Admiral is set to reward its staff with share bonuses worth up to £3,600 each after a successful year in the insurance market.

The firm, which offers car, home, travel and pet i, saw its annual profit nearly double last year. Pre-tax profits for 2024 reached £839.2m, a 90% increase from the £442.8m recorded in 2023. This success was largely due to an influx of customers and increased turnover, particularly within its UK motor insurance division.

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Admiral attributed this growth to price increases implemented in 2022 and 2023 to counteract inflation. However, as inflation began to ease early last year, the company reduced prices, attracting more car insurance customers than its competitors. Motor policies rose by 15% to a record 5.7m by the end of 2024. Insurers have cited rising claim costs as the reason for recent price hikes, with increased expenses for repairs and replacements.

Admiral's group chief executive, Milena Mondini de Focatiis, stated: "To remain one of the most competitive insurers for the largest number of people is a priority for us." She added that the company was "one of the first to reduce prices in response to easing inflation", following several challenging years.

Admiral has revealed that over 13,000 of its employees are set to receive free share awards valued at up to £3,600 through its profit share scheme. Staff can sell these shares three years after they've been awarded and will receive dividends on them twice a year.

In other news, Admiral informed investors that it's in discussions with a potential buyer for its US business, which operates under the Elephant brand selling motor insurance. Last year, Elephant bounced back to a profit of £14.4m, a significant improvement from a loss of nearly £20m the previous year.