Trading Statement

Admiral Group PLC
13 July 2005





Trading Statement

13 July 2005

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE
                   UNITED STATES, CANADA, AUSTRALIA OR JAPAN



                Admiral Group growth continues in first half 2005

Admiral Group plc ('Admiral', or 'the Company') today provides an update on
current trading. The Company will announce its 2005 first half-year results on 6
September 2005.


Highlights


   •Turnover

Admiral's turnover grew to £319.4m in H1 2005 compared to £269.3m H1 2004, an
increase of 19%. Compared to H2 2004 turnover is up 15%.

   •Policy count rose 16% to 1,057,452

The number of policies on risk as at the end of June 2005 was 1,057,452, an
increase of 16% from the 910,545 customers on risk at the end of June 2004 and a
5% increase over the 1,007,571 customers on risk at the end of December 2004.

   •Non-underwriting income increased*

The income generated by sales of non-underwriting products and services in H1
2005 increased by 25% to £36.0m compared to £28.7m in H1 2004. Compared to H2
2004 non-underwriting income is up by 18% from £30.5m.

Market Developments

During the first half of 2005 Admiral implemented a series of rate increases for
both new business and renewals. At the end of June 2005 premium rates are circa
2.9% above rates at the end of June 2004. This reflects our previously announced
plan for 2005 of decelerating policy growth and widening margins relative to
industry averages, as industry profitability deteriorates.

In the first half of the year Admiral found market rates were generally
unchanged. This implies a deteriorating result for the market as a whole, as
there is a claims inflation factor of circa 5%, largely due to an even larger
inflation factor for bodily injury claims. If the market does not react to this
deterioration, general trading conditions may be more difficult in the second
half.

Admiral believes that market combined ratios will rise further this year, which
will mean some of its competitors will be operating at a loss.

As expected, the market has continued to see a substantial increase in overall
marketing spend, with press and TV spend rising 54% year on year**. Over the
same period Admiral has increased its marketing spend by 15%, on an equivalent
basis. It is a measure of our marketing efficiency that despite these levels of
competitor marketing activity, and despite increasing our rates relative to the
market, we have been able to grow our policy base over the period.

The internet continues to grow strongly as a source of new business and the
Company's share of car insurance bought over the internet has remained
relatively unchanged at circa 20%***.

Henry Engelhardt, Chief Executive Officer of Admiral, said: 'Admiral continues
to perform well and we are pleased with the results for the first half of 2005
and encouraged with the progress of all our brands. We plan to maintain our
strategy during the second half of 2005, of continuing rate increases,
maintaining marketing efficiency and providing our customers with great service.
As previously stated, we do not anticipate asking Munich Re to go beyond 11%
year-on-year policy growth. '

Notes

* Non-underwriting income does not include Gladiator Commercial and
Confused.com.

** Source: AC Nielsen, June 03 - May 04 v June 04 - May 05

*** Source: ebenchmarkers.

For further information, please contact:

Admiral                                     029 20434394
Louisa Scadden
Financial Dynamics                          020 7269 7200
Robert Bailhache
Dominick Peasley
www.admiralgroup.co.uk


About Admiral

Admiral is a fast growing financial services intermediary with a track record of
profitability. Admiral principally sells private motor insurance and ancillary
products, such as cover for breakdown, roadside assistance and legal expenses.
Admiral markets directly to the public in the UK through its four core brands:
Admiral, elephant.co.uk, Diamond, and Bell.

The Group also offers customers online quotes through its brand Confused.com,
the UK's first insurance aggregator. Unlike other brands, Confused.com does not
sell insurance. Visitors to Confused.com's website fill out their details once
online and Confused.com finds the cheapest quotes available on the internet from
its large panel of insurers.

Admiral's motor insurance is underwritten primarily by third party insurance
providers, with Admiral controlling all pricing and underwriting decisions and
administration. Admiral also retains a proportion (presently 25%, net of quota
share reinsurance) of the private motor underwriting for its own account.

Admiral was admitted to the Official List of the London Stock Exchange on 28
September 2004 following a Global Offer of Ordinary Shares to institutional
investors that was more than seven times subscribed. On 20 December 2004 the
Company became a constituent of the FTSE 250 index.. The Ordinary Shares trade
under the ticker symbol ADM.L.





                      This information is provided by RNS
            The company news service from the London Stock Exchange