Admiral's Intangible Assets Continue to Drive Profitable Growth and High Standards of Underwriting

Admiral is a rare example of an insurance company with a narrow economic moat. Its durable competitive advantage is built on its proprietary technology intangible assets. Admiral’s investments in proprietary tech have created returns that far exceed anything generated by peers, and it has done so on a maintainable and reliable basis. These investments range from IT hardware and software to data; Admiral’s latest round of investments have been in probability-based machine learning that has then been customized by the firm. This internal development and customization of technology to make it proprietary is the reason for Admiral’s market-leading profitable growth. Using its technology and data, Admiral has been able to select the most profitable risks. Furthermore, we think this latest round of investments in artificial intelligence means Admiral is well placed to drive improvements in its motor and home loss ratios. This is because Admiral has historically selected drivers that pay by credit card, and one of the utilizations of probability-based learning is to more accurately predict fraudulent claims. This is done through analysis of interdependence between credit-based data features, which Admiral Loans is only likely to strengthen.