A strong performance in Admiral Group Plc's (LSE:ADM) UK motor insurance division led to an increase in pretax profits for 2021. International insurance, however, was down 21% at the FTSE-100 motor and home insurer.
After including restructuring costs in its pretax profit, the company reported £713.5mln in 2021, up from £608.2mln in 2020.
The group recorded pre-tax income of £769.0mln for the year ended December 31, 2021, up from £608mln in 2020.
Approximately 10,000 employees are to receive free shares worth up to £3,600 each under the employee share scheme, according to the insurer.
Admiral, one of the country's largest motor insurers, reported a 4% increase in turnover to £3.51bn in the year to December 31, 2021, and an increase in customers of 9% over 2020 to 8.36mln.
A 13% increase in international car insurance customers led to a 19% rise in revenues to £1.55bn.
Earnings per share were up 24% to 212.2p.
This year's final dividend is 118.0p per share, up from 86.0p last year. The payout includes a special dividend of 75.8p per share, which includes 46p related to the Penguin Portals disposal proceeds.
The UK household business contributed "decent profit" of £21mln, up from £15mln, but profit at the motor business was nearly £190mln higher than 2020, driving the year-on-year growth, the company said.
Global insurance revenues grew as customers grew, but the company lost money as Covid-related accident frequency benefits returned to more normal levels and competitive activity increased in most markets.
Despite budgeting a loss from the international insurance business following the profit in 2020, the company said, "the actual result was a little worse than plan. A number of things contributed to the outturn, not least quite a big unwind of the lower Covid-related frequency seen in the 2020 loss ratios and highly competitive conditions in most markets which led to reduced average premium per customer."
"In 2021 we improved in all our key metrics, including exceeding 8mln customers, increasing customer loyalty and recording exceptional profits of £769mln," said group chief executive officer Milena Mondini de Focatiis.
Last year, beyond UK Motor, the company added more than half a million customers, "now representing around 40% of total group customers. We grew by double digits in both our UK household and international businesses, despite challenging market conditions abroad, and our loans stock balance is now larger than pre-Covid levels," the chief executive added.
International car insurance customers were up 13% to 1.81mln.