Adding value.
Delivering
difference.
Admial Group plc
Annual Repot and Accounts 2022
2022 Financial and Stategic Highlights
Sustainability Highlights
Financial Highlights
1 Group proit before tax, Earnings per share, Group turnover,
Group net revenue and Return on equity are presented on
a continuing opeations basis
2 Group proit before tax, Earnings per share and Return
on equity exclude the impact of one-of restructure costs
in 2021 totalling £55.5 million
3 Alternative Peformance Measures, see page 306
4 Relational NPS, methodology updated in 2022
Gender split across the Group
50%(Female) 50%(Male)
(2021: 51% female, 49% male)
Emissions (tonnes C0
2
per employee)
0.3 tonnes
(2021: 0.5 tonnes)
Net Promoter Score (NPS) Group aveage
across our opeations
4
>50
(2021: >50)
£469.0m
£769.0m*
£608.0m
2022
2021
2020
Groups profit before tax
1,2,3
£469.0m
*£713m including restructure costs
124.3p
212.2p
170.7p
2022
2021
2020
EPS
1,2,3
(pence)
124.3p
35%
56%
52%
2022
2021
2020
ROE
1,2,3
35%
9.28m
8.36m
7.66m
2022
2021
2020
Customers
3
(million)
9.28m
£3.68bn
£3.51bn
£3.51bn
2022
2021
2020
Turnover
1,3
£
3.68bn
180%
195%
187%
2022
2021
2020
Solvency ratio
3
(post dividend)
180%
£1.49bn
£1.55bn
£1.31bn
2022
2021
2020
Net revenue
1
£
1.49bn
112.0p
187.0p
156.5p
2022
2021
2020
Dividend per share (pence)
112.0p
Our purpose as a business, and the
reason we exist, is to ‘Help more
people to look after their future.
Always striving for better, together’.
It defines who we are, and the way
that we do things.
Contents
Company Oveview
4 About us
6 Our Business Model
8 What we do
9 The drivers of our success
12 Creating value for our stakeholders
Stategic Repot
16 Chair’s Statement
20 Chief Executive Officer’s statement
24 Q&A with Milena, Geaint, Cristina
and Costantino
28 Our Stategy
38 Our Sustainability Approach
40 Key Peformance Indicators
41 2022 Awards
42 Group Chief Financial Officer’s review
48 UK Insuance review
56 International Insuance review
61 Admial Money review
63 Other Group Items
64 Group Capital Structure and
Financial Position
68 Creating Sustainable Value for
our Stakeholders
95 Streamline Energy and Carbon Repoting
97 Task Force on Climate-related
Financial Disclosures
112 Section 172 Statement
113 Non-financial information statement
114 Principal Risks and Uncetainties
122 Viability Statement
Corpoate Governance
126 Governance at a glance
128 Introduction to Governance
130 Board of Directors
136 Governance Repot
158 Nomination and Governance Committee
171 Audit Committee Repot
178 Group Risk Committee Repot
183 Remuneation Committee Repot
186 Remuneation at a Glance
187 Directors’ Remuneation Policy
196 Annual Repot on Remuneation
210 Directors’ Repot
Financial Statements
215 Independent Auditor’s Repot
226 Consolidated Income Statement
227 Consolidated Statement of
Comprehensive Income
228 Consolidated Statement of Financial Position
229 Consolidated Cash Flow Statement
230 Consolidated Statement of Change in Equity
231 Notes to the Financial Statements
293 Parent company financial statements
296 Notes to the Parent Company
Financial Statements
304 Consolidated Financial Summay (unaudited)
Additional Information
306 Glossay
See page 87 See page 85
See page 74See page 77
For our people... For our customers...
For our
communities...
For our
shareholders...
Adding value.
Delivering
difference.
Admial Group plc Annual Repot and Accounts 2022
1
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Contents
4 About us
6 Our Business Model
8 What we do
9 The drivers of our success
12 Creating value for our stakeholders
Company
Oveview
4th
Best company to
work for in 2022
Our purpose-led approach
Help more people to look
after their future. Always
striving for better, together.
We focus on doing the right thing. Our purpose deines the
reason why we exist, and the way that we do things. We ty to
be there to help and to provide reassuance, suppot and relief
when our customers need it most. We price our products fairly
and competitively to provide good inancial value and make
sure customers can access the right kind of sevices. We help
protect individuals’ cars and homes to protect people’s futures
– all whilst providing an environment where our colleagues
can grow, and strive to do better evey day.
Admial Group plc Annual Repot and Accounts 2022
2
Company Oveview
Helping drive positive impact in
communities across the globe
In response to some of the devastating global weather
events in 2022, we launched a new Global Emergency Fund
to provide help to those afected.
In Pakistan, where looding impacted over 30 million people,
we donated £50,000 to the British Red Cross to aid their
Pakistan Flood appeal. This donation is expected to help
3,500 people by providing them with warm clothing ahead
of the winter months.
We also saw the devastating impacts of Hurricane Fiona across
Atlantic Canada. Thousands of our colleagues, their families
and communities were left without power due to fallen
trees and downed powerlines. We donated $150,000 to the
Canadian Red Cross Hurricane Fiona Appeal, Feed Nova Scotia
and a number of other employee-nominated charities to give
relief to those afected.
Helping protect UK homes
from water damage
Admial has patnered with Ondo and their LeakBot sevices
this year to help our UK Household customers avoid costly
water leaks. LeakBot is a smat water leak detector that
monitors an entire home’s plumbing and requires no
professional installation. The device uses its technology to
measure the low of water and alets the customer via their
smat phone or tablet about any non-routine water loss.
We are currently ofering LeakBot to 20,000 Platinum
Household customers on a trial basis. Selected customers
will receive a LeakBot device at no cost as well as one
free LeakBot engineer visit if a leak is detected.
Helping our people grow
We launched a new leadership and skills development
hub in 2022 to help give employees the right guidance,
suppot, and skills development oppotunities.
The hub provides access to a ange of development courses
and progammes from both our internal development
teams and external sources. Courses and content within
the hub are updated regularly and if an employee feels
conident with the skills they have developed at their
current level they can access resources within the following
level. The hub was built on a famework which aims to make
development and career progression planning easier for all.
Colleagues currently have access to over 17,000 courses,
as well as access to the LinkedIn Learning platform.
Admial Group plc Annual Repot and Accounts 2022
3
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
About us
UK Motor
Insuance
UK Household
Insuance
Admial is one of the
largest car and van
insurers in the UK.
Admial has a
growing household
insuance business.
Admial Group plc is
headquatered in Cardiff,
to be Wales’ only FTSE
100 company. We have
a strong international
presence, with oices in
countries including Fance,
Italy, Spain, US, Canada,
Gibaltar and India.
Customers (million)
4.94m
(2021: 4.97 million)
Turnover
5
(billion)
£2.49bn
(2021: £2.52 billion)
Net insuance premium
revenue (million)
£471.0m
(2021: £496.5 million)
Customers (million)
1.58m
(2021: 1.32million)
Turnover
5
(billion)
£255.4m
(2021: £218.8 million)
Net insuance premium
revenue (million)
£55.6m
(2021: £49.1 million)
Our business segments
5 Alternative Peformance Measures
– refer to the end of the repot for
deinition and explanation
Admial Group plc Annual Repot and Accounts 2022
4
Company Oveview
International
Insuance
Loans
People employed globally
>11,000
Customers worldwide
9.28m
Turnover worldwide
5
:
£3.68bn
Admial ofers unsecured
personal loans and car
inance products.
Customers (million)
143,213
(2021: 111,900)
Total Income (million)
£44.9m
(2021: £28.9 million)
Gross Balances (million)
£0.89bn
(2021: £0.61 billion)
Admial has motor
insuance businesses
in Spain, Italy, Fance,
and the US and a small
household insuance
business in Fance.
Customers (million)
2.04m
(2021: 1.81 million)
Turnover
5
(million)
£795.9m
(2021: £690.3 million)
Net insuance premium
revenue (million)
£241.8m
(2021: £221 million)
Admial Group plc Annual Repot and Accounts 2022
5
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Total Turnover
6
£3.68bn
75% UK Insurance
3%
Loans and
Other
22%
International
Insurance
Our Business Model
1. Our purpose 2. Leveaging
on what we do
A strong, purpose-led business
model that adds value and
delivers difference.
Read more on
page 8
UK Insuance
Admial is one of the largest motor
insurers in the UK. In addition, we are
apidly growing our household, tavel,
and pet insuance businesses.
International Insuance
Admial has established motor insuance
businesses in Spain, Italy, Fance and the
US, as well as a small Household business
in Fance.
Loans and other products
Admial ofers unsecured personal loans
and car inance products, as well as
comparison sevices in the US.
6 Alternative Peformance Measure see page 306
Our purpose
Help more people
to look after
their future.
Always striving for
better, together.
Admial Group plc Annual Repot and Accounts 2022
6
Company Oveview
3. Achieved through our drivers to success
4. In line with our stategic priorities
5. In order to create value for our stakeholders
Read more on
page 9
Read more on
page 28
Read more on
page 74
Acceleating
towards
Admial 2.0
Aim: Strengthen our core
competencies and increase
speed of delivey to best seve
our customers.
• Digital First
• Scaled Agile
• Customer-Centric Innovation
• Smat Working
• Data and advanced analytics
Diversiication
Aim: Increase customer engagement
and business resilience.
• Scale up promising products
• Strengthen customer proposition
• Leveage core strengths
• Innovate in product design
Excellent
customer sevice
• Simple and
clear communication
• Responsible sales
and tansparent
claims processes
• Satisied customers
Unique
company culture
• Communication
• Equality
• Recognition and reward
• Fun
Opeational
excellence
• Good value
inancial products
• Risk selection and
data analytics
• Eicient
claims management
• Financial discipline
Eicient capital
employment
• Good risk
management
• Strong
shareholder returns
Tack record
of long-term
proitable growth
• Prudent reseving
philosophy
• Test-and-learn approach
• Responsible and
sustainable opeations
Evolution
of Motor
Aim: Evolve our propositions
for changes in mobility.
• Understand changes in mobility
• Evolve our proposition
• Develop competencies for the future
• Innovate in product design
Customers People Patners &
Suppliers
Shareholders Communities Environment
Admial Group plc Annual Repot and Accounts 2022
7
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Insuance undewriting
Admial Group’s primay business is to sell car, van,
home, tavel, and pet insuance in the UK, Europe
(Spain, Fance, Italy), and the US. The majority of
our customers buy our products through the price
comparison channel, with a smaller propotion of
customers buying directly from us, as well as the
broker and agency channels. In addition to our core
insuance products, we geneate other revenue
from the sale of ancillay add-ons and from fees
geneated over the life cycle of a policy.
The Group’s core market is the UK, where we estimate
we have 17% share of the private car insuance market
and a 7% share of the private home insuance market
7
.
Outside of the UK, we leveage the knowledge, skills,
and resources from our established UK business to
promote expansion overseas and grow both our
international businesses and new ventures outside
of insuance undewriting.
Risk sharing
A key feature of our business model and success is
the use of extensive reinsuance and co-insuance
patnerships. These are propotional risk-sharing
agreements, where insurers outside of the Group
undewrite the majority of the risk geneated,
either through co-insuance or quota share
reinsuance contacts. These arangements include
proit commission terms which allow Admial to
retain a signiicant potion of the proit geneated.
Investing premiums
Admial’s proitability is primarily geneated by the
Group’s undewriting activities but we also geneate
investment income by investing the premiums we
collect. The majority of our proits are paid out in
dividends, with a propotion held back to pay for
our claims and future investment oppotunities,
linked to the capital requirements for the business.
Our investment stategy is focused on capital
presevation and low volatility of returns. Admial has
an asset liability matching stategy to control interest
ate, inlation, and currency risk. We hold a prudent
level of liquidity and have a high-quality credit proile.
Unsecured personal lending, car inance,
and other products
Outside of our insuance businesses, we sell a ange
of unsecured personal loans and car inance products
through the price comparison channel and via the
Admial website. Our core lending business opeates
in the UK (under the Admial Money band) and is
funded through a combination of internal and external
inancing. Other businesses include a small price
comparison business in the US and a recently created
entity (opeating under the Admial Pioneer band)
designed to test new products and identify future
sources of earnings.
Read more about
our Co-insuance
and reinsuance
on page 66
Read more about
our Investing on
page 65
Our Business Model
What we do
7 Based on 2022 data from the Association
of British Insurers (ABI)
Admial Group plc Annual Repot and Accounts 2022
8
Company Oveview
Excellent Customer Sevice
2022 has been a diicult year for the industy and for
Admial. However, whilst we continue to experience
diicult economic conditions, our focus on providing
good customer sevice remains unchanged.
Simple and clear communication
We aim to create simple insuance products which are
easily understood and accessible to all. We promote
an inclusive experience and make sure customers
can reach us at any point, whether that be digitally,
or over the phone. We also acknowledge that individual
customers may have diferent needs when it comes
to being informed about our products. Our Vulneable
Customer Policy allows for an appropriate system
to be implemented identify vulneable customers and
ensures suicient controls are in place so that these
customers receive appropriate suppot.
Responsible sales and tansparent
claims processes
We comply with all relevant regulatoy requirements
and actively review our pactices to ensure we opeate
in line with relevant policies. When selling insuance
products, we provide customers with key chaacteristic
information about our products, covering the most
crucial features and limitations. This makes sure
customers can make informed decisions and can buy
the right products for their needs. This extends to
our claims pactices where we work hard to deliver
fair outcomes in a timely manner. We provide clear
guidance on the full claims process and make sure
customers can easily reach us to resolve any issues.
Satisied customers
We regularly measure customer satisfaction across
seveal key benchmarks to stay close to customers’
developing needs and better understand areas
where our sevice fails to meet expectations. We use
the globally recognised Net Promoter Score® (NPS)
as the key metric for measuring customer loyalty
through customers’ willingness to recommend Admial
Group’s bands. Obtaining regular customer feedback
is core to the way we do business as it allows us to
understand what we are doing well but also enables
us to identify the priority areas for improvement.
2022 Highlights
• >50 Group aveage NPS score across our opeations
8
• Voted Best Big Insuance Company in the UK
Insuance Choice Awards
• Number 1 Ranked Italian insurer on Trustpilot
Household insuance teams
suppot customers impacted
by extreme weather
This year, a number of extreme weather events devastated
communities across the world. At the stat of 2022, we saw
catastrophic storms and looding hit areas of the UK. We took
a proactive approach to protecting our customers during
this time. Before the storms made landfall, our Household
insuance team contacted all customers who held policies
in areas of risk. We explained the risks of possible looding
and asked if any help was required. Throughout the period,
we continued to monitor lood warnings and added
customers to our contact list if their risk exposure were
to increase.
During storms Dudley, Eunice and Fanklin, we made sure that
enough suppot was in place for what we knew would be an
inlux of customers contacting us. This included enlisting help
from employees across the business, including our oices in
Delhi, to manage the increased number of calls. We made
calling to make a claim easy with online banners and
increased the number of employees on phones and webchat
to assist with questions from customers.
Similarly, in Gironde, southern Fance, we saw wildires cause
damage across the region. Our French Household business
quickly contacted customers afected by these ires and
made sure they were given quick access to alternative
accommodation in cases where they were displaced.
Our Business Model
The drivers of
our success
Our drivers of success are what
we believe makes us different
from our peers. They help us
maximise the value we create
for our stakeholders and stand
out as a go-to financial sevices
provider for our customers.
8 Relational NPS, methodology updated
in 2022
Admial Group plc Annual Repot and Accounts 2022
9
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Unique company culture
Over time, we’ve come to believe strongly that
creating a great place for our people to work goes
a long way towards building long-term commercial
success. We believe that Admial’s culture and the
four pillars of our culture, are the foundation for why
our people enjoy coming into work evey day and
why Admial is celebated as a great place to work.
Communication
We encouage a culture of open and tansparent
communication at all levels of the business. We ask
colleagues to give us their suggestions on how we can
improve, tell us how they are feeling, and the ways in
which we can help. Our Group CEO, Milena Mondini,
opeates an open-door policy and regularly engages
with colleagues through the ‘Ask Milena’ initiative.
This philosophy extends to our senior managers and
directors who also engage regularly with our colleagues
to keep them informed on what is happening in the
business and answer their questions.
Equality
We view all of our people as being equally impotant
to the business regardless of their position, gender,
or background. We strive to promote a sense of
fairness in eveything we do and to provide an
environment where eveyone has the oppotunity
to succeed. In paticular, we have multiple Diversity
and Inclusion working groups made up of employees
across the business. These working groups exist
to give a voice to all our colleagues and empower
them to play an active role in shaping our employee
propositions and policies.
Recognition and Reward
Admial’s share ownership scheme is a core foundation
of our culture and plays an impotant role in employee
recognition and reward. We believe that a company
works best if people feel like they own a pat of their
company, and so through the scheme, all employees
that have been with the company for more than a year
become shareholders in Admial.
Fun
If people ike what they do, they do it better. This manta
has been at the core of Admial’s culture since day one.
We encouage our colleagues to spend time together
and get to know each other. We dedicate resources
to our own Ministy of Fun (MOF). The MOF helps to
organise various events for people to paticipate in
and gives them something fun to look foward to.
2022 Highlights
• 86% of colleagues believe Admial is a great place
to work
9
• 88% of colleagues feel that management is
approachable and easy to talk to
10
• 96% of people feel that people are treated fairly
regardless of their ace
11
Read more in
Our Customers
on page 74
Top 10 returns!
Top 10 is Admial’s annual depatmental competition to
crown the best 10 depatments across the organisation.
Each year depatments are tasked with creating a video
or in-person show and answer a set of questions surrounding
a core theme.
In 2022 the theme was based on our purpose ‘Hep more
people look after their future. Always striving for better together’.
In paticular, depatments had to answer the following:
“How does your depatment represent and demonstate
Admial Group’s purpose statement?”. This year teams
were encouaged to be as creative as possible, and we had
submissions that went above and beyond and included
themes such as The Grinch, I’m a Celebrity Get Me Out of
Here, and Juassic Park.
The results ceremony was back in-person for the irst time
since 2019, giving a great oppotunity for colleagues to get
back together and celebate.
Our Business Model
The drivers of
our success
continued
9 Great Place to Work Suvey result
10 Great Place to Work Suvey result
11 Great Place to Work Suvey result
Admial Group plc Annual Repot and Accounts 2022
10
Company Oveview
Opeational Excellence
Good value inancial products
We take great pride in providing good value inancial
products and sevices that meet customer needs.
Through our existing products we actively work
to maximise the value of our core businesses and
with new products, seek to lay the foundations for
future growth.
Risk selection and data analytics
Our unique approach to risk selection is built upon
large amounts of claims experience, undewriting
skill, and increasingly, on insights from big data
and analytics. We take a data-driven approach in
eveything we do, and it is the foundation behind
our business decision-making.
Eicient claims management
Our eicient claims management is backed by a culture
of continuous improvement, proactive engagement,
decades of experience in claims handling, and great
customer sevice.
Financial discipline
Admial is focused on bottom line proitability
and building sustainable businesses in the long-
term. This focus guides decisions made across our
opeations. Our cost-conscious approach is strongly
embedded across the organisation given our
employees are also shareholders and this tanslates
to a competitive expense atio.
Eicient Capital Employment
Risk management
Admial shares a large propotion of risk with
co- and reinsuance patners. These patnerships
are underpinned by a long tack-record of strong
undewriting results. Sharing risk allows us to hold
less capital due to bearing less risk, giving a superior
return on capital for our shareholders whilst ensuring
protection for losses.
We include an assessment of the projected solvency
of the business as pat of the capital plan and
Own Risk and Solvency Assessment. This includes
consideation of principal risks facing the Group,
as well as consideation of emerging risks such as
climate change.
Strong shareholder returns
We are committed to returning excess capital to
shareholders. We believe that with limited cash,
management remains focused on the most impotant
aspects of the business. We don’t stave our business,
but neither do we provide them the luxuy of
excess capital.
Tack record of long-term, proitable growth
Test-and-learn approach
Admial has a strong culture of innovation and organic
growth. All our businesses have been built from the
ground up. We identify and understand oppotunities;
take measured steps to test our understanding of
the challenges and efectiveness of our solutions;
and learn from these experiences.
Prudent approach and reseving philosophy
Our tack record of success is in pat due to our
robust reseving approach, where we hold prudent
reseves which we release over time as we gain more
information on the development of claims or defaults
across our insuance and loans businesses respectively.
In addition, we continuously improve and build on our
key competitive advantages including cost eiciency,
risk selection, data analytics, digital capabilities and
claims management efectiveness.
Responsible and sustainable opeations
Cental to our approach towards long-term value
creation is our continued dedication to drive positive
outcomes for all our stakeholders. We appreciate
that our stakeholders’ needs evolve over time, and we
consciously adapt to remain a responsible, sustainable
business for the long-term.
2022 Highlights
• 50% Aveage combined atio over the past
ive years
12
• 47% of customers are now from non-UK
Motor businesses
• 180% Solvency Ratio
12 Weighted aveage
Admial Group plc Annual Repot and Accounts 2022
11
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Customers are at the heat
of our business. As a customer-
centric organisation, we seek
to create products that
provide more people with the
oppotunity to access good
financial sevices products.
The needs of our customers
shape the products we deliver,
and the ways in which we do so.
Value created in 2022
• We launched a new claims system
for our UK Motor customers
• We added our MultiCar proposition
to price comparison platforms
• We suppoted UK and French
Household customers impacted
by loods
• We continued to provide fair
and afordable products across
the Group
• We launched Admial Pet in the UK
We believe that people who
like what they do, do it better.
This attitude enables our test-
and-learn culture, opeational
excellence, happier and
more productive employees,
and ultimately better
outcomes for our customers
and stakeholders.
Value created in 2022
• We strengthened our reward
package for colleagues
• We upgaded our learning and
development platform
• We launched a new health and
wellbeing stategy focused on
mental health
• We improved the Group’s
recruitment onboarding platform
• Members of the Group Board
engaged with employees via the
Employee Consultation Group
Our patners and suppliers
are integal to us achieving our
stategic goals. They comprise
a mix of financial patners,
reinsuance patners,
IT hosting, distribution and
claims sevices patners.
We work hard to foster
strong relationships to
mitigate risks across our
businesses and to deliver
on our stategic ambitions.
Value created in 2022
• Admial Pioneer invested in
Wagonex, a subscription-based
platform for car manufacturers
• We formed new stategic
patnerships with industy-leading
suppliers across the UK
• We patnered with Ondo’s LeakBot
sevices to protect customers from
water leaks
Our Customers Our People Our Business:
Patners and Suppliers
Our Business Model
Creating value for
our stakeholders
We are dedicated to building
strong and sustainable
businesses that are focused
on achieving positive outcomes
for all our stakeholders.
Admial Group plc Annual Repot and Accounts 2022
12
Company Oveview
Shareholder engagement
is key to helping investors
understand Admial’s stategy
and investment case. It allows
us to explain our decisions and
ationale, whilst providing
oppotunities for shareholders
to give their feedback.
Value created in 2022
• Management actively engaged
with existing shareholders and
potential investors
• We organised a shareholder
and analyst education session
to help them navigate the
introduction of the new IFRS17
accounting standard
• The Group Chair and Senior
Independent Director held
corpoate governance meetings
with key shareholders
A culture of giving and a
sense of responsibility for
the community is shared
across the whole Group.
Our employees play a key
role in how we engage with
our communities, and we
work collectively to drive
long-term change both inside
and outside the Group.
Value created in 2022
• We launched a new Community
Stategy focused on getting more
people into sustainable work
• We introduced a new Global
Emergency Fund to suppot
communities across the globe
• We suppoted over 200
organisations via our long-standing
community match fund
• We worked with seveal charities
to provide employees with access
to volunteer initiatives
Admial is mindful that it
is increasingly impotant
to demonstate responsible
business behaviour with
regards to the environment,
not just because our
stakeholders demand it,
but also because it is the
right thing to do.
Value created in 2022
• We launched a climate positive
employee engagement progamme
• We funded the planting and
monitoring of over 30,000 trees
in Kenya
• We patnered with Carbon
Intelligence to suppot us in our
net zero ambitions
• We installed electric vehicle
charging points in our oices
• We fully ofset our carbon emissions
via the purchase of Gold Standard
carbon credits
Read more about how we engage with and
create value for stakeholders, on page 68
Our Business:
Shareholders
Our Society:
Communities
Our Society:
Environment
Admial Group plc Annual Repot and Accounts 2022
13
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Contents
16 Chair’s Statement
20 Chief Executive Statement
24 Q&A with Milena, Geaint, Cristina
and Costantino
28 Our Stategy
38 Our Sustainability Approach
40 Key Peformance Indicators
41 2022 Awards
42 Group Chief Financial Officers Review
48 UK Insuance review
56 International Insuance review
61 Admial Money review
63 Other Group Items
64 Group capital structure and financial position
68 Creating Sustainable Value for
our Stakeholders
95 Streamline Energy and Carbon Repoting
97 Task Force on Climate-related
Financial Disclosures
112 Section 172 statement
113 Non-financial information statement
114 Principal Risks and Uncetainties
122 Viability Statement
Stategic
Repot
It’s the little things that add up
We recently had a customer, Mr Doyle, who called to renew
his van insuance. During the call, he chatted to Leeanne,
our Customer Loyalty agent, about his love of dogs and
what he’d like to use the van for.
Connect to Customer is a goodwill initiative that enables
Customer Loyalty colleagues to send gifts or cards,
after inteactions with customers. Thanks to Leeanne’s
thoughtful suggestion, they sent a parcel of dog treats
and toys to our customer Mr Doyle, who quickly took to
LinkedIn to sing her paises.
“Mr Doyle explained he’d lost his family dog Jessie and that
he calls his van ‘the Jessie van’. He went on to say that if he
ever won the lottey, his dream would be to have a rescue
centre where he would employ people to cuddle the dogs
and give them the love they deseve. That made the hair
on my arms stand up, I knew I had to do a little something.
That’s when I decided to email our Connect to Customer
team with a message asking to send Mr Doyle blankets,
treats and some toys for the animals he would rescue.
He was so passionate about helping less fotunate dogs,
he was vey genuine and a lovely man to speak with.”
Adding value.
Delivering
difference.
For our customers
Admial Group plc Annual Repot and Accounts 2022
14
Stategic Repot
Admial Money sponsors
Fintech Wales progamme
The Foundy, FinTech Wales’ 12-week intensive acceleator
progamme, provides world-class mentorship and suppot
to help incubate, acceleate, and scale stat-up organisations
within the Welsh ecosystem and beyond.
In 2022, Admial Money was a proud co-sponsor to
‘season 2’ of the Foundy progamme which focussed
on successfully validating, fundaising and scaling a new
venture. Admial Money also worked sepaately with seveal
of the stat-ups involved, and a number of the unsuccessful
applicants, to identify areas of potential collaboation
and suppot.
Admial Group plc Annual Repot and Accounts 2022
15
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Annette Cout
Group Chair
“ We continue to
believe that if people
like what they do,
they do it better.”
Adding value.
Delivering
difference.
Chair’s Statement
Admial Group plc Annual Repot and Accounts 2022
16
Stategic Repot
I am honoured to be leading the Board
of Admial as the Group enters its 30th
year – happy bithday Admial!
As previously announced, I will step down as Chair at
the AGM in April 2023 having seved 11 years on the
Board, with six of those as Chair. I leave with a mix of
pride and deep fondness for this vey special company
which I believe remains one of the FTSE 100’s best
kept secrets.
This year has, once again, been challenging for the
sector due to the macro-economic environment.
The Ukainian-Russian war impacted energy costs,
high inlation led to higher claims costs and, in the UK,
the market adjusted to the FCA’s pricing reforms.
As a result, Admial has repoted lower Group proit
of £469 million with turnover of £3.68 billion. This is
driven by UK Motor insuance proitability. Admial has
led the market in taking strong pricing action to
combat claims cost inlation and continues to focus
on long-term value creation.
Despite the challenging backdrop, our customer
numbers are up 11% to 9.28 million and our solvency
remains strong at 180%. The UK Motor insuance
marketplace is cyclical and we believe we are now
close to the bottom of this cycle. Admial has a proven
tack record of quickly adapting to navigate the
cycle and remains focused on continuously evolving
its existing competences while creating sustainable
businesses for the future.
Looking back
Admial is a special business with a distinctive culture.
Our purpose – To help more people to look after their
future. Always striving for better together – underpins
eveything we do and ensures that we strive to do the
right thing in consideation of all our stakeholders.
I am immensely proud to have been pat of Admial’s
success stoy. It has been a hugely enjoyable and
rewarding experience.
During my time on the Board I have experienced the
tansition of CEOs from Heny to David, and then to
Milena – all have strong entrepreneurial leadership
skills, passion for the Admial culture, and a focus
on building on our competitive advantages whilst
evolving the stategy within the emerging landscape.
I’m often asked what has been key to Admial’s success
and, essentially, I believe it’s a lot of small things that
have never changed and make a big diference:
• Delivering for our customers – Admial remains
focused on ‘the customer, the customer,
the customer’ and during my time on the Board,
customer numbers have grown from 3.6 million
in 2012 to 9.3 million in 2022 – a testament to
our customer-centric approach
• Admial’s relentless focus on the fundamentals of
risk selection, pricing discipline, claims efectiveness
and expense eiciency underpinned by a healthy
obsession with data and analysis and a low-
risk approach
• Admial’s agility, innovation and culture of
continuous improvement through a test-and-learn
approach has ensured that it creates products and
sevices that truly meet customers’ evolving needs.
After all, it was Admial that launched the irst
car insuance comparison site, the irst 10-month
policy, and acceleated the adoption of multicar
and multicover
• Admial’s commitment to doing the right thing and
strong conviction and ethical foundation means it’s
perhaps unsurprising that we were the only insurer
in the UK to issue a £110 million Stay-At-Home
refund for UK customers during the Covid pandemic
and we established a £6 million Covid Fund to
suppot impacted communities
• Admial’s culture – this drives all of the above.
We believe that ‘people who like what they do,
do it better’. We are always looking for new ways to
add value and have consistently been recognised
as a great place to work for over 11,000 colleagues.
A key foundation stone of Admial that has been
continuously reinforced as the company has grown
is that eveyone matters regardless of their role.
This is demonstated by the fact that all colleagues
receive shares
13
in the company evey year
Evolution
Although elements remain constant, Admial continues
to grow and evolve, with a key pillar of the stategy
being diversiication. We are making great progress in
most opeations, and have now built, amongst others:
• A signiicant UK household business
which is growing strongly and now seves
1.6 million customers
• Admial Money, our UK loans business has achieved
a small proit in its ifth year and is taking a suitably
prudent approach to increasing its book
• Sizeable and growing businesses in Europe
• Admial Pioneer, a business that builds on our
taditional test-and-learn approach to focus on
diversiication through new business areas
• A business in the US, which is a challenging market,
and for which we are considering options
Almost half of our customers are now from non-UK
Motor insuance business.
Dividend
Our proposed inal dividend of 52.0 pence per share
brings dividends for the year to 112.0 pence per share,
a full-year pay-out of 90% against a backdrop of after-
tax proits (from continuing opeations) 36% lower
than last year. The inal dividend of 52.0 pence per
share comprises a normal dividend of 37.5 pence per
share and a special dividend of 14.5 pence per share.
The Group has delivered a Total Shareholder Return
(TSR) of 259% over the last 10 years (as illustated in
the chat on page 206).
13 Employees paticipate in the Approved Share Incentive Plan (SIP) after
completing a minimum of 12 months’ sevice
Admial Group plc Annual Repot and Accounts 2022
17
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
People
Once again Admial was recognised as a Great Place
to Work in 2022, including being awarded 19th best
workplace in Europe and fouth best workplace in the
UK. We also received an award for being in the Best
Companies list for 20 consecutive years and received
awards for diversity and wellbeing. These accolades
help to position us as a destination employer which
is crucial in the current competitive market for talent.
Having our people as shareholders remains a
distinctive element of Admial’s incentive schemes.
These are designed to ensure that decisions suppot
long-term value growth, that the right behaviours are
rewarded and that our people’s interests are aligned
with those of shareholders. We believe that, over the
long-term, share price appreciation depends on
delivering great outcomes for our customers.
(Futher details can be found in the Remuneation
Committee repot on page 183).
Customers
Admial’s purpose is to help people to look after their
future and the business has really lived by its purpose
during the year, ensuring that Admial has been there
for its customers when they need us most.
The UK business has invested in technology that
reduces the time it takes to settle motor claims –
hopefully removing a pain-point during what can
be a stressful time for customers.
In response to the cost-of-living crisis, our teams have
looked at ways to help and suppot insuance and
loans customers who are inancially vulneable.
2022 saw extreme weather from lash loods to forest
ires and a freeze event. Admial colleagues chose
to take a proactive approach, identifying customers
in the impacted areas and contacting them to
understand how we could suppot them. These are
just a few examples of the little things that the
business does that can make a big diference for
customers, and that make me proud to be a pat
of Admial.
Chair’s Statement
continued
The Board in 2022
The Board recognises the need for a strong corpoate
governance famework and suppoting processes
across the Group and believes that good governance,
with the tone set from the top, is a key factor in
delivering sustainable business peformance and
creating value for all the Group’s stakeholders.
The Board has been able to resume meeting in person
this year as well as visits to colleagues overseas.
I have visited our overseas locations along with one
or more fellow non-executive directors (NEDs) and
we also attended Employee Consultation Group
(ECG) meetings. These allowed us to keep contact
with our people and directly hear their views and
the challenges they face. The Admial culture still
shines through.
Jean Park stepped down in Januay 2023 after having
seved nine years on the Board and chairing the Group
Risk Committee. She has also been a member of
the Remuneation and Nomination and Governance
Committees and acted as the Senior Independent
Director. We will miss her unstinting suppot and wise
counsel. I would like to thank her on behalf of the
whole Board for her huge contribution.
Read more
in our
Governance
repot on
page 136
“ Once again Admiral
was recognised
as a Great Place
to Work in 2022.”
Annette Cout
Group Chair
Admial Group plc Annual Repot and Accounts 2022
18
Stategic Repot
Our focus areas for the Board remain to:
• Continue to build on the remarkably special
Admial culture and in so doing putting our people,
customers and wider impact on the community at
the heat of what we do
• Continue our long-term tajectoy of growth,
proitability and innovation
• Invest in the development and growth of our people
• Ensure excellent governance and the
highest standards
• Focus on all aspects of ESG
Our role in Society – doing the right thing
Admial takes its role in society vey seriously and has
an active approach to Corpoate Responsibility which
focuses on all our stakeholders and the wider impact
we have (more information in the Sustainability Repot
on the Admial website). We are proud to be Wales’
only FTSE 100 headquatered company. We employ
over 8,000 people in South Wales and our people play
an active pat in the communities in which we opeate.
We carefully consider our impact on the community
and environment, including factors such as the green
credentials of our buildings, aising funds for multiple
charities, and the impact of climate change across
the business.
As previously announced, the Group’s ambition is
to be net zero by 2040 and to be net zero across
our opeations for scope 1 and 2 emissions by 2030.
The business veriies its carbon emissions for our
current opeations using a third paty and these were
subsequently ofset to become carbon neutal. We will
apply for approval of our Science Based Targets in
2023. Our aim is to be an economically strong and
responsible business over the long-term, guided by
a clear purpose, to make a positive and signiicant
impact not just on our customers and our people,
but on the economy and society.
New Chair
I am delighted that Mike Rogers will take on the role
of the new Chair of Admial. He has a great tack
record and signiicant experience which will beneit
Admial in its next exciting phase of evolution –
and demonstates a great understanding of the
Group’s culture.
I am conident that the current Board and new Chair
are well-equipped with the skills and knowledge to
continue to build and strengthen Admial and build a
sustainable business in the long-term while retaining
Admial’s distinctive culture.
Annette Cout
Group Chair
7 March 2023
A goodbye and thank you
from Annette Cout
I have thoroughly enjoyed evey
year I have been pat of Admial.
I am gateful to our shareholders
for their suppot as I stayed on
as Chair to ensure a successful
tansition to Milena as Group CEO.
I would like to thank Admial’s customers for
putting their trust in us and our colleagues for
their dedication in ensuring that we are there
for customers when they need us most.
I wish Mike, Milena and the whole leadership
team evey success for the future and I will be
cheering Admial on from the side lines.
I feel privileged to have been pat of this special
company. Thank you for your suppot.
Annette
Admial Group plc Annual Repot and Accounts 2022
19
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Adding value.
Delivering
difference.
Milena
Mondini
de Focatiis
Chief Executive
Officer
“ It’s the little things
we do every day
that combine to
add value for all
our stakeholders.“
Chief Executive Officer’s Statement
Admial Group plc Annual Repot and Accounts 2022
20
Stategic Repot
2022 was another year of navigating
stormy waters and, once again,
we’ve adapted well and shown
ourselves to be disciplined and agile
as we increased our customer base
by 11% to 9.28 million while delivering
profits of £469 million.
14
We’ve not been immune to the changes in external
conditions including the implementation of the
FCA’s pricing reforms, increased claims frequency
post Covid, supply chain challenges, adverse weather
and high levels of inlation which had a vey big
impact on our business, paticularly on the cost of
claims. At times, over the last 12 months, it has felt
similar to sailing in the middle of a storm: knowing
the desired destination but with the challenge of
recognising when to steer into the winds that ty to
blow us of course – whilst never losing focus on where
we’re going.
The cyclical nature of insuance is not new. We were
quicker than most to react to the changing market
conditions and implemented price increases ahead
of others in response to higher inlation. Although the
premium increases impacted our ate of growth in
the shot term, we continued prioritising sustainable
growth over chasing unproitable volumes.
This discipline resulted, for our insuance business
in the UK, in delivering a proit of £616 million,
above 2019 pre-pandemic levels and it will put us
on a strong footing for when the cycle turns.
The international markets were also under pressure
with vey low market aveage premiums in Italy
and Spain. The US experienced more adverse
market conditions than others. Although Elephant
quickly put in place aggressive remedies, such as
premium increases in excess of 25% in 2022 and a
dastic reduction in advetising spend, the business
registered a disappointingly high loss of £49 million
15
.
Elephant remains an eicient opeation with a strong
team delivering great sevice to its customers –
who voted it one of the Best insuance companies
in US among over 3,300 bands. We are continuing
to assess the options for Elephant to reach its full
potential in such a huge market.
Despite the headwinds, we were deinitely not
blown of course in 2022. To the contay, we made
substantial progress against our long-term objectives
and continued to deliver on new initiatives that will
help us to emerge from this period stronger than
ever before. We’re developing new capabilities,
especially in data and technology, to enhance our
customer experience. For example, we launched a
new claims management system which will reduce
settlement time for many UK motor customers and
have established a Data Academy to acceleate our
evolution into an even more digital-irst and data
driven organisation.
Our Stategy
for 2023
The evolution
of Motor
The way that people
move around is changing
and Admial’s third pillar
focuses on evolving
our proposition to
meet those demands.
Admial stays close to
emerging trends and
continues to apply
its test and learn
philosophy to futher
develop competencies.
Acceleate evolution
towards Admial 2.0
Our priority is to acceleate
the evolution of our business
towards Admial 2.0, an
organisation that builds
and uses historical strengths
but is even more agile.
Whilst we continue to put
the customer first, we aim
to focus on our technology
and data to do so.
Product diversification
Our Group-wide approach
is focused on increasing
business resilience and
adapting to the evolving
needs and expectations
of our customers.
See page 28 See page 34
See page 31
14 Group proit – 2022: £469 million; 2021: £769 million, excluding restructure
costs, 2019: £505.1 million
15 Elephant loss – 2022: £48.9 million loss; 2021: £13.0 million
Admial Group plc Annual Repot and Accounts 2022
21
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Chief Executive Officer’s Statement
continued
We believe that our diversiication stategy is key to
increasing our resilience over the long-term, as well as
to improving the engagement and experience for our
customers, and by leveaging our strengths, we will
deliver more value to our shareholders. Over the
past year, Admial Money, our UK Loans business,
delivered its irst proit in its ifth year, we launched
Pet insuance and we developed new patnerships
and distribution channels in international insuance.
In the UK speciically we are experiencing strong
customer growth in the Household, Loans and Tavel
businesses that increased their turnover by 31% to
£350 million combined in 2022. We now also count
two million customers across our international
businesses, up by 13%.
We are aware that this has been a challenging year
also for our customers and our people and looking
after them is our core purpose. We continue to do
our best to suppot customers and we have a team
dedicated to suppoting those more inancially
vulneable ones. For our colleagues, we’ve responded
by reviewing and making permanent adjustments to
colleagues’ salaries as needed and providing a ange
of additional beneits and suppot.
We always talk about the team, the team, the team
because our ability to deliver is due to our all-hands-on
deck approach. We now have over 11,000 colleagues
whose dedication and hard work make this all possible
and I’m always so proud to see the team’s efots
recognised externally. This year we’ve received a ange
of awards across all our businesses and geogaphies.
We continue to ank as one of the Best Multinational
Workplaces for the 20th consecutive year by the
Great Place to Work Institute and were named a
Diversity Leader by the Financial Times.
Having a positive impact on our wider society is also
cental to our ethos. We are progressing well with
our net zero goal and reduced our scope 1 and 2
emissions
16
by 32% year on year. We refocussed a large
pat of our efot to sustain the communities in which
we opeate on the theme of “employability” which
aligns closely with our purpose to “help more people
to look after their future”. We feel lucky to be pat of
the Admial family that is such a great place to work,
and we would like to contribute to make the world a
good place to work for more people.
1 Group proit before tax, Earnings per share, Group turnover,
Group net revenue and Return on equity are presented on
a continuing opeations basis
2 Group proit before tax, Earnings per share and Return
on equity exclude the impact of one-of restructure costs
in 2021 totalling £55.5 million
3 Alternative Peformance Measures – see page 306
£469.0m
£769.0m*
£608.0m
2022
2021
2020
Groups profit before tax
1,2,3
£469.0m
*£713m including restructure costs
124.3p
212.2p
170.7p
2022
2021
2020
EPS
1,2,3
(pence)
124.3p
16 Location based emissions
Admial Group plc Annual Repot and Accounts 2022
22
Stategic Repot
Speaking about the Admial family, I am vey sad
to say goodbye to Annette Cout who has been
our Board Chair since 2017. I’ll always be personally
gateful to Annette for the invaluable help in the
tansition between David and myself, and for her wise
counsel and warm suppot at evey step of my Admial
journey. And, on behalf of all my colleagues, I would like
to thank Annette for her consideable contribution to
the Board, her strong commitment to Admial and its
people, and the guidance and suppot she has always
generously ofered to the wider management team
over the last 11 years, while embedding the Admial
culture at her vey heat. I wish Annette all the best
for her future.
I look foward to working with Mike Rogers over the
coming years as incoming Chair and I’m conident his
breadth of experience in inancial sevices and beyond
will add great value to Admial.
Finally, I would really like to thank all my colleagues
across the Group for their hard work over the last
year. I look foward to working together in 2023 –
and crucially celebating Admial’s 30th bithday.
This is a great oppotunity for us to relect on the
amazing journey the Group has been on over the
last three decades and the strong foundations we
laid out for the next 30 years of growth.
Milena Mondini de Focatiis
Group Chief Executive Officer
7 March 2023
“ I would like to
thank all my
colleagues across
the Group for their
hard work over the
past year.”
Milena Mondini de Focatiis
Chief Executive Officer
Admial Group plc Annual Repot and Accounts 2022
23
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Q: Milena, how would you describe the market
environment in 2022?
A: This year has seen its share of challenges both
for Admial and the industy. We stated the year
with Omicron and soon after learned of the events
in Ukaine. Globally, macroeconomic conditions
worsened and we experienced some of the highest
inlation in decades. In Motor, we’d already seen higher
costs of replacing cars and repairs due to lockdowns,
but now saw increased pressure from higher energy
and labour costs.
Low claims frequency, a prominent feature of the
market in 2020 and 2021, slowly moved upwards
as economies reopened – though still remaining
below pre-pandemic levels. As we exit 2022 and
move into 2023, there are some early positive signs.
Some elements of inlation look to be normalising
such as used car prices, and are hopeful that supply
chain pressures will ease in 2023 – but there are
also elements ofsetting this, so signiicant levels
of uncetainty remain.
Q: Cristina, building on Milena’s comments,
what have been the key challenges the UK
personal lines market faced this year?
A: 2022 was marked by both signiicant regulatoy
change, namely the Geneal Insuance Pricing
Pactices reform, and heightened inlationay pressure.
With regards to the pricing reform, the market shift
we saw in early 2022, when it irst came into force,
was in line with our expectations. New business prices
increased at the beginning of the year and retention
also increased across the market as fewer people were
incentivised to shop around.
On inlation, the macroeconomic conditions are really
what are driving the conversation and I think most of
our peers would agree that we’ve never spent so much
time talking about claims inlation! Here the stoy
in 2022 continued to be around accidental damage,
driven largely by used car price inlation, and the
impact of higher energy costs and supply chain
disruption. For Household insuance, macro challenges
also led to higher inlation in the market, which were
then compounded by severe weather conditions
causing storms, subsidence and freezes.
Q&A with Milena, Geaint,
Cristina and Costantino
“It’s a volatile
market, but we’re
well-positioned
to succeed.”
Adding value.
Delivering
difference.
Milena
Mondini de
Focatiis
Chief Executive
Officer
Admial Group plc Annual Repot and Accounts 2022
24
Stategic Repot
Q: Turning to our international markets,
Costantino, what did the picture look like in
2022 for the European and US opeations?
A: I’m at risk of sounding like a broken record
here, but the fact is that the inlationay pressure
experienced by the UK was to a large degree also
seen in Europe and the US – albeit a bit lagged in
some markets with larger impacts in the second
half of the year. Claims frequency is still tacking
below pre Covid levels in Europe despite economies
reopening. The European markets have also
experienced strong competition over the last few
years, with paticular premium pressure in Italy and
Spain and hence lower aveage premiums despite
claims costs increasing.
This trend of persistent claims inlation was
even more prominent in the US where it led to
disappointing loss peformance for Elephant and
the market as a whole – with claims costs impacted
by various factors including high labour costs,
increases in repair times and higher credit hire
costs. So, in a nutshell, we saw challenging market
conditions oveall. That said, we’ve increased ates
by double digits in all of these markets. And we’ve
taken the oppotunity to build on the fundamentals
of the business. In Europe, we continued to invest
in growth towards achieving scale which we think
is the right decision for the long-term sustainability
and proitability of these businesses. On the contay,
in the US we slowed growth in the second half given
the challenging market conditions and took strong
action including strong base ate increases, narrowing
our footprint to focus on higher peforming segments
and focusing on a customer base of higher lifetime
value. So, we’re keeping focused on the fundamentals
and taking action where needed, to continue to build
sustainable businesses.
Read more
in our
Governance
repot on
page 136
Q: Milena, looking at cyclicality in the
industy – how do you think about it
and what’s changed in recent years?
A: Looking at the last few years, there have clearly
been much shoter cycles than in the past. This was
initially driven by the impact of Ogden, but more
recently due to the Covid pandemic, followed by
the macroeconomic uncetainty and high inlation
mentioned earlier. Whilst it is diicult to predict
how the cycle will look in the future, cyclicality will
continue to be impacted by inlation and existing
macroeconomic uncetainty. Admial has a long-
standing tack record of managing the cycle well.
Our approach has continued to be that of focus and
discipline, which means at times we will prioritise
proitability over growth. This sometimes requires
shot term tade-ofs, and we have this done more
recently within the context of high claims inlation.
However, these decisions are always made in the
context of continuing to focus on building sustainable
and proitable businesses in the long-term. We are
strengthening our core businesses but also looking
at a multitude of diversiication oppotunities for
the future.
Geaint Jones
Group Chief
Financial Officer
Admial Group plc Annual Repot and Accounts 2022
25
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Q: Geaint, what is your current dividend
policy, and do you foresee any changes
in the policy or pay-out atio?
A: There’s been no change in our approach to setting
dividends. Our formal dividend policy is to pay 65%
of post-tax proit as a normal dividend and then pay
a special dividend on top, comprising capital we don’t
need to retain for solvency requirements and bufers.
Our aveage pay-out atio over the past few years
is around 90% and changes in dividend period on
period tend to be broadly in line with changes in post-
tax proit. As we see things today, we don’t expect
changes in the level of pay-out moving foward.
The solvency atio is the main constaint and we’re
comfotable with the post-dividend atio of 180%.
Q: Milena, are you comfotable with the
way that hybrid ways of working are
embedded across the business – and within
this new environment how do you maintain
Admial’s culture?
A: Hybrid working has changed the way we work,
but it doesn’t change the foundations of our culture.
Admial continues to be all about ‘the team, the team,
the team’. We continue to encouage people to work
together and challenge them – whether in an oice
or online – to drive better outcomes for the business.
It has also been rewarding to see that our engagement
scores have remained at or above pre-pandemic
levels and our Great Place to Work ankings continue
to be industy leading. We were anked in the Top
20 best places to work in Europe and 4th in the UK.
These awards are a testament to a strong culture
that’s deeply embedded within the organisation.
Q: Cristina, how has the household book
peformed and how have the difficult
weather conditions that you mentioned
above impacted the book?
A: Weather events are a feature of household
insuance, with severe events geneally occurring
evey few years. 2022 was one of those years.
The winter in 2022 saw some weather leading to
higher storm and freeze claims, together with a
wondefully warm summer which unfotunately
also led to elevated subsidence costs. This severe
weather, combined with inlationay pressures,
negatively impacted the household result by £32m,
leading to a loss of £6 million.
Although a challenging year, the household book
grew by almost 20% and we continue to enhance
our pricing and data analytics and to drive claims
eiciencies which showed through in futher
improvements in our attritional loss atios. We also
celebated the business’ 10-year anniversay –
Happy bithday to the Household Team! Whilst
still a relatively young book we have a strong and
experienced management team who’ve successfully
grown our household proposition to deliver great
sevice to 1.6m customers. I am excited to see what
the next 10 years has in store for Household!
Read more on
page 54
Q&A with Milena, Geaint,
Cristina and Costantino
continued
Cristina
Nestares
CEO,
UK Insuance
Admial Group plc Annual Repot and Accounts 2022
26
Stategic Repot
Q: Costantino, Elephant in the US experienced
a challenging year, can you provide an update
on the peformance and outlook?
A: 2022 was a diicult year for Elephant, with vey
strong claims inlation leading to a disappointing
result for the business. The team continued to focus
on strengthening fundamentals – we increased base
ates by double digits, slowed growth, narrowed our
footprint and strengthened risk selection and pricing.
In addition, we strongly reduced our cost base
through cutting acquisition and advetising costs,
and continued to shift the business towards more
eicient distribution channels. We’re continuing
to look for ways to improve and we are considering
options for the future of the business.
Although a challenging year, I’d like to thank the
strong and committed team at Elephant who have
been working vey hard to seve our customers within
a challenging period. Elephant was recognised for
this in 2022 by making the Forbes list of America’s
Best Insuance Companies. This award is voted for
by customers and only 35 carriers were selected out
of a list of over 3,000. Amazing to see!
Q: Milena, 2022 has been a difficult year not
just for businesses but for many communities
around the world, can you share more about
what Admial’s done to help?
A: We have a long-standing approach at Admial
of making sure we have a positive impact on our
communities. 2022 was no diferent. To suppot
communities impacted by storms and loods we set
up a new Global Emergency Fund. The fund is focused
on making donations that target those in need quickly.
In 2022, we suppoted the Welsh Refugee Council
to help refugees secure employment in the county,
we suppoted the British Red Cross relief efots in
Pakistan and donated to communities impacted by
Hurricane Fiona in Canada.
Under our new Together for Better Community
Stategy we’ve also begun working with
organisations like Geneation. These organisations
strive to tansform the education system into
an employment system. We are looking to
pilot progammes in India and Italy, suppoting
paticipants get sustainable jobs across the
technology, sevices, and healthcare sectors.
Our selected patnerships will see us help more
people to achieve their full potential and secure
fulilling and sustainable employment regardless
of background or location, from helping women
in tech, talented young people, adults with
additional learning needs and those futhest
away from the labour market.
Read more on
page 46
Q: Geaint, given the difficult conditions
in 2022 – how has the Group peformed
and what can we expect going foward?
A: As Milena highlighted, 2022 was deinitely
a challenging year. However, all in all, the Group
produced a pretty pleasing set of results.
We unsurprisingly see a reasonable drop in Group
proit when we compare against 2021 and 2020,
though it’s impotant to remember that both those
years beneited from exceptional circumstances
given the impact of the pandemic on claims costs
and proitability. In 2022, we experienced the unwind
of the positive covid related impacts, higher claims
inlation and bad weather.
We expect that 2022 was the worse point of the
cycle and that 2023 should improve following actions,
including signiicant price increases. Early signs
in Europe are positive and we project improving
loss atios as well as continued growth. In the US,
we’ve taken some pretty dastic actions to improve
the bottom line, whilst businesses such as Admial
Money and Pioneer continue to grow and develop.
Admial Money in paticular is showing pleasing
progress, repoting its irst (of many!) proit in 2022
despite the diicult backdrop.
Costantino
Moretti
CEO,
International
Insuance
Admial Group plc Annual Repot and Accounts 2022
27
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Scaled Agile
• Following the successful implementation of Scaled
Agile in ConTe last year, our Spanish opeation
followed suit in 2022. Teams across both businesses
worked together to embed Scaled Agile principles
in Seguros and to build on the learnings from ConTe
in the previous year. This teamwork has allowed a
smooth agile tansition within the business, which
helps with delivering projects to the market quickly
Customer Centric Innovation
• Great customer sevice is a core strength of
our business. We are continuously seeking
improvements on the digitalisation of customer
journeys and app adoption
• We’ve added a new Claims Total Loss Process inside
MyAccount, enabling customers to manage total
vehicle loss claims online
• We’ve enabled customers to adjust their policy
tiers and ancillaries online during any point of their
policy period
• We’ve added single sign on with our app and
MyAccount, reducing the time it takes customers
to sign into their potal
Smat Working
• We have fully adopted hybrid working across our
opeations – new town hall spaces have been
built to host depatment and team engagement
events which keep colleagues up to date on
depatment-wide news and celebate team and
individual successes
Data and advanced analytics
• Initial steps to deploying Admial’s UK Next
Geneation Architecture have been taken. This is
a set of foundational technologies that allows
Admial to bring an improved customer experience
and broader product oferings to our customers.
This will help suppot faster deployment of new
products and sevices, an enhanced web and mobile
platform to improve customer self-sevice, and the
ability to provide a single view of the customer to
both agents and our patners
Oveview
Our aim is to acceleate the evolution of our
core businesses toward what we call Admial
2.0, an organisation that leveages on Admial’s
historical strengths whilst being even more agile
and technology focused. This includes embacing
smater ways of working and attacting new talent.
But, above all else, it is a company that continues
to put the customer irst and that leveages on
data and advanced analytics to constantly improve
their experience.
Core Competencies:
• Digital First
• Scaled Agile
• Customer-Centric Innovation
• Smat Working
• Data and advanced analytics
Progress in 2022
Digital irst
• We’ve continued to simplify our technology estate,
removing legacy systems and improving our oveall
opeational resilience
• We’ve integated a new claims management system
in our UK Motor function – building a more eicient
and convenient system for our customers. As a result
of these changes we are already seeing greater digital
adoption through increased ate of use
• We’ve enhanced our ating capability by
implementing new machine learning techniques over
the past few years. These models have improved our
risk predictions as well as faud detection capabilities.
Similar approaches are being adopted in other pats
of the business, ensuring our customers continue to
receive fair and competitive prices
• Internationally our US band Elephant has
strengthened their digital claims journey to increase
the speed of claims resolution. Over two-thirds of
new claims now stat on the Elephant app
1. Acceleating
towards Admial 2.0
Our Stategy
Relevant Principal Risks and Uncetainties
Read more on
page 114
A B C D E F G H I J K
Admial Group plc Annual Repot and Accounts 2022
28
Stategic Repot
Admial 2.0 case study:
Progamme NEO
We’re excited to announce that our new
claims management system, Guidewire Claim
Centre (GWCC), has gone live across our UK
Motor function. This is a great achievement
and a testament to the commitment
from our Progamme Neo team.
Having used our previous claims system for 20 years, our
new claims system will tansform the way our claims are
managed. The Guidewire Claim Centre is more eicient,
it ofers better data insight, and it will enrich our customer
experience. Customers now have a truly digital experience,
giving them more choice and lexibility on how they
inteact with us. GWCC will also improve our communication
with both customers and suppliers and give us greater
ability for futher integation in the future.
We irst went live with the system in Household Claims
in August 2021, allowing us to learn and improve on a
smaller subset of our oveall UK claims. We then took
those learnings on board when launching with our much
larger product, UK Motor insuance. We went live with
the Motor system in August 2022.
Claims employees have been receiving taining on the
new system and are already enjoying its beneits. We have
received lots of positive feedback already on how quick,
eicient, and simple the system is. Likewise, feedback
from customers has been just as positive. Customers have
shared how simple the digital low is and how clear it is to
navigate in addition to the ease with which their claim can
be managed fully online, meaning they don’t have to call in,
giving them more lexibility and time.
“I am so excited to get to this position!
It is the culmination of so much hard work
across the Programme and the department,
and the feedback from our employees
who have been through training has been
unbelievable. Thank you and well done to
everyone involved. Going live is just the
start, roll out will take some time and we
look forward to all the future improvements
for our customers, employees and results
that this launch will inspire.”
Lorna Connelly
Head of UK Motor Claims
Admial Group plc Annual Repot and Accounts 2022
29
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Digital improvements in Italy
Digitalisation, agility, quality and security are
the pillars of ConTe’s customer-centric approach.
Digitalisation, agility, quality and security are the pillars
of ConTe’s customer-centric approach. Striving to put our
customers at the centre of what we do, in 2022 ConTe made
seveal improvements. For digital users, ConTe acceleated the
digitalisation journey, with now over half of our customers’
tansactions being peformed online. We continued their
adoption of Scaled Agile, with the focus on executing more
and constantly delivering value to the customers.
During 2022, we made good strides towards claims
digitalisation. Customers can now self-repot a claim
autonomously through their personalised area on the website.
In addition to this they can use the app to upload pictures of
the damage and state their preference of how they would like
to repair the vehicle. Streamlining this process has resulted
in great customer feedback, with a 4.8/5 ating on web app
usability, and signiicantly increasing the use of digital channels.
Data Academies
This summer we launched a new Data
Academy in the UK to provide first class data
taining for our colleagues.
To that end, over 700 employees across UK insuance,
Pioneer, Admial Money and Admial Law have been brought
together in a single Data Community. They can access
monthly newsletters, lunch and learns, taining sessions
and development progammes. We are also collaboating
with the EU Analytics Academy to suppot and develop our
data professionals and share our learnings across the Group.
In September 2022, we patnered with Women in Data to
show our investment in increasing diversity across data
roles as well.
Since the launch of the Data Academy, over 300 people have
attended an event or taining session and there have been
over 1,000 newsletter reads. At the heat of the Admial 2.0
stategy is data, and the Data Academy is also rolling out
an ambitious ‘Data Skills’ taining pathway to the business
to increase their data conidence and skills and help people
make better data driven decisions.
Our Stategy
1. Acceleating towards Admial 2.0
continued
Admial Group plc Annual Repot and Accounts 2022
30
Stategic Repot
Progress in 2022
Scale up promising products
• Within the UK, we have seen sustained growth in
Household and Tavel, and good progress on our
new Pet proposition
• We’ve brought in additional expetise in Household
and strengthened our supplier network. We’ve also
leveaged our new claims management system to
improve customer pricing
• Post-pandemic, the tavel market has strongly
bounced back. We’ve grown our opeations to
suppot higher demand and continue to meet
customer needs
Strengthen Customer Proposition
• We now ofer a new product to customers in the
UK – Pet insuance. The product is available to
customers online and via price comparison websites
• Toolbox by Admial launched a commercial
insuance MVP in 2021 by ofering lexible, easy-to-
buy tool insuance direct to UK tadespeople.
In 2022, Toolbox extended its product ange to
include other core business insuances (e.g. public
& employers liability) and began to test possible
future routes to scale
• We launched our MultiCar proposition on price
comparison, helping expand the reach of our
popular customer insuance
Leveage Core Strengths
• Since 2017, Admial has built a prime loan book and
become a meaningful paticipant in the UK personal
lending market. To date, we’ve issued over 250,000
loans to customers and disbursed over £2 billion
in lending
Innovate in product design
• We’ve patnered with Ondo insuance and their
Leakbot device. Leakbot is a smat water-leak
detector which alets customers to leaks in their
home and helps prevent damage
• We launched an online journey for our Landlord
insuance proposition, allowing customers to
purchase Landlord policies directly from our website
Oveview
Diversiication is a key element for Admial to build
a sustainable business for the future. Our approach
has been to take the skills and learnings from our
current business and ind ways to leveage them
in building successful future businesses. In the past
10 years, we’ve launched seveal products including
household insuance, tavel insuance, pet insuance
and a personal lending business. Our diversiied
business model means that customers can engage
with us across a number of products, and we can
suppot a large variety of their needs.
Our approach to product diversiication is to
make focussed, staged investments on a select
number of new product oppotunities across the
inancial sevices sector, whilst strengthening and
complementing existing customer propositions.
Core Competencies:
• Scale up promising products
• Strengthen customer proposition
• Leveage core strengths
• Innovate in product design
2. Diversification
Relevant Principal Risks and Uncetainties
Read more on
page 114
A B C D E F G H J K
Admial Group plc Annual Repot and Accounts 2022
31
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“I am super excited to have reached this
milestone, this is the culmination of so much
hard work from so many people across the
business! I truly believe we have built a
fantastic range of products and services
that will deliver great value for our customers
and continue to build on the foundations of
what has made Admiral a leader across our
flagship products. The business has achieved
solid growth following launch and plan on
building on the strong start throughout 2023”.
Pritpal Powar
Head of Pet
Launch of Pet in the UK
We launched Admial Pet in 2022 to offer a
new and exciting product for our customers.
This is a new market for Admial and a good stepping-stone for
our Group diversiication stategy. To celebate this milestone,
we patnered with Warner Brothers and the 2022 ‘DC League
of Super Pets’ ilm, which saw some lucky colleagues attend
a special screening at the Warner Brother’s headquaters
in London!
• Admial Pet has lots of additional features above the basic
Pet insuance product, including:
– ‘Pawsquad’, an online sevice that enables customers to
speak to a qualiied, UK-registered vet 24/7 for advice
and treatment options free of charge
– Innovative and customer centric digital journeys across
sales and claims
– Multi-Pet, insuance cover that allows customers to insure
all their pets on one policy and make savings of up to 15%
Our Stategy
2. Diversification
continued
Admial Group plc Annual Repot and Accounts 2022
32
Stategic Repot
Tavel turns 5
Bouncing back from Covid and pandemic
restrictions, this year the Tavel depatment
sold over 800,000 policies! The depatment
has tripled in size over the year, with a creation
of a band-new team in Delhi who ensure our
customers can contact us more conveniently.
Over 2022, we have improved our customer potal and
launched a new, shoter online journey (Instaquote) for our
customers. Digital improvements have also happened within
our claims process, whereby we now ofer an electronic
notiication of loss journey. This has helped increase the
levels of customer self-sevice, and gives a faster and more
eicient process for our customers.
Household celebate 10 years
Our Household product and team turned
10 years old in 2022. Household has been an
Admial success stoy from the stat and was
our first diversification product beyond Motor.
We now have over 1.5 million customers and
strong plans in place to acceleate that growth
in the coming years.
The Household team are continuously seeking improvements
in our pricing, claims management, and the sevice our
customers receive. Some of our key achievements over the
years include an expanded digital ofering, new product
launches within the household line, simple quote journeys
with Instaquote, and strengthened supplier patnerships.
In addition, since the launch of our new claims system last
year, our Household colleagues have been rolling out new
software from our patner CoreLogic. This software helps
to enhance how our panel of suppliers can integate with
our claims system.
Finally, the Household Insuance team continue to
work on improving and growing our product ofering.
Landlord insuance now has an online journey,
meaning our customers can purchase a landlord
policy directly from our website.
Admial Group plc Annual Repot and Accounts 2022
33
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Evolve our proposition
• We improved our electric vehicle cover to now
include an out of charge feature provided by the AA.
If customers run out of charge whilst on cover with
us, the AA will recover them to the nearest charge
point or any other destination of their choice
Develop competencies for the future
• We collaboated on an autonomous simulation
project funded by the government under its
innovation funding scheme. The simulation tested
automated driving systems in a vitual environment
and across multiple diferent scenarios
• These projects help us build our knowledge
of autonomous systems, their risks, and the types
of tools we can use to understand those risks. It also
helps us build our network in the space and build
connections with relevant organisations
Innovate in product design
• We launched LittleBox Pod, a new telematics
product that works alongside the Admial app
to record where, when and how the customer
drives. Each journey is shown to the customer
in the app and they receive instant individual,
personalised feedback
• Our Veygo app has had a re-band, improving
the customer experience and making it easier
for customers to get what they want quicker
Oveview
Admial’s third stategic pillar is built on evolving our
proposition for changes in mobility. The way people
move around is changing. Diferent views exist
on future mobility trends and where the greatest
future impact will be. To stay close to these trends,
we are harnessing our test and learn philosophy,
looking at emerging propositions, and developing core
competencies that will be relevant for the future.
Core Competencies:
• Understand changes in mobility
• Evolve our proposition
• Develop competencies for the future
• Innovate in product design
Progress in 2022
Understand changes in mobility
• Our designated mobility team continued to test
and learn how changes in mobility will impact
our products and how we can adapt to changing
customer needs
• We have invested in Wagonex, the UK’s leading
mobility subscription platform provider to better
understand changes in mobility
3. Evolution
of Motor
Our Stategy
continued
Relevant Principal Risks and Uncetainties
Read more on
page 114
B C D E F G J K
Admial Group plc Annual Repot and Accounts 2022
34
Stategic Repot
LittleBox Pod
(Telematics product expansion)
As pat of our stategy to be the leading insurer
in analytics and data, LittleBox Pod is a new
telematics product that we’re offering to our
customers. Launched in November, it is the
third device added to the LittleBox product line
alongside the hard install and the Plug & Drive.
The Pod is a small discreet device that the customer self-
installs to the inside of their windscreen via a peel and stick
back. The device itself is only 2 inches x 2 inches in size and
is battey powered with a 4+ year lifespan or 4,000 hours of
driving. Customers download and register with the Admial
App, which then links wirelessly with Bluetooth to help collect
and use the Pod data. The LittleBox Pod works alongside the
Admial app to record where, when and how the customer
drives. Each journey is shown to the customer in the app and
they receive individual, personalised trip feedback.
The Pod also uses tacking on phone distactions, harsh
baking, acceleation, speed and night-time driving to
calculate our customers driver score. This score is then
uploaded automatically on a weekly basis through the
app, so customers can instantly view their driving habits.
Through this channel, our customers can stay closer than
ever to their feedback on how to improve their driving
peformance, and ultimately bring their premiums down.
Admial Group plc Annual Repot and Accounts 2022
35
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Pioneer’s investment in Wagonex
In 2022, Admial Group’s venture building
business Admial Pioneer made its first
stategic investment into Wagonex, one
of the UK’s leading mobility subscription
platform provider.
Wagonex, designs, builds, and manages lexible,
all-inclusive technology automotive subscriptions
which enable vehicle suppliers to ofer subscription
options direct to consumers.
This investment suppots Admial Group’s ambition
to diversify and enhance its digital proposition and
extend into new mobility trends. It will also provide the
Group, which already ofers shot-term motor insuance,
with insight into the speciic insuance needs of vehicles
provided to customers on a subscription basis.
“Our aim is to support long-term
diversification by identifying new markets
and ventures where our existing strengths and
knowledge give us a competitive advantage.
We believe that Wagonex’s best-in-class
technology and strong position in the rapidly
expanding car subscription market makes it
a perfect fit for our first strategic investment.
We look forward to working closely with Toby
and the team as they continue to expand
Wagonex in the UK and beyond.”
Emma Huntington
CEO, Admial Pioneer
Our Stategy
3. Evolution of Motor
continued
Admial Group plc Annual Repot and Accounts 2022
36
Stategic Repot
Tap. Vey. Go –
Veygo’s new and improved app
Since its launch in 2017, Veygo’s journey
has gone from strength to strength.
With the vision to anticipate future trends
in the shot-term insuance marketplace,
keeping up to date within the digital space
is essential.
Veygo product marked 5 years of tading in October
2022. The band ofers lexible, shot term car insuance
for customers looking for learner driver insuance or
tempoay insuance. The product is key to our growth
in motor evolution and diversiication. With 3 million
policies already purchased by its happy customers,
we can’t wait to see what else is to come for our
colleagues in Veygo. Although it is only 5 years old,
the speed in which technology evolves in our fast-
developing world, meant, in order to meet and exceed
our customer’s needs, it was time to futher develop
the app and its capabilities.
Tap.Vey.Go is the new campaign to tell customers
about the new and improved Veygo app, making sure
tempoay and learner insuance is available for our
customers on the go. It is another example of how we’re
bringing our business stategy to life, ensuring excellent
customer sevice, increasing customer retention,
and excelling in tech. We’ve also made it possible for
customers to purchase monthly rolling subscription
policies through the website with zero cancellation
fees on expiy. It demonstates Veygo’s commitment
to meet customer’s developing needs of on
demand cover.
Veygo’s new app, has developed the tech futher to
improve the customer experience and make it easier
for customers to get what they want much quicker,
signiicantly reducing the number of screens and
questions they must answer before being shown a
price. This has made the speed of getting cover a lot
quicker for our customers. In addition, all of Veygo’s
propositions are now on the app, making it easier for
customers to get the exact product they are after.
The app is designed speciically with young people
in mind and making sure we can provide the correct
product in the correct ways to our customers.
Admial Group plc Annual Repot and Accounts 2022
37
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Our Sustainability Approach
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Help more
people to
look after
their future.
People
Highlights in 2022
19
th
Best Multinational
Workplace in Europe
3
rd
Great Place To
Work for women
in the UK
86%
of colleagues
believe Admial is a
great place to work
19
Society
(Community and
Environment)
Highlights in 2022
Over
3,300
recorded volunteer
hours by employees
32%
reduction in
scope 1 and 2
carbon emissions
>£400k
donated via our Global Emergency Fund
We have a purpose-led sustainability approach which provides an agreed upon
famework to focus investments and drive strong sustainable peformance.
At the core of our approach is Admial’s purpose to help more people look after
their future. Always striving for better, together. Our sustainability approach
builds on our purpose and purpose famework and targets four key areas –
Customers, People, Society, and Business.
Admial Group plc Annual Repot and Accounts 2022
38
Stategic Repot
Download the PDF of the Sustainability
Repot at admialgroup.co.uk
Our peformance this year is described
on page 40
Read more about our sustainability
approach on page 68
Striving
for better
together.
Admial Group plc
Sustainability Repot 2022
17 Relational NPS, methodology updated in 2022
18 UK Motor customers , monthly score aveaged over the year
19 Great Place To Work (GPTW) suvey result
20 Total Shareholder Return (TSR) for Admial Group plc shares
over the ten-year period to 31 December 2022
21 Weighted aveage
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c
e
s
s
f
u
l
b
u
s
i
n
e
s
s
Always
striving
for better,
together.
Business
Customer
Highlights in 2022
+259%
Total Shareholder Return
20
AA
MSCI ESG ating
50%
aveage Return on
Equity last 5 years
21
Highlights in 2022
>50
Group aveage NPS
across all countries
17
Voted
Best Big Insuance
Company in the
UK Insuance
Choice Awards
>85%
UK Motor customers likely
to renew after a claim
18
Admial Group plc Annual Repot and Accounts 2022
39
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Key Peformance Indicators
In order to implement, develop and measure
the Group’s stategic peformance,
we monitor seveal financial and non-financial
key peformance indicators (‘KPIs’).
Group Proit
Group share of proit before tax
-39%
(2021: +26%)
Customer satisfaction
Customers likely to renew after a claim
>85%
22
(2021: >90%)
Customer sevice
Net Promoter score
>50
(2021: >50%)
Digital strides
Customer engagement
>50%
23
>50% MTAs
23
done online
Growth
Group customer numbers
+11%
(2021: +9%)
International Growth
International customers
+13%
(2021: +13%)
Diversiication
UK Household customers
+18%
(2021: +14%)
Great place to work
GPTW ankings
4th
Positive impact on society
Number of hours donated by employees
+3,300
Net Zero by 2040
Carbon emissions reductions
32%
24
(2021: -8%)
Shareholder Returns
EPS
-41%
(2021: +24%)
Capital Position
Solvency atio
180%
(2021: 195%)
Financial measures
Non-financial measures
22 Monthly score aveaged over the year
23 Mid Term Adjustments (UK opeations)
24 Reduction in scope 1 & 2 emissions
Admial Group plc Annual Repot and Accounts 2022
40
Stategic Repot
Other Awards
2022 Awards
Best Car and Home
Insuance provider,
Insuance Choice Awards
Recognised by the Fundación
Diversidadas as being
a Diverse and Inclusive
Workplace, Spain
Listed on Forbes’ list of
American Best Insuance
Companies, US
India’s Best Workplaces
in IT and IT-BPM
Best Big Insuance company,
Insuance Choice Awards
Team of the Year (IT Digital),
Fintech Awards Wales
Listed in Top 75 Social
Mobility Employer Index, UK
Élection du Sevice
Client de l’Année (ESCDA)
Award, Fance
Atlantic Canada’s Top
Employers and Nova Scotia’s
Top Employers, Canada
Richmond Times Dispatch
Top Workplaces, US
Silver Award, Workplace
Wellbeing Wales awards
Best Workplace for
Wellbeing UK, 4th
Best Place to Work in Data,
DataIQ Awards
Best Car Finance Provider
of the Year, Moneyfacts
Armed Forces Employer
Recognition Scheme
Gold Award
Best Big Companies
to Work For in the UK
2nd
Best Big Company for
Wellbeing
Best Companies
Best Workplace
for Women
3rd
Great Place
to Work UK
Great Place to Work
UK Best Workplaces
4th
Best Multinational
Workplace in Europe
19th
Great Place to
Work Italy
4th
Great Place to
Work Fance
7th
Great Place to
Work Canada
4th
Great Place to
Work Spain
2nd
Great Place to
Work International
Admial Group plc Annual Repot and Accounts 2022
41
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Adding value.
Delivering
difference.
Geaint Jones
Group Chief
Financial
Officer
“ The Group delivered a
solid set of results in
2022 within the context of
macroeconomic uncertainty
and the highest level of
inflation in decades.“
Group Chief Financial Officer’s Review
Admial Group plc Annual Repot and Accounts 2022
42
Stategic Repot
With the impact of the pandemic
fading, spiking inlation across
our markets was the big stoy for
Admial in 2022.
This had a number of impacts around the Group,
but most impotant was probably the notable
increase in aveage claims costs, especially to
damage claims. We back ourselves to manage
insuance cycles efectively – quickly identifying
and responding to trends – and we increased prices
signiicantly during the year, especially in the UK and
US, to counteact the inlation. In the UK paticularly,
our ates appear to have moved materially more
than competitors (until the last quater maybe),
and hence we stopped growing in UK motor in H2.
Loss atios were adversely impacted despite the
ate increases.
We noted when repoting our half year results
in August 2022 that 2019 is a better comparison
to the 2022 igures, ather than the exceptional
2020 and 2021 years which were distoted by the
huge positive impact of the pandemic on claims
costs and proitability. My review of the results
therefore looks also at 2019, the last pre-pandemic
full year:
2022 was undeniably a challenging year, though with one
or two exceptions, the Group result was pretty pleasing.
There are lots of moving pats in the comparisons of
course (which are discussed in detail in the stategic
review), but there are a few stand-out obsevations:
Looking irst at the UK Insuance result,
we unsurprisingly see a big fall against 2021 but a
small increase v 2019. Maybe it goes without saying,
but the reduction from 2021 is vey predominantly
motor insuance related and is mainly due to the
combination of a) the unwind of the positive covid
related impacts and b) the higher inlation in 2022.
Those efects led to higher current year claims and
lower proit commission.
The UK Household result was also impacted by
much higher than usual severe weather-related claims
(seen across the market), signiicantly moving the
result from a proit of £21 million to a loss of £6 million.
If we adjust both years to take out the impact of
severe weather and subsidence claims, proit would
have been broadly lat at around £25 million.
Comparing back to 2019, UK proit and turnover
were modestly higher in 2022, though the increase
in customer numbers is much higher at nearer 30%.
There are various ofsetting movements that result
in the higher proit, including the worse weather in
2022, but also stronger back year reseve movements
and associated proit commission in 2022 compared
to more positive current year claims in 2019.
£m 2022 2021 2019 Change v 2021 Change v 2019
UK Insuance 616 894 598 (278) +18
Europe Insuance (5) 1 9 (6) (14)
US Insuance (49) (13) (10) (36) (39)
Admial Money 2 (6) (8) +8 +10
Admial Pioneer (16) (10) – (6) (16)
Share scheme cost (52) (63) (49) +11 (3)
Other costs (27) (34) (35) +7 +8
Continuing opeations
pre-tax proit 469 769 505 (300) (36)
Restructure cost – (56) – +56 –
Continuing opeations proit
after restructure cost 469 713 505 (244) (36)
Admial Group plc Annual Repot and Accounts 2022
43
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Investments and investment income
Another feature of 2022 was volatility in inancial markets,
paticularly in terms of higher interest ates (three year
UK gilt up from 0.7% to 3.6%) and wider spreads on
corpoate bonds (UK investment gade spreads up
~80bps). Admial’s investment stategy (unchanged for a
while) is reasonably cautious and is focussed on matching
asset and liability duation (aveage life of the assets
and claims liabilities is around three years), currency and
to some extent inlation. The potfolio is of high credit
quality, and we hold vey prudent levels of liquid assets.
There are appropriate ESG targets in place and we’ve
committed to a net zero potfolio by 2040 at the latest.
Notwithstanding the above, the potfolio is subject to
valuation changes from spreads and ate movements
(the latter is well matched to changes in the values of
claims liabilities). Movements in unrealised losses in 2022
were £256m, though values recovered notably in the last
months of the year and into early 2023. As ates moved
up in the year and maturing assets and cash inlows were
invested, the level of return increased (aveage return
in 2022 of 1.6% vs 1.1% in 2021). If ates remain higher
than their long-term lows for the foreseeable future
then we will earn higher investment income (for context,
each additional 100bps of return = ~£35m in additional
investment income).
IFRS17
Big change is coming from 2023 with the new IFRS17
insuance accounting standard inally coming into efect.
Our team has worked extremely hard to get us ready for
the new standard which will introduce big diferences in
accounting and presentation.
We held a market brieing in November 2022 on the key
impacts for Admial (slides and webcast on our corpoate
website are woth a look) and to reiteate those key
messages are:
• No change on Admial’s stategy or the ultimate
proitability of our businesses
• No change on dividend policy or expectations
• Admial will use the simpliied approach, though there
may be some impacts on timing of proit recognition
• We will continue to be vey prudent in claims reseving
It’ll be interesting to see if the adoption of the standard
leads to improved tansparency and compaability.
I’d like to close by vey sincerely thanking the IFRS17
project team for their work over the past few years –
nice work team!
Geaint Jones
Group Chief Financial Officer
7 March 2023
In UK motor, at the end of 2022 we have reduced the
size of the margin in the booked reseves (though it
wasn’t a signiicant driver of proit), in pat because
some of what we hold that margin for has manifested
in the best estimate reseves (in terms of higher
inlation). Our philosophy regarding reseving remains
sacrosanct and the closing margin position remains
vey cautious – around a 95th percentile position –
which is aligned with the top end of the accounting
policy ange we expect to adopt under IFRS17 from
2023. If there are no big shocks in claims development
moving foward, we expect signiicant reseve releases
to feature as an impotant pat of proit.
Moving now to Europe, where despite the higher
claims inlation and continued strong growth (+15% in
customer numbers, over €600m turnover), the result
was only modestly lower at a loss of £5 million vs
a proit of £1 million in 2021 (£9m proit in 2019).
The combined EU motor result was only vey slightly
negative (higher loss atios, investing in expanding
distribution in Spain were notable drivers), and we
continued to invest in expanding the product line
(paticularly Household in Fance and Pet in Italy).
Given the backdrop, I think it’s a decent result for
what continues to become a more material pat of
the Group.
A disappointing change in 2022 though was the
Elephant result in the US, which was a bit under
£40 million worse than both compaative years.
The US auto insuance market experienced severe
increases in the cost of claims during the year,
and despite substantial ate increases, Elephant’s loss
atio was adversely impacted (85% in 2022 v 73% and
82% in 2021 and 2019 respectively). The H2 result was
worse than H1, as the ate increases take their time
to impact the results and claims costs continued to
inlate. Many or even most of Elephant’s competitors
appear to have fared much worse. As my colleagues
have noted, we’re assessing the best way foward for
Elephant, and in the meantime the focus of the team
is on materially improving the combined atio and
signiicantly reducing the loss.
And inally, returning back to the UK – Admial
Money delivered its irst full year proit – small at the
minute admittedly but given the economic situation,
it’s a ine result the team should be vey proud of,
and we believe it’s the irst of many, hopefully growing,
positive results. We remain prudently provided for
expected credit losses. We continue also to invest
in growing new businesses under the Admial Pioneer
umbrella – notably Veygo (lexible shot term car
insuance) and Toolbox by Admial (business insuance
for tadespeople) both of which are making vey
nice progress. Hopefully exciting times ahead for
those businesses.
Group Chief Financial Officer’s Review
continued
Admial Group plc Annual Repot and Accounts 2022
44
Stategic Repot
2022 Group Oveview
£m 2022 2021 2019
% change vs.
2021
% change vs.
2019
Group Turnover (£bn)
*1*2*3
3.68 3.51 3.30 +5% +12%
Undewriting result including investment
income
*1*2
143.3 347.0 238.0 –59% –40%
Proit commission 170.9 304.5 114.9 –44% +49%
Net other revenue and expenses
*1
166.7 129.4 164.7 +29% +1%
Opeating proit 480.9 780.9 517.6 –38% –7%
Group proit before tax
*3
469.0 769.0 505.1 –39% –7%
Group proit before tax, including
restructure cost 469.0 713.5 505.1 –34% –7%
Analysis of proit:
UK Insuance 615.9 894.0 597.9 –31% +3%
International Insuance (53.8) (11.6) (0.9) nm nm
International Insuance – European Motor (1.6) 4.8 9.0 nm nm
International Insuance – US Motor (48.9) (13.0) (9.6) nm nm
International Insuance – Other (3.3) (3.4) (0.3) nm nm
Admial Money 2.1 (5.5) (8.4) nm nm
Other (95.2) (107.9) (83.5) –12% +14%
Group proit before tax
*3
469.0 769.0 505.1 –39% –7%
Key metrics:
Group loss atio
*1*4
72.0% 58.5% 64.9% +14pts +7pts
Group expense atio
*1*4
29.7% 26.7% 23.7% +3pts +6pts
Group combined atio
*1*4
101.7% 85.2% 88.6% +17pts +13pts
Customer numbers (million) 9.28 8.36 6.98 +11% +33%
Earnings per share
*3
124.3p 212.2p 143.7p –41% –14%
Dividends per share
*5
112.0p 187.0p 140.0p –40% –20%
Special dividends from sale of Penguin Potals 45.0p 92.0p – – –
Return on Equity
*1*3
35% 56% 52% –21pts –17pts
Solvency Ratio
*1
180% 195% 190% –15pts –10pts
*1 Alternative Peformance Measures – refer to the end of this repot for deinition and explanation
*2 Undewriting proit including investment income includes prior period claims reseve releases on business originally reinsured but subsequently commuted.
Excluding these releases, the 2022 undewriting result is a loss of £45.6 million (2021: proit of £157.8 million, 2019: proit of £116.3 million)
*3 Group Turnover, Group Proit before tax, Earnings per share, Return on equity presented on a continuing opeations basis. 2021 Group proit before tax,
Earnings per share and Return on equity exclude the impact of the £55.5 million UK Insuance restructure cost
*4 See note 14 for a reconciliation of Turnover and repoted loss and expense atios to the inancial statements. Ratios exclude the impact of the UK Insuance
restructure cost in 2021
*5 The 2019 dividend of 140.0 pence per share includes the deferred special element of the 2019 inal dividend of 20.7 pence per share that was paid alongside
the interim 2020 dividend
Admial Group plc Annual Repot and Accounts 2022
45
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Group highlights
The Group delivered a solid set of results in 2022
within the context of macroeconomic uncetainty and
the highest level of inlation in decades. In response,
the business increased prices and ates where applicable,
but the impact of these changes will take time to
earn through in the underlying result. This is within a
context of two outlier years of elevated Group proits
in 2020 and 2021, as a result of Covid and other factors.
Hence, comparisons include both the 2021 year impacted
by Covid, but also the 2019 pre-Covid year.
Highlights of the Group’s results for 2022 are as follows:
• Businesses across the Group grew strongly in 2022
with turnover up 5% and customer numbers up 11%
year-on-year:
– The UK Motor business grew in the irst half of
the year primarily driven by growth in renewals
customers, although this growth reversed in the
second half as Admial maintained pricing discipline,
increasing prices ahead of the market. Oveall Motor
customers and turnover were both down 1%
compared to 2021
– UK Household continued to grow customer
numbers strongly (+20%), which alongside a notable
contribution from UK Tavel led to oveall UK Insuance
customer growth of 8%
– Outside the UK, International Insuance customers
increased by 14%, and turnover by 15%
• Group proit before tax for the year was £469 million,
39% lower than the exceptional result for 2021 and 7%
lower than 2019:
– UK Motor insuance proit was £623 million – lower
than 2021 (£872 million, excluding restructure cost),
as a result of both an increase in claims frequencies
post the low levels during the pandemic and the
impact of claims inlation, but £31 million higher
than 2019 (£592 million)
– UK Household was impacted by a number of
severe weather events in 2022 resulting in a loss
of £6 million (2021: £21 million proit), with the
severe weather proit impact of £32 million
(2021: £4 million)
– International Insuance business combined result was
£42 million lower than 2021:
– This was primarily driven by elevated market-wide
claims inlation in the US, with a £49 million loss,
£36 million worse than 2021 (loss of £13 million)
– The EU Motor result was also lower with a small
loss of £2 million compared to a proit of £5 million
in 2021; also impacted by claims inlation,
continued competitive market conditions in Italy
and Spain placing pressure on premiums and
investment in channel diversiication
– Admial Money repoted its irst proit of £2 million
(2021: £6 million loss); within the context of
macroeconomic uncetainty the business continued
a prudent approach to growth, maintaining
favouable default experience and tightening
lending criteria
– Other Group items decreased to £95 million
(2021: £108 million), impacted by lower share
scheme costs and higher investment income at the
parent company level, patially ofset by a larger
investment in Admial Pioneer
Economic uncetainty, Covid-19, and the cost
of living crisis
Macro-economic uncetainty and high levels of inlation
impacted the market and the Group’s peformance
in 2022.
In Motor insuance, elevated used car prices continued
to drive inlation, which together with higher repair
costs, longer repair timescales and higher projections of
future wage inlation, contributed to signiicantly higher
claims inlation across the countries in which Admial
opeates. Admial took a disciplined approach to preseve
undewriting margin, increasing prices in all businesses,
which impacted growth. The impacts of these price
changes are expected to continue to low through into
2023. In Household insuance, severe weather events
had a large impact on results in both the UK and Europe.
Admial continues to take a long-term approach to the
business, maintaining pricing discipline and a prudent
approach to reseving for insuance claims.
Within the context of an uncetain macroeconomic
outlook and increasing interest ates, Admial Money
took a prudent approach to growth and risk selection,
tightening undewriting criteria and aising prices.
Provisions for credit losses remain appropriately prudent,
though no signiicant increase in the level of arrears and
defaults has been seen to date.
Admial remained committed to suppoting customers,
people and communities during a challenging 2022.
This included a continued focus on customer sevice.
From an employee perspective, Admial continued to
adapt and embace hybrid working for employees and
suppoted colleagues as pat of the cost of living crisis
through increased salaries and other suppot measures.
From a community perspective, the business renewed
the community fund stategy to focus on suppoting
employability, investing in new projects and created more
oppotunities for colleagues to get involved.
2022 Group Oveview
Admial Group plc Annual Repot and Accounts 2022
46
Stategic Repot
“ Admiral continues
to take a long term
approach to the business,
maintaining pricing
discipline and a prudent
approach to reserving for
insurance claims.”
Geaint Jones
Group Chief Financial Officer
Earnings per share
Earnings per share (EPS) for 2022, is 124.3 pence
(2021: 212.2 pence). The relative reduction compared
to 2021 is in line with the fall in pre-tax proit noted
above. 2022 EPS is 14% below the 2019 compaative,
a larger reduction than the change in pre-tax proit
due to a higher efective tax ate in 2022 compared to
2019 (in turn primarily related to the much higher loss
in the US during 2022, against which no deferred tax
is recognised).
Return on equity
The Group’s return on equity was 35% in 2022,
21 percentage points lower than 2021 and 17 points
lower than 2019. This is the result of a signiicant
growth in the aveage equity since 2019, suppoting
the Group’s larger businesses, together with lower
earnings in 2022 as noted above.
Dividends
The Group’s dividend policy is to pay 65% of post-
tax proits as a normal dividend and to pay a futher
special dividend comprising earnings not required to
be held in the Group for solvency capital requirements
including appropriate headroom above the regulatoy
minimum in line with internal risk appetite.
The Board has proposed a inal dividend of 52.0 pence
per share (approximately £155 million), split as follows:
• 37.5 pence per share normal dividend; plus
• A special dividend of 14.5 pence per share
The 2022 inal dividend relects a pay-out atio of 91%
of earnings per share for the second half. 52.0 pence
per share is 28% lower than the inal 2021 dividend of
72.0 pence per share (excluding the 46.0 pence special
dividend from the sale of Penguin Potals businesses)
with the movement being broadly in line with the
reduction in post-tax proits.
Following the two payments of 46.0 pence per share
alongside interim and inal dividends in 2021, a futher
special dividend of 45.0 pence per share was paid
with the 2022 interim dividend, relecting the inal
payment of the phased return to shareholders of
the proceeds from the sale of the Penguin Potals
comparison businesses which completed in 2021.
The total amount returned to shareholders from
the three payments was just over £400 million.
The total 2022 inancial year dividend, including
the third special dividend from the Penguin Potals
disposal, is 157.0 pence per share, approximately
£465 million. Excluding the Penguin Potals special
dividend, the total 2022 inancial year dividend is
112.0 pence per share, relecting a pay-out atio of
90% (2021 and 2019 compaatives 88% and 94%).
The inal dividend payment will be paid on 2 June 2023,
the ex-dividend date is 4 May 2023 and the record
date is 5 May 2023.
The Group’s results are presented in the following
sections as:
• UK Insuance – including UK Motor (Car and Van),
Household, Tavel and Pet
• International Insuance – including L’olivier
(Fance), Admial Seguros (Spain), ConTe (Italy)
and Elephant (US)
• Admial Money
• Other – including Admial Pioneer (New ventures)
• Group Capital Structure and Financial Position
Admial Group plc Annual Repot and Accounts 2022
47
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
UK Insuance
It’s been another interesting year and
one that’s brought some new challenges
to contend with. We have navigated
our way through by remaining focused,
keeping our customers cental in our
decision making and continuing to find
ways to make a difference, but we’ve
also faced some unique circumstances
with not only industy but economy-
wide impacts.
We successfully implemented the new FCA pricing
reform at the stat of 2022, with the market adjusting
in line with our expectations. Shotly after, the UK
experienced the largest spike in inlation in 40 years
following the stat of the war in Ukaine and alongside
this, a severe supply and demand post-pandemic
shotage signiicantly impacted claims inlation for
insurers. Global supply chain shotages of car spare
pats, subsequent delays to car repairs, limited
availability of new cars and labour shotages have
all led to higher damage repair and second-hand
car costs, with inlation at double digits. The impact
of these conditions has been felt industy-wide and
despite Admial’s scale advantages providing some
protection against these challenges, inevitably,
higher claims costs and our prudent reseving
philosophy have led to a higher 2022 loss atio
compared to recent years.
Cristina Nestares
CEO, UK Insuance
“ Admiral’s difference
is it’s unique culture.
It’s one of the
fundamental
cornerstones to our
success over the
last 29 years.”
Read more
about our
outlook in
Our Q&A on
pages 24–27
Admial Group plc Annual Repot and Accounts 2022
48
Stategic Repot
Read more
about Our
Awards on
page 41
At Admial we’ve responded to inlationay pressures
by maintaining pricing discipline, increasing prices
in Motor insuance by more than 20% by the end of
the year. Our decision to acceleate ate increases
earlier than the market led to a reduction in
competitiveness and a contaction in our new business
market share. However, this is consistent with our
position on growth; only growing when conditions
are suppotive. We strongly believe this is the right
approach for the long-term sustainability of the
business. Although customer loyalty and strong
retention has helped to sustain the size of our motor
book, we ended the year with our customer base
broadly lat year-on-year.
Despite the challenging tading environment,
we remain committed to improving the customer
experience and have continued to invest in new
capabilities enabling customers to access more
sevices via digital channels. We’ve also advanced
our multi-product proposition and improved business
resilience by improving the structure of our repair
network. In suppot of our UK diversiication stategy,
we have continued to invest in our home pricing
and data analytics capabilities, improved customer
journeys to make it easier to access Admial’s multi-
product ofering and the discounts this afords
customers, and we launched a new Pet insuance
proposition. In Motor, our tiered product ange
ofers customers more choice and we’ve grown
our electric vehicle proposition by more than 60%
as well as investing futher in pricing and data and
analytics capabilities.
It was great to see our Household insuance
business proudly celebate its tenth year in 2022
and our book grew by 20%, ending the year with
1.6 million policies (growing from 1.3 million in 2021).
Notwithstanding this pleasing growth, the Household
business was not immune to the inlationay pressures
already referenced and also had to contend with
seveal weather events during the year including
storm Eunice, a long dy summer leading to an
increase in subsidence claims and freezing conditions
in the winter months – all of which have afected
current year inancial results.
Sustaining competitive advantage by fostering a
strong culture, focusing on core values, and caring
for our people is a consistent and impotant thread
throughout our histoy. And in 2022, as the cost-
of-living crisis began to materialise, in addition
to colleagues’ annual pay reviews, we gave two
permanent salay increases to our more junior
colleagues and provided winter weather payments
to help them with their energy bills, making a positive
diference for a large propotion of our colleague
population. In celebation of the strength of our
culture and people engagement, we also received
some external recognition and we’re delighted that
our UK business was named the second Best Big
Company to Work For in the UK and received a special
award as Best Big Company for Wellbeing at the
Best Companies Awards 2022. We remain committed
to being there for our colleagues, just as they are
committed to being there for our customers when
they need us most.
2022 has cetainly been one of the most signiicant
and challenging years the insuance industy has
navigated in recent decades but I’m incredibly proud
that throughout, we have not lost sight of what
makes us Admial. Remaining consistent with our core
values, leveaging our strengths in pricing and claims,
continuing to invest in new capabilities for the long-
term success of the business and looking after our
people will all be remembered as stand out positives
for the year. A big thanks to our team for their suppot,
commitment, and hard work!
Admial Group plc Annual Repot and Accounts 2022
49
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
UK Insuance
continued
UK Insuance inancial peformance
£m 2022 2021 2020 2019
Turnover
*1
2,784.3 2,751.7 2,672.0 2,635.0
Total premiums written 2,489.7 2,453.2 2,373.3 2,321.7
Net insuance premium revenue 628.8 612.6 539.7 533.2
Undewriting proit including investment income
*1
247.1 394.9 346.5 257.4
Proit commission and other income 368.8 499.1 351.8 340.5
UK Insuance proit before tax 615.9 894.0 698.3 597.9
Restructure cost – (54.0) – –
UK Insuance proit before tax, including restructure cost 615.9 840.0 698.3 597.9
*1 Alternative Peformance Measures – refer to note 14 at the end of this repot for deinition and explanation
Split of UK Insuance proit before tax
£m 2022 2021 2020 2019
Motor 622.6 871.7 683.6 592.0
Household (6.3) 21.3 15.4 7.5
Tavel & Pet (0.4) 1.0 (0.7) (1.6)
UK Insuance proit before tax 615.9 894.0 698.3 597.9
Key peformance indicators
2022 2021 2020 2019
Vehicles insured at year end
*1
4.94m 4.97m 4.75m 4.37m
Households insured at year end
*1
1.58m 1.32m 1.16m 1.01m
Tavel & Pet policies insured at year end
*1
0.44m 0.15m 0.07m 0.09m
Total UK Insuance customers
*1
6.96m 6.44m 5.98m 5.47m
*1 Alternative Peformance Measures – refer to the end of the repot for deinition and explanation
Key highlights for the UK insuance business for 2022:
• Closing UK Insuance customers of just under 7 million, 8% higher than the end of 2021 and 27% higher than
the end of 2019, with signiicant contributions from UK Household and Tavel and the UK Motor book slightly
lower during 2022
• Strong UK Motor proit of £623 million, down from the elevated proit of £872 million in 2021, but higher than
the 2019 pre- pandemic proit of £592 million
• A loss of £6.3 million for UK Household primarily driven by weather events; excluding the severe weather
impact of £31.6 million, proit was £25.3 million
Admial Group plc Annual Repot and Accounts 2022
50
Stategic Repot
UK Motor Insuance inancial review
£m 2022 2021 2020 2019
Turnover
*1
2,493.0 2,522.5 2,473.8 2,455.3
Total premiums written
*1
2,217.9 2,244.3 2,193.0 2,158.5
Net insuance premium revenue 471.0 496.5 451.4 452.6
Investment income
*2
35.0 40.8 50.8 30.4
Net insuance claims (159.8) (86.1) (97.1) (164.7)
Net insuance expenses (126.1) (95.6) (77.2) (74.7)
Undewriting proit including investment income
*3
220.1 355.6 327.9 243.6
Proit commission 170.2 290.6 124.7 112.2
Undewriting proit and proit commission 390.3 646.2 452.6 355.8
Net other revenue
*4
232.3 225.5 231.0 236.2
UK Motor Insuance proit before tax 622.6 871.7 683.6 592.0
Restructure cost – (49.6) – –
UK Motor insuance proit including restructure cost 622.6 822.1 683.6 592.0
*1 Alternative Peformance Measures – refer to the end of this repot for deinition and explanation
*2 Investment income includes £2.2 million of inta-group interest (2021: £2.7 million; 2020: £2.9 million; 2019: £2.8 million)
*3 Undewriting proit excludes contribution from undewritten ancillaries (included in net other revenue)
*4 Net other revenue includes instalment income and contribution from undewritten ancillaries and is analysed later in the repot
Key peformance indicators
£m 2022 2021 2020 2019
Repoted Motor loss atio
*1,*2
71.5% 53.0% 49.2% 60.7%
Repoted Motor expense atio
*1,*3
21.8% 19.7% 19.8% 19.1%
Repoted Motor combined atio
*1
93.3% 72.7% 69.0% 79.8%
Written basis Motor expense atio
*1
20.1% 19.9% 18.8% 18.5%
Repoted loss atio before releases
*1
97.8% 78.8% 72.3% 87.6%
Claims reseve releases – original net share
*1,*4
£124.0m £128.1m £104.3m £121.7m
Claims reseve releases – commuted reinsuance
*1,*5
£189.1m £189.2m £137.3m £121.7m
Total claims reseve releases
*1
£313.1m £317.3m £241.6m £243.4m
Other Revenue per vehicle
*1
£58 £59 £61 £66
Vehicles insured at year end
*1
4.94m 4.97m 4.75m 4.37m
*1 Alternative Peformance Measures – refer to the end of this repot for deinition and explanation
*2 Motor loss atio adjusted to exclude impact of reseve releases on commuted reinsuance contacts. Reconciliation in note 13b
*3 Motor expense atio is calculated by including claims handling expenses that are repoted within claims costs in the income statement. The impact of reinsurer
caps is excluded. Reconciliation in note 13c
*4 Original net share shows reseve releases on the propotion of the potfolio that Admial wrote on a net basis at the stat of the undewriting year in question
*5 Commuted reinsuance shows releases, net of loss on commutation, on the propotion of the account that was originally ceded under quota share reinsuance
contacts but has since been commuted and hence repoted in undewriting proit ather than proit commission
UK Motor proit decreased by 29% to £622.6 million (2021: £871.7 million) with the repoted combined atio
increasing to 93.3% (2021: 72.7%), relecting a higher current year loss atio (excluding prior year releases) as a
result of higher claims inlation as well as an increase in claims frequency compared to the low levels during the
pandemic. Proit commission was lower than 2021, also due to the lower current year proitability. Both 2020
and 2021 are considered exceptional periods, delivering much lower loss atios than in previous years as a result
of Covid-related factors.
Market prices increased in the irst half of the year in response to the FCA reforms; Admial remained well positioned
and saw an increase in retention. From a claims perspective, claims frequency gadually increased over the course
of the year although still remains lower than pre-pandemic levels. Global inlation and factors such as a supply
constaints for new cars leading to signiicant inlation in used car values and hence total loss claims, and car pats,
resulted in much higher claims inlation from Q2 onwards which continued through the remainder of the year.
Admial Group plc Annual Repot and Accounts 2022
51
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
UK Insuance
continued
Admial increased ates ahead of the market, by over 20% during the year in response to the elevated claims
inlation, maintaining pricing discipline and prioritising undewriting proitability over growth. This impacted
Admial’s pricing competitiveness compared to the market and hence impacted the growth of the book,
which resulted in a lower number of vehicles insured at the end of the year, compared with the stat
(2022: 4.94 million; 2021: 4.97 million). Turnover was relatively lat at £2.49 billion (2021: £2.52 billion), as a result
of lower aveage premiums in the Car insuance business. This relected the lower growth of the book as well as
the efects of the FCA reform, and a competitive market environment, in paticular as the proile of the book
moved towards lower risk, renewals customers.
The results were impacted by a number of factors:
Undewriting Proit and Proit Commission
• Net insuance premium revenue decreased by 5% to £471.0 million (2021: £496.5 million), relecting lower
growth in new business and a lower aveage premium impacted by the FCA reform which resulted in a shift in
mix towards the renewals book (geneally lower aveage premiums), and a lag in the earning of ate increases
made in the second, third and fouth quaters of the year.
• Investment income was lower at £35.0 million (2021: £40.8 million), with higher underlying investment income
being ofset by a reduction in income arising from cash held by Admial relating to the potion of the potfolio
that is ceded through quota share reinsuance (£20.0 million reduction; 2021: £1.6 million reduction). Refer to
the Investment Income section later in the repot.
• There are a number of trends impacting UK motor claims in 2022 which resulted in the increase in repoted
loss atio (53.0% in 2021 to 71.5% in 2022):
Repoted Motor Loss Ratio
Repoted loss atio
before releases
Impact of claims
reseve releases –
original net share
Repoted Loss
Ratio
2021 78.8% –25.8% 53.0%
Change in current period loss atio +19.0% +19.0%
Change in claims reseve releases – original net share –0.5% –0.5%
2022 97.8% –26.3% 71.5%
• The current period loss atio increased by 19.0% which is the result of:
– Higher than usual levels of claims inlation, paticularly in relation to damage claims (futher detail
follows below)
– Continuing return towards pre-pandemic road usage over the last 12 months (although still below historic
levels) and therefore an increase in claims frequency compared to 2021
– Slightly lower aveage premium in the period following a shift in potfolio mix towards renewals business
• Prior period releases were relatively lat when compared with 2021 at around 26%:
– Admial continues to see favouable development in best estimate reseves, paticularly for large bodily
injuy claims which are initially projected cautiously
– This beneit is patially ofset by an allowance in the best estimate for the potential efects of excess
inlation on bodily injuy claims
– The margin held above best estimate reseves remains signiicant and prudent – it is estimated to sit
around the 95th percentile conidence level, a reduction from the end of 2021 (contributing to the prior
period reseve release) and consistent with the top end of the percentile ange the Group expects to set
for reseving under IFRS 17
Admial Group plc Annual Repot and Accounts 2022
52
Stategic Repot
Claims Inlation and Reseving
Admial’s actuarial reseving team calculates best estimate claims reseves for UK motor claims reseves,
using standard actuarial techniques applied to paid and incurred claims data, overlayed with assumptions and
judgements where it is considered that the data does not fully relect potential future trends and developments.
The best estimate claims reseves are validated through comparison with projections peformed by an
independent, external actuarial irm. Projections showed an increase in aveage ultimate claims cost in the irst
half of 2022 compared to 2021 of around 11%, and this remained similar for the second half of the year as claims
inlation persisted.
The impact of inlation on third paty and own damage claims is obseved reasonably quickly, with the elevated
levels due to market-wide factors such as high second-hand car values (impacting total loss claims), pats supply
chain issues and underlying challenges in supply of labour leading to higher repair costs.
The longer-term impacts of the current inlation spike on bodily injuy claims is highly uncetain. Admial has
not obseved material changes in inlation for bodily injuy claims settled in 2022, when compared to 2021.
However, given the longer-tailed nature of these claims, a consevative allowance has been made in the best
estimate reseve is held to relect the potential impacts of higher than historic levels of future wage inlation
on cetain elements of bodily injuy claims reseves.
In addition to the inlationay environment, there continues to be a high level of uncetainty within motor
claims across the market arising from (and not limited to), the continued adjustment of claims frequency post
Covid, the impact of the whiplash reforms on smaller bodily injuy claims and the future path of the Ogden
discount ate.
As a result of this uncetainty, Admial continues to hold a signiicant and prudent margin above best
estimate reseves.
• Reseve releases from commuted reinsuance and proit commission were notably lower in 2022 than in 2021,
with a combined total of £359.3 million (2021: £479.8 million), as follows:
£m
Reseve releases
– commuted
reinsuance Proit commission Total
2021 189.2 290.6 479.8
Change in commuted releases –0.1 –0.1
Change in proit commission –120.4 –120.4
2022 189.1 170.2 359.3
• Releases on reseves originally reinsured but since commuted were lat at £189.1 million (2021: £189.2 million),
a higher level than seen in years prior to 2021. Undewriting years 2018 – 2020 made a signiicant contribution,
consistent with the releases on the original net share, relecting the larger than usual movements in loss atios
for those undewriting years in H1
• Proit commission was signiicantly lower at £170.2 million (2021: £290.6 million). This is the result of the
higher current period loss atio, meaning that no proit commission is recognised on the 2021 or 2022
undewriting years, compared to the unusually high £150 million recognised on the 2020 undewriting year
in 2021. Futher information on the Group’s co-insuance and reinsuance arangements is provided later in
this repot
• The repoted earned expense atio was higher at 21.8% in 2022 (2021: 19.7%) with the written basis atio
at around 20%. The higher earned basis atio primarily results from the lower aveage premiums noted above.
As a result of movements in the underlying earned expense atio, net insuance expenses also included a
higher propotion of costs incurred as a result of quota share reinsuance expense caps (£32.6 million vs
£10.1 million in 2021) relating to the 2021 and 2022 undewriting years. The caps will result in an increased
level of proit commission on these undewriting years in the future should they be proitable on an
ultimate basis
Admial Group plc Annual Repot and Accounts 2022
53
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
UK Insuance
continued
Other Revenue and Instalment Income
UK Motor Insuance Other Revenue – analysis of contribution:
£m 2022 2021 2020 2019
Contribution from additional products & fees, including those
undewritten by Admial
*1
207.4 200.8 203.4 217.6
Instalment income 91.3 100.2 100.9 83.9
Other revenue 298.7 301.0 304.3 301.5
Internal costs
*2
(66.4) (75.5) (73.3) (65.3)
Net other revenue 232.3 225.5 231.0 236.2
Other revenue per vehicle
*3
£58 £59 £61 £66
Other revenue per vehicle net of internal costs £48 £47 £50 £56
*1 Additional products undewritten by Admial included in undewriting proit in income statement but re-allocated to Other Revenue for purpose of KPIs
*2 Internal costs relect an allocation of insuance expenses incurred in geneating other revenue
*3 Other revenue (before internal costs) divided by aveage active vehicles, rolling 12-month basis
Admial geneates other revenue from a potfolio of insuance products that complement the core car insuance
product, and also fees geneated over the life of the policy.
The most material contributors to net other revenue continue to be:
• Proit earned from Motor policy upgade products undewritten by Admial, including breakdown, car hire and
personal injuy covers
• Revenue from other insuance products, not undewritten by Admial
• Fees such as administation and cancellation fees
• Interest charged to customers paying for cover in instalments
Oveall contribution (other revenue net of costs plus instalment income) was broadly consistent at £232.3 million
(2021: £225.5 million).
Other revenue per vehicle was £58 (gross of costs; 2021: £59), with Net Other Revenue (after deducting costs)
per vehicle at £48 (2021: £47), both largely consistent with 2021.
UK Household Insuance inancial peformance
£m 2022 2021 2020 2019
Turnover
*1
255.4 218.8 193.8 171.3
Total premiums written
*1
235.9 198.5 175.9 154.9
Net insuance premium revenue 55.6 49.1 43.2 37.2
Undewriting (loss)/proit
*2
(13.2) 3.9 2.5 0.7
Proit commission and other income 6.9 17.4 12.9 6.8
UK Household insuance (loss)/proit (6.3) 21.3 15.4 7.5
Restructure cost – (4.4) – –
UK Household insuance (loss)/proit including
restructure cost (6.3) 16.9 15.4 7.5
*1 Alternative Peformance Measures – refer to the end of this repot for deinition and explanation
*2 Undewriting proit/(loss) excluding contribution from undewritten ancillaries
Admial Group plc Annual Repot and Accounts 2022
54
Stategic Repot
Key peformance indicators
2022 2021 2020 2019
Repoted Household loss atio
*1
91.2% 63.3% 64.8% 69.1%
Repoted Household expense atio
*1
33.5% 30.3% 29.4% 28.9%
Repoted Household combined atio
*1
124.7% 93.6% 94.2% 98.0%
Impact of severe weather and subsidence (loss atio)
*1
32.0% 2.2% 5.3% –
Impact of severe weather and subsidence (£m)
*1
31.6 3.8 4.8% –
Households insured at year end
*1
1.58m 1.32m 1.16m 1.01m
*1 Alternative Peformance Measures – refer to the end of this repot for deinition and explanation
The household book continued to grow in 2022, with the number of households increasing by 20% to 1.58 million
(2021: 1.32 million) and turnover increasing by 17% to £255.4 million (2021: £218.8 million). The continued level
of growth, within a competitive market environment, was in pat driven by continued growth in the multicover
proposition as well as in the price comparison channel.
Aveage market premiums were lower in the irst half of the year as a result of the FCA reforms, and retention
increased for Admial and the market. Admial increased ates, paticularly in the second half of the year in
response to higher claims inlation.
The repoted loss atio for the period was impacted by severe weather and subsidence events and as a result
was higher at 91.2% (2021:63.3%). The weather events included storms during the irst half of the year and
subsidence and freeze events in the second half, with the freeze event contributing roughly half of the 32pt
impact. Excluding the impact of the severe weather events, the repoted loss atio was 59.2% (2021: 61.1%).
Releases from prior year loss atios reduced the repoted loss atio by 1.9pts (2021: 3.7pts).
The combined atio of 124.7% (2021: 93.6%) resulted in a net undewriting loss of £13.2 million
(2021: £3.9 million proit), in pat ofset by proit commission and other income of £6.9 million
(2021: £17.4 million), lower than the prior year as a result of the impact of weather events on proit commission.
This resulted in a £6.3 million loss (2021: £21.3 million proit, excluding restructure cost). Excluding the impact
of the weather events, the Household result was a proit of £25.3 million (2021: £25.1 million). The expense atio
was also slightly higher at 33.5% (2021: 30.3%) as a result of investment in technology, including a new claims
management system.
Admial Group plc Annual Repot and Accounts 2022
55
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
International Insuance
“ We are proud of our
performance and look
forward to an even
stronger 2023 as we
work towards our
strategy of building
sustainable, scaled,
and profitable businesses
in the long-term.”
International Insuance
In 2022 we continued to strengthen the business
fundamentals and preseve scale while we weathered
the storm of turbulent market conditions. In each
of our businesses, inlation caused by the tail-wind
efects of the pandemic and the Ukainian-Russian
war, increased costs of repair and replacement,
driving claims severity up throughout the year.
We’re proud that we continued to grow despite new
vehicle shopping declining across Europe in 2022,
thanks in large pat to continued investment in
channel and product diversiication by each business
to sustain value creation for our shareholders.
In Admial Seguros and Conte, intermediay sales
grew to represent 30% and 12% of new business sales
respectively, while in L’olivier efots in improving direct
acquisition contributed to customer growth of 10%.
Loss atio results in Europe are mainly a product
of higher claims severity inlation in each county.
As costs continued to rise throughout the year,
declining or stagnant premiums, especially in Italy,
exacerbated loss atios. This increase in market loss
atios was patially counterbalanced by our prudent
approach that led us to increase prices ahead of the
market. This was in addition to investments in growth
and technology in each of our European businesses.
These elements led to a combined result that is
close to breakeven for European Motor insuance
with a small loss of £1.6 million. We are conident
that the investments we’ve made in Europe in
diversiication, digitisation and infastructure have
set us on the right footing for proitable growth when
market conditions improve and more scale is gained,
paticularly in Fance and Spain.
In the US, we saw the same severity inlation trend
in 2022 as we did in Europe, but to an even greater
extent with, for example, repair costs up a 21% since
2020
25
. The Elephant team has taken seveal actions
to curb adverse loss atio outcomes and protect the
bottom line, including dastic base-ate increases,
reducing exposure to any unproitable footprint and
withdawal from the direct to consumer (expensive)
channel. However, these actions are not immediate
ixes, and thus we see a disappointing result in the
US. We are committed to improving results in the
US in the shot term, and anticipate the actions
taken in 2022 will help alleviate loss atio pressure,
to signiicantly improve the bottom line result in the
near future.
We are proud of the businesses we’ve built
internationally, and the quality of products and
sevice that we ofer customers in those markets,
with seveal industy awards being won by our
businesses. While 2022 was a challenging year,
we believe we’ve set our businesses on the right
footing to deliver long-term value to the Group by
establishing a diversiied set of channels and products,
digitising the customer experience to meet them
where and when they need it, and modernising our
tech-stack to enable eicient scaling.
Costantino Moretti
CEO, International Insuance
25 Data source: CCC; for 2022 data only available YoY up to Q3 2022
Admial Group plc Annual Repot and Accounts 2022
56
Stategic Repot
Pascal
Gonzalvez
CEO,
L’olivier
Fance
Over the last three years, the L’olivier potfolio has
increased by 85%, making us one of the fastest
growing motor insurers in the French market. In the
same period, we also diversiied our products and
deployed an ambitious digitalisation stategy.
L’olivier managed to achieve these results in one
of the toughest market environments in decades,
with car sales dropping to a record low, while high
inlation suddenly reappeared. Add to that a couple
of historical hailstorms, and you get yourself one
vey challenging year, to which L’olivier responded
by taking a protective approach toward margins,
leading to a slightly slower pace of growth.
Our continuous progress in digitisation tanslated
into faster and better sevice for our customers
and increased eiciency. In addition to opeational
excellence, this led us to win, for the second year in a
row, the award for “best customer sevice of the year”
in the non-life insuance categoy
26
and we maintained
a level of Net Promoter Score (NPS)
27
far higher than
market aveage for insuance.
Despite the challenging market environment,
L’olivier’s team has been delivering continuous
improvement and quality to its customers,
which proves its ability to navigate unstable
grounds and keep creating value.
Italy
In 2022 ConTe managed to deliver earned proit
for the ninth year in a row. We ended the year with
973,000 happy customers, resulting in double-digit
growth (+14%).
Sustainable growth is our main objective: in the
second half of the year we aised our prices materially
to protect 2022 proitability and to prepare a robust
baseline for 2023. As a result, we grew, we kept
the loss atio under control and we limited aveage
premium reduction.
Market aveage premium is still under pressure due
to the lower number of new car registations and
lower claims frequency (when compared to pre-Covid).
In this context, we built on the Admial DNA of a
cost-conscious culture – we limited investments in
marketing but were still able to maintain top band
awareness as a result of new TV advetisements and
a patnership with the Italian National football team.
We also continued to improve our digital ofering for
customers which has resulted in improved internal
eiciencies, together with an improved customer
experience where 50% of customers choose to
complete tansactions online. We are the one of the
most appreciated bands among direct insuance
companies – voted best on Google and Trustpilot.
Oveall, we kept a strong culture of focus and cost
control in 2022 but we continued to invest materially
in our long-term stategic objectives: data and
analytics, as well as channel diversiication. All of this
has been possible thanks to our people. We are proud
to have achieved the 4th place in the Great Place to
Work Italy anking, thanks to our innovative, lexible
hybrid model and wellbeing initiatives.
Antonio Bagetta
CEO,
ConTe
26 Awarded by ESCDA (Elu Sevice Client De l’Année) https://escda.fr/
27 Based on analysis by L’obsevatoire des Parcours Clients by PMP
and Skeepers
Admial Group plc Annual Repot and Accounts 2022
57
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
International Insuance
continued
Saah Harris
CEO,
Admial Seguros
Spain
In the context of global uncetainty, the Admial
Seguros team remained focused on a few key things
– we continued growing much faster than the market,
we signed the irst Admial Group bancassuance
agreement with ING in Spain, and we continued
to invest in business tansformation. We were also
proud to be named #2 Best Place to Work in Spain
for our size.
In 2022 our customer base grew 18% in a slow-growth
market driven by our multi-channel stategy and
by better retention and conversion in main sales
channels. Growth was achieved whilst we increased
prices in reaction to higher inlation. In June we signed
a long-term distribution agreement with ING for
auto insuance after a competitive tender process in
Spain. The patnership is a recognition of our excellent
customer experience and capabilities.
As pat of the Admial 2.0 stategy, we continued
to invest in business tansformation. We adopted
Scaled Agile and stated a refresh of key pats of our
technology stack that will be key for our future.
In the meantime, we worked to embed our core loss
atio capabilities into newer channels and continued
to innovate in digital processes to provide a better
customer experience.
Our 2022 actions have required investment which
have impacted the shot-term results for the business,
but we are conident we’ve made the right choices for
long-term value-creation. In 2023 we will continue our
path towards sustainable scale in our motor business.
We strive to do this whilst improving eiciency,
building competitive advantage across all channels,
and fostering a culture that thrives in the hybrid world
and is customer obsessed. We are proud of what we
have achieved so far and excited about what 2023 has
in store.
US
Persistently high claims inlation was the main theme for
the US Auto Insuance Industy during 2022 and greatly
impacted Elephant’s shot term stategic priorities.
As a response to these market challenges, Elephant took
decisive action including substantial base ate increases
(+25% in multiple phases), signiicant reductions in
advetising spend and slowing growth to protect the
bottom line. We are conident these changes are suicient
to ofset the severity trend we’ve seen: Elephant’s relative
base ate increases surpassed many key competitors in
the second half of the year, and the loss atio gap with the
market continues to trend positively.
As Elephant saw the impacts of claims frequency
normalising to near pre-pandemic levels, the business
experienced a record high increase in oveall repair costs
impacting claims severity, increasing 8% versus the
market increase of around 11%
28
. As we wait for the ate
actions to earn through, the 2022 oveall loss to Admial
was £48.9 million
29
.
Elephant’s actions to slow growth as we weather the market
cycle resulted in a 1% reduction in policies in-force since the
irst half of the year. To futher achieve the scale needed
and control the high cost of acquisition, we have focused
our acquisition efots towards higher retaining customers
and expanded distribution towards independent agencies.
Vehicles-per-policy increased from 1.5 to 1.8, helping to
maximize the yield on our marketing spend.
As we move into 2023, we will continue to protect the
bottom line and optimise customer lifetime value and
expect to see our actions become more visible in our
earned results.
While 2022 was a challenging year, Elephant was
recognised on the Forbes list of America’s Best Insuance
Companies 2023. Elephant was one of only 35 carriers out
of 3,300 evaluated to make the list, providing conidence
that the investments we’ve made in seving our
customers over the years haven’t gone unnoticed. This is
cetainly a solid recognition from our customers that our
staf delivers great sevice at evey stage of the policy.
I remain incredibly gateful for their tremendously hard
work, resilience, and positive attitude.
28 Data source: CCC; YoY to Q3 2022
29 Elephant loss – 2022: £48.9 million; 2021: £13.0 million
Albeto
Schiavon
CEO,
Elephant
Admial Group plc Annual Repot and Accounts 2022
58
Stategic Repot
International Insuance inancial peformance
£m 2022 2021 2020 2019
Turnover
*1
795.9 690.3 648.8 623.6
Total premiums written
*1
720.5 623.8 584.0 562.6
Net insuance premium revenue 241.8 221.0 204.2 168.6
Investment income 2.3 0.5 – 1.5
Net insuance claims (220.3) (170.8) (139.3) (137.2)
Net insuance expenses (115.1) (91.7) (78.8) (53.0)
Undewriting result including investment income
*1
(91.3) (41.0) (13.9) (20.1)
Net other revenue 37.5 29.4 22.7 19.2
International Insuance result (53.8) (11.6) 8.8 (0.9)
Key peformance indicators
Repoted Loss atio
*2
80.9% 73.7% 64.3% 76.8%
Expense atio
*2
44.5% 44.8% 43.9% 37.6%
Combined atio
*3
125.4% 118.5% 108.2% 114.4%
Combined atio, net of Other Revenue
*4
110.1% 106.3% 97.9% 103.7%
Vehicles insured at period end 2.04m 1.81m 1.60m 1.42m
*1 Alternative Peformance Measures – refer to the end of this repot for deinition and explanation
*2 Loss atios and expense atios have been adjusted to remove the impact of reinsurer caps so the underlying peformance of the business is tansparent
*3 Combined atio is calculated on Admial’s net share of premiums and excludes other revenue. It excludes the impact of reinsurer caps. Including the impact of
reinsurer caps the repoted combined atio would be 2022: 139%; 2021: 119%; 2020: 107%; 2019: 113%
*4 Combined atio, net of other revenue is calculated on Admial’s net share of premiums and includes Other Revenue. Including the impact of reinsurer caps the
repoted combined atio, net of other revenue would be 2022: 123%; 2021: 107%; 2020: 96%; 2019: 102%
International Motor Insuance – Geogaphical analysis
2022 Spain Italy Fance US Total
Vehicles insured at period end (m) 0.43 0.97 0.40 0.24 2.04
Turnover
*1
(£m) 104.6 227.9 194.9 268.5 795.9
2021 Spain Italy Fance US Total
Vehicles insured at period end (m) 0.37 0.85 0.36 0.23 1.81
Turnover
*1
(£m) 88.5 212.7 175.7 213.4 690.3
*1 Alternative Peformance Measures – refer to the end of this repot for deinition and explanation
Split of International Insuance result
£m 2022 2021 2020 2019
European Motor (1.6) 4.8 15.3 9.0
US Motor (48.9) (13.0) (4.8) (9.6)
Other (3.3) (3.4) (1.7) (0.3)
International Insuance result (53.8) (11.6) 8.8 (0.9)
Admial Group plc Annual Repot and Accounts 2022
59
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
International Insuance
continued
Admial has seveal insuance businesses outside
the UK: Spain (Admial Seguros), Italy (ConTe),
Fance (L’olivier) and the US (Elephant Auto).
The key features of the International Insuance
results are:
• Positive growth tajectoy continued in 2022 within
competitive markets, with customer numbers
increasing by 13% to 2.04 million (2021: 1.81 million)
and combined turnover rising by 15% to
£795.9 million (2021: £690.3 million)
• An aggregate loss of £53.8 million
(2021: £11.6 million loss), consisting of a loss in the
European Motor insuance businesses of £1.6 million
(2021: £4.8 million proit) and a deterioation
in Elephant Auto’s result (increased loss from
£13.0 million to £48.9 million year-on-year)
• A higher combined atio (net of other revenue)
of 110.1% (2021: 106.3%), primarily the result of
a higher repoted loss atio across the European
and US motor businesses driven by higher claims
inlation across all markets as well as premium
pressure in the Spanish and Italian markets
• An investment of £3.3 million (2021: £3.4 million) for
new product development primarily related to the
new French home insuance business and seveal
product tests in Italy
European Motor Insuance
Admial’s European insuance opeations in Spain,
Italy, and Fance insured 1.80 million vehicles at
31 December 2022, 14% more than the previous year
(31 December 2021: 1.58 million). Turnover increased
by 10% to £522.9 million (2021: £474.6 million).
The combined European Motor result relected a net
loss of £1.6 million (2021: £4.8 million), with proitability
in Italy ofset by more challenging outcomes because of
competitive market pressures in Fance and Spain.
The European combined atio net of other revenue
(excluding the impact of reinsurer caps) increased to
104% from 99%, primarily driven by lower aveage
premiums and higher claims inlation. In addition,
these businesses continued to focus on improving
core fundamentals, whilst investing in the future
of the business through expansion into new
diversiication oppotunities and distribution channels,
paticularly the intermediay channel and patnership
oppotunities, to enhance future growth prospects.
ConTe in Italy saw a proitable year with improved
customer retention despite a highly competitive
market resulting in continued premium pressure.
Vehicles insured increased by 14% to 0.97 million
(31 December 2021: 0.85 million), with the business
continuing to invest in growth through innovation
and distribution expansion.
Admial Seguros (Spain) saw continued growth,
with an 18% increase in customer numbers to over
0.43 million (2021: 0.37 million). This was largely
driven by growth in the broker channel and improved
retention, although oveall results were impacted
by strong inlation in the market. The business also
invested in strengthening existing distribution
channels, exploring growth through new patnerships,
and progressing in its agile tansformation.
L’olivier Assuance (Fance) continued to grow strongly
in 2022 and remains one of the fastest growing Motor
insurers in the French market. The customer base
increased by 11% to 0.40 million (2021: 0.36 million).
L’olivier targeted growth via the direct channel
and maintained high customer satisfaction
through continuous digital sevice and eiciency
improvements. The result was negatively impacted
by high inlation and seveal hail events in H1 that
had an estimated £2 million impact.
US Motor Insuance
In the US, Admial undewrites motor insuance in
eight states through its Elephant Auto business.
Elephant insured 0.24m vehicles at the end of 2022,
4% higher than 2021 (2021: 0.23m) and Turnover
increased to £268.5 million (2021: £213.4 million).
The business repoted a higher loss of £48.9 million
(2021: £13.0 million loss) largely due to a surge
in claims severity inlation across the US market.
To mitigate the impact of higher inlation,
Elephant aised base ates materially, by more than
30%, and prioritised higher customer lifetime value
over new sales growth. In paticular, the composition
of the book shifted towards higher quality, multi-
vehicle policies. Targeted expansion in the agency and
patnership channels also provided mechanisms by
which the business can continue to scale eiciently.
Changes in reinsuance agreements from the 2022
undewriting year (primarily driven by capital
eiciency consideations) resulted in a futher increase
in the Admial net share of losses compared to 2021.
Admial Group plc Annual Repot and Accounts 2022
60
Stategic Repot
Admial Money
2022 has been a diicult and complex year for many
businesses in the UK, however it has been a vey
positive and pleasing year for Admial Money. We have
continued our philosophy of safe, eicient growth
and despite all the external economic challenges we
delivered our irst full year proit.
Admial Money plays an increasingly impotant role in
the consumer lending market. Since launching in 2017
we are proud to have provided more than 250,000
customers with over two billion pounds of loans.
Our personal loans and car inance book now stands
at £0.89 billion, our second consecutive year of
45%+ growth and our cost income atio continues
to improve, falling to 49.7% in 2022 (2021: 82%) .
We anticipate this will continue to fall as we approach
scale. We retain a irm focus on prime lending and
are seeing increasing proof that UK customers
are showing a preference for our guaanteed ate
proposition, valuing the cetainty and tansparency it
ofers. Our 2022 NPS score of 71 and Trust Pilot score
of 4.6 is futher evidence our exceptional customer
propositions and sevice commitment is setting us
apat in the consumer lending market.
UK inlation and the subsequent cost of living pressure
it creates has been front of mind since 2021. We made
early decisive moves to increase the hurdles in our
afordability models to ensure that after assessing our
customers, we are lending responsibly, and they can
sustain the loan through any reasonable stress. To date
customer payment peformance remains positive with
low arrears and defaults in line with expectations.
Our irst full year proit of £2.1 million for 2022 is an
impotant milestone for the business. We’ve achieved
this whilst continuing to retain appropriate prudence
in our credit loss provision with coveage of 7.2% on
the book which includes post model adjustments of
£11.3 million.
Progress in building our capabilities in 2022 has been
strong. The continued adoption of open banking
has improved our decision making and onboarding
journey. Enhancing our self-sevice functionality
now results in 80% of customer tansactions being
processed digitally and new machine learning
models are used to suppot decision making across
the business.
We also continued to make pleasing progress on
integating more closely with the UK insuance
business to ofer loans to these customers, with over
50% of our new customer lows from either current
or recent Admial Insuance customers. In addition,
we were again winners of the Moneyfacts Consumer
Awards best car inance provider of the year award.
Looking to 2023, we enter with strong momentum.
We expect to beneit from our strong position in
a growing market as we see a continued shift to
comparison and credit score marketplaces. I expect
to see continued growth in our loan balances
towards the £950 million to £1.1 billion ange during
2023, assuming current economic conditions.
Combined with a tightly controlled cost base,
we should see futher improved economics in the
coming years.
I am optimistic for 2023 and conident in the team’s
ability to execute on our business plan. Admial built
successful businesses by doing the common things
uncommonly well and Admial Money enters 2023 in
good shape to achieve the same success in UK lending.
I’d like to inish by thanking our customers and all of
my colleagues and wish eveyone the best for 2023.
“ We enter 2023 with
strong momentum:
we expect to benefit
from our strong
position in a
growing market.”
Scott Cargill
CEO,
Admial Money
Admial Group plc Annual Repot and Accounts 2022
61
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Admial Money
continued
Admial Money distributes and undewrites unsecured
personal loans and car inance products for UK
consumers through price comparison, credit scoring
applications and direct channels. The proposition is
focused on ofering real ates to provide customers
tansparency and cetainty.
Admial Money recorded a pre-tax proit of £2.1 million
in 2022 (improved from £5.5 million loss in 2021),
the irst full year proit in the histoy of the business.
Gross loan balances grew strongly, up 46%
to £0.89 billion (2021: £0.61 billion), with a
£63.7 million (2021: £50.2 million) credit loss provision,
leading to a net loans balance of £823.7 million
(2021: £556.8 million). This increase in potfolio led to
a 60% increase in net interest income to £44.6 million
(2021: £27.8 million).
Admial Money continued to carefully manage
afordability and credit criteria for new lending in
2022 to relect the higher interest ate and elevated
inlation environment. At the same time interest
ates on new loans were increased to relect the rising
cost of our funding. These measures will help ensure
sustainable inancial peformance into the future.
The credit loss charge increased to £20.6 million
(2021: £10.7 million), driven by the signiicant
increase in the potfolio during the year.
Oveall, an appropriately prudent approach has been
taken to calculating the credit loss provision, including
post model adjustments for cost of living, motgage
increases and forecast uncetainty, relecting the level
of uncetainty in the current economic environment.
For futher information, refer to note 7 in the
inancial statements.
Admial Money is funded through a combination of
internal and external funding sources. The external
funding is secured against cetain loans via tansfer
of the rights to the cash-lows to two special purpose
entities (“SPEs”). During H1 2022 one of the SPEs
was extended, providing funding with improved
terms for the next three years. The securitisation
and subsequent issue of notes via SPEs does not result
in a signiicant tansfer of risk from the Group.
Admial Money Financial Peformance
£m 2022 2021 2020 2019
Net income 58.7 36.6 36.8 30.8
Interest expense
*1
(14.1) (8.8) (10.1) (9.1)
Net interest income 44.6 27.8 26.7 21.7
Other income 0.3 1.1 2.1 1.9
Total income 44.9 28.9 28.8 23.6
Movement in expected credit loss provision and write-of
of Loans (20.6) (10.7) (25.8) (14.3)
Expenses (22.2) (23.7) (16.8) (17.7)
Admial Money proit/(loss) before tax 2.1 (5.5) (13.8) (8.4)
*1 Includes £1.5 million inta-group interest expense (2021: £2.7 million; 2020: £2.9 million; 2019: £2.8 million)
Admial Group plc Annual Repot and Accounts 2022
62
Stategic Repot
Other Group Items
Other Group items inancial review
£m 2022 2021 2020 2019
Share scheme charges, excluding restructure costs (51.7) (63.3) (50.9) (49.0)
Other cental overheads (16.3) (19.8) (22.9) (20.0)
Finance charges
*1
(12.1) (11.4) (12.1) (11.3)
Admial Pioneer (15.6) (10.2) (0.8) –
Other business development costs (10.9) (7.2) (3.3) (9.3)
Other interest and investment return 11.4 4.0 4.9 6.1
Other Group items (95.2) (107.9) (85.1) (83.5)
*1 Share scheme charges exclude restructuring costs of £1.5 million, recognised in 2021
*2 Includes £0.7 million inta-group interest expense (2021: £nil; 2020: £nil; 2019: £nil)
Share scheme charges relate to the Group’s two
employee share schemes (refer to note 9 to the
inancial statements). Charges decreased by
£11.6 million (excluding discontinued opeations)
in 2022, to £51.7 million. This was more in line with
previous years when excluding the elevated level in
2021 which was linked to a higher share price and
higher bonus pay-outs due to higher dividends.
Other cental overheads were lower at £16.3 million
(2021: £19.8 million), and include the cost of a number
of major Group projects such as prepaation for
the signiicant new insuance accounting standard,
IFRS 17 and the development of the internal model.
Finance charges of £12.1 million (2021: £11.4 million)
primarily represent interest on the £200 million
subordinated notes issued in July 2014.
Admial Pioneer, launched in 2020 to focus on new
product diversiication oppotunities, made a loss
of £15.6 million in 2022 (2021: £10.2 million).
The business continued to invest in growing the
Veygo shot term car insuance business, as well
as investing in new products such as tool insuance
in the UK (Toolbox by Admial).
Other business development costs repoted a
higher loss of £10.9 million (2021: £7.2 million),
which included an improved loss from Compare.com
of £2.8 million (2021: loss of £3.5 million) ofset by
increased investments in new ventures.
Other interest and investment income increased
to £11.4 million in 2022 (2021: £4.0 million), as a result
of higher government bond yields and a £4.7 million
gain arising from the sale of government bonds in
the period (2021: nil).
Admial Group plc Annual Repot and Accounts 2022
63
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Group Capital Structure and Financial Position
The Group continues to manage its capital to ensure that all entities are able to continue as going concerns and
that regulated entities comfotably meet regulatoy capital requirements. Surplus capital within subsidiaries is
paid up to the Group holding company in the form of dividends.
The Group’s regulatoy capital is based on the Solvency II Standard Formula, with a capital add-on to relect
recognised limitations in the Standard Formula with respect to Admial’s business, predominantly in respect of
proit commission arangements in co- and reinsuance agreements.
The Group continues to develop its patial internal model to form the basis of future capital requirements.
As previously noted, the expected timescale for formal application has been extended as a result of a decision
by the Board to review cetain aspects of the model. In the interim period before submission, the current capital
add-on basis will continue to be used to calculate the regulatoy capital requirement.
The estimated and unaudited regulatoy Solvency II position for the Group at the date of this repot is as follows:
Group capital position (estimated and unaudited)
Group
2022
£bn
2021
£bn
2020
£bn
Eligible Own Funds (post dividend)
*1
1.20 1.36 1.47
Solvency II capital requirement
*2
0.66 0.70 0.79
Surplus over capital requirement 0.54 0.66 0.68
Solvency atio (post dividend)
*3
180% 195% 187%
*1 2021 own funds included a deduction for the third tanche of the Penguin Potals dividend that was paid alongside the 2022 interim dividend in October 2022
*2 Solvency capital requirement includes updated capital add-on which is subject to regulatoy approval
*3 Solvency atio calculated on a volatility adjusted basis
The Group’s solvency atio remains strong at 180%. The solvency atio reduced by 15 percentage points since
the end of 2021, primarily due to a reduction in Own Funds of approximately £160 million as a result of lower
geneation of economic capital. Widening credit spreads impacted the Own Funds during the irst half of the
year, with the impact patially reversing during the second half.
The Solvency Capital Requirement includes an updated capital add-on which remains subject to regulatoy
approval. The solvency atio based on the previously approved capital add-on, that is calculated at the balance
sheet date ather than the date of this repot, and will be submitted to the regulator within the Q4 Quantitative
Repoting Template (QRT) is as follows:
Regulatoy solvency atio (estimated and unaudited) 2022 2021 2020
Solvency atio as repoted above 180% 195% 187%
Change in valuation date (11%) (5%) (5%)
Other (including impact of updated, unapproved capital add-on) (19%) (9%) 24%
Solvency atio (QRT basis) 150% 181% 206%
The Group’s capital includes £200 million ten year dated subordinated bonds. The ate of interest is ixed at 5.5%
and the bonds mature in July 2024. The bonds qualify as tier two capital under the Solvency II regulatoy regime.
Solvency atio sensitivities (estimated and unaudited)
Estimated sensitivities to the current Group solvency atio are presented in the table below. These sensitivities
cover the two most material risk types, insuance risk and market risk, and within these risks cover the most
signiicant elements of the risk proile. Aside from the catastrophe events, estimated sensitivities have not been
calibated to individual return periods.
2022 2021 2020
UK Motor – incurred loss atio +5% -11% -9% -10%
UK Motor – 1 in 200 catastrophe event -1% -1% -1%
UK Household – 1 in 200 catastrophe event -4% -3% -2%
Interest ate – yield cuve up 100 bps -2% +5% +7%
Interest ate – yield cuve down 100 bps +2% -5% -7%
Credit spreads widen 100 bps -9% -9% -6%
Currency – 25% adverse movement in euro and US dollar vs sterling -3% -3% -3%
ASHE – long-term inlation assumption up 0.5% -3% -5% -3%
Loans – severe peak unemployment scenario
*1
-1% -1% -1%
*1 Refer to note 7 to the inancial statements for futher information on the ‘severe’ scenario
Admial Group plc Annual Repot and Accounts 2022
64
Stategic Repot
The change in interest ate sensitivity relects both the Group’s continued focus on asset liability matching
and the change in impact of interest ate movements on the solvency capital requirement in higher
yield environments.
Taxation
The tax charge repoted in the consolidated income statement is £97.2 million (2021: £130.2 million), equating to
20.7% of pre-tax proit (2021: 18.2%). The increase in the efective tax charge is primarily the result of the higher
loss in the US insuance business for which no deferred tax asset is recognised.
Investments and cash
Investment stategy
Admial Group’s investment stategy focuses on capital presevation and low volatility of returns. The business
follows an asset liability matching stategy to control interest ate, inlation and currency risk. A prudent level of
liquidity is held and the investment potfolio has a high-quality credit proile. In 2022, the focus remained on asset
liability matching, and lows were invested into high quality assets to take advantage of rising risk-free ates,
whilst being cautious on the credit outlook. The Group holds a ange of government bonds, corpoate bonds,
alternative and private credit assets, alongside liquid holdings in cash and money market funds.
In line with our investment approach, the aim is to reduce the Environmental, Social, and Governance (ESG)
related risks in our potfolio whilst continuing to achieve sustainable long-term returns. In 2022, the potfolio
weighted aveage ESG score had an MSCI A ating.
Investment income
£m 2022 2021 2020
Investment return 64.6 46.9 47.8
Movement on accruals held for insurer funds withheld (20.0) (1.6) 12.9
Movement in provision for expected credit losses 1.8 (2.6) (7.8)
Total 46.4 42.7 52.9
Net investment income for 2022 was £46.4 million (2021: £42.7 million). Investment income in 2022 was
adversely impacted by investment income adjustments related to UK motor quota share reinsuance
arangements of £20.0 million (2021: £1.6 million). Provisions for expected credit losses developed favouably,
leading to a £1.8 million release of provisions (2021: £2.6 million adverse impact).
The investment return on the Group’s investment potfolio (excluding unrealised gains and losses, the release
of the investment income accruals held in relation to reinsuance contacts and the movement in provision for
expected credit losses) was £64.6 million in H1 2022 (compared to £46.9 million in 2021). The annualised ate
of return was higher at 1.6% (2021: 1.1%), mainly as a result of higher reinvestment yields as interest ates rose
throughout the year.
The increase in yields and widening of credit spreads in 2022 resulted in a reduction in the market value of the
potfolio of £255.6 million (2021: £50.1 million reduction). That movement is relected in the statement of other
comprehensive income.
The Group continues to geneate signiicant amounts of cash and its capital-eicient business model enables
the distribution of the majority of post-tax proits as dividends. Total cash and investments at 31 December 2022
was £3,705.8 million (31 December 2021: £4,115.3 million), the lower balance at the end of the current period
relecting the market value reduction noted above as well as the payment of the inal tanche of the Penguin
Potals disposal proceeds to shareholders.
Cash and investments analysis
£m 2022 2021 2020
Fixed income and debt securities 2,372.7 2,594.3 2,101.3
Money market funds and other fair value instruments 934.7 1,063.0 1,339.3
Cash deposits 101.4 85.3 65.4
Cash 297.0 372.7 351.7
Total
*1
3,705.8 4,115.3 3,857.7
*1 Total Cash and Investments include £198.2 million (2021: £147.0 million; 2020: £74.8 million) of Level 3 investments. Refer to note 6e in the inancial statements
for futher information
Admial Group plc Annual Repot and Accounts 2022
65
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Group Capital Structure and Financial Position
continued
Cash low
£m 2022 2021 2020
Opeating cash low, before movements in investments 367.3 637.8 959.8
Tansfers to inancial investments 189.0 (266.5) (176.0)
Opeating cash low 556.3 371.3 783.8
Tax payments (91.2) (126.7) (175.0)
Investing cash lows (capital expenditure) (101.0) (69.2) (43.1)
Financing cash lows (692.8) (750.7) (454.3)
Loans funding through special purpose entity 267.8 185.9 (46.2)
Net contributions from non-controlling interests – – 2.4
Foreign currency tanslation impact (14.8) (5.3) 2.4
Net proceeds from sale of Comparison entities – 457.0 –
Cash included in the disposal of Comparison entities – (41.3) –
Net cash movement (75.7) 21.0 70.0
Unrealised (losses)/gains on investments (255.6) (47.3) 40.7
Movement in accrued interest 113.2 17.4 54.8
Net increase in cash and inancial investments (407.1) 257.6 341.5
The main items contributing to the opeating cash inlow are as follows:
£m 2022 2021 2020
Proit after tax 371.8 996.7 527.8
Change in net insuance liabilities 39.6 40.8 94.8
Net change in tade receivables and liabilities 68.2 (65.3) 65.3
Change in loans and advances to customers (280.6) (205.2) 77.3
Non-cash income statement items 71.1 (261.7) 84.8
Taxation expense 97.2 132.5 109.8
Opeating cash low, before movements in investments 367.3 637.8 959.8
The net decrease in cash and investments in the year is £407.1 million (2021: £257.6 million increase).
The main drivers include the unrealised losses on investments as a result of interest ate and credit spread
movements as noted above, and dividend payments to shareholders (including the two inal tanches of the
Penguin Potals special dividend).
Co-insuance and reinsuance
Admial makes signiicant use of propotional risk sharing agreements, where insurers outside the Group
undewrite a majority of the risk geneated, either through co-insuance or quota share reinsuance contacts.
These arangements include proit commission terms which allow Admial to retain a signiicant potion of
the proit geneated.
Although the primay focus and disclosure is in relation to the UK Motor insuance book, similar longer-term
arangements are in place in the Group’s international insuance opeations and the UK Household and
Van businesses.
UK Motor Insuance
Munich Re and its subsidiay entity, Great Lakes, currently undewrites 40% of the UK Motor business.
From 2022, 20% of this total is on a co-insuance basis (via Great Lakes) and will extend to 2029. The remaining
20% is on a quota share reinsuance basis and these arangements now extend to 2026.
The Group also has other quota share reinsuance arangements conirmed to at least 2024, covering 38% of
the business written.
The nature of the co-insuance propotion undewritten by Munich Re (via Great Lakes) in the UK is such that
20% of all Motor premium and claims for the 2022 year accrue directly to Great Lakes and are not relected
in the Group’s inancial statements. Similarly, Great Lakes reimburses the Group for its propotional share of
expenses incurred in acquiring and administering this business.
Admial Group plc Annual Repot and Accounts 2022
66
Stategic Repot
The quota share reinsuance arangements result in all Motor premiums, claims and expenses that are ceded to
reinsurers being included in the Group’s inancial statements. These quota share agreements opeate on a funds
withheld basis and include cetain features such as expense caps and an allocation of investment income earned
on the funds held by Admial on behalf of the reinsurers. These features result in higher proit commission should
the undewriting year reach proitability.
Admial tends to commute its UK Car Insuance quota share reinsuance contacts 36 months after inception
of an undewriting year, assuming there is suicient conidence in the proitability of the business covered by
the reinsuance contact.
After an undewriting year is commuted, movements in inancial statement loss atios result in reseve releases
(or strengthening if the loss atios were to increase) ather than reduced or increased proit commission.
During the irst half of 2022, just over half of the quota share reinsuance covering the 2020 undewriting
year was commuted. The majority of quota share reinsuance covering 2019 and prior undewriting years was
commuted prior to the stat of this half year period.
Refer to note 5d(v) of the inancial statements for futher analysis of reseve releases on business originally
reinsured but subsequently commuted.
UK Household Insuance
The Group’s Household business is suppoted by long-term propotional reinsuance arangements covering
70% of the risk, that run to at least 2024. In addition, the Group has non-propotional reinsuance to cover the
risk of catastrophes stemming from weather events.
International Car Insuance
In both 2021 and 2022 Admial retained 35% (Italy), 30% (Fance) and 30% (Spain) of the undewriting risk
in each county respectively. In the USA, 40% (2021: 45%) of the risk was retained within the Group.
Excess of loss reinsuance
The Group also purchases excess of loss reinsuance to provide protection against large claims and reviews
this cover annually. The excess of loss cover remained similar to prior years with cover stating at £10 million.
Rates increased within the context of increasing market ates as a result of higher inlation. The household
insuance book excess of loss reinsuance also saw an increase in ates, for the same relative level of cover.
Proit commission
Admial is potentially able to earn material amounts of proit commission revenue from co- and
reinsuance patners, depending on the proitability of the insuance business undewritten by the patner.
Revenue is recognised in the income statement in line with the inancial statement loss atios on Admial’s
retained undewriting.
Note 5c to the inancial statements analyses proit commission income by business, type of contact and by
undewriting year.
Principal Risks and Uncetainties
The Group’s 2022 Annual Repot will contain an analysis of the Principal Risks and Uncetainties identiied by
the Group’s Enterprise Risk Management Famework, along with the impacts of those risks and actions taken
to mitigate them.
Disclaimer on foward-looking statements
Cetain statements made in this announcement are foward-looking statements. Such statements are based
on current expectations and assumptions and are subject to a number of known and unknown risks and
uncetainties that may cause actual events or results to difer materially from any expected future events or
results expressed or implied in these foward-looking statements.
Persons receiving this announcement should not place undue reliance on foward-looking statements.
Unless othewise required by applicable law, regulation or accounting standard, the Group does not undetake to
update or revise any foward-looking statements, whether as a result of new information, future developments
or othewise.
Admial Group plc Annual Repot and Accounts 2022
67
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Creating Sustainable Value for our Stakeholders
Admial’s purpose famework
tanslates our purpose into action
and shows how we plan on living by
our purpose statement – including
what that statement means to not
only our people but our company,
our business, and our society.
Our sustainability approach builds on
our purpose famework and targets
four key areas – Customers, People,
Business, and Society – with defined
ambitions for each of these:
• People: Be one of the best places to work in
the world
• Customer: Provide great customer experiences
• Business: Build successful businesses with
opeational resilience
• Society: Make a diference through a positive
impact on society
Materiality assessment
In order to capture and address the ESG issues that
matter most to our business and stakeholders we
an a materiality assessment in 2021. The outcome
of the materiality assessment currently drives
our sustainability approach as well as other key
business initiatives and decisions. We acknowledge
that these ankings will likely change over time
and we will look to conduct futher materiality
assessments in the future.
For futher detail on
the methodology
behind our materiality
assessment please
see Admial’s 2022
Sustainability Repot
You can read more
in our Section 172
statement (stating on
page 112) to see how
these priorities feed
into our stategy and
reinforce our purpose
Our purpose is embedded into the purpose famework
Our purpose
Great customer
experiences
Provide great
customer experiences
A great place
to work
Be one of the best places
to work in the world
Positive impact
on society
Make a diference through a
positive impact on society
Successful
business
Build successful businesses
with opeational resilience
Our results revealed the following priorities:
Focus Area Stakeholder Our impact
Risk governance and business resilience Business
Read more on page 114
Talent Acquisition & Development People
Read more on page 77
Great Sevice Customer
Read more on page 74
Educational Oppotunities Society
Read more on page 87
Long-term shareholder value Business
Read more on page 85
Product Quality Customer
Read more on page 74
Eco-friendly products Business/Society
Read more on page 91
Impact of opeations on climate change Society
Read more on page 87
Employability and social mobility Society
Read more on page 87
Diversity & Inclusion People
Read more on page 80
Admial Group plc Annual Repot and Accounts 2022
68
Stategic Repot
“ The outcome of the
materiality assessment
currently drives our
sustainability approach
as well as other key
business initiatives
and decisions.”
Our purpose is embedded into the purpose famework
Materiality matrix
Aggregated across all suvey responses, workshops, management discussions and SWG feedback
People* Customer Society (Community and Environment) Business
Stakeholder key
Manage FocusMonitor
Community
Health and
Wellbeing
Homelessness
and housing
Spots, ats
and culture
External efots
to ight climate
change
Strong ethical
patnerships
Long-term
shareholder
value
Governance and
business resilience
Talent acquisition
and development*
Diversity
and Inclusion*
Investing
responsibly
Smat, green
and safe mobility
People
engagement*
People, health
and wellbeing*
Fair and
afordable
price
Product
quality
Innovation
Great sevice
Impact of opeations
on climate change
Eco-friendly
products
Educational
oppotunities
Employability and
social mobility
Financial inclusion
Executive
Remuneation
* Actively monitored and maintained as pat of our culture
Admial impact
Impotance of stakeholders
Admial Group plc Annual Repot and Accounts 2022
69
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Admial’s alignment with the United Nations’ Sustainable Development Goals
The Sustainable Development Goals (SDGs) are a set of 17 global goals developed by the United Nations, which deine global priorities
and aspiations for 2030. The goals aim to address major societal and environmental concerns. The most relevant goals where we believe
Admial contributes are listed for each of our stakeholders below.
Goal 8:
Decent Work and Economic Growth
Target (8.2): Achieve higher levels of economic productivity
through diversiication, technological upgading
and innovation.
Target (8.3): Promote development-oriented policies
that suppot productive activities, decent job creation,
entrepreneurship, creativity and innovation, and encouage
growth of micro-, small- and medium-sized enterprises,
including through access to inancial sevices.
Admial’s contribution
• Tansfer core strengths from UK Motor business
into new ventures, such as Admial Money
and Pioneer
• Leveage historical data and experience to test and
learn in new markets and develop products which
suppot economic development
• Provide insuance cover to both fully electric and
hybrid vehicles
• Telematics ofering both incentivises and suppots
safer driving pactices for our customers
Goal 11:
Sustainable Cities and Communities
Target (11.2): Provide access to safe, afordable,
accessible, and sustainable tanspot systems for all.
Creating Sustainable Value for our Stakeholders
continued
Customers
People
Goal 3:
Good Health and Wellbeing
Target (3.4): Promote mental health and wellbeing.
Admial’s contribution
• Ranked Best Big Company for Wellbeing in the UK
in recognition of our employee suppot initiatives
• Long standing gaduate tainee progamme
• Fully gender balanced Group Board
30
• Launched an international mentoring progamme,
Get Discovered, to develop and empower high
potential women across the organisation
Goal 4:
Quality Education
Target (4.4): Increase the number of youths and adults who
have relevant skills, including technical and vocational skills,
for employment, decent jobs, and entrepreneurship.
Goal 5:
Gender Equality
Target (5.5): Ensure women’s full and efective paticipation
and equal oppotunities for leadership at all levels of
decision making in political, economic, and public life.
30 As of 31 December 2022
Admial Group plc Annual Repot and Accounts 2022
70
Stategic Repot
Goal 8:
Decent Work and Economic Growth
Target (8.6): Substantially reduce the propotion of youth
not in employment, education or taining.
Admial’s contribution
• Our Community Stategy ‘Together for Better’
is – committed to tansforming futures in our
local communities
• Established patnerships with Geneation to help
people obtain access to life-changing careers.
• Committed to net zero emissions by 2040 and
cutting emissions in half by 2030
• Launched climate positive employee engagement
progamme to educate and enable colleagues to
suppot our net zero commitments
• Celebated Black Histoy Month to relect on
the diverse histories of people of African and
Caribbean descent
Goal 10:
Reduced Inequalities
Target (10.2): Empower and promote the social, economic,
and political inclusion of all, irrespective of age, sex, disability,
ace, ethnicity, origin, religion or economic or other status.
Goal 13:
Climate Action
Target (13.3): Improve education, awareness-aising and
human and institutional capacity on climate change
mitigation, adaptation, impact reduction and early warning.
Goal 12:
Responsible Consumption and Production
Target (12.6): Encouage companies, especially large
and tansnational companies, to adopt sustainable
pactices and integate sustainability information into
their repoting cycle.
Admial’s contribution
• Actively engaged with ESG ating providers and
integated feedback into our sustainability disclosure
• Repoting against the Sustainability Accounting
Standards Board (SASB) standards
• Aligned disclosure with all recommendations
under the Task Force on Climate-Related Financial
Disclosure (TCFD) famework
• Received external veriication of carbon emissions
data and aiming to set Science-Based Targets
Society
Business
Admial Group plc Annual Repot and Accounts 2022
71
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Creating Sustainable Value for our Stakeholders
continued
Sustainability Working Group: A Sustainability
Working Group was established in 2020 to help
identify, monitor and facilitate the implementation
of sustainability ambitions across Group opeations.
The working group suppots the Group Board
and Admial’s executive leadership team to
ensure adequate oversight is in place around
sustainability-related decision-making. This includes
monitoring the latest market developments around
ESG, suppoting subsidiay entities with their
sustainability commitments, and sharing best pactice
ESG management.
In 2021, sustainability champions were appointed
from across the business to own the ESG ambitions
disclosed in this repot. Each champion repots
progress against these ambitions directly to the
Sustainability Working Group.
Climate Change Steering Group: Given the impact of
climate change and the increased focus the area has
received in recent years, a subcommittee dedicated
to climate change was created in 2021. The Climate
Change Steering group repots directly to the
Sustainability Working Group.
Forums & Ministries: Seveal internal forums and
Ministries exist across the business to uphold the
pillars of our culture and monitor areas related
to sustainability such as employee diversity,
happiness and wellbeing. For example, the Diversity
and Inclusion forum consists of six working groups
and drives Diversity and Inclusion initiatives across
the Group. Seveal ministries such as the ministy of
fun and the ministy of health organise regular events
to keep colleagues happy and engaged.
Sustainability Governance
Group Board: The Admial Group Board is responsible
for promoting the long-term sustainable success of
the Group and is its principal decision-making forum.
It is the principal governing body for sustainability-
related issues and takes ownership of sustainability
and climate-related topics and associated stakeholder
engagement. The Board approves our Environment,
Social and Governance (ESG) ambitions which can have
a material impact on Admial. Milena Mondini, Group
CEO, is the appointed Sustainability representative on
the Group Board.
Board Committees: The Board has delegated
authority to seveal permanent Committees that deal
with sustainability related matters where relevant
and matters in accordance with written Terms of
Reference. The principal Committees of the Board
– Audit, Remuneation, Group Risk and Nomination
and Governance play an impotant role in the Group’s
sustainability related decision-making processes.
For example, the Group Risk committee oversees
the management of climate-related risk and ensures
appropriate oversight is in place.
To see the Group
Governance
Structure,
and all Board
Committees
please turn to
page 126
Admial Group plc Annual Repot and Accounts 2022
72
Stategic Repot
31 The use by Admial Group of any MSCI ESG research LLC or its ailiates (“MSCI”) data, and the use of MSCI logos, tademarks, sevice marks or index names
herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Admial Group by MSCI. MSCI sevices and data re the propety of MSCI
or its information providers, and are provided ‘as-is’ and without waranty. MSCI names and logos are tademarks or sevice marks of MSCI
31 Members of the Sustainability Working Group are reviewing the drivers behind our lower CDP score in 2022 and putting in place a plan of action to improve
peformance going fowards
32 Copyright ©2022 Sustainalytics. All rights reseved. This repot contains information developed by Sustainalytics (www.sustainalytics.com). Such information
and data are proprietay of Sustainalytics and/or its third paty suppliers (Third Paty Data) and are provided for informational purposes only. They do not
constitute an endorsement of any product or project, nor an investment advice and are not waranted to be complete, timely, accuate or suitable for
a paticular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers
33 A decile ank of 1 indicates high relative peformance versus a decile ank of 10 which indicates poor relative peformance
34 Improved result (a higher mark indicates stronger peformance against the Dow Jones Sustainability Index scoring requirements)
MSCI
MSCI ESG ating assessment
31
• 2022: AA
• 2021: A
ISS ESG
ISS ESG peformance
• 2022: C-
• 2021: C-
• 4th Industy decile ank (2021: 4th)
33
Dow Jones
Dow Jones Sustainability Index
• 2022: 48/100
34
• 2021: 37/100
Totoise
Totoise Responsibility100 index
• 2022: 63rd out of 100
• 2021: 21st out of 100
CDP
CDP Climate Score
31
• 2022: D
• 2021: C
Sustainalytics
Sustainalytics ESG Risk Rating
32
• 2022: 21.0
• 2021: 22.3
• 21st percentile subindusty anking (2021: 8th)
2022 ESG ating
DISCLOSURE I NSIGHT ACTION
Admial Group plc Annual Repot and Accounts 2022
73
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Why they matter to us stategically, and how
they inluence the opeation of the business
Customers are at the heat of our business,
and eveything that we do. As a customer-centric
organisation, we seek to provide more people with the
oppotunity to access good inancial sevices products.
The needs of our customers shape the products we
deliver, and their feedback and expectations feed into
the design of our channels and platforms.
In 2022, we assessed our customer-centric stategy
and opeational culture to ensure that the business
was well aligned with best pactice recommendations.
Our assessment provides conidence that we have
efective pactices and monitoring in place to suppot
excellent customer sevice, as well as signiicant
resources dedicated to taining customer facing
employees across the business.
What matters to our customers, and
encouages them to maintain a relationship
with Admial
Considering seveal inluences, including the latest
regulatoy guidance, we believe that key factors that
are impotant to our customers include:
• Great sevice
• Fair, afordable pricing
• Good quality products
• Accessible products and channels
• A resilient business
How we engage to conirm what matters
to our customers
There are oppotunities for us to communicate
and engage with our customers, and vice versa,
throughout the diferent points in the customer life
cycle. Some of these mechanisms include:
• Discussions with our; customer sevice teams,
new business and renewals teams, our claims teams,
and our complaints teams
• Online customer potals
• Live chats with agents
• Social media
• Admial App messages
• Customer feedback (comment forms, suveys, SMS)
• Customer focus groups
• Perception studies
Frequently reviewing the engagement mechanisms
across our customer experiences, paticularly
throughout digital journeys, allows us to understand
what is most impotant to our customers and helps us
to continually reine and improve our sevice.
Board oversight, taining, and escalation
The Board continues to receive updates from
Management on the treatment of existing customers
and the various processes that are designed to ensure
fair outcomes throughout the customer journey.
Customer satisfaction levels and employee feedback
is fed into Board discussions which ultimately shapes
stategic decision making, including plans related
to digital investment and future diversiication.
The Board also receives annual feedback on the
Conduct Risk famework through the Group
Risk Committee.
During 2022, the Board also spent signiicant time
reviewing seveal actions that were implemented
in 2021 in response to the FCA’s pricing remedies,
including but not limited to;
• Ensuring that renewing home and motor insuance
consumers are quoted prices that are no more than
they would be quoted as a new customer through
the same channel
• Make it simpler for customers to stop automatic
renewals if they wish to do so
• Ensuring that we deliver fair value on all
insuance products
• Updating and enhancing the model used to
estimate the savings arising from the whiplash
reforms, introduced by the UK government on
May 31, 2021
Creating Sustainable Value for our Stakeholders
continued
Our Customers
Admial Group plc Annual Repot and Accounts 2022
74
Stategic Repot
35 A subsidiay NED of EUI Limited, the entity considered as
‘The Firm’ by the FCA Regulatoy Authority
• Preparing and enhancing opeations in anticipation
of the new Consumer Principle from the FCA,
that requires irms to act to deliver good outcomes
for all retail customers
• Approval of the Consumer Duty
Implementation plan
• Appointment of an Independent Director as
Consumer Duty Champion during Q3
35
The Board also received updates on (i) the progress
to deliver the technology and digital stategies,
which have a direct impact on the improvements
made to customer journeys, and (ii) information
security and cyber risk, including crisis management,
both from a customer and reputational
impact perspective.
What value do we create for our customers?
In 2022, Admial delivered numerous changes
impacting customers for the better. Some examples
of the value delivered to our customers include:
• Improved Claims System for UK Motor
Customers (NEO)
+ Read more on page 29
• We added our Multicar proposition to
PCW platforms
+ Read more on page 76
• We suppoted UK and French Household customers
impacted by loods
+ Read more on page 9
• We launched a new loans product, ConTe Prestiti,
in Italy in Q3
+ Read more on page 150
• We launched Admial Pet
+ Read more on page 32
Increased focus on Net Promoter Score (NPS)
We commit to providing excellent and eicient
customer sevice, and to improving our oferings with
customer feedback. We use NPS to measure and drive
peformance across the Group.
Although NPS was already a key metric for Admial,
the oppotunity was taken during 2022 to increase
measurement of NPS, whilst aligning business
leaders and delivering company-wide taining on the
impotance of recording and tacking scores.
Continued delivey of fair and afordably
priced products
During 2022, Admial has continued to ofer fair and
afordable pricing, and we continued to evolve our
understanding of customers’ needs to aid product
design (e.g., Admial Essentials, and lexible shot-term
cover provided by Veygo).
What are the risks and oppotunities that
could afect the relationship and, therefore,
Admial’s success?
Ahead of 2022, Admial recognised that the
implementation of the FCA’s pricing remedies would
afect geneal insuance customers on a market-wide
basis, and subsequently anticipated the changes
required before the regulation came into force in
Q1. As the year developed, the Board also stated
to prepare for the FCA ‘Consumer Duty’ (‘The Duty’)
regulation, and to plan for futher enhancements to
business pactices. As pat of the process, the Board
recognised the need to embed a customer-centric
culture at all levels, to suppot adapting processes
and procedures ‘to do the right thing.’
Whilst the Board and Management were conident
that the existing Admial culture was well aligned to
suppot this objective, in 2022 the Board asked the
business to develop a series of high-level principles
for employees to anchor their day-to-day actions to,
when dealing with customers.
Careful consideation was given to ensure that an
appropriate ‘tone from the top’ was agreed upon,
both at Admial Group Board and EUI Board.
36
The Executive management team and the Board
continued to obseve progress of stategy in
anticipation of implementation throughout the year.
Admial also continues to explore oppotunities to
provide customers with additional, innovative products.
In 2022, our international businesses continued to grow,
and launched additional products to help more people
look after their future.
How we monitor the impact of our actions
and the strength of our relationship
The following metrics are some of the main tools
we use to assess the impact of our actions and the
strength of our relationship with our customers:
• Net Promotor Scores (NPS) scores
• Customer satisfaction scores
• Complaint ates
• Feedback and insight relating to products and
sevices from all customer-facing teams
• Policy acquisition and renewal ates
• Activity levels on the MyAccount Potal
• Call volumes, and call answer ates
• Ombudsman feedback
• Social media
Futher
information is
located on pages
28 to 30 of the
Stategic Repot
36 EUI Limited is a fully owned subsidiay of Admial Group Plc. EUI Limited is
an insuance intermediay with employees across the UK, India, and Canada
Admial Group plc Annual Repot and Accounts 2022
75
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Creating Sustainable Value for our Stakeholders
continued
ABI throughout the consultation and implementation
period and successfully tansitioned its pricing
pactices at the stat of the year.
Additionally, new Consumer Duty regulation was
inalised in 2022 and will come into force in July 2023.
To prepare, Admial has put in place the necessay
famework to continue to ensure we deliver valued
products and sevices for customers in terms of
pricing, tansparency, and suppot. We are conident
that we create value for customers through the
products and sevices we sell. We also consistently
review our activities through a Consumer Duty
lens and will continue to enhance our monitoring,
governance, and management information (MI)
requirements in 2023.
Satisied customers
We regularly measure customer satisfaction across
seveal key benchmarks, allowing us to stay close to
customers’ needs and understand areas where our
sevice fails to meet expectations. With emphasis
on creating a more seamless experience, customers
that speak to us via webchat can now experience
an efotless secure card payment method with the
use of Semafone. The new tool opens a channel
for customers to tansact and engage with us,
improving the customer journey. The use of Semafone
also suppots those in our vulneable customer base
who may struggle to give card payment information
over the phone; having this function on Webchat
allows customers to ask for suppot instantly.
Fair and tansparent claims outcomes
As an insurer, we are committed to providing
appropriate claims pactices that deliver fair and
just outcomes for customers in a timely manner.
Over the last three years, signiicant work has been
put in to develop our new claims system: Guidewire
Claims Centre (GWCC). The new system provides
more tansparent and eicient customer experience;
it ofers better data insight and gives customers
more choice and lexibility on how they inteact
with Admial. GWCC was originally introduced into
our Household Claims function in 2021 and then
successfully rolled out to Motor Claims in 2022.
Simple and clear communication
We aim to create simple insuance products which
are easily understood and accessible to all. In 2022,
we continued to strengthen our digital sevices.
For example, we’ve rolled out a new self-install
telematics device that customers can link to their
Admial app. Through it, customers can easily access
feedback on their driving behaviour and see how they
can improve. This encouages safer driving on our
roads which beneits eveyone, and for customers it
improves the customer experience and helps bring
their premiums down.
Responsible sales
We comply with all relevant regulatoy requirements
and actively review our pactices to ensure all
processes and systems opeate in line with relevant
policies. Notable in 2022 was the introduction of the
Geneal Insuance Pricing Pactices (GIPP) in the UK.
The new pricing rules require that renewing Motor and
Home insuance buyers are quoted prices that do not
exceed what they would have paid as a new customer.
Admial regularly communicated with the FCA and the
Our sustainability ambition:
We strive to provide great
customer experiences
Launch of MultiCar
on price comparison
We made our MultiCar product proposition
available via the price comparison channel
for the first time this year. We believe this is
an exciting oppotunity to grow our popular
MultiCover offering as it allows us to give
customers a MultiCover price much earlier in
their shopping journey. Admial is the first of
any insuance company to offer this in the UK.
The idea to launch MultiCover online came from one of our
internal innovate competitions where colleagues across
the business pitch ideas to senior management and make
a proposal on how it could work for our customers. The idea
was so successful it was picked up by a project team and
subsequently put into pactice. We are currently trialling
MultiCar on Confused.com and will continue to monitor
progress into 2023. This will give us the chance to understand
our customer needs and behaviours and if successful we will
look to test on other price comparison sites and with other
products – watch this space!
Admial Group plc Annual Repot and Accounts 2022
76
Stategic Repot
Why our people matter to us stategically
and how they inluence the opeation of
the business
We believe that people who like what they do, do it
better. We strive to do better evey day because we
like what we do, and we want to help more people to
look after their future. This attitude enables our test-
and-learn culture, suppots opeational excellence,
fosters happier and more productive employees,
and ultimately shapes better outcomes for our
customers and other stakeholders.
What matters to our people, and encouages
them to maintain a relationship with Admial
Our people want a friendly, fun, and productive
workplace where they are engaged, and where their
views are valued and considered. Hybrid working and
health and wellbeing continue to be key priorities for
all businesses around the Group.
We consider the priorities of our people to be:
• Talent acquisition and development, with fair and
equal oppotunities available to all
• Reward and recognition, including long-term
shareholder value (inc. the employee share scheme)
• Health and wellbeing, both physically and mentally
• The oppotunity to build and maintain a work life
balance whilst remining engaged and included by
the business
• Flexible and remote working, and freedom to
provide inputs into working hours and places
of work
How we engage to conirm what matters
to our people
Our people are encouaged to engage across multiple
channels, vitually and face-to-face. We also engage via:
• 1:1s with managers
• Polls
• Blogs
• Chat Logs
• Colleague suveys
• Employee Consultation Group (ECG) meetings
• Feedback schemes such as ‘Ask Milena’ and
‘Have your say’
• Paticipation in the Great Place to Work suvey
• Exit inteviews
• Grievances
• Whistleblowing channels
• Friendly Forums
+ See more on page 81
Board oversight, taining, and escalation
The Board receives updates on Diversity and Inclusion,
people, and culture which all relect the permanent
move to a hybrid working model. The Board also
receives updates relating to ECG meetings in the UK
and international businesses, Group health and safety
and whistleblowing.
The Group CEO and CFO host our Staf Geneal Meeting
(SGM) (which allows for questions to be aised to them
as representatives of the Board), and host numerous
forums with our people. Our employee AGM took place
in hybrid form during 2022, and feedback suggested
that it was a useful format for management to share
information with employees, in a fun and engaging way.
Additionally, our Non-Executive Directors attend
ECG meetings on a rotational basis and repot back
to Board. In 2022, the Board Chair and other Non-
Executive Directors made vitual and in-person
visits to diferent business depatments and
overseas locations.
What value do we create for our people?
• We improved our reward package for employees
and responded to the cost-of living crisis
+ Read more on page 148
• We launched new Admial taining progammes to
ensure and encouage our people to engage with
our purpose
+ Read more on page 79
• We upgaded our learning and development
scheme, launched a new progamme,
Get Discovered, and made LinkedIn Learning
available to all colleagues
+ Read more on page 81, 165
Our People
Admial Group plc Annual Repot and Accounts 2022
77
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
• We extended our health initiatives (men and
women’s health) and we upgaded our paternity
and maternity policies
+ Read more on page 81
• We continued to encouage our teams to host team
building events, suppoted by our Ministy of Fun
+ Read more on page 10
• We suppoted Purple Light Up – a global movement
that celebates and daws attention to the
economic contribution of the 386 million disabled
employees around the world
+ Read more below
Diversity and Inclusion
Admial provides a working environment in which
Diversity and Inclusion is embaced, and promotes
a comprehensive Diversity and Inclusion approach
across the Group.
Our Diversity and Inclusion stategy suppots our
ability to attact, engage, develop, and retain diverse
talent. Employee led working groups include:
• Gender Equality – This group is tasked with
aising awareness on issues surrounding gender;
and to continue to suppot staf and promote an
inclusive culture
• Ethnicity and Culture – This group suppots
us becoming a more ethnically diverse and
inclusive company through awareness, discussion,
and improving the work environment
• Ty Rainbow LGBTQ+ – This team promote a safe
and inclusive environment to suppot LGBTQ+
staf and customers, as well as providing a social
suppot network
• Age – This group focus on understanding the needs
of our employees including issues and needs of
people at work in various age anges from 16–30,
30–50 and 50+
• Disability – This team promote a safe and
healthy environment for all our team members,
aise awareness, and suppot inclusion within
the community
• Social Mobility – This working group aims to ensure
that regardless of background, eveyone can fulil
their potential and is able to progress their careers
Working groups consist of volunteers across the
business from a variety of roles and experience.
There are around 60 members in total. Each working
group meets evey 4–8 weeks.
We check that our culture continues to relect suppot
for Diversity and Inclusion through seveal feedback
mechanisms, including:
• Feedback from the Employee Consultation Group
• Great Place to Work suvey results
• Pulse suvey results
• Exit inteviews
• An engaging and diverse events calendar
Examples of initiatives that reinforce our culture are:
• Paticipation and awareness of our ‘#IBelong’ series
• Sponsoring Pride (Headline Sponsors for 22 years)
• Celebating Black Histoy Month
• Promoting ‘Purple Light Up’ and celebating the
economic contribution of disabled employees
In 2022, Admial was placed 26 out of 850 workplaces
in Europe as a Diversity Leader, by the Financial Times,
as well as being named 3rd Best Workplace for Women
in the UK by the Great Place to Work.
Futher
information on
our Diversity
and Inclusion
activities can be
found on pages
80, 158
Futher
information on
our awards can
be found on
page 41
Creating Sustainable Value for our Stakeholders
continued
Purple Light Up
On December the 3rd, Admial and businesses
around the world celebated the economic
power of disabled people.
For the event, we wanted to open a conversation around
disability inclusion in the oice and share some of the things
we do. Throughout December, we held multiple oice and
vitual events. Colleagues at Admial both showcased their
lived experiences and shared their perspective, guide dogs
for the blind visited our oices, and guests such as Stuat
Nixon MBE hosted webinars discussing overcoming adversity.
The events were organised by our Disability Forum which was
created to improve awareness, discuss ideas, and implement
adjustments to improve the workplace for those living
with disabilities.
92%
answered positively
to “I believe Admial
Group is a diverse and
inclusive employer”
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78
Stategic Repot
What are the risks and oppotunities that
could afect the relationship and, therefore,
Admial’s success?
Hybrid working provides both risks and oppotunities
in respect of our people. Whilst we may now be able to
reach diferent pools of talent for critical roles, we pay
careful consideation that there could be a risk losing
of talent, as geogaphy becomes less of a constaint in
a hybrid working world.
The protection of Admial’s unique culture is critical to
ensuring that we continue to attact and retain talent.
How we monitor the impact of our actions
and the strength of our relationship
As well as monitoring the impact of our actions and
the strength of our relationships qualitatively through
our engagement mechanisms, we also monitor the
following key peformance indicators:
• Accolades
• Employee feedback
• Pay gaps
• Health and safety incidents
• Culture Dashboard metrics, including:
– Satisfaction scores from Great Place to
Work suvey
– Diversity targets
– Taining & development (courses completed)
– Attrition
– Sickness
– Recruitment (e.g., applications per vacancy)
Our ambition is to be one of the best places
to work in the world
To achieve our ambition to be one of the best places
to work in the world, we have set the commitment to
be in the top 25 Great Places To Work (GPTW) ankings
across all of the Group’s respective businesses. In 2022,
we achieved this target in almost all opeations where
we are anked.
2022 Great Place To Work Ranking
UK 4th
Admial Canada 4th
ConTe 4th
Admial Seguros 2nd
L’olivier 7th
Admial Solutions
38
35th
Europe 19th
Embedding Admial’s purpose
Two years ago, we took the oppotunity to relect on
our ‘why’ – why do we exist as a business and what is
our purpose as an organisation. Following hundreds
of hours of listening to employees and conducting
multiple employee workshops, we outlined a new
Group purpose statement. In 2022, we have increased
colleague’s exposure to our purpose through taining,
and decision-making among stakeholder groups.
Key successes include:
• Exposure to purpose for evey employee via online
and oline communications campaigns
• Annual Top 10 competition centred around
showcasing our purpose in the eveyday
• Development of a purpose-led communities and
sustainability approach
• The launch of a UK course about our purpose
• Shareholder communications about purpose in
our annual and half-year results
Our sustainability ambition:
To be one of the best places to work in the world
80%
of employees agreed
that they understand
how their role brings
to life Admial Group’s
purpose in 2022
37
37 Staf pulse suvey result.
38 Peformance versus other entities is impacted by the
much larger pool of companies included in India.
More information
about how we
monitor and
assess culture,
and talent
management
can be found on
pages 140 to
143 (for culture)
and page 166
(for talent
management)
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79
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Creating Sustainable Value for our Stakeholders
continued
A diverse and inclusive business
We irmly believe that to create a successful working
environment, companies must embace Diversity
and Inclusion (D&I) across all levels of the business.
In Admial, a Diversity and Inclusion Forum, made up
of over 200 employees, is in place to drive all our D&I
initiatives. The forum consists of six working groups
which consider and implement ways we can better
suppot a diverse working environment. To drive the
conversation at the highest level, Cristina Nestares,
CEO of UK Insuance is the appointed D&I
executive sponsor.
In 2022, colleagues have had access to monthly
newsletters and all line managers undewent
mandatoy D&I taining. Our international entities
completed a maturity assessment which considered
multiple elements of D&I. This helped identify
our strengths but also areas for improvement.
People Sevices (PS) managers and D&I sponsors
met regularly to share progress, ideas, and express
concerns. New local working groups were introduced
in Spain, Italy, and the US, with a focus on making
positive changes in their respective entities too.
Through these initiatives we are seeing a tansition in
the business from a position of awareness, into wider
engagement and consolidation.
Disabled employees
Admial Group’s UK businesses are Disability
Conident Employers. This means they are recognised
as going the exta mile to make sure disabled
people get a fair chance, full and fair consideation
to applications for employment made by those
with disabilities, having regard to their paticular
aptitudes and abilities. Admial has a Disability Forum
to help promote inclusivity in the Group for those
with a disability. There is also a Workplace Suppot
Team to provide suppot for those with physical
Diversity patnerships and signatoy commitments
disabilities, neurodiversity and shot-term mental
health problems. Taining sessions to help better
employees understand those with neurodiversity
are also available. The Admial Group will suppot any
employee who is disabled or has a life-threatening
illness and help them to contribute to the Group as
long as their health allows. Managers in the Group are
sensitive to health concerns and special needs and will
not knowingly allow any employee with a disabling or
life-threatening illness to sufer from discrimination
at work. The Group also provides employees with
access to the Employee Assistance Progamme Care
First conidential helpline which ofers advice and
suppot on a ange of health issues.
92%
answered positively
to “I believe Admial
Group is a diverse and
inclusive employer”
£3,600
in Admial shares
received by around 10,000
employees each year
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80
Stategic Repot
Health and wellness across our opeations
At Admial we have been committed since day one
to providing a work environment where people
feel comfotable to be themselves and receive the
right level of suppot. The Board receives updates
on health and safety throughout the year and the
Employee Consultation Group (ECG) gives employees
a platform to share their views. Within Admial all
People Sevices (PS) executives and the Wellbeing &
Workplace suppot team are cetiied Mental Health
First Aiders. We also ofer access to mindfulness
courses, healthy eating and living webinars, and guest
speakers talking on a ange of topics such as anxiety
and emotional resilience.
In 2022, we launched a new mental health and
wellbeing stategy to help educate and enable
our colleagues. As pat of our stategy, we an
events such as Women’s and Men’s Health months
focused on driving awareness and understanding of
various health issues. We also launched a Wellbeing
Representatives Network which encouages face-to-
face communication, and gives assistance to those
who may be struggling.
People Learning and Development
The Learning & Development (L&D) depatment is
Admial’s cental taining hub and ofers suppot,
learning oppotunities and career advice to all
employees. In 2022, the L&D depatment launched
a new internal Leadership Planning and Skills
Development hub. The hub provides guidance,
suppot, and skills development oppotunities for
employees within Admial. In it, colleagues can build
their own personal learning plan which they can then
tailor to their speciic development needs. The hub
links to a ange of internal and external development
courses and progammes with additional resources
in the pipeline to be built. At current we have over
17,000 courses, as well as access to LinkedIn Learning
for all colleagues. In 2022, we’ve also deepened our
understanding of where talent pools may or may not
exist across our global opeations and strengthened
processes to identify potential talent. To that end,
internal communities have been created in targeted
business areas to enhance our development networks
and develop Admial’s employer value proposition.
Recruiting the right people
Our recruitment progams are designed to align with
stategic business needs. In 2022, in line with Admial
2.0 Group stategy, emphasis was placed on recruiting
for Data and Analytics (D&A) roles. Stategies have
been put in place to identify where we need to
develop or recruit talent, these stategies take into
account variables such as, attrition, time to hire,
and the demand for skills. Community working groups
were then established to design better ways to attact
and retain D&A talent.
To keep candidates engaged throughout the
recruitment process, changes were also made to our
onboarding platform. The platform was updated
with all the oppotunities Admial ofers in terms
of beneits, learning and development, health and
wellbeing, and our culture. In addition, a hiring
manager potal has been created which provides a
centalised place for hiring managers to view their
job vacancies, see applications, anonymised CVs,
and provide feedback to candidates. These changes
are expected to streamline the recruitment process,
and in turn improve the oveall recruitment journey.
Engaging and communicating
with our employees
Our culture is built on an environment where
employees feel that they are pat of a wider collective,
and that their contribution plays a vital role in our
continued success. The Admial Employee Consultation
Group, or ECG for shot, was implemented in 2019
and gives employees a voice at the highest level of
the organisation. Each depatment in the business
has an assigned ECG representative, voted for by the
employees, to listen to employees’ views and share
with the Board and senior managers where they
believe Admial is doing well or needs to improve.
In 2022, topics discussed included developments
around Smat Working, health and wellbeing, and
futher conversations on the Group’s remuneation
pactices. No topics are considered ‘of-limits’ and
employees are encouaged to share their opinions to
ensure tansparent and fair conversations can occur.
Employee Reward
We recognise the previous few years have been
challenging for employees mentally, physically, and
inancially. As recognition of the dedication our
employees have showed and to address the challenges
faced due to the cost-of-living crises, we committed to
giving employees exta payments in the year. We also
opeate our employee share scheme which sees
around 10,000 employees receiving an award woth
up to £3,600 in Admial shares each year.
A wide ange of non-salay beneits covering all
employees are also available. This includes suppot
for medical appointments, buy-a-book schemes,
company suppot for dependent care through
coopeation with local childcare facilities, a cycle-to-
work scheme, and a wide variety of leave oppotunities
such as: Maternity/Paternity leave, Dependent Care
leave, Career break leave, Compassionate leave, and
Charity leave.
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
How we engage to conirm what matters
to our patners and suppliers
To ensure strong third-paty engagement, there are
dedicated processes around the Group to govern
end-to-end relationships. Key paties have internal
relationship managers responsible for ongoing
dialogue, for example with co- and reinsuance
patners, and stategic patners.
To monitor and suppot the governance of
procurement, a software application is used to
provide tender management, contact management,
supplier management and due diligence under a
single platform. This information is repoted to the
Admial Risk Management Committee monthly and
helps inform our engagement with our suppliers.
The Group’s dedicated Regulatoy Relationship teams
maintain channels of communication with the FCA
and PRA in the UK, and all our international regulated
intermediaries and insurers.
Board oversight, taining, and escalation
The Board receives updates on:
• All propotional risk-sharing agreements,
including co-insuance and reinsuance contacts
• Matters relating to patnerships and oppotunities
• Relationships with key patners and procurement,
including our payment policies and pactices
• Regulatoy, technological and consumer trends
• Modern slavey risks in the supply chain
The Board takes all updates into account when
considering the long-term consequences of its
stategies and business plan. The CFO provides
updates on the activities related to the renewal
of the Group’s co-insuance, reinsuance and quota
share contacts, including maintaining the ongoing
stategic relationship with Munich Re.
Creating Sustainable Value for our Stakeholders
continued
Why they matter to us stategically and how
they inluence the opeation of the business
Our patners and suppliers are considered stategically
impotant to us either because (i) the supplier is a
material outsourcer (ii) the supplier or patner is
integal to achieving future stategic goals, (iii) there
are paticularly preferential ates or terms in place,
or (iv) another factor which makes the relationship
hard to replicate or replace.
Our stategic patners and suppliers comprise a mix
of inancial patners, reinsuance patners, IT hosting,
distribution and claims management and claims
sevices patners. Therefore, it is crucial that the Group
fosters these relationships efectively to mitigate the
associated risks in the supply chain.
What matters to our patners and
suppliers, and encouages them to maintain
a relationship with Admial
The matters of most impotance to our patners and
suppliers are:
• Strong ethical patnerships and fair treatment
• Receiving great sevice and engagement through
our supplier sourcing, and supplier management
• Timely payment pactices
• Governance of managing risk
• Business resilience
Our Business:
Patners and
Suppliers
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Stategic Repot
What value is created by us for them?
As pat of the tender process, each supplier completes
an extensive due diligence questionnaire to ensure
they comply with Group standards. Our procurement
team also manages contact renewal, including
an updated due diligence assessment and
commercial negotiation.
The selection of suppliers must follow a documented
evaluation process, considering at a minimum the
tender submission, the business requirements,
the due diligence carried out, commercial and
contactual terms.
Managing relationships with our patners and
suppliers in this way enables us to maintain business
resilience and therefore reduce risk, ensures that there
is a consistent process and that they are treated fairly
and paid promptly.
• We launched Pet patnership with veterinarians
across the county
+ Read more on page 32
• We patnered with an Insutech to help customers
mitigate leaks in UK Home
+ Read more on page 3
• Admial Pioneer funded investment in Wagonex
+ Read more on page 36
What are the risks and oppotunities
that could afect the relationships and,
therefore, Admial’s success?
Patner and supplier risk refers to the degree of risk
to the business arising from the potential loss of the
supplier or patner, the contact, the criticality of
the sevice, the size of the supply market and the
complexity to move or switch suppliers. At Admial,
each supplier is given a risk score based on these
matters, which is regularly repoted to the Risk
Management Committee, as outlined above.
Some risks in respect of patners and suppliers arise
from hosting critical sevices in the cloud. Whilst the
migation to the cloud has many opeational and
commercial advantages, the reliance on cloud hosting
providers such as Microsoft Azure and Google Cloud
Platform means that outages afecting those providers
could have a signiicant impact on core opeations
and present a business interruption risk. The one-to-
many nature of cloud sevices means that Admial is
usually required to sign up to cloud suppliers’ terms
and conditions that limit liability for potential business
losses arising from sevice outages. However, this is an
industy-wide risk and one that is geneally mitigated
by: (i) carying out appropriate due diligence on
suppliers to ensure they have efective resiliency;
(ii) not over relying on a single cloud hosting provider;
and (iii) maintaining appropriate insuance cover to
protect the group against business interruption caused
by third paty outages.
With the geneal exception of cloud suppliers,
we also continue to ensure that all suppliers sign up
to our terms and conditions that are reviewed and
updated in line with regulatoy standards. For cloud
suppliers who require us to sign up to their terms
and conditions, we require suppliers to include a
set of contactual requirements called the “Cloud
Minimum Standards”.
There were oppotunities to improve the way we
manage our patner and supplier relationship risks in
2022. Some of the oppotunities included reviewing
our procurement famework applicable to the Group,
building additional capabilities to monitor, ate and
improve ESG peformance of patners and suppliers,
and enhanced supplier risk controls to meet the FCA’s
opeational resilience requirements.
How we monitor the impact of our actions
and the strength of our relationship
• Successful renewal of risk-sharing agreements
and contacts
• Engagement with co-insuance and
reinsuance patners
• Feedback from stategic suppliers and patners
• Compliance and audit activities
• Eiciency/savings and decreased risk in
procurement activities
• Supplier peformance against agreed sevice levels
Read more on
pages 6, 32
and 36
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Our sustainability ambition:
To build successful businesses with opeational resilience
Patnership with Pure Stoage
Admial patnered with Pure Stoage in 2019,
to improve our on-premise data stoage within
our data centres.
In 2022 the project was completed. Pure stoage helped
us improve our peformance across all our core databases,
almost doubling the speed of our real-time analytics and
emergency ate changes made at shot notice in response
to such things as inclement weather. Pure technology has
also helped us to reduce the size of our data centre and its
carbon footprint by a factor of four – keeping the business
on tack to reach our net zero target by 2040.
Chris Bevan, Head of Platform Sevices, had the following
to say – “With Pure Stoage, ate change calculations are
98% faster, giving customers the best prices and improving
our chance of listing in the top 10 on aggregation sites”.
Creating Sustainable Value for our Stakeholders
continued
Sustainable procurement pactices
Admial has embedded sustainable business pactices
across all the procurement engagements that it
conducts. During any tender process, potential
suppliers are asked to complete a due diligence
questionnaire which includes questions related
to societal and environmental factors such as
inancial crime, data protection, modern slavey,
and environmental accreditation. Suppliers are then
assigned a risk score based on these criteria. Risk levels
are managed throughout the supplier process and
where suppliers have poor credentials, they are
disqualiied. That said, we recognise that more can be
done in terms of promoting sustainable procurement
pactices. We are currently working towards improving
technology and automation solutions to make the
Group procurement function more eicient. This will
ensure that we can continue to efectively assess our
supply chain and appropriately consider any rising
modern slavey and environmental risks in the future.
2040
We are committed
to achieving our
net zero target by
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84
Stategic Repot
Why they matter to us stategically and how
they inluence the opeation of the business
Shareholder engagement fosters understanding
of Admial’s stategy and investment case. It allows
us to explain the business and stategic decisions
and ationale whilst providing oppotunities
for shareholders to comment and challenge
business priorities.
What matters to our shareholders and
encouages them to maintain a relationship
with Admial
Our stakeholders deem that the key areas of
impotance related to our shareholders include:
• The inancial peformance of the business,
including products and sevices that are it for
purpose and provide solid inancial returns
• Business stategy and viability of long-term success
• Our approach to climate change and
the environment
• We also recognise the growing impotance of ESG
factors in investment decision making
How we engage to conirm what matters
to our shareholders
The Group engages regularly with shareholders
through frequent and open dialogue. Our Investor
Relations calendar consists of various activities
including but not limited to:
• Results announcements and presentations
• Annual Repot
• Roadshows (in person where possible, and remotely)
• Conferences
• Analyst and Investor phone calls/ presentations
• 1:1 and group meetings
• IFRS 17 analyst taining session
• On-site investor visits
• Annual Geneal Meeting
• Staf Geneal Meetings
• Corpoate Governance shareholder meetings
(with Chair and Senior Independent Directors)
In 2022, we also futher improved communication
through enhanced disclosures and engaging with
indices to improve index atings.
Board oversight, taining, and escalation
The Board receives regular updates on the activities
of the Investor Relations team, as well as on meetings
held between Board members and/or management
and investors. The Board also receives investor
feedback (post roadshows/results/conferences) and
uses it to shape its approach to corpoate governance,
ensuring that any issues or concerns aised are
considered and addressed. The Board also receives
regular updates on the key elements of ESG.
What value is created by us for them?
• Clarity and insight into opeations
• Sharing timely updates in line with best pactice
• Tansparency, so that analysts and shareholders
have conidence in the value of the stock/can
price fairly
• Assuance of management intentions/stategy
• Conidence that external views will be shared/
discussed with the management team
• In 2022, we held an IFRS 17 event to help investors
better understand the impact of the changing
accountancy rules
• Across the year, we engaged with third-paty
agencies to provide feedback on our sustainability
repoting and made efots to improve disclosure
+ Read more on page 91
• Our Chair and Senior Independent Directors held a
series of corpoate governance meetings with our
largest shareholders
• In 2022, we an through a succession plan, to secure
our new Chair
Our Business:
Shareholders
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Creating Sustainable Value for our Stakeholders
continued
What are the risks and oppotunities that
could afect the relationship and, therefore,
Admial’s success?
Our principal risks and uncetainties section outlines
the risks and oppotunities that could impact our
stategic objectives and afect shareholder’s views
of the business.
No new principal risks and uncetainties were
identiied throughout 2022, and the principal
risks and uncetainties that could impact Admial’s
relationship with shareholders have remained
stable over the same period.
How we monitor the impact of our actions
and the strength of our relationship
• Broker feedback
• Analyst feedback
• Shareholder feedback
• Investor Relations material
• Feedback from proxy advisoy irms
• AGM voting results
• ESG indices
• Investor meetings
• Roadshow feedback
• Rating agency repots
Our website contains all Investor Relations material
and AGM Voting Results.
Regular shareholder engagement
Admial’s management team actively engages with
the Group’s shareholders to promote open and
tansparent dialogue. Issues discussed geneally
relate to the Group’s inancial peformance, product
and sevice updates, and the long-term stategy of
the Group. These engagements provide current and
potential investors with insights into Admial’s stategy
and are a means by which we receive feedback.
The Investor Relations Team oversees engagement
with the Group’s shareholders and provides
regular updates to the Group Board. The team also
organises meetings between Board members and/
or management and investors, including conferences,
one to one management meetings, and annual
Corpoate Governance meetings with our Board Chair.
In 2022, there continued to be a mix of meetings held
in person and online with the Group able to continue
its regular shareholder engagement.
Our sustainability ambition:
We seek to build successful businesses with opeational resilience
To see how we
link risks to our
pillars of stategy,
please turn to
page 114
To see our
principal risks
and uncetainties,
please turn to
page 114
Our key financial
and non-financial
highlights are on
page 4
Details of how
we engage with
ESG indices can
be found on
page 73
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86
Stategic Repot
How we engage to conirm what matters
to our communities
Our employees drive our community engagement
as they are involved in nominating and choosing which
initiatives we suppot. A culture of giving and a sense
of responsibility for the community is shared across
the whole Group.
We engage in seveal ways, including:
• Colleague volunteering, paticularly our
‘Impact Hours’ scheme
• Charity initiatives
• Patnerships with recruitment bodies
• Patnerships with educational bodies
• Sponsorship of various community events
• Fundaising
• Funding projects through our Community Fund
• Funding projects through our Ministy of
Giving progamme
Board oversight, taining, and escalation
The Board receives updates on the key community
initiatives across the Group and provides direction
on how we can continue to make a long-lasting,
positive impact. In 2022, the Board also approved our
new Community Outreach progamme. Please turn to
page 89 to read more.
What value is created by us for them?
• We launched the Global Emergency fund
+ Read more on page 90
• We encouaged all of our employees to ‘Give a Day’*
with our long standing volunteering scheme
+ Read more on page 89
• We sponsored FinTech Wales Foundy
Acceleator progamme
+ Read more on page 15
• We suppoted over 200 organisations and donated
over £140k in 2022, via our Community Fund
+ Read more on page 88
• We developed and streamlined our existing
Community Outreach progamme
+ Read more on page 150
Why they matter to us stategically and how
they inluence the opeation of the business
Giving back to our communities is an integal pat
of our company culture. Our people play a key role
in how we engage with our communities, and we
work collectively to drive long-term change both
inside and outside of the Group.
As a large employer across seveal countries,
we believe it is our responsibility to provide
employment oppotunities for those in the local
areas whilst taining and developing our people.
We are committed to promoting and recognising
diversity both within Admial, and in the communities
in which we opeate.
What matters to them and encouages them
to maintain a relationship with Admial
The material issues for our communities geneally
relate to suppot and ongoing dialogue, inancial and
resource-based contributions, and consistency and
integrity relating to our promises.
We recognize the following focus areas as being the
most impotant to our communities:
• Employability
• Social mobility
• Educational oppotunities
• Financial inclusion
• Spots, ats, and culture
Our Society:
Communities
* Rebanded to ‘Impact Hours’ in 2022
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Local suppot
We recognise that there are organisations that do
great work and are vey closely aligned to many of our
Group sustainability goals. Examples of organisations
that we suppot locally include bodies that champion
social mobility and employability, suppot educational
oppotunities, promote health and wellbeing, provide
help for the homeless and suppot spot, and promote
at and culture within various communities. Therefore,
during 2022, we made ‘super donations’ to suppot
local organisations that work in these areas.
Patnership with Jesus College
In 2022, we entered the second year of our three-
year patnership with the University of Oxford’s Jesus
College on their Welsh access initiative. Our suppot
enables our Access and Outreach team to develop
new access activities, enhance existing progammes
and reach more academically gifted young people
in the county, who are currently under-represented
at Oxford and other leading universities in the
UK. This work will include outreach patnerships
with seveal Welsh primay and seconday schools,
careers and inteviews advice workshops for seconday
students and bring additional suppot to the College’s
prestigious Seren Summer School progamme and the
University of Oxford’s “Oxford Cymru” consotium.
What are the risks and oppotunities that
could afect the relationship and, therefore,
Admial’s success?
Admial is known for being a generous patner of
community charity initiatives and engaging with
our communities provides us oppotunities to give
back and actively contribute to society. Over the
last 12 months, the Community Stategy has been
revised, and focus areas include impact hours,
which contribute to teambuilding and colleagues
building networks in and outside of the business.
The Community Stategy has evolved into having
a purpose/ goal that aims to help as many people
into jobs as possible. The more focused approach
potentially means that the scope of the community
projects is narrower. Relationship management with
existing charity patners will need to be managed
to relect our generous/ positive contributions,
communicate our streamlined approach and protect
our reputation. You can read more about this on the
next page.
How we monitor the impact of our actions
and the strength of our relationship
• Feedback from charities, recruitment, and
educational bodies
• Feedback from employees
• Community feedback
• Dialogue with organisations
• Feedback from the Welsh Government
• Media Coveage
• Social Media
Over
£140k
in 2022, via our
Community
Fund
Creating Sustainable Value for our Stakeholders
continued
Admial Group plc Annual Repot and Accounts 2022
88
Stategic Repot
Our Community Stategy
Admial has always cared about our impact on the
community, and has been involved in many initiatives
to invest in our communities in areas where we
think we can make a diference, but that also are
meaningful to our colleagues. In 2021, we built on
this approach to re-deine and add more focus to our
Community Stategy, launching our ‘Together for
Better’ approach – our commitment to tansforming
futures in our local community. Grounded by our
Group Purpose, Together for Better is underpinned
by three stategic pillars:
• Community
• Colleagues
• Careers
This approach will focus primarily on the employment
market and getting more people into work.
To suppot our stategy, we are working with local
and global patners to reduce labour skills gaps and
help disadvantaged groups into more sustainable
employment. One of our most signiicant patnerships
is with Geneation, a non-proit organisation striving to
tansform the education system into an employment
system. Initially, we will pilot progammes in India and
Italy. Geneation Italy will suppot 80–100 paticipants
in tech progammes and Geneation India will suppot
550–600 paticipants in progammes across the
technology, sevice & sales, and healthcare sectors.
Our longstanding Community and Match Fund have
also been incorpoated into our wider Community
Stategy. For context, through the Community Fund
scheme colleagues can apply for a gant to help
organisations, community groups and clubs that either
they or their direct family are involved in. In 2022,
“ I participated in an ‘Impact Hours’
litter pick in Bute Park with my whole
team. We had valuable team bonding
in a largely virtual team. Doing charity
work never felt so ‘Admiral’ singing
Tom Jones and reminiscing over past
lives in the contact centre, all while
performing an invaluable service to the
community in Cardiff.”
Cellan Lloyd
Group Compliance
we suppoted over 200 organisations, spending £142K,
with the majority of the spend going towards spots
and ats clubs. Additionally, if a colleague has aised
money for a charity or organisation, they can apply for
match funding where the business matches what they
aise. We provided a total of £59K to over 70 charities
and organisations in 2022.
Impact Hours
Alongside our work to suppot people into sustainable
work, we have long-standing initiatives in place such
as Impact Hours (previously Give-A-Day) where our
employees can take the equivalent of two working
days away to volunteer in their local communities.
In 2022, to maximise the efect and use of our Impact
Hours, we have encouaged and helped business areas
to plan bespoke volunteering initiatives. We have
also improved the tacking of volunteer hours and
ensured each of our selected charitable patners can
provide volunteer oppotunities. Since the re-launch
of our volunteer progamme, we have noticed a
signiicant increase in teams using their team-building
time to volunteer and make positive change in
their communities.
Our sustainability ambition:
We strive to have a positive impact on society
Admial Group plc Annual Repot and Accounts 2022
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
A few of our Together for Better patnerships
Global Emergency Fund
Admial’s Global Emergency Fund was set up in 2022
and is dedicated to making fast donations to people
and organisations who need it most around the world.
Organisations suppoted in 2022 include the Welsh
Refugee Council, where our donation has suppoted
their employability progamme and helped a total of
150 refugees secure employment in Wales. We have
also donated to the British Red Cross to aid their
Pakistan Flood appeal, helping over 3,500 people by
providing warm clothing during the winter months.
In response to the Hurricane Fiona in Canada, $150,000
was donated to charities helping those afected.
Much of this was led by our employees who worked
tirelessly to suppot communities across Halifax and
other badly afected areas, such as Nova Scotia.
Over
£140K
donated via our
Community Fund
Over £50K
donated to over
70 charities and
organisations through
our Match Fund
Over 200
charities suppoted
through our
Community Fund
Creating Sustainable Value for our Stakeholders
continued
Admial Group plc Annual Repot and Accounts 2022
90
Stategic Repot
How we engage to increase awareness
and to conirm what matters
Colleague-directed activities include:
• Regular updates from the Green Team, an internal
working group set up to look at green initiatives to
minimise the impact of climate change
• Internal promotion of Green Week and Eath Day
• Engagement with colleagues at employee forums
and via CEO updates
• Various recycling initiatives across our oices
• Quaterly meetings of our Climate Steering Group
• Presentations from Group Stategic Risk at CMAD
(Senior Managers Stategy Sessions)
Board oversight, taining, and escalation
The Board regularly receives updates on climate
and ESG-related topics, as well as our Responsible
Investment Policy, and provides feedback and topics
for consideation. During the year, a brieing session
was also held on the Task Force on Climate-Related
Financial Disclosures (TCFD) for the Audit Committee
and the Group Risk Committee to provide clarity on
the requirements and their respective responsibilities.
Futher details on this can be found
on page 97
What value is created by us for
the environment?
• We enhanced our Climate positive employee
engagement progamme
+ Read more on page 99
• We invested in reforestation investments
(Stump Up For Trees and Size of Wales)
+ Read more on page 94
• In 2022, we made progress towards our net
zero targets
+ Read more on page 93
• During the year, we installed electric vehicle
charging points in our oices
+ Read more on page 94
• We became fully carbon neutal for the third
year running
+ Read more on page 95
Why it matters to us stategically and how
it inluences the opeation of the business
At Admial, we care deeply about our employees,
our customers, and the impact we make on the world.
Admial is mindful that it is increasingly impotant
to demonstate responsible business behaviour with
regards to the environment, not just because all our
stakeholders demand it, but because it is the right
thing to do:
• Our people want to know that they work for a
company which is playing its pat in tackling the
climate emergency
• Our customers want to know that we are not only
looking after their propety and possessions, but
that we’re looking after their future
• Our shareholders and regulators want to know that
we are a company which is robust to the challenges
and open to the oppotunities that tackling the
climate emergency will present
• We strive to reduce our environmental impact,
including our carbon footprint, and encouage
responsible behaviour in our people, customers,
and other stakeholders
Our Society:
Environment
Admial Group plc Annual Repot and Accounts 2022
91
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
2040
We are committed
to achieving net
zero greenhouse
gas emissions by
We are committed
to achieving
net zero in directly
controlled opeational
emissions by
2030
Read more on
page 97
We recognise that environmental disclosures are
increasingly requested by investors, shareholders,
customers, and other stakeholders. For 2022,
Admial made disclosures consistent with the
Taskforce on Climate related Disclosures (TCFDs)
and against the Streamlined Energy and Carbon
Repoting Famework. (SECR).
Please turn to page 97 to read more about
TCFD, and page 95 for SECR
What are the risks and oppotunities
that could afect Admial’s impact
on the environment and, therefore,
Admial’s success?
The current focus is on climate change, both the
impact of a changing climate on us, as well as our
impact on climate change.
The former is viewed through the lens of tansition
risks (risks arising from a tansition to a low carbon
economy), physical risks (risks arising from a changing
climate), and liability risks (risks arising from people
or businesses seeking compensation for losses they
may have sufered from climate change), in the shot,
medium, and long-term.
More information is included in the ‘stategy’ section
of the TCFD disclosure on pages 97 to 111
While the current focus is on carbon footprint,
and plans for footprint reduction, in the future,
there is likely to be an increasing focus on biodiversity
and other aspects of environmental degadation/
regeneation.
How we monitor the impact of our actions
To monitor the impact of our actions we repot energy
and carbon emissions in line with SECR to make carbon
repoting more tansparent and to aid the goal of
achieving a carbon net zero target.
We also align our repoting with the TCFD’s published
recommendations concerning governance, risk
management, stategy, metrics, and targets.
Creating Sustainable Value for our Stakeholders
continued
Admial Group plc Annual Repot and Accounts 2022
92
Stategic Repot
Committed to Net Zero by 2040
Admial Group has formally committed to achieving
net zero greenhouse gas emissions by 2040 at the
latest, across all three scopes of emissions, and to
cut these emissions in half by 2030. A commitment
was also made to achieving net zero in opeational
emissions by 2030. Alongside this, we are working
hard to help our customers make greener and smater
choices by becoming a market leading undewriter
of electric vehicles and making sure customers can
access product features which reduce or ofset their
carbon emissions.
See page 101 for futher detail on net zero definition
Progress against our net zero commitments
Our primay efots in 2022 were dedicated towards
verifying the group’s scope 1–3 carbon emissions.
To date, the measurement and veriication of scope
1 and 2 emissions has been completed, and the focus
is now on estimating accuate scope 3 emissions
(investments and supply chain), using inance data.
In paallel to verifying scope 1–3 emissions, we have
stated work to establish Science-Based Target
(SBT)-aligned pathways; with the plan to submit these
to the SBTi for approval in 2023. To suppot us on this,
a three-year progamme of work has been agreed and
initiated with Carbon Intelligence. Once SBTs have
been set and approved, a credible tansition plan can
be devised and implemented. This plan will ensure
that Admial meets its intermediate 2030 targets
as well as its long-term ambition to be a net-zero
business by 2040.
Employee engagement on climate change
An employee engagement progamme – Climate
Positive – was launched in 2022. The progamme aims
to aise awareness of climate change, as well as the
Group’s response, to promote action, and to encouage
ongoing employee involvement. Climate-related
content was published in local languages across a
variety of channels and formats, and a taining course
was released that contributes towards continuous
professional development. Employees were also
encouaged to volunteer to become Climate Positive
allies, tasked with aising awareness of climate change
with peers and sharing key messages.
Our sustainability ambition:
We strive to have a positive impact on society
Sustainable equipment use
Following the tansition to hybrid working
and the need for all employees to use laptops
away from the office, much of the equipment
employees used before the pandemic was no
longer needed.
A decommission project was launched across our seven
sites in South Wales to remove all unnecessay assets from
our oices. Over the course of this project, 16,853 pieces
of equipment consisting of desktops, laptops, and monitors
were re-sold and recycled, saving approximately 83,729 tonnes
woth of equipment from going to landill. By working with
environmentally conscious suppliers, we avoided 5,026 tonnes
of CO and 1,621 tonnes of fossil fuel emissions going into the
atmosphere, as well as 10,103 litres of H
2
O being used.
16,853
pieces of equipment
re-sold or recycled
Admial Group plc Annual Repot and Accounts 2022
93
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
paty (MSCI ESG Research) to suppot our approach.
This data is integated into the Group’s wider
investment decision-making process and ensures
an appropriate level of ESG management is in place.
Minimum aveage ESG scoring requirements are also
used and we actively engage with asset managers
where any risks are identiied.
Suppot for green initiatives
In 2022, we suppoted climate action initiatives
by purchasing carbon ofsets and donating to
reforestation projects in both Wales and abroad.
During the year, we ofset 3,454 tonnes of carbon
emissions via our patnership with United Purpose,
purchasing credits through their gold standard
carbon scheme.
We donated to Stump Up For Trees (SUFT),
a community-based charity focused on broadleaf
woodland creation and enhancing the natual
biodiversity and ecology of the environment in
the Brecon Beacons area of south-east Wales.
Our donation will see 1,125 trees planted over the
next 12 years, with the trees estimated to continue
to remove carbon from the environment for up to
100 years. As well as SUFT, we also suppot the charity
Size of Wales. Our funding helps to protect against
deforestation through planting and monitoring
37,000 trees via the Bore Forest Project in Kenya.
Our suppot also contributes to the local community.
Responsible Products
Over the past few years, we have developed,
redesigned, and expanded our product proposition
to make sure we adapt to changes in our society
and the environment.
The number of electric vehicles (EV) on cover
continued to grow strongly in 2022, and is up by over
60% year on year. Times Top for EVs, (a measure of
how competitive our pricing is) is positive, and loss
atios for electric vehicles are in line with levels
exhibited by petrol and diesel vehicles. In addition,
Kooalys, a small new venture we launched in
Fance, suppots enterprises in their eco-tansition
towards green vehicle leets. Through Kooalys,
we are gaining a better understanding into changes
in mobility and the tansition towards commercial
electric vehicle usage. Combined, our approach means
we stay close to developing trends and continue
to test-and-learn new oppotunities.
Responsible Investments
Admial’s investment stategy targets Net Zero
39
by 2040 with the aim of achieving real economic
carbon emission reductions.
We have a responsible investment policy which
includes a commitment not to invest in coal and
oil sands – in line with the 2015 United Nations
Paris Agreement. To reach our Net Zero targets we
will focus our investments into irms with Science-
Based Targets (SBT) and into inancial instruments
which focus on providing climate solutions, such
as green bonds. We use external data from a third-
39 Deined by aveage carbon intensity across eligible investments. Where eligible includes
all assets outlined in the Net Zero Investment Famework which is endorsed by the UN’s
Race to Zero
Read more
about the
positive impact
our products
have on society
in the 2022
Sustainability
Repot
Creating Sustainable Value for our Stakeholders
continued
A
Admial’s investment
potfolio weighted
aveage ESG score has
an MSCI A ating
37,000
trees planted via
the Bore Forest
Project in Kenya
Admial Group plc Annual Repot and Accounts 2022
94
Stategic Repot
Streamlined Energy and Carbon Repoting (SECR)
32%
3,429 tCO
2
e
This statement has been prepared in accordance
with our regulatoy obligation to repot greenhouse
gas (GHG) emissions pursuant to the Companies
(Directors’ Repot) and Limited Liability Patnerships
(Energy and Carbon Repot) Regulations 2018 which
implement the government’s policy on Streamlined
Energy and Carbon Repoting (SECR). During the
repoting period Januay 2022 to December 2022,
our measured Scope 1 and 2 emissions (location-
based) totalled 3,429 tCO
2
e. This comprised:
FY2021 FY2022
UK
Rest of
World Total UK
Rest of
World Total
Scope 1 1,839 196 2,035 598 27 625
Scope 2 – location-based 1,768 1,272 3,039 1,549 1,254 2,803
Scope 2 – market-based 25 1,332 1,357 41 1,320 1,361
Total Scope 1 & 2 (Location-Based) 3,607 1,467 5,074 2,147 1,281 3,429
Total Scope 1 & 2 (market-based) 1,865 1,527 3,392 639 1,347 1,986
Scope 1 & 2 intensity per FTE
(location-based)
0.5 0.4 0.5 0.3 0.4 0.3
Scope 3 437 619 1,057 315 675 990
In accordance with SECR calculations, the tCO
2
e 2021 data shown for Scope 1, 2 and 3 is estimated and unveriied. In addition, the 2021 has been restated following a
review by Carbon Intelligence due to an update in the repoting methodology. For veriied tCO
2
e data, please refer to TCFD table on page 108.
Our Scope 1 and 2
emissions have
decreased by
Scope 1 and 2
emissions (location-
based) totalled
Oveall, our Scope 1 and 2 emissions have decreased
by 32% against last year. This was largely due to
improved control in our Building Management
Systems in our largest locations and closure of
some sites. We purchase 63% of our electricity
from renewable sources, meaning our Scope 1
and 2 market based emissions were 1,986 tCO
2
e,
a decrease of 41% from last year.
The impact of COVID has resulted in working from
home becoming “business as usual”, with the oices
being kept within statutoy and regulatoy compliance
requirements, has natually resulted in a reduction of
utility usage and driven a loor space reduction which
has increased the energy/utility savings. The building
management within the UK sites Newpot, Cardif and
Swansea is controlled by Building Management Systems
(BMS). These UK sites are being actively monitored for
peformance optimisation and time schedule eiciency.
The requirement to introduce greater amounts of
fresh air into the buildings, which is achieved via the
BMS system, has resulted in a marginal increase in
utility consumption.
Admial Group plc Annual Repot and Accounts 2022
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
During this period, we have taken the oppotunity
to engage with specialist consultants to review the
building opeation and explore decarbonisation
measures such as the removal of natual gas in
Cardif and the sourcing of alternative solutions.
Equipment/plant modernisation is also being planned
for the next inancial period/year which includes the
upgade of the BMS system in Cardif and replacement
or upgading of air-condition plant for more
eicient solutions.
We continue to engage our staf in energy eiciency
campaigns and to explore the use of emerging
technology, such as the district heating mains being
introduced in Cardif. We have also engaged with
consultants to review our options with regards to
emerging technologies and fossil fuel alternatives
in all our sites.
Our Scope 3 emissions are comprised of business
tavel, Fuel and Energy-Related Activities not
included in Scope 1 or Scope 2 (FERA), waste and
water. Our measured Scope 3 emissions totalled
990 tCO
2
e, a decrease of 6% from last year due
to fewer estimations and closure of some sites.
During the year, our total fuel and electricity
consumption totalled 15,216,000 kWh, of which
71% was consumed in the UK. The split between
fuel and electricity consumption is displayed below.
Methodology
We quantify and repot our organisational GHG
emissions in alignment with the World Resources
Institute’s Greenhouse Gas Protocol Corpoate
Accounting and Repoting Standard and in alignment
with the Scope 2 Guidance. We consolidate our
organisational bounday according to the opeational
control approach, which includes all our opeations
and sites. The GHG sources that constituted our
opeational bounday for the year are:
*1 Natual gas and tanspotation fuels (petrol and diesel)
Scope 1:
• Natual gas combustion
• Diesel Vehicle combustion
Scope 2:
• Purchased electricity – standard
• Purchased electricity – renewable
Scope 3:
• FERA
• Waste
• Water
• Business Tavel
Where data is missing, values have been estimated
using extapolation of available data or data from
the previous year as a proxy. However, in comparison
to previous years, more aw data was available
and therefore, estimations make up less than 3%
of Admial Group’s total emissions. The Scope 2
Guidance requires that we quantify and repot Scope 2
emissions according to two diferent methodologies
(“dual repoting”): (i) the location-based method,
using aveage emissions factors for the county
in which the repoted opeations take place; and
(ii) the market-based method, which uses the actual
emissions factors of the energy procured.
FY2021 FY2022
Energy consumption (kWh) UK
Rest of
World Total UK
Rest of
World Total
Electricity 8,325,000 4,606,000 12,931,000 7,297,000 4,982,000 12,279,000
Fuels*
1
5,033,000 530,000 5,562,000 2,904,000 32,000 2,937,000
Streamlined Energy and Carbon Repoting (SECR)
continued
Admial Group plc Annual Repot and Accounts 2022
96
Stategic Repot
Task Force on Climate-related Financial Disclosures (TCFD)
In 2019, Admial began to repot
in line with the Task Force on
Climate-related Financial Disclosures
(TCFD), in order to provide better
tansparency around the ways in
which climate change will impact
the Group now and in the future.
Since then, the Group has increased its disclosure
to futher align repoting with the TCFD’s published
recommendations, considering all-sector and sector-
speciic guidance, as well as emerging best pactice.
Recognising Admial’s pat in tackling climate
change, in 2021 the Group made a commitment to
reach net zero across all emissions by 2040, and net
zero in opeational emissions by 2030. Since then,
as discussed in the “metrics and targets” pillar, the
Group has made progress in reducing its emissions.
In 2023 Admial intends to submit Science-Based
Targets for validation, with the intention of securing
veriied targets by the end of 2023, suppoting its
ovearching commitments.
Admial Group has also continued to address the
challenges of climate change in a number of other
ways, including completing Carbon Disclosure
Project (CDP) disclosure, producing a Sustainable
Accounting Standards Board repot, and continuing
Compliance with LR 9.8.6R
Admial Group plc has complied with the requirements of LR 9.8.6R by including climate-related inancial disclosures consistent
with the TCFD recommendations and recommended disclosures. Disclosures can be found on the following pages:
Pillar Disclosure Page
Governance a. Describe the board’s oversight of climate-related risks and oppotunities
b. Describe management’s role in assessing and managing climate-related risks
and oppotunities
Read more on
page 98-99
Stategy a. Describe the climate-related risks and oppotunities the organization has identiied
over the shot, medium, and long term
b. Describe the impact of climate-related risks and oppotunities on the organization’s
businesses, stategy, and inancial planning
c. Describe the resilience of the organization’s stategy, taking into consideation diferent
climate-related scenarios, including a 2°C or lower scenario
Read more
on pages
100–106
Risk
management
a. Describe the organization’s processes for identifying and assessing climate-related risks
b. Describe the organization’s processes for managing climate-related risks
c. Describe how processes for identifying, assessing, and managing climate-related risks
are integated into the organization’s oveall risk management
Read more
on pages
106–107
Metrics and
targets
a. Disclose the metrics used by the organization to assess climate-related risks and
oppotunities in line with its stategy and risk management process
b. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions
and the related risks
c. Describe the targets used by the organization to manage climate-related risks and
oppotunities and peformance against targets
Read more
on pages
108–111
Futher relevant disclosures are signposted within the TCFD disclosure.
its membership of the Institutional Investors Group
on Climate Change.
On the following pages Admial has made
disclosures consistent with 9 out of 11 of the TCFD’s
recommendations and recommended disclosures.
At present, Admial has not made disclosures
consistent with all the TCFD’s recommendations and
recommended disclosures within Stategy (b) as,
given the large uncetainty around the likelihood and
severity of climate-related issues, they do not seve as
an explicit input into the inancial planning process,
and therefore the impact on inancial peformance
and inancial position has not been explicitly assessed.
Work will be undetaken during 2023 to consider how
Admial Group can better recognise the potential
impacts in its inancial planning and accounting
activities, to ensure consistency with all recommended
disclosures in future climate repoting. Admial has
also not set or disclosed clear targets consistent with
the cross-industy, climate-related metrics as required
by the recommended disclosures within Metrics and
Targets (c). During 2023, Admial intends to submit
Science-Based Targets for validation, which will include
futher consideation of cross-industy, climate-related
targets as per Metrics and Targets (c), to ensure
consistency with all recommended disclosures in
future climate repoting. Futher discussion and
information are included in the relevant sections of
the repot, and are signposted as such.
Admial Group plc Annual Repot and Accounts 2022
97
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Board and Board committees
The Admial Group Board, which is responsible for
promoting the long-term, sustainable success of
the Group, has ultimate oversight of climate change-
related risks and oppotunities. It is responsible for
understanding the Group’s relationship to climate
change – its impact on the environment, as well
as the impact of a changing climate on the Group
– and considering this in the context of the Group’s
stategy and risk management (including policies),
in setting the businesses’ peformance objectives,
and monitoring peformance. Climate change risks
and disclosures are reviewed and discussed at Group
Board and at seveal Group Board committees,
as recurring agenda items, including the Group
Risk Committee (GRC) and Investment Committee.
The Admial Group Board approves the Group
ORSA Repot, which includes the consideation of
climate-related risks and oppotunities alongside
examination of the Group’s stategy and business
plans, as well as the foward-looking risk and capital
assessment of the plan and associated stresses.
The Group Board will consider climate-related issues
in relation to major capital expenditures, acquisitions,
divestitures, and major plans of action (where these
occur) by reference to the Group’s stategic ambition,
which is aligned with the risks and oppotunities
arising from a changing climate.
Whilst the Group Board maintains ultimate
accountability, the GRC has primay oversight
responsibility for climate change risk, as it has
delegated authority from the Group Board for
overseeing risk management activities. It advises
the Group Board on Admial’s principal risks and
uncetainties (PR&Us), as well as on emerging risks,
and reviews the Group’s management of these risks.
Climate change risks are embedded within the BAU
risk management approach, which is discussed
within the Group Risk Committee section of the
Corpoate Governance disclosure (see page 178),
and any developments of note are repoted within the
Consolidated Risk Repot (CRR). In addition, dedicated
agenda items at GRC allow a full update of climate-
related activities to be considered, including progress
towards goals and targets (e.g., by comparing
reductions in opeational GHG emissions versus
stated targets). Climate change consideations are
also repoted within the annual ORSA Repot, which
is reviewed by the GRC prior to Board approval.
During 2022 the Board and GRC each received one
formal update on climate-related work ongoing
around the Group, including progress towards goals
and targets, initiatives aligned to three focus areas
(opeations and supply chain, investments, and
products and sevices), an update on regulatoy
developments, as well as information regarding
Climate Positive, discussed in the focus box on
page 99. The Investment Committee had four
updates. The EUI and AECS Boards also received
updates during the year. In addition, Boards and
committees received multiple additional updates
as pat of other presentations (e.g., the Group ORSA
Repot, which presented the output of the risk
assessment and scenario analysis) or discussions on
ESG and sustainability topics. In future, entity Boards
and executive management teams will take more
direct responsibility for managing climate-related risks
and exploiting any oppotunities.
Management and management committees
Various senior management from across the Group
have diferent responsibilities relating to climate
change-related issues, and sit on appropriate foa,
such as the Sustainability Working Group (SWG) and
the Climate Steering Group. The repoting which
occurs at each forum allows management to be
informed about and to monitor climate-related issues.
The Group CEO is the appointed sustainability
representative for the Group Board, which includes
climate change risk within its remit. The SWG repots
directly to the Group CEO.
The Group CRO has designated SMCR responsibilities
in relation to climate change and is a member of the
Climate Steering Group.
Governance
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Admial Group plc Annual Repot and Accounts 2022
98
Stategic Repot
The Group CFO is responsible for investments,
which includes responsible investment and climate
change consideations. The CFO is a member of the
Climate Steering Group.
The Group CEO, Group CRO, and Group CFO, along
with the EUI CEO, comprise an executive committee
which is appaised of, and provides guidance on,
climate-related initiatives across the three focus
areas of opeations and supply chain, investments,
and products and sevices, as required.
The SWG was established in 2020, repoting directly
to the Group CEO, and provides updates to the Group
Board. It provides oversight and challenge to the
Climate Steering Group, which was established in
2021 to provide guidance on the oveall progamme
of climate-related work, and to ensure a joined-
up approach across all Group functions and
Group entities.
Keith Davies, Group CRO and SMF accountable for
climate change, and Geaint Jones, Group CFO, sit on
the Climate Steering Group, which is also attended
by representatives from businesses around the
Group, and by representatives from Risk, Facilities,
Investments, Procurement, and Investor Relations.
It meets quaterly and is chaired by the Group
Stategic Risk Lead, a member of the Group Risk team.
On a day-to-day basis the Group Risk team is
responsible for the assessment of climate-related
risks and oppotunities. The output of this work is
included in the CRR, where applicable, the ORSA
Repot, and other regular and ad hoc repots
and papers that are shared with the appropriate
committees. Group Risk is responsible for dafting and
presenting climate-related updates to the Boards and
committees shown in page 178, and it also coordinates
climate-related work across the Group, encompassing
representatives from the three focus areas. It informs
management of climate-related issues via the working
groups and management meetings also shown in
page 178.
Climate Positive
A Group-wide staf engagement progamme –
Climate Positive – was launched in April 2022.
The initial progamme lasted six months and aimed
to aise awareness of climate change, the Group’s
response to the challenge, to promote action,
and to encouage ongoing staf involvement.
Content was published in local languages across a
variety of channels and formats, and a taining course
titled “What is the Climate Emergency?” was released
that contributes towards continuous professional
development. Staf have also been encouaged to
volunteer to become Climate Positive allies, tasked
with aising awareness of climate change with
peers and sharing key messages. In future, Climate
Positive will continue to share news with staf, as well
as provide a way for staf to help Admial shape its
response to the challenges posed by climate change.
Read more
about our
Sustainability
Working
Group on
page 72
Read more
about our
Climate
Steering
Group on
page 72
Read more
about Board
leadership
and company
purpose
on page 137
Read more
about the
Group Risk
Committee
on page 178
Climate-related governance
Boards
Admial Group
Board
Entity Board(s)
Management meetings
Investment
Committee
Executive
Committee
Board Committees
Group Risk
Committee
Group Audit
Committee
Working groups
Sustainability
Working Group
Climate Steering Group
Admial Group plc Annual Repot and Accounts 2022
99
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
reducing its impact on the environment is most clearly
seen through its net zero commitments, while the
impact of a changing climate on the Group is captured
via risk assessment and scenario analysis, which are
taken into account when considering the business
diversiication and motor evolution pillars of the
Group stategy.
Climate risk is typically disaggregated into tansition,
physical and liability risks. Tansition risks arise from a
move towards a low carbon economy, while physical
risks arise from climatic changes. They are inversely
correlated: physical risks can be mitigated by an
aggressive shift to a low carbon economy, increasing
tansition risk; aiming for a low level of tansition risk
will increase physical risk. Liability risks come from
people or businesses seeking compensation for losses
they may have sufered from the physical or tansition
risks outlined above.
While there is the possibility that climate change will
introduce new types of risk to the Group, not currently
captured within the risk universe, the working
hypothesis is that it will primarily impact the Group’s
existing PR&Us. The process undetaken to determine
which risks and oppotunities could have a material
inancial impact on the Group is described in the “risk
management” pillar.
Admial has deined the following time horizons for
climate-related risks and oppotunities: shot- (0–5
years); medium- (5–10 years); and long-term (10+
years). This is shown gaphically in Figure 1. The shot-
term time horizon coincides with the business
planning horizon, and the medium- and long-term
time horizons coincide with the expected useful life
of buildings infastructure (depending on the nature
of the infastructure). While both tansition risks and
physical risks are beginning to cystalise, the worst
In 2020 Admial aticulated its purpose as being
to “help more people look after their future.
Always striving for better, together.” As a result,
consideation of the company’s impact on the
environment and on people’s futures is integal to
Admial’s purpose and, therefore, Admial has set
ambitious net zero targets.
When considering the impacts from climate change,
Admial recognises that there are two components
(double materiality): its impact on the environment,
most clearly quantiied via greenhouse gas emissions,
but also via waste production and water usage;
and the impact of a changing climate on the Group,
on its revenues, costs, and via other non-inancial risks,
quantiied via scenario analysis. Admial’s approach to
Shot-term: 0–5 years
Detailed ive year inancial
projections are produced
as pat of the business
planning process, using
robust assumptions based
on current Group structure
and business mix.
Medium-term: 5–10 years
Stategic investments are
being made now in order
that they provide a material
contribution to Group
results in the medium-term.
Results are inherently subject
to more uncetainty, as
customer demands, consumer
behaviour, and the external
opeating environment are
all subject to change, not
least from the impact from
climate change.
Long-term: 10+ years
Beyond ten years it is
possible that the Group will
look consideably diferent
to the way in which it does
today, and will potentially
be opeating within a much-
changed environment. There is
signiicant uncetainty over
long-term projections.
Figure 1 Time horizons for climate-related
risks and oppotunities
Stategy
Read more
about our
purpose-led
approach on
pages 2 to 5
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Admial Group plc Annual Repot and Accounts 2022
100
Stategic Repot
efects from changing weather and climatic patterns
may materialise in the medium- and long-term if a
smooth tansition to a low carbon economy is not
achieved. Liability risks are highly uncetain, in scope
and in outcome – the irst cases are currently being
brought against oil, gas and energy companies –
therefore timing is less cetain.
Climate-related efots are aligned to three focus
areas – opeations and supply chain, investments,
and products and sevices – each of which are
potentially exposed to the three components of
climate change risk. This is because climate-related
risks may impact all of Admial’s business lines,
opeations, and investments, and may also impact
reinsuance arangements. While there are risks from
delayed action, there are also oppotunities from
seriously considering the challenges, including the
potential to acceleate the Group’s tansformation,
to build resilience, to drive innovation in core insuance
products, and to gain competitive advantage in new
and existing markets. Being a “green” company could
help attact and retain talent.
To date, climate consideations have not impacted
the Group’s approach to acquisitions and divestments
(other than that any potential M&A activity should
align with the Group’s oveall stategy, which considers
the impact from climate change) and have had no
impact on access to capital. Climate-related issues
have not impacted Admial’s investment in R&D.
Three key climate-related risk drivers which may afect
Admial are shown in Figure 2. They are a tansition
from petrol and diesel vehicles to electric vehicles,
a secular reduction in private vehicle use, and an
increased incidence and severity of weather events.
The impact by timefame, assuming current action/
mitigation, of each key risk driver is shown against the
PR&Us expected to be primarily afected, where:
• A modeate/minor impact relates to a
non-signiicant impact on revenue or proit
• A signiicant impact relates to a potential impact
on revenue or proit which far exceeds normal
month-to-month variance
• A major impact relates to a potential impact on
revenue or proit in excess of typical annual variance
• A critical/catastrophic impact relates to a potential
impact on revenue or proit geneally seen no more
than once in evey twenty years, or which could
ultimately jeopardise business suvivability
The potential impact is assessed qualitatively using
SME input and is cross-checked versus the scenario
outputs. At present, given the large uncetainty
around the likelihood and severity of climate-related
issues, they do not seve as a formal input into the
inancial planning process, and the impact on inancial
peformance and inancial position is not formally
assessed. Work will be undetaken during 2023 to
consider how Admial Group can better recognise
the potential impacts in its inancial planning and
accounting activities.
Admial is a global inancial sevices company,
opeating in the UK, Italy, Spain, Fance, Gibaltar
and the US, and has oices in Canada and India,
which primarily ofers personal insuance lines
and personal loans. The most material businesses,
currently, are the UK insuance businesses. In future,
however, it is expected that the bottom-line
contribution from non-UK and non-insuance lines
of business will become more material. The current
priority is to focus on the potential impact of climate
change on the UK insuance lines of business in the
shot-term, due to materiality, as can be seen in the
approach to scenario analysis. As Admial develops its
knowledge and understanding, and builds capabilities
and expetise, more focus will be given to the
potential impacts on non-UK and non-insuance lines
of business in the medium- and long-term, including
the quantiication of applicable risks.
The current energy crisis has conirmed the
appropriateness of Admial’s net zero stategy,
in paticular the need to reduce its opeational energy
use as far as possible and as quickly as pacticable,
and to diversify from fossil fuel sources before
permanent removal is considered for any residual
emissions. Admial remains committed to using 100%
renewable electricity wherever it is available.
Net zero
Admial follows the Oxford Principles for
Net Zero Aligned Carbon Ofsetting (the
“Oxford Principles”) deinition of net zero,
whereby net zero means substantially
reducing emissions and balancing any residual
emissions with removals on an ongoing basis.
The four principles are:
1. Cut emissions, use high quality ofsets, and
regularly revise ofsetting stategy as best
pactice evolves
2. Shift to carbon removal ofsetting
3. Shift to long-lived stoage
4. Suppot the development of net zero
aligned ofsetting
Read more about
our stategy
on pages 28 to 37
Admial Group plc Annual Repot and Accounts 2022
101
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Climate-
related risk
TCFD
categoy
PR&Us
primarily
afected Description
Shot-
term
0–5 years
Medium-
term
5–10 years
Long-
term
10+ years
Tansition
from petrol
and diesel
vehicles
to EVs
Tansition:
policy
and legal,
technology,
market,
reputation
Reseving risk
in UK and
International
insuance
• Changing distribution of risk from new technologies
(e.g., will EVs be slower and safer, or silent, more dangerous,
and prone to battey ires?)
• Introduction of new types of risk which have not been
encountered before (e.g., petrol cars do not have battey ires)
• Reduction or elimination of some claims-types
(e.g., wrong fuel claims)
• Unanticipated claims inlation from replacing ‘brown’
technology with ‘green’; old ‘brown’ technology may become
more expensive to repair
Erosion of
competitive
advantage
in UK car
insuance
• A move away from petrol and diesel vehicles to alternative
fuel vehicles, reducing competitive advantage from pricing
expetise, stressing supply chain (including repairer network)
and increasing LR
• New entants taking market share as petrol and diesel vehicles
are replaced by EVs
• EV OEMs ofering bundled products and sevices, changing
customer acquisition channel
Secular
reduction
in private
vehicle use
Tansition:
policy
and legal,
technology,
market,
reputation
Reseving
risk in UK and
international
insuance
• Changing distribution of risk from emerging technologies
(e.g., will a greater propotion of more vulneable road users,
from e-scooters etc. lead to more BI and CSI claims?)
Erosion of
competitive
advantage
in UK car
insuance
• A move away from private vehicles to active and public
tanspot or car sharing, thus reducing the oveall size of
Admial’s primay market
Increased
incidence
and severity
of weather
events
Physical:
acute,
chronic
Reseving
risk in UK and
international
insuance
• Change to incidence, extent, location, and clustering of both
chronic (high frequency) and acute (high impact) weather
and climate-related drivers of insuance claims, potentially
difering by geogaphy (e.g., south-eastern US versus UK
versus Europe), and afecting the UK household LOB, in
paticular, due to materiality
Premium
risk and
catastrophe
risk
• Aveage annual losses from weather events will likely be
higher under future scenarios with higher carbon emissions,
in paticular afecting the UK household LOB, due to materiality
• Increasing uncetainty about trends in past data and the degree
of conidence that can be placed in projections
Reduced
availability of
co-insuance/
reinsuance
• Increase in the cost and impotance of reinsuance protection
• Increased concentation risk, putting pressure on reinsuance
• Reinsuance structures impacted if more events
hit reinsuance layers
• Possible changes to terms and conditions
Failure of
geogaphic
and/or
product
expansion
• Proitability and/or viability of household, motor, or new
product undewriting may be compromised
Opeational
risk
• Increased risk of oice closures and/or damage
• Increased levels of health and safety risk during speciic
weather events
• Increased data risk or reduced availability of core
systems (depending on the location of information-
related infastructure)
• Suppliers may be exposed to similar risks
Figure 2 Key climate-related risk drivers which may impact Admial Group
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Admial Group plc Annual Repot and Accounts 2022
102
Stategic Repot
Opeations and supply chain
Admial’s opeations are exposed to physical and
tansition risks. Climate change may increase
the frequency and severity of weather events,
as well as causing longer-term changes in weather
patterns, which could directly impact staf,
oices, infastructure, and the broader opeations.
Admial may also be exposed to increased capital and
opeating expenditures, due to legal or regulatoy
requirements designed to reduce greenhouse gas
emissions, or due to increasing climate-related
expectations from shareholders, customers, staf,
or other stakeholders.
Admial has taken steps over a number of years
to reduce its environmental impact, including
initiatives related to energy, water, paper, and waste.
Consequently, the veriied opeational carbon
footprint
40
is low, and is ofset via the purchase
of Gold Standard carbon credits. In 2021, Admial
worked with an external paty, Arup Group, to
baseline its propety and facilities infastructure
in order to understand possible carbon footprint
improvements. The identiied stategic initiatives
are geneally medium-term commitments, such as
mechanical and electrical (M&E) changes to plant
and building management systems, which focus on
more consideate use of utilities, water, and waste,
improving controls of the main M&E plant and
associated systems, and end-of-life replacement of
M&E plant and machiney where a signiicant carbon
reduction can be achieved. The accuacy of data
produced throughout the propety potfolio has also
been improved. It should be noted that Admial’s
purpose-built Tŷ Admial building complies with
BREEAM excellent standards and has photovoltaics/
solar panels itted which provide energy directly
back into the grid, one example of a climate change
mitigation activity. There are also oppotunities based
around city centre heating proposals and geothermal
technology in some major cities, though these are
medium- to long-term in nature. Tactical oppotunities
for carbon footprint reduction have already been
captured, including propety downsizing to relect
oice attendance habits in a post-Covid business
environment. Futher detail on progress towards the
ambition to be net zero across opeational emissions
by 2030 is given in the “metrics and targets” pillar.
Admial’s supply chain patners will also, to a greater
or lesser extent, be exposed to the same risks from
climate change as the Group is. During 2022 Admial
has enhanced its due diligence question set to allow
it to capture and assess what its supply chain is doing
to suppot sustainability ambitions. The change to
the questionnaire allows Admial to dynamically tailor
questions based on a supplier’s response, allowing
Admial to risk assess the response. If a supplier’s
response demonstates no policies or procedures,
Admial issues an environmental assessment to the
supplier to capture futher information, and internal
contact owners are expected to develop remediation
plans with the supplier, to work towards ahead of
receipt of the next annual due diligence questionnaire.
Environmental impact of IT hardware
refresh progamme
Admial has undetaken a refresh progamme of IT hardware
and, as pat of the refresh progamme, appointed a supplier
to securely dispose of existing assets with a focus on the
environmental impact of disposal.
Almost 84 tonnes of equipment were processed, including
over 16,000 desktop displays, and laptop computers. 7% of
the devices were recycled and 93% were reused, representing
an estimated 5,000 tCO
2
e in avoided emissions and over 10m
litres of water use avoided.
40 For 2020 and 2021 veriication was peformed by Carbon Intelligence, across scope 1 (emissions arising from the combustion of natual gas), scope 2 (emissions arising from
purchased electricity), and scope 3 (emissions arising from waste geneated in opeations, business tavel, and water supply and treatment) to a standard limited assuance.
For this level of assuance, Carbon Intelligence provides a limited assuance statement asseting that there is no evidence that an emissions repot is not materially correct (a
materiality threshold of 5% at the gross organisational level has been applied for this exercise). The veriication assessment was undetaken against World Resources Institute/
World Business Council for Sustainable Development Greenhouse Gas Protocol: A Corpoate Accounting and Repoting Standard, Revised Edition (for scope 1 and 2) and against
World Resources Institute/World Business Council for Sustainable Development Greenhouse Gas Protocol: Corpoate Value Chain (Scope 3) (for scope 3)
Climate-related
oppotunity
TCFD
categoy Description
Shot-
term
0–5 years
Medium-
term
5–10 years
Long-
term
10+ years
Customer
switching from
petrol and
diesel vehicles
to EVs and other
alternative fuels
Products and
sevices: ability
to diversify
business
activities, shift
in consumer
preferences
• Increased revenue through demand for lower emissions products,
including the potential for new ancillay products and/or value added
sevices (e.g., EV home charger cover)
• Increased competitive advantage from capitalising on early pricing
learnings, enhanced supply chain management (including repairer
network), creating a LR advantage to competitors
• Reduction or elimination of some claims-types (e.g., wrong fuel claims)
Figure 3 Key climate-related oppotunities for Admial Group
Impact: Negligible/Minor Modeate Major Tansformative
Admial Group plc Annual Repot and Accounts 2022
103
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
To mitigate these risks, ESG consideations have been
embedded into the investment approach, and Admial
is following the Institutional Investors Group on
Climate Change (IIGCC) Net Zero Famework to help
guide the decarbonisation of the potfolio. Admial is
also increasing its investment in climate solutions,
with investments in green bonds and renewable
energy infastructure, and has targets to grow the
number of counterpaties which have a credible plan
to align emissions with a 2°C pathway, for example via
Science-Based Targets. Admial Group’s four largest
bond mandates, which account for approximately
37% of all investments, have requirements for fund
managers to reduce the aveage carbon intensity
of the potfolio by 25% by 2025, versus a year-end
2020 baseline, in line with the Group’s oveall net zero
target. This covers nearly all the assets which require
net zero targets under the Science-Based Targets
initiative and the Net Zero Famework from the IIGCC,
the balance largely being invested in cash, money
market funds, and government bonds. In addition,
the mandates exclude coal and tar sands (based on a
10% revenue threshold) and ensure that all energy and
mining sectors are either Paris-aligned or are subject
to engagement or stewardship activities. By 2025 the
potfolios also aim to have 5% green bonds, 35% of
the potfolio with Paris-aligned commitments, and a
tempeature score under 3.5°C.
The introduction of supply chain risk controls in
Admial’s contact management system has allowed
it to better assess the procurement categoy of
environmental risk. The embedding of supply chain
risk controls is ongoing, but it allows for increased
visibility at the early stages of sourcing and ongoing
discussion with the supply chain.
Investments
Climate change may impact the Group’s investment
potfolio via a number of mechanisms. Some of
Admial’s investments will be exposed to physical risks,
as changing climatic conditions impact businesses,
disrupt supply chains, and cause assets to lose value
prematurely. Other investments will be exposed to
tansition risks, as the move to a low carbon future
causes products, sevices, and entire business models
to become less attactive or, indeed, obsolete.
Some investments may also be exposed to liability
risks. Efects may be company-speciic, sector-
speciic, or may have an impact on the broader
economy and macro environment, for example via
reduced economic growth, higher unemployment,
or changes in inlation. The main consideation is
whether these risks expose Admial to default or
spread widening over the holding horizon, which on
aveage is approximately three years. While climate
change poses a risk to the Group’s investments,
the tansition to a low carbon economy should also
present investment oppotunities – Admial has
already invested in renewable energy infastructure,
green bonds, and other corpoate bonds with credible
tansition plans.
Read more about
our environment
on pages 13, 38
and 91 to 94
Read more
about seeding,
launching, and
scaling new
businesses at
Admial Pioneer
on page 36
Carbon removal ofsetting
According to the Oxford Principles “most ofsets available
today are emission reductions, which are necessay but not
suicient to achieve net zero in the long run. Carbon removals
scrub carbon directly from the atmosphere.” However,
consideation must still be given to how carbon is stored,
and for how long.
Over seveal years Admial has pursued steps to reduce
its opeational emissions, for example through eiciency
improvements, by purchasing electricity in the UK from
100% renewable sources (since 2015), and by installing solar
panels on the Cardif oice. Since 2019 Admial has ofset
its remaining opeational emissions (scope 1, 2 and patial
scope 3) via the purchase of Gold Standard carbon ofsets.
Admial does not consider these purchases to be “emissions
reductions”, ather, following the Oxford Principles, they are
considered “ofsets”. In addition, Admial suppots high-quality
forestation projects which provide carbon sequestation, in
Wales and abroad, via charities Stump Up for Trees and Size
of Wales.
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Admial Group plc Annual Repot and Accounts 2022
104
Stategic Repot
The NGFS “hot house world – current policies”
scenario assumes that no action is taken on climate
change so that global tempeature levels continue
to increase, reaching in excess of 3°C above pre-
industrial levels by 2050. This scenario has been
interpreted as resulting in increased incidents
of extreme weather events, impacting the UK
household, car, and van books. Speciically, it has
been assumed that a UK catastrophe inland lood
event occurs each year. For both scenarios it is
assumed that excess of loss reinsuance recoveries
would opeate.
The scenarios peformed highlight the developing
nature of climate scenario modelling, and give
comfot that the Group’s business model and
stategy should remain resilient to potential
climate-related impacts. The conclusions of
scenario analysis are that climate change presents
a stategic risk to Admial over the long-term and
may require management and mitigation in the
shot- and medium-term. The risks presented
by a tansition to a low-carbon economy are
potentially signiicant in the shot-term, assuming
no mitigating activities. However, Admial’s
stategy focuses on initiatives which should
mitigate this risk, and therefore is it considered
that Admial’s activities are aligned to a well-
below 2°C world. In such as tansition scenario,
the stategic focus will be to acceleate the motor
evolution and business diversiication pillars of
the Group’s stategy. Physical risks may have
the greatest potential impact on the Group’s
household insuance business in the long-term
– in such a hot house world the focus will be on
ensuring robustness of the core business via pricing
discipline and appropriate reseving.
The scenario modelling results are highly reliant
on a ange of assumptions, some of which
are considered vey unlikely to materialise.
Management and mitigating actions (e.g., annual
repricing of insuance policies, greater or diferent
use of reinsuance, changes to asset allocation in
the investment potfolio) are also not considered.
The output of this scenario analysis has been used
in discussions about future stategic direction,
including the relative attactiveness of diferent
products and markets.
Scenario testing
While qualitative assessments of the impact from
climate change are useful, it is also impotant to
quantify the impact where possible. Stress and
scenario testing is conducted as pat of the annual
ORSA process to understand the robustness of the
Group’s business model and stategy to the impact
of various risks. In addition to the standard ORSA
scenarios, two climate change scenarios were
peformed this year, scenarios from the Network
for Greening the Financial System (NGFS)
41
and
EIOPA’s 2022 climate change scenario. This builds
on Admial’s irst exploatoy exercise in modelling
climate change scenarios in the 2021 ORSA,
which was based on the BoE’s Climate Biennial
Exploatoy Scenario (CBES).
The two scenarios examined are “disorderly –
delayed tansition” and “hot house world – current
policies”. Note that these externally designed
scenarios are examined using their relevant and
applicable components for calibation based
on Admial’s exposure. Their calibation has
been modiied and adapted based on Admial’s
materiality, to understand the associated
implications on assets and on liabilities from
tansition risk (car book) and physical risk (primarily
household book). As with the other ORSA stress
and scenario tests, the period modelled is 2022-
2024 – the current focus is on shot-term impact,
as inherent uncetainty as well as developing
approaches to assessment mean there is less
conidence in medium-term and long-term
impacts. As modelling capabilities are futher
developed, there will be increasing focus on
medium- and long-term assessments.
The NGFS “disorderly – delayed tansition”
scenario assumes that the implementation of
policies needed to drive the tansition to net zero
is delayed until 2030, and is then more sudden
and disorderly, resulting in material shot-term
macroeconomic disruption. Under this scenario,
global warming is limited to an increase of 1.8°C by
2050. This scenario has been applied to Admial by
exploring the tansition risks from climate change
relating to the tansition of the UK motor book
from petrol/diesel vehicles to EVs, afecting the
proitability of the business. The key assumptions
underlying this scenario are mispricing of EV risks
by 15% and some additional ire and large losses
related to EVs.
41 NGFS Scenarios Potal, Data & Resources, NGFS
Admial Group plc Annual Repot and Accounts 2022
105
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Emerging Risks are identiied, assessed, and managed
via an internally developed famework, fully integated
into the ERMF, which evaluates the potential impact
to Admial via existing PR&Us or via new risks.
This methodology has been extended, utilising
external suppot, to individually assess the potential
impact of climate-related risk drivers – tansition,
physical and liability risks – across three distinct
timefames (0–5 years, 5–10 years, and 10+ years).
Risk management
Read more about
Electric Vehicle
trends on page 94
Products and sevices
The efects of climate change will be felt across
all lines of business, by all products and sevices,
and will play a pat in deciding what future business
oppotunities to pursue. The efects will require
a response across the value chain, from pricing to
undewriting, and from claims management to
product design.
The most obvious impact from climate change will
be the physical risk to the household lines of business.
Climate change is causing sea levels to rise and is
also causing more frequent and heavier ainfall,
increasing the risk of looding. Changes in weather
patterns may also increase the incidence and severity
of storm and freeze events, as well as hailstorms and
subsidence. Together these indicate that an increase
in the volume and value of household claims is likely.
Physical risks may also cause opeational issues: in
Februay three storms – Dudley, Eunice, and Fanklin –
hit the UK in quick succession, causing a large increase
in the number of new claims, however a surge plan
was executed which saw the wider business help with
FNOL communications which allowed household
staf to focus on vulneable customers.
Since launching the UK household business in 2012,
Admial has sought to control its exposure to lood
risk by developing an understanding of the risk at a
ganular geogaphical level, which has been coupled
with a consevative appetite for undewriting such
risk. By paticipating in the Flood Re scheme Admial
can undewrite propeties which are outside of its
acceptable lood criteria by ceding the lood risk to
Flood Re, while still ofering customers protection
via undewriting all other perils. Risk modelling is
continually updated and improved, while perils-
based pricing allows for interrogation of speciic
concentations of risks.
Physical risks may also impact the motor insuance
books, for example via increasing frequency of hail
events, or via increasing severity of US hurricane
seasons afecting the US business.
Admial is also exposed to tansition risk, most clearly
via the motor insuance books. Any move to reduce
aggregate greenhouse gas emissions could see a
conceted move away from taditional models of
tanspot reliant on private petrol and diesel vehicles,
to a model of integated and active tanspot,
reliant on electric and alternatively fuelled vehicles,
both privately owned and shared, and public tanspot.
Indeed, sales of new petrol and diesel vehicles will
be banned in the UK from 2030. The loans business
may also be afected in the longer-term as reducing
demand for petrol and diesel vehicles may see residual
values fall, a risk factor to which Admial is exposed
via PCP loans. There might, however, be an ofsetting
increase in demand for loans to fund EV purchases or
to fund “green” home improvements.
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Aligned to the third pillar of the Group’s stategy,
“evolution of motor”, Admial has a strong electric
vehicle ofering, which will help counteact the
expected long-term decline in the number of petrol
and diesel vehicles on the road. The ofering, which is
continuously being developed and expanded,
is discussed futher on page 94. In order to realise the
oppotunities of the Group’s second stategic pillar –
“diversiication” – Admial launched Pioneer to explore
and invest in new ventures and emerging consumer
needs. This will help counteact any long-term move
away from private vehicle ownership, including
private electric vehicles, to more integated tanspot
solutions. Pioneer is discussed futher on page 36.
Taken together, these areas of work will help suppot
Admial in the tansition to a low-carbon economy.
Admial Group plc Annual Repot and Accounts 2022
106
Stategic Repot
Identiication
There is no one deinitive source for climate change
risks: diferent geogaphical regions, diferent
industries, and diferent companies will have difering
expectations of the impacts that they will face in
the future. Therefore, Admial Group’s identiication
of the way that climate change risks may impact
the business, and any resulting oppotunities,
follows a multi-stage process which attempts to
incorpoate internal viewpoints and forecasts (e.g.,
from depatmental expetise, insight from working
groups, committees, and boards) with those from
external sources, both insuance-speciic and
more broadly.
The assessment is peformed at the level of tansition,
physical and liability risks, however microeconomic
and macroeconomic tansmissions channels – the
causal chains linking climate risk drivers to the
opeational and inancial risks faced (as per the
Bank for International Settlements) – speciically
applicable to each business line are also considered.
This allows the potential impact from climate
change on all current and potential future lines of
business, on opeations and investments, as well as
oppotunities, to be identiied. Existing and emerging
regulatoy requirements related to climate change
are considered.
Assessment approach
Given the highly uncetain nature of climate change
risks – the tansmission mechanism of the risks,
the magnitude of their impact, the cetainty of their
impact, the efect of their impact, and the timing of
that impact – they do not sit natually in standard risk
measurement and management processes. Instead,
a hybrid approach, which comprises both qualitative
and quantitative approaches, must be utilised.
Climate change risks, and any resulting oppotunities,
are initially evaluated qualitatively. A risk matrix
approach is employed, whereby the potential impact
of the risk (scored between minor and catastrophic)
is considered alongside the likelihood of impact
(scored between are and almost cetain) in the
shot-, medium- and long-term. Where appropriate
a quantitative approach to analysis and evaluation is
also taken, informed by the qualitative assessment:
seveal scenarios were included as pat of the
stress and scenario testing section of the Group’s
ORSA submission.
Key risks and oppotunities are discussed above in the
“stategy” pillar.
Management and mitigation
Admial uses industy-standard lood and catastrophe
models to understand its underlying risk and hence
what amount of risk is accepted, what amount of risk
is mitigated, and the reinsuance protection deemed
appropriate for risk tansfer. Admial’s approach
to pricing is the key tool for managing/mitigating
climate-related risks but, given its commercial
sensitivity, the approach is not disclosed.
As the assessment methodology is based on the
existing Emerging Risk assessment methodology,
integation into the ERMF is staightfoward.
Therefore, climate change risks and oppotunities
are repoted to the GRC via the CRR, and annually as
pat of the Group’s ORSA Repot submission. They are
also repoted on to the Group Board, management
committees, and to subsidiay Boards and committees.
This monitoring and repoting ensures that the
highest level of company management is aware of the
risks and oppotunities, can account for them in future
business planning and stategy setting, and can devise
management actions to mitigate their efects or to
capture any resulting oppotunities.
As described in above, the key risks faced by Admial
are not currently assessed to be severe or critical/
catastrophic. The primay approaches for risk
mitigation are: execution of stategy for mitigation
of tansition risks; and disciplined pricing, assessment
of impact by peril, and regular assessment of the
reseving approach as mitigation for physical risks.
Extensive use of co-insuance and reinsuance is the
primay approach for tansfer of physical risks.
The Regulatoy Compliance team, pat of Group
Compliance, monitors and reviews publications
and pronouncements from various regulators,
supevisors, and tansnational bodies, including but
not limited to the FCA, the PRA, the Bank of England,
and EIOPA. Summaries are distributed to relevant
stakeholders as and when material is published, a
monthly round-up is distributed more broadly across
the Group, and a representative from the Regulatoy
Compliance team is a member of the Climate
Steering Group.
Read more about
Principal Risks
And Uncetainties
on pages 114
to 121
Read more about
Emerging Risks
on page 121
Admial Group plc Annual Repot and Accounts 2022
107
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Table 1 Veriied
45
Group greenhouse gas emissions (ton CO
2
e)
Scope 2021 2020 2019
Scope 1 1,149 1,121 1,364
Scope 2 (market-based) 1,189 1,798 1,262
44
Scope 3 (patial) 96 535 1,945
Total 2,434 3,454 4,572
YoY reduction (scope 1 and 2) –20% +11%
YoY reduction (scope 1, 2 and patial scope 3) –30% –24%
42 As per Greenhouse Gas Protocol deinitions, scope 1 emissions are direct emissions from owned or controlled sources (natual gas, fugitives, company
cars), scope 2 emissions are indirect emissions from the geneation of purchased energy. Limited scope 3 emissions cover business tavel, water, waste,
and distribution losses for purchased electricity. Veriication for this limited scope was decided upon as these are the emissions more directly in Admial’s control
43 Note that 2019 carbon footprint was veriied by Carbon Trust.
44 Note that scope 2 emissions increased in 2020 (versus 2019) due to more accuate data capture from non-UK entities. 2019 relied more heavily on estimation
for non-UK entities
45 2021 and 2020 data has been veriied by Carbon Intelligence; 2019 data has been veriied by Carbon Trust
to physical risks is not considered to be material or
relevant, given that most of Admial’s business is based
on shot-term (typically annual) agreements, and does
not tie in exposure to the medium- or long-term
efects of climate change.
Note that veriication of Admial’s scope 3 emissions
is near inalised, and then work will begin to set
Science-Based Targets, which will complement the
Group’s oveall net zero ambitions, for example by
providing shot-term GHG emissions reductions
targets. It is intended to submit Science-Based Targets
for veriication in 2023. Climate-related metrics have
not yet been integated into remuneation policy,
however work to address this is being considered
and is linked to the setting of Science-Based Targets.
Admial does not make use of an internal carbon price.
Opeations
Admial recognises that its opeations are
contributing to climate change, and the Group
take its responsibility for reducing this impact
seriously. Therefore, as discussed above, Admial has
pursued steps to reduce its opeational emissions
and, since the baseline year of 2019, has ofset its
remaining scope 1, 2 and patial scope 3 emissions
42
.
However, Admial also recognises that ofsetting
emissions is not enough, and therefore is working
hard to reduce the absolute level of its opeational
emissions: in 2021 the Group’s scope 1, 2 and patial
scope 3 emissions, as veriied by Carbon Intelligence,
were 2,434 tCO
2
e, an improvement of 30% versus
2020 and 47% versus 2019
43
. Scope 1 and 2 emissions
have reduced due to building closures and consideate
building use
(e.g., reduction in utilities use), though scope 1
emissions increased in 2021 as compared to 2020 due
to increased gas usage, due to colder weather, and two
refrigeant leaks, related to air conditioning systems.
Scope 3 emissions reductions are largely related to a
decrease in business tavel.
Good progress has been made in 2022 regarding
the collection, veriication, and repoting of data,
for example by focusing on own collection of data
ather than relying on landlords, automating data
collection where possible, and working closely with
fund managers.
Metrics relevant to opeations, investments, and
products and sevices are discussed and/or disclosed
in the following sections, however numerical values
which may be considered commercially sensitive
are not included. Metrics for tacking oppotunities
are largely the same as metrics for tacking risks as,
for example, the risks and oppotunities from a move
to EVs come from the success or failure in capturing
proitable business in this developing market.
Other cross-industy climate-related metrics which
are not disclosed are not considered to be material
and/or relevant. For example, the amount and extent
of business activities vulneable to tansition risks or
Metrics and targets
Read more
about Our Society
– Environment
on page 91
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Admial Group plc Annual Repot and Accounts 2022
108
Stategic Repot
Investments
As a inancial sevices company, the majority of
Admial’s emissions are likely to be categoy 15
emissions (pat of scope 3) from the investment
potfolio. Therefore, when the Group set its ambitious
net zero targets, it was impeative to include these
emissions in the emissions reduction targets.
Admial has therefore committed to achieving a
reduction in investment-related greenhouse gas
emissions of 25% by 2025, and of 50% by 2030,
reaching net zero greenhouse gas emissions by 2040
at the latest – aligned to the oveall target.
To ensure that these targets are met, Admial has
developed an investment proposal to align its
corpoate bond mandates to the Paris Agreement,
following the Net Zero Investment Famework,
which is a pactical blueprint for achieving net zero
emissions by 2050, and which has been endorsed by
the UN’s Race to Zero campaign. The proposal has
seveal features including reducing emissions through
time and increasing investment in climate solutions.
There will not be blanket divestment rules, but instead
Admial’s investment managers are expected to be
engaging with companies which could, as last resot,
possibly lead to divestment and reinvestment in less
carbon-intensive names through time.
Seveal challenges should be noted: sourcing
reliable and consistent data; avoiding unintentional
consequences such as high concentation in cetain
sectors or investments; and reliably determining
the expected risk and return impact of such a
stategy. However, in order to guide and review
progress towards oveall targets, a number of metrics
are tacked, some of which are shown in Table 2.
Investment metrics are calculated by identifying
in-scope non-cash assets and applying MSCI ESG
data on a per security basis. Various metrics are
subsequently calculated at a whole potfolio level.
Table 2 Climate-related investment metrics
Metric 2022 2021
Weighted aveage carbon intensity 69 tCO
2
e/$m sales
46
71 tCO
2
e/$m sales
47
Investment in holdings with conirmed SBTs £485m £422m
% Allocated to coal and oil sands 0% 0%
Investment in Green bonds £100m £74m
46 55% potfolio coveage. 61 tCO
2
e/$m sales for benchmark. Note that potfolio coveage has dropped as compared to 2021 (see footnote 47) due to an
increasing allocation to non-covered assets such as government bonds and private debt
47 67% potfolio coveage. 83 tCO
2
e/$m sales for benchmark
GHG emissions are quantiied in alignment with the
World Resources Institute’s Greenhouse Gas Protocol
Corpoate Accounting and Repoting Standard and
are discussed futher in the SECR section of the
annual repot on page 95. Unveriied emissions data,
including for 2022, as well as a description of the
methodology used to estimate metrics if data is
missing, is also included.
Admial is a inancial sevices company, and therefore it
has a low opeational footprint when compared to its
complete carbon footprint, including the supply chain
and investment potfolio. This is even more likely to be
the case given the efots made over the past decade
to improve the eiciency of its buildings and to reduce
its energy consumption. This is why, in order to make
a meaningful diference in the global efot to tackle
climate change, it is impotant to include all emissions
in the Group’s net zero ambitions, including all scope
3 emissions.
Admial Group has formally committed to ambitious
net zero targets, committing to achieving net zero
greenhouse gas emissions by 2040 at the latest,
across all three scopes of emissions, and to cut these
emissions in half by 2030. A commitment was also
made to achieving net zero in opeational emissions
by 2030.
There is a high level of alignment between Admial
Group’s announced targets and the ABI’s climate
change roadmap, published in July 2021: intermediate
targets of a 50% reduction in emissions by 2030
are aligned, both cover all scopes of emissions,
however Admial is targeting net zero by 2040,
ten years ahead of the ABI’s roadmap.
Futher opeational metrics are discussed in the
Streamlined Energy and Carbon Repoting disclosure,
found on pages 95 to 96.
Read more
about SECR
disclosure
on pages 95–96
Admial Group plc Annual Repot and Accounts 2022
109
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Tansition risks
The move away from petrol and diesel vehicles is
the most obvious tansition risk faced by the Group,
and is one which presents a stategic challenge to
us. Consideable efots have been made to mitigate
the risk of a tansition to electric vehicles (EVs) and
alternatively fuelled vehicles (AFVs), both via new
and existing businesses, which have invested in
developing and testing new products and product
features to meet developing customer requirements.
The tansition to a low carbon economy may see an
erosion of Admial’s taditional competitive advantages
in pricing and claims handling, as petrol and diesel
cars are replaced with EVs and AFVs. Conversely,
this tansition could present an oppotunity for Admial
to build competitive advantages in these areas.
Admial monitors market-wide metrics, which are
repoted on monthly in management packs and
discussed at relevant foa, such as the propotion of
new vehicle registations which are EVs or AFVs, as
well as internal metrics capturing the attactiveness
and competitiveness of the EV proposition, the claims
experience, and the customer experience more broadly
(e.g., Times Top, market share, loss atio – all of which
would be considered commercially sensitive). This is
done to ensure that the Group is developing adequate
capabilities in these new technologies.
Admial’s purpose is to “help more people look after
their future. Always striving for better, together.”
By developing products and sevices which not only
help mitigate the worst efects of climate change,
but also help suppot a tansition to a low carbon
future, Admial is doing just that.
Products and sevices
As discussed above, the efects of climate
change may impact all of Admial’s business lines.
Physical risks, which may be managed via risk selection
and reinsuance protection, might be more prominent
in Admial’s household businesses. Tansition risks may
be felt more keenly in the motor businesses, though the
“diversiication” pillar of the Group’s stategy is designed
to mitigate this impact, in paticular the creation of
Pioneer in 2020 to focus on new business oppotunities.
Physical risks
Admial is exposed to both acute and chronic physical
risks, however in the shot- to medium-term the most
impactful risk is likely to be increasingly severe and
frequent windstorms, loods, and freeze events.
To mitigate and manage these risks Admial takes a
lexible and proactive approach to risk selection and
pricing, ensuring that written business is within risk
appetite, and that projected loss atios and combined
atios lead to proitability over the cycle.
As a UK insurer, Admial takes pat in the Flood Re
scheme, which is designed to allow insurers to ofer
more afordable insuance for homes built before
2009 in areas most at risk of looding. The volume
and value of policies ceded to Flood Re is monitored
on an ongoing basis.
Admial also utilises quota share reinsuance
arangements extensively, including both catastrophe
and aggregate cover for household lines. These are in
place to provide protection against an accumulation
of claims associated with a weather catastrophe event.
Admial tacks a number of climate-related metrics,
such as modelled burn cost per peril and number
and value of weather-event-related claims, in order
to assess its exposure to climate-related risks
however, in the main, these would be considered to
be commercially sensitive. Admial is able to disclose
the metrics shown in Table 3, as per the Sustainability
Accounting Standards Board standard.
Read more
about Electric
Vehicle trends
on page 94
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Admial Group plc Annual Repot and Accounts 2022
110
Stategic Repot
Table 3 Physical risk metrics
Description Metric
Probable Maximum Loss (PML)
of insured products from weather
related natual catastrophes
• Admial utilises various methods and evaluations to make
undewriting and reinsuance decisions that manage the
Group’s exposure to catastrophic events. Across the Group’s
insuance book, the main weather-related risks exist in
relation to Admial’s UK Household book, as well as the US
Motor book
• Admial’s Household excess of loss reinsuance provides
catastrophe cover with a limit that is consideably higher
than the estimated 1-in-200 loss. As of Januay 2023,
this was estimated to be £470–510 million from loods and
storms for the UK Household Insuance business. Admial’s
excess of loss deductible is £50 million, and the 70% quota
share leads to a net event loss of £15 million
• In relation to Admial’s UK Car Insuance business, the
1-in-200 estimated possible loss as of December 2022 was
£90–115 million. Admial currently has £80 million of cover
from the motor excess of loss reinsuance and a futher
£5 million from the propety excess of loss reinsuance.
Therefore, after the £12 million deductible, Admial is
covered up to a £97 million single event
• In relation to the US Motor Insuance business, the
1-in-200 estimated possible loss as of August 2022 was
$17–20 million. The US business has $21.5 million of cover
from the Motor excess of loss reinsuance. Therefore,
after the $3.5 million deductible, the US business is covered
up to a $25 million single event
Total amount of monetay
losses attributable to insuance
pay-outs from (1) modelled natual
catastrophes and (2) non-modelled
natual catastrophes, by type of
event and geogaphic segment
(net and gross of reinsuance)
Admial Group does not sepaately identify losses by modelled
and non-modelled catastrophes. However, the table below
provides some details on the weather-related losses following
natual catastrophes in relation to the UK Household book,
which represents the main weather-related risk from across
the Group’s opeations. The table covers propety catastrophe
losses above £5.0m across 2018–2022.
Period Perils Paid (£m) Incurred (£m)
2018 Freeze, lood, and storm 10.4 10.4
2019 Flood and storm 0 0
2020 Flood and storm 0 0
2021 Flood and storm 5.3 5.0–6.0
2022 Freeze, lood, and storm 8.0 20.0–30.0
Read more
about Our Society
– Environment
on page 91
Admial Group plc Annual Repot and Accounts 2022
111
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
The Board of Directors conirms that during the year under
review, it has acted to promote the long- term success of the
Company for the beneit of shareholders, whilst having due
regard to the matters set out in section 172(1)(a) to () of the
Companies Act 2006, being:
(a) the likely consequences of any decision in the long-term
(b) the interests of the Company’s employees
(c) the need to foster the Company’s business relationships with
suppliers, customers, and others
(d) the impact of the Company’s opeations on the community
and the environment
(e) the desiability of the Company maintaining a reputation
for high standards of business conduct.
() the need to act fairly between members of the Company
During 2022, the Board reviewed and reairmed that of the
six stakeholder groups, (customers, people, suppliers and
patners, shareholders, community, and the environment),
each continued to be stategically impotant to the long-term
success of the Group’s opeations, the stakeholders maintain
unchanged from the group wide stakeholder materiality
exercise as detailed in the 2021 Annual Repot. As pat of
the 2022 review, the Board considered the current approach
to corpoate governance and engagement in relation to
the interests of each of its stakeholders.
S.172 factor Relevant disclosure Page
Consequences of decisions
in the long term
Principal decisions
Board appointments
Board activity during the year
Diferent stakeholder sections
148 to 152
130 to 135
138 – 139
68 – 94
In the interests of employees Principal decisions
Employee stakeholder section including employment
engagement, communication
Employee Consultation Group
Non-Financial Information Statement
Diversity
Hybrid Working
148 to 152
77 to 81
145 – 147
113
78 – 80
28, 78, 93, 129 and 142
The need to foster business relationships
with suppliers, customers, and others
Principal decisions
Stakeholder sections
Consumer Duty
148 to 153
68 – 94
75, 75, 119
The impact of the Company’s opeations
on the community and environment
Principal decisions
Stakeholder sections
TCFD disclosures
Sustainability
148 to 153
68 to 94
97 to 111
38 – 39
Maintaining a reputation for high
standards of business conduct
Principal decisions
Awards
Stakeholder sections
Culture
Group Minimum Standards
Diversity & inclusion
Health and Wellness
Conduct risk
Whistleblowing
Chief Executive statement
148 to 152
79
68 to 94
10, 70, 77 – 81
178
78, 80, 159 – 160
81
120
144
20 – 23
Fairness between members Principal decisions
148 to 152
Section 172 Statement
In prepaation for the review, discussions were held with the
internal relationship owners within Admial Group, on our key
information feeds, existing engagement methods, feedback
processes and the activities and plans for the year.
A Board agenda planner set out the matters to be considered by
the Board during the year, and this was subsequently reviewed
and updated at each Board meeting in 2022.
Board papers during the year were accompanied by a sepaate
document outlining which stakeholders could be afected
or impacted by the paper, along with an explanation of how
stakeholder interests had been considered prior to the aising
of the matter at the Board meeting. The accompanying papers
also shared the likely consequence of any Board decision on each
stakeholder group identiied, and how the impact on stakeholders
could be monitored.
Examples of how stakeholder engagement and section 172(1)
matters have inluenced Board discussion and decision making
during the year can be found in the principal/ non-routine/
signiicant decisions in 2022 on pages 148 to 152.
The below table sets out where key disclosures in respect of each
of the section 172(1) matters can be found:
Admial Group plc Annual Repot and Accounts 2022
112
Stategic Repot
Non-Financial Information Statement
Group policies
The below policies can be located here on our website www.admialgroup.co.uk
Geneal
Standards
of Conduct
Our Geneal Standards of Conduct outline the conduct standards that all colleagues must adhere to regardless
of their role.
Health
and Safety
Our Health and Safety Policy outlines our commitment to ensuring the health and safety of staf and anyone
afected by our business activities, and our commitment to providing a safe environment for those attending
our premises.
Diversity and
Dignity at Work
Our Equality, Diversity and Dignity at Work Policy outlines that Admial is committed to ensuring that any type
of discrimination is not accepted. This policy outlines the standards of behaviour that are expected from all
members of employees, to ensure that eveyone at Admial is treated with dignity and respect. This policy
explains that all managers should be alet to potential discrimination and haassment and actively prevent them
from occurring, communicate this policy to all employees, and be responsive and suppotive to anyone who
makes a complaint.
Procurement
and
Outsourcing
Our Group Procurement and Outsourcing Policy conirms that all employees who engage in procurement
activity are expected to enhance and protect the standing of the business, maintain the highest standard of
integrity in all business relationships, promote the eadication of unethical business pactices, and ensure full
compliance with laws and regulations.
Anti-Bribey Our Anti-Bribey Policy strictly prohibits the solicitation or acceptance of any bribe, to or from any person or
company, by an individual employee, Board member, agent or other person or body on Admial’s behalf, in order
to gain any commercial, contactual, or regulatoy advantage for Admial in an unethical way or to gain any
personal advantage for the individual or anyone connected with the individual.
Gifts and
Gatuities
Our Gifts and Gatuities Policy recognises that sometimes customers, suppliers or business associates ofer
gifts or gatuities to staf and conirms that all such gifts must be made and received openly and fairly.
Whistleblowing Our Whistleblowing Policy encouages and enables employees to aise any concerns they have about serious
malpactice or wrongdoing. The policy is designed to ensure that an employee can aise their concerns without
fear of victimisation, subsequent discrimination, disadvantage, or dismissal. This policy details internal and
external repoting lines for any employee concerns.
Financial
Crime
Our Financial Crime Policy ensures that robust systems and controls are in place to detect, prevent and deter
inancial crime across the Group and ensures we remain compliant with applicable laws and regulations in our
opeational jurisdictions. All areas of inancial crime are captured by this policy, including money laundering,
market abuse & insider tading, sanctions regime, modern slavey, tax evasion and Bribey & Corruption.
Modern
Slavey
Our Anti-Slavey, Exploitation and Human Taicking Policy conirms Admial’s zero toleance approach to
modern slavey, outlines our ongoing commitment to eliminating unethical working pactices, and provides
guidance to employees on repoting any problems identiied at work or in the community. We release an annual
Modern Slavey Statement in line with the Modern Slavey Act 2015.
Tax Our Tax Stategy Policy documents our approach to taxation. The policy conirms that the Group’s primay
objective is to be compliant with all tax legislation requirements in all the territories in which we opeate.
The non-inancial repoting requirements contained
in sections 414CA and 414CB of the Companies Act
2006 are addressed within this section by means of
cross reference, to indicate where they are located
within the stategic narative and to avoid duplication.
Sustainability
38 Our Approach to Sustainability
10 Culture and Values
78 Employees Diversity and Inclusion
87 Community Engagement
94 Responsible Investments
Climate disclosure
97 Task Force on Climate-related
Financial Disclosures
95 Streamlined Energy and Carbon Repoting
Governance
114 Risk
136 Governance
Our business
6 Business Model
28 Stategy
11 Financial Stability
40 Key Peformance Indicators
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Principal Risks and Uncetainties
The Board, with suppot from the Group
Risk Committee and the Group Risk function,
undetakes a regular and robust assessment
of the principal and emerging risks facing
the Group alongside engaging with the
management team on the Group Stategy.
These risks have been summarised as those
which would threaten its business model,
future peformance, liquidity and solvency.
The table overleaf sets out the principal risks which
Admial has identiied through its Enterprise Risk
Management Famework (ERMF). The impact of those
risks and actions taken to mitigate them are explained
below. This section also includes a description of
Admial’s approach to identify, manage and govern
emerging risks.
Risk Appetite: The Admial Group risk stategy contains
stategic risk statements for the relevant risks
which help deliver the Group’s business objectives.
The Group risk appetite is owned and approved by
the Admial Group Board. The responsibility for the
Group risk appetite is delegated to the Group Risk
Committee which reviews all components prior to
Board approval and monitors the peformance of the
business against the approved Group risk appetite
through the consolidated risk repot.
Principal risks (A–K)
Insuance Risk:
A
Reseving risk in the UK and
international insuance
B
Premium risk and catastrophe risk
C
Reduced availability of co-insuance
and reinsuance arangements
D
Potential diminution of other revenue
Group Risk:
E
Erosion of competitive advantage
in UK car insuance
F
Failure of geogaphic and/or
product expansion
G
Reliance on UK price comparison
distribution channel
Credit Risk:
H
Credit risk
Market Risk:
I
Market risk
Opeational Risk:
J
Legal and regulatoy risk
K
Opeational risk
1
Admial 2.0: Increase speed of delivey
on customer needs, continuing
to upgade UW capabilities and
opeational excellence.
2
Business Diversiication: Increase
customer engagement and business
resilience, enriching our proposition
beyond motor.
3
Motor Evolution: Evolve our proposition
for changes in mobility.
Unsurprisingly, given external events, the risk
proile of the Group has changed since 2021.
Opeational risk has reduced, as the Group
becomes more familiar with opeating in
the post-Covid-19 business environment,
however many other PR&U are trending up,
driven by unprecedented levels of inlation,
supply chain challenges, and economic and
market turmoil. This trend of increasing risk
is anticipated to continue into 2023 due to
continued uncetainty.
Principal risks and uncetainties relect the
main risks faced by the company in achieving
its stategic objectives. Our stategic
objectives have been listed below with the
links to our stategy noted against each
principal risk and uncetainty (for more
information on the stategy refer to pages
28–37. Alongside these three pillars there
are two suppoting stategies covering the
customer and the Group culture which are
cental to eveything the Group does.
Identification
of risks
Admial Group plc Annual Repot and Accounts 2022
114
Stategic Repot
Reseving risk in the UK and international insuance
Possible
impact on
our stategic
initiatives
1
2
Risk
Admial is exposed to reseving risk through its
undewriting of motor, household and other insuance
policies. Claims reseves in the Financial Statements may
prove inadequate to cover the ultimate cost of claims
which are by nature uncetain.
This is a paticular risk for motor insuance liabilities,
where the amount payable for bodily injuy claims
(paticularly large claims) can change signiicantly during
the lifetime of the claim as a result of external risks such
as changes in Ogden ates (expected in 2024), impacts of
increased levels of Periodical Payment Orders (PPOs) and
claims inlation.
Impact
During this period, increased uncetainty in forecasting
both the level and duation of the impact of higher
inlation ates on claims reseves may lead to adverse
run-of and higher claims costs than projected.
PPO claims are capital intensive owing to increased
uncetainty of the cost of signiicant claims over a
longer term.
Mitigating Factors
The Group continues to reseve consevatively,
setting claims reseves in the Financial Statements well
above actuarial best estimates to create a margin held
to allow for unforeseen adverse development.
Best estimate reseves are estimated both internally
and externally by independent actuaries.
For vey large claims Admial purchases excess of loss
reinsuance, which mitigates a potion of the loss.
Regular reviews of both settled and potential PPO
cases are undetaken by the Claims and Actuarial teams,
with independent actuarial analysis provided as pat of
the external reseving process.
Admial’s investment stategy is the result of a
structured, disciplined and tansparent investment
process. Long-dated inlation linked assets are held to
patly hedge the risks associated with PPO claims.
Premium risk and catastrophe risk
Possible
impact on
our stategic
initiatives
1
2
3
Risk
The Group is exposed to the risk that inappropriate
premiums are charged for its insuance products
leading to either insuicient premiums to cover claims
cost or uncompetitive ates leading to reduced business
volumes. This risk is increased during periods of high
inlation leading to greater market uncetainty.
The risk of increased claim costs and/or reduced
business volumes could be driven by potential economic ,
social, environmental, regulatoy or political change such
as the Russia-Ukaine conlict, impacting supply chains or
new entants to the market.
Admial is exposed to the risk of higher losses than
anticipated due to the occurrence of manmade
catastrophes or natual weather events, potentially
increased in frequency and severity due to climate change.
Acute physical climate risks include changes in the
frequency of both large catastrophe events and severe
weather events, where trends are diicult to identify,
and which have large claims costs associated with them.
Impact
Higher claims costs, reduced business volumes
and/or higher loss atios, resulting in reduced proits
or undewriting losses.
A large lood or windstorm, causing extensive propety
damage (both motor and household) to a signiicant
propotion of the potfolio, could lead to a larger than
anticipated total claims cost.
Mitigating Factors
There are a number of aspects which contribute to
Admial’s strong UK undewriting results, including:
• Experienced and focused senior management
and teams in key business areas including pricing
and claims management
• Highly data-driven and analytical approach
to the regular monitoring of claims and
undewriting peformance
• Capability to identify and resolve underpeformance
promptly through changes to key peformance
drivers, paticularly pricing
• Continuous appaisal of and investment in employees,
systems and processes
• Monitoring the impact arising from climate change
risks, covering both physical and tansitional risks,
as well as other Emerging Risks which may impact
premium or catastrophe drivers
Admial purchases excess of loss reinsuance, which is
designed to mitigate the impact of vey large individual
or catastrophe event claims.
A
B
Insuance Risk
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Reduced availability of co-insuance and reinsuance arangements
Possible
impact on
our stategic
initiatives
1
2
3
Risk
Admial uses propotional co-insuance and reinsuance
across its insuance businesses to reduce its own
capital needs (and to increase the return on the capital it
does hold) and to mitigate the cost and risk of establishing
new opeations. There is a risk that suppot will not be
available or that it will be available at an uneconomical
price in the future if the results and/or future prospects of
either the UK businesses or (more realistically) one or more
of the less well-established opeations are not satisfactoy
to the co- and/or reinsurers.
Climate change could lead to system-level shifts in
conditions in the natual environment. A higher frequency
and severity of extreme weather events, as well as
increased chronic physical risks, could increase the cost of
reinsuance protection for insurers. Climate change could
impact reinsuance structures if more events are hitting
reinsuance layers, potentially leading to changes in terms
and conditions or premiums.
Impact
A potential need to aise additional capital to suppot
an increased undewriting share. Return on capital might
reduce compared to current levels.
Mitigating Factors
Admial mitigates the risk to its reinsuance
arangements by ensuring that it has a diverse ange
of inancially secure patners.
Admial continues to enjoy a long-term relationship
with a number of diferent reinsurers, some of which
are amongst the world’s largest.
These long-term arangements are in place
throughout the UK and International businesses.
Potential diminution of other revenue
Possible
impact on
our stategic
initiatives
1
2
3
Risk
Admial earns other revenue from a potfolio of
products and sevices in addition to the core insuance
products. The level of this revenue could diminish due
to: political, regulatoy, legal, social/customer behaviour,
stategic, market or economic changes.
Impact
Lower proits from business opeations and lower return
on capital.
Mitigating Factors
Admial continuously assesses the value to its customer
of the products it ofers and makes changes to ensure
the products continue to meet customer needs and
ofer good value.
Admial seeks to minimise reliance on any single
source by earning revenue from a ange of products.
This would mitigate the impact of regulatoy or
market changes, or changes in consumer behaviour,
which might afect a paticular product or
income stream.
Admial works closely with its regulators
and other key industy bodies to understand
potential developments.
C
D
Principal Risks and Uncetainties
continued
Admial Group plc Annual Repot and Accounts 2022
116
Stategic Repot
Erosion of competitive advantage in UK car insuance
Possible
impact on
our stategic
initiatives
1
2
3
Risk
Admial typically maintains a signiicant combined
atio advantage over the UK market. This advantage
and/or the level of undewriting proit (and associated
proit commission) could be eroded. This risk could
be exacerbated by: unfavouable loss or expense atio
results, irational competitor pricing, new technologies
used within the insuance market and/or regulatoy
market intevention. It may arise from new or existing
competitors, or outcomes from legal or regulatoy
change such as the FCA’s pricing pactices.
Impact
A worse UK car Insuance result and lower return on
capital employed.
A sustained and uncorrected erosion of competitive
advantage could afect the ability of Admial to maintain
its reinsuance arangements, which might in turn require
Admial to hold more capital.
Mitigating Factors
Admial’s focus remains on the wide ange of
factors that contribute to Admial’s combined atio
outpeformance of the UK Motor market. Some are
set out earlier in the Stategic Repot, but other
factors include:
• A tack record of innovation and ability to react
quickly to market conditions and developments
• A focus on maintaining a low-cost infastructure
and eicient acquisition costs
• An experienced and focused management team
• A robust pricing discipline to ensure
prudent behaviour to ty and protect our
competitive advantage
• A strong Admial band and customer orientated
culture to attact and retain customers
Failure of geogaphic and/or product expansion
Possible
impact on
our stategic
initiatives
1
2
3
Risk
In line with the Group’s diversiication stategy,
Admial continues to develop its other UK insuance
businesses, non-insuance businesses such as Admial
Money, and its international businesses. Admial Pioneer
is the vehicle for the development and launching of new
products and sevices, other than those already covered
by existing established Group businesses.
One or more of the opeations could fail to become
a sustainable, proitable long-term business.
Product expansion into new areas could lead to
unproitable business, could increase regulatoy risk,
and may introduce new risks into the Group.
Growth in developing businesses could exceed the scale
of infastructure of the opeation.
Impact
Higher than planned losses (and potentially closure costs)
and distaction of key management.
A collective failure of these businesses would threaten
Admial’s objective to diversify its earnings by expanding
into new markets and products, though any single failure
of product or geogaphy is likely to be toleable.
The UK car business, which continues to peform strongly,
is largely unafected by this risk.
Mitigating Factors
Admial’s approach to expansion and product
development remains consevative, applying the
test-and-learn philosophy that has proven successful
for previous opeations. International insuance
businesses have geneally executed cautious launch
stategies and are usually backed by propotional
reinsuance suppot which provides substantial
mitigation against stat-up losses in the early years.
The Directors are mindful of management
stretch and regularly assess the suitability of the
infastructure and management structure in place
for Admial’s new UK and international opeations,
alongside oversight and challenge from appropriate
boards and committees.
The Group has established a suiciently large and
diverse potfolio in order to mitigate the risk of failure
of individual new opeations.
E
F
Group Risk
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Reliance on UK comparison distribution channel
Possible
impact on
our stategic
initiatives
1
2
3
Risk
Admial is dependent on the four main UK comparison
websites as an impotant source of new business and
growth. Growth in this distribution channel could slow,
cease or reverse, or Admial could lose one or more of
the websites as a source of customers.
Impact
A potentially material reduction in UK insuance new
business volumes, in paticular for UK Motor.
However, a more competitive market might beneit the
insuance businesses through lower acquisition costs.
Mitigating Factors
Admial contributes materially to the revenues of all
four major UK comparison businesses, and has a strong
band presence, and therefore it is not considered
probable that a material source of new business would
be lost.
Admial continues to grow its MultiCover and MultiCar
products which promotes retention. It also has a direct
ofering to new and existing customers, with continuing
investment made to improve its online/digital ofering.
Credit risk
Possible
impact on
our stategic
initiatives
1
2
Risk
Admial is primarily exposed to credit risk in the form of:
(a) reinsuance counterpaty credit risk; or (b) banking
counterpaty credit risk or (c) credit risk of investments.
One or more counterpaties could sufer signiicant
losses leading to a credit default, while a downgade
of investments could erode the value.
Admial Money exposes the Group to credit risk in relation
to customer defaults on its unsecured personal loan and
car inance business.
Impact
The impact of a major credit event could be losses and
reduced capital, dependent on its nature and severity.
Admial would also need to ensure that it continues to
have suicient liquid assets to meet its claims and other
liabilities as they fell due.
Increased defaults could impact future proitably and
lending capabilities.
Mitigating Factors
Admial only conducts business with reinsurers of
appropriate inancial strength. In addition, major
reinsuance contacts are opeated on a funds withheld
basis, which substantially reduces credit risk, as Admial
holds the cash received as collateal.
Admial continuously monitors the credit quality of our
counterpaties within Board approved limits, adjusting
its credit rules and pricing accordingly.
Credit risk of investments is managed through
diversiication and appointing high-quality third-paty
asset managers. Limits on counterpaties and cetain
credit atings ensure that credit risk is managed
within risk appetite, and produces a high quality credit
potfolio. The Group invests in a ange of liquidity funds
which hold a wide ange of shot duation, high quality
securities, and in ixed income funds holding primarily
investment gade assets. Cash balances and deposits
are placed only with highly ated counterpaties.
Most long-term investments are held in Government
bonds to futher mitigate the exposure to credit risk.
Admial considers counterpaty exposure frequently
and in signiicant detail, and has in place appropriate
triggers and limits to mitigate exposure to individual
investment counterpaties.
Admial Money’s credit risk appetite is set to ensure
that the risk taken is commensuate to the expected
returns whilst also considering customer afordability.
Admial Money continuously monitors its criteria for
new business and the peformance of its potfolio.
G
H
Principal Risks and Uncetainties
continued
Credit Risk
Admial Group plc Annual Repot and Accounts 2022
118
Stategic Repot
Market risk
Possible
impact on
our stategic
initiatives
1
Risk
Market risk arises as a result of movement in interest
ates, credit spreads and foreign exchange ates.
Impact
Market volatility (notably signiicant changes in risk
free interest ates or material increases in credit spreads)
can adversely impact the value of the Group’s assets.
The Group’s solvency can also be adversely impacted
due to an increased regulatoy valuation of claims
liabilities, in paticular in relation to longer-dated
potential PPO claims.
Continued growth of the Group’s businesses outside
the UK has altered the exposure to net assets and
liabilities in currencies other than pounds sterling,
increasing the Group’s exposure to Euros and Dollars
in paticular.
Mitigating Factors
The investment stategy focuses on presevation of
the amount invested, low volatility of returns and
strong liquidity. The majority of the potfolio is invested
in high quality ixed income and other debt securities,
and money market funds and other similar funds in
order to achieve these objectives. To note Admial does
not invest in commercial propety.
The Group’s mitigation for interest ate risk resulting
from long duation PPO liabilities includes reinsuance
cover and a continuing focus on investment stategies.
This includes asset/liability matching, consideation
of hedging options for these liabilities, including of
cetain risks associated with PPO claims.
Relative to the size of the Group, exposure to non-
sterling currency remains relatively small.
Legal and regulatoy risk
Possible
impact on
our stategic
initiatives
1
2
3
Risk
Legal and regulatoy risk may arise where Admial fails to
fully comply with legal or regulatoy requirements and/or
changes in an accuate, timely manner. Examples include
compliance with the FCA’s new Consumer Duty. This risk
may also arise where previous industy and/or Admial
regulatoy or legal compliance standards are revisited
with negative consequences, applied retrospectively,
for the industy and/or the Group. As Admial opeates
globally, across business lines and products, it is exposed
to a number of difering legal jurisdictions and regulators.
Failing to meet increasing expectations from regulators,
legislators, and shareholders around climate change
and the environment could potentially lead to exposure
to legal and regulatoy risk. In the longer term, the
impact from not meeting increasing expectations could
be serious.
Impact
Exposure to regulatoy intevention, censure and/or
enforcement action through ines and other sanctions.
Mitigating Factors
Ongoing monitoring of the Group’s compliance with
current and proposed requirements and inteaction
with regulators by Executive Management and
the Board.
Assuance is gained through external reviews and
benchmarking exercises ensuring Admial is compliant
with legal and regulatoy requirements.
Strong project governance is a key control in managing
regulatoy change.
I
J
Market Risk
Opeational Risk
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Opeational risk
Possible
impact on
our stategic
initiatives
1
2
3
Risk
Opeational risk arises within all areas of the business.
The principal categories of opeational risk for Admial
are: conduct risk; physical security risk; technology risk;
information security/cyber risk; business continuity
and opeational resilience; process risk; change risk;
people risk; data governance risk; and, outsourcing and
procurement risk.
Impact
Potential customer detriment and/or potential regulatoy
censure/enforcement and/or reputational damage as a
result of Admial’s action or inaction.
Admial being unable to sevice its customers or making
poor business decisions due to lack of system availability,
data integrity and/or data conidentiality.
The risk of reductions in earnings and/or value,
through inancial or reputational loss, from inadequate
or failed internal and outsourced projects, processes
and systems, or from people related, hybrid working or
external events.
Risk to Admial occurs through the losses that could
materialise if the internal control famework managing
business processes fails.
Mitigating Factors
Admial opeates a three lines of defence model,
and internal controls are in place and are monitored
to mitigate risks. The control famework is regularly
reviewed, and the internal audit function has an agreed
cycle of testing of the adequacy and efectiveness of
controls. Speciic opeational risks are mitigated by:
• Monitoring, managing and repoting on customer
outcomes in order to mitigate customer detriment
• Regular Executive Management and Board review
of the efectiveness of the Group’s IT capability
• Continuing investment in Information Security in
order to mitigate Information Security risks, including
evolving Cyber risk. Including the embedding of
improved KRI’s for Cyber/Information Security risks
• Staing a major incident team within IT which
is tasked with maintaining system availability,
with business continuity and disaster recovey
plans in place which are regularly tested, alongside
completion of an opeational resilience work stream
• Backing up data to allow for its recovey in the event
of corruption
• Employing enhanced project governance and
oversight of new systems implementations,
with external specialist review and assuance
where required
• Attacting, retaining and motivating quality
employees to deliver superior customer sevice
and to achieve business objectives
• Employing targeted recruitment and identifying
potential leaders through internal development,
talent management and retention processes for
the purposes of succession planning
• An ongoing commitment to Diversity and Inclusion.
• Monitoring outsourced and ofshore activities
through ongoing supplier relationship and
peformance management, and with regular due
diligence reviews
• Stategic reviews are periodically undetaken to
align procurement and outsourcing arangements
with our wider business stategy and also in response
to ongoing macroeconomic challenges
Admial also purchases a ange of insuance covers
to mitigate the impact of a number of other
opeational risks.
K
Principal Risks and Uncetainties
continued
Admial Group plc Annual Repot and Accounts 2022
120
Stategic Repot
Emerging risks
The management of emerging risks is a key element
of Admial’s stategic risk management, and emerging
risks and oppotunities continued to be reviewed
throughout 2022.
Admial Group identiies and monitors emerging
risks, issues which may be potentially signiicant, but
may not be fully foreseen, assessed or allowed for in
insuance terms and conditions, pricing, reseving or
capital setting, or stategic and business decisions.
By their vey nature, emerging risks are many and
varied, with a high degree of uncetainty around
the likelihood of occurrence, severity and/or timing.
The broad analysis of a wide ange of emerging
risks and oppotunities may lead to a change in
stategy, management behaviour, ways of working
or risk management and in turn, to a stronger and
more robust business which better delivers on
its commitments to customers, employees, and
other stakeholders.
Emerging risks are identiied via horizon scanning.
This involves an extensive liteature review,
consultations with internal working groups, and
inteviews with internal stakeholders, subject matter
expets, and external specialists. Emerging risks are
assessed using an internally-developed famework,
which includes qualitative and quantitative analysis
to gade each emerging risk on a scale designed to
be compaable across entities and compatible with
management of opeationalised risks. Evaluation of
the potential impact to Admial includes consideation
of how the risk may inteact with existing Principal
Risks and Uncetainties (PR&Us), as well as any new
risks that could arise. It also covers the precautionay
deployment of management actions and
mitigating controls.
Admial’s Emerging Risk Radar captures an assessment
of potential impact and time to cystallisation for
emerging risks. It categorises each risk into four broad
risk segments: (a) social, political & economic, (b) legal
& regulatoy, (c) technology and (d) environmental.
Plotting emerging risks in this way can shed light on
the macro trends with common drivers and efects.
Repoting on emerging risks and oppotunities
is provided to the GRC and relevant Boards,
is incorpoated into the Group ORSA Repot, and is
discussed with the senior management and entity
risk teams.
Admial Group plc Annual Repot and Accounts 2022
121
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
In accordance with provision 31 of the 2018 UK
Corpoate Governance Code, the Directors have
assessed the prospects of the Company over a
three-year period, having referenced the Group’s Own
Risk and Solvency Assessment (ORSA), risk stategy,
risk appetite, principal risks and uncetainties, key risk
drivers, and ongoing risk management activities.
As per provision 31, Admial considers three years
to be a period of assessment over which it has a
reasonable degree of conidence. Although the Group
reviews inancial projections that extend beyond
the three-year time horizon covering the years up to
2027, Admial considers that there is an inherent risk
and uncetainty in projecting beyond this three-year
period, as the degree of cetainty in the impact of
internal and external developments reduces greatly
due to the nature of Admial’s primay business
(one-year insuance policies). However, these inancial
projections contain no information which would cause
diferent conclusions to be reached over the long-
term viability of the Group.
At least annually, the Group produces an ORSA repot,
which is the main source of evidence used by the
Board to assess viability. The ORSA repot sets out
a detailed consideation of the principal risks and
uncetainties facing the Group and considers current
and projected levels of solvency and liquidity over a
12-month to three-year period.
In addition to the three-year period of assessment
suppoted by the ORSA, the Board utilises other
relevant repoting, some of which is longer term
in nature. Notably these include ive-year inancial
projections reviewed twice a year, three-year solvency
projections reviewed at least twice a year, and a one-
year inancial budget for the fothcoming 12 months
approved on an annual basis.
Quantitative and qualitative assessments of
risks are peformed as pat of the ORSA process,
assessing these risks over the three-year capital
planning time horizon. This foward-looking
approach relects the alignment of the inancial
and business planning process and the solvency
assessment, referred to within Admial as the capital
plan. This makes sure that Admial is appropriately
capitalised at a ixed point in time as well as over
the future planning time horizon, given Admial’s
principal risks and uncetainties and a plausible ange
of potential stressed conditions. The capital plan is
a key consideation for Group and Subsidiay Boards
in assessing and approving the business stategy,
business / inancial plan and key business decisions.
Viability Statement
The quantitative assessment considers how the
regulatoy capital requirements, economic capital
needs, own funds and solvency position of the Group
are projected to change over the three-year horizon,
with a requirement to maintain a solvency atio above
the approved capital risk appetite bufer throughout
the projection.
The assessment includes a series of sensitivity, stress and
scenario tests (S&STs) and reverse stress tests (RSTs) that
are examined and quantiied to understand the potential
impact on the Group’s solvency, liquidity and proitability,
as pat of the ORSA process. In addition to these Group
tests, there are also entity-speciic scenarios, considered
of lower materiality to the Group, that are peformed
by each subsidiay insuance entity as pat of their
ORSA processes.
The results of the stress tests form pat of the process
to set the Group’s capital risk appetite, which seeks to
hold a bufer on top of the Group’s regulatoy capital
requirement that is suicient to protect its regulatoy
capital position against a ange of signiicant but plausible
potential shocks and stresses.
Key stategic decisions, including the setting of dividend
payments, consider the solvency impact against the
Board-approved capital risk appetite of 130%, which
is a key criterion for the Board in assessing viability.
Refer to the Stategic Repot (page 64) for information on
sensitivities to the repoted 2022 solvency atio position.
To assess the robustness of the Group to the impact of
various risks, 15 S&STs and two RSTs have been quantiied
to understand the potential impact on the Group’s
solvency atio. In 2022 a ange of scenarios have been
peformed from the capital planning process along with
scenarios related to PRA’s IST 2022 natual catastrophe
and cyber / opeational risk scenarios, and insuance,
market risk and inlation stresses.
The results indicate that for most of the stresses,
Admial has suicient capital to withstand the extreme
scenarios. The 130% bufer is breached for two scenarios
(extreme inlation and macroeconomic shock) although
the solvency atios still lie comfotably above the 100%
minimum solvency atio. For these scenarios Admial also
has seveal management actions that it could call on
to alleviate capital pressures and improve the solvency
atio to bring it above the 130% bufer. A third exception
is an extreme RST, combining severe and extreme
insuance (reseve/premium) and market risk scenario
combinations. In the absence of management actions this
would result in a breach of the 100% minimum solvency
atio but, as is the intention of the RST, it is considered to
be an extremely remote outcome, being well excess of a
1-in-200-year event.
Admial Group plc Annual Repot and Accounts 2022
122
Stategic Repot
Risk management is an essential pat of Admial’s
opeations, and successful risk taking is key to
the Group achieving its business objectives.
Risk management is therefore a key consideation
when setting the Group’s stategy, managing
peformance, and rewarding success. The current risks
that are faced by the Group are captured in the Risk
Universe, with the most notable risks captured in the
Group’s principal risks and uncetainties (page 114)
48
.
In addition to these principal risks and uncetainties,
the Group also considers a ange of emerging risks
that could impact the Group to vaying degrees in
the future, but which are not yet fully understood,
including those related to climate change (page 121).
The Admial Group Risk Stategy is considered and
approved by the Board. The stategy is directly linked
to the business plan and seeks to ensure that all risks
are managed efectively to allow the Group to meet
its stategic aims (pages 28–37). Suppoting this is the
Admial Group Risk Management Policy, which sets
out Admial’s approach to risk management, as well
as the governance of risk management across the
Group. This approach ensures that there is appropriate
oversight of the Group’s risk proile, and that the
Group remains within risk appetite in all its opeations.
While each of Admial’s principal risks and
uncetainties could have potentially impacted the
Group’s peformance, during 2022 the following key
risk drivers were seen to be of notable impotance:
Covid-19, changing economic outlook, technology,
cyber and opeational resilience, geopolitical
instability, and climate change.
Changing Economic Outlook: Admial has reviewed
and continues to monitor the Group’s solvency and
liquidity positions in response to market volatility
and wider economic uncetainty, considering factors
such as increases in inlation, the wider impact of
supply chain disruption, surging energy prices and the
pressures on individual household inances leading to
a “cost of living crisis” in many countries. Some of the
current trends in risks most impacted by the changing
economic outlook are highlighted below:
• Premium Risk and Catastrophe Risk: Global
uncetainties, supply chain pressures and
increasing vehicle repair and replacement
costs have all contributed to claims inlation.
Similarly, labour shotages and cost of living
concerns will contribute to wage inlation impacting
large bodily injuy claims. In most insuance
markets, motor claims frequency has increased
but is still noticeably below pre pandemic levels.
Admial continues to manage these challenges
with a disciplined, long-term approach to pricing
and growth, with a focus on building the business
for the long-term. The business continues to
maintain a prudent reseving approach to claims
• Credit Risk: The increase in cost of living may lead to an
increased number of customers being unable to meet
their loan repayments or insuance premiums. The EUI
processes for payment holidays to direct debit payers
was established during the Covid-19 lockdowns and
remains in place for inancially vulneable customers.
Within Admial Money, afordability assessments for
new loans have been adjusted to ensure that customers
are resilient to ongoing inlation. The loans potfolio
has been stress tested and the results indicate a strong
potfolio within risk appetite
• Reseve Risk: The Group has a prudent approach to
reseving, which helps to minimise the impact of
inlation and help build strong, resilient businesses
for the long-term. Provision has been made for the
impact of inlation on unsettled Bodily Injuy (BI) claims,
for which cost of care is the primay driver of cost,
ensuring that reseves capture excess inlation, for all
heads of damage, but paticularly for wage inlation
over the aveage time it takes for BI claims to settle.
This continues to be reviewed, with best-estimates
of these impacts being relected in the reseves
recognised as at the balance sheet date
• Opeational Risk: During 2022, GRC have continued to
review the impacts and level of opeational risk as focus
turned to adapting to the “post-Covid-19 business
environment”. The labour market remains diicult
with strong competition to attact candidates at all
levels. The trial and introduction of lexible working
conditions, increased staf retention risks in the UK,
the potential erosion of the competitive advantage of
Admial’s culture and the return to more “normalised”
driving patterns have all been considered in their
impact on both opeational peformance and customer
outcome risks. The GRC received repots of actions
such as a reduction in working hours for UK staf and
an increase in holiday allowance being implemented
to address some of these impacts. Monitoring and
repoting is in place on the impact of attaction
and retention levels as well as levels of sickness and
absences, following the improvements made to the
staf beneits package
48 Please also see note 6 to the inancial statements which sets out the Group’s
objectives, policies and procedures for managing inancial assets and liabilities
Admial Group plc Annual Repot and Accounts 2022
123
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Covid-19: Group committees have continued
to monitor the ongoing impact of Covid-19 and
challenge Admial’s response, including oversight of
the return to the oice, in line with all applicable local
and national guidance. Throughout the pandemic
the GRC sought to ensure appropriate action was
taken to manage the impact to Admial’s principal
risks and uncetainties: prioritising staf health and
safety, maintenance of the strong Admial culture,
Admial’s ability to continue to provide high quality
customer sevice and inancial resilience.
• Key actions undetaken by the GRC in this regard
include review and challenge of potential impacts
to Admial Group’s solvency and liquidity including
inancial stress testing and updates on Covid-19
related regulatoy inteactions
Geopolitical Instability: The Russian invasion of
Ukaine and an escalation of geopolitical tensions led
to a review of potential exposure across the Group’s
PR&Us. From a solvency perspective the impact
has been assessed as immaterial at this time, and
monitoring of geopolitical tensions is ongoing.
• Market Risk: The initial investment spread shock
was of brief duation and there was vey limited
indirect exposure across the investment potfolio.
Market risks are reviewed by the investments team
and asset managers to ensure Admial is adequately
positioned in this apidly changing environment
• Insuance Risk: The risk of reduced availability of
co-insuance/reinsuance arangements remains
heightened due to tensions between Russia-Ukaine
and an anticipated Ogden change in 2024, however
monitoring is being undetaken to adequately react
to any scenario
Cyber and Opeational Resilience: Admial’s continual
focus on data, technology, and digital has driven
increasing adoption of cloud technologies.
• Increased monitoring of Technology and
Information Security Risks commenced during
2022 through additional KRIs and regular standing
repots and updates from the Group Technology
and Information Security Risk Team. Updates on
cyber crisis planning were provided to committees
and monitoring will continue on progress and
response planning activities
• The cyber security progamme in the European
insuance businesses continues to make progress
in reducing their information security risk, in line
with the Group’s Cyber Security Famework.
In the UK, an Opeational Resilience progamme
was completed at the end of March 2022 in line
with regulatoy requirements. Work will continue
speciically focussed upon the identiied Impotant
Business Sevices
Climate change: Admial remains committed to
recognising and understanding the threats and
oppotunities posed by climate change to the Group,
as well as to mitigate its impact on the environment.
Climate-related risks can impact on all of Admial’s
business lines, opeations, investments, and reinsuance
arangements. Admial Group recognises that while there
are risks from delayed action, there are also oppotunities
from considering the challenges, including the potential
to acceleate the Group’s tansformation, to build
resilience, and to gain competitive advantage in new
and existing markets.
As pat of this work there is an ongoing Group focus on:
• Ensuring full compliance with existing and emerging
regulatoy and disclosure requirements
• Researching climate-change trends and assessing the
risks and oppotunities arising from climate change
• Incorpoating climate-related risk drivers into
business-as-usual risk management, such as enhancing
Admial’s climate scenario testing capabilities
• Continuing efots to futher reduce the Group’s
carbon footprint
Admial Group’s stategy linked to climate change is
discussed in more detail in the Task Force on Climate-
Related Financial Disclosures disclosure (page 97).
Based on the results of this analysis, the Directors have
a reasonable expectation that the Group will be able to
continue in opeation and meet its liabilities as they fall
due, for the period up to and including December 2025.
Stategic Repot Approval
The stategic Repot is approved for issue by the Board
of Directors, and signed on behalf of the Board:
Milena Mondini de Focatiis
Group Chief Executive Officer
7th of March 2023
Viability Statement
continued
Admial Group plc Annual Repot and Accounts 2022
124
Stategic Repot
Contents
126 Governance at a glance
128 Introduction to Governance
130 Board of Directors
136 Governance Repot
158 Nomination and Governance committee
171 Audit Committee Repot
178 Group Risk Committee Repot
183 Remuneation Committee Repot
186 Remuneation at a Glance
187 Directors’ Remuneation Policy
196 Annual Repot on Remuneation
210 Directors’ Repot
Corpoate
Governance
Adding value.
Delivering
difference.
For our
communities
125
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Admial Group plc Annual Repot and Accounts 2022
Governance at a glance
“ This year’s external
evaluation found that this
is a strong Board that
is reflective and supportive
of the Admiral culture.”
Annette Cout
Group Chair of the Nomination
and Governance Committee
2 Executive
9 Non-executive
Executive/Non-Executive Directors
Total Board Director skills
40s 18.2%
50s 27.2%
60s 45.5%
70s 9.1%
Age diversity
8 Independent
3 Non-Independent
Total Board Independence
“ Admiral is only one of 5
FTSE100 companies where
each of the board positions
of Chair, SID and CEO
are held by women.”
Annette Cout
Group Chair of the Nomination
and Governance Committee
Find futher detail
on page 130
11 Finance
10 Risk
8 Insurance
11 Executive/Strategic Leadership
5 Marketing/Retail
8 M&A
10 City
8 International
8 Tech/Digital/Data
8 Operations
6 Entrepreneurial
3 Loans
7 Small / Medium Enterprise
11 Remuneration/People
7 ESG/Sustainability
126
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
“ The Board remains
satisfied that it
has the appropriate
balance of skills,
experience, independence
and knowledge.”
Annette Cout
Group Chair of the Nomination
and Governance Committee
10 White British or other White (including
minority white groups)
1 Asian /Asian British
Board Ethnicity
>9 years
6-9 years
Annette Court 10y 9m
Jean Park* 8y 11m
Justine Roberts 6y 6m
Andy Crossley 4y 10m
Mike Brierley 4y 3m
Karen Green 4y 0m
JP Rangaswarmi 2y 8m
Evelyn Bourke 1y 8m
Bill Roberts 1y 6m
3-6 years
<3 years
* Jean Park stepped down from the Board in January 2023
5 Men
6 Women
Non-Executive Director tenureBoard gender diversity
Board composition
and succession planning
Non-Executive tenure
and independence
Balance of skills,
knowledge and
experience
Annual Board
evaluation and individual
Director appaisals
Time commitment
and external
appointments
Board diversity
8 British
3 Non-British
Board Nationality
127
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Admial Group plc Annual Repot and Accounts 2022
“ With the background
of an uncertain world,
Admiral remains
focused on building
our strengths.”
Annette Cout
Group Chair of the Nomination
and Governance Committee
Introduction from the Chair
Dear Shareholder,
On behalf of the Board, I am pleased to present the Group’s
Governance Repot for the inancial year ended 31 December
2022. This repot sets out our approach to efective corpoate
governance and outlines key areas of focus of the board and its
activities undetaken during the year as we continue to drive
long-term value for all our stakeholders.
Backdrop
With the background of a world coming out of a pandemic,
moving to a world of hybrid working with uncetainty and
vey high claims inlation alongside a cost-of-living crisis,
Admial remains focused on building on our strengths: a strong
workplace culture, diversity and inclusion, succession planning
and climate change repoting. The Board continues to keep
abreast of the changing corpoate governance landscape (such
as the BEIS audit and corpoate governance reforms) and is
committed to ensuring that it provides efective leadership
by ensuing that good governance principles and pactices are
adhered to across the Group.
Board changes and succession planning
In Januay 2022 the Board approved that Bill Robets was
appointed as a member of Nomination and Governance
Committee. Due to Jean Park’s tempoay leave of absence which
was efective from Februay 2022, upon the recommendation
of the Committee, the Board approved that Justine Robets be
appointed as the Interim Senior Independent Director (“SID”)
and Andy Crossley be appointed as the Interim Group Risk
Committee Chair with efect from Februay 2022 and Karen Green
was appointed as a member of the Risk Committee on 1 June
2022. Justine played an impotant role in 2022 in leading the
Chair succession process as my extended tenure as Board Chair
comes to an end at the AGM in April 2023. Jean Park retired from
the Board in Januay 2023 and, in her place, the Board approved
the appointment of Justine Robets as permanent SID and as a
permanent member of the Remuneation Committee. Refer to
the repot of the Nomination and Governance Committee for
futher information.
Introduction to Governance
Futher details of the respective selection
processes are set out on pages 159 to 170
Futher details on our succession planning
is set out on page 128
Futher details on our explanations in
respect of non-compliance with Provisions
19 of the Code are on page 136
128
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Purpose, Culture and the impact of COVID-19
As repoted in our 2020 annual repot, the Board approved a
revised Group purpose statement in Januay 2021. The Board is
cognisant that it has the ultimate responsibility for ensuring that
Admial has an appropriate company culture that aligns with the
Group purpose and considers its impact on all of its stakeholders.
Culture continues to be a topic closely monitored by management
and the Board, following the workforce spending an extended
time working from home following the pandemic. The Board
received updates during the year on the proposals to introduce a
more permanent hybrid working model across the Group and how
this might impact Admial’s culture. Futher information on the
Group’s purpose and how its culture is monitored and assessed by
the Board is outlined on pages 72 to 78 of the Stategic Repot and
pages 148 to 152 of this repot, respectively.
For futher detail see Our Customers
section pages 74 to 76
Stakeholder engagement
During the year, the Board revisited its Stakeholder Map and
reairmed the key stakeholder groups, as well as the various
mechanisms used to engage and communicate with each.
Consideation was also given to how Admial stakeholders’ views
were taken into account in decision making in accordance with
the Board’s duties under s.172 of the Companies Act 2006.
Information on how the Directors discharge this duty, as well as
an update on the work of the Employee Consultation Groups
(ECGs), is contained within the stakeholder sections on
page 145 of the Governance repot.
ESG
The Board increased its oversight of environmental, social and
governance factors in 2022, with climate change, and diversity
and inclusion being areas of increasing focus. Not only did
the Board receive multiple updates on progress to increase
disclosures on ESG matters, but the Audit and Risk Committees
also increased their respective oversight of the Taskforce for
Climate-related Financial Disclosures (TCFD) and SASB disclosures.
The Remuneation Committee also considered proposals during
the year to link ESG metrics to reward. Futher information on
TCFD and climate change can be found on page 97.
The Nomination and Governance Committee and the Board
considered updates on diversity and inclusion during the
year, including revised targets to demonstate Admial’s
commitment to continue to be a diverse and inclusive employer.
Futher information about the Board’s oversight of diversity and
inclusion at Admial is included in the Nomination and Committee
Repot on page 158 and pages 78 and 80 of the Stategic Repot.
Read more in our Nomination committee
repot on page 158
Board efectiveness
At the end of the year, the Board and all of its Committees were
evaluated externally by Bvalco Ltd on their own peformance to
ensure that they continued to opeate efectively and to provide
an oppotunity to make any improvements in 2023. The outcome
of the review also fed into the Board’s objectives which were set
for 2023. A summay of the outcome of the externally facilitated
Board evaluation including information on the Board’s objectives
are on pages 169–170.
Annette Cout
Group Chair
7 March 2023
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Admial Group plc Annual Repot and Accounts 2022
Board of Directors
Our diverse Board has a breadth of
skills and experience of adding value
and delivering difference.
Board skills matrix
Finance
Insuance
Marketing/Retail
City
Technology/Digital/Data
Entrepreneurial
Remuneation/People
Risk
Executive/Stategic Leadership
M&A
International
Opeations
Loans
ESG/Sustainability
Committee Membership
Audit Committee member
Remuneation Committee member
Group Risk Committee member
Nomination and Governance Committee member
C
Committee Chair
Senior Independent Director
Annette Cout
Chair
Current appointments
• Non-Executive Director, Chair of the
Remuneation Committee and member of the
Audit and Risk Committee at Sage Group Plc
• Chair of WH Smith Plc
• Member of Streetgames.org Business
Advisoy Board
• Business Mentor
Background and experience
CEO of Europe Geneal Insuance for Zurich
Financial Sevices and a member of the Group
Executive Committee from 2007–2010.
Former CEO of Direct Line Group (formerly
RBS Insuance) and member of the RBS
Group Executive Management Committee.
Previously a member on the Board of the
Association of British Insurers (ABI).
Appointed
Appointed to the Board on 23 March 2012,
appointed to Chair on 26 April 2017 with sevice
ending 27 April 2023.
Contributions and reasons for appointment
As Chair, Annette effectively leads the
Board, and is responsible for setting its
agenda and monitoring its effectiveness.
Annette demonstates significant commitment
to the role and with a background in financial
sevices and technology, and expetise in
mentoring leaders, she contributes both
stategically and pactically to all areas of Board
related decision making. Annette is also Chair of
the Nomination and Governance Committee a
role she devotes herself to fully and contributes
effectively offering challenge and guidance.
Annette was appointed as Board Chair in April
2017, having spent 5 years as a Non-Executive
Director of the Board. Annette reached her
nine-year tenure as Non-Executive Director on
the Board in March 2021. Annette will not be
seeking re-election at the April AGM and she will
be stepping down from her role as Chair.
Skills
C
130
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Milena Mondini de Focatiis
Chief Executive Oicer
Current appointments
• Mentor for A-Road, Growth Capital
• Admial Insuance Company Limited member
(an Admial Group subsidiay)
Background and experience
Milena joined Admial in 2007 and was appointed
CEO in Januay 2021. She has been a member
of the leadership team throughout her time
at Admial, has extensive experience of the
Group’s opeations and has attended and actively
contributed at Board meetings as an obsever
since 2011. Her previous roles included being
Head of UK and European Insuance and CEO
of ConTe.it, Admial’s Italian insuance business
which she founded in 2008.
Before joining Admial, Milena worked as
a consultant for Bain & Co and Accenture.
She holds an MBA from INSEAD and a degree in
Telecommunication Engineering from Universitá
degli Studi di Napoli Federico II.
Appointed
Appointed to the Board in August 2020 and
became CEO on 1 Januay 2021.
Contributions and reasons for appointment
Milena leads a vey strong and experienced
management team and is an effective CEO who
continues to build an even stronger Admial for
the future.
Skills
Geaint Jones
Chief Financial Oicer
Current appointments
• Admial Financial Sevices Limited Board
member (an Admial Group subsidiay)
• Admial Insuance (Gibaltar) Limited Board
member (an Admial Group subsidiay)
• Admial Insuance Company Limited Board
member (an Admial Group subsidiay)
• Co-opted member of the Finance and Audit
Committee of the Wales Millennium Centre
Background and experience
Geaint joined Admial in 2002 and held seveal
senior finance positions including Head of
Finance, before being promoted to Deputy CFO
in Januay 2012 and CFO in August 2014. Geaint is
responsible for finance, investments and investor
relations. A Fellow of the Institute of Chatered
Accountants in England and Wales, Geaint spent
the early pat of his career as an external auditor
at Ernst & Young and KPMG.
Appointed
Appointed in 2014.
Contributions and reasons for appointment
Geaint has worked for Admial for approaching
20 years and has been Group CFO for nearly
8 years. He has a deep understanding of the
Group’s businesses and stategy, which, together
with his significant financial and accounting
experience and broad ange of skills and
commercial expetise, makes him a valuable
contributor both to the Board and the wider
Group. Geaint is also able to use his financial and
accounting experience to provide insight into the
Group’s financial repoting and risk management
repoting processes.
Skills
131
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Admial Group plc Annual Repot and Accounts 2022
Board of Directors
continued
Mike Brierley
Non-Executive Director
Current appointments
• Chair of Admial Financial Sevices Limited
(Admial Money) (an Admial Group subsidiay)
• Non-Executive Director of Alpha Bank
London Limited
• Director and Trustee of the Rose Theatre Trust
Background and experience
Mike was CFO of Metro Bank Plc between 2009
and 2018, helping lead the business from stat-up
to listing on the FTSE. He spent seven years at
Capital One Europe in various roles including
CFO Europe, CFO UK and Chief Risk Officer
Europe. He has also seved as CFO for Royal Trust
Bank, Financial Controller at Industrial Bank of
Japan (London Banch), Director Business Risk
at Barclaycard and was co-founder and Deputy
Managing Director and CFO of Genta Limited.
Mike is a Fellow of the Institute of Chatered
Accountants in England and Wales.
Appointed
Appointed in 2018.
Contributions and reasons for appointment
Mike brings a depth of knowledge from working
at senior levels across multiple financial sevices
sectors, jurisdictions and markets. As a result
of his extensive financial and commercial
experience, Mike is able to contribute effectively
as a non-executive director, and in his role
as a member of the Audit and Remuneation
Committees. Through his recent and relevant
financial experience, he is able to effectively
challenge management on the financial
repoting and internal control matters that come
before the Audit Committee. Mike demonstates
full commitment to the responsibilities that go
with his Board and Committee roles and offers
appropriate challenge and guidance in respect of
the matters considered in these forums.
Skills
Karen Green
Non-Executive Director
Current appointments
• Non-Executive Director, Senior Independent
Director and Chair of the Sustainability
Committee of Phoenix Group Holdings Plc
• Non-Executive Director and Chair of the Risk
Committee of Asta Managing Agency Ltd
• Council Member and Chair of the Investment
Committee Lloyd’s of London
• Non-Executive Director and Interim Risk and
Audit Committee Chair (efective 1 Januay
2023) of Miller Insuance Sevices LLP
• Advisor role at Cytoa Limited
Background and experience
Karen Green is the former CEO of Aspen UK,
comprising the principal UK insuance and
reinsuance companies of Aspen Insuance
Holdings (2010 to 2017). Other senior Aspen
positions included Group Head of Stategy,
Corpoate Development, Office of the Group CEO
and she was a member of the Group Executive
Committee for 12 years. Prior to that, she held
various corpoate finance, M&A and private
equity roles at GE Capital Europe and Stonepoint
Capital having stated her career in investment
banking at Baring Brothers and Schroders.
Appointed
Appointed in 2018.
Contributions and reasons for appointment
Karen has substantial financial sevices
experience and has a deep understanding
of insuance and reinsuance, having seved
in senior executive roles in these sectors,
including as CEO of an insuance business.
Karen also has a strong background in stategic
planning and corpoate development and the
relevant financial and industy expetise to be
Chair of the Audit Committee. She demonstates
the commitment required to discharge
effectively the responsibilities attached to
this role and to challenge management on the
Group’s financial repoting and risk management
processes in paticular.
Skills
C
132
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Justine Robets, CBE
Non-Executive Director
Interim Senior Independent Director
Current appointments
• CEO & Founder, Mumsnet.com & Gansnet.com
• Non-Executive Director of The Open
Data Institute
• Non-Executive Director of Boring Money
Background and experience
Justine founded Mumsnet in 2000 and is
responsible for creation, stategic direction and
oveall leadership. In May 2011, Justine founded
Gansnet, a sister site to Mumsnet, for the
over-50s. Before that Justine was a freelance
football and cricket journalist for the Times and
Daily Telegaph, after working for Warbugs and
Deutsche Bank as an economist, stategist and
head of South African Equities in New York.
Appointed
Appointed in 2016.
Contributions and reasons for appointment
As CEO of the successful Mumsnet and Gansnet
bands, Justine has strong digital and customer
experience insights that she is able to bring to
the Board decision making process. Justine also
has a strong background in driving change
through digital capabilities and brings a fresh
and insightful perspective to the matters
for consideation by the Board. Justine is also
an effective member of the Nomination and
Governance Committee and demonstates full
commitment to the role as well as peforming
the role of Interim Senior Independent Director.
Skills
Jean Park
Non-Executive Director
Senior Independent Director
Current appointments
• (The Company announced on 22 Februay
2022 that Jean Park, Non-Executive Director,
took a tempoay medical leave of absence and
returned to her role in the second half of 2022)
Background and experience
Jean was Group Chief Risk Officer at the Phoenix
Group from 2009 until June 2013, during which
time she held responsibility for the Group’s
relationship with the regulator and founded
the Board Risk Committee. Previously, she was
Risk Management Director of the Insuance
and Investments division of Lloyds TSB and,
before that, Head of Compliance and Audit
at Scottish Widows. Jean is a Member of the
Institute of Chatered Accountants of Scotland.
Appointed
Appointed in 2014.
Contributions and reasons for appointment
Jean is an experienced non-executive board
member with extensive understanding of
risk management and corpoate governance.
This knowledge and experience has been
acquired through a variety of senior executive
and subsequent NED roles with Admial and
other financial sevices companies and qualifies
her for Group Board membership and for her
roles as Chair of the Group Risk Committee and
Senior Independent Director. Jean continues
to demonstate full commitment to both
these roles and, in addition, her membership
of the Group Remuneation Committee and
Nomination and Governance Committee.
Skills
C
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Admial Group plc Annual Repot and Accounts 2022
Board of Directors
continued
Board of Directors
Andy Crossley
Non-Executive Director
Current appointments
• Chair of EUI Limited (an Admial
Group subsidiay)
• Non-Executive Director, member
of Remuneation
• Risk Committee and Chair of Audit Committee
at Vitality Health Ltd and Senior Independent
Director of Vitality Life Ltd
• Director of Vitality Corpoate Sevices Ltd
Background and experience
Andy was CFO at Domestic & Geneal Group from
2014 to 2017. He spent 14 years at Prudential
Plc from 2000 as Director, Group Finance;
Group Chief Risk Officer; and CFO and Deputy
Chief Executive of Prudential UK. He previously
held senior manager roles at Legal & Geneal
Group Plc, where he was Group Financial
Controller, and Lloyds Bank Plc. Andy is a Fellow
of the Institute of Chatered Accountants in
England and Wales.
Appointed
Appointed in 2018.
Contributions and reasons for appointment
Andy has held a variety of senior roles relating
to financial planning, stategy and risk across
UK financial sevices. He has a wealth of
accounting and financial experience and provides
progressive insights to the matters that come
before the Board. Andy is a valuable contributor
to the Board and as a member of the Audit
Committee and the Group Risk Committee (of
which he is Interim Chair). Through his recent
and relevant financial experience, he is able
to effectively challenge management on the
financial repoting matters that come before
the Audit Committee.
Skills
Jayapakasa Rangaswami
Non-Executive Director
Current appointments
• Non-Executive Director of Allfunds Bank SA
• Non-Executive Director of Allfunds Group Plc
• Non-Executive Director of Daily Mail and Geneal
Trust Plc (DMGT) (now delisted)
• Non-Executive Director of National Bank of
Greece S.A.
• Non-Executive Director of EMIS Group Plc
• Member, Board of Trustees, Cumberland Lodge
• Member, Board of Trustees, Web Science Trust
Background and experience
Jayapakasa Rangaswami (JP) has a wealth of
large-scale IT opeational experience gained
through his roles as Chief Information Officer
(CIO) with Dresdner Kleinwot (2001 to 2006) and
Managing Director/Chief Scientist at BT Group
(2006 to 2010). JP has also been Chief Scientist
with Salesforce (a US cloud-based software
company) (2010 to 2014) and was Chief Data
Officer (CDO) and Group Head of Innovation
with Deutsche Bank (2015 to 2018). He has
opeated in financial sevices for over 10 years
and understands the challenges of working in a
regulated environment. JP is also a former global
CIO of the Year as well as European Innovator of
the Year.
Appointed
Appointed 29 April 2020.
Contributions and reasons for appointment
JP brings a wide ange of IT skills and digital
experience which helps to complement and
enhance the existing skills around the Board
table. He has opeated in financial sevices for
over 10 years and understands the challenges
of working in a regulated environment. He is
also able to effectively contribute to the Board
debate and demonstates full commitment to
the role. JP is also a member of the Group Risk
Committee, a role for which he has the relevant
experience and capability.
Skills
C
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Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Evelyn Bourke
Non-Executive Director
Current appointments
• Non-Executive Director, Chair of the Audit
Committee and member of the Nomination
Committee at Marks and Spencer Group Plc
• Non-Executive Director, Chair of the Audit
Committee, member of the Risk Committee
and Sustainability Committee Bank of Ireland
Group Plc
• Non-Executive Director, Senior Independent
Director, member of Audit Committee and Risk
and Compliance Committee at AJ Bell Plc
• Charity Board Trustee of Ireland Fund for
Great Britain
Background and experience
Evelyn was Bupa Group’s CFO between 2012
and 2016, before becoming Bupa’s Group Chief
Executive Officer from 2016 to 2020. Evelyn has
held seveal senior leadership roles during her
career including Chief Commercial Officer at
Friends Life UK (2011 – 2012), CFO at Friends
Provident (2009 – 2010), CFO at Standard Life
Assuance (2006 – 2008), and CEO at Chase de
Vere (2004).
Appointed
Appointed on 30 April 2021.
Contributions and reasons for appointment
Evelyn brings valuable geneal management,
finance and stategy experience from
life and health insuance, internationally.
She complements and enhances the ange of
skills currently on the Board. Evelyn has held
seveal leadership positions in financial sevices
organisations and has the appropriate skills,
knowledge and experience to peform her roles
as Non-Executive Director and Chair of the
Remuneation Committee.
Skills
Bill Robets
Non-Executive Director
Current appointments
• Advisor at Hi Marley
• Non-Executive Director Elephant Insuance
Company, incorpoated in Virginia, USA
Background and experience
Bill Robets has a wealth of insuance,
undewriting and marketing experience gained
during his time at US insurer, GEICO, which he
joined in 1984. Whilst at GEICO, Bill held seveal
Executive appointments, including COO and
President and CEO for all GEICO Insuance
Companies, a position he held from 2018 until
he was promoted to Vice Chair, GEICO Insuance
Companies in 2020. Bill held this role until he
retired from GEICO in December 2020.
Appointed
Appointed on 11 June 2021.
Contributions and reasons for appointment
Bill brings valuable insuance experience and
insight on the US insuance market having
held seveal senior Executive positions with US
insurer, GEICO. Bill contributes and challenges
effectively on the matters that come before the
Board. His extensive US insuance experience
and insight is of specific value to the Group’s
US businesses as they seek to continue to
develop and grow. Bill does not currently have
any other Executive or Non-Executive Director
commitments that would impact the time
commitment requirements for his Admial
Non-Executive Director role and member of the
Nomination and Governance Committee and has
capacity to fulfil the duties and responsibilities
for these roles.
Skills
C
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Admial Group plc Annual Repot and Accounts 2022
Governance Repot
Compliance with the UK Corpoate Governance Code
Implementing best pactice corpoate governance contributes to
the successful delivey of stategy and is, therefore, impotant to
the Board. An efective corpoate governance famework helps
the Board and management to deliver the stategy within the
scope of the relevant legal and regulatoy landscapes. It ensures,
amongst other things, that:
• The Board is composed in an appropriately balanced way
which promotes diversity and enables it to opeate efectively.
Having appropriate divisions of responsibility between
Executive and Non-Executive roles provides external challenge
to the internal view. Similarly, diversity on the Board and at
a senior management level avoids groupthink and ofers
diferent perspectives
• The Board and management maintain two-way relationships
with the Group’s key stakeholders. The Board should act in a way
which promotes the success of the Company for the beneit of
its shareholders, but it should also have regard to its other key
stakeholders when making decisions. It is impotant that two-
way engagement is maintained to enable key stakeholders to
provide input to the Group’s actions
• The Group has a clear purpose and stategy, and that Admial’s
culture aligns to it. Messaging and tone from the top are crucial
and should be consistent so that eveyone is clear about the
goal and, therefore, works towards the same thing
• Remuneation is propotionate and suppots long-term success,
therefore, geneating the right behaviours and outcomes
This year, the Annual Repot has been structured to better help
the reader cross-reference the following key sections of the UK
Corpoate Governance Code 2018 (Code), with the explanations of
the Company’s application of the Code principles and compliance
with its provisions falling under the respective sections:
• Board leadership and Company purpose (from page 137)
• Division of responsibilities (from page 153)
• Composition, succession and evaluation (from page 157)
• Audit, risk and internal control (from page 171)
The mechanisms described throughout the Governance Repot
are intended to demonstate how the Group’s corpoate
governance famework contributes to the delivey of the stategy.
Provisions:
Statement of Compliance
The Group complied with the provisions of the Code except for
provision 19, for which there are explanations below.
Explanations:
Provision 19 of the Code states that ‘The chair should not be in
post beyond nine years from the date of their irst appointment
to the board.’ Annette Cout was appointed as Board Chair in April
2017, having spent ive years as a Non-Executive Director of the
Board. Annette reached her nine-year tenure as Non-Executive
Director on the Board in March 2021. As repoted in the Annual
Repots for the three prior periods, in 2019, the Board considered
and agreed, having consulted shareholders, that she should remain
in post as Board Chair for up to three years beyond March 2021,
with the expectation that she would seve two years, subject to
annual approval by the shareholders. This represents a depature
from the Code for the 2022 inancial year.
Provision 19 of the Code goes on to state that ‘To facilitate
efective succession planning and the development of a diverse
board, this period can be extended for a limited time, paticularly
in those cases where the chair was an existing non-executive
director on appointment.’ A Chair recruitment process began in
May 2022 to ind a successor for Annette as she intends to step
down as Chair of the Board at the AGM in April 2023 and therefore
she will not be seeking re-election.
Annette’s re-election was suppoted by shareholders at the
previous AGM on 28 April 2022 (93.1% votes in favour) and that
her 2022 peformance review, led by the SID, concluded that she
continued to peform efectively as Board Chair, continued to
exercise objective judgement and promoted constructive
challenge amongst Board members.
The 2022 Board evaluation also concluded that the Board
continued to function well, under the leadership of Annette.
In addition, the Board’s composition has continued to be refreshed
during 2022 with the appointment of the new Chair.
Jean Park assumed the role of SID on 1 Januay 2022, however due
to a tempoay medical leave of absence, Justine Robet was
appointed the interim SID and, together with the suppot of
the Board commenced the search for a Board Chair successor
during 2022.
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Board leadership and Company purpose
Compliance with the Code Principles
UK Code
Principle Description References
Principle
A
A successful company is led by an efective and
entrepreneurial Board, whose role is to promote
the long-term sustainable success of the company,
geneating value for shareholders and contributing
to wider society.
• Role of the Board on page 154.
• Stakeholder sections in the Stategic Repot:
– Customers on pages 74 to 76
– People on pages 77 to 81
– Patners and suppliers on pages 82 to 84
– Shareholders on pages 85 to 86
– Communities on pages 87 to 90
– Environment on pages 91 to 94
• Board evaluation on page 167
Principle
B
The Board should establish the company’s purpose,
values and stategy, and satisfy itself that these and its
culture are aligned. All directors must act with integrity,
lead by example and promote the desired culture.
• Purpose, values and stategy on pages 6 to 8 and
28 to 37 of the Stategic Repot
• Monitoring and assessing culture on pages 141 – 142
• Role of the Board on page 154
Principle
C
The Board should ensure that the necessay resources
are in place for the company to meet its objectives
and measure peformance against them. The board
should also establish a famework of prudent and
efective controls, which enable risk to be assessed
and managed.
• Going concern in the Directors’ Repot on page 210
• Role of the Board on page 154
• Board evaluation on page 167
• Internal audit in the Audit Committee Repot on
page 173
• Risk management and internal control systems in
the Risk Committee Repot on page 174
Principle
D
In order for the company to meet its responsibilities
to shareholders and stakeholders, the board should
ensure efective engagement with, and encouage
paticipation from, these paties.
• Stakeholder engagement on pages 74 to 94
• Stakeholder sections in the Stategic Repot:
– Customers on pages 74 to 76
– People on pages 77 to 81
– Patners and suppliers on pages 82 to 84
– Shareholders on pages 85 to 86
– Communities on pages 87 to 90
Principle
E
The Board should ensure that workforce policies
and pactices are consistent with the company’s
values and suppot its long-term sustainable success.
The workforce should be able to aise any matters
of concern.
• Culture on page 140
• Whistleblowing on page 144
• Whistleblowing in the Audit Committee Repot
on page 177
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Admial Group plc Annual Repot and Accounts 2022
Governance Repot
continued
Meetings and attendance
Directors are expected to attend all meetings of the Board and the Committees on which they seve and to devote suicient time to
the Group to peform their duties. Where Directors are unable to attend meetings, they receive papers for that meeting, giving them
the oppotunity to aise any issues with the Chair in advance of the meeting. The number of scheduled Board meetings and Committee
meetings, of which they are a member, attended by each Director during 2022 is provided in the table overleaf.
In addition to the seven scheduled Board meetings held during the year, the following additional meetings were held:
• In November 2022, one meeting was held to review the new Chair candidate position. Our current Chair, Annette was not involved in
the new Chair process.
The Board also delegated authority to a Board Sub-Committee on three occasions during the year to review and approve inal dafts of
announcements and proposals, which had already been considered by the Board or its Committees, on behalf of the Board.
The Board met in person for all seven of its meetings held during the year, including its stategy meeting (and October Board) which was
held over three days in the UK.
Board meetings
Board Sub
Committee
Meetings
Audit Committee
Meetings
Risk Committee
meetings
Nomination and
Governance
Committee
meetings
Remuneation
Committee
meetings
Total Meetings Held 7 5
*
11 11 9 9
Annette Cout (Chair) 7/7 4/5
2
– – 9/9 –
Milena Mondini de Focatiis
(Chief Executive Oicer) 7/7 4/5
3
– – – –
Geaint Jones (Chief Financial Oicer) 7/7 5/5 – – – –
Karen Green 7/7 5/5 11/11 5/5
8
– –
Jean Park 4/7
1
1/2
1*
– 5/11
1
7/9
1
4/9
1
Justine Robets 7/7 1/2
4*
– – 9/9 –
Andy Crossley 7/7 1/2
5*
11/11 11/11 – –
Michael Brierley 7/7 2/2
*
11/11 – – 8/9
10
Jayapakasa (JP) Rangaswami 7/7 1/2
6*
– 11/11 – –
Evelyn Bourke 7/7 1/2
7*
– – – 9/9
Bill Robets 7/7 2/2
*
– – 9/9
9
–
1 Jean Park was unable to attend three Board meetings on 1/2 March 2022, 27/28 April 2022 and 15/16 June 2022; one ad-hoc Board meeting on 21 Februay 2022, two Risk Committee meetings
on 7 April and 21 June 2022 and four ad hoc meetings on 16 Februay 2022, 4 May 2022, 17 May 2022 and 29 July 2022; two Nomination and Governance Committee meetings on 28 April 2022
and 16 June 2022 and one ad hoc meeting on 11 Februay 2022 and four Remuneation Committee meetings on 28 Februay 2022, 7 June 2022, 4 August 2022 and 12 September and one ad hoc
meeting on 15 March 2022 due to a tempoay medical leave of absence
2 Annette Cout did not attend the ad-hoc Board meeting on 30 November 2022 as this meeting was pat of the new Chair recruitment process
3 Milena Mondini was unable to attend one ad hoc meeting of the Board called at shot notice on 21 Februay 2022 following a Nomination & Governance meeting which urgently had to make
recommendations following news of Jean’s medical leave of absence
4 Justine Robets was unable to attend one ad hoc meeting of the Board called at shot notice on 21 Februay 2022 following a Nomination & Governance meeting who urgently had to make
recommendations following news of Jean’s medical leave of absence
5 Andy Crossley was unable to attend one ad hoc meeting of the Board called at shot notice on 30 November 2022
6 JP Rangaswami was unable to attend one ad hoc meeting of the Board called at shot notice 21 Februay 2022 following a Nomination & Governance meeting who urgently had to make
recommendations following news of Jean’s medical leave of absence
7 Evelyn Bourke was unable to attend one ad hoc meeting of the Board called at shot notice 21 Februay 2022 following a Nomination & Governance meeting who urgently had to make
recommendations following news of Jean’s medical leave of absence
8 Karen Green was appointed as a member of the Risk Committee on 1 June 2022
9 Bill Robets was appointed as a member of Nomination and Governance Committee on 21 Januay 2022
10 Michael Brierley was unable to attend one ad hoc meeting of the Remuneation Committee called at shot notice on 27 October 2022
* The following ad-hoc Board meetings were delegated to the following members only: 2 March, 4 April & 9 August Annette Cout, Milena Mondini, Karen Green and Geaint Jones
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Admial Group plc Annual Repot and Accounts 2022
Principal areas of focus for the Board in 2022
Governance
• Progress made against the indings arising from the 2021
internal Board evaluation
• Diversity and inclusion
• Directors’ duties
• Group succession planning and talent management
• Matters reseved for the Board and the Committees’
respective terms of reference
• BEIS audit and governance reform consultation
• New Chair recruitment
Stakeholders
• Updates from the Chair of the UK Employee Consultation
Group (ECG)
• Updates from the Head of International Insuance on the
overseas ECG
• Update on culture and people, including Great Place to
Work (GPTW) results
• Updates on diversity and inclusion
• Updates from Investor Relations
• Sustainability approach and the delivey against key pledges
• Stakeholder map and respective stakeholder updates
throughout the year, including engagement mechanisms
• Regulatoy relationships
• Reinsuance arangements
• Group health and safety, wellbeing and impact of
remote-working
• Suppliers and patners, including prompt payment pactices
• Overseeing the review of the Group Reward Stategy
Stategy
• Review of Group purpose
• Stategy deep dives throughout the year from each
Group business
• Financial Conduct Authority (FCA) pricing remedies for the
UK geneal insuance market
• Band, technology and digital progamme updates
• Group Stategy Review at the stategy-focused meeting
in October, which considered product diversiication,
Admial 2.0 and motor evolution, as well as updates from
each Group subsidiay business on their individual stategies
Regulatoy/risk updates
• Admial Internal Model Application Process (AIM) updates
• Own Risk and Solvency Assessment Repot (ORSA) review
• The Prudential Regulatoy Authority (PRA) attended the
December 2022 Board meeting
• Modern slavey risks in the supply chain
• Assessment of key external risk factors and lessons learned
from Covid
• Cyber risk updates and crisis management education,
including lessons learned
Opeational peformance
• Impact of the Covid pandemic
• Hybrid working updates
• IFRS 17 Insuance Contacts taining and inancial
impact assessment
• Regular tading updates from the Group’s
subsidiay businesses
• Group inancial peformance and position
• The Group’s Five-Year Plan
• Dividend consideations
Principal areas of focus for the Board for 2023
• Ensure smooth tansition process and suppot to the
new Chair
• Ensure that there is a robust selection process for the new
Group Risk Committee Chair and other NED roles identiied
to be required
• Continuing focus on executive team succession planning
• Ensure diversity and inclusion objectives are embedded
• Suppot the continuous development of Admial’s
core competencies
• Ensure customers continue to be at the front and centre
of new and incremental changes to improve our sevice
to customers
• Oversee the Group’s diversiication stategy.
• Oversee embedding of the Group’s agreed Sustainability
stategy and ensure that it becomes integal to the Group’s
stategy and culture
• Monitor progress against key pledges for Climate Change
and community, and key metrics. Submit Science Based
Targets to SBTi for approval
• Continue to deepen the Board’s understanding of external
risk factors
• Provide steering and oversight for capital management,
reinsuance and clear action plan to achieve successful
internal model application process
• Oversee the roll-out and evolution of the Group
reward stategy
139
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Admial Group plc Annual Repot and Accounts 2022
Governance Repot
continued
Culture
• It remains impotant that Admial’s culture evolves and adapts
as the business environment changes, but it is even more critical
that those pats of our culture that have been our competitive
advantage and a key driver of our success to date are iercely
protected, especially in continuing periods of change
Aligning our culture with our purpose, values, stategy,
policies and pactices
• Our culture is strongly aligned to our new Group purpose to
‘Help more people to look after their future. Always striving
for better, together’. Providing customers with great products
and sevices, whilst caring for our people and other impotant
stakeholders is key to what we do
• Although our Group purpose was renewed in Januay 2022, our
unique workplace culture continues to be reinforced by our Four
Pillars of Culture:
The Four Pillars are built into the fabric of our taining,
communication, policies and the way we do business. During the
year, the Board received assuance from management that the
Group purpose had been embedded within the opeational
process and policies and that there continued to be alignment
with its rewards and incentives. The Board recognised that there
was evidence of the Group purpose and values having been
embedded in the Group’s policies and pactices and requested
that futher information on the oveall embedding of the Group’s
purpose be provided in early 2023.
Futher information on:
• What makes Admial a fun place to work can be found in the
Stategic Repot on page 10
• Communication with our people can be found in the Stategic
Repot on page 81
• Our approach to diversity and inclusion can be found in the
Stategic Repot on pages 78 to 80 and the Group Nomination
and Governance Committee Repot on page 158
• The Group’s approach to investing in and rewarding its
workforce can be found in the Annual Repot on Remuneation
on page 196
Guiding and promoting culture (See more about hybrid/
remote/Smat Working on page 28)
Our Directors have a responsibility to act with integrity, lead by
example and promote the desired culture. They do so through
their eveyday inteactions, and we also ensure that any policies
which apply to the Non-Executive Directors are consistent with
the equivalent policies for the workforce.
There are many initiatives which promote Admial’s unique culture,
some of which include:
• A compensation and promotion structure based on meritocacy.
• Star lunches where colleagues are recognised for their
peformance and are invited to attend a lunch with a
senior manager
• Group Top 10 competition in which all depatments compete
in a highly contested Group-wide competition to present to
a panel of senior managers on a diferent subject each year
in order to be awarded the best depatment
• Cofee Morning Away Day (CMAD) an annual ofsite for
senior management
• Annual Manager Awards
• Local reward and recognition progammes
• High ive feedback progammes where colleagues can submit
feedback on colleagues across depatments who have given
great sevice
• Ministy of Fun. Futher information can be found on page 10
of the Company Oveview
Fun
We want our people to look foward to
coming to work, celebate who they are,
and feel happy and suppoted enough
to give that little bit exta.
Communication
We encouage efective and tansparent
communication at all levels. This is
aided by accessible management and
oppotunities to encouage feedback
across the Group.
Equality
We work hard to promote a sense of
fairness and equality. Eveyone has
the oppotunity to succeed, backed by
groups suppoting diversity, inclusion
and social mobility.
Recognition and reward
A job well done should be appropriately
rewarded. At the heat of this pillar is our
share ownership scheme, which rewards
success with a stake in the Company.
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Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
• Health and wellbeing initiatives introduced during Covid to
encouage employees to speak up if they needed suppot,
a weekly health and wellbeing bulletin, yoga classes, webinars,
at classes, amongst many other things
• Taining/career development
• Diversity and inclusion working groups and initiatives
• Putting health and safety irst, paticularly in respect of the
return to oice consideations
• New employee induction workshops on Business and Culture
at Admial see page 143
• Return to in-person team days
Monitoring and assessing culture
People and culture scorecard
During 2022, work was progressed to update the culture scorecard.
The scorecard continues to undergo a period of evolution but
provides a good view of the key people and culture metrics in
order to help management and the Board’s assessments of
the oveall health of the Group’s culture. It also suppots the
identiication of any trends in the evolution of the Group’s
workforce and culture, including any associated risks which could
impact the execution and suppot of the Group’s stategy.
The Group continues to view the following people and culture
metrics that are derived from the annual GPTW suvey and
Admial’s regular internal pulse suveys as the lead indicators for
people and culture at Admial. The GPTW suvey is an external
suvey which collates anonymised question responses to provide
an oveall result, as well as depatmental results.
GPTW Trust Index: The Trust Index comprises 60 questions from the GPTW suvey, that are
stable over time, benchmarked against the Best Companies in each
market, and highly representative of the oveall people sentiment of
a positive culture.
2022: 84%
2021: 86%
GPTW
Engagement
Index:
The Engagement Index is a speciic measure comprising nine questions
from the GPTW suvey relating to willingness to go the exta mile,
intention to stay with the business and likelihood of being an employer
band promoter. It is also benchmarked and stable over time and has
a proven correlation with business peformance. According to the
GPTW institute research, the drivers that are most correlated to higher
engagement scores are: (i) teamwork, (ii) career development, (iii) values
and ethics, (iv) empowerment and accountability, and (v) innovation.
2022: 82%
2021: 84%
GPTW Culture Index: The Culture Index is a speciic measure comprising of eight questions from
the GPTW suvey relating to employee perception of the workplace as
friendly, fun and welcoming.
2022: 89%
2021: 90%
Pulse suveys Pulse suveys are undetaken four times a year and ask the same questions
of our people to enable management to tack any trends.
86% of our people feel
they are well suppoted by
their manager*
86% of our people think we
are truly customer focused*
88% of our people think
that impotant knowledge
and information is shared
with them by their manager*
92% of our people believe
Admial Group is a diverse
and inclusive employer*
* Q3 2022 pulse suvey results
Other people
metrics
Headcount, gender balance, absence, attrition, recruitment.
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Admial Group plc Annual Repot and Accounts 2022
Governance Repot
continued
Scores continue to be vey high across the Group, resulting in
each Group entity being anked among the Best Places to Work
in their respective local markets. This demonstates the strength
and impact of the Admial culture. Admial is anked as the 19th
Best Workplace in Europe by Great Place to Work.
Pulse suvey results in 2022 demonstated that people at Admial
continued to feel well suppoted by their managers, the majority
enjoyed working from home and communication was scored
highly. Some examples of action taken following comments aised
within the pulse suveys are outlined in the Our People section on
pages 77 to 81 of the Stategic Repot.
The Board received an update on the People and Culture Scorecard
metrics during the year, including updates on the impact of
remote working on Admial’s culture and how this risk would
evolve as the Group moved to a hybrid working model.
Management recognised at that time that there were seveal
metrics which needed to be closely monitored as a result of the
culture risks associated with a move to a more permanent model
of hybrid working, including engagement, absence and attrition
trends, paticularly as these metrics had increased back to pre-
Covid levels in the UK, and recruitment, noting that improvements
were needed to enhance the Group’s critical capabilities in areas
such as technology and analytics. The Board also challenged how
futher insights could be gained by tweaking some of the metrics
and noted that the fun aspect of Admial’s culture was impotant
to Admial people. Futher information on the Group’s tansition to
hybrid working can be found in the Stategic Repot on page 28.
Other tools
In addition to employee paticipation in regular monthly suveys
and the annual GPTW suvey, there are seveal other mechanisms
used by the Group and the Board to monitor and assess culture.
For example, culture audits conducted by the internal audit
function; ‘Meet the Manager’ meetings; the ‘Ask Milena’ scheme;
regular online manager chats; ECG meetings; mandatoy taining
completion ates; health and safety data; whistleblowing and
grievances; and customer net promoter score (NPS).
All are felt to be valuable methods of capturing the mood of our
people and to gauge the health of our culture.
The Board Committees also help the Board monitor and assess
culture through their respective responsibilities, some examples
of which are highlighted below.
Audit Committee – Whistleblowing, Internal Audit, Group
Minimum Standards.
Risk Committee – Risk events that would impact remuneation
from a malus and clawback perspective, inancial crime and
misconduct risks.
Remuneation Committee – Workforce remuneation policies
and assesses their alignment with culture and stategy, risk events
repoted to it by the Risk Committee under the malus and
clawback famework.
Nomination & Governance Committee – Diversity and inclusion
stategy and policies and progress against targets to ensure
alignment with the Group’s stategy and values, and succession
and talent management.
As well as receiving updates on the Group’s culture at Board
meetings, the Non-Executive Directors utilise other mechanisms
to assess and monitor culture, such as attending meetings of
the UK ECG and Subsidiay Boards and peforming site visits
across the diferent entities within the Group, where possible,
which enable the Non-Executive Directors to gauge the culture
for themselves during their discussions with a cross-section of
colleagues. In 2022, The Board Chair visited L’olivier oices in Paris
and Lille, the Admial Seguros oice in Seville, the Admial Europe
Compañía de Seguros S.A.U. (AECS) Board meeting in Rome with
the ConTe management team and employees, Elephant oice in
Richmond and was accompanied by some of the Non-Executive
Directors on those visits.
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Onboarding of new employees in a remote environment and protecting our culture
Following the initial national Covid lockdowns, Admial introduced a new element to its induction for those joining remotely
who had secured roles within the suppot functions of the business, who othewise would not have had the four-week induction
that our customer-facing colleagues complete, in order to safeguard its unique culture. The business and culture induction is
a six hour progamme covering the basics of our core values, culture and purpose and includes the following modules:
Module
1
Welcome to Admial
• How Admial built its business back in 1993 to become a FTSE 100 company
• What bands we use to sell our product
• Admial’s purpose statement
Module
2
Building our Business
• Admial Group’s business model
• Admial’s goals for 2022
Module
3
Introduction to the Insuance Industy
• The basics of the UK insuance market
• Understanding the governing bodies within UK insuance
• Principles of insuance
Module
4
Learning about Admial’s Products & Sevices
• Our products and sevices
• Reviewing our online websites and conducting customer research
Module
5
Upholding Our Culture at Admial
• How evey employee can uphold Admial’s unique culture moving into the future
• Admial’s four pillars of culture
Module
6
Personal Development at Admial
• How Admial can look after your future through taining and development
• Registering for Admial’s internal talent bank
Module
7
Award Winning Culture & Core Competencies
• How to implement Admial’s core competencies into your role
• Admial’s corpoate responsibility repot
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Whistleblowing
The Board has in place arangements by which employees can aise
concerns in conidence and, if necessay, anonymously. During the
year, the Board received an update on the Group’s whistleblowing
arangements from the management team. The Audit Committee,
chaired by the Group’s Whistleblowing Champion, Karen Green,
was satisied that the update was propotionate for independent
investigation of the matters aised and suppoted an ethical
business culture where colleagues felt safe aising concerns.
In addition, and on an exceptions basis, the Board is updated in
respect of repots arising from matters that have been aised by
our people under the Whistleblowing Policy. The Audit Committee
receives more regular updates in respect of whistleblowing
matters. Please see page 177 for futher information.
Stakeholder engagement
During the year, the Board has continued to focus on ensuring
efective engagement with its stakeholders and that their interests
are taken into account in its decision-making. Detailed information
is set out in the Stategic Repot on page 112 outlining how the
Board has discharged its duties under s172(1) of the Companies Act,
including futher information on the ECG, which constitutes a formal
workforce advisoy panel under the Code.
Communication and inteaction with shareholders remain vey
impotant and engagement with them occurs on a regular
basis. Open and frequent dialogue with investors enables
them to fully understand the Group’s stategy, objectives and
governance. The Investor Relations team has day-to-day primay
responsibility for managing communications with institutional
shareholders through a combination of brieings to analysts and
institutional shareholders, both at the half-year and full-year
results and on other occasions such as roadshows and conferences.
Meetings, brieings and conferences with investors have taken
place both in-person and vitually. The Capital Markets Day on
IFRS 17 was held on 28 November 2022.
In addition, the Chair, interim Senior Independent Director
(SID) and Group CEO held meetings during the year with major
shareholders to understand their views on governance and
peformance against stategy and repoted to the Board on
any signiicant issues aised with them.
This is supplemented by feedback to the Board on meetings
between management and investors. The Investor Relations
team also regularly produces a repot on their activities in
the previous quater which is circulated to the Board for their
consideation. The Repot contains an analysis of share price
peformance; a summay of analyst repots received during the
month and of meetings that have been held with investors and
analysts; together with details of any signiicant changes to the
shareholders’ register.
The SID has speciic responsibility to be available to investors
who have any issues or concerns, and in cases where contact with
the Chair, Chief Executive Oicer and Chief Financial Oicer has
either failed to resolve their concerns, or where such contact
is inappropriate. No such concerns have been aised in the year
under review.
All shareholders are invited to attend the Company’s Annual
Geneal Meeting (AGM) in person. The 2022 AGM went ahead
with the required quorum and the Board and Shareholders were
invited to attend in person. Shareholders were able to vote on the
impotant customay annual business and encouaged to submit
questions to the Board in advance of the AGM.
The Chairs of the Audit, Remuneation, Nomination and Governance,
and Group Risk Committees usually attend the AGM along with the
other Directors and are available to answer shareholders’ questions
on the activities of the Committees they chair. Shareholders are
also invited to ask questions during the meeting and have an
oppotunity to meet with Directors after the formal business
of the meeting has been concluded, or in advance, if there are
restrictions in place on public gatherings. Details of proxy voting
by shareholders, including votes withheld, are made available
on request and are placed on the Company’s website following
the meeting.
The Group maintains a corpoate website (www.admialgroup.co.uk)
containing a wide ange of information of interest to institutional
and private investors. The major shareholders of the Company are
listed in the Directors’ Repot on page 210.
The regular channels of communication with both the FCA and
PRA that existed throughout the year were supplemented by
the regulators being invited to attend Board meetings in 2022.
The PRA attended the Board remotely in December 2022,
which gave the Board an oppotunity to hear directly their views.
The Board is also kept up to date with the regular communications
between the AIGL Board and the Gibaltar Financial Sevices
Commission as well as contact between the Group’s other
insuance subsidiaries and respective regulators.
Governance Repot
continued
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Employee Consultation Group
Purpose
The Board recognises the impotance of engaging with its
workforce and does so through a combination of informal
and formal channels. To ensure a two-way communication
platform and an efective means by which the views of the
workforce can be heard, the Board established a UK Employee
Consultation Group (ECG) in 2019 with the aim of enhancing
and formalising its pre-existing employee engagement
arangements. For the purposes of Provision 5 of the UK
Corpoate Governance Code, the ECG is a formal workforce
advisoy panel.
Membership and attendance
Membership of the UK ECG comprises elected colleague
representatives and the remit of the ECG is to act as a forum
for employee consultation, gathering colleague opinion and
fostering a safe environment to aise matters of interest
and geneate ideas. There is a democatic member election
process and members are provided with an induction to
ensure that there is clarity about the role and remit of the
ECG, as well as their role as members.
Non-Executive Directors are invited to attend ECG meetings
on a rotational basis and repot back to the Board on matters
discussed, as well as actions agreed at the ECG meeting.
Taking this approach ensures that each of the Non-Executive
Directors can engage with the workforce directly and
hear irst-hand the issues and matters that are afecting
the workforce.
To ensure that the meetings remain a two-way mechanism,
Non-Executive Directors are also asked to comment on
any insights from the ECG meetings at the following Board
meeting and the Chair of the UK ECG is regularly invited to
attend Board meetings to repot on matters discussed by the
ECG and any areas of concern. Minutes of the ECG meetings
are also published on the intanet for all employees to view.
Non-Executive Directors also provide an update at ECG
meetings on recent matters discussed by the Board.
Agenda topics inluenced
by our people and upcoming
Board agenda
Meet and discuss views of our people
on topics and rotating NED shares
Board insights
Feedback from the Board
provided by the ECG Chair
Summay of meeting provided
to Board by ECG Chair
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Summay of meetings provided to Board by ECG Chair
There were four ECG meetings during 2022 with a ange of topics discussed, including themes of pay and reward, the cost of living,
and Smat Working. Presentations on the following topics were also given to the ECG before they were discussed by the Board:
Meeting Presentations and topics discussed Outcome / impact
April 2022 Customer Outcomes The ECG was updated on Admial’s approach to delivering excellent
customer sevice and delivering fair outcomes.
Community Stategy Focus was given to developing new initiatives such as the employability
progam and adapting the existing approach to volunteering.
Pay, beneits and cost
of living suppot
The ECG were updated on the remuneation package review and
discussed how Admial could suppot its staf regarding the increase in
energy costs.
June 2022 Pet Insuance Colleagues were excited about the launch of Pet Insuance and Admial’s
commitment to ofering a diverse ange of products. Staf were pleased
to hear about the promotion of new roles across Pet and its positive
impact on business growth.
Climate Change The ECG debated how staf could make a positive contribution towards
carbon footprint reduction projects and how to promote them to all
employees across the business.
Pay / Beneits and Return
to Oice
Staf discussed making job role advetisements more tansparent
and the impotance on health and wellbeing for the return to the
oice. Staf gave positive feedback on the announcement of a new
reward package.
October 2022 ECG Periodic Review The Board was presented with a periodic review of the eicacy
and makeup of the ECG. A feedback session was also held with
representatives across the business.
The review set out seveal recommendations including more engaging
methods of communication such as drop-in sessions and video updates
to help promote awareness of the ECG.
December 2022 UK Insuance Stategy The ECG discussed the impact of price increases and claims inlation.
The ECG received an update on structual changes within the digital and
opeations teams.
The Board continues to believe that, whilst recognising that the
mechanism will evolve over time, the opeation of the ECG has
been and continues to be an efective means of engaging with the
workforce, to help the Board understand the matters that concern
the workforce and their speciic interests, whilst having regard
to these in the decisions that are made at Board level. The Board
will ensure that the ECG continues to develop as an efective,
formal workforce advisoy panel and that regular inteaction
between the Board and the ECG is maintained.
During 2022, a new Chair of the ECG was appointed following the
retirement of the inaugual Chair, Stuat Morgan who was also
Group Head of Talent. Alan Pateield-Smith, the UK Chief Technology
Oicer, was appointed in April 2022. Following Alan’s appointment,
employees were invited to join the Group via a nomination and
voting process, and applicants were decided upon by colleagues.
The growing ECG forum remains focused on impotant issues
such as remuneation, peformance management and appaisal
processes, ideas to improve engagement, moale, attrition and
absence, proposals to suppot mental health and wellbeing, staf
suvey results, and improving diversity.
Governance Repot
continued
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International Employee Consultation Group (IECG)
During 2022, an International Employee Consultation Group was formalised, under the direction of Costantino Moretti, Head of
International Insuance.
This year, four IECG meetings took place in person across the international oices of ConTe, L’olivier, Admial Seguros and Elephant
alongside the Admial Europe Compania de Seguros (AECS) Board meetings. The meetings were attended by candidates chosen
on a voluntay basis, with an agenda created to incorpoate employee interests, questions and proposals.
Entity/Meeting Topics discussed Outcome / impact
ConTe/
June 2022
Communication relating
to tansformation
Employees provided positive feedback on the communication
received regarding tansformation plans, paticularly relating
to product and channel tansformation.
What worked well in 2022 Attendees agreed that increased engagement via team
meetings and updates helped employees feel better
connected and aligned.
What could be improved/ lessons
learnt in 2022
New hires commented that remote onboarding was
sometimes a diicult and slow process and suggested that
onboarding was more eicient and personal when face-
to-face.
L’olivier/
November 2022
Staf engagement and
sense of belonging
Attendees discussed the impact of remote working on
culture and recognised that it was sometimes more
challenging to engage employees remotely. The meeting
suggested new tools and pactices to get employees
more involved.
New trends Employees presented their thoughts on the 4-day workweek.
Tansition to Agile Employees outlined the impacts of the tansition to Agile
upon their teams.
Progress in Diversity and Inclusion Employees celebated Admial’s commitment to D&I, and the
success of female representation.
Admial Seguros/
September 2022
Scaled Agile tansformation Employees discussed the success of the agile tansformation,
and the enthusiasm for change.
Inlation Members discussed worries about inlation and highlighted
how salay adjustments could help employees.
Admial Culture Employees shared thoughts on how they felt Admial culture
was evolving.
Test & Learn Culture Members discussed how teams are encouaged to follow a
test and learn culture.
Elephant/
August 2022
Diversity and Inclusion Employees highlighted that geneally, they feel actions on
gender diversity are well addressed, and that improvements
relating to ethnicity and acial diversity are improving and
remain a focus area.
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Governance Repot
continued
s172
Principal
Decisions
Customer People
Society Business
Our distinctive culture and focus on ‘The Team, The Team,
The Team’ has always been a poweful source of competitive
advantage. Admial takes great pride in looking after colleagues
and helping them to look after their future. We aim to suppot
our employees with competitive reward structures, in addition
to health and wellbeing pactices.
Against the backdrop of a challenging macroeconomic
environment in 2022, management recognised that employees
were becoming increasingly impacted by an unprecedented cost
of living crisis. As a result, our People Sevices depatment engaged
in seveal feedback and engagement activities to discover how
the business could understand and respond to growing pressures
faced by employees. Activities undetaken included competitor
benchmarking, collecting feedback from suveys
1
and noting
recommendations from employee consultation groups in the
UK and international oices.
In July 2022, the management team presented seveal insights
gained from internal data relating attrition ates and cost
modelling to the EUI Board, along with a set of recommendations
to revise the employee value proposition considering the cost-of-
living crisis.
In October 2022, the Group Board received feedback from
the UK Employee Consultation Group (ECG) relating to how
Admial could suppot employees with the rising cost of energy.
The International Employee Consultation Group (IECG) also
shared how employees at Admial Seguros were concerned
about the impact of inlation on salaries. The Group Board
discussed additional compensation measures that would futher
align the employee value proposition with Group purpose:
‘Help more people to look after their future. Always striving for
better together.’
1 Great Place to Work Suvey, and Pulse Suveys
Principal Decision #1
Cost of Living Response
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Diversiication by being less dependent on a paticular business
sector or geogaphy is one of the key pillars that underpins the
Group’s stategy. The stategy is reviewed and refreshed by the
Board annually to ensure the Group acceleates on priority areas
and, if necessay, launches new products that are aligned to the
diversiication objectives, and which are designed to ensure
sustainable future growth for the Group. As a customer centric
organisation, we also seek to create products that provide more
people with good inancial sevices products.
At the Group Board Stategy sessions in October 2022, the
Group Board considered and approved the Group’s refreshed
diversiication stategy and its alignment with the Group purpose:
‘Help more people to look after their future. Always striving for
better together.’ As pat of the stategy session, the Group Board
considered the Group’s long-term stategy of continuing to focus
on customer needs and fully understanding what customers
wanted so that products could be built to meet their needs and to
enable the Group to maintain competitive advantage in the long
term. The Board focused not only on the market share of existing
products, but also on expanding across diferent markets, diferent
jurisdictions, diversifying distribution channels and launching
diferent products to achieve ‘true diversiication’ outside
of insuance.
Throughout the year, the management team considered how
additional payments would afect Admial’s stakeholders,
including the inancial impact on group proit and possible
challenges from shareholders. Ultimately the business considered
threats of attrition and recruitment challenges and concluded
that an adequate response to the cost-of-living crisis was
consistent with and suppotive of the Group’s long-term success.
July
• A series of measures to respond to
the cost-of-living crisis were presented
to the EUI Board
September
• Admial increased stating salaries for
all UK based employees, whilst increasing
the minimum annual salay for full time
employees. Holiday allocations and
entitlements were also increased
• Plans for salay adjustments in the
international oices were also dafted
following an AECS Board meeting and
feedback from employees
October, November, December
• Cost of living payments were implemented
in the UK
• Standard working hours were revised
and shotened without reducing salaries,
with a package of changes equating to a
10% salay increase for many in the UK
• Similar salay adjustments and bonuses
were implemented for colleagues working
in Italy, Fance and Spain
October
• Admial Group Board discussed
inancial measures to futher suppot
employees and heard from the Employee
Consultation Groups
Timeline
Principal Decision #2
Group Diversification
Stategy
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Governance Repot
continued
In 2022, our Corpoate Social Responsibility (CSR) team undetook
seveal feedback and engagement activities with key stakeholders
to better understand the scope and impacts of our charitable and
volunteering propositions. The indings recognised many strengths
of the approach, but also noted that an ovearching objective was
hard to identify and communicate, and that the ability to measure
impacts was relatively weak.
To represent the perspectives of all stakeholders potentially
impacted by changes to our long-standing community approach,
indings and recommendations were circulated with the following
groups for consideation and comments:
• Employee Consultation Group – Colleagues representing UK
business areas
• Social Mobility Forum – Colleagues covering all UK entities
• People Sevices International – Human resources colleagues
from across the Group’s international businesses
• Admial Leaders Ofsite (ALO) – A group of our most senior
leaders including our International CEOs
• Admial Business Club – Senior managers from across UK entities
• International Insuance Group – Senior international leaders
across the Group
Consequently, a proposal for the revised Community Outreach
progam evolved, with an ovearching purpose of ‘helping as
many people into jobs as possible’ and was presented to the
Group Board in October 2022. The proposal included volunteering
targets presented as ‘impact hours’, that would not only suppot
communities, but also contribute to teambuilding and colleagues
building networks in and outside of the business. The proposal
also outlined plans to help suppot thousands of people into
employment each year.
In November 2022, the EUI Board considered the proposal in the
context of it being of beneit to the communities in which we
opeate. Management agreed that the approach would allow
Admial to demonstate a clearer set of community objectives,
with metrics to repot against. The Community stategy was
considered aligned with the Group Purpose of ‘Helping more
people look after their future. Always striving for better, together.’
For 2023, Admial has a robust long term community plan,
with peformance metrics that can be shared both internally,
and externally. As the stategy is embedded across the Group,
the CSR team will closely monitor patnerships and investments,
the volume of people we can impact and suppot into
employment, colleague engagement, and the number of hours
spent volunteering in our communities. The Group Board will
continue to monitor the targets set as pat of the new community
stategy to ensure that the stategy continues to provide
measuable value and suppot to the communities in which
we opeate.
In suppot of the Group’s diversiication stategy, the Board
considered the launch of an enhanced Pet insuance product in
the UK which was intended to capitalise on the materiality of
the oveall Pet insuance market, and which was to be ofered to
customers at a competitive price with a simpliied, digitised claims
process for both customers and vets alike. The Board has been
updated in paallel on the progress of the launch of Pet insuance
in Italy which was launched in 2021 with continued progress during
2022. The Board also reviewed the launch of loan products in Italy
during 2022 in the context of whether they were aligned with the
diversiication goals that had been set by the Board.
In December 2022, the Group Board had a deep dive on the
progress of the Group’s Diversiication stategy and outline of the
ambition for 2023. The Board challenged management on the
progress of the stategy and the progress of the diversiication
products that had been launched and were satisied that they
were aligned with the Group’s stategy to capitalise on the
Admial band, the existing motor book and core competencies
to acceleate diversiication and increase customer lifetime value.
The deep dive assured the Board that the Group diversiication
stategy remains focused on the core elements of sevice and
value, to suppot better customer experiences.
Principal Decision #3
Changes to our
Community Outreach
Progamme
Giving back to our communities is an integal pat of our
company culture. Our people play a key role in how we engage
with our communities, and we work collectively to drive long-term
change in the various communities in which the Group opeates.
Admial is known for being a generous patner of community
charity initiatives and has historically suppoted many causes,
both inancially and in terms of people resource. Our people
have a voice in decisions made, and the freedom to volunteer
two days of their time a year, fully paid, at any community
initiative or charity impotant to them. We believe that doing
good helps colleagues to feel good and aligns with our purpose
‘always striving for better, together.’
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FCA remedies
The FCA published a Policy Statement on 28 May 2021 which
implemented a package of remedies to address the issues
identiied in its geneal insuance pricing pactices market study
inal repot. The FCA introduced a ‘pricing remedy’, which means
irms must now ofer a renewal price to a consumer that is no
greater than the equivalent new business price ofered to a new
customer; enhancements to product governance; rules to ofer
a ange of accessible and easy options for consumers who want
to cancel auto renewal contacts and repoting requirements for
home and motor insuance markets. The pricing remedy applies
to irms opeating in the home and motor insuance markets,
with an implementation date of 1st Januay 2022. From 1 Januay
2022, if the pricing remedy is not implemented, irms will be
expected to remediate and redress any customers afected.
The Group Board received an update in Januay 2022 conirming
that the business had met the regulatoy deadlines, and the
new auto-renewal options were introduced successfully in late
December 2021. Signiicant work has been undetaken to optimise
the auto-renewal process across the customer journey to mitigate
any impact on retention and improve the customer experience.
The business provides customers with the ability to opt out during
the quote journey and prior to the conclusion of a sale.
Principal Decision #4
Regulatoy Decisions
IFRS 17/FCA Remedies
IFRS 17
In May 2017, the International Accounting Standards Board issued
a new standard for insuance contacts, IFRS 17, efective from
1 Januay 2023. IFRS 17 establishes the principles for the recognition,
measurement, presentation and disclosure of insuance contacts
and requires companies to measure insuance contacts using
updated estimates and assumptions that relect the timing of
cash lows and any uncetainty relating to insuance contacts.
The requirements will provide tansparent repoting about a
company’s inancial position and risk. The new standards apply to
the Group and its insuance subsidiaries in the UK and Gibaltar.
During 2022, the Group Board and all impacted subsidiaries
approved the business tansition plans for the new standard
and progress on its implementation has been monitored closely
by the Group and subsidiay Audit Committees throughout
2022. The Board welcomes the new repoting standard and the
oppotunity to provide enhanced disclosures in respect of claims
reseves. The Group Board will repot under IFRS 17 for the irst
time at Admial’s 2023 interim results, in August 2023.
In November 2022, a presentation was delivered to analysts
and investors to outline repoting changes. The presentation
was delivered by the Director of Group Finance & Chief Actuay
and IFRS 17 Accounting Lead and attended by over 20 market
paticipants, who had the oppotunity to ask about the impact
on Group stategy, solvency, dividend policy and cash geneation.
A successful implementation is anticipated in Q1 2023.
Futher details can be found in Audit
Committee Repot on page 171
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Principal Decision #5
New Chair Appointment
As a result of Annette stepping down as Chair of the Board
following the AGM in April 2023, the Board needed to identify,
select and appoint a new Chair. Justine Robets, as interim
Senior Interim Director (SID) following Jean Park’s medical
leave of absence, led the Chair succession process on behalf of
the Nomination and Governance Committee (“Committee”).
The Committee was responsible for nominating and
recommending a candidate for consideation and approval in
principle by the Board, subject to regulatoy approval, and to
contactual terms being agreed between the candidate
and Admial.
Heidrick & Struggles (H&S), an external search irm, was retained
to suppot the search and Chair selection process. In May and
June 2022, H&S engaged with the Board, the senior management
team and the co-founders of Admial to seek input on the role
requirement and proile. These meetings were conducted in
person and vitually and, on the basis of the conversations that
took place, a role speciication was approved.
H&S conducted a comprehensive market wide search and identiied
40 potential candidates who were felt to have a potential good
it with the role speciication and with Admial in geneal.
Six candidates met with members of the Committee and other
senior management including in-person meetings with the CEO.
Following meetings with the full Board and a series of
presentations from the inal shot listed candidates, Mike Rogers
was identiied as the preferred candiate. The recommendation of
Mike to be appointed as Chair of the Board was based on Mike’s
wide business, insuance and inancial sevices knowledge and
experience and someone who would make a strong stategic
impact on the future of Admial.
The Board’s preliminay decision on 8 December 2022 was to
accept the Committee’s recommendation to appoint Mike as Chair
of the Board subject to regulatoy approval and to agreement of
contactual terms between Mike and Admial. The Board inally
approved and announced Mike’s appointment on 31 Januay 2023
and Mike will join the Board as a non-executive Director and Chair
with efect from the conclusion of this year’s AGM on 27 April
subject to regulatoy and shareholder approval.
Read more in our Nomination and Governance Committee Repot
on page 158 for detailed explanation of the process
Governance Repot
continued
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Division of responsibilities
Compliance with the Code Principles
UK Code
Principle Description References
Principle
F
The Chair leads the Board and is responsible for
its oveall efectiveness in directing the company.
They should demonstate objective judgement
throughout their tenure and promote a culture
of openness and debate. In addition, the Chair
facilitates constructive Board relations and the
efective contribution of all non-executive directors,
and ensures that directors receive accuate, timely and
clear information.
• Role of the Chair on page 159
• Code explanation for Provision 19 on page 136
• Individual Director evaluation on page 169
• Board evaluation on pages 167 to 169
• Information lows to and from the Board on page 155
Principle
G
The Board should include an appropriate combination
of executive and non-executive (and in paticular,
independent non-executive) directors, such that
no one individual or small group of individuals
dominates the Board’s decision-making. There should
be a clear division of responsibilities between the
leadership of the Board and the executive leadership
of the company’s business.
• Board composition and succession planning on
page 167
• Code explanation for Provision 19 on page 136
• Board evaluation on pages 167 to 169
• Board roles and responsibilities on page 154
Principle
H
Non-executive directors should have suicient time
to meet their responsibilities. They should provide
constructive challenge, stategic guidance, ofer
specialist advice and hold management to account
• Time commitment and external appointments on
page 163
• Board biogaphies (for external commitments) on
pages 130 to 135
• Board evaluation on pages 167 to 169
Principle
I
The Board, suppoted by the company secretay,
should ensure that it has the policies, processes,
information, time and resources it needs in order
to function efectively and eiciently.
• Information lows to and from the Board on page 155
• Board evaluation on pages 167 to 169
Group Board
Executive Management
Audit Committee
Nomination &
Governance
Risk Committee
Remuneation
committee
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Board roles and responsibilities
The Chair is primarily responsible for leading the Board, setting its agenda, promoting a culture of openness and debate and monitoring
its efectiveness. The Chair is suppoted by the SID, who acts as a sounding board and seves as an intermediay for the other Directors
if required. Neither are involved in the day-to-day management of the Group. Save for the matters reseved for the Board, the Chief
Executive Oicer (with the suppot of the Executive Directors and the senior executives) is responsible for proposing the stategy to be
adopted by the Group, running the business in accordance with the stategy agreed by the Board and implementing Board decisions.
It is the Non-Executive Directors’ role to provide constructive challenge, stategic guidance, ofer their respective specialist advice and
hold management to account.
The Board has approved a statement that sets out the clear division of responsibilities between the Chair, Chief Executive Oicer and SID.
This and matters reseved for decision by the Board are reviewed annually.
Role of the Board
The Board is responsible for promoting the long-term, sustainable success of the Group, geneating value for shareholders and contributing
to the wider society and its shareholders. The Board is the principal decision-making forum for the Group, providing entrepreneurial
leadership, both directly and through its Committees, and delegating authority to the Executive team.
The Board has determined the Group’s purpose which represents its values and stategy and is satisied that it is aligned with the culture
of the Group. Pat of the Board’s role is to promote the Group’s culture and, in paticular, ensure that its uniqueness is safeguarded in such
times of change.
The Board is responsible for organising and directing the afairs of the Group in a manner that geneates and preseves value over the
long term. Through the strong governance famework that it has in place, the Board is able to deliver on its stategy of providing strong
sustainable inancial and opeational peformance. The Board is also accountable for ensuring that in carying out its duties, the Group’s
legal and regulatoy obligations are being met; and for ensuring that it opeates within appropriate risk paameters.
The Group’s UK-regulated entities are accountable to the Financial Conduct Authority (FCA) and the Prudential Regulatoy Authority
(PRA) for ensuring compliance with the Group’s UK regulatoy obligations and that dealings with the FCA and PRA are handled in a
constructive, co-opeative and tansparent manner. Similar provisions apply in respect of the Group’s international businesses with regard
to the relevant regulatoy authorities, such as the Gibaltar Financial Sevices Commission and Dirección Geneal de Seguros y Fondos de
Pensiones in Spain.
Chair Senior Independent Director Chief Executive Oicer
• Runs the Board and sets its agenda,
with an emphasis on stategic issues
• Ensures the Board has efective
decision-making processes,
demonstating objective judgement
and applying suicient challenge
to proposals
• Facilitates constructive Board relations,
including efective contribution from
Non-Executive Directors
• Ensures the Board has an appropriate
balance of skills, knowledge,
experience and diversity
• Leads the induction and development
plans for new and existing
Board members
• Communicates with major shareholders
and ensures the Board understands
their views
• Ensures the Board receives accuate,
timely and clear information
• Leads the annual Board evaluation
• Suppots the Chair in the delivey of
their objectives
• Acts as a sounding board for the Chair
and seves as an intermediay for the
other Directors
• Available to shareholders if they have
concerns that cannot be resolved
through the normal channels
• Works with the Chair and other
Directors/ shareholders to resolve
signiicant issues where necessay
• Leads the annual peformance
evaluation of the Chair
• Leads the Chair appointment process
• Runs the Group’s business and delivers
its commercial objectives
• Proposes and develops the Group’s
stategy, in close consultation with the
Group’s senior management, the Chair
and the Board
• Implements the decisions of the Board
and its Committees
• Ensures opeational policies and
pactices drive appropriate behaviour,
in line with the Group’s culture
• Leads the communication
progamme with key stakeholders,
including employees
• Ensures management provides the
Board with appropriate information
and necessay resources
Governance Repot
continued
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Matters reseved to the Board
The Board has adopted a formal schedule of matters reseved
for the Board’s consideation. This is monitored by the Company
Secretay and reviewed by the Board on an annual basis.
Speciic matters reseved to the Board include the approval of:
• The Group’s long-term objectives and corpoate stategy.
• Opeating and capital budgets, inancial results, and any
signiicant changes to accounting pactices or policies
• The Group’s capital structure
• Results and inancial repoting
• The system of internal control and risk management.
• The Group’s oveall risk appetite
• Changes to the structure, size and composition of the Board,
including new appointments
• Succession plans for the Board and senior management.
• Dividend policy and proposals for dividend payments
• Major acquisitions, disposals, and other tansactions outside
delegated limits
• The annual review of its own peformance and that of its
Board Committees
• Annual review of selected Group policies
• The review of the Group’s oveall corpoate
governance arangements
Board Committees
The Board has delegated authority to seveal permanent
Committees to deal with matters in accordance with written
Terms of Reference. The principal Committees of the Board –
Audit, Remuneation, Risk, and Nomination and Governance all
comply with the requirements of the Code, except where non-
compliance has been explained on page 136 of this repot.
All Committees are chaired by an independent Non-Executive
Director, except the Nomination and Governance Committee,
which is chaired by the Chair of the Board, and comprise a majority
of independent Non-Executive Directors. In accordance with the
UK Code, all members of the Audit Committee are independent
Non-Executive Directors. Appointments to the Committees are
made on the recommendation of the Nomination and Governance
Committee and are for a period of up to three years, which may be
extended for two futher three-year periods, provided the Director
remains independent. The Committees are constituted with
written Terms of Reference that are reviewed annually to ensure
that they remain appropriate and relect any changes in good
pactice and governance. These Terms of Reference are available
on request from the Company Secretay and can also be found on
the Company’s website: www.admialgroup.co.uk.
Directors are fully informed of all Committee matters by the
Committee Chairs repoting on the proceedings of their Committee
at the subsequent Board meeting. Copies of Committee minutes
are also distributed to the Board. Committees are authorised to
obtain outside legal or other independent professional advice if
they consider it necessay. The Chair of each Committee attends the
Annual Geneal Meeting to respond to any shareholder questions
that might be aised on the Committee’s activities. An evaluation of
the peformance of each Committee against the duties set out in
each Terms of Reference is carried out annually.
Group conlicts of interest
In compliance with the requirements of the Companies Act 2006
regarding Directors’ duties in relation to conlicts of interest,
the Group’s Aticles of Association allow the Board to authorise
potential conlicts of interest that may arise and to impose such
limits as it thinks it. The Group has a Conlicts of Interest Policy
which deals with conlicts of interest, and this was reviewed and
approved by the Board in October 2022. The Policy sets out the
process and procedure by which the Board manages potential
conlicts of interest that may arise at Board level, within Board
Committees, and within the Group’s Subsidiay Boards.
Following this review, the Board concluded that the process
continued to opeate efectively.
In addition, each Board member is asked to complete, annually,
a conlicts of interest questionnaire that sets out any situation
in which they, or their connected persons, have, or could have,
a direct or indirect interest that could conlict with the interests
of the Company. Any current directorships that they, or their
connected persons hold, any advisoy roles or trusteeships held,
together with any companies in which they hold more than 1% of
the issued share capital are also disclosed.
Information lows to and from the Board
Agendas and papers
Agendas and papers are circulated to the Board electronically in a
secure manner in prepaation for Board and Committee meetings.
The Board agenda is structured by the Chair in consultation with
the Company Secretay and Chief Executive Oicer. An annual
schedule of agenda items is reviewed and updated at each
meeting to ensure that items are considered at the appropriate
point in the inancial and regulatoy cycle. Meetings are
structured so as to allow for consideation and debate of all
matters. Routine Board papers are supplemented by information
speciically requested by the Directors from time to time.
At each scheduled meeting, the Board receives updates from
the Chief Executive Oicer and Chief Financial Oicer as to the
inancial and opeational peformance of the Group and any
speciic developments of which the Board should be aware.
In addition, there is an update provided at each Board on the
matters discussed and considered at each of the Group’s principal
subsidiay Board meetings.
Additional meetings are called when required and there is
contact between meetings, where necessay, to progress the
Group’s business.
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Attendees
The CEO of UK Insuance (Cristina Nestares) together with
the Chief Risk Oicer (James Armstrong until Februay 2022,
Sue Gilbet Interim Chief Risk Oicer from Februay 2022 until
October 2022 and Keith Davies Chief Risk Oicer from October
2022) are invited to attend evey Board meeting and regular
Board dinners, when these can take place. During 2022, the Head
of International Insuance (Costantino Moretti) and the CEO of
Admial Money (Scott Cargill) have been invited to attend material
topics of debate at the Board meetings. This has proved an
efective means of ensuring that senior managers below Board
level have exposure to and gain experience of the opeation of
the Board.
Dynamics
All Board and Committee meetings during the year were held
in an open atmosphere conducive to robust and constructive
challenge and debate. All Directors have, therefore, been able to
bring independent judgement to bear on issues such as stategy,
risk management, peformance, and resources.
Cross-Committee membership
As shown on pages 130 to 135, Committee membership is
composed in a way that ensures that there is cross-committee
membership, which allows items of impotance to be lagged from
Committee to Committee in a timely manner. This complements
the Committee brieings that the Board receives on the key points
of discussion following each Committee.
Advice
All the Directors have access to the advice and sevices of the
Company Secretay. He has responsibility for ensuring that Board
procedures are followed and for advising the Board, through the
Chair, on governance matters. The Company Secretay provides
updates to the Board on regulatoy and corpoate governance
issues, new legislation, and Directors’ duties and obligations.
The appointment and removal of the Company Secretay is one
of the matters reseved for the Board. Dan Caunt replaced Mark
Waters as Group Company Secretay on 1 May 2022.
The Directors are also given access to independent professional
advice at the Group’s expense, should they deem it necessay to
cary out their responsibilities.
Other information lows
The Board Chair made in-person visits to various pats of the
business during 2022. The Non-Executive Directors were invited to
join her on the in-person visits. Futher information on those visits
is included on page 142.
As referenced within the commentay on culture on page 140,
the Non-Executive Directors are invited to attend ECG meetings
and paticipate in the two-way engagement with our colleagues.
Futher information about this engagement mechanism is
outlined on page 145 of the Stategic Repot.
The Non-Executive Directors and the Chair met in-person
during the year without the Executive Directors being present,
including before each Board meeting.
Management teams were invited to join the Board for dinner on
six occasions which gives the oppotunity for informal inteaction
between Directors and management. The Chair has continued to
hold one-to-one meetings with members of the Group’s senior
management team either on a vitual basis or in-person.
Taining and professional development
On appointment, Directors take pat in a comprehensive
induction progamme whereby they receive inancial and
opeational information about the Group; details concerning their
responsibilities and duties; as well as an introduction to the Group’s
governance, regulatoy and control environment. This induction
is usually supplemented by visits to the Group’s head oice in
Cardif and cetain overseas oices, and meetings with members
of the senior management team and their depatments either on
a vitual basis or in-person. The Non-Executive Director induction
progamme has continued to be adapted in 2022.
Development and taining of Directors is an ongoing process
and is considered through the year. The Directors are regularly
updated on the Group’s business; legal matters concerning their
role and duties; the competitive environments in which the Group
opeates; and any other signiicant changes afecting the Group
and the industy of which it is a pat. During the year, the Board
received deep dive updates, brieings and taining on the
following topics: Admial Internal model (AIM), introductoy Board
Taining on Key Capital Modelling Principles, summay on Market
Abuse Regulations, IFRS 17, Group cyber risk education sessions
(including a Cyber Simulation exercise), Group cyber risk crisis
management, amongst seveal business deep dives.
Governance Repot
continued
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Admial Group plc Annual Repot and Accounts 2022
Composition, succession and evaluation
Compliance with the Code Principles
UK Code
Principle Description References
Principle
J
Appointments to the Board should be subject to
formal, rigorous and tansparent procedure, and an
efective succession plan should be maintained for
Board and senior management. Both appointments
and succession plans should be based on merit and
objective criteria and, within this context, should
promote diversity of gender, social and ethnic
backgrounds, cognitive and personal strengths.
• Succession planning on page 128
Principle
K
The Board and its committees should have a
combination of skills, experience and knowledge.
Consideation should be given to the length of
sevice of the Board as a whole and membership
regularly refreshed.
• Board composition and succession planning:
– Balance of skills, knowledge and experience on
page 163
– Non-Executive Director tenure and independence
on page 162
• Annual re-election on page 161
• Taining and professional development on page 156
• Induction on page 160
Principle
L
Annual evaluation of the Board should consider its
composition, diversity and how efectively members
work together to achieve objectives. Individual
evaluation should demonstate whether each
Director continues to contribute efectively.
• Board evaluation on pages 167 to 169
• Individual Director evaluation on page 169
• Board Committee evaluations:
– Nomination & Governance Committee on page 158
– Audit Committee on page 171
– Risk Committee on page 178
– Remuneation Committee on page 183
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Nomination and Governance Committee
“ We also continue to
take what we do well
and what we learn
to new markets and
new products, both in
the UK and abroad.”
Annette Cout
Chair of the Nomination
and Governance Committee
Committee members
Focus area Attendance
Annette Cout (Chair) 9/9
Jean Park* 7/9
Justine Robets 9/9
William (Bill) Robets 9/9
(*Jean retired from the Board and all of her committee memberships on 20 Januay 2023)
Dear Shareholder,
This pat of the repot highlights the role that the Nomination
and Governance Committee plays in monitoring the current and
evolving Board’s composition, ensuring that there is a balance of
skill, experience and knowledge, as well as diversity in the broadest
sense, and oversight of the Group’s governance arangements.
The Committee also looked at ensuring that the Group’s policy
on diversity and inclusion, was being applied to the gender and
ethnicity balance of the Group’s senior management and their
direct repots and that this was being taken into account for
succession planning.
The annual review of the Committee’s own efectiveness took
place towards the end of 2022 by an external company Bvalco Ltd,
and the Committee concluded, oveall, that it remained efective
but noted some areas for improvement in 2023. These are outlined
later within this repot.
In line with the requirements of Solvency II, the Senior Insuance
Manager Regime, and in accordance with the Group’s Senior
Managers & Cetiication Regime Policy, I have also carried
out the process of assessment for the Group CEO, Group Non-
Executive Directors, and the Chairs of the Group’s material,
regulated subsidiaries (EUI Limited, Admial Insuance Company
Limited and Admial Insuance (Gibaltar) Limited, Able Insuance
Sevices Limited, Elephant Insuance Company and AECS) to
ensure they meet the requirements in terms of qualiications,
capability, honesty and integrity for 2022.
Annette Cout
Chair of the Nomination and Governance Committee
7 March 2023
9
meetings
in 2022
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How the Committee opeates
Membership
Membership of the Committee at the year-end was Annette Cout
(Chair), Jean Park and Justine Robets and Bill Robets. Bill Robets
was appointed a member of the Committee from 1 Januay
2022. Justine Robets, Jean Park and Bill Robets are independent
Non-Executive members of the Committee, in accordance with
the Code which requires that the majority of members should be
independent Non-Executive Directors. Jean Park took a tempoay
medical leave of absence which was efective from Februay 2022.
Jean returned to Board duties in early August 2022 including as a
member of the Committee.
Attendance at meetings
The Company Secretay acts as Secretay to the Committee.
Other individuals, such as the Chief Executive Oicer, the Group
Head of People Experience and representatives of diferent pats
of the Group, may be invited to attend all or pat of any meeting,
as and when appropriate.
Meetings held
The Committee meets at least twice per year and at such other
times as the Chair may require. In 2022, there were six scheduled
meetings, but the Committee met formally on nine occasions,
as well as informally on seveal other occasions to meet with
individuals identiied as possible Chair and other candidates to
join the Board. The Committee Chair played no pat in the Chair
recruitment or inteview process, this was led by the interim Senior
Independent Director. The Committee Chair agrees the meetings
and agendas for each meeting, which are linked to an agenda
planner covering the responsibilities of the Committee.
Four Committee meetings in 2022 were held in-person and
ive were held remotely. Details of member attendance at the
Committee meetings held during the year are outlined on
page 138.
How the Committee keeps up to date
The Committee is kept up to date regularly on proposed
appointments and governance changes across the Group, as well
as key developments in the corpoate governance landscape.
The Terms of Reference of the Committee include all the
relevant matters under the Code and are reviewed annually by
the Committee.
Role and responsibilities of the Committee and key
activities in 2022
The Committee reviews the leadership and succession needs of
the Board and ensures appropriate procedures are in place for
nominating, taining and evaluating Directors. A description of its
responsibilities and the activity it has focused on during the year
is outlined under the following headings.
Appointments during 2022
Appointments to the Board are the responsibility of the Board
as a whole, acting on the advice and recommendations of the
Nomination and Governance Committee. The Nomination
and Governance Committee seeks to balance the retirement
and recruitment of Non-Executive Directors ahead of their
replacement so as to avoid a dislocation of Board process by losing
experience and skills. The Board is mindful of the need to promote
diversity in appointments to the Group Board and across the
rest of the Group. Appointments are made on merit and against
objective criteria, having due regard to the beneits of diversity,
with a view to ensuring the Board has the appropriate mix of
personality, skills, and experience.
The policy on Board appointments involves the Committee
developing an appropriate speciication that identiies
the required skills and experience for the role and, in most
instances, engaging external recruitment consultants, to lead the
recruitment process and identify suitable candidates. Inteviews of
the shotlisted candidates are held with the Chair and members
of the Committee. After consideation by the Committee, a
recommendation is made to the Board to appoint the preferred
candidate. The Committee is satisied that this constitutes a
formal, rigorous and tansparent process for the appointment of
new Directors to the Group Board and its subsidiaries, embacing
a full evaluation of the skills, knowledge and experience required
of Directors.
As a result of Annette stepping down as Chair at the AGM in
April 2023, the Board needed to identify, select and appoint
a new Chair. Justine Robets, as interim Senior Interim
Director (“SID”) following Jean Park’s medical leave of
absence, led the Chair succession process on behalf of the
Committee. The Committee was responsible for nominating
and recommending a candidate for consideation and
approval in principle by the Board, subject to regulatoy
approval, and to contactual terms being agreed between
the candidate and Admial.
Heidrick & Struggles (H&S), an external search irm, was retained
to suppot the search and Chair selection process. In May and
June 2022, H&S engaged with the Chair, the Board, the senior
management team and the co-founders of Admial to seek
input on the role requirement and proile. These meetings
were conducted in person and vitually and, on the basis of the
conversations that took place, a role speciication was dafted,
circulated, debated and approved. Key elements of the brief
included: experience of retail inancial sevices (a background
gained in geneal insuance was viewed as helpful but not
essential); senior executive leadership experience, ideally in a listed
company; prior experience as a non-executive director, prefeably
as a Chair, SID or committee chair.
H&S conducted a comprehensive market wide search and
identiied 40 potential candidates who were felt to have a
potential good it with the role speciication and with Admial
in geneal. Working with the Committee, H&S prioritised 25
candidates to approach. Following this process, H&S inteviewed
eight individual candidates, in July and August 2022. Of these,
six candidates were recommended by H&S to meet with members
of the Committee and preliminay meetings took place in
September 2022 with member of the Committee and other
senior management including in-person meetings with the CEO.
H&S dafted detailed candidate repots for each of the candidates
presented which included an assessment of skills against the
agreed role speciication. Three candidates were invited to make
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inal presentations to the full Admial Board in November 2022.
In paallel H&S obtained full external references in respect of the
external candidates.
The Board met on 30 November 2022 following the presentations
specially to discuss the presentations and to debate the relative
merits of each of the inal three candidates and to review the
references provided. The Committee futher met on 8 December
where Mike Rogers emerged as the preferred candidate.
The recommendation of Mike to be appointed as Chair of the
Board was based on Mike’s wide business, insuance and inancial
sevices knowledge and on him being someone who would make a
strong stategic impact on the future of Admial. Mike has over 30
years of international inancial sevices experience and was Group
Chief Executive Oice of insurer LV= from 2006 until 2016 and
oversaw its tansformation into a signiicant player in the geneal
insuance and life and pensions markets. Prior to that, Mike worked
at Barclays Bank for 20 years and held a number of senior roles
including Managing Director of UK Retail Banking and Managing
Director of Small Business Banking. On top of this, Mike has 10
years of chair and other non-executive director experience from a
number of other high-proile organisations. Mike was previously
a non-executive director of the Association of British Insurers.
The Board’s preliminay decision on 8 December 2022 was to
accept the Committee’s recommendation to appoint Mike
Rogers as Chair of the Board subject to regulatoy approval and to
agreement of contactual terms with Admial. The Board inally
approved and announced Mike’s appointment on 31 Januay 2023
and Mike will join the Board as a non-executive Director and Chair
with efect from the conclusion of this year’s AGM on 27 April
subject to regulatoy and shareholder approval.
Mike is currently also Chair of Experian plc, the global information
sevices company, and Aegon UK, a pensions, investments and
insuance provider. He is also an Independent Non-Executive
Director at NatWest Group plc, Chair of its Group Sustainable
Banking Committee and member of its Group Peformance and
Remuneation Committee. Natwest Group plc has announced
that Mike will be stepping down as an Independent Non-Executive
Director on 25 April 2023. Futher, Aegon UK had conirmed that
Mike will be stepping down as Chair and Non-Executive Director
of its Board at the end of September 2023. Mike will continue as
Chair of Experian alongside his role as Chair of Admial Group.
Induction
Upon appointment, Non-Executive Directors embark on a
comprehensive induction progamme, comprising common
elements for all Non-Executive Directors, as well as elements
tailored to the individual depending on their role, skills,
knowledge and experience. The induction covers topics such as
the role of a Non-Executive Director and their responsibilities,
the workings of the Board and the Group’s Subsidiay Boards,
and the Company’s opeations. Non-Executive Directors are
provided with a suite of background reading before induction
sessions are aranged with individuals from each of the
Group businesses, again, depending on the induction needs.
Ongoing professional development needs of newly appointed
Non-Executive Directors are then monitored via annual individual
Director evaluations and the Committee’s oversight of the
Non-Executive Director skills matrix.
Other Board Committee changes and term extensions
in 2022
The Board, on the recommendation of the Nomination and
Governance Committee, agreed to the following proposals
during the year:
• Bill Robets was appointed as a member of Nomination and
Governance Committee on 21 Januay 2022
• Due to Jean Park’s tempoay medical leave of absence which
was efective from 22 Februay 2022, the following interim
appointments were agreed:
– The appointment of Justine Robets as Interim SID efective
from 22 Februay 2022
– The appointment of Andy Crossley as Interim Risk Committee
Chair Director efective from 22 Februay 2022
– The appointment of JP Rangaswami as an Interim member
of the Remuneation Committee
“ Diversity and the
variety of perspectives
that it brings has been
proven in studies to
increase innovation and
creativity, and, as a result,
improves performance.”
Annette Cout
Chair of the Nomination
and Governance Committee
Nomination and Governance Committee
continued
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Admial Group plc Annual Repot and Accounts 2022
• The appointment of Karen Green as a permanent member of
the Risk Committee which was efective from 1 June 2022
• Jean Park retired from the Board including all of her committee
memberships on 20 Januay 2023
• The appointment of Justine Robets as permanent SID which
was efective from 31 Januay 2023
• The appointment of Justine Robets as a permanent member
of the Remuneation Committee which was efective from
31 Januay 2023
Due to Jean Park’s tempoay leave of absence which was efective
from Februay 2022 the Committee considered candidates
from a Non-Executive Director tenure perspective, the qualities
required to successfully peform the role of the SID, as well as
the SID responsibilities, paticularly in light of the fact that the
SID would need to lead the Board on the appointment of a new
Group Board Chair during 2022. Subsequently, the Board, upon the
recommendation of the Committee, approved that Justine Robets
be appointed as the Interim SID and Andy Crossley be appointed
as the Interim Group Risk Committee Chair with efect from
Februay 2022. The SID appointment was made on the basis that,
Justine had a strong sense of Admial’s culture which would be
helpful during the Board Chair succession process. The Group Risk
Chair appointment was made on the basis that Andy, who has
been a member of the Group Risk Committee since 2020,
had extensive experience in insuance risk and inance.
Jean returned to Board duties in early August 2022 including
as a member of the Committee, the Group Risk Committee
and the Remuneation Committee. Jean retired from the Board
including all of her committee memberships on 20 Januay
2023. Subsequently, the Board, upon recommendation of the
Committee, approved that Justine Robets be appointed as SID on
a permanent basis with efect from 31 Januay 2023. In addition to
Justine’s above stated strong sense of Admial’s culture, the Board
agreed with the Committee that Justine had successfully run a
thorough and robust Chair succession process during 2022 and is
therefore highly qualiied for the role of SID. Futher, Justine has
signiicant people and remuneation experience as a result of her
role as CEO and founder of Mumsnet since 2000 and is therefore a
strong candidate to join the Remuneation Committee.
Annual re-election
As set out in the Group’s Aticles of Association, all Directors
should retire and ofer themselves for re-election at each AGM,
in accordance with the UK Corpoate Governance Code and the
Company’s current pactice. Therefore, all Directors apat from the
Chair Annette Cout will be submitting themselves for election or
re-election by shareholders at the fothcoming AGM.
The Board is satisied that all are properly qualiied for their
election or re-election by vitue of their skills and experience and
their contribution to the Board and its Committees. Futher details
of why each Director’s contribution is, and continues to be,
impotant to the Company’s long-term sustainable success is
provided within the notes to the Notice of the 2023 Annual
Geneal Meeting.
Board composition
& succession planning
Non-Executive tenure
& independence
Balance of skills,
knowledge and
experience
Annual Board
evaluation & individual
Director appaisals
Time commitment
and external
appointments
Board diversity
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Composition
As at 31 December 2022, the Board comprised eleven Directors:
the Chair (who was independent on appointment), two Executive
Directors, and eight independent Non-Executive Directors.
The Committee carefully considers the independence,
composition and balance of skills and knowledge of the Board.
As a result, the Group continues to monitor the need to refresh
Board and Committee membership in an orderly manner so as
to maintain the continuity of Board process and the strength
of personal inteaction which underlies the efectiveness of
the Board.
Non-Executive Director tenure and independence
The gaph below details the length of sevice of the Chair and each
of the current Non-Executive Directors, illustates the balance of
experience and fresh perspectives, as well as the independence of
each of the Non-Executive Directors.
Independent Non-Executive Directors are currently appointed for
ixed periods of three years, subject to election by shareholders.
The initial three-year period may be extended for two futher
three-year periods subject to re-election by shareholders.
Their letters of appointment may be inspected at the Company’s
registered oice or can be obtained on request from the
Company Secretay.
Jean Park and Justine Robets both undetook the SID role for
the year (and Justine Robets undetaking the role on an interim
basis from Februay 2022 to Januay 2023 while Jean took a
period of medical leave of absence). The Board was satisied
that Jean had the requisite knowledge and experience gained
through her Board positions. Jean Park as Chair of the Risk
Committee, her membership of the Nomination and Governance
Committee and her prior experience as SID for FTSE 250 company,
Muray Income Trust. As stated above, the Board was satisied
that Justine Robets had the requisite knowledge and experience
to undetake the role of SID on an interim basis while Jean was
on (and returned from) medical leave and approved Justine’s
succession in the permanent SID role following Jean’s retirement
in Januay 2023.
The Board, having given thorough consideation to the matter,
considers the eight Non-Executive Directors to be independent
and is not aware of any relationships or circumstances, other than
the above, which are likely to afect, or could appear to afect,
the judgement of any of them.
An explanation for the Group Board Chair’s extended term beyond
the nine years recommended by the Code are provided
on page 136.
Board tenure
“ The Directors have a broad
range of skills and experience
and can bring independent
judgement to bear on issues
of strategy, performance, risk
management, resources and
standards of conduct which
are integral to the success
of the Group.”
>9 years
6-9 years
Annette Court
Jean Park
Justine Roberts
Andy Crossley
Mike Brierley
Karen Green
JP Rangaswarmi
Evelyn Bourke
Bill Roberts
3-6 years
<3 years
10y 9m
8y 11m
6y 6m
4y 10m
4y 3m
4y 0m
2y 8m
1y 8m
1y 6m
* In accordance with the Code
** Provision 19 of the Code relating to the tenure of the Chair
was not complied with during the year. An explanation of
non-compliance is located on page 136
Nomination and Governance Committee
continued
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Balance of skills, knowledge and experience
The Committee regularly reviews the Board skills matrix,
paticularly in the context of succession planning and skills that
are potentially lost at the end of a Director’s tenure on the Board.
The current matrix is outlined below and an explanation regarding
how it feeds into succession planning follows later in this repot.
The Directors have a broad ange of skills and experience and
can bring independent judgement to bear on issues of stategy,
peformance, risk management, resources and standards of
conduct which are integal to the success of the Group.
Time commitment and external appointments
As well as considering the demands of a Director’s time upon
appointment, any subsequent external appointments of Non-
Executive Directors and Executive Directors require prior approval
of the Committee and the Board.
The Committee also reviews the time commitment required of
Non-Executive Directors at least annually to consider whether
the guidance on time commitment of cetain roles needs to be
extended due to market or responsibility changes. Alongside this,
a review of the external commitments of Non-Executive
Directors is peformed. The most recent review concluded that
the independent Non-Executive Directors have suicient time
available to peform their duties.
Oveall assessment of composition
The Board remains satisied that it has the appropriate balance
of skills, experience, independence and knowledge of the Group
to enable it and its Committees to discharge their duties and
responsibilities efectively, as required by the Code. In addition,
the Directors are aware of their legal duties to act in a way they
consider, in good faith, will be most likely to promote the success
of the Company for its shareholders, as well as considering the
interests of other stakeholders. Futher details of how the Board
fulils its duty in this regard are outlined on pages 74 to 94.
Board and senior management diversity and inclusion
The Listing Rules and Disclosure Guidance and Tansparency Rules
have been amended to include new disclosure requirements for
listed companies for inancial years stating on or after 1 April
2022. The FCA is, however, encouaging voluntay compliance
for those companies with inancial years beginning on or after
1 Januay 2022. The board diversity targets (which are substantially
in-line with the targets set by the FTSE Women Leader’s Review
and the Parker Review) are: at least 40% of the board are women;
at least one of the senior board positions (Chair, SID, CEO and CFO)
is held by a woman; and at least one member of the board is from
a minority ethnic background. As set out below, the Committee is
content that Admial meets the targets set out in the Listing Rules
and Disclosure Guidance and Tansparency Rules 9.8.6(9)(a).
11 Finance
10 Risk
8 Insurance
11 Executive/Strategic Leadership
5 Marketing/Retail
8 M&A
10 City
8 International
8 Tech/Digital/Data
8 Operations
6 Entrepreneurial
3 Loans
7 Small / Medium Enterprise
11 Remuneration/People
7 ESG/Sustainability
Total Board Director skills
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Gender diversity
Diversity and the variety of perspectives that it brings has been
proven in studies to increase innovation and creativity, and, as a
result, improves peformance. It also has other positive impacts,
such as providing greater awareness, widens the talent pool and
challenges the views or pactices that have become embedded
over time. Admial’s stategy depends on all of these things,
which are enhanced by diversity, and suppots our goals.
Total Board Director skills
During the year, the Committee reviewed the Group Board
Diversity and Inclusion Policy and discussed the appropriateness
of the measuable targets to increase diversity and inclusion at
Group Board, Subsidiay Board and senior management level.
The Committee seeks to ensure that a clear recruitment stategy
for Board appointments is in place and is aligned to this policy.
Measures that are covered under the Policy, including progress
updates against each, include:
(i) Having one member of the senior executive team who is
responsible and accountable for gender diversity and inclusion
at Group level. Cristina Nestares (EUI CEO) is the accountable
executive for gender diversity.
(ii) Setting internal targets for gender diversity in senior
management. Progress against the Group’s target of 40% of
women in senior management by 2023 is detailed below.
(iii) Publishing progress annually against these targets in repots
on the Group’s website. Progress updates on the Group’s
progress against the HM Treasuy’s Women in Finance Chater
commitments are provided on an annual basis on the Group’s
corpoate website.
(iv) Linking the pay of the CEO to the progress made against these
internal targets on gender diversity. In 2021, the Remuneation
Committee considered and approved a proposal to link
the progress against the Women in Finance target within
the non-inancial peformance measures of the EUI CEO,
Cristina Nestares. Futher information on this is contained
within the Remuneation Committee Repot on page 183.
The Group has continued to exceed the target set by both
Lord Davies in his repot: Women on Boards, and the Hampton
Alexander Review (that builds on the Davies Review) which
encouaged FTSE 350 companies to achieve at least 33% women
on Boards. Women on the Admial Group Plc Board represented
55% of its 11 director membership as at 31 December 2022,
compared with 50% on 31 December 2021. Futher, Admial is only
one of 5 FTSE100 companies where each of the board positions
of Chair, SID and CEO are held by women. Oicial data published
by the FTSE Women Leaders (succeeding the Women on Boards
Repot and Hampton Alexander Review) issued in Februay 2023
repoted that the percentage of women on FTSE 100 Boards was
40.2% improving from 39.1% in 2022, which demonstates the
good progress Admial has made compared with the aveage
of the FTSE 100. The data also highlights that the combination
of women in the Chair, CEO and SID roles is still not common,
demonstating Admial’s continued strong suppot of the
progression of women in leadership roles.
5 Men
6 Women
10 White British
or other White
(including minority
white groups) 1 Asian/Asian British
40s 18.2%
50s 27.2%
60s 45.5%
70s 9.1%
>9 years
6–9 years
3–6 years
<3 years
Board gender diversity
Board Ethnicity
Age diversity (by backet)
Non-Executive Director tenure
Nomination and Governance Committee
continued
8 British 3 Non-British
Board Nationality
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As a result of the continued progress to balance gender diversity
at Group Board level and to align with the Women in Finance
Chater’s aim of increasing female representation at the UK
senior executive level to 40% by the end of 2023, the Committee
approved a proposal to increase the annual target from a minimum
of 33% women to 40%. The aim is to achieve this level of gender
diversity at an aggregate level across the Subsidiay Boards too.
As at 31 December 2022, women represented 38% of all of the
Subsidiay Boards compared to 29% as at 31 December 2021,
while improvements have been made in 2022 there is futher
work to improve gender diversity at this level.
During the year, the Committee reviewed the gender balance
of those in senior management and their direct repots and
considered the initiatives that have been proposed to focus on
improving gender balance. The FTSE Women Leaders (formerly
Hampton-Alexander Review) target of 33% female representation
within senior management has been achieved across the Group,
with females representing 44% of our Senior Executives and 35%
of their direct repots.
Ethnic diversity
The Board continues to monitor the requirements of the
Parker Review’s repot on ethnic diversity in the context of the
composition of its Group and Subsidiay Boards, the initiatives
that are being implemented to increase diversity and discuss
how measures to develop a diverse pipeline of talent as regards
to Board appointments could be developed and monitored.
The Group Board includes one Board member from an
ethnic minority, which meets one of the Parker Review’s key
recommendations for FTSE 100 companies as well as Listing
Rules and Disclosure Guidance and Tansparency Rule 9.8.6(9)(a).
Futher information on how the Group is developing candidates for
the pipeline is outlined in the sections below and in the Stategic
Repot on pages 77 to 79.
The Group remains strongly suppotive of the principle of
boardroom diversity, of which gender and ethnicity are impotant,
but not the only, aspects. What is impotant is diversity of thought,
experience and approach and each new appointment must
complement what already exists at the Board table.
Ethnic diversity amongst senior management and the wider
workforce is something that Admial has increased its focus on
in 2022. However, the Committee recognises that the workforce
is not always comfotable with voluntarily sharing such personal
information. There have been initiatives to encouage more
people to make such voluntay disclosures, in respect of other
diversity questions, and this has been discussed by the Employee
Consultation Group during the year.
Activity to improve diversity in the talent pipeline
UK
• Admial appointed Senior Management Sponsors for all diversity
and inclusion working groups.
• Admial achieved 45% female representation at executive level,
in line with its commitment to the Women in Finance pledge.
• Admial was placed 3rd in the UK’s Best Workplaces for Women
award in 2022.
• Admial’s recruitment stategy aims at increasing candidates
from an ethnic background and women onto shotlists for
leadership roles
• Strengthening our patnerships aimed at increasing female
representation, we have joined with Women in Data,
a movement and force for change in the realm of data
science and analytics
• Admial has continued our patnership with
PricewaterhouseCoopers’ #TechSheCan, aimed at developing
internship and work experience progammes
• Admial has paired with Code First Girls (“CFG”), in respect
of which our funding will enable 495 places on an 8-week
progamme to learn the fundamentals of coding and web
development. In addition, we will also pay the fees for 40
paticipants to complete a nanodegree, which is the equivalent
of a Data Science degree. The degree takes 14 weeks to
complete, and on completion of the progamme, CFG will
work with their network of employers across UK (e.g KFC,
BlackRock, Natwest etc.) to seek to secure employment
for gaduates
• Admial has achieved Disability Conident Leader status
• Admial has signed seveal pledges such as the Menopause
Pledge, Endometriosis Friendly Employer, Neurodiversity
Friendly Employer and continued our commitment to the
Race at Work Chater by signing up to their extended initiatives
• Admial was the headline sponsors of Pride Cymru for the
22nd consecutive year
• Admial achieved Top 75 employers with the Social
Mobility Foundation
Group
• Admial launched its Get Discovered progamme aimed at
developing talented women within Admial to become the
leaders of tomorrow
• Admial has planned to launch a “reverse mentoring” scheme.
We will ask people to apply for this, then we will tain them as
mentors. The successful applicants and all paticipating senior
top executives will beneit from this new scheme
• Admial will launch two “Employee Resource Groups”, one
focused on gender and one on ethnicity, to create a strong
group network of people, selected from our staf, with the aim
of designing and delivering internal initiatives to ofer equal
oppotunities to our underrepresented groups of people
• Admial will launch a progam designed to develop employees
from an ethnic background, in patnership with McKinsey.
We are designing a talent and development progam to
nuture talent across Admial, focusing on inding talented
employees from an ethnic background at diferent levels into
leadership roles
• Admial has designed Group D&I employer banding in
order to increase our external reputation as diversity
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leader in the market and attact new diverse talent in the
recruitment pipeline
• Admial is ofering taining to all of our D&I sponsors and
human resources managers on how to better work together
as a team to deliver meaningful D&I outcomes. The Board
and senior management recognise that longer-term remote
working brought about by the Covid pandemic could make it
more diicult to identify discrimination and suppot those that
may be impacted. Admial is committed to adapt to the new
environment and ensure that it provides an equal workplace
for all our people.
The Group remains committed to providing equal oppotunities,
eliminating discrimination, and encouaging diversity amongst
its employees both in the UK and overseas. A breakdown of
the gender of Directors and senior employees at the end of
the inancial year together with details of the Group’s Equality,
Diversity and Dignity at Work Policy are set out in the Stategic
Repot on pages 113 and 127.
Succession planning
The Committee is responsible for ensuring that plans are in place
for orderly succession for appointments to the Board and also
reviews the succession plans for Executive Directors and other
key senior management positions.
Non-Executive Directors
Non-Executive Director succession planning is split into shot,
medium and longer term horizons to ensure that all eventualities,
as far as possible, are planned for.
Horizon: Emergency cover
Description: There are emergency succession plans to ensure
that there is suicient cover or a plan in place for key roles of the
Board, namely, the Chair, the SID, Committee Chairs and, in turn,
Committee members if a Committee Chair’s absence is longer
than expected. These plans take account of any requirements
under the respective Committee’s Terms of Reference, as well
as any Code requirements.
Horizon: Medium term (3–6 year tenure)
Description: The Committee’s medium-term succession
planning involves considering the replacement of Non-Executive
Directors over time to refresh the Board. The Committee
considers (i) each Director’s period of tenure and aims to have
staggered depature dates, (ii) the skills and experience gaps
that will be created as each Director’s tenure comes to an end,
and (iii) the diversity gaps that might also become present.
Horizon: Longer term (6–9 year tenure)
Description: The Committee’s longer-term succession planning
involves the consideation of the skills, experience, and diversity
that the Board will need over the longer term, taking into
account the Group’s stategy and the main trends and factors
that are likely to afect the Group’s long-term success.
The regular review of these succession plans provides an
oppotunity for the Committee to discuss the insights
provided by the data in order to inform the desired mix of skills,
experience and diversity that the Board needs now and in the
future, in the context of the Group’s stategic objectives.
The Committee will this year be stating a search for new Non-
Executive Directors with the appropriate skills and experience to
succeed the Chair and the Group Risk Committee Chair. In doing
so, the Committee will consider the skills, experience and diversity
gaps that could materialise with the depature of the present
Chair and Group Risk Committee Chair.
Executive Directors and senior management
Responsibility for making senior management appointments
rests with the Chief Executive Oicer and talent management
continues to be a key area of focus for the Committee to ensure
that there is a diverse pipeline of talent for senior management
and potentially Executive Director succession.
During the year, the Committee considered progress to improve
talent management and succession planning within the Group.
This was in response to the review in 2020 which identiied seveal
improvements that needed to be made to Admial’s succession
planning to improve the talent pipeline. Efective internal talent
management ensures that Admial’s unique culture is preseved
as far as possible.
The Committee received an update in 2022 on the new succession
famework which is now used across the Group. It has encouaged
more structured thinking about oppotunities across depatments
and internationally, even in circumstances where this is a well
embedded pactice already within Admial. Discussions on success
proiles have also helped to visualise how success will look in
the future for the critical senior management roles, whilst also
providing future talent with visibility on what future development
might look like for them. Other pats of the oveall succession
planning process continue to be embedded with the introduction
of better:
• Scoping and anticipating future critical capabilities
• Success proiling
• Identiication of career aspiations
• Assessment
• Development plans (noting that some Group entities are more
matured than others)
• Collective analytics
Nomination and Governance Committee
continued
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Board Evaluation
Progress with 2021 Board Evaluation recommendations
Having last carried out an external Board evaluation in 2019
in accordance with the Code requirement that FTSE 350
companies should cary out an externally facilitated evaluation
of the Board at least evey three years, the 2021 Board evaluation
process was again facilitated internally with use of a questionnaire
developed by Independent Audit, who has no other connection
with the Group or its Directors. The results of the evaluation
were discussed at the Januay 2022 Board and showed a Board
that appeared to be functioning well with some identiied
oppotunities for improvement. The recommendations from the
Board evaluation fed into the Board’s agreed objectives for 2022
and were detailed in the 2021 annual repot as “principal areas
of focus for the Board in 2022”. At the June 2022 Board, the Board
received a six-month update on progress against agreed areas for
focus as set out in the evaluation repot and as against the agreed
2022 Board Objectives.
Oveall, this year’s review of succession planning concluded that
there was a healthy pipeline of talent across the Group, with no
immediate risk in respect of leadership continuity, and the right
level of talent to execute our ‘internally grown leaders’ stategy.
However, it also concluded that some critical functions in the UK
fell shot on gender diversity, as well as some international entities,
such as Spain. This gap represents a risk to the achievement of
our commitment and ambition on gender diversity at senior
management level and so this will be closely monitored by the
Committee in 2023. In addition, futher work will be undetaken
to improve the ethnic diversity of entities located in geogaphies
where such diversity should be better represented, which will also
be overseen by the Committee in 2023.
The Committee remains satisied that efective succession
plans for Directors and senior management are in place to ensure
the continued ability of the Group to implement stategy and
compete efectively in the markets in which it opeates.
Governance
The Committee also regularly reviews the Group’s governance
arangements, including any changes to the Subsidiay or
Committee structure, as well as oversight of the regulatoy
applications made under the Senior Managers Regime.
Committee Efectiveness Review
The 2022 Committee’s annual review was conducted by an
external company Bvalco Limited. Each Committee member
was inteviewed and asked a set of questions designed to
provide objective assessment of the Committee’s peformance,
including its efectiveness in monitoring Board composition,
considering Executive and Non-Executive succession,
overseeing talent management, succession planning and
developing directors’ knowledge.
The Committee discussed the results of the review at its meeting
in Januay 2023 and concluded that, oveall, the Committee
remained efective. Areas of focus and improvement for the
Committee in 2023 were identiied and in paticular, the pat of
the nomination committees work on succession, the Committee
should in future canvas the executives on their views of the skills
and expetise that would be helpful to strengthen the Board.
2020
Internal Board Evaluation
2019
External Board Evaluation
2021
Internal Board Evaluation
2022
External Board Evaluation
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The following progress was made during 2022 in respect of the key indings from the 2021 review:
Agreed areas of focus for 2022 Progress update
Ensure that there is a robust selection
process for the new Group Board Chair,
Group Risk Committee Chair and SID
Refer to page 159 of this section and Principal Decisions on page 148.
Continuing focus on executive team
succession planning
During the year, the Board approved the appointment of Keith Davies as Admial’s
new Chief Risk Oicer following a robust recruitment process. The Board and the
Committee received Group Succession Planning and Talent Development updates
throughout 2022.
Ensure diversity and inclusion objectives
are embedded
During the year, the Board received a diversity update highlighting the Group’s
ambition to have 40% of women in senior positions by 2025 at Group level and
representation of ethnic minorities at senior levels consistent with representation
of the whole workforce. The Board has been updated on Admial’s submissions in
respect of the FTSE Women Leaders and the Parker Review.
Suppot the continuous development
of Admial’s core competencies
The Board agreed an objective for 2022 to “Defend and suppot continuous
development of Admial historical advantages” in paticular relating to culture,
technical/undewriting leadership and cost eiciency. The Board received regular
updates conirming that each of these areas had received substantial attention and
made good progress.
Assess market implementation of the
FCA’s market study on geneal insuance
pricing and ensure Admial delivers
a strong response
Refer to Principal Decisions.
Ensure customers continue to be at
the front and centre of new propositions
and incremental change
The Board has been updated on customer related issues at each Board in 2022 from
the perspective of all Group entities and businesses. “The Customer, the Customer,
the Customer” remains a core pat of Admial’s philosophy and Board updates
throughout the year relect this.
Oversee the Group’s diversiication stategy Refer to Principal Decisions.
Monitor the development and execution
of Admial’s sustainability approach and
the delivey against key pledges
During the year, the Board has increased the number of updates and sessions held
on ESG matters, receiving updates on the embedding of the new Group Purpose
(approved at the beginning of 2021), the Group’s sustainability stategy, response to
climate change, stakeholder engagement, progress to meet diversity and inclusion
targets, and the responsible investment stategy, amongst other things.
The October Board update on sustainability provided the Board with detailed
analysis on the 2022 progress against Admial’s stated nine sustainability targets.
The Board noted that good progress had been made.
Continue to deepen the Board’s
understanding of external risk factors
During the year, the Board also increased the updates and sessions received on
information security and cyber risk, BEIS Reforms, IFRS17, geneal technology
updates and received an update on the Admial cyber risk event playbook. In
October 2022, the Board undetook a cyber crisis simulation session facilitated by
an expet, external supplier. The lessons learned from the cyber crisis simulation
helped management to reine the cyber risk event playbook.
Provide steering and oversight for capital
management, reinsuance and the internal
model application process
During the year, the Board received regular updates and taining sessions relating
to the Admial internal model process. Good progress was made during the year
noting that the application process will continue to be progressed and reined
in 2023.
Oversee the roll-out and evolution of
the Group reward stategy
The Board was regularly updated on progress against the Group Reward Stategy.
The Board was futher updated on the Group’s plans to improve reward and in
respect of the Group’s plans to help staf though the “cost of living crisis”. Refer to
Principal Decisions.
Nomination and Governance Committee
continued
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2022 Board Evaluation
Having last carried out an external Board evaluation in 2019 in
accordance with the Code requirement that FTSE 350 companies
should cary out an externally facilitated evaluation of the Board
at least evey three years, the 2022 Board evaluation process was
facilitated externally by Bvalco Ltd, which has no other connection
with the Group or its Directors. Each Board member and standing
attendee was inteviewed and asked a set of questions to evaluate
the Board’s peformance and dynamics in 2022. The themes and
questions considered by all Board members and regular Board
attendees in November 2022 were:
• Strengths and Value
• Purpose and Stategy
• Board Dynamics and Culture
• Risk
• Succession and composition/skills
• Peformance and development
• Frequency of meetings, Board information and agendas
• Commitments outside of the Boardroom
• The Chair
• The new Chair
• The CEO
• What do you value about your fellow Board directors
• Committee Chairs
• Impact and Value
• Three most impotant areas for next 12 – 18 months
The results of the evaluation were discussed at the Januay
2023 Board meeting and showed a Board and Committees
that appeared to be functioning well, with some identiied
oppotunities for improvement. Bvalco’s oveall impression is that
this is a strong Board and one that is relective and suppotive
of the Admial culture. The majority of those inteviewed felt
it was an open, inclusive and paticipative Board committed
to the success of Admial. It is also a Board with good humour.
Eveything that Bvalco obseved and heard during their review
demonstated a commitment to the success of Admial and the
wellbeing of its staf. There were key areas where Bvalco made
recommendations to the Board and Committees in order to
continuously and progressively improve how it works. There is a
summay table of recommendations set out below. In making
the recommendations, Bvalco wished to re-emphasise their
oveall conclusion that the Admial Board is a strong board, and
the recommendations set out in the repot are made against this
background. The recommendations set out below have fed into
the Board’s agreed objectives for 2023 and are detailed under the
“principal areas of focus for the Board in 2023” on page 139.
2022 Board Committee Efectiveness Reviews
Futher information on each of the Board Committee’s
evaluations conducted externally by Bvalco Limited of their own
peformance can be found within the respective other Board
Committee repots.
Individual Director Evaluation
The peformance of the Chief Financial Oicer is appaised
annually by the Chief Executive Oicer, to whom he repots.
The Chair, taking into account the views of the other Directors,
reviews the peformance of the Chief Executive Oicer. The Chair
also carries out the peformance assessments of each of the Non-
Executive Directors. Each of the Directors were determined to
have continued to efectively contribute to the work of the Board
in 2022.
The peformance of the Chair is reviewed by the Board led by
the SID. Following the latest review, the SID considered and
discussed with the Chair the comments and feedback that had
been received from the Directors as pat of the Chair’s evaluation
questionnaire and was able to conirm that the peformance of
the Chair continues to be efective. In addition, Bvalco Limited
repoted that all those inteviewed as pat of the external
evaluation were unanimous in their paise for Annette. Bvalco was
positive in their assessment of all aspects of how Annette chairs
the Board. Bvalco concluded that “this is a well Chaired Board.”
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Outcomes and areas of focus for 2023
Decision making fameworks The Board and management to review the oveall famework that the Board uses
to make key decisions. At the same time, management will review how information
is presented to the Board in a way which assists and feeds into the oveall decision-
making famework.
Review how the balance of Board agenda
time is split between stategy versus
governance/regulatoy matters
The Board should review the balance of time spent at board meetings between
governance/regulatoy matters and stategic/business matters. The Board
suppoted by the Legal and Company Secretarial team to consider if any
governance and regulatoy matters could be delegated to relevant Board
Committees, Board Sub-Committees or Subsidiay Boards.
Stategy development Build on the acknowledged success of stategy days. The Board should discuss
and agree additional conventions for the stategy days to ensure the Board has
suicient early involvement in contributing to the development of proposals.
This should include the addition of formal ‘wash-up’ sessions and ‘action lists’
with agreed milestone dates.
Foward plan of metrics and milestones The Board should discuss and agree with management improved metrics and
milestones to enable the Board to better measure stategy implementation..
Ovearching approach to ESG The Board to consider the value of establishing an ovearching and coordinated
approach to ESG initiatives.
Improving hybrid meetings The Board and Company Secretarial team shall continue to look at ways of
improving hybrid meeting arangements, looking at techniques for mitigating
the risk that remote paticipants are unable to contribute fully to Board and
Committee meetings.
Company Secretay The Company Secretarial team should take steps to remind those presenting papers
to the Board or a Committee that they follow properly the guidelines as to form,
content and paper submission deadlines. This should include proper completion of
the paper’s standardised front sheet, avoiding the unnecessay usage of technical
language and developing conventions for assisting the non-technical reader.
Nomination and Governance Committee
continued
170
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Admial Group plc Annual Repot and Accounts 2022
Audit Committee Repot
“ I am pleased to set
out in this report an
update on the main
activities of the
Committee in 2022.”
Karen Green
Chair of the Audit Committee
Committee members
Focus area Attendance
Karen Green (Chair) 11/11
Andy Crossley 11/11
Mike Brierley 11/11
11
meetings
in 2022
Audit, risk and internal control
Compliance with the Code Principles
UK Code
Principle Description References
Principle
M
The Board should establish formal and tansparent
policies and procedures to ensure the independence
and efectiveness of internal and external audit
functions and satisfy itself on the integrity of inancial
and narative statements.
• Roles and Responsibilities on page 173
• Non-audit fees on page 177
• Efectiveness of external audit process on page 177
• Efectiveness of internal audit on page 174
• Directors’ responsibilities and responsibility statement
in the Directors’ Repot on page 213
• Principal risks and uncetainties within the Stategic
Repot on pages 114 to 121
Principle
N
The Board should present a fair, balanced and
understandable assessment of the company’s
position and prospects.
• Repoting, accountability and audit within the
Directors’ Repot on page 212
Principle
O
The Board should establish procedures to manage
risk, oversee the internal control famework, and
determine the nature and extent of the principal risks
the company is willing to take in order to achieve its
long-term stategic objectives.
• Role of internal audit and associated processes
on page 174
• Principal risks within the Stategic Repot on
pages 114 to 121
• Repoting, accountability and audit within the
Directors’ Repot on page 212
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Admial Group plc Annual Repot and Accounts 2022
Dear Shareholder
I am pleased to set out in this repot an update on the main
activities of the Committee in 2022.
Areas of Focus in the Repoting Period
The Committee considered the economic backdrop facing
the Group and gave paticular consideation to current UK
inlationay pressures and the impact on the key accounting and
actuarial judgements made by management in relation to the
valuation of claims reseves and credit loss provisions, as well as
the potential impact on going concern and viability assumptions.
The Committee also continued to consider the ongoing impact
of the Covid pandemic on the Group’s inancial repoting and
disclosures, along with the continued efectiveness of the Group’s
key internal controls in a hybrid working environment.
Signiicant inancial repoting issues
The setting of insuance claims reseves in accordance with
the Group’s agreed reseving methodology is a key accounting
judgement in the Group’s Financial Statements as set out in Note
3 to the Financial Statements), and the Committee continues to
place consideable focus on this area. The Committee challenged
the key reseving assumptions and judgements, movements,
emerging trends and analysis of uncetainties underlying the
analysis of outstanding claims for the UK Car Insuance business
proposed by management alongside that of the Group’s external
independent actuarial advisers. In 2022, this included the impact
of inlation on the claims reseves as set out in more detail below,
future scenarios for the Ogden discount ate and post-pandemic
trends of claims frequency and severity. It also focused on
management’s assessment of the level of uncetainty inherent
in the claims reseves and the changes in this assessment from
prior periods. The Committee also received repots on the claims
reseving processes peformed for insuance businesses other
than UK Car and recommended to the Board the aggregate
claims reseves for inclusion in the Group’s Financial Statements.
In addition to claims reseving, the Committee spent time
reviewing management’s suppot for a number of other signiicant
inancial repoting matters including the expected credit loss
provision held in relation to the Loans receivable balance held
by the Group’s loans business Admial Money, other potential
provisions and contingent liabilities, and the results of impairment
testing peformed in relation to the Group parent company’s
investments in Group subsidiaries.
IFRS 17 (Insuance Contacts) implementation
Ahead of the 1 Januay 2023 implementation date for IFRS 17
(Insuance Contacts), the Committee placed signiicant focus
during the year on monitoring progress of the Group’s IFRS 17
progamme, reviewing and challenging key judgements and
accounting consideations, the Group’s tansition balance sheet
as at 1 Januay 2022, as well as the inancial statement disclosures
on the impact of the new standard required by IAS 8 (Accounting
Policies, Changes in Accounting Estimates and Errors) and related
accounting disclosures.
Corpoate governance and repoting changes
The Committee was kept abreast of the Group’s engagement
with the Depatment for Business, Energy & Industrial Stategy
(BEIS) consultation on ‘Restoring trust in audit and corpoate
governance: proposals on reforms’ during 2022 including the
Financial Repoting Council’s daft proposal for a minimum
standard for audit committees, and will continue to monitor
developments in this area. The Committee also oversaw,
in conjunction with the Group’s Risk Committee, the Group’s
progress in futher aligning repoting with the Taskforce
for Climate-related Financial Disclosures (TCFD) published
recommendations. The Committee received a brieing from
the Group’s external auditor on TCFD regulation and trends
in the market.
Internal controls
The Committee has continued to review the efectiveness of
the internal control systems across the Group, including areas
of potential weakness highlighted through audit and other
assuance repots.
I hope you ind the above summay, and the more detailed repot,
both useful and informative.
Karen Green
Chair of the Audit Committee
7 March 2023
Audit Committee Repot
continued
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How the Committee opeates
Membership
Membership of the Committee at the end of the year was:
Karen Green (Chair), Andy Crossley and Mike Brierley.
Two of the Committee’s members are Fellows of the Institute
of Chatered Accountants in England and Wales. Given the
insuance and inancial sevices experience of the members
of the Committee, the Board considers that they have a broad
ange of skills, experience and knowledge of the insuance
sector, which represents the principal market in which the
Group opeates, and also the area of consumer lending in which
the Group has a growing business, such that they are able to
efectively analyse, challenge and debate the issues that fall within
the Committee’s remit. The Board is satisied that the Committee
as a whole has competence relevant to the sectors in which
the Group opeates and futher considers that a number of its
members have recent and relevant inancial experience.
Attendance at meetings
The Company Secretay acts as Secretay to the Committee.
The Group Chief Financial Oicer, Group Chief Risk Oicer,
Director of Group Finance & Chief Actuay and Group Head of
Internal Audit routinely attend all Committee meetings (other
than cetain private sessions). Other individuals, such as the
Chair of the Board, Chief Executive Oicer, Head of Compliance,
and representatives of diferent pats of the Group, may be invited
to attend all or pat of any meeting as and when appropriate.
The external auditor was invited to attend all of the Committee’s
meetings held in 2022, except in respect of those agenda items
when its own peformance, reappointment and fees were reviewed
and discussed, or where any other conlict was identiied.
Meetings held
The Committee meets at least six times per year and has an
agenda planner linked to events in the Company’s inancial
calendar and other signiicant issues that arise throughout the
year, which fall for consideation by the Committee under its
remit. The Committee Chair agrees the meetings and agendas
for each meeting.
There were eight scheduled Committee meetings held during
the year (with two of these meetings focused on reseving
matters in conjunction with the half year and full year
repoting). Three additional meetings were held during the
year, primarily focused on the tansition to IFRS 17 and year-end
repoting related matters.
Details of member attendance at the Committee meetings held
during the year are outlined on page 171.
How the Committee keeps up to date
The Committee is kept up to date with changes to Accounting
Standards and relevant developments in inancial repoting,
company law, and the various regulatoy fameworks through
presentations from the Group’s external auditor, Group Chief
Financial Oicer, Group Chief Actuay and Group Company
Secretay. In addition, members attend relevant seminars and
conferences provided by external bodies. The Committee also
receives tailored brieings from management and the Group’s
external auditors from time to time. Topics included the Task
Force for Climate-related Financial Disclosures (TCFD) and IFRS 17
implementation in 2022.
The Terms of Reference of the Audit Committee include all the
matters required under the Code and are reviewed annually by
the Committee.
The Chair of the Audit Committee meets with the Group Head
of Internal Audit, Group Chief Financial Oicer, Director of Group
Finance and Chief Actuay, Head of Reseving, the external auditor
and UK Head of People Sevices (who has oveall responsibility
for coordinating the Group’s whistleblowing arangements) on a
regular basis. The Committee also held (i) two private meetings
with the Group Head of Internal Audit, (ii) one private meeting
with the Chief Financial Oicer, and (iii) two private meetings with
the external auditor during the year.
Role and responsibilities of the Committee
The Audit Committee’s primay responsibilities are to:
Financial repoting
• Monitor the integrity of the Group’s Financial Statements and
any formal announcement relating to the Group’s inancial
peformance, including the Group’s Solvency and Financial
Condition Repot, reviewing any signiicant inancial repoting
judgements which they contain, including that of the Group’s
Going Concern status
• Provide advice (where requested by the Board) on whether
the Annual Repot and Accounts, taken as a whole, is fair,
balanced and understandable, and provides the information
necessay for shareholders to assess the Group’s position and
peformance, business model and stategy
• Oversee the Group Risk Committee’s work on climate-related
inancial disclosures under TCFD
Internal controls and internal audit
• Keep under review the efectiveness of the Company’s internal
inancial controls, internal control and risk management systems
• Monitor and assess the role and efectiveness of the Group’s
internal audit functions in the context of the Group’s oveall
internal control and risk management systems
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Admial Group plc Annual Repot and Accounts 2022
External audit
• Make recommendations to the Board, to be put to shareholders
for their approval at the AGM, in relation to the appointment,
reappointment and removal of the Group’s external auditor
• Approve the remuneation and terms of engagement of the
Group’s external auditor
• Review and monitor the Group external auditor’s independence
and objectivity, and the efectiveness of the audit process,
taking into consideation relevant UK professional and
regulatoy requirements
• Review the policy on the engagement of the Group external
auditor to provide non-audit sevices, ensuring that there is
prior approval of non-audit sevices, considering the impact this
may have on independence and taking into account the relevant
ethical guidance in this regard
Other
• Oversee the Group’s procedures for handling allegations
from whistleblowers
• Repot to the Board on how it has discharged its responsibilities
Summay of key activities during 2022
During the year the Committee reviewed the following:
Financial repoting
• The Group Annual Repot and interim results announcement,
including key accounting judgements and disclosures
• Parent company Financial Statements (both annual and interim),
and related key accounting judgements and disclosures,
including impairment testing of the parent company’s
investments in subsidiaries
• Repots from the Chair of the Group Risk Committee
on the principal risks faced by the Group and the work
undetaken by the Group Risk Committee to ensure risk is
appropriately managed
• Repots from the Chair of the Admial Insuance Company
Limited (AICL) and Admial Insuance (Gibaltar) Limited (AIGL)
Audit Committees on the Financial Statements for AICL and
AIGL, including key accounting judgements and disclosures
• The Group Solvency and Financial Condition Repot,
including disclosures speciic to AICL and AIGL
• Presentations from the Group’s actuarial reseving team and
independent external actuarial expets to assist the Committee
in concluding on the adequacy of the Group’s IFRS reseves and
Solvency II technical provisions
• Information suppoting the Group’s Going Concern assumption
• Repots prepared by management demonstating risk tansfer
within reinsuance contacts in line with the requirements of
IFRS 4 (Insuance Contacts)
• Updates from the Group’s loans business on the IFRS 9 (Financial
Instruments) expected credit loss provision
• Repots assessing the accounting and disclosure impacts of risk
events arising across the Group
• The inancial statement disclosures on the impact of the new
standard required by IAS 8 (Accounting Policies, Changes in
Accounting Estimates and Errors) (futher detail on the
Committee’s work in relation to IFRS 17 is set out below)
• The Group’s disclosures relating to climate risk, including those
disclosures required by the TCFD, and received a brieing from
the external auditor on regulatoy developments in climate-
related disclosure requirements
Internal audit and internal controls
• Repots from the internal audit functions within the Group on
the efectiveness of the Group’s risk management and internal
control procedures and progress against the 2022 Audit Plan,
approval of changes requested to the 2022 Plan and the Audit
Plan for 2023 including resourcing levels, details of key audit
indings, and actions taken by management to manage and
reduce the impact of the risks identiied
• Peformance and efectiveness of the Internal Audit function
• A summay of the key indings from all repots from Internal
Audit, including management responses to the conclusions set
out in the repots
• Repots on the controls in place, including signiicant breaches
or incidents, across the Group and its overseas subsidiaries
• European insuance internal audit updates, including an update
from the Chair of the European Audit Committee (of the Group’s
subsidiay Admial Europe Compañía de Seguros, S.A., (AECS)
which undewrites the Group’s European insuance businesses)
on the activities of that Committee
• US insuance internal audit updates, including an update from
the Chair of the Audit Committee of the Group’s US subsidiay
Elephant, on the activities of that Committee
• Repots on the output of the assessment of adherence
to and embedding of the Group Minimum Control
Standards’ famework
• Repots on the various improvements undeway to the Group’s
control environment including an assessment of the Group’s IT
access control management
External audit
• Repots from the external auditor highlighting system and
control recommendations, key accounting and audit issues
and conclusions on the half year and full year repoting
• Conirmation of the external auditor’s independence
• Repots from Deloitte, the external auditor, on their proposed
audit scope and plan
• Proposed external audit fee and the drivers of the year-on-
year increase
Audit Committee Repot
continued
174
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Other
• Updates on tax matters, including the Group Tax Stategy which
was recommended to the Board for approval and is available at
www.admialgroup.co.uk
• Progress updates on the BEIS consultation relating to audit and
corpoate governance reforms, including updates received from
the external auditor
• The efectiveness of the Group’s Whistleblowing Policy, which
sets out the arangements for aising and handling allegations
from whistleblowers, and receiving regular repots on instances
of whistleblowing that have been aised
• The Committee’s terms of reference
• The Committee’s efectiveness
• Meetings held with the external auditors, the Group Head of
Internal Audit, and the Chief Financial Oicer, respectively,
without management being present
Signiicant issues considered by the Committee
After discussion with both management and the external
auditor, the Audit Committee determined that the key risks of
misstatement of the Group’s Financial Statements, as in prior
years, related to the valuation of gross insuance claims reseves.
Two additional key audit matters were also identiied. Given the
economic backdrop referenced above, a signiicant risk was agreed
in relation to inlation assumptions applied to UK motor bodily
injuy claims reseves given the long-tail nature of the claims and
the current higher inlationay environment.
Secondly, given the 1 Januay 2023 implementation date for
IFRS 17, a key audit matter was also highlighted in respect of the
2022 year end IAS 8 (Accounting Policies, Changes in Accounting
Estimates and Errors) disclosures setting out the impact of IFRS 17
on the Group
These signiicant issues were discussed with management during
the year and with the external auditor at the time the Committee
reviewed and agreed the external auditor’s Group audit plan,
when the external auditor reviewed the interim Financial
Statements in August 2022 and also at the conclusion of the
external audit of these full year Financial Statements.
Valuation of gross insuance claims reseves
The Committee continued to spend signiicant time reviewing
and challenging the approach, methodology and key assumptions
adopted by management in setting reseves for insuance liabilities
in the Financial Statements to ensure consistency with the Group’s
stated reseving approach to set reseves at a prudent level.
In this context, the Committee challenged management on
the impotant judgements and assumptions used in estimating
outstanding claims. Futher information is set out in more detail
in the critical accounting estimates section of Note 3 to the
Financial Statements.
As in previous periods, the Committee held meetings speciically
focused on reseving, receiving presentations on UK Car Insuance
reseves from the internal actuarial reseving and inance teams,
as well as the independent external actuarial advisors. At these
meetings management provided futher information on the
projected best estimate gross claims reseves, as well as the
margin to be held above best estimate in the Financial Statements
and were challenged by the Committee as to their adequacy and
the consistency of the level of prudence with prior periods.
The Committee reviewed and discussed the efects of inlationay
pressures on claims reseves in relation to both damage and bodily
injuy claims. In addition, the continuing impact of Covid on both
claims frequency and claims severity as well as changes in claims
settlement patterns were considered, as well as scenarios in
relation to the future Ogden ate. The Committee also reviewed
management’s assessment of the level of uncetainty inherent
in the claims reseves and changes to that assessment from
previous periods.
The Committee also received updates from the Group’s external
auditor, Deloitte, on its work in relation to this signiicant audit
risk. This included reviewing management’s actuarial data
quality assessments, best estimate reseve projections and the
margin included above best estimate, as well as suppot for
management’s qualitative and quantitative suppot for gross
claims reseves included in the Financial Statements. Based on
this work, the auditor was satisied that the inancial statement
reseves remain appropriate and consistent with the Group’s
accounting policy.
The Committee also received repots on the reseving processes
for the Group’s insuance businesses other than UK Car Insuance.
Whilst acknowledging that the setting of reseves for claims
which will settle in the future is a complex and judgemental area
and having had the oppotunity to challenge management’s
proposal in respect of both best estimate reseves and margin
held above best estimate to cover unforeseen deterioations
in the best estimate, the Committee is comfotable that an
appropriate process has been followed, and that there has been
suicient scrutiny, challenge and debate to give conidence that
the reseving levels set provide an appropriate margin above
best estimate.
Inlation assumptions applied within valuation of UK
motor bodily injuy claims reseves
The Committee placed focus during the year on reviewing
and challenging the approach, data inputs, methodology and
key assumptions adopted by management in determining an
allowance for excess inlation on bodily injuy claims, included in
gross claims reseves. Whilst acknowledging that ultimate
outcome is highly uncetain, the Committee had the oppotunity
to challenge management’s judgements in respect of selected
projections of inlation, in paticular future wage inlation as well
as the elements of bodily injuy claims that will be subject to this
excess inlation. The Committee concluded that the data and
underlying methodology used in calculating excess inlation was
reasonable, and in line with market pactice and that the inlation
assumptions adopted were appropriate.
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Other inancial repoting issues
IFRS 9 provision for expected credit losses
During the year, the Committee has continued to review and
challenge the IFRS 9 provision for expected credit loss arising
through the Group’s loans business, Admial Money. Areas of focus
included the potential impact of UK inlationay pressures and
the increase in UK market interest ates on default experience,
the assessment of circumstances indicating a signiicant increase in
credit risk and underlying foward-looking economic assumptions.
Futher information on the provision and key assumptions are
found in Note 3 to the Financial Statements.
On the basis of the work peformed and having had the
oppotunity to challenge management’s proposal in respect
of the provision for expected credit losses, the Committee was
comfotable that an appropriate process has been followed,
noting the enhancements made to the provisioning methodology,
and that there has been suicient scrutiny and challenge to give
conidence that the provision has been set in line with the IFRS 9
requirements and included appropriate allowance for uncetainties
arising from the current macro-economic environment.
Misstatements
No material unadjusted audit diferences were repoted by the
external auditor. The Committee conirms that it is satisied that
the auditor has fulilled its responsibilities with diligence and
appropriate professional scepticism.
After reviewing the presentations and repots from management
and consulting, where necessay, with the auditor, the Committee
is satisied that the Financial Statements appropriately address
the critical judgements and key sources of estimation uncetainty
(both in respect to the amounts repoted and the disclosures).
The Committee is also satisied that the signiicant assumptions
used for determining the value of assets and liabilities have been
appropriately scrutinised, challenged and are suiciently robust.
IFRS 17 implementation
IFRS 17 is a new insuance accounting standard that came into
efect from 1 Januay 2023. Given the fundamental changes to
the Group’s Financial Statements and systems and processes that
will be required because of the new standard, the Committee
has continued to dedicate a signiicant amount of time to
understanding and assessing the impact of the standard on
the Group’s inancial repoting process and the progress of
implementation of chosen software solutions.
Through the year the Committee received the following updates:
• Regular updates as to the progamme status, including progress
against plans for individual workstreams and other issues such as
resourcing levels
• The Group’s tansition balance sheet as at 1 Januay 2022,
including the work of the external auditor Deloitte in respect of
the tansition
• The policy on judgements and materiality
• Repots setting out management’s assessment of key technical
accounting matters and accounting policy choices, including the
status of the work of the external auditor Deloitte in respect of
those technical issues
• Updates as to the status of the software solution for IFRS 17 and
the dependencies with other inance tansformation projects,
including the implementation of new geneal ledger systems in
seveal of the Group’s businesses
• The inancial statement disclosures on the impact of the new
standard required by IAS 8 (Accounting Policies, Changes in
Accounting Estimates and Errors)
• Updates from the Group’s external auditor on their audit of
the Group’s IFRS 17 work and IFRS 17 developments in the
market geneally
The Committee also reviewed the presentation to the Group’s
analyst and investor community on the likely impact of IFRS 17.
External audit
External auditor appointment
The Group last completed an audit tender during 2020/21 when,
following the completion of a tansparent and independent
audit tender process, Deloitte LLP were recommended to
shareholders as the Group’s auditor at the Annual Geneal Meeting
(AGM) in April 2021 and a resolution was passed to that efect.
The Committee conirms it is in compliance with the provisions
of the Statutoy Audit Sevices for Large Companies Market
Investigation Order 2014.
On the recommendation of the Committee, the Board approved
that Deloitte should be recommended to shareholders for
re-appointment as the Group’s auditors at the 2022 AGM.
A resolution to that efect will be proposed at the AGM.
Audit fee
During 2022, the Committee reviewed and approved the audit fee
proposal for the 2022 year end Group audit. The agreed fee for the
audit and other assuance related sevices for 2022 is £2.76 million
(2021: £2.25 million), with the increase relecting inlation in line
with market increases and the audit work peformed to date
in relation to the Group’s implementation of IFRS 17 (Insuance
Contacts) and the extended requirements for ESEF (European
Single Electronic Format).
The Committee approved the fee increase having discussed with
the auditor the ationale for the proposal.
Safeguarding the external auditor’s independence
and objectivity
The Committee reviewed and approved its policy on non-audit
sevices in Februay 2022 and was satisied that it continued
to align with current regulatoy guidance. Under the policy,
the Group’s statutoy auditor will only be engaged to cary out
non-audit sevices in exceptional circumstances or where there is
a regulatoy request, and where agreed by the Committee. This is
to ensure that the independence and objectivity of the external
auditor is safeguarded.
Pursuant to the policy and unless required by law or regulation,
any non-audit sevices will: a) be subject to atiication by the
Committee, if the cost does not exceed £15,000, or be subject
Audit Committee Repot
continued
176
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
to prior approval from the Committee where the cost exceeds
£15,000 or such costs in the aggregate exceed £30,000 and b) in
aggregate and where applicable, shall not cost more than 70% of
the aveage statutoy audit fee for the past three inancial years.
In considering whether to approve such non-audit sevices, the
Committee shall consider whether:
• It is probable that an objective, reasonable and informed
third paty would conclude that the understanding of the
Group obtained by the auditor for the audit of the Financial
Statements is relevant to the sevice
• The nature of the sevice would compromise
auditor independence
The Committee will continue to monitor regulatoy developments
in this area to ensure that its policy on non-audit fees adheres to
current guidance.
Efectiveness of the external audit process
The Committee undetakes an annual review to assess the
independence and objectivity of the external auditor and the
efectiveness of the audit process, taking into consideation
relevant professional and regulatoy requirements, the progress
achieved against the agreed audit plan, and the competence
with which the auditor handled the key accounting and
audit judgements.
As pat of its review, the Committee considered, among other
things, the following: the output of a questionnaire completed
by all Committee members and relevant members of the Group’s
Finance and Internal Audit functions and the indings of the FRC
Audit Quality Reviews (AQR) published in July 2022. Following this
review, the Committee concluded that the external auditor,
Deloitte LLP, remained independent and that the external audit
process remained efective.
Internal audit
The Group Head of Internal Audit attended all Audit Committee
meetings and provided a ange of presentations and papers
to the Committee, through which the Committee monitored
the efectiveness of the Group’s material internal controls,
including inancial, opeational and compliance controls on
behalf of the Board.
The Group Head of Internal Audit also carries out an annual review
of the efectiveness of the Group’s systems of internal control
and risk management and repots on the outcome of this review
to the Committee. In Februay 2023, the Group Head of Internal
Audit repoted an adequate level of assuance in relation to the
Group’s arangements for risk management, control infastructure,
governance and faud prevention controls.
The Committee reviewed and approved the Group Internal
Audit Policy, which includes the Group Internal Audit Terms of
Reference setting out the role; objectives; repoting lines and
accountability; authority; independence; and objectivity of the
Internal Audit function. The Committee also monitored and
discussed the evolution and development of the Internal Audit
function, and considered the role, competence and efectiveness
of each internal audit function across the Group. The Group Head
of Internal Audit continues to have responsibility to ensure the
quality of the internal audit activities in the Group’s overseas
locations. The Chairs of the European and US Audit Committees
each attended a meeting to provide an update on their
respective activities.
Members of the Committee also receive all issued audit repots,
enabling them to challenge the repots’ content, including the
ating, and related recommendations. The Committee approves
the internal audit plan at the stat of each calendar year whilst the
efectiveness and workload of the Internal Audit functions and
the adequacy of available resources are monitored throughout
the year.
The European opeations in Spain, Italy and Fance have a
dedicated internal audit team and the US business also has its
own locally based team. All repots are evaluated by the Group
Head of Internal Audit to ensure the quality and efectiveness
of the repoted indings, and a summay of the key indings of
each completed audit is provided to the Committee as pat of
the Group Head of Internal Audit’s regular Committee update.
In addition, the UK internal audit function carries out high-level
governance reviews of all foreign opeations, assessing the internal
control fameworks and system of risk management.
Committee efectiveness review
The 2022 Committee efectiveness review was conducted by
an external company, Bvalco Limited. As pat of the review,
each Committee member was inteviewed and asked a series
of questions designed to provide objective assessment of
the Committee’s peformance, including its efectiveness in
monitoring internal and external audit.
The Committee discussed the results of the review at its meeting
in early Februay 2023 and concluded that the Committee
continued to opeate efectively and the evaluators highlighted
good discussions on technically involved matters and eicient
decision-making. There were some areas identiied for futher
improvement, such as continued focus on the timeliness of the
circulation of papers in advance of meetings.
Whistleblowing
On behalf of the Board, the Committee considered and reviewed
the Group’s whistleblowing policy and received quaterly updates
on the use and efectiveness of the policy, whistleblowing metrics
and the instances of whistleblowing that had been aised across
the Group during the year. During the year, the Committee
concluded that the Group’s current whistleblowing arangements
were an appropriate means by which employees could aise
concerns in conidence and anonymously.
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Group Risk Committee Repot
Statement from Andy Crossley
Interim Chair of the Group Risk Committee
“The Group Board is of
the view that the Group’s
risk management and
internal control systems have
operated effectively during
the year.”
Andy Crossley
Interim Chair of the Group Risk Committee
Committee members
Focus area Attendance
Andy Crossley (Interim Chair) 11/11
Jayapakasa (JP) Rangaswami 11/11
Cristina Nestares 10/11
Karen Green 5/5
Jean Park 5/11
The Committee held ive scheduled meetings, with a futher six
additional meetings taking place.
9
meetings
in 2022
11
meetings
in 2022
Dear Shareholder,
As Interim Chair of the Group Risk Committee, I am pleased to
present the Committee’s repot for 2022.
The Committee has received updates on each of the Group
businesses as pat of the Group’s Enterprise Risk Management
Famework (‘ERMF’). Developments considered by the Committee
throughout the year included:
• Admial’s risk stategy and approach to risk management
including regular reviews of the Group’s risk stategy and
risk appetite; consideation of a refreshed suite of Key Risk
Indicators; and oversight of the management of material
notable risk events
• Ongoing risk assessment and monitoring of the impact of
inlation, market volatility, Covid-19 and economic outlook on
capital and liquidity risks across the Admial Group
• Oversight of work required to ensure Admial is prepared to
meet the challenges of climate change
• Developments linked to the launch of new products and the
monitoring of plans to develop existing products
• Oversight of Admial’s Technology and Information Security
work, including improvements in controls throughout the Group
• The continuing development of the Admial Internal Model
Risk stategy and approach to risk management: During the year
the Committee reviewed and proposed the Group risk stategy
and appetite to the Admial Group Board (hereafter ‘the Board’)
for approval. The Committee approved a refresh of the suite of Key
Risk Indicators with associated triggers and limits, relecting the
updates to the Group Risk Appetite.
The on-going focus on monitoring and repoting customer
outcome risks continues with the Committee reviewing the Group
Conduct Risk Famework (aligned with the ERMF). The Committee
also reviewed the Group Minimum Standards which continue to be
enhanced and embedded.
The Committee has spent time on key risks that afect the Group
as well as reviewing the management and outcomes of notable
risk events repoted during the year.
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Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Group Risk Committee Repot
continued
Capital Management: The Committee has reviewed the Group’s
proposed dividend level, capital plan and capital bufer in line
with the Capital Policy. The review considered seveal sensitivities,
stress tests and scenarios tests, including assessing the uncetainty
around inlation impacts. The Group continues to make use of
Undetaking Speciic Paameters (USPs) for AIGL and the Volatility
Adjustment (VA) across its UK insuance entities.
Solvency and Liquidity: The Committee has reviewed and
continues to monitor the Group’s solvency and liquidity positions
in response to market volatility and wider economic uncetainty,
considering factors such as increases in inlation, the wider
impact of supply chain disruption, and the pressures on individual
household inances.
Economic Uncetainty: The Committee has reviewed and
considered developments in the external environment throughout
this year. The combination of extaordinay factors such as the
Russian invasion of Ukaine, supply chain disruption, inlation levels,
interest ate increases and political instability have been the
subject of a number frequent of stress tests. In the UK insuance
market, the impact of whiplash reform and introduction of the
FCA’s Geneal Insuance Pricing Pactices have also been reviewed.
Covid-19: The impact of Covid-19 on Admial’s PR&Us, as well as
the steps taken to appropriately manage these risks, continues to
be overseen by the GRC, including oversight of the return to the
oice, in line with all applicable local and national guidance.
Climate change: The Committee has received regular updates on
the work being undetaken relating to climate change to ensure
that Admial is meeting current requirements and is appropriately
preparing to meet future challenges. These updates include
commentay on risk management, investments, ongoing climate-
related-stategic developments, and the changes that may be
necessay for compliance with emerging regulatoy requirements.
This is futher described in the Viability Statement (page 122),
and additional information on Admial’s approach to climate
change can be found in disclosures related to the Task Force on
Climate-Related Financial Disclosures famework (page 97).
New product developments and existing product escalation:
As a result of the Committee’s oversight of individual Group
entities, combined with the oversight aforded by the Group’s
project governance famework, the Committee has considered
and challenged updates relating to material projects and change
progammes within the Group, including those designed to
develop new products, and those that will develop and acceleate
existing products.
Technology and Information Security: The level of oversight of
Technology Risks including opeational resilience has increased
over the year with the recruitment of additional resources in these
areas and with the embedding of improved KRIs for Technology
and Cyber/Information Security risks. The cyber security
progamme of work in the European Insuance businesses is close
to completion, with a number of areas strengthened around cyber
security and business resilience. The GRC has received regular
updates on these topics including the future technology stategy.
Progress of Admial Internal Model (AIM): The project team
has continued to provide status updates against key milestones
at each Group Risk Committee and Board meeting during 2022.
The model enhancement stage is ongoing and expected to
conclude in the irst half of 2023. The Board will oversee an end-
to-end process of reviewing the enhanced model output across
two year-ends, suppoted by robust independent validation before
entering a regulatoy pre-application process.
Andy Crossley
Interim Chair of the Group Risk Committee
7 March 2023
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Admial Group plc Annual Repot and Accounts 2022
Duties and Responsibilities of the Group Risk Committee
The duties and responsibilities of the Committee are set out in the
Committee’s Terms of Reference, and were reviewed and approved
by the Admial Group Board.
The responsibilities of the Committee are:
• Overseeing the development, implementation and maintenance
of the Group’s oveall Risk Management Famework and ensuring
that it is in line with emerging regulatoy, corpoate governance
and best pactice guidelines
• Considering and recommending to the Board for approval the
Group’s risk appetite, as well as ongoing monitoring and review
of the Group’s risk exposures
• Monitoring the Group’s prudential risk exposure, which includes
ensuring that the Group’s capital resources and liquidity proile
are appropriate to its needs, whilst meeting minimum regulatoy
requirements, including overseeing and challenging the design
and execution of the Group’s stress and scenario testing
• Reviewing the Group’s proposed interim and inal
dividend payments
• Reviewing the annual Group ORSA Repot and any required
interim ORSA Repots, with recommendations being provided
to the Board for approval
• Reviewing and approving the Solvency II Actuarial Function
Repots on Reinsuance and Undewriting each year.
• Reviewing the Group’s progress towards approval of the Group’s
internal capital model
• Monitoring the adequacy and efectiveness of the Group’s Risk
and Compliance functions
• Approving the annual plans and resourcing for the Group Risk
and Compliance functions which include reviewing regulatoy
developments and any planned meetings between the PRA and
FCA and the business
• Reviewing any signiicant risk issues that have a material impact
on the customers of the business and / or concern the regulator
• Ensuring the adequacy and efectiveness of the Group’s systems
and controls for the prevention of inancial crime, and data
protection systems and controls
• Reviewing the Group’s compliance with Solvency II
• Considering the annual process for the review and appaisal of
adherence to Group Minimum Standards
• Reviewing compliance with Group policies, including the
Group’s Reinsuance Policy, Group ORSA Policy, and Group
Undewriting Policy
• Reviewing the proposed risk-based adjustments to
remuneation for senior managers and making subsequent
recommendations for approval to the Group Remuneation
Committee, as well as providing feedback on the Directors
Remuneation Policy, and commenting on remuneation
metrics to help ensure there is no conlict with risk
management objectives
• Reviewing repots from the Group Risk, Group Compliance,
Group Data Protection and Privacy, and Group Internal
Audit functions
• Formally repoting to the Group Audit Committee to facilitate
their recommendation of the Annual Repot and Accounts to
the Board on the following key areas and disclosures; principal
risks and uncetainties, risk management and internal control,
viability, risks associated with material tansactions and/or
stategic proposals, and the Taskforce on Climate-Related
Financial Disclosures
The Committee Chair repots formally to the Board on the
Committee’s proceedings after each meeting, on all matters
within its duties and responsibilities, as set out in previously
circulated minutes to the Board. The Committee Chair also
repots on the activities of the Committee in a formal written
repot that is submitted to and discussed by the Board annually.
The work of the Committee is suppoted by more detailed
work undetaken by subsidiay Boards and/or executive Risk
Management Committees in each of the Group’s opeational
entities. At each meeting, the Risk Management Committees
consider notable: movements in the opeation’s risk proile;
risk events; and emerging risks. Risk Management Committees
also assess and monitor regulatoy issues, ensuring that their
resolution and the actions taken are appropriately recorded.
The Risk Management Committees receive regular information
on Conduct Risk, such as complaint handling repots and other
related management information. The Group Risk Management
function reviews and collates information from across the Group
for consideation by the Committee.
In addition, to ensure that the Committee is opeating efectively,
it conducts a periodic review of its peformance (in 2022,
this review was peformed externally by Bvalco) and at least
annually reviews its constitution and terms of reference (last
reviewed in November 2022). Any changes it considers necessay
are recommended to the Group Board for approval. As pat
of the Committee’s 2022 annual review, peformed by Bvalco,
each Committee member undetook an inteview designed to
provide objective assessment of the Committee’s peformance,
including its efectiveness.
The Committee discussed the results of the review at its meeting
in Februay 2023 and concluded that, oveall, the Committee
remained efective. An area of focus and improvement for the
Committee in 2023 was identiied as ensuring that efective
summaries highlighting major points, results, conclusions or
recommendations are presented to suppot more complex Risk
Committee material.
Group Risk Committee Repot
continued
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Admial Group plc Annual Repot and Accounts 2022
Summay of Key Group Risk Committee Activities in 2022
During the year the Committee:
• Reviewed the Group’s updated Risk Stategy, Risk Appetite and
associated triggers and limits in the context of the Group’s
agreed stategic objectives
• Received and challenged regular updates related to
Covid-19, including: impact on the Group’s principal risks and
uncetainties; staf health and wellbeing; return to oice
plans; IT and information security updates; and the impact to
subsidiaries within the Group
• Recommended the “2022 Group ORSA Repot” and ORSA
Policy for Board approval prior to submission of the repot
to the regulator
• Reviewed the Group’s proposed dividend level, capital plan
and capital bufer in line with the Capital Policy
• Reviewed the Group’s regulatoy capital add-on application
as pat of Solvency II capital requirements
• Received regular monitoring repots on customer outcome risk
and reviewed updates to the Group Minimum Standards and
Policy Famework
• Received in-depth updates of individual Group entities,
including Admial Europe Compañia De Seguros (AECS),
EUI, Admial Money (AFSL), Elephant and Able
• Considered in-depth analysis of a number of the Group’s most
signiicant risk areas, via stress and scenario testing and reverse
stress testing
• Considered the adequacy of risk mitigation measures
and contingency plans including a review of the Group’s
reinsuance provisions
• Dedicated a signiicant amount of time to the development
of the Admial internal model, receiving regular updates on the
progress of the project and providing challenge to key project
work streams, in paticular the model validation
• Received regular updates on climate change-related initiatives,
including continued progress to reduce scope 1 and 2 emissions,
progress to validating scope 3 emissions, and updates on
staf involvement
• Received regular risk monitoring repots on peformance of Key
Risk Indicators within the oveall risk management famework.
• Received updates on the impact of notable risk events
throughout 2022
• Received regular updates in relation to key progammes of
work including IFRS 17, Neo, Guidewire Upgade and PCI
Agentless Payments, as pat of the Group’s enhanced project
governance famework
• Considered the annual renewal of the Group’s corpoate
insuance coveage
Principal risks and uncetainties
The Board of Directors conirms that it has peformed a
robust assessment of the Group’s principal and emerging risks.
These risks, along with explanations of how they are being
managed and mitigated, are included in the Stategic Repot,
page 114.
Information on how key risk drivers have impacted on the Group’s
principal risks has been included within the Viability Statement,
page 122.
Risk management and internal control systems
The system of risk management and internal control over Admial’s
insuance, opeational, market, credit and group risk is designed
to manage ather than eliminate the risk of failure to achieve
business objectives and breaches of risk appetites.
Futhermore, risk management can only provide reasonable and
not absolute assuance against material misstatement or loss.
The Group Board is ultimately responsible for the Group’s system
of risk management and internal control and the Audit Committee
has reviewed the efectiveness of this system (a summay of
Audit Committee duties and responsibilities, as well as key Audit
Committee activities in 2022 is available on page 171).
The Group Board is of the view: that there is an ongoing process for
identifying, evaluating and managing the Group’s risks and internal
controls; that it has been in place for the year ended 31 December
2022 and that it has opeated efectively; and that, up to the
date of approval of the Annual Repot and Accounts, it is regularly
reviewed by the Group Board and accords with the internal
control guidance for Directors provided in the 2018 UK Corpoate
Governance Code.
The Group Board conirms that it has peformed a robust
assessment of the Group’s principal and emerging risks.
These risks, along with explanations of how they are being
managed and mitigated, are included in the Stategic Repot
on page 114, with key risk drivers impacting Admial’s principal
risks and uncetainties being futher discussed in the Viability
Statement on page 122. The Group Board is responsible for
determining the nature and extent of the principal risks it is
willing to take in achieving its stategic objectives. This assessment
suppots the Group Board in monitoring the integrity of the
Group’s repoted Financial Statements.
The Group Board meets at least seven times a year to discuss the
direction of the Group and to provide oversight of the Group’s risk
management and internal control systems.
The Group Board has delegated the development, implementation
and maintenance of the Group’s oveall risk management
famework to the Group Risk Committee (GRC). The GRC repots
on its activities to the Group Board and the GAC, suppoting the
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Admial Group plc Annual Repot and Accounts 2022
oveall assuance provided by the GAC that the Group’s internal
control, risk management and compliance systems continue to
opeate efectively.
The Group Board has delegated to the GAC the review of the
adequacy and efectiveness of the Company’s internal inancial
controls, and internal control and risk management systems.
The Group opeates a “three lines of defence” approach to Risk
and Internal Control.
1st Line of Defence: The Group Board recognises that the day-to-
day responsibility for implementing policies for risk identiication,
assessment and management lies with the senior management,
whose opeational decisions must take into account risk and how
it can be controlled efectively.
2nd Line of Defence: The “second line of defence” is led by the
Group Chief Risk Oicer and comprises the Corpoate Governance
functions and Committees that are in place to provide oversight
of the efective opeation of the internal control famework.
The Corpoate Governance functions facilitate the oversight and
opeation of the Group Policy Famework and Group Minimum
Standards, covering risk management and controls for all notable
risks to the Group. The Corpoate Governance functions peform
second line reviews, including reviews of the capital modelling
and business planning processes to suppot the Group Board’s
assessment of the Group’s on-going viability. Regular reviews of
all risks are undetaken in conjunction with senior management,
with the results of these reviews recorded in risk registers and
repoted to the appropriate governance forums and Boards.
3rd Line of Defence: The “third line of defence” comprises the
independent assuance provided by the GAC and the Group
Internal Audit function. Internal Audit undetakes a progamme
of risk-based audits covering all aspects of both the irst and
second lines of defence. The indings from these audits are
repoted to all three lines, i.e. Management, the Executive and
oversight Committees, and the GAC.
The Subsidiay Boards, GRC, and entity Risk Committees receive
repots setting out key peformance and risk indicators and
consider possible control issues brought to their attention
by early warning mechanisms that are embedded within the
opeational units. They, together with the GAC, also receive
regular repots from the Internal Audit function, which
include recommendations for improvement of the control and
opeational environments.
The Chair of the GRC provides a written repot to the Group Board
of the activities carried out by the Committee on an annual basis
(a summay of GRC duties and responsibilities, as well as key GRC
activities in 2022 is available on pages 178 to 182). In addition, the
Group Board receives repots from the Chair of the GAC as to its
activities, together with copies of the minutes from Subsidiay
Board meetings, the GRC and the GAC.
The GAC’s ability to provide assuance to the Group Board depends
on the provision of periodic and independent conirmation,
primarily by Group Internal Audit, that the controls established
by Management are opeating efectively and where necessay
provides a high-level challenge to the steps being taken by the
GRC to implement the risk management stategy.
Group Risk Committee Repot
continued
182
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Remuneation Committee Repot
“For Admiral, like many
other companies, 2022 has
been a challenging year
when it comes to pay for our
people affected by the rising
cost of living. The Committee
have been focused on how we
support all the people who
work for Admiral..”
Evelyn Bourke
Chair of the Remuneation Committee
Committee members
Focus area Attendance
Evelyn Bourke (Chair) 9/9
Jean Park 4/9
Mike Brierley 8/9
1
1 Michael Brierley was unable to attend one ad hoc meeting of the Remuneation
Committee called at shot notice on 27 October 2022
Dear Shareholder,
On behalf of the Remuneation Committee, I am delighted to
present the Director’s Remuneation Repot for the year ended
31 December 2022.
I would like to thank shareholders for suppoting Admial’s Annual
Repot on Remuneation at the April 2022 AGM with a vote of
97.31%. I look foward to welcoming you at our AGM in 2023 and
to your continued suppot for this year’s remuneation resolution.
2022 Business Context
2022 has been another turbulent year where we have needed to
be agile in adapting to fast developing circumstances to arrive at
the right outcomes quickly, but robustly for all our stakeholders.
As Milena has made clear in her statement this year, while we
haven’t been immune to external conditions, we continued to
deliver the right products and sevice to our customers, and
in return we have grown our customer base to 9.28 million,
while delivering proits of £469 million. This is a solid peformance
in uncetain times. We have been able to deliver this peformance
because we reacted quickly to the changing market conditions.
We needed to show agility to suppot the people who work for
Admial and whose dedication and hard work make our business
successful. During 2022 we have taken steps to ensure our people
are suppoted through the cost-of-living challenge.
9
meetings
in 2022
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Admial Group plc Annual Repot and Accounts 2022
Remuneation Committee Repot
continued
Pay across the Group – Suppoting our people
We recognised the exta squeeze many of our people felt.
The increases in energy prices, rising inlation, and geneal cost
of living pressures have been on eveyone’s minds during 2022.
Our colleagues have always been at the heat of our business,
so we automatically sought to suppot them through this diicult
time. Our response was tailored by population and to the situation
in countries where we have opeations to ensure we delivered the
right solutions.
During 2022 we provided cost-of-living suppot payments to
help with rising costs, paticularly over the winter months.
These payments are on top of additional salay increases awarded
to a signiicant number of colleagues as pat of our ongoing review
of how we reward colleagues at Admial. We also provided suppot
to colleagues in a less direct way though free car parking and
discounts in the oice restauants. Finally, we have reminded our
people of the suppot that is always available to them, but which
may be even more relevant at the moment such as discounts on
the weekly supermarket shop, motgage review sevices as well
as free debt advice and life event loans.
Remuneation for 2022
Taking into account the approved remuneation structure and
Admial’s business peformance, the Committee made the
following decisions during 2022:
2020–22 Discretionay Free Shares Scheme (DFSS)
Based on our peformance for the period 2020–2022, 59.24% and
59.21% of the DFSS award ganted in 2020 will vest to Milena
Mondini de Focatiis and Geaint Jones, respectively.
The 2020 DFSS awards were ganted during the pandemic,
a period when the shares price were lower in many companies.
The awards ganted under the DFSS are a ixed number of shares.
As such the awards ganted to Milena Mondini de Focatiis and
Geaint Jones in 2020 were not impacted by the change in the
share price. However, as always, the Committee have given
thorough consideation to the outcomes to satisfy themselves
that it is relective of the oveall peformance of the Group.
The full details of the vesting outcomes are on page 199.
2022 DFSS Bonus
Milena Mondini de Focatiis and Geaint Jones will receive a DFSS
bonus of £399,085 and £260,516 respectively. This bonus is
equivalent to dividends which would have been paid during the
year on all outstanding DFSS and salay shares awarded, but not
yet vested, plus a 6.48% adjustment for peformance against a
scorecard of Non-Financial Metrics. In addition, the DFSS bonus
was subject to a potential downward adjustment to take into
account any risk events which were considered to have a material
customer, regulatoy or inancial impact. For this year there were
no such risk adjustments. The full details of the DFSS bonus
calculations are on page 200.
2022 DFSS Award
On 26th September 2022, Milena Mondini de Focatiis was ganted
an award of 90,000 shares and Geaint Jones was ganted an award
of 52,500 shares under the DFSS. Using the share price on the date
of the gant of £21.21, this is the equivalent to £1,908,900 or 267%
of Milena’s base salay and £1,113,525 or 267% of Geaint’s base
salay respectively.
The awards will vest based on:
• EPS – 26.67% weighting
• TSR vs. FTSE 350 (excluding investment companies) –
26.67% weighting
• RoE – 26.67% weighting, and
• the aveage outcomes of the scorecards of Non-Financial
Metrics used to assess DFSS bonus adjustments over the
peformance period – 20% weighting
There will also be the potential for downwards adjustment subject
to an assessment which will take account of risk events which are
considered to have a material customer, regulatoy or inancial
impact over the course of the peformance period. Futher details
can be found on page 201.
2022 DFSS Financial Measures review
One of the key changes to the way we have implemented
remuneation during 2022 is a review of the peformance ange
for the inancial measures that apply to the 2022 DFSS which
covers the peformance period from 2022 to 2024.
The inancial peformance anges for the inancial peformance
measures are set at the point of each gant of the awards.
The gants are usually made in the autumn. Over seveal years
the measures and the peformance anges have been largely
unchanged from one year to the next. However, in 2022 the
Remuneation Committee has reviewed the peformance anges
that apply to awards ganted on 26th September 2022 and
approved a change. This impacts approximately 4,000 people
in the Group, including Milena and Geaint as Group CEO and
Group CFO.
The Remuneation Committee believe it is appropriate to make
the changes to the peformance anges in 2022 to relect both
the unique opeating environment experienced during the
pandemic and to ensure they relect the growth stategy of
the Group. Without this change it is extremely likely that the
vesting outcome would be nil which would undermine the reward
and retention elements of the scheme for both the company
and paticipants.
In summay, the Earnings Per Share (EPS) peformance ange has
been set on an absolute EPS outcome ather than growth because
the pandemic resulted in exceptional EPS outcomes in 2020 and
2021 that make an EPS growth measure unachievable, 2021 would
be the basis year for any growth. The Return On Equity (ROE)
peformance ange has been set to relect the current growth and
diversiication stategy and business mix. The Total Shareholder
Return (TSR) target remains unchanged from previous schemes.
184
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Admial has always focused on building a long-term sustainable
business and has adopted a lexible approach to optimise
outcomes in the medium term so as to maintain a focus on
creating long term value. We believe this approach is a key factor
in our success. In making these adjustments the Remuneation
Committee continue to suppot this approach, while seeking to
ensure that the DFSS will continue to act as an incentive for all
the paticipants and align them to delivering strong results for
all our stakeholders.
We engaged with our major shareholders, who were geneally vey
suppotive of the changes.
Full detail of the change to the 2022 DFSS inancial targets can be
found in the Annual Repot on Remuneation on page 200.
2023 remuneation arangements
Executive Director remuneation arangements for 2023 will
continue to be in line with the 2021 Remuneation Policy.
Milena Mondini de Focatiis’ salay was increased by 3.00% to
£737,326 and Geaint Jones’s salay was increased by 4.00% to
£433,472, efective from 1 Januay 2023. These increases are below
the proposed base pay changes across the wider Group for 2023.
We anticipate the aveage increase to be in the order of 5% as we
continue to suppot our people through the impact of the highly
inlationay environment.
It is anticipated that Milena Mondini de Focatiis will be ganted an
award of 90,000 shares and Geaint Jones will be ganted an award
of 52,500 shares under the DFSS for 2023. The Committee will
review these awards prior to the September gant date to ensure
the quantum remains appropriate.
The Committee reviewed the metrics that will apply to DFSS
and DFSS bonus awards for 2023. Futher details are shown on
page 200. In paticular, the Committee considered the use of
Environmental, Social and Governance (‘ESG’) measures. For 2023,
DFSS and DFSS bonus awards will be subject to peformance
anges based on diversity in senior management and across the
Group. We plan to include targets for climate impact when we
have completed the validation of our scope 3 emissions, and once
Science-Based Targets have been set. The Committee will keep
this under close review during 2023.
In addition to the Executive Director arangements for 2023 the
Committee has agreed the package for the incoming Group Chair,
details of which can be found on page 205.
Composition of the Remuneation Committee
As mentioned elsewhere in the Annual Repot, Jean Park retired
from the Board and all her committee memberships in Januay
2023. I would like to thank her for her invaluable contribution to
the Committee and wish her all the vey best for the future.
I would like to extend my thanks to JP Rangaswami for his insightful
contribution as Interim Member of the Remuneation Committee
over the course of 2022.
As Justine Robets has recently joined the Remuneation Committee,
I would like to extend a warm welcome to her, and I am sure her
people and remuneation expetise will be highly valuable to
the Committee.
Looking ahead
Our Directors’ Remuneation Policy, approved by shareholders
at the 2021 AGM for a period of three years, is nearing its end
and is scheduled for renewal and shareholder vote at the 2024
AGM. The Committee will consider how the policy and its
implementation will need to evolve to ensure the continued
alignment to our stategy and purpose. Simplicity and
tansparency will be key areas of focus for the review.
We will complete this review during 2023 and will undetake
a consultation with our regulators and largest shareholders to
understand their perspectives on any changes and will take careful
consideation of feedback received before inalising the proposals.
The Annual Repot on Remuneation (subject to an advisoy vote)
will be put to our shareholders at the AGM in 2023. We hope
that you vote in favour of the repot. I am available to discuss
our Remuneation Policy and Annual Repot on Remuneation
with shareholders.
Evelyn Bourke
Chair of the Remuneation Committee
7 March 2023
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Remuneation at a Glance
10-year TSR peformance: Admial vs. FTSE100
and FTSE350 indices
Growth in the value of a hypothetical £100 holding over ten years
to 31 December 2022
What did our Executive Directors earn in 2022?
• Pension, beneits and SIP includes 2022 pension contribution of
£15,000, and £15,000 for the CEO and CFO, respectively
• DFSS bonus of £399,085 and £260,516 for the CEO and CFO,
including an adjustment for peformance against scorecards of
non-inancial measures
• DFSS value for the CEO and CFO relates to 59.24% and 59.21%
of their 2020 DFSS awards vesting, respectively
Earnings per share (pence)
124.3p
(2021: 212.2p)
Full year dividend
per share (pence)
112p
(2021: 187p)
Return on equity (%)
35%
(2021: 56%)
1 year TSR
-26%
“ I would like to thank
shareholders for
supporting Annual
Report on Remuneration
at the April 2022 AGM
with a vote of 97.31
%
.”
Evelyn Bourke
Chair of the Remuneation Committee
How did we peform during 2022?
£1,016,647
£537,942
£260,516
£399,085
£19,069
£19,069
£715,850
£416,800
CEO CFO
Pension, benefits & SIPSalary DFSS Bonus DFSS Shares
Admiral FTSE 100 FTSE 350
£500
£400
£300
£200
£100
£0
Dec 12 Dec 13 Dec 14 Dec 15 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21
Dec 22
Dec 16
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Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Director’s Remuneation Policy
Compliance Statement
This Remuneation Repot has been prepared according to the requirements of the Companies Act 2006 (the Act), Regulation 11
and Schedule 8 of the Large and Medium-Sized Companies and Groups (Accounts and Repots) (Amendment) Regulations 2018,
the Companies (Directors’ Remuneation Policy and Directors’ Remuneation Repot) Regulations 2019 and other relevant requirements
of the FCA Listing Rules. In addition, the Board has adopted the principles of good corpoate governance set out in the UK Corpoate
Governance Code (the Code) and the guidelines issued by its leading shareholders and bodies such as ISS, the Investment Association,
and the Pensions and Lifetime Savings Association.
Unless othewise stated, information contained within this Remuneation Repot is unaudited.
The following Remuneation Policy (the “2021 Policy”) was approved by a 98.6% shareholder vote and therefore came into efect from
the April 2021 AGM. There have been no changes to the Remuneation Policy since the 2021 AGM.
Compliance with the Code Principles
UK Code
Principle Description References
Principle
P
Remuneation policies and pactices should be
designed to suppot stategy and promote long-
term sustainable success. Executive remuneation
should be aligned to company purpose and values
and be clearly linked to the successful delivey of the
company’s long-term stategy.
• Key Principles on page 187
• Executive Director Remuneation Policy on page 187
• Remuneation outcomes for 2022 on page 199
• Implementation of remuneation policy for 2023 on
page 196
Principle
Q
A formal and tansparent procedure for developing
policy on executive remuneation and determining
director and senior management remuneation
should be established. No director should be involved
in deciding their own remuneation outcome.
• Executive Director Remuneation Policy on page 187
• Incentive outcomes on page 199
• Remuneation Committee oveview on page 183
Principle
R
Directors should exercise independent judgement
and discretion when authorising remuneation
outcomes, taking account of company and individual
peformance, and wider circumstances.
• Remuneation outcomes for 2022 on page 199
• Remuneation Committee oveview on page 183
Key Principles of Admial Remuneation Arangements
The Group is committed to the primay objective of maximising shareholder value over time in a way that also promotes efective risk
management and excellent customer outcomes ensuring that there is a strong link between peformance and reward. This is relected
in the Group’s stated Remuneation Policy of paying competitive, peformance-linked and shareholder-aligned total remuneation
packages comprising basic salaries coupled with paticipation in peformance-based share schemes to geneate competitive total reward
packages for superior peformance. The Board is satisied that this Policy continues to meet the objectives of attacting and retaining
high quality executives across the Group. This policy will be reviewed in 2023 as pat of the usual three year review and will be put to a
shareholder vote at the 2024 AGM.
The Committee reviews the remuneation famework and packages of the Executive Directors and senior managers and recognises the
need to ensure that the Remuneation Policy is irmly linked to the Group’s stategy, including its risk management approach. In setting
the Policy and making remuneation decisions, the Committee takes into account pay and conditions elsewhere in the Group. The main
principles underlying the Remuneation Policy are:
• Competitive total package – the Group aims to deliver total remuneation packages that are market-competitive, taking into account
the role, job size, responsibility, and the individual’s peformance and efectiveness. Prevailing market and economic conditions and
developments in governance are also considered, as are geneal salay levels throughout the organisation
• Signiicantly share-based – our base salaries are typically targeted towards the lower end of market but are combined with
meaningful annual share awards that vest on long-term peformance to ensure strong alignment with shareholders and the long-
term interests of the Group. Executives are also encouaged to build up signiicant shareholdings in the Group to strengthen
shareholder alignment
• Long-term perspective – a signiicant pat of senior executives’ remuneation is based on the achievement of appropriate but
stretching peformance anges that suppot the delivey of the Group’s stategy and shareholder value. The extended peformance
and vesting horizons promote a long-term perspective that is appropriate to the insuance sector
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Director’s Remuneation Policy
continued
• Efective risk management – incentives are designed to ensure they do not encouage excessive risk-taking. They are aligned with
the delivey of positive customer outcomes and reinforce the Group’s risk policy
• Open and honest culture – the Group has a strong culture of focussing on collective success, whilst still recognising individual
contribution to the Group’s peformance, and this is relected in our remuneation structure across the business, and
• Tansparency for stakeholders – the remuneation structure is designed to be easy to understand, and all aspects are clear to
employees and openly communicated to employees, shareholders, and regulators
Remuneation Policy table
This table describes the key components of the remuneation arangements for Executive Directors.
Purpose and link to stategy Opeation Oppotunity and peformance metrics
Base Salay
To attact and retain
talent by setting
base salaries at levels
appropriate for
the business.
Salaries are reviewed annually or following a
signiicant change in responsibilities.
Salay levels/increases take account of:
• Scope and responsibility of the position
• Individual peformance and efectiveness,
and experience of the individual in the role
• Aveage increase awarded across the Group
Any salay increases are applied in line with the outcome
of the review.
In respect of existing Executive Directors, it is anticipated
that increases in cash salay will not normally exceed
the increase for the geneal employee population over
the term of this Policy. More signiicant increases may
be awarded in cetain circumstances including, but not
limited to: where there has been a signiicant increase in
role size or complexity, to apply salay progression for a
newly appointed Executive Director, or where the Executive
Director’s salay has fallen signiicantly behind market.
Where increases are awarded in excess of that for the
geneal employee population, the Committee will
provide the ationale in the relevant year’s Annual Repot
on Remuneation.
Pension
To provide
retirement beneits.
The Group opeates a Personal Pension Plan,
a Deined Contribution Scheme.
This is available to all employees following
completion of their probationay period.
In the UK, the Group matches employee contributions up
to a maximum of 6% of base salay subject to an oveall
maximum employer contribution of £15,000 or provides the
equivalent value in cash. Base salay is the only element of
remuneation that is pensionable.
The pension provision and rules are the same for Executive
Directors and the main body of staf.
Other Beneits
To provide
competitive beneits.
Includes (but not limited to):
• Death in sevice scheme
• Private medical cover
• Permanent health insuance
• Relocation, at the Committee’s discretion
All beneits are non-pensionable
Beneits may vay by role.
None of the existing Executive Directors received total
taxable beneits exceeding 5% of base salay during the
most recent inancial year, and it is not anticipated that the
cost of beneits provided will exceed this level over the term
of this Policy.
The Committee retains the discretion to approve a
higher cost in exceptional circumstances (e.g., relocation),
or in circumstances driven by factors outside the
Company’s control (e.g., material increases in healthcare
insuance premiums).
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Admial Group plc Annual Repot and Accounts 2022
Purpose and link to stategy Opeation Oppotunity and peformance metrics
Discretionay Free
Share Scheme (DFSS)
To motivate and
reward longer term
peformance, aid
long term retention
of key executive
talent, use capital
eiciently, grow
proits sustainably
and futher
strengthen the
alignment of
the interests
of shareholders
and staf.
Executive Directors may be ganted awards
annually at the discretion of the Committee.
Awards may be in the form of nil or nominal
priced options or conditional shares. Awards are
normally ganted on an annual basis and vest
after a minimum of three years subject to Group
peformance and continued employment.
A two-year holding period applies to vested
awards, during which time Executive Directors
may not sell the vested awards except to cover
tax liabilities.
Awards are subject to a potential downwards
adjustment based on an assessment to take into
account of risk events which are considered to
have a material customer, regulatoy or inancial
impact over the course of the peformance period.
Awards are subject to malus and clawback
provisions, i.e., fofeiture or reduction of
unvested awards and recovey of vested awards.
Events which may lead to the application of malus
and clawback are set out in the Group’s Malus
and Clawback Famework and include material
inancial misstatement, responsibility for conduct
which results in signiicant losses, material failure
of risk management, misconduct, reputational
damage and corpoate failure.
The Remuneation Committee has discretion to
adjust the formulaic vesting outcome to ensure
the inal outcome is a fair and true relection of
underlying business peformance, both inancial
and non-inancial.
Maximum oppotunity: A maximum face value on award
of 500% of base salay applies. Threshold peformance will
result in vesting of up to 25% of the maximum award.
DFSS shares are ganted as a ixed number of shares
(subject to the quantum limits of the plan, as described
above). The number ganted is reviewed and may be
adjusted by the Committee, for example, if there has been
a signiicant change in share price.
Vesting of DFSS awards is subject to the Group’s
peformance over a three-year peformance period.
The peformance measures may include EPS growth,
ROE, relative TSR and a scorecard of Non-Financial metrics
selected by the Committee. Details of the measures,
weightings and peformance anges used for speciic
DFSS gants are included in the relevant year’s Annual
Repot on Remuneation.
The DFSS bonus
To futher align
incentive structures
with shareholder
interests through the
delivey of dividend
equivalent bonuses.
To incentivise shareholder value creation and
eicient use of capital, management paticipates
in a bonus scheme which directly links their
awards to dividends paid to shareholders. Bonus is
calculated to be equivalent to dividends that
would have been payable during the year on all
outstanding DFSS shares awarded but not vested.
The DFSS bonus is subject to a +/- 20%
adjustment based on peformance against targets
based on a set of stategic, customer and other
non-inancial metrics. Whilst the bonus may be
adjusted upwards or downwards by up to 20%
in any given year, it is not anticipated that the
adjustment will increase the Executive Directors’
remuneation on aveage over the long term.
The DFSS bonus is subject to the Group’s Malus
and Clawback Famework.
Maximum oppotunity: sum equal to the dividends payable
during the year on awarded but unvested DFSS shares,
subject also to a possible 20% upwards or downwards
adjustment based on peformance against a scorecard of
non-inancial metrics.
No bonus is payable unless dividends are payable on
Admial shares.
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Purpose and link to stategy Opeation Oppotunity and peformance metrics
Approved Free Share
Incentive Plan (SIP)
To encouage share
ownership across all
employees, using
HMRC approved
schemes for eligible
UK employees.
All eligible UK employees paticipate in the SIP
after completing a minimum 12 months’ sevice.
Gants are made twice a year based on the results
of each half year and vest after three years subject
to continued employment.
The SIP is an all-employee scheme and Executive Directors
paticipate on the same terms as other employees.
The acquisition of shares is therefore not subject to the
satisfaction of a peformance target.
Maximum oppotunity is in line with HMRC limits.
In-employment
shareholding
requirement
To align interests of
Executive Directors
with shareholders.
Guideline to be met within ive years of the later
of the introduction of the guidelines and an
Executive Director’s appointment.
400% of base salay.
Post-termination
shareholding
requirement
To futher align the
interests of Executive
Directors with
shareholders and
encouage a focus on
long-term sustainable
peformance
Shareholding required to be maintained at the
in-employment requirement (or number of shares
held at time of termination, if lower) for a period
of two years post termination.
400% of base salay (or number of shares held at time of
termination, if lower).
The Committee is satisied that the above Remuneation Policy is in the best interests of shareholders and does not promote excessive
risk-taking. The Committee retains discretion to make changes required to satisfy legal or regulatoy requirements and other non-
signiicant changes to the Remuneation Policy without reveting to shareholders.
Notes to the Remuneation Policy table
Payments from Existing Awards
Executive Directors are eligible to receive payment from any award made prior to the approval and implementation of the 2021
Remuneation Policy. This includes all outstanding awards under the previous 2015 and 2018 Remuneation Policies, or any awards made
prior to appointment to the Board. Details of any such payments will be set out in the Annual Repot on Remuneation as they arise.
Selection of Peformance Measures
Vesting under the DFSS is linked to the following inancial measures: EPS, ROE, and relative TSR.
EPS has been selected as a peformance measure as the Committee feels it is a strong indicator of both long-term shareholder return
and the underlying inancial peformance of the business. It is tansparent and highly visible to executives.
ROE has been selected as the Committee believes that a returns metric reinforces the focus on capital eiciency and delivey of strong
returns for our shareholders, thereby futher strengthening the alignment of incentives with Admial’s stategy.
Relative TSR vs. the FTSE 350 (excluding investment companies) has been selected to relect value creation for Admial’s shareholders as
compared to the geneal market.
Since the 2019 award, vesting of DFSS awards is also linked to non-inancial measures which may include stategic, customer and other
measures. The Committee believes that the additional emphasis on these measures reinforces Admial’s focus on our customers and
on other non-inancial Group priorities, whilst also more clearly demonstating alignment of Group remuneation pactices with the
requirements of Solvency II.
The speciic peformance measures and their respective weightings in respect of each DFSS award may vay to relect the stategic
priorities at the time of the award.
Peformance anges are set taking into account the Company’s stategic priorities and the economic environment in which the Company
opeates. The Committee believes that the peformance anges set are stretching and motivational, and that maximum outcomes are
available only for outstanding peformance.
Director’s Remuneation Policy
continued
190
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Remuneation Policy for Other Employees
The Company’s approach to annual salay reviews is consistent across the Group, with consideation given to the role size, complexity,
experience required, individual peformance and pay levels in compaable companies.
In geneal, the Remuneation Policy which applies to other senior executives is consistent with that for Executive Directors.
Remuneation is typically linked to Company and individual peformance in a way that reinforces shareholder value creation.
Around 4,000 employees from across the Group, including the Executive Directors, paticipate in the DFSS. The Committee determines
DFSS awards for those executives within its remit and on an aggregate basis for all other paticipants in the DFSS. For the Executive
Directors, all DFSS share awards are subject to peformance conditions. For other senior managers and employees, a propotion of awards
(anging from half to two-thirds) are subject to peformance, with peformance conditions either in line with those described above
or set based on key peformance drivers of the individual’s relevant business unit, and the remainder has no peformance conditions
attached other than the requirement that the recipient remains an employee of the Group at the date of vesting. Award sizes vay by
organisational level and an assessment of both inancial and non-inancial individual and business unit peformance.
All holders of DFSS awards receive the DFSS bonus, with the bonus for a number of senior managers being adjusted for peformance
against a scorecard of customer and other non-inancial metrics.
The Company opeates a personal pension scheme which is available to all employees once they have completed their probationay
period. For all employees, including the Executive Directors, the Company matches the employee contribution up to a maximum of 6%
of salay, subject to an oveall maximum of £15,000 or provides the equivalent value in cash.
All UK employees who have seved a minimum tenure at Admial are eligible to paticipate in the SIP on the same terms. Most overseas
employees receive an equivalent award to the UK SIP awards and these awards have no peformance measures attached.
Sevice Contacts and Leaver/Change of Control Provisions
The Company’s Policy is to limit payments upon termination of employment to pre-established contactual arangements. In the event
that the employment of an Executive Director is terminated, any compensation payable will be determined in accordance with the terms
of the sevice contact between the Company and the employee, as well as the rules of any incentive plans. Under normal circumstances,
Executive Directors are entitled to receive termination payments in lieu of notice based on base salay and compensation for loss of
beneits. The Company has the ability to pay such sums in instalments. The notice period for all Executive Directors is one year.
Executive Director Date of appointment Contact duation
Geaint Jones 13 August 2014 Rolling contact, 12-month notice period
Milena Mondini de Focatiis 11 August 2020 Rolling contact, 12-month notice period
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There is no provision in the Executive Directors’ contacts for compensation to be payable on early termination of their contact over and
above the notice period element. The Executive Directors’ sevice contacts are available to view at the Company’s registered oice.
When considering termination payments, the Committee reviews all potential incentive outcomes to ensure they are fair to both
shareholders and paticipants. The table below summarises how the awards under the DFSS and DFSS bonus scheme are typically treated
in speciic circumstances, with the inal treatment remaining subject to the Committee’s discretion:
Plan Scenario Treatment of awards Timing of vesting
DFSS Resignation. Awards lapse under most circumstances e.g.,
dismissal for cause or resignation.
n/a
Death, injuy or disability,
redundancy, retirement, or any
other reasons the Committee
may determine.
Any unvested award will be pro-ated for time
with reference to the propotion of the vesting
period remaining at termination, and peformance,
unless the Committee determines othewise.
Normal vesting date.
Change of control. Unless the Committee determines othewise,
any unvested award will be pro-ated for time
with reference to the propotion of the vesting
period remaining at change of control, and extent
to which the Committee determines that the
peformance conditions have been met or are likely
to be met at the point of change of control.
Immediately.
DFSS bonus Resignation n/a n/a
Death, injuy or disability,
redundancy, retirement, or any
other reasons the Committee
may determine.
Not payable after the event. n/a
Change of control. Not payable after the event. n/a
Salay shares
(CFO only, awards
under 2018 Policy)
Resignation. Awards lapse under most circumstances e.g.,
dismissal for cause or resignation.
n/a
Death, injuy or disability,
redundancy, retirement or any
other reasons the Committee
may determine.
Any unvested award will be pro-ated for time with
reference to the propotion of the vesting period
remaining at termination, unless the Committee
determines othewise.
Normal vesting date,
with Committee
discretion to
acceleate.
Change of control. Unless the Committee determines othewise, any
unvested award will be pro-ated for time with
reference to the propotion of the vesting period
remaining at the point of change of control.
Immediately.
For all leavers (with the exception of in the event of termination for cause), in respect of vested DFSS and vested salay share awards that
are still subject to a holding period, awards will normally be released in full at the end of the holding period, though the Committee has
discretion to determine othewise, taking into account the circumstances at the time.
Director’s Remuneation Policy
continued
192
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Non-Executive Directors
The Company has entered into letters of appointment with its Non-Executive Directors (NEDs). Summay details of terms and notice
periods are included below.
NED Term Initial date of appointment
Commencement
of current contact Notice period
Annette Cout 3 years 21 March 2012 26 April 2020 Three months
Jean Park 3 years 17 Januay 2014 17 Januay 2020 One month
Justine Robets 3 years 17 June 2016 17 June 2019 One month
Andy Crossley 3 years 27 Februay 2018 27 Februay 2021 One month
Michael Brierley 3 years 05 October 2018 05 October 2021 One month
Karen Green 3 years 14 December 2018 14 December 2021 One month
Jayapakasa Rangaswami 3 years 29 April 2020 29 April 2020 One month
Evelyn Bourke 3 years 30 April 2021 30 April 2021 One month
Bill Robets 3 years 11 June 2021 11 June 2021 One month
The NEDs are not eligible to paticipate in the SIP, DFSS or DFSS bonus scheme and do not receive any pension contributions.
Details of the 2021 Policy on NED fees are set out in the table below:
Purpose and link to stategy Opeation Oppotunity and peformance metrics
To attact and retain NEDs of the
highest calibre with experience
relevant to the Company
Fees are reviewed annually.
The Group Chair fee is determined by the
Committee after consultation with the Executive
Directors. The NED fees are determined by the
Group Chair together with the Executive Directors.
Additional fees are payable for acting as Senior
Independent Director or as Chair or member
of a Board Committee and may be payable
as appropriate in relation to other additional
responsibilities (e.g., attending meetings overseas).
Fees are paid in a mix of cash and Company shares
for the Company Chair, and in cash for other Non-
Executive Directors. The Board retains discretion
to vay the mix or determine that fees are paid
entirely in cash or Company shares.
Fee levels are set by reference to NED fees at
companies of a similar size and complexity.
In the event that there is a material
misalignment with the market or a change in the
complexity, responsibility or time commitment
required to fulil a NED role, the Board has
discretion to make an appropriate adjustment
to the fee level.
The maximum aggregate annual fee for NEDs
is capped at the limit provided for in the
Company’s Aticles of Association.
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Pay-for-Peformance: Scenario Analysis
The following chats provide an estimate of the potential future reward oppotunities for the Executive Directors, and the potential split
between the diferent elements of pay under four diferent peformance scenarios: ‘Minimum’, ‘On-target’, ‘Maximum’ and ‘Maximum
with share price growth’.
As described above, Admial’s DFSS bonus is directly aligned with dividends received by our shareholders, with an adjustment for
peformance on a selection of non-inancial measures. Whilst the Executive Directors’ inal DFSS bonus outcome may be adjusted
upwards or downwards for these measures by up to 20% in any given year, it is anticipated that the aveage adjustment over the long
term will be close to 0%.
65% 47% 25%
13%
61%
70%
35%
25%
28%
19% 63%
46%
25%
37%
27% 15%
27%
60%
10%
20%
11%
69%
DFSS Bonus
Fixed remuneration
DFSS
Minimum
Minimum
On-target
On-targetMaximum MaximumMaximum with
share price growth
Maximum with
share price growth
Geraint Jones
CFO
Milena Mondini de Focatiis
On appointment as CEO
£0
£4,000,000
£3,000,000
£2,000,000
£1,000,000
Pay-for-Peformance: Scenario Analysis
The value of DFSS awards is calculated based on the aveage share price in the last three months of 2022 £20.19 and the number of DFSS
shares awarded in 2023 (90,000 and 52,500 shares respectively).
Component ‘Minimum’ ‘On-target’ ‘Maximum’ ‘Maximum with share price growth’
Base salay Annual cash salay for 2023
Pension £15,000 annual contribution for CEO and CFO
Beneits Taxable value of annual beneits provided in 2022
DFSS • 0% vesting • 25% aveage vesting • 100% vesting • 100% vesting plus 50%
share price appreciation
DFSS bonus Based on the DFSS bonus paid in respect of 2022
Director’s Remuneation Policy
continued
194
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Approach to Remuneation Relating to New Executive
Director Appointments
External Appointments
When appointing a new Executive Director, the Committee may
make use of any of the existing components of remuneation
as set out in the Policy Table. The Committee’s policy is to set
the remuneation package for a new Executive Director in
accordance with the approved Remuneation Policy at the time
of the appointment.
In determining the appropriate remuneation for a new Executive
Director, the Committee will consider all relevant factors to ensure
that arangements are in the best interests of the Company and
its shareholders. Where an individual is appointed on an initial base
salay that is below market, any shotfall may be managed with
phased increases over a period of time, subject to the individual’s
peformance and development in the role. This may result in
above-aveage salay increases during this period.
The Committee may also make an award in respect of a
new Executive Director appointment to ‘buy out’ incentive
arangements fofeited on leaving a previous employer. In doing
so, the Committee will consider relevant factors including any
peformance conditions attached to the fofeited awards and
the likelihood of those conditions being met to ensure that the
value of the buy-out award is no greater than the fair value of
the awards it replaces. The Committee may also avail itself of
Listing Rule 9.4.2 R if appropriate in respect of buy-out incentive
arangements (i.e., if the terms of paticipation for the prospective
Executive Director are similar to all, or substantially all employees
who paticipate in the plan, then approval by ordinay resolution
of the shareholders of the listed company in geneal meeting is
not required).
Internal Appointments
Remuneation for new Executive Directors appointed by way
of internal promotion will similarly be determined in line with
the Policy for external appointees, as detailed above. Where an
individual has contactual commitments made prior to their
promotion to the Board, the Company will continue to honour
these arangements. Incentive oppotunities for below-Board
employees are typically no higher than for Executive Directors,
but measures may vay if necessay.
Other Directorships
Executive Directors are permitted to accept appointments as
Non-Executive Directors of companies with prior approval of the
Group Board. Approval will be given only where the appointment
does not present a conlict of interest with the Group’s activities,
and where the wider exposure gained will be beneicial to the
development of the individual.
Consideations of Conditions Elsewhere in the Group
The Committee considers the pay and employment conditions
elsewhere in the Group when determining remuneation for
Executive Directors.
Consideations of Shareholder Views
When determining remuneation, the Committee takes
into account best pactice guidelines issued by institutional
shareholder bodies. The Committee is open to feedback from
shareholders on the Remuneation Policy and will continue to
monitor trends and developments in corpoate governance and
market pactice to ensure the remuneation structure for our
Executive Directors remains appropriate.
Consideations of Regulatoy Requirements
The Committee regularly reviews the Remuneation Policy and
structure in the context of Solvency II remuneation guidance,
and EBA, PRA, and FCA expectations regarding the supevision
of insuance irms. The Chief Risk Oicer periodically attends
Committee meetings as pat of this process and provides
suppot to the Committee in understanding any risk-related
implications of remuneation decisions. Whilst the Remuneation
Policy includes seveal features which help ensure compliance
with current regulatoy guidance, the Committee reseves
the discretion to adjust the Remuneation Policy, and its
execution, to take into account any developments in such
regulatoy guidance.
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Admial Group plc Annual Repot and Accounts 2022
Annual Repot on Remuneation
This section of the repot provides details
of how Admial’s Remuneation Policy
was implemented in 2022 and how the
Remuneation Committee intends to implement
the proposed Remuneation Policy in 2023
(subject to shareholder approval).
Remuneation Committee Membership in 2022
The Board sets the Group’s Remuneation Policy and, through the
authority delegated to it by the Board, the Committee is responsible
for making recommendations to the Board on the implementation
of the Remuneation Policy. Its remit includes recommending
the remuneation of the Group Board Chair and the Executive
Directors; approving the remuneation of senior management;
and determining the composition of and awards made under the
peformance-related incentive schemes.
At the end of 2022 the Committee comprised Evelyn Bourke,
Jayapakasa Rangaswami , Jean Park and Michael Brierley.
The Committee met 8 times during the year.
The Group Chair, CEO, CFO and CRO are invited to meetings
where the Committee considers it appropriate to obtain their
advice on Group stategy and peformance and senior executive
pay stategy. No director is involved in deciding their own
remuneation outcome. The members of the Committee do not
have any personal inancial interests (other than shareholdings),
or any conlicts, that relate to the business of the Committee.
The Committee members do not have any day-to-day involvement
in the running of the Group.
Committee activities
During the year ended 31 December 2022, in addition to its
regular activities, the Committee also:
• Reviewed the stategic, customer and ESG metrics introduced
for adjusting of variable pay of Executive Directors
• Reviewed the implementation of non-inancial peformance
measures for a broader employee population in the UK
Insuance Business
• Reviewed the peformance anges for the inancial measures
for the 2022 DFSS and the associated engagement with
shareholders, and
• Reviewed the design of annual incentives as pat of on-going
work on the Group’s reward stategy
As mentioned in the Governance Repot, during the year
ended 31 December 2022, the Committee also peformed its
regular activities:
• Reviewed the DFSS vesting and bonus arangements for
Executive Directors, senior management and relevant staf
(Material Risk Takers) covered under Solvency II
• Reviewed workforce remuneation, including alignment of the
Group’s current remuneation structure with the Living Wage
• Reviewed Admial’s Gender Pay Gap repoting statistics
• Reviewed risk events and their impact on variable pay;
• Undetook an evaluation of the Committee’s peformance
during the year
• Reviewed the Committee’s terms of reference
• Reviewed the Group’s Malus and Clawback Famework, and
• Reviewed external remuneation trends and market conditions
Remuneation topics were discussed with employees at the
Employee Consultation Group (ECG), which met four times over
the year. Key themes discussed at the ECG were: pay in the
context of the cost-of-living crisis; the use of shares in employee
remuneation packages; weekly working hours; and the level of
company-matched pension contributions.
In Februay 2023, the Chair of the Remuneation Committee and
Group Head of Reward met with the ECG to speciically discuss
the remuneation of the Executive Directors. The following topics
were discussed: the approach to Reward at Admial; a summay
of the rules and regulations Admial is subject to; the current
arangements for the Executive Directors; and the alignment of
Executive Director remuneation with the rest of the company.
There was time allotted to listen to feedback and to answer any
questions from the ECG, during which the members of the ECG
had questions on how the reward package and pay increases for
Executive Directors are determined.
The chair of the remuneation committee wrote to the major
shareholders about the changes to the 2022 DFSS peformance
anges and had meetings with a number of shareholders.
Details are provided on page 202.
Committee Efectiveness Review
For 2022, the Committee Efectiveness Review was undetaken
externally by Bvalco. The repot obseved that the Remuneation
Committee is an efective and well run forum, with potentially
sensitive issues being dealt with eiciently, following considered
and constructive exchanges of views. Discussion was active
and open. Various potential courses of action were considered
resulting in next steps being agreed. Where debate on a question
was not closed, additional information was requested. There were
also constructive suggestions regarding how some matters may
be dealt with in a more timely manner and that an update to the
annual timetable is required.
The Committee discussed the results of the review at its meeting
in Februay 2023 and noted the content of the review.
Advisors to the Committee
During the year, in order to enable the Committee to reach
informed decisions, advice on market data and trends was
obtained from independent consultants Willis Towers Watson
(WTW). WTW repoted directly to the Committee Chair
and are signatories to and abide by the Code of Conduct
for Remuneation Consultants (which can be found at
www.remuneationconsultantsgroup.com). WTW also provided
advice to the Company in relation to capital modelling and pricing.
The fees paid to Willis Towers Watson in respect of work carried
out in relation to the Committee in 2022 (based on time and
materials) totalled £109,774.
The Committee undetakes due diligence periodically to ensure
that advisors remain independent of the Company and that
the advice provided is impatial and objective. The Committee
is satisied that the advice provided by Willis Towers Watson
is independent.
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Admial Group plc Annual Repot and Accounts 2022
Summay of Shareholder Voting at the 2022 AGM
The table below shows the results of the advisoy vote on the 2021 Annual Repot on Remuneation.
For Against Total votes cast Abstentions
Annual Repot on Remuneation
Total number of votes 228,106,529 6,306,229 234,412,758 3,952
% of votes cast 97.31% 2.69%
Total Single Figure of Remuneation for Executive Directors (audited)
The table below sets out the total single igure remuneation received by each Executive Director for the years ended 31 December 2022
and 31 December 2021:
Executive Director
1. Base
salay 2. Beneits 3. Pension
Total
ixed pay 4. SIP 5. DFSS
6. DFSS
bonus
Total
variable pay
Total
remuneation
Milena Mondini
de Focatiis
2022 £715,850 £480 £15,000 £731,330 £3,589 £1,016,647 £399,085 £1,419,321 £2,153,151
8
2021 £695,000 £454 £15,643
7
£711,097 £3,601 £713,644 £653,849 £1,371,094 £2,082,191
Geaint Jones
2022 £416,800 £480 £15,000 £432,280 £3,589 £537,942 £260,516 £802,047 £1,234,327
2021 £404,660 £454 £15,000 £420,114 £3,601 £842,327 £471,763 £1,317,691 £1,737,805
The igures have been calculated as follows:
1 Base salay: amount earned for the year.
2 Beneits: the taxable value of annual beneits received in the year.
3 Pension: the value of the Company’s contribution during the year.
4 SIP: the face value at gant.
5 DFSS: the value at vesting of shares vesting on peformance over the three-year periods ending 31 December 2022 and 31 December
2021. For the 2022 igures, given that vesting occurs after the 2022 Directors’ Remuneation Repot is inalised, the igures are based
on the aveage share price in the last three months of 2022 of £20.19. The 2021 igures have been trued up based on the actual share
price on vesting of £20.11. For 2022, unfavouable movements of £145,523 and £191,304 are included in the DFSS value, attributable
to a decrease in the share price over the vesting period for Milena Mondini de Focatiis and Geaint Jones, respectively. For 2021,
a decrease of £31,583 and £37,279 of the DFSS value is attributable to share price depreciation over the vesting period, for Milena
Mondini de Focatiis and Geaint Jones, respectively.
6 DFSS bonus: the bonus is equivalent to dividends that were paid in respect of the peformance year on all outstanding DFSS shares
awarded but not yet vested. The bonus is paid in two tanches annually:
i) in respect of H1 2022: a bonus of £301,011 was paid to Milena Mondini de Focatiis, based on 265,000 unvested shares, a scorecard
outcome of 108.18% and the interim dividend of 105p per share; and a bonus of £176,063 was paid to Geaint Jones based on
155,000 unvested shares and a scorecard outcome of 108.18% and the interim dividend of 105p per share.
ii) in respect of H2 2022, due for payment in May 2023: a bonus of £98,074 is due to Milena Mondini de Focatiis, based on 180,000
unvested shares, a scorecard outcome of 104.78% and the inal dividend of 52p per share; and a bonus of £84,453 is due to Geaint
Jones based on 155,000 unvested shares and a scorecard outcome of 104.78% and the inal dividend of 52p per share.
The payments in respect of H2 2022 are subject to completion of internal governance procedures.
7 It is an oddity of the calculation basis that the pension contribution in respect of 2021 appears to exceed the policy. Milena’s pension
arangements for April 2020 to March 2021 and April 2021 to March 2022 are £15,000, respectively, which is in line with the policy.
8 Milena Mondini de Focatiis received an Anniversay award of £2,500 during 2022 which is included in the total remuneation number.
Anniversay payments are made to all colleagues who reach signiicant milestones in their employment with the Group.
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Admial Group plc Annual Repot and Accounts 2022
Annual Repot on Remuneation
continued
Total Single Figure of Remuneation for Non-Executive Directors (audited)
The table below sets out the total single igure remuneation received by each NED for the years ended 31 December 2021 and
31 December 2020.
Total fees
2022 2021
Director Fees Taxable beneits
10,11
Fees Taxable beneits
10
Annette Cout
1
£346,084 £3,281 £336,004 £228
Karen Green
2
£103,750 £1,525 £88,000 £692
Jean Park
3
£153,000 £220 £118,000 £498
Justine Robets
4
£87,875 £1,326 £70,000 £368
Andy Crossley
5,6
£170,667 £3,197 £130,200 £1,367
Michael Brierley
5
£140,000 £1,710 £132,600 £45
Jayapakasa Rangaswami
7
£93,583 £997 £71,777 £206
Evelyn Bourke
8
£95,000 £2,860 £54,717 £316
Bill Robets
9
£75,000 £10,169 £35,947 £0
1 The 2022 fee for Annette Cout is £346,084 (a cash fee of £242,259 and a share fee of £103,825)
2 Karen Green was appointed to the Group Risk Committee efective 1 June 2022
3 Jean Park’s fees for 2022 include additional fees relating to her position as Chair of the Group Risk Committee and is in recognition of the increased time commitment required of her as a
consequence of Solvency II regulations and the Admial Internal
4 Justine Robets was appointed as interim Senior Independent Director efective 21 Februay 2022
5 The fees for Andy Crossley and Michael Brierley include additional fees in relation to their positions as Chairman of the EUI Limited Board of Directors and Admial Financial Sevices Limited Board
of Directors, respectively
6 Andy Crossley was appointed interim Chair of the Group Risk Committee efective 21 Februay 2022. An administative error has meant that Andy was paid an additional £1,633.70 in fees in
respect of 2022. This has been corrected and will relect in his 2023 fees
7 Jayapaska Rangaswami was appointed to the Group Remuneation Committee efective 21 Februay 2022
8 Evelyn Bourke was appointed as an independent Non-Executive Director and member of the Remuneation Committee on 30 April 2021. She was subsequently appointed as Chair of the
Remuneation Committee on 1 September 2021
9 Bill Robets was appointed as an independent Non-Executive Director on 11 June 2021. He was appointed to the Nomination and Governance Committee on 21 Januay 2022. An administative
error has meant that Bill was paid an additional £291.67 in fees in respect of 2022. This has been corrected and will relect in his 2023 fees
10 Taxable beneits represent those expense reimbursements relating to tavel, accommodation and subsistence in connection with the attendance at Board, Subsidiay and Committee meetings
during the year, which are deemed by HMRC to be taxable. The amounts in the table are ‘grossed-up’ to include the UK tax paid by the Company on behalf of the Non-Executive Directors.
Non-taxable expense reimbursements have not been included in the table
11 The NED taxable beneits for 2022 have returned to normal pre-pandemic levels
Incentive Outcomes for Financial Year to 31 December 2022 (audited)
DFSS Awards Vesting on Peformance to 31 December 2022
On 24 April 2020, Milena Mondini de Focatiis was ganted an award under the DFSS of 85,000 shares with a value at the date of award of
£1,961,800 (based on a gant date share price of £23.08).
On 24 September 2020, Geaint Jones was ganted an award under the DFSS of 45,000 shares with a value at the date of award of
£1,231,650 (based on a gant date share price of £27.37).
Vesting of the award was based 80% on the achievement of inancial peformance measures and 20% on a scorecard of non-
inancial measures.
Financial peformance outcomes
The peformance measures applicable to these awards are, EPS growth vs. LIBOR, TSR vs. FTSE 350 (excluding investment companies),
and ROE, weighted equally and all measured over the three-year period 1 Januay 2020 to 31 December 2022.
Over this period, the returns to our shareholders were strong, with TSR just shy of the upper quatile versus FTSE350 companies and with
ROE of 46.8%. This is in contast to EPS growth which was below the LIBOR index for the period. The combination of these shareholder
returns and EPS growth contributed to a vesting level of 56.5 percent for the inancial measures. The Committee reviewed this vesting
outcome and concluded that it was appropriate.
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Admial Group plc Annual Repot and Accounts 2022
The table below details the Company’s peformance against the peformance ange.
Peformance ange
Actual outturn
Vesting Contribution
(% of maximum)Peformance measure Threshold Maximum Vesting schedule
EPS growth vs. LIBOR Growth in line with
LIBOR
Growth of 36 points
(equivalent to 10%
p.a.) in excess of
LIBOR
10% for achieving
threshold with
staight line
relationship to
100% for maximum
peformance
Underpeformed
LIBOR by 15.92pts
0%
TSR vs. FTSE 350
(excluding investment
companies)
Median Upper quatile 25% for median,
with staight line
relationship to 100%
for upper quatile
71st percentile 89.9%
Return on Equity
(ROE)
25% 55% 25% for achieving
threshold with
staight line
relationship to
100% for maximum
peformance
46.8% 79.6%
Vesting 56.5%
Non-inancial peformance outcomes
The individual vesting contribution in relation to the non-inancial measures for Milena Mondini de Focatiis and Geaint Jones are set
out in the table below. These aggregated to an oveall ating across the 3 years of 70.20% and 70.05% respectively and have a weighted
outcome of 14.04% and 14.01%, respectively.
Futher details of the scoring for 2022 can be seen on page 200.
Oveall Vesting
The combined vesting outcomes for Milena Mondini de Focatiis and Geaint Jones can be seen in the below table.
Award Weighting Peformance outcomes Vesting (% of maximum)
DFSS Vesting Component
Milena Mondini
de Focatiis Geaint Jones
Milena Mondini
de Focatiis Geaint Jones
Milena Mondini
de Focatiis Geaint Jones
Financial peformance measures:
EPS growth vs. LIBOR, TSR vs. FTSE 350
(excluding investment companies) and
Return on Equity (ROE) 80.00% 56.50% 45.20%
Non-inancial peformance measures 20.00% 70.20% 70.05% 14.04% 14.01%
Total 100.00% 59.24% 59.21%
The Committee reviewed the vesting outcomes and concluded that they were appropriate, and that no adjustments were required.
Based on peformance and scorecard outcomes the total amount that will vest to Milena Mondini de Focatiis in April 2023 will therefore
be 59.24% (i.e., 50,354 shares), and the total amount that will vest to Geaint Jones in September 2023 will be 59.21% (i.e., 26,644 shares),
subject to their continued employment on the vesting date.
Although the 2020 DFSS awards were ganted during the pandemic, a period when the shares price were lower in many companies,
the awards ganted under the DFSS are based on a ixed number of shares. The awards ganted to Milena Mondini de Focatiis and Geaint
Jones in 2020 were not impacted by the change in the share price. The Committee have given thorough consideation to the outcomes
to satisfy themselves that it is relective of the oveall peformance of the Group.
Vested DFSS awards are subject to clawback provisions. Events which may lead to the application of clawback are set out in the Group’s
Malus and Clawback Famework and include material inancial misstatement, responsibility for conduct which results in signiicant losses,
material failure of risk management, misconduct, reputational damage or corpoate failure.
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Admial Group plc Annual Repot and Accounts 2022
DFSS bonus in Respect of 2022
In line with the Remuneation Policy, the Group paid a bonus to all holders of DFSS shares in 2022, which was equivalent to the dividend
payable on all outstanding DFSS shares awarded but not yet vested. The 2022 Bonus for Executive Directors also includes a potential +/-
20% adjustment to the DFSS bonus based on peformance of a set of non-inancial peformance metrics, which for 2022 was grouped
into three categories: Stategy, customer and ESG.
For the customer and ESG stategic pillars, relevant quantitative data was used to assess peformance and an outcome was determined.
For the stategy, the board members derived a collective view on the progress against the stategic priorities.
Details of the measures used in the scorecard and outcomes are summarised in the table below:
Outcomes (% out weighting for each categoy)
Categoy Metrics Target Max H1 H2
Stategy Oveall scoring from the board on
scorecard of measures around:
• Progress towards Admial 2.0
• Diversiication – existing non-motor
product development (both top line and
KPIs), in paticular Household and Loans
• Diversiication – development of
new products
• Progress towards deining motor
mobility stategy
16.50% 33.00% 24.75%
Customer Customer Feedback (NPS) 8.50% 17.00% 12.48% 11.42%
Customer Outcomes (CRMI) 8.50% 17.00% 12.78% 5.33%
ESG People (Trust Index) 9.00% 18.00% 9.00%
Diversity & Inclusion (Female
representation at Senior level)
3.75% 7.50% 6.00%
Inclusion (Inclusion suvey results) 3.75% 7.50% 5.44%
Total 50.00% 100.00% 70.45% 61.94%
Oveall scorecard
multiplier
100.00% 120.00% 108.18% 104.78%
Stategic outcomes have been assessed by the Board as 75% of maximum on the basis of strong progress towards Admial 2.0 and
Diversiication, with positive peformance in UK Household and Admial Money in paticular. Progress towards deining motor mobility
stategy continues apace.
Customer outcomes are taken as a weighted aveage across the Group on the basis of customer headcount. CRMI data measuring
customer outcomes tailed of in H2, with complaints data relecting pressure in the claims area for the UK Insuance business, which
had a signiicant downwards impact on the oveall outcome for the half as it is weighted at c.75%. Customer Feedback outcomes
were geneally strong over the year, with outcomes for each entity anging from 50–100% of maximum, with outcomes concentated
between 60 and 70% of maximum.
The Trust Index outcome of 84% was 2% lower than the benchmark of 86%, resulting in achievement of 50% of maximum.
Inclusion suvey results were geneally at the benchmark, with one question exceeding, resulting in an outcome of 72.50% of maximum.
The year-end igures for females in senior leadership roles was 37.20% across the Group, which resulted in an outcome of 80.00%
of maximum.
The oveall outcome of the scorecard was assessed to be a 108.18% multiplier to the DFSS bonus paid for H1 2022 and a 104.78%
multiplier to the DFSS bonus for H2 2022 (to be paid in 2023) for Milena Mondini de Focatiis and Geaint Jones.
In addition, the Executive Directors’ DFSS bonus is subject to a futher risk adjustment (downwards only) to take into account of risk
events which are considered to have a material customer, regulatoy or inancial impact.
During the year, and in addition to the above, the Committee took into account relevant trigger events as pat of the established risk
adjustment process, and determined it was not appropriate to apply a downwards adjustment on that basis.
DFSS bonus payments are subject to malus and clawback provisions.
Annual Repot on Remuneation
continued
200
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Scheme Interests Ganted in 2022 (audited)
DFSS
On 26th September 2022, Milena Mondini de Focatiis was ganted an award of 90,000 shares and Geaint Jones was ganted an award of
52,500 shares under the DFSS. This is the equivalent to £1,908,900 or 267% of Milena’s base salay and £1,113,525 or 267% of Geaint’s
cash salay respectively (based on share price of £21.21).
The three-year period over which peformance will be measured is 1 Januay 2022 to 31 December 2024. The award is eligible to vest on
the third anniversay of the date of gant i.e., September 2025, subject to peformance and to continued employment. Vested awards will
be subject to an additional two-year post-vest holding period.
The award will vest on EPS, TSR vs. FTSE 350 (excluding investment companies), ROE and a scorecard of stategic, customer and other
non-inancial measures, inclusive of customer outcomes, customer feedback, ESG, stategic measures and people metrics. There will
also be the potential for downwards adjustment subject to an assessment to take into account of risk events which are considered to
have a material customer, regulatoy or inancial impact over the course of the peformance period. The peformance conditions are
summarised in the table below.
Peformance ange
VestingPeformance measure Weighting Threshold Maximum
EPS 26.67% 120p 150p 25% for reaching
threshold, rising to
100% at maximum
peformance
TSR vs. FTSE 350 (excluding investment
companies)
26.67% Median Top Quatile 25% for median,
with staight line
relationship to 100%
for upper quatile
Return on Equity (ROE) 26.67% 20% 40% 25% for reaching
threshold, rising to
75% for reaching
stretch at 30%
ROE, rising to
100% at maximum
peformance
Scorecard non-inancial measures 20% Vesting of between 0% and 100% of this element is based on the
aggregate outcomes of the scorecards used to determine the
DFSS bonus adjustments over the 3-year peformance period.
Futher details of the aggregation of these scorecards will be
provided upon vesting
DFSS awards are subject to malus and clawback provisions, which are set out in the Group’s Malus and Clawback Famework, as outlined in
page 189.
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Admial Group plc Annual Repot and Accounts 2022
Setting the 2022 DFSS Financial Measures
The inancial measures, including the peformance anges which informs the scheme vesting are usually set prior to the ganting of
awards in the autumn each year. While not a documented policy, in the past we have often rolled the inancial measures, including the
peformance anges, from one year to the next. This approach has worked historically, but the unusual opeating environment of the
pandemic, coupled with the current business phase and our plans for growth, has led the Remuneation Committee to review the
peformance anges for 2022 to 2024.
Earnings Per Share
The assessment of peformance against our previous EPS measure compares one ixed point at the stat of the peformance period with
another ixed point at the end of the peformance period, with a threshold to maximum ange based on growth in EPS over the period of
the plan. In the 2022 DFSS this would mean comparing the end of 2021 with the end of 2024.
Due to exceptional proitability in the 2021 inancial year, the previous approach would result in peformance ange which would be vey
diicult to achieve. As such we have changed from a peformance ange based on growth against the 2021 proit to a ange based on
absolute EPS over the peformance period.
In setting the new peformance ange, the Committee have considered the extent to which our people, including the directors,
have beneited from the exceptional levels of inancial peformance in prior years. It is evident that they have not beneited from the full
outpeformance due to outcomes being in excess of the maximum vesting level. For example, EPS in the 2018 scheme which vested in
2021 was 51.3% against a maximum of 36%, meaning 15.3% was not rewarded. In the most recent scheme, which vested earlier this year,
EPS was 45.8% against the 36% maximum, resulting in 9.8% not counting towards the reward.
Return On Equity
The impact of exceptional peformance during the pandemic also impacts the ROE, resulting in a compaatively more challenging target
to achieve. In addition, the Group’s stategic approach to pursue growth through, amongst other things diversiication into new products
and markets, may impact future ROE. Hence, the peformance ange for ROE has been set by reference to our stategic intent and the
opeating environment.
Total Shareholder Return
TSR is assessed on relative peformance and so is not so obviously impacted by historic over-peformance or the opeating environment,
and as such we do not intend to make changes to either the measure or the peformance ange at this point.
Shareholder Engagement
Changing the peformance anges is not a step that the Committee took lightly. In doing so the committee ensured there was
good engagement with shareholders. UBS Brokers were engaged throughout the process of setting the new peformance anges,
attending a Remuneation Committee meeting and advising the Committee and management through the target setting process.
Following internal approval, letters were sent to our largest shareholders explaining the case for change and ofering them the oppotunity
to speak with us regarding the change. Four meetings with external shareholders were undetaken. The feedback which was provided was
geneally positive and suppotive of the changes, however, for the purpose of balance, it must be noted that in one meeting there was
negative feedback for the proposal.
SIP
In March 2022, Milena Mondini de Focatiis and Geaint Jones were ganted awards under the SIP of 72 shares with a face value of
£1,786.32, which will mature on 11 March 2025, subject to continued employment.
In August 2022 Milena Mondini de Focatiis and Geaint Jones were ganted awards under the SIP of 81 shares with a face value of
£1,802.25, which will mature on 24 August 2025, subject to continued employment.
Exit Payments (audited)
No exit payments were made to an Executive Director during the year.
Payments to Past Directors (audited)
Following stepping down from the role of CEO on 31 December 2020, David Stevens has continued as an adviser to the Group in a pat-
time capacity, with a salay of £70,033 per annum.
He also sits as a Non-Executive Director on the Board of Admial Financial Sevices Limited for which he receives no fee.
Annual Repot on Remuneation
continued
202
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Implementation of Remuneation Policy for 2023
Executive Directors
Salay, Pension and Beneits
Salaries for the Executive Directors in 2023 have been determined in line with the Remuneation Policy. Milena Mondini de Focatiis’ salay
was increased by 3.00% to £737,326 efective 1 Januay 2023 and Geaint Jones’ salay was increased by 4.00% to £433,472 efective
1 Januay 2023.
Due consideation was given to ensure these increases are below the proposed increases for employees across the Group for 2023.
The aveage pay review in 2023 is expected to be 5% as we continue to suppot our people through the impact of the cost of
living challenges.
The Executive Directors will continue to paticipate in the Group Personal Pension Plan on a consistent basis with other employees,
where employee contributions are matched up to a maximum 6% of base salay with a cap on the maximum employer contribution of
£15,000 per annum. The Company will ofer individuals a choice between pension contributions and cash in lieu. Both Executive Directors
will continue to receive beneits in line with the Policy.
DFSS
The Committee intends to make awards under the DFSS to Milena Mondini de Focatiis and Geaint Jones in September 2023 of 90,000
and 52,500 shares, respectively. The Committee will conirm the size for each of the 2023 DFSS awards closer to the award date.
In determining whether the award size should difer from the above number of shares, the Committee will consider any large share price
change over the prior year, and in paticular whether this is due to external factors out of management control. The actual 2023 DFSS
awards will be disclosed in the 2023 Annual Repot on Remuneation.
It is currently anticipated that the vesting of 2023 DFSS awards for Milena Mondini de Focatiis and Geaint Jones will continue to be
assessed across the three-year peformance period using an 80% peformance weighting on EPS, TSR vs. FTSE 350 (excluding investment
companies) and ROE, and a 20% weighting on a scorecard of stategic, customer and other non-inancial metrics. The committee will
conirm the conditions and peformance anges for the 2023 DFSS award in quater one of 2023 and will disclose them in the 2023
Annual Repot on Remuneation.
It has been an aim of the Committee to include carbon emissions targets as pat of the NFM scorecard to suppot the delivey of
the Group’s net zero targets. Good progress has been made in 2022 on verifying the Group’s scope 3 emissions. This process is nearly
complete after which targets will be decided on.
The Committee is mindful of the potential impact of the fothcoming change to the IFRS 17 accounting standard on the Group’s
repoted inancial results. At this stage the nature and degree of any such impact has not been conirmed. For DFSS awards which will
staddle the change in accounting standard, the Committee intends to set targets on the current basis. However, it will keep these under
review and apply its discretion to ensure that the peformance anges remain no more or less stretching than originally anticipated as a
result of the accounting change.
There will be the potential for downwards adjustment subject to an assessment to take account of risk events which are considered to
have a material customer, regulatoy or inancial impact over the course of the peformance period.
DFSS bonus
As in prior years, Milena Mondini de Focatiis and Geaint Jones will be eligible to receive DFSS bonus in 2023. The bonus is calculated to be
equivalent to dividends that would have been payable during the year on all outstanding DFSS shares and any salay shares awarded but
not vested. The DFSS bonus will include a +/- 20% adjustment based on peformance against a set of non-inancial peformance metrics.
The details of the metrics and any adjustment applied will be provided in the 2023 Annual Repot on Remuneation.
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Admial Group plc Annual Repot and Accounts 2022
The table below summarises the stategic, customer, ESG and other non-inancial metrics which will apply to 2023 DFSS bonus. There will
also be the potential for downwards adjustment subject to an assessment to take into account of risk events which are considered to
have a material customer, regulatoy or inancial impact over the course of the peformance period.
Stategic Pillar Measures Weighting %
Customer – 34% Customer outcomes (CRMI) 17%
Customer feedback (NPS) 17%
Stategy – 33% Oveall scoring from the board on scorecard of measures around:
• Progress towards Admial 2.0 (data and analytics goal)
• Diversiication – existing non-motor product development (both top line and KPIs), in paticular
Household and Loans
• Diversiication – development of new products
• Progress towards deining motor mobility stategy
33%
ESG – 33% Great Place to Work Trust Index 18%
Diversity 15%
Chair and Non-Executive Directors
Fees for the Board Chair and other Non-Executive Directors were reviewed in Januay 2023 having previously been last reviewed in 2022.
Increases were made, efective 1 Januay 2023, to relect the increased time commitment of these roles.
Measures 2022 fee (p.a.) 2021 fee (p.a.)
Chair
1
£356,467 £346,084
NED base fee £70,000 £70,000
Additional fee for chairing:
• Audit Committee £25,000 £25,000
• Group Risk Committee
2
£43,000 £43,000
• Remuneation Committee £25,000 £25,000
• Nomination and Governance Committee £10,000 £10,000
Additional fee for membership of:
• Audit Committee £15,000 £15,000
• Group Risk Committee £15,000 £15,000
• Remuneation Committee £12,000 £10,000
• Nomination and Governance Committee
3
£8,000 £5,000
Additional fee for being Senior Independent Director £17,000 £15,000
1 The 2023 fee for the incumbent Board Chair increased by 3% from £346,084 to £356,467 and comprises a cash fee of £249,527 and a share fee of £106,940 with which the Chair is required under
a Share Agreement entered into with the Group to use the net proceeds in two equal instalments to purchase Group shares after the Group’s Full Year Results and Half Year Results are announced
each year. Annette Cout will step down from her duties as Chair after the AGM on 27 April 2023. These arangements are to be pro-ated in line with time seved. The Board Chair does not receive
any additional fees (e.g., for committee membership) as these are included in the oveall Chair fee, for example as shown in footnote 3 below
2 The fee payable for 2023 for Chairing the Group Risk Committee continues to include an additional fee of in recognition of the increased time commitment required because of the Admial
Internal Model process. It comprises a base fee of £25,000 and an additional fee of £18,000
3 To the extent that the Group Board Chair continues to chair the Nomination and Governance Committee, no exta fee will be paid over and above the oveall Group Board Chair fee
Annual Repot on Remuneation
continued
204
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
New Group Chair
It was announced on 31st Januay 2023 that Mike Rogers is to be appointed as Admial Group Chair subject to regulatoy approval and his
appointment’s approval at the Admial AGM. His fee will be £375,000, and upon appointment Mike is required to purchase shares, which
he is to retain for his tenure. As pat of his remuneation arangements, Mike is expected to reach a shareholding of 150% of his annual
fee within three years of appointment.
CEO pay atio
The table below sets out the pay atios for the CEO for the periods ended 31 December 2021 and 31 December 2022.
Year Method Lower quatile Median Upper quatile
2022
Option A
80:1 69:1 45:1
2021 95:1 81:1 50:1
The lower quatile, median and upper quatile employees were determined using calculation methodology A which involved calculating
the actual full-time equivalent remuneation for all UK employees for 2022. From this analysis, three employees were then identiied
as representing the 25th, 50th and 75th percentile of the UK employee population. Admial chose this method as it is the preferred
approach of the government and that of investor bodies and Admial had the systems in place to undetake this method. It is also
consistent with the approach used to calculate the atios for 2018 to 2021.
The Committee has considered the pay data for the three employees identiied and believes that it fairly relects pay at the relevant
quatiles amongst our UK workforce. The three individuals identiied were full time employees during the year. None received an
exceptional incentive award which would othewise inlate their pay igures. No adjustments or assumptions were made by the
Committee with the total remuneation of these employees calculated in accordance with the methodology used to calculate the single
igure of the CEO. It should be noted that the lower quatile employees were in receipt of DFSS bonus and/or DFSS vesting in the year.
The employee pay levels for 2022 are detailed below:
CEO
P25
(lower quatile)
P50
(median)
P75
(upper quatile)
Salay £715,850 £21,451 £26,500 £38,000
Total Remuneation
1
£2,153,151 £26,775 £31,144 £47,648
1 The single igure of remuneation for the CEO includes actual salay and pension costs paid during 2022, in line with The Companies (Miscellaneous Repoting) regulations 2018. For other
employees, salay and pension costs are included on an FTE basis, in line with the legislation. While the basis of calculation difers between CEO and other employees, management considers this a
fair comparison of remuneation
The pay atio has fallen over the course of 2022. This is largely due to the fall in share price between repoting periods, which has
impacted the CEO numbers more propotionately due to the higher percentage of share-based variable pay in the CEO pay mix
compared to the wider workforce.
A signiicant propotion of the Milena Mondini de Focatiis’ remuneation is dependent on the company’s peformance and therefore it
may vay more materially, resulting in movements in the CEO pay atio from year to year moving fowards. However, the reward policies
and structures applying to the CEO are broadly aligned with those of the wider workforce and therefore consistent peformance is likely
to lead to a broadly consistent CEO pay atio.
Relative Impotance of Spend on Pay
The table below shows the percentage change in dividends and total employee remuneation spend from the inancial year ended
31 December 2021 to the inancial year ended 31 December 2022.
2022
£m
2021
£m % change
Distribution to shareholders 465 816 -43%
Employee remuneation 532 500 6%
The Directors are proposing a inal dividend for the year ended 31 December 2022 of 52 pence per share bringing the total dividend for
2022 to 157 pence per share (2021: 279 pence per share).
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Admial Group plc Annual Repot and Accounts 2022
Pay for Peformance
The following gaph sets out a comparison of Total Shareholder Return (TSR) for Admial Group plc shares with that of the FTSE 100 and
FTSE 350 indices, of which the Company is a constituent, over the ten-year period to 31 December 2022. The Directors consider these
to be the most appropriate indices against which the Company should be compared. TSR is deined as the percentage change over the
period, assuming reinvestment of income.
10 year TSR peformance: Admial vs. FTSE100 and FTSE350 indices
Growth in the value of a hypothetical £100 holding over the 10 years to 31 December 2022
Dec 12 Dec 13 Dec 14 Dec 15 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22Dec 16
Admiral FTSE 100 FTSE 350
£500
£400
£300
£200
£100
£0
CEO 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Incumbent
Heny
Engelhardt
Heny
Engelhardt
Heny
Engelhardt
Heny
Engelhardt
1
David
Stevens
2
David
Stevens
David
Stevens
David
Stevens
David
Stevens
Milena
Mondini de
Focatiis
5
Milena
Mondini de
Focatiis
CEO single igure
of remuneation
£387,546 £393,260 £397,688 £148,776 £246,023 £395,019 £403,662 £413,724 £421,285 £2,082,191
4
£2,153,151
DFSS vesting
outcome (% of
maximum)
n/a n/a n/a n/a n/a n/a n/a n/a n/a 98.57% 59.24%
6
CFO 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Incumbent
Kevin
Chidwick
Kevin
Chidwick
Geaint Jones
3
Geaint
Jones
Geaint
Jones
Geaint
Jones
Geaint
Jones
Geaint
Jones
Geaint
Jones
Geaint
Jones
Geaint
Jones
CFO single igure
of remuneation
£1,444,443 £1,204,164 £363,551 £539,704 £599,139 £1,184,445 £1,461,813 £1,773,303 £2,329,513 £1,737,805
4
£1,234,327
DFSS vesting
outcome (% of
maximum)
100% 70% 85% 69% 50% and 0% 74.20% 87.60% 88.8% 98.5% 93.08% 59.21%
6
1 Heny Engelhardt stepped down from the Board on 13 May 2016. His 2016 remuneation includes salay and beneits in respect of his sevice as CEO
2 David Stevens was appointed as the CEO on 13 May 2016. His 2016 remuneation includes salay, pension and beneits in respect of his sevice as CEO
3 Geaint Jones was appointed to the Board as CFO on 13 August 2014. His 2014 remuneation includes salay, pension and beneits in respect of his sevice as CFO, his full year DFSS and his full year
DFSS bonus
4 This igure has been trued up since the 2021 repot for the value of the 2019 DFSS based on the actual share price on vest of £20.11
5 Milena Mondini De Focatiis was appointed as the CEO on 1 Januay 2021. Her 2021 remuneation includes salay, pension and beneits in respect of her sevice as CEO
6 59.24% of Milena Mondini De Focatiis’ and 59.21% Geaint Jones’ 2020 DFSS award will vest in April 2023 and September 2023, respectively, subject to their continued employment on the
vesting date
There are no annual bonus outcomes to repot in the table as the Admial DFSS bonus is not structured as a taditional annual bonus
scheme and consequently a vesting outcome (as a percentage of max) is meaningless.
Annual Repot on Remuneation
continued
206
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Annual change of each director’s pay compared to the annual change in aveage employee pay
The following table summarises the annual percentage change of each director’s remuneation compared to the annual percentage
change of the aveage remuneation of the company’s employees, calculated on a full-time equivalent basis.
Financial year-ended 31 December 2022 2022 (% change)
Percentage change in director’s remuneation Base salay/ fees Taxable beneits DFSS bonus
Executive Directors
Milena Mondini de Focatiis* 3.00% 5.73% -38.96%
Geaint Jones 3.00% 5.73% -44.78%
Non-Executive Directors
Annette Cout 3.00% 1,399.04% N/A
Evelyn Bourke 73.62% 805.06% N/A
Karen Green 17.90% 120.387% N/A
Jean Park 29.66% -55.82% N/A
Jayapakasa Rangaswami 30.38% 383.98% N/A
Justine Robets 25.54% 260.33% N/A
Andy Crossley 31.08% 133.87% N/A
Michael Brierley 5.58% 3,700.00% N/A
Bill Robets 108.64% n/a N/A
Percentage change in employees’ remuneation 9.32% 8.52% N/A
The percentage increases for the Non-Executive Director taxable beneits relate to expenses for tavel, accommodation and subsistence
in relation to business needs, which compare 2021 which tavel to meetings was minimal, and 2022 where more normal in-person activity
has been undetaken in a return to pre-pandemic levels. Geneally, NED fees have increased in line with additional responsibilities and
time commitments undetaken over the course of the year, and in the case of Evelyn Bourke and Bill Robets are relective of pat-year
fees for 2021 vs. full year fees for 2022.
The percentage change in employee base pay is a view across the whole group, but it should be noted that a large percentage value of
these increases has geneally been concentated in colleagues at the lower end of the pay spectrum.
Dilution
The Company currently uses newly issued shares to fund the DFSS, SIP and salay shares. The Company has controls in place to ensure
that shares awarded under the incentive schemes opeated by the Company within any rolling ten-year period do not exceed 10% of the
number of ordinay shares in the capital of the Company in issue at the time of each award. It is currently anticipated that a combination
of attrition and actual vesting will result in dilution of less than 10%. As required by the rules of our share schemes, the Company will in
any event ensure that the actual dilution level does not exceed 10% in any rolling ten-year period by funding of any vested (and future)
share scheme awards as appropriate with market-purchased shares.
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Admial Group plc Annual Repot and Accounts 2022
Interests held by Directors (audited)
The Company has adopted Executive Director shareholding guidelines whereby all Executive Directors are required to acquire and retain
a beneicial shareholding in the Company equal to at least 400% of base salay (excluding salay shares, where applicable), which can
be built up over a period of ive years from the later of the introduction of the guidelines and the individual’s date of appointment.
Both Executive Directors meet the shareholding requirement.
As at 31 December 2022, the Directors held the following interests:
Director Shares held Shareholding
requirement
(% of 2022 salay)
Current
shareholding
(% of 2022 salay)
Requirement
met?
4
Beneicially
owned outright
6
Subject to
continued
employment only
Subject to
peformance
conditions
Milena Mondini de Focatiis
5
97,062
1
50,354
3
180,000 400% >400% Yes
Geaint Jones 127,566
1
31,644
2
105,000 400% >400% Yes
Annette Cout 14,760
Evelyn Bourke 7,459
Jean Park 4,000
Jayapakasa Rangaswami 0
Justine Robets 0
Andy Crossley 4,984
Michael Brierley 4,104
Karen Green 0
Bill Robets 8,860
1 Total includes SIP shares both matured and awarded.
2 Total relects shares from the 2020 DFSS award (peformance test has been applied, and award is due to vest in September 2023) and salay shares awarded in 2020
3 Total relects shares from the 2020 DFSS award (peformance test has been applied, and award is due to vest in April 2023)
4 The inal column in the above table relates to meeting the current Remuneation Policy requirement of 400% of salay, based on a share price of £21.37 at closing on 31st December 2022
5 Milena Mondini de Focatiis has 5 years from her appointment as Executive Director (11 August 2020) to meet the guideline
6 There have been no changes in the Directors’ holdings in the share capital of the Company, as set out in the table above, between 31 December 2022 and the date of this Repot
There have been no changes to Directors’ shareholdings since 31 December 2022.
None of the Directors had an interest in the shares of any subsidiay undetaking of the Company or in any signiicant contacts of
the Group.
Annual Repot on Remuneation
continued
208
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Executive Directors’ Interests in Shares under the DFSS and SIP and salay share awards (audited)
Type
At stat
of year
Awarded
during year
Vested/
matured
during year
At end
of year
Price
at award
(£)
Value at
award date
(£)
Value at
31 Dec 2022
or maturity
(£) Date of Award
Final vesting/
maturity date
Milena Mondini de Focatiis
DFSS 36,000 – 35,487 – £21.00 £756,000 £713,644 26/09/2019 26/09/2022
DFSS 85,000 – – 85,000 £23.08 £1,961,800 £1,816,450 24/04/2020 24/04/2023
DFSS 90,000 – – 90,000 £34.52 £3,106,800 £1,923,300 23/09/2021 23/09/2024
DFSS 90,000 – 90,000 £21.21 £1,908,900 £1,923,300 22/09/2022 22/09/2025
SIP 84 – 84 – £21.46 £1,803 £2,181 18/03/2019 18/03/2022
SIP 83 – 83 – £21.45 £1,780 £1,792 30/08/2019 30/08/2022
SIP 88 – – 88 £20.58 £1,811 £1,881 13/03/2020 13/03/2023
SIP 68 – – 68 £26.40 £1,795 £1,453 02/09/2020 02/09/2023
SIP 61 – – 61 £29.44 £1,796 £1,304 12/03/2021 12/03/2024
SIP 50 – – 50 £36.11 £1,806 £1,069 01/09/2021 01/09/2024
SIP – 72 – 72 £24.81 £1,786.32 £1,539 11/03/2022 11/03/2025
SIP – 81 – 81 £22.25 £1,802.25 £1,731 24/08/2022 24/08/2025
Geaint Jones
DFSS 45,000 – 41,886 – £21.00 £945,000 £842,327 26/09/2019 26/09/2022
DFSS 45,000 – – 45,000 £27.37 £1,231,650 £961,650 24/09/2020 24/09/2023
DFSS 52,500 – – 52,500 £34.52 £1,812,300 £1,121,925 23/09/2021 23/09/2024
DFSS – 52,500 – 52,500 £21.21 £1,113,525 £1,121,925 22/09/2022 22/09/2025
Salay Shares 2,500 – 2,500 – £21.46 £53,650 £64,925 18/03/2019 18/03/2022
Salay Shares 2,500 – 2,500 – £21.45 £53,625 £53,975 30/08/2019 30/08/2022
Salay Shares 2,500 – – 2,500 £20.58 £51,450 £53,425 13/03/2020 13/03/2023
Salay Shares 2,500 – – 2,500 £26.40 £66,000 £53,425 02/09/2020 02/09/2023
SIP 84 – 84 – £21.46 £1,803 £2,181 18/03/2019 18/03/2022
SIP 83 – 83 – £21.45 £1,780 £1,792 30/08/2019 30/08/2022
SIP 88 – – 88 £20.58 £1,811 £1,881 13/03/2020 13/03/2023
SIP 68 – – 68 £26.40 £1,795 £1,453 02/09/2020 02/09/2023
SIP 61 – – 61 £29.44 £1,796 £1,304 12/03/2021 12/03/2024
SIP 50 – – 50 £36.11 £1,806 £1,069 01/09/2021 01/09/2024
SIP – 72 – 72 £24.81 £1,786 £1,539 11/03/2022 11/03/2025
SIP – 81 – 81 £22.25 £1,802 £1,731 24/08/2022 24/08/2025
1 The value at maturity relates only to shares vested.
2 For SIP and Salay Shares, the price at award relects the aveage closing share price over the ive days prior to the award date
The closing price of Admial shares on 31 December 2022 was £21.37 per share.
By order of the Board,
Evelyn Bourke
Chair of the Remuneation Committee
7 March 2023
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Admial Group plc Annual Repot and Accounts 2022
Directors’ Repot
The Directors present their Annual Repot and
the audited Financial Statements for the year
ended 31 December 2022.
Information included in the Stategic Repot
As permitted by legislation, some of the matters required to be
included in the Directors’ Repot have instead been included in the
Stategic Repot as the Board considers them to be of stategic
impotance. Speciically, these are:
Disclosure Page reference
Future business developments Pages 28 to 37
Greenhouse gas emissions, energy consumption
and energy eiciency action
Pages 92
and 96
Employment of disabled persons (as deined by
the Disability Discrimination Act 1995)
Page 80
Engagement with colleagues Pages 77 to 81
Engagement with suppliers, customers and others
in a business relationship with the Company
Pages 74 to 76
and 82 to 84
Disclosure of information under Listing Rule 9.8.4
Sub-section
of Listing
Rule 9.8.4 Detail Page reference
1 Interest capitalised by the Group –
7 Allotment of shares for cash pursuant
to Group employee share schemes
Page 285
12, 13 Shareholder waiver of dividend Page 211
Group results and dividends
The proit for the year, after tax but before dividends, amounted
to £371.8 million (2021: £996.7 million). The Directors declared and
paid dividends of £658.3 million during 2022 (2021: £720.9 million).
Refer to note 12b for futher details.
The Directors have proposed a inal dividend of £155 million (52.0
pence per share). Subject to shareholders’ approval at the 2023
Annual Geneal Meeting (AGM), the inal dividend will be paid on
2 June 2023 to shareholders on the register at the close of business
on 5 May 2023.
Futher information on the Groups’ dividend policy is located in
note 12e and on page 26 of the Stategic Repot.
Research and development
Details of costs incurred in respect of research and development
can be found in note 9 on page 271.
Political donations
No political donations were made during the year.
Interest capitalised
No interest was capitalised by the Group during the year.
Signiicant contacts of material interest to shareholders
The Group considers its co-insuance and reinsuance contacts to
be signiicant and of material interest to shareholders. A number
of the Group’s contactual arangements with reinsurers include
features that, in cetain scenarios, allow for reinsurers to recover
losses incurred to date. The oveall impact of such scenarios
would not lead to an oveall net economic outlow from the
Group. No other contactual arangements are considered to be
signiicant to the running of the Group’s business.
Financial instruments
The objectives and policies for managing risks in relation to
inancial instruments held by the Group are set out in note 6 to
the Financial Statements.
Directors and their interests
The present Directors of the Company are shown on pages
130 to 135 of this Repot, whilst Directors’ interests in the share
capital of the Company are set out in the Remuneation Repot on
page 208. A list of Directors in the inancial period to 31 December
2022 is shown on page 130.
Going concern
Under Provision 30 of the 2018 UK Corpoate Governance Code,
the Board conirms that it considers the Going Concern basis
of accounting appropriate. In considering this requirement,
the Directors have taken into account the factors below.
In paticular, as pat of this assessment the Board considered
updated projections of peformance and proitability a number
of times throughout the year, with some key highlights including:
• The Group’s proit projections, including:
– Changes in premium ates and projected policy volumes
across the Group’s insuance businesses, including the impact
of the UK FCA geneal insuance pricing reform which came
into efect at the stat of 2022
– The impacts of the current elevated inlationay environment
on the cost of settling claims across all of the Group’s
insuance businesses
– The return of motor claims frequency towards pre-
pandemic levels
– Projected trends in other revenue geneated by the
Group’s insuance businesses from fees and the sale of
ancillay products
– Projected contributions to proit from businesses other than
the UK Car insuance business
– Expected trends in unemployment and inlation in the
context of credit risks and the growth of the Group’s
Loans business
– Assessment of wider market risk and investment peformance
given the market volatility in H2 2022
210
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
• The Group’s solvency position, which has been closely monitored
through periods of market volatility. The Group continues to
maintain a strong solvency position above target levels
• The adequacy of the Group’s liquidity position after considering
all of the factors noted above
• The results of business plan scenarios and stress tests on the
projected proitability, solvency and liquidity positions including
the impact of severe downside scenarios that assume severe
adverse economic, credit and tading stresses
• The regulatoy environment, focusing on regulatoy guidance
issued by the FCA and the PRA in the UK and ongoing
communications between management and regulators
• A review of the Company’s principal risks and uncetainties
and≈the assessment of emerging risks
Following consideation of the above, the Directors have
reasonable expectation that the Group has adequate resources
to continue in opeation for the foreseeable future, a period of
not less than 12 months from the date of this Repot, and that
it is therefore appropriate to adopt the going concern basis in
preparing the Financial Statements. Futher information is shown
in the viability statement on page 122.
Share Capital, AGM and related matters
Major Shareholders
Other than as stated below, as far as the Company is aware,
there are no persons with signiicant direct or indirect holdings in
the Company. Information provided to the Company pursuant to
the FCA’s Disclosure and Tansparency Rules (DTRs) is published on
a Regulatoy Information Sevice and on the Company’s website.
The Company received notiications in accordance with the FCA’s
DTRs of the following notiiable interests in the voting rights in the
Company’s issued share capital:
As at 31 December 2022
Number of Shares %
Heny Engelhardt & Diane Briere
de I’Isle 24,605,472 8.1%
Mawer Investment
Management Ltd. 21,727,558 7.2%
BlackRock Inc. 17,243,242 5.7%
Moondance Foundation 14,400,000 4.8%
Vanguard Group Holdings 12,560,052 4.1%
FMR LLC 11,711,392 3.9%
N.M. Rothschild & Sons Ltd. 9,147,150 3.0%
David & Heather Stevens 8,422,950 2.8%
Münchener Rückversicherungs-
Gesellschaft AG 5,297,781 1.7%
Notes:
1 % as at date of notiication. The DTRs require notiication when the % voting rights (through
shares and inancial instruments) held by a person reaches, exceeds of falls below an
applicable threshold speciied in the DTRs
2 Notiications received by the Company in accordance with the FCA’s DTRs in the period from
31 December 2022 to 3 March 2023 were as follows:
Shareholder Date of notiication
Number of shares as at
date of notiication
% of shares
as at date of
notiication
BlackRock Inc. 31 Januay 2023 15,617,104 5.14%
BlackRock Inc. 2 Februay 2023 15,624,439 5.14%
There are no people who hold shares carying special rights with
regard to control of the Company.
Futher information on the rights attaching to shares
under the employee share schemes are provided in the
Remuneation Repot.
Directors’ interests
The interests of Directors and Oicers and their connected
persons in the issued share capital of the Company are given in
the Remuneation Committee Repot on page 183.
Shares held in Employee Beneit Trust (EBT)
The EBT does not use its voting rights in respect of the shares it
holds in the EBT at geneal meetings, however, it may choose to
do so if recommended by the Company via a letter of wishes. If any
ofer is made to shareholders to acquire their shares, the trustee
will not be obliged to accept or reject the ofer in respect of any
shares which are at that time subject to subsisting awards but
will have regard to the interests of the award holders and will
have power to consult them to obtain their views on the ofer.
Subject to the above, the trustee may take action with respect to
any ofer it thinks fair. The trustee has waived its right to dividends
on the shares held in the trust.
Additional information for shareholders
The following provides the additional information required for
shareholders in accordance with the Takeovers Directive and the
respective UK law.
At 31 December 2022, the Company’s issued share capital
comprised a single class of shares referred to as ordinay shares.
Details of the share capital and shares issued during the year
can be found in note 12d. The rights and obligations attached
to the Company’s ordinay shares are set out in the Aticles of
Association of the Company, copies of which can be obtained
from Companies House.
If a poll is called at a geneal meeting, evey member present in
person or by proxy and entitled to vote shall have one vote for
evey ordinay share held. The notice of the geneal meeting
speciies deadlines for exercising voting rights either by proxy
notice or present in person or by proxy in relation to resolutions to
be passed at geneal meeting. All proxy votes are counted and the
numbers for, against or withheld in relation to each resolution are
announced at the Annual Geneal Meeting and published on the
Company’s website after the meeting.
There are no restrictions on the tansfer of ordinay shares in the
Company other than:
• Cetain restrictions may from time to time be imposed by laws
and regulations (for example, insider tading laws)
• Pursuant to the Listing Rules of the FCA whereby cetain
employees and Directors of the Company require the approval
of the Company to deal in the Company’s securities
211
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Admial Group plc Annual Repot and Accounts 2022
Directors’ Repot
continued
The Company has not purchased any of its own shares during
the period.
There are no agreements between the Company and its Directors
or employees providing for compensation for loss of oice or
employment (whether through resignation, purpoted redundancy
or othewise) that occur because of a takeover bid.
There are a number of agreements that alter or terminate upon
a change of control of the Company following a takeover bid,
such as commercial contacts (entered into in the normal course
of business). None are considered to be signiicant in terms of their
impact on the business of the Group as a whole.
Powers of the Company Directors
The Directors are responsible for managing the business of the
Company and may exercise all powers of the Company subject
to the provisions of relevant statutes, to any directions given
by special resolution and to the Company’s Memoandum and
Aticles. The Aticles, for example, contain speciic provisions and
restrictions concerning the Company’s power to borrow money.
Powers relating to the issuing of new shares and buyback of shares
are also included in the Aticles and such authorities are renewed
by shareholders at the Annual Geneal Meeting each year.
Power to issue shares
At the last Annual Geneal Meeting, held on 28 April 2022,
authority was given to the Directors to allot unissued relevant
securities in the Company up to a maximum of £199,929,
representing the Investment Association’s Guidelines limit of
approximately two thirds of the issued share capital as at 18 March
2022. This authority expires on the date of the Annual Geneal
Meeting to be held on 27 April 2023 and the Directors will seek to
renew this authority for the following year.
A futher special resolution passed at that meeting ganted
authority to the Directors to allot equity securities in the Company
(up to a maximum of 5% of the issued share capital of the
Company) for cash, without regard to the pre-emption provisions
of the Companies Act 2006. This authority also expires on the date
of the Annual Geneal Meeting to be held on 27 April 2023 and the
Directors will seek to renew this authority for the following year.
The Board is aware of the principles published by the Pre-Emption
Group in November 2022, and their template resolutions
published on 4 November 2022, allowing a company the ability
to seek authority over a futher 10% of the issued ordinay share
capital on a non-pre-emptive basis subject to cetain conditions.
The Board does not wish to increase the disapplication threshold
at this time but will keep this matter under review.
Appointments of Directors
The Company’s Aticles of Association (the Aticles) give the
Directors power to appoint and replace Directors. Under the
Terms of Reference of the Group Nomination and Governance
Committee, any appointment must be recommended by the
Group Nomination and Governance Committee for approval by
the Board of Directors. At the Group’s Annual Geneal Meeting
on 26 April 2022, new “Aticles” were approved by shareholders
which provide that all Directors will retire and ofer themselves
for re-election at each Annual Geneal Meeting, in accordance
with the UK Corpoate Governance Code and the Company’s
current pactice. Therefore, with the exception of Annette Cout,
all Directors will be submitting themselves for either election or
re-election by shareholders at the fothcoming AGM.
Aticles of Association
The Aticles may only be amended by special resolution of
the shareholders.
Directors’ indemnities and insuance
Directors and Oicers insuance cover is in place for all Directors
to provide cover against cetain acts or omissions on behalf of the
Company. A Deed Poll of Indemnity was executed in October 2015,
indemnifying each of the Directors and the Company Secretay,
in relation to cetain losses and liabilities that they might incur in
the course of acting as Directors of the Company. The Deed Poll
of Indemnity is categorised as qualifying third paty provisions as
deined by Section 234 of the Companies Act 2006 and remains in
force for all past and present Directors of the Company.
The Board is of the view that it is in the best interests of the Group
to attact and retain the sevices of the most able and experienced
Directors by ofering competitive terms of engagement, including
the ganting of such indemnities. Neither the Deed Poll of
Indemnity nor insuance cover would provide any coveage in
the event that a Director is proved to have acted faudulently
or dishonestly.
Annual Geneal Meeting (AGM)
It is proposed that the next AGM be held at Tŷ Admial,
David Street, Cardif, CF10 2EH on Thursday 27 April 2023 at
2.00pm, notice of which will be sent to shareholders with the
Annual Repot.
Repoting, accountability and audit
UK Corpoate Governance Code
Admial is subject to the UK Corpoate Governance Code (the
Code), published by the Financial Repoting Council (FRC) in July
2018 and available on its website, www.frc.org.uk. The Company’s
Annual Repot and Accounts, taken as a whole, addresses the
requirements of the 2018 Code.
The Code 2018 (the Code) was applicable for the Group during
the year under review, and the Group has applied the principles
and complied with the provisions of the Code except with regard
to non-compliance with provision 19 as set out in the Governance
Repot on page 136.
The Directors conirm that the Annual Repot and Accounts,
taken as a whole, is fair, balanced and understandable and
provides the information necessay for shareholders to assess
the Company’s position and peformance, business model
and stategy.
The Board is ultimately responsible for the Group’s system of
risk management and internal control and, through the Group
Audit Committee, has reviewed the efectiveness of the Group’s
internal control and risk management arangements relating
to the inancial repoting process and the principal risks facing
the business. The Board is satisied that the Group’s internal
control and risk management famework is prudent and efective
and that, through the Group Audit Committee and Group Risk
Committee, risk can be assessed, managed and assuance given
that all material controls are reviewed and monitored.
212
Corpoate Governance
Admial Group plc Annual Repot and Accounts 2022
Information on the composition and opeation of the Board and
its Committees is located in the following sections:
• Governance Repot on page 136 in respect of the Board
• Nomination and Governance Committee Repot on page 158
• Audit Committee Repot on page 171
• Group Risk Committee Repot on page 178
• Remuneation Committee Repot on page 183
The Group’s gender diversity information for the inancial year,
together with an explanation of the policies related to diversity,
are set out in the Stategic Repot on pages 77 to 81 and in the
Nomination and Governance Committee Repot on page 158.
Banches
The Group has seveal banches located in Canada, India, Fance
and Italy, through its subsidiay structure. Futher details of the
Company’s subsidiaries, associated undetakings and banches are
contained in note 12f.
Directors’ responsibilities
The Directors are responsible for preparing the Annual Repot and
the Group and Parent Company inancial statements in accordance
with applicable law and regulations.
Company law requires the Directors to prepare Group and Parent
Company inancial statements for each inancial year. Under that
law they are required to prepare the Group Financial Statements
in accordance with United Kingdom adopted international
accounting standards and applicable law and have elected to
prepare the Parent Company inancial statements in accordance
with UK Accounting Standards, including FRS 101 Reduced
Disclosure Famework.
Under company law, the Directors must not approve the Financial
Statements unless they are satisied that they give a true and
fair view of the state of afairs of the Group and Parent Company
and of their proit or loss for that period. In preparing each of the
Group and Parent Company inancial statements, the Directors are
required to:
• Select suitable accounting policies and then apply
them consistently
• Make judgements and estimates that are reasonable
and prudent
• For the Group inancial statements, state whether they have
been prepared in accordance with IFRS as adopted by the UK
• For the Parent Company inancial statements, state whether
applicable UK Accounting Standards, including FRS 101 Reduced
Disclosure Famework, have been followed, subject to any
material depatures disclosed and explained in the Parent
Company inancial statements
The Directors are responsible for keeping adequate accounting
records that are suicient to show and explain the Parent
Company’s tansactions and disclose with reasonable accuacy
at any time the inancial position of the Parent Company and
enable them to ensure that its Financial Statements comply with
the Companies Act 2006. They have geneal responsibility for
taking such steps as are reasonably open to them to safeguard
the assets of the Group and to prevent and detect faud and
other irregularities.
Under applicable law and regulations, the Directors are also
responsible for preparing a Stategic Repot, Directors’ Repot,
Directors’ Remuneation Repot and Corpoate Governance
Statement that complies with that law and those regulations.
The Directors are responsible for the maintenance and integrity
of the corpoate and inancial information included on the
Company’s website.
Legislation in the UK governing the prepaation and dissemination
of Financial Statements may difer from legislation in
other jurisdictions.
Responsibility statement
The Directors conirm that to the best of their knowledge:
• The inancial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view
of the assets, liabilities, inancial position and proit or loss of the
Company and the undetakings included in the consolidation
taken as a whole, and
• The Directors’ Repot and the Stategic Repot include a fair
review of the development and peformance of the business and
the position of the Company, and the undetakings included in
the consolidation taken as a whole, together with a description
of the principal risks and uncetainties
Disclosure of information to auditor
The Directors who held oice at the date of approval of this
Directors’ Repot conirm that, so far as they are each aware, there
is no relevant audit information of which the Company’s auditor is
unaware; and each Director has taken all the steps that they ought
to have taken as a Director to make themselves aware of any
relevant audit information and to establish that the Company’s
auditor is aware of that information.
Auditor
Following completion of the tender for the Group’s audit
sevices and the Board’s approval of the Audit Committee’s
recommendation to re-appoint the Company’s auditor,
Deloitte LLP has indicated willingness to continue in oice and
resolutions to reappoint it and to authorise the Directors to ix
its remuneation will be proposed at the AGM.
The Directors’ Repot has been approved by the Board,
For and on behalf of the Board,
Dan Caunt Geaint Jones
Company Secretay Chief Financial Oicer
7 March 2023 7 March 2023
213
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Admial Group plc Annual Repot and Accounts 2022
Contents
215 Independent Auditor’s Repot
226 Consolidated Income Statement
227 Consolidated Statement of
Comprehensive Income
228 Consolidated Statement of Financial Position
229 Consolidated Cash Flow Statement
230 Consolidated Statement of changes in Equity
231 Notes to the Financial Statements
293 Parent Company Financial Statements
296 Notes to the Parent Company
Financial Statements
304 Consolidated Financial Summay (unaudited)
Financial
Statements
Adding value.
Delivering
difference.
For our people
Admial Group plc Annual Repot and Accounts 2022
214
Financial Statements
Independent Auditor’s Repot
to the members of Admial Group plc
Repot on the audit of the inancial statements
1. Opinion
In our opinion:
• the inancial statements of Admial Group plc (the ‘Parent Company’) and its subsidiaries (the ‘Group’) give a true and fair view
of the state of the Group’s and of the Parent Company’s afairs as at 31 December 2022 and of the Group’s proit for the year
then ended;
• the Group inancial statements have been properly prepared in accordance with United Kingdom adopted international
accounting standards;
• the Parent Company inancial statements have been properly prepared in accordance with United Kingdom Geneally Accepted
Accounting Pactice, including Financial Repoting Standard 101 “Reduced Disclosure Famework”; and
• the inancial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the inancial statements which comprise:
• the Consolidated and Parent Company Income Statements;
• the Consolidated and Parent Company Statements of Comprehensive Income;
• the Consolidated and Parent Company Statements of Financial Position;
• the Consolidated Cash Flow Statement;
• the Consolidated and Parent Company Statements of Changes in Equity;
• the related notes 1 to 14 to the Group inancial statements, excluding the capital adequacy disclosures in note 12e calculated in
accordance with the Solvency II regime which are marked as unaudited; and
• the related notes 1 to 15 to the Parent Company inancial statements.
The inancial repoting famework that has been applied in the prepaation of the Group inancial statements is applicable law and
United Kingdom adopted international accounting standards. The inancial repoting famework that has been applied in the prepaation
of the Parent Company inancial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced
Disclosure Famework” (United Kingdom Geneally Accepted Accounting Pactice).
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are futher described in the auditor’s responsibilities for the audit of the inancial statements section of
our repot.
We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit
of the inancial statements in the UK, including the Financial Repoting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public
interest entities, and we have fulilled our other ethical responsibilities in accordance with these requirements. The non-audit sevices
provided to the Group for the year are disclosed in note 9c to the inancial statements. We conirm that we have not provided any non-
audit sevices prohibited by the FRC’s Ethical Standard to the Group or the Parent Company.
We believe that the audit evidence we have obtained is suicient and appropriate to provide a basis for our opinion.
3. Summay of our audit approach
Key audit matters The key audit matters that we identiied in the current year were:
• Valuation of gross insuance claims reseves;
• Inlation assumptions applied to UK motor bodily injuy claims reseves; and
• Disclosure of the impact of the adoption of IFRS 17.
Within this repot, key audit matters are identiied as follows:
Newly identiied
Increased level of risk
Similar level of risk
Decreased level of risk
Admial Group plc Annual Repot and Accounts 2022
215
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Materiality The materiality that we used for the Group inancial statements was £23.4 million which was
determined on the basis of 5% of proit before tax (‘PBT’).
Scoping We identiied ive repoting components which we determined should be subjected to full scope
audits this year.
Speciic audit procedures were completed in respect of eight futher components which, although not
inancially signiicant, did present some speciic audit risks which needed to be addressed.
The components within the scope of our audit procedures account for 98% of the Group’s proit
before tax, 99% of the Group’s revenue and 99% of the Group’s net assets.
Signiicant changes in
our approach
2022 has seen a rise in inlation which has been paticularly signiicant in impacting the geneal
insuance industy as a whole. Given these changes in the macroeconomic environment in which
the Group opeates, as well as the fact that the UK motor reseves are one of the largest and most
judgmental balances in the Group inancial statements, we have identiied an additional key audit
matter related to the inlation assumptions applied to the bodily injuy claims reseves. The inlationay
impacts on bodily injuy claims require the application of signiicant judgment as they are less closely
linked to the consumer price index (‘CPI’) and due to the longer-term nature of the Group’s exposure
(compared to propety damage claims).
We have also identiied the disclosure of the impact of the Group’s adoption of IFRS 17 as an additional
key audit matter, as this is a new and complex accounting standard which has required consideable
judgment and interpretation in its implementation.
4. Conclusions relating to going concern
In auditing the inancial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
prepaation of the inancial statements is appropriate.
Our evaluation of the directors’ assessment of the Group’s and Parent Company’s ability to continue to adopt the going concern basis of
accounting included:
• We obtained an understanding of the relevant controls relating to management‘s going concern assessment process;
• We inspected the Group ORSA (‘Own Risk and Solvency Assessment’) to suppot our understanding of the key risks faced by the Group,
its ability to continue as a going concern, and the longer-term viability of the Group;
• We evaluated management’s going concern assessment in light of the current macroeconomic uncetainties;
• We considered the available cash and cash equivalents balance at year-end of £297 million and assessed how this is forecast to
luctuate over the coming 12 months in line with management’s forecasted peformance. This analysis included assessing the amount
of headroom in the forecasts considering cash and regulatoy liquidity requirements;
• We assessed management’s reverse stress testing over the projected proitability, solvency and liquidity positions and the likelihood of
the various scenarios that could adversely impact upon the Group’s liquidity and solvency headroom; and
• We obtained and inspected correspondence between the Group and its regulators, as well as reviewed the Group Risk Committee
meeting minutes, to identify any items of interest which could potentially indicate either non-compliance with legislation or potential
litigation or regulatoy action held against the Group.
Based on the work we have peformed, we have not identiied any material uncetainties relating to events or conditions that,
individually or collectively, may cast signiicant doubt on the Group’s and Parent Company’s ability to continue as a going concern for a
period of at least twelve months from when the inancial statements are authorised for issue.
In relation to the repoting on how the Group has applied the UK Corpoate Governance Code, we have nothing material to add or daw
attention to in relation to the directors’ statement in the inancial statements about whether the directors considered it appropriate to
adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of
this repot.
Independent Auditor’s Repot
continued
to the members of Admial Group plc
Admial Group plc Annual Repot and Accounts 2022
216
Financial Statements
5. Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most signiicance in our audit of the inancial statements
of the current period and include the most signiicant assessed risks of material misstatement (whether or not due to faud) that we
identiied. These matters included those which had the greatest efect on: the oveall audit stategy, the allocation of resources in the
audit; and directing the efots of the engagement team.
These matters were addressed in the context of our audit of the inancial statements as a whole, and in forming our opinion thereon,
and we do not provide a sepaate opinion on these matters.
5.1. Valuation of gross insuance claims reseves
Key audit matter description The Group’s gross insuance claims reseves total £3,456 million as at 31 December 2022 (2021
year-end: £3,045 million). Judgments made in determining the valuation of claims reseves are by far
the most signiicant in terms of their impact on the Group’s inancial position. Setting these claims
reseves is an inherently subjective exercise and small changes in underlying assumptions may have a
material impact on the oveall year-end result repoted.
Speciically, our signiicant areas of focus are the Group’s selection of the frequency and severity
assumptions for large bodily injuy claims arising in the UK Car Insuance business. These paticular
claims result in higher individual claims reseves and are more judgmental, in terms of the development
of the ultimate losses, due to the longer-term nature of the Group’s exposure (compared to propety
damage claims).
In line with the Group’s accounting policy, management adds a margin to the actuarial best estimate to
arrive at the booked gross claims reseves. This margin relects the inherent uncetainty in estimating the
ultimate losses on claims, over and above that which can be projected actuarially based on the underlying
claims development data. This is a signiicant area of judgment and, therefore, a focus of our audit.
Speciically, the consistency of the level of prudence within the margin for the UK Car Insuance
reseves, related to large bodily injuy claims, is our key area of focus.
Refer to page 172 in the Audit Committee repot where this is included as a signiicant issue and note
3 and note 5d in the inancial statements which refer to this matter.
How the scope of our audit
responded to the key
audit matter
We obtained an understanding of and tested the opeating efectiveness of relevant controls relating
to the key actuarial assumptions identiied and the setting of the management margin applied as an
uplift on the projected actuarial best estimate.
We obtained and inspected the repots from both management, and management’s external expet
actuay, and have involved our actuarial specialists to challenge key assumptions. We also assessed the
objectivity, competence and capability of management’s expet.
We benchmarked the frequency assumptions against available industy data and considered the
comparison in the context of the risk proile of the Group’s potfolio and the year-on-year changes in
these assumptions.
We undetook a gaphical analysis of incurred development patterns to assess and challenge the
severity assumptions. We benchmarked the aveage cost per claim assumptions against available
third-paty industy data in the context of this incurred development analysis.
We inspected management’s accounting judgment papers and tested the relevant controls governing
the claims distribution model in order to assess the qualitative and quantitative suppot for the
margin held over the actuarial best estimate reseves. We analysed the consistency of prudence within
the booked reseves against previous repoting periods in the context of the underlying uncetainty in
incurred claims development and challenged management’s suppot for the booked position.
Key obsevations Based on the procedures described above, we consider that the valuation of the gross insuance claims
reseves remain appropriate and in line with the Group’s accounting policy.
Admial Group plc Annual Repot and Accounts 2022
217
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Independent Auditor’s Repot
continued
to the members of Admial Group plc
5.2. Inlation assumptions applied to UK motor bodily injuy claims reseves
Key audit matter description Given the ongoing uncetainty associated with the UK’s current and future inlationay environment,
the impact of future inlation assumptions requires the application of signiicant judgment which
has a material impact on the best estimate reseves. In the current macroeconomic environment,
there is a greater level of uncetainty associated with projecting future assumptions than in previous
periods owing to the uncetainty in forecast future inlation and the extent to which this will impact
claims inlation.
The most signiicant impact of such inlation assumptions relates to bodily injuy claims, given the
relatively low implicit inlation in historical data trends and the time it takes for such claims to develop
and settle; therefore, the efect of such inlationay pressures will not be obsevable in the claims data
for some time. This is unlike for damage claims where the impact of inlation is already rising due to
inlationay trends in historical data, their faster development, and the fact that they are more closely
linked to the Consumer Price Index (‘CPI’).
Our audit work to respond to the speciic risks associated with inlationay assumptions in the UK
motor bodily injuy claims reseves required signiicant input from our actuarial specialists and was
the focus of a signiicant amount of audit efot; therefore, we considered this a key audit matter.
Refer to page 172 in the Audit Committee repot where this is included as a signiicant issue and note
3 and note 5d in the inancial statements which refer to this matter.
How the scope of our audit
responded to the key
audit matter
We obtained an understanding of and tested the opeating efectiveness of relevant controls relating
to the key inlation assumptions identiied.
We obtained and inspected the repots from both management, and management’s external expet
actuay, and have involved our actuarial specialists to challenge the key assumptions. We also assessed
the objectivity, competence and capability of management’s expet.
We benchmarked management’s inlation assumptions against available industy data and considered
the results of this comparison.
We inspected and challenged the methodology applied in determining the impact of excess inlation
on the year-end reseves, including challenging the future inlation assumptions with reference to
current and future expectations of market wage inlation.
Key obsevations Based on the procedures described above, we consider that the inlation assumptions applied to UK
motor bodily injuy claims reseves remain appropriate and in line with the Group’s accounting policy.
Admial Group plc Annual Repot and Accounts 2022
218
Financial Statements
5.3. Disclosure of the impact of the adoption of IFRS 17
Key audit matter description With efect from 1 Januay 2023, the Group tansitioned to IFRS 17: Insuance Contacts which replaced
the existing standard for insuance contacts, IFRS 4.
The estimated tansitional impact is disclosed in Note 2 to the inancial statements for the
year-ended 31 December 2022 in accordance with the requirements of IAS 8: Accounting Poicies,
Changes in Accounting Estimates and Errors. The disclosures in 2022 are intended to provide users with
an understanding of the estimated impact of the new standard and, as a result, are more limited than
the disclosures to be included in the irst year of adoption, being 2023.
We have deemed the disclosure of the impact of the adoption of IFRS 17 a key audit matter as this is a
new and complex accounting standard which has required consideable judgment and interpretation
in its implementation. Futhermore, the new standard has introduced a number of signiicant changes,
including new requirements regarding the recognition and measurement of insuance contacts and
related account balances and classes of tansactions. In order to meet the requirements of the new
standard, signiicant changes have also been made to the systems, processes and controls with efect
from 1 Januay 2023.
How the scope of our audit
responded to the key
audit matter
While futher testing of the inancial impact will be peformed as pat of our 2023 year-end audit,
we have peformed suicient audit procedures for the purposes of assessing the disclosures made
in accordance with IAS 8.
We have obtained an understanding of and tested the opeating efectiveness of the relevant controls
governing management’s estimate of the tansitional adjustment.
We challenged the appropriateness of key technical accounting decisions, judgments, assumptions
and elections made in determining the estimate to assess compliance with the requirements of
the standard.
We involved our actuarial specialists in peforming procedures to challenge the Group’s IFRS 17
calculation models, including those related to the estimate of the fulilment cashlows and risk
adjustment which form the Liability for Incurred Claims.
We tested the journal entries resulting from the IFRS 17 model outputs which derive the Group’s IFRS
17 position as at 1 Januay 2022 from the underlying IFRS 4 Balance Sheet through reconciling to the
audited tansition adjustments.
We evaluated the disclosures related to the tansition impact against the requirements of IAS 8 and
reconciled the disclosed impact to underlying accounting records.
Key obsevations Based on the procedures described above, we consider the assumptions, methodologies and models
applied in preparing the IFRS 17 tansition disclosure to be reasonable.
Admial Group plc Annual Repot and Accounts 2022
219
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
6. Our application of materiality
6.1. Materiality
We deine materiality as the magnitude of misstatement in the inancial statements that makes it probable that the economic decisions
of a reasonably knowledgeable person would be changed or inluenced. We use materiality both in planning the scope of our audit work
and in evaluating the results of our work.
Based on our professional judgment, we determined materiality for the inancial statements as a whole as follows:
Group inancial statements Parent company inancial statements
Materiality £23.4 million (2021: £36.2 million) £4.2 million (2021: £2.9 million)
Basis for determining
materiality
5% of proit before tax (2021: 5% of proit before
tax from continuing and discontinued opeations
excluding ‘proit on sale’).
3% of two-year aveage of net assets (2021: 3%
of two-year aveage of net assets).
Rationale for the benchmark
applied
We consider proit before tax to be the critical
benchmark of the peformance of the Group and
consider this benchmark to be suitable having
compared to other benchmarks. Our materiality
equates to 1% of gross earned premium and 2%
of equity (2021: 1% of gross earned premium and
3% of equity).
The Parent Company primarily exists as the
holding company which carries investments
in Group subsidiaries and is the issuer of listed
securities. We consider that net assets is the
critical benchmark for the Company. The measure
uses a two-year aveage of net assets which we
consider appropriate given the inherent volatility
associated with the timing of dividend payments.
PBT
£469m
Group materiality
£23.4m
Component
materiality range
£2.9m to £22.2m
Audit Committee
reporting threshold
£1.1m
PBT
Group materiality
6.2. Peformance materiality
We set peformance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the inancial statements as a whole.
Group inancial statements Parent company inancial statements
Peformance materiality 70% (2021: 70%) of Group materiality 70% (2021: 70%) of Parent Company materiality
Basis and ationale for
determining peformance
materiality
In determining peformance materiality, we considered the following factors:
• our risk assessment, including our assessment of the Group’s oveall control environment and that
we consider it appropriate to rely on controls over a number of business processes; and
• our past experience of the audit, which has indicated a low number of uncorrected misstatements
identiied in prior periods.
6.3. Error repoting threshold
We agreed with the Audit Committee that we would repot to the Committee all audit diferences in excess of £1.1 million
(2021: £1.8 million), as well as diferences below that threshold that, in our view, waranted repoting on qualitative grounds.
We also repot to the Audit Committee on disclosure matters that we identiied when assessing the oveall presentation of the
inancial statements.
Independent Auditor’s Repot
continued
to the members of Admial Group plc
Admial Group plc Annual Repot and Accounts 2022
220
Financial Statements
7. An oveview of the scope of our audit
7.1. Identiication and scoping of components
The ive (2021: ive) signiicant components of the Group which were identiied in our audit planning are Admial Insuance (Gibaltar)
Limited, Admial Insuance Company Limited, EUI Limited, Admial Europe Compañía de Seguros, and the Parent Company, Admial Group plc.
Each of these signiicant components was subjected to a full-scope audit, completed to individual component materiality levels
which anged from £2.9 million to £22.2 million (2021: £2.9 million to £31.4 million) dependent upon the relative signiicance of each
individual component.
Additionally, we have completed speciic audit procedures, designed to address speciic audit risks, for eight (2021: seven)
futher components.
The components within the scope of our audit procedures account for 98% (2021: 99%) of the Group’s proit before tax,
99% (2021: 99%) of the Group’s revenue and 99% (2021: 99%) of the Group’s net assets.
For the remaining components, which were not subject to full-scope audits or speciied audit procedures, we peformed analysis
at an aggregated Group level to re-assess our evaluation that there were no signiicant risks of material misstatement in any of
these components.
92% 90%
9% 1%6%
2%
7%
1%
92%
Profit
before tax
Net assets
Full audit scope
Specified audit procedures
Review at group level
Full audit scope
Specified audit procedures
Review at group level
Full audit scope
Specified audit procedures
Review at group level
Revenue
7.2. Our consideation of the control environment
We obtained an understanding of and tested the relevant controls within the Group, including controls over the following business
processes: inancial repoting, premiums written, other revenue, claims paid, claims reseves, reinsuance and coinsuance, cash and
investments. We also identiied the key IT systems in the UK that were relevant to the audit, including the policy administation system,
claims administation systems and the data warehouse. Our audit approach was reliant upon the efectiveness of the controls over all
these business processes.
7.3. Our consideation of climate-related risks
In planning our audit, we have considered the impact of climate change on the Group’s opeations and subsequent impact on its inancial
statements. The Group sets out its assessment of the potential impact on pages 121 to 124 of the Emerging Risks section.
In conjunction with our Task Force on Climate Related Financial Disclosures (TCFD) specialists, we have held discussions with the Group to
understand management’s:
• process for identifying afected opeations, including the governance and controls over this process, and the subsequent efect on the
inancial repoting of the Group; and
• long-term stategy to respond to climate-related risks as they emerge including the efect on the Group’s forecasts.
In addition, our audit work also involved:
• challenging the completeness of the physical and tansition risks identiied and considered in the Group’s climate risk assessment and
the conclusion that there is no material impact of climate change risk on the current year inancial repoting;
• assessing the Group’s qualitative analysis which suppots the Group’s conclusion that there is no material inancial statement impact of
climate risk on expected credit losses; and
• assessing disclosures in the Annual Repot against the requirements of the TCFD famework, paagaph 8(a) of Listing Rule 9.8.6R.
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221
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Independent Auditor’s Repot
continued
to the members of Admial Group plc
We have not been engaged to provide assuance over the accuacy of TCFD disclosures set out on pages 97 to 111 of the Annual Repot.
As pat of our procedures, we are required to read these disclosures and to consider whether they are materially inconsistent with the
inancial statements or our knowledge obtained during the course of our audit. We did not identify any material inconsistencies as a
result of these procedures.
7.4. Working with other auditors
We engaged local component auditors, being Deloitte member irms in the US and Spain, to peform the audit work in these respective
territories on our behalf. We directed and supevised the work of Deloitte Spain, including through visits to the opeations in Madrid,
and remote communication and review of their work.
Due to the relative signiicance of the Group’s opeations in the US, while we did not undetake visits to the opeations in the US,
we directed and supevised the work of the component auditor by having frequent phone calls with the component audit team,
paticipating in video conferences and reviewing cetain key audit documentation remotely.
8. Other information
The other information comprises the information included in the Annual Repot other than the inancial statements and our auditor’s
repot thereon. The directors are responsible for the other information contained within the Annual Repot.
Our opinion on the inancial statements does not cover the other information and, except to the extent othewise explicitly stated in our
repot, we do not express any form of assuance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with
the inancial statements or our knowledge obtained in the course of the audit, or othewise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to
a material misstatement in the inancial statements themselves. If, based on the work we have peformed, we conclude that there is a
material misstatement of this other information, we are required to repot that fact.
We have nothing to repot in this regard.
9. Responsibilities of directors
As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the prepaation of the inancial
statements and for being satisied that they give a true and fair view, and for such internal control as the directors determine is necessay
to enable the prepaation of inancial statements that are free from material misstatement, whether due to faud or error.
In preparing the inancial statements, the directors are responsible for assessing the Group’s and the Parent Company’s ability to
continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Group or the Parent Company or to cease opeations, or have no realistic alternative
but to do so.
10. Auditor’s responsibilities for the audit of the inancial statements
Our objectives are to obtain reasonable assuance about whether the inancial statements as a whole are free from material
misstatement, whether due to faud or error, and to issue an auditor’s repot that includes our opinion. Reasonable assuance is a
high level of assuance, but is not a guaantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from faud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to inluence the economic decisions of users taken on the basis of these inancial statements.
A futher description of our responsibilities for the audit of the inancial statements is located on the FRC’s website at: www.frc.org.uk/
auditorsresponsibilities. This description forms pat of our auditor’s repot.
11. Extent to which the audit was considered capable of detecting irregularities, including faud
Irregularities, including faud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including faud. The extent to which our
procedures are capable of detecting irregularities, including faud is detailed below.
Admial Group plc Annual Repot and Accounts 2022
222
Financial Statements
11.1. Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including faud and non-compliance with laws
and regulations, we considered the following:
• the nature of the industy and sector, control environment and business peformance including the design of the Group’s
remuneation policies, key drivers for directors’ remuneation, bonus levels and peformance targets;
• the Group’s own assessment of the risks that irregularities may occur either as a result of faud or error;
• results of our enquiries of management, internal audit, the directors and the Audit Committee about their own identiication and
assessment of the risks of irregularities, including those that are speciic to the Group’s sector;
• any matters we identiied having obtained and reviewed the Group’s documentation of their policies and procedures relating to:
– identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
– detecting and responding to the risks of faud and whether they have knowledge of any actual, suspected or alleged faud;
– the internal controls established to mitigate risks of faud or non-compliance with laws and regulations; and
• the matters discussed among the audit engagement team including signiicant component audit teams and relevant internal
specialists, including tax, actuarial, inancial instruments, IT, climate, and industy specialists regarding how and where faud might
occur in the inancial statements and any potential indicators of faud.
As a result of these procedures, we considered the oppotunities and incentives that may exist within the organisation for faud and
identiied the greatest potential for faud in the following areas: valuation of gross insuance claims reseves and inlation assumptions
applied to UK motor bodily injuy claims reseves. In common with all audits under ISAs (UK), we are also required to peform speciic
procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatoy fameworks that the Group opeates in, focusing on provisions of those
laws and regulations that had a direct efect on the determination of material amounts and disclosures in the inancial statements.
The key laws and regulations we considered in this context included the UK Companies Act, Listing Rules, Solvency II regulation and
relevant tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct efect on the inancial statements but
compliance with which may be fundamental to the Group’s ability to opeate or to avoid a material penalty. These included the Group’s
opeating licence, and the Financial Conduct Authority and the Prudential Regulation Authority regulations.
11.2. Audit response to risks identiied
As a result of peforming the above, we identiied the valuation of gross insuance claims reseves and the inlation assumptions applied
to UK motor bodily injuy claims reseves as key audit matters related to the potential risk of faud. The key audit matters section
of our repot explains the matters in more detail and also describes the speciic procedures we peformed in response to those key
audit matters.
In addition to the above, our procedures to respond to the risks identiied included the following:
• reviewing the inancial statement disclosures and testing to suppoting documentation to assess compliance with provisions of
relevant laws and regulations described as having a direct efect on the inancial statements;
• enquiring of management, the Audit Committee and in-house legal counsel concerning actual and potential litigation and claims;
• peforming analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement
due to faud;
• reading minutes of meetings of those charged with governance, reviewing internal audit repots and reviewing correspondence with
HMRC, the Financial Conduct Authority and the Prudential Regulation Authority; and
• in addressing the risk of faud through management override of controls, testing the appropriateness of journal entries and other
adjustments; assessing whether the judgments made in making accounting estimates are indicative of a potential bias; and evaluating
the business ationale of any signiicant tansactions that are unusual or outside the normal course of business.
We also communicated relevant identiied laws and regulations and potential faud risks to all engagement team members including
internal specialists and signiicant component audit teams, and remained alet to any indications of faud or non-compliance with laws
and regulations throughout the audit.
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223
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Independent Auditor’s Repot
continued
to the members of Admial Group plc
Repot on other legal and regulatoy requirements
12. Opinions on other matters prescribed by the Companies Act 2006
In our opinion the pat of the Directors’ Remuneation Repot to be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undetaken in the course of the audit:
• the information given in the Stategic Repot and the Directors’ Repot for the inancial year for which the inancial statements
are prepared is consistent with the inancial statements; and
• the Stategic Repot and the Directors’ Repot have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and their environment obtained in the
course of the audit, we have not identiied any material misstatements in the Stategic Repot or the Directors’ Repot.
13. Corpoate Governance Statement
The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that pat of the
Corpoate Governance Statement relating to the Group’s compliance with the provisions of the UK Corpoate Governance Code speciied
for our review.
Based on the work undetaken as pat of our audit, we have concluded that each of the following elements of the Corpoate
Governance Statement is materially consistent with the inancial statements and our knowledge obtained during the audit:
• the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any
material uncetainties identiied set out on page 210;
• the directors’ explanation as to its assessment of the Group’s prospects, the period this assessment covers and why the period is
appropriate set out on page 122 to 124;
• the directors’ statement on fair, balanced and understandable set out on page 212;
• the Board’s conirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 114;
• the section of the Annual Repot that describes the review of efectiveness of risk management and internal control systems
set out on pages 114 to 120; and
• the section describing the work of the Audit Committee set out on page 171.
14. Matters on which we are required to repot by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to repot to you if, in our opinion:
• we have not received all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received
from banches not visited by us; or
• the Parent Company inancial statements are not in agreement with the accounting records and returns.
We have nothing to repot in respect of these matters.
14.2. Directors’ remuneation
Under the Companies Act 2006 we are also required to repot if in our opinion cetain disclosures of directors’ remuneation have not
been made or the pat of the Directors’ Remuneation Repot to be audited is not in agreement with the accounting records and returns.
We have nothing to repot in respect of these matters.
Admial Group plc Annual Repot and Accounts 2022
224
Financial Statements
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the Audit Committee, we were appointed by shareholders’ approval at the Annual Geneal Meeting on
28 April 2022 to audit the inancial statements for the year ending 31 December 2022 and subsequent inancial periods. The period of
total uninterrupted engagement including previous renewals and reappointments of the irm is seven years, covering the years ending
31 December 2016 to 31 December 2022.
15.2. Consistency of the audit repot with the additional repot to the Audit Committee
Our audit opinion is consistent with the additional repot to the Audit Committee we are required to provide in accordance with
ISAs (UK).
16. Use of our repot
This repot is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Pat 16 of the Companies Act 2006.
Our audit work has been undetaken so that we might state to the Company’s members those matters we are required to state to
them in an auditor’s repot and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company and the Company’s members as a body, for our audit work, for this repot, or for the opinions we
have formed.
As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Tansparency Rule (DTR) 4.1.14R, these inancial
statements form pat of the European Single Electronic Format (‘ESEF’) prepared Annual Financial Repot iled on the National Stoage
Mechanism of the UK FCA in accordance with the ESEF Regulatoy Technical Standard (‘ESEF RTS’). This auditor’s repot provides no
assuance over whether the annual inancial repot has been prepared using the single electronic format speciied in the ESEF RTS.
David Rush
(Senior statutoy auditor)
For and on behalf of Deloitte LLP
Statutoy Auditor
London, United Kingdom
7 March 2023
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225
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Consolidated Income Statement
For the year ended 31 December 2022
Year ended
Continuing opeations Note
31 December
2022
£m
31 December
2021
£m
Insuance premium revenue 2,705.4 2,492.3
Insuance premium ceded to reinsurers (1,794.4 ) (1,637.3 )
Net insuance premium revenue 5 911.0 855.0
Other revenue 8 318.8 314.8
Proit commission 5 170.9 304.5
Interest income 7 58.7 36.6
Interest expense 7 (12.6 ) (6.1 )
Net interest income from loans 46.1 30.5
Investment return – interest income at efective interest ate 6 52.3 40.6
Investment return – other 6 12.3 6.2
Investment return recoveable from co- and reinsurers 6 (20.0 ) (1.6 )
Net revenue 1,491.4 1,550.0
Insuance claims and claims handling expenses 5 (2,081.4 ) (1,506.8 )
Insuance claims and claims handling expenses recoveable from reinsurers 1,575.3 1,174.5
Net insuance claims 5 (506.1 ) (332.3 )
Opeating expenses and share scheme charges 9 (924.8 ) (970.1 )
Opeating expenses and share scheme charges recoveable from co- and reinsurers 9 439.3 491.1
Expected credit losses 6, 9 (18.9 ) (13.3 )
Net opeating expenses and share scheme charges (504.4 ) (492.3 )
Total expenses (1,010.5 ) (824.6 )
Opeating proit 480.9 725.4
Finance costs 6 (13.4 ) (13.7 )
Finance costs recoveable from co- and reinsurers 6 1.5 1.8
Net inance costs (11.9 ) (11.9 )
Proit before tax from continuing opeations 469.0 713.5
Taxation expense 10 (97.2 ) (130.2 )
Proit after tax from continuing opeations 371.8 583.3
Proit before tax from discontinued opeations – 11.3
Gain on disposal – 404.4
Taxation expense – (2.3 )
Proit after tax from discontinued opeations 13 – 413.4
Proit after tax from continuing and discontinued opeations 371.8 996.7
Proit after tax attributable to:
Equity holders of the parent 373.0 997.9
Non-controlling interests (NCI) (1.2 ) (1.2 )
Earnings per share – from continuing opeations
Basic 12 124.3 p 196.7 p
Diluted 12 123.7 p 196.1 p
Earnings per share – from continuing and discontinued opeations
Basic 12 124.3 p 335.5 p
Diluted 12 123.7 p 334.5 p
Dividends declared and paid (total) 12 658.3 720.9
Dividends declared and paid (per share) 12 223.0 p 247.0 p
Admial Group plc Annual Repot and Accounts 2022
226
Financial Statements
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2022
Year ended
Note
31 December
2022
£m
31 December
2021
£m
Proit for the period – from continuing and discontinued opeations 371.8 996.7
Other comprehensive income
Items that are or may be reclassiied to proit or loss
Movements in fair value reseve (255.6 ) (50.1 )
Deferred tax charge in relation to movement in fair value reseve 10 13.0 1.4
Exchange diferences on tanslation of foreign opeations 6.9 (10.4 )
Movement in hedging reseve 25.1 6.6
Deferred tax charge in relation to movement in hedging reseve (7.0 ) –
Other comprehensive income for the period, net of income tax (217.6 ) (52.5 )
Total comprehensive income for the period 154.2 944.2
Total comprehensive income for the period attributable to:
Equity holders of the parent 155.3 945.7
Non-controlling interests (1.1 ) (1.5 )
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227
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Consolidated Statement of Financial Position
As at 31 December 2022
As at
Note
31 December
2022
£m
31 December
2021
£m
ASSETS
Propety and equipment 11 89.8 103.2
Intangible assets 11 248.3 179.9
Deferred income tax 10 18.5 9.3
Corpoation tax asset 10 – 10.6
Reinsuance assets 5 2,714.0 2,176.1
Loans and advances to customers 7 823.9 556.8
Insuance and other receivables 6 1,335.8 1,208.5
Financial investments 6 3,411.2 3,742.6
Cash and cash equivalents 6 297.0 372.7
Total assets 8,938.5 8,359.7
EQUITY
Share capital 12 0.3 0.3
Share premium account 13.1 13.1
Other reseves 12 (173.7 ) 44.0
Retained earnings 1,114.5 1,348.8
Total equity attributable to equity holders of the parent 954.2 1,406.2
Non-controlling interests 1.2 2.3
Total equity 955.4 1,408.5
LIABILITIES
Insuance contact liabilities 5 4,792.5 4,215.0
Subordinated and other inancial liabilities 6 939.1 670.9
Tade and other payables 6, 11 2,158.0 1,960.0
Lease liabilities 6 88.5 105.3
Corpoation tax liability 10 5.0 –
Total liabilities 7,983.1 6,951.2
Total equity and total liabilities 8,938.5 8,359.7
The accompanying notes form pat of these inancial statements.
These financial statements were approved by the Board of Directors on 7 March 2023 and were signed on its behalf by:
Geraint Jones
Chief Financial Officer
Admiral Group plc
Company Number: 03849958
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228
Financial Statements
Consolidated Cash Flow Statement
For the year ended 31 December 2022
Year ended
Note
31 December
2022
£m
31 December
2021
£m
Proit after tax – from continuing and discontinued opeations 371.8 996.7
Adjustments for non-cash items:
– Depreciation of propety, plant and equipment and right-of-use assets 11 18.2 23.6
– Impairment/Disposal of propety, plant and equipment and right-of-use assets 11 (1.2 ) 23.8
– Amotisation and impairment of intangible assets 11 23.7 44.7
– Gain on disposal of Comparison entities held for sale 13 – (404.4 )
– Movement in expected credit loss provision 6 11.7 13.3
– Share scheme charges 9 57.3 65.2
– Accrued interest income from loans and advances to customers – (0.8 )
– Interest expense on funding for loans and advances to customers 12.6 6.1
– Investment return 6 (64.6 ) (45.2 )
– Finance costs, including unwinding of discounts on lease liabilities 13.4 12.0
– Taxation expense 10 97.2 132.5
Change in gross insuance contact liabilities 5 577.5 133.7
Change in reinsuance assets 5 (537.9 ) (92.9 )
Change in insuance and other receivables 6, 11 (129.8 ) (9.2 )
Change in loans and advances to customers 7 (280.6 ) (205.2 )
Change in tade and other payables, including tax and social security 11 198.0 (56.1 )
Cash lows from opeating activities, before movements in investments 367.3 637.8
Purchases of inancial instruments (3,198.0 ) (3,710.2 )
Proceeds on disposal/maturity of inancial instruments 3,328.3 3,397.1
Interest and investment income received 6 58.7 46.6
Cash lows from opeating activities, net of movements in investments 556.3 371.3
Taxation payments (91.2 ) (126.7 )
Net cash low from opeating activities 465.1 244.6
Cash lows from investing activities:
Purchases of propety, equipment and software 11 (98.6 ) (69.2 )
Investment in associates (2.4 ) –
Proceeds from sale of Comparison entities – 471.8
Net costs paid on sale of Comparison entities – (14.8 )
Net cash used in investing activities (101.0 ) 387.8
Cash lows from inancing activities:
Proceeds on issue of loan backed securities 6 267.8 185.9
Finance costs paid, including interest expense paid on funding for loans 6, 7 (25.3 ) (20.2 )
Repayment of lease liabilities 6 (9.2 ) (9.6 )
Equity dividends paid 12 (658.3 ) (720.9 )
Net cash used in inancing activities (425.0 ) (564.8 )
Net (decrease) / increase in cash and cash equivalents (60.9 ) 67.6
Cash and cash equivalents at 1 Januay 372.7 351.7
Cash and cash equivalents included in disposal of comparison entities – (41.3 )
Efects of changes in foreign exchange ates (14.8 ) (5.3 )
Cash and cash equivalents at 31 December 6 297.0 372.7
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229
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Consolidated Statement of Changes in Equity
For the year ended 31 December 2022
Attributable to the owners of the Company
Note
Share
capital
£m
Share
premium
account
£m
Fair value
reseve
£m
Hedging
reseve
£m
Foreign
exchange
reseve
£m
Retained
proit
and loss
£m
Total
£m
Non-
controlling
interests
£m
Total
equity
£m
Balance at 1 Januay 2021 0.3 13.1 85.4 (3.6 ) 13.1 1,004.4 1,112.7 10.7 1,123.4
Proit/(loss) for the period
– from continuing and
discontinued opeations – – – – – 997.9 997.9 (1.2 ) 996.7
Other comprehensive income
Movements in fair value reseve – – (50.1 ) – – – (50.1 ) – (50.1 )
Deferred tax credit in relation to
movement in fair value reseve 10 – – 1.4 – – – 1.4 – 1.4
Movement in hedging reseve – – – 6.6 – – 6.6 – 6.6
Currency tanslation diferences – – – – (10.1 ) – (10.1 ) (0.3 ) (10.4 )
Total comprehensive income for
the period – – (48.7 ) 6.6 (10.1 ) 997.9 945.7 (1.5 ) 944.2
Tansactions with equity holders
Dividends 12 – – – – – (720.9 ) (720.9 ) – (720.9 )
Share scheme credit 9 – – – – – 63.1 63.1 – 63.1
Deferred tax credit on share
schemes credit 10 – – – – – 6.0 6.0 – 6.0
Tansfer to gain on disposal of
assets held for sale – – – – 1.3 (2.0 ) (0.7 ) 0.1 (0.6 )
Change in ownership interests on
sale of comparison – – – – – – – (6.7 ) (6.7 )
Change in ownership interests
without a change in control – – – – – 0.3 0.3 (0.3 ) –
Total tansactions with
equity holders – – – – 1.3 (653.5 ) (652.2 ) (6.9 ) (659.1 )
As at 31 December 2021 0.3 13.1 36.7 3.0 4.3 1,348.8 1,406.2 2.3 1,408.5
Balance at 1 Januay 2022 0.3 13.1 36.7 3.0 4.3 1,348.8 1,406.2 2.3 1,408.5
Proit/(loss) for the period
– from continuing and
discontinued opeations – – – – – 373.0 373.0 (1.2 ) 371.8
Other comprehensive income
Movements in fair value reseve – – (255.6 ) – – – (255.6 ) – (255.6 )
Deferred tax credit in relation to
movement in fair value reseve 10 – – 13.0 – – – 13.0 – 13.0
Movement in hedging reseve – – – 25.1 – – 25.1 – 25.1
Deferred tax on charge in relation
to movement in hedging reseve – – – (7.0 ) – – (7.0 ) – (7.0 )
Currency tanslation diferences – – – – 6.8 – 6.8 0.1 6.9
Total comprehensive income for
the period – – (242.6 ) 18.1 6.8 373.0 155.3 (1.1 ) 154.2
Tansactions with equity holders
Dividends 12 – – – – – (658.3 ) (658.3 ) – (658.3 )
Share scheme credit 9 – – – – – 57.3 57.3 – 57.3
Deferred tax charge on share
schemes credit 10 – – – – – (6.3 ) (6.3 ) – (6.3 )
Change in ownership interests
without a change in control – – – – – – – – –
Total tansactions with
equity holders – – – – – (607.3 ) (607.3 ) – (607.3 )
As at December 2022 0.3 13.1 (205.9 ) 21.1 11.1 1,114.5 954.2 1.2 955.4
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Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2022
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
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235
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
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237
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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238
Financial Statements
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239
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
Admiral Group plc Annual Report and Accounts 2022
241
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
Admiral Group plc Annual Report and Accounts 2022
243
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
Notes to the Financial Statements
continued
For the year ended 31 December 2022
Admiral Group plc Annual Report and Accounts 2022
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Financial Statements
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247
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
Admiral Group plc Annual Report and Accounts 2022
249
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
6. Investment income and costs
Admiral Group plc Annual Report and Accounts 2022
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Financial Statements
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
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255
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
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Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Admiral Group plc Annual Report and Accounts 2022
259
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
Admiral Group plc Annual Report and Accounts 2022
261
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
6. Investment income and costs continued
Admiral Group plc Annual Report and Accounts 2022
262
Financial Statements
Notes to the Financial Statements
continued
For the year ended 31 December 2022
Admiral Group plc Annual Report and Accounts 2022
264
Financial Statements
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
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267
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
Admiral Group plc Annual Report and Accounts 2022
269
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
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Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
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Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
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277
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
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279
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
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281
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
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283
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
Admiral Group plc Annual Report and Accounts 2022
285
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
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287
Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Admiral Group plc Annual Report and Accounts 2022
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Company Overview Strategic Report Corporate Governance Financial Statements Additional Information
Notes to the Financial Statements
continued
For the year ended 31 December 2022
Admiral Group plc Annual Report and Accounts 2022
290
Financial Statements
Admial Group plc Annual Repot and Accounts 2022
291
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
292
Financial Statements
Parent Company Income Statement
Year ended
Note
31 December
2022
£m
31 December
2021
£m
Administative expenses 2 (26.3) (19.7)
Opeating loss (26.3) (19.7)
Investment and interest income 3 320.1 630.4
Impairment expense 4 (37.0) (16.0)
Gain on disposal of subsidiaries – 445.2
Interest payable 6 (12.0) (11.3)
Proit before tax 244.8 1,028.6
Taxation credit 7 5.7 3.3
Proit after tax 250.5 1,031.9
Parent Company Statement of Comprehensive Income
Year ended
31 December
2022
£m
31 December
2021
£m
Proit for the period 250.5 1,031.9
Other comprehensive income
Items that are or may be reclassiied to proit or loss
Movements in fair value reseve (20.9) (10.1)
Deferred tax in relation to movement in fair value reseve 7 5.2 0.8
Other comprehensive income for the period, net of income tax (15.7) (9.3)
Total comprehensive income for the period 234.8 1,022.6
Parent Company Financial Statements
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Parent company inancial statements
continued
Parent Company Statement of Financial Position
As at
Note
31 December
2022
£m
31 December
2021
£m
ASSETS
Investments in group undetakings 4 421.6 315.1
Intangible assets 5 0.4 0.4
Financial investments 6 167.5 557.0
Corpoation tax asset 7 4.6 3.5
Deferred tax asset 7 0.9 –
Tade and other receivables 8 184.5 187.1
Cash and cash equivalents 6 3.5 11.2
Total assets 783.0 1,074.3
EQUITY
Share capital 10 0.3 0.3
Share premium account 13.1 13.1
Fair value reseve 10 (1.6) 14.1
Retained earnings 96.7 447.3
Total equity 108.5 474.8
LIABILITIES
Subordinated and other inancial liabilities 6 224.4 224.3
Deferred tax 7 – 4.3
Tade and other payables 9 450.1 370.9
Total liabilities 674.5 599.5
Total equity and total liabilities 783.0 1,074.3
The accompanying notes form pat of these inancial statements.
These inancial statements were approved by the Board of Directors on 7 March 2023 and were signed on its behalf by:
Geaint Jones
Chief Financial Officer
Admial Group plc
Company Number: 03849958
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Financial Statements
Parent Company Statement of Changes in Equity
Note
Share
capital
£m
Share premium
account
£m
Fair value
reseve
£m
Retained
earnings
£m
Total
equity
£m
At 1 Januay 2021 0.3 13.1 23.4 73.0 109.8
Proit for the period – – – 1,031.9 1,031.9
Other comprehensive income
Movements in fair value reseve – – (10.1) – (10.1)
Deferred tax charge in relation to
movements in fair value reseve 7 – – 0.8 – 0.8
Total comprehensive income/(expense)
for the period – – (9.3) 1,031.9 1,022.6
Tansactions with equity holders
Dividends 10 – – – (720.9) (720.9)
Issues of share capital 10 – – – – –
Share scheme credit – – – 63.1 63.1
Deferred tax on share scheme credit – – – 0.2 0.2
Total tansactions with equity holders – – – (657.6) (657.6)
As at 31 December 2021 0.3 13.1 14.1 447.3 474.8
At 1 Januay 2022 0.3 13.1 14.1 447.3 474.8
Proit for the period – – – 250.5 250.5
Other comprehensive income
Movements in fair value reseve – – (20.9) – (20.9)
Deferred tax charge in relation to
movements in fair value reseve 7 – – 5.2 – 5.2
Total comprehensive income
for the period – – (15.7) 250.5 234.8
Tansactions with equity holders
Dividends 10 – – – (658.3) (658.3)
Issues of share capital 10 – – – – –
Share scheme credit – – – 57.3 57.3
Deferred tax on share scheme credit – – – (0.1) (0.1)
Total tansactions with equity holders – – – (601.1) (601.1)
As at 31 December 2022 0.3 13.1 (1.6) 96.7 108.5
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Notes to the Parent Company Financial Statements
For the year ended 31 December 2022
1. Accounting policies
1.1 Basis of prepaation
These inancial statements were prepared in accordance with Financial Repoting Standard 101 Reduced Disclosure Famework (FRS 101).
The inancial statements are prepared on the historical cost basis except for the revaluation of inancial assets classiied as fair value through
the proit or loss or as fair value through other comprehensive income. The parent company inancial statements are presented alongside
the consolidated inancial statements which can be found on page 293.
In preparing these inancial statements, the Company applies the recognition, measurement and disclosure requirements of International
Financial Repoting Standards as adopted by the EU (“Adopted IFRSs”) but makes amendments where necessay in order to comply with
Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.
1.2 Changes to accounting policies
No changes to accounting policies have been made in the period which have a material impact.
1.3 Disclosure exemptions applied under FRS 101
The Company has taken advantage of the following disclosure exemptions under FRS 101:
• FRS 101.8 (a): the requirements of paagaph 45(b) and 46 to 52 of IFRS 2 Share-based payment
• FRS 101.8 (d): the requirement of IFRS 7 Financial Instruments: Disclosure to make disclosures about inancial instruments
• FRS 101.8 (): the requirement in paagaph 38 of IAS 1 Presentation of Financial Statements to present compaative information in
respect of:
– paagaph 118(3) of IAS 38 Intangible Assets
• FRS 101.8 (g): the requirements of paagaphs 10(d), 10(), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1 Presentation of
Financial Statements to produce a cash low statement, a third balance sheet and to make an explicit and unreseved statement of
compliance with IFRSs
• FRS 101.8 (h): the requirements of IAS 7 Statements of Cash Flows to produce a cash low statement
• FRS 101.8 (i): the requirements of paagaphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to
include a list of new IFRSs that have been issued but that have yet to be applied
• FRS 101.8 (k): the requirements in IAS 24 Related Paty Disclosures to disclose related paty tansactions entered into between two or
more members of a group, provided that any subsidiay which is a paty to tansaction is wholly owned by such a member
The accounting policies set out below have, unless othewise stated, been applied consistently to all periods presented in these
inancial statements.
1.4 Going concern
The inancial statements have been prepared on a going concern basis. In considering the appropriateness of this assumption, the Board
have reviewed the Company’s projections for the next twelve months and beyond, including cash low forecasts and regulatoy
capital surpluses.
The Directors have a reasonable expectation that the Company has adequate resources to continue in opeational existence for the
foreseeable future. Thus, they continue to adopt the going concern basis in preparing the annual inancial statements.
1.5 Critical accounting judgements and key source of estimation uncetainty
In applying the Company’s accounting policies as described below, management consider there to be a key source of estimation
uncetainty within the impairment testing of the Company’s investments in group undetakings. Management recognises the estimation
involved in determining whether the carying value of the investment may be suppoted by the recoveable amount calculation based on
the ‘value in use’ of the asset (the net present value of future cash-lows arising from the asset).
In calculating the net present value of future cash-lows, Management has made assumptions over the timing and amount of underlying
proit projections of the relevant undetakings, long term growth ates in those projections and the discount ate applied to these
projections that is appropriate to relect the market’s view of the risk of the relevant investment. Sensitivity of these assumptions is also
considered in calculating the net present value and suitably incorpoated in Management’s valuations.
No key accounting judgements have been made in the process of applying the Company’s accounting policies.
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Financial Statements
1.6 Shares in Group undetakings
Shares in Group undetakings are valued at cost less any provision for impairment in value.
The requirements of IAS 36 are applied to determine whether it is necessay to recognise any impairment loss with respect to the
Company’s investments in subsidiaries. When necessay, the entire carying amount of the investment is tested for impairment in
accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoveable amount (higher of value in use and fair value
less costs of disposal) with it’s carying amount. Any impairment loss recognised forms pat of the carying amount of the investment.
Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoveable amount of the investment
subsequently increases. See note 4 to these inancial statements for futher detail.
1.7 Employee share schemes
The Company opeates a number of share schemes for employees of the Group’s subsidiaries. For equity settled schemes, the fair value
of the employee sevices received in exchange for the gant of free shares under the schemes is recognised as an increase in equity in the
Company. A corresponding intercompany charge is made to the subsidiaries whose employees receive the free shares. For futher detail,
see note 9 in the consolidated inancial statements.
1.8 Taxation
The charge for taxation is based on the proit for the year and takes into account taxation deferred because of timing diferences
between the treatment of cetain items for taxation and accounting purposes.
Deferred tax assets are recognised to the extent that they are regarded as recoveable. They are regarded as recoveable to the extent
that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suicient taxable proits from
which the future reversal of the underlying timing diferences can be deducted.
1.9 Financial assets and inancial liabilities
Under IFRS 9, classiication and subsequent measurement of inancial assets depend on:
• The Company’s business model for managing the asset; and
• The cash low chaacteristics of the asset
Based on these factors, the Company classiies its inancial assets into one of the three categories below:
• Amotised cost: assets held for collection of contactual cash lows where the cash lows represent solely payments of principal and
interest, that are not designated as FVTPL
• Fair value through other comprehensive income (FVOCI): Financial assets that are held for collection of contactual cash lows and
selling the assets, where the assets’ cash lows represent solely payments of principal and interest, and that are not designated
at FVTPL
• Fair value through proit or loss (FVTPL): Assets that do not meet the criteria for amotised cost or FVOCI, or which are designated as
FVTPL at initial recognition
In line with the above:
• Gilts and other debt securities are measured at FVOCI. Unrealised changes in the fair value of these assets are recognised in Other
Comprehensive Income (OCI). The recognition of impairment gains or losses and interest revenue are recognised in the proit or loss
• Investments measured at FVTPL are primarily money market funds. Interest income is recognised in the Income statement
The expected credit loss model is used to calculate any impairment to be recognised for all assets measured at amotised cost, as well as
inancial investments measured at FVOCI. Impairment is measured using the simpliied approach. Most of the investments held at AICL at
amotised costs and FVOCI are of investment gade.
Cash and cash equivalents include cash in hand and deposits held at call with banks. All cash and cash equivalents are measured at
amotised cost.
The Company’s inancial liabilities comprise of subordinated notes which are held at amotised cost using the efective interest method.
1.10 Intangible Assets
Purchased software licences are classiied as an intangible asset and stated in the balance sheet at a cost less accumulated amotisation.
Software is amotised from the point at which the asset is opeational and is amotised over the licence period.
1.11 Tade and other receivables
Tade and other receivables are measured at amotised cost, less any impairment.
1.12 Tade and other payables
Tade and other payables are measured at amotised cost.
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
2. Administative expenses
Included within administative expenses are re-charges of £6.1 million (2021: £4.2 million) relating to employees within the Group who
peform sevices on behalf of the Company. No staf are directly employed by the Company.
3. Investment and interest income
31 December
2022
£m
31 December
2021
£m
Dividend income from subsidiay undetakings 310.0 626.0
Interest income – other 1.3 0.3
Interest income at efective interest ate 8.8 4.1
Total investment and interest income 320.1 630.4
4. Investments in Group undetakings
£m
Investments in subsidiay undetakings:
At 1 Januay 2021 327.3
1
Additions 13.0
Disposals (9.2)
Impairment (16.0)
At 31 December 2021 315.1
Additions 143.5
Disposals –
Impairment (37.0)
At 31 December 2022 421.6
1 Of this amount, £9.2 million relates to Assets held for sale. See note 11 for futher detail
A full list of the Company’s subsidiaries is disclosed in note 12 of the consolidated inancial statements.
The additions to investments in the period of £143.5 million relate to the following:
• Futher investment in Elephant Insuance Company (‘Elephant’) (£65.7 million);
• Futher investment in Admial Europe Compañía de Seguros (‘AECS’) (£34.3 million);
• Futher investment in Able Insuance Sevices Limited (‘Able’) (£5.0 million);
• Futher investment in Admial Insuance (Gibaltar) Limited (‘AIGL’) (£30.0 million);
• Initial investment in and a futher capital contribution in Admial Financial Sevices Italia S.P.A (‘AFSI’) (£5.0m and £3.5m respectively)
An annual impairment review is peformed over the carying value of the investments in subsidiay undetakings, which involves
comparing the carying amount to the estimated recoveable amount. The recoveable amount is the greater of the fair value of the
asset less costs to sell, and the value in use of the subsidiay, calculated using cash low projections based on inancial budgets approved
by the Group Board.
Elephant
In 2022 a non-cash impairment loss of £35.2 million (2021: £14.1 million) has been recognised by the parent company in respect of its
investment in the Group’s US Insuance business Elephant. The impairment charge is to relect the loss incurred during 2022 to bring the
value of the investment to its recoveable amount, being its fair value less costs to sell (equivalent to net asset value), of £56.3 million
(2021: £25.8 million). The impairment charge is presented within the “impairment losses” line of the parent company Income Statement.
The carying value is based on fair value less costs of disposal, for which the net assets has been used as a reasonable approximation,
using tier 3 of the fair value hiearchy. Due to limitations on evidential market information and restrictions in readily available information,
net assets have been used to estimate fair value less costs to sell.
As the valuation is based on net assets, any movement in future proits will impact the investment held. The Board continues to suppot
Elephant in the achievement of its goals.
Notes to the Parent Company Financial Statements
continued
For the year ended 31 December 2022
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Financial Statements
Compare.com
In 2022 a non-cash impairment loss of £1.8 million (2021: £1.9 million) has been recognised by the parent company in respect of its
investment in the Group’s US comparison business compare.com. The impairment charge is to relect the loss incurred during 2022 to
bring the value of the investment to its recoveable amount, being its fair value less costs to sell (equivalent to the Group’s share of net
asset value), of £nil (2021: £1.8 million). The impairment charge is presented within the “impairment losses” line of the parent company
Income Statement.
The carying value is based on fair value less costs of disposal, for which the Group’s share of net assets has been used as a reasonable
approximation following a review of the carying value of those assets compared to fair value, using tier 3 of the fair value hiearchy.
5. Intangible Assets
Software
£m
Total
£m
Cost
At 1 Januay 2022 0.4 0.4
Additions – –
Disposal – –
At 31 December 2022 0.4 0.4
Amotisation
At 1 Januay 2022 – –
Charge for the year – –
Disposal – –
At 31 December 2022 – –
Net Book Value
At 31 December 2021 0.4 0.4
At 31 December 2022 0.4 0.4
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Notes to the Parent Company Financial Statements
continued
For the year ended 31 December 2022
6. Financial assets and liabilities
The Company’s inancial instruments can be analysed as follows:
31 December
2022
£m
31 December
2021
£m
Investments classiied as FVOCI
Gilts (level 1 of the IFRS 13 hiearchy) 143.6 166.4
Debt securities (level 1 of the IFRS 13 hiearchy) – 242.0
143.6 408.4
Investments classiied as FVTPL
Money market and other similar funds (level 1 of the IFRS 13 hiearchy) 23.9 148.6
23.9 148.6
Total inancial investments 167.5 557.0
Financial assets held at amotised cost
Tade and other receivables (Note 8) 184.5 187.1
Cash and cash equivalents 3.5 11.2
Total inancial assets 355.5 755.3
Financial liabilities
Subordinated notes 204.4 204.3
Other borrowings 20.0 20.0
Tade and other payables (Note 9) 450.1 370.9
Total inancial liabilities 674.5 595.2
The amotised cost carying amount of deposits and receivables is a reasonable approximation of fair value.
The table below compares the carying value of subordinated notes (as per the Statement of Financial Position) with the fair value of the
subordinated notes using a level one valuation:
31 December 2022 31 December 2021
Carying
amount
£m
Fair
value
£m
Carying
Amount
£m
Fair
Value
£m
Financial liabilities
Subordinated notes 204.4 196.4 204.3 217.1
The subordinated notes were issued on 25 July 2014 at a ixed ate of 5.5%, with a redemption date of 25 July 2024.
Total interest payable of £12.0 million (2021: £11.4 million) was recognised, of which £11.1 million (2021: £11.1 million) was in relation to
the subordinated loan notes.
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Financial Statements
7. Taxation
7a. Taxation credit
31 December
2022
£m
31 December
2021
£m
Current tax
Corpoation tax credit on proits for the year 4.6 (3.5)
Change in provision relating to prior periods 1.0 0.1
Current tax credit 5.6 (3.4)
Deferred tax
Current period deferred taxation movement 0.1 0.1
Change in provision relating to prior periods – –
Total tax credit per income statement 5.7 (3.3)
Factors afecting the total tax credit are:
31 December
2022
£m
31 December
2021
£m
Proit before tax 244.8 1,028.6
Corpoation tax thereon at efective UK corpoation tax ate of 19.0% (2021: 19.0%) 46.5 195.4
Expenses and provisions not deductible for tax purposes 6.2 4.8
Non-taxable income (58.4) (203.5)
Total tax credit for the period as above (5.7) (3.3)
At the year end, the corpoation tax asset was £4.6 million (2021: £3.5 million).
7b. Deferred income tax (asset)/ liability
Analysis of deferred tax (asset)/liability
Tax treatment
of share
schemes
£m
Capital
allowances
£m
Carried
foward losses
£m
Fair value reseve
£m
Other
diferences
£m
Total
£m
Balance brought foward at
1 Januay 2021 (0.2) – – 5.4 – 5.2
Tax treatment of share scheme charges
through income or expense 0.1 – – – – 0.1
Tax treatment of share scheme charges
through reseves (0.2) – – – – (0.2)
Movement in fair value reseve – – – (0.8) – (0.8)
Balance carried foward at
31 December 2021 (0.3) – – 4.6 – 4.3
Tax treatment of share scheme charges
through income or expense (0.1) – – – – (0.1)
Tax treatment of share scheme charges
through reseves 0.1 – – – – 0.1
Movement in fair value reseve – – – (5.2) – (5.2)
Balance carried foward at
31 December 2022 (0.3) – – (0.6) – (0.9)
The aveage efective ate of tax for 2022 is 19.0% (2021: 19.0%). An increase to the main ate of corpoation tax in the UK to 25% was
announced in the 2021 Budget and is expected to come into efect in the year ending 2023. This will increase the Company’s future tax
charge accordingly.
The deferred tax liability at 31 December 2022 has been calculated based on the ate at which each timing diference is most likely
to reverse.
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
8. Tade and other receivables
31 December
2022
£m
31 December
2021
£m
Tade and other receivables 1.2 1.6
Amounts owed by subsidiay undetakings 183.3 185.5
Total tade and other receivables 184.5 187.1
Held within amounts owed by subsidiay undetakings is £182.2 million (2021: £184.5 million) which relate to loans with formal
agreements in place between the parent and the subsidiay. The estimated credit losses of these loans has been considered and any
expected credit loss is considered to immaterial due to the assessment of credit risk being low due to the positive net value of assets
of the subsidiaries and future tading projections.
The exception to the above is the intercompany receivable from compare.com where future tading forecast indicate the intercompany
balance will not be repaid which has resulted in a provision of 50% being booked against this loan (£2.7 million).
Of the above amount, £155.1 million is due in greater than one year (2021: £151.0 million).
9. Tade and other payables
31 December
2022
£m
31 December
2021
£m
Tade and other receivables 7.2 9.5
Amounts owed by subsidiay undetakings 442.9 361.4
Total tade and other receivables 450.1 370.9
Held within amounts owed to subsidiay undetakings is £198.2 million (2021: £0.5 million) which relate to loans with formal agreements
in place between the parent and the subsidiay.
10. Share capital and reseves
Capital within the Company is comprised of share capital and the share premium account, the fair value reseve (which relects movements
in the fair value of assets classiied as FVOCI) and retained earnings. Futher information can be found within note 12 of the consolidated
inancial statements.
10a. Share capital
31 December
2022
£m
31 December
2021
£m
Authorised
500,000,000 ordinay shares of 0.1 pence 0.5 0.5
Issued, called up and fully paid
302,837,726 (2021: 299,554,720) ordinay shares of 0.1 pence 0.3 0.3
0.3 0.3
10b. Dividends
Dividends were proposed, approved and paid as follows:
31 December
2022
£m
31 December
2021
£m
Proposed March 2021 (86.0 pence per share, approved April 2021 and paid June 2021) – 250.8
Declared August 2021 (161.0 pence per share, paid October 2021) – 470.1
Proposed March 2022 (118.0 pence per share, approved April 2022 and paid June 2022) 348.1 –
Declared August 2022 (105.0 pence per share, paid October 2022) 310.2 –
Total dividends 658.3 720.9
The dividends proposed in March (approved in April) represent the inal dividends paid in respect of the 2020 and 2021 inancial years.
The dividends declared in August are interim distributions in respect of 2021 and 2022.
A inal dividend of 52.0 pence per share (£155.0 million) has been proposed in respect of the 2022 inancial year. Refer to the Chair’s
Statement and Stategic Repot for futher detail.
The proit and loss account of the Parent Company does not include any unrealised proits, therefore the amount available for
distribution by reference to these accounts is £96.7 million. Interim accounts will be laid before Companies House prior to payment of the
2022 Final Dividend in order to demonstate that proits are available for distribution.
Notes to the Parent Company Financial Statements
continued
For the year ended 31 December 2022
Admial Group plc Annual Repot and Accounts 2022
302
Financial Statements
The Group also has substantial retained proits in its subsidiay companies which are expected to low up to the Parent Company in due
course, such that surplus cash geneated can continue to be returned to shareholders.
11. Assets held for sale
On 29 December 2020, Admial Group plc (“the Group”) announced that it had reached an agreement with ZPG Comparison Sevices
Holdings UK Limited (“RVU”) that RVU will purchase the Penguin Potals Group (“Penguin Potals”, comprising online comparison potals
Confused.com, Rastreator.com and LeLynx.fr and the Group’s technology opeation Admial Technologies) and its 50% share of Preminen
Price Comparison Holdings Limited (“Preminen”). MAPFRE would also sell its 25% holding in Rastreator and 50% holding in Preminen as
pat of the tansaction.
These entities are determined to be the disposal group. Futher information can be found within the consolidated accounts.
On 30 April 2021, the Group announced that, following regulatoy and competition authority approvals, RVU had completed the purchase of
the Penguin Potals Group and acquired the Group’s 50% share of Preminen. MAPFRE also sold its 25% holding in Rastreator and 50% holding
in Preminen to RVU. The tansaction was settled in cash on completion.
12. Related paty tansactions
The Company has taken advantage of the exemptions permitted by Financial Repoting Standard 101.8 (k) and not disclosed details of
tansactions with other wholly owned group undetakings. Tansactions with group undetakings that are not wholly owned by Admial
Group plc are disclosed below.
Tansaction
Value
2022
£m
Balance at 31
December 2022
due/(to) related
paty
£m
Tansaction
Value
2021
£m
Balance at
31 December
2021 due/(to)
related paty
£m
compare.com Insuance Agency LLC (Subsidiay undetaking) 0.3 2.6 0.2 4.5
The balance owed from compare.com relates to a convetible loan issued for which interest is being accrued.
13. Guaantees and contingent liabilities
During 2018, a Special Purpose Entity (SPE) was set up in order to secure additional funding for the Admial Money business, with a
second such SPE set up in October 2021. The Company acts as guaantor for cetain opeational peformance conditions of its subsidiay,
AFSL, as seller and sevicer for the SPEs, and indemniies AFSL in respect of any amount that would have been payable by AFSL for non-
compliance with such peformance conditions.
One of the Groups’ previously owned subsidiaries was subject to a Spanish Tax Audit which concluded with the Tax Authority denying the
application of the VAT exemption relating to insuance intermediay sevices. The Company has appealed this decision via the Spanish
Couts and is conident in defending its position which is, in its view, in line with the EU Directive and is also consistent with the way
similar supplies are treated throughout Europe. Whilst the Company is no longer pat of the Admial Group, the contingent liability which
the Company is exposed to has been indemniied by the Admial Group up to a cap of £22 million.
A number of the Group’s contactual arangements with reinsurers include features that, in cetain scenarios, allow for reinsurers to
recover losses incurred to date. The oveall impact of such scenarios would not lead to an oveall net economic outlow from Admial
Group plc.
14. Post balance sheet events
No events have occurred since the repoting date that materially impact these inancial statements.
On 4 March 2023, the Group reached an agreement with Insurify, Inc. (“Insurify”) whereby, Insurify will purchase 100% of the shares of
Inspop USA, LLC (“Compare”) from the Group and Compare’s minority shareholders, in return for a minority shareholding in Insurify.
The total tansaction value, including amounts attributable to minority shareholders is immaterial based on an assessment of the fair
value of shares in Insurify and related options to be received as consideation, as at the date of the agreement. The Group will not receive
any cash consideation. As at 31 December 2022, the net assets of Compare and the carying value of the Group parent company’s
investment in Compare net of impairment provisions, were both £nil.
The tansaction is expected to complete during the irst half of 2023 and is subject to regulatoy approval.
15. Continued application of Financial Repoting Standard (FRS) 101 – Reduced Disclosure Famework
Following the irst time application of FRS 101 Reduced Disclosure Famework in 2015, the Board considers that it is in the best interests
of the Group for Admial Group plc to continue to apply the FRS 101 Reduced Disclosure Famework in future periods. A shareholder or
shareholders holding in aggregate 5% or more of the total allotted shares in Admial Group plc may seve objections to the use of the
disclosure exemptions on Admial Group plc, in writing, to its registered oice (Tŷ Admial, David Street, Cardif CF10 2EH) no later than
30 June 2022.
Admial Group plc Annual Repot and Accounts 2022
303
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Consolidated Financial Summay (unaudited)
Basis of prepaation
The igures below are as stated in the Group inancial statements preceding this inancial summay and issued previously. Only selected
lines from the income statement and balance sheet have been included.
Income statement
2022
£m
2021
£m
2020
£m
2019
*1
£m
2018
£m
Total premiums 3243.1 3,098.7 2,957.2 2,938.6 2,766.4
Net insuance premium revenue 911.0 855.0 751.6 709.4 671.8
Other Revenue 364.9 345.3 359.0 348.8 460.6
Proit commission 170.9 304.5 134.0 114.9 93.2
Investment and interest income 44.6 45.2 60.7 35.7 36.0
Net revenue 1491.4 1,550.0 1,305.3 1,208.8 1,261.6
Net insuance claims (506.1) (332.3) (293.2) (359.3) (350.1)
Net expenses (504.4) (492.3) (391.6) (331.9) (424.0)
Opeating proit 480.9 725.4 620.5 517.6 487.5
Net inance costs (11.9) (11.9) (12.3) (12.5) (11.3)
Proit before tax from continuing opeations 469.0 713.5 608.2 505.1 –
Proit before tax from discontinued opeations – 415.7 29.4 17.5 –
Proit before tax from continuing and discontinued
opeations 469.0 1,129.2 637.6 522.6 476.2
*1 Re-presented from inancial year 2019 to relect discontinued opeations
Balance sheet
2022
£m
2021
£m
2020
*1
£m
2019
£m
2018
£m
Propety and equipment 89.8 103.2 146.3 154.4 28.1
Intangible assets 248.3 179.9 167.9 160.3 162.0
Deferred income tax 18.5 9.3 3.3 – 0.2
Corpoation tax asset – 10.6 17.9 – –
Reinsuance assets 2714.0 2,176.1 2,083.2 2,071.7 1,883.5
Insuance and other receivables 1335.8 1,208.5 1,200.2 1,227.7 1,082.0
Loans and advances to customers 823.9 556.8 359.8 455.1 300.2
Financial investments 3411.2 3,742.6 3,506.0 3,234.5 2,969.7
Cash and cash equivalents 297.0 372.7 351.7 281.7 376.8
Total assets 8938.5 8,359.7 7,836.3 7,585.4 6,802.5
Equity 955.4 1,408.5 1,123.4 918.6 771.1
Insuance contacts 4792.5 4,215.0 4,081.3 3,975.0 3,736.4
Subordinated and other inancial liabilities 939.1 670.9 488.6 530.1 444.2
Tade and other payables 2158.0 1,960.0 2,016.1 1,975.9 1,801.5
Lease liabilities 88.5 105.3 126.9 137.1 –
Deferred income tax – – – 0.4 –
Current tax liabilities 5.0 – – 48.3 49.3
Total equity and total liabilities 8938.5 8,359.7 7,836.3 7,585.4 6,802.5
*1 Balance sheet is shown on a total group basis (including discontinued opeations)
Admial Group plc Annual Repot and Accounts 2022
304
Financial Statements
Adding value.
Delivering
difference.
For our
shareholders
Admial Group plc Annual Repot and Accounts 2022
305
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Contents
306 Glossay
Additional
Information
Glossay
Alternative Peformance Measures
Throughout this repot, the Group uses a number of Alternative Peformance Measures (APMs); measures that are not required or
commonly repoted under International Financial Repoting Standards or the Geneally Accepted Accounting Principles (GAAP) under
which the Group prepares its inancial statements.
These APMs are used by the Group, alongside GAAP measures, for both internal peformance analysis and to help shareholders and
other users of the Annual Repot and inancial statements to better understand the Group’s peformance in the period in comparison to
previous periods and the Group’s competitors.
The table below deines and explains the primay APMs used in this repot. Financial APMs are usually derived from inancial statement
items and are calculated using consistent accounting policies to those applied in the inancial statements subject to cetain adjustments
as explained in this glossay. Non-inancial KPIs incorpoate information that cannot be derived from the inancial statements but provide
futher insight into the peformance and inancial position of the Group.
APMs may not necessarily be deined in a consistent manner to similar APMs used by the Group’s competitors. They should be considered
as a supplement ather than a substitute for GAAP measures.
Turnover Turnover is deined as total premiums written (as below), other revenue and income from Admial Money. It is
reconciled to inancial statement line items in note 14a to the inancial statements.
This measure has been presented by the Group in evey Annual Repot since it became a listed Group in 2004.
It relects the total value of the revenue geneated by the Group and analysis of this measure over time provides
a clear indication of the size and growth of the Group.
The measure was developed as a result of the Group’s business model. The UK Car insuance business has
historically shared a signiicant propotion of the risks with Munich Re, a third-paty reinsuance Group, through
a co-insuance arangement, with the arangement subsequently being replicated in some of the Group’s
international insuance opeations. Premiums and claims accruing to the external co-insurer are not relected
in the Group’s income statement and therefore presentation of this metric enables users of the Annual Repot
to see the scale of the Group’s insuance opeations in a way not possible from taking the income statement
in isolation.
Total
Premiums Written
Total premiums written are the total forecast premiums, net of forecast cancellations written in the undewriting
year within the Group, including co-insuance. It is reconciled to inancial statement line items in note 14a to the
inancial statements.
This measure has been presented by the Group in evey Annual Repot since it became a listed Group in 2004.
It relects the total premiums written by the Group’s insuance intermediaries and analysis of this measure over
time provides a clear indication of the growth in premiums, irrespective of how co-insuance agreements have
changed over time.
The reasons for presenting this measure are consistent with that for the Turnover APM noted above.
Group proit
before tax
Group proit before tax represents proit before tax from continuing opeations.
Earnings per share,
continuing opeations
Earnings per share from continuing opeations before restructure costs represents the proit after tax
attributable to equity shareholders excluding restructure costs, divided by the weighted aveage number of
basic shares.
Undewriting result
(proit or loss)
For each insuance business an undewriting result is presented showing the segment result prior to the
inclusion of proit commission, other income contribution and instalment income. It demonstates the
insuance result, i.e. premium revenue and investment income on insuance assets less claims incurred and
insuance expenses.
Admial Group plc Annual Repot and Accounts 2022
306
Additional Information
Loss Ratio Repoted loss atios are expressed as a percentage of claims incurred divided by net earned premiums.
There are a number of instances within the Annual Repot where adjustments are made to this calculation in
order to more clearly present the underlying peformance of the Group and opeating segments within the
Group. The calculations of these are presented within note 14b to the accounts and explanation is as follows.
UK repoted motor loss atio: Within the UK insuance segment the Group sepaately presents motor atios,
i.e. excluding the undewriting of other products that supplement the car insuance policy. The motor atio is
adjusted to i) exclude the impact of reseve releases on commuted reinsuance contacts and ii) exclude claims
handling costs that are repoted within claims costs in the income statement.
International insuance loss atio: As for the UK Motor loss atio, the international insuance loss atios presented
exclude the undewriting of other products that supplement the car insuance policy. The motor atio 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 distot the underlying peformance of the business.
Group loss atios: Group loss atios are repoted on a consistent basis as the UK and international atios noted
above. Adjustments are made to i) exclude the impact of reseve releases on commuted reinsuance contacts,
ii) exclude claims handling costs that are repoted within claims costs in the income statement and iii) exclude
the claims element of the impact of international reinsurer caps.
Expense Ratio Repoted expense atios are expressed as a percentage of net opeating expenses divided by net
earned premiums.
There are a number of instances within the Annual Repot where adjustments are made to this calculation in
order to more clearly present the underlying peformance of the Group and opeating segments within the
Group. The calculations of these are presented within note 14c to the accounts and explanation is as follows.
UK repoted motor expense atio: Within the UK insuance segment the Group sepaately presents motor atios,
i.e. excluding the undewriting of other products that supplement the car insuance policy. The motor atio is
adjusted to i) include claims handling costs that are repoted within claims costs in the income statement, ii)
include inta-group aggregator fees charged by the UK comparison business to the UK insuance business and
iii) exclude the expense element of the impact of reinsurer caps as inclusion of the impact of the capping of
reinsurer expenses would distot the underlying peformance of the business, and iv) exclude restructure costs.
International insuance expense atio: As for the UK Motor loss atio, the international insuance expense
atios presented exclude the undewriting of other products that supplement the car insuance policy.
The motor atio 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 distot the underlying peformance of the business and
ii) include inta-group aggregator fees charged by the overseas comparison businesses to the international
insuance businesses.
Group expense atios: Group expense atios are repoted on a consistent basis as the UK and international atios
noted above. Adjustments are made to i) include claims handling costs that are repoted within claims costs in
the income statement, ii) include inta-group aggregator fees charged by the Group’s comparison businesses to
the Group’s insuance businesses and iii) exclude the expense element of the impact of reinsurer caps.
Combined Ratio Repoted combined atios are the sum of the loss and expense atios as deined above. Explanation of these
igures is noted above and reconciliation of the calculations are provided in notes 14b and 14c.
Return on Equity Return on equity is calculated as proit after tax from continuing opeations, before restructure costs, for the
period attributable to equity holders of the Group divided by the aveage total equity attributable to equity
holders of the Group in the year excluding any net assets related to discontinued opeations, including the
exclusion of the net proceeds from sale still to be distributed. This aveage is determined by dividing the
opening and closing positions for the year by two. It has been redeined in the prior period to exclude the
impact of discontinued opeations.
Group Customers Group customer numbers relect the total number of cars, households and vans on cover at the end of the year,
across the Group, and the total number of tavel insuance and loans customers.
This measure has been presented by the Group in evey Annual Repot since it became a listed Group in
2004. It relects 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 signiicance to the Group of the diferent
lines of business and geogaphic regions.
Admial Group plc Annual Repot and Accounts 2022
307
Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Glossay
continued
Efective Tax Rate Efective tax ate is deined as the approximate tax ate derived from dividing the Group’s proit 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 corpoation tax ates.
Additional Terminology
There are many other terms used in this repot that are speciic to the Group or the markets in which it opeates. These are deined
as follows:
Accident year The year in which an accident occurs, also referred to as the earned basis.
Actuarial best
estimate
The probability-weighted aveage of all future claims and cost scenarios calculated using historical data,
actuarial methods and judgement.
ASHE ‘Annual Suvey of Hours and Earnings’ – a statistical index that is typically used for calculating inlation of annual
payment amounts under Periodic Payment Order (PPO) claims settlements.
Claims reseves A monetay amount set aside for the future payment of incurred claims that have not yet been settled,
thus representing a balance sheet liability.
Co-insuance An arangement in which two or more insuance companies agree to undewrite insuance business on a
speciied potfolio in speciied propotions. Each co-insurer is directly liable to the policyholder for their
propotional share.
Commutation An agreement between a ceding insurer and the reinsurer that provides for the valuation, payment,
and complete discharge of all obligations between the paties under a paticular reinsuance contact.
The Group typically commutes UK motor insuance quota share contacts after 36 months from the stat of
an undewriting year where it makes economic sense to do so. Although an individual undewriting year may
be proitable, the margin held in the inancial statement claims reseves may mean that an accounting loss
on commutation must be recognised at the point of commutation of the reinsuance contacts. This loss on
commutation unwinds in future periods as the inancial statement loss atios develop to ultimate.
Coveage period The period during which the entity provides coveage for insured events. This period includes the coveage that
relates to all premiums within the bounday of the insuance contact.
Liability for incurred
claims (“LIC”)
The risk of a possible future change in one or more of a speciied interest ate, inancial instrument price,
commodity price, currency exchange ate, index of prices or ates, credit ating or credit index or other variable,
provided in the case of a non-inancial variable that the variable is not speciic to a paty to the contact.
Liability for remaining
coveage (“LRC”)
An entity’s obligation to investigate and pay valid claims under existing insuance contacts for insured events
that have not yet occurred (i.e. the obligation that relates to the unexpired potion of the coveage period).
Insuance market
cycle
The tendency for the insuance market to swing between highs and lows of proitability over time, with the
potential to inluence premium ates (also known as the “undewriting cycle”).
Net claims The cost of claims incurred in the period, less any claims costs recovered via salvage and subrogation
arangements or under reinsuance contacts. It includes both claims payments and movements in
claims reseves.
Net insuance
premium revenue
Also referred to as net earned premium. The element of premium, less reinsuance premium, earned in
the period.
Net promotor score NPS is currently measured based on a subset of customer responding to a single question: On a scale of 0–10
(10 being the best score), how likely would you recommend our company to a friend, family or colleague
through phone, online or email. Answers are then placed in 3 groups; Detactors: scores anging from 0 to 6;
Passives/neutals: scores anging from 7 to 8; Promoters: scores anging from 9 to 10 and the inal NPS score is :
% of promoters - % of detactors
Ogden discount ate The discount ate used in calculation of personal injuy claims settlements in the UK.
Periodic Payment
Order (PPO)
A compensation award as pat of a claims settlement that involves making a series of annual payments to a
claimant over their remaining life to cover the costs of the care they will require.
Premium A series of payments are made by the policyholder, typically monthly or annually, for pat of or all of the
duation of the contact. Written premium refers to the total amount the policyholder has contacted for,
whereas earned premium refers to the recognition of this premium over the life of the contact.
Premium Allocation
Approach (“PAA”)
Under the PAA, the geneal measurement model may be simpliied for cetain contacts to measure the liability
for remaining coveage.
Geneally, the PAA measures the liability for remaining coveage as the amount of premiums received net of
acquisition cash lows paid, less the amount of premiums and acquisition cash lows that have been recognised
in the proit and loss over the expired potion of the coveage period based on the passage of time.
Proit commission A clause found in some reinsuance and coinsuance agreements that provides for proit sharing.
Admial Group plc Annual Repot and Accounts 2022
308 Additional InformationAdditional information
Reinsuance Contactual arangements whereby the Group tansfers pat or all of the insuance risk accepted to another
insurer. This can be on a quota share basis (a percentage share of premiums, claims and expenses) or an excess of
loss basis (full reinsuance for claims over an agreed value).
Retrospective
approach (full –
IFRS 17)
The method of tansition to IFRS 17 meaning an entity shall at the tansition date: identify, recognise and
measure each group of insuance contacts as if IFRS 17 had always applied.
Risk adjustment for
non-inancial risk
The compensation an entity requires for bearing the uncetainty about the amount and timing of the cash
lows that arises from non-inancial risk as the entity fulils insuance contacts.
Scaled Agile Scaled Agile is a famework that uses a set of organisational and worklow patterns for implementing agile
pactices at an enterprise scale. Scaled agile at Admial represents the ability to drive agile at the team level
whilst applying the same sustainable principles of the group.
Securitisation A process by which a group of assets, usually loans, is aggregated into a pool, which is used to back the issuance
of new securities. A company tansfer assets to a special purpose entity (SPE) which then issues securities
backed by the assets.
Special Purpose Entity
(SPE)
An entity that is created to accomplish a narrow and well-deined objective. There are speciic restrictions or
limited around ongoing activities. The Group uses an SPE set up under a securitisation progamme.
Ultimate loss atio A projected actuarial best estimate loss atio for a paticular accident year or undewriting year.
Undewriting year The year in which an insuance policy was incepted.
Undewriting year
basis
Also referred to as the written basis. Claims incurred are allocated to the calendar year in which the policy was
undewritten. Undewriting year basis results are calculated on the whole account (including co-insuance
and reinsuance shares) and include all premiums, claims, expenses incurred and other revenue (for example
instalment income and commission income relating to the sale of products that are ancillay to the main
insuance policy) relating to policies incepting in the relevant undewriting year.
Written/Earned basis An insuance policy can be written in one calendar year but earned over a subsequent calendar year.
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Company Oveview Stategic Repot Corpoate Governance Financial Statements Additional Information
Registered Office
Tŷ Admial
David Street
Cardiff
CF10 2EH
www.admialgroup.co.uk