Profit before tax at Admiral increased by almost a third (32%) in the first half of 2024 year-on-year, while its customer numbers also jumped by 12%.

The insurance firm said the increase in profits was a result of improved underwriting performance in the current year.

Admiral saw its insurance revenue also increase by 43% in this period to £3.21bn, while its operating profit also jumped by 35% to £323.7m.

The insurer's increase in customer numbers were a result of its “very competitive” market prices, it added.

Chief executive officer at Admiral, Milena Mondini de Focatiis, responded confidently to the results, stating that the firm has demonstrated its "resilience and agility in changing market dynamics".

She added: "Given our earlier pricing response to inflation in previous years, we have been able to be more competitive in H1 and this helped grow our customer base 12% to 10.5 million. This was driven by a record 5.5 million vehicles on cover in the UK and nearly half a million more customers across other product lines in the UK.

"We continue to evolve our core technical competences leveraging new data and technology. Our focus now is on unlocking the benefit for our customers of scaled agile for faster delivery and enhancing our capabilities in AI application."

In the six months to 30 June, Admiral also increased its earnings per share by 35% to 77.5 pence per share.

It added that looking ahead, the completion of the £115m More Than acquisition in March 2024 from Royal Sun Alliance will impact its profits for the full financial year.

Head of equity research at Hargreaves Lansdown, Derren Nathan, added: "It’s a delicate line to tread but Admiral is judging the market shrewdly, writing 60% more in insurance premiums than the same time last year.

"A falling combined ratio among core motorist customers means that Admiral is paying out a lower amount in insurance claims and expenses relative to premiums, which is helping to boost profitability. That and a comfortable financial position has allowed a generous hike in the dividend.

"There was also room for the modest £115m acquisition of More Than’s home and pet insurance business from rival Royal & Sun Alliance. It’s well placed to jump on similar opportunities if they arise, but for now it’s doing an excellent job of driving growth organically."

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