Admiral Group Plc (LSE:ADM) shares topped the FTSE 100 leaderboard on Thursday, up 6.6% as the insurer reported profits ahead of forecasts, even though it said "the market is softening and the outlook is uncertain".
Pre-tax profit raced up 90% to £839 million, including a strong contribution from the UK motor business, while the international business lowered its loss to £5 million.
Chief executive Milena Mondini de Focatiis said 2024 was "a remarkable year", as a 28% increase in turnover to £6.15 billion led to the 90% increase in profit, with 1.4 million new customers welcomed.
"We have emerged from several rather challenging years so when we saw conditions improve we were quick to respond. We were one of the first to reduce prices in response to easing inflation and cut rates the day after the favourable Ogden rate change announcement."
She hailed the UK Motor business was the main driver of the exceptional performance, but UK Household, Admiral Money, and the French and US Motor businesses also reported double-digit profits.
"As we enter into 2025, the market is softening, and the outlook is uncertain. Our priority is to stay efficient and agile so that we can adapt as needed and deliver long-term growth," she said.
Analysts at Peel Hunt said Admiral "has a healthy reserve position that can support profits via strong reserve releases".
"Overall, the 2024 results are better than we had pencilled in, for what we already assumed was going to be a strong underwriting year; however, the outlook for the next few years will be more challenging in our view."