Admiral is proposing to reduce its UK insurance workforce by around 500 roles as part of a wider programme to deliver £100m in annual cost savings. The proposals affect around 5% of Admiral’s UK insurance employees. The insurer has begun a 45-day collective consultation with affected staff.

The changes apply to Admiral’s UK insurance business and do not affect its European insurance operations or Admiral Money. The proposed job reductions form part of an efficiency programme announced earlier this year, with Admiral targeting £100m of annual cost savings.

The insurer has said the changes are intended to simplify its UK insurance operation and ensure it has the appropriate structure, skills and ways of working as customer needs evolve.
The announcement comes after Admiral reported a fall in first-half profit in August. Group pre-tax profit from continuing operations fell 18% to £429.2m in the six months to 30 June, while UK Insurance profit before tax fell from £584.4m to £485m.

Admiral has also stressed that the proposed job reductions are not being driven by its use of artificial intelligence, despite technology and automation forming part of its wider efficiency programme.