Admiral Group PLC Admiral Group Plc : Results For The Year Ended 31 December 2016

 
TIDMADM 
 
 
   8 March 2017 
 
   Admiral Group plc announces another year of strong growth and profit 
before tax of GBP284 million for the year to 31 December 2016 
 
   2016 Preliminary Results Highlights 
 
 
 
 
                                 2016                   2015          % change 
 
Group's share of profit 
 before tax - pre 
 Ogden(*1)                    GBP389.7 million      GBP376.8 million       +3% 
Group's share of profit 
 before tax - post 
 Ogden(*1)                    GBP284.3 million      GBP376.8 million      -25% 
Group statutory profit 
 before tax                   GBP278.4 million      GBP368.7 million      -24% 
Earnings per share - 
 pre Ogden                         109.6 pence           107.3 pence       +2% 
Earnings per share - 
 post Ogden                         78.7 pence           107.3 pence      -27% 
Full year dividend                 114.4 pence           114.4 pence        0% 
Return on equity(*1)                       37%                   49%      -24% 
 
Group turnover(*1)             GBP2.58 billion       GBP2.12 billion      +22% 
Group net revenue              GBP1.02 billion       GBP0.90 billion      +13% 
Group customers(*1)               5.15 million          4.43 million      +16% 
UK insurance 
 customers(*1)                    4.12 million          3.61 million      +14% 
International car 
 insurance 
 customers(*1)                         864,200               673,000      +28% 
 
Group's share of price 
comparison profit(*1)    GBP2.7 million profit   GBP7.2 million loss 
Statutory price 
comparison result          GBP2.9 million loss  GBP15.5 million loss 
 
Solvency ratio (post 
 dividend)(*2)                            212%                  206%       +3% 
 
 
 
   Almost 9,000 staff each receive free shares worth a total of GBP3,600 
under the employee share scheme based on the full year 2016 results 
 
   (*1) Alternative Performance Measures - refer to the end of the report 
for definition and explanation. 
 
   (*2) Refer to capital structure and financial position section later in 
the report for further information. 
 
   Comment from David Stevens, Group Chief Executive Officer 
 
   "My first full year as CEO, and after 25 years of almost uninterrupted 
profit growth under my predecessor, profits are down a quarter! Not 
exactly a flying start! 
 
   On the other hand our ability to grow our businesses rapidly, both in 
the UK and overseas, and to absorb the shock of an eccentric government 
decision on discount rates while delivering a 37% return on equity and 
again paying a substantial dividend is a tribute to the health of the 
business and resilience of our model. 
 
   I am also delighted that for a record 17(th) year in a row, Admiral 
Group has continued its success in the Sunday Times Best Companies to 
Work For, placing 2(nd) , our joint highest position ever." 
 
   Dividend 
 
   The Directors have proposed a final dividend of 51.5 pence, representing 
a normal dividend of 15.0 pence per share and a special dividend of 36.5 
pence per share. The dividend will be paid on 2 June 2017.  The 
ex-dividend date is 11 May 2017 and the record date is 12 May 2017. 
 
   Management presentation 
 
   Analysts and investors will be able to access the Admiral Group 
management presentation which commences at 8.00 GMT on Wednesday 8 March 
2017 by dialling + 44 (0)20 3059 8125.  A copy of the presentation 
slides will be available at www.admiralgroup.co.uk 
 
   Chairman's Statement 
 
   Succession 
 
   As announced recently this will be my last statement as Chairman as I 
shall be retiring at the forthcoming AGM. Given Admiral's distinctive 
culture which underpins the success the business has achieved I have 
considered it my responsibility to ensure the Board should have a choice 
of strong internal candidates as my successor. I am very grateful to 
Penny James for leading the selection process which confirmed that the 
Board already had within its ranks individuals with the skills and 
experience to lead the Board through the challenges of the next five to 
ten years. I am delighted that as the outcome to that process the Board 
has selected Annette Court as my successor and I wish her every success. 
 
 
   If I may be excused a little nostalgia, when I became Chairman in June 
2000 Admiral provided private car insurance in the UK to 512k customers 
with a 3% market share and employed 1,270 people just in Cardiff and 
Swansea. Turnover and profitability in 2000 were GBP262 million and 
GBP24 million respectively. We now have 5.2 million customers across 5 
countries and employ almost 9,000 people across 16 sites and 8 
countries. 2016 turnover and profits achieved GBP2.6 billion and GBP284 
million, or GBP390 million if we back out the impact of the Ogden rate 
change - that's almost a 10-fold increase in turnover and a 16-fold 
increase in profitability in 16 years. We are valued at over GBP5 
billion and are ranked 84 in the FTSE. We have 5 motor insurance 
businesses; 4 price comparison businesses; a household insurance 
business; 2 legal businesses; a start-up loans business and not to 
mention a price comparison incubator. 
 
   The essence of Admiral 
 
   On the one hand Admiral has changed enormously, on the other not very 
much at all. Fundamental to our success remains our culture - Admiral is 
different in the way in which we engage and lead our people: in 
demonstrating in so many practical ways that everyone matters regardless 
of their role: in how we motivate their aiming for continuous 
improvement in everything they do: in our use of teamwork and our 
openness to share and support others to do a great job, whether or not 
they are in the same department, business, or even country: in our use 
of wide share ownership, both actual and potential, as a driver of 
common purpose. To maintain a culture requires it to be continually 
reinforced - to be lived by our leaders in the way in which they 
interact with those they lead: to be trained into our people as part of 
our development plans: to be the basis on which we select those who 
should be promoted to greater responsibility. I consider one of our 
management's greatest achievements to be that as we have broadened our 
base, both geographically and by business-line, we have been able to 
establish that culture in these new businesses. Whichever of Admiral's 
offices I visit, from Seville to Swansea, I know I am in Admiral because 
of the way in which our people interact with our customers and with each 
other; their quest to identify the small changes in what we do and how 
we do it that, taken together, create a big competitive difference; and 
their openness to discuss problems and willingness to embrace the 
thoughts of others. 
 
   Test and learn has always been core to Admiral's culture. Rather than 
spending a lot of time analysing an opportunity from every perspective 
and then committing a large investment we would rather make a small 
investment of time and/or money quickly and learn by doing. Partnering 
test and learn is the willingness to acknowledge openly when something 
hasn't worked and either change or move on recognising these as 
opportunities to improve rather than mistakes for which blame should be 
attributed. This approach of test and learn is central to our assessing 
which we will pursue seriously amongst the other business lines that 
could complement our core strengths in car insurance, either because our 
customers would view the new products as relevant to their existing 
relationship with Admiral or because the new line of business uses 
experience and skills that we have developed for car insurance. Our 
current piloting of personal loans is a case in point here, whilst our 
UK household insurance portfolio of 470,000 policies and already 
profitable 3 years after launch is a great example of a line of business 
that has passed successfully from pilot into full production. 
 
   Whilst we devote time and resource to exploring new opportunities 
outside of car insurance we also recognise fully that this remains our 
core focus with significant potential for growth beyond our current 13% 
market share as and when it is the right point in the cycle to grow. So 
the capability required to develop our business must be, and is, 
incremental to, rather than dilutive of, our core. We continue to invest 
as much thought and resource as we ever have in improving the 
effectiveness of our motor insurance proposition, whether it be in 
pricing analytics, claims management, or customer self-service. However 
we also recognise that if we are to develop successfully new lines of 
business such as personal loans we need to add new skills and experience 
to our existing management whilst at the same time assimilating this new 
talent within our distinctive culture. 
 
   We are also strong believers in the potential of partnership to combine 
the skills, experience and resources of others with those that Admiral 
has developed and to share both risk and reward when entering new 
markets, particularly those that require material levels of investment. 
Our long-term partnership with Munich Re has lasted for 17 years and is 
committed through to at least 2020 in the UK: we are partnering with 
Mapfre in Spanish and US price comparison and in Preminen, our price 
comparison incubator: White Mountains, the US insurance venture capital 
specialist, is also invested alongside Admiral in compare.com which has 
made strong progress again this year, increasing the number of insurer 
partners and, therefore, the number of quotes returned to customers, 
driving down cost per sale, and raising its penetration of its target 
markets. But changing the pattern of distribution in US auto insurance 
is a big nut to crack and we may take others into partnership along this 
journey. 
 
   2016 in overview 
 
   This year's performance is testament to our focussing successfully on 
our core UK motor business, our book growing by 11% to 3.6 million cars, 
a 13% market share whilst UK motor generated profits of GBP441 million 

(before the impact of the Ogden rate change), maintaining last year's 
level. The UK motor profit after the impact of the Ogden change is 
GBP336m. We have continued to take advantage of firm market conditions 
to move prices ahead a little more slowly than the average of the market 
allowing us to grow our book whilst returning a good underwriting result 
for Admiral and its reinsurance partners. Effective pricing supported by 
data analysis and predictive modelling, and really insightful claims 
management underpin our success and we are always looking for new ways 
to make risk analysis more reflective of the characteristics of the 
individual driver. In this vein we believe we are now the largest 
deployer of telematics in the UK. 
 
   2016 was broadly a year of growth across our insurance businesses 
outside the UK, taking advantage of the sound platforms that have now 
been created in Italy, the US, and Spain and the move in France last 
year to in-source all our operations as the precursor of growth. In the 
US we had 20% more customers at the end of 2016 than at the beginning, 
whilst our European operations grew by 31%. The insurance business model 
in the US is different to Europe with much higher new business 
acquisition costs, so growth requires investment. In Europe, there will 
also be periods when countries decide the market conditions are right to 
accelerate which may in turn justify further investment, as in Spain 
this year. 
 
   Our price comparison sector combines a highly competitive operation in a 
largely mature market (Confused); market-leading players with large 
market shares but whose challenge is growth in markets where there is 
little incentive for customers to look to switch insurers (Rastreator 
and LeLynx); and a business that is seeking to rewrite the rules of 
insurance customer engagement (compare.com). Across the piece our 
combined price comparison operations made a small profit, supported by 
encouraging progress by Confused as it seeks to establish a 
differentiated market positioning as 'No. 1 for car savings'. 
 
   For the last couple of months the resetting of the Ogden rate by the 
Ministry of Justice has represented a significant area of uncertainty 
outside of our control. The announcement on 27 February by the Lord 
Chancellor of the new rate of minus 0.75% has allowed this to be 
reflected within our 2016 accounts and represents a very material 
reduction from the previous 2.5% rate, increasing claims reserves by 
more than we would want to absorb within the, albeit significant, margin 
that we hold over best estimate. We have, therefore, reduced our second 
half reported results by GBP105 million, and to a much lesser extent the 
profits of subsequent years will also be reduced as the affected claims 
settle. Given, however, our strong capital position, this has not 
impacted our ability to maintain our 2016 final dividend at the level we 
declared in 2015. We anticipate that if market pricing adjusts future 
premiums to reflect the lower discount rate, there will be no 
significant impact on future business and its profitability after the 
change. We strongly support the ABI's call for a fundamental review of 
the basis on which the Ogden rate is set in order to ensure that the 
relevant compensation awards are set appropriately and welcome the 
intent of the Lord Chancellor and the Chancellor of the Exchequer to 
implement this review expeditiously. 
 
   A proposed final dividend of 51.5 pence per share brings dividends for 
the year to 114.4 pence per share, a yield of 6.3% on the GBP18.18 share 
price at the 2016 year end. 
 
   The team 
 
   May last year marked the retirement of Henry Engelhardt after 25 years 
as Chief Executive albeit I am delighted he is continuing to give us 
some of his time working in the UK and overseas. That the transition 
from Henry to David Stevens has been seamless is itself testament to 
Admiral's culture of teamwork and open management. Henry always said 
that he would time his retirement when he judged the business had the 
required depth of management and over the years the Board has focussed 
on understanding the talent emerging within the business and how it has 
been, and is planned to be, developed. It is, therefore, very gratifying 
to see David now ably supported by Cristina Nestares leading the UK 
Insurance business, with Alistair Hargreaves working alongside her, and 
by Milena Mondini leading the European insurance businesses. Cristina 
and Milena have both been with Admiral for 11 years having founded, and 
successfully developed, our Spanish and Italian insurance businesses and 
then broadened their management responsibilities leading to their 
current roles. Alistair has been with Admiral 8 years, having begun his 
career in finance and investor relations and then taken increasingly 
significant management roles within the UK motor business. Development 
and recruitment of management talent is a core enabler of Admiral's 
continued growth and development and I am very encouraged by the quality 
and potential of those I meet in middle and senior management positions 
as I spend time across our various businesses. 
 
   Thank you 
 
   I have thoroughly enjoyed every year I have chaired Admiral. It is a 
special business because of the way in which it does business, its 
absolute focus on delivering what the customer wants, and its beliefs 
that if people enjoy what they are doing and own part of the business 
that employs them they will do a better job. In the same way as Admiral 
seeks to assess the right price for each driver as an individual so it 
respects the contribution of each individual who works with us, caring 
about their well-being and giving them the opportunity to develop and 
progress to fulfil their individual potential. It is a company with 
which I am very proud to have been associated and I thank everyone in 
Admiral with whom I have worked for a great experience. 
 
   With a core business in such good form, a nursery of other businesses at 
varying stages of maturity, and a hothouse of opportunities which may or 
may not take root and get planted out, but most of all with the people 
we have in the business, I am confident that Admiral will continue to 
develop and prosper over the next 16 years as it has over the last. 
 
   Alastair Lyons 
 
   Chairman 
 
   7 March 2017 
 
   Chief Executive's Statement 
 
   Very few people can claim to have contributed as much to Admiral's 
success as Alastair Lyons. So it'd be wrong to start my first Chief 
Executive report with anything other than a tribute to his contribution 
over the last 16 years. The Board collectively, Admiral's senior 
managers, and Henry and myself in particular, have benefitted from his 
wisdom, experience and thoughtfulness, and during our (occasional) 
moments of crisis, his composure. 
 
   Perhaps most importantly, notwithstanding an apparently conservative 
profile as a chartered accountant and financial services veteran, 
Alastair has consistently been an encouraging supporter of Admiral's 
distinctiveness rather than an advocate of the apparently safe option of 
convergence to industry norms. 
 
   In his statement, Alastair has laid out the transformation, in scale and 
breadth, of Admiral over the 16 years of his stewardship. He describes 
how 2016 has been another year of substantial growth both in our core UK 
car insurance business and across the Group as a whole. 
 
   Rather than re-visit 2016 myself (and to duck the challenge of trying to 
find a pithy culinary metaphor to describe the year - see previous Chief 
Executive Statements), I'll look forward and answer a question some 
shareholders may be asking. Namely: "Should I sell Admiral and buy 
Insurtech?" 
 
   For those of you with limited time, or for whom the suspense is too much, 
the short answer, in my view, is "no". Read on for a longer answer. 
 
   Insurtech is generating lots of excitement. Visiting investment bankers, 
who historically would have arrived with fat packs on attractive big 
ticket acquisitions, now also include charts showing the explosive 
growth in Insurtech, along with a busy "Insurtech landscape" page, 
packed with the colourful logos of whizzily named Insurtech start-ups, 
bunched (sometimes shoe-horned) into helpful categories ("sharing 
economy", "P2P", "mobile insurance", "telematics", "auto comparison", 
"short term cover"). A big brand consulting firm recently shared the 
results of a survey suggesting that "insurance CEO's" expect new 
entrants to capture 30% of the insurance market over the next five 
years. 
 
   I disagree. 
 
   I say that not because the ideas emerging aren't interesting, far from 
it. Nor because many of the Insurtech pioneers aren't very bright and 
creative (and it's great to see that creativity focussed on insurance). 
 
   I disagree for two reasons. 
 
   The first reason is that many of the ideas won't work in practice. Many, 
while technologically feasible, even impressive, involve an 
under-appreciation of the complexity of insurance; the importance, for 
example, of avoiding customers you really don't want to insure or the 
challenge of engaging policyholders in a deeper interaction with their 
insurance when, in truth, most of our customers want the opposite. 
Insurtech start-ups promising on-again, off-again, item by item 
insurance are offering a consumer "benefit" that most of our customers 
wouldn't recognise as such. 
 
   The second reason is that Admiral already, in many important respects, 
is "Insurtech". The two most fundamental Insurtech sectors; 
"fundamental" in terms of their ability to transform the competitive 
landscape and substantially re-distribute market share, are 
"auto-comparison" and "telematics". On "auto-comparison" we are leading 
players with established, businesses in the UK, Spain and France and a 
pioneering, potentially transformational, US price comparison business 
in compare.com. And as for "telematics", we sell telematics-based car 
insurance in three countries and in the UK we are, by some margin, the 

largest player in the market with over 200,000 live policies. Beyond 
those sectors, our ever-evolving range of products ("air bnb" home 
insurance, Admiral short-term cover, insurance cover for the peer to 
peer car sharing sites) show we're not neglecting the interesting, if at 
this point more marginal, emerging opportunities. 
 
   Admiral's success has always been about embracing change when that's in 
the interest of our customers and shareholders. So stick with us and 
enjoy the best of insurance, and Insurtech, all in one bundle. 
 
   My priorities 
 
   My priorities for the forthcoming year are set out below. I expect them 
to remain my priorities for a number of years to come. 
 
   Ensure Admiral remains one of, if not the, best car insurers in the UK 
 
   Admiral has built its success on doing car insurance more effectively 
that its peers. Maintaining our lead in cost efficiency, rigorous risk 
selection and effective claims management has required Admiral to keep 
evolving and innovating and we need to continue to do so in the future. 
 
   Demonstrate Admiral can be a great car insurer beyond the UK 
 
   Our insurance operations beyond the UK are at different stages of 
development and relative competitive competence. Mobilising, ideally, 
all the collective talents of the Group, to ensure most, or all, of 
these operations become sources of sustainable profitable growth is a 
priority. 
 
   Develop sources of growth and profits beyond car insurance 
 
   Admiral's first major diversification from car insurance was household 
insurance, launched three years ago in the UK. I expect the second will 
be personal lending in the UK. Both take us into huge markets and, in 
both cases, our car insurance heritage provides some of the necessary 
skills and assets to succeed. Our priority will be to grow both, 
focussing on a long-term objective of developing sources of competitive 
advantage, not short-term top or bottom-line objectives. 
 
   Ensure Admiral stays a great place to work 
 
   I don't run Admiral purely for the benefit of shareholders. It's 
important that those of us who work for Admiral are glad we do, most of 
the time. Happily, what's good for staff is normally good for 
shareholders. A key reason for Admiral's success over the last 25 years 
has been the loyalty of talented staff to the company, and the 
collective sense of shared endeavour that has helped us do lots of 
things a little better than our competitors. 
 
   David Stevens 
 
   Chief Executive Officer 
 
   7 March 2017 
 
   Chief Financial Officer's Review 
 
   It's tempting to focus almost entirely on Ogden in writing a review of 
2016's results, but whilst it deserves attention (and it's coming), 
there is more to talk about. 
 
   Given Ogden, the Group's share of pre-tax profit reduced materially to 
GBP284 million from GBP377 million last year.  On a statutory basis, the 
reduction is similar, with Group profit before tax at GBP278 million 
compared to GBP369 million in 2015. Without the Ogden change, the 
Group's share of pre-tax profit would have been GBP390 million, of which 
the UK Insurance businesses would have contributed GBP441 million, in 
line with last year.  Our combined international insurance businesses 
improved their result (GBP19 million loss v GBP22 million loss) whilst 
the comparison operations recorded a profit of GBP3 million after making 
losses of GBP7 million in 2015. On a statutory basis, the price 
comparison result is a loss of GBP3 million compared to a loss of GBP16 
million last year. 
 
   Notwithstanding the Ogden impact, the strength of the Group's capital 
position has allowed us to propose a final dividend of 51.5 pence per 
share, in line with the final 2015 dividend (before adding the return of 
surplus capital that was paid a year ago). 
 
   If forced to describe the year in one word, for me it would be Growth. 
2016 saw very strong advances in turnover (a record and 22% higher than 
2015), customer numbers (another record at 5.2 million) and net revenue 
(up 13% to GBP1 billion). Whilst UK motor grew healthily, our businesses 
in other markets (including UK household) grew very nicely and continue 
to represent a bigger share of the Group's KPIs. 
 
   Our international operations in insurance and comparison continued to 
make meaningful and pleasing progress against their objectives. 
 
   It's inevitably hard to pick highlights, but some of mine would be: 
 
 
   -- 720,000 - the number of new customers we welcomed to the Group in twelve 
      months 
 
   -- 1,035,000 - customers beyond UK Insurance, up 215,000 in a year 
 
   -- 212% - solvency ratio after the Ogden impact and proposed final dividend 
 
   -- 100% - all UK insurance new business now transacted on the new policy 
      system, Guidewire 
 
   -- Record profits at Rastreator in Spain and another profit (for the third 
      successive financial year) from ConTe in Italy 
 
 
 
   Full detail on the results follows but let me cover a couple of things: 
 
   Ogden (inevitably), capital and dividend 
 
   Readers will be aware I'm sure, but in December 2016 we heard that a new 
Ogden discount rate was imminent (the first change since 2001). The 
announcement came at the end of February that the new rate would be 
minus 0.75% - a substantial reduction on the previous rate of 2.5%. 
 
   We estimate that the ultimate cost (net of reinsurance and tax) on open 
claims and claims arising on business written to the date of change of a 
move to minus 0.75% from 2.5% will be approximately GBP150 million. 
 
   The reduction in profit in 2016 means that a large portion of the impact 
of the change has been recognised already, with the balance (something 
in the order of GBP65 million post-tax) to be reflected in the coming 
years in the form of lower reserve releases and profit commission than 
would otherwise have been the case with an unchanged rate. 
 
   Ogden is of course only one variable involved in estimating the reserves, 
and as you would expect of Admiral, our booked reserves in the financial 
statements continue to include a prudent and significant margin above 
best estimates, the size of which is largely in line in relative terms 
with a year earlier. 
 
   The Solvency II balance sheet technical provisions are also now on a 
minus 0.75% Ogden basis. 
 
   After accounting for the proposed final dividend, the Group solvency 
ratio is a very satisfactory 212%. Excluding amounts relating to return 
of surplus capital, full year dividends for 2016 are held at their 2015 
level of 102.5 pence per share. 
 
   The solvency ratio is above where we expect to operate in the medium to 
long term (no change on our previously indicated 125%-150%). However we 
consider it prudent to maintain a higher ratio in the near term as we 
move towards submission of our application to use an internal model to 
calculate our solvency capital requirement later in the year (we're 
still hoping to 'go live' with the model in 2018). For the foreseeable 
future, we envisage dividends will be in the order of 90-95% of 
earnings. 
 
   In terms of the future impact of higher injury costs resulting from the 
substantially lower discount rate, we expect that pricing action 
(including our own material pre-emptive rate changes in December 2016 
and most likely more to follow) should mean profitability on business 
written after the date of the change will not be materially adversely 
affected. 
 
   Brexit 
 
   Another 2016 surprise (in a year full of them) was the result of the EU 
referendum in June. 
 
   Admiral currently has three insurers and two comparison businesses in 
continental Europe, all benefitting from passporting arrangements. 
Although the UK is very early in the process of extricating itself from 
the EU, there is clearly a risk we lose access to these markets via the 
passporting mechanism. 
 
   We are planning for potential outcomes and expect to be able to 
establish new entities and/or arrangements which should result in 
minimal disruption to our businesses and customers in those markets. 
 
   We also currently enjoy free movement of staff between our sites in 
Europe which might also be restricted. Again we'll work to ensure the 
impact on our staff is minimised to the extent possible under whatever 
arrangements are put in place. 
 
   Chairman 
 
   Finally, at the 2017 AGM we will say farewell to Alastair, our Chairman 
of over 16 years. David's tribute sums up Alastair's contribution 
eloquently so I'll just say that I've hugely admired Alastair as a 
Chairman and colleague since I've worked with him. We will miss him 
greatly. We're fortunate to have an extremely capable successor in 
Annette who's been on the Board since 2012. My best wishes go to both. 
 
   Geraint Jones 
 
   Chief Financial Officer 
 
   7 March 2017 
 
   2016 Group overview 
 
   The Group has seen strong growth in 2016 with turnover up 22% to GBP2.58 
billion (2015: GBP2.12 billion). Net revenue increased by 13% to GBP1.02 
billion (2015: GBP0.90 billion). Customer numbers were 16% higher at 
5.15 million (2015: 4.43 million). 
 
   The Group's share of pre-tax profits of GBP284.3 million (2015: GBP376.8 
million) and statutory profit before tax of GBP278.4 million (2015: 
GBP368.7 million) have both been materially affected by the impact of 
the change by the UK Government to the UK discount rate (commonly 
referred to as the 'Ogden discount rate'), used to value personal injury 
claims, which has reduced UK Insurance profits. See below for further 
information. If the rate had remained unchanged, the Group's share of 
pre-tax profit would have been GBP390 million. 
 
   During 2016, the Group's UK Insurance business, consisting of UK Car and 
UK Household, enjoyed favourable market conditions and delivered strong 
growth in turnover to GBP2.06 billion (2015: GBP1.76 billion). Net 
revenue increased by 8% to GBP770.9 million (2015: GBP711.2 million). 
Customer numbers reached 4.1 million (2015: 3.6 million). The UK 
Insurance business accounts for 80% of Group turnover and customers 

(2015: 83% and 81% respectively). 
 
   Outside the UK, Admiral's International Insurance businesses grew 
combined turnover by 57% to GBP365.9 million (2015: GBP232.4 million). 
Net revenue increased by 49% to GBP107.3 million (2015: GBP72.2 
million).  Customer numbers grew by 28% to 864,000 (2015: 673,000). 
Encouraging progress was made in combined ratio terms, and in aggregate 
the segment recorded reduced losses of GBP19.4 million (down from 
GBP22.2 million) with the Group's Italian insurer ConTe recording a 
profit for the third consecutive year. 
 
   Finally, Admiral's Price Comparison businesses made a combined profit, 
again excluding minority interests' shares, of GBP2.7 million (2015: 
loss GBP7.2 million). Confused.com http://confused.com in the UK grew 
revenue and saw a 29% increase in profit to GBP16.1 million from GBP12.5 
million. The international price comparison businesses reported a 
reduced aggregate loss of GBP13.4 million (2015: loss GBP19.7 million) 
with growing profit in the European operations (GBP2.8 million, up from 
GBP1.8 million) offset by the loss in compare.com of GBP16.2 million 
(2015: loss GBP21.5 million). 
 
   Other Group key performance indicators include: 
 
 
   -- Group loss ratio 72.0% post Ogden, 64.2% pre Ogden (2015: 65.1%) - an 
      improved international ratio offset by an Ogden-impacted higher UK car 
      insurance ratio; 
 
   -- Group expense ratio 22.4% (2015: 20.5%) - an increased UK ratio 
      reflecting an increase in acquisition costs resulting from growth offset 
      by a small improvement in the international ratio; and 
 
   -- Group combined ratio 94.4% post Ogden, 86.7% pre Ogden (2015: 85.6%). 
 
   Earnings per share 
 
   Earnings per share decreased by 27% to 78.7 pence (2015: 107.3 pence), 
reflecting the decrease in Group profit as a result of the change in the 
Ogden discount rate. If the rate had remained unchanged, earnings per 
share would have risen to 109.6 pence per share. 
 
   Dividends 
 
   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 or buffers. 
 
   Notwithstanding the lower second half profits, the strength of the 
Group's capital position has allowed the Board to propose a final 
dividend of 51.5 pence per share (GBP144 million), as follows: 
 
 
   -- 15.0 pence per share representing a normal element, based on the dividend 
      policy of distributing 65% of post-tax profits; and 
 
   -- A special element of 36.5 pence per share. 
 
 
   The final dividend is in line with the final 2015 dividend (excluding 
the return of surplus capital of 11.9 pence per share that was paid with 
the final 2015 dividend). 
 
   The total dividend for the 2016 financial year is 114.4 pence per share 
(including 11.9 pence return of surplus capital), in line with 2015 
(which also included 11.9 pence return of surplus capital). 
 
   The payment date is 2 June 2017, ex-dividend date 11 May 2017 and record 
date 12 May 2017. 
 
   Return on equity 
 
   The impact of the changed Ogden discount rate on profit has led to a 
reduction in return on equity to 37% from 49%.  Had the rate remained 
unchanged, return on equity would have been in line with 2015. 
 
   A key part of Admiral's business model is the extensive use of co- and 
reinsurance across the Group which provides both loss protection and 
capital relief and, when combined with high levels of profitability, 
leads to a superior return on equity. 
 
   Change in UK discount rate ('Ogden') 
 
   On 27 February 2017, the UK Government announced the outcome of the 
review of the discount rate (referred to as the Ogden discount rate) 
used for calculating the value of lump sum personal injury compensation. 
The new rate is minus 0.75% and will apply to all unsettled and new 
claims from 20 March 2017. 
 
   The estimated total impact, net of reinsurance and post tax, of the 
change to minus 0.75% from 2.5% is approximately GBP150 million. 
 
   The change in rate has been treated as an adjusting post balance sheet 
event and the UK motor actuarial best estimates and Solvency II 
technical provisions have been prepared on the basis of the new rate. 
The booked reserves in the financial statements continue to include a 
prudent and significant margin above the actuarial best estimates in 
line with the Group's reserving policy. 
 
   The majority of the financial impact in respect of premiums earned up to 
the date of change (GBP105 million pre-tax, GBP87 million post-tax), has 
been recognised in the form of reduced 2016 profits. The balance, along 
with the impact on business written but unearned at the date of change, 
will be recognised in the form of lower reserve releases and profit 
commission over the subsequent three to five financial years as the 
affected claims settle. 
 
   The Group anticipates that if UK market pricing adjusts future premiums 
to reflect the lower Ogden rate, there will be no significant impact on 
future business and its profitability after the change. The Group is 
confident that its strong capital position, along with its prudent 
approach to claims reserving, will allow it to manage the outcome 
without significant change to its business or long term financial 
outlook. 
 
   Investments and cash 
 
   Investment strategy 
 
   Admiral's investment strategy was unchanged in 2016 and the Group 
continued to invest in the same asset classes as previous years. 
 
   The main focus of the Group's strategy is capital preservation, with 
additional priorities including low volatility of returns and high 
levels of liquidity. All objectives continue to be met. The Group's 
Investment Committee performs regular reviews of the strategy to ensure 
it remains appropriate. 
 
   Cash and investments analysis 
 
 
 
 
GBPm                                                  2014     2015     2016 
Fixed income and debt securities                     1,021.8  1,428.2  1,469.2 
Money market funds and other fair value instruments    909.2    627.7    781.0 
Cash deposits                                          263.1    267.6    170.0 
Cash                                                   255.9    265.3    326.6 
Total                                                2,450.0  2,588.8  2,746.8 
 
   Money market funds, fixed income and debt securities comprise the 
majority of the total; 82% at 31 December 2016 (2015: 79%). 
 
   Investment and interest income in 2016 was GBP53.1 million, an increase 
of GBP20.5 million on 2015 (GBP32.6 million). GBP9.2 million of the 
increase is due to a release of an accrual relating to quota share 
reinsurance arrangements, whilst GBP4.9m of the increase relates to 
unrealised gains on forward foreign exchange contracts. The balance is 
due to additional investment income earned on higher average balances. 
 
   The underlying rate of return for the year (excluding the reinsurance 
accrual) on the Group's cash and investments was 1.4% (2015: 1.3%). 
 
   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. 
 
   Cash flow 
 
 
 
 
GBPm                                                  2014     2015     2016 
Operating cash flow, before transfers to 
 investments                                           521.9    487.2    525.1 
Transfers to financial investments                   (258.4)  (112.5)   (18.1) 
Operating cash flow                                    263.5    374.7    507.0 
Tax payments                                          (77.0)   (63.8)   (74.6) 
Investing cash flows (capital expenditure)            (50.6)   (47.8)   (31.6) 
Financing cash flows                                  (65.8)  (256.3)  (364.7) 
Foreign currency translation impact                      3.0      2.6     25.2 
Net cash movement                                       73.1      9.4     61.3 
Movement in unrealised gains on investments             10.9   (12.6)     35.2 
Movement in accrued interest                            22.8     29.5     43.4 
Net increase in cash and financial investments         365.2    138.8    158.0 
 
 
   The main items contributing to the operating cash inflow are as follows: 
 
 
 
 
GBPm                                                    2014    2015   2016 
Profit after tax                                        281.6   291.8  214.1 
 
Change in net insurance liabilities                     187.5   148.7  206.8 
Net change in trade receivables and liabilities        (34.7)  (55.7)   25.3 
Non-cash income statement items                          18.4    25.5   14.6 
Taxation expense                                         69.1    76.9   64.3 
Operating cash flow, before transfers to investments    521.9   487.2  525.1 
 
   Total cash plus investments increased by GBP158 million or 6% (2015: 
GBP139 million, 6%). 
 
   Capital structure and financial position 
 
   A key feature of the business model is the extensive use of co- and 
reinsurance across the Group. The Group's co-insurance and quota share 
reinsurance arrangements for the UK Car insurance business are in place 
until at least the end of 2018. In 2017 and 2018, the Group will reduce 
its net share of that business from 25% to 22%. 
 
   Similar long term arrangements are in place in the Group's International 
Insurance operations and UK Household Insurance business. 
 
   The Group continues to manage its capital to ensure that all entities 
within the Group are able to continue as going concerns and that 
regulated entities comfortably meet regulatory capital requirements. 
Surplus capital within subsidiaries is paid up to the Group holding 
company in the form of dividends. 
 
   The Group's regulatory capital from January 2016 is based on the 
Solvency II Standard Formula, with a capital add-on to reflect 
recognised limitations in the Standard Formula with respect to Admiral's 
business (predominantly in respect of profit commission arrangements in 

co- and reinsurance agreements and risks arising from claims including 
Periodic Payment Order (PPO) claims). 
 
   The capital add-on to the Standard Formula for 2017 is subject to the 
usual regulatory approval process. The Group plans to submit an 
application for approval to use an internal model to calculate capital 
requirements during 2017. 
 
   The majority of the Group's capital requirement is derived from its 
European insurance operations, Admiral Insurance (Gibraltar) Limited 
(AIGL) and Admiral Insurance Company Limited (AICL). The estimated (and 
unaudited) Solvency II position for the Group at the date of this report 
was as follows: 
 
   Group capital position 
 
 
 
 
Group                                           GBPbn 
Eligible Own Funds (pre 2016 final dividend)     1.07 
2016 final dividend                              0.14 
Eligible Own Funds (post 2016 final dividend)    0.93 
Solvency II capital requirement(*1)              0.44 
Surplus over regulatory capital requirement      0.49 
Solvency ratio (post dividend)(*2)               212% 
 
   *1  Solvency capital requirement includes updated capital add-on which 
is subject to regulatory approval. 
 
   *2  Solvency ratio calculated on a volatility adjusted basis. 
 
   The Group's capital includes GBP200 million ten year dated subordinated 
bonds. The rate of interest is fixed at 5.5% and the bonds mature in 
July 2024. The bonds qualify as tier two capital under the Solvency II 
regulatory regime. 
 
   Estimated sensitivities to the current Group solvency ratio are 
presented in the table below. These sensitivities cover the two most 
material risk types, insurance risk and market risk, and within these 
risks cover the most significant elements of the risk profile. Aside 
from the catastrophe events, estimated sensitivities have not been 
calibrated to individual return periods. 
 
   Solvency ratio sensitivities 
 
 
 
 
UK Motor - incurred loss ratio +5%              -31% 
UK Motor - 1 in 200 catastrophe event            -1% 
UK Household - 1 in 200 catastrophe event        -2% 
Interest rate - yield curve down 50 bps         -12% 
Credit spreads widen 100 bps                     -4% 
Currency - 25% movement in euro and US dollar    -3% 
ASHE - long term inflation assumption up 0.5%    -9% 
 
   Taxation 
 
   The tax charge reported in the Consolidated Income Statement is GBP64.3 
million (2015: GBP76.9 million), which equates to 23.1% (2015: 20.9%) of 
profit before tax. The higher effective rate of taxation compared to 
2015 results from the unrecognised deferred tax asset arising on losses 
in the Group's US businesses. 
 
   The Group's results are presented in the following sections as UK 
Insurance, International Car Insurance and Price Comparison. 
 
   UK Insurance 
 
   UK Insurance Review - Cristina Nestares, CEO UK Insurance 
 
   It's always fun to write an annual review like this - and always 
surprising when we look back and remember how much has happened and 
changed in just 12 months. 
 
   Clearly the reported results of the UK Car insurance business have been 
impacted by the change in the Ogden discount rate, but Alastair and 
Geraint have covered this in detail, so I will focus on the underlying 
business. 
 
   One of the more obvious achievements is the rate of growth of the car 
insurance segment. We grew by 11% during 2016, adding almost 350,000 to 
the customer base, which is about the same as we added in the previous 
four years combined. But the more encouraging aspect is that this wasn't 
achieved through chasing volume through price cuts and acquisition spend, 
but through sensible underwriting and leveraging the still-growing price 
comparison distribution channel that has facilitated our growth over the 
last ten years and more. 
 
   What do I mean by sensible underwriting? We've always approached pricing 
in a rational way, growing when we think it's the right time, and 
holding back when the market is looking less attractive. That means that 
we grew very modestly (in Admiral's historical context at least) over 
the previous two or three years, but grew significantly more during 2016 
as the market continued to increase prices quite significantly. We've 
also seen some slight de-risking in our portfolio as some of our 
competitors have been changing prices to attract higher-premium (higher 
risk) drivers, and we've consciously decided not to follow. 
 
   Increasing market prices, whilst good for profitability, does however 
bring some additional scrutiny both from the media and regulators. 
Following the focus during the previous hardening part of the cycle, the 
Government announced a number of changes in February, which are aimed at 
reducing the costs of small bodily injury claims and therefore the cost 
of motor insurance. The Prisons and Courts Bill included a number of 
changes that will affect the process of dealing with minor whiplash 
claims, including tariff-based damages that award compensation based on 
the severity of the injury, and the banning of offers before medical 
evidence is obtained. The Government also announced its intention to 
increase the small claims limit for motor accident claims from GBP1,000 
to GBP5,000. All of these changes will bring down the cost of claims, 
but will level the playing field and make it a little harder for 
insurers to obtain a competitive advantage. However, we think that 
Admiral is well placed because of the increased importance of a quick 
and efficient claims handling process, which is one of Admiral's 
historical strengths. 
 
   Whilst the return to growth in our car insurance business was 
encouraging, the 50% growth of our household business was particularly 
impressive, to end the year with nearly 470,000 customers. A key driver 
of that growth was an improvement in our online customer journey, but 
equally pleasing was that growth was driven both by a growing price 
comparison market and more customers being drawn directly to our 
household product. 
 
   Aside from top line growth, we benefitted from another relatively benign 
year in terms of weather events, and an improvement in claims frequency. 
We made some efficiency gains from our increased size and website 
development, and the small decrease in the underlying expense ratio 
(despite the addition of the Flood Re levy in the year) contributed to 
another improvement in the reported result. We expect distribution to 
continue moving towards price comparison in 2017, which will enable us 
to continue growing our book in a very familiar channel. 
 
   Finally, the mention of efficiency and an ability to react to changes 
(whether externally or internally driven) brings me onto the IT 
transformation process we have undertaken to replace the insurance 
policy system that we selected before we launched back in 1993. It 
served us amazingly well for the first 20+ years, but the Guidewire 
platform we've successfully rolled out over the last 12 months is a key 
development that will enable us to continue testing, learning and 
growing and succeeding. In summary, a big change that will paradoxically 
allow us to remain the same innovative company we've always been. 
 
   UK Insurance review 
 
   UK Insurance financial performance 
 
 
 
 
GBPm                                  2014     2015     2016 
Turnover(*1)                         1,632.0  1,760.2  2,063.1 
Total premiums written(*1)           1,481.5  1,590.4  1,862.6 
Net insurance premium revenue          399.0    397.4    454.4 
Underwriting profit(*1)                161.7    198.3    109.2 
Profit commission and other income     236.2    245.9    229.3 
UK Insurance profit before tax         397.9    444.2    338.5 
 
 
   *1  Alternative Performance Measures - refer to the end of this report 
for definition and explanation 
 
   Split of UK Insurance profit before tax 
 
 
 
 
GBPm                  2014   2015   2016 
Car                   398.0  443.0  335.8 
Household             (0.1)    1.2    2.7 
UK Insurance profit   397.9  444.2  338.5 
 
 
   Key performance indicators 
 
 
 
 
                                 2014   2015   2016 
Vehicles insured at year end     3.15m  3.30m  3.65m 
Households insured at year end   0.16m  0.31m  0.47m 
Total UK Insurance customers     3.31m  3.61m  4.12m 
 
   UK Insurance financial performance 
 
   UK insurance includes the results of the UK Car and UK Household 
insurance segments. 
 
   Admiral delivered strong growth in turnover and customers in its UK 
Insurance business in 2016, taking advantage of favourable market 
conditions with increasing prices and shopping activity. UK insurance 
turnover of GBP2.06 billion increased by 17% (2015: GBP1.76 billion) 
primarily due to growth in customer numbers in both UK Car and UK 
Household. Net revenue increased by 8% to GBP770.9 million (2015: 
GBP711.2 million).  Increases in average premiums in UK Car insurance 
also contributed to a 17% increase in total premiums written to GBP1.86 
billion (2015: GBP1.59 billion). 
 
   Profit was lower in 2016 at GBP338.5 million (2015: GBP444.2 million) 
due to the impact of the change in the Ogden discount rate which is 
discussed above.  If the rate had remained unchanged, UK Insurance 
profit would have been GBP444 million. 
 
   UK Car Insurance financial review 
 
 
 
 
GBPm                                          2014     2015     2016 
Turnover(*1)                                 1,602.7  1,708.2  1,987.0 
Total premiums written(*1)                   1,453.1  1,539.7  1,789.3 
Net insurance premium revenue                  394.3    386.5    437.4 
Investment income                               11.5     26.1     39.3 
Net insurance claims                         (198.3)  (161.3)  (304.7) 
Net insurance expenses                        (44.6)   (52.1)   (61.0) 
Underwriting profit(*1)                        162.9    199.2    111.0 
Profit commission                               71.8     85.2     52.7 
Underwriting profit plus profit commission     234.7    284.4    163.7 
Net other income                               140.7    131.9    138.6 

Instalment income                               22.6     26.7     33.5 
UK Car Insurance profit before tax             398.0    443.0    335.8 
 
 
   *1  Alternative Performance Measures - refer to the end of this report 
for definition and explanation 
 
   Split of underwriting profit 
 
 
 
 
GBPm                  2014   2015   2016 
Motor                 144.2  183.2   93.6 
Additional products    18.7   16.0   17.4 
Underwriting profit   162.9  199.2  111.0 
 
 
   Key performance indicators 
 
 
 
 
                                                  2014       2015       2016 
Reported motor loss ratio(*1,*2)                    68.6%      64.1%     73.3% 
Reported motor expense ratio(*1,*3)                 14.4%      16.9%     17.5% 
Reported motor combined ratio                       83.0%      81.0%     90.8% 
Written basis motor expense ratio                   16.0%      16.3%     16.5% 
Reported total combined ratio(*1,*4)                79.5%      78.2%     87.5% 
Claims reserve releases - original net 
share(*1,*5)                                     GBP66.8m   GBP84.6m  GBP58.3m 
Claims reserve releases - commuted 
reinsurance(*1,*6)                               GBP70.6m   GBP88.8m  GBP17.1m 
Total claims reserve releases                   GBP137.4m  GBP173.4m  GBP75.4m 
Vehicles insured at year end                        3.15m      3.30m     3.65m 
Other Revenue per vehicle                           GBP67      GBP63     GBP62 
 
   *1  Alternative Performance Measures - refer to the end of this report 
for definition and explanation 
 
   *2  Motor loss ratio adjusted to exclude impact of reserve releases on 
commuted reinsurance contracts. Reconciliation in note 12b. 
 
   *3  Motor expense ratio is calculated by including claims handling 
expenses that are reported within claims costs in the income statement. 
Reconciliation in note 12c. 
 
   *4  Reported total combined ratio includes additional products 
underwritten by Admiral. 
 
   *5  Original net share shows reserve releases on the proportion of the 
portfolio that Admiral wrote on a net basis at the start of the 
underwriting year in question. 
 
   *6  Commuted reinsurance shows releases on the proportion of the account 
that was originally ceded under quota share reinsurance contracts but 
has since been commuted and hence reported through underwriting and not 
profit commission. 
 
   UK Car Insurance financial performance 
 
   UK Car Insurance benefited from continued success in attracting and 
retaining motor customers in a competitive UK market and this, together 
with higher average motor premiums, contributed to an increase in UK Car 
turnover of 16% to GBP1.99 billion (2015: GBP1.71 billion). Net revenue 
increased by 7% to GBP748.6 million (2015: GBP700.3 million).  The 
number of vehicles insured in the UK business increased by 11% to 3.65 
million (2015: 3.30 million). Admiral continued to increase its prices 
during 2016 and saw average premiums written increase by approximately 
4%. 
 
   Profit 
 
   As a result of the impact of the change in Ogden, profit was lower in 
2016 (GBP335.8 million v GBP443.0 million in 2015). Excluding the Ogden 
impact, profit would have been GBP441 million. The combined ratio 
increased to 87.5% (2015: 78.2%), or 77.8% pre Ogden.  The underlying UK 
Car insurance profit was also impacted by a number of other factors: 
 
 
   -- Significantly higher net insurance premium revenue (GBP437.4 million v 
      GBP386.5 million) resulting from the growth in the portfolio over the 
      past year 
 
   -- Underlying positive back year claims development, though lower reserve 
      releases on the portion of reserves originally reinsured but now commuted 
 
   -- Higher expense ratio of 17.5% (2015: 16.9%) as a result of strong growth 
      in new business 
 
   -- Higher contribution from Other Revenue sources (GBP172.1 million v 
      GBP158.6 million) resulting from growth in the portfolio, with Other 
      Revenue per Vehicle stable when compared with 2015 
 
   -- Higher investment return (GBP39.3 million v GBP26.1 million) as explained 
      in the Investments and Cash section above 
 
   Underwriting result and profit commission 
 
   The UK Car Insurance motor combined ratio is shown below: 
 
 
 
 
UK Car Insurance motor combined ratio                 2014   2015   2016 
Loss ratio excluding reserve releases from original 
 net share and commuted reinsurance                   86.9%  87.7%  87.7% 
Reserve releases - original net share                 18.3%  23.6%  14.4% 
Loss ratio net of releases - original net share(*1)   68.6%  64.1%  73.3% 
Expense ratio                                         14.4%  16.9%  17.5% 
Combined ratio - original net share(*1)               83.0%  81.0%  90.8% 
 
 
   *1  Ratios calculated on original net share use the proportion of the 
portfolio that Admiral wrote on a net basis at the start of the 
underwriting year in question. 
 
   The reported motor combined ratio was 90.8% (2015: 81.0%) (both figures 
exclude the impact of reserve releases from commuted reinsurance 
contracts) and was materially impacted by the change in Ogden discount 
rate and the resulting increase in ultimate loss ratios. Despite the 
Ogden impact, the Group continued to see positive claims development 
during 2016 that resulted in improvements in the projected ultimate loss 
ratios, especially for the 2012 to 2015 underwriting years. 
 
   Excluding reserve releases, the loss ratio remained flat at 87.7% (2015: 
87.7%). Excluding the Ogden impact, the loss ratio before reserve 
releases would have improved to 85.6% as a result of the more favourable 
loss ratio assumptions for business earned during 2016 compared to 2015. 
 
   Claims reserving 
 
   Admiral's reserving policy (both within the claims function and in the 
financial statements) is initially to reserve conservatively, above 
internal and independent projections of actuarial best estimates. This 
is designed to create a margin held in reserves to allow for unforeseen 
adverse development in open claims and typically results in Admiral 
making above industry average reserve releases. Admiral's booked claims 
reserves continue to include a significant margin above projected best 
estimates of ultimate claims costs. 
 
   As profit commission income is recognised in the income statement in 
line with loss ratios accounted for on Admiral's own claims reserves, 
the reserving policy also results in profit commission income being 
deferred and recognised over time. 
 
   The projected ultimate loss ratio for Admiral for the 2016 accident year 
is 82%, which is in line with the projection of the previous year at the 
same point in its development despite the Ogden discount rate change. 
 
   The earned motor expense ratio increased modestly to 17.5% from 16.9% 
mainly reflecting the increase in acquisition costs resulting from the 
strong growth in the business. The written basis expense ratio also 
increased to 16.5% from 16.3% for similar reasons. 
 
   The projected ultimate combined ratio (ultimate loss ratio plus written 
expense ratio) for Admiral for the 2016 accident year is 98%. The 
reported combined ratio for the UK market (excluding Admiral) for 2015, 
excluding reserve releases was 115%. 
 
   UK Car Insurance - co-insurance and reinsurance 
 
   Admiral makes significant use of proportional risk sharing agreements, 
where insurers outside the Group underwrite a majority of the risk 
generated, either through co-insurance or quota share reinsurance 
contracts. These arrangements include profit commission terms which 
allow Admiral to retain a significant portion of the profit generated. 
 
   The two principal advantages of the arrangements are: 
 
   - Capital efficiency: a significant proportion of the capital supporting 
the underwriting is held outside the Group. As Admiral is typically able 
to retain much of the profit generated via profit commission (refer 
below for further details), the return on Group capital is higher than 
in an insurance company with a standard business model. 
 
   - Risk mitigation: co- and reinsurers bear their proportional shares of 
claims expenses and hence provide protection should results worsen 
substantially. 
 
   The Munich Re Group will underwrite 40% of the UK motor business until 
at least 2020. 30% of this total is on a co-insurance basis, with the 
remaining 10% under a quota share reinsurance agreement from 2017 
onwards. 
 
   The Group also has other quota share reinsurance arrangements confirmed 
to the end of 2018 covering 38% of the business written. 
 
   The Group has reduced its net underwriting share from 25% to 22% with 
effect from 2017. 
 
   The nature of the co-insurance proportion underwritten by Munich Re (via 
Great Lakes, a subsidiary of Munich Re) is such that 30% of all motor 
premium and claims for the 2017 year will accrue directly to Great Lakes 
and will not appear in the Group's income statement. Similarly, Great 
Lakes reimburses the Group for its proportional share of expenses 
incurred in acquiring and administering the motor business. This share 
was 40% previously. 
 
   Admiral has options to commute quota share reinsurance contracts and 
typically does so after two or three years of an underwriting year's 
development when there is a reasonably certain view on the year's 
outcome. 
 
   After commutation, movements in booked loss ratios result in reduced or 
increased net claims costs (and not profit commission). 
 
   At 31 December 2016, all material UK quota share reinsurance contracts 
for underwriting year up to and including 2014 had been commuted. All 
reinsurance for the 2015 and 2016 years remain in effect. 
 
   UK Household Insurance - reinsurance 
 
   The Group's Household business is also supported by proportional 
reinsurance arrangements covering 70% of the risk. For the 2016 year the 
business is shared between Munich Re, 40% and Swiss Re, 30%. The 
arrangements for 2017 will remain the same. In addition, the Group has 
non-proportional reinsurance to cover the risk of catastrophes stemming 

from weather events. 
 
   Profit commission 
 
   Admiral is potentially able to earn material amounts of profit 
commission revenue from co- and reinsurance partners, depending on the 
profitability of the insurance business underwritten by the partner. 
Revenue is recognised in the income statement in line with the booked 
loss ratios on Admiral's retained underwriting. 
 
   In 2016 Admiral recognised UK car insurance profit commission revenue of 
GBP52.7 million down from GBP85.2 million in 2015. If reserve releases 
from business that was originally ceded under quota share reinsurance 
contracts that have since been commuted, are added to profit commission, 
the total for 2016 would be GBP69.8 million compared to GBP174.0 million 
in 2015, a decrease of 60%. The decrease arose mainly due to less 
positive development of prior year booked loss ratios as a result of the 
change in Ogden discount rate. 
 
   Note 5c to the financial statements analyses profit commission income by 
underwriting year. 
 
   Commutations of quota share reinsurance 
 
   Admiral tends to commute its UK Car Insurance quota share reinsurance 
contracts for an underwriting year 24 months from inception, assuming 
there is sufficient confidence in the profitability of the business 
covered by the reinsurance contract. 
 
   After the commutation is executed, movements in booked loss ratios 
result in reserve releases (or strengthening if the booked loss ratio 
were to increase) rather than reduced or increased reinsurance claims 
recoveries or profit commission. 
 
   During 2016, reinsurance contracts covering the 2014 underwriting year 
were commuted. Whilst there is a satisfactory level of confidence in the 
ultimate outcome of that year, Admiral's prudent approach to booking 
loss ratios, which tend to improve over time from an initial cautious 
level to the ultimate outcome, has meant that the 2014 year is booked at 
a loss making combined ratio. Refer to note 5 (vi) of the financial 
statements for analysis of reserve releases on commuted quota share 
reinsurance contracts. 
 
   The ultimate projection of the 2014 year continues to show a profitable 
outcome. 
 
   A further impact of the 2014 year commutation is a release of an accrual 
held for notional investment income relating to the funds-withheld 
nature of the contract. As noted on page 5, movements in the notional 
investment income accruals resulted in an increase in investment income 
of GBP9.2 million compared to 2015. 
 
   Other Revenue 
 
   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 net Other Revenue are: 
 
 
   -- 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 fees and referral income 
 
   -- Interest charged to customers paying for cover in instalments 
 
 
   Contribution from Other Revenue (net of costs) increased by 9% to 
GBP189.5 million (2015: GBP174.6 million). Whilst there were a number of 
smaller offsetting changes within the total, the main reason for the 
increase is the growth in the portfolio in the year. 
 
   Other revenue was equivalent to GBP62 per vehicle (gross of costs; 2015: 
GBP63). Net Other Revenue (after deducting costs) per vehicle was GBP54, 
in line with 2015. 
 
   UK Car Insurance Other Revenue - analysis of contribution: 
 
 
 
 
GBPm                                                  2014    2015    2016 
Contribution from additional products and fees        177.8   173.7   185.7 
Contribution from additional products underwritten 
 by Admiral(*1)                                        18.7    16.0    17.4 
Instalment income                                      22.6    26.7    33.5 
Other revenue                                         219.1   216.4   236.6 
Internal costs                                       (37.1)  (41.8)  (47.1) 
Net other revenue                                     182.0   174.6   189.5 
Other revenue per vehicle(*2)                         GBP67   GBP63   GBP62 
Other revenue per vehicle net of internal costs       GBP58   GBP54   GBP54 
 
   *1  Included in underwriting profit in income statement but re-allocated 
to Other Revenue for purpose of KPIs. 
 
   *2  Other revenue (before internal costs) divided by average active 
vehicles, rolling 12 month basis. 
 
   Instalment income 
 
   Instalment income reflects amounts charged to customers paying for cover 
in instalments. During 2016 Admiral earned GBP33.5 million from 
instalment income, up 25% on the prior period (2015: GBP26.7 million) 
for a number of reasons including an increase in average premium, 
customer numbers and the proportion of customers paying by instalment. 
 
   Additional products underwritten by Admiral 
 
   Besides car insurance, there are a number of other products underwritten 
by Admiral that are core to providing motor insurance to customers 
(personal injury insurance, breakdown cover and car hire cover). 
Contribution from these products underwritten by Admiral during 2016 was 
GBP17.4 million (2015: GBP16.0 million). This is included in 
underwriting profit in the income statement, but reallocated to Other 
Revenue for the purpose of management key performance indicators. 
 
   UK Household Insurance financial performance 
 
 
 
 
GBPm                                       2014   2015   2016 
Turnover(*1)                                29.3   52.0   76.1 
Total premiums written(*1)                  28.4   50.7   73.3 
Underwriting loss(*1)                      (1.2)  (0.9)  (1.8) 
Profit commission and other income           1.1    2.1    4.5 
UK Household insurance profit before tax   (0.1)    1.2    2.7 
 
   *1  Alternative Performance Measures - refer to the end of this report 
for definition and explanation 
 
   Key performance indicators 
 
 
 
 
                                     2014     2015     2016 
Reported household loss ratio         72.3%    75.2%    76.5% 
Reported household expense ratio      53.2%    33.0%    34.1% 
Reported household combined ratio    125.5%   108.3%   110.6% 
Households insured at year end      162,600  310,400  468,700 
 
   UK Household Insurance financial performance 
 
   UK Household Insurance was launched in December 2012 under the Admiral 
brand. 
 
   The number of properties insured increased by 51% to 469,000 (2015: 
310,000) and turnover increased by 46% to GBP76.1 million (2015: GBP52.0 
million). Net revenue increased by 72% to GBP22.3 million (2015: GBP13.0 
million).  Profit from Household doubled from a year earlier to GBP2.7 
million (2015: GBP1.2 million). Its expense ratio is already materially 
lower than the UK market ratio. 
 
   Regulatory environment 
 
   The UK Insurance business operates predominantly under the regulation of 
the UK Financial Conduct Authority (FCA) and Prudential Regulatory 
Authority (PRA), and through a Gibraltar-based insurance company, under 
the Financial Services Commission (FSC) in that territory. 
 
   The FCA and PRA regulate the Group's UK registered subsidiaries 
including EUI Limited (an insurance intermediary) and Admiral Insurance 
Company Limited (AICL; an insurer), whilst the FSC regulates Admiral 
Insurance (Gibraltar) Limited (AIGL; also an insurer). 
 
   The Group is required to maintain capital at a level prescribed by the 
lead regulator for Solvency II purposes, the PRA, and maintains a 
surplus above that required level at all times. 
 
   International Car Insurance 
 
   International Car Insurance review 
 
   Spain - Sarah Harris - CEO, Admiral Seguros 
 
   After achieving breakeven on an underwriting year basis in 2015, our 
focus in Spain in 2016 has been on sustainable growth. We increased 
customer numbers by 18% with pleasing technical results. 
 
   It was a year of change in the Spanish market, with the introduction of 
the new "Baremo" regulating indemnities paid in bodily injury cases. The 
Baremo change increases claims costs, especially for more serious 
injuries. It adds pressure to an auto-insurance market that reported 
underwriting losses in 2015 for the first time in more than a decade. 
 
   We had hoped that the Baremo would trigger a price reaction and 
insurance shopping. Many companies did raise prices towards the 
beginning of the year, but changes were muted and not enough to 
encourage consumers to shop around. We expect 2016 will turn out to be 
another unprofitable year for the market as a whole. 
 
   In this context we made strong progress against our growth objective. 
Both acquisition and retention processes were significantly improved. We 
modernized our website allowing customers to buy from us more easily. 
Investment in our Qualitas Auto brand - via a campaign starring Pierce 
Brosnan - raised brand awareness to 57%. Meanwhile, strong technical 
results allowed us to reduce prices and take a larger share of the price 
comparison channel. 
 
   And the outlook for 2017? At a market level we don't expect much change. 
Our focus will continue to be on scaling up the business in a 
sustainable way. 
 
   Italy - Costantino Moretti - CEO, ConTe 
 
   ConTe closed for the third year in a row in profit. Market average 
premium fell by 4.5% but in the last quarter we have seen timid signals 
of market cycle upturn including a slight increase in claims frequency 
and the end of the average premium downtrend. Despite this scenario, we 
consciously decided to grow in 2016 and our active customer base grew by 
over 30% year-on-year up to 415,000. This result is a mix of three 
effects: an increase in quote volumes of price comparison sites; the 
improvement of our customer journey; and the growth in brand awareness 
generated by the new TV campaign and the second year of the Serie B 
Football League sponsorship. To better serve our customers, we are 
continuing to invest in technology and develop our services. 

 
   The direct channel now represents around 12% of the overall motor market 
in Italy and the comparison sites are growing at an encouraging pace. 
 
   The back years continue to develop well and the latest actuarial 
projections indicate that 2011 was profitable on an underwriting basis 
as is already the case for 2012, 2013 and 2014. 
 
   Putting together all the pieces of the puzzle, 2016 was a good year, 
where ConTe grew again and invested to reinforce technological 
capabilities and brand awareness and, as a consequence, built a solid 
basis for sustainable growth in the future. 
 
   USA - Kevin Chidwick - CEO, Elephant Auto 
 
   The US car insurance market grew again in 2016. Definitive numbers are 
not yet available, but general consensus is that premium increases are 
outrunning claims inflation following last year's deterioration in the 
industry loss ratio. We estimate claims inflation to be running at 
c.3-5% and premium increases at c.5-7%. 2016 has seen claims frequency 
increasing across the industry as miles driven has increased. Texas in 
particular has seen some large price increases this year as unusually 
severe weather events in the first half of the year caused claims to 
spike in the state. 
 
   Elephant also grew again in 2016. Written premium increased 46% to $198m, 
as we increased our turnover in each of our existing states as well as 
launching into two new states in the year. Elephant started writing car 
insurance in Indiana and Tennessee in 2016. We continued to see very 
satisfactory results from our marketing initiatives and were able to 
increase our share of sales in both Texas and Virginia despite price 
increases applied to both states. The loss ratio improved nicely in the 
year. We also saw some expense ratio improvement from economies of scale, 
offset by an increase in our marketing investment. The combined effect 
of this was an improvement in the combined ratio on a written basis of 
11 percentage points. 
 
   Elephant expects to continue to grow in 2017 and to see further 
improvement in the combined ratio as a result of further progress on 
each of the core metrics as we move the business towards the goal of 
profitability. We do not anticipate further new states in the next 12 
months, rather an increased investment in our existing states and 
development of the marketing efforts in the two new states launched in 
2016. 
 
   France - Pascal Gonzalvez - CEO, L'olivier - assurance auto 
 
   Despite challenging market conditions (stable market prices and a flat 
aggregator market), L'olivier -assurance auto managed to play its cards 
right with strong growth. 
 
   We grew the business substantially again and we ended the year up, with 
61% more customers. The effects of "Loi Hamon" (the law that made the 
switching process much smoother) are becoming more tangible. 
 
   L'olivier accelerated its branding efforts with two new TV spots focused 
on service quality, helping to demonstrate to customers that direct 
insurance and good quality are not mutually exclusive. As a consequence, 
we managed to capture more customers than ever from traditional channels 
willing to switch to a direct insurer. On top of the branding efforts, 
we kept building strong foundations in 2016. Technical results improved 
significantly thanks to our distinctive pricing process in the market, 
helping us to build a clear competitive advantage in a high combined 
ratio market. 
 
   Market profitability didn't improve in 2016. Indeed, for the second 
consecutive year, the highly competitive environment hampered insurers' 
willingness to increase motor insurance prices. Consequently, market 
combined ratio remained high (it is expected to be around 104-105%). In 
the past, weak technical results were offset by investment results but 
in a low interest rate environment, this is not sustainable anymore. In 
this context, motor insurance prices are expected to increase in 2017 by 
2-3% and several insurers have already announced some price increases 
(though more discreetly than in the previous years to avoid media 
noise). 
 
   With strong foundations, L'olivier - assurance auto is well prepared to 
scale up the business over the coming years and 2017 should be another 
year of strong growth. 
 
   International Car Insurance review 
 
   International Car Insurance financial performance 
 
 
 
 
GBPm                                  2014    2015    2016 
Turnover(*1)                          206.2   232.4   365.9 
Total premiums written(*1)            185.4   213.3   331.3 
 
Net insurance premium revenue          58.1    62.3    91.3 
Investment income                       0.2       -     0.4 
Net insurance claims                 (50.5)  (50.9)  (75.5) 
Net insurance expenses               (34.0)  (40.1)  (46.2) 
 
Underwriting result(*1)              (26.2)  (28.7)  (30.0) 
Net other income                        6.3     6.5    10.6 
 
International Car Insurance result   (19.9)  (22.2)  (19.4) 
 
 
   Key performance indicators 
 
 
 
 
                                            2014     2015     2016 
Loss ratio(*2)                                 77%      77%      76% 
Expense ratio(*2)                              50%      49%      49% 
Combined ratio(*3)                            127%     126%     125% 
Combined ratio, net of Other revenue(*4)      116%     115%     113% 
Vehicles insured at period end             592,600  673,000  864,200 
 
 
   *1  Alternative Performance Measures - refer to the end of this report 
for definition and explanation 
 
   *2  Loss ratios and expense ratios have been adjusted to remove the 
impact of reinsurer caps so the underlying performance of the business 
is transparent. 
 
   *3  Combined ratio is calculated on Admiral's net share of premiums and 
excludes Other Revenue. It excludes the impact of reinsurer caps. 
Including the impact of reinsurer caps the reported combined ratio would 
be 2016: 133%; 2015: 146%; 2014: 145%. 
 
   *4  Combined ratio, net of Other Revenue is calculated on Admiral's net 
share of premiums and includes Other Revenue. Including the impact of 
reinsurer caps the reported combined ratio, net of Other Revenue would 
be 2016: 122%; 2015: 136%; 2014: 134%. 
 
   Geographical analysis(*1) 
 
 
 
 
2016                              Spain    Italy   France    US      Total 
Vehicles insured at period end   189,200  415,500  91,500  168,000  864,200 
Turnover (GBPm)                     49.8    118.2    38.3    159.6    365.9 
 
 
 
 
2015                              Spain    Italy   France    US      Total 
Vehicles insured at period end   160,700  315,300  56,800  140,200  673,000 
Turnover (GBPm)                     38.6     77.9    21.2     94.7    232.4 
 
 
   *1  Alternative Performance Measures - refer to the end of this report 
for definition and explanation 
 
   International Car Insurance financial performance 
 
   Admiral's international insurance businesses continued to grow by 28%, 
adding over 191,000 customers during the year. Turnover grew by 57% to 
GBP365.9 million (2015: GBP232.4 million). Net revenue increased by 49% 
to GBP107.3 million (2015: GBP72.2 million).  Turnover and customers in 
these businesses represent 14% (2015: 11%) and 17% (2015: 15%) of the 
Group totals respectively. 
 
   The combined ratio improved marginally to 125% (2015: 126%). Continued 
improvement in ConTe's prior years claims development and higher net 
insurance premium revenue has been offset by continued investment in 
operations in France and the US, resulting in an decreased loss of 
GBP19.4 million in 2016 (2015: GBP22.2 million). The expense ratio has 
remained level at 49% (2015: 49%). The expense ratio is high in 
comparison to Admiral's UK business because of high acquisition costs as 
the businesses grow and also the continued need to build scale. There 
are also market specific reasons why the expense ratios are higher, for 
example higher acquisition costs in the US cause a strain on the expense 
ratio when the business is growing. 
 
   As the Group's international insurance operations grow, it is expected 
that they will make losses until appropriate scale has been achieved. 
The Group is satisfied with the progress each business continues to make 
towards the goal of becoming a sustainable, growing, profitable 
operation. 
 
   Admiral Seguros (Spain) which launched in 2006 is the oldest of 
Admiral's international operations and operates under two brands, 
Balumba and Qualitas Auto. Admiral Seguros focused on growth in 2016, 
following the achievement of break-even on an underwriting year basis in 
2015, and took advantage of market conditions resulting in growth of 18% 
and ending the year with 189,200 customers at the end of 2016. 
 
   The Group's largest international operation is ConTe in Italy, which 
insured 415,500 vehicles at the end of 2016, up 32% on 2015. ConTe was 
launched in 2008 and in 2016 continued to experience positive 
development in the projected ultimate outcomes of most underwriting 
years allowing further reserve releases in 2016 and a third year of 
profits. Despite this, ConTe continues to hold a prudent margin in its 
claims reserves above actuarial best estimate. 
 
   Admiral's youngest and smallest international insurance business is 
L'olivier - assurance auto, which launched in 2010 in France. L'olivier 
insured 91,500 vehicles at the end of 2016, up over 60% on the prior 
year and has focused on growth and accelerating brand development during 
the year. 
 
   The consolidated result of Admiral's insurance operations in Spain, 
Italy and France was a loss of GBP3.7 million, almost 50% down on 2015 
(2015: GBP7.0 million). The combined ratio net of other revenue 
(excluding the impact of reinsurer caps) improved to 99% from 103% 
primarily due to improved claims experience. 
 
   In the USA, Admiral underwrites motor insurance in six states (Virginia, 
Maryland, Illinois, Texas, Indiana and Tennessee) through its Elephant 
Auto business, which launched at the end of 2009. At the end of 2016 
Elephant Auto insured over 168,000 vehicles, up 20% year-on-year. 

Turnover was GBP159.6 million, up almost 70% on the prior year (2015: 
GBP94.7 million). Elephant's result for the period was a loss of GBP15.7 
million, which is broadly consistent with GBP15.2 million in 2015, 
despite significant growth, and reflects the ongoing investment in the 
business. Elephant Auto's combined ratio net of other revenue improved 
from 134% in 2015 to 130% in 2016. 
 
   International Car Insurance co-insurance and reinsurance 
 
   As noted earlier, Admiral makes significant use of proportional risk 
sharing agreements, where insurers outside the Group underwrite a 
majority of the risk generated, either through co-insurance or quota 
share reinsurance contracts. 
 
   For the 2016 year Admiral retained 35% (Italy), 30% (France and Spain) 
and 33% (USA) of the underwriting risk respectively. The arrangements 
for 2017 will remain the same. 
 
   All contracts are subject to certain caps on the co-insurers and 
reinsurers' exposures and all contracts have profit commission terms 
that allow Admiral to receive a proportion of the profit earned on the 
underwriting once the business reaches cumulative profitability. The 
contracts include proportional sharing of Other Revenue. 
 
   Regulatory environment 
 
   Admiral's European insurance operations are generally subject to the 
same regulation as the UK Car Insurance business, details of which are 
summarised above, but also comply with local requirements as 
appropriate. The Group's US insurer, Elephant Insurance Company, is 
regulated by the Virginia State Corporation Commission's Bureau of 
Insurance. The Company is required to maintain capital at levels 
prescribed by the regulator and holds a surplus above these requirements 
at all times. 
 
   Price Comparison 
 
   Price Comparison Review 
 
   UK - Martin Coriat - CEO, Confused.com 
 
   Confused.com has seen a lot of changes in the market since it pioneered 
insurance comparison back in 2002, creating a growing and profitable 
industry while offering transparency and savings to British consumers. 
 
   The UK car insurance price comparison market is characterised as mature 
and highly competitive; with 70% penetration of annual new business car 
insurance sales and four leading players spending in excess of GBP150 
million on marketing each year. 
 
   In 2016 the high level of competition was further evidenced by the 
closure of Google's comparison operation. However, 2016 was also a year 
of strong growth for the market. Rising car insurance premiums, +14% as 
per the Confused.com/Willis Towers Watson Car Insurance Price Index, 
coupled with an all-time high in car sales for both new and used cars, 
helped to stimulate shopping. Current estimates indicate the market grew 
by around 8% in the year. 
 
   Confused.com benefited from this market growth but also its new 
strategic direction, taken half way through the year, to focus on 
motor-related products and services. As a result, Confused.com's revenue, 
profit and profit margin all increased to GBP86 million, GBP16.1 million 
and 19% respectively. (2015: GBP75 million; GBP12.5 million; and 17%). 
 
   A number of significant projects have been completed in the last 18 
months, including investment in our platform to improve conversion with 
a redesign of our website to allow better customer experience. In 
addition, we have reviewed our online marketing capabilities and 
established a new brand position as a car savings specialist to improve 
acquisition costs and grow our customer base. 
 
   The regulatory agenda was quite busy in 2016 and we are constantly 
working with the regulator to build an even more consumer focused 
product and offer in an ever changing technological landscape. 
 
   2016 has seen Confused.com successfully focus its attention on what it 
does best: saving customers money on their car insurance. Looking to 
2017, I know that every day, every week and every month is a battle that 
we must work hard to try and win. 
 
   Spain - Fernando Summers - CEO, Rastreator 
 
   During 2016 we continued with our growth, in terms of traffic, quotes 
and sales and therefore in results. We have consolidated our leadership 
position not only in car insurance comparison but also in other 
insurance products, and in our other verticals, telephony and finance. 
 
   We are already working with more than 150 partners, which include most 
of the biggest service providers in Spain - insurers, telecoms and 
banks. We have increased our reach and site visit frequency across all 
product lines, building on our brand awareness and preference. 
 
   We continue to work on our data strategy and we are well placed to be a 
strategic partner in terms of information and data not only for our 
partners, but also for other companies linked to our products. 
 
   For 2017 we will continue working on growth, converting our leads into 
sales, consolidation of our role as the multiproduct price comparison 
leader of the market and improving our existing products and value 
proposition. 
 
   France - Elena Betés - European Price Comparison Director 
 
   2016 was a challenging year for LeLynx.fr. 
 
   Based on the 2015 results, our expectations of the impact of Loi Hamon, 
in terms of changing behavior in 2016, were optimistic, however, the 
aggregator market only grew by 1%. The French consumer has not yet taken 
advantage of the opportunity to change their insurance provider, even if 
the process has been simplified substantially. 
 
   In an effort to unblock the market and as a way to build trust, LeLynx 
launched a TV campaign based on a well known celebrity. 
 
   Our vision is still positive on the French market and we remain 
competitive in an increasingly crowded environment. We are focused on 
maintaining our position as one of the market leaders, based on 
delivering a superior product and customer experience. 
 
   USA - Andrew Rose - CEO, compare.com 
 
   While there are some differences among the 51 distinct auto insurance 
markets, an overall steady economy with sustained low gas prices has led 
to an increase in miles driven among US consumers. In 2016, that led to 
higher frequency for many of our insurance partners and they took action 
with higher rates for consumers. This was both an opportunity as rate 
increases drive more consumers to shop and a challenge for us as 
carriers shrink risk appetite and convert at lower levels. We continued 
optimizing both our national and state-by-state advertising investments 
in light of the market conditions and our product offering to take 
advantage of this swing in the auto insurance pricing cycle. 
 
   Compare.com made significant strides this year on both the quality of 
our product offering and the efficiency of our customer acquisition. We 
nearly doubled our number of auto insurance brands under contract, our 
average number of rates returned nationwide and the number of policies 
we helped our carrier partners bind. We also launched a second product 
for customers looking for bundled auto and property policies, which is 
how many US consumers prefer to shop. Over the same period this year, 
our acquisition costs have dropped by nearly two thirds proving that we 
can compete on acquisition economics at a level only achieved by a few 
large personal lines insurance carriers in the US market. We outgrew our 
office building this year and moved our staff into a new space three 
times the size and customized to support the growth of our open and fun 
culture. 
 
   In early 2016, we also saw our largest auto insurance comparison 
competitor - Google - make the decision to withdraw for their own 
strategic reasons, which gave us the opportunity to use earmarked IT 
resources to broaden our relationships with key partners into even more 
states. We even added a partner in Hawaii, so we can now quote in 50 of 
the 51 markets. Other players continued to press into the comparison 
market with similar, but different, models. The state-by-state and 
carrier-by-carrier nature of the US insurance market gives us a solid 
foothold as the largest auto insurance comparison site in the US. 
 
   While delivering a smaller than planned loss in 2016 it was on a smaller 
than planned business. We remain very cognizant that we are one of 
Admiral's largest investments and while we do have the great opportunity 
to transform the US market we do not yet have the guarantee of doing so. 
In fact we anticipate delivering continued losses in 2017 depending on 
the dynamics and scale of the business and the overall behavior of the 
market. 
 
   While the US price comparison market starts 2017 still in its infancy, 
the potential remains enormous. A recent survey by Acxiom shows 
consumers are six times more likely to buy their insurance via a 
comparison site than in the past. Compare.com has built the carrier 
network as well as the acquisition funnel to be the leading player as 
consumers continue to adopt this better way to shop for insurance 
products. We remain cautiously optimistic about our opportunity for 
success in transforming the landscape of the US insurance market. 
 
   Price Comparison review 
 
   Price Comparison financial review 
 
 
 
 
GBPm                                              2014     2015     2016 
Revenue 
Car insurance price comparison                      81.0     82.3     97.7 
Other                                               26.5     25.8     31.5 
Total Revenue                                      107.5    108.1    129.2 
Expenses                                         (110.3)  (123.6)  (132.1) 
Loss before tax                                    (2.8)   (15.5)    (2.9) 
 
Confused.com profit                                 15.8     12.5     16.1 
International price comparison result             (18.6)   (28.0)   (19.0) 
                                                   (2.8)   (15.5)    (2.9) 
Group's share of profit/(loss) before tax (*1) 
Confused.com profit                                 15.8     12.5     16.1 
International price comparison result             (12.2)   (19.7)   (13.4) 

                                                     3.6    (7.2)      2.7 
 
 
   *1  Alternative Performance Measure - refer to the end of this report 
for definition and explanation 
 
   UK Price Comparison - Confused.com 
 
   The UK price comparison market remained very competitive in 2016, but 
favourable market conditions (rising prices and more shopping activity) 
saw more visitors to Confused.com's website and consequently higher 
quote volumes. Despite this competitive environment, Confused.com 
achieved a strong result, with revenue 14% higher than 2015 at GBP85.7 
million (2015: GBP75.4 million) from growth of 8% in the UK price 
comparison market as well as a new driver-centric strategy supported by 
new marketing . Profit increased by 29% to GBP16.1 million (2015: 
GBP12.5 million). 
 
   Confused.com's operating margin improved to 19% (2015: 17%). 
 
   International Price Comparison 
 
   Admiral operates three price comparison businesses outside the UK: in 
Spain (Rastreator), France (LeLynx) and the US (compare.com). Admiral 
Group owns 75% of Rastreator, with the remaining 25% owned by Mapfre. 
Admiral Group owns 71% of compare.com, with the remaining 29% owned by 
White Mountains and Mapfre. 
 
   The combined revenue from the European operations in 2016 increased to 
GBP36.2 million (2015: GBP28.6 million), reflecting nearly 10% more 
quotes provided to customers and improved conversion rates. Both 
Rastreator and LeLynx have strong brand recognition in their respective 
markets. The Group's share of the combined result for Rastreator and 
LeLynx was a profit of GBP2.8 million (2015: GBP1.8 million), the 
increase reflecting strong performance from Rastreator which continues 
to build on its multi-product strategy covering insurance, telephony and 
utilities, amongst other product lines, and which doubled its profits in 
2016, offset by marketing investment in LeLynx. Statutory profit before 
tax increased to GBP3.9 million (2015: GBP2.3 million). 
 
   The Group continues to invest in compare.com, its US comparison 
operation based in Virginia. During 2016 Admiral's share of 
compare.com's loss reduced to GBP16.2 million before tax (2015: GBP21.5 
million) reflecting a focus in key states on efficient advertising and 
reducing acquisition costs. Statutory loss before tax decreased to 
GBP22.8 million (2015: GBP30.3 million). The Group plans continued 
investment in compare.com during 2017 and anticipates that the Group's 
share of compare.com's losses for 2017 will be in the range of $15-25 
million. 
 
   The combined result for International Price Comparison was therefore a 
loss of GBP13.4 million (2015: loss GBP19.7 million) - the profit from 
the European operations offset by investment in compare.com. Statutory 
loss before tax was GBP19.0 million (2015: GBP28.0 million). 
 
   Preminen, the Group's newest price comparison operation continues to 
explore the potential of price comparison in new markets overseas, in 
partnership with Mapfre. 
 
   Regulatory environment 
 
   Confused.com is regulated by the Financial Conduct Authority (FCA) as an 
insurance intermediary and is subject to all relevant intermediation 
rules, including those on solvency capital. 
 
   The European operations are all structured as branches of UK companies, 
with the UK insurance intermediary permission passported into Europe. 
 
   compare.com is a regulated insurance agency domiciled in Virginia, US, 
and licensed in all other US states. 
 
   Other Group Items 
 
   Other Group items financial review 
 
 
 
 
GBPm                                      2014    2015    2016 
UK Commercial Vehicle operating profit      2.2     1.5     2.0 
Other interest and investment income        3.7     6.5    13.4 
Share scheme charges                     (21.2)  (27.2)  (31.9) 
Business development costs                (0.7)   (1.9)   (5.8) 
Other central overheads                   (3.9)   (5.6)   (4.1) 
Finance charges                           (4.6)  (11.1)  (11.4) 
 
   The Group operates a UK Commercial Vehicle insurance broker (Gladiator) 
offering van insurance and associated products, typically to small 
businesses, via telephone and the internet, including price comparison 
websites. Gladiator has increased customer numbers from 146,600 to 
170,800 at the end of 2016 and operating profit increased to GBP2.0 
million (2015: GBP1.5 million). 
 
   Other interest and investment income includes GBP4.9 million (2015: 
GBPnil) of unrealised gains on forward foreign exchange contracts which 
have been impacted during 2016 by downward movements in the value of 
sterling. These gains have the potential to reverse over time if the 
sterling rate recovers before the contracts expire. 
 
   Share scheme charges relate to the Group's two employee share schemes 
(refer to note 8 to the financial statements). The increase in the 
charge is due to an increase in the number of awards reflecting the 
increasing Group headcount. 
 
   Business development costs include costs associated with potential new 
ventures, including investment in Admiral Loans and Preminen, the 
Group's price comparison incubator. 
 
   Finance charges of GBP11.4 million (2015: GBP11.1 million) mainly 
represents interest on the GBP200 million subordinated notes issued in 
July 2014 (refer to note 6 to the financial statements). 
 
   UK Exit from the European Union ('Brexit') 
 
   On 23 June 2016, the UK voted in a referendum to leave the EU. At the 
date of this report, the timetable for and details of the implementation 
of this decision remain unclear. 
 
   Market volatility, including that which resulted from the Brexit vote 
(notably very significant reductions in risk free interest rates) 
adversely impacted the Group's solvency position reported in the interim 
results in August 2016. This was due to an increased regulatory 
valuation of claims liabilities, in particular in relation to longer 
dated potential PPO claims, and hence reduced capital. Since August 
2016, market volatility has reduced, risk free interest rates have 
increased and the Group has received approval to use a volatility 
adjusted yield curve in discounting claim liabilities. This has led to a 
reduced regulatory valuation of claims liabilities and a stronger 
solvency position. 
 
   As discussed above, the solvency ratio remains very strong at 212% after 
the proposed final dividend is accounted for. The Directors are 
satisfied this represents a very satisfactory level of surplus above 
regulatory requirements and buffers. 
 
   Brexit also brings additional risks including: 
 
 
   -- potential further market volatility, particularly in interest and 
      exchange rates 
 
   -- the potential for the uncertainty or the emerging terms of exit regarding 
      Brexit to trigger or exacerbate less favourable economic conditions in 
      the UK and other countries in which Admiral operates (though it is worth 
      noting that car insurance has tended to be resilient to economic 
      downturns) 
 
   -- potential changes to or withdrawal of the right of UK financial services 
      firms to trade in Europe without the need for locally regulated entities 
      ('passporting') 
 
   -- potential changes to the rules relating to the free movement of people 
      between the UK and EU member states 
 
 
   The Group is making plans to be able to deal with the withdrawal of 
passporting, should this transpire, after the UK's exit from the EU is 
finalised and will continue to closely monitor developments over the 
coming months and years. 
 
   At the current time the Group does not foresee a material adverse impact 
on day to day operations (including customers or staff), whilst 
recognising that other issues may emerge over time. 
 
   Principal Risks and Uncertainties 
 
   The Group's 2016 Annual Report will contain an analysis of the Principal 
Risks and Uncertainties identified by the Group's Enterprise Risk 
Management Framework, along with the impacts of those risks and actions 
taken to mitigate them. 
 
   Disclaimer on forward-looking statements 
 
   Certain statements made in this announcement are forward-looking 
statements. Such statements are based on current expectations and 
assumptions and are subject to a number of known and unknown risks and 
uncertainties that may cause actual events or results to differ 
materially from any expected future events or results expressed or 
implied in these 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. 
 
   Consolidated income statement 
 
   For the year ended 31 December 2016 
 
 
 
 
                                                                         Year ended 
                                                                  31 December  31 December 
                                                                      2016         2015 
                                                            Note      GBPm         GBPm 
Insurance premium revenue                                             1,353.6      1,130.2 
Insurance premium ceded to reinsurers                                 (804.8)      (663.2) 
Net insurance premium revenue                                  5        548.8        467.0 
Other revenue                                                  7        360.6        319.8 
Profit commission                                              5         54.3         85.4 
Investment and interest income                                 6         53.1         32.6 
Net revenue                                                           1,016.8        904.8 
Insurance claims and claims handling expenses                       (1,103.8)      (769.1) 
Insurance claims and claims handling expenses recoverable 

 from reinsurers                                                        709.2        542.6 
Net insurance claims                                                  (394.6)      (226.5) 
Operating expenses and share scheme charges                    8      (648.8)      (548.0) 
Operating expenses and share scheme charges recoverable 
 from co- and reinsurers                                       8        316.4        249.5 
Net operating expenses and share scheme charges                       (332.4)      (298.5) 
 
Total expenses                                                        (727.0)      (525.0) 
Operating profit                                                        289.8        379.8 
Finance costs                                                  6       (11.4)       (11.1) 
Profit before tax                                                       278.4        368.7 
Taxation expense                                               9       (64.3)       (76.9) 
Profit after tax                                                        214.1        291.8 
Profit after tax attributable to: 
Equity holders of the parent                                            222.2        300.0 
Non-controlling interests (NCI)                                         (8.1)        (8.2) 
                                                                        214.1        291.8 
Earnings per share 
Basic                                                         11        78.7p       107.3p 
Diluted                                                       11        78.5p       107.1p 
 
Dividends declared and paid (total)                           11        349.8        274.6 
Dividends declared and paid (per share)                       11       126.3p       100.0p 
 
   Consolidated statement of comprehensive income 
 
   For the year ended 31 December 2016 
 
 
 
 
                                                                Year ended 
                                                         31 December   31 December 
                                                             2016          2015 
                                                             GBPm          GBPm 
Profit for the period                                          214.1         291.8 
Other comprehensive income 
Items that are or may be reclassified to profit or 
 loss 
Movements in fair value reserve                                 30.3        (12.6) 
Deferred tax charge in relation to movement in fair 
 value reserve                                                 (0.5)             - 
Exchange differences on translation of foreign 
 operations                                                     21.2           2.6 
Other comprehensive income for the period, net of 
 income tax                                                     51.0        (10.0) 
Total comprehensive income for the period                      265.1         281.8 
Total comprehensive income for the period attributable 
 to: 
Equity holders of the parent                                   271.3         289.5 
Non-controlling interests                                      (6.2)         (7.7) 
                                                               265.1         281.8 
 
   Consolidated statement of financial position 
 
   As at 31 December 2016 
 
 
 
 
                                                                     As at 
                                                            31 December  31 December 
                                                                2016         2015 
                                                     Note       GBPm         GBPm 
ASSETS 
Property and equipment                                  10         32.0         34.9 
Intangible assets                                       10        162.3        142.3 
Deferred income tax                                      9          8.4         20.6 
Reinsurance assets                                       5      1,126.4        878.7 
Insurance and other receivables                      6, 10        784.9        537.1 
Financial investments                                    6      2,420.2      2,323.5 
Cash and cash equivalents                                6        326.6        265.3 
Total assets                                                    4,860.8      4,202.4 
EQUITY 
Share capital                                           11          0.3          0.3 
Share premium account                                              13.1         13.1 
Other reserves                                                     51.8          2.7 
Retained earnings                                                 505.7        599.6 
Total equity attributable to equity holders of the 
 parent                                                           570.9        615.7 
Non-controlling interests                                          10.8         17.2 
Total equity                                                      581.7        632.9 
LIABILITIES 
Insurance contracts                                      5      2,749.5      2,295.0 
Subordinated and other financial liabilities             6        224.0        223.9 
Trade and other payables                             6, 10      1,292.2      1,015.0 
Current tax liabilities                                            13.4         35.6 
Total liabilities                                               4,279.1      3,569.5 
Total equity and total liabilities                              4,860.8      4,202.4 
 
 
   The accompanying notes form part of these financial statements. 
 
   These financial statements were approved by the Board of Directors on 7 
March 2017 and were signed on its behalf by: 
 
   Geraint Jones 
 
   Chief Financial Officer 
 
   Admiral Group plc 
 
   Company Number: 03849958 
 
   Consolidated cash flow statement 
 
   For the year ended 31 December 2016 
 
 
 
 
                                                                      Year ended 
                                                                            Restated(*1) 
                                                               31 December   31 December 
                                                                   2016         2015 
                                                         Note      GBPm         GBPm 
Profit after tax                                                     214.1         291.8 
Adjustments for non-cash items: 
- Depreciation                                                        10.5           8.2 
- Amortisation of software                                            12.6           6.1 
- Other gains and losses                                                 -           3.2 
- Share scheme charges                                      8         33.2          29.5 
- Investment and interest income                            6       (53.1)        (32.6) 
- Finance costs                                             6         11.4          11.1 
- Taxation expense                                          9         64.3          76.9 
Change in gross insurance contract liabilities                       454.5         197.6 
Change in reinsurance assets                                       (247.7)        (48.9) 
Change in insurance and other receivables                          (254.6)       (103.5) 
Change in trade and other payables, including tax 
 and social security                                                 279.9          47.8 
Cash flows from operating activities, before movements 
 in investments                                                      525.1         487.2 
Purchases of financial instruments                                 (646.6)     (1,011.7) 
Proceeds on disposal/ maturity of financial instruments              616.9         890.6 
Interest and investment income received                               11.6           8.6 
Cash flows from operating activities, net of movements 
 in investments                                                      507.0         374.7 
Taxation payments                                                   (76.4)        (63.8) 
Taxation receipts                                                      1.8             - 
Net cash flow from operating activities                              432.4         310.9 
 
Cash flows from investing activities: 
Purchases of property, equipment and software                       (31.6)        (47.8) 
Net cash used in investing activities                               (31.6)        (47.8) 
 
Cash flows from financing activities: 
Non-controlling interest capital contribution                        (0.2)          10.7 
Proceeds on issue of financial liabilities                               -          20.0 
Finance costs paid                                                  (11.3)        (11.0) 
Repayment of finance lease liabilities                               (3.4)         (1.4) 
Equity dividends paid                                      11      (349.8)       (274.6) 
Net cash used in financing activities                              (364.7)       (256.3) 
 
Net increase in cash and cash equivalents                             36.1           6.8 
Cash and cash equivalents at 1 January                               265.3         255.9 
Effects of changes in foreign exchange rates                          25.2           2.6 
Cash and cash equivalents at end of period                  6        326.6         265.3 
 
 
   [*1] Refer to note 2 for details. 
 
   Consolidated statement of changes in equity 
 
   For the year ended 31 December 2016 
 
 
 
 
                                                                Attributable to the owners of the Company 
                                                                 Share                 Foreign   Retained                Non- 
                                                       Share     premium  Fair value   exchange    profit             controlling   Total 
                                                       capital   account    reserve    reserve    and loss   Total     interests    equity 

                                                        GBPm      GBPm       GBPm        GBPm       GBPm      GBPm       GBPm        GBPm 
At 1 January 2015                                          0.3      13.1        10.9        2.3      540.6    567.2          13.7    580.9 
Profit/(loss) for the period                                 -         -           -          -      300.0    300.0         (8.2)    291.8 
Other comprehensive income 
Movements in fair value reserve                              -         -      (12.6)          -          -   (12.6)             -   (12.6) 
Currency translation differences                             -         -           -        2.1          -      2.1           0.5      2.6 
Total comprehensive income for the period                    -         -      (12.6)        2.1      300.0    289.5         (7.7)    281.8 
Transactions with equity holders 
Dividends                                                    -         -           -          -    (274.6)  (274.6)             -  (274.6) 
Share scheme credit                                          -         -           -          -       29.5     29.5             -     29.5 
Deferred tax credit on share scheme credit                   -         -           -          -        4.7      4.7             -      4.7 
Contributions by NCIs                                        -         -           -          -      (0.1)    (0.1)          10.7     10.6 
Changes in ownership interests without a change in 
 control                                                     -         -           -          -      (0.5)    (0.5)           0.5        - 
Total transactions with equity holders                       -         -           -          -    (241.0)  (241.0)          11.2  (229.8) 
As at 31 December 2015                                     0.3      13.1       (1.7)        4.4      599.6    615.7          17.2    632.9 
At 1 January 2016                                          0.3      13.1       (1.7)        4.4      599.6    615.7          17.2    632.9 
Profit/(loss) for the period                                 -         -           -          -      222.2    222.2         (8.1)    214.1 
Other comprehensive income 
Movements in fair value reserve                              -         -        30.3          -          -     30.3             -     30.3 
Deferred tax charge in relation to movement in fair 
 value reserve                                               -         -       (0.5)          -          -    (0.5)             -    (0.5) 
Currency translation differences                             -         -           -       19.3          -     19.3           1.9     21.2 
Total comprehensive income for the period                    -         -        29.8       19.3      222.2    271.3         (6.2)    265.1 
Transactions with equity holders 
Dividends                                                    -         -           -          -    (349.8)  (349.8)             -  (349.8) 
Share scheme credit                                          -         -           -          -       33.2     33.2             -     33.2 
Deferred tax credit on share scheme credit                   -         -           -          -        0.5      0.5             -      0.5 
Contributions by NCIs                                        -         -           -          -          -        -         (0.2)    (0.2) 
Changes in ownership interests without a change in 
 control                                                     -         -           -          -          -        -             -        - 
Total transactions with equity holders                       -         -           -          -    (316.1)  (316.1)         (0.2)  (316.3) 
As at 31 December 2016                                     0.3      13.1        28.1       23.7      505.7    570.9          10.8    581.7 
 
 
   Notes to the financial statements 
 
   For the year ended 31 December 2016 
 
   1. General information 
 
   Admiral Group plc is a company incorporated in England and Wales. Its 
registered office is at Ty Admiral, David Street, Cardiff, CF10 2EH and 
its shares are listed on the London Stock Exchange. 
 
   The consolidated financial statements have been prepared and approved by 
the Directors in accordance with International Financial Reporting 
Standards (IFRS) as adopted by the European Union (EU). The Company has 
elected to prepare its Parent Company financial statements in accordance 
with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 
101). 
 
   Adoption of new and revised standards 
 
   The Group has adopted the following IFRS and interpretations during the 
year, which have been issued and endorsed by the EU: 
 
 
   -- Amendments to IFRS 10, IFRS 12 and IAS 28: Investment Entities - Applying 
      the Consolidation Exemption. 
 
 
   The application of these amendments has not had a material impact on the 
Group's results, financial position and cash flows. 
 
   In 2016, the following standards, both with an effective date of 1 
January 2018, were endorsed by the EU: 
 
 
   -- IFRS 9 Financial Instruments; and 
 
   -- IFRS 15 Revenue from Contracts with Customers 
 
 
   IFRS 9 - Financial Instruments 
 
   In 2014, the IASB issued the full, final version of IFRS 9. This version 
supersedes all previous versions. The standard has an effective date of 
1 January 2018 although earlier application is permitted. The standard 
includes requirements relating to the recognition, measurement, 
impairment, de-recognition of assets along with general hedge 
accounting. 
 
   In late 2016, the IASB confirmed that the effective date for IFRS 17 
'Insurance Contracts' will be 1 January 2021, with the full standard 
expected to be issued during the first half of 2017. The 2021 effective 
date means that the timescale is in line with that specified in an 
amendment to IFRS 4, the existing Insurance Contracts standard, which 
permits the deferral of the adoption of IFRS 9 for up to three years 
from the 1 January 2018 effective date. The Group expects to take 
advantage of this deferral approach and delay its adoption of IFRS 9 
until 1 January 2021 to align with the effective date of IFRS 17. 
 
   Following the issuance of the full and final version of IFRS 17, the 
Group plans to perform a detailed impact assessment of the 
implementation of IFRS 17 and IFRS 9 on its results, financial position 
and cash-flows during 2017. 
 
   IFRS 15 - Revenue from Contracts with Customers 
 
   IFRS 15 was issued during 2014 and applies to annual reporting periods 
beginning on or after 1 January 2018. The standard introduces a simple, 
five step principles-based model to be applied to the accounting of all 
contracts with customers. 
 
   Revenue from insurance contracts and financial instruments is outside 
the scope of the IFRS 15. The Group's detailed assessment of the impact 
of the standard on its results, financial position and cash-flows is 
currently in progress. The primary focus of this work is the other 
revenue generated by a portfolio of products that supplement the core 
car and household insurance policies and revenue generated by the 
Group's price comparison businesses. Management's preliminary assessment 
of the impact of this standard is that it is not expected to have a 
material impact on the Group's financial statements. 
 
   Standards yet to be endorsed by the EU 
 
   There are a number of standards, amendments to standards and 
interpretations that were issued by 31 December 2016 but have either yet 
to be endorsed by the EU, or were endorsed shortly after the year end. 
The following IFRSs have been issued but have not been applied by the 
Group in these financial statements: 
 
 
   -- IFRS 16 Leases; 
 
   -- IFRS 14 Regulatory Deferral Accounts; 
 
   -- Amendments to IFRS 2, 4, 10 and 12 and IAS 7, 12, and 40; 
 
   -- Annual improvements to IFRS standard 2014-2016 cycle; 
 
   -- IFRIC interpretation 22. 
 
 
   IFRS 16 - Leases 
 
   IFRS 16 Leases was issued in early 2016. The standard specifies how 
firms will recognise, measure, present and disclose leases. It presents 
a single lessee accounting model and requires that assets and 
liabilities relating to leases of greater than 12 months are recognised 
in the Consolidated Statement of Financial Position. The standard will 
apply to reporting periods beginning on or after 1 January 2019. 
 
   The Group is currently assessing the impact of IFRS 16 on its results, 
financial position and cash flows, along with any impacts of the other 
standards and amendments which have yet to be endorsed. 
 
   2. Basis of preparation 
 
   The accounts have been prepared on a going concern basis. In considering 
this requirement, the Directors have taken into account the following: 
 
 
   -- The Group's projections for the next 12 months and beyond, in particular 
      the profit forecasts, regulatory capital surpluses and levels and sources 
      of liquidity. 
 
   -- The risks included on the Group's risk register that could impact on the 
      Group's financial performance, levels of liquidity and solvency over the 
      next 12 months. 
 
   -- The risks on the Group's risk register that could be a threat to the 
      Group's business model and capital adequacy. 
 
 
   The Group's business activities, together with the factors likely to 
affect its future development, performance and position are set out in 
the Strategic Report. The Strategic Report also includes the Group's 
principal risks and uncertainties. In addition, the Governance report 
includes the Directors' statement on the viability of the Group over a 
three year period. 
 
   Following consideration of the above, the Directors have reasonable 
expectation that the Group has adequate resources to continue in 
operation for the foreseeable future, a period 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 financial statements. 
 
   Further information regarding the Company's business activities, 

together with the factors likely to affect its future development, 
performance and position, is set out earlier in this announcement. 
Further information regarding the financial position of the Company, its 
cash flows, liquidity position and borrowing facilities are also 
described earlier in this announcement. In addition, notes 6 and 11 to 
the financial statements include the Company's objectives, policies and 
processes for managing its capital; its financial risk management 
objectives; details of its financial instruments; and its exposures to 
credit risk and liquidity risk. 
 
   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 available for sale. The Group and Company 
financial statements are presented in pounds sterling, rounded to the 
nearest GBP0.1 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. 
 
   The preparation of financial statements in conformity with adopted IFRS 
requires management to make judgements, estimates and assumptions that 
affect the application of policies and reported amounts of assets and 
liabilities, income and expenses. The estimates and associated 
assumptions are based on historical experience and various other factors 
that are believed to be reasonable under the circumstances, the results 
of which form the basis of making the judgements about carrying values 
of assets and liabilities that are not readily apparent from other 
sources. 
 
   The estimates and underlying assumptions are reviewed on an ongoing 
basis. Revisions to accounting estimates are recognised in the year in 
which the estimate is reviewed. To the extent that a change in an 
accounting estimate gives rise to changes in assets and liabilities, it 
is recognised by adjusting the carrying amount of the related asset or 
liability in the period of the change. 
 
   Re-presentation of comparative information 
 
   Comparative amounts within the consolidated cash flow statement relating 
to investments have been re-presented. Net cash flows into investments 
have been analysed into purchases of financial instruments and proceeds 
from financial instruments. Additionally, investment return and interest 
income on financial investments are now captured within the adjustments 
to profit after tax for non-cash items. There is no impact on total cash 
and cash equivalents or on net cash flow from operating activities for 
any period. 
 
   3. Critical accounting judgements and estimates 
 
   Judgements 
 
   In applying the Group's accounting policies as described in the notes to 
the financial statements, management has primarily applied judgement in 
the following area: 
 
 
   -- Classification of the Group's contracts with reinsurers as reinsurance 
      contracts: 
 
 
   A contract is required to transfer significant insurance risk in order 
to be classified as such. Management reviews all terms and conditions of 
each such contract, and if necessary obtains the opinion of an 
independent expert at the negotiation stage in order to be able to make 
this judgement. All reinsurance contracts (both excess of loss and quota 
share contracts) held by the Group have been assessed and it has been 
concluded that all contracts transfer significant insurance risk and 
have therefore been classified and accounted for as reinsurance 
contracts within these financial statements. 
 
   In addition there are two further significant accounting estimates 
within the financial statements that also require management to apply 
judgement: 
 
 
   -- Calculation of insurance claims reserves: 
 
 
   The Group's reserving methodology requires management to set insurance 
claims reserves for the purpose of the financial statements, within a 
range of potential outcomes above the projected best estimate outcome, 
to allow for unforeseen adverse claims development. Management applies 
judgement in determining where, within this range of potential outcomes, 
the insurance claims reserves should sit. Refer to the section on 
estimation techniques below for further detail on the calculation of the 
projected best estimate outcome. 
 
 
   -- Recognition of deferred tax assets relating to unused tax losses: 
 
 
   Management applies judgement in determining the probability of future 
taxable profits of an entity against which to utilise accumulated losses 
in determining the recognition of deferred tax assets. In applying this 
judgement, management makes an assessment of the reliability of approved 
business plan projections using both qualitative and quantitative 
factors including the age and status of the business, the Group's 
previous experience in similar markets, historic performance against 
business plans and the application of a number of stress and sensitivity 
tests to the projections. 
 
   Estimation techniques used in calculation of claims provisions and 
profit commission 
 
   Estimation techniques are used in the calculation of the provisions for 
claims outstanding, which represent a projection of the ultimate cost of 
settling claims that have occurred prior to the balance sheet date and 
remain unsettled at the balance sheet date. 
 
   The key area where these techniques are used relates to the ultimate 
cost of reported claims. A secondary area relates to the emergence of 
claims that occurred prior to the balance sheet date, but had not been 
reported at that date. 
 
   The estimates of the ultimate cost of reported claims are based on the 
setting of claim provisions on a case-by-case basis, for all but the 
simplest of claims. 
 
   The sum of these provisions is compared with projected ultimate costs 
using a variety of different projection techniques (including incurred 
and paid chain ladder and an average cost of claim approach) to allow an 
actuarial assessment of their potential outcome. They include allowance 
for unreported claims. 
 
   The most significant sensitivity in the use of the projection techniques 
arises from any future step change in claims costs, which would cause 
future claim cost inflation to deviate from historic trends. This is 
most likely to arise from a change in the regulatory or judicial regime 
that leads to an increase in awards or legal costs for bodily injury 
claims that is significantly above or below the historical trend. 
 
   The Group's independent actuarial advisors project best estimate claims 
reserves using a variety of recognised actuarial techniques. 
 
   As noted above, the Group's reserving policy requires management to 
reserve within a range of potential outcomes above the projected best 
estimate outcome, to allow for unforeseen adverse claims development. 
 
   For further detail on objectives, policies and procedures for managing 
insurance risk, refer to note 5 of the financial statements. 
 
   Future changes in claims reserves also impact profit commission income, 
as the measurement of this income is dependent on the loss ratio booked 
in the financial statements, and cash receivable is dependent on 
actuarial projections of ultimate loss ratios. 
 
   4. Group consolidation and operating segments 
 
   4a. Accounting policies 
 
   (i) Group consolidation 
 
   The consolidated financial statements comprise the results and balances 
of the Company and its subsidiaries (together referred to as the Group) 
for the year ended 31 December 2016 and comparative figures for the year 
ended 31 December 2015. The financial statements of the Company's 
subsidiaries are consolidated in the Group financial statements. The 
Company controls 100% of the voting share capital of all its principal 
subsidiaries, except Admiral Law Limited, BDE Law Limited, Inspop USA 
LLC, the indirect holding in comparenow.com Insurance Agency LLC, 
Rastreator.com Limited, the indirect holding in Comparaseguros 
Correduría de Seguros, S.L., Sociedad Unipersonal, Preminen Price 
Comparison Holdings Limited, the indirect holding in Preminen Dragon 
Price Comparison Limited and the indirect holding in Long Yu Science and 
Technology (Beijing) Co. Limited. 
 
   The Parent Company financial statements present information about the 
Company as a separate entity and not about its Group. In accordance with 
IAS 24, transactions or balances between Group companies that have been 
eliminated on consolidation are not reported as related party 
transactions in the consolidated financial statements. 
 
   (ii) Foreign currency translation 
 
   Items included in the financial statements of each of the Group's 
entities are measured using the currency of the primary economic 
environment in which the entity operates ('the functional currency'). 
The consolidated financial statements are presented in pounds sterling, 
rounded to the nearest GBP0.1 million, which is the Group's presentation 
currency. 
 
   Foreign currency transactions are translated into the functional 
currency using the exchange rates prevailing at the dates of the 
transactions. Foreign exchange gains and losses resulting from the 
settlement of such transactions and from the translation at year end 

exchange rates of monetary assets and liabilities denominated in foreign 
currencies are recognised in the income statement. 
 
   Non-monetary items measured at cost are translated at their historic 
rate and non-monetary items held at fair value are translated using the 
foreign exchange rate on the date that the fair value was established. 
 
   The financial statements of foreign operations whose functional currency 
is not pounds sterling are translated into the Group presentation 
currency (sterling) as follows: 
 
 
   -- Assets and liabilities for each balance sheet presented are translated at 
      the closing rate at the date of that balance sheet. 
 
   -- Income and expenses for each income statement are translated at average 
      exchange rates (unless this average is not a reasonable approximation of 
      the cumulative effect of the rates prevailing on the transaction dates, 
      in which case income and expenses are translated at the date of the 
      transaction). 
 
   -- All resulting exchange differences are recognised in other comprehensive 
      income and in a separate component of equity except to the extent that 
      the translation differences are attributable to non-controlling 
      interests. 
 
 
   On disposal of a foreign operation, the cumulative amount recognised in 
equity relating to that particular operation is recognised in the income 
statement. 
 
   4b. Segment reporting 
 
   The Group has four reportable segments, as described below. These 
segments represent the principal split of business that is regularly 
reported to the Group's Board of Directors, which is considered to be 
the Group's chief operating decision maker in line with IFRS 8 Operating 
Segments. 
 
   UK Insurance 
 
   The segment consists of the underwriting of car insurance, household 
insurance and other products that supplement the car insurance policy 
within the UK. It also includes the generation of revenue from 
additional products and fees from underwriting car insurance in the UK. 
The Directors consider the results of these activities to be reportable 
as one segment as the activities carried out in generating the revenue 
are not independent of each other and are performed as one business. 
This mirrors the approach taken in management reporting. 
 
   International Car Insurance 
 
   The segment consists of the underwriting of car insurance and the 
generation of revenue from additional products and fees from 
underwriting car insurance outside of the UK. It specifically covers the 
Group operations Admiral Seguros in Spain, ConTe in Italy, L'olivier - 
assurance auto in France and Elephant Auto in the US. None of these 
operations are reportable on an individual basis, based on the threshold 
requirements in IFRS 8. 
 
   Price Comparison 
 
   The segment relates to the Group's price comparison businesses: 
Confused.com in the UK, Rastreator in Spain, LeLynx in France and 
compare.com in the US. Each of the price comparison businesses are 
operating in individual geographical segments but are grouped into one 
reporting segment as Rastreator, LeLynx and compare.com do not 
individually meet the threshold requirements in IFRS 8. 
 
   Other 
 
   The 'Other' segment is designed to be comprised of all other operating 
segments that do not meet the threshold requirements for individual 
reporting. It includes the Group's commercial van insurance broker, 
Gladiator, and commercial van insurance. 
 
   Taxes are not allocated across the segments and, as with the corporate 
activities, are included in the reconciliation to the Consolidated 
Income Statement and Consolidated Statement of Financial Position. 
 
   An analysis of the Group's revenue and results for the year ended 31 
December 2016, by reportable segment, is shown below. The accounting 
policies of the reportable segments are consistent with those presented 
in the notes to the financial statements for the Group. 
 
 
 
 
                                          Year ended 31 December 2016 
                      UK       International      Price 
                   Insurance    Car Insurance   Comparison  Other   Eliminations(*2)   Total 
                      GBPm          GBPm           GBPm      GBPm         GBPm          GBPm 
Turnover(*1)          2,063.1           365.9        129.2    17.6            (20.8)  2,555.0 
Net insurance 
 premium 
 revenue                454.4            94.3            -     0.1                 -    548.8 
Other Revenue 
 and profit 
 commission             277.2            12.6        129.2    16.7            (20.8)    414.9 
Investment and 
 interest 
 income                  39.3             0.4            -       -                 -     39.7 
Net revenue             770.9           107.3        129.2    16.8            (20.8)  1,003.4 
Net insurance 
 claims               (317.9)          (76.5)            -   (0.2)                 -  (394.6) 
Expenses              (114.5)          (50.2)      (132.1)  (14.7)              20.8  (290.7) 
Segment 
 profit/(loss) 
 before tax             338.5          (19.4)        (2.9)     1.9                 -    318.1 
Other central revenue and expenses, including share 
 scheme charges                                                                        (41.7) 
Investment and 
 interest 
 income                                                                                  13.4 
Finance costs                                                                          (11.4) 
Consolidated 
 profit before 
 tax                                                                                    278.4 
Taxation expense                                                                       (64.3) 
Consolidated 
 profit after 
 tax                                                                                    214.1 
Other segment 
items: 
- Intangible and 
 tangible asset 
 additions               46.2            28.9          0.4     4.2                 -     79.7 
- Depreciation 
 and 
 amortisation            39.0            22.2          1.3     3.8                 -     66.3 
 
   *1  Turnover is an Alternative Performance Measure and consists of total 
premiums written (including co-insurers' share) and Other Revenue. Refer 
to the glossary and note 12 for further information. 
 
   *2  Eliminations are in respect of the intra-group trading between the 
Group's price comparison and UK and International insurance entities. 
 
   Revenue and results for the corresponding reportable segments for the 
year ended 31 December 2015 are shown below. 
 
 
 
 
                                   Restated(*1) Year ended 31 December 2015 
                      UK       International      Price 
                   Insurance    Car Insurance   Comparison  Other   Eliminations(*3)   Total 
                      GBPm          GBPm           GBPm      GBPm         GBPm          GBPm 
Turnover(*2)          1,760.2           232.4        108.1    18.1            (14.2)  2,104.6 
Net insurance 
 premium 
 revenue                397.4            64.5            -     5.1                 -    467.0 
Other Revenue 
 and profit 
 commission             287.7             7.7        108.1    15.9            (14.2)    405.2 
Investment and 
 interest 
 income                  26.1               -            -       -                 -     26.1 
Net revenue             711.2            72.2        108.1    21.0            (14.2)    898.3 
Net insurance 
 claims               (169.5)          (51.6)            -   (5.4)                 -  (226.5) 
Expenses               (97.5)          (42.8)      (123.6)  (14.1)              14.2  (263.8) 
Segment 
 profit/(loss) 
 before tax             444.2          (22.2)       (15.5)     1.5                 -    408.0 
Other central revenue and expenses, including share 
 scheme charges                                                                        (34.7) 
Investment and 
 interest 
 income                                                                                   6.5 
Finance costs                                                                          (11.1) 
Consolidated 
 profit before 
 tax                                                                                    368.7 
Taxation expense                                                                       (76.9) 
Consolidated 
 profit after 
 tax                                                                                    291.8 
Other segment 
items: 
- Intangible and 
 tangible asset 
 additions               62.3            18.7          1.4     4.1                 -     86.5 
- Depreciation 
 and 
 amortisation            26.9            16.1          1.5     3.8                 -     48.3 
 
   *1  2015 comparatives have been restated to be consistent with the 
segment splits applied in 2016, whereby UK Household Insurance is 
included within the UK Insurance segment. Previously the results of the 
UK Household business were reported within the Other segment as they 
were not considered a material part of the UK result. 
 
   *2  Turnover is an Alternative Performance Measure and consists of total 
premiums written (including co-insurers' share) and Other Revenue. Refer 
to the glossary and note 12 for further information. 
 
   *3  Eliminations are in respect of the intra-group trading between the 
Group's price comparison and UK and International insurance entities. 
 
   Segment revenues 
 
   The UK and International Car Insurance reportable segments derive all 
insurance premium income from external policyholders. Revenue within 
these segments is not derived from an individual policyholder that 
represents 10% or more of the Group's total revenue. 
 
   The total of Price Comparison revenues from transactions with other 
reportable segments is GBP20.8 million (2015: GBP14.2 million) which has 
been eliminated on consolidation. There are no other transactions 
between reportable segments. 
 
   Revenues from external customers for products and services are 

consistent with the split of reportable segment revenues as shown above. 
 
   Information about geographical locations 
 
   All material revenues from external customers, and net assets attributed 
to a foreign country, are shown within the International Car Insurance 
reportable segment shown on the previous pages. The revenue and results 
of the three international Price Comparison businesses, Rastreator, 
LeLynx and compare.com are not yet material enough to be presented as a 
separate segment. 
 
   Segment assets and liabilities 
 
   The identifiable segment assets and liabilities at 31 December 2016 are 
as follows: 
 
 
 
 
                                       As at 31 December 2016 
                           International 
                   UK           Car          Price 
                Insurance    Insurance     Comparison   Other   Eliminations   Total 
                  GBPm          GBPm          GBPm       GBPm       GBPm        GBPm 
Property and 
 equipment           26.8            4.0          1.2        -             -     32.0 
Intangible 
 assets              73.8           23.0          1.8     63.7             -    162.3 
Reinsurance 
 assets             881.4          244.7            -      0.3             -  1,126.4 
Insurance and 
 other 
 receivables        890.3          132.8         14.8  (185.6)        (67.4)    784.9 
Financial 
 investments      2,145.0           45.6         12.2        -             -  2,202.8 
Cash and cash 
 equivalents        178.0          100.6         33.0      8.0             -    319.6 
Reportable 
 segment 
 assets           4,195.3          550.7         63.0  (113.6)        (67.4)  4,628.0 
Insurance 
 contract 
 liabilities      2,359.9          385.4            -      4.2             -  2,749.5 
Trade and 
 other 
 payables         1,147.7          122.1         11.3     11.1             -  1,292.2 
Reportable 
 segment 
 liabilities      3,507.6          507.5         11.3     15.3             -  4,041.7 
Reportable 
 segment net 
 assets             687.7           43.2         51.7  (128.9)        (67.4)    586.3 
Unallocated 
 assets and 
 liabilities                                                                    (4.6) 
Consolidated 
 net assets                                                                     581.7 
 
 
   Unallocated assets and liabilities consist of other central assets and 
liabilities, plus deferred and current corporation tax balances. These 
assets and liabilities are not regularly reviewed by the Board of 
Directors in the reportable segment format. 
 
   There is an asymmetrical allocation of assets and income to the 
reportable segments, in that the interest earned on cash and cash 
equivalent assets deployed in the UK Insurance, Price Comparison and 
International Car Insurance segments is not allocated in arriving at 
segment profits. This is consistent with regular reporting to the Board 
of Directors. 
 
   Eliminations represent inter-segment funding and balances included in 
insurance and other receivables. 
 
   The segment assets and liabilities at 31 December 2015 are as follows: 
 
 
 
 
                                Restated(*1) As at 31 December 2015 
                           International 
                   UK           Car          Price 
                Insurance    Insurance     Comparison  Other   Eliminations   Total 
                  GBPm          GBPm          GBPm      GBPm       GBPm        GBPm 
Property and 
 equipment           30.6            3.0          1.3       -             -     34.9 
Intangible 
 assets              62.1           14.2          2.3    63.7             -    142.3 
Reinsurance 
 assets             719.4          159.0            -     0.3             -    878.7 
Insurance and 
 other 
 receivables        576.6           41.5         19.2  (25.4)        (74.8)    537.1 
Financial 
 investments      2,042.4           43.2            -       -             -  2,085.6 
Cash and cash 
 equivalents         93.8           94.3         59.5    11.8             -    259.4 
Reportable 
 segment 
 assets           3,524.9          355.2         82.3    50.4        (74.8)  3,938.0 
Insurance 
 contract 
 liabilities      2,031.6          257.3            -     6.1             -  2,295.0 
Trade and 
 other 
 payables           939.5           55.5          9.1    10.9             -  1,015.0 
Reportable 
 segment 
 liabilities      2,971.1          312.8          9.1    17.0             -  3,310.0 
Reportable 
 segment net 
 assets             553.8           42.4         73.2    33.4        (74.8)    628.0 
Unallocated 
 assets and 
 liabilities                                                                     4.9 
Consolidated 
 net assets                                                                    632.9 
 
 
   *1  2015 comparatives have been restated to be consistent with the 
segment splits applied in 2016, whereby UK Household Insurance is 
included within the UK Insurance segment. Previously the results of the 
UK Household business were reported within the Other segment as they 
were not considered a material part of the UK result. 
 
   5. Premium, claims and profit commissions 
 
   5a. Accounting policies 
 
   (i) Revenue - premiums 
 
   Premiums relating to insurance contracts are recognised as revenue, net 
of insurance premium tax, proportionally over the period of cover. 
Premiums with an inception date after the end of the period are held in 
the statement of financial position as deferred revenue. Outstanding 
collections from policyholders are recognised within policyholder 
receivables. 
 
   (ii) Revenue - profit commission 
 
   Under some of the co-insurance and reinsurance contracts under which 
motor premiums are shared or ceded, profit commission may be earned on a 
particular year of account, which is usually subject to performance 
criteria such as loss ratios and expense ratios. The commission is 
dependent on the ultimate outcome of any year, with revenue being 
recognised when loss and expense ratios used in the preparation of the 
financial statements move below a contractual threshold. Profit 
commission receivable from reinsurance contracts is accounted for in 
line with IFRS 4, whereas profit commission receivable from co-insurance 
contracts is in line with IAS 18. 
 
   (iii) Insurance contracts and reinsurance assets 
 
   Premiums 
 
   The proportion of premium receivable on in-force policies relating to 
unexpired risks is reported in insurance contract liabilities and 
reinsurance assets as the unearned premium provision - gross and 
reinsurers' share respectively. 
 
   Claims 
 
   Claims and claims handling expenses are charged as incurred, based on 
the estimated direct and indirect costs of settling all liabilities 
arising on events occurring up to the balance sheet date. 
 
   The provision for claims outstanding comprises provisions for the 
estimated cost of settling all claims incurred but unpaid at the balance 
sheet date, whether reported or not. Anticipated reinsurance recoveries 
are disclosed separately as assets. 
 
   Whilst the Directors consider that the gross provisions for claims and 
the related reinsurance recoveries are fairly stated on the basis of the 
information currently available to them, the ultimate liability will 
vary as a result of subsequent information and events and may result in 
significant adjustments to the amounts provided. 
 
   Adjustments to the amounts of claims provisions established in prior 
years are reflected in the income statement for the period in which the 
adjustments are made and disclosed separately if material. The methods 
used, and the estimates made, are reviewed regularly. 
 
   Provision for unexpired risks is made where necessary for the estimated 
amount required over and above unearned premiums (net of deferred 
acquisition costs) to meet future claims and related expenses. 
 
   Co-insurance 
 
   The Group has entered into certain co-insurance contracts under which 
insurance risks are shared on a proportional basis, with the co-insurer 
taking a specific percentage of premium written and being responsible 
for the same proportion of each claim. The co-insurer therefore takes 
direct insurance risk from the policyholder and is subsequently directly 
responsible to the claimant for its proportion of the claim. As the 
contractual liability is several and not joint, neither the premiums nor 
claims relating to the co-insurance are included in the income 
statement. Under the terms of these agreements the co-insurers reimburse 
the Group for the same proportionate share of the costs of acquiring and 
administering the business. 
 
   Reinsurance assets 
 
   Contracts entered into by the Group with reinsurers under which the 
Group is compensated for losses on the insurance contracts issued by the 
Group are classified as reinsurance contracts. A contract is only 
accounted for as a reinsurance contract where there is significant 
insurance risk transfer between the insured and the insurer. 
 
   Reinsurance assets are comprised of balances due from reinsurance 
companies for ceded insurance liabilities. Amounts recoverable from 
reinsurers are estimated in a consistent manner with the outstanding 
claims provisions or settled claims associated with the reinsured 
policies and in accordance with the relevant reinsurance contract. 
 
   The Group assesses its reinsurance assets for impairment on a regular 
basis, and in detail every six months. If there is objective evidence 
that the asset is impaired, then the carrying value will be written down 
to its recoverable amount. 
 
   On the commutation of reinsurance contracts, the reinsurer is discharged 
from all obligations relating to the contract. Reinsurance assets and 
liabilities relating to the commuted contracts are settled in the period 
in which the commutation agreement is signed. 
 
   5b. Net insurance premium revenue 
 
 
 
 
                                                      31 December  31 December 

                                                          2016         2015 
                                                          GBPm         GBPm 
Total motor insurance premiums written before 
 co-insurance                                             2,193.9      1,805.2 
Group gross premiums written after co-insurance           1,482.0      1,199.9 
Outwards reinsurance premiums                             (883.6)      (709.8) 
Net insurance premiums written                              598.4        490.1 
Change in gross unearned premium provision                (128.4)       (69.7) 
Change in reinsurers' share of unearned premium 
 provision                                                   78.8         46.6 
Net insurance premium revenue                               548.8        467.0 
 
 
   The Group's share of its insurance business was underwritten by Admiral 
Insurance (Gibraltar) Limited, Admiral Insurance Company Limited and 
Elephant Insurance Company. All contracts are short term in duration, 
lasting for 10 or 12 months. 
 
   5c. Profit commission 
 
 
 
 
                                        31 December  31 December 
                                            2016         2015 
                                            GBPm         GBPm 
Underwriting year (UK car only) 
2011 and prior                                 16.7         31.4 
2012                                            9.6         36.9 
2013                                           26.4         16.9 
2014                                              -            - 
2015                                              -            - 
2016                                              -            - 
Total UK Car profit commission                 52.7         85.2 
Underwriting year (UK Household only) 
2014 and prior                                    -            - 
2015                                            0.7          0.2 
2016                                            0.9            - 
Total UK Household profit commission            1.6          0.2 
Total profit commission                        54.3         85.4 
 
 
   *1 Profit commission for the UK Car business relates solely to 
co-insurance arrangements and profit commission for the UK Household 
business relates solely to reinsurance arrangements. 
 
   5d. Reinsurance assets and insurance contract liabilities 
 
   (i) Objectives, policies and procedures for the management of insurance 
risk 
 
   The Group's primary business is the issuance of insurance contracts that 
transfer risk from policyholders to the Group and its co-insurance 
partners. 
 
   Insurance risk involves uncertainty over the occurrence, amount or 
timing of claims arising on insurance contracts issued. It is primarily 
comprised of Reserve risk; the risk that the value of insurance 
liabilities established is insufficient to cover the ultimate cost of 
claims incurred at the balance sheet date, and Premium risk; the risk 
that the claims experience on business written but not earned is higher 
than allowed for in the premiums charged to policyholders. 
 
   The Board of Directors is responsible for the management of insurance 
risk, although as mentioned in note 6, it has delegated the detailed 
oversight of risk management to the Group Risk Committee. 
 
   The Group also has a Reserving Committee which comprises senior managers 
within the finance, claims, pricing and actuarial functions. The 
Reserving Committee primarily recommends the approach for UK Car 
Insurance reserving but also reviews the systems and controls in place 
to support accurate reserving and material reserving issues such as 
Periodic Payment Order (PPO) and claims inflation, which represent the 
key uncertainties in the amount or timing of claims settlements. 
 
   The Board implements certain policies in order to mitigate and control 
the level of insurance risk accepted by the Group. These include pricing 
policies and claims management and administration processes, in addition 
to reserving policies and co- and reinsurance arrangements as detailed 
below. 
 
   Reserve Risk 
 
   Reserving risk is mitigated through a series of processes and controls. 
The key processes are as follows: 
 
 
   -- Regular management and internal actuarial review of individual and 
      aggregate case claim reserves, including regular reporting of management 
      information and exception reporting of significant movements; 
 
   -- Regular management and internal actuarial review of large claims, 
      including claims settled or potentially settled by PPOs for which the 
      uncertainty is increased by factors such as the lifetime of the claimant 
      and movements in the indexation for the cost of future care of the 
      claimant; 
 
   -- Bi-annual external actuarial review of best estimate claims reserves 
      using a variety of recognised actuarial techniques; 
 
   -- Internal actuarial analysis of reserve uncertainty through qualitative 
      analysis, scenario testing and a range of stochastic reserving 
      techniques; 
 
   -- Ad hoc external reviews of reserving related processes and assumptions; 
 
   -- Use of a reserving methodology which informs management's reserving 
      decisions for the purposes of the Group's financial statements. As 
      described in note 3, critical accounting judgements and estimates, the 
      methodology determines that reserves should be set within a range above 
      projected best estimate outcomes to allow for unforeseen adverse claims 
      development. 
 
 
   As noted in the Strategic Report, the Group shares a significant amount 
of the motor insurance business generated with external underwriters. In 
2015, 40% of the UK car insurance risk was shared under a co-insurance 
contract, under which the primary risk is borne by the co-insurer. A 
further 35% of the UK risk was ceded under quota share reinsurance 
contracts. Co-insurance and reinsurance contracts are also used in the 
International Car Insurance businesses. Further detail can be found 
earlier in this announcement. 
 
   As well as these proportional arrangements, an excess of loss 
reinsurance programme is also purchased to protect the Group against 
very large individual claims and catastrophe losses. 
 
   Premium Risk 
 
   As noted above, the Group defines Premium risk as the risk that claims 
cost on business written but not yet earned is higher than allowed for 
in the premiums charged to policyholders. This also includes catastrophe 
risk; the risk of incurring significant losses as a result of the 
occurrence of manmade catastrophe or natural weather events. 
 
   Key processes and controls operating to mitigate premium risk are as 
follows: 
 
 
   -- Experienced and focused senior management and teams in relevant business 
      areas including pricing and claims management; 
 
   -- A data-driven and analytical approach to regular monitoring of claims and 
      underwriting performance; 
 
   -- Capability to identify and resolve underperformance promptly through 
      changes to key performance drivers, in particular pricing. 
 
 
   In addition, as mentioned above, an excess of loss reinsurance programme 
is also purchased to protect the Group against very large individual 
claims and catastrophe losses. 
 
   Other elements of insurance risk include reinsurance risk; the risk of 
placement of ineffective reinsurance arrangements, or the economic risk 
of reduced availability of co-insurance and reinsurance arrangements in 
future periods. 
 
   The Group mitigates these risks by ensuring that it has a diverse range 
of financially secure reinsurance partners, including a long-term 
relationship with Munich Re and a number of other high profile 
reinsurers. 
 
   Concentration of insurance risk 
 
   The Directors do not believe there are significant concentrations of 
insurance risk. This is because, although the Group has historically 
written only one significant line of UK insurance business, the risks 
are spread across a large number of people and a wide regional base. The 
introduction of the international car insurance businesses in recent 
years and the launch of UK household business in 2012 will further 
contribute to the diversification of the Group's insurance risk as these 
businesses grow. 
 
   (ii) Event after the reporting period - Ogden discount rate change 
 
   On 27 February 2017, the Lord Chancellor announced a change in the Ogden 
discount rate, which is used in the calculation of personal injury 
claims compensation in the UK. The change reduced the discount rate from 
2.5% to minus 0.75%. This change has been reflected in the gross and 
reinsurers share of insurance liabilities reported in these financial 
statements. Refer to the following section for sensitivities in this key 
assumption. 
 
   (iii) Sensitivity of recognised amounts to changes in assumptions 
 
   Ogden discount rate 
 
   As noted above, the gross and reinsurers share of insurance liabilities 
in these financial statements are prepared on the basis of an Ogden 
discount rate of minus 0.75%. On 27 February 2017, the Lord Chancellor 
also announced a consultation that considers options for reform in the 
setting of this rate, resulting in potential for further changes in the 
rate. 
 
   The sensitivity of a change in this assumption by 75 basis points (both 
an increase and decrease) is shown in the table below. The impact is 
presented is the total impact of the change on the Group's pre-tax 
profit on an ultimate basis. It should be noted that not all of the 
ultimate impact would necessarily be recognised immediately. 
 
 
 
 
 
                                                      2016     2016 
                                                      Gross     Net 
                                                       GBPm     GBPm 
Impact of increase in assumed Ogden discount rate 
 of 75 basis points (to 0%)                            125.7     68.7 
Impact of decrease in assumed Ogden discount rate 

 of 75 basis points (to minus 1.5%)                  (198.1)  (102.1) 
 
 
   The net impacts are stated net of co-insurance reinsurance and include 
the impact on net insurance claims along with the associated profit 
commission movements that result from the change in the Ogden rate. 
 
   Underwriting year loss ratios - UK Car Insurance 
 
   In addition to the sensitivity above, the following table sets out the 
impact on equity and post-tax profit or loss at 31 December 2016 that 
would result from a 1% movement (both increase and decrease) in the UK 
Car insurance loss ratios used for each underwriting year for which 
material amounts remain outstanding. 
 
 
 
 
                                Underwriting year 
                             2013   2014  2015  2016 
Booked loss ratio              70%   84%   87%   88% 
Impact of 1% change (GBPm)    11.4   6.8   3.0   1.8 
 
 
   As above, the impact is stated net of reinsurance and includes the 
change in net insurance claims along with the associated profit 
commission movements that result from changes in loss ratios. The 
figures are stated net of tax at the current rate. 
 
   (iv) Analysis of recognised amounts 
 
 
 
 
                                                   31 December  31 December 
                                                       2016         2015 
                                                       GBPm         GBPm 
Gross 
Claims outstanding(*1)                                 2,030.8      1,725.0 
Unearned premium provision                               718.7        570.0 
Total gross insurance liabilities                      2,749.5      2,295.0 
Recoverable from reinsurers 
Claims outstanding                                       701.6        544.8 
Unearned premium provision                               424.8        333.9 
Total reinsurers' share of insurance liabilities       1,126.4        878.7 
Net 
Claims outstanding                                     1,329.2      1,180.2 
Unearned premium provision                               293.9        236.1 
Total insurance liabilities - net                      1,623.1      1,416.3 
 
 
   *1 Gross claims outstanding at 31 December 2016 is presented before the 
deduction of salvage and subrogation recoveries totalling GBP37.7 
million. 
 
   The maturity profile of gross insurance liabilities at the end of 2016 
is as follows: 
 
 
 
 
                                    < 1 year  1-3 years  > 3 years 
                                      GBPm       GBPm       GBPm 
Claims outstanding                     754.4      700.1      576.3 
Unearned premium provision             718.7          -          - 
Total gross insurance liabilities    1,473.1      700.1      576.3 
 
 
   The maturity profile of gross insurance liabilities at the end of 2015 
was as follows: 
 
 
 
 
                                    < 1 year  1-3 years  > 3 years 
Restated(*1)                          GBPm       GBPm       GBPm 
Claims outstanding                     503.5      492.0      729.5 
Unearned premium provision             570.0          -          - 
Total gross insurance liabilities    1,073.5      492.0      729.5 
 
 
   *1 Maturity profile for 2015 has been restated to recognise the maturity 
of the unearned premium provision within 1 year. The analysis presented 
previously presented the maturity of claims liabilities expected to 
arise from the provision. 
 
   (v) Analysis of claims incurred 
 
   The following tables illustrate the development of gross and net UK 
Insurance and International Insurance claims incurred for the past ten 
financial periods, including the impact of re-estimation of claims 
provisions at the end of each financial year. The first table shows 
actual gross claims incurred and the second shows actual net claims 
incurred. Figures are presented on an underwriting year basis. 
 
 
 
 
                                                   Financial year ended 31 December 
Analysis of 
claims incurred    2007     2008     2009     2010     2011     2012     2013     2014     2015      2016      Total 
(gross amounts)     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm      GBPm      GBPm 
Underwriting 
year (UK 
insurance) 
2007 and prior    (158.5)   (33.2)     32.0      5.0      8.5    (0.5)    (0.6)      0.0    (2.9)      (2.7) 
2008                    -  (146.4)   (94.5)     16.8      4.6    (1.5)    (0.6)      1.2      0.0      (0.5)  (220.9) 
2009                    -        -  (176.8)  (121.7)    (6.0)    (3.6)      6.2      7.3      0.0        3.2  (291.4) 
2010                    -        -        -  (260.4)  (257.2)      9.8     36.7     19.5     13.5        4.1  (434.0) 
2011                    -        -        -        -  (444.3)  (329.7)     43.3     51.4     47.9      (0.9)  (632.3) 
2012                    -        -        -        -        -  (463.7)  (334.7)     49.8     69.2        8.6  (670.8) 
2013                    -        -        -        -        -        -  (431.1)  (325.5)     53.6       44.4  (658.6) 
2014                    -        -        -        -        -        -        -  (438.2)  (347.1)       25.6  (759.7) 
2015                    -        -        -        -        -        -        -        -  (428.4)    (411.2)  (839.6) 
2016                    -        -        -        -        -        -        -        -        -    (529.4)  (529.4) 
UK insurance 
 gross claims 
 incurred         (158.5)  (179.6)  (239.3)  (360.3)  (694.4)  (789.2)  (680.8)  (634.5)  (594.2)    (858.8) 
Underwriting 
year 
(International 
insurance) 
2007 and prior      (7.9)   (12.4)      0.3      0.1    (0.1)    (0.1)    (0.1)      0.0      0.0        0.0 
2008                    -   (11.1)   (12.7)    (0.4)    (0.6)    (0.4)    (0.2)      0.2      0.1        0.1   (25.0) 
2009                    -        -   (10.8)   (13.9)    (3.1)    (3.9)      0.1      1.4      0.2        0.0   (30.0) 
2010                    -        -        -   (17.6)   (26.1)    (7.1)      0.1      3.5      1.0        0.5   (45.7) 
2011                    -        -        -        -   (35.7)   (42.7)      1.2      5.7      1.7        4.0   (65.8) 
2012                    -        -        -        -        -   (58.0)   (53.7)      0.7      4.0        6.0  (101.0) 
2013                    -        -        -        -        -        -   (68.2)   (57.8)      4.2        7.7  (114.1) 
2014                    -        -        -        -        -        -        -   (85.2)   (65.5)        4.4  (146.3) 
2015                    -        -        -        -        -        -        -        -   (92.6)    (101.6)  (194.2) 
2016                    -        -        -        -        -        -        -        -        -    (138.9)  (138.9) 
International 
 insurance gross 
 claims 
 incurred           (7.9)   (23.5)   (23.2)   (31.8)   (65.6)  (112.2)  (120.8)  (131.5)  (146.9)    (217.8) 
Other gross 
 claims 
 incurred             0.0    (2.9)   (10.5)    (7.6)      0.0    (1.7)    (2.2)    (7.1)    (5.4)      (0.1) 
Claims handling 
      costs         (6.2)    (7.8)   (10.1)   (17.0)   (25.9)   (26.0)   (22.9)   (21.4)   (22.6)     (27.1) 
Total gross 
 claims 
 incurred         (172.6)  (213.8)  (283.1)  (416.7)  (785.9)  (929.1)  (826.7)  (794.5)  (769.1)  (1,103.8) 
 
 
 
 
                                                 Financial year ended 31 December 
Analysis of 
claims incurred   2007    2008     2009     2010     2011     2012     2013     2014     2015     2016     Total 
(net amounts)     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
Underwriting 
year (UK 
insurance) 
2007 and prior   (93.5)   (10.9)     22.2      2.9      8.9    (0.5)    (0.6)      0.0    (2.9)    (1.2) 
2008                  -   (89.5)   (57.7)     10.2      4.6    (1.5)    (0.6)      1.2      0.0      1.6  (131.7) 
2009                  -        -   (96.9)   (67.0)    (4.8)    (3.6)      6.2      7.3      0.0      4.8  (154.0) 
2010                  -        -        -  (130.2)  (128.6)      8.4     36.7     19.5     13.5      8.8  (171.9) 
2011                  -        -        -        -  (203.7)  (151.1)     39.7     51.4     47.9      8.4  (207.4) 
2012                  -        -        -        -        -  (196.0)  (139.3)     49.8     69.2     19.4  (196.9) 
2013                  -        -        -        -        -        -  (184.4)  (135.0)     38.4     49.3  (231.5) 
2014                  -        -        -        -        -        -        -  (187.0)  (144.1)   (16.3)  (347.7) 
2015                  -        -        -        -        -        -        -        -  (182.1)  (162.0)  (344.1) 
2016                  -        -        -        -        -        -        -        -        -  (219.4)  (219.4) 
UK insurance 
 net claims 
 incurred        (93.5)  (100.4)  (132.4)  (184.1)  (323.6)  (344.3)  (242.3)  (192.8)  (160.1)  (306.7) 
Underwriting 
year 
(International 
insurance) 
2007 and prior    (2.8)    (4.3)      0.0      0.0    (0.1)      0.0      0.0      0.0      0.0      0.0 
2008                  -    (3.9)    (4.8)    (0.1)    (0.2)    (0.2)    (0.1)      0.1      0.0      0.0    (9.2) 
2009                  -        -    (4.4)    (5.6)    (1.6)    (2.0)      0.0      0.7      0.1      0.0   (12.8) 
2010                  -        -        -    (7.1)   (11.5)    (3.5)      0.0      1.7      0.5      0.2   (19.7) 
2011                  -        -        -        -   (14.9)   (18.7)      0.4      2.9      0.8      2.0   (27.5) 
2012                  -        -        -        -        -   (24.2)   (22.8)    (0.8)      2.0      2.2   (43.6) 
2013                  -        -        -        -        -        -   (26.6)   (23.5)      1.7      4.8   (43.6) 
2014                  -        -        -        -        -        -        -   (31.6)   (23.3)      1.8   (53.1) 
2015                  -        -        -        -        -        -        -        -   (33.4)   (39.6)   (73.0) 

2016                  -        -        -        -        -        -        -        -        -   (47.9)   (47.9) 
International 
 insurance net 
 claims 
 incurred         (2.8)    (8.2)    (9.2)   (12.8)   (28.3)   (48.6)   (49.1)   (50.5)   (51.6)   (76.5) 
Other net 
 claims 
 incurred           0.0    (1.3)    (4.4)    (3.1)      0.0    (0.8)    (2.1)    (6.9)    (5.4)    (0.2) 
Claims handling 
     costs        (3.5)    (4.7)    (5.7)    (8.5)   (11.9)   (10.8)    (9.5)    (8.9)    (9.4)   (11.2) 
Total net 
 claims 
 incurred        (99.8)  (114.6)  (151.7)  (208.5)  (363.8)  (404.5)  (303.0)  (259.1)  (226.5)  (394.6) 
 
 
   The table below shows the development of UK Car Insurance loss ratios 
for the past five financial periods, presented on an underwriting year 
basis. 
 
 
 
 
                                          Financial year ended 31 December 
UK Car Insurance loss ratio 
development                            2012     2013     2014    2015    2016 
Underwriting year (UK car only) 
2012                                      84%      78%     73%     66%     64% 
2013                                        -      85%     82%     76%     70% 
2014                                        -        -     92%     89%     84% 
2015                                        -        -       -     87%     87% 
2016                                        -        -       -       -     88% 
 
 
   (vi) Analysis of claims reserve releases 
 
   The following table analyses the impact of movements in prior year 
claims provisions on a gross and net basis. Figures are presented on an 
underwriting year basis. 
 
 
 
 
                                          Financial year ended 31 December 
                                       2012     2013     2014    2015    2016 
  Gross                                 GBPm     GBPm    GBPm    GBPm    GBPm 
Underwriting year (UK insurance) 
2012 and prior                           36.2    115.8   129.7   128.3    41.7 
2013                                        -        -    18.4    53.4    49.3 
2014                                        -        -       -    16.0    42.8 
2015                                        -        -       -       -     1.9 
Total gross release (UK Insurance)       36.2    115.8   148.1   197.7   135.7 
Total gross release (International 
 Insurance)                                 -        -    12.6    14.0    21.0 
Total gross release                      36.2    115.8   160.7   211.7   156.7 
 
 
 
 
                                          Financial year ended 31 December 
                                       2012     2013    2014    2015    2016 
Net                                     GBPm    GBPm    GBPm    GBPm     GBPm 
Underwriting year (UK Insurance) 
2012 and prior                           17.6    94.2   129.7   128.3     41.7 
2013                                        -       -     7.7    38.4     49.3 
2014                                        -       -       -     6.7   (16.4) 
2015                                        -       -       -       -      0.8 
Total net release (UK Insurance)         17.6    94.2   137.4   173.4     75.4 
Total net release (International 
 Insurance)                                 -       -     6.3     6.5      9.9 
Total net release                        17.6    94.2   143.7   179.9     85.3 
Analysis of net releases on UK 
Insurance: 
- Net releases on Admiral net share      16.3    53.3    66.8    84.6     58.3 
- Releases on commuted quota share 
 reinsurance contracts(*1)                1.3    40.9    70.6    88.8     17.1 
Total net release as above               17.6    94.2   137.4   173.4     75.4 
 
 
   Admiral typically commutes quota share reinsurance contracts in its UK 
Car Insurance business 24 or 36 months following the start of the 
underwriting year. After commutation, any changes in claims costs on the 
commuted proportion of the business are reflected within claims costs 
and are separately analysed here.  Releases on commuted quota share 
contracts are analysed by underwriting year as follows: 
 
 
 
 
                                                      Financial year ended 31 December 
                                                     2012   2013   2014   2015    2016 
                                                      GBPm   GBPm   GBPm   GBPm    GBPm 
Underwriting year 
2012 and prior                                         1.3   40.9   70.6   72.5     22.6 
2013                                                     -      -      -   16.3     28.8 
2014                                                     -      -      -      -   (34.3) 
2015                                                     -      -      -      -        - 
Total releases on commuted quota share reinsurance 
 contracts                                             1.3   40.9   70.6   88.8     17.1 
 
 
   Included within releases on commuted quota share contracts are accruals 
for additional reserves arising from the commutation of 2014 year UK 
motor quota share contracts. Refer to the business review earlier in 
this report for further detail. 
 
   Profit commission is analysed in note 5c. 
 
   (vii) Reconciliation of movement in claims provision 
 
 
 
 
                                                       31 December 2016 
                                                  Gross   Reinsurance    Net 
                                                   GBPm       GBPm       GBPm 
Claims provision at start of period              1,725.0      (544.8)  1,180.2 
Claims incurred (excluding releases)             1,233.4      (764.8)    468.6 
Reserve releases                                 (156.7)         71.4   (85.3) 
Movement in claims provision due to commutation        -        186.2    186.2 
Claims paid and other movements (*1)             (770.9)        350.4  (420.5) 
Claims provision at end of period(*2)            2,030.8      (701.6)  1,329.2 
 
 
 
 
                                                       31 December 2015 
                                                  Gross   Reinsurance    Net 
                                                   GBPm       GBPm       GBPm 
Claims provision at start of period              1,596.0      (538.2)  1,057.8 
Claims incurred (excluding releases)               963.4      (566.3)    397.1 
Reserve releases                                 (211.7)         31.8  (179.9) 
Movement in claims provision due to commutation        -        233.8    233.8 
Claims paid and other movements (*1)             (622.7)        294.1  (328.6) 
Claims provision at end of period(*2)            1,725.0      (544.8)  1,180.2 
 
   *1 Net claims paid in the year to 31 December 2016 includes salvage and 
subrogation recoveries of GBP37.7 million which have been reclassified 
to insurance and other receivables. 
 
   *2  The increase in net claims reserve from GBP1,180.2 million at 31 
December 2015 to GBP1,329.2 million at 31 December 2016 is partly as a 
result of the increase in the size of gross claims reserves but largely 
due to the impact of commutations of reinsurance contracts in the UK Car 
Insurance business. 
 
   (viii) Reconciliation of movement in net unearned premium provision 
 
 
 
 
                                                      31 December 2016 
                                                 Gross    Reinsurance    Net 
                                                  GBPm        GBPm       GBPm 
Unearned premium provision at start of period      570.0      (333.9)    236.1 
Written in the period                            1,482.0      (883.6)    598.4 
Earned in the period                           (1,333.3)        792.7  (540.6) 
Unearned premium provision at end of period        718.7      (424.8)    293.9 
 
 
 
 
                                                      31 December 2015 
                                                 Gross    Reinsurance    Net 
                                                  GBPm        GBPm       GBPm 
Unearned premium provision at start of period      501.4      (291.6)    209.8 
Written in the period                            1,199.9      (709.8)    490.1 
Earned in the period                           (1,131.3)        667.5  (463.8) 
Unearned premium provision at end of period        570.0      (333.9)    236.1 
 
 
   6. Investments 
 
   6a. Accounting policies 
 
   (i) Investment income and finance costs 
 
   Investment income from financial assets comprises distributions as well 
as net realised and unrealised gains on financial assets classified as 
'fair value through profit or loss' (FVTPL), interest income and net 
realised gains from assets classified as 'available for sale' (AFS), and 
interest income on holdings in term deposits and gilts. 
 
   Finance costs from financial liabilities comprise interest expense on 
subordinated notes, calculated on the effective interest rate method. 
The effective interest rate method calculates the amortised cost of a 
financial asset or liability (or group of financial assets or financial 
liabilities) and allocates the interest income or expense over the 
expected life of the asset or liability. 
 
   (ii) Financial assets - investments and receivables 
 
   Initial recognition 
 
   Financial assets within the scope of IAS 39 are classified as financial 
assets at FVTPL, AFS assets, loans and receivables or held to maturity 
investments. 
 
   At initial recognition assets are recognised at fair value and 
classified according to the purpose for which they were acquired. 
 
   The Group's investments in money market liquidity funds are designated 
as FVTPL at inception. 
 
   This designation is permitted under IAS 39, as the investments in money 
market funds are managed as a group of assets and internal performance 
evaluation of this group is conducted on a fair value basis. 
 
   The Group's holdings in Fixed Income and Asset Backed Securities are 
classified as AFS investments, which is consistent with the intention 
for which they were purchased. 
 

   The Group's deposits with credit institutions and gilts are classified 
as held to maturity investments, which is consistent with the intention 
for which they were purchased. 
 
   Transaction costs associated with the purchase of all financial assets 
are expensed within the income statement as incurred. 
 
   Subsequent measurement 
 
   Financial assets at FVTPL are stated at fair value, with any resultant 
realised or unrealised gain or loss recognised through the income 
statement. 
 
   AFS fixed income and asset backed securities are stated at fair value. 
Unrealised changes in the fair value of these assets are recognised in 
Other Comprehensive Income (OCI). Interest income on debt securities is 
recognised within profit or loss using the effective interest rate 
method. 
 
   Deposits and gilts with fixed maturities, classified as held to maturity 
investments, are measured at amortised cost using the effective interest 
method. Movements in the amortised cost are recognised through the 
income statement, as are any impairment losses. 
 
   Loans and receivables are stated at their amortised cost less impairment 
using the effective interest method. Impairment losses are recognised 
through the income statement. 
 
   Impairment of financial assets 
 
   The Group assesses at each balance sheet date whether any financial 
assets or groups of financial assets held at fair value or amortised 
cost are impaired. Financial assets are impaired where there is evidence 
that one or more events occurring after the initial recognition of the 
asset, may lead to a reduction in the estimated future cash flows 
arising from the asset. 
 
   Objective evidence of impairment may include default on cash flows due 
from the asset and reported financial difficulty of the issuer or 
counterparty. 
 
   Identified impairments of financial assets are recognised in the income 
statement, except in the case of assets classified as AFS where 
unrealised gains have been recognised through OCI. In this instance, 
impairments of the asset are first set against the unrealised gain in 
OCI with any excess being recognised in the income statement. 
 
   De-recognition of financial assets 
 
   A financial asset is derecognised when the rights to receive cash flows 
from that asset have expired, or when the Group transfers the asset and 
all the attached substantial risks and rewards relating to the asset to 
a third party. 
 
   Cash and cash equivalents 
 
   Cash and cash equivalents includes cash in hand, deposits held at call 
with banks and other short term deposits with original maturities of 
three months or less. All cash and cash equivalents are measured at 
amortised cost. 
 
   (iii) Financial liabilities 
 
   Initial recognition 
 
   The Group's financial liabilities comprise subordinated notes and other 
financial liabilities initially recognised at fair value received, net 
of transaction costs incurred. 
 
   Subsequent measurement 
 
   Subsequent measurement is at amortised cost using the effective interest 
method. Movements in the amortised cost are recognised through the 
income statement. 
 
   De-recognition of financial liabilities 
 
   A financial liability is derecognised when the obligation under that 
liability is discharged, cancelled or expires. 
 
   (iv) Fair value measurement of assets held at amortised cost 
 
   The fair value of gilts and subordinated notes held at amortised cost is 
calculated with reference to quoted market valuations. See note 6d for a 
comparison of fair value and carrying value at the statement of 
financial position date. 
 
   The Group's deposits are held with well rated institutions; as such the 
fair value approximates to the book value of the investment based on the 
interest rates of the instruments, credit risk movements and durations 
of the assets. The amortised cost carrying amount of receivables is a 
reasonable approximation of fair value. 
 
   6b. Investment and interest income 
 
 
 
 
                                                         31 December  31 December 
                                                             2016         2015 
                                                             GBPm         GBPm 
Investment income 
Investment return on assets classified as FVTPL                  2.9          2.2 
Gains on forward contracts                                       6.5            - 
Interest income on AFS debt securities                          23.4         19.2 
Interest income on term deposits with credit 
 institutions                                                    4.7          4.7 
Interest income on held to maturity gilt assets(*1)              6.2          6.1 
                                                                43.7         32.2 
Unwind of discount on gilts                                    (0.8)        (0.8) 
Release of accrual for reinsurers' share of investment 
 returns                                                         9.2            - 
                                                                52.1         31.4 
Interest receivable on cash and cash equivalents(*1)             1.0          1.2 
Total investment and interest income                            53.1         32.6 
 
 
   *1 Interest received during the year was GBP11.6 million (2015: GBP8.6 
million) 
 
   6c. Finance costs 
 
 
 
 
                       31 December  31 December 
                           2016         2015 
                           GBPm         GBPm 
Interest payable(*1)          11.4         11.1 
Total finance costs           11.4         11.1 
 
 
   *1 Interest paid during the year was GBP11.3 million (2015: GBP11.0 
million) 
 
   Finance costs represent interest payable on the GBP200 million 
subordinated notes and other financial liabilities. 
 
   6d. Financial assets and liabilities 
 
   The Group's financial instruments can be analysed as follows: 
 
 
 
 
                                                      31 December  31 December 
                                                          2016         2015 
                                                          GBPm         GBPm 
Investments held at fair value through profit or 
loss 
Money market funds                                          776.3        627.7 
Derivative financial instruments                              4.7            - 
                                                            781.0        627.7 
Investments classified as available for sale 
Available for sale debt securities                        1,271.8      1,230.0 
                                                          1,271.8      1,230.0 
Investments classified as held to maturity 
Term deposits with credit institutions                      170.0        267.6 
Gilts                                                       197.4        198.2 
                                                            367.4        465.8 
 
Total financial investments                               2,420.2      2,323.5 
 
Insurance and financial assets 
Insurance receivables                                       606.6        437.0 
Trade and other receivables                                 178.3        100.1 
Cash and cash equivalents                                   326.6        265.3 
Total financial assets                                    3,531.7      3,125.9 
 
  Financial liabilities 
Subordinated notes                                          204.0        203.9 
Other borrowings                                             20.0         20.0 
Trade and other payables                                  1,292.2      1,015.0 
Total financial liabilities                               1,516.2      1,238.9 
 
 
   Financial liabilities are inclusive of GBP200 million subordinated notes 
issued on 25 July 2014 at a fixed rate of 5.5% with a redemption date of 
25 July 2024. 
 
   The notes are unsecured subordinated obligations of the Group and rank 
pari passu without any preference among themselves. In the event of a 
winding-up or bankruptcy, they are to be repaid only after the claims of 
all other creditors have been met. 
 
   There have been no defaults on any of the notes during the year. The 
Group has the option to defer interest payments on the notes but to date 
has not exercised this right. The aggregate fair value of subordinated 
dated notes at the balance sheet date is disclosed in the table below. 
 
   The Group holds a revolving credit facility of GBP100 million which 
expires in July 2018. As at 31 December 2016, GBP20 million was drawn 
under this agreement and is included as other borrowings in the table 
above. 
 
   Fair value measurement 
 
   The measurement of investments at the end of the period, for investments 
held at fair value and short term debt securities held at fair value, is 
based on active quoted market values (level one). 
 
   The measurement of AFS debt securities at the end of the period is also 
based on active quoted market values (level one). 
 
   The deposits are held with well rated institutions; as such the 
approximate fair value is the book value of the investment as impairment 
of the capital is not expected. There is no quoted market for these 
holdings and as such a level two valuation is used. The book value of 
term deposits is GBP170.0 million (2015: GBP267.6 million). 
 
   The amortised cost carrying amount of receivables is a reasonable 
approximation of fair value. The fair values of gilts and subordinated 
notes (both level one valuations) together with their carrying values 
shown in the Consolidated Statement of Financial Position are as 
follows: 
 
 
 
 
                         31 December 2016    31 December 2015 
                         Carrying    Fair    Carrying    Fair 
                          amount     value    amount     value 
                           GBPm      GBPm      GBPm      GBPm 
Financial assets 
Gilts                        197.4   225.4       198.2   211.7 
Financial liabilities 
Subordinated notes           204.0   212.9       203.9   202.4 
 
 

   The maturity profile of financial assets and liabilities at 31 December 
2016 is as follows: 
 
 
 
 
                                                        Between 
                                On demand  < 1 year   1 and 2 years  > 2 years 
                                   GBPm      GBPm         GBPm          GBPm 
Financial investments 
Investments held at fair value      776.3       4.7               -          - 
Term deposits with credit 
 institutions                           -      60.0            40.0       70.0 
Available for sale debt 
 securities                           2.5     324.4           224.4      720.5 
Gilts                                   -       0.9               -      196.5 
Total financial investments         778.8     390.0           264.4      987.0 
Insurance receivables                   -     606.6               -          - 
Trade and other receivables             -     178.3               -          - 
Cash and cash equivalents           326.6         -               -          - 
Total financial assets            1,105.4   1,174.9           264.4      987.0 
 
Financial liabilities 
Subordinated notes                      -       4.8               -      199.2 
Other borrowings                        -      20.0               -          - 
Trade and other payables                -   1,292.2               -          - 
Total financial liabilities             -   1,317.0               -      199.2 
 
 
   The maturity profile of financial assets and liabilities at 31 December 
2015 was as follows: 
 
 
 
 
                                                        Between 
                                On demand  < 1 year   1 and 2 years  > 2 years 
                                   GBPm      GBPm         GBPm          GBPm 
Financial investments 
Investments held at fair value      627.7         -               -          - 
Term deposits with credit 
 institutions                       107.6      40.0            50.0       70.0 
Available for sale debt 
 securities                         437.2     117.1           201.1      474.6 
Gilts                                   -       0.8               -      197.4 
Total financial investments       1,172.5     157.9           251.1      742.0 
Insurance receivables                   -     437.0               -          - 
Trade and other receivables             -     100.1               -          - 
Cash and cash equivalents           265.3         -               -          - 
Total financial assets            1,437.8     695.0           251.1      742.0 
 
Financial liabilities 
Subordinated notes                      -       4.7               -      199.2 
Other borrowings                        -      20.0               -          - 
Trade and other payables                -   1,015.0               -          - 
Total financial liabilities             -   1,039.7               -      199.2 
 
 
   Objectives, policies and procedures for managing financial assets and 
liabilities 
 
   The Group's activities expose it primarily to financial risks of credit 
risk, interest rate risk, liquidity risk and foreign exchange risk. The 
Board of Directors has delegated the task of supervising risk management 
and internal control to the Group Risk Committee. There is also an 
Investment Committee that makes recommendations to the Board on the 
Group's investment strategy. 
 
   There are several key elements to the risk management environment 
throughout the Group. These are detailed in full in the Corporate 
Governance Statement. Specific considerations for the risks arising from 
financial assets and liabilities are detailed below. 
 
   Credit risk 
 
   The Group defines credit risk as the risk of loss if another party fails 
to perform its obligations. The key areas of exposure to credit risk for 
the Group result through its reinsurance programme, investments, bank 
deposits and policyholder receivables. 
 
   Economic and financial market conditions have led the Directors to 
consider counterparty exposure more frequently and in significant 
detail. The Directors consider that the policies and procedures in place 
to manage credit exposure continue to be appropriate for the Group's 
risk appetite and, during 2016 and historically, no material credit 
losses have been experienced by the Group. 
 
   There are no specific concentrations of credit risk with respect to 
investment counterparties due to the structure of the liquidity funds 
and the parameters set for managing the Fixed Income Mandates. Both 
forms of investment hold a wide range of very short duration, high 
quality securities. Cash balances and deposits are placed only with 
highly rated credit institutions. The detailed holdings are reviewed 
regularly by the Investment Committee. 
 
   To mitigate the risk arising from exposure to reinsurers (in the form of 
reinsurance recoveries and profit commissions), the Group only conducts 
business with companies of appropriate financial strength ratings. In 
addition, many reinsurance contracts are operated on a funds withheld 
basis, which substantially reduces credit risk, as the Group withholds 
the cash received as collateral. 
 
   The other principal form of credit risk is in respect of amounts due 
from policyholders, largely due to the potential for default by 
instalment payers. The impact of this is mitigated by the large customer 
base and low average level of balance recoverable. There is also 
mitigation by the operation of numerous high- and low-level controls in 
this area, including payment on policy acceptance as opposed to 
inception and automated cancellation procedures for policies in default. 
 
   The Group's maximum exposure to credit risk at 31 December 2016 is 
GBP3,263.0 million (2015: GBP2,913.3 million), being the carrying value 
of financial investments and cash, and the excess of reinsurance assets 
over amounts owed to reinsurers under funds withheld arrangements. The 
Group does not use credit derivatives or similar instruments to mitigate 
exposure. The amount of bad debt expense relating to policyholder debt 
charged to the income statement in 2016 and 2015 is insignificant. 
 
   There were no significant financial assets that were past due at the 
close of either 2016 or 2015. 
 
   The Group's credit risk exposure to assets with external ratings is as 
follows: 
 
 
 
 
                                                      31 December  31 December 
                                                          2016         2015 
                                              Rating      GBPm         GBPm 
Financial institutions - Credit 
 institutions                                    AAA        269.3        247.8 
Financial institutions - Credit 
 institutions                                     AA        733.8        679.4 
Financial institutions - Credit 
 institutions                                      A      1,305.6      1,230.3 
Financial institutions - Credit 
 institutions                          BBB and below        236.0        234.0 
UK Government gilts                               AA        197.4        198.2 
Reinsurers                                        AA        277.1        266.8 
Reinsurers                                         A         29.1          9.2 
 
 
   Interest rate risk 
 
   The Group considers interest rate risk to be the risk that unfavourable 
movements in interest rates could adversely impact on the capital values 
of financial assets and liabilities. 
 
   As noted above, the Group invests the following asset types: 
 
 
   -- Money market liquidity funds and cash plus liquidity funds, which in turn 
      invest in a mixture of short dated fixed and variable rate securities, 
      such as cash deposits, certificates of deposits, floating rate notes and 
      other commercial paper. 
 
   -- Term deposits with well rated institutions are short in duration (one to 
      five years). These are classified as term and valued at amortised cost. 
      Therefore neither the carrying value of the asset, nor the interest 
      return will be impacted by fluctuations in interest rates. 
 
   -- Available for sale debt securities. These securities are held within two 
      segregated mandates. The guidelines of the investments retain a similar 
      credit quality of the money market funds (all holdings are investment 
      grade). The duration of the securities is relatively short and similar to 
      the duration of the on book claims liabilities (the average duration is 
      three years). 
 
   -- UK Government gilts. These are classified as term and valued at amortised 
      cost. Therefore neither the capital value of the gilts, nor the interest 
      return, will be impacted by fluctuations in interest rates. 
 
 
   The Group also holds a financial liability in the form of GBP200 million 
of subordinated notes with a ten year maturity and fixed rate coupon of 
5.5%. This liability is valued at amortised cost and therefore neither 
the carrying value of the deposits, nor the interest payable, will be 
impacted by fluctuations in interest rates. 
 
   No sensitivity analysis to interest rates has been presented on the 
grounds of materiality. 
 
   Liquidity risk 
 
   Liquidity risk is defined as the risk that the Group does not have 
sufficient, available financial resources to enable it to meet its 
obligations as they fall due, or can only secure them at excessive cost. 
 
 
   The Group is strongly cash-generative due to the large proportion of 
revenue arising from non-underwriting activity. Further, as noted above, 
a significant portion of insurance funds are invested in money market 
liquidity funds with same day liquidity, meaning that a large proportion 
of the Group cash and investments is immediately available. 
 
   A breakdown of the Group's other financial liabilities, trade payables 
and other payables is shown in note 10. 
 
   The subordinated notes have a ten year maturity whereas all trade and 
other payables will mature within three to six months of the balance 

sheet date. (Refer to the maturity profile at the start of this note for 
further detail.) 
 
   In practice, the Group's Directors expect actual cash flows to be 
consistent with this maturity profile except for amounts owed to 
co-insurers and reinsurers. Of the total amounts owed to co-insurers and 
reinsurers of GBP938.0 million (2015: GBP764.7 million), GBP610.1 
million (2015: GBP554.3 million) is held under funds withheld 
arrangements and therefore not expected to be settled within 12 months. 
 
   A maturity analysis for insurance contract liabilities is included in 
note 5. The maturity profile for financial assets is included at the 
start of this note. 
 
   The Group's Directors believe that the cash flows arising from these 
assets will be consistent with this profile. Liquidity risk is not, 
therefore, considered to be significant. 
 
   Foreign exchange risk 
 
   Foreign exchange risk arises from unfavourable movements in foreign 
exchange rates that could adversely impact the valuation of overseas 
assets and liabilities. 
 
   The Group is exposed to foreign exchange risk through its operations 
overseas. Although the relative size of the international operations 
means that the risks are relatively small, increasingly volatile foreign 
exchange rates could result in larger potential gains or losses. Assets 
held to fund insurance liabilities are held in the currency of the 
liabilities; however, surplus assets held as regulatory capital in 
foreign currencies remain exposed. 
 
   The Group's exposure to net assets and profits in currencies other than 
the reporting currency is immaterial other than for US dollars. The 
Group's exposure to net assets held in dollars at the balance sheet date 
was GBP70.5 million (2015: GBP87.3 million). 
 
   The loss before tax derived from business carried out in the US was 
GBP39.1 million (2015: GBP45.9 million). If the Sterling rates with US 
dollars had strengthened/weakened by 10%, the Group's profit before tax 
for the year would increase/decrease by GBP3.6 million (2015: GBP4.2 
million). 
 
   Fair value 
 
   For cash at bank and cash deposits and other receivables, the fair value 
approximates to the book value due to their short maturity. For assets 
held at fair value through profit and loss, their value equates to level 
one (quoted prices in active markets) of the fair value hierarchy. 
 
   For gilts and subordinated notes, the fair value is calculated with 
reference to the quoted market valuation. This is compared to carrying 
value earlier in this note. 
 
   6e. Cash and cash equivalents 
 
 
 
 
                                  31 December  31 December 
                                      2016         2015 
                                      GBPm         GBPm 
Cash at bank and in hand                326.4        265.3 
Short-term deposits                       0.2            - 
Total cash and cash equivalents         326.6        265.3 
 
 
   Cash and cash equivalents includes cash in hand, deposits held at call 
with banks, and other short-term term deposits with original maturities 
of three months or less. 
 
   7. Other Revenue 
 
   7a. Accounting policy 
 
   (i) Contribution from additional products and fees and Other Revenue 
 
   Contribution from additional products and fees and Other Revenue 
includes revenue earned on the sale of products supplementing the core 
motor insurance policy, administration and other charges paid by the 
policyholder, referral fees, revenue from policies paid by instalments 
and vehicle commission charges paid by co- and reinsurers. Revenue is 
credited to the income statement over the period matching the Group's 
obligations to provide services. Where the Group has no remaining 
contractual obligations, the revenue is recognised immediately. An 
allowance is made for expected cancellations where the customer may be 
entitled to a refund of amounts charged. 
 
   Commission from price comparison activities and broking commission 
earned by Gladiator is credited to revenue on the sale of the underlying 
insurance policy. 
 
   7b. Contribution from additional products and fees and Other Revenue 
 
 
 
 
                                                 31 December  31 December 
                                                     2016         2015 
                                                     GBPm         GBPm 
Contribution from additional products and fees         199.0        182.4 
Price comparison revenue(*1)                           108.4         93.9 
Other revenue                                           53.2         43.5 
Total Other Revenue                                    360.6        319.8 
 
 
   *1 Price comparison revenue excludes GBP20.8 million (2015: GBP14.2 
million) of income from other Group companies. 
 
   Refer to the business review earlier in this report for further detail 
on the sources of revenue. 
 
   8. Expenses 
 
   8a. Accounting policies 
 
   (i) Acquisition costs and operating expenses 
 
   Acquisition costs incurred in obtaining new and renewal business are 
charged to the income statement over the period in which those premiums 
are earned. All other operating expenses are charged to the income 
statement in the period that they are incurred. 
 
   (ii) Employee benefits 
 
   Pensions 
 
   The Group contributes to defined contribution personal pension plans for 
its employees. The contributions payable to these schemes are charged in 
the accounting period to which they relate. 
 
   Employee share schemes 
 
   The Group operates a number of equity and cash settled compensation 
schemes for its employees. The fair value of the employee services 
received in exchange for the grant of free shares under the equity 
settled schemes is recognised as an expense, with a corresponding 
increase in equity. For cash settled schemes, the fair value of services 
received are also recognised as an expense, with a corresponding 
increase in liability. 
 
   For equity settled schemes, the total charge expensed over the vesting 
period is determined by reference to the fair value of the free shares 
granted as determined at the grant date (excluding the impact of 
non-market vesting conditions). Non-market conditions such as 
profitability targets as well as staff attrition rates are included in 
assumptions over the number of free shares to vest under the applicable 
scheme. 
 
   For cash settled schemes, the total charge expensed over the vesting 
period is determined by reference to the closing Admiral Group share 
price at the end of the period. Prior to the vesting of each scheme, the 
closing share price at the end of the reporting period is used as an 
approximation for the closing share price at the end of the vesting 
period. As with equity settled schemes, non-market vesting conditions 
also impact on the total charge expensed over the vesting period. 
 
   At each balance sheet date, the Group revises its assumptions on the 
number of shares to be granted with the impact of any change in the 
assumptions recognised through income. 
 
   Refer to note 8f for further details on share schemes. 
 
   (iii) Leases 
 
   Operating leases 
 
   Leases which do not transfer to the Group substantially all the risks 
and benefits incidental to ownership of the leased items are classified 
as operating leases. The Group has entered into a number of 
non-cancellable operating lease arrangements for properties and other 
assets. The leases have varying terms, escalation values and renewal 
rights. 
 
   Operating lease payments, including the effects of any lease incentives, 
are recognised as an expense in the income statement on a straight-line 
basis over the lease term. Contingent rentals are recognised as an 
expense in the period in which they are incurred. 
 
   8b. Operating expenses and share scheme charges 
 
 
 
 
                                                           31 December 2016 
                                                              Recoverable 
                                                              from co- and 
                                                      Gross    reinsurers    Net 
                                                       GBPm       GBPm       GBPm 
Acquisition of insurance contracts(*1)                 98.0         (75.4)   22.6 
Administration and other marketing costs (insurance 
 contracts)                                           293.9        (222.6)   71.3 
Insurance contract expenses                           391.9        (298.0)   93.9 
Administration and other marketing costs (other)      206.6              -  206.6 
Share scheme charges                                   50.3         (18.4)   31.9 
Total expenses and share scheme charges               648.8        (316.4)  332.4 
 
 
 
 
                                                           31 December 2015 
                                                              Recoverable 
                                                              from co- and 
                                                      Gross    reinsurers    Net 
                                                       GBPm       GBPm       GBPm 
Acquisition of insurance contracts(*1)                 77.5         (57.8)   19.7 
Administration and other marketing costs (insurance 
 contracts)                                           238.5        (175.1)   63.4 
Insurance contract expenses                           316.0        (232.9)   83.1 
Administration and other marketing costs (other)      188.2              -  188.2 
Share scheme charges                                   43.8         (16.6)   27.2 
Total expenses and share scheme charges               548.0        (249.5)  298.5 
 
 
   *1 Acquisition of insurance contracts expense excludes GBP20.8 million 
(2015: GBP14.2 million) of aggregator fees from other Group companies. 
 
   The GBP71.3 million (2015: GBP63.4 million) administration and marketing 
costs allocated to insurance contracts is principally made up of salary 
costs. 
 

   Analysis of other administration and other marketing costs: 
 
 
 
 
                                                    31 December  31 December 
                                                        2016         2015 
                                                        GBPm         GBPm 
Expenses relating to additional products and fees          49.9         43.0 
Price comparison operating expenses                       132.1        123.6 
Other expenses                                             24.6         21.6 
Total                                                     206.6        188.2 
 
 
   Refer to note 12 for a reconciliation between insurance contract 
expenses and the reported expense ratio. 
 
   8c. Staff costs and other expenses 
 
 
 
 
                                                             31 December      31 December 
                                                                2016             2015 
                                                           Total    Net     Total    Net 
                                                            GBPm    GBPm     GBPm    GBPm 
Salaries                                                   203.7      79.4  179.6      67.6 
Social security charges                                     18.8       7.6   16.2       6.9 
Pension costs                                                6.8       2.3    5.6       2.0 
Share scheme charges (see note 8f)                          50.3      31.9   43.8      27.2 
Total staff expenses                                       279.6     121.2  245.2     103.7 
Depreciation charge: 
- Owned assets                                               8.6       3.3    7.9       2.1 
- Leased assets                                              1.9       0.5    0.3       0.1 
Amortisation charge: 
- Software                                                  12.6       4.1    6.1       3.1 
- Deferred acquisition costs                                   -      43.2      -      34.0 
Operating lease rentals: 
- Buildings                                                 13.3       4.2   14.0       4.5 
Auditor's remuneration (including VAT): 
- Fees payable for the audit of the Company's annual 
 accounts                                                      -         -      -         - 
- Fees payable for the audit of the Company's subsidiary 
 accounts                                                    0.2       0.2    0.4       0.3 
- Fees payable for audit related assurance services 
 pursuant to legislation or regulation                       0.2       0.1      -         - 
- Fees payable for other services(*1)                          -         -    0.4       0.1 
Analysis of fees paid to the auditor for other services: 
- Tax compliance services                                      -         -    0.1         - 
- Tax advisory services                                        -         -    0.1         - 
- Other services                                               -         -    0.2       0.1 
Total as above                                                 -         -    0.4       0.1 
 
 
   *1 Fees payable to the auditor for other services in year ended 31 
December 2015 were paid to the previous auditor, KPMG LLP. 
 
   Total and net expenses are before and after co- and reinsurance 
arrangements respectively. 
 
   Refer to the Corporate Governance Report for details of the Audit 
Committee's policy on fees paid to the Company's auditor for non-audit 
services. The ratio of non-audit fees to audit fees in 2016 was 82% 
(2015: 88%). 
 
   The amortisation of software and deferred acquisition cost assets is 
charged to expenses in the income statement. 
 
   8d. Staff numbers (including Directors) 
 
 
 
 
                                 Average for the year 
                                   2016        2015 
                                  Number      Number 
Direct customer contact staff        5,993       5,868 
Support staff                        2,605       1,989 
Total                                8,598       7,857 
 
   8e. Directors' remuneration 
 
   (i) Directors' remuneration 
 
 
 
 
                                                      31 December  31 December 
                                                          2016         2015 
                                                          GBPm         GBPm 
Directors' emoluments                                         1.6          1.7 
Amounts receivable under SIP and DFSS share schemes           0.4          0.3 
Company contributions to money purchase pension 
plans                                                           -            - 
Total                                                         2.0          2.0 
 
 
   (ii) Number of Directors 
 
 
 
 
                                                     2016     2015 
                                                     Number   Number 
Retirement benefits are accruing to the following 
 number of Directors under: 
- Money purchase schemes                                  2        2 
- Defined benefit schemes                                 -        - 
 
   8f. Staff share schemes 
 
   Analysis of share scheme costs (per the Consolidated Income Statement): 
 
 
 
 
                             31 December  31 December 
                                 2016         2015 
                                 GBPm         GBPm 
SIP charge (i)                       9.9          8.7 
DFSS charge (ii)                    22.0         18.5 
Total share scheme charges          31.9         27.2 
 
 
   The share scheme charges reported above are net of the co- and 
reinsurers' share of the cost and therefore differ from the gross charge 
reported in note 8c (2016: GBP50.3 million; 2015: GBP43.8 million) and 
the gross credit to reserves reported in the Consolidated Statement of 
Changes in Equity (2016: GBP33.2 million; 2015: GBP29.5 million). 
 
   The Consolidated Cash Flow Statement also shows the gross charge in the 
reconciliation between 'profit after tax' and 'cash flows from operating 
activities'. The co-insurance share of the charge is included in the 
change in trade and other payables line. 
 
   (i) The Approved Share Incentive Plan (the SIP) 
 
   Eligible employees qualified for awards under the SIP based upon the 
performance of the Group in each half-year period. The maximum award for 
each year is GBP3,600 per employee. The awards are made with reference 
to the Group's performance against prior year profit before tax. 
Employees must remain in employment for the holding period (three years 
from the date of award) otherwise the shares are forfeited. 
 
   The fair value of shares awarded is either the share price at the date 
of award, or is estimated at the latest share price available when 
drawing up the financial statements for awards not yet made (and later 
adjusted to reflect the actual share price on the award date). Awards 
under the SIP are entitled to receive dividends, and, hence, no 
adjustment has been made to this fair value. 
 
   (ii) The Discretionary Free Share Scheme (the DFSS) 
 
   Under the DFSS, details of which are contained in the remuneration 
policy section of the Directors' Remuneration Report, individuals 
receive an award of free shares at no charge. Staff must remain in 
employment until the vesting date in order to receive shares. The 
maximum number of shares that can vest relating to the 2016 scheme is 
3,247,136 (2015 scheme: 3,019,188). 
 
   The amount of 2016 award that actually vests is based on the growth in 
the Company's earnings per share (EPS) relative to a risk free return 
(RFR), for which LIBOR has been selected as a benchmark. This 
performance is measured over the three year period the award applies to. 
For the 2016 scheme, 50% of the shares awarded at the start of the three 
year vesting period are subject to these performance conditions. 
 
   The range of awards is as follows: 
 
 
   -- If the growth in EPS is less than the RFR, no awards vest. 
 
   -- EPS growth is equal to RFR - 10% of maximum award vests. 
 
   -- To achieve the maximum award, EPS growth has to be 36 points higher than 
      RFR over the three year period. 
 
 
   Between 10% and 100% of the maximum awards, a linear relationship 
exists. 
 
   For awards in 2015 and onwards there are now three performance 
conditions which the 50% not guaranteed to vest are subject to. These 
are three-year EPS growth vs. LIBOR, TSR vs. FTSE 350 (excluding 
investment companies), and ROE, weighted equally. 
 
 
 
 
Performance measure                         Performance range 
                                   Threshold                  Maximum 
                                                       Growth of 10% p.a. in 
EPS growth vs. LIBOR       Growth in line with LIBOR      excess of LIBOR 
TSR vs. FTSE 350 
(excluding investment 
companies)                          Median                 Upper Quartile 
ROE                                              25%                       55% 
 
 
   Awards under the DFSS are not eligible for dividends (although a 
discretionary bonus is currently paid equivalent to the dividend that 
would have been paid on the respective shareholding) and hence the fair 
value of free shares to be awarded under this scheme has been revised 
downwards to take account of these distributions. The unadjusted fair 
value is based on the share price at the date on which awards were made 
(as stated in the Directors' Remuneration Report). 
 
   Number of free share awards committed at 31 December 2016 
 
 
 
 
                                  Awards          Vesting 
                              outstanding(*1)       date 
SIP H213 scheme                  514,500         March 2017 
SIP H114 scheme                  575,016       September 2017 
SIP H214 scheme                  536,613         March 2018 
SIP H115 scheme                  636,612        August 2018 
SIP H215 scheme                  523,877         March 2019 
SIP H116 scheme                  501,785       September 2019 

DFSS 2014 scheme 1st award       203,292         March 2017 
DFSS 2014 scheme 2nd award      2,481,806      September 2017 
DFSS 2015 scheme 1st award       190,275         March 2018 
DFSS 2015 scheme 2nd award      2,828,913      September 2018 
DFSS 2016 scheme 1st award       199,346         March 2019 
DFSS 2016 scheme 2nd award      3,047,790      September 2019 
Total awards committed             12,239,825 
 
 
   *1 Being the maximum number of awards expected to be made before 
accounting for expected staff attrition 
 
   During the year ended 31 December 2016, awards under the SIP H212 and 
H113 schemes and the DFSS 2013 scheme vested. The total number of awards 
vesting for each scheme is as follows. 
 
   Number of free share awards vesting during the year ended 31 December 
2016 
 
 
 
 
                              Original awards  Awards vested 
SIP H212 scheme                       533,792        417,312 
SIP H113 scheme                       603,432        455,648 
DFSS 2013 scheme 1st award            173,348        108,227 
DFSS 2013 scheme 2nd award          2,175,665      1,432,540 
 
 
   The weighted average market share price at the date of exercise for 
shares exercised during the year was GBP20.09 (2015: GBP15.42). 
 
   9. Taxation 
 
   9a. Accounting policy 
 
   Income tax on the profit or loss for the periods presented comprises 
current and deferred tax. 
 
   (i) Current tax 
 
   Current tax is the expected tax payable on the taxable income for the 
period, using tax rates that have been enacted or substantively enacted 
by the balance sheet date, and includes any adjustment to tax payable in 
respect of previous periods. 
 
   Current tax related to items recognised in other comprehensive income is 
also recognised in other comprehensive income and not in the income 
statement. 
 
   (ii) Deferred tax 
 
   Deferred tax is provided in full using the balance sheet liability 
method, providing for temporary differences arising between the carrying 
amount of assets and liabilities for accounting purposes and the amounts 
used for taxation purposes. It is calculated at the tax rates that have 
been enacted or substantially enacted by the balance sheet date and that 
are expected to apply in the period when the liability is settled or the 
asset is realised. 
 
   The principal temporary differences arise from carried forward losses, 
depreciation of property and equipment and share scheme charges. The 
resulting deferred tax is charged or credited in the income statement, 
except in relation to share scheme charges where the amount of tax 
benefit credited to the income statement is limited to an equivalent 
credit calculated on the accounting charge. Any excess is recognised 
directly in equity. 
 
   Deferred tax assets relating to carried forward losses are recognised 
only to the extent that it is probable that future taxable profits will 
be available against which the assets can be utilised. The probability 
of the availability of future taxable profits is determined by a 
combination of the classification of the status of the businesses 
holding cumulative tax losses and the business plan profit projections 
for that business, subject to appropriate stress testing. 
 
   9b. Taxation 
 
 
 
 
                                                     31 December  31 December 
                                                         2016         2015 
                                                         GBPm         GBPm 
Current tax 
Corporation tax on profits for the year                     53.2         70.9 
(Over) provision relating to prior periods                 (1.0)        (1.0) 
Current tax charge                                          52.2         69.9 
Deferred tax 
Current period deferred taxation movement                    7.2          7.5 
Under/(Over) provision relating to prior periods             4.9        (0.5) 
Total tax charge per Consolidated Income Statement          64.3         76.9 
 
 
   Factors affecting the total tax charge are: 
 
 
 
 
                                                      31 December  31 December 
                                                          2016         2015 
                                                          GBPm         GBPm 
Profit before tax                                           278.4        368.7 
Corporation tax thereon at effective UK corporation 
 tax rate of 20.0% (2015: 20.25%)                            55.7         74.7 
Expenses and provisions not deductible for tax 
 purposes                                                     0.8          1.4 
Non-taxable income                                          (7.2)        (4.8) 
Impact of change in UK tax rate on deferred tax 
 balances                                                       -          0.3 
Adjustments relating to prior periods                         3.2        (1.5) 
Impact of different overseas tax rates                      (7.0)       (12.9) 
Unrecognised deferred tax                                    18.9         19.7 
Other differences                                           (0.1)            - 
Total tax charge for the period as above                     64.3         76.9 
 
   9c. Deferred income tax asset 
 
   Analysis of deferred tax asset 
 
 
 
 
                                                       Tax treatment 
                                                          of share      Capital        Carried         Other 
                                                          schemes      allowances   forward losses   differences  Total 
                                                            GBPm          GBPm           GBPm           GBPm       GBPm 
Balance brought forward at 1 January 2015                        4.8          4.6             13.4           0.1   22.9 
Tax treatment of share scheme charges through income 
 or expense                                                    (2.4)            -                -             -  (2.4) 
Tax treatment of share scheme charges through 
 reserves                                                        4.7            -                -             -    4.7 
Capital allowances                                                 -        (1.9)                -             -  (1.9) 
Carried forward losses                                             -            -            (3.5)             -  (3.5) 
Other difference                                                   -            -                -           0.8    0.8 
Balance carried forward at 31 December 2015                      7.1          2.7              9.9           0.9   20.6 
Tax treatment of share scheme charges through income 
 or expense                                                    (1.9)            -                -             -  (1.9) 
Tax treatment of share scheme charges through 
 reserves                                                        0.5            -                -             -    0.5 
Capital allowances                                                 -        (5.1)                -             -  (5.1) 
Carried forward losses                                             -            -            (5.0)             -  (5.0) 
Other difference                                                   -            -                -         (0.7)  (0.7) 
Balance carried forward at 31 December 2016                      5.7        (2.4)              4.9           0.2    8.4 
 
 
   Positive amounts presented above relate to a deferred tax asset 
position. 
 
   The UK corporation tax rate reduced from 21% to 20% on 1 April 2015. The 
average effective rate of tax for 2016 is 20.00% (2015: 20.25%). Further 
reductions to the main rate of corporation tax to 19% (effective from 1 
April 2017) and 17% (effective from 1 April 2020) were enacted on 26 
October 2015 and 15 September 2016 respectively. This will reduce the 
Group's future current tax charge accordingly. 
 
   The deferred tax asset at 31 December 2016 has been calculated based on 
the rate at which each timing difference is most likely to reverse. 
 
   The deferred tax asset relating to carried forward losses of GBP4.9 
million relates to losses incurred in the Group's US price comparison 
business compare.com, and is calculated at the local US rate of tax 
(35%). The recognised asset has been limited to the amount supported by 
forecast cash flows over the next five years. The forecasts and 
underlying assumptions have been reviewed and approved by the Board. In 
addition, the forecasts have been stressed for both revenue and profit 
reductions and the asset remains recoverable under the stressed 
scenarios. 
 
   At 31 December 2016 the Group had unused tax losses amounting to 
GBP142.7 million (2015: GBP89.6 million), relating to the Group's US 
businesses Elephant Auto and compare.com, for which no deferred tax 
asset has been recognised. 
 
   10. Other assets and other liabilities 
 
   10a. Accounting policy 
 
   (i) Property and equipment, and depreciation 
 
   All property and equipment is stated at cost less accumulated 
depreciation. Depreciation is calculated using the straight line method 
to write off the cost less residual values of the assets over their 
useful economic lives. These useful economic lives are as follows: 
 
 
 
 
Improvements to short leasehold buildings  -  four to ten years 
Computer equipment                         -  two to four years 
Office equipment                           -  four years 
Furniture and fittings                     -  four years 
Motor vehicles                             -  four years 
 
 
   (ii) Impairment of property and equipment 
 
   In the case of property and equipment, carrying values are reviewed at 
each balance sheet date to determine whether there are any indications 
of impairment. If any such indications exist, the asset's recoverable 
amount is estimated and compared to the carrying value. The carrying 
value is the higher of the fair value of the asset, less costs to sell 

and the asset's value in use. Impairment losses are recognised through 
the income statement. 
 
   (iii) Leased assets 
 
   The rental costs relating to assets held under operating leases are 
charged to the income statement on a straight line basis over the life 
of the lease. 
 
   Leases under the terms of which the Group assumes substantially all of 
the risks and rewards of ownership are classed as finance leases. Assets 
acquired under finance leases are included in property and equipment at 
fair value on acquisition and are depreciated in the same manner as 
equivalent owned assets. Finance lease and hire purchase obligations are 
included in creditors and the finance costs are spread over the periods 
of the agreements based on the net amount outstanding. 
 
   (iv) Intangible assets 
 
   Goodwill 
 
   All business combinations are accounted for using the acquisition 
method. Goodwill has been recognised in acquisitions of subsidiaries, 
and represents the difference between the cost of the acquisition and 
the fair value of the net identifiable assets acquired. 
 
   The classification and accounting treatment of acquisitions occurring 
before 1 January 2004 have not been reconsidered in preparing the 
Group's opening IFRS balance sheet at 1 January 2004 due to the 
exemption available in IFRS 1 (First time adoption). In respect of 
acquisitions prior to 1 January 2004, goodwill is included at the 
transition date on the basis of its deemed cost, which represents the 
amount recorded under UK GAAP, which was tested for impairment at the 
transition date. On transition, amortisation of goodwill has ceased as 
required by IAS 38. 
 
   Goodwill is stated at cost less any accumulated impairment losses. 
Goodwill is allocated to cash generating units (CGUs) according to 
business segment and is reviewed annually for impairment. 
 
   The goodwill held on the balance sheet at 31 December 2016 is allocated 
solely to the UK Car Insurance segment. 
 
   Impairment of goodwill 
 
   The annual impairment review involves comparing the carrying amount to 
the estimated recoverable amount (by allocating the goodwill to CGUs) 
and recognising an impairment loss if the recoverable amount is lower. 
Impairment losses are recognised through the income statement and are 
not subsequently reversed. 
 
   The recoverable amount is the greater of the fair value of the asset 
less costs to sell and the value in use of the CGU. 
 
   The value in use calculations use cash flow projections based on 
financial budgets approved by management covering a three year period. 
Cash flows beyond this period are considered, but not included in the 
calculation. The discount rate applied to the cash flow projections in 
the value in use calculations is 6.5% (2015: 5.9%), based on the Group's 
weighted average cost of capital, which is in line with the market 
(source: Bloomberg). 
 
   The key assumptions used in the value in use calculations are those 
regarding growth rates and expected changes in pricing and expenses 
incurred during the period. Management estimates growth rates and 
changes in pricing based on past practices and expected future changes 
in the market. 
 
   The headroom above the goodwill carrying value is very significant, and 
there is no foreseeable event that would eliminate this margin. 
 
   Deferred acquisition costs 
 
   Acquisition costs comprise all direct and indirect costs arising from 
the conclusion of insurance contracts. Deferred acquisition costs 
represent the proportion of acquisition costs incurred that correspond 
to the unearned premiums provision at the balance sheet date. This 
balance is held as an intangible asset. It is amortised over the term of 
the contract as premium is earned. 
 
   Software 
 
   Purchased software is recognised as an intangible asset and amortised 
over its expected useful life (generally the licence term). Internally 
generated software is recognised as an intangible asset, with directly 
attributable costs incurred in the development stage capitalised. The 
internally generated software assets are amortised over the expected 
useful life of the systems and amortisation commences when the software 
is available for use. 
 
   The carrying value of software is reviewed every six months for evidence 
of impairment, with the value being written down if any impairment 
exists. Impairment may be reversed if conditions subsequently improve. 
 
   (v) Provisions, contingent liabilities and contingent assets 
 
   Provisions are recognised when a legal or constructive obligation arises 
as a result of an event that occurred before the balance sheet date, 
when a cash-outflow relating to this obligation is probable and when the 
amount can be estimated reliably. 
 
   Where an obligation exists, but the likelihood of a cash out-flow or the 
amount is uncertain, or where there is a possible obligation arising 
from a past event that is contingent on a future event, a contingent 
liability is disclosed. 
 
   Contingent assets are possible assets that arise from past events, whose 
existence will be confirmed only by the occurrence or non-occurrence of 
future events. Where it is probable that a cash-inflow will arise from a 
contingent asset, this is disclosed. 
 
   10b. Property and equipment 
 
 
 
 
                    Improvements 
                      to short 
                      leasehold    Computer     Office      Furniture 
                      buildings    equipment   equipment   and fittings  Total 
                        GBPm         GBPm        GBPm          GBPm       GBPm 
Cost 
At 1 January 2015           24.9        39.5        14.0            7.8   86.2 
Additions                    0.8         8.8         1.2            0.4   11.2 
Disposals                      -       (0.5)           -              -  (0.5) 
At 31 December 
 2015                       25.7        47.8        15.2            8.2   96.9 
Depreciation 
At 1 January 2015            7.6        29.7        11.6            5.0   53.9 
Charge for the 
 year                        2.4         3.8         1.0            1.0    8.2 
Disposals                      -       (0.1)           -              -  (0.1) 
At 31 December 
 2015                       10.0        33.4        12.6            6.0   62.0 
Net book amount 
At 1 January 2015           17.3         9.8         2.4            2.8   32.3 
Net book amount 
At 31 December 
 2015                       15.7        14.4         2.6            2.2   34.9 
Cost 
At 1 January 2016           25.7        47.8        15.2            8.2   96.9 
Additions                    1.3         3.4         1.1            0.8    6.6 
Disposals                      -           -       (0.2)              -  (0.2) 
Foreign exchange 
 movement                    0.6         0.9         0.9            0.4    2.8 
At 31 December 
 2016                       27.6        52.1        17.0            9.4  106.1 
Depreciation 
At 1 January 2016           10.0        33.4        12.6            6.0   62.0 
Charge for the 
 year                        2.0         6.5         1.0            1.0   10.5 
Disposals                      -           -       (0.1)              -  (0.1) 
Foreign exchange 
 movement                    0.4         0.6         0.6            0.1    1.7 
At 31 December 
 2016                       12.4        40.5        14.1            7.1   74.1 
Net book amount 
At 31 December 
 2016                       15.2        11.6         2.9            2.3   32.0 
 
 
   The net book value of assets held under finance leases is as follows: 
 
 
 
 
                     31 December  31 December 
                         2016         2015 
                         GBPm         GBPm 
Computer equipment           4.4          5.7 
 
 
   10c. Intangible assets 
 
 
 
 
                                        Deferred 
                                       acquisition 
                            Goodwill    costs(*1)   Software(*2)  Total 
                              GBPm        GBPm          GBPm       GBPm 
At 1 January 2015               62.3          14.8          30.1   107.2 
Additions                          -          35.8          39.5    75.3 
Amortisation charge                -        (34.0)         (6.1)  (40.1) 
Disposals                          -             -         (0.1)   (0.1) 
At 31 December 2015             62.3          16.6          63.4   142.3 
Additions                          -          48.5          24.6    73.1 
Amortisation charge                -        (43.2)        (12.6)  (55.8) 
Disposals                          -             -         (0.3)   (0.3) 
Foreign exchange movement          -           1.5           1.5     3.0 
At 31 December 2016             62.3          23.4          76.6   162.3 
 
   *1 Deferred acquisition costs additions and amortisation charges from 
prior periods have been re-presented to reflect appropriate net of 
reinsurance movements in each period. There are no changes to the 
carried forward or brought forward deferred acquisition costs balance 
for any period. 
 
   *2 Software additions include GBP21.1 million relating to internal 
development (2015: GBP31.3 million) 
 
   Goodwill relates to the acquisition of Group subsidiary EUI Limited 
(formerly Admiral Insurance Services Limited) in November 1999. It is 
allocated solely to the UK Insurance segment. As described in the 
accounting policies, the amortisation of this asset ceased on transition 
to IFRS on 1 January 2004. All annual impairment reviews since the 
transition date have indicated that the estimated recoverable value of 
the asset is greater than the carrying amount and therefore no 
impairment losses have been recognised. Refer to the accounting policy 
for goodwill for further information. 
 
   10d. Insurance and other receivables 
 
 
 
 
                                        31 December  31 December 
                                            2016         2015 
                                            GBPm         GBPm 
Insurance receivables(*1)                     606.6        437.0 

Trade receivables                             172.4         92.1 
Prepayments and accrued income                  5.9          8.0 
Total insurance and other receivables         784.9        537.1 
 
 
   *1 Insurance receivables at 31 December 2016 includes GBP37.7 million in 
respect of salvage and subrogation recoveries. 
 
   10e. Trade and other payables 
 
 
 
 
                                                 31 December  31 December 
                                                     2016         2015 
                                                     GBPm         GBPm 
Trade payables                                          35.6         35.1 
Amounts owed to co-insurers                            247.5        186.9 
Amounts owed to reinsurers                             690.5        577.8 
Finance leases due within 12 months                      0.1          2.8 
Other taxation and social security liabilities          40.1         28.3 
Other payables                                         112.4         88.5 
Accruals and deferred income (see below)               166.0         95.6 
Total trade and other payables                       1,292.2      1,015.0 
 
 
   Of amounts owed to reinsurers, GBP610.1 million (2015: GBP554.3 million) 
is held under funds withheld arrangements. 
 
   Analysis of accruals and deferred income: 
 
 
 
 
                                                    31 December  31 December 
                                                        2016         2015 
                                                        GBPm         GBPm 
Premium receivable in advance of policy inception          92.4         53.1 
Accrued expenses                                           53.1         24.4 
Deferred income                                            20.5         18.1 
Total accruals and deferred income as above               166.0         95.6 
 
   10f. Obligations under finance leases 
 
   Analysis of finance lease liabilities: 
 
 
 
 
                   At 31 December 2016             At 31 December 2015 
               Minimum                         Minimum 
                lease                           lease 
               payments  Interest  Principal   payments  Interest  Principal 
                 GBPm      GBPm       GBPm       GBPm      GBPm       GBPm 
Less than 
 one year           0.1         -        0.1        2.8         -        2.8 
Between one 
and five 
years                 -         -          -          -         -          - 
More than 
five years            -         -          -          -         -          - 
                    0.1         -        0.1        2.8         -        2.8 
 
 
   The fair value of the Group's lease obligations approximates to their 
carrying amount. 
 
   10g. Financial commitments 
 
   The Group was committed to total minimum obligations under operating 
leases on land and buildings as follows: 
 
 
 
 
                                           31 December  31 December 
                                               2016         2015 
                                               GBPm         GBPm 
Minimum payments due on operating leases 
Within one year                                   12.0         10.4 
Within two to five years                          42.1         37.0 
Over five years                                  119.3        125.1 
Total commitments                                173.4        172.5 
 
 
   Operating lease payments represent rentals payable by the Group for its 
office properties. 
 
   11. Share capital 
 
   11a. Accounting policies 
 
   (i) Share capital 
 
   Shares are classified as equity when there is no obligation to transfer 
cash or other assets. 
 
   (ii) Dividends 
 
   Dividends are recorded in the period in which they are declared and 
paid. 
 
   11b. Dividends 
 
   Dividends were declared and paid as follows: 
 
 
 
 
                                                      31 December  31 December 
                                                          2016         2015 
                                                          GBPm         GBPm 
March 2015 (49.0 pence per share, paid May 2015)                -        134.4 
August 2015 (51.0 pence per share, paid October 
 2015)                                                          -        140.2 
March 2016 (63.4 pence per share, paid June 2016)           175.4            - 
August 2016 (62.9 pence per share, paid October 
 2016)                                                      174.4            - 
Total dividends                                             349.8        274.6 
 
 
   The dividends declared in March represent the final dividends paid in 
respect of the 2014 and 2015 financial years. The dividends declared in 
August are interim distributions in respect of 2015 and 2016. 
 
   A final dividend of 51.5 pence per share (GBP144 million) has been 
proposed in respect of the 2016 financial year. Refer to the Chairman's 
Statement and Strategic Report for further detail. 
 
   11c. Earnings per share 
 
 
 
 
                                                            31 December  31 December 
                                                                2016         2015 
                                                                GBPm         GBPm 
Profit for the financial year after taxation attributable 
 to equity shareholders                                           222.2        300.0 
Weighted average number of shares - basic                   282,419,324  279,627,738 
Unadjusted earnings per share - basic                             78.7p       107.3p 
Weighted average number of shares - diluted                 283,033,681  280,018,741 
Unadjusted earnings per share - diluted                           78.5p       107.1p 
 
 
   The difference between the basic and diluted number of shares at the end 
of 2016 (being 614,357; 2015: 391,003) relates to awards committed, but 
not yet issued under the Group's share schemes. Refer to note 8 for 
further detail. 
 
   11d. Share capital 
 
 
 
 
                                           31 December  31 December 
                                               2016         2015 
                                               GBPm         GBPm 
Authorised 
500,000,000 ordinary shares of 0.1 pence           0.5          0.5 
Issued, called up and fully paid 
284,352,270 ordinary shares of 0.1 pence           0.3            - 
281,587,953 ordinary shares of 0.1 pence             -          0.3 
                                                   0.3          0.3 
 
 
   During 2016 2,764,317 (2015: 2,898,211) new ordinary shares of 0.1 pence 
were issued to the trusts administering the Group's share schemes. 
 
   764,317 (2015: 948,211) of these were issued to the Admiral Group Share 
Incentive Plan Trust for the purposes of this share scheme to give a 
closing number at 31 December 2016 of 8,944,922 (31 December 2015: 
8,180,605). These shares are entitled to receive dividends. 
 
   2,000,000 (2015: 1,950,000) were issued to the Admiral Group Employee 
Benefit Trust for the purposes of the Discretionary Free Share Scheme to 
give a closing number at 31 December 2016 of 16,811,948 (31 December 
2015: 14,811,948). The Trustees have waived the right to dividend 
payments, other than to the extent of 0.001 pence per share, unless and 
to the extent otherwise directed by the Company from time to time. 
 
   The number of shares in issue at flotation was 258,595,400. There is one 
class of share with no unusual restrictions. 
 
   11e. Objectives, policies and procedures for managing capital 
 
   The Group manages its capital to ensure that all entities within the 
Group are able to continue as going concerns and also to ensure that 
regulated entities meet regulatory requirements with an appropriate 
margin. Excess capital above these levels within subsidiaries is paid up 
to the Group holding company in the form of dividends on a regular 
basis. 
 
   The Group's dividend policy is to make distributions after taking into 
account capital that is required to be held a) for regulatory purposes; 
b) to fund expansion activities; and c) as a further buffer against 
unforeseen events. This policy gives the Directors flexibility in 
managing the Group's capital. 
 
   The Group's regulatory capital requirements are discussed in the Group 
Financial Review within the Strategic Report. 
 
   11f. Group related undertakings 
 
   The Parent Company's subsidiaries are as follows: 
 
 
 
 
Subsidiary                                                     Class of    % Ownership     Principal 
                                                            shares held                     activity 
Incorporated in England and Wales 
Registered office: 9(th) Floor Brunel House, Fitzalan 
 Road, Cardiff, CF24 0EB 
Admiral Law Limited                                            Ordinary             90         Legal 
                                                                                             company 
Registered office: Admiral House, Queensway, Newport, 
 NP20 4AG 
BDE Law Limited                                                Ordinary             90         Legal 
                                                                                             company 
Registered office: Capital Tower, Greyfriars Road, 
 Cardiff, CF10 3AZ 
EUI Limited                                                    Ordinary            100     Insurance 
                                                                                        Intermediary 
Registered office: Ellipse Ground Floor, Padley Road, 
 Swansea, SA1 8AN 
Able Insurance Services Limited                                Ordinary            100     Insurance 
                                                                                        Intermediary 
Registered office: Greyfriars House, Greyfriars Road, 
 Cardiff, CF10 3AL 
Inspop.com (France) Limited                                    Ordinary            100     Insurance 

                                                                                        Intermediary 
Inspop.com Limited                                             Ordinary            100     Insurance 
                                                                                        Intermediary 
Rastreator.com Limited                                         Ordinary             75     Insurance 
                                                                                        Intermediary 
Registered office: Ty Admiral, David Street, Cardiff, 
 CF10 2EH 
Admiral Insurance Company Limited                              Ordinary            100     Insurance 
                                                                                             company 
Admiral Life Limited                                           Ordinary            100       Dormant 
Admiral Syndicate Limited                                      Ordinary            100       Dormant 
Admiral Syndicate Management Limited                           Ordinary            100       Dormant 
Bell Direct Limited                                            Ordinary            100       Dormant 
Confused.com Limited                                           Ordinary            100       Dormant 
Diamond Motor Insurance Services Limited                       Ordinary            100       Dormant 
Elephant Insurance Services Limited                            Ordinary            100       Dormant 
Admiral Financial Services Limited                             Ordinary            100     Financial 
                                                                                            services 
                                                                                             company 
EUI (France) Limited                                           Ordinary            100     Insurance 
                                                                                        Intermediary 
Preminen Price Comparison Holdings Limited                     Ordinary             50     Insurance 
                                                                                        Intermediary 
Preminen Dragon Price Comparison Limited                       Ordinary  50 (indirect)     Insurance 
                                                                                        Intermediary 
 
Incorporated in Gibraltar 
Registered office: 1st Floor, 24 College Lane, Gibraltar, 
 GX11 1AA 
Admiral Insurance (Gibraltar) Limited                          Ordinary            100     Insurance 
                                                                                             company 
 
Incorporated in India 
Registered office: 514 JMD Regent Square, Mehrauli 
 Gurgaon Road, Gurgaon, 122001, India 
Inspop Technologies Private Limited                              Ordinary          100      Internet 
                                                                                          technology 
                                                                                            supplier 
 
Incorporated in Spain 
Registered office: Paseo Castellana 163 4 Izq, 28046 
 Madrid 
Comparaseguros Correduría de Seguros, S.L., Sociedad        Ordinary           75     Insurance 
 Unipersonal                                                                (indirect)  Intermediary 
 
Incorporated in the United States of America 
Registered office: Deep Run 1; Suite 400, 9950 Mayland 
 Drive, Henrico, VA 23233 
Elephant Insurance Company                                       Ordinary          100     Insurance 
                                                                                             company 
Elephant Insurance Services LLC                                  Ordinary          100     Insurance 
                                                                                        Intermediary 
Registered office: 140 East Shore Drive, Suite 300, 
 Glen Allen, VA 23059 
comparenow.com Insurance Agency LLC                              Ordinary         71.1     Insurance 
                                                                            (indirect)  Intermediary 
Inspop USA LLC                                                   Ordinary         71.1     Insurance 
                                                                                        Intermediary 
 
Incorporated in China 
Registered office: Room 1806, Block 16 Jianwai SOHO, 
 No. 39 East 3rd Ring Road, Chaoyang District, Beijing 
Long Yu Science and Technology (Beijing) CO., Limited            Ordinary         20.5     Insurance 
                                                                            (indirect)  Intermediary 
 
 
   For further information on how the Group conducts its business across 
the UK, Europe and the US, refer to the Strategic Report. 
 
   11g. Related party transactions 
 
   Details relating to the remuneration and shareholdings of key management 
personnel are set out in the Directors' Remuneration Report. Key 
management personnel are able to obtain discounted motor insurance at 
the same rates as all other Group staff, typically at a reduction of 
15%. 
 
   The Board considers that only the Executive Directors of Admiral Group 
plc are key management personnel. Aggregate compensation for the 
Executive Directors will be disclosed in the Directors' Remuneration 
Report in the Group's 2016 Annual Report. 
 
   12. Reconciliations 
 
   The following tables reconcile significant key performance indicators 
and non-GAAP measures included in the Strategic Report to items included 
in the financial statements. 
 
   12a. Reconciliation of turnover to reported gross premiums written and 
Other Revenue as per the financial statements 
 
 
 
 
                                                      31 December  31 December 
                                                          2016         2015 
                                                          GBPm         GBPm 
Gross premiums written after co-insurance per note 
 5b of financial statements                               1,482.0      1,199.9 
Premiums underwritten through co-insurance 
 arrangements                                               711.9        605.3 
Total premiums written before co-insurance 
 arrangements                                             2,193.9      1,805.2 
Other Revenue per note 7b of financial statements           360.6        319.8 
                                                          2,554.5      2,125.0 
UK vehicle commission(*1)                                  (20.9)       (31.8) 
Other(*2)                                                    21.4         11.4 
Turnover as per note 4b of financial statements           2,555.0      2,104.6 
Intra-group income elimination(*3)                           20.8         14.2 
Total turnover                                            2,575.8      2,118.8 
 
   *1  During 2012 Admiral ceased earning Other Revenue from the sale of 
non-optional legal protection policies. At the same point, the Group 
began charging its panel of co- and reinsurers a vehicle commission. The 
substance of these changes meant that the total premiums written 
increased by the amount of revenue that was previously earned from the 
sale of non-optional legal protection policies. The vehicle commission 
included within Other Revenue is therefore eliminated from the turnover 
measure to avoid double counting. 
 
   *2  Other reconciling items represent co-insurer and reinsurer shares of 
Other Revenue in the Group's International Car Insurance businesses. 
 
   *3  Intra-group income elimination relates to price comparison income 
earned in the Group from other Group companies. 
 
   12b. Reconciliation of claims incurred to reported loss ratios, 
excluding releases on commuted reinsurance 
 
 
 
 
                             31 December 2016               31 December 2015 
                 UK Car  International Car  Group   UK Car  International Car  Group 
                  GBPm          GBPm         GBPm     GBPm         GBPm         GBPm 
Net insurance 
 claims           290.1               76.5   394.5   150.5               51.6  226.5 
 
Net claims 
 handling 
 expenses        (11.0)                  -  (11.2)   (9.4)                  -  (9.4) 
Reinsurer cap 
 impact               -              (6.4)   (6.4)       -              (2.9)  (2.9) 
Reserve 
 releases on 
 commuted 
 reinsurance       17.1                  -    17.1    88.8                  -   88.8 
Other 
 adjustment(*1)       -              (1.0)   (1.0)       -              (0.6)  (0.6) 
Adjusted net 
 claims           296.2               69.1   393.0   229.9               48.1  302.4 
 
Net insurance 
 premium 
 revenue          404.3               94.3   548.8   358.6               64.5  467.0 
Other 
 adjustment(*1)       -              (3.0)   (3.0)       -              (2.2)  (2.2) 
Adjusted net 
 insurance 
 premium 
 revenue          404.3               91.3   545.8   358.6               62.3  464.8 
Reported loss 
 ratio            73.3%              75.7%   72.0%   64.1%              77.2%  65.1% 
 
 
   *1 Other adjustments relate to additional products underwritten in the 
Group's international car insurance businesses. The contribution from 
these products is reported as ancillary income and as such the amounts 
are excluded for the purpose of calculation of loss and expense ratios. 
 
   12c. Reconciliation of expenses related to insurance contracts to 
reported expense ratios 
 
 
 
 
                              31 December 2016              31 December 2015 
                  UK Car  International Car  Group  UK Car  International Car  Group 
                   GBPm          GBPm         GBPm    GBPm         GBPm         GBPm 
Net insurance 
 expenses           46.2               41.1   94.0    41.5               37.0   83.1 
 
Net claims 
 handling 
 expenses           11.0                  -   11.2     9.4                  -    9.4 
Reinsurer cap 

 impact                -              (1.5)  (1.5)       -              (9.8)  (9.8) 
Intra-group 
 expenses 
 elimination(*1)    13.7                7.1   20.8     9.5                4.7   14.2 
Other 
 adjustment(*2)        -              (2.0)  (2.0)       -              (1.6)  (1.6) 
Adjusted net 
 expenses           70.9               44.7  122.5    60.4               30.3   95.3 
 
Net insurance 
 premium 
 revenue           404.3               94.3  548.8   358.6               64.5  467.0 
Other 
 adjustment(*1)        -              (3.0)  (3.0)       -              (2.2)  (2.2) 
Adjusted net 
 insurance 
 premium 
 revenue           404.3               91.3  545.8   358.6               62.3  464.8 
Reported expense 
 ratio             17.5%              49.0%  22.4%   16.9%              48.6%  20.5% 
 
   *1 The intra-group expenses elimination amount relates to aggregator 
fees charged by the Group's price comparison entities to other Group 
companies. 
 
   *2 Other adjustments relate to additional products underwritten in the 
Group's international car insurance businesses. The contribution from 
these products is reported as ancillary income and as such the amounts 
are excluded for the purpose of calculation of loss and expense ratios. 
 
   12d.      Reconciliation of statutory profit before tax to Group's share 
of profit before tax 
 
 
 
 
                                                          31 December  31 December 
                                                              2016         2015 
                                                              GBPm         GBPm 
Statutory profit before tax per the Consolidated Income 
 Statement                                                      278.4        368.7 
Non-controlling interest share of profit before tax               5.9          8.1 
Group's share of profit before tax (Post Ogden)                 284.3        376.8 
Impact of reduction in UK Ogden discount rate                   105.4            - 
Group's share of profit before tax (Pre Ogden)                  389.7        376.8 
 
 
   13. Statutory Information 
 
   The financial information set out above does not constitute the 
company's statutory accounts for the years ended 31 December 2016 or 
2015. Statutory accounts for 2015 have been delivered to the registrar 
of companies, and those for 2016 will be delivered in due course. The 
auditors have reported on those accounts; their reports were (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. 
 
   Consolidated financial summary 
 
   Basis of preparation 
 
   The figures below are as stated in the Group financial statements 
preceding this financial summary and issued previously. Only selected 
lines from the income statement and balance sheet have been included. 
 
   Income statement 
 
 
 
 
                                  2016     2015     2014     2013     2012 
                                   GBPm     GBPm     GBPm     GBPm     GBPm 
Total premiums                   2,193.9  1,805.2  1,675.6  1,737.6  1,897.2 
Net insurance premium revenue      548.8    467.0    464.9    483.0    498.9 
Other Revenue                      360.6    319.8    332.5    327.8    361.1 
Profit commission                   54.3     85.4     71.8     99.3    108.4 
Investment and interest income      53.1     32.6     15.4     14.3     15.9 
Net revenue                      1,016.8    904.8    884.6    924.4    984.3 
Net insurance claims             (394.6)  (226.5)  (259.1)  (303.0)  (404.5) 
Net expenses                     (332.4)  (298.5)  (270.2)  (251.2)  (235.2) 
Operating profit                   289.8    379.8    355.3    370.2    344.6 
Finance costs                     (11.4)   (11.1)    (4.6)        -        - 
Profit before tax                  278.4    368.7    350.7    370.2    344.6 
 
 
   Balance sheet 
 
 
 
 
                                    2016     2015     2014     2013     2012 
                                     GBPm     GBPm     GBPm     GBPm     GBPm 
Property and equipment                32.0     34.9     32.3     12.4     16.5 
Intangible assets                    162.3    142.3    107.2     92.8     92.5 
Deferred income tax                    8.4     20.6     22.9     17.0     15.2 
Reinsurance assets                 1,126.4    878.7    829.8    821.2    803.0 
Insurance and other receivables      784.9    537.1    435.3    445.6    458.8 
Financial investments              2,420.2  2,323.5  2,194.1  1,896.9  1,601.6 
Cash and cash equivalents            326.6    265.3    255.9    187.9    216.6 
Total assets                       4,860.8  4,202.4  3,877.5  3,473.8  3,204.2 
Equity                               581.7    632.9    580.9    524.1    460.7 
Insurance contracts                2,749.5  2,295.0  2,097.4  1,901.3  1,696.9 
Subordinated and other financial 
 liabilities                         224.0    223.9    203.8        -        - 
Trade and other payables           1,292.2  1,015.0    965.8  1,013.7  1,006.5 
Current tax liabilities               13.4     35.6     29.6     34.7     40.1 
Total equity and total 
 liabilities                       4,860.8  4,202.4  3,877.5  3,473.8  3,204.2 
 
 
 
 
   Alternative Performance Measures 
 
   Throughout this report, the Group uses a number of Alternative 
Performance Measures (APMs); measures that are not required or commonly 
reported under International Financial Reporting Standards, the 
Generally Accepted Accounting Principles (GAAP) under which the Group 
prepares its financial statements. 
 
   These APMs are used by the Group, alongside GAAP measures, for both 
internal performance analysis and to help shareholders and other users 
of the Annual Report and financial statements to better understand the 
Group's performance in the period in comparison to previous periods and 
the Group's competitors. 
 
   The table below defines and explains the primary APMs used in this 
report. Financial APMs are usually derived from financial statement 
items and are calculated using consistent accounting policies to those 
applied in the financial statements, unless otherwise stated. Non 
financial KPIs incorporate information that cannot be derived from the 
financial statements but provide further insight into the performance 
and financial position of the Group. 
 
   APMs may not necessarily be defined in a consistent manner to similar 
APMs used by the Group's competitors. They should be considered as a 
supplement rather than a substitute for GAAP measures. 
 
 
 
 
Turnover          Turnover is defined as total premiums written (as 
                   below) and other revenue. It is reconciled to financial 
                   statement line items in note 12a to the financial 
                   statements. 
                   This measure has been presented by the Group in every 
                   Annual Report since it became a listed Group in 2004. 
                   It reflects the size of the revenue generated by the 
                   Group and analysis of this measure over time provides 
                   a clear indication of the growth in this revenue. 
                   The measure was developed as a result of the Group's 
                   business model. The core UK Car insurance business 
                   has historically shared a significant proportion of 
                   the risks with Munich Re, a third party insurance 
                   Group, through a co-insurance arrangement, with the 
                   arrangement subsequently being replicated in some 
                   of the Group's international insurance operations. 
                   Premiums, and claims accruing to the external co-insurer 
                   are not reflected in the Group's income statement 
                   and therefore presentation of this metric enables 
                   users of the Annual Report to see the scale of the 
                   Group's insurance operations in a way not possible 
                   from taking the income statement in isolation. 
Total Premiums    Total premiums written are the premiums written within 
Written            the Group, including co-insurance. It is reconciled 
                   to financial statement line items in note 12a to the 
                   financial statements. 
                   This measure has been presented by the Group in every 
                   Annual Report since it became a listed Group in 2004. 
                   It reflects the total premiums written by the Group's 
                   insurance intermediaries and analysis of this measure 
                   over time provides a clear indication of the growth 
                   in premiums, irrespective of how co-insurance agreements 
                   have changed over time. 
                   The reasons for presenting this measure are consistent 
                   with that for the Turnover APM noted above. 
Group's share of  Group profit before tax represents the Group's share 
Profit before      of profit before tax, excluding the impact of Non-controlling 
Tax                Interests. It is reconciled to statutory profit before 
                   tax in note 12d to the financial statements. 
                   This measure is useful in presenting the limit of 
                   the Group's exposure to the expenditure incurred in 
                   starting up new businesses and demonstrates the 'test-and-learn' 
                   strategy employed by the Group to expansion into new 
                   territories. 
                   In 2016, Group's share of Profit before Tax is presented 
                   on a 'Pre Ogden' and a 'Post Ogden basis. 'Pre Ogden' 
                   represents the Group's share of profit before tax 
                   before the impact of the reduction in the UK Ogden 
                   discount rate confirmed by the Lord Chancellor in 

                   February 2017. 
Underwriting      For each insurance business an underwriting result 
result (profit     is presented showing the segment result prior to the 
or loss)           inclusion of profit commission, other income contribution 
                   and instalment income. It demonstrates the insurance 
                   result, i.e. premium revenue and investment income 
                   less claims incurred and insurance expenses. 
Loss Ratio        Reported loss ratios are expressed as a percentage 
                   of claims incurred divided by net earned premiums. 
                   There are a number of instances within the Annual 
                   Report where adjustments are made to this calculation 
                   in order to more clearly present the underlying performance 
                   of the Group and operating segments within the Group. 
                   The calculations of these are presented within note 
                   12b to the accounts and explanation is as follows. 
                   UK reported motor loss ratio: Within the UK insurance 
                   segment we separately present motor ratios, i.e. excluding 
                   the underwriting of other products that supplement 
                   the car insurance policy. The motor ratio is adjusted 
                   to i) exclude the impact of reserve releases on commuted 
                   reinsurance contracts and ii) exclude claims handling 
                   costs that are reported within claims costs in the 
                   income statement. 
                   International insurance loss ratio: As for the UK 
                   motor loss ratio, the international insurance loss 
                   ratios presented exclude the underwriting of other 
                   products that supplement the car insurance policy. 
                   The motor ratio is adjusted to exclude the claims 
                   element of the impact of reinsurer caps as inclusion 
                   of the impact of the capping of reinsurer claims costs 
                   would distort the underlying performance of the business. 
                   Group loss ratios: Group loss ratios are reported 
                   on a consistent basis as the UK and international 
                   ratios noted above. Adjustments are made to i) exclude 
                   the impact of reserve releases on commuted reinsurance 
                   contracts, ii) exclude claims handling costs that 
                   are reported within claims costs in the income statement 
                   and iii) exclude the claims element of the impact 
                   of international reinsurer caps. 
Expense Ratio     Reported expense ratios are expressed as a percentage 
                   of net operating expenses divided by net earned premiums. 
                   There are a number of instances within the Annual 
                   Report where adjustments are made to this calculation 
                   in order to more clearly present the underlying performance 
                   of the Group and operating segments within the Group. 
                   The calculations of these are presented within note 
                   12c to the accounts and explanation is as follows. 
                   UK reported motor expense ratio: Within the UK insurance 
                   segment we separately present motor ratios, i.e. excluding 
                   the underwriting of other products that supplement 
                   the car insurance policy. The motor ratio is adjusted 
                   to i) include claims handling costs that are reported 
                   within claims costs in the income statement and ii) 
                   include intra-group aggregator fees charged by the 
                   UK price comparison business to the UK insurance business. 
                   International insurance expense ratio: As for the 
                   UK motor loss ratio, the international insurance expense 
                   ratios presented exclude the underwriting of other 
                   products that supplement the car insurance policy. 
                   The motor ratio is adjusted to i) exclude the expense 
                   element of the impact of reinsurer caps as inclusion 
                   of the impact of the capping of reinsurer expenses 
                   would distort the underlying performance of the business 
                   and ii) include intra-group aggregator fees charged 
                   by the overseas price comparison businesses to the 
                   international insurance businesses. 
                   Group expense ratios: Group expense ratios are reported 
                   on a consistent basis as the UK and international 
                   ratios noted above. Adjustments are made to i) include 
                   claims handling costs that are reported within claims 
                   costs in the income statement, ii) include intra-group 
                   aggregator fees charged by the Group's price comparison 
                   businesses to the Group's insurance businesses and 
                   iii) exclude the expense element of the impact of 
                   international reinsurer caps. 
Combined Ratio    Reported combined ratios are the sum of the loss and 
                   expense ratios as defined above. Explanation of these 
                   figures is noted above and reconciliation of the calculations 
                   are provided in notes 12b and 12c. 
Return on Equity  Return on equity is calculated as profit before tax 
                   for the period attributable to equity holders of the 
                   Group divided by the average total equity attributable 
                   to equity holders of the Group in the year. This average 
                   is determined by dividing the opening and closing 
                   positions for the year by two. 
                   The relevant figures for this calculation can be found 
                   within the Statement of Changes in Equity. 
Group Customers   Group customer numbers are the total number of car, 
                   household and van policyholders within the Group 
                   This measure has been presented by the Group in every 
                   Annual Report since it became a listed Group in 2004. 
                   It reflects the size of the Group's customer base 
                   and analysis of this measure over time provides a 
                   clear indication of the growth. It is also a useful 
                   indicator of the growing significance to the Group 
                   of the different lines of business and geographic 
                   regions. 
Effective Tax     Effective tax rate is defined as the approximate tax 
Rate               rate derived from dividing the Group's profit before 
                   tax by the tax charge going through the income statement. 
                   It is a measure historically presented by the Group 
                   and enables users to see how the tax cost incurred 
                   by the Group compares over time and to current corporation 
                   tax rates. 
 
 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Admiral Group PLC via Globenewswire 
 
 
  http://www.admiralgroup.co.uk 
 

(END) Dow Jones Newswires

March 08, 2017 02:00 ET (07:00 GMT)

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