Years of frustration for Admiral car insurance

Car insurer Admiral reported a 13% increase in profits yesterday but admits disappointment in a year because of the amount of the damage claim. Group, the second largest insurance company in the UK with 2.9 million subscribers, saw slump sharing a quarter in November after warning results for 2011 are most likely at the lower end of expectations. Cardiff-based owner of the Elephant and Bell and Confused.com comparison website revealed the figure of £ 299m, claiming that CEO Henry Engelhardt was much less than he thought it would. It is caused by 2009 and 2010, the proportion of claims arising as a potentially large, expensive claim, and last year they were classified as having the potential to generate high costs. Admiral reinsurance contract means that only about one-quarter of the risk policy on the books, but the effect of higher claim led to decreased levels of commission income, which dropped to 15% of the premium of 25%. Engelhardt said: "It was a disappointing year. Not because it was a bad year, but because so much is expected. ' He said the business model remains solid and the Admiral had no growth in 2012. "If you enjoy our operational progress must go now. I knew we had a lot of people who work hard every day to ensure success well into the future admiral, "he added. Slump share price of Admiral staff felt they receive free sharing under the employee share scheme. Admiral said around 5,500 staff this year to do the free sharing worth £ 3,000 for 2011. Admiral share soared 10% yesterday amid signs that say the trend improved in the fourth quarter of this year. Competitiveness of Companies in the price comparison site peaked in March but then fell month to month in response to the higher claim. Admiral added that it is a more stable year for price comparison site Confused.com, which posted revenue of £ 16.1m wide flat. "This is a strong performance in the market has become more competitive again, with higher amounts spent on the media by the major competitors," he said. Confused revenue grew by 8% to £ 77.6m but this was offset by increased promotional spending time.