Admiral Law records strong start to life as insurer/law firm ABS


Admiral: 90% ownership of ABSs

Admiral Law – the alternative business structure (ABS) joint venture between Admiral Insurance and national law firm Lyons Davidson – made a gross profit of nearly £3m in its first seven months of trading, the company’s first accounts have revealed.

The ABS provides legal services to customers of the Admiral group who suffer personal injury or other uninsured losses as a result of a non-fault road traffic accident.

Admiral Law’s directors professed themselves “satisfied” with a turnover of £6.1m in the first seven months of trading, and a profit before tax of £2.8m. Profits after tax were nearly £2.2m.

It emerged earlier this year that Admiral owns 90% of the joint venture, which the accounts said employs 83 people.

Admiral Group’s most recent annual results said the personal injury referral fee ban reduced its revenue per vehicle by £4 – meaning £12m in total. However, “Admiral expects this reduction in revenue will be offset by reductions in claims costs”.

Admiral also owns 90% of a separate joint venture ABS, BDE Limited, with Cardiff firm Cordner Lewis, which handles claims from the group’s other brands, including Elephant. Its accounts show it made £273,000 in profits on £1.5m turnover in the first seven months of trading.

Admiral Law’s accounts noted that with legal fees being its only source of income, “legal or regulatory developments to reduce legal fees and/or the volume of personal injury claims will directly impact [the company’s] caseloads and income”.




Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blog


Civil enforcement – progress at last with CJC report

‘When do I get my money?’ is a question that litigators acting for successful parties are used to fielding. The value of judgments is of course in the recovery made.


Paralegals: Progression and recognition are key to retaining talent

Many lawyers could not do their jobs without the support of paralegals and for law firms to remain competitive, paralegals need to be central to their business.


PII excess: a growing risk for consultant solicitors

As more solicitors choose to work as consultants, a concerning contractual trend has emerged – the passing of professional indemnity insurance excess liabilities onto consultants.


Loading animation