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Admiral has reported an increase in pre-tax profits of 2% to £193m for the first half of 2017.

The Cardiff-based insurance group also reported a rise in turnover of 15% to £1.45bn for the six months to June 30.

The results mean that more than 9,000 staff will each get £1,800 in free shares under the group's employee share scheme.

The profit rise was helped by an increase in charges for drivers as the company sought to reduce the impact of a change in the way personal injury claims are calculated.

Admiral employs more than 6,000 people in Wales, including 3,339 in Cardiff, 1,923 in Swansea and 934 in Newport.

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What the boss says

Group chief executive officer David Stevens said: “The first half of 2017 saw Admiral ambitious in pursuit of both immediate and longer term growth opportunities.

“We've grown turnover and customer numbers in our existing businesses by over 13% while also delivering a first half of important firsts - the first loans originated on our new dedicated lending system, the first cars sold on Confused.com, the first vans directly underwritten in the UK and Spain.

“Most of the adverse impact from the increase in the costs of large injury claims, resulting from the change in the Ogden discount rate, was captured in our 2016 second half result.

"However, some extra costs carry into 2017. In these circumstances, we are happy to report a marginal increase in profitability and to deliver a more material increase in the underlying dividend.”

Changes in rates

Earlier this year, Admiral said it was taking "pre-emptive" action to increase prices as it looks to recoup a £150m hit following a Government decision to cut the so-called Ogden discount rate calculation.

Today the firm said: "The UK car insurance business benefited from continued success in attracting and retaining customers in the competitive UK market and this, together with higher average premiums, contributed to an increase in turnover.

"Admiral increased its rates in December 2016 in advance of the Ogden change and has continued to do so throughout the first half."

As a result, UK insurance turnover rose 9% to over £1bn.

Shares in the insurance sector plunged earlier in the year after then Lord Chancellor Liz Truss put forward changes to the discount rate calculation, which is expected to increase payments given to victims of life-changing injuries through medical negligence, car crashes and other incidents.

Ms Truss said, from March 20, the rate would be cut from 2.5% to minus 0.75%, but the Government is now consulting on the move.

Admiral, which also owns price comparison website Confused.com, saw its annual profits tumble by a quarter in March after accounting for the change.