Insurer Admiral (ADML.L) said on Tuesday it will return 110 million pounds to car and van policyholders who have heeded government advice to stay home and drive less during Britain’s coronavirus lockdown.
The company said a refund of 25 pounds will be given to all customers for each car and van covered as at April 20, which amounts to a total of 4.4 million vehicles.
Admiral said it was giving its customers the refund to reflect that there have been fewer cars on the road since Britain’s lockdown began on March 23 and it expected this to result in fewer claims.
The refund will automatically be credited to customers by end-May.
“Admiral’s intention is to return estimated savings to its customers rather than benefit from reduced driving during the lockdown,” the company said in a statement.
Separately, the company said it would also set aside an additional 80 million pounds to support National Health Service (NHS) staff and reduce prices for customers facing financial hardship as a result of the pandemic.
The company is also waiving excess fees for NHS or emergency service workers and guaranteeing cover for customers using their vehicle to transport people, deliver medical supplies and equipment, or items to people who are self-isolating.
The combined initiatives in total are equivalent to roughly a month’s premium income, or a third of its 2019 profits.
Admiral shares were trading 2% higher at 0801 GMT, compared with a 1.9% fall in the FTSE 100 .FTSE..