Insurer Admiral will cut 500 jobs in the UK to save £100m, it has announced.

The proposals are related to Admiral’s UK insurance business only, and will affect about 5% of its workforce.

“We recognise this will be a difficult time for affected colleagues,” said Alistair Hargreaves, Admiral Insurance UK’s chief executive .

While the Cardiff-based company uses artificial intelligence (AI) in its operations, adoption of AI is not believed to be responsible for these changes.

Admiral said the job cuts would make the firm “faster and more efficient”.

Earlier this year, Admiral said it needed to save £100m, and has added the proposed redundancies are part of that cost-cutting effort.

“These changes are aimed at making us faster and more efficient so we can continue to deliver great customer outcomes,” said Hargreaves.

Staff members who are affected will be offered “enhanced” redundancy payments and redeployment opportunities where possible.

Hargreaves said Admiral was also “making a significant investment in meaningful support to help colleagues consider future options”.