Admiral is to move into its new premises in March 2006

The company said it will move to purpose-built offices in the city's �200m SA1 waterfront business area to accommodate its staff.

Admiral, founded in 1993, employs 650 people in the city and 1,500 across south Wales. The firm is known mainly for car insurance.

The company's move was helped by a �1.9m Welsh Assembly Government grant.

Admiral is set to become the largest employer in SA1 - a development which the Welsh Development Agency hopes will spur the regeneration of Wales' second city.

The firm will move into the 40,000 sq ft Cyprium building in March 2006.

An additional 28,000 sq ft of the building will be completed by September, a spokesperson said.

Welsh Economic Development Minister, Andrew Davies, described the insurance group as "one of the great Welsh success stories of the past decade".

He said: "The decision to locate in SA1 will also act as a catalyst in attracting other businesses and service providers to the city."

A spokeswoman for the assembly government said the grant was provided through the regional selective assistance scheme.

Admiral's Swansea general manager, Sian Lewis said: "We're very proud to be based in Wales, and it's great that we don't have to look outside for offices in such excellent surroundings.

"The local labour market has produced an abundance of talent in the past, and the new offices allow us to draw on it once more, and reinforce our position as a company dedicated to the Welsh economy."