Admiral Group announced the sale of its U.S. automobile insurtech, Elephant Insurance Co. and Elephant Insurance Services, to financial services equity firm J.C. Flowers & Co.
Elephant Insurance, established in 2009 as a subsidiary of Admiral Group plc, operates as a direct-to-consumer automobile insurance provider headquartered in Richmond, Virginia.
The company offers auto insurance services in Virginia, Georgia, Illinois, Indiana, Ohio, Maryland, Tennessee, and Texas. Over time, Elephant expanded its offerings to include homeowners, renters, motorcycle, and life insurance products.
In 2024, Elephant reported a profit of approximately $18.7 mn, a significant turnaround from a loss of about $25.6 mn in 2023. This improvement was attributed to a focus on rate adequacy and careful expense management.
Costantino Moretti, Head of International Insurance at Admiral, stated that the group will prioritize long-term growth in the United Kingdom and mainland Europe.
He noted that selling Elephant to J.C. Flowers is the appropriate move for supporting the company’s future in the U.S. auto insurance market.
The companies disclosed that the cash transaction will closely align with Elephant’s net asset value. Founded in 2009, Elephant’s sale remains subject to regulatory approval and is expected to close in the fourth quarter.
Elephant posted a $5.8 mn net income last year, reversing a $19 mn net loss from the prior year, with its combined ratio improving from 145 to 94.5.
In 2024, private passenger auto liability accounted for 61.1% of net premiums written, while auto physical damage represented 38.7%. Over the past five years, Elephant reduced its net losses from a peak of $109 mn in 2020, returning to profitability last year.
Regarding funding, Elephant Insurance received an initial capital contribution of $14 mn from Admiral Group at its inception in 2009.
During the period from 2019 to 2021, Admiral contributed an additional $12 mn in capital and surplus to support the company’s operations.
Eric Rahe, Managing Director and Co-President of J.C. Flowers, stated that the firm will apply its insurance sector experience to support Elephant as an independent company.
As of the end of the first quarter, J.C. Flowers reported that 28% of its investments by count were in insurance, with 13% in insurance and business services combined.
