It’s all change at the top as Admiral toasts record profit
ADMIRAL announced a record group profit before tax of more than half a billion. The insurance giant, which is Wales’ only FTSE 100 company, also revealed the group’s chief executive officer, David Stevens, had notified the board of his intention to retire from his position in 12 months’ time.
Mr Stevens will be replaced by Milena Mondini de Focatiis, the group’s current head of UK and European Insurance, who will be promoted to group CEO-designate and join the board as an executive director. Ms Mondini de Focatiis will assume the CEO role after the transition period.
The group’s share of profit tax saw a 10% rise of £526.1m from £479.3m.
The Cardiff-headquartered firm announced all staff will receive a one-off £500 bonus, and around 10,000 staff will each receive free shares worth up to £3,600 under the employee share scheme based on the full-year 2019 results.
Mr Stevens said it had been a “freight-train year”.
“It was a year which saw profits exceed £500 million for the first time, on the back of substantial reserve releases,” Mr Stevens said.
“We crossed the million mark in household policyholders, and added 200,000 new car insurance customers overseas.
“Alongside this rapid progress on many fronts, some data points were stubbornly stable.
“The number of consecutive years amongst the top performers in the ‘Best Companies’ list only nudged up from 19 years to 20. The percentage of staff saying they are proud to work for Admiral was stuck in a narrow band in the mid-90s. As was the percentage of customers who said they wanted to renew with Admiral following a claim.
“Consistently happy staff, consistently happy customers. Hopefully happy shareholders.
“I announced this morning that I am going to be stepping down as CEO in 12 months’ time. I fully expect that Admiral’s talented senior management, led by our very talented CEO designate, Milena Mondini, will be more than ready to maintain, or even stoke up, Admiral’s relentless momentum.”
Mr Stevens co-founded Admiral in 1991 and has been Group CEO since May 2016. He will continue to work for the group in a part-time advisory capacity after the transition period.
Ms Mondini de Focatiis joined Admiral in 2007 and was most recently appointed head of UK and European insurance in July 2019.
She has been a member of the leadership team throughout her time at Admiral, has extensive experience of the group’s operations and has attended and actively contributed at board meetings as an observer since 2011.
Her previous roles included being CEO of ConTe.it, Admiral’s Italian insurance business which she founded in 2008.
Before joining Admiral, she worked as a consultant for Bain & Co and Accenture. She holds an MBA from INSEAD.
Ms Mondini de Focatiis said she was “immensely proud and humbled” to be given the opportunity to succeed Mr Stevens.
Annette Court, Admiral group chairman, said: “It is hard to sum up the amazing contribution that David has made to the group over the last 27 years. As one of the founders he has overseen the business grow from a standing start to become one of the UK’s largest motor insurers, employing over 10,000 people, serving seven million customers and with a market value today of over £6bn.
“David isn’t going just yet and I don’t want to use up all my accolades until he actually steps down in
12 months’ time. David brings a unique combination of great brainpower, integrity, innovation, caring and humility.
“As an individual, his compassion for colleagues and customers alike encapsulates Admiral’s approach and ethos. Suffice to say, it continues to be a real pleasure to work with him.
“Having been through a comprehensive and robust succession process, the board is confident that in Milena we have a natural successor and a leader for the next generation.
“We have a wealth of management talent at Admiral and bringing this through has always been a central pillar to Admiral’s management philosophy as the business evolves alongside its customers. Milena brings a deep appreciation of the special Admiral culture, entrepreneurial spirit, commercial track record and people development skills.”
Mr Stevens added: “Few managers are lucky enough to be part of as fulfilling a corporate story as Admiral. Alongside my sense of good fortune and gratitude to those who made it possible, notably, Admiral’s founder, Henry [Engelhardt], and my many talented colleagues over the years, I feel a responsibility to do what’s best for the long-term future of Admiral.
“That’s why I am looking to pass on stewardship of Admiral to a very talented next generation of Admiral management led by Milena Mondini.
“They are collectively more than capable, not just of sustaining, but also of improving Admiral’s competitive competence and potent culture.
“I am particularly glad that in Milena I have a successor who has the intelligence, the values, the track record and the clarity of vision to take on the role of Group CEO, and ensure that Admiral will continue to “go like a freight train” in the years to come.”
The board has proposed a final dividend of 77.0 pence per share (2018: 66.0p) representing a normal dividend (65% of post-tax profits) of 56.3 pence and a special dividend of 20.7 pence per share.
The dividend will be paid on June 1, 2020. The ex-dividend date is May 7, 2020, and the record date is May 11, 2020.