Source: Sharecast
The sale, which represents the disposal of Admiral's Elephant Insurance Company and Elephant Insurance Services divisions, was made at "approximately the net asset value of Elephant", the company said in a statement on Tuesday afternoon.
The announcement comes just a month after Admiral said it had entered into a memorandum of understanding with an unnamed "counterparty" with a view to signing a purchase agreement to sell Elephant.
The disposal represents a relatively small part of Admiral's wider business. Admiral insures just 140,000 vehicles in the US, as of the end of 2024, making up just 7% of its international operations which also includes insurance offerings in Spain, Italy, France. That compares with the 5.7m vehicles insured in the UK.
The US motor division generated £14.4m in profit for Admiral in 2024, compared with a loss of £19.6m the year before.
“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," said Costantino Moretti, head of Admiral's international insurance division.
“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.”
Admiral's share price was up 1.2% at 3,239p by 1414 GMT.