LONDON (ShareCast) - (Sharecast News) - Admiral announced plans for cofounder David Stevens to quit as chief executive as reserve releases helped the insurer post record annual profit of more than £500m.
Pretax profit for the year to the end of December rose 10% to £522.6m as group turnover rose 5% to £3.46bn. The group's preferred "share of pretax profit" measure also rose 10% to £526.1m.

Stevens, CEO since 2016, will leave in March 2021 and will replaced by Milena Mondini de Focatiis, Admiral's head of UK and European insurance.

The profit increase was driven by a £30m increase in UK motor profit as the division released reserves from past claims. The FTSE 100 insurer said if reserve releases had been in line with the five-year average then profit would have been £430-450m.

Admiral increased its final dividend by 17% to 77p a share, taking the annual payout to 140p a share - up 11% from a year ago. Chief Financial Officer Geraint Jones said he expected further significant reserve releases in 2020 though probably slightly less than in 2019.

Jones said: "UK motor profit is materially higher in 2019 than prior years. That has been driven by unusually high UK motor reserve releases that resulted from improved reserve estimates across a number of years. This in part is due to some 'unclogging' of large claims settlements caused by the recent certainty, but also generally much more positive trends on big claims than we expected."

Stevens cofounded Admiral in 1991 and became its second CEO in May 2016. He will work for the company as a part-time consultant after handing over to De Focatiis. She started work at the company in 2007 and will join the board as CEO designate.

Stevens said: "I feel a responsibility to do what's best for the long-term future of Admiral. That's why I am looking to pass on stewardship of Admiral to a very talented next generation of Admiral management led by Milena Mondini."

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