Admiral Group plc has agreed to sell its US motor insurance operations, including Elephant Insurance Company and Elephant Insurance Services, to private investment firm J.C. Flowers & Co.
The transaction, which is subject to regulatory approval, is expected to be completed in the fourth quarter of 2025.
Financial terms of the deal were not disclosed, though the cash consideration is understood to be approximately equal to Elephant’s net asset value, before adjustments and transaction-related costs.
Elephant, based in Richmond, Virginia, provides car insurance to drivers in the US. The company offers digital tools to help customers choose coverage based on their individual requirements.
Costantino Moretti, head of international insurance at Admiral Group, said the sale represents a step towards focusing on the company’s operations in the UK and Europe.
J.C. Flowers managing director and co-president Eric Rahe said the firm intends to support Elephant’s development as a standalone business.
Elephant CEO Alberto Schiavon said the new ownership structure is expected to assist with the next stage of the company’s strategy, while continuing to operate under its existing framework.
BofA Securities is acting as exclusive financial advisor to Admiral, with legal support from Sidley Austin LLP. J.C. Flowers is being advised by Keefe, Bruyette & Woods, a Stifel company, and legal counsel from Debevoise & Plimpton LLP.
Admiral Group reported a rise in profit, turnover and customer numbers for the 2024 financial year.
For the year ended December 31, profit before tax reached £839.2 million, an increase of 90% from £442.8 million in 2023. Earnings per share were up 95% to 216.6 pence. Return on equity rose to 56%, compared with 36% the previous year.
Group turnover increased by 28% to £6.15 billion. Insurance revenue rose by 37% to £4.78 billion, while gross loan balances at Admiral Money were up 23% to £1.17 billion. The group’s solvency ratio after dividends was reported stood at 203%, compared to 200% in the previous year.
The company’s customer base grew by 14% to 11.1 million. UK insurance customers rose by 19% to 8.8 million, while the number of international insurance customers declined by 3% to 2.1 million.
