J.C. Flowers Acquires Elephant Insurance: A Strategic Move in U.S. Auto Insurance
J.C. Flowers Acquires Elephant Insurance from Admiral Group
Admiral Group has finalized the sale of Elephant Insurance, its U.S. motor insurance unit, to J.C. Flowers & Co. This strategic decision reflects Admiral's aim to concentrate on its operations in the UK and Europe. The agreement covers both Elephant Insurance Company and Elephant Insurance Services.
Founded in 2009 as a subsidiary of the UK-based Admiral Group, Elephant Insurance is headquartered in Richmond, Virginia. The insurer utilizes a direct-to-consumer model to deliver a variety of automobile insurance products, including liability, collision, comprehensive, and uninsured/underinsured motorist coverage. Additional services such as roadside assistance and rental reimbursement enhance their offerings. Furthermore, their digital platform streamlines online policy management and claims processing, catering to motorists across multiple U.S. states.
J.C. Flowers, established by J. Christopher Flowers in 1998, manages a robust portfolio with over $18 billion invested in 66 companies spanning various financial services sectors, including insurance. With offices in New York, London, and Palm Beach, the firm maintains a global presence. In August 2022, J.C. Flowers completed its fifth private equity fund, accumulating over $1.1 billion in commitments. This fund includes several insurance-focused investments such as Ariel Re, Inigo Insurance, and Tricor Insurance.
The acquisition of Elephant Insurance is part of J.C. Flowers' strategy to expand in the U.S auto insurance space. "We are enthusiastic about supporting Elephant Insurance in its next chapter. Consumers continue to seek flexible insurance offerings, and Elephant has demonstrated an ability to serve that segment through its digital platform," stated Eric Rahe, managing director and co-president at J.C. Flowers.
Costantino Moretti, head of international insurance at Admiral Group, expressed confidence in Elephant Insurance's growth potential under its new ownership with J.C. Flowers. "We believe Elephant has a strong foundation, and selling the company to J.C. Flowers will enable it to grow while continuing to deliver insurance products that meet the needs of U.S. motorists," he noted. Despite parting with their U.S. teams, Admiral remains optimistic about the business's future prospects.
Advisors for the transaction included BofA Securities for Admiral Group and Keefe, Bruyette & Woods for J.C. Flowers, with legal counsel provided by Sidley Austin and Debevoise & Plimpton, respectively. This acquisition not only aligns with J.C. Flowers’ aim to bolster its presence in the U.S. auto insurance industry but also permits Admiral Group to enhance its focus on the European market.