on 12 May 2025 and undertook
a comprehensive and bespoke
induction programme designed
to provide her with the necessary
information to effectively take
on her role as NED on the Group
Board, and as a member of the
Remuneration Committee.
Remuneration Committee
Paola received materials to assist
with her introduction to Admiral’s
Remuneration Committee.
Company Secretary
Dan Caunt spent time with Paola
explaining the Group governance
framework; including operations
of the Board and its Committees,
engagement with stakeholders,
the AGM process, Director duties,
UK Corporate Governance Code
requirements, the Market Abuse
Regime, Admiral’s Share Dealing
Code, Board policies, the results of
the Board evaluation and areas of
Board focus for the coming year.
Information and
educational materials
A comprehensive suite of materials
was provided to Paola including
Admiral’s business plan and
strategy, key roles and
responsibilities of the Board,
its Committees, Directors,
guidelines and policies for a UK
Listed insurance Company
regulated by the FCA and PRA,
minutes of meetings, Terms of
Reference, etc.
Site visits
Paola undertook various site visits
during her first year and met with
management and colleagues
across the business, which
included Cardiff, Paris and Rome.
t
v
t
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
137
Board Committee changes, term extensions
and internal appointments addressed by the
Committee during 2025
The Board, on the recommendation of the Committee,
agreed to the following proposals / changes during
the year:
• Consideration of, and recommendation for,
reappointment of all Directors at 2025 AGM
• The appointment of Fiona Muldoon as a member of the
Risk Committee
• The appointment of Paola Bonomo as a Non-Executive
Director and member of the Remuneration Committee,
following Justine Roberts stepping down from these roles
• The appointment of Andy Crossley as Senior Independent
Director and member of the Nomination and Governance
Committee, following Justine Roberts stepping down
from these roles
• The appointment of Carlos Selonke de Souza as
a Non-Executive Director.
The Committee also considered and approved, on behalf
of the Board, subsidiary board appointments, such as the
appointment of Emma Powell as the CEO of Admiral Money.
Further information on this particular decision is detailed
on page 119.
Annual re-election
Under the Group’s Articles of Association, and in line
with the Code, all Directors should retire and stand for
re-election at each AGM. Accordingly, all Directors will
be submitting themselves for election or re-election at
the forthcoming AGM. Following a comprehensive review,
the Board is satisfied that all Directors remain suitably
qualified through their skills, experience and contribution
to the Board and its Committees. Further details of how
each Director’s contribution is, and continues to be,
important to the Company’s long-term sustainable success
is provided on page 110 and within the notes to the Notice
of the 2026 Annual General Meeting.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
138
Board composition and how we plan for succession
The composition of the Board is kept under constant review by the Committee. As at 31 December 2025, the Board
comprised 12 Directors: The Chair (independent), two Executive Directors, and nine independent Non-Executive Directors –
see page 110.
The Committee carefully considers the Board’s independence, composition, and the balance of skills, knowledge and
diversity. It continually monitors the need for the orderly refreshment of Board and Committee memberships to preserve
continuity of Board process and the strength of relationships that underpin Board effectiveness.
Our Board has a broad range of skills and experience, which it uses to bring independent judgement to bear on issues
of strategy, performance, risk management, governance, resources and standards of conduct, which are integral to the
success of the Group.
Board composition and succession planning
Balance
of skills,
knowledge
and
experience
Non-Executive
tenure and
independence
Time
commitment
and external
appointments
Annual Board
evaluation
and individual
Director
appraisals
Board
diversity
Tenure and independence
The table below details the length of service of the Chair and each of the current Directors. It illustrates the balance between
experience and bringing in a fresh perspective, as well as the independence of each of the Non-Executive Directors.
Director
Date of appointment
Length of service as a Director
as at 31 December 2025
Independence
Non-Executive Directors
Mike Rogers (Chair)
27 April 2023
2 year 8 months
Independent
Andy Crossley
27 February 2018
7 years 10 months
Independent
Michael Brierley
05 October 2018
7 years 3 months
Independent
Karen Green
14 December 2018
7 years
Independent
JP Rangaswami
29 April 2020
5 years 8 months
Independent
Evelyn Bourke
30 April 2021
4 years 8 months
Independent
Bill Roberts
11 June 2021
4 years 6 months
Independent
Fiona Muldoon
02 October 2023
2 year 3 months
Independent
Paola Bonomo
12 May 2025
7 months
Independent
Carlos Selonke de Souza
10 December 2025
<1 month
Independent
Executive Directors
Milena Mondini de Focatiis
Director – 11 August 2020
CEO – 1 January 2021
5 years 4 months
Executive Director
Geraint Jones
13 August 2014
11 years 4 months
Executive Director
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
139
Skills and experience on the Board (%)
81
83
83
88
60
71
65
71
69
65
69
63
56
73
58
Finance
Risk
Insurance
Executive / Strategic Leadership
Marketing / Retail
M&A
Capital markets
International
Technology / Digital / Data
Operations
Entrepreneurial
Personal finance and consumer credit
Small / Medium Enterprise
Remuneration / People
ESG / Sustainability
The Chair, Senior Independent Director
and independent Non-Executive Directors
Non-Executive Directors are currently appointed for fixed
periods of three years, subject to election by shareholders.
The initial three-year period may be extended for two further
three-year periods subject to performance review and annual
re-election by shareholders. Letters of appointment may
be inspected at the Company’s registered office or can be
obtained on request from the Company Secretary.
On appointment, the Board considered that Mike Rogers met
the independence criteria set out in provisions 9 and 10 of
the Code. The Chair's biography can be found on page 110.
The independence of each Non-Executive Director
has been assessed during the year, in line with the
independence criteria contained within provision 10 of
the Code, and is outlined on page 139. For the year ended
31 December 2025, 83% of the Board were considered
independent Non-Executive Directors, which complies
with provision 11 of the Code.
Balance of skills, knowledge and experience
The Directors have a broad range of skills, knowledge and
experience, and can bring independent judgement to bear
on issues of strategy, performance, risk management,
resources and standards of conduct, which are integral
to the success of the Group.
The Committee understands that a wide range of
complementary skills on the Board will assist in the meeting
of Board objectives and the delivery of Company strategy.
The Committee regularly reviews the Board skills matrix,
particularly in the context of succession planning and skills
that are potentially lost at the end of a Director’s tenure on
the Board. An aggregated view of the current skills and
experience on the Board is outlined above and an
explanation regarding how this feeds into succession
planning follows later in this report.
Time commitment and external appointments
On appointment, all Directors are advised of, and requested
to make, the necessary time commitment required to
discharge their responsibilities effectively. This time
commitment is also outlined in the letters of appointment
issued to the Chair and Non-Executive Directors.
When making new appointments, the Committee takes
into account other demands on the Directors’ time.
Prior to appointment, significant commitments are disclosed
by Directors to the Committee and the Board.
As part of the annual performance evaluation, each
Director is appraised on their time commitment dedicated
to the Company. The Committee also reviews the time
commitment required of all Non-Executive Directors at
least annually to consider whether the guidance on time
commitment of certain roles needs to be extended due to
market or responsibility changes. The Board is satisfied that
all Directors have dedicated the required amount of time
to the Company to effectively fulfil their roles, and that the
Company has given the Non-Executive Directors sufficient
time to perform the duties required of them.
As well as considering the demands of a Director’s time
upon appointment, as required under provision 15 of the
Code, there is in place a formal procedure for the approval
of additional external appointments for Directors through
the Committee and the Board. The Committee and the
Board are satisfied that the external commitments of all the
Non-Executive Directors do not conflict with their duties
and commitments as Directors of the Company.
Overall assessment of composition
The Board, through ongoing assessment and an annual
performance review, remains satisfied that it has the
appropriate balance of skills, experience, independence and
knowledge of the Group to enable it, and its Committees,
to discharge their duties and responsibilities effectively,
as required by the Code. In addition, the Directors are
aware of their legal duties under s172 of the Companies
Act 2006 to act in a way they consider, in good faith, will be
most likely to promote the success of the Company for its
shareholders, as well as considering the interests of wider
stakeholders. Further details of how the Board fulfills its
duty in this regard are outlined on page 87.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
140
Board and senior management diversity,
equity and inclusion
As required by the Listing Rules, and Disclosure and
Transparency Rules, a table showing gender and ethnicity
diversity at Board and senior management level is included
on page 143. The Board’s diversity targets, aligned with the
FTSE Women Leaders Review and the Parker Review, are:
a minimum of 40% of the Board to be women; at least one
of the senior Board positions (Chair, SID, CEO or CFO) to be
held by a woman; and at least one Board member to come
from a minority ethnic background. As outlined below, the
Committee is satisfied that Admiral meets the requirements
set out in Listing Rule 6.6.6(9)(a), and Disclosure Guidance
and Transparency Rule 7.2.8.
Gender diversity
Diversity and inclusion, and the breath of perspectives they
bring, have been shown to foster innovation and creativity,
thereby enhancing overall performance. They also deliver
additional benefits, including greater awareness, a broader
talent pool and the ability to challenge entrenched views
or practices. Admiral relies on these advantages,
strengthened by a diverse workforce, to successfully
execute its business strategy.
During the year, the Committee reviewed the Board
Diversity and Inclusion Policy and assessed progress
against the measurable targets previously set to improve
diversity and inclusion at Board, subsidiary board and senior
management level. The policy explicitly references diversity
dimensions such as ethnicity, sexual orientation, disability
and socio-economic background alongside age, gender,
educational and professional backgrounds, approach, skills
and experience, and other relevant personal attributes.
The Committee remains committed to ensuring that
recruitment strategies for Board and senior management
appointments are clearly defined and aligned with this policy.
Measures that are covered under the Policy, including
progress updates against each, include:
(i) Designating a senior executive team member who
is responsible and accountable for gender diversity and
inclusion at Group level. Keith Davies (Group Chief Risk
and Compliance Officer) is the accountable executive
for gender diversity
(ii) Setting internal targets for gender diversity in senior
management, the Group Board and the subsidiary
boards. Progress against these targets is outlined
as follows in the rest of this section
(iii) Publishing annual progress against these targets
in reports on the Group’s website, presenting
a consolidated Group position
(iv) Linking the pay of the Group CEO to the progress
made against internal targets on gender diversity.
The proportion of women on the Board has reduced slightly
since 31 December 2024 due to the appointment of an
additional Director. As at 31 December 2025, there were
five women (2025: 42%) out of 12 positions on the Board
(2024: 45% of 11 positions). Additionally, the role of Group
CEO is held by a woman. Official data published by the
FTSE Women Leaders (succeeding the Women on Boards
Report and Hampton Alexander Review) for 2025, issued
in February 2026, reported that the percentage of women
on FTSE 100 Boards was 44.4% (2024: 44.7%).
Board nationality
Board age
British 6
40s 3
60s 5
Non-British 6
50s 3
70s 1
Board ethnicity
Board gender
White British or other
White (including White
minority groups) 10
Male 7
Female 5
Ethnic minorities 2
As a result of the continued progress to balance gender
diversity at Board level and to align with (i) the Women
in Finance Charter’s aim of increasing female representation
at the UK senior executive level to 40%; and (ii) the FTSE
Women Leaders target of 40% representation, the
Committee previously aligned the annual target of women
in senior management positions at 40%. The aim continues
to be to achieve this level of gender diversity at an
aggregate level across the subsidiary boards too. As at
31 December 2025, women represented 35% of subsidiary
board appointments, which is an increase on the position
in 2024 (29%). This increase reflects ongoing oversight
from the Committee and targeted actions taken to support
greater gender balance across our subsidiary boards.
The Committee will maintain its focus on continued
progress in the areas through future appointments.
Female representation was 40% of our Senior Executives
(Executive Committee equivalent) and 34% of their direct
reports. Admiral continues to work towards achieving the
40% target. As at 31 December 2025, the gender diversity
split across the Admiral Group was 50.8% female / 48.4%
male. The remaining 0.7% included non-binary and other
genders, and colleagues who would prefer not to say.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
141
A
B
A
B
C
D
A
B
A
B
Ethnic diversity
The Group remains firmly committed to the principle
of boardroom diversity, recognising that gender and
ethnicity are important, but not the sole considerations.
Equally critical is diversity of thought, experience and
approach, ensuring that each new appointment
complements the existing composition of the Board.
The Committee continues to monitor the requirements
of the Parker Review on ethnic diversity in relation to
Board composition and the newer reporting requirements
for senior management. It also oversees initiatives across
the Group aimed at enhancing diversity and considers
how best to develop and track measures that build
a strong pipeline of diverse talent for future Board and
senior management appointments. The Board includes
two Directors from ethnic minority backgrounds, which
meets one of the Parker Review’s key recommendations
for FTSE 100 companies, as well as Listing Rule 6.6.6(9)(a)
and Disclosure Guidance and Transparency Rule 7.2.8.
Further information on how the Group is developing a
pipeline of ethnically diverse candidates is outlined below.
Ethnic diversity in senior management and the wider
workforce is something that Admiral continued to focus
on throughout 2025. Admiral produced its third ethnicity
pay gap report in the UK during the year, further
demonstrating its commitment to ethnic diversity in the
workplace. Whilst the Committee recognises that the
workforce is not always comfortable with voluntarily sharing
such personal information, there have been initiatives
introduced to encourage more people to make such
voluntary disclosures. This year, the disclosure rate was
84% in the UK (2024: 83%).
In line with the Parker Review definition, ethnic diversity
at senior management level in the UK stood at 6.2% as at
31 December 2025. In 2024, the Committee discussed the
Parker Review recommendations to implement a target for
ethnic diversity representation at senior management level
within the UK operation of the Group by 2027. The
Committee agreed a longer-term goal of 10% of ethnic
diversity in senior management by 2030 with an interim
target of 7% by 2027. These targets took into consideration:
• Internal analysis in respect of ethnic diversity, which
reflected a stable senior management population of
colleagues over the past two years, with ethnic minorities
representing between 6–7%. Modelling also looked at
the annual attrition rate, internal mobility, and the talent
pipeline, which showed that stronger ethnic diversity
would be possible in a longer timeframe
• Admiral’s geographical location in the UK, including its
regional labour market context. As the only FTSE 100
company headquartered in Wales, Admiral draws the
majority of its UK workforce and talent pipeline from
South East Wales. According to Stats Wales (Equality
& Diversity Statistics 2018–2020), the local population
of South East Wales is 6.8% ethnically diverse
• The Parker Review Report (2025), which noted that, as
at December 2024, ethnic minority executives comprised
between 9% and 11% of UK-based senior managers
across the FTSE 100, FTSE 250 and in-scope private
companies. It also reported that the average target for
2027 is between 13% and 15%, which supports that
a long-term ambition of 10% is proportionate for Admiral.
Activity to improve diversity, equity and inclusion
in the talent pipeline
Examples of the work Admiral has undertaken to improve
its diversity pipeline during the year are set out below.
Where you can – Our ‘Where you can’ promise
captures and celebrates all the brilliant possibilities
of life at Admiral, where colleagues are accepted,
supported and empowered to be themselves.
There’s no one destination for work at Admiral.
We’re all different, with different talents, skills,
goals and paths.
A culture that cares – Our colleagues experience
a truly supportive team culture, one that welcomes
and develops colleagues to be their best.
We celebrate diversity, we support wellbeing,
and we foster collaboration. We make work fit
around life through flexible and hybrid working,
ensuring everyone feels included and valued.
Building inclusive communities – Across every
country within the Admiral Group, our diversity,
equity and inclusion networks run a calendar
of events and encourage allyship. We’ve created
safe spaces where colleagues can represent
themselves confidently and build meaningful
communities within Admiral.
Partnering for progress – We’ve partnered with
global consultancy Green Park to conduct an in-
depth Culture and Inclusion review and equip our
leaders with inclusive leadership skills through
targeted learning and development.
Empowering women across Europe – Our
European Empowering Women Programme
identifies talented colleagues at all levels and
supports their progression into leadership roles
strengthening diversity across our European
operations and creating opportunities for talent
mobility that make our business stronger.
Proud partnerships and accreditations – Our
external partnerships reinforce our commitment
to inclusion. In the UK, we are a Disability
Confident Leader, Endometriosis Friendly Employer,
Neurodiversity Friendly, and a proud sponsor
of Pride Cymru.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
142
Admiral remains committed to providing equal opportunities, eliminating discrimination, and encouraging diversity amongst
its employees both in the UK and overseas. A breakdown of the gender and ethnicity of Directors and senior employees
at the end of the financial year are set out in the tables below, in accordance with the FCA Listing Rule requirements.
Gender
Number of
Board members
Percentage
of the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Number in
executive
management
Percentage of
executive
management
Men
7
58%
3
48
65
Women
5
42%
1
26
35
Other category
–
–
–
–
–
Not specified / prefer not to say
–
–
–
–
–
Ethnicity
Number of
Board members
Percentage
of the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Number in
executive
management
Percentage of
executive
management
White British or other White (including
minority White groups)
10
83.33%
4
43
58%
Mixed / Multiple Ethnic Groups
1
8.33%
–
–
–
Asian / Asian British
1
8.33%
–
2
3%
Black / African / Caribbean / Black
–
–
–
1
1%
Other Ethnic group, including Arab
–
–
–
1
1%
Not specified / prefer not to say
–
–
–
27
37%
Succession planning
The Committee is responsible for overseeing succession
planning and the appointment process for new Directors
on behalf of the Board. It evaluates the skills, experience
and diversity represented on the Board to identify
areas of strength, potential gaps and opportunities
to introduce complementary expertise that will enhance
the Board’s effectiveness and breadth of experience.
These requirements are then communicated to an
independent recruitment consultant, who will source
candidates aligned with the specified criteria and prepare
a diverse shortlist for the Committee’s consideration.
In addition, the Committee reviews senior management
appointments on behalf of the Board, ensuring these
align with established succession planning strategy.
All recruitment processes for the Board are merit based
and assessed against objective criteria. Diversity remains
a central consideration throughout this process.
Non-Executive Directors
Non-Executive Director succession planning is structured
across short, medium and longer-term horizons to ensure
that, as far as possible, all eventualities are anticipated and
addressed. Regular reviews of these plans provide the
Committee with an opportunity to analyse the data and use
these insights to shape the optimal mix of skills, experience
and diversity required by the Board, both now and in the
future, in the context of the Group’s strategic objectives.
Horizon: Emergency cover
There are emergency succession plans to ensure that
there is sufficient short-term cover or a plan in place
for key roles of the Board, namely, the Chair, the SID,
Committee Chairs and, in turn, Committee members
if a Committee Chair’s absence is longer than expected.
These plans take account of any requirements under
the respective Committee’s Terms of Reference, as well
as any Code requirements.
Horizon: Short to medium term
(1–6-year tenure)
The Committee’s short to medium-term succession
planning involves considering the replacement of Non-
Executive Directors over time to refresh the Board.
The Committee considers (i) each Director’s period
of tenure and aims to have staggered departure dates;
(ii) the skills and experience gaps that will be created
as each Director’s tenure comes to an end; and (iii) the
diversity gaps that might also become present.
Horizon: Longer term (6–9-year tenure)
The Committee’s longer-term succession planning involves
the consideration of the skills, experience, and diversity
that the Board will need over the longer term, taking
into account the Group’s strategy and the main trends
and factors that are likely to affect the Group’s long-
term success.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
143
Executive Directors and senior management
Responsibility for senior management appointments rests
with the CEO, guided by the Committee. Talent
management remains a key focus for the Committee
to ensure a diverse pipeline for senior management and
Executive Director succession.
In 2025, the Committee reviewed progress in strengthening
talent management and succession planning across the
Group, reaffirming its belief that a robust internal process
is essential to preserving Admiral’s distinctive culture.
During the year, Group CEO succession was considered
through the readiness of the internal candidate pipeline.
Readiness is measured against a competency assessment
scale and the current success profile for the role, as well
as how this is likely to evolve in the coming years. This
provided the Committee with a view of the overall health
of the CEO succession pipeline.
Succession for the role of the Group CFO was also a
significant focus for the Committee in 2025. Further detail
on the Committee’s work in this regard is on page 119.
The Committee also received an update on the pipeline for
other key roles in the Executive and senior management
team. These key roles are assessed using similar methods.
As part of this review, the Committee was updated on the
framework to increase opportunities for internal mobility
and internal promotion, other actions to close skills and
development gaps in the pipeline, diversity at this level,
and actions to mitigate some of the risks identified as part
of the review.
Emergency succession planning for Executive Director
and senior management roles is another key area that the
Committee considers and debates during the year.
The review of succession planning undertaken during the
year concluded that there was a healthy pipeline of talent
across the Group, with no immediate risk in respect of
leadership continuity, and the right level of talent to execute
our ‘internally grown leaders’ strategy. The Committee will
continue to closely monitor progress to achieve diversity,
particularly within the senior management pipeline, as well
as the actions required to bridge some of the readiness
gaps in the pipeline.
The Committee remains satisfied that effective succession
plans for Directors and senior management are in place
to ensure the continued ability of the Group to implement
strategy and compete effectively in the markets in which
it operates.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
144
Governance
The Committee regularly reviews the Group’s governance
arrangements, including any changes to the subsidiary
board and committee structures, updates to the UK
Corporate Governance Code and FCA Listing Rules, and
oversight of any regulatory applications under the Senior
Managers Regime.
In 2025, the Committee sought updates from several
subsidiary board chairs on the outcomes of their respective
2025 board performance reviews, succession planning
initiatives and diversity considerations. These updates
enhanced the Committee’s oversight of subsidiary board
governance and supported more effective monitoring
of each board’s current and future position against
the established subsidiary board gender diversity
aggregate target.
Committee performance review
The Committee’s 2025 annual performance review was
conducted alongside the wider externally facilitated Board
performance review by Bvalco Limited. As part of the
review, each Committee member was interviewed and
asked a series of questions designed to provide objective
assessment of the Committee’s performance.
The Committee discussed the output from this performance
review at its meeting at the beginning of February 2026
and concluded that, overall, the Committee had performed
effectively during the year under review. Areas of focus
for the Committee in 2026 were identified and included
(i) refreshing the Board composition, as three Non-Executive
Directors come to the end of their nine-year term in 2027;
(ii) ensuring the Board skills matrix included a forward-
looking angle to reflect the strategic trajectory of Admiral;
and (iii) continuing to remain tightly focused on senior
management succession planning and talent management.
Annual performance review of the Board,
Board Committees and individual Directors
How we assess our Board’s effectiveness
Admiral conducts an annual performance review to
evaluate the skills, experience, independence and
knowledge of the Board, ensuring it is able to discharge
its duties and responsibilities effectively. The review
considers the composition and diversity of the Board and
it’s Committees, how well Directors work together, and the
individual performance of each Director and the Chair.
In accordance with the Code, Admiral undertakes
an externally facilitated evaluation every three years,
with internal reviews conducted in the intervening years.
Further details about this year’s externally facilitated
process, along with an update on progress against the
recommendations arising from the 2024 internal Board
performance review, are provided below.
Progress against 2024 Board performance
review recommendations
At the end of 2024, the Board undertook an internal review
of the performance of the Board, Board Committees
and individual Directors for the year ended 31 December
2024. The results of the internal performance review were
discussed at the Board meeting in December 2024 and
demonstrated a Board that appeared to be functioning well,
with some identified opportunities for improvement.
The recommendations from the Board performance review
fed into the Board’s agreed objectives for 2025 and were
detailed in the 2024 Annual Report as ‘Principal areas of
focus for the Board in 2025’. The Board discussed progress
against these agreed areas during 2025, and agreed good
progress had been made against all recommendations during
the year, with focus on some inevitably continuing into 2026
due to their nature.
Areas of focus for 2025
Progress update
Board composition
As detailed on pages 119, and 134, the Nomination and Governance Committee and the Board
considered succession planning in the context of several Board vacancies arising in 2025/26.
Allocation of Board
time and resources
The 2025 external Board performance review validated that the balance of strategic, operational
performance, governance and regulatory items on the Board agenda is appropriate.
Talent and culture
The Board has continued to review talent, succession planning, diversity and culture during 2025.
See page 134 for further details.
Control framework
The Audit Committee has had oversight of Admiral’s evolving internal control framework, including
progress to strengthen it to align with Provision 29 of the Code. See page 147.
AI and new
technology
The Board has been kept abreast of the opportunities and progress achieved in the areas of data,
AI and technology at Admiral. This will continue to be a key focus area for 2026.
Customers
During 2025, the Board focused on delivering good customer outcomes, particularly through the
Consumer Duty regulation and rollout of new technology strategies across the Group. See page
91 for further information.
Strategic
The Board maintained its focus on strategic opportunities in 2025, one example of which was
the sale of the Group’s US motor insurance business, Elephant. See page 119.
Regulatory
The Risk Committee and the Board had oversight of progress to deliver an internal model
application to the regulator, along with other key regulatory matters. See page 154.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
145
2025 Board performance review
Having previously undertaken an external Board performance
review in 2022, in accordance with the Code requirement,
the 2025 Board performance review process was facilitated
externally, again using Bvalco Limited (‘Bvalco’). Bvalco has
no other connection with the Group or its Directors, except
for facilitating the 2022 external Board performance review.
Each Board member and standing attendee was interviewed
and asked a set of questions in order to support Bvalco’s
assessment of the Board’s performance. The themes and
questions considered included:
• Strengths of the Board
• Purpose and strategy
• Board dynamics and culture risk
• Risk
• Succession – Board and senior management
• Board composition – now and for the future
• Director performance reviews
• Board development and learning
• Board agenda and calendar
• Board papers and minutes
• The strengths and opportunities for the development
of the Chair and CEO, respectively
• The effectiveness of the SID
• Impact and value of the Board
• The three most important priorities for the Board in 2026
• The effectiveness of the Board Committees and their
respective Chairs.
The results of the 2025 performance review were
discussed at the February 2026 Board meeting. The overall
view from Bvalco’s evaluation process was that the Admiral
Board and it’s Committees continued to be high functioning
and that the recommendations made could be considered
as suggestions to sustain a high functioning Board.
A summary of Bvalco’s main recommendations are set out
in the table below. Recommendations have fed into the
Board’s agreed objectives for 2026 and are detailed under
the ‘Principal areas of focus for the Board in 2026’ section
on page 118.
2025 Board Committee performance reviews
Further information on each of the Board Committee’s
performance reviews can be found within the respective
Board Committee reports.
Individual Director performance reviews
The performance of the CFO is appraised annually by the
CEO, to whom he reports. The Chair, taking into account
the views of the other Directors, reviews the performance
of the CEO. The Chair also carries out the performance
assessments of each of the Non-Executive Directors. Each
of the Directors were determined to have continued to
effectively contribute to the work of the Board in 2025.
In addition, and in accordance with the requirements of
Solvency II, the Senior Insurance Manager Regime, and the
Group’s Senior Managers & Certification Regime Policy,
the Chair carried out the process of assessment for the
Group CEO, Non-Executive Directors, and the Chairs of
the Group’s material, regulated subsidiaries – EUI Limited,
Admiral Insurance Company Limited, Admiral Insurance
(Gibraltar) Limited, and Admiral Financial Services Limited
(Admiral Money), Able Insurance Services Limited (Admiral
Pioneer), Elephant Insurance Company (US), and Admiral
Europe Compañia de Seguros – AECS (Europe) – to ensure
they continued to meet the requirements in terms of
qualifications, capability, honesty and integrity.
The performance of the Chair is reviewed by the Board led
by the Senior Independent Director. The latest review took
place in December 2025 and January 2026 and was
reported to the February 2026 Board meeting. The Senior
Independent Director considered and discussed with the
Chair the comments and feedback that had been received
from the Directors as part of the Chair’s evaluation
questionnaire and was able to confirm that his performance
in 2025 continued to be effective.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Nomination and Governance Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
146
Outcomes and areas of focus for 2026
Strategic thinking
Consider alternative ways to develop strategic thinking capability and deepen
listening between Non-Executive and Executive Directors.
The Chair
Facilitate interaction more actively and offer constructive feedback on how Board
members interact.
People and customers
Prioritise more time to ensure that key topics on people and customers continue
to be explored and debated fully.
A learning Board
Consider looking back at key strategic decisions and review what lessons can
be learnt and consider ways to provide developmental feedback.
Board induction
Explore opportunities for the Board induction to tell a clearer story and be clearer to
senior management about what Non-Executive Directors need from the induction.
Ensuring the integrity
of Admiral’s financial reporting
and risk management processes
“The Committee has focused its time on
providing assurance to the Board that risk
management and internal control processes
are effective, enabling accurate reporting
and the mitigation of risks that could impact
the Group’s performance.”
Fiona Muldoon
Chair of the Audit Committee
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Audit Committee report
Admiral Group Plc Annual Report and Accounts 2025
147
Membership
• Fiona Muldoon (Chair)
• Michael Brierley
• Evelyn Bourke.
Roles and responsibilities
The Audit Committee assists the Board with its
oversight of financial, non-financial reporting and
related controls by:
• Monitoring the integrity of the Group’s financial
statements and non-financial reporting disclosures,
significant accounting judgements, and related
announcements, including the Solvency and
Financial Condition Report and climate-related
disclosures
• Together with the Risk Committee, monitoring the
adequacy and effectiveness of the systems of
internal control and risk management over financial,
climate-related and other non-financial disclosures
• Overseeing and monitoring the Group’s
whistleblowing processes
• Monitoring and reviewing the effectiveness,
performance, independence and objectivity of both
the internal and external auditors.
2025 highlights
• Strong progress in respect of overseeing the
implementation of new reporting processes needed
for the UK Corporate Governance Code changes,
including the dry run of the Group’s approach
to making its declaration regarding the effectiveness
of material controls under Provision 29
• Ongoing focus on the Group reserving process
to ensure that it, as well as the governance process,
remains appropriate and robust
• Successful implementation of the new internal
audit methodology.
2026 priorities
• Ensuring the Group is able to make its declaration
regarding the effectiveness of material controls
under Provision 29
• Reviewing the proposed approach to new climate-
related disclosures and related assurance needs
• Overseeing the implementation of the new
accounting standard IFRS 18 Presentation and
Disclosure in Financial Statements (‘IFRS 18’)
in preparation for 2027 reporting
• Focus on planning for the succession of the Group
Head of Internal Audit in 2027, whilst also monitoring
the transition of the succession of the Group CFO
in 2026.
Committee at a glance
The full Terms of Reference of the Committee
can be found on our website:
Board governance | Admiral Group Plc
Dear shareholder,
I am pleased to share the Audit Committee
(the ‘Committee’) report for the year ended
31 December 2025.
Committee composition requirements
The Committee comprises three Non-Executive Directors
who fulfil the relevant Code and Disclosure and
Transparency Rules (‘DTR’) around financial expertise,
experience and independence.
Having reviewed the composition of the Committee during
the year, the Board continues to be satisfied that the
Committee as a whole has the relevant competence in the
insurance and broader financial services industry, such that
its members are able to effectively analyse, challenge and
debate the issues that fall within the Committee’s remit.
Further details about the qualifications of individual
Committee members can be found within the Director
biographies on page 110.
Financial and non-financial reporting highlights
Financial reporting
The Committee continued to place considerable focus on
the critical accounting judgements and estimates in the
Group’s financial statements, in particular the recognition
and measurement of insurance contract liabilities and
reinsurance contract assets in accordance with IFRS 17
and the Group’s reserving methodology. Key reserving
assumptions were challenged by the Committee, including
how the changing economic environment, for example the
implementation of tariffs and ongoing inflation, had been
considered within the reported claims liabilities. The
Committee also spent time reviewing the impact and
disclosure relating to the multi-firm FCA review of UK motor
total loss settlements.
The Committee reviewed and challenged management’s
assessment of the expected credit loss (‘ECL’) provision
relating to the Group’s consumer lending portfolio, as well
as the impact of the sale of the back book and new forward
flow arrangements, the accounting for, and disclosure of,
the Group’s sale of its US Motor Insurance business, and
the impairment testing performed in relation to the Group
Parent Company’s investments in Group subsidiaries.
Non-financial reporting
The Audit Committee continued to oversee the delivery
of limited assurance work over sustainability and climate
reporting within the Annual Report, including the separate
public assurance report over a number of sustainability
performance indicators.
The Committee was kept informed of the changes to
planned regulatory reporting requirements for sustainability
and climate-related disclosures.
Fair, balanced and understandable
One of the responsibilities of the Committee is to assess
whether the Annual Report and Accounts and Half-Year
Report, taken as a whole, is fair, balanced and
understandable, as well as ensuring it provides
shareholders with the necessary information to assess the
Group’s position. The Committee reviewed and challenged
management’s assessment of the Annual Report in respect
of the above requirements, in particular, in relation
to the balance of commentary on good and bad news,
and disclosure of significant events in the period.
Internal controls
The Committee continued to monitor the effectiveness
of the Group’s internal control systems, receiving regular
updates from the internal audit team, as well as direct
reports from business areas where potential control
weaknesses or opportunities for improvement had been
identified through audit and other assurance activities.
The Committee continued to oversee the embedding of the
Group Control Requirement Framework, ensuring readiness
for reporting in line with Provision 29 of the UK Corporate
Governance Code (2024) at the conclusion of the 2026
financial year.
Whistleblowing
On behalf of the Board, the Committee considered and
reviewed the Group’s whistleblowing policy and received
quarterly updates on the use and effectiveness of the policy
and the instances of whistleblowing that had been raised
across the Group during the year. During the year,
the Committee concluded that the Group’s current
whistleblowing arrangements continued to be appropriate
and effective allowing employees to raise concerns in
confidence and anonymously.
FRC Minimum Standard
The Committee can confirm that the Company is compliant
with the FRC’s Audit Committees and External Audit:
Minimum Standard (‘Minimum Standard’), as published
in 2023.
Fiona Muldoon
Audit Committee Chair
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Audit Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
148
Committee meetings held during the year
The Committee meets at least six times per year and
has an agenda planner linked to events in the Company’s
financial calendar and other significant issues that arise
throughout the year, which fall for consideration by the
Committee under its remit. The Chair of the Audit
Committee agrees the agenda for each meeting with
the Company Secretary.
There were eight scheduled Committee meetings held
in 2025, with two of these meetings focused on reserving
matters in conjunction with the half-year and full-year
reporting, and another on the approval of the Group’s
Solvency and Financial Condition Report.
The table outlined on page 131 shows the attendance
of Committee members at meetings during 2025.
Attendees at Committee meetings
The Group Company Secretary acts as Secretary to the
Committee. The Group Chief Financial Officer, Group Chief
Risk and Compliance Officer, senior Group Finance
representatives and Group Head of Internal Audit normally
attend all Committee meetings (other than certain private
sessions). The Chair of the Board, Chief Executive Officer,
Head of Group Compliance, and other representatives from
across the Group, may be invited to attend all, or part of,
any meeting as and when appropriate. The Chairs of the
Audit Committees of the Group’s European insurer and US
subsidiary also usually attend at least one meeting each
year to present on their activities. In 2025, the Chair of the
Audit Committee of the Group’s US business did not attend
a meeting but, instead, provided a written update, whilst
under the Group’s ownership.
The external auditor attended all of the Committee’s
meetings held in 2025, except for those agenda items
when its own performance, reappointment and fees were
reviewed, or where any other conflict was identified.
Key matters considered during 2025
The significant matters considered by the Committee
during the year are outlined below.
Financial reporting
After discussion with both management and the external
auditor, the Audit Committee determined that, as in the
prior year, the key risks of misstatement of the Group’s
financial statements, related to the valuation of insurance
contract liabilities under IFRS 17. This key risk of
misstatement can be separated into the best estimate of
future cashflows required to fulfil insurance contracts, and
the methodology and measurement of the risk adjustment
for non-financial risk.
The IFRS 9 provision for ECLs in relation to the Group’s
lending business, Admiral Money, and the impairment
testing exercise performed in relation to the Group Parent
Company investments in Group subsidiaries, were also key
financial reporting estimates considered by the Committee.
These important issues were discussed with management
during the year and with the external auditor at the time
the Committee reviewed and agreed the external auditor’s
Group audit plan, when the external auditor reviewed the
interim financial statements in August 2025 and also at the
conclusion of the external audit of these full-year financial
statements.
Other important financial reporting matters that were
considered by the Audit Committee included:
• The disclosures in relation to motor total loss settlements
following the industry-wide review
• The accounting for the sale of the back book in Admiral
Money, and new forward flow arrangements
• The impact on the financial statements and disclosures
of the Group’s agreement to sell its US Motor Insurance
business
• Regular financial reporting updates, including on
tax matters.
Valuation of insurance contract liabilities
The Committee continued to spend significant time
reviewing and challenging the approach, methodology
and key assumptions adopted by management in setting
reserves for insurance contract liabilities in the financial
statements to ensure consistency with the Group’s stated
accounting policies.
In this context, the Committee reviewed and challenged
important judgements and assumptions used in the
actuarial claims reserving process for UK car, discussing
areas including: observed trends in claims frequency and
inflation data; political, and economic factors such as
the US tariffs; how continued growth in the business is
captured in the actuarial reserving process; and the impact
of continued inflationary pressures on claims reserves
in relation to both damage and bodily injury claims; and
weather-related events on actuarial projections and
resulting best estimate insurance contract liabilities.
In addition, the Committee reviewed management’s
assessment of the level of uncertainty inherent in the claims
reserves, and changes to that assessment from previous
periods as well as the results of management’s reserve
stress and scenario testing.
The Committee also reviewed and challenged
management’s papers setting out the basis for the
measurement and selection of the risk adjustment for
non-financial risk, considering the impact of emerging
trends and analysis of uncertainties, in relation to the
UK Car Insurance business.
Further information is set out in more detail in the
critical accounting estimates section of note 2 to the
financial statements.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Audit Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
149
As in previous periods, the Committee held meetings
specifically focused on reserving, receiving presentations
on UK Car Insurance reserves from the internal actuarial
reserving and finance teams, as well as the independent
external actuarial advisers. At these meetings, management
provided further information on the projected best estimate
claims reserves, as well as payment patterns used
to estimate the resulting future claims cashflows.
Management also presented to the Committee on the
measurement of the risk adjustment for non-financial risk
including the methods used to estimate the reserve risk
probability distribution and the selection of the confidence
level in line with the Group’s accounting policy.
The Committee again received presentations from
the external actuarial firm that performed independent
validation of the best estimate claims reserves and
the external Big Four firm that performed independent
validation of the reserve risk distribution and the
appropriateness of the risk adjustment at the target
confidence level.
The Committee received reports from the Group’s external
auditor, Deloitte, on its work in relation to this significant
audit risk. This included reviewing management’s actuarial
data quality assessments, best estimate reserve projections
and the risk adjustment for non-financial risk, as well
as assessing management’s qualitative and quantitative
support for gross insurance contract liabilities included
in the financial statements. Based on this work, the auditor
was satisfied that the financial statement reserves
remain appropriate and consistent with the Group’s
accounting policy.
The Committee also received reports on the reserving
processes for the Group’s insurance businesses other than
UK Car Insurance. Management presented an overview of
the claims reserving processes and results of actuarial best
estimate reserving processes with recommendations
for UK Household, UK Van insurance, and European Motor
businesses, including the results of actuarial best estimate
reserving processes and justification for the risk adjustment
for non-financial risk for each business.
Whilst acknowledging that the setting of reserves for claims
that will settle in the future is a complex and judgmental
area, having had the opportunity to challenge
management’s proposal in respect of both best estimate
reserves and risk adjustment, the Committee is comfortable
that an appropriate process has been followed, and that
there has been sufficient scrutiny, challenge and debate
to give confidence that the reserving levels set incorporate
a risk adjustment for the uncertainty in the best estimate,
which is consistent with the Group’s stated IFRS 17
accounting policies.
IFRS 9 provision for expected credit losses
During the year, the Committee has continued to review
and challenge the IFRS 9 provision for ECL arising through
the Group’s loans businesses. Areas of focus included the
underlying forward-looking economic assumptions given
the changing UK economic outlook as well as the
judgements over any required post-model adjustments.
Further information on the provision and key assumptions
are found in note 7 to the financial statements.
On the basis of the work performed, and having had the
opportunity to challenge management’s proposal in respect
of the provision for ECLs, the Committee was comfortable
that an appropriate process has been followed, and that
there has been sufficient scrutiny and challenge to give
confidence that the provision has been set in line with
the IFRS 9 requirements and included appropriate
allowance for uncertainties arising from the current
macroeconomic environment.
Impairment testing for the Group’s investment
in subsidiaries
During the year, the Committee considered management’s
work in relation to the Group parent’s investment in
subsidiary entities. Under the relevant accounting standard,
IAS 36 Impairment of Assets management identified entities
with indicators of impairment and performed detailed
impairment testing in relation to those investments,
calculating recoverable amounts primarily using discounted
cashflow calculations.
Management proposed the recognition of non-cash
impairment losses in respect of subsidiary entities
supporting the Group’s newer growth businesses in the
UK and in Europe. The impairment charge relating to these
subsidiaries followed a similar approach to previous periods,
reflecting the reduction in net assets of the business (used
as a proxy for fair value less costs to sell) arising from
losses incurred during 2025.
The Committee challenged management’s proposal for
recognition of impairment losses as well as conclusions for
other subsidiary entities where indicators for impairment
were present but no impairment was deemed necessary
as a result of recoverable amounts being more than the
carrying value of investments.
Misstatements
No material unadjusted audit differences were reported
by the external auditor. The Committee confirms that it is
satisfied that the auditor has fulfilled its responsibilities with
diligence and appropriate professional skepticism.
Conclusion
After reviewing the presentations and reports from
management and consulting, where necessary, with the
auditor, the Committee is satisfied that the financial
statements appropriately address the critical judgements
and key sources of estimation uncertainty (both in
respect to the amounts reported and the disclosures).
The Committee is also satisfied that the significant
assumptions used for determining the value of assets and
liabilities have been appropriately scrutinised, challenged
and are sufficiently robust.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Audit Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
150
Sustainability and climate-related reporting
The Audit Committee received updates from the Group’s
Head of Sustainability in respect of updates to
requirements, including the postponement of new
sustainability and climate-related disclosures.
In addition, the Committee reviewed management’s
presentation setting out the work performed to support
management’s assessment of climate-related risks on the
financial statements, and received the auditor’s limited
assurance report over a number of the Group’s key reported
sustainability metrics, which was discussed and approved.
The Committee noted the developing nature of climate
metrics measurement standards and that climate
measurement standards are not at the same level of
maturity as financial accounting standards.
Internal controls and risk management system
Consistent with prior years, the Committee undertook
its annual assessment, drawing in part on a third line of
defence review of the Group’s systems of internal control
and risk management conducted by the Internal Audit
function. In support of this process, the Group Head
of Internal Controls and the Group Chief Risk and
Compliance Officer presented their annual assessment
of the Group’s internal controls to support the Committee’s
own annual assessment.
Alongside these management assessments, and as in
previous years, the Committee also received a report from
the Group Risk Committee detailing its activities in support
of the Group Audit Committee’s annual review of the
Group’s system of internal controls and risk management
framework. Further details on the Group Risk Committee’s
contribution to this process is outlined on page 154.
Taken together, the annual assessments from management
and the Group Risk Committee’s report provided the
Committee with adequate assurance on the level and
maturity of the Group’s internal control environment and
system of risk management, based on an overall improving
position in relation to risk and controls across the Group.
Annual assessment key considerations:
• Internal Audit reports
• GRC reportable risk events (red and notifiable)
• Residual Risk – open GRC reportable risk events, open
Category A and B internal audit recommendations
• Red Group KRIs with associated internal controls
• Whistleblowing events and coverage of training
• Group Compliance and / or Group Data Protection Privacy
and Ethics Regulatory notifications
• Notable reputational events
• Entity self-attestations on adherence to the Group
Control Requirements Framework
• Testing results undertaken on the entity self-attestations
• Timeliness and completeness of Regulatory reporting
• Performance of key financial crime controls.
UK Corporate Governance Code
During the year, the Committee received regular updates
from management in respect of the Group’s work and
progress towards compliance with the forthcoming
changes to the UK Corporate Governance Code (2024),
particularly the changes relating to Provision 29 and the
declaration regarding the effectiveness of material internal
controls.
In particular, the Committee reviewed and challenged
management’s approach towards the identification of
material controls, and was responsible for overseeing the
first full dry run of the process and resulting reporting
to support the required declaration under Provision 29.
Internal Audit
The Group Head of Internal Audit attended all Group Audit
Committee meetings and provided a range of presentations
and papers to the Committee, through which the
Committee monitored the effectiveness of the Group’s
material internal controls, including financial, operational
and compliance controls on behalf of the Board.
Such papers included:
• A new Group Internal Audit Charter and Group Internal
Audit Mandate (approved by the Committee), which have
replaced the previous Group Internal Audit Policy, which
included the Group Internal Audit Terms of Reference,
setting out the role, objectives, reporting lines and
accountability, authority, independence, and objectivity
of the Internal Audit function. This is in line with the new
Global Chartered Institute of Internal Audit standards
• The evolution and development of the Internal Audit
function, and the role, competence and effectiveness of
each internal audit function across the Group. The Group
Head of Internal Audit continues to have responsibility
to ensure the quality of the internal audit activities in the
Group’s overseas locations. The Chairs of the European
and US Audit Committees each updated the Committee
on their respective activities during the year
• All issued internal audit reports, enabling them to
challenge the reports’ content, including the rating,
and related recommendations
• The Group internal audit plan and the subsidiaries’
respective internal audit plans, which the Committee
approved. The internal audit plans, effectiveness and
workload of the internal audit functions, and the
adequacy of available resources are monitored
throughout the year.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Audit Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
151
The European operations have a dedicated internal audit
team and the US business also has its own locally-based
internal auditor. All US and UK reports are evaluated by
the Group Internal Audit function and by exception, those
in Europe, to ensure the quality and effectiveness of the
reported findings. A summary of the key findings of each
completed audit is provided to the Committee as part
of the Group Head of Internal Audit’s regular Committee
update. The Internal Audit coverage for the Group’s Italian
loans business is fully outsourced locally and, although
that particular function does not report directly into
Group Internal Audit function, is closely reviewed on an
ongoing basis.
During the year, the Group Head of Internal Audit
introduced enhancements to the Group’s internal audit
grading methodology, which were discussed and supported
by the Committee. The changes, albeit not material,
intended to (i) better reflect the categorisation of risks
identified through the Group Internal Audit team’s
assurance activities in the short and longer term;
and (ii) provide more flexibility, allowing the use
of professional judgement.
The Group Head of Internal Audit provided the Committee
with several updates during 2024 on work to address
gaps following the introduction of the new Global Internal
Audit Standards, which came into effect in January 2025.
The revised audit methodology to support this was put live
by the Group Internal Audit on 1 January 2025.
Private meetings were also held between the Group Head
of Internal Audit and the Committee during the year to
ensure that there was an opportunity to raise any issues
or concerns without other members of management or the
external auditor present.
External Audit
Appointment
The Group last completed an audit tender during 2020/21
when, following the completion of a robust and
independent audit tender process, Deloitte LLP were
re-appointed in April 2021. Deloitte LLP’s overall tenure
up to, and including, the 2025 financial year is ten years.
The Committee confirms it is in compliance with the
provisions of the Statutory Audit Services for Large
Companies Market Investigation Order 2014.
When considering the re-appointment of Deloitte for the
2025 audit, the most critical factors discussed related
to the quality of the audit, the continuity of the team and
the potential cost and efficiency benefits of retaining
the incumbent auditor. On the recommendation of the
Committee, the Board approved that Deloitte should
be recommended to shareholders for reappointment
as the Group’s auditors at the 2026 AGM. A resolution
to that effect will be proposed at the AGM.
Audit fee
During 2025, the Committee reviewed and approved
the audit fee proposal for the 2025 year-end Group audit.
The agreed fee for the audit and other assurance-related
services for 2025 is £3.72 million (2024: £3.49 million).
Details of non-audit fees for 2025 are in note 9 of the
consolidated financial statements.
Safeguarding independence and objectivity
To ensure that the independence and objectivity of the
external auditor is safeguarded, during the year, the
Committee:
• Reviewed and approved the Group’s policy on non-audit
services and was satisfied that it continued to align
with current regulatory guidance. Under the policy, the
Group’s external auditor will only be engaged to carry out
non-audit services in prescribed circumstances or where
there is a regulatory request, and where agreed by the
Committee
• Monitored compliance with the FRC requirements around
the rotation of the Group’s lead audit partner and
members of the senior audit team
• Reviewed and approved the policy governing restrictions
on the employment of former employees of the external
audit firm and enhanced the pre-employment procedures
• Considered submissions from the external auditor
concerning their continued independence and objectivity.
Effectiveness of the external audit process
The Committee performs an annual review of the
effectiveness of the external auditor, taking into
consideration relevant professional and regulatory
requirements, the progress achieved against the agreed
audit plan, and the competence and objectivity with which
the auditor handled the key accounting and audit
judgements. It also considered external audit operations,
dynamics and composition of the team, as well as
information, reporting and risk management.
As part of its 2025 review, the Committee considered
(i) the output of a questionnaire completed by all Committee
members and relevant internal stakeholders, such as
members of the Group’s Finance and Internal Audit functions;
and (ii) the findings of the FRC’s Annual Review of Audit
Quality, including the Deloitte LLP Audit Quality Inspection
and Supervision Report 2025, published in July 2025.
Following this review, the Committee concluded that the
external audit process remained effective.
Private meetings were held between the external auditor
and the Committee throughout the year to ensure that
there was an opportunity for the external auditor to raise
any issues or concerns without management present.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Audit Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
152
Longer-Term Viability Statement
and Going Concern Assessment
The Committee challenged the support for the Longer Term
Viability Statement (‘LTVS’), reviewed by the Group Risk
Committee, and going concern assessment prepared by
management, and concluded that there was sufficient
evidence to support the assessment and disclosures within
the Annual Report. Further information on the LTVS and
going concern assessments can be found on pages 105
and 193, respectively.
Whistleblowing
On behalf of the Board, the Committee received quarterly
updates on the use and effectiveness of the Group’s
whistleblowing arrangements, key metrics and the instances
of whistleblowing concerns that had been raised across the
Group during the year. The Committee concluded that the
Group’s current whistleblowing arrangements continued
to be an appropriate means by which employees could raise
concerns in confidence and anonymously.
Committee performance review
The 2025 Committee performance review was conducted
alongside the wider externally facilitated Board
performance review by Bvalco Limited. As part of the
review, each Committee member was interviewed and
asked a series of questions designed to provide objective
assessment of the Committee’s performance.
The Committee discussed the results of the review
at its meeting in February 2026 and concluded that the
Committee continued to be well functioning and operating
within its remit. There were no areas identified for further
improvement; however, several key focus areas were
highlighted for 2026 and 2027, including forward planning
for the Group Head of Internal Audit position, noting that
his seven-year tenure ends in 2027, after which his
independence status would need to be subject to
consideration. In addition, the succession of the Group
CFO in 2026 will be an important factor that will require
close monitoring.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Audit Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
153
Managing risk effectively
“The Group Board is of the view that the
Group’s risk management and internal
control systems have operated effectively
during the year.”
Andy Crossley
Chair of the Group Risk Committee
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Group Risk Committee report
Admiral Group Plc Annual Report and Accounts 2025
154
Membership
• Andy Crossley (Chair)
• Karen Green
• Fiona Muldoon (appointed April 2025)
• JP Rangaswami.
The table outlined on page 131 shows the attendance
of Committee members at meetings during 2025.
Roles and responsibilities
• Assess and oversee the Group’s overall risk
management framework, including risk policies
and mitigation strategies
• Review Group-wide reporting on risk events,
metrics and breaches, including those within
the regular CRO Report
• Review and monitor the Group’s prudential
risk exposure, via the Own Risk and Solvency
Assessment (‘ORSA’) Report and stress and
scenario testing
• Oversee and challenge the design and execution
of the Group’s capital policy setting process,
including liquidity projections and proposed final
dividend payments.
The full Terms of Reference of the Committee
can be found on the Admiral website.
2025 highlights
Over the year, the Committee has received updates
on pertinent developments, including:
• Admiral’s risk framework and overall approach to
risk management, including the suite of key risk
indicators, the management of material risk events,
and developments in emerging risks
Group Risk Committee at a glance
• The Admiral internal model, including validation
• Further enhancing risk maturity through the ongoing
implementation of a risk enhancement strategy
• The impact of economic uncertainty on capital and
liquidity risks across the Group
• Ongoing work to ensure Admiral is prepared to meet
the challenges of climate change
• The Group’s response to regulatory initiatives
• The impact of emerging risks including automated
vehicles, quantum computing and agentic AI
• Admiral’s technology and information security
posture
• Creation of an enhanced risk culture framework
• New commercial partnerships and other key
strategic initiatives, including the sale of Elephant.
2026 priorities
• Continued focus on the Admiral internal model,
supporting a planned regulatory application in 2026
• Continue to oversee the evolution of the risk function
as management practices are reviewed, enhancing
collaboration and improving efficiency, in alignment
with regulatory expectations
• Further embed consideration of the increasingly
challenging external environment, including its
impact on areas such as cybersecurity, technological
change, and geopolitical instability
• Enhanced oversight and stress testing of key
reinsurance arrangements
• Continued assessment of emerging risks, including
new technologies and changes in driving options.
Dear shareholder,
As Group Risk Committee (‘GRC’) Chair,
I am pleased to present the Committee’s
report for 2025.
Risk framework and approach
to risk management
The objective of risk management is to continue to support
the effective, efficient and compliant delivery of the Group’s
overall strategy. The Committee has overseen the
implementation of an internal risk enhancement strategy
alongside recommendations from a third-party consultancy
to further improve the Group’s risk maturity. This included
the review and challenge of various topics, including a
revised Enterprise Risk Management Framework (‘ERMF’),
a risk mandate, a more streamlined Group Risk
Management Policy, an enhanced risk culture framework
and a skills and capabilities independent review of the
Group Risk Management Function.
Progress of Admiral internal model (‘AIM’)
The Committee received regular reporting throughout
the year to help drive key decisions in relation to the AIM.
The model was expanded from year-end 2023 onwards to
include UK Household, Van, Travel, and Pet products, such
that the AIM can produce Solvency Capital Requirements
for Admiral Group, AIGL, and AICL. This expanded scope
partial internal model will be the basis of a regulatory full
application to the PRA (Group and AICL) and GFSC (AIGL)
planned for 2026. The AIM models are subject to
independent validation cycles prior to regulatory
submissions, which are reviewed by the Committee.
The Committee has provided review and challenge on the
appropriate validation approach as well as on key design
decisions and expert judgements used in the model.
Regular communications with the PRA and GFSC are held
at senior management and project levels to align delivery
for the full-application regulatory reviews.
Economic and geopolitical uncertainty
The Committee monitored business risks, investment risks
and solvency and liquidity positions amid economic and
geopolitical uncertainty. Regular reporting drove
discussions on inflation, the financial impacts of public
policy, and volatility in global trade amid a resurgence
in protectionist tariffs. For example, the Committee was
provided with a paper on electric vehicles, noting the
potential impact of trade policy and tariffs on the supply
of Chinese EVs, as well as potential opportunities
surrounding working with OEMs. The Committee also
reviewed economic risks more broadly, completing its
annual approval and review of the results of stress testing
for the annual ORSA Report. This incorporates severe
adverse economic scenarios such as the EIOPA IST
(geopolitical tensions stoke inflation and suppress growth).
Climate and sustainability
GRC continued to play a central role in overseeing key
developments, including the introduction of a new
Sustainability Risk Policy and reviewing enhanced
management information of risk exposure across a broad
range of environmental, social, and governance areas.
Regulatory change
Regulatory interaction and scrutiny has remained high over
the last year and been robustly overseen by the Committee.
Admiral engages with regulators to identify requirements,
assesses internal processes in line with regulatory
change, and ensures regulatory requirements are met.
Notably, the GRC has discussed information and reviewed
requests from the FCA, including in relation to Motor total
loss settlements, premium finance, ancillary sales, and
Household claims. The Consumer Duty continues to be
a key focus and cornerstone of regulatory oversight,
and Admiral is constantly looking to identify, understand,
and utilise customer feedback and other MI to verify
good outcomes for customers and use feedback to
continually enhance products and services. The regulatory
environment in Gibraltar has also continued to evolve
this year, with both the FCA and GFSC highlighting the
importance of the oversight responsibilities of the Group’s
insurance companies in the UK (‘AICL’) and Gibraltar (‘AIGL’).
With this in mind, Admiral has expanded its team in Gibraltar
to further strengthen oversight. Admiral’s Annual Consumer
Duty Board Report also helps to ensure that the delivery
of good customer outcomes, in alignment with the Group’s
purpose, remains at the forefront of the Board’s agenda.
Financial crime, bribery and corruption
Admiral policies against financial crime, bribery, and
corruption are reviewed and approved by the GRC. They
prohibit fraud, excessive gifts, hospitality, and facilitation
payments. Both employees and third parties must meet
ethical standards and comply with internal procedures.
The Committee also oversees that new employees
undertake and pass training on policies and regulations,
and that existing staff undertake and pass annual refresher
training. The Group Head of Financial Crime submits a
formal report to GRC at least biannually, which includes
an update on any emerging threats, trends and regulatory
developments. During 2025, this has included oversight of
the measures needed to comply with the Failure to Prevent
Fraud legislation introduced through the Economic Crime
and Corporate Transparency Act (‘ECCTA’).
Artificial intelligence (‘AI’)
The Committee received regular updates regarding
developments in predictive, generative, and agentic AI
technologies. The GRC was also provided information about
efforts to ensure AI Act compliance within European entities
and engagement with UK regulators on the subject. The
Committee reviewed the risk-based and trust-by-design
approach rolled out across the Group, discussing topics
such as fairness, openness, transparency, and ethics.
These discussions reflect the Committee's ongoing role
in overseeing the introduction of AI in a manner intended
to be responsible and beneficial to customers.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Group Risk Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
155
Autonomous vehicles
The Committee has regularly discussed developments
in vehicular technology, notably including the steps taken
towards self-driving and fully autonomous vehicles (‘AVs’).
In April, the Committee reviewed a paper outlining how
AVs could fundamentally change the motor insurance
environment, driving reduced claims frequency but
increased complexity, and new legal and regulatory
challenges. The Committee discussed potential
consequences for vehicle supply chains, and encouraged
management to continue to monitor developing risks
and opportunities.
Resilience
Operational resilience has been a priority for Admiral during
a year that saw the introduction of the Digital Operational
Resilience Act (‘DORA’) and UK Operational Resilience
regulation. Line 2 has supported project delivery through
independent compliance reviews, stress testing, and
through in-flight monitoring. To facilitate oversight, the
Committee has been provided with a large and growing
suite of data, including newly introduced dashboards
incorporating operational resilience metrics. Key guidance
was also provided by the Committee with respect to
regulatory submissions, including how risk appetite and
tolerance / escalation thresholds are set and cascaded
down, the criteria for remediation, independent reviews
of the outsourcing register, and provision of management
information (‘MI’) to the Board. Since the introduction of
major regulations in 2025, focus has now turned to external
validation processes, with the Committee continuing to play
a supervisory role.
Technology and information security
The wider UK cyber landscape faced significant
disruptions due to cyber incidents, particularly affecting
major retail and manufacturing sectors. These attacks
have typically targeted critical business functions such as
e-commerce platforms and payment processing systems.
The Committee was briefed on the proactive measures
being implemented to enhance Admiral’s cyber risk posture,
in particular, initiatives to complement its multi-layered
security strategy focused on prevention, detection and
rapid response. The Committee was briefed on continuous
monitoring, threat hunting and simulation, and real-time
adaptation to threat intelligence and evolving TTPs (tactics,
techniques, and procedures). Given the scale of Admiral’s
digital operations, maintaining strong cyber defences
remains essential to safeguarding customers, data, and
brand reputation. To this end, the Committee has been
apprised of developments in quantum computing and
potential mitigation strategies regarding the threat it poses
to current encryption standards. The Group’s cyber
insurance limits have also been reviewed and enhanced.
Data protection and privacy
The Committee continued to oversee Admiral’s
commitment to processing personal data responsibly.
The Committee approves Admiral’s Data Protection Policy,
which outlines roles and responsibilities in ensuring an
effective privacy compliance programme. As part of this,
statistics, trends and outcomes are monitored for privacy
impact assessments, information rights and incident
notifications. Admiral has also refreshed its customer-facing
privacy notice and cookie banner for Admiral.com, which
provides more information on how Admiral protects and
processes personal data, and how customers can exercise
their data protection rights. More information on
Admiral’s approach to privacy can be found in Admiral’s
Sustainability Report.
People risk
The Committee considered, and provided guidance on,
recruitment challenges around specialist skills in the
developing areas of data / cyber security, AI, and climate /
sustainability-related risks. The Committee also helped
to ensure continued vigilance and training for all staff in
relation to heightened concerns around cyber-attacks,
and highlighted opportunities and potential risks associated
with recruiting and upskilling staff in new areas for Admiral.
Risk culture
The Committee oversees that the risk function works
collaboratively across the Group, ensuring a positive risk
culture is continually strengthened. In 2025, a new risk
culture framework has been developed, with risk culture-
specific metrics being reported to the Committee and
included within non-financial metrics on remuneration and
the Company’s independent staff surveys. These will all be
embedded further within 2026. An independent risk culture
assessment, initially focusing on Admiral’s customer-facing
entities and Group Risk Management Function, has been
completed, the results of which demonstrate Admiral’s
strong risk culture.
Andy Crossley
Chair of the Group Risk Committee
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Group Risk Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
156
Group Risk Committee governance
The Committee Chair reports to the Board on the
Committee’s proceedings after each meeting, and each
year presents a summary of the Committee’s activities
in a formal written report that is submitted to,
and discussed by, the Board.
The Committee is supported by the more granular
work undertaken by subsidiary Boards and / or executive
Risk Management Committees within the Group’s
operational entities.
To ensure that the Committee operates effectively,
it periodically reviews its performance (last reviewed in
January 2026) and at least annually reviews its constitution
and Terms of Reference (last reviewed in December 2025).
Any proposed changes are recommended to the Group
Board for approval.
In 2025, the Committee’s annual review of its performance
was externally facilitated by Bvalco Limited. As part of
the process, Bvalco observed a Committee meeting
and Committee members were interviewed and asked
a series of questions to support Bvalco’s assessment.
The Committee discussed the results of the 2025 Bvalco
review in February 2026 and concluded that the Committee
remained effective.
Areas of strength included the support and challenge
provided by the Committee to management, notably
strategic risk areas including cyber security, AI, and
transformation risk. Areas of development for 2026
included increased focus on the wider economy as part
of regular reporting, and further encouragement of quicker,
smarter root cause analysis.
Summary of key Group Risk Committee
activities in 2025
During the year, the Committee:
• Reviewed the Group’s risk framework, supported by
in-depth data on key risk indicators, and updates on
emerging risks, risk events and developments pertaining
to the individual Group entities, including Admiral Europe
Compañia De Seguros (‘AECS’), EUI, Admiral Money,
and Pioneer
• Monitored key financial ratios, and reviewed the Group’s
proposed dividend level, capital plan, and capital buffer
in line with the Group Capital Management Policy
• Considered stress and scenario testing of a number
of the Group’s most significant risk areas, and
recommended the 2025 Group ORSA Report for Board
approval prior to submission of the report to the regulator
• Received and challenged updates on customer outcomes
metrics and management information, supported by the
implementation of Consumer Duty
• Provided oversight with respect to actions taken in
response to the findings of the FCA’s multi-firm review
of total loss settlement practices, including challenging
management’s approach to calculating redress to ensure
good customer outcomes
• Reviewed and recommended for approval the Group
Reinsurance Policy, considering the adequacy of risk
mitigation measures and contingency planning
• Provided challenge and oversight to the Group’s
corporate insurance renewal, including on specific terms,
coverage and the premium payable
• Received regular updates on, and provided challenge in
relation to, key programmes of work including the Admiral
internal model (‘AIM’), the integration of the More Than
business and new business ventures
• Monitored risk reporting on climate change, including
the heightened risk of subsidence and the threat posed
to homes and vehicles in the UK and Europe
• Continued to oversee Admiral’s management of principal
risks and uncertainties, which are discussed further
on page 97.
Principal risks and uncertainties
The Board of Directors confirms that it has performed
a robust assessment of the Group’s principal and emerging
risks. These risks, along with explanations of how they are
being managed and mitigated, are included in the Strategic
Report, page 97.
Risk management and internal control systems
The system of risk management and internal control over
Admiral’s risks is designed to manage rather than eliminate
the risk of failure to achieve business objectives and of
breaches of risk appetites.
Furthermore, risk management can only provide reasonable
and not absolute assurance against material misstatement
or loss. The Group Board is ultimately responsible for the
Group’s system of risk management and internal control
and the Group Audit Committee (‘GAC’) has reviewed the
effectiveness of this system (a summary of GAC roles and
responsibilities, as well as key GAC activities in 2025 is
available on page 147).
As reported in the 2024 financial statements, in line with
the FCA’s multi-firm review into UK Motor Insurance total
loss claims valuations, Admiral has conducted a review
of its total loss and related processes, considering current
practice and customer outcomes in the recent past.
Primarily as a result of certain internal processes failing
to respond swiftly enough to evolving external factors,
including significant volatility in used car prices in recent
years, the review has concluded that some action is
required in respect of total loss settlements covering the
period 2019 to 2024. Remediation action and control
enhancements were implemented during 2024 and were
in effect throughout 2025.
The Group Board is of the view that there is an ongoing
process for identifying, evaluating, and managing the
Group’s risks and internal controls; that it has been in place
for the year ended 31 December 2025 and that it has
operated effectively; and that, up to the date of approval
of the Annual Report and Accounts, it has been regularly
reviewed by the Group Board.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Group Risk Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
157
The Group Board confirms that it has performed a robust
assessment of the Group's principal and emerging risks.
These risks, along with explanations of how they are being
managed and mitigated, are included in the Strategic
Report on page 97, with key risk factors impacting
Admiral being further discussed in the Group Risk
Committee (‘GRC’) report on page 154. The Group Board
is responsible for determining the nature and extent of
the principal risks it is willing to take in achieving its
strategic objectives. This assessment supports the Group
Board in monitoring the integrity of the Group’s reported
financial statements.
The Group Board has delegated the development,
implementation, and maintenance of the Group's overall risk
management framework to the GRC. The GRC reports on
its activities to the Group Board and the GAC, supporting
the overall opinion provided by the GAC that the Group's
internal control, risk management, and compliance systems
continue to operate effectively. Further details on the GAC’s
activities to support the process is outlined on page 151.
The Group Board has delegated to the GAC the review
of the adequacy and effectiveness of the Company’s
internal financial controls, and internal control and risk
management systems.
The Group operates a three lines of defence approach
to risk and internal control.
The first line of defence is the senior management teams
who have the day-to-day responsibility for implementing
policies for risk identification, assessment, and
management, and whose operational decisions must take
into account risk and how it can be controlled effectively.
The second line of defence is led by the Group Chief Risk
and Compliance Officer and comprises the Corporate
Governance functions and committees that are in place to
provide oversight of the effective operation of the internal
control framework across the Group. The Corporate
Governance functions facilitate the oversight and operation
of the policies and frameworks, covering risk management
and controls for the main risks to the Group. The Corporate
Governance functions perform second line reviews,
including reviews of the capital modelling and business
planning processes to support the Group Board’s
assessment of the Group’s ongoing viability. Regular
reviews of risks are undertaken in conjunction with senior
management, with the results of these reviews reported
to the appropriate governance forums and boards.
The third line of defence comprises the independent
assurance provided by the Group Internal Audit function,
overseen by the GAC. Internal Audit undertakes a
programme of risk-based audits covering aspects of both
the first and second lines of defence. The findings from
these audits are reported to the three lines of defence,
i.e., management, the executive and oversight committees,
and the GAC.
The subsidiary boards, GRC, and entity risk and audit
committees receive reports setting out key performance
and risk indicators, reviews of crystallised risk events and
also consider possible control issues brought to their
attention by early warning mechanisms that are embedded
within the operational units. They, together with the GAC,
also receive relevant reports from the Internal Audit
function, which include recommendations for improvement
of the control and operational environments.
A project is ongoing within the business to continue
to mature the risk management and internal control
frameworks, which has included streamlining Group
minimum control standards and policy requirements into
a single holistic structure. Other benefits in scope include
strengthening the evidence over control effectiveness and
increasing the volumes tested, with the overall aim to build
on the existing strong frameworks and provide further
comfort that the risk management and internal control
systems continue to remain effective.
The Chair of the GRC provides a written report to the Group
Board of the activities carried out by the Committee on an
annual basis (a summary of GRC roles and responsibilities,
as well as key GRC activities in 2025 is available on page
154). In addition, the Group Board receives regular reports
throughout the year from the Chairs of the GRC and GAC
as to their activities, together with copies of the minutes
from subsidiary board meetings, the GRC, and the GAC.
In addition to the above reviews and processes, the
GAC’s ability to provide an opinion to the Group Board is
supported by the provision of periodic and independent
confirmation, primarily by Group Internal Audit, that the
controls established by management are operating
effectively and where necessary provides a high-level
challenge to the steps being taken by the GRC to
implement the risk management framework.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Group Risk Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
158
Ensuring strong alignment
between remuneration
arrangements and our
strategy and purpose.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Remuneration Committee report
Admiral Group Plc Annual Report and Accounts 2025
159
Membership
• Karen Green (Chair)
• Michael Brierley
• Justine Roberts (left 18 June 2025)
• Paola Bonomo (joined 12 May 2025).
Roles and responsibilities
The Committee sets the Group’s Remuneration
Policy and, through the authority delegated to it by
the Board, the Committee is responsible for making
recommendations to the Board on the implementation
of the Remuneration Policy. Its remit includes
recommending the remuneration of the Group Board
Chair and the Executive Directors; approving the
remuneration of senior management; and determining
the composition of, and awards made under,
the performance-related incentive schemes.
Full Terms of Reference of the Committee
can be found on our website:
Board governance | Admiral Group Plc
Remuneration Committee at a glance
2025 highlights
• Group CFO and other senior management
appointment arrangements
• The implementation of a major reward
transformation project in the UK
• Senior management pay oversight, including setting
pay and determining incentive outcomes, and
incentive target setting
• Ensuring regulatory compliance and maintaining
good governance and oversight
• A full account of the Committee’s 2025 activities
can be found on page 174.
2026 priorities
• 2027 Directors’ Remuneration Policy
• Preparation for EU Pay Transparency ahead
of directive implementation in June 2026
• Ensuring the broader reward proposition for
all colleagues remains fair and appropriate.
“The remuneration outcomes for 2025 are
reflective of a very successful year for Admiral.
Alignment between remuneration arrangements
and our strategy and purpose remains a key
focus for the Remuneration Committee.”
Karen Green
Chair of the Remuneration Committee
Dear shareholder,
On behalf of the Remuneration Committee,
I am pleased to present the Directors’
Remuneration Report for the year ended
31 December 2025.
I would like to thank shareholders for supporting Admiral’s
Annual Report on Remuneration at the April 2025 AGM with
a vote of 91.25% .
2025 business context
2025 has been another year of strong performance,
demonstrated by a record profit of £957.9 million.
This record profit – delivered in a softer than expected
UK motor market – is underpinned by active cost
management, maintained discipline and a focus on
delivering good customer service. Other highlights include
UK Motor business increasing profit by 7% and pleasing
growth in UK Household and Travel. UK lending profit
doubled and progress in Europe continues, highlighted
by a 15% growth in France’s Motor book and a £25 million
swing to profit in Italy.
Remuneration for 2025
Taking into account the approved remuneration structure,
and Admiral’s business performance, the Committee made
the following decisions during 2025.
2023–2025 Discretionary Free Shares Scheme
(‘DFSS’)
Based on our performance for the period 2023–2025,
94.44% of the DFSS award granted in 2023 will vest
to Milena Mondini de Focatiis and Geraint Jones.
The full details of the vesting outcomes are on page 176.
2025 Annual Bonus Plan (‘ABP’)
The formulaic outcome for the 2025 Annual Bonus Plan
scorecard was 85.76% of maximum, which reflects strong
profit outcomes and high CRMI from across the Group.
In line with the plan design, the Committee undertook a
holistic review, and reflecting on key data, determined that
an outcome of 85.76% of maximum was commensurate
with performance and no discretion was applied to adjust
the outcome. Milena Mondini de Focatiis and Geraint Jones
will receive an Annual Bonus Plan award of £1,367,392 and
£849,024 respectively, of which 40% will be subject to
deferral into Admiral Group shares for three years. The full
details of the Annual Bonus Plan calculations and
considerations are set out on page 163.
2025 DFSS award
On 23 September 2025, Milena Mondini de Focatiis was
granted an award of 100,000 shares and Geraint Jones
was granted an award of 57,500 shares under the DFSS.
Using the closing share price on the date of the grant of
£32.90, this is the equivalent to £3,290,000 or 413% of
Milena’s base salary and £1,891,750 or 382% of Geraint’s
base salary respectively.
The awards will vest based on:
• EPS – 25% weighting
• TSR vs. FTSE 100 and insurance peer comparator groups
– 25% weighting
• RoE – 25% weighting
• Non-financial performance measures including Strategy,
Customer and ESG – 25% weighting.
There will also be the potential for downwards adjustment
subject to an assessment, which will take account of risk
events considered to have a material customer, regulatory
or financial impact over the course of the performance
period. Further details can be found on page 176.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Remuneration Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
160
2026 remuneration arrangements
Executive Director remuneration arrangements for 2026 will
operate in line with the 2024 Remuneration Policy, subject
to shareholder vote at the AGM.
We propose to increase Milena Mondini de Focatiis’ salary
by 12.27% to £895,000 and Geraint Jones’s salary by 3.03%
to £510,000, effective from 1 January 2026. For Milena,
the Committee intends that this increase is a one-off salary
adjustment to align her base pay with the lower quartile
of comparator peers groups. It is expected that future
increases will be broadly aligned with the wider workforce.
For Geraint, the increase is in line with the average increase
for UK staff generally, which is anticipated to be around 3.7%.
We propose that Milena Mondini de Focatiis be granted
an award of 105,000 shares and Geraint Jones be granted
an award of 57,500 shares under the DFSS for 2026. The
Committee will review these awards prior to the September
grant date to ensure the quantum remains appropriate.
Rachel Lewis has been announced as the Group Chief
Financial Officer, effective from 1 July 2026. Her salary
on appointment will be £475,000. She will be awarded a
2026 DFSS award of 45,000 shares, and she will be eligible
to participate in the ED ABP with an opportunity of 0-200%
of base pay from the date of appointment.
Full detail of the setting of 2026 remuneration for Executive
Directors can be found on page 181.
The Committee reviewed the metrics that will apply
to DFSS and Annual Bonus Plan awards for 2026.
Further details are shown on page 182.
Review of Remuneration Policy
A refreshed Remuneration Policy is due to be put to a
shareholder vote at the AGM in 2027. Over the coming
year, the Committee intends to review the current Policy
in detail to ensure that it continues to meet the needs
of the business and enables us to attract, retain and
motivate talented executives and align remuneration with
performance and the experience of our shareholders.
I look forward to engaging with shareholders as we develop
any proposals in more detail.
In summary
The Annual Report on Remuneration will be put to an
advisory shareholder vote at the 2026 AGM. The
Committee and I hope that you vote in favour of the report.
I am happy to discuss any aspect of our Annual Report on
Remuneration with shareholders.
Karen Green
Chair of the Remuneration Committee
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Remuneration Committee report continued
Admiral Group Plc Annual Report and Accounts 2025
161
How did we perform during 2025?1
Profit:
£957.9m
(2024: £826.5m)
Earnings per share (pence):
247.4p
(2024: 212.8p)
Return on equity (%):
53%
(2024: 56%)
Full-year dividend per share (pence):
205p
(2024: 192.0p)
One-year TSR:
31.67%
(2024: 6.36%)
1 Continued operations only, all prior-year comparatives restated to exclude discontinued operations relating to the sale of Elephant.
How are remuneration outcomes linked to Group purpose and strategy?
The table below details how each of the performance measures link to our Group purpose and strategy.
Group purpose
Strategy
Performance measures
Great
customer
experience
Successful
business
Positive
impact on
society
Great place
to work
Accelerating
to Admiral
2.0
Diversification
Evolution
of Motor
Financial
performance
EPS
ROE
TSR
Non-financial
performance
Strategic assessment
Customer feedback
Customer outcomes
Trust Index
Diversity
Inclusion
Carbon emissions
The Committee is dedicated to ensuring remuneration outcomes for the Executive Directors are strongly linked with
performance and are aligned to the Group purpose, strategic priorities, and shareholders’ interests. Variable pay is subject
to stretching performance outcomes and is delivered primarily through shares to ensure a long-term focus and alignment
with shareholders.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Remuneration at a glance
Admiral Group Plc Annual Report and Accounts 2025
162
“I would like to thank
shareholders for
supporting the Annual
Report on Remuneration
at the April 2025 AGM
with a vote of 91.25%.”
Karen Green
Chair of the Remuneration Committee
Overview of the Directors’ Remuneration Policy
The following chart shows the operation of the key elements
of the Directors’ Remuneration Policy for the 2025
performance year:
Y1
Y2
Y3
Y4
Y5
Base salary
Pension, Benefits &
Share Incentive Plan
(‘SIP’)
Annual Bonus Plan
DFSS
40% deferred into shares
holding period
performance period
How was performance determined in 2025?
DFSS awards vesting on performance to 31 December 2025
A summary of the outcomes for the Executive Directors in respect of the 2023 DFSS award:
Performance range
Performance
measure
Weighting
Threshold
Stretch
Maximum
Outcome
Outcome as %
maximum
Weighted
outcome
EPS
26.67%
Growth of
0%
Growth of
10%
Growth of
30%
98.00%
100.00%
26.67%
TSR vs. FTSE350
26.67%
Median
Upper
Quartile
73rd
percentile
94.00%
25.07%
Return on Equity
26.67%
25.00%
35.00%
45.00%
48.39%
100.00%
26.67%
Financial
80.00%
98.00%
78.40%
Non-financial
performance
20.00%
Strategy, Customer and ESG measures,
measured over three years
80.20%
80.20%
16.04%
Overall vesting
94.44%
2025 Annual Bonus Plan
A summary of the 2025 ABP outcomes for the Executive Directors:
Measure
Weighting
Threshold
Target
Maximum
2025 outcome
Outcome (%
max)
Weighted
outcome
Profit
67.50%
£737m
£819m
£901m
957.9m
100.00%
67.50%
Turnover growth
7.50%
–%
2.00%
4.00%
(0.90)%
—%
—%
NPS
8.33%
Weighted customer outcome scores from
across the Group entities
95.48%
7.95%
CRMI
8.33%
73.70%
6.14%
Trust Index
8.34%
5% under
benchmark
2% under
benchmark
At
benchmark
(2.00)%
50.00%
4.17%
Formulaic total
85.76%
Committee
adjustment
–%
Final outcome
85.76%
The Committee did not apply discretion to the outcome of the performance measures.
What did our Executive Directors earn in 2025?
• Pension, benefits and SIP include the 2025 pension contribution of £51,986 and £33,835 for the CEO and CFO,
respectively
• ABP of £1,367,392 and £849,024 for the CEO and CFO
• DFSS value for the CEO and CFO relates to 94.44% of their 2023 DFSS awards vesting.
Key
Salary
Pension and Benefits
Annual Bonus Plan
DFSS
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Remuneration at a glance continued
Admiral Group Plc Annual Report and Accounts 2025
163
797,220
495,000
1,367,392
849,024
2,732,621
1,594,029
CEO
CFO
51,968
33,835
A
B
C
D
A
B
C
D
Compliance Statement
This Remuneration Report has been prepared according
to the requirements of the Companies Act 2006 (the ‘Act’),
Regulation 11 and Schedule 8 of the Large and Medium-
Sized Companies and Groups (Accounts and Reports)
(Amendment) Regulations 2018, the Companies (Directors’
Remuneration Policy and Directors’ Remuneration Report)
Regulations 2019 and other relevant requirements of the
FCA Listing Rules. In addition, the Board has adopted the
principles of good corporate governance set out in the UK
Corporate Governance Code (the ‘Code’) and the guidelines
issued by its leading shareholders and bodies such as ISS,
the Investment Association, and the Pensions and Lifetime
Savings Association.
Unless otherwise stated, information contained within this
Remuneration Report is unaudited.
The following Remuneration Policy (the ‘2024 Policy’) was
supported by a shareholder vote of 90.38% and came into
effect from the April 2024 AGM.
Key principles of Admiral
remuneration arrangements
The Group is committed to maximising shareholder value
over time in a way that also promotes effective risk
management and excellent customer outcomes while
ensuring that there is a strong link between performance and
reward. This is reflected in the Group’s stated Remuneration
Policy of paying competitive, performance-linked and
shareholder-aligned total remuneration packages.
These comprise basic salaries coupled with participation in
performance-based share schemes to generate competitive
total reward packages for superior performance.
This policy was reviewed in 2023 as part of the usual three-
year cycle and was approved at the 2024 AGM.
The Board is satisfied that the 2024 Policy continues to
meet the objectives of attracting and retaining high-quality
executives across the Group.
The Committee reviews the remuneration framework
and packages of the Executive Directors and senior
managers and recognises the need to ensure that the
Remuneration Policy is firmly linked to the Group’s strategy,
including its risk management approach. In setting the
Policy and making remuneration decisions, the Committee
takes into account pay and conditions elsewhere in the
Group. The main principles underlying the Remuneration
Policy are:
• Competitive total package – the Group aims to deliver
total remuneration packages that are market-competitive,
taking into account the role, job size, responsibility, and
the individual’s performance and effectiveness. Prevailing
market and economic conditions and developments in
governance are also considered, as are general salary
levels throughout the organisation. There is sufficient
opportunity within the variable pay of Executive Directors
to reward outstanding levels of performance, taking into
account the market context, with upper-quartile
remuneration outcomes (see page 181 for 2026
remuneration positioning)
• Significantly share-based – our base salaries are
typically targeted towards the lower end of the market
but are combined with meaningful annual share awards
that vest on long-term performance to ensure strong
alignment with shareholders and the long-term interests
of the Group. Executives are also encouraged to build up
significant shareholdings in the Group to maximise
shareholder alignment
• Long-term perspective – a significant part of senior
executives’ remuneration is based on the achievement
of appropriate but stretching performance targets that
support the delivery of the Group’s strategy and
shareholder value. The extended performance and
vesting horizons promote a long-term perspective that
is appropriate to the insurance sector
• Effective risk management – incentives are designed
to ensure they do not encourage excessive risk-taking.
They are aligned with the delivery of positive customer
outcomes, and reinforce the Group’s risk policy
• Open and honest culture – the Group has a strong
culture of focusing on collective success, whilst
recognising individual contribution to the Group’s
performance, and this is reflected in our remuneration
structure across the business
• Transparency for stakeholders – the remuneration
structure is designed to be easy to understand, and
all aspects are openly communicated to employees,
shareholders, and regulators.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ Remuneration Policy
Admiral Group Plc Annual Report and Accounts 2025
164
Remuneration Policy table
This table describes the key components of the remuneration arrangements for Executive Directors.
Purpose and link to strategy
Operation
Opportunity and performance metrics
Base salary
To attract and retain
talent by setting
base salaries at levels
appropriate for
the business.
Salaries are reviewed annually or following
a significant change in responsibilities.
Salary levels / increases take account of:
• Scope and responsibility of the position
• Individual performance and
effectiveness, and experience of the
individual in the role
• Average increase awarded across
the Group.
Any salary increases are applied in line with
the outcome of the review.
For current Executive Directors, increases
in cash salary will not normally exceed the
increase for the general employee
population over the term of this Policy.
More significant increases may be awarded
in certain circumstances including, but not
limited to: where there has been a
significant increase in role size or
complexity, to apply salary progression for
a newly appointed Executive Director, or
where the Executive Director’s salary has
fallen significantly behind market.
Where increases are awarded in excess
of that for the general employee population,
the Committee will provide the rationale
in the relevant year’s Annual Report on
Remuneration.
Pension
To provide
retirement benefits.
The Group operates a Personal Pension
Plan, a Defined Contribution Scheme.
This is available to all employees following
completion of their probationary period.
Executive Directors receive an employer
contribution consistent with that received
by UK employees (currently matched
contribution up to 6% of base salary) or the
equivalent value in cash where appropriate.
Base salary is the only element of
remuneration that is pensionable.
The pension provision and rules are the
same for Executive Directors and the main
body of UK staff.
Other benefits
To provide
competitive benefits.
Includes (but not limited to):
• Death in service scheme
• Private medical cover
• Permanent health insurance
• Relocation, at the Committee’s discretion.
All benefits are non-pensionable.
Benefits may vary by role.
None of the existing Executive Directors
received total taxable benefits exceeding
5% of base salary during the most recent
financial year, and it is not anticipated that
the cost of benefits provided will exceed
this level over the term of this Policy.
The Committee retains the discretion
to approve a higher cost in exceptional
circumstances (e.g. relocation), or in
circumstances driven by factors outside the
Company’s control (e.g. material increases
in healthcare insurance premiums).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ Remuneration Policy continued
Admiral Group Plc Annual Report and Accounts 2025
165
Purpose and link to strategy
Operation
Opportunity and performance metrics
Annual bonus
To motivate and reward
the delivery of stretching
near-term financial and
non-financial targets
based on the business
strategy.
Bonus payments are determined after
the year-end and will be based on
performance achieved against targets
over the financial year.
Forty percent of any bonus will be deferred
into shares for a period of three years,
with the remaining portion paid in cash.
Any bonus earned is non-pensionable.
Where any bonus is deferred, dividend
equivalent shares may be accrued on
awards during the deferral period, only
receivable on shares that vest at the end
of the period.
Bonus payouts are subject to a potential
downwards adjustment based on an
assessment of risk events considered
to have a significant customer, regulatory
or financial impact over the course of the
performance period.
Bonus payouts are subject to malus and
clawback provisions, i.e. forfeiture or
reduction of unvested awards and recovery
of vested awards. Events which may lead
to the application of malus and clawback are
set out in the Group’s Malus and Clawback
Framework and include material financial
misstatement, responsibility for conduct
which results in significant losses, material
failure of risk management, misconduct,
reputational damage and corporate failure.
The Remuneration Committee has discretion
– within the constraints of local legislation –
to adjust the formulaic vesting outcome
to ensure the final outcome is a fair and
true reflection of underlying business
performance, both financial and
non-financial.
Maximum annual bonus potential for
Executive Directors is 200% of base salary.
For a Threshold level of performance,
a bonus of 25% of the maximum potential
award is payable and for Target
performance 50% of Maximum is payable.
Bonuses will be based on a combination
of financial and non-financial performance
targets. The Committee has the ability
to determine the relevant metrics,
weightings and targets each year based
on evolving business priorities.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ Remuneration Policy continued
Admiral Group Plc Annual Report and Accounts 2025
166
Plan
Operation
Opportunity and performance metrics
Discretionary Free Share
Scheme (‘DFSS’)
To motivate and reward
longer term performance,
aid long-term retention of
key executive talent, use
capital efficiently, grow
profits sustainably and
further strengthen the
alignment of the interests
of shareholders and staff.
Executive Directors may be granted awards
annually at the discretion of the Committee.
Awards may be in the form of nil or nominal
priced options or conditional shares.
Awards are normally granted on an annual
basis and vest after a minimum of three
years subject to Group performance and
continued employment.
A two-year holding period applies to vested
awards, during which time Executive
Directors may not sell the vested awards
except to cover tax liabilities.
Awards are subject to a potential
downwards adjustment based on an
assessment of risk events considered to
have a material customer, regulatory or
financial impact over the course of the
performance period.
Awards are subject to malus and clawback
provisions, i.e. forfeiture or reduction of
unvested awards and recovery of vested
awards. Events, that may lead to the
application of malus and clawback, are set
out in the Group’s Malus and Clawback
Framework and include material financial
misstatement, responsibility for conduct
which results in significant losses, material
failure of risk management, misconduct,
reputational damage, and corporate failure.
The Remuneration Committee has
discretion – within the constraints of
local legislation – to adjust the formulaic
vesting outcome to ensure the final
outcome is a fair and true reflection
of underlying business performance,
both financial and non-financial.
Dividend equivalent shares may be accrued
on awards during the vesting period, only
receivable on shares that vest at the end
of the period.
Maximum opportunity: A maximum face
value on award of 500% of base salary
applies. Threshold performance will result in
vesting of up to 25% of the maximum award.
DFSS shares are granted as a fixed number
of shares (subject to the quantum limits of
the plan, as described above). The number
granted is reviewed and may be adjusted
by the Committee, for example, if there has
been a significant change in share price.
Vesting of DFSS awards is subject to the
Group’s performance over a three-year
performance period. The performance
measures may include EPS growth, ROE,
relative TSR and a scorecard of Non-
Financial metrics selected by the
Committee. Details of the measures,
weightings and performance targets
used for specific DFSS grants are included
in the relevant year’s Annual Report on
Remuneration.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ Remuneration Policy continued
Admiral Group Plc Annual Report and Accounts 2025
167
Purpose and link to strategy
Operation
Opportunity and performance metrics
Approved Free Share
Incentive Plan (‘SIP’)
To encourage share
ownership across all
employees, using HMRC-
approved schemes for
eligible UK employees.
All eligible UK employees participate in the
SIP after completing a minimum of 12-
months’ service. Grants are made twice a
year based on the results of each half-year
and vest after three years subject to
continued employment.
The SIP is an all-employee scheme and
Executive Directors participate on the same
terms as other employees. The acquisition
of shares is, therefore, not subject to the
satisfaction of a performance target.
Maximum opportunity is in line with
HMRC limits.
In-employment
shareholding
requirement
To align interests of
Executive Directors
with shareholders.
Guideline to be met within five years
of an Executive Director’s appointment.
400% of base salary.
Post-termination
shareholding
requirement
To further align the
interests of Executive
Directors with
shareholders and
encourage a focus on
long-term sustainable
performance.
Shareholding required to be maintained
at the in-employment requirement
(or number of shares held at time of
termination, if lower) for a period of two
years post termination.
400% of base salary (or number of shares
held at time of termination, if lower).
The Committee is satisfied that the Remuneration Policy is in the best interests of shareholders and does not promote
excessive risk-taking. The Committee retains discretion to make changes required to satisfy legal or regulatory requirements
and other non-significant changes to the Remuneration Policy without reverting to shareholders.
Notes to the Remuneration Policy table
Payments from existing awards
Executive Directors are eligible to receive payment from any award made prior to the approval and implementation of the
2024 Remuneration Policy. This includes all outstanding awards under the previous 2018 and 2021 Remuneration Policies,
or any awards made prior to appointment to the Board. Details of any such payments will be set out in the Annual Report
on Remuneration as they arise.
Selection of performance measures
Vesting under the DFSS is linked to the following financial measures: EPS growth, ROE, and relative TSR.
EPS growth has been selected as a performance measure as the Committee feels it is a strong indicator of both long-term
shareholder return and the underlying financial performance of the business. It is transparent and highly visible to executives.
ROE has been selected as the Committee believes that a returns metric reinforces the focus on capital efficiency
and delivery of strong returns for our shareholders, thereby further strengthening the alignment of incentives with
Admiral’s strategy.
Relative TSR has been selected to reflect value creation for Admiral’s shareholders as compared to comparative
equity investments.
Vesting of DFSS awards is also linked to non-financial measures, which may include strategic, customer and other
measures. The Committee believes that the additional emphasis on these measures reinforces Admiral’s focus on
our customers and on other non-financial Group priorities, whilst also more clearly demonstrating alignment of Group
remuneration practices with the requirements of Solvency II.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ Remuneration Policy continued
Admiral Group Plc Annual Report and Accounts 2025
168
The specific performance measures and their respective weightings for each DFSS award may vary to reflect the strategic
priorities at the time of the award.
For the annual bonus, forward-looking performance measures, weightings and targets are selected near the start of the year
covering financial and non-financial measures to align with the Group’s strategic objectives.
Performance targets are set taking into account the Company’s strategic priorities and the economic environment in which
the Company operates. The Committee believes the performance targets are stretching and motivational, and that
maximum outcomes are available only for outstanding performance.
Remuneration Policy for other employees
The Company’s approach to annual salary reviews is consistent across the Group, with consideration given to the role size,
complexity, experience required, individual performance and pay levels in comparable companies.
In general, the Remuneration Policy, which applies to other senior executives is consistent with that for Executive Directors.
Remuneration is typically linked to Company and individual performance in a way that reinforces shareholder value creation.
Around 4,600 employees from across the Group, including the Executive Directors, participate in the DFSS. The Committee
determines DFSS awards for those executives within its remit and on an aggregate basis for all other participants in the
DFSS. For the Executive Directors, all DFSS share awards are subject to performance conditions. For other senior managers
and employees, a proportion of awards (ranging from half to two-thirds) are subject to performance, with performance
conditions either in line with those described above, and the remainder has no performance conditions attached other than
the requirement that the recipient remains an employee of the Group at the date of vesting. Award sizes vary by
organisational level and an assessment of both financial and non-financial performance.
Most holders of DFSS awards receive a DFSS cash bonus, which is equivalent to the dividend on unvested DFSS share
awards. The bonus for a number of senior managers is adjusted for performance against a scorecard of customer and other
non-financial metrics.
The Company operates a personal pension scheme, which is available to all employees once they have completed their
probationary period. For all employees, including the Executive Directors, the Company matches the employee contribution
up to a maximum of 6% of salary or provides the equivalent value in cash.
All UK employees who have served a minimum tenure at Admiral are eligible to participate in the SIP on the same terms.
Most overseas employees receive an equivalent award to the UK SIP awards and these awards have no performance
measures attached.
Service contracts and leaver / change of control provisions
The Company’s Policy is to limit payments upon termination of employment to pre-established contractual arrangements.
In the event that the employment of an Executive Director is terminated, any compensation payable will be determined
in accordance with the terms of the service contract between the Company and the employee, as well as the rules of any
incentive plans. Under normal circumstances, Executive Directors are entitled to receive termination payments in lieu of
notice based on base salary and compensation for loss of benefits. The Company has the ability to pay such sums in
instalments. The notice period for all Executive Directors is one year.
Executive Director
Date of appointment
Contract duration
Geraint Jones
13 August 2014
Rolling contract, 12-month notice period
Milena Mondini de Focatiis
11 August 2020
Rolling contract, 12-month notice period
There is no provision in the Executive Directors’ contracts for compensation to be payable on early termination of their
contract over and above the notice period element. The Executive Directors’ service contracts are available to view at the
Company’s registered office.
When considering termination payments, the Committee reviews all potential incentive outcomes to ensure they are fair
to both shareholders and participants. The following table summarises how the awards under the DFSS and Annual Bonus
scheme are typically treated in specific circumstances, with the final treatment remaining subject to the Committee’s
discretion.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ Remuneration Policy continued
Admiral Group Plc Annual Report and Accounts 2025
169
Plan
Scenario
Treatment of awards
Timing of vesting
DFSS
Resignation
Awards lapse under most circumstances
e.g. dismissal for cause or resignation.
n/a
Death, injury or disability,
redundancy, retirement, or any
other reasons the Committee
may determine
Any unvested award will be pro-rated for
time with reference to the proportion of
the vesting period remaining at termination
(2024 and prior), performance period (2025
onwards), and performance, unless the
Committee determines otherwise.
Normal vesting date
Change of control
Any unvested award will be pro-rated for
time with reference to the proportion of
the vesting period remaining at termination
(2024 and prior), performance period (2025
onwards), and performance, unless the
Committee determines otherwise.
Immediately
Annual Bonus
Plan
Resignation
Eligibility forfeited under most
circumstances, e.g. dismissal for cause
or resignation.
n/a
Death, injury or disability,
redundancy, retirement, or any
other reasons the Committee
may determine
Any bonus payable will be pro-rated for
time with reference to the portion of the
performance period remaining at
termination, and performance, unless
otherwise determined at the discretion
of the Committee.
Normal payment
date
Change of control
Unless the Committee determines
otherwise, any bonus eligibility will be
pro-rated for time with reference to the
proportion of the performance period
remaining at change of control, and extent
to which the Committee determines that the
performance conditions have been met or
are likely to be met at the point of change
of control.
Immediately
For all leavers (with the exception of termination for cause), vested DFSS awards that are still subject to a holding period
will normally be released in full at the end of the holding period, though the Committee has discretion to determine
otherwise, taking into account relevant circumstances.
Malus and clawback
The circumstances when malus (the reduction or forfeiture of unvested shares awarded under the DFSS or ABP) and
clawback (the recovery of cash and share awards after release) may apply include – but are not limited to – where the
Committee considers the employee concerned has been involved in, or is either wholly or partially responsible for:
• Circumstances such as dishonesty, fraud, misrepresentation or breach of trust which lead to summary dismissal;
• Breach of conduct or disciplinary action relating to conduct, including participation in, or being responsible for, conduct
resulting in significant losses to part of the Group or damage to the Group’s brand or other employees or other conduct
which is considered to be misconduct;
• The Group has become aware of any material wrongdoing on the part of an employee;
• An employee has acted in a manner which has brought or is likely to bring any member of the Group into material dispute
(e.g., supplier dispute), results in reputational damage or is materially adverse to the interests of any member of the Group;
• An employee’s terms and conditions of employment are materially breached, or material breach of a fiduciary duty owed
to any member of the Group;
• Material violation of relevant Group / entity policy, rules or regulation, or a failure to meet appropriate standards of fitness
and propriety;
• Material failure of risk management resulting in adverse customer / business / shareholder outcomes;
• The failure of all, or a substantial part, of the business of Admiral Group;
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ Remuneration Policy continued
Admiral Group Plc Annual Report and Accounts 2025
170
• Inaccurate reporting of accounts, financial data or other information, which in the RemCo’s opinion results in either material
misstatement and / or requires any future accounts, financial data or information to be subject to write-downs,
adjustments or other corrective items addressing the inaccuracy; and
• A trend / cluster where the individual triggers may, in isolation, not warrant adjustment, however, when viewed
cumulatively evidence an applicable customer or business impact.
The application of malus will be possible over the relevant performance period and deferral / holding period. The application
of clawback will be possible for a period of two years from the end of the relevant performance period. The Committee
considers this to be fair and proportionate, and aligned to the long-term focus of remuneration outcomes.
The malus and clawback provisions were not used in respect of the Executive Directors’ 2025 remuneration outcomes.
Non-Executive Directors
The Company has entered into letters of appointment with its Non-Executive Directors (‘NEDs’). Summary details of terms
and notice periods are included below.
NED
Term
Initial date of
appointment
Commencement of
current contract
Notice period
Mike Rogers
3 years
01/02/2023
01/02/2023
Three months
Justine Roberts (left 18 June 2025)
3 years
17/06/2016
17/06/2023
One month
Andrew Crossley
3 years
27/02/2018
27/02/2024
One month
Michael Brierley
3 years
05/10/2018
05/10/2024
One month
Karen Green
3 years
14/12/2018
14/12/2024
One month
Jayaprakasa Rangaswami
3 years
29/04/2020
29/04/2023
One month
Evelyn Bourke
3 years
30/04/2021
30/04/2024
One month
Bill Roberts
3 years
11/06/2021
11/06/2024
One month
Fiona Muldoon
3 years
02/10/2023
02/10/2023
One month
Paola Bonomo
3 years
12/05/2025
12/05/2025
One month
Carlos Selonke De Souza
3 years
10/12/2025
10/12/2025
One month
The NEDs are not eligible to participate in the SIP, DFSS or Annual Bonus scheme and do not receive any pension
contributions.
Details of the 2024 Policy on NED fees are set out in the table below:
Purpose and link
to strategy
Operation
Opportunity and performance metrics
To attract and retain
NEDs of the highest
calibre with experience
relevant to the
Company
Fees are reviewed annually.
The Group Chair fee is determined by the
Committee after consultation with the
Executive Directors. The NED fees are
determined by the Group Chair together
with the Executive Directors.
Additional fees are payable for acting as
Senior Independent Director or as Chair or
member of a Board Committee and may be
payable as appropriate in relation to other
additional responsibilities (e.g. attending
meetings overseas).
Fees are paid in cash for all Non-Executive
Directors1. The Board retains discretion to vary
the mix or determine that fees are paid entirely
in cash or Company shares.
Fee levels are set by reference to NED fees
at companies of a similar size and complexity.
In the event that there is a material misalignment
with the market or a change in the complexity,
responsibility or time commitment required to
fulfil a NED role, the Board has discretion to
make an appropriate adjustment to the fee level.
The maximum aggregate annual fee for NEDs
is capped at the limit provided for in the
Company’s Articles of Association.
1 In prior versions of this table, it was detailed that the Chair’s fee was paid in a mix of cash and shares. This has been updated to reflect
the correct positioning that all fees are paid in cash. In 2023, the Chair entered into a Share Acquisition Agreement with the Group, and
buys shares on an annual basis equal to 30% of the gross fee until a shareholding of 150% of the fee is achieved. The Chair’s shareholding
for the year ended 31 December 2025 is outlined on page 190.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ Remuneration Policy continued
Admiral Group Plc Annual Report and Accounts 2025
171
£541,134
£541,134
£541,134
£541,134
£0
£924,313
£1,848,625
£2,772,938
Minimum
On-target
Maximum
Maximum
with
share
price
growth
£0
£1,000,000
£2,000,000
£3,000,000
£4,000,000
£5,000,000
£6,000,000
£7,000,000
£8,000,000
Group CEO
Group CFO
Key
Fixed remuneration
Annual Bonus
DFSS
Pay-for-performance: scenario analysis
The following charts provide an estimate of the potential future reward opportunities for the Executive Directors, and the
potential split between the different elements of pay under different performance scenarios in a given year.
The value of DFSS awards is calculated based on the average share price in the last three months of 2025 of £32.15 and the
number of DFSS shares to be awarded in 2026 (105,000 and 57,500 shares respectively).
The performance scenarios are based on the following assumptions:
Fixed remuneration
Comprising the 2026 base salary, benefits (based on the annualised 2025 single
figure for the Group CEO and CFO) and a 6% pension contribution (uncapped).
Target remuneration
Fixed remuneration plus the value of the Annual Bonus and DFSS achieving on-target
performance of 50% of maximum.
Maximum remuneration
Fixed remuneration plus the value of the Annual Bonus and DFSS achieving
maximum performance.
Maximum remuneration with
50% share price appreciation
Maximum remuneration increased to assume a 50% increase to the value of the
shares granted under the DFSS since the point of grant.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ Remuneration Policy continued
Admiral Group Plc Annual Report and Accounts 2025
172
Minimum
On-target
Maximum
Maximum
with share
price
growth
Minimum
On-target
Maximum
Maximum
with share
price
growth
65%
C
23%
B
12%
A
55%
C
29%
B
16%
A
48%
C
27%
A
100%
A
25%
B
100%
A
27%
A
16%
A
26%
B
30%
B
24%
B
47%
C
54%
C
64%
C
12%
A
Approach to remuneration relating to new Executive Director appointments
External appointments
When appointing a new Executive Director, the Committee’s policy is to set the remuneration package for a new Executive
Director in accordance with the approved Remuneration Policy at the time of the appointment.
In determining the appropriate remuneration for a new Executive Director, the Committee will consider all relevant factors
to ensure that arrangements are in the best interests of the Company and its shareholders. Where an individual is appointed
on an initial base salary that is below market, any shortfall may be managed with phased increases over a period of time,
subject to the individual’s performance and development in the role. This may result in above-average salary increases
during this period.
The Committee may also make an award to ‘buy out’ incentive arrangements forfeited on leaving a previous employer.
In doing so, the Committee will consider relevant factors including any performance conditions attached to the forfeited
awards and the likelihood of those conditions being met to ensure that the value of the buy-out award is no greater than
estimated fair value of the awards it replaces. The Committee may also avail itself of Listing Rule 9.4.2 R if appropriate for the
buy-out of incentive arrangements (i.e. if the terms of participation for the prospective Executive Director are similar to all,
or substantially all employees who participate in the plan, then approval by ordinary resolution of the shareholders of the listed
company in general meeting is not required).
Internal appointments
Remuneration for new Executive Directors appointed by way of internal promotion will similarly be determined in line with
the Policy for external appointees, as detailed above. Where an individual has contractual commitments made prior to their
promotion to the Board, the Company will continue to honour these arrangements. Incentive opportunities for below-Board
employees are typically no higher than for Executive Directors, but measures may vary if necessary.
Other directorships
Executive Directors are permitted to accept appointments as Non-Executive Directors of companies with the prior approval
of the Group Board. Approval will be given only where the appointment does not present a conflict of interest with the
Group’s activities, and where the wider exposure gained will be beneficial to the development of the individual.
Considerations of conditions elsewhere in the Group
The Committee considers the pay and employment conditions elsewhere in the Group when determining remuneration
for Executive Directors.
Considerations of shareholder views
When determining remuneration, the Committee takes into account best practice guidelines issued by institutional
shareholder bodies. The Committee is open to feedback from shareholders on the Remuneration Policy. It will continue
to monitor trends and developments in corporate governance and market practice to ensure the remuneration structure
for our Executive Directors remains appropriate.
Considerations of regulatory requirements
The Committee regularly reviews the Remuneration Policy and structure in the context of Solvency II remuneration
guidance, and EBA, PRA, and FCA expectations regarding the supervision of insurance firms. The Group Chief Risk Officer
periodically attends Committee meetings as part of this process and provides support to the Committee in understanding
any risk-related implications of remuneration decisions. Whilst the Remuneration Policy includes several features, which help
ensure compliance with current regulatory guidance, the Committee reserves the discretion to adjust the Remuneration
Policy, and its execution, to take into account any developments in such regulatory guidance.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ Remuneration Policy continued
Admiral Group Plc Annual Report and Accounts 2025
173
This section of the report provides details of how Admiral’s Directors’ Remuneration Policy
was implemented in 2025 and how the Remuneration Committee intends to implement the
Policy in 2026.
Remuneration Committee membership in 2025
The Board sets the Group’s Remuneration Policy and, through the authority delegated to it by the Board, the Committee
is responsible for making recommendations to the Board on the implementation of the Remuneration Policy. Its remit includes
recommending the remuneration of the Group Board Chair and the Executive Directors; approving the remuneration of senior
management; and determining the composition of, and awards made under, the performance-related incentive schemes.
At the end of 2025, the Committee comprised Karen Green, Michael Brierley and Paola Bonomo. The Committee had six
scheduled meetings, and it also held a number of ad hoc / late notice meetings to deal with specific issues in a timely
manner.
The Group Chair, CEO, CFO and CRO are invited to meetings where the Committee considers it appropriate to obtain
their advice on Group strategy and performance and senior executive pay strategy. The Group CEO typically attends all
meetings. No Director is involved in deciding their own remuneration outcome. The members of the Committee do not have
any personal financial interests (other than shareholdings), or any conflicts, that relate to the business of the Committee.
The Committee members do not have any day-to-day involvement in the running of the Group.
Committee activities
During the year ended 31 December 2025, in addition to its regular activities, the Committee also:
• Reviewed the package for the incoming Group CFO (see page 182 for detail)
• Monitored the reward transformation activity in the UK
• Reviewed preparation for EU Pay Transparency ahead of the directive implementation in June 2026
• Approved Senior Management appointment arrangements.
As mentioned in the Governance Report, during the year ended 31 December 2025, the Committee also performed
its regular activities:
• Reviewed the DFSS vesting and bonus arrangements for Executive Directors, senior management and relevant staff
(Material Risk Takers) covered under Solvency II
• Reviewed Admiral’s Gender Pay Gap reporting statistics
• Reviewed risk events and considered their impact on variable pay outcomes in line with the Group’s Malus
and Clawback Framework
• Undertook an evaluation of the Committee’s performance during the year
• Reviewed the Committee’s Terms of Reference
• Reviewed the Group’s Malus and Clawback Framework
• Reviewed external remuneration trends and market conditions.
One of the key pieces of work undertaken this year was in relation to reward transformation in the UK, which centered around
putting in place a grading structure, associated pay ranges and ensuring colleagues were aligned with their respective
positioning. A feedback loop was put in place, and this work contributed to defining a talent-focused strategy for 2026.
Remuneration topics were discussed with employees at the Employee Consultation Group (‘ECG’), which met four times
during the year. Key themes raised included the implementation of a new reward framework, colleague pay and progression,
pensions awareness and elements of the wider benefits review. Throughout the year, ECG representatives provided
feedback on communication around the reward changes, the impact on pay structures and colleagues’ understanding of the
new framework.
The Chair of the Remuneration Committee wrote to investors outlining the 2026 implementation of the Remuneration Policy,
focusing on the rationale for the 2026 increase for the Group CEO. The letter outlined the remuneration principles, market
positioning and philosophy, and 2026 arrangements. Further, investors were invited to feed back their views and offered
meetings to discuss the approach. At the point of publication, several acknowledgements were received, but no meetings
were requested by shareholders. Details of the increase for the Group CEO are outlined on page 181.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration
Admiral Group Plc Annual Report and Accounts 2025
174
Committee effectiveness review
For 2025, the Committee’s effectiveness review was undertaken externally by Bvalco. The report observed strong feedback
for the Chair, noting strong improving trends to the support provided to the Committee.
The Committee noted the review’s observations and was satisfied it continues to operate effectively. To help improve
its performance over the coming year, the Committee highlighted the importance of continuing improvements to timeliness
and sequencing of papers, and management alignment.
Advisers to the Committee
During the year, to enable the Committee to reach informed decisions, we obtained advice on market data and trends
from independent consultants Willis Towers Watson (‘WTW’). WTW reported directly to the Committee Chair and are
signatories to, and abide by, the Code of Conduct for Remuneration Consultants (which can be found at
remunerationconsultantsgroup.com). WTW also provided advice to the Company in relation to capital management
and claims benchmarking.
The fees paid to WTW for work supporting the Committee in 2025 (based on time and materials) totalled £117,000.
The Committee reviews and satisfies itself that the advice provided by WTW is impartial and objective.
The table below shows the results of the advisory vote on the 2024 Annual Report on Remuneration.
For
Against
Total votes cast
Abstentions
2024 Directors' Remuneration Report – total
number of votes
232,915,412
22,348,329
255,263,741
29,690
% of votes cast
91.25%
8.75%
Total single figure of remuneration for Executive Directors (audited)
The table below sets out the total single figure remuneration received by each Executive Director for the years ended
31 December 2025 and 31 December 2024:
Executive
Director
1.
Base
salary
2.
Benefits
3.
Pension
Total
fixed pay
4.
SIP
5.
DFSS
6. ABP /
DFSS bonus
Total
variable pay
Total
remuneration
Milena
Mondini de
Focatiis
2025
797,220
534
47,833 845,587
3,601
2,732,621
1,367,392
4,103,614
4,949,201
2024
774,000
470
38,580 813,050
3,594
1,807,222
1,495,058
3,305,874
4,118,924
Geraint
Jones
2025
495,000
534
29,700 525,234
3,601 1,594,029
849,024
2,446,654
2,971,888
2024
465,000
470
24,675 490,145
3,594 1,054,206
898,194
1,955,994
2,446,139
The figures have been calculated as follows:
1 Base salary: amount earned for the year
2 Benefits: the taxable value of annual benefits received in the year, specifically this relates to private medical insurance.
3 Pension: the value of the Company’s contribution during the year
4 SIP: the face value at grant
5 DFSS: the value at vesting of shares vesting on performance over the three-year periods ending 31 December 2025
and 31 December 2024. For the 2025 figures, given that vesting occurs after the 2025 Directors’ Remuneration Report
is finalised, the figures are based on the average share price in the last three months of 2025 of £32.15. The 2024 figures
have been trued up based on the actual share price on vesting of £32.65. For 2025, favourable movements of £710,567
and £414,497 are included in the DFSS value, attributable to an increase in the share price over the vesting period for
Milena Mondini de Focatiis and Geraint Jones, respectively. For 2024, favourable movements of £763,770 and £445,530
are included in the DFSS value, attributable to a increase in the share price over the vesting period for Milena Mondini
de Focatiis and Geraint Jones, respectively
6 The 2025 Annual Bonus performance outcome was 85.76% of maximum, or equivalent to 171.52% of base pay. The 2024
Annual Bonus performance outcome was 96.58% of maximum, or equivalent to 193.16% of base pay.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
175
Total single figure of remuneration for Non-Executive Directors (audited)
The table below sets out the total single figure remuneration received by each NED for the years ended 31 December 2025
and 31 December 2024.
Total fees
2025
2024
Director
Fees
Taxable
benefits11
Total
Fees
Taxable
benefits11
Total
Mike Rogers1
397,900
1,406
399,306
386,350
2,051
388,401
Evelyn Bourke2
92,500
815
93,315
92,591
1,632
94,223
Karen Green3
114,250
1,241
115,491
130,248
1,252
131,500
Jayaprakasa
Rangaswami
92,500
1,000
93,500
89,250
1,944
91,194
Justine Roberts4
54,552
684
55,236
112,350
778
113,128
Andrew Crossley5, 6
202,232
5,141
207,373
184,525
4,957
189,482
Michael Brierley5
165,500
4,765
170,265
159,850
3,723
163,573
Bill Roberts7
110,502
6,169
116,671
109,865
26,369
136,234
Fiona Muldoon8
114,187
–
114,187
96,409
1,398
97,807
Paola Bonomo9
56,974
9,552
66,526
–
Carlos Selonke De
Souza10
4,406
–
4,406
–
1 There was an overpayment of Mike’s fees in 2024, which were corrected and paid back in 2025, and are reflected in Mike’s 2025 fees.
2 Evelyn Bourke stepped down as Chair and as a member of the Group Remuneration Committee effective from April 2024. She
subsequently joined the Group Audit Committee as a member.
3 Karen Green was appointed Chair of the Group Remuneration Committee effective from 25 April 2024. Karen stepped down as Chair
of the Audit Committee in April 2024, and remained as a member of the Audit Committee until 1 September 2024. There was an
overpayment of fees in 2024, which have been corrected and paid back in 2025, and is reflected in Karen’s 2025 fees.
4 Justine Roberts resigned on 18 June 2025 from all positions.
5 The fees for Andrew Crossley and Michael Brierley include additional fees in relation to their positions as Chair of the EUI Limited Board
of Directors and Admiral Financial Services Limited Board of Directors, respectively.
6 Andrew Crossley left the Group Audit Committee on 7 March 2024. He was appointed as the Senior Independent Director and member
of the Group Nomination and Governance Committee on 18 June 2025 .
7 The fee for Bill Roberts includes an additional fee in relation to his position as a NED of the Elephant Insurance Board of Directors,
which he was appointed to on 1 February 2023.
8 Fiona Muldoon was appointed Chair of the Group Audit Committee effective from 25 April 2024. She was appointed as a member of the
Group Risk Committee on 28 April 2025.
9 Paola Bonomo was appointed to the Group Board and as a member of the Group Remuneration Committee on 12 May 2025.
10 Carlos Selonke De Souza was appointed to the Group Board on 10 December 2025.
11 Taxable benefits represent those expense reimbursements relating to travel, accommodation and subsistence in connection with the
attendance at Board, Subsidiary and Committee meetings during the year, which are deemed by HMRC to be taxable. The amounts in
the table are ‘grossed-up’ to include the UK tax paid by the Company on behalf of the Non-Executive Directors. Non-taxable expense
reimbursements have not been included in the table.
Incentive outcomes for financial year to 31 December 2025 (audited)
DFSS awards vesting on performance to 31 December 2025
On 28 September 2023, Milena Mondini de Focatiis was granted an award under the DFSS of 90,000 shares with a value
at the date of award of £2,141,100 (based on a grant date share price of £23.79).
On 28 September 2023, Geraint Jones was granted an award under the DFSS of 52,500 shares with a value at the date
of award of £1,248,975 (based on a grant date share price of £23.79).
Vesting of the award was based 80% on the achievement of financial performance measures and 20% on a scorecard
of non-financial measures.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
176
Financial performance outcomes
The performance measures applicable to these awards are: EPS growth, TSR vs. FTSE 350 (excluding investment
companies), and ROE, weighted equally and all measured over the three-year period 1 January 2023 to 31 December 2025.
Both EPS and ROE performed beyond the respective maximum amount, leading to a 100% vesting for the respective
measures. The Group ranked at the 73rd percentile in the TSR ranking, leading to a 94% vesting for the measure.
The combination of these elements contributes to a vesting of 98.00% for the financial measures. The Committee reviewed
this vesting outcome and concluded that it was appropriate.
The table below details the Company’s performance against the performance range.
Performance range
Performance
measure
Weighting
Threshold
Stretch
Maximum Vesting schedule
Performance
outcome
Vesting
contribution
(% of maximum)
EPS
33.33%
Growth of
0%
Growth of
10%
Growth of
30%
25% for reaching
threshold, rising to
75% for reaching
stretch, rising
to 100% at maximum
98.00%
100.00%
TSR vs. FTSE 350
(excluding
investment
companies)
33.33%
Median
Upper
quartile
25% for median,
with straight-line
relationship to 100%
for upper quartile
73rd
percentile
94.00%
Return on Equity
(‘ROE’)
33.33%
25%
35%
45%
25% for reaching
threshold, rising to
75% for reaching
stretch, rising
to 100% at maximum
48.39%
100.00%
Total
98.00%
Non-financial performance outcomes
The individual vesting contribution of the non-financial measures for Milena Mondini de Focatiis and Geraint Jones are set
out below, and have a weighted outcome of 80.20% of maximum. Details of the measures used in the scorecard and
outcomes are summarised in the table below:
Strategic
assessment
The Board’s
assessment of
progress towards
strategic aims.
33.00%
73.94%
73.94%
24.40%
Group NPS
The outcome
of the Group NPS,
weighted by entity
customer
headcount.
34.00%
35
48
55
49.67
80.98%
27.53%
Diversity
The proportion of
women in senior
management roles.
16.50%
30%
36%
40%
35.56%
71.33%
11.77%
Inclusion
The Group’s
Inclusion scores
from the GPTW
Survey, scored
on a basis relative
to the benchmark.
16.50%
>10%
below
benchmark
At
benchmark
At
benchmark
for all
scores
100.00%
16.50%
Total
80.20%
Performance
measure
Description
Weighting
Threshold
Stretch
Maximum
Outcome
Outcome %
of maximum
Weighted
outcome %
of maximum
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
177
The Board recommended an outcome of 77.14% of maximum for 2025, on the basis of strong progress towards strategic
aims in the year. Averaging this with the 2023 outcome of 76.67% and the 2024 outcome of 68.00% gives an average
of 73.94% over the performance period for the strategic assessment.
The monthly average Group NPS score over the performance period – weighted by entity customer headcount –
was 49.67, which was beyond the stretch target of 48, leading to a vesting outcome of 80.98% for the measure.
The proportion of women in senior manager roles at the end of the performance period was 35.56%, which was slightly
below the stretch target of 36%, leading to a vesting outcome of 71.33% for the measure.
The Group’s inclusion scores from the GPTW surveys across the performance period were at, or above, the benchmark,
leading to a 100% outcome for the measure.
Overall vesting
The vesting outcomes for Milena Mondini de Focatiis and Geraint Jones can be seen in the below table.
DFSS vesting component
Award weighting
Performance outcomes
Vesting (% of maximum)
Financial performance measures:
EPS growth, TSR vs. FTSE 350 (excluding
investment companies) and Return on Equity
(‘ROE’)
80.00%
98.00%
78.40%
Non-financial performance measures
20.00%
80.20%
16.04%
Total
100.00%
94.44%
The Committee reviewed the vesting outcomes and concluded that they were appropriate, and that no adjustments
were required.
Based on performance and scorecard outcomes, the total amount that will vest in September 2026 to Milena Mondini de
Focatiis will, therefore, be 84,996 shares, and the total amount that will vest to Geraint Jones will be 49,581 shares, subject
to their continued employment on the vesting date.
Vested DFSS awards are subject to clawback provisions. Events, which may lead to the application of clawback are set out
in the Group’s Malus and Clawback Framework and include material financial misstatement, responsibility for conduct that
results in significant losses, material failure of risk management, misconduct, reputational damage or corporate failure.
2025 Annual Bonus Plan
As outlined in the 2024 Policy, the Executive Directors were eligible to participate in an annual incentive scheme, which is
worth up to a maximum of 200% of base pay, dependent on performance outcomes relative to the measures set out in the
Policy review.
Step 1 – Formulaic review
The table below sets out performance outcomes against financial and non-financial measures to form a formulaic scorecard
outcome. The scorecard applies to both Executive Directors:
Measure
Weighting
Threshold
Target
Maximum
2025 outcome
Outcome
(% max)
Weighted
outcome
Financial
measures
(75% of total)
Profit
67.50%
£737m
£819m
£901m
957.9m
100.00%
67.50%
Turnover
growth
7.50%
–%
2%
4%
(0.9%)
–%
–%
Non-financial
measures
(25% of total)
NPS
8.33%
Weighted customer outcome scores from
across the Group entities
95.48%
7.95%
Customer
Outcomes
8.33%
73.70%
6.14%
Trust
Index
8.34%
5% under
benchmark
2% under
benchmark
At
benchmark
(2.0%)
50.00%
4.17%
Total
85.76%
Step 2 – Holistic review
The Committee considered the following key data, while reviewing the appropriateness of the formulaic outcomes:
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
178
From a strategic perspective, good progress was made. As outlined on page 178, the Board awarded the Executive
Directors a 77.14% of maximum outcome for progress against strategic aims for the year.
In 2025, the Group combined ratio increased slightly to 80.1% from 76.9%. On a similar basis, the UK Motor combined ratio
also increased to 75.0% from 70.0%.
Solvency Capital Ratio was 193% at year-end 2025, which remains significantly beyond the Group’s long-term aim of 150%.
Strong progress was made throughout the year in refining the Group’s approach sustainability, with highlights including
being included in the Top 25 Global Companies for Sustainable Growth by TIME Magazine, maintaining AAA rating from
MSCI, recognition at the PICCASO awards and more. Further information on sustainability can be found on page 56
For DEI, the Group Board composition is at 42% female representation (2024: 45%), while women represented 31% of all of
the subsidiary board appointments (2024: 29%), which is a small change on the position from 2024. Female representation
in senior management positions has improved to 35.1% at year-end (2024: 33.5%), however, this remains shy of the Group’s
40% aspiration.
Inclusion, measured through the Great Place to Work® survey is at a very high level, at the benchmark of the best
workplaces in the world.
The Committee considered the Holistic review data and concluded that the Executive Directors are high performing, with an
excellent track record in delivering strong and resilient Company performance and growth. The Committee believes that the
Executive Directors’ remuneration earned this year is proportionate and aligned to business performance and, therefore,
determined that an overall outcome of 85.76% of maximum, with no adjustment, was appropriate for the year. The final
outcomes are outlined in the table below:
Milena Mondini
Geraint Jones
Formulaic outcome (% maximum)
85.76%
85.76%
Holistic review outcome (adjustment)
–%
–%
Final outcome (% maximum)
85.76%
85.76%
Maximum opportunity for 2025 (% salary)
200.00%
200.00%
% salary
171.52%
171.52%
£ amount
£1,367,392
£849,024
In addition, the Executive Directors’ Annual Bonus Plan is subject to a further risk adjustment (downwards only) to take
account of risk events considered to have a material customer, regulatory or financial impact.
During the year, and in addition to the above, the Committee took into account relevant trigger events as part of the
established risk adjustment process, and determined it was not appropriate to apply a downwards adjustment
on that basis.
The Annual Bonus for the Executive Directors is subject to a 40% deferral into Admiral Group plc shares for a period of three
years. This means that the £546,957 of Milena’s bonus and £339,610 of Geraint’s bonus will be deferred into an equivalent
value of Admiral Group plc shares, which will vest three years after the award date.
Scheme interests granted in 2025 (audited)
DFSS
On 23 September 2025, Milena Mondini de Focatiis was granted an award of 100,000 shares and Geraint Jones was
granted an award of 57,500 shares under the DFSS. Using the closing share price on the day preceding the grant date
of £32.90, this is the equivalent to £3,290,000 or 413% of Milena’s base salary and £1,891,750 or 382% of Geraint’s base
salary, respectively.
The three-year period over which performance will be measured is 1 January 2025 to 31 December 2027. The award is
eligible to vest on the third anniversary of the date of grant, i.e., September 2028, subject to performance and to continued
employment. Vested awards will be subject to an additional two-year post-vest holding period.
The award will vest on EPS growth, TSR vs. FTSE 100 and insurance peer comparator group, ROE and a scorecard of
strategic, customer and other non-financial measures, inclusive of customer outcomes, ESG and strategic measures.
There will also be the potential for downwards adjustment subject to an assessment of risk events considered to have
a material customer, regulatory or financial impact over the course of the performance period. The performance conditions
are summarised in the following table:
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
179
Performance range
Award
Performance measure
Description
Weighting
Threshold
Stretch
Maximum
Vesting
Financial
performance
Earnings per share
(‘EPS’)
EPS growth
over the
performance
period.
25.00%
–%
35.00%
45.00% 25% for reaching
Threshold, 75% for
achieving Stretch
and 100% for
Maximum
performance.1
Return on Equity
(‘ROE’)
ROE over the
performance
period.
25.00%
30.00%
n/a
45.00% 25% for reaching
Threshold, and
100% for Maximum
performance.
Total Shareholder
Return (‘TSR’)
TSR ranked on
a relative basis
vs. FTSE 100
and insurance
peer
comparator
group.
25.00%
Median
n/a
Top
Quartile
25% for reaching
Threshold and
100% for Maximum
performance.
Non-
financial
performance
Strategy
Strategic
assessment
The Board’s
assessment
of progress
towards
strategic aims.
8.25%
n/a
n/a
n/a
Vesting of between
0% and 100%
based on the
outcome of the
Board’s
assessment.
Customer Group NPS The outcome
of the Group
NPS, weighted
by entity
customer
headcount.
8.50%
35
48
55
25% for reaching
Threshold, 75% for
achieving Stretch
and 100% for
Maximum
performance.
ESG
Diversity
The proportion
of women
in senior
management
roles.
2.06%
30.00%
36.00%
40.00% 25% for reaching
Threshold, 75% for
achieving Stretch
and 100% for
Maximum
performance.
Inclusion
The Group’s
Inclusion
scores from the
GPTW Survey,
scored on a
basis relative to
the benchmark.
2.06%
>10%
below
benchmark
n/a
At
benchmark
25% for reaching
Threshold, 40%
for >6% below
benchmark and
100% for Maximum
performance.
Carbon
emissions
Alignment to
the SBTi 2030
and 2040
Scope 1 and 2
targets for
pathway to net
zero, halving
our GHG
impact in the
next five years.
4.13%
3,280
tCO2e
3,051
tCO2e
2,746
tCO2e
25% for reaching
Threshold, 75% for
achieving Stretch
and 100% for
Maximum
performance.
1 The stretch vesting profile for EPS in the 2025 DFSS was incorrectly disclosed as 70% of maximum in the 2024 report, this has been
corrected in the table above to the intended value of 75% of maximum in alignment with all other stretch outcomes.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
180
DFSS awards are subject to malus and clawback provisions, which are set out in the Group’s Malus and Clawback
Framework, as outlined on page 170.
SIP
In March 2025, Milena Mondini de Focatiis and Geraint Jones were granted awards under the SIP of 59 shares with a face
value of £1,770.00, which will mature on 13 March 2028, subject to continued employment.
In August 2025, Milena Mondini de Focatiis and Geraint Jones were granted awards under the SIP of 50 shares with a face
value of £1,831.00, which will mature on 21 August 2028, subject to continued employment.
Exit payments (audited)
No exit payments were made to an Executive Director during the year.
Payments to Past Directors (audited)
Following stepping down from the role of CEO on 31 December 2020, David Stevens has continued as an adviser to the
Group in a part-time capacity. During 2025, he earned a salary of £53,252.
Implementation of Remuneration Policy for 2026
Executive Directors
Salary, pension and benefits
Salaries for the Executive Directors in 2026 have been determined in line with the Remuneration Policy. Milena Mondini
de Focatiis’ salary was increased by 12.27% to £895,000 and Geraint Jones’ salary was increased by 3.03% to £510,000,
both effective 1 January 2026.
Consideration was given to ensure these increases were fair relative to the proposed increases for employees across
the Group for 2026. The average pay review in 2026 is expected to be in the region of 3.70%.
In determining the proposals for 2026 compensation for Milena, the Committee has considered market data for three
relevant peer groups:
• FTSE 350 Insurers: Listed insurance companies in the FTSE 350
• European Insurers: Listed insurance companies in European markets
• FTSE Size Comparators: Companies which rank 25 above and 25 below Admiral by market capitalisation.
The table below summarises the current positioning of Milena’s remuneration arrangements compared to these three peer
groups. It can be seen that her base salary is positioned below the lower quartile of each of the peer groups (£830,000,
£880,000 and £880,000, respectively). Given our emphasis on the long-term incentive element of the package, the Total
Direct Compensation Opportunity is positioned more competitively but also does not align with the Committee’s principle
that it should be possible to reward outstanding levels of performance with upper-quartile remuneration outcomes (see
page 164.
Peer Group
Base salary
Target total
cash
Max total
cash
Target total
direct
compensation
Max total
direct
compensation
FTSE 350 Insurers
< LQ
< LQ
< LQ
LQ - MM
< LQ
European Insurers
< LQ
< LQ
< LQ
LQ - MM
LQ
FTSE size comparators
< LQ
< LQ
< LQ
LQ - MM
LQ - MM
Admiral has performed strongly in recent years (for example, see the table below which summarises recent TSR
performance compared to the FTSE 100 and insurance sector peers). Milena is a seasoned CEO with an excellent track
record. The Committee believes that she will continue to make a critical contribution to the ongoing success of the business
in the coming years and that it is therefore important to retain her and provide an appropriate reward package which
recognises this contribution and provides sufficient upside opportunity if outstanding performance is achieved.
Admiral
FTSE 100
Aviva
Beazley
Hiscox
Just
Group
Lancashire
Holdings
LGIM
Standard
Life
Prudential
1-year TSR
32%
22%
50%
14%
29%
49%
13%
19%
46%
67%
3-year TSR
86%
48%
93%
48%
52%
231%
63%
30%
60%
18%
5-year TSR
58%
87%
211%
177%
60%
338%
37%
57%
48%
–%
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
181
The Committee recommended an increase in Milena Mondini de Focatiis’ base salary level to £895,000 (an increase
of 12.3%) with effect from 1 January 2026 and to increase her 2026 DFSS award modestly (by 5%) to 105,000 shares.
The Committee intends that this will be a one-off salary adjustment, with future increases likely to be aligned broadly with
those for the wider workforce.
Following our recent announcement regarding Geraint Jones’ decision to retire from his role as Group CFO in July 2026,
his base salary was increased to £510,000 (an increase of 3%, in line with the expected average increase for employees)
effective 1 January 2026, and his 2026 DFSS award to remain at 57,500 shares. It is Geraint’s intention to take up a consultant
position within the Group following his retirement from the Group CFO role. Geraint will be eligible to participate in the Executive
Director ABP for the period 1 January to 30 June 2026. His 2026 DFSS award will be his final grant, with no further awards
being made after this point. The Committee intends that his in-flight DFSS awards continue to vest in line with the original
schedule and will remain subject to the two-year holding period in line with the Directors’ Remuneration Policy.
Rachel Lewis has been appointed as the Group Chief Financial Officer, effective from 1 July 2026, following Geraint Jones’
retirement as Group CFO at that date. Her salary on appointment will be £475,000. She will be awarded a 2026 DFSS award
of 45,000 shares, and she will be eligible to participate in the ED ABP with an opportunity of 0-200% of base pay from the
date of appointment.
The Committee has outlined a flight path through to 2028, with 2027 pay increase likely to be aligned with the broader
workforce and a more significant increase in 2028 reflecting her development in the role. DFSS shares are likely to increase
across that period, with ABP participation continuing to align to the Director’s Remuneration Policy.
The Executive Directors will continue to participate in the Group Personal Pension Plan on a consistent basis with other
employees, where employee contributions are matched up to a maximum 6% of base salary. The Company will offer
individuals a choice between pension contributions and cash in lieu. Both Executive Directors will continue to receive
benefits in line with the Policy.
DFSS
The Committee intends to make awards under the DFSS to Milena Mondini de Focatiis and Geraint Jones in September 2026
of 105,000 and 57,500 shares, respectively. The Committee will confirm the size for each of the 2026 DFSS awards closer
to the award date. In determining whether the award size should differ from the above number of shares, the Committee will
consider any large share price change over the prior year, and in particular whether this is due to external factors out of
management control. The actual 2026 DFSS awards will be disclosed in the 2026 Annual Report on Remuneration.
It is currently anticipated that the vesting of 2026 DFSS awards for Milena Mondini de Focatiis and Geraint Jones will
continue to be assessed across the three-year performance period using a 75% performance weighting on EPS, TSR
(measured on a relative basis, equally split between the FTSE 100 and a subset of insurance peers with substantial general
insurance segments) and ROE, and a 25% weighting on a scorecard of strategic, customer and other non-financial metrics.
The measures and performance ranges for the 2026 DFSS are set out in the following table.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
182
Performance range
Award
Performance measure
Description
Weighting
Threshold
Stretch
Maximum
Vesting
Financial
Performance
Earnings per share
(‘EPS’)
EPS growth
over the
performance
period.
25.00%
–%
17.50%
25.00% 25% for reaching
Threshold, 75% for
achieving Stretch
and 100% for
Maximum
performance.
Return on Equity (‘ROE’) ROE over the
performance
period.
25.00%
30.00%
n/a
45.00% 25% for reaching
Threshold, and
100% for Maximum
performance.
Total Shareholder
Return (‘TSR’)
TSR ranked on
a relative basis
vs. FTSE 100
and insurance
peer
comparator
group.
25.00%
Median
n/a
Top
Quartile
25% for reaching
Threshold and
100% for Maximum
performance.
Non-
financial
Performance
Strategy
Strategic
Assessment
The Board’s
assessment
of progress
towards
strategic aims.
8.25%
n/a
n/a
n/a
Vesting of between
0% and 100%
based on the
outcome of
the Board’s
assessment.
Customer Group NPS The outcome
of the Group
NPS, weighted
by entity
customer
headcount.
8.50%
35
48
55
25% for reaching
Threshold, 75% for
achieving Stretch
and 100% for
Maximum
performance.
ESG
Diversity
The proportion
of women in
senior
management
roles.
2.06%
34%
n/a
40% 25% for reaching
Threshold, and
100% for Maximum
performance.
Inclusion
The Group’s
Inclusion
scores from the
GPTW Survey,
scored on a
basis relative to
the benchmark.
2.06%
>10%
below
benchmark
n/a
At
benchmark
25% for reaching
Threshold, 40%
for >6% below
benchmark and
100% for Maximum
performance.
Carbon
emissions
Alignment to
the SBTi 2030
and 2040
scope 1 and 2
targets for
pathway to net
zero, halving
our GHG
impact in the
next five years.
4.13%
2,784
tCO2e
2,531
tCO2e
2,278
tCO2e
25% for reaching
Threshold, 75%
for achieving
Stretch and 100%
for Maximum
performance.
The EPS targets for the 2026 scheme are set lower than the 2025 targets. This is due to 2025 EPS being at a historically
high levels, meaning significant EPS growth beyond this point is challenging particularly given the current point in the
insurance pricing cycle. The Committee therefore believes using the same EPS targets as 2025 would potentially mean that
such targets were unachievable and this is inconsistent with the purpose of the targets which are intended to motivate
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
183
Management to deliver exceptional performance. The Committee believes that the 2026 scheme targets are set at
appropriately stretching but achievable levels.
It has been an aim of the Committee to include carbon emissions targets as part of the NFM scorecard to support the
delivery of the Group’s net zero targets. For the 2026 scheme, the non-financial measures will continue to comprise Group
NPS, Diversity, Inclusion and carbon emissions reduction targets.
There will be the potential for downwards adjustment subject to an assessment of risk events considered to have a material
customer, regulatory or financial impact over the course of the performance period.
Annual Bonus Plan
Under the 2024 Policy, Milena Mondini de Focatiis and Geraint Jones will be eligible to participate in an Annual Bonus in
2026. The bonus opportunity will be 0–200% of base pay for the Executive Directors, with an on-target award of 100%.
Performance will be based on the following measures and weightings:
Measure
Weighting
Financial measures (75% of total)
Profit
67.50%
Turnover
7.50%
Non-financial measures (25% of total)
Trust Index (people)
8.34%
Customer feedback (NPS)
8.33%
Customer outcomes (CRMI)
8.33%
Total
100.00%
The profit measure will be profit before tax. Turnover is the total value of the revenue generated by the Group. Both Profit
and Turnover values are reported in the Annual Report, and the values used to determine Annual Bonus outcomes will be
consistent with the reported figures.
Customer outcomes and customer feedback comprise customer measures and associated outcomes from the Group
entities for the performance year, in which outcomes are scored relative to entity-set performance ranges, with mechanical
outcomes based on performance for each month. The Trust Index is the average of employee responses to the core survey
questions in the Great Place To Work® (‘GPTW’) survey. This is scored relative to the benchmark of the world’s 25 best
workplaces provided by GPTW.
The Remuneration Committee will follow a two-phase methodology for determining Executive Director Annual Bonus
outcomes; the formulaic outcome against the measures detailed above followed by a holistic review of the extent to which
that formulaic outcome is reflective of the overall performance of the Group.
Phase 1: Formulaic review. At the end of the performance period, the final performance against each measure is assessed
on a standalone basis. Data for the measures is taken from the Group’s financial reports, which are reviewed by the Audit
Committee and approved by the Board.
Phase 2: Holistic review. The Committee will then consider the overall fairness of the formulaic Group scorecard outcome
in the context of the business performance in the prevailing market conditions, which can be assessed against a non-
exhaustive basket of measures such as:
• Executive Director personal performance
• Dividend and / or share price performance
• Impact on strategic delivery
• Risk appetite adherence
• Loss and / or combined ratio outcomes
• Financial stability of the Group
• Wider ESG performance
• Inclusion and diversity measures
• Delivery of technology milestones.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
184
The Committee will carefully determine a final bonus outcome for each Executive Director that is fair and appropriate
for the year’s performance and is in the best interests of shareholders.
A detailed summary of the factors used to determine bonus outcomes for the Executive Directors will be disclosed
in the Director’s Remuneration Report (‘DRR’) following the performance period.
In line with the position set out in the Policy, 40% of any bonus earned will be subject to deferral into Admiral Group Shares
for a period of three years.
There will be the potential for downwards adjustment subject to an assessment of risk events considered to have a material
customer, regulatory or financial impact over the course of the performance period.
Chair and Non-Executive Directors
Fees for the Board Chair and other Non-Executive Directors were reviewed in January 2026 having previously been last
reviewed in 2025. Increases were made, effective 1 January 2026.
2026 fee (p.a.) 2025 fee (p.a.)
Chair1
£430,000
£398,000
NED base fee
£79,000
£76,000
Additional fee for chairing:2
– Audit Committee
£28,000
£27,000
– Group Risk Committee
£48,000
£46,500
– Remuneration Committee
£28,000
£27,000
– Nomination and Governance Committee
£12,000
£11,000
Additional fee for membership of:
– Audit Committee
£17,000
£16,500
– Group Risk Committee
£17,000
£16,500
– Remuneration Committee
£14,000
£13,000
– Nomination and Governance Committee
£10,000
£9,000
Additional fee for being Senior Independent Director
£20,000
£18,500
1 The Board Chair does not receive any additional fees (e.g. for Committee membership) as these are included in the overall Chair fee.
The 8% increase for 2026 fees was considered appropriate to ensure the fee remained competitive and aligned to market. When
considering the benchmarking for the role, peer groups comprised FTSE size comparators and Insurance peers.
2 The fee payable for 2025 for Chairing the Group Risk Committee continues to include an additional fee in recognition of the increased time
commitment required due to the Admiral Internal Model process. It comprises a base fee of £28,000 and an additional fee of £20,000.
CEO pay ratio
The table below sets out the pay ratios for the CEO for the periods ended 31 December 2021 through 31 December 2025.
Year
Method
Lower quartile
Median
Upper quartile
2025
Option A
155:1
130:1
82:1
2024
138:1
121:1
82:1
2023
75:1
64:1
43:1
2022
80:1
69:1
45:1
2021
95:1
81:1
50:1
The lower quartile, median and upper quartile employees were determined using calculation methodology A, which involved
calculating the actual full-time equivalent remuneration for all UK employees for 2025. From this analysis, three employees
were then identified as representing the 25th, 50th and 75th percentile of the UK employee population. Admiral chose this
method as it is the preferred approach of the UK Government and investor bodies and Admiral had the systems in place
to apply this method. It is also consistent with the approach used to calculate the ratios for 2018 to 2024.
The Committee has considered the pay data for the three employees identified and believes that it fairly reflects pay at the
relevant quartiles amongst our UK workforce. The three individuals identified were full-time employees during the year.
None received an exceptional incentive award that would otherwise inflate their pay figures. No adjustments or assumptions
were made by the Committee with the total remuneration of these employees calculated in accordance with the
methodology used to calculate the single figure of the CEO. It should be noted that the lower quartile employee was
in receipt of DFSS bonus and / or DFSS vesting in the year.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
185
The employee pay levels for 2025 (as at 31 December 2025) are detailed below:
CEO
P25 (lower
quartile)
P50 (median)
P75 (upper
quartile)
Salary
£797,220
£26,593
£32,521
£49,999
Total remuneration1
£4,949,201
£32,191
£38,249
£60,410
1 The single figure of remuneration for the CEO includes actual salary and pension costs paid during 2025, in line with The Companies
(Miscellaneous Reporting) regulations 2018. For other employees, salary and pension costs are included on an FTE basis, in line with
the legislation. While the basis of calculation differs between CEO and other employees, management considers this a fair comparison
of remuneration.
The 2025 CEO pay ratio has increased at the lower quartile and median, with the key drivers being an increased share price,
strong ABP outcomes and a high vesting outcome in the 2023 DFSS.
A significant proportion of Milena Mondini de Focatiis’ remuneration is dependent on the Company’s performance and,
therefore, it may vary more materially, resulting in movements in the CEO pay ratio from year to year.
Relative importance of spend on pay
The table below shows the percentage change in dividends and total employee remuneration spend from the financial year
ended 31 December 2024 to the financial year ended 31 December 2025.
2025
£m
2024
£m
% change
Distribution to shareholders
623
580
7%
Employee remuneration
594
537
10%
The Directors are proposing a final dividend for the year ended 31 December 2025 of 90 pence per share bringing the total
dividend for 2025 to 205 pence per share (2024: 192 pence per share).
Pay for performance
The following graph sets out a comparison of Total Shareholder Return (‘TSR’) for Admiral Group plc shares with that of the
FTSE 100 and FTSE 350 indices, of which the Company is a constituent, over the ten-year period to 31 December 2025.
The Directors consider these to be the most appropriate indices against which the Company should be compared.
TSR is defined as the percentage change over the period, assuming reinvestment of income.
Ten-year TSR performance vs. FTSE 100 and FTSE 350 indices
Key
Admiral
FTSE 100
FTSE
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
186
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-24
Dec-25
50
100
150
200
250
300
350
400
Admiral
FTSE 100
FTSE 350
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Henry
Engelhardt1
David
Stevens2
David
Stevens2
David
Stevens
David
Stevens
David
Stevens
Milena
Mondini de
Focatiis3
Milena
Mondini de
Focatiis
Milena
Mondini de
Focatiis
Milena
Mondini de
Focatiis
Milena
Mondini de
Focatiis
CEO single figure of remuneration
£148,776 £246,023
£395,019 £403,662
£413,724
£421,285 £2,082,1913 £2,275,511 £2,159,093 £4,118,9244 £ 4,949,201
DFSS vesting outcome (% of maximum)
n/a
n/a
n/a
n/a
n/a
n/a
98.57%
59.24%
43.76%
76.73%
94.44%5
Annual Bonus outcome (% of maximum)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
96.58%
85.76%6
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
Geraint
Jones
CFO single figure of remuneration
£599,139
£1,184,445
£1,461,813
£1,773,303
£2,329,513
£1,737,805
£1,333,709
£1,270,328 £2,446,1394 £ 2,971,888
DFSS vesting outcome (% of maximum)
50% and 0%
74.20%
87.60%
88.80%
98.50%
93.08%
59.21%
43.73%
76.73%
94.44%5
Annual Bonus outcome (% of maximum)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
96.58%
85.76%6
1 Henry Engelhardt stepped down from the Board on 13 May 2016. His 2016 remuneration includes salary and benefits for his service
as CEO.
2 David Stevens was appointed as the CEO on 13 May 2016. His 2016 remuneration includes salary, pension and benefits for his service
as CEO.
3 Milena Mondini de Focatiis was appointed as the CEO on 1 January 2021. Her 2021 remuneration includes salary, pension and benefits
for her service as CEO.
4 This figure has been trued up since the 2024 report for the value of the 2022 DFSS based on the actual share price on vest of £32.65.
5 94.44% of Milena Mondini De Focatiis’ and Geraint Jones’ 2023 DFSS award will vest in September 2026, subject to their continued
employment on the vesting date.
6 The 2025 Annual Bonus outcomes for Milena Mondini De Focatiis and Geraint Jones are 85.76% of maximum.
There were no annual bonus outcomes to report in the table for the period 2015 to 2023 as the Admiral DFSS bonus is not
structured as a traditional annual bonus scheme and consequently an outcome (as a percentage of maximum) was deemed
meaningless. The Executive Director Annual Bonus Plan is a more traditional scheme with an outcome that can meaningfully
be described as a percentage of maximum, and has been included from 2024 onwards.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
187
Annual change of each Director’s pay compared to the annual change in average employee pay
The following table summarises the annual percentage change of each Director’s remuneration compared to the annual
percentage change of the average remuneration of the Company’s employees, calculated on a full-time equivalent basis.
2025 (% change)
Financial year ended 31 December 2025
Base
salary / fees
Taxable
benefits
ABP / DFSS
cash bonus
Executive Directors
Milena Mondini de Focatiis
3.00%
13.54%
(8.54%)
Geraint Jones
6.45%
13.54%
(5.47%)
Non-Executive Directors
Mike Rogers
2.99%
(31.44%)
n/a
Evelyn Bourke
(0.10%)
(50.08%)
n/a
Karen Green
(12.28%)
(0.87%)
n/a
Jayaprakasa Rangaswami
3.64%
(48.52%)
n/a
Justine Roberts
(51.44%)
(12.09%)
n/a
Andrew Crossley
9.60%
3.71%
n/a
Michael Brierley
3.53%
27.99%
n/a
Bill Roberts
0.58%
(76.61%)
n/a
Fiona Muldoon
18.44%
(100.00%)
n/a
Paola Bonomo
-
–
n/a
Carlos Selonke De Souza
-
–
n/a
Percentage change in employees' remuneration
8.30%
23.71%
152.72%
The percentage change in employee base pay is a view across the whole Group and is inclusive of colleague internal
movements and promotions throughout 2025.
Evelyn Bourke stepped down as Chair and as a member of the Group Remuneration Committee effective from April 2024.
She subsequently joined the Group Audit Committee as a member.
Karen Green was appointed Chair of the Group Remuneration Committee effective from 25 April 2024. Karen stepped down
as Chair of the Audit Committee in April 2024, and remained as a member of the Audit Committee until 1 September 2024.
There was an overpayment of fees in 2024, which have been corrected and paid back in 2025, and is reflected in Karen’s
2025 fees.
Justine Roberts resigned on 18 June 2025 from all positions.
Andrew Crossley left the Group Audit Committee on 7 March 2024. He was appointed as the Senior Independent Director
and member if the Group Nomination and Governance Committee on 18 June 2025.
Fiona Muldoon was appointed Chair of the Group Audit Committee effective from 25 April 2024. She was appointed
as a member of the Group Risk Committee on 28 April 2025.
The percentage changes for the Non-Executive Director taxable benefits relate to expenses for travel, accommodation and
subsistence. These are generally modest in value, and small changes lead to comparatively large percentage increases.
For colleague taxable benefits, these are primarily driven by changes to individual private medical insurance; it is worth
noting that the median and mode changes for this data set are 13.6%, which is in line with the Executive Director changes.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
188
Dilution
Having previously used new issue shares to fund the employee share schemes, the Company has now implemented its
market purchase funding model, and a total of 1,000,000 shares were purchased from the market and added to the trust
in late 2025. The Company expects to purchase further shares during 2026 and to continue operating under this market
purchase model in future years.
Interests held by Directors (audited)
The Company has adopted Executive Director shareholding guidelines whereby all Executive Directors are required to
acquire and retain a beneficial shareholding in the Company equal to at least 400% of base salary (excluding salary shares,
where applicable), which can be built up over a period of five years from the later of the introduction of the guidelines and
the individual’s date of appointment. Both Executive Directors meet the shareholding requirement.
As at 31 December 2025, the Directors held the following interests:
Shares held
Name
Beneficially
owned
outright1
DFSS subject to
continued
employment2
Unvested
deferred ABP
shares
Unvested
DFSS awards
Current
shareholding (%
of 2025 salary)
400% of salary
requirement met?
Milena Mondini de Focatiis
121,271
45,047
22,379
185,000
663%
Yes
Geraint Jones
155,574
26,277
13,444
107,500
1,167%
Yes
Mike Rogers
12,163
Evelyn Bourke
7,459
Jayaprakasa Rangaswami
–
Justine Roberts
1,044
Andy Crossley
4,984
Michael Brierley
4,802
Karen Green
–
Bill Roberts
10,310
Paola Bonomo
–
Carlos Selonke De Souza
–
Fiona Muldoon
–
1 Total includes SIP shares both matured and awarded.
2 Total reflects shares due to vest from the 2023 DFSS award (performance test has been applied, and award is due to vest in September
2026), net of Income Tax and National Insurance.
There have been no changes to Directors’ shareholdings since 31 December 2025.
None of the Directors had an interest in the shares of any subsidiary undertaking of the Company or in any significant
contracts of the Group.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
189
Executive Directors’ interests in shares under the DFSS and SIP and salary share awards (audited)
Type
At start
of year
Awarded
during
year
Vested /
matured
during
year
At end
of year
Price at
award2
(£)
Value at
award date
(£)
Value at
31 Dec 2025
or maturity1
(£)
Date of
award
Final vesting /
maturity date
Milena Mondini de Focatiis
DFSS
90,000
–
69,057
–
£21.59
1,943,100
2,254,711
22/09/2022
22/09/2025
DFSS
90,000
–
–
90,000
£23.79
2,141,100 2,858,400
28/09/2023
28/09/2026
DFSS
95,000
–
–
95,000
£28.00
2,660,000 3,017,200
27/09/2024
27/09/2027
DFSS
–
100,000
– 100,000
£32.90
3,290,000
3,176,000
23/09/2025
23/09/2028
SIP
72
–
72
–
£24.81
1,786
2,157
11/03/2022
11/03/2025
SIP
81
–
81
–
£22.25
1,802
2,944
24/08/2022
24/08/2025
SIP
95
–
–
95
£18.82
1,787
3,017
13/03/2023
13/03/2026
SIP
77
–
–
77
£23.61
1,818
2,446
21/08/2023
21/08/2026
SIP
69
–
–
69
£25.73
1,775
2,191
11/03/2024
11/03/2024
SIP
62
–
–
62
£29.33
1,818
1,969
20/08/2024
20/08/2027
SIP
–
59
–
59
£30.00
1,770
1,874
13/03/2025
13/03/2028
SIP
–
50
–
50
£36.62
1,831
1,588
21/08/2025
21/08/2028
Geraint Jones
DFSS
52,500
–
40,283
–
£21.59
1,133,475
1,315,240
22/09/2022
22/09/2025
DFSS
52,500
–
–
52,500
£23.79
1,248,975 1,667,400
28/09/2023
28/09/2026
DFSS
55,000
–
–
55,000
£28.00
1,540,000 1,746,800
27/09/2024
27/09/2027
DFSS
–
57,500
–
57,500
£32.90
1,891,750 1,826,200
23/09/2025
23/09/2028
SIP
72
–
72
–
£24.81
1,786
2,157
11/03/2022
11/03/2025
SIP
81
–
81
–
£22.25
1,802
2,944
24/08/2022
24/08/2025
SIP
95
–
–
95
£18.82
1,787
3,017
13/03/2023
13/03/2026
SIP
77
–
–
77
£23.61
1,818
2,446
21/08/2023
21/08/2026
SIP
69
–
–
69
£25.73
1,775
2,191
11/03/2024
11/03/2024
SIP
62
–
–
62
£29.33
1,818
1,969
20/08/2024
20/08/2027
SIP
–
59
–
59
£30.00
1,770
1,874
13/03/2025
13/03/2028
SIP
–
50
–
50
£36.62
1,831
1,588
21/08/2025
21/08/2028
1 The value at maturity relates only to shares vested.
2 For SIP the price at award reflects the closing share price on the preceding day prior to the award date.
The closing price of Admiral shares on 31 December 2025 was £31.76 per share.
Approved by the Board of Directors,
Karen Green
Chair of the Remuneration Committee
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Annual report on remuneration continued
Admiral Group Plc Annual Report and Accounts 2025
190
The Directors present their Annual Report
and audited financial statements for the year
ended 31 December 2025.
Directors
Directors and their interests
The present Directors of the Company are shown on page
110 of this Report. All Directors who have held office during
the year ended 31 December 2025 are set out on page 131.
The interests of Directors and Officers and their connected
persons in the issued share capital of the Company are
given in the Remuneration Report on page 189.
Appointments of Directors
The Company’s Articles of Association (the ‘Articles’) give
the Directors power to appoint and replace Directors.
Under the Terms of Reference of the Group Nomination
and Governance Committee, any appointment must be
recommended by the Group Nomination and Governance
Committee for approval by the Board of Directors.
The Articles provide that all Directors will retire and offer
themselves for re-election at each Annual General Meeting,
in accordance with the UK Corporate Governance Code
and the Company’s current practice. Therefore, all Directors
will be submitting themselves for either election or re-
election by shareholders at the forthcoming AGM.
Powers of the Company Directors
The Directors are responsible for managing the business
of the Company and may exercise all powers of the
Company subject to the provisions of relevant statutes,
to any directions given by special resolution and to the
Company’s Memorandum and Articles. The Articles, for
example, contain specific provisions and restrictions
concerning the Company’s power to borrow money.
Powers relating to the issuing of new shares and buyback
of shares are also included in the Articles and such
authorities are renewed by shareholders at the Annual
General Meeting each year. At the 2026 Annual General
Meeting (‘AGM’), shareholders will be asked to renew the
Directors’ authority to allot new securities and buy back
Company shares. Further details will be contained in the
Notice of 2026 AGM, which will be available to
shareholders alongside, or at a date near to the publication
of, the Annual Report.
Directors’ indemnities and insurance
Directors and Officers insurance cover is in place for all
Directors to provide cover against certain acts or omissions
on behalf of the Company. A Deed Poll of Indemnity was
executed in October 2015, indemnifying each of the
Directors and Company Secretary, in relation to certain
losses and liabilities that they might incur in the course
of acting as Directors of the Company. The Deed Poll of
Indemnity is categorised as qualifying third-party provisions
as defined by Section 234 of the Companies Act 2006
and remains in force for all past and present Directors
of the Company.
The Board is of the view that it is in the best interests of
the Group to attract and retain the services of the most able
and experienced Directors by offering competitive terms
of engagement, including the granting of such indemnities.
Neither the Deed Poll of Indemnity nor insurance cover
would provide any coverage in the event that a Director
is proved to have acted fraudulently or dishonestly.
Share capital, AGM and related matters
Share capital
At 31 December 2025, the Company’s issued share capital
comprised a single class of shares referred to as ordinary
shares. Details of the share capital and shares issued during
the year can be found in note 12d on page 305. The rights
and obligations attached to the Company’s ordinary shares
are set out in the Articles of Association of the Company,
copies of which can be obtained from Companies House.
Share class rights
If a poll is called at a general meeting, every member
present in person, or by proxy, and entitled to vote shall
have one vote for every ordinary share held. The notice
of the general meeting specifies deadlines for exercising
voting rights either by proxy notice or present in person or
by proxy in relation to resolutions to be passed at general
meeting. All proxy votes are counted and the numbers for,
against or withheld in relation to each resolution are
announced at the Annual General Meeting and published
on the Company’s website after the meeting.
There are no people who hold shares carrying special rights
with regard to control of the Company.
Restrictions on the transfer of securities
or voting rights
There are no restrictions on the transfer of ordinary shares
or voting rights in the Company other than:
• Certain restrictions may from time to time be imposed
by laws and regulations (for example, insider trading laws)
• Pursuant to the Listing Rules of the FCA whereby
certain employees and Directors of the Company
require the approval of the Company to deal in the
Company’s securities
• Restrictions under the Company’s employee share
incentive plans, where the shares are subject to the
plan rules.
The Company is not aware of any agreements between
holders of securities that may result in restrictions on the
transfer of securities or voting rights.
Shares held in Employee Benefit Trust (‘EBT’)
The EBT does not use its voting rights in respect of the
shares it holds in the EBT at general meetings, however,
it may choose to do so if recommended by the Company
via a letter of wishes. If any offer is made to shareholders
to acquire their shares, the trustee will not be obliged to
accept or reject the offer in respect of any shares, which
are at that time subject to subsisting awards, but will have
regard to the interests of the award holders and will have
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ report
Admiral Group Plc Annual Report and Accounts 2025
191
power to consult them to obtain their views on the offer.
Subject to the above, the trustee may take action with
respect to any offer it thinks fair. The trustee has waived
its right to dividends on the shares held in the trust.
During the year, the Company funded the EBT to purchase
shares in the market for the purposes of satisfying future
vestings of awards under the employee share schemes, see
note 12d for further details. Further information on the rights
attaching to shares under the employee share schemes are
provided in the Remuneration Report on page 159.
Authority to purchase own shares
At the Company’s 2025 AGM, shareholders approved an
authority for the Company to buy back up to 15,315,233
ordinary shares. This authority is due to expire on 9 August
2026, or, if earlier, at the conclusion of the next AGM of
the Company.
The Company has not purchased any of its own shares
during the period and the Directors intend to seek to renew
this power at the next AGM.
Major shareholders
Other than as stated below, as far as the Company is aware,
there are no persons with significant direct or indirect
holdings in the Company. Information provided to the
Company pursuant to Rule 5 of the FCA’s Disclosure and
Transparency Rules (‘DTRs’) is published on a Regulatory
Information Service and on the Company’s website.
The Company received notifications in accordance with the
FCA’s DTRs of the following notifiable interests in the voting
rights in the Company’s issued share capital:
As at 31 December 2025
Shareholder
Number of
shares
% voting
rights
Date of
notification
Henry Engelhardt &
Diane Briere de I’Isle
20,277,027
6.7%
27 March
2023
BlackRock Inc.
17,849,752
5.8%
7 December
2023
Moondance
Foundation
15,400,000
5.1%
27 March
2023
Rothschild and Co
Wealth Management
UK Limited
15,321,078
5.0%
3 January
2024
Mawer Investment
Management Ltd.
14,885,428
5.0%
1 April 2021
FMR LLC
14,847,102
5.0%
16 March
2022
Vanguard Group
Holdings
12,560,052
4.1%
pre-2015
The percentage of voting rights detailed above were
calculated at the time the relevant disclosures were made
in accordance with the DTRs. The DTRs require notification
when the percentage voting rights (through shares and
financial instruments) held by a shareholder reaches,
exceeds or falls below an applicable threshold.
The information provided below was correct at the date
of notification, however, the date the notification was
received may not have been within the financial year under
review. It should be noted that these holdings are likely
to have changed since the Company was notified.
However, notification of any change is not required until
the next notifiable threshold is crossed.
There were no notifications received by the Company
in accordance with the FCA’s DTRs in the period from
31 December 2025 to 4 March 2026.
Group results and dividends
The profit for the year, after tax but before dividends,
amounted to £742.3 million (2024: £662.9 million).
The Directors declared and paid dividends of £715.4 million
during 2025 (2024: £369.8 million). Refer to note 12b for
further details.
The Directors have proposed a final dividend of £274.6
million (90.0 pence per share). Subject to shareholders’
approval at the 2026 Annual General Meeting (‘AGM’), the
final dividend will be paid on 5 June 2026 to shareholders
on the register at the close of business on 8 May 2026.
Further information on the Group’s dividend policy
is located on page 227.
Articles of Association
The Articles may only be amended by special resolution
of the shareholders.
Annual General Meeting (‘AGM’)
It is proposed that the next AGM be held at Tŷ Admiral,
David Street, Cardiff CF10 2EH on Wednesday 29 April
2026, notice of which will be available to shareholders
alongside, or at a date near to the publication of the
Annual Report.
Change of control
There are a number of agreements that alter or terminate
upon a change of control of the Company following a
takeover bid, such as commercial contracts (entered into
in the normal course of business). None are considered to
be significant in terms of their impact on the business of the
Group as a whole. There are no agreements between the
Company and its Directors or employees providing for
compensation for loss of office or employment (whether
through resignation, purported redundancy or otherwise)
that occur because of a takeover bid.
Significant contracts of material
interest to shareholders
The Group considers its co-insurance and reinsurance
contracts to be significant and of material interest to
shareholders. A number of the Group’s contractual
arrangements with reinsurers include features that,
in certain scenarios, allow for reinsurers to recover losses
incurred to date. The overall impact of such scenarios
would not lead to an overall net economic outflow from the
Group. No other contractual arrangements are considered
to be significant to the running of the Group’s business.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ report continued
Admiral Group Plc Annual Report and Accounts 2025
192
Political donations
No political donations were made during the year.
Going concern and viability statement
In accordance with the UK Corporate Governance Code,
the Board must confirm that it considers the going concern
basis of accounting appropriate. In considering this
requirement, the Directors have taken into account the
factors outlined in note 1 to the financial statements on
page 212. The Directors have concluded that there is a
reasonable expectation that the Group has adequate
resources to continue in operation for the foreseeable
future, a period of not less than 12 months from the date
of this report, and that it is, therefore, appropriate to adopt
the going concern basis in preparing the consolidated
financial statements.
In accordance with the UK Corporate Governance Code,
the Directors have assessed the viability of the Group.
The Viability Statement, which supports the going concern
basis above, is included in the Strategic Report on page 105.
Reporting, accountability and audit
UK Corporate Governance Code
Admiral is subject to the UK Corporate Governance
Code (the ‘Code’), published by the Financial Reporting
Council (‘FRC’) in January 2024 and available on their
website, frc.org.uk. The Company’s Annual Report and
Accounts, taken as a whole, addresses the requirements
of the 2024 Code.
The Code was applicable for the Group during the year
under review, and the Group has applied the principles
and fully complied with the provisions of the Code, as set
out in the Corporate Governance Report on page 116.
The Directors confirm that the Annual Report and Accounts,
taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders
to assess the Company’s position and performance,
business model and strategy.
The Board is ultimately responsible for the Group’s system
of risk management and internal control and, through the
Audit Committee, has reviewed the effectiveness of the
Group’s internal control and risk management arrangements
relating to the financial reporting process and the principal
risks facing the business. The Board is satisfied that the
Group’s internal control and risk management framework
is prudent and effective and that, through the Audit
Committee and Group Risk Committee, risk can be
assessed, managed and assurance given that all material
controls are reviewed and monitored.
Information on the composition and operation of the Board
and its Committees is located in the following sections:
• Corporate Governance report on page 107 in respect
of the Board
• Nomination and Governance Committee report
on page 134
• Audit Committee report on page 147
• Risk Committee report on page 154
• Remuneration Committee report on page 159.
The Group’s gender diversity information for the financial
year, together with an explanation of the policies related to
diversity, are set out in the Strategic Report on page 14 and
in the Nomination and Governance Committee Report on
page 134.
Directors’ responsibilities
The Directors are responsible for preparing the Annual
Report and the Group and Parent Company financial
statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare Group and
Parent Company financial statements for each financial
year. Under that law they are required to prepare the Group
financial statements in accordance with United Kingdom
adopted international accounting standards and applicable
law and have elected to prepare the Parent Company
financial statements in accordance with UK accounting
standards and applicable law, including FRS 101 Reduced
Disclosure Framework.
Under Company law, the Directors must not approve the
financial statements unless they are satisfied that they give
a true and fair view of the state of affairs of the Group and
Parent Company and of their profit or loss for that period.
In preparing each of the Group and Parent Company
financial statements, the Directors are required to:
• Select suitable accounting policies and then apply
them consistently
• Make judgements and accounting estimates that are
reasonable and prudent
• For the Group financial statements, state whether they
have been prepared in accordance with IFRS as adopted
by the UK
• For the Parent Company financial statements, state
whether applicable UK accounting standards, including
FRS 101 Reduced Disclosure Framework, have been
followed, subject to any material departures disclosed
and explained in the Parent Company financial
statements
• Prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Company will continue in business.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Parent Company’s transactions and disclose with
reasonable accuracy at any time the financial position of the
Parent Company and enable them to ensure that its financial
statements comply with the Companies Act 2006. They have
general responsibility for taking such steps as are reasonably
open to them to safeguard the assets of the Group and to
prevent and detect fraud and other irregularities.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ report continued
Admiral Group Plc Annual Report and Accounts 2025
193
Under applicable law and regulations, the Directors are
also responsible for preparing a Strategic Report, Directors’
report, Directors’ Remuneration report and Corporate
Governance Statement that complies with that law and
those regulations.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information included
on the Company’s website.
Legislation in the UK governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
Responsibility statement
The Directors confirm that to the best of their knowledge:
• The financial statements, prepared in accordance with
the applicable set of accounting standards, give a true
and fair view of the assets, liabilities, financial position
and profit or loss of the Company and the undertakings
included in the consolidation taken as a whole; and
• The Directors’ report and the Strategic Report include
a fair review of the development and performance of
the business and the position of the Company, and the
undertakings included in the consolidation taken as a
whole, together with a description of the principal risks
and uncertainties.
Disclosure of information to auditor
The Directors who held office at the date of approval of this
Directors’ report confirm that, so far as they are each aware,
there is no relevant audit information of which the
Company’s auditor is unaware; and each Director has taken
all the steps that they ought to have taken as a Director
to make themselves aware of any relevant audit information
and to establish that the Company’s auditor is aware of
that information.
Auditor
Following the Board’s approval of the Audit Committee’s
recommendation to reappoint the Company’s auditor,
Deloitte LLP has indicated willingness to continue in office
and resolutions to reappoint it and to authorise the Directors
to fix its remuneration will be proposed at the AGM.
Index of disclosures
Information included in the Strategic Report: As permitted
by legislation, some matters required to be included in the
Directors’ report have instead been included in the Strategic
Report as the Board considers them to be of strategic
importance. These are identified with an asterix (*) in the
table below.1
Agreement for loss of office or employment on takeover
169, 191
Allotment of shares for cash pursuant to Group employee share schemes*
305
Amendment of the Articles of Association
192
Annual General Meeting (‘AGM’)
192
Appointment and replacement of Directors
138, 191
Attendance at Board and Board Committee meetings
131
Audit Committee report
147
Business review
28
Business model
10
Branches
307
Changes in borrowings
225, 271
Charitable donations
61, 92
Climate-related disclosures, including GHG emissions and energy consumption
74
Corporate Governance report
107
Culture
123
Details of long-term incentive schemes*
159
Directors’ insurance and indemnities
191
Directors’ inductions and training
133
Directors in office during the year
110, 131
Directors’ interests in shares
189
Directors’ Responsibility Statement
194
Directors’ service contracts
169
Disclosure of information to the auditor
194
Diversity disclosures
59,141
Dividends
192, 305
Information / disclosure
Page No.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ report continued
Admiral Group Plc Annual Report and Accounts 2025
194
Engagement with suppliers, customers and others in a business relationship with the Company*
91
Employee engagement
58, 89, 127
Employees with disabilities
59
Fair, balanced and understandable
193
Financial risk management
154, 218
Financial instruments
212
Future developments of the business
14
Going Concern Statement
193
Group Risk Committee
154
Independent auditors’ report
197
Interest capitalised by the Group*
265
Nomination and Governance Committee report
134
Non-Financial and Sustainability Information Statement
95
Political donations and expenditure
193
Post-balance sheet events
308
Powers for the Company to issue or buy back its shares
191
Powers of Directors
191
Principal risks and uncertainties
97
Related undertakings
307
Reappointment of auditor
194
Remuneration Committee report
174
Research and development
21, 59
Rights attaching to shares
191, 304
Risk management and internal control
97, 147, 154
S172 Statement
87
Share capital
191, 305
Shareholder engagement
90, 126
Shareholder waiver of dividends and future dividends*
191, 305
Significant agreements impacted by a change of control
192
Significant related party agreements*
307, 327
Significant shareholders
192
Statement of compliance with the UK Corporate Governance Code
116
Strategic Report
14
Sustainability Report
55
Viability Statement
105
Voting rights
191
Information / disclosure
Page No.
1 Information required to be disclosed in the Annual Report under Listing Rule 6.6.1 is marked with an asterisk (*).
Approved by the Board of Directors and signed on its behalf by
Dan Caunt
Geraint Jones
Company Secretary
Chief Financial Officer
4 March 2026
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Directors’ report continued
Admiral Group Plc Annual Report and Accounts 2025
195
Financial
Statements
197
Independent Auditor's Report
206 Consolidated Income Statement
207 Consolidated Statement of Comprehensive Income
208 Consolidated Statement of Financial Position
209 Consolidated Cashflow Statement
210
Consolidated Statement of Changes in Equity
212
Notes to the consolidated financial statements
317
Parent Company financial statements
320 Notes to the Parent Company financial statements
329 Glossary
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Admiral Group Plc Annual Report and Accounts 2025
196
Report on the audit of the financial statements
1.Opinion
In our opinion:
• the financial statements of Admiral Group plc (the ‘Parent Company’) and its subsidiaries (the ‘Group’) give a true and fair
view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2025 and of the Group’s profit
for the year then ended;
• the Group financial statements have been properly prepared in accordance with United Kingdom adopted international
accounting standards;
• the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally
Accepted Accounting Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework”; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
• the Consolidated and Parent Company Income Statements;
• the Consolidated and Parent Company Statements of Comprehensive Income;
• the Consolidated and Parent Company Statements of Financial Position;
• the Consolidated and Parent Company Statements of Changes in Equity;
• the Consolidated Cashflow Statement;
• the related notes 1 to 14 to the Group financial statements, excluding the capital adequacy disclosures in note 3.8
calculated in accordance with the Solvency II regime which are marked as unaudited; and
• the related notes 1 to 14 to the Parent Company financial statements.
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable
law, and United Kingdom adopted international accounting standards. The financial reporting framework that has been
applied in the preparation of the Parent Company financial statements is applicable law and United Kingdom Accounting
Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial
statements section of our report.
We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant
to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard
as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. The non-audit services provided to the Group and Parent Company for the year are disclosed in note 9c
to the financial statements. We confirm that we have not provided any non-audit services prohibited by the FRC’s Ethical
Standard to the Group or the Parent Company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Independent Auditor’s Report
to the members of Admiral Group plc
Admiral Group Plc Annual Report and Accounts 2025
197
3. Summary of our audit approach
Key audit matters
The key audit matter that we identified in the current year was:
• Valuation of UK motor large bodily injury reserves within the gross liability for incurred claims.
Materiality
The materiality that we used for the Group financial statements was £47.9m which was
determined on the basis of 5% of profit before tax from continuing operations (‘PBT’).
Scoping
We identified five reporting components which we determined should be subject to an audit
of the entire financial information in the current year. Specified audit procedures were completed
in respect of eight further components in response to specific audit risks.
The components within the scope of our audit of entire financial information and specified audit
procedures account for above 99% of the Group’s profit before tax, the Group’s revenue and the
Group’s net assets.
Significant changes in
our approach
There have been no significant changes in our approach from the prior year.
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting
in the preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the Group’s and Parent Company’s ability to continue to adopt the going
concern basis of accounting included:
• We obtained an understanding of the relevant controls relating to the Board’s going concern assessment process;
• We inspected the Group ORSA (‘Own Risk and Solvency Assessment’) to support our understanding of the key risks faced
by the Group, its ability to continue as a going concern, and the longer-term viability of the Group;
• We evaluated the Board’s going concern assessment in light of the current macroeconomic uncertainties;
• We considered the available cash and cash equivalents balance at year-end and assessed how this is forecast to
fluctuate over a period of at least 12 months from the date of signing the financial statements in line with the Board’s
forecast performance. This analysis included assessing the amount of headroom in the forecasts considering cash and
regulatory liquidity requirements;
• We assessed management’s stress testing and reverse stress testing over the projected profitability, solvency and
liquidity positions and the likelihood of the various scenarios that could adversely impact upon the Group’s liquidity and
solvency headroom;
• We obtained and inspected correspondence between the Group and its regulators, as well as reviewed the Group Risk
Committee meeting minutes, to identify any items of interest which could potentially indicate either non-compliance with
regulation or potential litigation or regulatory action held against the Group; and
• We assessed the appropriateness of the Going Concern disclosures included in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt on the Group's and Parent Company’s ability to continue as
a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material
to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors
considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant
sections of this report.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Independent Auditor’s Report continued
to the members of Admiral Group plc
Admiral Group Plc Annual Report and Accounts 2025
198
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement (whether
or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit
strategy; the allocation of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
5.1. Valuation of UK motor large bodily injury reserves within the gross liability for incurred claims
Key audit
matter
description
The Group’s gross liability for incurred claims totalled £4,190m as at 31 December 2025 (31 December
2024: £3,673m). Judgements made in determining the valuation of the gross liability for incurred claims
are by far the most significant in terms of their impact on the Group’s financial position. Setting these
claims reserves is an inherently subjective exercise and small changes in underlying assumptions may
have a material impact on the overall result reported.
Specifically, our significant areas of focus are the Group’s selection of the incurred claims development
assumptions including inflation for large bodily injury claims arising in the UK motor insurance business.
These particular claims result in higher individual claim reserves and are more judgemental, in terms of the
development of the ultimate losses, due to the longer-term nature of the Group’s exposure (compared to
property damage claims). Therefore, we determine this as a key audit matter.
Refer to page 149 in the Audit Committee report where this is included as a significant matter and note 3
and note 5f in the financial statements which refer to this matter.
How the scope
of our audit
responded
to the key
audit matter
In responding to this matter, we have involved our actuarial specialists and performed the following
procedures:
• We obtained an understanding of, and tested, the relevant controls governing the selection of the
incurred claims development assumptions for large bodily injury claims in the UK motor insurance
business, as well as the wider process supporting the valuation of the liability for incurred claims;
• We obtained and inspected the reports from management and assessed management’s incurred claims
development assumptions for UK motor insurance business;
• We benchmarked the assumptions against available industry data and considered the comparison in the
context of the risk profile of the Group’s portfolio and the year-on-year changes in these assumptions;
• We undertook a graphical analysis of incurred development patterns to assess and challenge the
assumptions considering the trends and patterns observed; and
• We obtained and inspected the external actuary’s reports and performed an assessment of the incurred
claims development assumptions, including evaluating how these compare to management’s selected
assumptions, to support our assessment of management’s incurred claims development assumptions
for UK motor insurance business.
Key
observations
Based on the procedures described above, we concluded that the valuation of UK motor large bodily injury
reserves within the gross liability for incurred claims is appropriate.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Independent Auditor’s Report continued
to the members of Admiral Group plc
Admiral Group Plc Annual Report and Accounts 2025
199
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the
economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both
in planning the scope of our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group financial statements
Parent Company financial statements
Materiality
£47.9 million (2024: £41.9 million)
£9.2 million (2024: £6.2 million)
Basis for
determining
materiality
5% of profit before tax from continuing operations
(2024: 5% of profit before tax).
3% of two-year average of net assets pre-final
dividend (2024: 3% of two-year average of net
assets pre final dividend).
Rationale for the
benchmark applied
We consider profit before tax to be the critical
benchmark of the performance of the Group and
consider this benchmark to be suitable having
compared to other benchmarks. Our materiality
equates to 1% of insurance revenue and 3% of
equity (2024: 1% of insurance revenue and 3% of
equity)
The Parent Company primarily exists as the
holding company which carries investments
in Group subsidiaries and is the issuer of listed
securities. We consider that net assets is the
critical benchmark for the Parent Company.
The measure uses a two-year average of net
assets pre final dividend which we consider
appropriate given the inherent volatility associated
with the timing of dividend payments.
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected
and undetected misstatements exceed the materiality for the financial statements as a whole.
Group financial statements
Parent Company financial statements
Performance
materiality
70% (2024: 70%) of Group materiality
70% (2024: 70%) of Parent Company materiality
Basis and rationale
for determining
performance
materiality
In determining performance materiality, we considered the following factors:
• our risk assessment, including our assessment of the Group’s overall control environment and
that we consider it appropriate to rely on controls over a number of business processes; and
• our past experience of the audit, which has indicated a low number of uncorrected misstatements
identified in prior periods.
6.3. Error reporting threshold
We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £2.4m
(2024: £2.1m), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds.
We also report to the Audit Committee on disclosure matters that we identified when assessing the overall presentation
of the financial statements.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Independent Auditor’s Report continued
to the members of Admiral Group plc
Admiral Group Plc Annual Report and Accounts 2025
200
7. An overview of the scope of our audit
7.1. Identification and scoping of components
The nature of the Group is such that we have identified components primarily by legal entity. We assessed the qualitative
and quantitative characteristics of each financial statement line item and considered the relative contribution of each
component to these line items in determining which components would be subject to an audit of the entire financial
information, specified audit procedures, or review at group level.
Five (2024: five) components of the Group have been subject to an audit of the entire financial information: Admiral
Insurance (Gibraltar) Limited, Admiral Insurance Company Limited, UK operations of EUI Limited, Admiral Europe Compañía
de Seguros, and Admiral Group plc (the Parent company).
Specified audit procedures, designed to address specific audit risks, were completed for eight (2024: seven) further
components: Elephant Insurance Company, Admiral Intermediary Services S.A, Admiral Financial Services Limited, Seren
One Limited, Seren Two Limited, Seren Three Limited, Able Insurance Services Limited, and Admiral Law Limited.
The scope of work over the above components was completed to individual component performance materiality levels
which ranged from £2.1m to £24.6m (2024: £2.5m to £15.9m) dependent upon the relative financial contribution of each
individual component to the Group.
For the remaining components, we performed analysis at an aggregated Group level to re-assess our evaluation that there
were no identified risks of material misstatement in any of these components.
The components within the scope of our audit of entire financial information and specified audit procedures account for 99%
(2024: 99%) of the Group’s profit before tax, above 99% (2024: 99%) of the Group’s revenue and above 99% (2024: 99%) of
the Group’s net assets.
Finally, we performed audit procedures over the consolidation process by testing the material consolidation adjustments
made by management in calculating their consolidated financial statements.
Revenue
Profit before tax
Net assets
Audit of the entire financial
information 95%
Audit of the entire financial
information 95%
Audit of the entire financial
information 98%
Specified audit procedures 5%
Specified audit procedures 4%
Specified audit procedures 2%
Review at group level <1%
Review at group level 1%
Review at group level <1%
7.2. Our consideration of the control environment
We obtained an understanding of and tested the relevant controls within the Group, including controls over the following
business processes: financial reporting, insurance revenue, other revenue, insurance service expenses, liability for incurred
claims, liability for remaining coverage, financial investments, reinsurance and coinsurance, cash and investments. We also
identified the key IT systems in the Group that were relevant to the audit, and involved our IT specialists to support our
testing of general IT controls over these systems, including the policy administration system, claims administration systems
and the data warehouse.
7.3. Our consideration of climate-related risks
In planning our audit, we have considered the impact of climate change on the Group’s operations and subsequent impact
on its financial statements. The Group sets out its assessment of the potential impact on pages 103 and 104 of the Emerging
Risks section.
In conjunction with our climate reporting specialists, we have held discussions with the Group to understand management’s:
• process for identifying affected operations, including the governance and controls over this process, and the subsequent
effect on the financial reporting of the Group; and
• long-term strategy to respond to climate-related risks as they emerge including the effect on the Group’s forecasts.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Independent Auditor’s Report continued
to the members of Admiral Group plc
Admiral Group Plc Annual Report and Accounts 2025
201
A
B
C
A
B
C
A
B
C
In addition, our audit work also involved:
• challenging the completeness of the physical and transition risks identified based on our understanding of the Group,
and considered in the Group’s climate risk assessment and the conclusion that there is no material impact of climate
change risk on the current year financial reporting;
• assessing the Group’s qualitative analysis which supports the Group’s conclusion that there is no material financial
statement impact of climate risk; and
• assessing disclosures in the Annual Report against the requirements of the TCFD framework, paragraph 8(a) of Listing
Rule 9.8.6R, as well as the mandatory climate-related financial disclosure requirements (‘CFD’); and
• evaluating the appropriateness of disclosures included in the financial statements in Note 2.
We have not been engaged to provide assurance over the accuracy of TCFD disclosures set out on pages 76 to 86 of
the annual report. As part of our procedures, we are required to read these disclosures and to consider whether they are
materially inconsistent with the financial statements or our knowledge obtained during the course of our audit. We did not
identify any material inconsistencies as a result of these procedures.
7.4. Working with other auditors
We engaged local component auditors, being Deloitte member firms in Spain and the US, to perform the audit work over
entities residing in these respective territories. We also engaged component auditors in the Deloitte UK firm to perform
the audit work over the Admiral Money segment of the Group. We directed and supervised the work of Deloitte Spain and
Deloitte UK, including through in-person visits and through remote communication and review of their work.
For the US, we directed and supervised the work of the component auditor by having frequent phone calls with the
component audit team, participating in video conferences and reviewing key audit documentation remotely.
8. Other information
The other information comprises the information included in the annual report other than the financial statements and
our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly
stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears
to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether
this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the Parent Company’s
ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease
operations, or have no realistic alternative but to do so.
10. Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Independent Auditor’s Report continued
to the members of Admiral Group plc
Admiral Group Plc Annual Report and Accounts 2025
202
11. Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with
our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent
to which our procedures are capable of detecting irregularities, including fraud is detailed below.
11.1 Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance
with laws and regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance including the design of the Group’s
remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
• the Group’s own assessment of the risks that irregularities may occur either as a result of fraud or error;
• results of our enquiries of management, internal audit, the directors and the Audit Committee about their own
identification and assessment of the risks of irregularities, including those that are specific to the Group’s sector;
• any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures
relating to:
– identifying, evaluating and complying with laws and regulations and whether they were aware of any instances
of non-compliance;
– detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected
or alleged fraud;
– the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
• the matters discussed among the audit engagement team including component audit teams and relevant internal
specialists, including tax, actuarial, financial instruments, IT, climate, and industry specialists, regarding how and where
fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for
fraud and identified the greatest potential for fraud in the following area: valuation of UK motor large bodily injury claims
reserves within the liability for incurred claims. In common with all audits under ISAs (UK), we are also required to perform
specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on provisions
of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the
financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Listing
Rules, Solvency II regulation and relevant tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial
statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty.
These included the Group’s operating licence, and the Financial Conduct Authority and the Prudential Regulation Authority
regulations.
11.2. Audit response to risks identified
As a result of performing the above, we identified the valuation of UK motor large bodily injury reserves within the liability for
incurred claims as a key audit matter related to the potential risk of fraud. The key audit matters section of our report explains
the matter in more detail and also describes the specific procedures we performed in response to that key audit matter.
In addition to the above, our procedures to respond to the risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance
with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• enquiring of management, the Audit Committee and in-house legal counsel concerning actual and potential litigation
and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Independent Auditor’s Report continued
to the members of Admiral Group plc
Admiral Group Plc Annual Report and Accounts 2025
203
• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing
correspondence with HMRC the Financial Conduct Authority and the Prudential Regulation Authority; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries
and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a
potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal
course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members,
including internal specialists and component audit teams, and remained alert to any indications of fraud or non-compliance
with laws and regulations throughout the audit.
Report on other legal and regulatory requirements
12. Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the directors’ remuneration report to be audited has been properly prepared in accordance
with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which the financial
statements are prepared is consistent with the financial statements; and
• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and their environment
obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the
directors’ report.
13. Corporate Governance Statement
The Listing Rules require us to review the directors' statement in relation to going concern, longer-term viability and that
part of the Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate
Governance Code specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the
Corporate Governance Statement is materially consistent with the financial statements and our knowledge obtained
during the audit:
• the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and
any material uncertainties identified set out on page 193;
• the directors’ explanation as to its assessment of the Group’s prospects, the period this assessment covers and why
the period is appropriate set out on page 105 to 106;
• the directors' statement on fair, balanced and understandable set out on page 193;
• the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on
page 97;
• the section of the annual report that describes the review of effectiveness of risk management and internal control
systems set out on page 157 to 158; and
• the section describing the work of the Audit Committee set out on page 147 to 153.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Independent Auditor’s Report continued
to the members of Admiral Group plc
Admiral Group Plc Annual Report and Accounts 2025
204
14. Matters on which we are required to report by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not received all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not
been received from branches not visited by us; or
• the Parent Company financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration
have not been made or the part of the directors’ remuneration report to be audited is not in agreement with the accounting
records and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the Audit Committee, we were appointed by shareholders’ approval at the Annual General
Meeting on 9 May 2025 to audit the financial statements for the year ending 31 December 2025 and subsequent financial
periods. The period of total uninterrupted engagement including previous renewals and reappointments of the firm is ten
years, covering the years ending 31 December 2016 to 31 December 2025.
15.2. Consistency of the audit report with the additional report to the Audit Committee
Our audit opinion is consistent with the additional report to the Audit Committee we are required to provide in accordance
with ISAs (UK).
16. Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are
required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit
work, for this report, or for the opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule (DTR) 4.1.15R –
DTR 4.1.18R, these financial statements will form part of the Electronic Format Annual Financial Report filed on the National
Storage Mechanism of the FCA in accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides no assurance
over whether the Electronic Format Annual Financial Report has been prepared in compliance with DTR 4.1.15R –
DTR 4.1.18R.
Adam Addis (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
4 March 2026
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Independent Auditor’s Report continued
to the members of Admiral Group plc
Admiral Group Plc Annual Report and Accounts 2025
205
Year ended
Note
31 December
2025
£m
31 December
2024
£m1
Insurance revenue
5
4,979.3
4,553.4
Insurance service expenses
5
(3,967.1)
(3,349.7)
Insurance service result before reinsurance
1,012.2
1,203.7
Net expense from reinsurance contracts held
5
(225.9)
(501.6)
Insurance service result
786.3
702.1
Investment return - Effective interest rate
6
129.0
103.4
Investment return - Other
6
80.4
72.8
Investment return
6
209.4
176.2
Finance expenses from insurance contracts issued
5
(140.9)
(128.4)
Finance income from reinsurance contracts held
5
29.4
35.9
Net insurance finance expenses
(111.5)
(92.5)
Net insurance and investment result
884.2
785.8
Interest income from financial services
7
147.3
113.5
Interest expense related to financial services
7
(58.3)
(37.2)
Net interest income from financial services
89.0
76.3
Other revenue and profit commission
8
233.5
189.6
Other operating expenses
9
(321.5)
(293.5)
Other operating expenses recoverable from co-insurers
9
126.5
129.3
Movement in expected credit loss provision and write-offs
6
(29.8)
(34.6)
Other income and expenses
8.7
(9.2)
Operating profit
981.9
852.9
Finance costs
6
(24.4)
(27.0)
Finance costs recoverable from co-insurers
6
0.4
0.6
Net finance costs
(24.0)
(26.4)
Profit before tax from continuing operations
957.9
826.5
Taxation expense
10
(212.6)
(175.3)
Profit after tax from continuing operations
745.3
651.2
(Loss)/ Profit before tax from discontinued operations
13
(3.1)
12.7
Taxation expense
13
0.1
(1.0)
(Loss)/ Profit after tax from discontinued operations
13
(3.0)
11.7
Profit after tax from continuing and discontinued operations
742.3
662.9
Profit after tax attributable to:
Equity holders of the parent
742.6
663.3
Non-controlling interests (NCI)
(0.3)
(0.4)
742.3
662.9
Earnings per share - from continuing operations
Basic
12
247.4p
212.8p
Diluted
12
242.7p
212.8p
Earnings per share - from continuing and discontinued operations
Basic
12
246.4p
216.6p
Diluted
12
241.7p
216.6p
Dividends declared and paid (total)
12
715.4
369.8
Dividends declared and paid (per share)
12
236.0p
123.0p
1 The Consolidated Income Statement and all related notes to the financial statements for the year ended 31 December 2024 have been
re-presented due to the US Motor business being classified as discontinued.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Consolidated Income Statement
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
206
Year ended
31 December
2025
£m
31 December
2024
£m
Profit for the period - from continuing and discontinued operations
742.3
662.9
Other comprehensive income
Items that are or may be reclassified to profit or loss
Movements in fair value reserve
48.7
11.3
Deferred tax in relation to movement in fair value reserve
(2.8)
2.4
Movements in insurance finance reserve - insurance contracts
(54.4)
7.9
Deferred tax in relation to movement in insurance finance reserve - insurance contracts
9.5
(5.1)
Movements in insurance finance reserve - reinsurance contracts
9.6
3.3
Deferred tax in relation to movement in insurance finance reserve - reinsurance contracts
(2.1)
1.3
Exchange differences on translation of foreign operations
3.1
(4.2)
Movement in hedging reserve
(13.5)
(4.1)
Deferred tax in relation to movement in hedging reserve
3.4
1.0
Other comprehensive income for the period, net of income tax
1.5
13.8
Total comprehensive income for the period
743.8
676.7
Total comprehensive income for the period attributable to:
Equity holders of the parent
744.1
677.1
Non-controlling interests
(0.3)
(0.4)
Total comprehensive income for the period
743.8
676.7
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
207
As at
Note
31 December
2025
£m
31 December
2024
£m
ASSETS
Property and equipment
11
80.2
87.8
Intangible assets
11
327.6
321.0
Deferred tax asset
10
50.7
19.8
Corporation tax asset
10
18.1
18.1
Reinsurance contract assets
5
1,080.5
988.6
Loans and advances to customers
7
1,628.7
1,106.9
Other receivables
6
277.7
225.2
Financial investments
6
5,258.2
4,863.2
Cash and cash equivalents
6
301.1
313.6
Total assets
9,022.8
7,944.2
EQUITY
Share capital
12
0.3
0.3
Share premium account
13.1
13.1
Other reserves
(29.3)
(26.7)
Retained earnings
1,459.2
1,383.4
Total equity attributable to equity holders of the parent
1,443.3
1,370.1
Non-controlling interests
0.3
0.6
Total equity
1,443.6
1,370.7
LIABILITIES
Insurance contracts liabilities
5
5,399.2
4,961.4
Subordinated and other financial liabilities
6
1,819.9
1,322.2
Trade and other payables
6,11
217.2
175.3
Lease liabilities
6
73.6
79.6
Corporation tax liabilities
10
69.3
35.0
Total liabilities
7,579.2
6,573.5
Total equity and total liabilities
9,022.8
7,944.2
The accompanying notes form part of these financial statements. These financial statements were approved by the Board
of Directors on 4 March 2026 and were signed on its behalf by:
Geraint Jones
Chief Financial Officer
Admiral Group plc
Company Number: 03849958
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Consolidated Statement of Financial Position
As at 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
208
Year ended
Note
31 December
2025
£m
31 December
2024
£m
Profit after tax - from continuing and discontinued operations
742.3
662.9
Adjustments for non-cash items:
- Depreciation of property, plant and equipment and right-of-use assets
11
15.9
18.8
- Impairment/ disposal of property, plant and equipment and right-of-use assets
11
0.2
9.1
- Amortisation and impairment of intangible assets
11
63.1
66.7
- Loss on disposal of Elephant entities held for sale
24.5
–
- Movement in expected credit loss provision
13.2
10.3
- Share scheme charges
9
75.0
67.8
- Interest expense on funding for loans and advances to customers
46.8
32.3
- Investment return
6
(212.3)
(177.4)
- Profit on disposal of Insurify share option
9
–
(12.5)
- Finance costs, including unwinding of discounts on lease liabilities
6
24.4
27.7
- Taxation expense
10
212.6
176.3
Change in gross insurance contract liabilities
5
502.2
421.6
Change in reinsurance assets
5
(122.7)
184.9
Change in insurance and other receivables
6
(15.8)
182.4
Change in gross loans and advances to customers
7
(689.1)
(231.4)
Sale proceeds from the loan book
7
146.4
–
Funding received relating to forward flow loans
7
282.3
–
Forward flow loans transferred
7
(279.5)
–
Change in trade and other payables, including tax and social security
11
44.9
(136.1)
Cash flows from operating activities, before movements in investments
874.4
1,303.4
Purchases of financial instruments
(9,339.4)
(8,083.3)
Proceeds on disposal/ maturity of financial instruments
8,973.2
7,182.4
Interest and investment income received
120.4
90.6
Cash flows from operating activities, net of movements in investments
628.6
493.1
Taxation payments
(192.1)
(124.1)
Net cash flow from operating activities
436.5
369.0
Cash flows from investing activities:
Purchases of property, equipment and software
(74.3)
(61.7)
Intangible assets acquired through business combinations
–
(82.5)
Net costs paid on sale of Elephant entities
(1.3)
–
Cash included in the disposal of entities
(19.6)
–
Net cash used in investing activities
(95.2)
(144.2)
Cash flows from financing activities:
Proceeds on issue of loan backed securities
6
713.8
372.2
Repayment of loan backed securities
6
(299.1)
(194.1)
Proceeds from other financial liabilities
6
262.3
177.7
Repayment of other financial liabilities
6
(180.4)
(170.1)
Finance costs paid, including interest expense paid on funding for loans
(76.0)
(76.7)
Proceeds on hedging derivatives
5.3
15.6
Repayment of lease liabilities
6
(8.4)
(12.7)
Equity dividends paid
12
(715.4)
(369.8)
Acquisition of shares by employee benefit trusts
(35.3)
–
Net cash used in financing activities
(333.2)
(257.9)
Net increase/ (decrease) in cash and cash equivalents
8.1
(33.1)
Cash and cash equivalents at 1 January
313.6
353.1
Effects of changes in foreign exchange rates
(20.6)
(6.4)
Cash and cash equivalents at period end
6
301.1
313.6
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Consolidated Cashflow Statement
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
209
Attributable to the owners of the Company
Note
Share
Capital
£m
Share
premium
account
£m
Fair
value
reserve
£m
Hedging
reserve
£m
Foreign
exchange
reserve
£m
Insurance
finance
reserve
£m
Retained
profit
and loss
£m
Total
£m
Non-
controlling
interests
£m
Total
equity
£m
At 1 January 2025
0.3
13.1 (99.8)
4.4
(4.0)
72.7 1,383.4 1,370.1
0.6 1,370.7
Profit/(loss) for the
period - from
continuing and
discontinued
operations
–
–
–
–
–
– 742.6 742.6
(0.3) 742.3
Other comprehensive
income
–
–
45.9
(10.1)
3.1
(37.4)
–
1.5
–
1.5
Total comprehensive
income for the
period
–
– 45.9
(10.1)
3.1
(37.4) 742.6 744.1
(0.3) 743.8
Transactions with
equity holders
Dividends
12
–
–
–
–
–
– (715.4) (715.4)
– (715.4)
Share scheme credit
–
–
–
–
–
–
75.0
75.0
–
75.0
Shares acquired by
employee benefit
trusts
–
–
–
–
–
–
(35.3) (35.3)
– (35.3)
Deferred tax on share
scheme credit
–
–
–
–
–
–
8.9
8.9
–
8.9
Transfer to loss on
disposal of assets
held for sale
–
–
(0.5)
–
(3.6)
–
–
(4.1)
–
(4.1)
Total transactions
with equity holders
–
–
(0.5)
–
(3.6)
– (666.8) (670.9)
– (670.9)
As at 31 December
2025
0.3
13.1 (54.4)
(5.7)
(4.5)
35.3 1,459.2 1,443.3
0.3 1,443.6
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Consolidated Statement of Changes in Equity
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
210
Attributable to the owners of the Company
Note
Share
Capital
£m
Share
premium
account
£m
Fair
value
reserve
£m
Hedging
reserve
£m
Foreign
exchange
reserve
£m
Insurance
finance
reserve
£m
Retained
profit
and loss
£m
Total
£m
Non-
controlling
interests
£m
Total
equity
£m
At 1 January 2024
0.3
13.1 (113.5)
7.5
0.2
65.3 1,018.9 991.8
1.0 992.8
Profit/(loss) for the
period - from
continuing and
discontinued
operations
–
–
–
–
–
– 663.3 663.3
(0.4) 662.9
Other comprehensive
income
–
–
13.7
(3.1)
(4.2)
7.4
–
13.8
–
13.8
Total comprehensive
income for the
period
–
–
13.7
(3.1)
(4.2)
7.4 663.3 677.1
(0.4) 676.7
Transactions with
equity holders
Dividends
12
–
–
–
–
–
– (369.8) (369.8)
– (369.8)
Share scheme credit
–
–
–
–
–
–
67.8
67.8
–
67.8
Deferred tax on share
scheme credit
–
–
–
–
–
–
3.2
3.2
–
3.2
Transfer to loss on
disposal of assets
held for sale
–
–
–
–
–
–
–
–
–
–
Total transactions
with equity holders
–
–
–
–
–
– (298.8) (298.8)
– (298.8)
As at 31 December
2024
0.3
13.1 (99.8)
4.4
(4.0)
72.7 1,383.4 1,370.1
0.6 1,370.7
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Consolidated Statement of Changes in Equity
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
211
General information
Admiral Group plc is a public limited Company incorporated in England and Wales. Its registered office is at Tŷ Admiral,
David Street, Cardiff, CF10 2EH and its shares are listed on the London Stock Exchange. The nature of Admiral Group
operations and its principal activities are set out in the Business model section on page 6 onwards.
1. Basis of preparation
The consolidated financial statements have been prepared and approved by the Directors in accordance with United
Kingdom adopted international accounting standards in conformity with the requirements of the Companies Act 2006.
The Company has elected to prepare its Parent Company financial statements in accordance with Financial Reporting
Standard 101 Reduced Disclosure Framework (‘FRS 101’).
The accounting policies set out in the notes to the financial statements have, unless otherwise stated, been applied
consistently to all periods presented in these Group financial statements.
The financial statements are prepared on the historical cost basis, except for the revaluation of financial assets classified
as fair value through profit or loss or as fair value through other comprehensive income, and insurance and reinsurance
contract assets and liabilities which are measured at their fulfilment value in accordance with IFRS 17 Insurance Contracts.
The Group and Company financial statements are presented in pounds sterling, rounded to the nearest £0.1 million.
Cashflows from operating activities before movements in investments comprise all cashflows arising from the Group’s
insurance and reinsurance activities, and from loans and advances issued to customers. Cashflows from financing activities
include the cashflows on issues of loan backed securities, lease liabilities and other financial liabilities.
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and can affect those returns through its power over the entity.
In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. The acquisition
date is the date on which control is transferred to the acquirer. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date control ceases. Losses applicable
to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-
controlling interests to have a deficit balance.
The Group has securitised certain loans and advances to customers by the transfer of the loans to special purpose entities
(‘SPEs’) controlled by the Group. Securitisation enables a subsequent issuance of debt by the SPEs to investors who gain
the security of the underlying assets as collateral. Further information is provided in note 6.
These SPEs are fully consolidated into the Group financial statements under IFRS 10 Consolidated Financial Statements,
as the Group controls the entity in line with the above definition.
The Group has employee benefit trusts through which its employee share scheme obligations are settled. Prior to 2025,
new shares were issued and transferred to the trusts to meet these obligations. During the year, the Group advanced a loan
to fund the market purchase of shares. This resulted in the Group obtaining control of the trusts and consequently
consolidating the trusts under IFRS 10 Consolidated Financial Statements.
In applying the Group’s accounting policies as described in the notes to the financial statements, the Directors are required
to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and
to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from
other sources.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to
be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values
of assets and liabilities that are not readily apparent from other sources.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the year in which the estimate is reviewed. To the extent that a change in an accounting estimate gives rise to
changes in assets and liabilities, the movement is recognised by adjusting the carrying amount of the related asset or liability
in the period in which the change occurs. Further information regarding the Group’s critical accounting judgements and
estimates is provided in note 2 to the financial statements.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
212
Going concern
The consolidated financial statements have been prepared on a going concern basis. In considering this requirement,
the Directors have taken into account the following:
• The Group’s profit projections, including:
– Changes in premium rates and projected policy volumes across the Group’s insurance businesses
– Projected cost of settling claims across all of the Group’s insurance businesses, including the impact of continuing,
albeit reducing, high levels of inflation
– Projected trends in motor claims frequency
– Projected trends in other revenue generated by the Group’s insurance business from fees and the sale of
ancillary products
– Projected contributions to profit from businesses other than the UK Motor insurance business
– Expected trends in unemployment in the context of credit risks and the growth of the Group’s consumer
lending business
• The Group’s solvency position, which continues to be closely monitored. The Group continues to maintain a strong
solvency position above target levels
• The adequacy of the Group’s liquidity position after considering all the factors noted above
• The results of business plan scenarios and stress tests on the projected profitability, solvency and liquidity positions
including the impact of severe downside scenarios that assume severe adverse economic, credit and trading stresses
• The regulatory environment, focusing on regulatory guidance issued by the FCA and the PRA in the UK and regular
communications between management and regulators
• A review of the Group’s principal risks and uncertainties and the assessment of emerging risks, including economic
uncertainty, tariffs, trade negotiations, and cyber and climate-related risks.
Following consideration of all of the above, the Directors have reasonable expectation that the Group has adequate resources
to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report, and that it is
therefore appropriate to adopt the going concern basis in preparing the consolidated financial statements.
Further information regarding the Company’s business activities, together with the factors likely to affect its future
development, performance and position, is set out in the Strategic Report. Further information regarding the financial
position of the Company, its cashflows, liquidity position and borrowing facilities are also described in the Strategic Report.
In addition, note 3 to the financial statements includes the Group’s insurance and financial risk management objectives,
details of its financial instruments and its exposures to credit risk and liquidity risk; and its objectives, policies and processes
for managing its capital.
Adoption of new and revised standards
The Group has adopted the following IFRSs and interpretations during the year, which have been issued and endorsed:
• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (effective 1 January
2025).
The application of the amendments listed above has not had a material impact on the Group’s results, financial position
and cashflows.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
213
New and revised IFRS Standards in issue but not yet effective
At the date of authorisation of these financial statements, the Group has not applied the following new and revised IFRS
Standards that have been issued but are not yet effective:
• Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Classification and
Measurement of Financial Instruments (effective 1 January 2026)
• Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Contracts Referencing
Nature-dependent Electricity (effective 1 January 2026)
• Annual Improvements to IFRS Accounting Standards – Volume 11 (effective 1 January 2026)
• IFRS 18: Presentation and Disclosure in Financial Statements (effective 1 January 2027)
– IFRS 18 replaces IAS 1, carrying forward many of the requirements in IAS 1 unchanged and complementing them
with new requirements. The Group will apply the new standard from its mandatory effective date of 1 January 2027.
Even though IFRS 18 will not impact the recognition or measurement of items in the financial statements, it is anticipated
that the application of these amendments may have an impact on the presentation group’s consolidated financial
statements in future periods
• IFRS 19: Subsidiaries without Public Accountability: Disclosures and Amendments (effective 1 January 2027) –
not yet endorsed in the UK
• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation
Currency (effective 1 January 2027) – not yet endorsed in the UK.
The Directors do not expect that the adoption of the Standards listed above will have a material impact on the financial
statements of the Group in future periods.
2. Critical accounting judgements and estimates
2.1 Critical accounting judgements
The following are the critical judgements, apart from those involving estimations (which are presented separately below),
that the Directors have made in the process of applying the Group’s accounting policies and that have the most significant
effect on the amounts recognised in the financial statements.
Premium allocation approach (‘PAA’)
The Group applies the PAA to all of its insurance and reinsurance contracts.
The coverage period of insurance contracts is typically one year or less, including insurance contract services arising from
all premiums within the contract boundary. The Group does not consider the existing products with more than 12 months
coverage to be material. The Group’s insurance contracts are therefore automatically eligible for the PAA.
However, the Group’s reinsurance contracts are not automatically eligible for the PAA given that the coverage period is
greater than one year. The Group has modelled the expected cashflows and reasonably possible future scenarios for its
reinsurance contracts, and as a result expects that the measurement of the asset for remaining coverage for the group
containing those contracts under the PAA does not differ materially from the measurement that would be produced applying
the general model. Its reinsurance contracts are therefore eligible for the PAA.
The modelling of the cashflows associated with the Group’s reinsurance contracts, and reasonably possible future
scenarios, is a key area of judgement that impacts the PAA eligibility assessment and the resulting measurement of
and presentation of reinsurance contracts in these financial statements.
Classification of the Group’s contracts with reinsurers as reinsurance contracts
A contract is required to transfer significant insurance risk in order to be classified as such. Management reviews all terms
and conditions of each such insurance and reinsurance contract in order to be able to make this judgement. In particular,
all reinsurance contracts (both excess of loss and quota share contracts) held by the Group have been assessed and it has
been concluded that all contracts transfer significant insurance risk and have therefore been classified and accounted for
as reinsurance contracts within these financial statements.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
214
Unit of account: combination of insurance contracts and separation of distinct components
The lowest unit of account in IFRS 17 is the contract and there is a presumption that a contract with the legal form of a
single contract would generally be considered a single contract in substance. However, there might be certain facts and
circumstances where legal form does not reflect the substance of the arrangement and separation of the contract is
required, or alternatively circumstances when contracts should be combined, such as when a set of insurance contracts
with the same or a related counterparty may achieve, or be designed to achieve, an overall commercial effect.
Overriding the legal contract to reflect substance is not a policy choice; it is a significant judgement requiring careful
consideration of all relevant facts and circumstances. The following considerations are deemed relevant in assessing
whether the contracts should be separated, or alternatively, combined:
• Whether there is interdependency between the different risks covered
• Whether components lapse together, and
• Whether components can be priced and sold separately.
In addition, any cashflows related to promises to transfer distinct goods or services, other than insurance contract services,
that are within the host insurance contract are separated and recognised by applying IFRS 15. In determining whether there
are such distinct components, the following is considered:
• Whether the policyholder can benefit from the good or service on its own or together with other resources available
to the policyholder
• Whether the cashflows and risks associated with the good or services are highly interrelated with the cashflows and risks
associated with the insurance components in the contract
• Whether the Group provides a significant service in integrating the good or service with the insurance components.
After separating any such distinct components, IFRS 17 is applied to all remaining components of the (host) insurance
contract.
The Group has determined that, in applying these requirements to its insurance contracts:
• The individual insurance policies contained in a ‘multi-cover policy’ are treated as separate contracts, given that the
components can be priced and sold separately, there is little interdependency between the risks covered, and the
components can lapse separately
• The cashflows associated with administration fees (for changes to the underlying insurance policy), and instalment
income (being the additional fees payable by a policyholder associated with paying for an insurance contract over 12
months, rather than in one up-front payment), are non-distinct given that the policyholder cannot benefit from these
services separately and the services are highly interrelated with the core insurance policy. These cashflows are therefore
treated as insurance revenue under IFRS 17. However, for the component of the insurance policy that is underwritten
outside the Group by a third party insurer, the Group is performing an agency service on behalf of the third party insurer,
and therefore this component is treated as a separate component of revenue and accounted for under IFRS 15
• The cashflows associated with ancillary or ’add on’ products (which are sold within the same set of contracts as the core
product), are separated from the core product in cases where the policyholder can benefit from the product on its own,
and where the cashflows are not highly interrelated with the insurance components in the contract or the Group does not
provide a significant service in integrating the products.
In addition, the Group’s quota share reinsurance contracts contain profit commission arrangements. Under these
arrangements, there is a minimum guaranteed amount that the Group, as the policyholder, will always receive – either in
the form of profit commission, or as claims, or another contractual payment irrespective of the insured event happening.
The minimum guaranteed amounts have been assessed to be highly interrelated with the insurance component of the
reinsurance contacts and are, therefore, non-distinct investment components which are not accounted for separately.
Given that the receipt and payment of these non-distinct investment components do not relate to the provision of insurance
services, the amounts are excluded from the net reinsurance expenses in the Group’s Income Statement (i.e. both ceded
reinsurance premiums and ceded recoveries are presented net of the minimum guaranteed amount that the Group will
always receive).
Presentation of reinsurance ‘funds withheld’ contracts
The Group has a number of quota share reinsurance contracts that have funds withheld features, whereby the quota share
proportion of ceded premiums and related recoveries are retained by the Group, and settled on a net basis at commutation.
The only initial cashflows during the coverage period are therefore the payment of any reinsurer margin.
Under IFRS 17, the reinsurance assets related to these funds withheld contracts are presented on a cashflow basis i.e. the
full proportional share of ceded premiums and recoveries is not presented in either the Income Statement or the Statement
of Financial Position.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
215
Consolidation of the Group’s special purpose entities (‘SPEs’)
The Group has set up a number of SPEs in relation to the Loans businesses, whereby the Group securitises certain loans
by the transfer of the loans to the respective SPEs. The securitisation enables a subsequent issue of debt by the SPEs to
investors who thereby gain the security of the underlying assets as collateral.
The accounting treatment of SPEs has been assessed and it has been concluded that the entities should be fully
consolidated into the Group’s financial statements under IFRS 10. This is due to the fact that despite not having legal
ownership, the Group has control of the SPEs, being exposed to the returns and having the ability to affect those returns
through its power over the SPEs.
The SPEs have therefore been fully consolidated in the Group’s financial statements.
2.2 Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that
may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are discussed below.
Best estimate of future cashflows to fulfil insurance contracts
The ultimate cost of outstanding claims that have been incurred prior to the balance sheet date and that remain unsettled
at the balance sheet date, for material lines of business, is estimated by internal actuarial teams using a range of standard
actuarial claims projection techniques, (such as incurred and paid chain ladder techniques, Bornhuetter-Ferguson methods
and initial expected assumptions) to allow an actuarial assessment of their potential outcome. This includes an allowance
for unreported claims. The projection of the overall claims reserve is subject to comparison against equivalent outputs
produced by an independent external actuarial specialist for material lines of business.
Claims are segmented into groups with similar characteristics and which are expected to develop and behave similarly,
for example bodily injury (attritional and large) and damage claims, with specific projection methods selected for each
head of damage. Key sources of estimation uncertainty arise from both the selection of the projection methods and the
assumptions made in setting claims provisions.
Internal and external factors may affect the cost of settling claims in ways that wouldn’t be allowed for by standard actuarial
techniques; where this occurs adjustments to the technique, assumptions or result may be applied. Examples of these factors
include:
• Changes in the reporting patterns of claims impacting the frequency of bodily injury and damage claims
• Emerging inflationary trends on the average cost of bodily injury and damage claims
• The likelihood of bodily injury claims settling as Periodic Payment Orders
• Changes in the regulatory or legal environment that lead to changes in awards for bodily injury claims and associated
legal costs
• Changes to the underlying process and methodologies employed in setting and reviewing case reserve estimates.
Additional qualitative judgement is used to assess the extent to which past trends may not apply in future (e.g., to reflect
one-off occurrences, changes in external or market factors such as public attitudes to claiming, economic conditions, levels
of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy features and
claims handling procedures), in order to arrive at the estimated ultimate cost of claims that present the probability weighted
expected value outcome from the range of possible outcomes, taking account of all the uncertainties involved.
The Group also has the right to pursue third parties for payment of some or all costs. Estimates of salvage recoveries and
subrogation reimbursements are offset against ultimate claims costs. Other key circumstances affecting the reliability
of assumptions include delays in settlement.
Outputs of the actuarial projections include ultimate average cost per claim and claim frequency by accident year, implied
claims inflation metrics and ultimate loss ratios and burn costs by accident year and underwriting year. These metrics are
reviewed and challenged as part of the process for making allowance for the uncertainties noted.
The Group also provides a best estimate for remediation cost relating to UK Motor total loss claims settled in previous
periods and related processes. Management exercise judgement in assessing which customers should be remediated
and apply estimation techniques in deriving the remediation amounts included in these financial statements.
Refer to the analysis in note 5 to the financial statements for further detail on the methodology used to estimate future
cashflows to fulfil insurance contracts.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
216
Methods used to measure the risk adjustment for non-financial risk
The risk adjustment for non-financial risk is the compensation that is required for bearing the uncertainty about the amount
and timing of cashflows that arises from non-financial risk as the insurance contract is fulfilled. Because the risk adjustment
represents compensation for uncertainty, estimates are made on the degree of diversification benefits and expected
favourable and unfavourable outcomes in a way that reflects the Group’s degree of risk aversion. The Group estimates
an adjustment for non-financial risk separately from all other estimates.
Applying a confidence level technique (value at risk (‘VaR’)) on an ultimate basis, the Group estimates the probability
distribution of the present value of the future cashflows from insurance contracts at each reporting date and calculates
the risk adjustment for non-financial risk as the excess of the value at risk at the target confidence level over the expected
present value of the future cashflows. Factors included in the scenarios used to derive the risk adjustment distribution
include the impact of future claims inflation, Ogden shocks, and increases in claims costs due to regulatory decisions,
and internal operational changes.
The Group’s risk adjustment is set in a range between the 85th and 95th percentile, on a net of excess of loss reinsurance
basis. The level and estimate of risk adjustment required at the reporting date is made in a way that reflect the Group’s
degree of risk aversion, taking into account both internal factors (such as data quality and trends; diversification across
portfolios) and external factors (such as inflation and the political environment) that are relevant at that point in time.
To determine the risk adjustment for non-financial risk for reinsurance contracts, the Group applies these techniques
both gross and net of excess of loss reinsurance and derives the amount of risk being transferred to the reinsurer as the
difference between the two results. The net of excess of loss risk adjustment is allocated to quota share reinsurance
contracts on a proportional basis.
The risk adjustment is calculated at the issuing entity level. Diversification benefit is included across portfolios within the
entity, to reflect the diversification in contracts sold across entities.
The risk adjustment is then allocated down to each portfolio of contracts within the entity using a spread VaR methodology
to inform the allocation, to ensure coherence of the gross and excess of loss reinsurance results for risk adjustment across
the portfolios within an entity. Allocations of the risk adjustment to each underwriting year (annual cohort) of contracts within
a portfolio is performed manually, based on a systematic approach using management judgement. This typically involves
allocating a higher proportion of the risk adjustment to the more recent underwriting years that are less developed and
therefore more uncertain, compared to the proportion of risk adjustment allocated to older, more developed years.
Where a risk adjustment is required for the liability for remaining coverage due to facts and circumstances indicating that
contracts are onerous, this is derived using the risk adjustment for the earned portion of the reserves, adjusted for the
unearned claims reserves to reflect the difference in exposure/size of reserves and difference in drivers of risk in the
reserves.
Refer to the analysis in note 5 to the financial statements for further detail on the methods used in the period to measure
risk adjustment for non-financial risk.
Calculation of expected credit loss provision
The Group is required to calculate an expected credit loss (‘ECL’) allowance in respect of the carrying value of the Admiral
Money loan book in line with the requirements of IFRS 9. Due to the size of the loan book, the calculation of the ECL
is deemed to be a critical accounting judgement and includes key sources of estimation uncertainty.
Management applies judgement in:
• Determining the appropriate modelling solution for measuring the ECL
• Calibrating and selecting appropriate assumptions
• Setting the criteria for what constitutes a significant increase in credit risk
• Identification of key scenarios to include and determining the credit loss in these instances.
The key areas of estimation uncertainty are in the calculation of the probability of default (‘PD’) in the base scenario for stage
1 and 2 assets, and the determination, impact assessment and weighting of the forward-looking scenarios.
Refer to the analysis in note 7 to the financial statements for further detail on the Group’s ECL methodology applied
in the period.
Impact of climate-related risks on accounting judgements and estimates
Directors have assessed the impact of climate-related risks on the Group’s Statement of Financial Position. Whilst there
is inherent uncertainty in performing such an assessment, no material impact has been identified in respect of specific
judgements or estimates related to climate-related risks on valuations included within the financial statements.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
217
3. Financial risk
The Group’s activities expose it primarily to financial risk including insurance, reinsurance and reserve risk, credit risks and
wider market risks. The Board of Directors is ultimately responsible for the management of financial risks, although it has
delegated the detailed oversight of supervising risk management and internal control to the Group Risk Committee.
There are several key elements to the risk management environment throughout the Group. These are detailed in full in the
Corporate Governance Statement.
The Group’s primary business is the issuance of insurance contracts that transfer risk from policyholders to the Group and
its co-insurance partners. Primary risks arising from the issuance of insurance contracts include reserve risk; where claims
reserves may prove inadequate to cover the ultimate cost of claims which are by nature uncertain, and insurance risk; where
inappropriate premiums are charged for its insurance products leading to either insufficient premiums to cover claims costs
or uncompetitive rates resulting in reduced business volumes.
The Board has ultimate responsibility for the management of insurance risk, although as set out above, it has delegated the
detailed oversight of risk management to the Group Risk Committee. The Group has a Group Reserving Committee as well
as local Reserving Committees, which are comprised of senior managers within the finance, claims, pricing and actuarial
functions in the respective businesses which monitor reserving risks. The Reserving Committees primarily recommend the
approach for claims reserving but also review the systems and controls in place to support accurate reserving and consider
material reserving issues such as large bodily injury claims frequency and severity, the impact of changes in the claims
systems and the external environment.
The Board implements certain policies to mitigate and control the level of risk accepted by the Group. These include pricing
policies and claims management and administration processes, in addition to reserving policies and entering into
reinsurance arrangements.
3.1. Reserve risk
Reserve risk arises from:
• The uncertain nature of claims, in particular the development of large bodily injury claims
• Unexpected future impact of socioeconomic trends or regulatory changes, for example changes to the Ogden
discount rate
• Data issues and changes to the claims reporting process
• Failure to recognise claims trends in the market including a slow-down in the processing of recoveries and liabilities
with third party insurers which increases the estimation risk of these amounts
• Changes in underwriting and business written so that past trends are not necessarily a predictor of the future.
Understatement of reserves may result in not being able to pay claims when they fall due. Alternatively, overstatement
of reserves can lead to a surplus of funds being retained resulting in opportunity cost; for example, lost investment return
or insufficient resource to pursue strategic projects and develop the business.
Reserve risk is mitigated through a series of processes and controls. The key processes are as follows:
• Regular management and internal actuarial review of individual and aggregate case claim reserves, including regular
reporting of management information and exception reporting of significant movements
• Regular management and internal actuarial review of large claims, including claims settled or potentially settled by Periodic
Payment Orders (‘PPOs’) for which the uncertainty is increased by factors such as the lifetime of the claimant and
movements in the indexation for the cost of future care of the claimant
• Bi-annual external actuarial review of best estimate claims reserves using a variety of recognised actuarial techniques
• Internal actuarial analysis of reserve uncertainty through qualitative analysis, scenario testing and a range of stochastic
reserving techniques
• Ad hoc external reviews of reserving related processes and assumptions
• The application of a risk adjustment aligned with Group risk appetite.
As described in note 2, critical accounting judgements and estimates, the Group includes the risk adjustment for
non-financial risk within its measurement of insurance contracts and reinsurance contract assets, using a confidence level
technique, with the risk adjustment being set in a range between the 85th and 95th percentile, on a net of excess of loss
reinsurance basis. See note 3.4 for related sensitivity disclosures.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
218
There have been no significant changes to the underlying methods to calibrate the reserve distribution during 2025,
compared with the reserve risk modelling in 2024. There has been no significant change in the reserve risk distribution from
which the percentile is selected in 2025, with a trend of a modestly narrowing distribution as a result of lower volatility seen
within the best estimate.
The reserves for the Group, including risk adjustment, at 31 December 2025 equated to a 95th percentile confidence level
position (2024: 95th percentile) to the nearest whole percentile. The risk adjustment is reflective of the Group’s risk appetite,
taking into account an assessment of uncertainty, releases in the best estimate, inherent uncertainty in bodily injury claims,
and regulatory decisions along with an assessment of other external and internal factors.
3.2. Pricing risk
As noted above, the Group defines pricing risk as the risk that claims cost on business written but not yet earned is higher
than allowed for in the premiums charged to policyholders. Pricing risk is considered within Insurance risk within the Group’s
principal risks and uncertainties.
Key processes and controls operating to mitigate pricing risk are as follows:
• Experienced and focused senior management and teams in relevant business areas including pricing and
claims management
• A data-driven and analytical approach to regular monitoring of claims and underwriting performance
• Observations of weather events trends to understand climate impacts on frequency and severity
• Capability to identify and resolve underperformance promptly through changes to key performance drivers,
in particular pricing.
3.3. Reinsurance risk
Reinsurance risk is the risk of placement of ineffective reinsurance arrangements, or the economic risk of reduced
availability of reinsurance arrangements in future periods.
The Group mitigates these risks by ensuring that it has a diverse range of financially secure reinsurance partners, including
a long-term relationship with Munich Re and a number of other large reinsurers.
The Group purchases reinsurance as part of its risk mitigation programme. Reinsurance held is placed on both an excess
of loss basis, designed to protect the Group against very large individual claims and catastrophe losses, and a proportional
basis i.e. quota share reinsurance which is taken out to reduce the overall exposure of the Group to its insurance contracts.
Amounts recoverable from reinsurers are estimated in a manner consistent with underlying insurance contract liabilities and
in accordance with the reinsurance contract terms. Although the Group has reinsurance arrangements, it is not relieved of
its direct obligations to its policyholders and thus a credit exposure exists with respect to reinsurance held, to the extent
that any reinsurer is unable to meet its obligations.
Information regarding reinsurance credit risk is provided in note 3.5.
3.4. Sensitivity analysis
The following sensitivity analysis shows the impact on profit for reasonably possible movements in key assumptions with
all other assumptions held constant. The correlation of assumptions will have a significant effect in determining the ultimate
impacts, but to demonstrate the impact due to changes in each assumption, assumptions have been changed on an
individual basis. It should be noted that movements in these assumptions are non-linear.
The sensitivities are shown for UK Motor only, being the line of business where such sensitivities could have a material
impact at a Group level. The sensitivities are shown on a gross and net of quota share reinsurance basis to illustrate the
impacts on shareholder profit and equity before and after risk mitigation from quota share reinsurance. The sensitivities
(both gross and net) include the impacts of movements in co-insurance profit commission, given that underwriting year
loss ratios including risk adjustment, are a direct input to the calculation of profit commission.
Refer to note 8 to these financial statements for the accounting policy for co-insurance profit commission.
Risk adjustment
At a group level, the risk adjustment confidence level is equivalent to the 95th percentile (31 December 2024: 95th
percentile). The sensitivities below reflect the impact on profit before tax and equity as at the end of 2025 for changes in the
selection of the UK Motor risk adjustment confidence level at 31 December 2025, with all other assumptions remaining
unchanged.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
219
2025
Impact on profit
before tax gross of
reinsurance
£m
Impact on profit
before tax net of
reinsurance
£m
Impact on
equity gross of
reinsurance
£m
Impact on
equity net of
reinsurance
£m
Risk adjustment decrease to 90th percentile
93.3
75.9
77.2
62.2
Risk adjustment decrease to 85th percentile
170.9
138.3
141.2
113.3
Undiscounted loss ratios, including risk adjustment
The sensitivities reflect the impact on profit before tax in 2025 and equity as at the end of 2025, of a change in the booked
loss ratios for individual underwriting years (‘UWY’) as at 31 December 2025, with all other assumptions remaining unchanged.
UWY 2022 impact
on:
UWY 2023 impact
on:
UWY 2024 impact
on:
UWY 2025 impact
on:
£m1
PBT
Equity
PBT
Equity
PBT
Equity
PBT
Equity
Increase of 1%: gross of reinsurance
(17.8)
(14.4)
(24.8)
(20.5)
(33.6)
(27.7)
(13.9)
(11.8)
Increase of 5%: gross of reinsurance
(89.0)
(72.0)
(124.1) (102.4) (168.0) (138.6)
(69.7)
(58.8)
Increase of 10%: gross of reinsurance
(177.9) (144.0) (247.5) (204.3) (331.6) (273.9) (139.4)
(117.7)
Decrease of 1%: gross of reinsurance
17.8
14.4
24.8
20.5
33.6
27.7
13.9
11.8
Decrease of 5%: gross of reinsurance
88.4
71.6
118.8
98.5
168.0
138.6
73.7
61.8
Decrease of 10%: gross of reinsurance
169.5
137.7
238.7
197.7
336.0
277.2
158.9
132.3
Increase of 1%: net of reinsurance
(11.0)
(8.6)
(24.8)
(20.5)
(33.6)
(27.7)
(6.0)
(5.0)
Increase of 5%: net of reinsurance
(54.7)
(42.9)
(124.1) (102.4) (168.0) (138.6)
(30.2)
(24.9)
Increase of 10%: net of reinsurance
(109.4)
(85.8) (241.2) (199.0) (331.6) (273.9)
(55.6)
(45.7)
Decrease of 1%: net of reinsurance
10.9
8.5
24.8
20.5
33.6
27.7
6.0
5.0
Decrease of 5%: net of reinsurance
61.8
49.0
118.8
98.5
168.0
138.6
40.2
33.1
Decrease of 10%: net of reinsurance
123.9
99.0
238.7
197.7
336.0
277.2
119.9
98.8
1 ‘Booked’ loss ratios are undiscounted underwriting year loss ratios, including risk adjustment.
The sensitivities below reflect the impact on co-insurance profit commission within profit before tax in 2025, of a change
in in the booked loss ratios for individual underwriting years (UWY) as at 31 December 2025.
£m
UWY 2022
UWY 2023
UWY 2024
UWY 2025
Increase of 1%: gross of reinsurance
(3.6)
(5.0)
(6.8)
—
Increase of 5%: gross of reinsurance
(18.2)
(25.1)
(34.0)
—
Increase of 10%: gross of reinsurance
(36.4)
(49.6)
(63.6)
—
Decrease of 1%: gross of reinsurance
3.6
5.0
6.8
—
Decrease of 5%: gross of reinsurance
17.7
19.9
34.0
4.0
Decrease of 10%: gross of reinsurance
28.0
40.8
68.0
19.5
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
220
3.5. Credit risk
The Group defines credit risk as the risk of financial loss if another party, with whom the Group has contracted, fails to
perform or meet its obligations. The key areas of exposure to credit risk for the Group result through its reinsurance
programme, investments, bank deposits, loans and advances to customers and other receivables.
The Directors consider credit quality and counterparty exposure frequently and in significant detail. The Directors consider
that the policies and procedures in place to manage credit exposure continue to be appropriate for the Group’s risk appetite
and, during 2025 and historically, no material credit losses have been experienced by the Group.
Financial investments and cash
Credit and counterparty risk is managed by the Group by investing in high quality money market funds, and setting suitable
parameters for asset managers to adhere to when purchasing debt securities. Cash balances and deposits are placed only
with highly rated credit institutions.
The Group primarily invests in the following asset types:
• Debt securities are held within segregated mandates and investment funds. This includes corporate, government and
private debt as well as asset backed securities. The investment guidelines ensure management of credit risk. Generally,
the duration of the securities is relatively short and similar to the duration of the on-book claims liabilities
• Equity securities including private equity and infrastructure equity are held within diversified funds
• Liquidity funds, which in turn invest in a mixture of short-dated fixed and variable rate securities, such as cash deposits,
certificates of deposits, floating rate notes and other commercial paper
• Deposits held with well-rated institutions and which are short in duration (under three years). These are classified as held
at amortised cost.
The detailed holdings are reviewed regularly by the Investment Committee.
Reinsurance assets
To mitigate the risk arising from exposure to reinsurers (in the form of reinsurance recoveries), the Group only conducts
business with companies of appropriate financial strength ratings. In addition, many reinsurance contracts are operated on
a funds withheld basis, which substantially reduces credit risk, as the Group retains the cash received from policyholders.
Loans and advances to customers
The risk appetite for the lending business is set to ensure that the risk taken is commensurate with the expected returns.
The Group manages risks through a comprehensive framework of key risk indicators (‘KRIs’). These indicators are regularly
monitored and reviewed to ensure effective risk identification, measurement, and control. See note 7 for further information.
Other receivables
Trade receivables and other debtors are also subject to credit risk, although this is mitigated by a review of the credit
worthiness of all counterparties prior to them being accepted.
All other assets are assessed as low credit risk under IFRS 9, with no significant amounts past due or impaired. No further
disclosure is provided due to this having an immaterial impact on the financial statements.
Credit exposure and quality analysis
The table below provides information regarding the credit risk exposure of the Group.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
221
31 December 2025
AAA
AA
A
BBB and
Sub-BBB
Not rated
Total
£m
£m
£m
£m
£m
£m
Financial investments classified as FVTPL
Money market and other funds
926.5
256.4
80.6
35.2
147.5
1,446.2
Equity investments (designated FVTPL)
–
–
–
–
39.3
39.3
Derivative financial instruments
–
–
–
–
1.5
1.5
Financial investments classified as FVOCI
Corporate and private debt securities
650.4
154.0
1,161.0
587.3
128.8
2,681.5
Government debt securities
58.5
924.7
40.2
2.7
–
1,026.1
Financial assets measured at amortised
cost
Deposits with credit institutions
–
–
57.9
–
–
57.9
Total financial investments
1,635.4
1,335.1
1,339.7
625.2
317.1
5,252.5
Cash and cash equivalents
–
0.2
285.0
15.9
–
301.1
Reinsurance contract assets
–
848.4
231.8
0.3
–
1,080.5
Other receivables
–
–
–
–
148.4
148.4
Loans and advances to customers (note 7)2
–
–
–
–
1,628.7
1,628.7
Total exposure
1,635.4
2,183.7
1,856.5
641.4
2,094.2
8,411.2
31 December 2024
AAA
AA
A
BBB and
Sub-BBB
Not rated
Total
£m
£m
£m
£m
£m
£m
Financial investments measured at FVTPL
Money market and other funds1
870.5
258.4
59.9
27.4
160.3
1,376.5
Equity investments (designated FVTPL)
–
–
–
–
46.9
46.9
Derivative financial instruments
–
–
–
–
(2.4)
(2.4)
Financial investments classified as FVOCI
Corporate and private debt securities
631.7
202.4
1,072.0
513.5
143.6
2,563.2
Government debt securities
53.4
711.1
5.1
2.6
–
772.2
Financial assets measured at amortised
cost
Deposits with credit institutions
–
–
81.7
10.0
–
91.7
Total financial investments
1,555.6
1,171.9
1,218.7
553.5
348.4
4,848.1
Cash and cash equivalents
–
12.7
288.7
12.0
0.2
313.6
Reinsurance contract assets
114.0
681.5
192.9
0.2
–
988.6
Other receivables
–
–
–
–
110.4
110.4
Loans and advances to customers (note 7)2
–
–
–
–
1,106.9
1,106.9
Total exposure
1,669.6
1,866.1
1,700.3
565.7
1,565.9
7,367.6
1 Money market and other funds have been represented to use fund-level ratings rather than a look-through approach, better reflecting
credit risk exposure and aligning with industry practice.
2 Loans and advances to customers are assets generated within the Group and hence not externally rated. See note 7 for management’s
internal assessment of credit risk.
Not rated corporate and private debt represents debt securities without a public rating. For these investments, credit
analysis is undertaken by Admiral’s asset managers, whose credit processes are reviewed by Admiral. Based on the asset
managers’ rating methodologies, scoring tools from external rating agencies and historical data, Admiral estimates that
approximately 38% or £103.2 million (2024: 39% or £116.1 million) of these investments are equivalent to investment grade
(BBB- / Baa3 and above) and 62% or £169.5 million (2024: 61% or £182.3 million) is sub-investment grade. A watchlist is
maintained across rated and not rated exposure to determine credit deterioration. Typical exposure stems from real estate
debt, infrastructure debt, corporate loans and other assets.
There were no significant financial assets that were past due at the close of either 2025 or 2024.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
222
3.6. Market risk
The Group’s activities expose it primarily to market risks of credit spread, interest rate, liquidity and currency risk.
The detailed oversight of supervising risk management and internal control has been delegated to the Group Risk Committee.
There is also an Investment Committee that makes recommendations to the Group and subsidiary boards on investment
strategy, and overseas the Group’s investments, as well as advising on liquidity funding and foreign exchange management.
3.6.1. Credit spread risk
Spread risk is the risk of losses arising from changes in the spread between corporate bond yields and the risk-free yield
curve. These losses may not be realised as bonds are typically held to maturity.
Sensitivity to credit spread risk
The impact on equity of 100 and 200 basis point increases in credit spreads on financial investments and cash at the
relevant valuation date, is as follows:
31 December
2025
31 December
2024
£m
£m
Reduction in equity – 100bps
(55.4)
(50.6)
Reduction in equity – 200bps
(108.3)
(99.0)
The impact on the Income Statement from movements in credit spreads at the valuation date is immaterial.
No sensitivity analysis has been presented in relation to the impact on insurance liabilities and reinsurance assets in respect
of changes in credit spreads, as it has been assumed that there is no direct impact on the illiquidity premium as a result of
a movement in credit spreads.
Also see note 7 for further information on sensitivity in respect of credit risk in relation to loans and advances to customers.
3.6.2. Interest rate risk
The Group considers interest rate risk to be the risk that unfavourable movements in interest rates could adversely impact
on the capital values of financial assets and liabilities.
Interest rate risk on financial instruments arises primarily from the Group’s investments in debt securities. These investments
are exposed to the risk of adverse changes in fair values or future cashflows because of changes in market interest rates.
Money market funds and other funds, and private debt are not materially affected by interest rate movements. As at
31 December 2025, debt securities of £715.8 million are floating rate and £2,991.8 million are fixed rate.
In addition, the value of insurance contract liabilities and reinsurance contracts assets recognised within the financial
statements are impacted by changes in interest rates, given that these are discounted using a risk-free interest rate,
plus illiquidity premium.
The Group manages interest rate risk by closely matching, where possible, the durations of insurance contracts with fixed
and guaranteed terms and the supporting financial assets. The Group monitors its interest rate risk exposure through
periodic reviews of asset and liability positions. Additionally, estimates of cashflows and the impact of interest rate
fluctuations are modelled and reviewed every six months.
Loans and advances to customers
The Group’s consumer loan portfolio consists of fixed rate loans, which are funded at a floating variable rate. The Group has
interest rate swap arrangements in place to eliminate the majority of the interest rate risk variability in the cashflows payable
on the loan backed securities.
Hedge accounting
Hedge accounting is applied when the criteria specified in IFRS 9 are met. In line with IFRS 9, the gain or loss on the hedged
position as at the balance sheet date is recognised through other comprehensive income.
This results in a hedging reserve in relation to the interest rate swap.
Financial liabilities
The Group holds a financial liability in the form of a £250.0 million subordinated loan note with a ten year maturity and fixed
rate coupon of 8.5% with a redemption date of 6 January 2034. This liability is recorded at amortised cost and therefore
neither the carrying value of the deposits, nor the interest payable, will be impacted by fluctuations in interest rates.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
223
Other financial assets and liabilities
There is no significant exposure to interest rate risk for other financial assets and liabilities due to these being held
at amortised cost.
Sensitivity to interest rate risk
The impact on equity arising from the impact of 100 basis point and 200 basis point increases and decreases in interest
rates on insurance contract liabilities and reinsurance contract assets as at 31 December 2025, is as follows:
2025
2024
Impact on equity
gross of reinsurance
£m
Impact on equity net
of reinsurance
£m
Impact on equity
gross of reinsurance
£m
Impact on equity net
of reinsurance
£m
Increase of 100 basis points
61.5
58.3
60.8
58.3
Decrease of 100 basis points
(68.8)
(65.4)
(69.7)
(67.1)
Increase of 200 basis points
117.3
111.1
115.1
110.3
Decrease of 200 basis points
(147.7)
(140.8)
(152.2)
(146.9)
The impact on profit before tax of a 100 basis and 200 basis point move is not material.
The impact on equity arising from the impact of 100 basis point and 200 basis point increases and decreases in interest
rates on investments and cash as at 31 December 2025, is as follows:
2025
2024
Impact on equity
£m
Impact on equity
£m
Increase of 100 basis points
(97.4)
(83.4)
Decrease of 100 basis points
105.6
90.4
Increase of 200 basis points
(187.8)
(161.0)
Decrease of 200 basis points
221.1
189.2
Admiral invests in fixed and floating rate securities. Investment income on floating rate securities increases with changes
in interest rates, where as the market value of fixed rate securities is negatively correlated with changes in interest rates.
Admiral’s Money market and other funds and private debt are predominantly floating rate securities, whereas corporate and
government debt are mostly fixed rate securities.
Changes in interest rates as at 31 December 2025 have no material impact on profit before tax (refer to Appendix 2 for the
impact on profit before tax arising from the impact of 100 and 200 basis point increases and decreases in interest rates
during 2025).
The changes impact equity as follows:
Equity
• Changes in the fair value of fixed-rate financial assets measured at FVOCI
• Insurance finance income and expenses recognised in OCI as a result of discounting future cashflows at a revised current
rate
The Group’s Solvency II balance sheet, which includes technical provisions discounted using Bank of England and EIOPA
yield curves reflects a low sensitivity to interest rates as a result of well-matched durations of assets and liabilities.
3.6.3. Liquidity risk
Liquidity risk is defined as the risk that the Group does not have sufficient available financial resources to enable it to meet
its obligations as they fall due, or can only secure them at excessive cost.
The Group holds appropriate liquidity buffers at the Parent Company and subsidiary levels.
Further, as noted above, a significant portion of insurance funds are invested in investment funds with same day liquidity,
meaning that a large proportion of the Group’s cash and investments are readily available.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
224
Insurance and reinsurance contracts
The following table analyses the undiscounted, best estimate cashflows of the Group’s claims liabilities under its insurance
and reinsurance contracts, which reflects the dates on which the cashflows are expected to occur. Liabilities and assets
for remaining coverage are excluded from this analysis.
Insurance contract liabilities
<1 year
1-2 years
2-3 years
3-4 years
4-5 years
>5 years
£m
£m
£m
£m
£m
£m
31 December 2025
UK Motor
860.3
532.9
445.6
320.2
199.0
759.6
UK Other Personal lines
181.4
51.0
22.2
9.0
3.7
0.7
European insurance
289.2
123.9
68.5
41.0
27.7
108.7
31 December 2024
UK Motor
747.5
421.6
330.7
256.2
181.3
840.0
UK Other Personal lines
142.3
32.4
11.5
4.6
1.4
0.2
European insurance
237.6
99.3
54.4
32.4
23.0
128.2
Reinsurance contract assets
<1 year
1-2 years
2-3 years
3-4 years
4-5 years
>5 years
£m
£m
£m
£m
£m
£m
31 December 2025
UK Motor
32.1
19.0
20.9
61.9
15.7
138.4
UK Other Personal lines
160.8
27.3
11.0
5.2
2.6
1.1
European insurance
245.3
89.5
49.2
28.5
19.1
74.3
31 December 2024
UK Motor
27.0
14.1
14.1
17.7
59.3
153.5
UK Other Personal lines
125.9
21.3
7.3
4.6
2.0
0.7
European insurance
226.5
68.6
39.6
24.4
16.3
94.6
Financial liabilities
31 December 2025
<1 year
1-3 years
3-5 years
>5 years
£m
£m
£m
£m
Financial liabilities
Subordinated notes1
21.3
42.5
42.5
324.4
Loan backed securities
391.1
593.4
341.4
191.7
Other borrowings
200.3
–
–
–
Trade and other payables2
110.6
2.6
4.5
3.7
Lease liabilities1
8.9
16.2
12.6
46.7
Total financial liabilities
732.2
654.7
401.0
566.5
31 December 2024
<1 year
1-3 years
3-5 years
>5 years
£m
£m
£m
£m
Financial liabilities
Subordinated notes1
21.3
42.5
42.5
345.6
Loan backed securities3
318.0
456.8
219.0
56.9
Other borrowings
117.4
–
–
–
Trade and other payables2
79.5
0.2
3.1
3.6
Lease liabilities1
7.2
14.6
11.2
51.9
Total financial liabilities
543.4
514.1
275.8
458.0
1 Maturity analysis has been performed on a cash-settled basis.
2 Trade and other payables as at 31 December 2025 exclude deferred income, accruals and other tax and social security of £95.8 million
(2024: £88.9 million).
3 Loan backed securities have been restated for 31 December 2024 to include forecast interest.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
225
A breakdown of the Group’s other borrowings, trade payables and other payables is shown in note 11. The majority of trade
and other payables will mature within three to six months of the balance sheet date.
Financial assets
The following table analyses the carrying value of financial investments and cash and cash equivalents by contractual
maturity, which can fund the repayment of liabilities as they crystallise, as well as the Group’s other financial assets
recognised under IFRS 9. The Group has disclosed a maturity analysis for financial assets that it holds as part of managing
liquidity risk because it considers that this information is necessary to enable users of financial statements to evaluate the
nature and extent of its liquidity risk.
31 December 2025
<1 year
1-3 years
3-5 years
>5 years
£m
£m
£m
£m
Financial investments
Money market and other funds
1,210.5
29.2
63.5
143.0
Derivative financial instruments
(1.4)
(4.9)
–
0.1
Deposits with credit institutions
57.9
–
–
–
Debt securities
656.2
1,265.8
850.2
935.4
Total financial investments
1,923.2
1,290.1
913.7
1,078.5
Cash and cash equivalents
301.1
–
–
–
Total financial investments and cash
2,224.3
1,290.1
913.7
1,078.5
Insurance, trade and other receivables1
199.0
–
–
–
Loans and advances to customers
374.6
661.8
388.8
203.5
Total financial assets
2,797.9
1,951.9
1,302.5
1,282.0
31 December 2024
<1 year
1-3 years
3-5 years
>5 years
£m
£m
£m
£m
Financial investments
Money market and other funds
1,237.9
31.0
67.6
40.0
Derivative financial instruments
(2.2)
0.4
(0.4)
(0.2)
Deposits with credit institutions
91.7
–
–
–
Debt securities
390.5
1,155.5
955.4
834.0
Total financial investments
1,717.9
1,186.9
1,022.6
873.8
Cash and cash equivalents
313.6
–
–
–
Total financial investments and cash
2,031.5
1,186.9
1,022.6
873.8
Insurance, trade and other receivables1
146.7
–
–
–
Loans and advances to customers
265.5
533.7
263.6
44.1
Total financial assets
2,443.7
1,720.6
1,286.2
917.9
1 Trade and other receivables as at 31 December 2025 exclude contract assets of £13.5 million (2024: £14.8 million)
The Group’s Directors believe that the cashflows arising from these assets will be consistent with this profile. Liquidity risk
is not, therefore, considered to be significant.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
226
3.6.4. Foreign exchange risk
Foreign exchange risk arises from unfavourable movements in foreign exchange rates that could adversely impact the
valuation of overseas assets and liabilities.
The Group is exposed to foreign exchange risk mainly through its operations overseas. Although the relative size of the
European operations means that the risks are relatively small, increasingly volatile foreign exchange rates could result
in larger potential gains or losses. Assets held to fund insurance liabilities are held in the currency of the liabilities; however,
surplus assets held as regulatory capital in foreign currencies remain exposed.
Beyond the overseas operations, the Group is exposed to foreign exchange risk arising through investments denominated
in dollars and euros within its UK subsidiaries. The Group mitigates the risk through the application of derivative positions
resulting in an immaterial exposure.
The Group’s exposure to net assets and profits in currencies other than the reporting currency is immaterial other than
for euros. The Group’s exposure to net assets held in euros was £163.9 million (2024: £123.4 million).
If the sterling rates with euros had strengthened/weakened by 10%, the Group’s profit before tax for the year would
increase/decrease by £0.7 million (2024: £2.9 million).
3.7. Concentration of risk
The Directors do not believe there are significant concentrations of insurance risk and/or reserve risk. This is because the
risks are spread across a large number of policies across a wide regional base. The European Insurance, UK Household,
UK Travel and UK Pet businesses further contribute to the diversification of the Group’s insurance risk.
The Group’s placement of reinsurance is diversified such that it is neither dependent on a single reinsurer nor are the
operations of the Group substantially dependent upon any single reinsurance contract.
The tables in note 5f(i) show the concentration of net insurance contract liabilities by product type and geographic area.
As seen in the notes above, there is no significant concentration of market or credit risk given that investments are
diversified.
3.8. Objectives, policies and procedures for managing capital
The Group’s capital management policy defines the Board oversight, risk appetite and tier structure of the Group’s capital
in addition to management actions that may be taken in respect of capital, such as dividend payments.
The Group aims to operate a capital-efficient business model by transferring a significant proportion of underwriting risk
to co-insurance and reinsurance partners. This in turn reduces the amount of capital the Group needs to retain to operate
and grow and allows the Group to distribute the majority of its earnings as dividends.
The Board has determined that it will hold capital as follows:
• Sufficient Solvency II Own Funds to meet all of the Group’s Solvency II capital requirements (over a 1 year and ultimate
time horizon)
• An additional contingency to cover unforeseen events and losses that could realistically arise. This risk appetite buffer
is assessed via stress testing performed on an annual basis and is calibrated in relation to the one-year regulatory SCR.
The Group’s current risk appetite buffer is 50% above the regulatory SCR.
The Group’s current dividend policy is to pay a normal dividend equal to 65% of post-tax profits, and a special dividend
calculated with reference to distributable reserves and surplus capital held above the risk appetite buffer.
The Group’s dividend policy from mid-2026, subject to regulatory approval, will be to:
• Pay a normal dividend equal to 65% of post-tax profits for the period
• Pay either a special dividend or buy back and cancel shares to the value of surplus economic capital available at the
dividend calculation date (with reference to distributable reserves at the calculation date).
Surplus economic capital is calculated at the dividend valuation date and is defined as available capital, less capital
requirements, less risk appetite buffer, less any further buffer determined by the Board at the appropriate time.
The change in policy, which follows a review during the year, including consultation of the Group’s largest shareholders,
gives the Directors flexibility in managing the Group’s capital. Current risk appetite is consistent with the prior period.
As noted above, the Group’s regulatory capital position is calculated under the Solvency II Framework. The SCR is based
on the Solvency II Standard Formula, with a capital-add-on to reflect limitations in the Standard Formula with respect to
Admiral’s risk profile (predominately in respect of profit commission arrangements in co- and reinsurance agreements and
risks relating to Periodic Payment Order (‘PPO’) claims).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
227
Solvency ratio (unaudited)
At the date of this report, the Group’s regulatory solvency ratio, calculated using a capital add-on that has not been subject
to regulatory approval, is 193% (2024: 203%). This includes the recognition of the 2025 final dividend of 90.0 pence per
share (2024: 121.0 pence per share).
The Group’s 2025 Solvency and Financial Condition Report (‘SFCR’) will, when published, disclose a solvency ratio that is
calculated at the balance sheet date rather than annual report date, using the capital add-on that was most recently subject
to regulatory approval. The estimated and unaudited SFCR solvency ratio is 185%, with the reconciliation between this ratio
and the 193% noted above being as follows:
31 December
2025
31 December
2024
£m
£m
Regulatory solvency ratio (estimated and unaudited)
Solvency ratio as reported above
193%
203%
Change in valuation date1
(11%)
(9%)
Other (including impact of updated, unapproved capital add-on)
3%
4%
Solvency ratio to be reported ('SFCR')
185%
198%
1 The solvency ratio reported above includes additional own funds generated post year-end up to the date of this report.
The Group has complied with its regulatory capital requirements throughout the period.
Subsidiaries
The Group manages the capital of its subsidiaries to ensure that all entities within the Group are able to continue as going
concerns and also to ensure that regulated entities meet regulatory requirements with an appropriate risk appetite buffer.
Excess capital above these levels within subsidiaries is paid up to the Group Parent Company in the form of dividends on
a regular basis.
4. Operating segments
4a. Accounting policies
(i) Group consolidation
The consolidated financial statements comprise the results and balances of the Company and all entities controlled by the
Company, being its subsidiaries, employee benefit trusts (EBTs) and SPEs (together referred to as the Group), for the year
ended 31 December 2025 and comparative figures for the year ended 31 December 2024. The financial statements of the
Company’s subsidiaries and its EBTs and SPEs are consolidated in the Group financial statements.
The Company controls 100% of the voting share capital of all its principal subsidiaries, except Admiral Law Limited.
An SPE and/or EBT is fully consolidated into the Group financial statements under IFRS 10, where the Group has control.
The Parent Company financial statements present information about the Company as a separate entity and not about
its Group. In accordance with IAS 24, transactions or balances between Group companies that have been eliminated on
consolidation are not reported as related party transactions in the consolidated financial statements.
(ii) Foreign currency translation
Items included in the financial records of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are
presented in pounds sterling, the Group’s presentational currency, rounded to the nearest £0.1 million.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised
in the Income Statement.
Non-monetary items measured at cost are translated at their historic rate and non-monetary items held at fair value are
translated using the foreign exchange rate on the date that the fair value was established.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
228
The financial statements of foreign operations whose functional currency is not pounds sterling are translated into the Group
presentation currency (pound sterling) as follows:
• Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet
• Income and expenses for each income statement are translated at an average exchange rate (unless this average is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income
and expenses are translated at the date of the transaction)
• All resulting exchange differences are recognised in other comprehensive income and in a separate component of equity
except to the extent that the translation differences are attributable to non-controlling interests.
On disposal of a foreign operation, the cumulative amount recognised in equity relating to that particular operation is
recognised in the Income Statement.
4b. Segment reporting
The Group has five reportable segments, as described below. These segments represent the principal split of business that
is regularly reported to the Group’s Board of Directors, which is considered to be the Group’s chief operating decision maker
in line with IFRS 8 Operating Segments.
UK Insurance
The segment consists of the underwriting of Motor, Household, Pet and Travel insurance and other products that
supplement these insurance policies within the UK. It also includes the generation of revenue from additional products
and fees from underwriting insurance in the UK. The Directors consider the results of these activities to be reportable as
one segment as the activities carried out in generating the revenue are not independent of each other and are performed
as one business. This mirrors the approach taken in management reporting.
European Insurance
The segment consists of the underwriting of car and home insurance and the generation of revenue from additional
products and fees from underwriting car insurance outside of the UK. It specifically covers the Group operations Admiral
Seguros in Spain, ConTe in Italy, L’olivier Assurance in France. None of these operations are reportable on an individual
basis, based on the threshold requirements in IFRS 8.
During the year ended 31 December 2025, the Group revisited its internal reporting structure following the classification
of Elephant Auto in the US as held for sale and discontinued. As a result, this segment now comprises only European
operations and has been renamed from International Insurance to European insurance. The comparative segment
information has been restated to reflect the change in the segment composition.
Admiral Money
The segment relates to the Admiral Money business launched in 2017, which provides consumer finance and car finance
products in the UK, through the comparison channel, credit scoring applications and direct channels including car dealers
and brokers.
Other
The ‘Other’ segment is designed to be comprised of all other operating segments that are not separately reported to the
Group’s Board of Directors and do not meet the threshold requirements for individual reporting. It includes the results of
Admiral Pioneer.
Discontinued Operations
As set out in note 13 to the financial statements, on 22 April 2025 the Group announced its planned sale of the US motor
insurance business, including Elephant Insurance Company and Elephant Insurance Services (‘Elephant’). The sale was
completed on 31 December 2025.
The US operations are presented as discontinued operations in both 2024 and 2025. The results for 2025 are reflective
of the loss on disposal and 12 months of trading prior to disposal.
Taxes are not allocated across the segments and, as with the corporate activities, are included in the reconciliation to the
Consolidated Income Statement and Consolidated Statement of Financial Position.
An analysis of the Group’s revenue and results for the year ended 31 December 2025, by reportable segment, is shown
below. The accounting policies of the reportable segments are materially consistent with those presented in the notes
to the financial statements for the Group.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
229
Year ended 31 December 2025
UK
Insurance
£m
European
Insurance
£m
Admiral
Money
£m
Other
£m
Discontinued
operations
£m
Eliminations3
£m
Total
(continuing)
£m
Total
£m
Turnover1
4,952.5
674.3
148.9
119.8
166.9
–
5,895.5 6,062.4
Insurance revenue
4,221.6
654.5
– 103.2
174.1
–
4,979.3 5,153.4
Insurance revenue net of XoL
4,112.5
623.5
–
91.9
173.6
–
4,827.9 5,001.5
Insurance services expenses
(787.3)
(175.0)
–
(45.2)
(61.7)
– (1,007.5) (1,069.2)
Insurance claims net of XoL
(2,386.1)
(414.0)
–
(59.4)
(89.0)
– (2,859.5) (2,948.5)
Quota share reinsurance result
(96.0)
(31.3)
–
–
(3.2)
–
(127.3) (130.5)
Net movement in onerous loss
component
–
1.2
–
–
–
–
1.2
1.2
Underwriting result
843.1
4.4
–
(12.7)
19.7
–
834.8
854.5
Net investment income2
87.9
2.7
0.1
5.0
4.5
(9.4)
86.3
90.8
Net interest income from
financial services5
–
–
78.0
2.7
–
8.3
89.0
89.0
Net other revenue and
operating expenses
155.3
(0.5)
(52.3)
(23.4)
–
–
79.1
79.1
Segment profit/(loss) before
tax4
1,086.3
6.6
25.8 (28.4)
24.2
(1.1)
1,089.2 1,113.4
Other central revenue and expenses, including share scheme charges
(126.6) (153.9)
Investment and interest income
17.7
17.7
Finance costs
(22.4)
(22.4)
Consolidated profit before tax
957.9
954.8
Taxation expense
(212.6) (212.5)
Consolidated profit after tax
745.3
742.3
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
230
Revenue and results for the corresponding reportable segments for the year ended 31 December 2024 are shown below.
Year ended 31 December 2024
UK
Insurance
£m
European
Insurance
£m
Admiral
Money
£m
Other
£m
Discontinued
operations
£m
Eliminations3
£m
Total
(continuing)
£m
Total
£m
Turnover1
5,108.5
639.9
108.3
89.9
200.1
–
5,946.5 6,146.7
Insurance revenue
3,873.4
606.7
–
73.3
222.8
–
4,553.4 4,776.2
Insurance revenue net of XoL
3,751.1
572.7
–
65.8
221.5
–
4,389.6 4,611.1
Insurance services expenses
(745.7)
(168.0)
–
(33.7)
(68.5)
–
(947.4) (1,015.9)
Insurance claims net of XoL
(1,952.1)
(437.7)
–
(39.0)
(126.8)
– (2,428.8) (2,555.6)
Quota share reinsurance result
(290.0)
12.4
–
–
(16.5)
–
(277.6) (294.1)
Net movement in onerous loss
component
1.1
0.4
–
–
–
–
1.5
1.5
Underwriting result
764.4
(20.2)
–
(6.9)
9.7
–
737.3
747.0
Net investment income2
70.5
1.4
0.3
0.7
4.7
(7.9)
65.0
69.7
Net interest income from
financial services5
–
–
69.3
0.9
–
6.1
76.3
76.3
Net other revenue and
operating expenses
141.8
(0.9)
(56.6)
(12.1)
–
–
72.2
72.2
Segment profit/(loss) before
tax4
976.7
(19.7)
13.0
(17.4)
14.4
(1.8)
950.8
965.2
Other central revenue and expenses, including share scheme charges
(113.4)
(115.0)
Investment and interest income
13.5
13.5
Finance costs
(24.4)
(24.5)
Consolidated profit before tax
826.5
839.2
Taxation expense
(175.3) (176.3)
Consolidated profit after tax
651.2
662.9
1 Turnover is an Alternative Performance Measure presented before intra-group eliminations. Refer to the glossary and note 14
for further information.
2 Net investment income is reported net of impairment of financial assets, in line with management reporting.
3 Eliminations are in respect of the intra-group interest charges related to the UK Insurance and Admiral Money segment.
4 Segment results exclude gross share scheme charges, and any quota share reinsurance recoveries; these net share scheme charges
are presented within ‘Other central revenue and expenses, including share scheme charges’ in line with internal management reporting.
5 Interest income is presented net of interest expense as these segments predominantly earn interest income and performance is reviewed
on a net basis.
Segment revenues
The UK and European Insurance reportable segments derive all insurance revenue from external policyholders.
Revenue within these segments is not derived from an individual policyholder that represents 10% or more of the Group’s
total revenue.
Revenues from external customers for products and services are consistent with the split of reportable segment revenues.
All material revenues from external customers, and net assets attributed to a foreign country, are shown within the European
Insurance reportable segment shown on the previous pages.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
231
Segment assets and liabilities
The identifiable segment assets and liabilities at 31 December 2025 are as follows:
Unallocated assets and liabilities consist of other central assets and liabilities, plus deferred and current corporation tax
balances. These assets and liabilities are not regularly reviewed by the Board of Directors in the reportable segment format.
Eliminations represent inter-segment funding and balances included in insurance and other receivables.
The segment assets and liabilities at 31 December 2024 are as follows:
Year ended 31 December 2024
UK
Insurance
European
Insurance
Admiral
Money
Other
Eliminations
Total
£m
£m
£m
£m
£m
£m
Reportable segment assets
5,556.9
955.7
1,222.6
500.2
(600.8)
7,634.6
Reportable segment liabilities
(4,185.2)
(871.1)
(1,211.2)
(483.8)
600.8
(6,150.5)
Reportable segment net assets
1,371.7
84.6
11.4
16.4
–
1,484.1
Unallocated assets and liabilities
(113.4)
Consolidated net assets
1,370.7
5. Insurance Service result
5a. Accounting policies
(i) Insurance, Reinsurance and Co-insurance contracts classification
Under IFRS 17, an insurance contract is defined as a contract under which one party (the insurer) accepts significant
insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain
future event (the insured event) adversely affects the policyholder.
Insurance contracts
The Group issues insurance contracts in the normal course of business, under which it accepts significant insurance risk
from its policyholders. As a general guideline, the Group determines whether it has significant insurance risk by comparing
benefits payable after an insured event with benefits payable if the insured event did not occur.
Reinsurance contracts
The Group also enters into both excess of loss (‘XoL’) and quota share reinsurance contracts. A contract is only accounted
for as a reinsurance contract in these financial statements where there is significant insurance risk transfer, after an
assessment made by management based on the terms and conditions of the contracts.
Co-insurance contracts
Co-insurance arrangements are contracts entered into by the Group’s intermediaries, under which insurance risks are
shared on a proportional basis, with the co-insurer taking a specific percentage of premium written and being responsible
for the same proportion of each claim. The co-insurer therefore takes direct insurance risk from the policyholder and is
subsequently directly responsible to the claimant for its proportion of the claim. As the contractual liability is several and
not joint, neither the premiums nor the claims relating to any external co-insurance contract (i.e. outside the Group) are
included in the Income Statement.
Under the terms of these arrangements, the co-insurers reimburse the Group for the same proportionate share of the
directly attributable costs in fulfilling the insurance contracts.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
232
Year ended 31 December 2025
UK
Insurance
European
Insurance
Admiral
Money
Other
Eliminations
Total
£m
£m
£m
£m
£m
£m
Reportable segment assets
6,131.3
1,111.1
1,564.5
736.3
(1,061.1)
8,482.1
Reportable segment liabilities
(4,628.2)
(1,001.7)
(1,540.2)
(923.3)
1,061.1
(7,032.3)
Reportable segment net assets
1,503.1
109.4
24.3
(187.0)
–
1,449.8
Unallocated assets and liabilities
(6.2)
Consolidated net assets
1,443.6
(ii) Level of aggregation
IFRS 17 requires an entity to determine the level of aggregation for applying its requirements. The level of aggregation for
the Group is determined firstly by dividing the business written into portfolios, which comprise contracts subject to similar
risks and which are managed together.
The Group’s insurance business is therefore divided into portfolios based on both the product (line of business such
as motor, household etc), and geography (UK, Italy, Spain, and France).
IFRS 17 requires a further division of the portfolios into a ‘group’ of contracts (being the lowest unit of account) based on
expected profitability, and also requires that no group contains contracts issued more than one year apart. However, the
Group makes an evaluation of the smallest unit of account, i.e. whether a series of contracts need to be treated together
as one unit based on reasonable and supportable information, or whether a single contract contains components that need
to be separated and treated as if they were stand-alone contracts.
Following the application of the IFRS 17 level of aggregation requirements, each of the Group’s portfolios (which are
determined by geography and line of business) is further disaggregated by year of issue into a group of contracts based
on expected profitability at inception into three categories:
1) A group of contracts that are onerous at initial recognition, if any
2)A group of contracts that at initial recognition have no significant possibility of becoming onerous subsequently, if any
3)A group of the remaining contracts in the portfolio.
The Group has elected to group together those contracts that would fall into different groups only because law or regulation
specifically constrains its practical ability to set a different price or level of benefits for policyholders with different
characteristics.
To assess the profitability of groups of contracts, the Group determines the appropriate level at which reasonable and
supportable information is available. The Group assumes that no contracts in the portfolio are onerous at initial recognition
unless facts and circumstances indicate otherwise. For contracts that are not onerous, the Group assesses, at initial
recognition, that there is no significant possibility of becoming onerous subsequently by assessing the likelihood of changes
in applicable facts and circumstances. The Group considers facts and circumstances to identify whether a group of
contracts are onerous based on:
• Pricing information
• Results of similar contracts it has recognised
• Environmental factors, e.g., a change in market experience or regulations.
The Group divides portfolios of reinsurance contracts held applying the same principles set out above, except that the
references to onerous contracts refer to contracts on which there is a net gain on initial recognition.
Reinsurance contracts held are assessed for aggregation requirements on an individual contract basis. For many of the
Group’s reinsurance contracts held, a group comprises a single contract. The Group reports its reinsurance contracts
by portfolio, which aggregate the contracts by type of reinsurance (e.g. quota share or XoL) and product.
These groups represent the level of aggregation at which insurance contracts issued and reinsurance contracts held are
initially recognised and measured. Such groups are not subsequently reconsidered.
(iii) Recognition, modification and derecognition
Groups of insurance contracts issued are recognised from the earliest of the following:
• The beginning of the coverage period
• The date when the first payment from the policyholder is due or actually received, if there is no due date
• For a group of onerous contracts, when the Group determines that facts and circumstances indicate that the group
is onerous.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
233
A group of reinsurance contracts held is entered into from the earlier of:
• The beginning of the coverage period of the group of reinsurance contracts held. However, the Group delays the
recognition of a group of reinsurance contracts held that provide fully proportionate coverage until the date any underlying
insurance contract is initially recognised, if that date is later than the beginning of the coverage period of the group of
reinsurance contracts held
• The date the Group recognises an onerous group of underlying insurance contracts if the Group entered into the related
reinsurance contract held in the group of reinsurance contracts held at or before that date.
The Group derecognises an insurance or reinsurance contract when it is:
• Extinguished i.e. when the obligation specified in the insurance contract expires or is discharged or cancelled, or
• The contract is modified such that the modification results in a change in the measurement model or the applicable
standard for measuring a component of the contract, substantially changes the contract boundary, or requires the
modified contract to be included in a different group. In such cases, the Group derecognises the initial contract and
recognises the modified contract as a new contract.
When a modification is not treated as a derecognition, the Group recognises amounts paid or received for the modification
with the contract as an adjustment to the relevant liability for remaining coverage.
(iv) Contract boundary
The Group includes in the measurement of a group of insurance contracts all the future cashflows within the boundary of
each contract in the group. Cashflows are within the boundary of an insurance contract if they arise from substantive rights
and obligations that exist during the reporting period in which the Group can compel the policyholder to pay the premiums,
or in which the Group has a substantive obligation to provide the policyholder with insurance contract services.
A substantive obligation to provide insurance contract services ends when:
• The Group has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price
or level of benefits that fully reflects those risks, or
• Both of the following criteria are satisfied:
1. The Group has the practical ability to reassess the risks of the portfolio of insurance contracts that contain the contract
and, as a result, can set a price or level of benefits that fully reflects the risk of that portfolio
2.The pricing of the premiums up to the date when the risks are reassessed does not take into account the risks that relate
to periods after the reassessment date.
A liability or asset relating to expected premiums or claims outside the boundary of the insurance contract is not recognised.
Such amounts relate to future insurance contracts. In assessing the practical ability to reprice, risks transferred from the
policyholder to the Group, such as insurance risk and financial risk, are considered; other risks, such as lapse or surrender
risk, are not included.
For groups of reinsurance contracts held, cashflows are within the contract boundary if they arise from substantive rights
and obligations of the Group that exist during the reporting period in which the Group is compelled to pay amounts to the
reinsurer or in which the Group has a substantive right to receive services from the reinsurer.
(v) Presentation
The Group presents separately, in the Statement of Financial Position, the carrying amount of portfolios of insurance
contracts issued that are assets, portfolios of insurance contracts issued that are liabilities, portfolios of reinsurance
contracts held that are assets and portfolios of reinsurance contracts held that are liabilities.
The Group disaggregates the total amount recognised in the Consolidated Income Statement and Consolidated Statement
of Other Comprehensive Income into an insurance service result, comprising insurance revenue and insurance service
expense, and insurance finance income or expenses.
The Group separately presents income or expenses from reinsurance contracts held from the expenses or income from
insurance contracts issued. This is presented as one single amount in the Consolidated Income Statement, with additional
disclosure provided in the notes to the financial statements.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
234
(vi) Measurement
Accounting policy choices
Area
IFRS 17 options
Adopted approach
Premium allocation
approach (‘PAA’)
eligibility
Subject to specified criteria, the PAA can
be adopted as a simplified approach to the
IFRS 17 general model.
Coverage period for the Group’s insurance
contracts assumed is one year or less and so
qualifies automatically for PAA.
Reinsurance contracts (both XoL and quota share)
include contracts with a coverage period greater
than one year. However, there is no material
difference in the measurement of the asset for
remaining coverage between PAA and the general
model, therefore these qualify for PAA.
Insurance
acquisition
cashflows for
insurance
contracts issued
Where the coverage period of all contracts
within a group is not longer than one year,
insurance acquisition cashflows can either be
expensed as incurred, or allocated, using a
systematic and rational method, to groups of
insurance contracts (including future groups
containing insurance contracts that are
expected to arise from renewals) and then
amortised over the coverage period of the
related group. For groups containing contracts
longer than one year, insurance acquisition
cashflows must be allocated to related groups
of insurance contracts and amortised over the
coverage period of the related group.
The Group’s insurance contracts are all one year
or less. The Group has therefore taken the option
to expense acquisition costs as incurred.
Liability for
Remaining
Coverage (‘LRC’),
adjusted for
financial risk and
time value of
money
Where there is no significant financing
component in relation to the LRC, or where
the time between providing each part of the
services and the related premium due date is
no more than a year, an entity is not required
to make an adjustment for accretion of
interest on the LRC.
There is no allowance made for accretion
of interest on the LRC given that the premiums are
received within one year of the coverage period.
Liability for
Incurred Claims
(‘LIC’) adjusted for
time value of
money
For PAA groups, where claims or directly
attributable insurance expenses are
expected to be paid within a year of the date
that the claim is incurred, it is not required
to adjust these amounts for the time value
of money.
For some claims, for example within the travel
product line in the UK, and other immaterial
product lines across the Group, the incurred claims
are expected to be paid out in less than one year.
Similarly, the majority of directly attributable
insurance expenses are expected to be settled
within one year. For these claims and expenses,
no adjustment is made for the time value of money.
For all other business, the LIC is adjusted for the
time value of money.
Insurance finance
income and
expense
There is an option to disaggregate part of
the movement in the LIC, LRC, AIC and ARC
resulting from changes in discount rates,
and present this in Other Comprehensive
Income (‘OCI’).
The impact on LIC, LRC, AIC and ARC of changes
in discount rates will be captured within OCI, in line
with the accounting for assets backing the
insurance claims liabilities.
Interim reporting
Where an entity is required to apply IAS 34
(as for the Group) there is an option as to
whether to choose a ‘year-to-date’ basis or
a “period to date” basis for financial reporting.
The Group has opted to apply the option to use
year-to-date accounting for interim reporting.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
235
Fulfilment cashflows within the contract boundary
The fulfilment cashflows (‘FCF’) are the current estimates of the future cashflows within the contract boundary of a group
of contracts that the Group expects to collect from premiums and pay out for claims, benefits and expenses, adjusted
to reflect the timing and the uncertainty of those amounts. The estimates of future cashflows:
• Are based on a probability weighted mean of the full range of possible outcomes
• Are determined from the perspective of the Group, provided the estimates are consistent with observable market prices
for market variables
• Reflect conditions existing at the measurement date.
In estimating future cashflows, the Group incorporates, in an unbiased way, all reasonable and supportable information that
is available without undue cost or effort at the reporting date. This information includes both internal and external historical
data about claims and other experience, updated to reflect current expectations of future events. The estimates of future
cashflows reflect the Group’s view of current conditions at the reporting date, as long as the estimates of any relevant
market variables are consistent with observable market prices.
An explicit risk adjustment for non-financial risk is estimated separately from the other estimates.
For the Group’s contracts which are measured under the PAA, unless the contracts are onerous, the explicit risk adjustment
for non-financial risk is only estimated and included within the measurement of the liability for incurred claims.
Risk of the Group’s non-performance is not included in the measurement of groups of insurance contracts issued. In the
measurement of reinsurance contracts held, the probability weighted estimates of the present value of future cashflows
include potential credit losses and other disputes of the reinsurer to reflect the non-performance risk of the reinsurer.
The Group estimates certain fulfilment cashflows at the portfolio level or higher and then allocates such estimates to groups
of contracts.
The Group uses consistent assumptions to measure the estimates of the present value of future cashflows for the group
of reinsurance contracts held and such estimates for the groups of underlying insurance contracts.
Discount rates
A bottom-up approach has been applied in the determination of discount rates. Under this approach, the discount rate is
determined as the risk-free yield adjusted for differences in liquidity characteristics between the financial assets used to
derive the risk-free yield and the relevant liability cashflows (known as an illiquidity premium).
A separate risk-free yield is obtained for each currency, where a material amount of business is written in that currency.
The risk-free yield curve is obtained using rates published by the Prudential Regulation Authority (PRA) for the UK insurance
business, whilst for AECS the EIOPA risk free term structures are used. These curves are available from October 2015 and
provides rates for terms up to 150 years.
For periods prior to October 2015, observable market data is available for terms up to 25 years for GBP (30 years for EUR).
For terms that aren’t directly observable from market data, the Smith-Wilson approach is used to derive the rates which
extrapolates between the observable data and an assumed ultimate forward rate. The Smith-Wilson approach is used to
derive the published Solvency II yield curves, which supports consistency over time.
Similarly to the approach to risk-free rates, an illiquidity premium will be set by currency. The illiquidity premium is
determined by management considering various internal benchmarks. This includes considering the cost of liquidity for
the Group (through its Revolving Credit Facilities), by deducting the risk-free rate and credit risk premium from a corporate
bond reference portfolio, and by deducting public market yields from similarly rated private market yields. Each method
points to a different mathematical result and judgement is applied when determining the illiquidity premium.
The following weighted average rates, based on the yield curves derived using the above methodology, were used
to discount the liability for incurred claims at the end of the current and prior periods:
31 December 2025
31 December 2024
1 year
3 years
5 years
10 years
1 year
3 years
5 years
10 years
UK Insurance
4.0%
4.0%
4.2%
4.5%
5.0%
4.7%
4.5%
4.6%
European Motor
2.6%
2.8%
3.0%
3.4%
2.7%
2.6%
2.6%
2.8%
Generally, the illiquidity premium is expected to be stable over time and re-assessment of the assumption will be triggered
by significant changes in internal illiquidity benchmarks and/or changes in the illiquidity of the liabilities (e.g. claims
mix). Quantitative analysis will be performed when the illiquidity premium changes, including performing sensitivity analysis
on the assumption.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
236
Insurance revenue
The insurance revenue for the period is comprised of the amount of expected premium receipts (excluding any investment
component) allocated to the period. The Group allocates the expected premium receipts to each period of insurance
contract services on the basis of the passage of time. However, if the expected pattern of release of risk during the
coverage period differs significantly from the passage of time, for example due to seasonality of claims, then the allocation
is made on the basis of the expected timing of incurred insurance service expenses. For the periods presented, all insurance
premium revenue has been recognised based on the passage of time. If a change in allocation is necessary due to a change
of facts and circumstances, the change is accounted for prospectively as a change in accounting estimate.
The Group’s insurance revenue is comprised of the following component parts:
• Insurance premium revenue: Insurance premium revenue reflects the expected premium receipts allocated to the period
based on the passage of time, adjusted for seasonality if required. It excludes any additional income that arises from the
writing of the insurance contract that is presented as part of insurance revenue as set out below.
• Instalment income: In contrast to IFRS 4, instalment income related to the risk attaching part of the premium that
is retained within the Group is recognised as part of the insurance revenue cashflows due to it being considered
non-distinct from the underlying insurance policy, as set out in note 2 to the financial statements.
• Administration fees: Administration fees are costs charged to the customer for arranging a change to their policy.
The performance obligation is the change in a customer’s policy and given that the obligation related to activities that are
required to fulfil the insurance contract and the policyholder cannot benefit from the service by itself, it is considered as
part of fulfilment cashflows, i.e., the full transaction price is therefore recognised as part of insurance revenue on a point
in time basis.
IFRS 17 does not require separate insurance revenue analysis for insurance contracts measured under PAA. See Appendix 1
and note 14 for further information regarding the disaggretation of insurance revenue.
As stated in note 2, the Group has excluded any instalment income and administration fees from insurance revenue derived
from the proportion of insurance coverage under the co-insurance arrangements where the Group bears no risks. Please
see note 8a for the treatment of the co-insurance share retained by the group of instalment income and administration fees.
Insurance service expenses
The following elements are included in insurance service expenses:
• Incurred claims and benefits excluding investment components
• Other incurred directly attributable insurance service expenses, including administration (such as employee costs,
depreciation and amortisation) and acquisition expenses, and share scheme expenses that are attributable to
insurance services
• Changes that relate to past service (i.e. changes in the fulfilment cashflows relating to the Liability for Incurred Claims)
• Changes that relate to future service (i.e. losses/reversals on onerous groups of contracts from changes in the loss
components).
Only items that reflect insurance service expenses (i.e. incurred claims and other insurance service expenses arising from
insurance contracts the Group issues) are reported as insurance expenses. Cashflows that are not directly attributable to
a portfolio of insurance contracts, such as some product development and training costs, are recognised in other operating
expenses as incurred.
The total costs incurred in relation to the co-insurance share of insurance business are presented within other operating
expenses, as is the reimbursement of these costs, given that they are not related to the costs directly attributable to fulfilling
the Group’s insurance contracts.
Non-cash costs that are directly attributable, such as depreciation, amortisation and IFRS 2 equity-settled share scheme
costs, are recognised within insurance service expenses; these are transferred out of the LIC into the appropriate Financial
Statement line item for presentation in the Statement of Financial Position.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
237
Reinsurance net expense/income
The Group has presented the income or expenses from a group of reinsurance contracts held separately from insurance
finance income or expenses as a single amount and has provided in the disclosure note a separate analysis of the amounts
recovered from the reinsurer and an allocation of the premiums paid that together give a net amount equal to that single
amount.
As part of its quota share arrangements, the Group typically recovers either a set ceding commission, or the quota share
reinsurer’s proportional share of the expenses that are incurred in fulfilling the insurance contracts.
These amounts are typically settled net with the premium charged and are not contingent on claims. As a result, under IFRS
17 the expenses and ceding commissions recovered are considered to reflect a reduction in the transaction price equivalent
to charging a lower premium (with no corresponding ceding commission or expense recovery).
In addition, as set out in note 3 to these financial statements, where the reinsurance arrangements result in a “minimum
recovery” from the reinsurer due to profit commission or sliding scale commission arrangements that is not contingent
on claims, and the amount is not settled ‘net’ with premium, the minimum recovery is treated as a non-distinct investment
component.
As a result, the Group treats reinsurance cashflows that are contingent on claims on the underlying contracts as part of the
claims that are expected to be reimbursed under the reinsurance contract held, and excludes non-distinct investment
components and commissions from the allocation of reinsurance premiums presented in the notes to the financial statements.
Insurance finance income and expense
Insurance finance income or expenses comprise the change in the carrying amount of the group of insurance contracts
arising from:
1. The effect of the time value of money and changes in the time value of money
2.The effect of financial risk and changes in financial risk.
The Group has taken the option to disaggregate insurance finance income or expenses on insurance contracts issued
between the Consolidated Income Statement and the Consolidated Statement of Other Comprehensive Income.
As a result, applying the premium allocation approach, claims incurred are discounted at the date of initial recognition and
the finance expense recognised in the Consolidated Income Statement reflects the unwind of this discounting, at the locked
in discount rate, over the expected payment period. The same approach is taken for reinsurance claims assets. Discounting
on the liability and asset for remaining coverage only occurs in the case of the recognition of an onerous loss component
(and related loss-recovery component) and as a result is not material.
The impact of changes in market interest rates on the value of the insurance assets and liabilities are reflected in Other
Comprehensive Income in order to minimise accounting mismatches between the accounting for financial assets and
insurance assets and liabilities. The Group’s financial assets backing the insurance portfolios are predominantly measured
at Fair Value through Other Comprehensive Income (‘FVOCI’).
Insurance contracts: Liability for remaining coverage
Initial measurement
For a group of contracts that is not onerous at initial recognition, the Group measures the liability for remaining coverage as:
• The premiums, if any, received at initial recognition
• Any other asset or liability previously recognised for cashflows related to the group of contracts that the Group pays
or receives before the group of insurance contracts is recognised.
The Group recognises any insurance premium tax collected in relation to the premiums received as part of the premium
receipts, but given it is acting as an agent, these taxes are not included as either insurance revenue or an insurance
expense. Any outstanding insurance premium tax liability is presented within the liability for remaining coverage until paid.
There is no allowance for time value of money as the premiums are received within one year of the coverage period.
Where facts and circumstances indicate that contracts are onerous at initial recognition, the onerous contracts are
separately grouped from other contracts and a loss is recognised in the Consolidated Income Statement for the net outflow,
resulting in the carrying amount of the liability for the group being equal to the fulfilment cashflows. A loss component is
established by the Group for the liability for remaining coverage for such onerous group depicting the losses recognised.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
238
Subsequent measurement
The Group measures the carrying amount of the liability for remaining coverage at the end of each reporting period as:
• The liability for remaining coverage at the beginning of the period; plus
• Premiums received in the period; minus
• The amount recognised as insurance revenue for the services provided in the period; minus
• Payments to the tax authorities in respect of premium receipts.
The onerous loss component is re-measured over the coverage period so that at the end of the coverage period,
it is reduced to £nil.
Insurance contracts: Liability for incurred claims
The Group estimates the liability for incurred claims as the fulfilment cashflows related to incurred claims, including any
creditors related to directly attributable insurance expenses. The liability for incurred claims also includes an explicit
adjustment for non-financial risk (the risk adjustment).
Reinsurance contracts held
Initial measurement
The Group measures its reinsurance assets for a group of reinsurance contracts that it holds on the same basis as insurance
contracts that it issues. However, they are adapted to reflect the features of reinsurance contracts held that differ from
insurance contracts issued.
Where the Group recognises a loss on initial recognition of an onerous group of underlying insurance contracts or when
further onerous underlying insurance contracts are added to a group, the Group establishes a loss-recovery component
of the asset for remaining coverage for a group of reinsurance contracts held depicting the recovery of losses. The Group
calculates the loss-recovery component by multiplying the loss recognised on the underlying insurance contracts and the
percentage of claims on the underlying insurance contracts the Group expects to recover from the group of reinsurance
contracts held. The Group uses a systematic and rational method to determine the portion of losses recognised on the
group of insurance contracts covered by the reinsurance contracts held, in the case that there is partial coverage of
underlying insurance contracts by reinsurance contracts. The loss-recovery component adjusts the carrying amount
of the asset for remaining coverage.
The risk adjustment for non-financial risk is the amount of risk being transferred by the Group to the reinsurer and
is calculated with reference to the gross risk adjustment, adjusted for any excess of loss risk adjustment, as required.
Subsequent measurement
The subsequent measurement of reinsurance contracts held follows the same principles as those for insurance contracts
issued and has been adapted to reflect the specific features and terms and conditions of the reinsurance contracts held.
In addition, changes in the fulfilment cashflows that arise from changes in the risk of non-performance of the reinsurer are
reflected within net expenses from reinsurance contracts held within the Income Statement.
Where the Group has established a loss-recovery component, the Group subsequently reduces the loss recovery
component to zero in line with reductions in the onerous group of underlying insurance contracts in order to reflect that the
loss-recovery component shall not exceed the portion of the carrying amount of the loss component of the onerous group
of underlying insurance contracts that the entity expects to recover from the group of reinsurance contracts held.
The extinguishment or commutation of a reinsurance arrangement results in a derecognition of any reinsurance assets
or liabilities related to the commuted contract from the balance sheet, so that the Group retains the full future risk of claims
development. As a result of commutation, any difference arising between the present carrying value of reinsurance assets
or liabilities and the cash settlement is recognised in the Consolidated Income Statement.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
239
5b. Insurance revenue
Insurance revenue for the corresponding reportable segments for the period ended 31 December 2025
are shown below.
31 December 2025
Continuing operations
UK Motor
£m
UK Other
£m
European
Insurance
£m
Other
£m
Total
£m
Insurance revenue related movement in liability for
remaining coverage
3,511.5
710.1
654.5
103.2
4,979.3
Insurance revenue for the corresponding reportable segments for the period ended 31 December 2024 are shown below.
31 December 2024
Continuing operations
UK Motor
£m
UK Other
£m
European
Insurance
£m
Other
£m
Total
£m
Insurance revenue related movement in liability for
remaining coverage
3,369.5
503.9
606.7
73.3
4,553.4
The Group’s share of its insurance business was underwritten by Admiral Insurance (Gibraltar) Limited, Admiral Insurance
Company Limited and Admiral Europe Compañia Seguros (‘AECS’). The majority of contracts are short term in duration,
lasting for between 6 and 12 months.
5c. Insurance service expenses
Insurance service expenses for the corresponding reportable segments for the period ended 31 December 2025 are shown
below.
31 December 2025
Continuing operations
UK Motor
£m
UK Other
£m
European
Insurance
£m
Other
£m
Total
£m
Incurred claims
Claims incurred in the period
2,317.1
452.1
468.8
72.6
3,310.6
Changes to liabilities for incurred claims
(335.7)
(33.6)
(49.1)
(5.5)
(423.9)
Total incurred claims
1,981.4
418.5
419.7
67.1
2,886.7
Movement in onerous contracts
0.1
0.2
(3.3)
–
(3.0)
Directly attributable expenses
Administration expenses
496.3
131.9
119.1
25.4
772.7
Acquisition expenses
103.9
55.2
55.9
19.8
234.8
Insurance expenses
600.2
187.1
175.0
45.2
1,007.5
Share scheme expenses
56.1
8.7
9.8
1.3
75.9
Total insurance expenses including share scheme
expenses
656.3
195.8
184.8
46.5
1,083.4
Total Insurance service expenses
2,637.8
614.5
601.2
113.6
3,967.1
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
240
Insurance service expenses for the corresponding reportable segments for the period ended 31 December 2024 are shown
below.
31 December 2024
Continuing operations
UK Motor
£m
UK Other
£m
European
Insurance
£m
Other
£m
Total
£m
Incurred claims
Claims incurred in the period
2,107.2
298.2
453.2
48.9
2,907.5
Changes to liabilities for incurred claims
(496.1)
(51.4)
(7.3)
(1.4)
(556.2)
Total incurred claims
1,611.1
246.8
445.9
47.5
2,351.3
Movement in onerous contracts
(5.1)
0.1
(0.1)
–
(5.1)
Directly attributable expenses
Administration expenses
461.5
113.7
117.0
18.7
710.9
Acquisition expenses
125.3
45.2
51.0
15.0
236.5
Insurance expenses
586.8
158.9
168.0
33.7
947.4
Share scheme expenses
40.7
5.4
8.6
1.4
56.1
Total insurance expenses including share scheme
expenses
627.5
164.3
176.6
35.1
1,003.5
Total Insurance service expenses
2,233.5
411.2
622.4
82.6
3,349.7
5d. Net expenses from reinsurance contracts held
Net expenses from reinsurance contracts held for the corresponding reportable segments for the period ended
31 December 2025 are shown below.
31 December 2025
Continuing operations
UK Motor
£m
UK Other
£m
European
Insurance
£m
Other
£m
Total
£m
Allocation of reinsurance premiums
133.5
143.1
155.8
11.3
443.7
Amounts recoverable from reinsurers for incurred
insurance service expenses
Incurred claims
(70.9)
(91.1)
(151.1)
(7.7)
(320.8)
Changes to liabilities for incurred claims
56.8
(1.4)
45.8
–
101.2
Net expense from reinsurance contracts excluding
movement in onerous loss component
119.4
50.6
50.5
3.6
224.1
Other reinsurance recoveries including movement in
onerous loss component
(0.1)
(0.2)
2.1
–
1.8
Net expenses from reinsurance contracts held
119.3
50.4
52.6
3.6
225.9
Net expenses from reinsurance contracts held for the corresponding reportable segments for the period ended
31 December 2024 are shown below.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
241
31 December 2024
Continuing operations
UK Motor
£m
UK Other
£m
European
Insurance
£m
Other
£m
Total
£m
Allocation of reinsurance premiums
145.8
45.8
119.2
7.6
318.4
Amounts recoverable from reinsurers for incurred
insurance service expenses
Incurred claims
(29.2)
3.1
(255.2)
(8.5)
(289.8)
Changes to liabilities for incurred claims
291.6
34.3
143.5
–
469.4
Net expense from reinsurance contracts excluding
movement in onerous loss component
408.2
83.2
7.5
(0.9)
498.0
Other reinsurance recoveries including movement in loss
recovery component
4.0
(0.1)
(0.3)
–
3.6
Net expenses/(income) from reinsurance contracts held
412.2
83.1
7.2
(0.9)
501.6
5e. Finance expenses /(income) from insurance contracts held and reinsurance contracts issued
£m
31 December
2025
31 December
2024
Amounts recognised through the income statement - Continuing basis
Insurance finance expenses from insurance contracts issued
140.9
128.4
Insurance finance income from reinsurance contracts held
(29.4)
(35.9)
Net finance expense from insurance / reinsurance contracts issued
111.5
92.5
Amounts recognised in other comprehensive income
(Losses)/ gains due to changes in discount rates - insurance contracts
(54.4)
7.9
(Losses)/ gains due to changes in discount rates - reinsurance contracts
9.6
3.3
Total (losses)/ gains before tax recognised in other comprehensive income
(44.8)
11.2
The insurance finance reserve is comprised of the following:
£m
31 December
2025
31 December
2024
Insurance finance reserve - Continuing basis
Insurance finance reserve – insurance contracts
64.6
119.0
Deferred tax in relation to insurance finance reserve - insurance contracts
(9.1)
(18.6)
Insurance finance reserve – reinsurance contracts
(22.8)
(32.4)
Deferred tax in relation to insurance finance reserve - reinsurance contracts
2.6
4.7
Total insurance finance reserve
35.3
72.7
See note 6b for details of the relationship between finance (expenses)/ income from insurance contracts held and
reinsurance contracts issued, and investment return.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
242
5f. Insurance Liabilities and Reinsurance assets
(i) Analysis of recognised amounts
Year ended 31 December 2025
Year ended 31 December 2024
£m
Liability for
remaining
coverage
Liability for
incurred
claims
Total
Liability for
remaining
coverage
Liability for
incurred
claims
Total
Insurance contracts issued
UK Motor
774.1
3,070.0
3,844.1
883.3
2,691.1
3,574.4
UK Other Personal lines
206.2
303.4
509.6
195.3
214.7
410.0
European Insurance
217.0
691.1
908.1
190.1
591.2
781.3
Other
11.8
125.6
137.4
19.9
175.8
195.7
Total insurance contracts issued
1,209.1
4,190.1
5,399.2
1,288.6
3,672.8
4,961.4
£m
Asset for
remaining
coverage
Asset for
incurred
claims
Total
Asset for
remaining
coverage
Asset for
incurred
claims
Total
Reinsurance contracts held
UK Motor
45.7
267.7
313.4
34.0
236.5
270.5
UK Other Personal lines
13.6
215.2
228.8
11.2
173.5
184.7
European Insurance
19.9
507.0
526.9
42.5
461.7
504.2
Other
1.2
10.2
11.4
0.5
28.7
29.2
Total reinsurance contracts held
80.4
1,000.1
1,080.5
88.2
900.4
988.6
£m
Liability for
remaining
coverage
Liability for
incurred
claims
Total
Liability for
remaining
coverage
Liability for
incurred
claims
Total
Net
UK Motor
728.4
2,802.3
3,530.7
849.3
2,454.6
3,303.9
UK Other Personal lines
192.6
88.2
280.8
184.1
41.2
225.3
European Insurance
197.1
184.1
381.2
147.6
129.5
277.1
Other
10.6
115.4
126.0
19.4
147.1
166.5
Total insurance contracts issued
1,128.7
3,190.0
4,318.7
1,200.4
2,772.4
3,972.8
The table above has been represented for the year end 31 December 2024 such that insurance liabilities and reinsurance
assets in relation to the US operation are presented within Other (previously included within International insurance). Refer
to note 4a for further details on European Insurance.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
243
(ii) Roll-forward of net asset or liability for insurance contracts issued
UK Motor
The following tables reconcile the opening and closing balances of the LRC and LIC for UK Motor.
Liability for remaining coverage
Liability for incurred claims
2025
Excluding
loss
component
Loss
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(883.3)
–
(883.3)
(2,300.8)
(390.3)
(2,691.1) (3,574.4)
Net opening balance
(883.3)
–
(883.3) (2,300.8)
(390.3)
(2,691.1) (3,574.4)
Insurance revenue
3,511.5
–
3,511.5
–
–
–
3,511.5
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(2,787.4)
(185.9) (2,973.3) (2,973.3)
Changes to liabilities for incurred
claims
–
–
–
115.8
219.9
335.7
335.7
Losses and reversals of losses on
onerous contracts
–
(0.1)
(0.1)
–
–
–
(0.1)
Insurance service result
3,511.5
(0.1)
3,511.4
(2,671.6)
33.9 (2,637.7)
873.7
Insurance finance income/
(expense) recognised in
profit or loss
–
0.1
0.1
(96.0)
(17.4)
(113.5)
(113.4)
Insurance finance income/
(expense) recognised in OCI
–
–
–
(47.6)
(10.5)
(58.0)
(58.0)
Total changes in comprehensive
income
3,511.5
–
3,511.5
(2,815.2)
6.0 (2,809.2)
702.3
Other changes
–
–
–
74.3
–
74.3
74.3
Cashflows
Premiums received
(3,402.3)
– (3,402.3)
–
–
– (3,402.3)
Claims and other insurance
service expenses paid
–
–
–
2,356.0
–
2,356.0
2,356.0
Other movements
–
–
–
–
–
–
–
Total cashflows
(3,402.3)
– (3,402.3)
2,356.0
–
2,356.0 (1,046.3)
Net closing balance
(774.1)
–
(774.1) (2,685.7)
(384.3) (3,070.0) (3,844.1)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(774.1)
–
(774.1)
(2,685.7)
(384.3) (3,070.0) (3,844.1)
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
244
Liability for remaining coverage
Liability for incurred claims
2024
Excluding
loss
component
Loss
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(766.0)
(3.0)
(769.0)
(2,202.8)
(343.9) (2,546.7)
(3,315.7)
Net opening balance
(766.0)
(3.0)
(769.0) (2,202.8)
(343.9) (2,546.7)
(3,315.7)
Insurance revenue
3,369.5
–
3,369.5
–
–
–
3,369.5
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(2,548.7)
(186.0) (2,734.7) (2,734.7)
Changes to liabilities for
incurred claims
–
–
–
343.4
152.7
496.1
496.1
Losses and reversals of losses on
onerous contracts
–
5.1
5.1
–
–
–
5.1
Insurance service result
3,369.5
5.1
3,374.6 (2,205.3)
(33.3) (2,238.6)
1,136.0
Insurance finance income/
(expense) recognised in
profit or loss
–
(2.4)
(2.4)
(86.5)
(15.3)
(101.8)
(104.2)
Insurance finance income/
(expense) recognised in OCI
–
0.3
0.3
16.2
2.2
18.4
18.7
Total changes in comprehensive
income
3,369.5
3.0
3,372.5 (2,275.6)
(46.4) (2,322.0)
1,050.5
Other changes
35.9
–
35.9
79.3
–
79.3
115.2
Cashflows
Premiums received
(3,522.7)
– (3,522.7)
–
–
– (3,522.7)
Claims and other insurance
service expenses paid
–
–
–
2,098.3
–
2,098.3
2,098.3
Other movements
–
–
–
–
–
–
–
Total cashflows
(3,522.7)
– (3,522.7)
2,098.3
–
2,098.3 (1,424.4)
Net closing balance
(883.3)
–
(883.3) (2,300.8)
(390.3)
(2,691.1) (3,574.4)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(883.3)
–
(883.3)
(2,300.8)
(390.3)
(2,691.1) (3,574.4)
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
245
UK Other Personal lines Insurance
The following tables reconcile the opening and closing balances of the LRC and LIC for UK Other Personal lines insurance
(UK Household, Pet and Travel).
Liability for remaining coverage
Liability for incurred claims
2025
Excluding
loss
component
Loss
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(195.3)
–
(195.3)
(190.8)
(23.9)
(214.7)
(410.0)
Net opening balance
(195.3)
–
(195.3)
(190.8)
(23.9)
(214.7)
(410.0)
Insurance revenue
710.1
–
710.1
–
–
–
710.1
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(618.3)
(29.6)
(647.9)
(647.9)
Changes to liabilities for
incurred claims
–
–
–
16.7
16.9
33.6
33.6
Losses and reversals of losses
on onerous contracts
–
(0.2)
(0.2)
–
–
–
(0.2)
Insurance service result
710.1
(0.2)
709.9
(601.6)
(12.7)
(614.3)
95.6
Insurance finance income/
(expense) recognised in
profit or loss
–
–
–
(8.5)
(1.1)
(9.6)
(9.6)
Insurance finance income/
(expense) recognised in OCI
–
–
–
(0.7)
(0.1)
(0.8)
(0.8)
Total changes in comprehensive
income
710.1
(0.2)
709.9
(610.8)
(13.9)
(624.7)
85.2
Other changes
–
0.2
0.2
17.1
0.1
17.2
17.4
Cashflows
Premiums received
(721.0)
–
(721.0)
–
–
–
(721.0)
Claims and other insurance
service expenses paid
–
–
–
518.8
–
518.8
518.8
Other movements
–
–
–
–
–
–
–
Total cashflows
(721.0)
–
(721.0)
518.8
–
518.8
(202.2)
Net closing balance
(206.2)
–
(206.2)
(265.7)
(37.7)
(303.4)
(509.6)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(206.2)
–
(206.2)
(265.7)
(37.7)
(303.4)
(509.6)
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
246
Liability for remaining coverage
Liability for incurred claims
2024
Excluding
loss
component
Loss
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(136.2)
–
(136.2)
(193.6)
(23.9)
(217.5)
(353.7)
Net opening balance
(136.2)
–
(136.2)
(193.6)
(23.9)
(217.5)
(353.7)
Insurance revenue
503.9
–
503.9
–
–
–
503.9
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(444.8)
(17.7)
(462.5)
(462.5)
Changes to liabilities for
incurred claims
–
–
–
32.6
18.8
51.4
51.4
Losses and reversals of losses
on onerous contracts
–
–
–
–
(0.2)
(0.2)
(0.2)
Insurance service result
503.9
–
503.9
(412.2)
0.9
(411.3)
92.6
Insurance finance income/
(expense) recognised in
profit or loss
–
–
–
(8.0)
(0.9)
(8.9)
(8.9)
Insurance finance income/
(expense) recognised in OCI
–
–
–
0.1
–
0.1
0.1
Total changes in comprehensive
income
503.9
–
503.9
(420.1)
–
(420.1)
83.8
Other changes
–
–
–
14.9
–
14.9
14.9
Cashflows
Premiums received
(563.0)
–
(563.0)
–
–
–
(563.0)
Claims and other insurance
service expenses paid
–
–
–
408.0
–
408.0
408.0
Other movements
–
–
–
–
–
–
–
Total cashflows
(563.0)
–
(563.0)
408.0
–
408.0
(155.0)
Net closing balance
(195.3)
–
(195.3)
(190.8)
(23.9)
(214.7)
(410.0)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(195.3)
–
(195.3)
(190.8)
(23.9)
(214.7)
(410.0)
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
247
European Insurance
The following tables reconcile the opening and closing balances of the LRC and LIC for European Insurance.
Liability for remaining coverage
Liability for incurred claims
2025
Excluding
loss
component
Loss
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(187.3)
(2.8)
(190.1)
(520.5)
(70.7)
(591.2)
(781.3)
Net opening balance
(187.3)
(2.8)
(190.1)
(520.5)
(70.7)
(591.2)
(781.3)
Insurance revenue
654.5
–
654.5
–
–
–
654.5
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(594.4)
(59.2)
(653.6)
(653.6)
Changes to liabilities for
incurred claims
–
–
–
(8.8)
57.9
49.1
49.1
Losses and reversals of losses
on onerous contracts
–
3.3
3.3
–
–
–
3.3
Insurance service result
654.5
3.3
657.8
(603.2)
(1.3)
(604.5)
53.3
Insurance finance income/
(expense) recognised in
profit or loss
–
(3.3)
(3.3)
(12.7)
(1.9)
(14.6)
(17.9)
Insurance finance income/
(expense) recognised in OCI
–
0.2
0.2
5.1
0.8
5.9
6.1
Foreign exchange impact
(11.3)
–
(11.3)
(30.6)
(4.0)
(34.6)
(45.9)
Total changes in comprehensive
income
643.2
0.2
643.4
(641.4)
(6.4)
(647.8)
(4.4)
Other changes
–
–
–
11.4
–
11.4
11.4
Cashflows
Premiums received
(670.3)
–
(670.3)
–
–
–
(670.3)
Claims and other insurance
service expenses paid
–
–
–
536.5
–
536.5
536.5
Other movements
–
–
–
–
–
–
–
Total cashflows
(670.3)
–
(670.3)
536.5
–
536.5
(133.8)
Net closing balance
(214.4)
(2.6)
(217.0)
(614.0)
(77.1)
(691.1)
(908.1)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(214.4)
(2.6)
(217.0)
(614.0)
(77.1)
(691.1)
(908.1)
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
248
Liability for remaining coverage
Liability for incurred claims
2024
Excluding
loss
component
Loss
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
–
–
–
–
–
–
–
Opening liabilities
(200.3)
(2.9)
(203.2)
(442.6)
(68.1)
(510.7)
(713.9)
Net opening balance
(200.3)
(2.9)
(203.2)
(442.6)
(68.1)
(510.7)
(713.9)
Insurance revenue
606.7
–
606.7
–
–
–
606.7
Insurance service expenses
Incurred claims and insurance
service expenses
–
–
–
(566.0)
(63.8)
(629.8)
(629.8)
Changes to liabilities for
incurred claims
–
–
–
(53.8)
61.1
7.3
7.3
Losses and reversals of losses
on onerous contracts
–
0.1
0.1
–
–
–
0.1
Insurance service result
606.7
0.1
606.8
(619.8)
(2.7)
(622.5)
(15.7)
Insurance finance income/
(expense) recognised in
profit or loss
–
–
–
(12.7)
(2.4)
(15.1)
(15.1)
Insurance finance income/
(expense) recognised in OCI
–
(0.1)
(0.1)
(7.8)
(0.9)
(8.7)
(8.8)
Foreign exchange impact
9.6
0.1
9.7
22.7
3.4
26.1
35.8
Total changes in comprehensive
income
616.3
0.1
616.4
(617.6)
(2.6)
(620.2)
(3.8)
Other changes
11.3
–
11.3
15.5
–
15.5
26.8
Cashflows
Premiums received
(614.6)
–
(614.6)
–
–
–
(614.6)
Claims and other insurance
service expenses paid
–
–
–
524.2
–
524.2
524.2
Other movements
–
–
–
–
–
–
–
Total cashflows
(614.6)
–
(614.6)
524.2
–
524.2
(90.4)
Net closing balance
(187.3)
(2.8)
(190.1)
(520.5)
(70.7)
(591.2)
(781.3)
Closing assets
–
–
–
–
–
–
–
Closing liabilities
(187.3)
(2.8)
(190.1)
(520.5)
(70.7)
(591.2)
(781.3)
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
249
(iii). Roll-forward of net asset or liability for reinsurance contracts issued
UK Motor
The following tables reconcile the opening and closing balances of the ARC and AIC for UK Motor.
Asset for remaining coverage
Asset for incurred claims
2025
Excluding
loss
component
Loss-
recovery
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
34.0
–
34.0
172.5
64.0
236.5
270.5
Opening liabilities
–
–
–
–
–
–
–
Net opening balance
34.0
–
34.0
172.5
64.0
236.5
270.5
Allocation of reinsurance
premiums
(133.5)
–
(133.5)
–
–
–
(133.5)
Amounts recoverable from
reinsurers for incurred claims
Incurred claims
–
–
–
26.1
44.9
71.0
71.0
Changes to liabilities for incurred
claims
–
–
–
(18.3)
(38.5)
(56.8)
(56.8)
Changes in the loss
recovery component
–
0.1
0.1
–
–
–
0.1
Net income/ (expense) from
reinsurance contracts held
(133.5)
0.1
(133.4)
7.8
6.4
14.2
(119.2)
Reinsurance finance income/
(expense) recognised in
profit or loss
–
(0.1)
(0.1)
7.0
3.6
10.6
10.5
Reinsurance finance income/
(expense) recognised in OCI
–
–
–
8.7
4.4
13.1
13.1
Total changes in comprehensive
income
(133.5)
–
(133.5)
23.5
14.4
37.9
(95.6)
Cashflows
Premiums paid
145.2
–
145.2
–
–
–
145.2
Claims recoveries
–
–
–
(6.7)
–
(6.7)
(6.7)
Recoveries as a result of
commutations
–
–
–
–
–
–
–
Total cashflows
145.2
–
145.2
(6.7)
–
(6.7)
138.5
Net closing balance
45.7
–
45.7
189.3
78.4
267.7
313.4
Closing assets
45.7
–
45.7
189.3
78.4
267.7
313.4
Closing liabilities
–
–
–
–
–
–
–
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
250
Asset for remaining coverage
Asset for incurred claims
2024
Excluding
loss
component
Loss-
recovery
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
20.8
2.3
23.1
313.2
183.6
496.8
519.9
Opening liabilities
–
–
–
–
–
–
–
Net opening balance
20.8
2.3
23.1
313.2
183.6
496.8
519.9
Allocation of reinsurance
premiums
(145.8)
–
(145.8)
–
–
–
(145.8)
Amounts recoverable from
reinsurers for incurred claims
Incurred claims
–
–
–
22.2
7.0
29.2
29.2
Changes to liabilities for incurred
claims
–
–
–
(158.6)
(133.0)
(291.6)
(291.6)
Changes in the loss
recovery component
–
(4.0)
(4.0)
–
–
–
(4.0)
Net income/ (expense) from
reinsurance contracts held
(145.8)
(4.0)
(149.8)
(136.4)
(126.0)
(262.4)
(412.2)
Reinsurance finance income/
(expense) recognised in
profit or loss
–
1.8
1.8
11.1
7.9
19.0
20.8
Reinsurance finance income/
(expense) recognised in OCI
–
(0.1)
(0.1)
(2.8)
(1.5)
(4.3)
(4.4)
Total changes in comprehensive
income
(145.8)
(2.3)
(148.1)
(128.1)
(119.6)
(247.7)
(395.8)
Cashflows
Premiums paid
159.0
–
159.0
–
–
–
159.0
Claims recoveries
–
–
–
(0.9)
–
(0.9)
(0.9)
Recoveries as a result of
commutations
–
–
–
(11.7)
–
(11.7)
(11.7)
Total cashflows
159.0
–
159.0
(12.6)
–
(12.6)
146.4
Net closing balance
34.0
–
34.0
172.5
64.0
236.5
270.5
Closing assets
34.0
–
34.0
172.5
64.0
236.5
270.5
Closing liabilities
–
–
–
–
–
–
–
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
251
UK Other Personal lines insurance
The following tables reconcile the opening and closing balances of the ARC and AIC for UK Other Personal lines insurance
(Household, Travel and Pet).
Asset for remaining coverage
Asset for incurred claims
2025
Excluding
loss
component
Loss-
recovery
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
11.1
0.1
11.2
174.5
(1.0)
173.5
184.7
Opening liabilities
–
–
–
–
–
–
–
Net opening balance
11.1
0.1
11.2
174.5
(1.0)
173.5
184.7
Allocation of reinsurance
premiums
(143.1)
–
(143.1)
–
–
–
(143.1)
Amounts recoverable from
reinsurers for incurred claims
Incurred claims
–
–
–
75.4
15.8
91.2
91.2
Changes to liabilities for
incurred claims
–
–
–
8.7
(7.3)
1.4
1.4
Changes in the loss
recovery component
–
0.2
0.2
–
–
–
0.2
Net income/ (expense) from
reinsurance contracts held
(143.1)
0.2
(142.9)
84.1
8.5
92.6
(50.3)
Reinsurance finance income/
(expense) recognised in
profit or loss
–
–
–
7.1
(0.1)
7.0
7.0
Reinsurance finance income/
(expense) recognised in OCI
–
(0.3)
(0.3)
0.5
(0.2)
0.3
–
Total changes in comprehensive
income
(143.1)
(0.1)
(143.2)
91.7
8.2
99.9
(43.3)
Reinsurance investment
components
(150.0)
–
(150.0)
150.0
–
150.0
–
Cashflows
Premiums paid
295.6
–
295.6
–
–
–
295.6
Claims recoveries
–
–
–
(208.2)
–
(208.2)
(208.2)
Recoveries as a result of
commutations
–
–
–
–
–
–
–
Total cashflows
295.6
–
295.6
(208.2)
–
(208.2)
87.4
Net closing balance
13.6
–
13.6
208.0
7.2
215.2
228.8
Closing assets
13.6
–
13.6
208.0
7.2
215.2
228.8
Closing liabilities
–
–
–
–
–
–
–
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
252
Asset for remaining coverage
Asset for incurred claims
2024
Excluding
loss
component
Loss-
recovery
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
21.4
–
21.4
154.9
15.3
170.2
191.6
Opening liabilities
–
–
–
–
–
–
–
Net opening balance
21.4
–
21.4
154.9
15.3
170.2
191.6
Allocation of reinsurance
premiums
(45.8)
–
(45.8)
–
–
–
(45.8)
Amounts recoverable from
reinsurers for incurred claims
Incurred claims
–
–
–
(8.2)
5.1
(3.1)
(3.1)
Changes to liabilities for
incurred claims
–
–
–
(12.3)
(22.0)
(34.3)
(34.3)
Changes in the loss
recovery component
–
0.1
0.1
–
–
–
0.1
Net income/ (expense) from
reinsurance contracts held
(45.8)
0.1
(45.7)
(20.5)
(16.9)
(37.4)
(83.1)
Reinsurance finance income/
(expense) recognised in
profit or loss
–
–
–
6.1
0.6
6.7
6.7
Reinsurance finance income/
(expense) recognised in OCI
–
–
–
(0.3)
–
(0.3)
(0.3)
Total changes in comprehensive
income
(45.8)
0.1
(45.7)
(14.7)
(16.3)
(31.0)
(76.7)
Reinsurance investment
components
(178.6)
–
(178.6)
178.6
–
178.6
–
Cashflows
Premiums paid
214.1
–
214.1
–
–
–
214.1
Claims recoveries
–
–
–
(144.3)
–
(144.3)
(144.3)
Recoveries as a result of
commutations
–
–
–
–
–
–
–
Total cashflows
214.1
–
214.1
(144.3)
–
(144.3)
69.8
Net closing balance
11.1
0.1
11.2
174.5
(1.0)
173.5
184.7
Closing assets
11.1
0.1
11.2
174.5
(1.0)
173.5
184.7
Closing liabilities
–
–
–
–
–
–
–
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
253
European Insurance
The following tables reconcile the opening and closing balances of the ARC and AIC for European Insurance.
Asset for remaining coverage
Asset for incurred claims
2025
Excluding
loss
component
Loss-
recovery
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
40.2
2.3
42.5
425.7
36.0
461.7
504.2
Opening liabilities
–
–
–
–
–
–
–
Net opening balance
40.2
2.3
42.5
425.7
36.0
461.7
504.2
Allocation of reinsurance
premiums
(155.8)
–
(155.8)
–
–
–
(155.8)
Amounts recoverable from
reinsurers for incurred claims
Incurred claims
–
–
–
101.7
49.5
151.2
151.2
Changes to liabilities for
incurred claims
–
–
–
2.2
(48.0)
(45.8)
(45.8)
Changes in the loss
recovery component
–
(2.1)
(2.1)
–
–
–
(2.1)
Net income/ (expense) from
reinsurance contracts held
(155.8)
(2.1)
(157.9)
103.9
1.5
105.4
(52.5)
Reinsurance finance income/
(expense) recognised in
profit or loss
–
2.3
2.3
8.5
1.1
9.6
11.9
Reinsurance finance income/
(expense) recognised in OCI
–
(0.1)
(0.1)
(3.4)
(0.5)
(3.9)
(4.0)
Foreign exchange impact
2.0
0.1
2.1
24.5
2.1
26.6
28.7
Total changes in comprehensive
income
(153.8)
0.2
(153.6)
133.5
4.2
137.7
(15.9)
Reinsurance investment
components
(147.4)
–
(147.4)
147.4
–
147.4
–
Cashflows
Premiums paid
278.4
–
278.4
–
–
–
278.4
Claims recoveries
–
–
–
(239.8)
–
(239.8)
(239.8)
Recoveries as a result of
commutations
–
–
–
–
–
–
–
Total cashflows
278.4
–
278.4
(239.8)
–
(239.8)
38.6
Net closing balance
17.4
2.5
19.9
466.8
40.2
507.0
526.9
Closing assets
17.4
2.5
19.9
466.8
40.2
507.0
526.9
Closing liabilities
–
–
–
–
–
–
–
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
254
Asset for remaining coverage
Asset for incurred claims
2024
Excluding
loss
component
Loss-
recovery
component
Total
Present
value of
future
cashflows
Risk adj.
for non-
financial
risk
Total
Total
£m
Opening assets
–
2.0
2.0
415.8
34.5
450.3
452.3
Opening liabilities
(4.9)
–
(4.9)
–
–
–
(4.9)
Net opening balance
(4.9)
2.0
(2.9)
415.8
34.5
450.3
447.4
Allocation of reinsurance
premiums
(119.2)
–
(119.2)
–
–
–
(119.2)
Amounts recoverable from
reinsurers for incurred claims
Incurred claims
–
–
–
189.8
65.4
255.2
255.2
Changes to liabilities for
incurred claims
–
–
–
(79.6)
(63.9)
(143.5)
(143.5)
Changes in the loss
recovery component
–
0.3
0.3
–
–
–
0.3
Net income/ (expense) from
reinsurance contracts held
(119.2)
0.3
(118.9)
110.2
1.5
111.7
(7.2)
Reinsurance finance income/
(expense) recognised in
profit or loss
–
–
–
7.4
1.1
8.5
8.5
Reinsurance finance income/
(expense) recognised in OCI
–
–
–
6.5
0.6
7.1
7.1
Foreign exchange impact
(0.9)
–
(0.9)
(20.0)
(1.7)
(21.7)
(22.6)
Total changes in comprehensive
income
(0.9)
–
(0.9)
(6.1)
–
(6.1)
(7.0)
Reinsurance investment
components
(175.0)
–
(175.0)
175.0
–
175.0
–
Cashflows
Premiums paid
340.2
–
340.2
–
–
–
340.2
Claims recoveries
–
–
–
(269.2)
–
(269.2)
(269.2)
Recoveries as a result of
commutations
–
–
–
–
–
–
–
Total cashflows
340.2
–
340.2
(269.2)
–
(269.2)
71.0
Net closing balance
40.2
2.3
42.5
425.7
36.0
461.7
504.2
Closing assets
40.2
2.3
42.5
425.7
36.0
461.7
504.2
Closing liabilities
–
–
–
–
–
–
–
(iv) Claims development
The following tables illustrate how estimates of cumulative claims for UK Motor, UK Other Personal lines and European
Insurance have developed over time on a gross and net of reinsurance basis.
Each table shows how the Group’s estimates of total claims for each underwriting year have developed over time and
reconciles the cumulative claims to the amount included in the Statement of Financial Position. Balances have been
translated at the exchange rates prevailing at the reporting date. The Group has not disclosed information for underwriting
years 2017 and prior for the European Insurance and Other UK Personal lines Insurance businesses, given that the claims
that remain outstanding on those years are immaterial.
IFRS 17 does not require an entity to disclose claims development information for which uncertainty about the amount and
timing of the claims payments is typically resolved within one year. Therefore, the Group has not disclosed information about
the claims in its other lines of business or related directly attributable expenses.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
255
Gross claims development
Financial year ended 31 December 2025
Underwriting year
2015 &
prior
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
UK Motor (core)
At end of year one
436
552
686
701
552
688
845
973 1,241 1,242
At end of year two
829 1,144 1,175 1,067
985 1,326 1,584 1,812 2,158
At end of year three
788
994 1,109 1,010
954 1,294 1,544 1,724
At end of year four
727
947 1,064
996
921 1,270 1,517
At end of year five
713
912 1,008
981
910 1,200
At end of year six
690
890 1,000
938
876
At end of year seven
656
865
959
936
At end of year eight
652
849
953
At end of year nine
657
843
Ten years later
643
Gross best estimates
of undiscounted
claims
4,367
643
843
953
936
876 1,200 1,517 1,724 2,158 1,242 16,459
Cumulative gross
claims paid
(4,229)
(611) (778) (908) (847) (763) (990) (1,161) (1,193) (1,318) (546) (13,344)
Gross undiscounted
best estimate liabilities
138
32
65
45
89
113
210
356
531
840
696
3,115
Risk adjustment
(undiscounted)
453
Effect of discounting
(624)
Gross claims
liabilities
2,944
Ancillary claims and
expense liabilities
126
UK Motor Gross
liabilities for incurred
claims
3,070
UK Other (core)
At end of year one
26
29
56
55
53
58
116
146
160
228
At end of year two
50
78
102
105
96
128
224
253
341
At end of year three
47
76
102
103
95
124
227
251
At end of year four
47
75
102
102
90
126
225
At end of year five
47
76
102
93
93
125
At end of year six
47
76
100
96
94
At end of year seven
47
75
102
101
At end of year eight
48
77
100
At end of year nine
48
75
Ten years later
48
Gross best estimates
of undiscounted
claims
57
48
75
100
101
94
125
225
251
341
228
1,645
Cumulative gross
claims paid
(57)
(48)
(75) (100)
(99)
(92)
(121) (212) (226) (252)
(98) (1,380)
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
256
Financial year ended 31 December 2025
Underwriting year
2015 &
prior
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Gross undiscounted
best estimate liabilities
–
–
–
–
2
2
4
13
25
89
130
265
Risk adjustment
(undiscounted)
39
Effect of discounting
(10)
Gross claims
liabilities
294
Ancillary claims and
expense liabilities
9
UK Other Gross
liabilities for incurred
claims
303
European Insurance
At end of year one
–
–
98
123
111
159
167
202
214
240
At end of year two
–
128
191
212
229
310
390
397
432
At end of year three
118
174
186
225
227
314
388
421
At end of year four
135
172
190
221
227
310
405
At end of year five
134
173
189
214
221
335
At end of year six
134
173
184
210
238
At end of year seven
134
167
181
219
At end of year eight
130
162
193
At end of year nine
127
176
Ten years later
137
Gross best estimates
of undiscounted
claims
565
137
176
193
219
238
335
405
421
432
240
3,361
Cumulative gross
claims paid
(515)
(137) (162) (180) (206) (205) (277) (327) (325) (269)
(99) (2,702)
Gross undiscounted
best estimate liabilities
50
–
14
13
13
33
58
78
96
163
141
659
Risk adjustment
(undiscounted)
82
Effect of discounting
(75)
Gross claims
liabilities
666
Ancillary claims and
expense liabilities
25
European Insurance
Gross liabilities for
incurred claims
691
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
257
Claims development net of XoL reinsurance
Financial year ended 31 December 2025
Underwriting year
2015 &
prior
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
UK Motor (core)
At end of year one
427
510
646
675
520
661
825
951 1,220 1,220
At end of year two
783 1,053 1,123 1,033
949 1,292 1,550 1,776 2,115
At end of year three
743
917 1,053
986
927 1,257 1,517 1,694
At end of year four
692
883 1,024
969
892 1,240 1,495
At end of year five
677
860
974
950
886 1,185
At end of year six
663
840
978
925
864
At end of year seven
640
820
946
921
At end of year eight
635
825
939
At end of year nine
644
814
Ten years later
630
Net of XoL best
estimates of
undiscounted claims
4,329
630
814
939
921
864 1,185 1,495 1,694 2,115 1,220 16,206
Cumulative
claims paid
(4,228)
(611) (777) (903) (847) (763) (990) (1,161) (1,193) (1,318) (546) (13,337)
Net of XoL
undiscounted best
estimate liabilities
101
19
37
36
74
101
195
334
501
797
674 2,869
Risk adjustment
(undiscounted)
411
Effect of discounting
(512)
Net of XoL
claims liabilities
2,768
Ancillary claims and
expense liabilities
126
UK Motor Net of XoL
liabilities for incurred
claims
2,894
UK Other (core)
At end of year one
26
29
56
54
50
57
116
127
152
224
At end of year two
50
78
102
96
91
126
220
229
327
At end of year three
47
75
101
94
90
124
221
233
At end of year four
47
75
101
93
90
127
220
At end of year five
47
76
101
93
93
124
At end of year six
47
75
100
96
89
At end of year seven
47
75
102
92
At end of year eight
48
77
99
At end of year nine
48
75
Ten years later
48
Net of XoL best
estimates of
undiscounted claims
57
48
75
99
92
89
124
220
233
327
224
1,588
Cumulative
claims paid
(57)
(48)
(75)
(99)
(91)
(88)
(119) (207) (213) (247)
(98) (1,342)
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
258
Financial year ended 31 December 2025
Underwriting year
2015 &
prior
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Net of XoL
undiscounted best
estimate liabilities
–
–
–
–
1
1
5
13
20
80
126
246
Risk adjustment
(undiscounted)
37
Effect of discounting
(9)
Net of XoL
claims liabilities
274
Ancillary claims and
expense liabilities
10
UK Other Net of XoL
liabilities for incurred
claims
284
European Insurance
At end of year one
–
–
98
123
112
159
167
200
213
230
At end of year two
–
128
190
212
229
310
349
387
425
At end of year three
118
175
186
225
226
293
346
412
At end of year four
135
172
189
220
217
283
380
At end of year five
134
173
189
211
213
314
At end of year six
134
173
182
206
234
At end of year seven
134
161
179
216
At end of year eight
130
157
193
At end of year nine
127
171
Ten years later
137
Net of XoL best
estimates of
undiscounted claims
534
137
171
193
216
234
314
380
412
425
230 3,246
Cumulative
claims paid
(512)
(137)
(161)
(181) (205) (207) (276) (323) (325) (269)
(94) (2,690)
Net of XoL
undiscounted best
estimate liabilities
22
–
10
12
11
27
38
57
87
156
136
556
Risk adjustment
(undiscounted)
76
Effect of discounting
(43)
Net of XoL
claims liabilities
589
Ancillary claims and
expense liabilities
25
European Insurance
Net of XoL liabilities
for incurred claims
614
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
259
Claims development net of reinsurance
Financial year ended 31 December 2025
Underwriting year
2015 &
prior
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
UK Motor (core)
At end of year one
427
493
625
626
520
657
762
939
1,220
1,220
At end of year two
783
1,016
1,086
1,033
949
1,259
1,442
1,776
2,115
At end of year three
743
886
1,018
986
927
1,239
1,470
1,694
At end of year four
692
853
990
969
892
1,236
1,451
At end of year five
677
830
957
950
886
1,185
At end of year six
663
811
944
925
864
At end of year seven
640
793
913
921
At end of year eight
635
798
939
At end of year nine
644
814
Ten years later
630
Net best estimates of
undiscounted claims1
4,329
630
814
939
921
864 1,185 1,451 1,694 2,115 1,220 16,162
Cumulative net
claims paid
(4,228)
(611) (777) (903) (847) (763) (990) (1,161) (1,193) (1,318) (546) (13,337)
Net undiscounted
best
estimate liabilities
101
19
37
36
74
101
195
290
501
797
674 2,825
Risk adjustment
(undiscounted)
345
Effect of discounting
(494)
Net claims liabilities
2,676
Ancillary claims and
expense liabilities
126
UK Motor Net
liabilities for
incurred claims
2,802
UK Other (core)
At end of year one
7
6
20
18
16
16
43
68
78
117
At end of year two
14
22
34
25
12
41
94
108
117
At end of year three
12
24
33
31
19
36
88
87
At end of year four
12
22
37
30
18
40
79
At end of year five
12
24
37
29
21
35
At end of year six
12
24
36
33
18
At end of year seven
12
24
39
29
At end of year eight
13
25
35
At end of year nine
13
23
Ten years later
13
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
260
Financial year ended 31 December 2025
Underwriting year
2015 &
prior
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Net best estimates of
undiscounted claims
16
13
23
35
29
18
35
79
87
117
117
569
Cumulative net
claims paid
(16)
(13)
(23)
(35)
(28)
(17)
(33)
(77)
(81) (106)
(83)
(512)
Net undiscounted
best estimate liabilities
–
–
–
–
1
1
2
2
6
11
34
57
Risk adjustment
(undiscounted)
17
Effect of discounting
(4)
Net claims liabilities
70
Ancillary claims and
expense liabilities
18
UK Other Net
liabilities for
incurred claims
88
European Insurance
At end of year one
–
–
34
41
37
48
54
71
77
56
At end of year two
–
41
65
72
76
100
120
138
123
At end of year three
75
54
63
74
76
103
121
144
At end of year four
93
53
65
75
75
101
132
At end of year five
92
59
65
74
76
112
At end of year six
47
59
63
75
84
At end of year seven
47
57
63
75
At end of year eight
46
57
69
At end of year nine
46
62
Ten years later
49
Net best estimates of
undiscounted claims
206
49
62
69
75
84
112
132
144
123
56
1,112
Cumulative net
claims paid
(189)
(49)
(58)
(65)
(72)
(74)
(98)
(111)
(113)
(93)
(37)
(959)
Net undiscounted
best estimate liabilities
17
–
4
4
3
10
14
21
31
30
19
153
Risk adjustment
(undiscounted)
(37)
Effect of discounting
(25)
Net claims liabilities
91
Ancillary claims and
expense liabilities
25
European Insurance
Net liabilities
incurred claims
116
1 The gross best estimate of undiscounted claims and cumulative gross claims paid reported in the prior year financial statements were
inclusive of underwritten ancillaries, and have been removed from all underwriting years
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
261
(v) UK Motor Loss ratios and Changes to liabilities for incurred claims
The table below shows the development of UK Motor Insurance loss ratios for the past five financial periods, presented
on an underwriting year basis, both using undiscounted amounts (i.e. cashflows) and discounted amounts.
UK Motor Insurance loss ratio development -
undiscounted, net of excess of loss reinsurance1
31 December
2021
2022
2023
2024
2025
Underwriting year
2020
68%
65%
58%
57%
55%
2021
95%
91%
86%
82%
77%
2022
–
104%
96%
91%
89%
2023
–
–
94%
80%
76%
2024
–
–
–
77%
71%
2025
–
–
–
–
85%
1 Booked undiscounted loss ratios presented from the transition date of IFRS 17 (1 January 2022) onwards.
UK Motor Insurance loss ratio development -
discounted, net of excess of loss reinsurance 1
31 December
2021
2022
2023
2024
2025
Underwriting year
2020
67%
63%
57%
55%
54%
2021
92%
86%
81%
77%
74%
2022
–
97%
88%
83%
82%
2023
–
–
86%
72%
69%
2024
–
–
–
71%
65%
2025
–
–
–
–
78%
1 Loss ratios using discounted locked-in curves, excluding finance expenses are presented from the transition date of IFRS 17
(1 January 2022) onwards.
The following table analyses the impact of movements in changes to liabilities from incurred claims by underwriting year
on a gross and net of excess of loss reinsurance basis for UK Motor (core).
31 December
2025
£m
31 December
2024
£m
Gross
Underwriting year
2020 & prior
33.1
215.5
2021
59.5
87.0
2022
26.6
107.1
2023
91.4
83.8
2024
119.8
–
2025
–
–
Total UK Motor (core) gross changes to liabilities for incurred claims
330.4
493.4
Net
Underwriting year
2020 & prior
30.9
130.1
2021
47.2
70.6
2022
22.5
94.5
2023
86.0
76.7
2024
118.5
–
2025
–
–
Total UK Motor (core) net of excess of loss changes to liabilities for incurred claims
305.1
371.9
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
262
6. Investment income and finance costs
6a. Accounting policies
(i) Financial assets
Classification and measurement
The classification and subsequent measurement of the financial asset under IFRS 9 depends on:
1. The Group’s business model for managing the financial assets, and
2.The contractual cashflow characteristics of the financial asset.
Based on these factors, the financial asset is classified into one of the following categories:
Amortised cost
These comprise assets which are held in order to collect contractual cashflows and the contractual terms of the financial
asset give rise to cashflows which are solely payments of principal and interest on the principal amount outstanding (‘SPPI’),
where the asset is not designated as fair value through profit or loss (‘FVTPL’).
For the Group, these include deposits with credit institutions, cash and cash equivalents, insurance receivables, trade and
other receivables and loans and advances to customers.
The interest income generated from these assets is included in investment returns, with the exception of loans and advances
to customers and cash and cash equivalents relating to the loans business, where the interest receivable is recognised
in interest income.
Fair value through other comprehensive income (‘FVOCI’)
These comprise assets which are held both to collect contractual cashflows and to sell the asset, where the contractual
terms of the financial asset give rise to cashflows which are solely payments of principal and interest on the principal
amount outstanding (‘SPPI’), where the asset is not designated as FVTPL.
For the Group, these assets include corporate, government and private debt securities. These assets are held to match
policyholder liabilities or interest on debt liabilities. If sold before maturity, gains or losses on these assets impact the
consolidated income statement.
In addition, IFRS 9 allows an irrevocable election at initial recognition to designate equity investments at FVOCI that
otherwise would be held at FVTPL, provided these are not held for trading. The Group has made this election for certain
investments which are not held for trading and are strategic investments to be designated as being reported through FVOCI.
These represent open ended private debt securities held in investment funds.
Movements in the carrying amount are taken through OCI, with the exception of recognition of impairment gains or losses,
interest revenue, dividend income and foreign exchange gains or losses which are recognised in profit or loss.
A gain or loss on disposal of an investment measured at FVOCI is presented within investment return in the period in which
it arises.
Fair value through profit or loss (‘FVTPL’)
These are assets which do not meet the criteria for amortised cost or FVOCI, or which are designated as FVTPL.
For the Group, these assets include liquidity funds investing in short duration assets, other funds, closed ended private debt
funds and derivative financial instruments. The regulatory capital within the Group is used to invest in these instruments
in addition to any surplus funds which may be held. Buying and selling activity occurs depending on timing of different
cashflows. Loan assets originated with the intention of being sold under the forward flow agreement in Admiral Money
are also measured at FVTPL. See note 7 for further information on the forward flow agreement.
Impairment
The expected credit loss model (‘ECL’) is used to calculate any impairment to be recognised for all assets measured at
amortised cost, as well as financial investments measured at FVOCI. The general approach, which utilises the three-stage
model, is used for loans and advances to customers (see note 7), as well as financial investments measured at FVOCI.
For financial investments measured at FVOCI, the approach is based on an assessment made based on an external credit
rating agency or an assessment from the Group’s external asset managers, to assess whether there has been a significant
increase in credit risk, combined with other external data as follows:
• Financial assets in stage 1 are those where the credit risk has not increased significantly since initial recognition. A 12
month ECL is recognised. To determine the default rate, the average of external rates using Standard & Poor and Moody’s
is used, together with consideration of any overlay based on qualitative criteria
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
263
• Financial assets in stage 2 are those where credit risk has increased significantly since initial recognition, with the
provision reflecting a lifetime loss. A significant increase in credit risk is defined as public assets that are downgraded
outside of investment grade or by two or more credit ratings in investment grade, or for a bond purchased at sub-
investment grade, a fall in of a full credit banding i.e. BB to B; and private assets which have been flagged on watchlists for
significant credit deterioration. For assets in stage 2, the lifetime ECL is based on the lifetime default rate which factors in
the number of years from maturity
• For assets in stage 1 and stage 2, a recovery rate is also applied to the loss given default, based on an average of
a number of external and internal sources
• Financial assets in stage 3 are credit impaired, which typically occurs when the asset has defaulted, restructured or is not
expected to return full proceeds. Each asset in this category is reviewed to assess the recoverable amount based on the
information available.
The credit rating of all assets is regularly monitored. As at the year-end reporting date, the majority of financial assets are
considered low risk under IFRS 9 (2025 stage 1 assets: 99% of total investments). These therefore remain within stage 1 and
a 12-month expected loss is used to calculate the impairment provision required.
The impairment provision at 31 December 2025 is £6.8 million (£12.9 million at 31 December 2024).
The calculated impairment loss within the fair value is recognised through the Income Statement whilst fair value
movements are recognised in Other Comprehensive Income.
Given there is no material change in the credit quality or type of financial assets in the year and the movement in provision
is immaterial, no further disclosure has been made.
Derecognition
A financial asset is derecognised when the rights to receive cashflows from that asset have expired, or when the Group
transfers the asset and all the attached substantial risks and rewards relating to the asset to a third party.
(ii) Financial liabilities
Classification and subsequent measurement
All financial liabilities are classified as subsequently measured at amortised cost using the effective interest method, except
for derivatives that are classified at fair value through profit or loss and subsequently measured at fair value.
Movements in the amortised cost are recognised through the Income Statement.
Derecognition
A financial liability is derecognised when the obligation under that liability is discharged, cancelled or expires.
(iii) Investment return and finance costs
Investment return from financial assets comprises distributions as well as net realised and unrealised gains on financial
assets classified as FVTPL, interest income and net realised gains from financial assets classified as FVOCI, and interest
income from financial assets classified as amortised cost.
Finance costs from financial liabilities comprise interest expense on subordinated notes, credit facilities and lease liabilities,
calculated using the effective interest rate method. The effective interest rate method calculates the amortised cost of a
financial asset or liability (or group of financial assets or financial liabilities) and allocates the interest income or expense over
the expected life of the asset or liability.
(iv) Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured initially at cost,
including transaction costs. Subsequent to initial recognition, investment property is measured at fair value in accordance
with IAS 40. Fair value is determined based on valuations performed by independent professionally qualified valuers. Gains
or losses arising from changes in the fair value of investment property are included in profit or loss in the period in which
they arise.
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use
and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit
or loss in the period in which the property is derecognised.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
264
6b. Investment return
31 December 2025
£m
31 December 2024
£m
Continuing operations
At EIR
Other
Total
At EIR
Other
Total
Investment return
On assets classified as FVTPL
–
74.7
74.7
–
65.4
65.4
On assets classified as FVOCI1, 3
125.9
4.6
130.5
97.5
5.3
102.8
On assets classified as amortised cost1
3.1
–
3.1
5.9
–
5.9
Net unrealised losses
Unrealised (loss) / gain on forward contracts
–
(0.4)
(0.4)
–
(0.2)
(0.2)
Share of associate profit/ loss
–
–
–
–
(1.0)
(1.0)
Interest income on cash and cash equivalents1
–
3.8
3.8
–
5.3
5.3
Investment fees
–
(2.3)
(2.3)
–
(2.0)
(2.0)
Total investment and interest income2
129.0
80.4
209.4
103.4
72.8
176.2
1 Interest received during the year was £120.4 million (2024: £90.6 million).
2 Total investment return excludes £9.4 million of intra-group interest (2024: £7.9 million).
3 Realised losses on sales of debt securities classified as FVOCI are £6.3 million (2024: £4.5 million).
Investment return, which is comprised of distributions as well as net realised and unrealised gains on financial assets
classified as FVTPL, interest income and net realised gains from financial assets classified as FVOCI, and interest income
from financial assets classified as amortised cost, is impacted by the interest rates on cash and financial investments.
Finance expense (note 5e), which reflects the unwind of discounting applied using a discount rate locked in at the date the
claim is recognised over the expected payment period, is also impacted by interest rates derived from the EIOPA yield curve
at the time of claim. Both these items are impacted by risk-free interest rates, albeit with differences driven by timing of
making investments versus the timing of claims recognition and payment. All other factors being equal, higher risk-free rates
should result in an increase in both investment return and finance expense being recognised in the Income Statement.
Admiral primarily invests to match its liabilities hence the OCI impacts on assets within the fair value reserve should correlate
to those on the insurance contract liabilities within the insurance finance reserve. However, Admiral invests in a diverse range
of assets including corporate and government bonds hence the investment fair value reserve is driven by factors beyond the
interest rates used in discounting the liabilities. These include market credit spreads as well as fair value movements on
surplus assets not held to match the insurance liabilities and can move in the opposite direction to interest rates.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
265
6c. Finance costs
Continuing operations
31 December
2025
£m
31 December
2024
£m
Interest expense on subordinated loan notes and other credit facilities1, 2
22.3
24.5
Interest expense on lease liabilities
2.1
2.5
Interest recoverable from co-insurers
(0.4)
(0.6)
Total finance costs3
24.0
26.4
1 Interest paid during the year was £24.4 million (2024: £26.9 million).
2 See note 7e for details of credit facilities.
3 No interest has been capitalised in the period.
Finance costs represent interest payable on the £250.0 million (2024: £250.0 million) subordinated notes and other
financial liabilities.
Interest expense on lease liabilities represents the unwinding of the discount on lease liabilities under IFRS 16.
6d. Expected credit losses
Continuing operations
Note
31 December
2025
£m
31 December
2024
£m
Expected credit (gains)/losses on financial investments
6f
(6.1)
6.3
Expected credit losses on loans and advances to customers1
7b
35.9
28.3
Total expense for expected credit losses
29.8
34.6
1 Includes £16.2 million (2024: £26.1 million) of write-offs, with total movement in the ECL provision being £35.9 million
(2024: £28.3 million).
See note 6a and note 7 for details of the impairment methodology.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
266
6e. Financial assets and liabilities
The Group’s financial assets and liabilities can be analysed as follows:
31 December
2025
£m
31 December
2024
£m
Financial investments classified as FVTPL
Money market funds
824.4
902.6
Other funds1
621.8
473.9
Derivative financial instruments
1.5
5.8
Equity investments (designated FVTPL)
39.3
46.9
1,487.0
1,429.2
Financial investments classified as FVOCI
Corporate debt securities
2,474.7
2,410.9
Government debt securities2
1,026.1
772.2
Private debt securities
206.8
152.3
3,707.6
3,335.4
Financial assets measured at amortised cost
Deposits with credit institutions
57.9
91.7
Other
Investment property
5.7
6.9
Total financial investments
5,258.2
4,863.2
Other financial assets measured at amortised cost
Insurance related receivables
64.1
51.1
Trade and other receivables
148.4
110.4
Insurance related and other receivables
212.5
161.5
Loans and advances to customers (note 7)
1,628.7
1,106.9
Cash and cash equivalents
301.1
313.6
Total financial assets
7,400.5
6,445.2
Financial liabilities
Subordinated notes3
259.0
258.9
Loan backed securities
1,352.9
937.7
Other borrowings
200.3
117.4
Derivative financial instruments
7.7
8.2
Subordinated and other financial liabilities
1,819.9
1,322.2
Trade and other payables4
217.2
175.3
Lease liabilities
73.6
79.6
Total financial liabilities5
2,110.7
1,577.1
1 Other funds include funds which primarily invest in public and private fixed income securities are recognised as fair value through profit
and loss
2 Government debt securities include £0.6 million of short term UK government bonds held for collateral against foreign exchange
hedging derivatives
3 The fair value of subordinated notes (level one validation) is £288.5 million (31 December 2024: £276.4 million).
4 Trade and other payables include deferred income, accruals and other tax and social security.
5 All financial liabilities are classified as subsequently measured at amortised cost using the effective interest method (2025: £2,103.0
million; 2024: £1,568.9 million), except for derivatives that are classified at fair value through profit or loss and subsequently measured at
fair value.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
267
6f. Fair value measurement
IFRS 13 requires assets and liabilities that are held at fair value to be classified according to a hierarchy which reflects the
observability of significant market inputs, based on three levels. The Group policy is to recognise transfer between fair value
hierarchy levels as at the end of the reporting period. There were no transfers between fair value hierarchy levels in the
reporting period (2024: none).
The table below shows how the financial assets and liabilities held at fair value have been measured using the fair value
hierarchy:
31 December 2025
31 December 2024
FVTPL
£m
FVOCI
£m
FVTPL
£m
FVOCI
£m
Level one (quoted prices in active markets)
1,192.1
3,500.8
1,221.2
3,183.1
Level two (use of observable inputs)
(6.1)
–
(2.4)
–
Level three (use of significant unobservable inputs)
293.3
206.8
202.2
152.3
Total
1,479.3
3,707.6
1,421.0
3,335.4
Fair value measurement using observable inputs (level two)
Level two investments represent derivatives used for interest rate and FX hedging purposes, these are valued using market
interest rates and in the case of FX derivatives a combination of interest rates and spot FX rates.
Fair value measurement using significant unobservable inputs (level three)
Level three investments consist of debt and equity investments.
Debt investments are comprised primarily of investments in funds which invest in debt securities, these are valued at the
proportion of the Group’s holding of the Net Asset Value (NAV) reported by the investment vehicle. These include funds that
invest in corporate direct lending, residential and commercial mortgages, infrastructure debt and other private debt.
In addition, there is a small allocation of privately placed bonds which do not trade on active markets, these are valued using
discounted cash-flow models designed to appropriately reflect the credit and illiquidity of these instruments; these
valuations are performed by the external fund managers. The key unobservable input across private debt securities is the
discount rate which is based on the credit performance of the assets. A deterioration of the credit performance or expected
future performance will result in higher discount rates and lower values.
As these debt investments are held within investment funds where appropriate the Group elects to treat these investments
as equity through OCI. Debt investments in which the funds are closed ended are classified as FVTPL within Other funds
(2025: £254 million).
Equity securities are primarily comprised of investments in Private Equity and Infrastructure Equity funds, which are valued
at the proportion of the Group’s holding of the NAV reported by the investment vehicle. These are based on several
unobservable inputs including market multiples and cashflow forecasts. These are held at FVTPL, with realised and
unrealised gains/losses flowing through the P&L.
There were no significant inter-relationships between unobservable inputs that materially affect fair values.
The table below presents the movement in the period relating to financial instruments valued using a level three valuation:
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
268
31 December 2025
£m
Level Three Investments
Equity
Investments
Debt
Investments
Total
Balance as at 1 January
46.9
307.6
354.5
Gains/(losses) recognised in the Income Statement
(7.5)
19.1
11.6
Gains/(losses) recognised in Other Comprehensive Income
–
(2.5)
(2.5)
Purchases
1.0
200.8
201.8
Disposals
(1.1)
(64.4)
(65.5)
Translation differences
–
0.2
0.2
Balance as at 31 December
39.3
460.8
500.1
31 December 2024
£m
Level Three Investments
Equity
Investments
Debt
Investments
Total
Balance as at 1 January
35.5
242.7
278.2
Gains/(losses) recognised in the Income Statement
(4.5)
9.6
5.1
Gains/(losses) recognised in Other Comprehensive Income
–
(2.8)
(2.8)
Purchases
16.1
94.9
111.0
Disposals
(0.2)
(36.8)
(37.0)
Balance as at 31 December
46.9
307.6
354.5
Gains/(losses) recognised in the Income Statement are recognised within investment returns and gains/(losses) recognised
in Other Comprehensive Income is recognised within movements in fair value reserve.
6g. Cash and cash equivalents
31 December
2025
£m
31 December
2024
£m
Cash at bank and in hand1
301.1
313.6
Total cash and cash equivalents
301.1
313.6
1 Cash at bank and in hand includes £59.6 million (2024: £45.2 million) related to special purpose entities which is not available for use
by the Group.
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term deposits with
original maturities of three months or less.
An assessment has been completed for impairment purposes in line with that set out in note 6a above. Given the short-term
duration of these assets and low risk of these assets, no impairment provision has been recognised.
For cash at bank and cash deposits, the fair value approximates to the book value due to their short maturity.
6h. Other receivables
31 December
2025
£m
31 December
2024
£m
Insurance related receivables
64.1
51.1
Trade and other receivables
148.4
110.4
Prepayments and accrued income
65.2
63.7
Total other receivables
277.7
225.2
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
269
Insurance related receivables
Insurance related receivables, which are measured at historic cost, reflect amounts relating to the Group’s intermediary
activities.
Given the short-term duration of these assets no material bad debt provision has been recognised.
Trade and other receivables
Classification. Trade and other receivables are measured at amortised cost, being made up of multiple types of receivable
balances.
Impairment. Where a provision is required for these receivables, it is calculated in line with the simplified method for trade
receivables per IFRS 9, whereby lifetime ECLs are recognised irrespective of the credit risk. In this case, the provision is
based on a combination of:
1. Aged debtor analysis
2. Historic experience of write-offs for each receivable
3. Any specific indicators of credit deterioration observed, and
4. Management judgement.
The level of provision is immaterial.
The amortised cost carrying amount of receivables is a reasonable approximation of fair value.
Contract balances
The following table provides information about receivables and contract assets from contracts with customers.
Both balances are included in Trade and other receivables.
31 December
2025
£m
31 December
2024
£m
Receivables
15.5
16.7
Contract assets
13.5
14.8
The contract asset relates to work undertaken in the law companies on behalf of clients which is ongoing and where the
Company's right to consideration remains dependent on the Company's continued successful performance under the
contract. The contract asset is transferred to trade receivables once only the passage of time is required before payment
of the consideration is due, which is typically at the point of the fee being billed.
Significant changes in the contract asset balance during the period are as follows:
Contract asset balance
31 December
2025
£m
At 1 January 2024
17.0
Revenue recognised
16.7
Transferred to trade receivables
(18.5)
Write-offs
(0.4)
At 31 December 2024
14.8
Revenue recognised
23.7
Transferred to trade receivables
(24.4)
Write-offs
(0.6)
At 31 December 2025
13.5
The amount of revenue recognised in 2025 from performance obligations satisfied (or partially satisfied) in previous periods
in relation to the above contract balances is £nil (2024: £nil).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
270
6i. Financial liabilities
31 December 2025
Subordinated
loans
£m
Loan backed
securities
£m
Other
borrowings
and
derivatives
£m
Lease
liabilities
£m
Total
£m
Financial liability at the start of the period
258.9
937.7
125.6
79.6
1,401.8
Interest expense per Income Statement
21.4
52.1
(4.4)
2.1
71.2
Cashflows relating to interest1
(21.3)
(52.1)
4.4
(1.7)
(70.7)
Cashflows relating to principal - payments
–
(299.1)
(180.4)
(8.4)
(487.9)
Cashflows relating to principal - receipts
–
713.8
262.3
–
976.1
Other foreign exchange and non-cash
movements
–
0.5
0.5
2.0
3.0
Financial liability at the end of the period
259.0
1,352.9
208.0
73.6
1,893.5
31 December 2024
Subordinated
loans
£m
Loan backed
securities
£m
Other
borrowings
and
derivatives
£m
Lease
liabilities
£m
Total
£m
Financial liability at the start of the period
315.2
759.6
55.0
81.2
1,211.0
Interest expense per Income Statement
23.0
47.9
2.1
2.6
75.6
Cashflows relating to interest1
(24.2)
(47.9)
(2.1)
(2.4)
(76.6)
Cashflows relating to principal - payments
(55.1)
(194.1)
(115.0)
(12.7)
(376.9)
Cashflows relating to principal - receipts
–
372.2
177.7
–
549.9
Other foreign exchange and non-cash
movements
–
–
7.9
10.9
18.8
Financial liability at the end of the period
258.9
937.7
125.6
79.6
1,401.8
1 Cashflows relating to interest are shown within finance costs paid, including expense paid on funding for loans
Subordinated notes
Financial liabilities are inclusive of £250.0 million subordinated notes issued on 6 July 2023 at a fixed rate of 8.5% per annum
with a redemption date of 6 January 2034.
On 24 July 2024, the remaining 27.55% (£55.1 million) of subordinated loan notes issued on 25 July 2014 were repaid
on maturity.
The notes are unsecured subordinated obligations of the Group and rank pari passu without any preference among
themselves. In the event of a winding-up or bankruptcy, they are to be repaid only after the claims of all other senior
creditors have been met.
There have been no defaults on any of the notes during the year. The Group has the requirement to defer interest payments
on the notes in certain circumstances but to date none of these circumstances has arisen.
The fair value of subordinated notes (level one valuation based on quoted prices in active markets) at 31 December 2025
is £288.5 million (2024: £276.4 million).
The Group’s subordinated loan notes deed requires confirmation there is non-existence of the event of default or potential
event of default. The Group monitors compliance and there are no indicators that the default covenants will be breached
in the foreseeable future.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
271
Other borrowings
The Group holds various revolving credit facilities including a £300.0 million facility which expires in April 2028 and a
€100.0 million facility which expires in August 2027. As at 31 December 2025, £200.3 million was drawn under these
facilities (2024: £117.4 million), which is shown within other borrowings in the table above. This is made up of £175.0 million
from the sterling facility expiring April 2028 (2024: £105.0 million) and £25.3 million from the euro facility expiring August
2027 (2024: £12.4 million).
The carrying value is a reasonable approximation of fair value.
The Group's revolving credit facility agreement includes a covenant requiring that a percentage of the Group's debt does
not exceed an adjusted net assets valuation as well as confirmation of no default. The Group monitors compliance and there
are no indicators that the covenants will be breached in the foreseeable future.
Loan backed securities
The Group has securitised certain loans and advances to customers by the transfer of the loans to special purpose entities
(SPEs) controlled by the Group. Securitisation enables a subsequent issuance of debt by the SPEs to investors who gain the
security of the underlying assets as collateral.
In connection with this securitisation, the Group and the SPE have granted a fixed and floating charge over, and assigned
by way of security, substantially all of their present and future assets to a Security Trustee. The Security Trustee holds
this security for itself and as trustee for the senior lenders and other secured creditors under the facility. The charged
assets include the receivables held by the SPE, the associated cash collections, and certain related bank accounts and
contractual rights.
At 31 December 2025, receivables with a carrying amount of £1,523.5 million (2024: £1,061.8 million) were pledged
as collateral under these arrangements.
Asset backed senior loan note facilities of £1,563.0 million have been established in relation to the Admiral Money business. As at
the year end, £1,352.9 million (2024: £937.7 million) of these facilities had been utilised. During the year, an asset backed senior
loan note facility of €100.0 million has also been established in relation to the Italian loans business. As at the year end, €31.3
million (2024: €nil) of this facility had been utilised.
The carrying value is a reasonable approximation of fair value.
Lease liabilities
The Group leases various properties, with rental contracts typically for fixed periods of 5 to 25 years although these may
have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and
conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for
borrowing purposes.
For each lease, a right-of-use asset and corresponding lease liability is recognised at the date at which the leased asset
becomes available for use by the Group.
The lease liability is initially measured at the present value of remaining lease payments, which include the following:
• Fixed payments (including in-substance fixed payments), less any lease incentives receivable
• Variable lease payments that are based on an index or a rate
• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the
Group’s incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary
to obtain an asset of a similar value in a similar economic environment, with similar terms and conditions. Generally,
the Group uses its incremental borrowing rate as the discount rate.
Subsequently, lease payments are allocated to the lease liability, split between repayments of principal and interest.
A finance cost is charged to the profit and loss so as to produce a constant period rate of interest on the remaining balance
of the lease liability.
Whereby a change in lease term is identified, the lease liability is recalculated based on the present value of the remaining
lease payments.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
272
7. Loans and Advances to Customers
7a. Accounting policies
Loans and advances to customers consist of unsecured personal loans and secured loans.
Classification
Loans and advances to customers are measured at amortised cost, except for those originated for sale under the forward
flow agreement which are measured at FVTPL. This is because assets are held in order to collect contractual cashflows and
the contractual terms of the financial asset demand cash inflows which are solely payments of principal and interest on the
principal amount outstanding.
Interest income and expense
Interest income received in relation to loans and advances to customers is calculated using the effective interest method
which allocates interest, direct and incremental fees and costs over the expected lives of the assets and liabilities.
Interest expense is calculated using the effective interest rate appropriate to each source of funding.
Finance leases
Included within loans and advances to customers are personal contract purchase (PCP) and hire purchase (HP) arrangements
which are classified as finance leases under IFRS 16. A receivable equal to the net investment in the lease has been
recognised. The net investment is equal to the gross investment in the lease discounted at the rate implicit in the lease.
Lease interest income is recognised within interest income in the income statement over the term of the lease using
the effective interest rate method.
The title to the underlying vehicle remains with the Group until the lessee has made all contractual payments, at which point
ownership is transferred to the lessee. In the event of breach of contract, such as non-payment, the vehicle itself acts as
collateral for the finance lease, becoming available for repossession in most cases. When vehicles are repossessed, they are
sold at auction to release the value and settle the obligation. The difference between the net investment in the lease and
the proceeds from the sale of the vehicle is recognised immediately in profit and loss. At 31 December 2025, the carrying
amount of finance lease receivables subject to collateral arrangements was £186.8 million (2024: £18.1 million).
Some of the ways in which the Group maintains its rights to the vehicle, and thus manages the risk of loss associated with
the finance lease, include:
• The Group sets a maximum loan-to-value for the origination of financial leases, reducing the risk of shortfall on termination
of the contract
• The Group requires the lessee to insure the underlying vehicle at all times, reducing the risk of non-recovery if the asset
is stolen or destroyed
• The estimated future value of each vehicle, which is sourced externally, is considered in the pricing of the lease contracts
to provide protection against deterioration in that value.
Secured homeowner loans
Included within loans and advances to customers are second-charge mortgages, secured by a second-ranking charge over
residential property. These assets are classified as financial assets at amortised cost under IFRS 9.
Second-charge mortgages are recognised when funds are advanced, initially measured at fair value plus directly
attributable transaction costs.
Interest income is recognised within interest income in the income statement over the term of the lease using effective
interest rate method.
Loans are secured by a second-ranking charge against residential property. External appraisals of security collateral are
obtained at origination and reviewed periodically to mitigate credit risk.
Upon borrower default, the property collateral for both first and second charges may be repossessed. Recoveries
are applied in the order of senior ranking, with any residual benefit accruing to the Group for second-charge exposure.
Based on information obtained at origination and updated through normal servicing activities, the Group expects that the
majority of the homeowner loan portfolio is supported by residential property with loan‑to‑value ratios of less than 100%,
after taking into account the first‑charge lender’s priority position.
At 31 December 2025, the carrying amount of homeowner loans subject to collateral arrangements was £219.0 million
(2024: £nil).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
273
Forward Flow Agreement
In 2025, the Group completed a sale of back book loans with a carrying value of £146.4 million to an external third party
under a forward flow agreement. This sale generated a net gain of £9.8 million, comprised of:
• origination fee income of £5.9 million which has been recognised within Other revenue and profit commission;
• a credit provision release of £4.9m due to the derecognition of the underlying loans;
• immediate recognition of £1.0m of unamortised acquisition costs.
Based on management’s assessment, the sale is consistent with the hold to collect business model as the transaction is
considered infrequent. Furthermore, as the Group transferred substantially all the risks and rewards of ownership to the third
party, the loans sale met the derecognition requirements under IFRS 9 and the loans sold have been derecognised from the
Statement of Financial Position as at 31 December 2025.
Loans sold as part of the front book sales through the forward flow agreement are considered to fall under a new business
model under IFRS 9, given they are originated with the express intention of being sold shortly thereafter to an external third
party. These assets are therefore initially recognised and subsequently measured at FVTPL. Loan sales are completed on
average twice per month, with the external third party providing prefunding to be used for the origination of loans sold under
the agreement, which removes the liquidity impact of originating these loans. £279.5 million of loans were originated under
this business model in 2025 which, due to the way in which the forward flow arrangement is structured, have been
derecognised in full and have a carrying value of £nil in the Statement of Financial Position as at 31 December 2025.
The sale of loans under this business model has generated origination fee income of £9.7 million, recognised within Other
revenue and profit commission.
The Group’s continuing involvement is limited to servicing arrangements, i.e. collecting the contractual cash flows of the
underlying loans and remitting these to the external third party. The collected cash flows are remitted by the Group at
market rate which relates solely to the servicing activity. A receivable is recognised in respect of the amounts outstanding
in relation to servicing fees. As at 31 December 2025, the outstanding receivable totals £0.1 million (2024: £nil) and is
recognised within accrued income.
The Group is entitled to receive additional consideration (‘commission’) in respect of (i) loans sold as part of the back‑book
forward flow arrangement, and (ii) loans sold to the third-party purchaser under the Group’s ongoing new business model.
This commission represents variable consideration and is contingent on the credit performance of the transferred loan
portfolios over the 24‑month period following each sale. At 31 December 2025, the Group has estimated the commission
receivable to be £1.5 million (2024: £nil), which has been recognised to the extent that it is highly probable that a significant
reversal will not occur.
7b. Loans and advances to customers
31 December
2025
£m
31 December
2024
£m
Loans and advances to customers – gross carrying amount
1,459.0
1,174.0
Loans and advances to customers – provision
(100.8)
(84.3)
Total loans and advances to customers – Admiral Money
1,358.2
1,089.7
Loans and advances to customers – gross carrying amount
274.6
18.6
Loans and advances to customers – provision
(4.1)
(1.4)
Total loans and advances to customers – Other1
270.5
17.2
Total loans and advances to customers
1,628.7
1,106.9
1 Other includes alternative loan products offered by the Group in which the lines of business are classified within the ‘Other’ segment.
Loans and advances to customers are comprised of the following:
31 December
2025
£m
31 December
2024
£m
Unsecured personal loans - Admiral Money
1,268.7
1,155.6
Secured loans2
410.0
18.4
Unsecured personal loans - Other
54.9
18.6
Total loans and advances to customers, gross
1,733.6
1,192.6
2 Secured loans include finance leases amounting to £190.3 million (2024: £18.4 million).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
274
Fair value measurement
The loans and advances are recognised at fair value at the point of origination and then subsequently on an amortised cost
basis. This carrying value is deemed a reasonable approximation of fair value, which is calculated based on estimates using
the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.
Expected credit losses – Admiral Money
The expected credit loss (ECL) model is a three-stage model based on forward looking information regarding changes in the
credit quality since origination. Credit risk is measured using a Probability of Default (PD), Exposure at Default (EAD)
and Loss Given Default (LGD) defined as follows:
• Probability of Default (PD): The likelihood of an account defaulting; calibrated through analysis of historic customer
behaviour. Where customers have already met the definition of default this is 100%. For customers that are not in default
the PD is determined through analysis of historic default data using external and internal data sources available at the
reporting date.
• Exposure at Default (EAD): The amount of balance at the time of default. For loans that are in arrears the EAD is taken
as the current balance plus any expected interest arrears. For up-to-date loans the EAD is calculated as the expected
balance 3 months prior to each period, plus 3 months of interest arrears to account for the time it takes to default
following falling into arrears.
• Loss Given Default (LGD): The amount of the asset not recovered following a borrower’s default, determined through
analysis of historic recovery performance.
The PD is applied to the EAD to calculate the expected loss excluding recoveries. The LGD is then applied to this loss to
calculate the total expected loss including recoveries. A forward-looking provision is also calculated, as set out later in this
note.
Loan assets are segmented into three stages of credit impairment:
• Stage 1 – no significant increase in credit risk of the financial asset since inception
• Stage 2 – significant increase in credit risk of the financial asset since inception
• Stage 3 – financial asset is credit impaired.
For assets in stage 1, the allowance is calculated as the ECLs from events within 12 months after the reporting date.
For assets in stages 2 and 3 the allowance is calculated as the ECL from events in the remaining lifetime of each
asset. The allowance is calculated for each loan at an individual level.
Significant increase in credit risk (SICR) (stage 2)
As explained above, stage 1 assets have an ECL allowing for losses in the next twelve months, and stage 2 or 3 assets have
an ECL allowing for losses over the remaining lifetime of the contract. An asset moves to stage 2 when its credit risk has
increased significantly since initial recognition. IFRS 9 does not prescribe a definition of significant increase in credit risk but
does include a rebuttable presumption that this does occur for loan assets which are 30 days past due (which the Group
does not rebut).
For Admiral Money loans, the Group has deemed a significant increase in credit risk to have occurred where:
• The loan is in arrears, or
• The behavioural PD at reporting date has moved outside a specified threshold from the origination PD
• The customer is identified as being one or more payments in arrears on a credit product with a third party and reported
to the credit reference agency
• The customer has hit a watchlist of high-risk statuses.
The Group maintains two probation periods:
• where a customer is up to date but previously has been 30+ days past due they will be held in stage 2 for 6 months
• where a customer is up to date but previously credit impaired (stage 3) they will be held in stage 2 for 12 months.
A range of metrics including accuracy rates, false positive rates, oscillation rates and the Mathews correlation are monitored
to ensure the SICR criteria is effective.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
275
Credit impaired (stage 3)
The Group does not rebut the presumption within IFRS 9 that default has occurred when an exposure is greater than 90
days past due, which is consistent with a customer being three or more payments in arrears. In addition, a loan is deemed
to be credit impaired where:
• There is an Individual Voluntary Arrangement (IVA) agreement confirmed or proposed, or
• Customer has started or progressed bankruptcy action, or
• An external repayment plan is in place, or
• A customer is deceased.
As at 31 December 2025, Admiral Money had 10,200 loans totalling £62.7 million that were subject to forbearance
(2024: 8,400 loans totalling £48.5 million). Of these, 10,100 loans totalling £61.3 million are included within Stage 3
(2024: 7,800 loans totalling £47.4 million). Significant categories of forbearance arrangements include Bankruptcy,
Debt Management Plans and Individual Voluntary Arrangements.
Judgements required – Post Model Adjustments (‘PMA’s)
As at 31 December 2025, the ECL allowance for Admiral Money included PMAs totaling £3.8 million (2024: £4.6 million).
Post Model Adjustments
31 December
2025
£m
31 December
2024
£m
Model performance
–
1.5
Cost of Living
–
1.3
UPL Settlement
1.0
–
Developing portfolios
1.1
–
Economic scenarios
1.7
1.8
3.8
4.6
PMAs are calculated using management judgement and analysis. The key categories of PMAs are as follows:
Model performance
As at 31 December 2024, a potential shortfall was identified in the Loss Given Default (LGD) model for customers
progressing directly through arrears to write-off. A fix was implemented in the model by 30 June 2025 to address this issue,
resulting in the full release of the associated LGD PMA.
Cost of Living
This PMA captures the risk of customers falling into a negative affordability position, whereby customers are no longer able
to meet their credit commitments due to higher expenditure driven by increased mortgage payments, when their standard
variable or fixed term rate comes to an end. A refresh of the data was conducted for 31 December 2025 which has resulted
in the full release of the PMA.
UPL Settlement
Management has identified a limitation with UPL ECL model regarding the way early settlements are treated. Currently there
is no forward-looking adjustment to the expected settlement rate, which can over or understate expected default rates
depending on the economic scenario. Typically, it is expected that settlement rates have an inverse relationship with default
rates. A PMA has been raised to account for this limitation.
Developing Portfolios
The provision for the motor finance portfolio is calculated using the UPL engine while the portfolio is immature. Management
accepts that there is a significant difference in provisioning approaches for a secured motor finance portfolio and a UPL
portfolio. To account for this, adjustments have been made to the UPL model output for the following areas:
1. Calibration of UPL PD model to motor finance outcomes.
2. The inclusion of ‘Voluntary Terminations’ as potential defaults.
3. An adjustment to LGDs based on market implied recoveries.
The net impact of applying these adjustments has been held as a PMA.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
276
Economic scenarios
The model is sensitive to the timing of forecasted peaks in, for example, unemployment rates. A PMA is held equivalent to
the peak impacts of each scenario occurring earlier in the forecast horizon, to address the risk of mistiming of the economic
impacts of each scenario leading to an understatement of the required provision. This approach has been refreshed for
31 December 2025 and is resulting in a release of £0.1 million to this PMA.
Write off policy
Loans are written off where there is no reasonable expectation of recovery. The Group considers there to be no reasonable
expectation of recovery where an extensive set of collections processes has been completed, the debt is statute barred,
the debtor cannot be traced or is deceased, or in situations involving significant financial hardship. The Group’s policy is to
write down balances to their estimated net realisable value. Write offs are actioned on a case-by-case basis taking into
account the operational position and the collections strategy.
Forward-looking information
Under IFRS 9 the provision must reflect an unbiased and probability-weighted amount that is determined by evaluating
a range of possible outcomes. The means by which the Group has determined this is to run scenario analysis.
Management judgment has been used to define the weighting and severity of the different scenarios based on available
data.
As at 31 December 2025 there are three key economic drivers of credit losses factored into the scenarios used for the
Admiral Money portfolio, as follows:
• UK Unsecured Debt to Income (‘DTI’) - the amount of unsecured borrowing held by households relative to their gross
disposable income, indicating the level of indebtedness and ability to repay,
• UK Employment Hazard Rates - probability that an individual employed at the start of a given period will exit employment
during that period,
• Annual UK GDP % Change - this is used as an indicator of overall macroeconomic conditions.
The variables are combined using a statistical model which will estimate the relative change in the probability of default (PD)
of an account for each scenario over the life of the loan. The Group utilises a model containing three drivers in recognition
of the fact that there are multiple macroeconomic drivers which can influence the direction of default rates.
The scenario weighting assumptions used by Admiral Money are detailed below, along with the annual peak for each
economic driver assumed in each scenario at 31 December 2025.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
277
At 31 December 2025
For the Forecast Year Ended
2026
2027
2028
2029
2030
%
%
%
%
%
Base - 50%
Gross domestic product
1.6
1.6
1.6
1.6
1.7
Unemployment rate
5.2
5.1
4.7
4.4
4.3
UK Household Unsecured Debt to Income
12.6
13.3
13.9
14.2
14.5
Upside - 5%
Gross domestic product
2.5
2.5
1.8
1.9
1.9
Unemployment rate
4.8
4.1
4.1
4.1
4.1
UK Household Unsecured Debt to Income
12.2
11.9
12.0
12.2
12.4
Downside - 30%
Gross domestic product
0.3
0.9
2.4
2.4
2.3
Unemployment rate
6.0
6.2
5.9
5.3
5.0
UK Household Unsecured Debt to Income
13.1
14.0
14.6
15.0
15.2
Severe - 15%
Gross domestic product
0.1
(0.6)
2.1
2.2
2.7
Unemployment rate
6.9
8.0
8.0
7.5
6.5
UK Household Unsecured Debt to Income
13.5
14.9
15.7
16.1
16.2
Probability-weighted
Gross domestic product
1.0
1.1
1.9
1.9
2.0
Unemployment rate
5.7
5.8
5.5
5.1
4.8
UK Household Unsecured Debt to Income
12.9
13.7
14.3
14.6
14.8
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
278
For the Forecast Year Ended
At 31 December 2024
2025
2026
2027
2028
2029
%
%
%
%
%
Base - 50%
Gross domestic product
1.6
1.6
1.6
1.7
1.7
Unemployment rate
4.4
4.3
4.1
4.1
4.1
UK Household Unsecured Debt to Income
13.2
13.7
14.1
14.4
14.5
Upside - 10%
Gross domestic product
2.7
3.0
1.8
1.6
1.8
Unemployment rate
4.2
3.8
3.8
3.8
3.8
UK Household Unsecured Debt to Income
12.6
12.3
11.9
12.2
12.3
Downside - 30%
Gross domestic product
0.9
0.1
3.0
3.0
2.7
Unemployment rate
5.6
6.0
5.6
4.9
4.6
UK Household Unsecured Debt to Income
13.4
14.5
15.0
15.1
15.1
Severe - 10%
Gross domestic product
0.8
(1.1)
2.6
3.4
3.1
Unemployment rate
6.6
8.0
7.9
6.8
6.1
UK Household Unsecured Debt to Income
13.6
15.0
15.7
15.9
16.1
Probability-weighted
Gross domestic product
1.4
1.0
2.1
2.3
2.1
Unemployment rate
5.0
5.1
4.9
4.6
4.4
UK Household Unsecured Debt to Income
13.2
13.9
14.3
14.5
14.6
The economic scenarios and forecasts have been updated in conjunction with a third party economics provider.
The probability weightings reflect the view that there is a probability of 45% attached to recessionary outcomes.
Sensitivities to key areas of estimation uncertainty
The key areas of estimation uncertainty identified for Admiral Money loan book, as per note 2 to the financial statements,
are in the PD and the forward-looking scenarios. The following balances exclude EIR assets of £17.0 million (31 December
2024: £5.5 million).During the year, the Group has enhanced the following disclosures by presenting additional information
around the gross exposures and ECL for each stage, under each scenario. This change enables more detailed analysis
of the impact of changes in forward looking information. Prior year comparatives have been represented to enable better
comparison of balances year on year.
Scenarios
31 December 2025
Weighted
Base
Downturn
Severe
Upturn
Stage 1 gross exposure (£m)
1,257.2
1,263.5
1,248.8
1,223.1
1,264.4
Stage 1 ECL (£m)
(18.7)
(17.7)
(19.3)
(19.2)
(17.3)
Stage 1 coverage (%)
1.5
1.4
1.5
1.6
1.4
Stage 2 gross exposure (£m)
110.1
103.8
118.5
144.2
102.9
Stage 2 ECL (£m)
(18.2)
(16.6)
(20.1)
(25.5)
(15.4)
Stage 2 coverage (%)
16.5
16.0
17.0
17.7
15.0
Stage 3 gross exposure (£m)
74.7
74.7
74.7
74.7
74.7
Stage 3 ECL (£m)
(58.8)
(58.8)
(58.8)
(58.8)
(58.8)
Stage 3 coverage (%)
78.7
78.7
78.7
78.7
78.7
Total gross exposure (£m)
1,442.0
1,442.0
1,442.0
1,442.0
1,442.0
Total ECL (£m)1
(95.7)
(93.1)
(98.2)
(103.5)
(91.5)
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
279
Scenarios
31 December 2024
Weighted
Base
Downturn
Severe
Upturn
Stage 1 gross exposure (£m)
1,006.9
1,011.2
997.2
982.1
1,012.8
Stage 1 ECL (£m)
(15.0)
(14.5)
(15.3)
(15.1)
(14.1)
Stage 1 coverage (%)
1.5
1.4
1.5
1.5
1.4
Stage 2 gross exposure (£m)
97.6
93.3
107.3
122.4
91.7
Stage 2 ECL (£m)
(17.3)
(16.0)
(19.7)
(23.4)
(14.9)
Stage 2 coverage (%)
17.7
17.1
18.4
19.1
16.2
Stage 3 gross exposure (£m)
64.0
64.0
64.0
64.0
64.0
Stage 3 ECL (£m)
(46.9)
(46.9)
(46.9)
(46.9)
(46.9)
Stage 3 coverage (%)
73.3
73.3
73.3
73.3
73.3
Total gross exposure (£m)
1,168.5
1,168.5
1,168.5
1,168.5
1,168.5
Total ECL (£m)1
(79.2)
(77.4)
(81.9)
(85.4)
(75.9)
1 Weighted ECL excludes PMAs of £3.8 million (2024: £4.6 million) and other loss allowance of £1.3 million (2024: £0.5 million) that are not
allocated to stages.
The above tables show the gross exposure, ECL and coverage for each stage of the loan book based on the weighted
position the provision is based on. Additionally, the tables demonstrate the same metrics of the base case, downturn, upturn
or severe scenarios unfolded. At 31 December 2025 the implied weighted peak unemployment rate is 5.8%: the table shows
that in a downturn scenario with a 6.2% peak unemployment rate the provision would increase by £2.5 million, whilst the
upturn would reduce the provision by £4.2 million, base case reduce by £2.6 million and severe increase the provision
by £7.8 million.
Stage 1 assets represent 87.3% of the total loan assets; 0.1% increase in the stage 1 PD, i.e. from 2.4% to 2.5% would result
in a £0.8 million increase in ECL.
Amounts arising from ECL: loans and advances to customers
The following table sets out information about the credit quality of the loans and advances to customers measured at
amortised cost. During the year, the Group has enhanced the following disclosures by presenting probability of default
bandings rather than credit grades. This change aligns the reported information with methodology used in the measurement
of ECLs and provides more granular and up to date information. Prior year comparatives have been represented to enable
better comparison of balances year on year.
The Group does not have any purchased or originated credit impaired assets. These tables are inclusive of the finance lease
assets which are held by the Group. Further analysis of these balances can be found in note 7c.
All probability of default figures included in this paragraph allow for forward-looking information, i.e. the PDs are a weighted
average from the economic scenarios considered and relate to the Admiral Money consumer lending business. The average
probability of default for stage 1 assets is 2.4% (2024: 3.3%) reflecting the expectation of defaults within 12 months of the
reporting date. The average PD for assets in stage 2 is 32.9% (2024: 29.9%) reflecting expected losses over the remaining
life of the assets. The PD for assets in stage 3 is 100% (2024: 100%) as these assets are deemed to have defaulted.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
280
Gross carrying amount
ECL2
Coverage
PD range
%
Stage 1
£m
Stage 2
£m
Stage 3
£m
Total
£m
Stage 1
£m
Stage 2
£m
Stage 3
£m
Total
£m
Total
%
Band 1
0 to
0.250
63.2
0.2
–
63.4
0.1
–
–
0.1
0.2
Band 2
0.251 to
0.500
54.1
0.2
–
54.3
0.1
–
–
0.1
0.2
Band 3
0.501 to
1.500
437.1
2.7
–
439.8
2.4
–
–
2.4
0.5
Band 4
1.501 to
5.000
566.4
23.7
–
590.1
9.1
1.1
–
10.2
1.7
Band 5
5.01 to
20.000
151.6
58.7
–
210.3
6.9
8.2
–
15.1
7.2
Band 6
20.001
to
99.999
0.6
25.6
–
26.2
0.1
8.9
–
9.0
34.4
Band 7
100
–
–
74.9
74.9
–
–
58.8
58.8
78.5
Total Admiral
Money
1,273.0
111.1
74.9
1,459.0
18.7
18.2
58.8
95.7
6.6
Total Other
268.3
4.4
1.9
274.6
2.1
0.4
1.6
4.1
1.5
As at 31
December
2025
1,541.3
115.5
76.8
1,733.6
20.8
18.6
60.4
99.8
5.8
Gross carrying amount
ECL2
PD range
%
Stage 1
% OT1
Stage 2
% OT
Stage 3
% OT
Total
% OT
Stage 1
% OT
Stage 2
% OT
Stage 3
% OT
Total
% OT
Band 1
0 to 0.250
4.2
0.2
–
3.7
0.4
–
–
0.1
Band 2
0.251 to
0.500
3.5
0.2
–
3.1
0.6
–
–
0.1
Band 3
0.501 to
1.500
28.4
2.3
–
25.4
11.6
0.2
–
2.4
Band 4
1.501 to
5.000
36.7
20.5
–
34.0
43.6
5.8
–
10.2
Band 5
5.01 to
20.000
9.8
50.8
–
12.1
33.3
44.1
–
15.1
Band 6
20.001 to
99.999
–
22.1
–
1.5
0.4
47.7
–
9.0
Band 7
100
–
–
97.5
4.3
–
–
97.4
58.9
Total Admiral
Money
82.6
96.2
97.5
84.2
89.9
97.8
97.4
95.9
Total Other
17.4
3.8
2.5
15.8
10.1
2.2
2.6
4.1
As at 31
December
2025
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1 %OT (Percentage of Total) represents the proportion that each PD band contributes to the total gross carrying amount or ECLs within
each credit-impairment stage and in total. Percentages are calculated separately for balances and ECL and therefore sum to 100% within
each stage.
2 Excludes PMAs of £3.8 million ( 2024: 4.6 million) and other loss allowance of £1.3 million (2024: £0.5 million)
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
281
Gross carrying amount
ECL
Coverage
PD range
%
Stage 1
£m
Stage 2
£m
Stage 3
£m
Total
£m
Stage 1
£m
Stage 2
£m
Stage 3
£m
Total
£m
Total
%
Band 1
0 to
0.250
35.8
0.3
–
36.1
0.1
–
–
0.1
0.3
Band 2
0.251 to
0.500
29.5
0.1
–
29.6
0.1
–
–
0.1
0.3
Band 3
0.501 to
1.500
375.5
3.0
–
378.5
2.2
0.1
–
2.3
0.6
Band 4
1.501 to
5.000
457.2
19.8
–
477.0
7.4
1.0
–
8.4
1.8
Band 5
5.01 to
20.000
113.2
51.3
0.0
164.5
5.1
7.6
0.0
12.7
7.7
Band 6
20.001 to
99.999
0.4
23.5
0.0
23.9
0.1
8.6
0.0
8.7
36.4
Band 7
–
–
0.0
64.4
64.4
0.0
0.0
46.9
46.9
72.8
Total
Admiral
Money
1011.6
98.0
64.4
1174.0
15.0
17.3
46.9
79.2
6.7
Total
Other
17.7
0.3
0.6
18.6
1.1
–
0.3
1.4
7.5
As at 31
December
2024
1029.3
98.3
65.0
1192.6
16.1
17.3
47.2
80.6
6.8
Gross carrying amount
ECL
PD range
%
Stage 1
% OT
Stage 2
% OT
Stage 3
% OT
Total
% OT
Stage 1
% OT
Stage 2
% OT
Stage 3
% OT
Total
% OT
Band 1
0 to 0.250
3.5
0.3
–
3.0
0.6
–
–
0.1
Band 2
0.251 to
0.500
2.9
0.1
–
2.5
0.6
–
–
0.1
Band 3
0.501 to
1.500
36.5
3.1
–
31.7
13.7
0.6
–
2.9
Band 4
1.501 to
5.000
44.4
20.1
–
40.0
46.0
5.8
–
10.4
Band 5
5.01 to
20.000
11.0
52.2
–
13.8
31.7
43.9
–
15.8
Band 6
20.001 to
99.999
–
23.9
–
2.0
0.6
49.7
–
10.8
Band 7
–
–
–
99.1
5.4
–
–
99.4
58.2
Total Admiral
Money
98.3
99.7
99.1
98.4
93.2
100.0
99.4
98.3
Total Other
1.7
0.3
0.9
1.6
6.8
–
0.6
1.7
As at 31
December
2024
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
282
The following tables reconcile the opening and closing gross carrying amount and ECL allowance. Loans originated in the
year are initially classified as Stage 1. In the following tables, the loans are presented in line with their staging as at each
year end. During the year, the Group has enhanced the following disclosures by presenting gross balances and ECL within
one table, with this information being presented separately in the previous year. The net movement relating to the
remeasurement of ECL and to the movement in PMA’s is now also presented separately within the tables to assist with
understanding of the movements in the ECL provision. Prior year comparatives have been represented to enable better
comparison of balances year on year.
Performing assets
Subject to 12-Month ECL
Stage 1
Underperforming assets
Subject to lifetime ECL
Stage 2
Non-performing assets
Subject to lifetime ECL
Stage 3
Total
2025
Balance
(£m)
ECL
(£m)
Balance
(£m)
ECL
(£m)
Balance
(£m)
ECL
(£m)
Balance
(£m)
ECL
(£m)1
As at 1 January 2025
1,029.3
(16.7)
98.3
(19.8)
65.0
(48.7)
1,192.6
(85.2)
Stage transfers
Transfers from stage 1
to stage 2
(57.1)
1.3
57.1
(1.3)
–
–
–
–
Transfers from stage 2
to stage 1
29.4
(3.4)
(29.4)
3.4
–
–
–
–
To stage 3
(21.9)
0.5
(13.1)
4.1
35.0
(4.6)
–
–
From stage 3
0.3
(0.2)
1.4
(1.1)
(1.7)
1.3
–
–
Net remeasurement of
ECL
–
1.4
–
(2.5)
–
(1.8)
–
(2.9)
Net movement
(49.3)
(0.4)
16.0
2.6
33.3
(5.1)
–
(2.9)
Net assets originated
in period
1,354.7
(13.7)
52.8
(8.6)
9.0
(6.9)
1,416.5
(29.2)
Forward flow of
new assets
(279.3)
–
(0.1)
–
(0.1)
–
(279.5)
–
Net new assets
1,075.4
(13.7)
52.7
(8.6)
8.9
(6.9)
1,137.0
(29.2)
Repayments and
change in risk
parameters
(394.4)
7.1
(40.9)
2.6
(13.5)
(17.7)
(448.8)
(8.0)
Forward flow –
back book sale
(134.3)
2.3
(11.3)
2.2
(0.8)
0.5
(146.4)
5.0
Net write-offs
–
–
0.1
–
(16.0)
16.2
(15.9)
16.2
Net movements in PMAs
–
(1.0)
–
–
–
1.7
–
0.7
EIR adjustment
12.8
–
0.5
–
0.1
–
13.4
–
Foreign exchange
differences
1.8
–
0.1
–
(0.2)
(0.2)
1.7
(0.2)
Total other movements
(514.1)
8.4
(51.5)
4.8
(30.4)
0.5
(596.0)
13.7
As at 31 December
2025
1,541.3
(22.4)
115.5
(21.0)
76.8
(60.2)
1,733.6
(103.6)
Net carrying amount
–
1,518.9
–
94.5
–
16.6
–
1,630.0
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
283
Performing assets
Subject to 12-Month ECL
Stage 1
Underperforming assets
Subject to lifetime ECL
Stage 2
Non-performing assets
Subject to lifetime ECL
Stage 3
Total
2024
Balance
(£m)
ECL
(£m)
Balance
(£m)
ECL
(£m)
Balance
(£m)
ECL
(£m)
Balance
(£m)
ECL
(£m)1
As at 1 January 2024
779.6
(12.7)
126.0
(29.3)
55.6
(39.3)
961.2
(81.3)
Stage transfers
Transfers from stage 1
to stage 2
(50.1)
1.5
50.1
(1.5)
–
–
–
–
Transfers from stage 2
to stage 1
45.4
(8.2)
(45.4)
8.2
–
–
–
–
To stage 3
(20.7)
0.7
(17.5)
7.9
38.2
(8.6)
–
–
From stage 3
0.3
(0.1)
1.2
(0.7)
(1.5)
0.8
–
–
Net remeasurement of
ECL
–
3.6
–
(2.6)
–
0.2
–
1.2
Net movement
(25.1)
(2.5)
(11.6)
11.3
36.7
(7.6)
–
1.2
Net assets originated in
period
629.6
(9.9)
34.0
(6.3)
5.1
(3.7)
668.7
(19.9)
Forward flow of
new assets
–
–
–
–
–
–
–
–
Net new assets
629.6
(9.9)
34.0
(6.3)
5.1
(3.7)
668.7
(19.9)
Repayments and
change in risk
parameters
(355.9)
6.2
(49.9)
–
(7.0)
(22.7)
(412.8)
(16.5)
Forward flow –
back book sale
–
–
–
–
–
–
–
–
Net write-offs
–
–
–
–
(25.4)
26.1
(25.4)
26.1
Net movements in
PMAs
–
1.9
–
4.2
–
(1.5)
–
4.6
EIR adjustment
1.1
–
(0.2)
–
–
–
0.9
–
Total other movements
(354.8)
8.1
(50.1)
4.2
(32.4)
1.9
(437.3)
14.2
As at 31 December
2024
1,029.3
(17.0)
98.3
(20.1)
65.0
(48.7)
1,192.6
(85.8)
Net carrying amount
–
1,012.3
–
78.2
–
16.3
–
1,106.8
1 Excludes other loss allowance of £1.3 million (2024: £0.5 million)
Of the amounts written off during the year, £11.9 million related to loans which were still subject to enforcement activity
(2024: £13.6 million). The loss allowance in place in relation to these loans at the time of writing off totalled £11.9 million
(2024: £13.6 million).
The EIR adjustment represents incremental acquisition costs incurred when advancing loans. These costs are spread over
the expected economic lives of the loans under the effective interest rate method.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
284
The following table sets out the Stage 2 credit-impaired assets for Admiral Money unsecured personal loans and secured
loans, analysed by the primary reasons for their classification within stage 2.
31 December 2025
PD
movement
Forbearance
support
provided
Probationary
period
Other
qualitative
reasons
Backstop
Total
Gross carrying amount (£m)
67.9
1.1
5.0
25.2
13.6
112.8
ECL (£m)
12.0
0.5
0.7
2.5
5.1
20.8
Coverage (%)
17.7
45.5
14.0
9.9
37.5
18.4
31 December 2024
PD
movement
Forbearance
support
provided
Probationary
period
Other
qualitative
reasons
Backstop
Total
Gross carrying amount (£m)
61.2
2.4
4.4
18.8
11.2
98.0
ECL (£m)
11.4
1.2
0.6
1.8
4.8
19.8
Coverage (%)
18.6
50.0
13.6
9.6
42.9
20.2
7c. Finance lease receivables
Loans and advances to customers include the following finance leases. The Group is the lessor for leases of cars. During the
year, the Group has enhanced the following disclosures by presenting the maturity profile split by year, rather than grouping
years. Prior year comparatives have been represented to enable better comparison of balances year on year.
31 December
2025
£m
31 December
2024
£m
Gross investment in finance leases, receivable
Less than 1 year
48.9
7.8
One to two years
46.7
5.8
Two to three years
46.0
3.5
Three to four years
55.1
2.4
Four to five years
22.6
1.7
More than 5 years
7.1
–
Total gross finance lease receivables
226.4
21.2
Less: unearned finance income
(36.1)
(2.8)
Net investment in lease receivables
190.3
18.4
Less: allowance for expected credit losses
(3.4)
(0.3)
186.9
18.1
Net investment in finance leases, receivable
Less than 1 year
37.1
6.4
One to two years
36.7
5.1
Two to three years
38.1
3.2
Three to four years
50.4
2.2
Four to five years
21.4
1.5
More than 5 years
6.6
–
190.3
18.4
The net investment in finance leases shown above is net of the unguaranteed residual value of £0.7 million
(2024: £0.2 million).
The Group’s net investment in finance leases changed during the year, primarily due to new finance leases disbursed
and interest accruing on the Group’s loan book, offset by the collection of lease payments which reduce the receivable.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
285
7d. Interest income
31 December
2025
£m
31 December
2024
£m
From loans and advances to customers
135.9
107.9
Finance income on the net investment in finance leases
7.2
1.2
From bank interest
4.2
4.4
147.3
113.5
Interest income receivable is recognised in the income statement using the effective interest method, which calculates
the amortised cost of the financial asset and allocates the interest income over the expected product life.
7e. Interest expense
31 December
2025
£m
31 December
2024
£m
Interest payable on loan backed securities
47.9
32.0
Interest payable on other credit facilities
10.4
5.2
Total interest expense1
58.3
37.2
1 Interest paid in total net of swaps during the year was £55.7 million (2024: £42.7 million).
8. Other revenue and co-insurer profit commission
8a. Accounting policies
(i) Composition of Other revenue and co-insurer profit commission
Other revenue falling within the scope of IFRS 15 Revenue from Contracts with Customers is generated from:
• Fee and commission revenue related to the sale of insurance contracts (see note 5).
Where additional fee and commission revenue is generated from the sale of insurance contracts, but that revenue is
separable from the host insurance contract in accordance with the principles of IFRS 17, and the goods or services provided
to the policyholder are distinct, the revenue is recognised applying IFRS 15.
• Revenue from the Group’s law firm
• Servicing fee income.
Other revenue also includes instalment income on insurance premium paid via instalments, where it is not recognised under
IFRS 17 (see note 5) due to the income being separable from the host insurance contract. This instalment income is
recognised over time in line with the provision of the service.
Co-insurer profit commission revenue falling within the scope of IFRS 15 Revenue from Contracts with Customers relates
primarily to a contractual arrangement between the Group’s insurance intermediary EUI Limited, and an external co-insurer
(Great Lakes, a subsidiary of Munich Re) which underwrites a share of the UK Car Insurance business generated by EUI
Limited.
Gain on de-recognition of assets relates to origination fee income recognised on sale of Admiral Money loan balances under
the forward flow agreement. The loans sold under the arrangement are derecognised from the balance sheet because
substantially all risks and rewards are transferred. The difference between the carrying amount of the loans and the
consideration received in the form of premium is recognised as a gain on derecognition of financial assets. This falls under
the scope of IFRS 9 Financial Instruments.
(ii) Nature of goods and services
The following is a description of the principal activities within the scope of IFRS 15 from which the Group generates
its other revenue.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
286
Products and services
Nature, timing of satisfaction of performance obligations and significant payment terms
Fee and commission
revenue, including
instalment income
and administration
fees: where the
income is separable
from the underlying
insurance contract
The performance obligation is the provision of insurance intermediary services, being a successful
sale of ancillary product at which point the performance obligation is met, and in the case
of instalment income, the provision of credit. Revenue for intermediary services is therefore
recognised at a point in time, whilst revenue for the provision of credit is recognised over time,
matching the Group’s provision of services. Where the Group has no remaining obligations, the
revenue is recognised immediately. An allowance is made for expected cancellations where the
customer may be entitled to a refund of amounts charged.
Payment from revenue generated from policyholders is due immediately, or in line with direct debit
instalments. Payments from external parties is due within 30 days of the period close.
Revenue from
law firm
The performance obligation is the pursuit of the compensation from the at fault party’s insurer
on behalf of the customer. Once the case is settled the performance obligation is fully satisfied.
Revenue is therefore recognised over time using the expected value method. This method values
revenue by multiplying hours incurred on open cases by a 12-month realisable rate. The realisable
rate is a probability weighted transaction price based on closed cases. The expected value method
therefore results in revenue recognised being constrained to that where there is a high probability
of no significant reversal.
Revenue is recognised over time because the Group has an enforceable right to payment
for performance completed to date and the work performed to date has no alternative use
to the Group.
A contract asset is recognised equal to the work performed up to the balance sheet date.
Refer to note 6h for further detail of this balance. Deferred revenue is recognised when payment
has been received in advance of work completed.
Payment is due within 28 days of invoice.
Servicing fee
income
The performance obligation is servicing of the loans transferred under the forward flow
arrangement, in exchange for a fee based on the balance of loans being serviced. Revenue is
recognised on a straight-line basis over the servicing period, as the services are provided evenly
over time and the benefits are simultaneously received and consumed by the other party.
Profit commission
from co-insurers
Profit commission is generated if an individual year is profitable, based on the premiums written
and expenses and claims costs incurred. Given that the ultimate outcome of the claims cost is
uncertain for a period of time until final settlement, profit commission is therefore variable.
The cumulative profit commission recognised at each point in time is calculated in aggregate
across the contract, in line with contract terms, based on a number of detailed inputs for each
individual underwriting year, the most material of which are as follows:
• Premiums, defined as gross premiums ceded including any instalment income, less reinsurance
premium (for excess of loss reinsurance).
• Insurance expenses incurred.
• Claims costs incurred.
Whilst the premiums and insurance expenses related to an underwriting year are typically fixed
at the conclusion of each underwriting year and are not subject to judgement, the claims cost
is subject to inherent uncertainty. This results in the co-insurer profit commission recognised under
IFRS 15 being a variable amount.
As such:
• The Group uses the expected value method for the initial calculation of profit commission
revenue, based on known premiums and expenses, and the best estimate of claims costs.
• The variable revenue estimated using the expected value method above is constrained through
the inclusion of the risk adjustment within the claims cost element of the calculation, with the
profit commission recognised aligned to the IFRS 17 booked loss ratios, discounted at locked-in
rates, and inclusive of finance expense. The inclusion of the risk adjustment constrains the
cumulative profit commission revenue recognised to a level where there is a high probability
of no significant reversal.
The key methods, inputs and assumptions used to estimate the variable consideration of profit
commission are therefore in line with those used for the calculation of claims liabilities, as set out
in note 3 to the financial statements, with further detail also included in note 5. There are no further
critical accounting estimates or judgements in relation to the recognition of profit commission.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
287
Profit commission from reinsurers is within the scope of IFRS 17, and not within the scope of IFRS 15 Revenue from
Contracts with Customers due to the nature of the income.
Under IFRS 17 a significant proportion of “Other revenue” is recognised as insurance revenue given that it is not separable
from the underlying insurance contract.
8b. Disaggregation of revenue
In the following tables, other revenue is disaggregated by major products/service lines and timing of revenue recognition.
The total revenue disclosed in the table of £233.5 million (2024: £189.6 million) represents total other revenue and
co-insurer profit commission and is disaggregated into the segments included in note 4.
31 December 2025
Continuing operations
UK Insurance
£m
European
Insurance
£m
Admiral
Money
£m
Other
£m
Total Group
£m
Major products/service line
Fee and commission revenue
109.5
0.1
0.3
1.0
110.9
Revenue from law firm
22.7
–
–
–
22.7
Gain on de-recognition of assets
–
–
17.1
–
17.1
Servicing fee income
–
–
1.1
–
1.1
Other
5.8
–
1.0
0.4
7.2
Total other revenue
138.0
0.1
19.5
1.4
159.0
Profit commission from co-insurers
74.5
–
–
–
74.5
Total other revenue and co-insurer profit
commission
212.5
0.1
19.5
1.4
233.5
Timing of revenue recognition
Point in time
151.7
0.1
0.3
1.0
153.1
Over time
55.0
–
1.1
–
56.1
Revenue outside the scope of IFRS 15
5.8
–
18.1
0.4
24.3
212.5
0.1
19.5
1.4
233.5
31 December 2024
Continuing operations
UK Insurance
£m
European
Insurance
£m
Admiral
Money
£m
Other
£m
Total Group
£m
Major products/service line
Fee and commission revenue
119.5
0.1
0.2
0.2
120.0
Revenue from law firm
16.3
–
–
–
16.3
Comparison income
–
–
–
–
–
Total other revenue
135.8
0.1
0.2
0.2
136.3
Profit commission from co-insurers
53.3
–
–
–
53.3
Total other revenue and co-insurer profit
commission
189.1
0.1
0.2
0.2
189.6
Timing of revenue recognition
Point in time
139.0
0.1
0.2
0.2
139.5
Over time
50.1
–
–
–
50.1
189.1
0.1
0.2
0.2
189.6
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
288
Profit commission analysis
31 December
2025
£m
31 December
2024
£m
Underwriting year
2021 & prior
8.7
51.7
2022
–
–
2023
–
–
2024
65.8
1.6
2025
–
–
Total UK Motor profit commission
74.5
53.3
9. Directly attributable and other expenses
9a. Accounting policies
(i) Directly attributable insurance expenses
Directly attributable expenses are cashflows that are directly attributable to a portfolio of insurance contracts and
recognised as incurred insurance service expenses. See note 5a for details of the types of expenses recognised as directly
attributable insurance expenses.
(ii) Other operating expenses
All other operating expenses are charged to the Income Statement in the period that they are incurred.
(iii) Employee benefits
The key elements of employee remuneration are:
• Base salaries and pension contributions
• Share-based incentive plans
• A discretionary bonus, (the ‘DFSS Bonus’), rather than an annual cash bonus, that is based on the number of DFSS awards
held and actual dividends paid out to shareholders.
Within note 9b, the charges for base salaries and pension contributions (and the related social security costs) are
recognised within Administration and acquisition expenses, Expenses relating to additional products and fees and Other
expenses based on the role of the employee.
Charges for the share-based incentive plans (and related social security costs) and discretionary bonus are included within
share scheme charges. These charges are not shown as part of the result for each reportable segment, or within the
expense ratio, due to them being materially comprised of an accounting charge in line with IFRS 2 Share-based payments
which does not result in a cash payment to employees but instead results in an issue of new shares (resulting in a dilution of
existing shares).
The rules of the share schemes ensure that the actual dilution level does not exceed 10% in any rolling ten-year period.
Base salaries and pension contributions
Base salaries and the related employer social security costs are charged to the Income Statement in the period that they
are incurred.
The Group contributes to defined contribution personal pension plans for its employees. The contributions payable to these
schemes are charged in the accounting period to which they relate.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
289
Share-based incentive plans and related social security costs
The Group operates a number of equity and cash-settled compensation schemes for its employees, the main ones being:
• A Share Incentive Plan (‘SIP’), which is in place for all UK employees encouraging wide share ownership across employees;
and
• The Discretionary Free Share Scheme (‘DFSS’). DFSS shares are typically awarded to managers, and for the majority of
employees, 50% of DFSS shares awarded are subject to financial and non-financial performance conditions. The financial
performance conditions are Earnings per Share growth, Return on Equity and Total Shareholder Return vs. the FTSE 350
(excluding investment companies) over a three-year period. The non-financial performance conditions include measures
for Group net promoter scores, diversity and inclusion. The other 50% of DFSS shares awarded are guaranteed with
continued employment.
For both schemes, employees must remain in employment three years after the award date (i.e. at the vesting date),
otherwise the shares are forfeited.
The majority of these schemes are classed as equity settled under IFRS 2, due to the employees receiving shares
(rather than cash) as consideration for the services provided.
For equity-settled schemes, the charge which represents the fair value of the employee services received and to which is
measured by reference to the fair value of the shares granted, is recognised as an expense, with a corresponding increase
in equity, as shown in Consolidated Statement of Changes in Equity (2025: £75.0 million; 2024: £67.8 million).
For the cash-settled schemes, the expense recognised for the fair value of services received results in a corresponding
increase in liabilities.
The key drivers and assumptions used to calculate the charge for the schemes over the three-year vesting period are:
• The number of shares awarded, which is set at the start of each scheme. Details of the number of shares awarded for
each scheme where shares remain unvested is set out in note 9f(iii)
• The fair value of the shares:
– For the SIP, the fair value of the shares awarded is the share price at the award date. Awards under the SIP are entitled
to receive dividends, and hence no adjustment is made to this fair value
– For the DFSS equity settled awards, awards are not eligible for dividends, although a discretionary bonus is currently
paid equivalent to the dividend that would have been paid on the shareholding, hence the fair value of the shares is
revised downwards to take account of these expected dividends
– For the DFSS cash settled awards, the fair value is based on the share price at the vesting date. The closing share price
at the end of each reporting period is used as an approximation for the closing price at the end of the vesting period.
• Employee attrition rates, which impact the ultimate number of shares that vest.
• In the case of the DFSS, the vesting rates based on the performance conditions, which also impact the ultimate number
of shares that vest.
The number of shares that have ultimately vested compared to those originally awarded is set out in note 9f(iv).
At each balance sheet date, the Group revises its assumptions on the number of shares which will ultimately vest based on
the latest forecast information for attrition rates and, for the DFSS, the extent to which the performance conditions are met.
The financial impact as a result of any change in the assumptions is recognised through the Income Statement.
Any significant changes in assumptions may therefore result in an increased / decreased charge in an accounting period
as a result of this true-up of the expected cumulative charge required.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
290
Social security costs on share-based incentive plans
Social security costs are incurred by the Group in respect of the share-based incentive plans, with the expense recognised
over the vesting period for each share scheme. For the SIP, these costs are paid when the employees sell the shares after
vesting (typically three to five years after the grant date). For the DFSS, the costs are paid immediately upon vesting.
The total social security costs are calculated based on the following:
• The taxable value of the shares, being:
– For the SIP, the lower of the share price at award date and the share price at the balance sheet date
– For the DFSS, the share price at the balance sheet date
• The number of shares expected to vest for each scheme, driven by the number of shares awarded, attrition rates and,
for the DFSS, the vesting rate based on performance conditions
• The appropriate social security rate.
These assumptions are updated at the end of each reporting period. The financial impact as a result of any change in the
assumptions is recognised through the Income Statement. Any significant changes in assumptions may therefore result in an
increased / decreased charge in an accounting period as a result of this true-up of the expected cumulative charge required.
Discretionary bonus on shares allocated but unvested
The cost of the DFSS bonus is recognised and paid in each period equivalent to the dividends on shares allocated to
employees that are still entitled to vest but have not yet vested. The cost shown also includes the social security costs
on the discretionary bonus. No accrual is made for future discretionary bonus payments due to there being no contractual
obligation for such a bonus at the balance sheet date.
9b. Operating expenses and share scheme charges
31 December 2025
Continuing operations
Directly
attributable
expenses
£m
Other
operating
expenses
£m
Total
expenses
£m
Administration and acquisition expenses
1,007.5
123.4
1,130.9
Expenses relating to additional products and fees
–
48.7
48.7
Share scheme expenses
75.9
36.9
112.8
Loan expenses (excluding movement on ECL provision)
–
38.4
38.4
Movement in expected credit loss provision
–
29.8
29.8
Other1
–
74.1
74.1
Total
1,083.4
351.3
1,434.7
31 December 2024
Continuing operations
Directly
attributable
expenses
£m
Other
operating
expenses
£m
Total
expenses
£m
Administration and acquisition expenses
947.4
121.3
1,068.7
Expenses relating to additional products and fees
–
46.2
46.2
Share scheme expenses
56.1
35.3
91.4
Loan expenses (excluding movement on ECL provision)
–
29.9
29.9
Movement in expected credit loss provision
–
34.6
34.6
Profit on disposal of Insurify share option
–
(12.5)
(12.5)
Other1
–
73.3
73.3
Total
1,003.5
328.1
1,331.6
1 Other includes centralised costs primarily for employees and projects (2025: £ 56.0 million; 2024: £ 49.9 million), business development
costs, including expenses relating to new loan ventures (2025: £20.1 million, 2024: £19.9 million) and other costs (2025: £ 0.7 million;
2024: £3.5 million), offset by deferred consideration income (2025: £2.7 million, 2024: £nil).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
291
9c. Employee costs and other expenses
31 December
2025
£m
31 December
2024
£m
Salaries
508.1
470.7
Social security charges on salaries
64.5
49.3
Pension costs
21.2
17.4
Share scheme charges (see note 9f)
115.7
93.9
Total employee expenses1
709.5
631.3
Depreciation charge:
– Owned assets
8.1
10.0
– ROU assets
7.8
8.8
Amortisation charge:
– Software, customer contracts, relationships and brand
59.1
61.6
Auditor’s remuneration (including VAT) (total Group):
– Fees payable for the audit of the Company’s annual accounts
0.7
0.5
– Fees payable for the audit of the Company’s subsidiary accounts
2.6
2.5
– Fees payable for audit-related assurance services pursuant to legislation or regulation
1.2
1.2
1 Total employee costs above includes £29.3 million (2024: £35.7 million) relating to discontinued operations.
£9,600 (inclusive of VAT) (2024: £141,600) was payable to the auditor for other services in the year.
Refer to the Corporate Governance Report for details of the Audit Committee’s policy on fees paid to the Company’s auditor
for non-audit services. Audit fees are 74% (2024: 71%) of total fees and 26% (2024: 29%) of total fees are for non-audit
services, which are classed as audit related assurance services under the FRC rules on non-audit services.
The majority of amortisation of software is charged to directly attributable expenses in the income statement.
9d. Employee numbers (including Directors)
Average for the year
31 December
2025
Number
31 December
2024
Number
Direct customer contact employees
9,626
9,754
Support employees
5,372
4,766
Total
14,998
14,520
Total average employees in 2025 shown above includes 372 relating to Elephant Insurance (2024: 467).
9e. Directors' remuneration
(i) Directors’ remuneration
31 December
2025
£m
31 December
2024
£m
Directors’ emoluments
1.3
1.2
Amounts receivable under SIP and DFSS share schemes
6.6
5.3
Company contributions to money purchase pension plans
0.1
0.1
Total1
8.0
6.6
1 Directors’ remuneration is stated as that of the Executive Directors. For information on Non-Executive Directors’ remuneration see the
remuneration report.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
292
(ii) Number of Directors
2025
Number
2024
Number
Retirement benefits are accruing to the following number of Directors under:
– Money purchase schemes
2
2
9f. Employee share schemes
Total share scheme charges for the Group excluding discontinued operations are analysed below:
31 December 2025
Continuing operations
SIP charge (i)
£m
DFSS charge
(ii)
£m
Total charge
£m
IFRS 2 charge for equity-settled share schemes
21.7
50.4
72.1
IFRS 2 charge for cash-settled share schemes
–
4.1
4.1
Total IFRS 2 charge
21.7
54.5
76.2
Social security costs on IFRS 2 charge
2.3
11.8
14.1
Discretionary bonus on shares allocated but unvested
–
22.5
22.5
Total share scheme charges1
24.0
88.8
112.8
Amounts recovered from co-and reinsurance arrangements
(40.9)
Net share scheme charges
71.9
31 December 2024
Continuing operations
SIP charge (i)
£m
DFSS charge
(ii)
£m
Total charge
£m
IFRS 2 charge for equity-settled share schemes
18.8
47.9
66.7
IFRS 2 charge for cash-settled share schemes
–
2.1
2.1
Total IFRS 2 charge
18.8
50.0
68.8
Social security costs on IFRS 2 charge
1.6
8.7
10.3
Discretionary bonus on shares allocated but unvested
–
12.3
12.3
Total share scheme charges1
20.4
71.0
91.4
Amounts recovered from co-and reinsurance arrangements
(30.7)
Net share scheme charges
60.7
1 Total share scheme charges for the Group including discontinued operations were £115.7 million (2024: £93.9 million, see note 9c).
The IFRS 2 charge for equity-settled share schemes for discontinued operations was £1.1 million (2024: £1.2 million) and the IFRS 2
charge for cash-settled share schemes for discontinued operations was £1.5 million (2024: £1.1 million).
Share scheme charges are presented on a net basis within the Strategic Report, after allocations to co-insurers (in the UK
and Italy) and reinsurers, in line with internal management reporting. The proportion of net to gross share scheme charges
would be expected to be consistent in each period, at approximately 65%.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
293
Financial year ended 31 December 2025
Analysis of gross cost
2022 & prior
2023
2024
2025
Total
cumulative
charge to date
£m
£m
£m
£m
£m
Year of share scheme - SIP
2021
9.8
5.3
3.1
–
18.2
2022
3.1
5.3
5.8
3.5
17.7
20231
–
3.3
6.0
6.4
15.7
20241
–
–
3.9
7.2
11.1
20251
–
–
–
4.6
4.6
Gross IFRS 2 costs – SIP
18.8
21.7
Year of share scheme - DFSS
2021
17.4
18.1
11.5
–
47.0
2022
3.2
14.1
15.4
8.9
41.6
20232
–
5.0
17.2
18.1
40.3
20242
–
–
5.9
21.1
27.0
20252
–
6.4
6.4
Gross IFRS 2 costs - DFSS
50.0
54.5
Total IFRS 2 costs
68.8
76.2
1 Awards are made in March and September of each year, and vest over 36 months from award date. On the 2023 schemes, an average
of 5 months’ charge remains outstanding, on the 2024 schemes an average of 17 months’ charge remains outstanding, and on the 2025
schemes an average of 29 months’ charge remains outstanding.
2 The main award is made in September of each year, with smaller awards made at other points through the year. The shares vest over
36 months from award date. On the 2023 main DFSS, 9 months’ charge remains outstanding; on the 2024 main DFSS 21 months’ charge
remains outstanding, and on the 2025 main DFSS, 33 months’ charge remains outstanding.
(i) The Approved Share Incentive Plan (the SIP)
Eligible UK based employees qualify for awards under the SIP based upon the performance of the Group in each half-year
period. The maximum award for each year is £3,600 per employee and the maximum number of shares that can vest
relating to the 2025 schemes is 877,968 (2024 schemes: 929,237; 2023 schemes: 1,045,697).
The awards are made at the discretion of the Remuneration Committee, taking into account the Group’s performance.
(ii) The Discretionary Free Share Scheme (the DFSS)
Under the DFSS, details of which are contained in the remuneration policy section of the Directors’ Remuneration Report,
individuals receive an award of free shares at no charge.
The maximum number of shares that can vest relating to the 2025 schemes is 3,173,981 (2024 scheme: 3,516,290; 2023
scheme: 3,360,665).
The vesting percentage for most employees for the 2022 DFSS scheme which vested during 2025 was 84.8% (2021 DFSS
scheme: 68.6%).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
294
(iii) Number of free share awards committed at 31 December 2025
Awards
outstanding1
SIP 20232
1,045,697
SIP 20242
929,237
SIP 20252
877,968
DFSS 20233
3,360,665
DFSS 20243
3,516,290
DFSS 20253
3,173,981
Total awards committed
12,903,838
1 Being the maximum number of awards committed before accounting for expected employee attrition and vesting conditions
2 Shares are awarded in March and September of each year, and vest three years later
3 The main award is made in September of each year, with smaller awards made at other points through the year
(iv) Number of free share awards vesting during the year ended 31 December 2025
During the year ended 31 December 2025, awards under the SIP H1 2021 and H2 2021 schemes and the DFSS 2021
schemes vested. The total number of awards vesting for each scheme is as follows.
Original
awards
Awards
vested
SIP 2022 schemes
872,728
755,357
DFSS 2022 schemes
3,070,323
2,352,085
The difference between the original and vested awards reflects employee attrition (SIP schemes) and both employee
attrition and the vesting outcomes based on performance conditions noted above (DFSS schemes).
The weighted average fair value of the shares granted in the year was £28.23 (2024: £23.54).
The weighted average market share price at the date of exercise for shares exercised during the year was £32.58
(2024: £27.94).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
295
10. Taxation
10a. Accounting policies
Income tax on the profit or loss for the periods presented comprise of current and deferred tax.
(i) Current tax
Current tax is the expected tax payable on the taxable income for the period, using tax rates that have been enacted
or substantively enacted by the balance sheet date, and includes any adjustment to tax payable in respect of previous
periods.
Current tax related to items recognised in other comprehensive income is also recognised in other comprehensive income
and not in the Income Statement.
(ii) Deferred tax
Deferred tax is provided in full using the balance sheet liability method, providing for temporary differences arising between
the carrying amount of assets and liabilities for accounting purposes and the amounts used for taxation purposes.
Deferred tax is calculated at the tax rates that have been enacted or substantively enacted by the balance sheet date and
that are expected to apply in the period when the liability is settled, or the asset is realised.
The principal temporary differences arise from IFRS recognition differences due timing differences in the recognition of
intragroup profit commission across subsidiaries, carried forward losses, differences between tax capital allowances and
depreciation of property, plant and equipment, reserve movements and share scheme charges.
The resulting deferred tax is charged or credited to the Income Statement, except to the extent it relates to items that are
recognised in other comprehensive income or directly in equity, in which case the deferred tax is also recognised in other
comprehensive income or directly in equity respectively.
Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred tax assets (including
those relating to carried forward losses) are recognised only to the extent that it is probable that future taxable profits will be
available against which the assets can be utilised. Such assets and liabilities are not recognised if the temporary difference
arises from the initial recognition of other assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit, other than in a business combination or for transactions that give rise to equal taxable and deductible
temporary differences. In addition, a deferred tax liability is not recognised if the temporary difference arises from the initial
recognition of goodwill. For the recognition of deferred tax assets, the probability of the availability of future taxable profits
is determined by a combination of the existence of taxable temporary differences and reviewing future profit projections for
the businesses.
10b. Taxation
Continuing operations
31 December
2025
£m
31 December
2024
£m
Current tax
Corporation tax on profits for the year
222.6
139.1
Under provision relating to prior periods
(2.3)
1.8
Pillar Two income taxes
6.6
15.3
Current tax charge
226.9
156.2
Deferred tax
Current period deferred taxation movement
(15.7)
15.7
Under provision relating to prior periods
1.4
3.4
Total tax charge per Consolidated Income Statement
212.6
175.3
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
296
Factors affecting the total tax charge are:
Continuing operations
31 December
2025
£m
31 December
2024
£m
Profit before tax
957.9
826.5
Corporation tax thereon at effective UK corporation tax rate of 25% (2024: 25%)
239.5
206.6
Expenses and provisions not deductible for tax purposes
1.8
4.1
Non-taxable income
(10.7)
(21.3)
Adjustments relating to prior periods
0.6
5.2
Impact of Pillar Two income taxes
5.1
15.3
Impact of different overseas tax rates
(27.5)
(44.9)
Unrecognised deferred tax
3.8
10.3
Total tax charge
212.6
175.3
Corporation tax assets as at 31 December 2025 totalled £ 18.1 million, with corporation tax liabilities of £69.3 million
(2024: £ 18.1 million assets and £35.0 million liabilities). Corporation tax liabilities includes £22.0 million (2024: £15.4 million)
relating to Pillar Two income taxes.
The UK corporation tax rate for 2025 is 25% (2024: 25%).
Pillar Two income taxes included above relates to estimated top-up tax payable under the OECD Pillar Two rules which
establish a global minimum effective tax rate of 15%. The Group has continued to apply the temporary mandatory exception
to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes,
as provided in the amendments to IAS 12 issued in May 2023.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
297
10c. Deferred income tax asset / (liability)
Analysis of deferred tax asset / (liability)
Tax
treatment
of share
schemes
£m
Capital
allowances
£m
Carried
forward
losses
£m
Fair value
reserve
£m
Hedging
reserve
£m
Insurance
finance
reserve
£m
IFRS
recognition
difference
£m1
Other
differences
£m
Total
£m
Balance brought forward at
1 January 2024
7.2
(3.9)
53.5
1.2
(2.5)
(10.1)
–
0.7 46.1
Reallocation of brought
forward deferred tax
–
–
(15.1)
–
–
–
15.1
–
–
Tax treatment of share
scheme charges through
income or expense
(0.9)
–
–
–
–
–
–
– (0.9)
Tax treatment of share
scheme charges through
reserves
3.2
–
–
–
–
–
–
–
3.2
Capital allowances - deferred
tax acquired in business
combination
–
(9.1)
–
–
–
–
–
– (9.1)
Capital allowances
–
4.8
–
–
–
–
–
–
4.8
Carried forward losses
–
– (38.4)
–
–
–
–
– (38.4)
Movement in fair value
reserve
–
–
–
2.4
–
–
–
–
2.4
Movement in hedging
reserve
–
–
–
–
1.0
–
–
–
1.0
Movement in insurance
finance reserve
–
–
–
–
–
(3.8)
–
– (3.8)
Movement in IFRS
recognition differences
–
–
–
–
–
–
14.0
– 14.0
Other differences
–
–
–
–
–
–
–
0.5
0.5
Balance carried forward at
31 December 2024
9.5
(8.2)
–
3.6
(1.5)
(13.9)
29.1
1.2 19.8
Tax treatment of share
scheme charges through
income or expense
(5.5)
–
–
–
–
–
–
– (5.5)
Tax treatment of share
scheme charges through
reserves
8.8
–
–
–
–
–
–
–
8.8
Capital allowances
–
(0.3)
–
–
–
–
–
– (0.3)
Movement in fair value
reserve
–
–
–
(2.8)
–
–
–
– (2.8)
Movement in hedging
reserve
–
–
–
–
3.4
–
–
–
3.4
Movement in insurance
finance reserve
–
–
–
–
–
7.4
–
–
7.4
Movement in IFRS
recognition differences
–
–
–
–
–
–
19.8
– 19.8
Other differences
–
–
–
–
–
–
–
0.1
0.1
Balance carried forward at
31 December 2025
12.8
(8.5)
–
0.8
1.9
(6.5)
48.9
1.3 50.7
1 Deferred tax on IFRS recognition differences is separately disclosed with a £15.1 million reallocation of the brought forward deferred tax
asset at 1 January 2024 included above, as presented in the prior year financial statements. The majority of deferred tax on IFRS recognition
differences relates to timing differences in the recognition of intragroup profit commission across subsidiaries in different tax jurisdictions.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
298
Positive amounts presented above relate to a deferred tax asset position.
The deferred tax asset has increased during the year, mainly relating to the IFRS recognition differences. Deferred tax
assets are recognised where it is considered probable that there are sufficient future taxable profits available against which
the assets can be utilised.
At 31 December 2025, the Group’s continuing operations had unused tax losses amounting to £78.1 million (2024 excluding
US operations: £75.9 million) and other deductible timing differences of £71.7 million (2024 excluding US operations: £60.0
million), relating primarily to the Group’s business in Spain, for which no deferred tax assets have been recognised. This is
due to uncertainty over the availability and timing of future taxable profits against which to utilise these deferred tax assets.
There is no expiry date for these tax losses, however annual utilisation may be subject to a restriction.
11. Other Assets and Other Liabilities
11a. Accounting policies
(i) Property and equipment, and depreciation
All property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line
method to write off the cost less residual values of the assets over their useful economic lives. These useful economic lives are
as follows:
Improvements to short leasehold buildings
– four to ten years
Computer equipment
– two to four years
Office equipment
– four years
Furniture and fittings
– four years
Right-of-use assets
– two to twenty years, aligned to lease agreement
As set out further in note 6i to the financial statements, a right-of-use asset is established in relation to the Group’s lease
arrangements.
The right-of-use asset is measured at cost, which comprises the following:
• The amount of the initial measurement of lease liability (note 6i to the financial statements)
• Any lease payments made at or before the commencement date less any lease incentives received
• Any initial direct costs, and
• Restoration costs.
The right-of-use asset is subsequently depreciated over the shorter of the lease term and the asset’s useful life on
a straight-line basis.
The Group does not have any significant leases which qualify for the short-term leases or leases of low-value assets
exemption.
(ii) Impairment of property and equipment
In the case of property and equipment, carrying values are reviewed at each balance sheet date to determine whether there
are any indicators of impairment. If any such indicators exist, the asset’s recoverable amount is estimated and compared to
the carrying value. The carrying value is the higher of the fair value of the asset less costs to sell and the asset’s value in use.
Impairment losses are recognised through the income statement.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
299
(iii) Intangible assets
Goodwill
All business combinations are accounted for using the acquisition method. Goodwill has been recognised on acquisitions of
trade and assets representing a business and/or acquisition of subsidiaries and represents the difference between the cost
of the acquisition and the fair value of the net identifiable assets acquired.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash generating units (CGUs)
according to business segment and is reviewed every six months for evidence of impairment and tested annually for
impairment.
The goodwill held on the balance sheet at 31 December 2025 includes goodwill from acquisition of EUI Limited which has
been allocated to the UK insurance segment, and goodwill arising from the acquisition of Home and Pet renewal rights from
RSA Insurance Group Limited which has been allocated to the UK Pet and Household CGUs.
Impairment of goodwill
The annual impairment review involves comparing the carrying amount to the estimated recoverable amount (by allocating
the goodwill to CGUs) and recognising an impairment loss if the recoverable amount is lower. Impairment losses are
recognised through the income statement and are not subsequently reversed.
The recoverable amount is the greater of the fair value of the asset less costs to sell and the value in use of the CGU.
The value in use calculations use cashflow projections based on financial budgets approved by management covering
a period of up to five years.
The key assumptions used in the value in use calculations are those regarding revenue growth, along with expected
changes in pricing and expenses incurred during the forecast period. Management estimates revenue growth rates and
changes in pricing based on past practices and expected future changes in the market.
Renewal Rights (included within Customer contracts, relationships and brand)
Renewal rights are recognised as an intangible asset and amortised using the reducing balance method over an expected
useful life determined as ranging between nine and fourteen years. Renewal rights on initial recognition have been
recognised at fair value arising through an acquisition.
The carrying value of renewal rights is reviewed every six months for evidence of impairment, with the value being written
down if any impairment exists. Impairment may be reversed if conditions subsequently improve.
Brand (included within Customer contracts, relationships and brand)
Brand rights are recognised as an intangible asset and amortised using the straight line method over an expected useful life
of fifteen years. Brand rights on initial recognition have been recognised at its fair value arising through an acquisition.
The carrying value of brand rights is reviewed every six months for evidence of impairment, with the value being written
down if any impairment exists. Impairment may be reversed if conditions subsequently improve.
Software
Purchased software is recognised as an intangible asset and amortised on a straight-line basis over its expected useful life
(generally the license term which is typically between 2 and 4 years). Internally generated software is recognised as an
intangible asset, with directly attributable costs incurred in the development stage capitalised. The internally generated
software assets are amortised on a straight-line basis over the expected useful life of the systems (generally between
3 and 4 years) and amortisation commences when the software is available for use.
The carrying value of software is reviewed every six months for evidence of impairment, with the value being written down
if any impairment exists. Impairment may be reversed if conditions subsequently improve.
(iv) Provisions, contingent liabilities and contingent assets
Provisions are recognised when a legal or constructive obligation arises as a result of an event that occurred before the
balance sheet date, when a cash-outflow relating to this obligation is probable and when the amount can be estimated
reliably.
Where a material obligation exists, but the likelihood of a cash outflow or the amount is uncertain, or where there is
a possible obligation arising from a past event that is contingent on a future event, a contingent liability is disclosed.
Contingent assets are possible assets that arise from past events, whose existence will be confirmed only by the
occurrence or non-occurrence of future events. Where it is probable that a cash inflow will arise from a contingent asset,
this is disclosed.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
300
11b. Property and equipment
£m
Improvements
to short
leasehold
buildings
Computer
equipment
Office
equipment
Furniture and
fittings
ROU Asset –
Leasehold
buildings
Total
Cost
At 1 January 2024
29.7
57.3
18.3
9.6
99.9
214.8
Additions
2.6
5.4
0.5
0.2
17.4
26.1
Impairment
(0.6)
(3.2)
(0.6)
–
–
(4.4)
Disposals
(15.5)
(16.4)
(8.2)
(2.5)
(8.5)
(51.1)
Foreign exchange and other
movements
(0.3)
(0.3)
(0.1)
(0.2)
(0.8)
(1.7)
At 31 December 2024
15.9
42.8
9.9
7.1
108.0
183.7
Depreciation
At 1 January 2024
21.6
45.8
17.2
8.4
31.7
124.7
Charge for the year
2.8
6.3
0.5
0.4
8.8
18.8
Impairment
(0.5)
(2.8)
(0.4)
–
–
(3.7)
Disposals
(15.5)
(16.4)
(8.1)
(2.5)
(0.2)
(42.7)
Foreign exchange and other
movements
(0.2)
(0.2)
(0.1)
(0.1)
(0.6)
(1.2)
At 31 December 2024
8.2
32.7
9.1
6.2
39.7
95.9
Net book amount
At 31 December 2024
7.7
10.1
0.8
0.9
68.3
87.8
Cost
At 1 January 2025
15.9
42.8
9.9
7.1
108.0
183.7
Additions
2.4
3.6
0.5
0.1
3.5
10.1
Impairment
–
(1.2)
–
–
–
(1.2)
Disposals
–
(0.1)
–
–
–
(0.1)
Disposals on sale of subsidiary
–
(1.4)
–
(0.6)
(1.1)
(3.1)
Foreign exchange and other
movements
(0.6)
(0.3)
0.2
0.7
(0.4)
(0.4)
At 31 December 2025
17.7
43.4
10.6
7.3
110.0
189.0
Depreciation
At 1 January 2025
8.2
32.7
9.1
6.2
39.7
95.9
Charge for the year
2.5
4.7
0.4
0.5
7.8
15.9
Impairment
–
(1.0)
–
–
–
(1.0)
Disposals
–
–
–
–
–
–
Disposals on sale of subsidiary
–
(1.3)
–
(0.5)
(0.4)
(2.2)
Foreign exchange and other
movements
0.1
–
0.2
–
(0.1)
0.2
At 31 December 2025
10.8
35.1
9.7
6.2
47.0
108.8
Net book amount
At 31 December 2025
6.9
8.3
0.9
1.1
63.0
80.2
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
301
11c. Intangible assets
Goodwill
£m
Customer
contracts,
relationships
and brand
£m
Software –
Internally
generated
£m
Software –
Other
£m
Total
£m
At 1 January 2024
62.3
7.9
152.0
20.7
242.9
Additions
49.8
44.5
48.8
3.1
146.2
Amortisation charge
–
(2.8)
(54.5)
(4.3)
(61.6)
Disposals
–
–
(0.3)
(0.4)
(0.7)
Impairment
–
–
(3.5)
(0.9)
(4.4)
Transfers
–
–
6.2
(6.2)
–
Foreign exchange movement & other
movements
–
(0.3)
(0.6)
(0.5)
(1.4)
At 31 December 2024
112.1
49.3
148.1
11.5
321.0
Additions
–
–
64.7
3.0
67.7
Amortisation charge
–
(7.4)
(48.3)
(3.4)
(59.1)
Disposals
–
–
(0.3)
–
(0.3)
Impairment
–
–
(3.6)
–
(3.6)
Foreign exchange movement & other
movements
–
0.4
0.7
0.8
1.9
At 31 December 2025
112.1
42.3
161.3
11.9
327.6
Customer contracts and relationships includes Home and Pet renewal rights which has a net carrying value of £28.1 million
as at 31 December 2025 and an amortisation period of 9 years for Home renewal rights and 14 years for Pet renewal rights.
See note 13 for further information.
Goodwill relates to the acquisition of Group subsidiary EUI Limited (formerly Admiral Insurance Services Limited) in
November 1999, and on the purchase of the direct Home and Pet renewal rights from the RSA Insurance Group Limited
(‘RSA’) in April 2024. The carrying amount of goodwill as at 31 December 2025 is £112.1 million (2024: £112.1 million),
of which £62.3 million (2024: 62.3 million) is allocated to UK insurance, £41.2 million (2024: £41.2 million) to UK Pet and
£8.6 million (2024: £8.6 million) to UK Household CGUs.
Goodwill is tested for impairment annually and whenever there is an indication of impairment at the level of the CGU to
which it is allocated. Annual impairment reviews have indicated that the estimated recoverable value of the asset is greater
than the carrying amount and therefore no impairment losses have been recognised.
Only one year of forecasts is required to support the recoverable value of goodwill from EUI acquisition. Given the short time
period used to support the recoverable amount, no terminal growth rate or discounting is applied.
With regards to the goodwill arising from RSA acquisition, the recoverable amount of the CGU has been determined based
on a value in use calculation using discounted cash flow projections based on financial budgets approved by the board
of directors covering a five-year period and a pre-tax discount rate of 13%. Cash flows beyond the five year period are
extrapolated into perpetuity as the fifth year represents a reasonable estimate of a steady state of business. No long term
growth rate has been applied to the perpetuity calculations.
The key assumptions on which the cash flow projections are based on forecast growth in premiums written, related
expenses and claims costs. The forecasts are based on past experience adjusted for market trends and strategic decisions
made in respect of the Pet and Household lines of business.
Refer to the accounting policy for goodwill for further information.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
302
11d. Trade and other payables
31 December
2025
£m
31 December
2024
£m
Trade payables
57.3
52.4
Other tax and social security
12.3
12.5
Amounts owed to co-insurers
22.0
–
Other payables
42.1
34.0
Accruals and deferred income
83.5
76.4
Total trade and other payables
217.2
175.3
Analysis of accruals and deferred income
Accruals
59.2
48.2
Deferred income
24.3
28.2
Total accruals and deferred income as above
83.5
76.4
11e. Leases
The Group occupies various properties under leasing arrangements that are now recognised as right of use assets and
lease liabilities.
Amounts recognised in the Statement of Financial Position are as follows:
31 December
2025
£m
31 December
2024
£m
Lease liabilities
Current
7.4
8.6
Non-Current
66.2
71.0
Total
73.6
79.6
See note 11b for right of use assets depreciation and the carrying amount of right of use asset at the end of the reporting
period. Only one class of underlying assets is identified as leasehold buildings. Total cash outflows in relation to leases is
disclosed under 6i.
Under IFRS16 the Group has no significant financial commitments in relation to leases other than those accounted for as right of use
assets and lease liabilities.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
303
11f. Contingent liabilities and assets
The Group’s legal entities operate in numerous tax jurisdictions and continue to engage on a regular basis with the relevant
tax authority on matters of review and enquiry.
In addition, the Group is, from time to time, subject to threatened or actual litigation and/or legal and/or regulatory disputes,
investigations or similar actions both in the UK and overseas. The Group extensively engages with its regulators as part of
normal operations and participates in industry wide regulatory reviews.
All potentially material matters are assessed, with the assistance of external advisors where appropriate, and in cases where
it is concluded that it is more likely than not that a payment will be made, a provision is established to reflect the best
estimate of the liability. In some cases it will not be possible to form a view, for example if the facts are unclear or because
further time is needed to properly assess the merits of the case or form a reliable estimate of its financial effect. In these
circumstances, specific disclosure of a contingent asset/ liability and an estimate of its financial effect will be made where
material, unless it is not practicable to do so.
Other than the amounts held in within insurance contract liabilities within the Statement of Financial Position in respect of UK
motor total loss claims as set out in the Strategic Report, no material provisions are currently held.
One of the Group’s previously owned subsidiaries was subject to a Spanish Tax Audit which concluded with the Tax
Authority denying the application of the VAT exemption relating to insurance intermediary services. The Company has
appealed this decision via the Spanish Courts and in December 2025 won the appeal in relation to two of the periods under
enquiry and is confident in defending its position in relation to the other open periods. Whilst the Company is no longer part
of the Admiral Group, the contingent liability, which the Company is exposed to, has been indemnified by the Admiral Group
up to a cap of €24 million.
A number of the Group’s contractual arrangements with reinsurers include features that, in certain scenarios, allow for
reinsurers to recover losses incurred to date. The overall impact of such scenarios would not lead to an overall net economic
outflow from the Group.
No further contingent assets or liabilities are disclosed in relation to any ongoing matters such as those set out above given
the uncertainty over whether the asset or liability will crystallise and the quantum of any resulting impact.
12. Dividends, Earnings and Related Parties
The Group’s capital includes share capital and the share premium account, other reserves which are comprised of the fair
value reserve, insurance finance reserve, hedging reserve and foreign exchange reserve, and retained earnings.
12a. Accounting policies
(i) Share capital
Shares are classified as equity when there is no obligation to transfer cash or other assets.
(ii) Fair value reserve
For investments recognised as fair value through other comprehensive income (FVOCI), changes in fair value are
accumulated within the fair value reserve within equity except for impairment gains and losses which are recognised in the
income statement. The accumulated changes in fair value are transferred to profit or loss when the investment is
derecognised or reclassified.
(iii) Hedging reserve
The hedging reserve includes the cash flow hedge reserve. The cash flow hedge reserve is used to recognise the effective
portion of gains or losses on derivatives that are designated and qualify as cash flow hedges. Amounts are subsequently
reclassified to profit or loss as appropriate.
(iv) Insurance finance reserve
The insurance finance reserve relates to the impact of changes in market interest rates on the value of the insurance
and reinsurance assets and liabilities. These changes are reflected in the insurance finance reserve in order to minimise
accounting mismatches between the accounting for financial assets and insurance assets and liabilities. See note 5e
for details of the composition of the insurance finance reserve.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
304
(v) Dividends
Dividends are recorded in the period in which they are declared and paid.
(vi) Earnings per share
Basic earnings per share is calculated by dividing profit or loss attributable to equity holders of the Group Parent Company,
Admiral Group plc by the weighted average number of ordinary shares during the period.
Diluted earnings per share is calculated by dividing profit or loss attributable to equity holders of the Group Parent Company
by the weighted average number of ordinary shares outstanding, adjusted for the effects of all dilutive potential ordinary
shares.
12b. Dividends
Dividends were proposed, approved and paid as follows:
31 December
2025
£m
31 December
2024
£m
Proposed March 2024 (52.0 pence per share, approved April 2024 and paid June 2024)
–
156.2
Declared August 2024 (71.0 pence per share, paid October 2024)
–
213.6
Proposed March 2025 (121.0 pence per share, approved April 2025 and paid May 2025)
366.5
–
Declared August 2025 (115.0 pence per share, paid October 2025)
348.9
–
Total dividends
715.4
369.8
The dividends proposed in March (approved in April) represent the final dividends paid in respect of the 2023 and 2024
financial years. The dividends declared in August are interim distributions in respect of 2024 and 2025.
A 2025 final dividend of 90.0 pence per share (approximately £274.6 million) has been proposed. Refer to the financial
narrative for further detail.
12c. Earnings per share
31 December
2025
31 December
2024
Profit for the financial year after taxation attributable to equity shareholders - continuing
operations (£m)
745.6
651.6
Profit/(Loss) for the financial year after taxation attributable to equity shareholders -
discontinued operations (£m)
(3.0)
11.7
Profit for the financial year after taxation attributable to equity shareholders - continuing and
discontinued operations (£m)
742.6
663.3
Weighted average number of shares – basic1
301,407,475 306,304,676
Unadjusted earnings per share (pence per share) – basic - continuing operations
247.4
212.8
Unadjusted earnings per share (pence per share) – basic - discontinued operations
(1.0)
3.8
Unadjusted earnings per share (pence per share) – basic - continuing and discontinued
operations
246.4
216.6
Weighted average number of shares – diluted
307,190,136 306,304,676
Unadjusted earnings per share (pence per share) – diluted - continuing operations
242.7
212.8
Unadjusted earnings per share (pence per share) – diluted - discontinued operations
(1.0)
3.8
Unadjusted earnings per share (pence per share) – diluted - continuing and discontinued
operations
241.7
216.6
1 Shares held in employee benefit trusts as at 31 December 2025 are excluded from the weighted average number of shares, following
a change in the funding structure during the year that resulted in the consolidation of the trusts into the Group.
The difference between the basic and diluted number of shares at the end of 2025 (being 5.8 million; 2024: nil) relates to
share awards set to vest in the future subject only to continued employment. Refer to note 9 for further detail.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
305
12d. Share capital
31 December
2025
£m
31 December
2024
£m
Authorised
500,000,000 ordinary shares of 0.1 pence
0.5
0.5
Issued, called up and fully paid
306,304,676 ordinary shares of 0.1 pence
0.3
0.3
The Group satisfies its obligations under the share schemes primarily through shares purchased in the market and held
in the Employee Benefit Trust (‘EBT’). Prior to 2025, new shares were issued to the EBT to meet these obligations. During
2025, the Group has committed to provide a loan facility to the EBT to fund the purchase of shares for future scheme
settlements. The resulting exposure and the ability to influence the EBT’s activities has led to the conclusion that the Group
now controls the Trust when assessed under IFRS 10 criteria. Consequently, the EBT has been consolidated in the Group’s
financial statements.
During 2025, 1,000,000 (2024: nil) ordinary shares were purchased from the market by the EBT and 791,372 (2024:
817,386) existing shares were transferred from the EBT to the Admiral Group Share Incentive Plan Trust (‘SIP’).
The cumulative shares issued and transferred into the SIP at 31 December 2025 is 16,109,007 (2024: 15,317,635). Of the
shares issued or transferred, 4,125,372 shares remain in the Trust at 31 December 2025 (2024: 4,078,403). These shares
are entitled to receive dividends.
The cumulative shares issued to the EBT by way of new issue or market purchase net of transfers to the SIP is 32,600,269
(2024: 32,391,641). Of the shares issued, 1,180,801 remain in the Trust at 31 December 2025 (2024: 3,324,258) to be used
for future vesting.
The balance of awards made to employees under the Discretionary Free Share Scheme that have not either vested
or lapsed is 9,569,622 (2024: 9,357,119).
The Trustees have waived the right to dividend payments, other than to the extent of 0.001 pence per share, unless
and to the extent otherwise directed by the Company from time to time.
There is one class of share with no unusual restrictions.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
306
12e. Group related undertakings
The Parent Company’s subsidiaries are as follows:
Incorporated in England and Wales
Registered office: Tŷ Admiral, David Street,
Cardiff, United Kingdom, CF10 2EH
Admiral Law Limited
Ordinary
95
Legal Company
Able Insurance Services Limited
Ordinary
100
Insurance Intermediary
EUI Limited1
Ordinary
100
Insurance Intermediary
Admiral Insurance Company Limited
Ordinary
100
Insurance Company
Admiral Financial Services Limited
Ordinary
100
Company
Incorporated in Gibraltar
Registered office: 2Aa 2nd Floor, Leisure Island Business Centre,
23, Ocean Village Promenade, Gibraltar, GX11 1AA
Admiral Insurance (Gibraltar) Limited
Ordinary
100
Insurance Company
Incorporated in France
Registered office: 128 Rue la Boétie, 75008 Paris
Pioneer Intermediary Europe Services
Ordinary
100
(indirect)
Insurance Intermediary
Incorporated in Italy
Registered office: Via Della Bufalotta 374, 00139 Roma
Admiral Financial Services Italia S.P.A.
Ordinary
100
Financial Services
Incorporated in Spain
Registered office: Calle Rodríguez Marín 61 1ª Planta, 28016 Madrid
Admiral Europe Compañía de Seguros, S.A.
Ordinary
100
Insurance Company
Registered office: Calle Albert Einstein, 10 41092 Sevilla
Admiral Intermediary Services S.A.2
Ordinary
100
Insurance Intermediary
Subsidiaries by virtue of control
The related undertakings below are subsidiaries in accordance
with IFRS 10, as Admiral can exercise dominant influence or
control over them:
Registered office: 10th Floor, 5 Churchill Place, London, E14 5HU
Seren One Limited
n/a
0
Special Purpose Entity
Seren Two Limited
n/a
0
Special Purpose Entity
Seren Three Limited
n/a
0
Special Purpose Entity
Registered office: Via San Prospero n. 4, 20121, Milan, Italy
Contigo SPV S.r.l
n/a
0
Special Purpose Entity
Employee Benefit Trusts:
Admiral Group plc Employee Benefit Trust
n/a
0
Employee Benefit Trust
Admiral Group plc HMRC Share Incentive Plan
n/a
0
Employee Benefit Trust
Subsidiary
Class of
shares held
%
Ownership
Principal Activity
1 EUI Limited has branches in India and Canada.
2 Admiral Intermediary Services S.A. has branches in Italy and France.
For further information on how the Group conducts its business across the UK and Europe, refer to the Strategic Report.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
307
12f. Related party transactions
The Board considers that only the Executive and Non-Executive Directors of Admiral Group plc are key management personnel.
A summary of the remuneration of key management personnel is as follows, with further detail relating to the remuneration
and shareholdings of key management personnel set out in the Directors’ Remuneration Report in the Group’s 2025
Annual Report.
Key management personnel received a total of £9,357,365 (2024: £7,970,605) consisting of short term employee benefits in
the year of £4,945,979 (2024: £5,038,734), post-employment benefits of £77,533 (2024: £63,255) and share based
payments of £4,333,853 (2024: £2,868,616). Key management personnel are able to obtain discounted motor insurance at
the same rates as all other Group employees, typically at a reduction of 15%.
12g. Post balance sheet events
As announced in February 2026, the Group has reached an agreement to acquire 100% of the shares of Flock Limited,
a digital commercial fleet insurance provider. The transaction values the equity in Flock at £80 million and is subject to
regulatory approval. The acquisition is expected to be completed in Q2 2026 and will be funded through existing resources
and/or credit facilities. As at 31 December 2025, the Group had a 3% investment in Flock.
No further events have occurred since the reporting date that materially impact these financial statements.
13. Discontinued Operations
13a. Accounting policy
Disposal groups are classified as held for sale in accordance with IFRS 5 if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use and a sale is considered highly probable. A discontinued
operation is a component of the business that has been disposed of, or is classified as held for sale and represents
a separate major line of business or is part of a single co-ordinated plan to dispose of such a line of business.
The assets and liabilities of a disposal group classified as held for sale are presented separately from the other assets and
liabilities in the Statement of Financial Position. Non-current assets within a disposal group are not depreciated or amortised
from the point of classification as held for sale. The results of discontinued operations are presented separately in the
Consolidated Income Statement. In the period in which an operation is first classified as discontinued, the Income Statement
and applicable notes are represented to present those operations as discontinued.
13b. Description
On the 22nd April 2025, the Group announced that it had reached an agreement with J.C. Flowers & Co. (“J.C. Flowers”),
a global private investment firm to sell the US Motor Insurance business, including Elephant Insurance Company and
Elephant Insurance Services (“Elephant”). The Group’s internal reinsurance arrangement of Elephant was ceased after
underwriting year 2024. The liability for incurred claims in relation to the reinsurance arrangement have remained within
the Group post completion.
Elephant and the respective internal reinsurance arrangement are considered to meet the definition of a discontinued
operation, and Elephant to meet the definition of a disposal group as set out under IFRS 5 above.The disposal group
is included within the discontinued operations operating segment as stated in note 4.
On 5 January 2026, the Group announced that, following regulatory approval, J.C. Flowers had completed the purchase
of Elephant as at 31 December 2025. The transaction value included a cash consideration of approximately $30 million and
deferred consideration receivable after the completion of the sale.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
308
13c. Financial performance
Financial information relating to the discontinued operations for the financial period ending 31 December 2025 and
31 December 2024 are presented below. The results for the financial year ending 31 December 2025 relates to the profit
earned prior to completion, and the loss recognised on disposal.
£m
31 December
2025
31 December
2024
Insurance service result before reinsurance
20.6
25.0
Net expense from reinsurance contracts held
(3.7)
(16.8)
Insurance service result
16.9
8.2
Investment return
4.5
4.7
Net insurance and investment result
21.4
12.9
Other income and expenses
–
(0.1)
Operating profit
21.4
12.8
Net finance costs
–
–
Loss on disposal
(24.5)
–
Loss before tax from discontinued operations
(3.1)
12.7
Taxation expense
0.1
(1.0)
Loss after tax from discontinued operations
(3.0)
11.7
13d. Assets disposed of
The carrying amount of assets and liabilities as at the date of sale are outlined below. All assets and liabilities previously held
for sale have been disposed of as at 31 December 2025.
31 December
2025
£m
Gross
Property and equipment
0.7
Intangible assets
–
Reinsurance contract assets
15.6
Other receivables
2.3
Intercompany receivables
5.2
Financial investments
106.3
Cash and cash equivalents
19.6
Assets associated with disposal group held for sale
149.7
Insurance contract liabilities
81.8
Trade and other payables
8.6
Intercompany payables
4.8
Lease liabilities
0.6
Liabilities directly associated with disposal group held for sale
95.8
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
309
13e. Cashflow
The net cashflows incurred by the disposal group are as follows:
31 December
2025
31 December
2024
£m
£m
Net cash (outflow)/ inflow from operating activities
(3.9)
14.6
Net cash (outflow) from investing activities
–
(0.3)
Net cash (outflow) from financing activities
(1.1)
(0.1)
Net cash (outflow)/ inflow from discontinued operations
(5.0)
14.2
13f. Loss on disposal
31 December
2025
£m
Cash consideration
22.8
Deferred consideration
10.6
Costs to sell incurred by seller
(12.5)
Proceeds, net of transaction costs
20.9
Net assets held for sale
53.9
Other adjustments
(9.6)
Foreign exchange difference
1.1
Loss on disposal of Elephant entities held for sale1
(24.5)
1 Loss on disposal is included within profit before tax from discontinued operations on the Consolidated Income Statement.
14. Reconciliation of turnover to reported insurance premium and other revenue as per the
financial statements
The following table reconciles turnover, a significant Key Performance Indicators (KPIs) and non-GAAP measure presented
within the Strategic Report, to insurance revenue, as presented in note 4 to the financial statements.
Note
31 December
2025
£m
31 December
2024
£m
Insurance revenue related movement in liability for remaining coverage
5b
4,979.3
4,553.4
Less other insurance revenue
(282.2)
(270.6)
Insurance premium revenue
4,697.1
4,282.8
Movement in unearned premium and cancellations
(51.9)
369.4
Premiums written after coinsurance
4,645.2
4,652.2
Co-insurer share of written premiums
671.9
778.3
Total premiums written
5,317.1
5,430.5
Other insurance revenue
5b
282.2
270.6
Other revenue
8
153.1
136.3
Interest income on loans to customers
143.1
109.1
Turnover as per note 4 of financial statements
5,895.5
5,946.5
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
310
Appendix 1 to the Group Financial Statements (unaudited)
The following tables reconcile significant Key Performance Indicators (KPIs) and non-GAAP measures included in the
Strategic Report to items included in the financial statements.
1a: Reconciliation of reported loss and expense ratios: Group (continuing operations)
31 December 2025
£m
Consolidated
Financial
Statement Note
Core product
Ancillary
income
Total gross
Total,
net of XoL
reinsurance
Insurance premium revenue
4,516.0
181.1
4,697.1
4,545.7
Administration fees, instalment income
and non-separable ancillary commission
–
282.2
282.2
282.2
Insurance revenue (A)
5b/5d
4,516.0
463.3
4,979.3
4,827.9
Insurance expenses (B)
5c
(938.8)
(68.7)
(1,007.5)
(1,007.5)
Claims incurred (C)
5c/5d
(3,250.3)
(60.3)
(3,310.6)
(3,245.9)
Claims releases (D)
5c/5d
418.4
5.5
423.9
386.4
Quota share reinsurance result1
(127.3)
Onerous loss component movement2
1.2
Underwriting result (E)
834.8
Net share scheme costs3
(48.4)
Insurance service result
786.4
Reported loss ratio ((C+D)/A)
59.2%
Reported expense ratio (B/A)
20.9%
Insurance service margin (E/A)
17.3%
31 December 2024
£m
Consolidated
Financial
Statement Note
Core product
Ancillary
income
Total gross
Total,
net of XoL
reinsurance
Insurance premium revenue
4,118.2
164.6
4,282.8
4,119.0
Administration fees, instalment income
and non-separable ancillary commission
–
270.6
270.6
270.6
Insurance revenue (A)
5b/5d
4,118.2
435.2
4,553.4
4,389.6
Insurance expenses (B)
5c
(882.9)
(64.5)
(947.4)
(947.4)
Claims incurred (C)
5c/5d
(2,846.4)
(61.1)
(2,907.5)
(2,850.0)
Claims releases (D)
5c/5d
553.0
3.2
556.2
421.3
Quota share reinsurance result1
(277.6)
Onerous loss component movement2
1.5
Underwriting result (E)
737.4
Net share scheme costs3
(35.3)
Insurance service result
702.1
Reported loss ratio ((C+D)/A)
55.3%
Reported expense ratio (B/A)
21.6%
Insurance service margin (E/A)
16.8%
1 Quota share reinsurance result excludes quota share reinsurers’ share of share scheme costs and movement in onerous
loss-recovery component.
2 Onerous loss component movement is shown net of all reinsurance.
3 Net share scheme costs of £48.4 million (2024: £35.3 million), being gross costs of £75.9 million (2024: £56.1 million, see note 5c)
less reinsurers’ share of share scheme costs of £27.5 million (2024: £20.8 million) are excluded from the underwriting result.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
311
1b. Reconciliation of reported loss and expense ratios: UK Motor
31 December 2025
£m
Consolidated
Financial
Statement
Note
Core
product
Ancillary
income1
Total
gross
Total,
net of XoL
reinsurance
Core
product, net
of XoL
Total premiums written
3,697.2
163.0
3,860.2
3,782.0
3,619.0
Gross premiums written
3,033.2
163.0
3,196.2
3,132.0
2,969.0
Insurance premium revenue
3,148.3
157.9
3,306.2
3,224.3
3,066.4
Instalment income
–
155.1
155.1
155.1
–
Administration fees & non-separable
ancillary commission
–
50.2
50.2
50.2
–
Insurance revenue (A)
5b/5d
3,148.3
363.2
3,511.5
3,429.6
3,066.4
Insurance expenses (B)
5c
(543.5)
(56.7)
(600.2)
(600.2)
(543.5)
Claims incurred (C)
5c/5d
(2,264.7)
(52.4)
(2,317.1)
(2,283.9)
(2,231.5)
Claims incurred excluding Ogden (D)
(2,284.7)
(52.4)
(2,337.1)
(2,303.9)
(2,251.5)
Claims releases (E)
5c/5d
330.5
5.2
335.7
310.4
305.2
Insurance service result, gross of quota
share reinsurance
670.6
259.3
929.9
855.9
596.6
Quota share reinsurance result2
(60.7)
(60.7)
Onerous loss component movement
–
–
Underwriting result (F)
795.2
535.9
Current period loss ratio (C/A)
66.6%
72.8%
Claims releases (E/A)
(9.1%)
(10.0%)
Reported loss ratio ((C+E)/A)
57.5%
62.8%
Reported expense ratio (B/A)
17.5%
17.7%
Insurance service margin (F/A)
23.2%
17.5%
Current period loss ratio excluding
Ogden (D/A)
67.2%
73.5%
Reported loss ratio excluding Ogden
((D+E)/A)
58.1%
63.5%
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
312
31 December 2024
£m
Consolidated
Financial
Statement
Note
Core
product
Ancillary
income1
Total
gross
Total,
net of XoL
reinsurance
Core
product, net
of XoL
Total premiums written
4,006.6
151.1
4,157.7
4,033.3
3,882.2
Gross premiums written
3,234.1
151.1
3,385.2
3,284.7
3,133.6
Insurance premium revenue
3,020.7
139.8
3,160.5
3,062.4
2,922.5
Instalment income
–
155.9
155.9
155.9
–
Administration fees & non-separable
ancillary commission
–
53.1
53.1
53.1
–
Insurance revenue (A)
5b/5d
3,020.7
348.8
3,369.5
3,271.4
2,922.5
Insurance expenses (B)
5c
(530.9)
(55.9)
(586.8)
(586.8)
(530.9)
Claims incurred (C)
5c/5d
(2,051.5)
(55.6)
(2,107.2)
(2,078.1)
(2,022.5)
Claims incurred excluding Ogden (D)
(2,078.5)
(55.6)
(2,134.1)
(2,105.1)
(2,049.5)
Claims releases (E)
5c/5d
493.4
2.7
496.1
374.6
371.9
Claims releases excluding Ogden (F)
414.2
2.7
416.9
295.4
292.7
Insurance service result, gross of quota
share reinsurance
931.7
240.0
1,171.7
981.1
741.0
Quota share reinsurance result2
(228.8)
(228.8)
Onerous loss component movement
1.1
1.1
Underwriting result (G)
753.4
513.3
Current period loss ratio (C/A)
63.5%
69.2%
Claims releases (E/A)
(11.4%)
(12.7%)
Reported loss ratio ((C+E)/A)
52.1%
56.5%
Reported expense ratio (B/A)
17.9%
18.2%
Insurance service margin (G/A)
23.0%
17.6%
Current period loss ratio excluding
Ogden (D/A)
64.3%
70.1%
Claims releases excluding Ogden (F/A)
(9.0%)
(10.0%)
Reported loss ratio excluding Ogden
((D+F)/A)
55.3%
60.1%
1 Ancillary income combined with other net income is presented as part of UK Motor Insurance other revenue in reporting ‘Other revenue
per vehicle’. Total other revenue was £333.3 million (31 December 2024: £321.8 million).
2 Net share scheme costs of £40.7 million (31 December 2024: £29.6 million), being gross costs of £56.1 million (31 December 2024: £40.7
million, see note 5c) less reinsurers’ share of share scheme costs of £15.4 million (31 December 2024: £11.1 million) are excluded from the
underwriting result.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
313
1c. Reconciliation of reported loss and expense ratios: UK Other Personal Lines
31 December 2025
£m
Consolidated
Financial
Statement
Note
UK
Household
UK
Travel & Pet
UK
Other
Personal
lines
UK
Household,
net of XoL
reinsurance
UK Travel
& Pet,
net of XoL
reinsurance
Insurance revenue (A)
5b/5d
521.0
189.1
710.1
494.6
188.3
Insurance expenses (B)
5c
(114.0)
(73.1)
(187.1)
(114.0)
(73.1)
Claims incurred in the period (C)
5c/5d
(334.9)
(117.2)
(452.1)
(321.3)
(117.5)
Changes in liabilities for incurred claims
(releases) (D)
5c/5d
26.6
7.0
33.6
19.2
7.0
Insurance service result, gross of quota
share reinsurance
98.7
5.8
104.5
78.5
4.7
Quota share reinsurance result1
(35.3)
–
Onerous loss component movement
–
–
Underwriting result (E)
43.2
4.7
Current period loss ratio (C/A)
65.0%
62.4%
Claims releases (D/A)
(3.9%)
(3.7%)
Reported loss ratio ((C+D)/A)
61.1%
58.7%
Reported expense ratio (B/A)
23.0%
38.8%
Insurance service margin (E/A)
8.7%
2.5%
31 December 2024
£m
Consolidated
Financial
Statement
Note
UK
Household
UK
Travel & Pet
UK
Other
Personal
lines
UK
Household,
net of XoL
reinsurance
UK Travel
& Pet,
net of XoL
reinsurance
Insurance revenue (A)
5b/5d
399.6
104.3
503.9
376.4
103.4
Insurance expenses (B)
5c
(102.9)
(56.0)
(158.9)
(102.9)
(56.0)
Claims incurred in the period (C)
5c/5d
(233.7)
(64.5)
(298.2)
(225.7)
(65.0)
Changes in liabilities for incurred claims
(releases) (D)
5c/5d
46.3
5.1
51.4
37.0
5.1
Insurance service result, gross of quota
share reinsurance
109.3
(11.1)
98.2
84.8
(12.5)
Quota share reinsurance result1
(61.2)
–
Onerous loss component movement
–
–
Underwriting result (E)
23.6
(12.5)
Current period loss ratio (C/A)
60.0%
62.9%
Claims releases (D/A)
(9.9%)
(4.9%)
Reported loss ratio ((C+D)/A)
50.1%
57.9%
Reported expense ratio (B/A)
27.3%
54.2%
Insurance service margin (E/A)
6.3%
(12.1%)
1 Net share scheme costs of £2.5 million (31 December 2024: £1.6 million), being gross costs of £8.7 million (31 December 2024:
£5.4 million, see note 5c) less reinsurers’ share of share scheme costs of £6.2 million (31 December 2024: £3.8 million) are excluded
from the underwriting result.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
314
1d. Reconciliation of reported loss and expense ratios: European Insurance
31 December 2025
£m
Consolidated
Financial
Statement
Note
Total
gross
Total, net of
XoL
reinsurance
Insurance revenue (A)
5b/5d
654.5
623.5
Insurance expenses (B)
5c
(175.0)
(175.0)
Claims incurred in the period less changes in liabilities for incurred claims (C)
5c/5d
(419.7)
(414.0)
Insurance service result, gross of quota share reinsurance
59.8
34.5
Quota share reinsurance result1
(31.3)
Onerous loss component movement
1.2
Underwriting result (D)
4.4
Reported loss ratio (C/A)
66.4%
Reported expense ratio (B/A)
28.1%
Insurance service margin (D/A)
0.7%
31 December 2024
£m
Consolidated
Financial
Statement
Note
Total
gross
Total, net of
XoL
reinsurance
Insurance revenue (A)
5b/5d
606.7
572.7
Insurance expenses (B)
5c
(168.0)
(168.0)
Claims incurred in the period less changes in liabilities for incurred claims (C)
5c/5d
(445.9)
(437.7)
Insurance service result, gross of quota share reinsurance
(7.2)
(33.0)
Quota share reinsurance result1
12.4
Onerous loss component movement
0.4
Underwriting result (D)
(20.2)
Reported loss ratio (C/A)
76.4%
Reported expense ratio (B/A)
29.3%
Insurance service margin (D/A)
(3.5%)
1 Net share scheme costs of £3.5 million (2024: £2.8 million), being gross costs of £9.8 million (2024: £8.6 million, see note 5c)
less reinsurers’ share of share scheme costs of £6.3 million (2024: £5.8 million) are excluded from the underwriting result.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
315
Appendix 2 to the Group financial statements (unaudited)
The following table of non-GAAP measures illustrates the sensitivity of profit and loss (before tax) arising from the impact
of 100 and 200 basis point increases and decreases in interest rates over the financial year 2025.
2a. Additional sensitivities to interest rate risk
31 December 2025
Insurance contract liabilities and
reinsurance contract assets
Cash and
investments
£m
Impact on profit
before tax gross of
reinsurance
Impact on profit
before tax net of
reinsurance
Impact on profit
before tax
Increase of 100 basis points
27.8
25.6
26.3
Decrease of 100 basis points
(30.2)
(27.8)
(26.3)
Increase of 200 basis points
53.7
49.4
52.5
Decrease of 200 basis points
(63.4)
(58.5)
(52.5)
Changes impact profit before tax as follows:
• Interest revenue and other finance costs on floating-rate financial instruments (assuming that interest rates had varied
by 100 basis points during the year)
• Changes in fixed-rate financial instruments measured at FVTPL
• Changes in the discounted fulfilment cashflows of onerous contracts
• Insurance claims expenses, reinsurance claims recoveries and finance income or expenses recognised in profit or loss,
as a result of discounting future cashflows at a revised locked-in rate for the current period (i.e. assuming that interest
rates had varied by 100 basis points during the year).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the consolidated financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
316
Parent Company Income Statement
Year ended
Note
31 December
2025
£m
31 December
2024
£m
Recharge of administration expenses
11.0
–
Administrative expenses
2
(66.6)
(51.4)
Operating loss
(55.6)
(51.4)
Investment and other interest income
3
718.5
592.8
Impairment expense
4
(11.0)
(29.7)
Gain/(loss) on disposal of subsidiaries
3.2
12.5
Interest payable
6
(23.4)
(26.1)
Profit before tax
631.7
498.1
Taxation credit
7
14.2
14.8
Profit after tax
645.9
512.9
Parent Company Statement of Comprehensive Income
Year ended
Note
31 December
2025
£m
31 December
2024
£m
Profit for the period
645.9
512.9
Other comprehensive income
Items that are or may be reclassified to profit or loss
Movement in fair value reserve
1.8
(10.8)
Deferred tax in relation to movement in fair value reserve
7
(0.4)
2.7
Other comprehensive income for the period, net of income tax
1.4
(8.1)
Total comprehensive income for the period
647.3
504.8
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Parent Company financial statements
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
317
Parent Company Statement of Financial Position
As at
Note
31 December
2025
£m
31 December
2024
£m
ASSETS
Investments in group undertakings
4
444.8
445.2
Intangible assets
5
–
–
Financial investments
6
431.3
263.2
Corporation tax asset
7
–
–
Deferred tax asset
7
0.8
0.9
Trade and other receivables
8
429.8
306.8
Cash and cash equivalents
6
1.9
3.6
Total assets
1,308.6
1,019.7
EQUITY
Share capital
10
0.3
0.3
Share premium account
13.1
13.1
Fair value reserve
1.7
0.3
Retained earnings
10
318.9
348.3
Total equity
334.0
362.0
LIABILITIES
Subordinated and other financial liabilities
6
459.3
376.3
Trade and other payables
9
515.3
281.4
Total liabilities
974.6
657.7
Total equity and total liabilities
1,308.6
1,019.7
The accompanying notes form part of these financial statements.
These financial statements were approved by the Board of Directors on 4 March 2026 and were signed on its behalf by:
Geraint Jones
Chief Financial Officer
Admiral Group plc
Company Number: 03849958
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Parent Company financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
318
Parent Company Statement of Changes in Equity
Note
Share
capital
£m
Share
premium
account
£m
Fair value
reserve
£m
Retained
earnings
£m
Total
equity
£m
At 1 January 2024
0.3
13.1
8.4
137.2
159.0
Profit for the period
–
–
–
512.9
512.9
Other comprehensive income
Movements in fair value reserve
10
–
–
(10.8)
–
(10.8)
Deferred tax charge in relation to movements in fair
value reserve
7
–
–
2.7
–
2.7
Total comprehensive income/ (expense) for the
period
–
–
(8.1)
512.9
504.8
Transactions with equity holders
–
Dividends
10
–
–
–
(369.8)
(369.8)
Issues of share capital
10
–
–
–
–
–
Share scheme credit
–
–
–
67.8
67.8
Deferred tax on share scheme credit
–
–
–
0.2
0.2
Total transactions with equity holders
–
–
–
(301.8)
(301.8)
As at 31 December 2024
0.3
13.1
0.3
348.3
362.0
At 1 January 2025
0.3
13.1
0.3
348.3
362.0
Profit for the period
–
–
–
645.9
645.9
Other comprehensive income
–
–
–
–
–
Movements in fair value reserve
10
–
–
1.8
–
1.8
Deferred tax charge in relation to movements in fair
value reserve
7
–
–
(0.4)
–
(0.4)
Total comprehensive income/ (expense) for the
period
–
–
1.4
645.9
647.3
Transactions with equity holders
–
Dividends
10
–
–
–
(715.4)
(715.4)
Issues of share capital
10
–
–
–
–
–
Shares acquired by employee benefit trusts
–
–
–
(35.3)
(35.3)
Share scheme credit
–
–
–
74.9
74.9
Deferred tax on share scheme credit
–
–
–
0.5
0.5
Total transactions with equity holders
–
–
–
(675.3)
(675.3)
As at 31 December 2025
0.3
13.1
1.7
318.9
334.0
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Parent Company financial statements continued
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
319
1. Accounting policies
1.1. Basis of preparation
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure
Framework (‘FRS 101’). The financial statements are prepared on the historical cost basis except for the revaluation of
financial assets classified as fair value through the profit or loss or as fair value through other comprehensive income.
The Parent Company financial statements are presented alongside the consolidated financial statements, which can
be found on page 206.
In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements
of International Financial Reporting Standards as adopted by the UK (‘Adopted IFRSs’) but makes amendments where
necessary in order to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure
exemptions has been taken.
Admiral Group plc is considered to be the parent entity and the ultimate Parent Company of the Group.
1.2. Changes to accounting policies
No changes to accounting policies have been made in the period, which have a material impact.
1.3. Disclosure exemptions applied under FRS 101
The Company has taken advantage of the following disclosure exemptions under FRS 101:
• FRS 101.8 (a): the requirements of paragraph 45(b) and 46 to 52 of IFRS 2 Share-based payment
• FRS 101.8 (d): the requirement of IFRS 7 Financial Instruments: Disclosure regarding financial instruments
• FRS 101.8 (e): the requirement in paragraphs 91 to 99 of IFRS 13 Financial Instruments: Disclosure regarding financial
instruments
• FRS 101.8 (f): the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative
information in respect of: paragraph 118(3) of IAS 38 Intangible Assets
• FRS 101.8 (g): the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111
of IAS 1 Presentation of Financial Statements to produce a cashflow statement, a third balance sheet and to make
an explicit and unreserved statement of compliance with IFRSs
• FRS 101.8 (h): the requirements of IAS 7 Statements of Cashflows to produce a cashflow statement
• FRS 101.8 (i): the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates
and Errors to include a list of new IFRSs that have been issued but that have yet to be applied
• FRS 101.8 (k): the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into
between two or more members of a group, provided that any subsidiary which is a party to transaction is wholly owned
by such a member.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented
in these financial statements.
1.4. Going concern
The financial statements have been prepared on a going concern basis. In considering the appropriateness of this
assumption, the Board have reviewed the Company's projections for the next 12 months and beyond, including cashflow
forecasts and regulatory capital surpluses.
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence
for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing the annual financial statements.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the Parent Company Financial Statements
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
320
1.5. Critical accounting judgements and key source of estimation uncertainty
In applying the Company’s accounting policies as described below, management consider there to be a key source of
estimation uncertainty within the impairment testing of the Company’s investments in group undertakings. Management
recognises the estimation involved in determining whether the carrying value of the investment may be supported by the
recoverable amount calculation based on the ‘value in use’ of the asset (the net present value of future cashflows arising
from the asset).
In calculating the net present value of future cashflows, Management has made assumptions over the timing and amount
of underlying profit projections of the relevant undertakings, long-term growth rates in those projections and the discount
rate applied to these projections that is appropriate to reflect the market’s view of the risk of the relevant investment.
Sensitivity of these assumptions is also considered in calculating the net present value and suitably incorporated in
Management’s valuations.
No key accounting judgements have been made in the process of applying the Company’s accounting policies.
1.6. Shares in Group undertakings
Shares in Group undertakings are valued at cost less any provision for impairment in value.
The requirements of IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with respect
to the Company’s investments in subsidiaries. When necessary, the entire carrying amount of the investment is tested for
impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher
of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognised forms part of
the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with IAS 36 to the
extent that the recoverable amount of the investment subsequently increases. See note 4 to these financial statements for
further detail.
1.7. Employee share schemes
The Company operates a number of share schemes for employees of the Group’s subsidiaries. For equity-settled schemes,
the fair value of the employee services received in exchange for the grant of free shares under the schemes is recognised
as an increase in equity in the Company. A corresponding intercompany charge is made to the subsidiaries whose
employees receive the free shares. For further detail, see note 9 in the consolidated financial statements.
1.8. Taxation
The charge for taxation is based on the profit for the year and takes into account taxation deferred because of timing
differences between the treatment of certain items for taxation and accounting purposes.
Deferred tax assets are recognised to the extent that they are regarded as recoverable. They are regarded as recoverable
to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be
sufficient taxable profits from which the future reversal of the underlying timing differences can be deducted.
1.9. Financial assets and financial liabilities
Under IFRS 9, classification and subsequent measurement of financial assets depend on:
• The Company’s business model for managing the asset; and
• The cashflow characteristics of the asset.
Based on these factors, the Company classifies its financial assets into one of the three categories below:
• Amortised cost: assets held for collection of contractual cashflows where the cashflows represent solely payments
of principal and interest, that are not designated as FVTPL
• Fair value through other comprehensive income (FVOCI): Financial assets that are held for collection of contractual
cashflows and selling the assets, where the assets’ cashflows represent solely payments of principal and interest, and that
are not designated at FVTPL
• Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortised cost or FVOCI, or which are
designated as FVTPL at initial recognition.
In line with the above:
• Corporate debt securities, gilts and government debt securities are measured at FVOCI. Unrealised changes in the fair
value of these assets are recognised in Other Comprehensive Income (OCI). The recognition of impairment gains or losses
and interest revenue are recognised in the profit or loss
• Investments measured at FVTPL are primarily money market funds. Interest income is recognised in the Income Statement.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the Parent Company Financial Statements
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
321
The ECL model is used to calculate any impairment to be recognised for all assets measured at amortised cost, as well as
financial investments measured at FVOCI.
Cash and cash equivalents include cash in hand and deposits held at call with banks. All cash and cash equivalents are
measured at amortised cost.
The Company’s financial liabilities comprise of subordinated notes and revolving credit facilities, which are held at amortised
cost using the effective interest method.
1.10. Intangible Assets
Purchased software licences are classified as an intangible asset and stated in the balance sheet at a cost less accumulated
amortisation. Software is amortised from the point at which the asset is operational and is amortised over the licence period.
1.11. Trade and other receivables
Trade and other receivables are measured at amortised cost, less any impairment.
1.12. Trade and other payables
Trade and other payables are measured at amortised cost.
2. Administrative expenses
Recharge of administration expenses relates to re-charges of management services to subsidiaries.
No employees are directly employed by the Company. Administrative expenses include recharges of £26.4 million (2024:
£12.6 million) in respect of employees contractually employed by subsidiary entities. Of this amount, £8.3 million, included
within recharged administrative expenses, has been allocated to other Group subsidiaries.
3. Investment and interest income
31 December
2025
£m
31 December
2024
£m1
Dividend income from subsidiary undertakings
699.9
578.0
Interest income - other
6.9
3.2
Interest income at effective interest rate1
11.7
11.6
Total investment and interest income
718.5
592.8
1 Interest income at effective interest rate is presented net of an intercompany arrangement whereby the related interest income
(2025:£8.2 m; 2024: £6.0m) is offset by an equal interest expense arising from the same underlying transaction.
4. Investments in Group undertakings
£m
Investments in subsidiary undertakings:
At 1 January 2024
426.2
Additions
48.7
Disposals
–
Impairments
(29.7)
As at 31 December 2024
445.2
Additions
28.3
Disposals
(17.7)
Impairments
(11.0)
As at 31 December 2025
444.8
A full list of the Company’s subsidiaries is disclosed in note 12 of the consolidated financial statements.
The additions to investments in the period of £28.3 million relate to the following:
• Further investment in Admiral Europe Compañía de Seguros (‘AECS’) (£20.3 million)
• Further investment in Able Insurance Services Limited (‘Able’) (£2 million)
• Further investment in Admiral Financial Services Italia S.P.A (‘AFSI’) (£6million).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the Parent Company Financial Statements
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
322
An annual impairment review is performed over the carrying value of the investments in subsidiary undertakings, which
involves comparing the carrying amount to the estimated recoverable amount. The recoverable amount is the greater of the
fair value of the asset less costs to sell, and the value in use of the subsidiary, calculated using cashflow projections based
on financial budgets approved by the Group Board.
AFSI
In 2025, a non-cash impairment loss of £8.2 million (2024: £6.9 million) has been recognised by the Parent Company in
respect of its investment in the Group’s Italian loans business AFSI. The impairment charge is to reflect the loss incurred
during 2025 to bring the value of the investment to its recoverable amount, being its fair value less costs to sell (equivalent
of net asset value), of £4.0 million (2024: £6.2 million).
Able
In 2025, a non-cash impairment loss of £2.8 million (2024: £3.2 million) has been recognised by the Parent Company in
respect of its investment in the Group’s UK based insurance business Able. The impairments charge is to bring the value of
the investment to its recoverable amount, being its fair value less costs to sell (equivalent of net asset value), of £7.1 million
(2024: £7.9 million)
The Board continues to explore new adventures and is committed to supporting Able and AFSI in its diversification strategy.
The carrying value of Able and AFSI is based on fair value less costs of disposal, for which the net assets has been
used as a reasonable approximation, using tier 3 of the fair value hierarchy. Due to limitations on evidential market
information and restrictions in readily available information, net assets have been used to estimate fair value less costs
to sell.
Impairment charges is presented within the ‘Impairment losses’ line of the Parent Company Income Statement.
5. Intangible Assets
Software
£m
Total
£m
Cost
At 1 January 2025
0.4
0.4
Additions
–
–
Disposal
–
–
At 31 December 2025
0.4
0.4
Amortisation
At 1 January 2025
0.4
0.4
Charge for the year
–
–
Disposal
–
–
At 31 December 2025
0.4
0.4
Net Book Value
At 31 December 2024
–
–
At 31 December 2025
–
–
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the Parent Company Financial Statements
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
323
6. Financial assets and liabilities
The Company’s financial instruments can be analysed as follows:
31 December
2025
£m
31 December
2024
£m
Investments classified as FVOCI
Gilts and government debt securities
197.1
128.0
Corporate debt securities
59.4
75.7
256.5
203.7
Investments classified as FVTPL
Money market and other similar funds (level 1 of the IFRS 13 hiearchy)
174.8
59.5
Total financial investments
431.3
263.2
Financial assets held at amortised cost
Trade and other receivables (note 8)1
424.1
301.9
Cash and cash equivalents
1.9
3.6
Total financial assets
857.3
568.7
Financial liabilities
Subordinated notes
259.0
258.9
Other borrowings
200.3
117.4
Trade and other payables (note 9)
515.3
281.4
Total financial liabilities
974.6
657.7
1 Trade and other receivables exclude prepayments of £5.7 million. The balance as at 31 December 2024 has been re-presented to
exclude prepayments of £4.9 million.
The table below compares the carrying value of subordinated notes (as per the Statement of Financial Position) with the fair
value of the subordinated notes using a level one valuation:
31 December 2025
£m
31 December 2024
£m
Carrying
amount £m
Fair value
£m
Carrying
amount £m
Fair value
£m
Financial liabilities
Subordinated notes
259.0
288.5
258.9
276.4
On 24 July 2024, the remaining 27.55% (£55.1 million) of subordinated loan notes issued on 25 July 2014 was repurchased.
The subordinated notes balance at 31 December 2025 consists of notes issued on 6 July 2023 at a fixed rate of 8.5%, with
a total value of £250 million and redemption date 6 January 2034.
Total interest payable of £23.4 million (2024: £26.1 million) was recognised, of which £21.3 million (2024: £23 million)
was in relation to the subordinated loan notes. See note 6i to the consolidated financial statements for further information.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the Parent Company Financial Statements
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
324
7. Taxation
7a. Taxation credit
31 December
2025
£m
31 December
2024
£m
Current tax
Corporation tax credit on profits for the year
14.5
26.2
Change in provision relating to prior periods
(0.2)
0.6
Current tax credit
14.3
26.8
Deferred tax
Current period deferred taxation movement
(0.1)
(12.0)
Change in provision relating to prior periods
–
–
Total tax credit per Income Statement
14.2
14.8
The UK corporation tax rate for 2025 is 25% (2024: 25%).
Factors affecting the total tax credit are:
31 December
2025
£m
31 December
2024
£m
Profit before tax
631.7
498.1
Corporation tax thereon at effective UK corporation tax rate of 25%
157.9
124.5
Expenses and provisions not deductible for tax purposes
3.5
9.0
Adjustments relating to prior periods
0.2
(0.6)
Non-taxable income
(175.8)
(147.7)
Total tax credit for the period as above
(14.2)
(14.8)
At the year end, the corporation tax asset was £nil (2024: £nil).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the Parent Company Financial Statements
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
325
7b. Deferred income tax (asset)/ liability
Analysis of deferred tax (asset)/ liability
Tax
treatment
of share
schemes
£m
Carried
forward
losses
£m
Fair value
reserve
£m
Other
differences
£m
Total
£m
Balance brought forward at 1 January 2024
(0.6)
(12.2)
2.8
–
(10.0)
Tax treatment of share scheme charges through income or
expense
(0.2)
–
–
–
(0.2)
Tax treatment of share scheme charges through reserves
(0.2)
–
–
–
(0.2)
Carried forward losses
–
12.2
–
–
12.2
Movement in fair value reserve
–
–
(2.7)
–
(2.7)
Balance carried forward at 31 December 2024
(1.0)
–
0.1
–
(0.9)
Tax treatment of share scheme charges through income or
expense
0.3
–
–
–
0.3
Tax treatment of share scheme charges through reserves
(0.5)
–
–
–
(0.5)
Carried forward losses
–
–
–
–
–
Movement in fair value reserve
–
–
0.4
–
0.4
Movement in other temporary differences
–
–
–
(0.1)
(0.1)
Balance carried forward at 31 December 2025
(1.2)
–
0.5
(0.1)
(0.8)
The recognition of deferred tax assets is supported by the expected future taxable profits of the UK Group.
Legislation to introduce a global minimum effective tax rate of 15% known as the Pillar Two rules was substantively enacted
in the UK on 20 June 2023 under Finance (No.2) Act 2023. The rules introduce a domestic top-up tax and multinational
top-up tax effective for accounting periods starting on or after 31 December 2023. Although the rules are in effect for the
year ended 31 December 2025, there is no current tax impact for the Parent Company as it is not expected to be liable
for any top-up taxes. The Group has continued to apply the temporary mandatory exception to recognising and disclosing
information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments
to IAS 12 issued in May 2023.
8. Trade and other receivables
31 December
2025
£m
31 December
2024
£m
Trade and other receivables
32.9
–
Amounts owed by subsidiary undertakings
391.2
301.9
Prepayments and accrued income
5.7
4.9
Total trade and other receivables
429.8
306.8
Held within amounts owed by subsidiary undertakings is £391.2 million (2024: £301.9 million), which relate to loans with
formal agreements in place including interest rates set with reference to external funding arrangements, between the parent
and the subsidiary. The loans are unsecured and will be settled by cash in accordance with the repayment terms specified in
the agreement. The estimated credit losses of these loans has been considered and any ECL is considered to immaterial
due to the assessment of credit risk being low due to the positive net value of assets of the subsidiaries and future trading
projections.
Of the above amount, £185.3 million is due in greater than one year (2024: £175.7 million).
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the Parent Company Financial Statements
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
326
9. Trade and other payables
31 December
2025
£m
31 December
2024
£m
Trade and other payables
18.3
11.8
Amounts owed to subsidiary undertakings
497.0
269.6
Total trade and other payables
515.3
281.4
Held within amounts owed to subsidiary undertakings is £153.5 million (2024: £199.8 million), which relate to loans with
formal agreements in place including interest charges between the parent and the subsidiary.
Of the the above amount, £153.5 million is due in greater than one year (2024: £155.6 million)
10. Share capital and reserves
Capital within the Company is comprised of share capital and the share premium account, the fair value reserve
(which reflects movements in the fair value of assets classified as FVOCI) and retained earnings. Further information can
be found within note 12 of the consolidated financial statements.
10a. Share capital
31 December
2025
£m
31 December
2024
£m
Authorised
500,000,000 ordinary shares of 0.1 pence
0.5
0.5
Issued, called up and fully paid
306,304,680 (2024: 306,304,680) ordinary shares of 0.1 pence
0.3
0.3
0.3
0.3
At 31 December 2025, 3,851,220 (2024: 5,948,410) ordinary shares with a nominal value of £31.7 million (2024: £ nil) are
held in the Employee Benefit Trust to satisfy share scheme obligations.
10b. Dividends
Dividends were proposed, approved and paid as follows:
31 December
2025
£m
31 December
2024
£m
Proposed March 2024 (52.0 pence per share,approved April 2024, Paid June 2024)
156.2
Declared August 2024 (71.0 pence per share, paid October 2024)
213.6
Proposed March 2025 (121.0 pence per share, approved April 2025, paid May 2025)
366.5
–
Declared August 2025 (115.0 pence per share, paid October 2025)
348.9
–
Total dividends
715.4
369.8
The dividends proposed in March (approved in April) represent the final dividends paid in respect of 2023 and 2024 financial
years. The dividends declared in August are interim distributions in respect of 2024 and 2025.
A final dividend of 90.0 pence per share (£274.6 million) has been proposed in respect of the 2025 financial year.
Refer to the Chair’s Statement and Strategic Report for further detail.
The profit and loss account of the Parent Company does not include any unrealised profits, therefore the amount available
for distribution by reference to these accounts is £318.9 million. Interim accounts will be laid before Companies House prior
to payment of the 2025 Final Dividend in order to demonstrate that profits are available for distribution.
The Group also has substantial retained profits in its subsidiary companies which are expected to flow up to the Parent
Company in due course, such that surplus cash generated can continue to be returned to shareholders.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the Parent Company Financial Statements
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
327
11. Related party transactions
The Company has taken advantage of the exemptions permitted by Financial Reporting Standard 101.8 (k) and not disclosed
details of transactions with other wholly owned group undertakings.
The Board considers that only the Executive and Non-Executive Directors of Admiral Group plc are key management
personnel. See note 12 to the consolidated financial statements for further information.
12. Guarantees and contingent liabilities
The Admiral Money business has Special Purpose Entities (‘SPEs’) set up in order to secure additional funding through
its securitisation arrangements. The Company acts as guarantor for certain operational performance conditions of its
subsidiary, Admiral Financial Services Limited (AFSL), as seller and servicer for the SPEs, and indemnifies AFSL in respect of
any amount that would have been payable by AFSL for non-compliance with such performance conditions.
See note 11f of the consolidated financial statements further information regarding contingent assets/liabilities in relation
to the parent company.
13. Post balance sheet events
As announced in February 2026, the Group has reached an agreement to acquire 100% of the shares of Flock Limited,
a digital commercial fleet insurance provider. The transaction values the equity in Flock at £80m and is subject to regulatory
approval. The acquisition is expected to be completed in Q2 2026. The Company will provide funding to support the
acquisition within the Group.
14. Continued application of Financial Reporting Standard (FRS) 101 - Reduced Disclosure
Framework
Following the first time application of FRS 101 Reduced Disclosure Framework in 2015, the Board considers that it is in the
best interests of the Group for Admiral Group plc to continue to apply the FRS 101 Reduced Disclosure Framework in future
periods. A shareholder or shareholders holding in aggregate 5% or more of the total allotted shares in Admiral Group plc may
serve objections to the use of the disclosure exemptions on Admiral Group plc, in writing, to its registered office (Tŷ Admiral,
David Street, Cardiff CF10 2EH) no later than 30 June 2026.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Notes to the Parent Company Financial Statements
For the year ended 31 December 2025
Admiral Group Plc Annual Report and Accounts 2025
328
Alternative Performance Measures
Throughout this report, the Group uses a number of Alternative Performance Measures (APMs); measures that are not
required or commonly reported under International Financial Reporting Standards, the Generally Accepted Accounting
Principles (GAAP) under which the Group prepares its financial statements.
These APMs are used by the Group, alongside GAAP measures, for both internal performance analysis and to help
shareholders and other users of the Annual Report and financial statements to better understand the Group’s performance
in the period in comparison to previous periods and the Group’s competitors.
The table below defines and explains the primary APMs used in this report. Financial APMs are usually derived from financial
statement items and are calculated using consistent accounting policies to those applied in the financial statements, unless
otherwise stated. Non-financial KPIs incorporate information that cannot be derived from the financial statements but
provide further insight into the performance and financial position of the Group.
APMs may not necessarily be defined in a consistent manner to similar APMs used by the Group’s competitors. They should
be considered as a supplement rather than a substitute for GAAP measures.
Turnover
Turnover is defined as total premiums written (as below), Other insurance revenue, Other revenue
and interest income from Admiral Money from continuing operations. It is reconciled to financial
statement line items in note 14 to the financial statements.
This measure has been presented by the Group in every Annual Report since it became a listed
Group in 2004. It reflects the total value of the revenue generated by the Group and analysis of this
measure over time provides a clear indication of the size and growth of the Group.
The measure was developed as a result of the Group’s business model. The UK Car insurance
business has historically shared a significant proportion of the risks with Munich Re, a third party
reinsurance Group, through a co-insurance arrangement, with the arrangement subsequently being
replicated in some of the Group’s European insurance operations. Premiums and claims accruing to
the external co-insurer are not reflected in the Group’s income statement and therefore presentation
of this metric enables users of the Annual Report to see the scale of the Group’s insurance operations
in a way not possible from taking the income statement in isolation.
Total Premiums
Written
Total premiums written are the total forecast premiums, net of forecast cancellations written in the
underwriting year within the Group, including co-insurance. It is reconciled to financial statement line
items in note 14 to the financial statements.
This measure has been presented by the Group in every Annual Report since it became a listed
Group in 2004. It reflects the total premiums written by the Group’s insurance intermediaries and
analysis of this measure over time provides a clear indication of the growth in premiums, irrespective
of how co-insurance agreements have changed over time.
The reasons for presenting this measure are consistent with that for the Turnover APM noted above.
Underwriting result
(profit or loss)
For each insurance business an underwriting result is presented. This shows the insurance segment
result before tax excluding investment income, finance expenses, co-insurer profit commission and
other net income. It excludes both gross share scheme costs and any assumed quota share
reinsurance recoveries on those share scheme costs.
The calculations and compositions of the underwriting result are presented within Appendix 1
to these financial statements.
Loss Ratio
Loss ratios are reported as follows:
Reported loss ratios are expressed as a percentage, of claims incurred, on a gross basis net of XoL
reinsurance, divided by insurance revenue net of XoL reinsurance premiums ceded.
The reported loss ratios use the total claims, and earned premium and related income (instalment
income, administration fees and ancillary income where it is highly correlated to the core product).
It is understood that this is consistent with the approach taken by peers, and it is considered
to reflect the true profitability of products sold.
Core product loss ratios use the total claims and earned premiums for the core product only
(insurance premiums excluding instalment income, administration fees and ancillary income).
This measure is more consistent with that used previously, and are reflective of the performance
of the core product in a line of business.
The calculations and compositions of the loss ratios are presented within Appendix 1 to these
financial statements.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Glossary
Admiral Group Plc Annual Report and Accounts 2025
329
Expense Ratio
Expense ratios are reported as follows:
Reported expense ratios are expressed as a percentage, of expenses incurred, on a gross basis
excluding share scheme costs, divided by insurance revenue net of XoL reinsurance premiums
ceded.The reported expense ratios use the total expenses (excluding share scheme costs), and
earned premium and related income (instalment income, administration fees and ancillary income
where it is highly correlated to the core product). It is understood that this is consistent with the
approach taken by peers, and it is considered to reflect the true profitability of products sold.
Core product expense ratios use the total expenses (excluding share scheme costs) and earned
premiums for the core product only (insurance premiums excluding instalment income, administration
fees and ancillary income). This measure is more consistent with that used previously, and are
reflective of the performance of the core product in a line of business.
Written expense ratios are calculated using total expenses (excluding share scheme costs)
and written premiums, net of cancellation provision, for the core product only.
The calculations of the reported expense ratios are presented within Appendix 1 to the
financial statements.
Combined Ratio
Combined ratios are the sum of the loss and expense ratios as defined above. Explanation of these
figures is noted above.
Insurance service
margin
This is the reported insurance segment underwriting result, divided by insurance revenue net
of excess of loss premiums ceded. Reconciliation of the calculations are provided in Appendix 1.
Quota share result
The total result (ceded premiums minus ceded recoveries) from contractual quota share
arrangements, excluding the quota share reinsurer’s share of share scheme expenses, finance
expenses and onerous loss component. Reconciliation of the calculations are provided in Appendix 1.
Segment result
The profit or loss before tax reported for individual business segments, which exclude net share
scheme costs and other central expenses.
Return on Equity
Return on equity is calculated as profit after tax for the period attributable to equity holders of the
Group divided by the average total equity attributable to equity holders of the Group in the year. This
average is determined by dividing the opening and closing positions for the year by two. It excludes
the impact of discontinued operations.
Group Customers /
Risks
Group customer numbers reflect the total non-unique customers or number or risks, being the total
number of cars, vans, households and pets on cover at the end of the year, across the Group, and the
total number of annual travel insurance, Admiral Money and Admiral Business customers from
continuing operations.
This measure has been presented by the Group in every Annual Report since it became a listed
Group in 2004. It reflects the size of the Group’s customer base and analysis of this measure over
time provides a clear indication of the growth. It is also a useful indicator of the growing significance
to the Group of the different lines of business and geographic regions.
The measure has been restated from 2022 onwards to exclude Veygo policies, given the significant
fluctuations that can arise at a point in time as a result of the short-term nature of the product.
Solvency Ratio
The Solvency UK regulatory framework requires insurers to hold funds in excess of the Solvency
Capital Requirement (SCR). Own funds are available capital resources determined under Solvency
UK. The SCR is calculated at a Group level using the standard formula, to reflect the cost of mitigating
the risk of insolvency to a 99.5% confidence level over a one-year time horizon – equivalent to a 1
in 200 year event – against financial and non-financial shocks.
Total Shareholder
Return
Total Shareholder Return is a measure of the overall financial benefit a shareholder receives from
owning a company’s shares over a specific time-period. It reflects the percentage change in that
benefit over the period, assuming reinvestment of all income.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Glossary continued
Admiral Group Plc Annual Report and Accounts 2025
330
Additional Terminology
There are many other terms used in this report that are specific to the Group or the markets in which it operates. These are
defined as follows:
Accident year
The year in which an accident occurs. Claims incurred may be presented on an accident year basis
or an underwriting year basis, the latter sees the claims attach to the year in which the insurance
policy incepted.
Actuarial best
estimate
The probability-weighted average of all future claims and cost scenarios calculated using historical
data, actuarial methods and judgement.
ASHE
‘Annual Survey of Hours and Earnings’ – a statistical index that is typically used for calculating
the inflation of annual payment amounts under Periodic Payment Order (‘PPO’) claims settlements.
Claims reserves
A monetary amount set aside for the future payment of incurred claims that have not yet been
settled, thus representing a balance sheet liability.
Co-insurance
An arrangement in which two or more insurance companies agree to underwrite insurance business
on a specified portfolio in specified proportions. Each co-insurer is directly liable to the policyholder
for their proportional share.
Commutation
An agreement between a ceding insurer and the reinsurer that provides for the valuation, payment,
and complete discharge of all obligations between the parties under a particular reinsurance contract.
The Group typically commutes UK Motor Insurance quota share contracts after 24-36 months from
the start of an underwriting year where it makes economic sense to do so.
Earnings per share
Earnings per share represents the profit after tax attributable to equity shareholders, divided by the
weighted average number of basic shares.
Effective Tax Rate
Effective tax rate is defined as the approximate tax rate derived from dividing the tax charge
going through the Income Statement by the Group’s profit before tax. It is a measure historically
presented by the Group and enables users to see how the tax cost incurred by the Group compares
over time and to current corporation tax rates.
EIOPA
European Insurance and Occupational Pensions Authority: EIOPA is the European supervisory
authority for occupational pensions and insurance.
Expected credit loss
(ECL)
Expected Credit Loss (ECL) is the probability-weighted estimate of credit losses over the expected
life of a Financial Instrument.
Insurance market
cycle
The tendency for the insurance market to swing between highs and lows of profitability over time,
with the potential to influence premium rates (also known as the ‘underwriting cycle’).
Claims net of XoL
reinsurance
The cost of claims incurred in the period, less any claims costs recovered via salvage and
subrogation arrangements or under XoL reinsurance contracts. It includes both claims payments
and movements in claims reserves.
Excess of Loss
(‘XoL’) reinsurance
Contractual arrangements whereby the Group transfers part or all of the insurance risk accepted
to another insurer on an excess of loss (‘XoL’) basis (full reinsurance for claims over an agreed value).
Insurance premium
revenue
Insurance premium revenue reflects the expected premium receipts allocated to the period based
on the passage of time, adjusted for seasonality if required. It excludes ‘Other insurance revenue’
as defined below.
Insurance premium
revenue net of XoL
Insurance premium revenue less the ceded XoL reinsurance earned in the period.
Other Insurance
revenue
Insurance revenue minus insurance premium revenue as defined above. Other insurance revenue
is comprised of revenue that is considered non-separable from the core insurance product sold and
therefore under IFRS 17 is reported within insurance revenue. For the Group, this is typically the
instalment income, administration fees and any other non-separable income related to the Group’s
retained share of the underwritten products.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Glossary continued
Admiral Group Plc Annual Report and Accounts 2025
331
Net promotor score NPS is currently measured based on a subset of customer responding to a single question: On a scale
of 0-10 (10 being the best score), how likely would you recommend our Company to a friend, family
or colleague through phone, online or email. Answers are then placed in three groups; Detractors:
scores ranging from 0 to 6; Passives/neutrals: scores ranging from 7 to 8; Promoters: scores ranging
from 9 to 10 and the final NPS score is : % of promoters - % of detractors
Ogden discount rate The discount rate used in calculation of personal injury claims settlements in the UK. The rate
changed to +0.5% across the UK in H2 2024, from -0.75% in Scotland and NI, and -0.25% in England
and Wales. The +0.5% rate is expected to remain in place for up to the next five years.
Periodic Payment
Order (‘PPO’)
A compensation award as part of a claims settlement that involves making a series of annual
payments to a claimant over their remaining life to cover the costs of the care they will require.
Premium
A series of payments are made by the policyholder, typically monthly or annually, for part of, or all
of, the duration of the contract. Written premium refers to the total amount the policyholder has
contracted for, whereas earned premium refers to the recognition of this premium over the life
of the contract.
Profit commission
A clause found in some reinsurance and co-insurance agreements that provides for profit sharing.
Co-insurer profit commission is presented separately on the Income Statement, whilst reinsurer profit
commissions are presented within the reinsurance result, as a part of any recovery for incurred claims.
Quota share
reinsurance result
Admiral’s quota share (‘QS’) reinsurance result reflects the net movement on ceded premiums,
reinsurer margins and expected recoveries (claims and expenses, excluding share scheme charges)
for underwriting years on which quota share reinsurance is in place.
Regulatory
Solvency Capital
Requirement
(‘SCR’)
The Group’s Regulatory Solvency Capital Requirement (‘SCR’) is an amount of capital that it should
hold in addition to its liabilities in order to provide a cushion against unexpected events. In line with
the rulebook of the Group’s regulator, the PRA, the Group’s SCR is calculated using the Solvency II
Standard Formula, and includes a fixed capital add-on to reflect limitations in the Standard Formula
with respect to Admiral’s risk profile (predominately in respect of co-and reinsurance profit
commission arrangements and risks relating to PPOs. The Group’s current fixed capital add-on of £24
million was approved by the PRA during 2023.
The Group is required to maintain eligible Own Funds (Solvency II capital) equal to at least 100% of the
Group SCR. Both eligible Own Funds and the Group SCR are reported to the PRA on a quarterly basis and
reported publicly on an annual basis in the Group’s Solvency and Financial Condition Report.
Admiral separately calculates a ‘dynamic’ capital add-on and has used this this to report a solvency
capital requirement and solvency ratio at the date of this report. A reconciliation between the
regulatory solvency ratio and that calculated on a dynamic basis is included in note 3 to the Group
financial statements.
Reinsurance
Contractual arrangements whereby the Group transfers part or all of the insurance risk accepted to
another insurer. This can be on a quota share basis (a percentage share of premiums, claims and
expenses) or an excess of loss (‘XoL’) basis (full reinsurance for claims over an agreed value).
Scaled Agile
Scaled Agile is a framework that uses a set of organisational and workflow patterns for implementing
agile practices at an enterprise scale. Scaled agile at Admiral represents the ability to drive agile at
the team level whilst applying the same sustainable principles of the group.
Securitisation
A process by which a group of assets, usually loans, is aggregated into a pool, which is used to back
the issuance of new securities. A Company transfer assets to a special purpose entity (‘SPE’) which
then issues securities backed by the assets.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Glossary continued
Admiral Group Plc Annual Report and Accounts 2025
332
Solvency ratio
A ratio of an entity’s Solvency II capital (referred to as Own Funds) to Solvency Capital Requirement.
Unless otherwise stated, Group solvency ratios include a reduction to Own Funds for a foreseeable
dividend (i.e. dividends relating to the relevant financial period that will be paid after the balance
sheet date).
Special Purpose
Entity (‘SPE’)
An entity that is created to accomplish a narrow and well-defined objective. There are specific
restrictions or limited around ongoing activities. The Group uses an SPE set up under a
securitisation programme.
Ultimate loss ratio
A projected actuarial best estimate loss ratio for a particular accident year or underwriting year.
Underwriting year
The year in which an insurance policy was incepted.
Underwriting year
basis
Also referred to as the written basis. Claims incurred are allocated to the calendar year in which the
policy was underwritten. Underwriting year basis results are calculated on the whole account
(including co-insurance and reinsurance shares) and include all premiums, claims, expenses incurred
and other revenue (for example instalment income and commission income relating to the sale of
products that are ancillary to the main insurance policy) relating to policies incepting in the relevant
underwriting year.
Written/Earned
basis
An insurance policy can be written in one calendar year but earned over a subsequent calendar year.
Strategic Report
Corporate Governance
Financial Statements
Additional Information
Glossary continued
Admiral Group Plc Annual Report and Accounts 2025
333
Designed and produced by Radley Yeldar www.ry.com
This report is printed by Pureprint a CarbonNeutral® company. Both manufacturing mill and the printer are registered to the Environmental Management
System ISO14001 and are Forest Stewardship Council® (FSC) chain-of-custody certified. If you have finished reading the Report and no longer wish
to retain it, please pass it on to other interested readers or dispose of it in your recycled paper waste.
Registered Office
Tŷ Admiral
David Street
Cardiff
CF10 2EH
www.admiralgroup.co.uk