FTSE 100 insurance giant Admiral sells US business Elephant
Admiral, the FTSE 100 financial services giant and one of the largest motor insurers in the UK, has agreed to sell its US business, Elephant Insurance, to J.C. Flowers & Co.
Founded in 2001 and based in New York City, J.C. Flowers & Co. is run by billionaire J. Christopher Flowers, a former partner at Goldman Sachs.
The private equity firm has carved out a niche for itself in the global financial services industry and has previously held investments in the Co-Op Bank, OneSavings Bank and interactive investor.
The company announced last year that it would evaluate strategic options for its US operations, following a challenging period for the division.
First launched in 2009 as part of its international expansion ambitions, Elephant Insurance struggled to grow its customer base. By the end of 2024, the division had just 140,000 customers, making it the smallest of Admiral’s four international arms.
After losses ballooned in 2023 to £19.6m, Admiral moved to sell the business. It announced in March that it had entered into a memorandum of understanding with an unnamed counterparty, now revealed to be J.C. Flowers, with the aim of selling the division.
While the exact terms of the transaction have not been disclosed, Admiral said J.C. Flowers had agreed to pay “approximately the net asset value of Elephant.”
The transaction is subject to regulatory approval and is expected to close in the fourth quarter of 2025.
Costantino Moretti, head of international insurance at Admiral 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.”
Eric Rahe, the managing director and co-president of J.C. Flowers 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 standalone company. We are excited to partner with the Elephant team as the business enters this new stage of development.”