Admiral Group plc SWOT and PESTLE Analysis
COMPANY PROFILE -Admiral Group plc
Business Sector :Insurance
Operating Geography :United Kingdom, Europe, Global
About Admiral Group plc :
Admiral Group plc, based in Cardiff, Wales, is a British financial services company. It markets the Admiral, Bell, Elephant, Diamond, and Veygo vehicle insurance brands, besides launching the price comparison services, Confused.com and Compare.com. It is a constituent of the FTSE 100 Index. The London Stock Exchange is where it is traded. As of 2023, The company employs over 11,000 employees, across their brands at their offices in the UK, Spain, Italy, France, USA, Canada, and India. The group is a very lucrative and rapidly expanding financial services firm, having organic growth. In 1991, the Brockbank Group established the company as a division. Henry Engelhardt spearheaded a management buyout of Admiral Group from Brockbank Group, funded by Barclays Private Equity, in November 1999. Admiral went public on the London Stock Exchange on September 23, 2004. Admiral Group became the highest valued public business in Wales as a result of the float, which was the largest capital raise for a Welsh company ever. At the Insurance Times Awards in 2020, Admiral was named Direct to Consumer Business of the Year. The Industry Achiever Award was also given to CEO David Stevens. Admiral is ranked 4th in the UK's Best Workplaces list for 2022.
The USP of Admiral Group is that it is one of the leading insurance providers in the UK. The mission statement of the Admiral Group reads, "Our purpose is to help more people to look after their future.” While its vision statement is "Always striving for better together."
Admiral Group plc Revenue :
£ 1.49 billion – FY ending 31st December 2022 (y-o-y decline of -3.9%)
£ 1.55 billion – FY ending 31st December 2021
Competitive Analysis of Admiral Group plc
Strengths | Weaknesses |
1. Strong brand value across its operating geographies 2. Fastest growing motor insurer in France 3. Strong focus on CSR 4. Diversified product portfolio through continuous innovations’ 5. Strong & growing customer base | 1. High dependence on UK insurance market 2. Significant credit risk of customer defaults & other |
Opportunities | Threats |
1. Accelerating towards Admiral 2.0 2. Invest in product diversification 3. Evolution of EV market | 1. Increasing cyber-security threats 2. Business impact due to market volatility 3. Risk of catastrophe events & severe weather events |
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Detailed SWOT Analysis of Admiral Group plc
Strength
1. Strong brand value across its operating geographies: Admiral is one of the largest car & van insurers in the UK. In 2022, the Group ranked #1 in brand awareness among direct insurance companies and ranked 4th in the Great Place to Work ranking. They have a Trustpilot rating of 4.7, which is the highest among direct insurance companies. Their brand recognition is supported by effective investments, such as sponsoring the Italian national football team. Since 2018, they have accumulated a profit of €47 million. Over the past five years, they have experienced growth in motor profit (+11%), customers (+66%), and policies per employee (+27%). It has consistently achieved material profit and growth for the past nine years. Their strong fundamentals have allowed them to succeed in a challenging market environment, with risk selection being a competitive advantage.
2. Fastest growing motor insurer in France: From 2019, L’olivier experienced an impressive 85% growth in their portfolio, making them one of the fastest growing companies in the market. They achieved this despite difficult circumstances, including a significant decrease in car sales, rising inflation, and severe hailstorms. It responded by prioritizing profit margins, resulting in slightly slower growth. Their focus on digitalization paid off, leading to improved customer service and efficiency. For two consecutive years, they won the "best customer service of the year" award in non-life insurance & in 2022, their Net Promoter Score (71) remained far higher than the industry average.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
Major Brands :
- Admiral
- Gladiator
- Bell
- Elephant
- Diamond
- Veygo
- Admiral Loans
- Homebrella
- L’olivier Assurance
- Apparent Insurance
- Balumba
- Compare.com
- Qualitas Auto
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TABLE OF CONTENTS
DELIVERY AND FORMAT
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References used in Admiral Group plc SWOT & PESTLE Analysis Report
1. Annual Report - https://admiralgroup.co.uk/sites/default/files_public/annual-report/2022/03/2021-full-year-results-annual-report.pdf
2. Our Story - https://admiralgroup.co.uk/our-story
3. Here is the Gender Pay Gap at 10,000 U.K. Employers - https://www.bloomberg.com/graphics/2021-uk-gender-pay-gap/?sref=QF6yuiF0
4. Admiral Group plc 2021 Half Year Results - https://admiralgroup.co.uk/sites/default/files_public/slides/2021/08/2021-interim-results-slides.pdf
5. Cyber insurance: Companies buying higher sum insured, wider covers despite big rise in premium - https://www.financialexpress.com/money/insurance/cyber-insurance-companies-buying-higher-sum-insured-wider-covers-despite-big-rise-in-premium/2399501/
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Admiral Group plc SWOT and PESTLE analysis has been conducted by Riti Bhattacharyya and reviewed by senior analysts from Barakaat Consulting.
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