Henrico-based Elephant Insurance to be sold

The U.K.-based Admiral Group is selling Henrico County-based auto insurer Elephant Insurance to J.C. Flowers & Co., a New York-based private investment firm, according to a Tuesday announcement.

The deal is for “an undisclosed cash consideration … representing approximately the net asset value of Elephant,” a news release stated.

That value is believed to be more than $23.6 million, after being written down from more than $49 million in 2023, according to Admiral Group’s 2024 report. (Dollar figures are based on conversion rates of pounds to dollars at 12:30 p.m. on Tuesday.)

The transaction, which is subject to regulatory approval, is expected to close in the fourth quarter of the year.

Albert Schiavon, who became Elephant’s CEO in 2017, is expected to remain in that role. The company’s name is not expected to change and no employees are expected to lose their jobs.

Costantino Moretti, head of international insurance for Admiral Group, said the deal is good for Elephant’s employees and for Admiral Group and its 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,” Moretti said in a news release.

Elephant has more than 500 employees, according to the company.

Eric Rahe, managing director and co-president, of J.C. Flowers stated in the news release that the firm will help Elephant Insurance “generate new opportunities as a standalone company.”

“J.C. Flowers has a long, distinguished history of investing in the insurance industry,” he stated in the news release.

In 2024, Elephant Insurance reported a profit of about $18.7 million after reporting a loss of about $25.6 million in 2023.

“These results were achieved through a continued focus on rate adequacy and careful expense management,” Schiavon stated in the annual report.

Admiral Group launched Elephant in 2009 to grow its overseas automobile insurance business. It initially traded only in Virginia. Elephant Insurance added Maryland, Illinois and Texas markets in 2013 and Indiana and Tennessee markets in 2016. Ohio was added in 2020 and Georgia the following year. More than 225,000 drivers and their vehicles are protected by Elephant Insurance, according to the company.

Founded in 1998, J.C. Flowers & Co. has invested more than $18 billion of capital, including co-investment, in 67 portfolio companies in 18 countries across sectors including insurance and specialty finance.

Admiral’s financial adviser for this transaction is BofA Securities and Chicago-headquartered Sidley Austin is its legal adviser. J.C. Flowers’ financial advisor is Keefe, Bruyette & Woods, and its legal adviser is New York-based Debevoise & Plimpton.

“This partnership will enable us to benefit from their extensive expertise which will play a critical role for the next phase of our growth strategy and add value for our customers, whilst maintaining our distinctive culture,” Schiavon stated.