Admiral Group has agreed to sell its US motor insurance division, including Elephant Insurance Company and Elephant Insurance Services, to private equity firm J.C. Flowers.
Financial specifics of the deal were not shared but the cash consideration is said to approximate the net asset value of Elephant, subject to customary adjustments and transaction expenses.
The sale is contingent upon regulatory approval and is due to be completed in the fourth quarter of 2025 (Q4 2025).
Elephant Insurance, based in Richmond, Virginia, provides car insurance to US customers and its offerings include tools designed to assist customers in selecting protection within their financial means.
Admiral Group has appointed BofA Securities as its financial advisor and Sidley Austin as legal counsel.
J.C. Flowers has engaged Keefe, Bruyette & Woods, a Stifel Company, as its financial advisor and Debevoise & Plimpton as its legal counsel.
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By GlobalDataAdmiral Group international insurance head Costantino Moretti said: “In Elephant, we have built a business with a great foundation, and selling the company to J.C. Flowers is the right decision to ensure its future success. J.C. Flowers and Elephant have a shared ambition for generating growth and value. This partnership will allow the business to continue to deliver the high-quality insurance products and services that US motorists need.
“This is a good outcome not only for Elephant and its employees, but also the Group and our shareholders. This transaction will enable us to focus on the opportunities we see for delivering long-term sustainable growth in our businesses in the UK and Mainland Europe.”
J.C. Flowers managing director and co-president Eric Rahe said: “J.C. Flowers has a long, distinguished history of investing in the insurance industry, and we will leverage our experience to help Elephant Insurance generate new opportunities as a stand-alone company. We are excited to partner with the Elephant team as the business enters this new stage of development.”
Last month, Admiral’s UK insurance division endorsed Flood Re’s Build Back Better scheme. Admiral has supported the Flood Re initiative since its establishment in 2016.
