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Insurer Admiral's profits warning over increased claims | Insurer Admiral's profits warning over increased claims |
(40 minutes later) | |
Insurance group Admiral has issued a profits warning, blaming a higher level of claims in the third quarter of the financial year. | Insurance group Admiral has issued a profits warning, blaming a higher level of claims in the third quarter of the financial year. |
Admiral's share price dropped 20% at the opening of trading on Wednesday. | Admiral's share price dropped 20% at the opening of trading on Wednesday. |
The group, which employs 4,000 in Cardiff, Newport and Swansea, recorded a pre-tax profit of £266m for 2010, up 23% on 2009. | The group, which employs 4,000 in Cardiff, Newport and Swansea, recorded a pre-tax profit of £266m for 2010, up 23% on 2009. |
But it said this year's pre-tax profits could come in at the lower end of the market forecasts. | But it said this year's pre-tax profits could come in at the lower end of the market forecasts. |
In its interim managerial statement for the third quarter (Q3), the firm said: "If there is no reversal in Q4 of this higher than normal level of large claims, we anticipate that full year pre-tax profits will be towards the lower end of the range of analysts' estimates. | In its interim managerial statement for the third quarter (Q3), the firm said: "If there is no reversal in Q4 of this higher than normal level of large claims, we anticipate that full year pre-tax profits will be towards the lower end of the range of analysts' estimates. |
The company, under its banners of Admiral, Diamond, Bell and Confused.com, now insures about one in 10 cars on British roads. | The company, under its banners of Admiral, Diamond, Bell and Confused.com, now insures about one in 10 cars on British roads. |
Group chief executive Henry Engelhardt said he still expected to increase pre-tax profits on last year. | Group chief executive Henry Engelhardt said he still expected to increase pre-tax profits on last year. |
"Notwithstanding the continued higher level of large claims in the quarter, I expect us to once again report record profits for the full year, probably some 10% higher than last year," he said. | "Notwithstanding the continued higher level of large claims in the quarter, I expect us to once again report record profits for the full year, probably some 10% higher than last year," he said. |
"I am confident that with Admiral's enlarged customer base and significant combined ratio advantage we are in a strong position for sustained long-term growth and good news in 2012 and beyond." | "I am confident that with Admiral's enlarged customer base and significant combined ratio advantage we are in a strong position for sustained long-term growth and good news in 2012 and beyond." |
The company announced in January that it plans to site its new headquarters in Cardiff, which will be capable of housing up to 3,000 staff. | The company announced in January that it plans to site its new headquarters in Cardiff, which will be capable of housing up to 3,000 staff. |
It will bring together three sites in the Welsh capital at a location near the St David's shopping centre. | It will bring together three sites in the Welsh capital at a location near the St David's shopping centre. |
It also employs 1,400 people at its Swansea base in the SA1 quarter, and hosts a claims centre on the Langstone Business Park in Newport. | It also employs 1,400 people at its Swansea base in the SA1 quarter, and hosts a claims centre on the Langstone Business Park in Newport. |
Admiral is the only firm in Wales in the FTSE list of 100 top companies. | Admiral is the only firm in Wales in the FTSE list of 100 top companies. |