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Admiral shares rise after third quarter

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Insurance firm Admiral has seen its shares rise strongly this morning on the back of a rise in turnover of more than 50% for the third quarter.

Group turnover at the Cardiff-based business, which employs 1,600 staff reached £446m for the quarter in a set of strong figures released to the London Stock Exchange.

The markets reacted strongly, with Admiral’s shares becoming the biggest riser in the FTSE in early trading. Figures released by the insurer showed that at the end of September Admiral provided insurance for 2.6 million vehicles, up 28% on the previous year.

The company is also expanding across Europe and saw turnover for its non-UK car insurance businesses rise by 87% in the third quarter when compared to the same period in 2009.

Henry Engelhardt, Admiral’s Chief Executive said: “I’m pleased to report that not much has changed since our 2010 interim results; the UK business remains the driving force of the Group’s success and we continue to develop our international businesses.
“Our UK car insurance operation continues to benefit from positive market conditions; we grew vehicle count by 28% year-on-year to over 2.3 million whilst also increasing premium rates.
“We have signed new quota share reinsurance deals for the UK for 2011 through to 2013.  These arrangements maintain Admiral’s use of both short and long-term reinsurance as part of its low risk, low capital approach to car insurance underwriting.”

Source : Wales Online