Most Admiral staff own shares in the firm

It is the company's first result since it floated on the stock market last year, which led to huge windfalls for many staff in Cardiff and Swansea.

The figures, for the year to December 2004, represent a 30% increase in profits from the previous year.

David Stevens, chief operating officer, said the results had "capped a wonderful year".

Last September, Admiral sold off a stake worth about 10% of its value.

Around 1,400 staff in Cardiff and Swansea, who are members of the company's share-ownership scheme, qualified for the payouts.

The UK car insurance is going from a phone market to an internet market, and that's where we are at our strongest David Stevens

Monday's announcement of profits of �100m was an improvement on the �77.2m the firm took in 2003, and Mr Stevens added that further growth was expected over the next year.

He said the fact that most employees had a direct interest in profits helped with their performance.

"We are sure that makes a difference in how they view their job and how they do their job," he said.

He put the firm's success down to its internet market.

"The UK car insurance is going from a phone market to an internet market, and that's where we are at our strongest," he said.

But he said the firm would have "to stay on its toes" if it was to continue its growth.

The company has around 1,100 staff in Cardiff and another 400 in Swansea.