FTSE 100 auto insurer Admiral has hit choppy waters in the wake of a claims-driven profit slump.

Recognising one of its most challenging years for decades, profits for the Cardiff-based insurer crumpled to the tune of 39 per cent for 2022, driven down to a net £469m – a figure markedly down on 2021's £769m.

2022, said Admiral, was a year of "navigating stormy waters", given its claims costs.

Full-year pre-tax profits in 2022 missed analysts' expectations of £485m; Admiral subsequently cut its dividend payment 40 per cent to 112p a share and its stock fell 4.1 per cent, or 85p, to 2003p.

Accidents, said Admiral, have become more frequent after the pandemic lull, while bad-weather claims have also affected its home insurance operation.

Milena Mondini de Focatiis, Admiral's CE, said: "We implemented price increases ahead of others in response to higher inflation whilst maintaining a conservative approach to reserving and capital management".

Founded in 1991, Admiral is one of the biggest UK car insurance providers, with brands around the world. In 1993, it had 57 staff; it currently has more than 10,000 at offices in the UK, Spain, Italy, France, USA, Canada, India, Mexico, and Turkey. In December 2020, it sold off its online comparison business Confused.com to Uswitch for £500m.