15 August 2024

2024 Interim Results Highlights

Admiral Group reports strong growth and increased profits for H1 2024

*1 Alternative Performance Measures – refer to the end of the report for definition and explanation.

Over 12,500 employees each receive free share awards worth up to £1,800 under the employee share scheme based on the interim 2024 results.

Comment from Milena Mondini de Focatiis, Group Chief Executive Officer:
“We have delivered a strong set of results in the first half, growing profits, revenues and customer numbers, demonstrating our resilience and agility in changing market dynamics.

“Given our earlier pricing response to inflation in previous years, we have been able to be more competitive in H1 and this helped grow our customer base 12 per cent to 10.5 million. This was driven by a record 5.5 million vehicles on cover in the UK and nearly half a million more customers across other product lines in the UK.

“Our Group turnover increased 43 per cent to £3.2 billion and Group profit has increased by 32 per cent to £310 million, led by strong UK Motor performance. We maintained a strong capital position with a solvency ratio of 198 per cent after a higher interim dividend per share of 71p.

“We continue to evolve our core technical competences leveraging new data and technology. Our focus now is on unlocking the benefit for our customers of scaled agile for faster delivery and enhancing our capabilities in AI application.

“I am pleased to announce that our science-based targets have been approved by the SBTi and our ESG score was recently upgraded to AAA by MSCI.

“Looking ahead, we remain well-positioned for continued success.

“As always, I am particularly proud of our people and hearing how they have been there for our customers. Because of their hard work, they have been an instrumental part of our financial strength and our success so far.”

Dividend
The Board has declared an interim dividend of 71.0 pence per share (2023 interim: 51.0 pence per share) representing a normal dividend (65% of post-tax profits) of 51.3 pence per share and a special dividend of 19.7 pence per share. The interim dividend will be paid on 4 October 2024. The ex-dividend date is 5 September 2024 and the record date is 6 September 2024.

Management presentation
Analysts and investors will be able to access the Admiral Group management presentation which commences at 9.30 BST on Thursday 15 August 2024 by registering at the following link to attend the presentation in person, or access the presentation live via webcast or conference call: 2024 Interim Results | Admiral Group Plc. A copy of the presentation slides will be available at the following link: Results, reports and presentations | Admiral Group Plc (www.admiralgroup.co.uk).

H1 2024 Group overview

*1 Alternative Performance Measures – refer to the end of the report for definition and explanation.
*2 Reported Group loss and expense ratios are calculated on a basis inclusive of all insurance revenue – this includes insurance premium revenue, net of excess of loss reinsurance plus revenue from underwritten ancillaries, an allocation of instalment income and administration fees/related commissions. See glossary for an explanation of the ratios and Appendix 1a for a reconciliation of reported loss and expense ratios, and insurance service margin, to the financial statements.
*3 Refer to note 14 for reconciliation to statutory income statement measures.
*4 For % change vs 2023, + shows favourable movements, - shows unfavourable movements. Nm – not meaningful.

Group Highlights
Admiral reports strong growth in its UK motor insurance business and increased profits for the first half of 2024. Highlights are as follows:

• 10.53 million Group customers at 30 June 2024, a 12% increase driven by UK Motor where over the past six months Admiral's prices were very competitive relative to the market
• Group turnover 43% higher driven both by growth in the number of customers and the impact of higher average premiums across the Group
• Group pre-tax profits of £310 million, 32% higher than the first half of 2023, driven by an improved current year underwriting performance and continued significant prior period releases
• The UK Insurance business generated strong year-on-year growth in customers (+17%) and turnover (+57%). The increase in turnover is due to the significant rate increases in 2022 and 2023 in response to the elevated claims inflation experienced over the past few years. Admiral decreased rates modestly around the start of 2024 as market rates were still increasing, leading to an improved competitive position and significant growth in UK Motor customer numbers
• UK Insurance profit was £363 million, 20% higher than H1 2023 (£304 million), as a result of the higher average premiums now earning through which positively impacted the current period combined ratio, along with continued significant releases of prior period claims reserves
• Positive performance from UK Household, with pre-tax profit of £11 million (H1 2023: £9 million) driven by favourable prior year development and an improved current year combined ratio. Customer numbers grew by 8% to 1.8 million
• The More Than acquisition completed in March 2024, with renewals having started in late July 2024 for UK Household and due to commence later in August for UK Pet
• An improved International Insurance result (profit of £2 million v loss of £8 million in H1 2023), featuring a positive result in US Motor and a small profit in European Motor. The result includes the adverse impact of updating Italian reserves for the recent Milan court update on injury claims costs
• Another encouraging period for Admiral Money, where loan balances were flat half-year on half-year, but higher than 31 December 2023, and profit increased to £6.8 million (H1 2023: £2.7 million).
  
  

Earnings per share
Earnings per share for the first half of 2024 is 77.5 pence (H1 2023: 57.6 pence), with the increase of 35% slightly higher than the growth in pre-tax profit (32%). This is as a result of a lower effective tax rate in the first half of 2024.

Return on equity
The Group’s return on equity was 45% in the first half of 2024, 6 points higher than the 39% reported for H1 2023. The increase is the result of significantly higher profit recognised in H1 2024, partially offset by higher average equity.

Dividends and solvency
The Group’s dividend policy is to pay 65% of post-tax profits as a normal dividend and to pay a further special dividend comprising earnings not required to be held in the Group for solvency, buffers or purchasing shares for the Group’s employee share plans. No shares are expected to be purchased for the share plans until 2026.

The Board has declared an interim dividend of 71.0 pence per share (approximately £213 million) split as follows:

• 51.3 pence per share normal dividend
• A special dividend of 19.7 pence per share

The 2024 interim dividend reflects a pay-out ratio of 92% of earnings per share. 71.0 pence per share is 39% higher than the interim 2023 dividend (51.0 pence per share), in line with the growth in earnings per share.

The 2024 interim dividend payment date is 4 October 2024, ex-dividend date 5 September 2024 and record date 6 September 2024.

The Group reports a strong post-dividend solvency ratio of 198%. The ratio has decreased by 2 percentage points compared to the end of 2023, the strong underwriting performance in UK Motor being more than offset by a reduction of circa 11 points as a result of the exclusion of intangible assets recognised from the More Than acquisition, and an increase in the solvency capital requirement as a result of growth in the business.

The Group’s results are presented in the following sections:

• UK Insurance – including UK Motor (Car and Van), Household, Travel and Pet
• International Insurance – including L’olivier (France), Admiral Seguros (Spain), ConTe (Italy), and Elephant (US)
• Admiral Money
• Other Group Items – including Admiral Pioneer and other central costs

Economic background
Whilst remaining higher than its long-term average, the elevated inflation observed over the course of 2022 and 2023 appeared to be reducing in the first half of the year, including in the Group’s main UK market. Price increases implemented to mitigate the impact of the higher inflation have resulted in a stronger current period underwriting performance compared to the prior year, particularly in UK Motor.

Admiral focuses on medium term profitability and has maintained a disciplined approach to business volumes. The customer base in UK Motor grew significantly in H1 2024 as price reductions by Admiral around the start of the year significantly improved the competitive position. The Group continues to set claims reserves prudently.

Admiral Money continuously evolves its underwriting criteria to reflect the macroeconomic environment. The business continues to hold appropriately cautious provisions for credit losses.

UK Insurance

*1 Alternative Performance Measures – refer to the end of this report for definition and explanation.

Split of UK Insurance profit before tax

Key performance indicators

Highlights for the UK Insurance business include:

• In UK Motor Insurance:
  • An increase in customer numbers of 15% to 5.48 million compared to a year earlier (30 June 2023: 4.76 million). As noted above, after a period of prices moving higher to address significant claims inflation, Admiral reduced prices around the start of the year and significantly improved competitiveness. Turnover increased as a result by 58% to £2.4bn (H1 2023: £1.5bn)
  • Profit growth of 20% to £358.9 million (v £298.2 million) as a result of higher earned premiums contributing to a strong current period underwriting result, along with continued significant reserve releases on prior periods.
• In UK Household Insurance:
  • An increase in customer numbers of 8% to 1.81 million compared to a year earlier (30 June 2023: 1.67 million), with growth continuing despite further rate increases in response to high inflation. Turnover increased as a result by 37% to £214.6 million (H1 2023: £156.6 million)
  • Profit growth of 31% to £11.3 million (v £8.7 million) as a result of strong releases on back year reserves, along with a lower current period combined ratio driven by the higher earned premiums and relatively benign weather.
• In UK Travel and Pet Insurance:
  • Both business lines continued to grow customers and turnover. The Travel result was slightly better than break-even, whilst the increased loss in Pet was largely due to around £3 million of IT integration costs in relation to the More Than acquisition.
• Acquisition of More Than:
  • In March 2024, the Group completed its first significant acquisition of the direct Household and Pet insurance renewal rights, the More Than brand and the transfer of circa 300 colleagues from Royal Sun Alliance ('RSA'). Liabilities relating to existing policies and those up to renewal remain with RSA
  • The integration of the business is progressing well, with renewals having commenced in July 2024 for Household and due to start in later in August 2024 for Pet. The H1 2024 results therefore do not include any premium income or claims costs in relation to the acquired business. See note 13 to the financial statements for further details.

UK Motor Insurance

*1 Alternative Performance Measures – refer to the end of this report for definition and explanation.
*2 Alternative Performance Measures – refer to Appendix 1 for reconciliation to statutory income statement measures.
*3 Insurance expenses and quota share reinsurance result excludes gross and reinsurers’ share of share scheme charges respectively. For share scheme charges refer to Other Group Items.
*4 XoL refers to Excess of Loss (non-proportional) reinsurance; see glossary at end of report for further information.

Key performance indicators

*1 Alternative Performance Measures – refer to the end of this report for definition and explanation.
*2 Reported Motor loss ratio defined as insurance claims incurred and claims releases divided by insurance revenue, net of excess of loss reinsurance. Reconciliation in Appendix 1b.
*3 Reported Motor expense ratio defined as insurance expenses divided by insurance revenue, net of excess of loss reinsurance. Reconciliation in Appendix 1b.
*4 Reported Motor insurance service margin defined as underwriting result divided by insurance revenue, net of excess of loss reinsurance.
*5 Core motor loss ratio defined as insurance claims incurred and claims releases divided by core product insurance premium revenue, net of excess of loss reinsurance. Presented to enable analysis of core motor result excluding other ancillary income. Reconciliation in Appendix 1b.
*6 Core motor expense ratio defined as insurance expenses divided by core product insurance premium revenue, net of excess of loss reinsurance. Reconciliation in Appendix 1b.
*7 Core motor written expense ratio defined as insurance expenses divided by core product written insurance premium for the current underwriting year, net of excess of loss reinsurance.
*8 Other revenue per vehicle includes other revenue included within insurance revenue. See “Other Revenue” section for explanation and reconciliation.

UK Motor profit in the first six months of 2024 was £358.9 million, 20% higher than the same period in 2023 (H1 2023: £298.2 million) as a result of an improved current period combined ratio driven by higher average premiums now earning through, following rate increases over the course of 2022 and 2023, along with continued positive development of prior year claims. This was partly offset by recognising the reinsurer's share of releases on underwriting years 2021 – 2023, and minimal reinsurance recoveries on underwriting year 2024 due to the low combined ratio. Higher investment income, as a result of increased assets and higher average return, is somewhat offset by the higher net insurance finance expenses, as the discounting of claims incurred in higher interest rate environments in 2022 and 2023 is now unwinding.

Customer numbers increased by 15% year-on-year, with the majority of that impact (11%) in H1 2024. This was primarily due to the improved competitive position noted above. Gross earned premium at £1,448.6 million is 51% higher than H1 2023, reflecting growth in customer numbers over the last 12 months and significantly higher average premiums.

The core motor expense ratio decreased to 19.7% (H1 2023: 23.4%), driven by the increased earned premium, whilst the written expense ratio also decreased to 15.5% (H1 2023: 19.5%) also mainly a result of higher average premiums. Actual insurance expenses are higher in H1 2024, driven by the growth in customers resulting in significantly higher acquisition costs, along with the continuing impact of inflationary wage pressures and amortisation of intangible assets (mainly software).

Claims Incurred
Claims inflation, whilst still high, is reducing, with Admiral's current estimate of average claims cost inflation for full year 2024 (compared to full year 2023) being approximately in high single digits (2023: around 10%). There has been no significant change in claims frequency.

The longer-term impacts of inflation on bodily injury claims remains uncertain. Admiral has not observed material changes in inflation for bodily injury claims settled in 2024 to date, when compared to 2023. However, an allowance in the best estimate reserve continues to be held to reflect the potential impacts of higher than historic levels of future wage inflation on certain elements of large bodily injury claims reserves.

There remains uncertainty within motor claims across the market arising from inflation, and future developments relating to both whiplash reforms, regulatory developments and the Personal Injury ('Ogden') discount rate.

The review of the Ogden discount rate commenced in July 2024, with the new rate, and any change to methodology, due to be announced by 11 January 2025. Admiral's assumption for the Ogden discount rate within best estimate reserves continues to be the prevailing rate of minus 0.25 percent.

In addition, in line with the FCA’s multi-firm review into total loss claims valuations, Admiral is conducting a review of its total loss and related processes which considers current practice and customer outcomes in the recent past. The work is likely to conclude that some action is required.

Although the process remains ongoing and there is uncertainty over the final position, when fully concluded the cost is not expected to have a significant impact on the financial statements. Taking account of current information, an appropriate amount is included within insurance contracts liabilities at 30 June 2024.

Admiral continues to hold a prudent risk adjustment above best estimate reserves, with a consistent confidence level being maintained (30 June 2024 and 31 December 2023: 93rd percentile; 30 June 2023: 94th percentile), given the relatively strong releases in the best estimate, and growth in the UK motor book. The reserve risk distribution from which the percentile is selected is consistent with 2023.

The core motor loss ratio has reduced to 59.2% (H1 2023: 65.8%) with offsetting movements in the current period loss ratio and prior year reserve releases, as follows:

*1 Reported core motor loss ratio shown on a discounted basis, excluding unwind of finance expenses.

The core Motor loss ratio decreased by 6.6 points which can be primarily attributed to:

• The rate increases that were put through over the course of 2022 and 2023 leading to a very significant improvement in the current period loss ratio. Note that the current period loss ratio reflects the earned loss ratio for H1 2024. The loss ratio development for underwriting year 2024 is expected to be less favourable than the progression seen on underwriting year 2023.
• The benefit from prior period releases decreased by 10.8 points to 16.1%. This includes both the positive development of the best estimate reserve and the unwind of the risk adjustment for prior period claims.

The lower release percentage is mainly a result of the significant increase in earned premium, with a strong level of absolute releases for the core product of £215.9 million (H1 2023: £237.1 million; H2 2023: £155.7 million) continuing, largely due to favourable development in the best estimate loss ratios (as noted, the risk adjustment remained at the same confidence level at 30 June 2024 relative to 31 December 2023).

Quota share reinsurance
Under IFRS 17, Admiral’s quota share reinsurance result reflects the net movement on ceded premiums, reinsurer margins and expected recoveries (claims and expenses) for each underwriting year on which quota share reinsurance is in place (primarily 2022 underwriting year onwards, with the majority of contracts for 2021 and prior now commuted).

Admiral’s UK motor quota share contracts operate on a funds withheld basis, with Admiral retaining ceded premium (net of the reinsurer margin) and then covering claims costs and expenses. If an underwriting year is not profitable, investment income is allocated to the withheld fund and used to delay the point at which cash recoveries are collected from the reinsurer. Other features of the arrangements include expense ratio caps and commutation options for Admiral that become available 24-36 months after the start of the underwriting year.

The quota share reinsurance result by underwriting year, and remaining claims asset position at 30 June 2024, is as follows:

Quota share reinsurance result

*¹ This balance relates to 2018. No further income statement impact expected on commutation.

The adverse quota share result in H1 2024 is driven by:

• The favourable developments in the underlying loss ratios on underwriting years 2021 - 2023, which results in the reversal of quota share recoveries previously recognised. In underwriting year 2023, the significant favourable development in the loss ratio more than offset the earned recovery of expense commissions in the period.
• Only the cost of the quota share reinsurer margin is recognised on underwriting year 2024. No quota share recoveries have been recognised at H1 2024 due to the booked combined ratio being below 100% as a result of the strong current underwriting year performance.

Co-insurer profit commission
Co-insurer profit commission is lower in H1 2024 (£24.5 million) compared to H1 2023 (£44.8 million). In H1 2024, profit commission has been recognised on underwriting years 2020 and prior following continued favourable development in both the best estimate and release of the risk adjustment. There continues to be no profit commission recognised on underwriting years 2021 and onwards, due to the current booked combined ratio positions on those years. Profit commission on underwriting years 2023 and 2024 will be recognised after accounting for the cumulative losses recognised on a booked basis on underwriting years 2021 and 2022.

Net investment income
Net investment income benefitted from higher investment income, partially offset by increased net insurance finance expenses. Investment income grew by 37% to £69.5 million (H1 2023: £50.9 million), as a result of increased assets (due to strong growth in premium collected) and higher average return. Further information on the Group’s investment portfolio and the income generated in the period is provided later in the report.

Net insurance finance expense reflects the unwind of the discounting benefit recognised when claims are initially incurred. The expense has increased notably in H1 2024 (£38.3 million; H1 2023 £25.3 million) as a result of the unwind of discounting benefit recognised from early 2022 onwards, when there was a significant increase in risk-free interest rates. A significant proportion of the insurance finance expense in H1 2024 relates to claims incurred during 2022 and 2023.

Other revenue

UK Motor Insurance Other revenue

*1 Premium from underwritten ancillaries is recognised within the insurance service result (underwriting result). Other income from non-underwritten products and fees is included within other net income, below the underwriting result but part of the insurance segment result.
*2 Instalment income and administration fees are recognised within insurance revenue (% aligned to Admiral’s share of premium, net of co-insurance) and other revenue (% aligned to co-insurance share of premium).
*3 Claims costs relating to underwritten ancillary products, along with an allocation of related expenses, are recognised within the insurance result. Expenses allocated to the generation of revenue from non-underwritten ancillaries are recognised within other net income.
*4 Other revenue per vehicle (before internal costs) divided by average active vehicles, rolling 12-month basis. Presented here based on all ancillary income.

Admiral generates other revenue from a portfolio of insurance products that complement the core car insurance product, and also fees generated over the life of the policy. The most material contributors to other revenue continue to be:

• Profit earned from Motor policy upgrade products underwritten by Admiral, including breakdown, car hire and personal injury covers
• Revenue from other insurance products, not underwritten by Admiral
• Fees such as administration and cancellation fees
• Interest charged to customers paying for cover in instalments.

Under IFRS 17, income from underwritten ancillaries and an allocation of instalment income and administration fees in line with Admiral’s gross share of the core motor product premium, are included within Insurance Revenue in the underwriting result. The remaining income from instalment income and fees, as well as income from other non-underwritten ancillary products is presented in other net income.

Overall contribution increased to £152.2 million (H1 2023: £119.5 million), primarily as a result of the growth in customers, along with a higher proportion of customers choosing to pay via monthly payments resulting in increased instalment income.

Other revenue was equivalent to £62 per vehicle (gross of costs), with net other revenue per vehicle at £52 per vehicle, both up compared to 2023 in line with the increased contribution.

UK Household Insurance

*1 Alternative Performance Measures – refer to the end of this report for definition and explanation
*2 Insurance expenses and quota share reinsurance result excludes gross and reinsurers’ share of share scheme charges respectively. For share scheme charges refer to Other Group Items.
*3 XoL refers to Excess of Loss (non-proportional) reinsurance; see glossary at end of report for further information.

Key performance indicators 

*1 Alternative Performance Measures – refer to the end of this report for definition and explanation 
 *2 Impact of severe weather and subsidence on reported loss ratios within expectations across all reporting periods therefore not separately reported

The UK Household insurance business reported strong growth in turnover which increased by 37% to £214.6 million (H1 2023: £156.6 million). The number of households insured increased by 8% to 1.81 million (30 June 2023: 1.67 million), despite continued price increases made by Admiral during the first half of 2024 to reflect continued higher claims inflation. Competitors are also increasing prices though Admiral’s competitiveness in the price comparison channel is relatively unchanged.  

Profit before tax for the period was £11.3 million (H1 2023: £8.7 million), the increase arising as a result of strong releases on prior periods, along with a lower current period combined ratio driven by higher earned premiums, with H1 2023 benefiting from a one-off recognition of reinsurer profit commission following a commutation.

The reported loss ratio decreased significantly to 49% (H1 2023: 71%) as a result of strong prior period releases contributing 19% (H1 2023: 3%), with a current period loss ratio of 68%, improving by 6 points from H1 2023 (H1 2023: 74%).

The impact of weather was not significant in either period. Whilst there was some impact of freeze, flood and storm events, this was considered within expectations for weather and therefore the loss ratio impact has not been separately disclosed.

Prior period releases are significant and primarily reflect the unwind of best estimate reserves in relation to the freeze event at the end of 2022, with a significant proportion of settlements on those events now complete.

Admiral’s expense ratio was 28%, an improvement from the first half of 2023, as a result of the earning through of increased average premiums. Higher absolute expenses were driven by higher acquisition costs following the growth in customers, and a small charge for IT integration costs related to the More Than acquisition.

The quota share result for the period of a loss of £32.8 million (H1 2023: profit of £6.2 million) arises as a result of the sharing of the positive underlying underwriting result with no profit commission currently recognised on the 2023 and 2024 underwriting years.

UK Insurance Co- and Reinsurance
Admiral makes significant use of proportional risk sharing agreements (co-insurance and quota share reinsurance) which include profit commission terms that allow Admiral to retain a significant portion of the profit generated.

Munich Re and its subsidiary entity Great Lakes currently underwrite 40% of Admiral’s UK Car insurance business. The details of these arrangements with Munich Re are as set out in the 2023 Annual Report, with agreements in place until at least the end of 2026.

Admiral has other UK Car quota share agreements covering 38% of business written until 2024 and expects to conclude on extension options in Q3.

For UK Household insurance, Admiral retains 30% and has quota share contracts covering 70% of the business. Good progress is being made on renewal options for the 30% quota share contract that expires at the end of 2024.

The Group tends to commute its UK Motor insurance quota share agreements 24-36 months after inception of an underwriting year, assuming there is sufficient confidence in the profitability of the business covered by the reinsurance contract and having assessed the solvency implications of the commutation for the Group and its underwriting subsidiary. During the first half of 2024, there were UK motor commutations on the majority of remaining reinsurance contracts covering 2020 and prior underwriting years (most having been commuted previously), along with the majority of underwriting year 2021.

International Insurance financial review

*1 Alternative Performance Measures – refer to the end of this report for definition and explanation.
*2 Insurance expenses excluding share scheme costs.
*3 Quota share reinsurance result within the segment result excludes reinsurers’ share of share scheme costs.
*4 Costs related to the settlement of a historic Italian tax matter during 2023 are excluded from the International Insurance result and presented within Group other costs, given that these are not reflective of the underlying trading performance of the International Insurance business.

Key performance indicators        

*1 Alternative Performance Measures – refer to the end of this report for definition and explanation

International Motor Insurance – Geographical analysis^*1

*1 Alternative Performance Measures – refer to the end of this report for definition and explanation

Split of International Insurance result

Admiral’s International insurance businesses reported a small reduction in customer numbers at 30 June 2024 to 2.12 million (30 June 2023: 2.21 million), driven by a continued reduction in the US, and a reduction in Italy as the business prioritised margin over growth. Turnover fell slightly to £450.2 million (H1 2023: £464.3 million), driven by a significant reduction in the US, mostly offset by continued turnover growth in the European businesses as a result of higher average premiums.
The combined result for the segment was an overall profit of £1.7 million (H1 2023: loss of £7.6 million), driven by a significantly improved result in the US offset by lower profits in the European motor businesses.

The combined ratio increased slightly to 100.8% (H1 2023: 99.6%), driven by a higher loss ratio as a result of adverse claims development in Italy (refer below for more details), which was largely offset by improvements in the US loss ratio and a decrease in the expense ratio, across all businesses, to 29.1% (H1 2023: 31.6%). The lower expense ratio arises from the combined effect of higher premiums as well as lower acquisition expenses and an ongoing focus on the cost base.

The European insurance operations in Spain, Italy and France insured 1.87 million vehicles at 30 June 2024 – 3% lower than a year earlier (30 June 2023: 1.93 million). Motor turnover was up 4% to £333.4 million (H1 2023: £321.1 million), driven by continued price increases following continued focus on improving loss ratios.

The combined European Motor profit was £1.1 million (H1 2023: £4.7 million), with the combined ratio increasing to 104.7% (H1 2023: 93.2%).

The lower European motor profit results from adverse claims cost development on prior underwriting years in ConTe in Italy, largely due to the significant increase to the settlement inflation rate for large bodily injury claims provided by the court of Milan (known as the Milano tables) reducing profit by circa £12 million. Action has been taken with price increases to mitigate the ongoing impact of the change. Admiral continues to focus on medium term profitability through risk selection and reducing expenses. Vehicles insured decreased by 6% to 1.00 million (30 June 2023: 1.07 million) as a result of pricing action, with turnover increasing by 2% to £148.2 million (H1 2023: £145.1 million).

L’olivier assurance (France) continued to grow, with the customer base increasing by 4% to 0.43 million at 30 June 2024 (30 June 2023: 0.41 million), and turnover increasing by 4% to £117.5 million (H1 2023: £113.4 million). The business reported notably increased profits in H1 2024 as a result of its focus over the past year on risk selection and loss ratio improvements, as well as cost reduction.

In Admiral Seguros (Spain) customer numbers fell by 3% to 0.44 million over the past year (H1 2023: 0.46 million), as the business increased prices to target loss ratio improvements. The business continues to focus on sustainable growth through distribution diversification through the broker channel and other partnerships. The result for the first half was nearing break even.

In the US, Admiral underwrites motor insurance through its Elephant Auto business. In the first half of 2024, as expected, Elephant delivered a significantly improved result due to strong management action on pricing, underwriting and expense control.

The Group is considering the best way forward for the Elephant business and team and will provide an update as soon as possible. The focus in the meantime remains on protecting the pre-tax result.

Admiral Money

*1 Includes £1.9 million intra-group interest expense (H1 2023: £0.8 million, FY 2023: £1.5 million).
*2 Alternative Performance Measures – refer to the end of this report for definition and explanation

Admiral Money distributes and underwrites unsecured personal loans and car finance products for UK consumers through the comparison channel, credit scoring applications and direct to consumers via the Admiral website. The aim of the proposition is to provide customers with affordable guaranteed rates, ensuring transparency and certainty.

Gross loans balances totaled £1,029.2 million at the end of June 2024 (31 December 2023: £956.8 million; 30 June 2023: £1,033.9 million), with a £87.4 million (31 December 2023: £81.7 million; 30 June 2023: £74.6 million) expected credit loss provision. This leads to a net loans balance of £941.8 million (31 December 2023: £875.1 million; 30 June 2023: £959.3 million).

In 2024, Admiral Money has continued to focus on writing high quality loans and the business generated a pre-tax profit of £6.8 million (improving from £2.7 million in H1 2023), the fifth consecutive half year of profit for the business. The increase in profit was largely driven by strong net interest income growth of 10% to £34.1 million (30 June 2023: £30.9 million) resulting from higher net interest margins, as well as a reduced provision charge driven by a focus on high quality risk selection and a more stable economic environment.

Credit loss models reflect the latest economic assumptions and appropriate post model adjustments remain in place to maintain an appropriately cautious provision. The provision to loans balance coverage ratio is consistent at 8.5% (31 December 2023: 8.5%; June 2023: 7.2%), with a £5.7 million increase in absolute provision size in the period to £87.4 million. The provision includes post model adjustments of £8.5 million (31 December 2023: £9.2 million; June 2023: £12.6 million), reflecting the current uncertainty in the UK economic environment.

Admiral Money is funded through a combination of internal and external funding sources. The external funding is secured against certain loans via a transfer of the rights to the cash-flows to two special purpose entities (“SPEs”). The securitisation and subsequent issue of notes via SPEs does not result in a significant transfer of risk from the Group.

Other Group Items

Other Group items financial review

*1 Share scheme charges are shown net of the reinsurers' share of share scheme costs. See Appendix 1a for further details.
*2 Finance charges within other group items include £0.9 million (H1 2023: £0.9 million, FY 2023: £1.7 million) that relate to intra-group arrangements, with the corresponding income presented within the UK Insurance result.

Share scheme charges relate to the Group’s two employee share schemes. The increase in charge in the period is driven primarily by higher vesting assumptions.

Other central costs consist of Group-related expenses and include an allocation of group employee costs as well as the cost of a number of significant Group projects. Additional expenses in H1 2024 relative to H1 2023 arise primarily from projects costs for the internal capital model development and the strategic review of the US insurance business, as well as an increased allocation of group employee expenses to central costs.

Admiral launched Admiral Pioneer in 2020 to focus on new product diversification opportunities. Pioneer businesses include Veygo (short term and learner driver car insurance in the UK) and Admiral Business (small business insurance in the UK). Pioneer reported a loss of £5.0 million in H1 2024 (H1 2023: £12.7 million). The adverse result in H1 2023 was impacted by an increase in large claims experience in Veygo (one large claim in particular); the improved result in H1 2024 is the result of better claims experience, with the loss reflecting continued investment in the development of new products.

Business development costs increased to £13.9 million (H1 2023: £7.9 million), primarily as a result of non-recurring transaction and other costs of £8.5 million related to the More Than acquisition.

Finance charges of £14.1 million (H1 2023: £6.3 million) primarily related to interest on the £250 million subordinated notes issued in July 2023 at a rate of 8.5%, with the charge in H1 2023 based on the original £200 million subordinated loan notes issued in July 2014. The increase in finance charges is partially offset by the increase in other interest and investment income.

A loss of £2.6 million was attributed to compare.com in H1 2023 following its disposal. As part of the disposal, the Group received shares as a minority interest shareholder of the acquirer. In H1 2024 the Group sold those shares, and realised a one-off gain of £12.5 million.

Group capital structure and financial position

Group capital position (estimated)

*1 Solvency capital requirement includes updated, unapproved ‘dynamic’ capital add-on.

At the date of this report, the Group reports a strong post-dividend solvency ratio of 198%, 2 percentage points lower than reported with the Group’s 2023 year end results.

The increase in own funds at H1 2024 is the result of the strong underwriting performance in UK Motor in the current period, and prior period releases, offset by a reduction of around 11 points of solvency ratio as a result of the de-recognition of intangible assets recognised in the More Than acquisition due to Solvency II rules, and a higher foreseeable dividend. The increased solvency capital requirement arises primarily from the growth in the UK motor book.

The Group solvency on a regulatory basis as at 30 June 2024 is estimated at 185% (31 December 2023: 182%). In the regulatory basis, the capital add-on approved by the PRA is fixed and so does not reflect changes in risk profile (primarily profit commission risk) across the underwriting cycle.

Admiral continues to develop its partial internal model to form the basis of future capital requirements and entered a pre-application process with its regulators during H1 2024. Once feedback is received, Admiral expects to be able to communicate timelines for a full application for model approval. In the interim period before model approval, the current capital add-on of £24 million will continue to be used to calculate the regulatory capital requirement.

Solvency ratio sensitivities

*1 Increased sensitivity due to growth in exposure and relative profitability of the most recent underwriting years.
*2 H1 2023 credit spread sensitivity restated to include benefit of offsetting movements in the volatility adjusted yield curve used for discounting liabilities. In addition, the H1 2024 stress has been recalibrated to include only assets that are materially exposed to corporate bond spread risk, resulting in a reduction in the overall impact on solvency ratio.
*3 Refer to note 7 to the financial statements for further information on the ‘severe’ scenario.

Investments and cash

Investment strategy
Admiral Group’s investment strategy focuses on capital preservation and low volatility of returns. The business follows an asset liability matching strategy to control interest rate, inflation and currency risk. A prudent level of liquidity is held and the investment portfolio has a high-quality credit profile.

Investment return

Investment income for the first half of 2024 was £83.1 million (H1 2023: £57.7 million). Provisions for expected credit losses increased, driven by growth in the portfolio, leading to a £2.8 million charge (H1 2023: £0.5 million charge).

The investment return on the Group’s investment portfolio (excluding unrealised gains and losses on derivatives and the movement in provision for expected credit losses) was £86.1 million in H1 2024 (compared to £58.4 million in H1 2023). The rate of return was higher at 3.9% (H1 2023: 3.0%), mainly as a result of higher reinvestment yields.

The increase in interest rates in H1 2024 resulted in a reduction in the market value of the portfolio of £8.4 million (H1 2023: £22.4 million reduction). That movement is reflected in the Statement of Other Comprehensive Income.

The Group continues to generate significant amounts of cash and its capital-efficient business model enables the distribution of the majority of post-tax profits as dividends. Total cash and investments at 30 June 2024 was £4,789.4 million (30 June 2023: £4,043.9 million; 31 December 2023: £4,214.5 million), the higher balance at the end of the current period reflecting collections from higher written premium in UK Insurance. The net increase in cash and investments in the period is £574.9 million.

Cash and investments analysis

^*1 Total Cash and Investments include £301.0 million (30 June 2023: £259.0 million, 31 December 2023: £278.2 million) of Level 3 investments. Refer to note 6c for further information.

Taxation
The tax charge for the period is £72.6 million (H1 2023: £60.0 million), which equates to 23.4% (H1 2023: 25.6%) of profit before tax. The reduction in effective tax rate is the result of a higher proportion of profits generated in lower tax rate territories in H1 2024, along with higher prior period adjustments in H1 2023 which were not repeated to the same extent in the current period.

Principal Risks and Uncertainties
Admiral continually reviews and assesses its principal risks and uncertainties (PR&Us), including those which could have a major impact on its customers, financial position, or reputation. This ongoing assessment has concluded that Admiral’s PR&Us remain consistent with those reported in the Group’s 2023 Annual Report (pages 98-107). However, given the evolution of the following topics, additional commentary has been provided on their specific impact on Admiral’s PR&Us: an improving economic outlook, ongoing geopolitical instability, UK and US elections, Consumer Duty, cyber and operational resilience, and sustainability.

Improving Economic Outlook
The UK macroeconomic environment has improved over the first half of the year, suggesting that the economy is recovering from the short, shallow recession seen in H2 2023. Inflation fell to 2.0% in May, and GDP grew by 0.7% in Q1. Admiral will closely monitor the economic environment, taking into consideration any trends and incidents that could affect strategic planning and operations. Admiral has conducted a number of reviews of such trends and incidents to analyse their effect on the economy and therefore the financial services environment and potential impact on Admiral, with examples including the ongoing conflict in the Middle East, the Red Sea Crisis, the collapse of the Francis Scott Key Bridge in Baltimore, and inflation and weak economic growth in Admiral markets.

Admiral maintains a long-term, disciplined approach to financial resilience and sustainable growth, including responsible management of the insurance pricing cycle, practicing prudent reserving, and managing risk through its investment portfolio with an emphasis on liquidity and short-maturity, high quality assets. Admiral is also committed to engaging with customers, staff, third-parties, and other stakeholders to identify where support is needed to help navigate financial challenges, given recent economic pressures and the effects on the cost of living and business operating costs.

Geopolitical instability
Admiral is closely monitoring geopolitical risk, which remains elevated following the Russian invasion of Ukraine in February 2022. The outbreak of the Israel-Hamas War and the Red Sea Crisis triggered a review of potential exposure across the Group. At that time, the two potential avenues of impact identified were on Admiral’s supply chain and wider macro-economy disruptions. The review concluded that Admiral’s exposure from recent geopolitical events was not material.

While this conclusion cannot guarantee that Admiral will weather future incidents successfully, this should provide some reassurance around the flexibility of supply chains and the robustness of Admiral’s repair network.

UK and US elections
The Labour Party secured a 172-seat majority in July’s election, giving the incoming government a strong mandate to enact its policy platform. Admiral is monitoring and pro-actively preparing for any changes that will affect the insurance sector or wider UK corporate environment. The outcome of November’s US election may have an impact on trade flows, financial markets, growth and the global economy, as well as geopolitics.

Consumer Duty
The Consumer Duty remains a key priority within Admiral, with the focus on the delivery of good outcomes remaining strong as the work has transitioned into business as usual. A significant amount of work has been undertaken to improve processes and procedures to allow for better identification of any areas where customer outcomes can be improved. Admiral recognises that this is a cycle and will look to actively address issues that impact customer outcomes.

Cyber and Operational Resilience
Information Security, Technology and Cyber/Operational Resilience continue to be a key focus for Admiral Group and its businesses. Key developments in these areas have been:

• Enhancements to the technology infrastructure with the migration of business-critical customer management applications from on-premise to cloud environments
• Improving the mitigation of brand infringement by closing fraudulent websites more quickly
• Improvements to security operations tooling for vulnerability management and threat landscape monitoring
• Embedding of operational resilience requirements as part of BAU processes for Important Business Services
• Providing governance and assurance assessments for new technology, cloud, and information security policies and standards
• Implementing proactive training and cyber awareness campaigns for staff in new areas such as AI-related cyber-crime.

In July 2024, a faulty update from Crowdstrike's security software caused widespread disruption to various technology services, including Microsoft Azure. Whilst Admiral's own systems were not directly impacted, some third-party systems experienced temporary outages which were successfully managed by switching customer-facing services to alternative platforms and putting emergency measures in place for vulnerable customers. The issue however shows the continued risk posed by third and fourth party technology providers and the importance of Admiral’s on-going focus on all aspects of operational resilience.

Sustainability
Admiral continues to mature its approach to sustainability. The Company is working on its Net Zero Transition Plan, incorporating IFRS S1 and S2¹ into TCFD disclosure, and the management of a Corporate Sustainability Reporting Directive (CSRD) regulatory change project, ahead of CSRD coming into force on 1 January 2025 for our European businesses. The Science-Based Targets Initiative (SBTi) have formally approved Admiral’s Scope 1, 2, and partial Scope 3 GHG emissions reduction targets. The Group Sustainability team is also strengthening Admiral’s approach to monitoring and reporting on sustainability performance and raising awareness across the business.

Disclaimer on forward-looking statements
Persons receiving this announcement should not place undue reliance on forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, the Group does not undertake to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

¹ The UK Government has endorsed IFRS (sustainability) S1 and S2 standards as part of its Green Finance Strategy and both standards are effective for annual reporting periods beginning on 1 January 2024. IFRS S1 and S2 incorporate the existing recommendations of the TCFD, which means that companies already aligning to the TCFD recommendations are starting from a strong place when they turn their attention to the International Sustainability Standards Board IFRS S1 and S2.

Condensed Consolidated Income Statement (Unaudited)

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

Condensed Consolidated Statement of Financial Position (Unaudited)

Condensed Consolidated Cash Flow Statement (Unaudited)

Condensed Consolidated Statement of Changes in Equity (unaudited)

Condensed Consolidated Statement of Changes in Equity (unaudited) (continued)

Notes to the consolidated financial statements

General information
Admiral Group plc is a public limited company incorporated in England and Wales. Its registered office is at Tŷ Admiral, David Street, Cardiff, CF10 2EH and its shares are listed on the London Stock Exchange.

The condensed interim financial statements comprise the results and balances of the Company and its subsidiaries (the Group) for the six-month period ended 30 June 2024 and the comparative periods for the six-months ended 30 June 2023 and the year ended 31 December 2023. This condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the UK, and should be read in conjunction with the Group’s last annual consolidated financial statements as at and for the year ended 31 December 2023 (“last annual financial statements”), prepared in accordance with United Kingdom adopted international accounting standards in conformity with the requirements of the Companies Act 2006. They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual financial statements.

As required by the FCA’s Disclosure and Transparency Rules, the condensed set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the Company’s published consolidated financial statements for the year ended 31 December 2023, except where new accounting standards apply as noted below.

The financial statements of the Company’s subsidiaries are consolidated in the Group financial statements. In accordance with IAS 24, transactions or balances between Group companies that have been eliminated on consolidation are not reported as related party transactions.

The comparative figures for the financial year ended 31 December 2023 are the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was:

I.        unqualified;

II.        did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report; and

III.        did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

The accounts have been prepared on a going concern basis. In considering the appropriateness of this assumption, the Board have reviewed the Group’s projections for the next 12 months and beyond. Further information is given in note 1 below.

1. Basis of preparation
The condensed set of interim financial statements have been prepared applying the accounting policies and presentation that were applied in the preparation of the Company’s published consolidated financial statements for the year ended 31 December 2023.

A number of other IFRS and interpretations have been endorsed by the UK in the period to 30 June 2024 and although they have been adopted by the Group, none of them has had a material impact on the Group’s financial statements.

The Group’s assessment of the impact of other standards that have yet to be adopted remains consistent with that reported on page 222 of the Group’s 2023 Annual Report.

The consolidated financial statements have been prepared on a going concern basis. In considering this requirements, the directors have taken into account the following:

• The Group’s profit projections, including:
  • Changes in premium rates and projected policy volumes across the Group’s insurance businesses
  • Projected cost of settling claims across all of the Group’s insurance businesses, including the impact of continuing, albeit reducing, high levels of inflation
  • Projected trends in motor claims frequency
  • Projected trends in other revenue generated by the Group’s insurance business from fees and the sale of ancillary products
  • Projected contributions to profit from businesses other than the UK Motor insurance business
  • Expected trends in unemployment in the context of credit risks and the growth of the Group’s consumer lending business
  • The impact of the More Than acquisition, which completed in the first half of 2024.
• The Group’s solvency position, which has been closely monitored through periods of market volatility. The Group continues to maintain a strong solvency position above target levels
• The adequacy of the Group’s liquidity position after considering all the factors noted above
• The results of business plan scenarios and stress tests on the projected profitability, solvency and liquidity positions including the impact of severe downside scenarios that assume severe adverse economic, credit and trading stresses
• The regulatory environment, focusing on regulatory guidance issued by the FCA and the PRA in the UK and regular communications between management and regulators
• A review of the Company’s principal risks and uncertainties and the assessment of emerging risks including climate related risks.
  
  

Following consideration of all of the above, the Directors have reasonable expectation that the Group has adequate resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report, and that it is therefore appropriate to adopt the going concern basis in preparing the consolidated financial statements.

The accounting policies set out in the notes to the financial statements have, unless otherwise stated, been applied consistently to all periods presented in these Group financial statements.

The financial statements are prepared on the historical cost basis, except for the revaluation of financial assets classified as fair value through profit or loss or as fair value through other comprehensive income. The Group and Company financial statements are presented in pounds sterling, rounded to the nearest £0.1 million.

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. The acquisition date is the date on which control is transferred to the acquirer. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance.

2. Critical accounting judgements and estimates
The Group’s 2023 Annual Report provides full details of significant judgements and estimates used in the application of the Group’s accounting policies, other than:

• in relation to the additional intangible assets acquired in the period, for which the relevant information is included in notes 11 and 13
• in relation to the calculation of insurance reserves where the estimation basis has been updated both for the growth of the UK motor book and for motor total loss claims settled in previous periods, where management exercises judgement in assessing which customers should be remediated and applies estimation techniques in deriving the remediation amounts.

There have been no additional critical judgements or estimates applied in the period.

Notes 3 and 5 provide further information as to the changes in the estimates with respect to the calculation of insurance reserves.

Note 7 provides further information as to changes in the estimates with respect to the calculation of the expected credit loss provision for the Admiral Money business.

3. Insurance and financial risk

3a. Insurance risk sensitivity analysis
The following sensitivity analysis shows the impact on profit for reasonably possible movements in key assumptions with all other assumptions held constant. The correlation of assumptions will have a significant effect in determining the ultimate impacts, but to demonstrate the impact due to changes in each assumption, assumptions have been changed on an individual basis. It should be noted that movements in these assumptions are non-linear.

The sensitivities are shown for UK motor only, being the line of business where such sensitivities could have a material impact at a Group level. The sensitivities are shown on a gross and net of quota share reinsurance basis to illustrate the impacts on shareholder profit and equity before and after risk mitigation from quota share reinsurance. The sensitivities (both gross and net) include the impacts of movements in co-insurance profit commission, given that underwriting year loss ratios including risk adjustment are a direct input to the calculation of profit commission.

Ogden discount rate
The sensitivities reflect the impact on profit before tax and equity in H1 2024 for changes to the Ogden discount rate from the current rate of minus 0.25%, with all other assumptions (including the absolute level of risk adjustment) remaining unchanged. The sensitivities assume the change in rate takes place from 1 January 2025.

Should the Ogden discount rate change in future periods, the ultimate impacts on profit before tax and equity are likely to be slightly larger than those set out above, as a result of including the impacts on claims arising in relation to premium written and earned beyond 30 June 2024. It is also expected that some of the ultimate impact of a change in Ogden rate will flow into future financial periods.

Risk adjustment
The sensitivities reflect the impact on profit before tax and equity in 2024 for changes in the selection of the UK motor risk adjustment confidence level at 30 June 2024, with all other assumptions remaining unchanged.

Undiscounted loss ratios, including risk adjustment (unaudited)
The sensitivities reflect the impact on profit before tax and equity in 2024 of a change in the booked loss ratios for individual underwriting years (UWY) as at 30 June 2024, with all other assumptions remaining unchanged.

* ‘Booked’ loss ratios are undiscounted underwriting year loss ratios, including risk adjustment.

3b. Financial risk: Interest rate sensitivity analysis

Impact on insurance contracts liabilities and reinsurance contract assets
The impact on profit and loss (before tax) and equity arising from the impact of 100 basis point and 200 basis point increases and decreases in interest rates on insurance contract liabilities and reinsurance contract assets, is as follows:

Impact on investments and cash
The impact on profit before tax of a 100 basis and 200 basis point move in relation to investments and cash is not significant, at £6.7 million and £13.4 million respectively. The impact on equity is more significant, at £84.7 million and £162.9 million respectively, as a result of the gains and losses on the majority of the financial investment portfolio being reflected in Other Comprehensive Income.

4. Operating segments
The Group has four reportable segments; UK Insurance, International Insurance, Admiral Money, and Other. These reportable segments are consistent with those set out on page 238 of the Group’s 2023 Annual Report.

An analysis of the Group’s revenue and results for the period ended 30 June 2024, by reportable segment, is shown below. The accounting policies of the reportable segments are consistent with those presented in the notes to the 2023 Group financial statements.

Revenue and results for the corresponding reportable segments for the period ended 30 June 2023 are shown below.

Revenue and results for the corresponding reportable segments for the year ended 31 December 2023 are shown below.

*1 Turnover is an Alternative Performance Measure presented before intra-group eliminations. Refer to the glossary and note 14 for further information.
*2 Net Investment income is reported net of impairment of financial assets, in line with management reporting.
*3 Eliminations are in respect of the intra-group trading between the Group’s comparison and UK and International insurance entities and intra-group interest charges related to the UK Insurance and Admiral Money segment.
*4 Segment results are presented net of gross share scheme charges, and any quota share reinsurance recoveries; these net share scheme charges are presented within ‘Other central revenue and expenses, including share scheme charges in line with internal management reporting.

5. Insurance Service result

5a. Accounting policies
The full accounting policies are provided in the Group’s 2023 Annual Report.

Discount rates
A bottom-up approach has been applied in the determination of discount rates. Under this approach, the discount rate is determined as the risk-free yield adjusted for differences in liquidity characteristics between the financial assets used to derive the risk-free yield and the relevant liability cashflows (known as an illiquidity premium).

The following weighted average rates, based on the yield curves derived using the above methodology, were used to discount the liability for incurred claims at the end of the current and prior periods:

5b. Insurance revenue
Insurance revenue for the corresponding reportable segments for the period ended 30 June 2024 are shown below.

Insurance revenue for the corresponding reportable segments for the period ended 30 June 2023 are shown below.

Insurance revenue for the corresponding reportable segments for the year ended 31 December 2023 are shown below.

The Group’s share of its insurance business was underwritten by Admiral Insurance (Gibraltar) Limited, Admiral Insurance Company Limited, Admiral Europe Compañia Seguros (‘AECS’) and Elephant Insurance Company. The majority of contracts are short term in duration, lasting for between 6 and 12 months.

5c. Insurance service expenses
Insurance service expenses for the corresponding reportable segments for the period ended 30 June 2024 are shown below.

Insurance services expenses for the corresponding reportable segments for the period ended 30 June 2023 are shown below.

Insurance service expenses for the corresponding reportable segments for the year ended 31 December 2023 are shown below.

5d. Net expenses from reinsurance contracts held
Net expenses from reinsurance contracts held for the corresponding reportable segments for the period ended 30 June 2024 are shown below.

Net expenses from reinsurance contracts held for the corresponding reportable segments for the period ended 30 June 2023 are shown below.

Net expenses from reinsurance contracts held for the corresponding reportable segments for the year ended 31 December 2023 are shown below.

5e. Finance (expenses)/income from insurance contracts held and reinsurance contracts issued

5f. Insurance Liabilities and Reinsurance assets

(i). Analysis of recognised amounts

(ii). Roll-forward of net asset or liability for insurance contracts issued
The following tables reconcile the opening and closing balances of the LRC and LIC for UK Motor.

(iii). Roll-forward of net asset or liability for reinsurance contracts issued

UK Motor
The following tables reconcile the opening and closing balances of the ARC and AIC for UK Motor.