Locally based Elephant Insurance to be sold to N.Y.-based private equity firm

Elephant Auto Insurance launched in 2009. (BizSense file photo)

The UK-based parent company of Elephant Insurance has struck a deal to unload the Henrico-based auto insurer in a transaction that would bring the company’s ownership stateside.

Admiral Group PLC announced Tuesday it has entered into an agreement to sell its U.S. motor insurance business, including Elephant Insurance Co. and Elephant Insurance Services, for an undisclosed amount to J.C. Flowers & Co., a private investment firm with a focus on the financial services industry.

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

Tuesday’s announcement described the undisclosed cash consideration as representative of the net value of Elephant. Admiral entered into a memorandum of understanding for the deal in early March, according to the group’s latest annual report, which listed Elephant’s investment value at over $23.5 million.

While Elephant has been headquartered in Henrico since it entered the U.S. market in 2009, the transaction would move its ownership across the pond. Admiral Group is headquartered in Wales, while J.C. Flowers is based in New York City and also has offices in London and Palm Beach, Florida.

Representatives for Elephant were not made available Tuesday due to the sale’s pending status. The announcement included comments from Admiral Group’s Costantino Moretti, head of international insurance, who described the sale as “a good outcome” for Elephant and its employees and for Admiral and its shareholders.

Moretti added that the sale would allow Admiral to focus on growing its businesses in Europe, where its auto-focused brands include a UK version of Elephant. In 2023, Admiral sold Compare.com, previously based in Richmond, to virtual insurance provider Insurify, based in Cambridge, Massachusetts.

The Park Central V building where Elephant is based. (File photo courtesy Elephant Insurance)

Also quoted in the announcement was Elephant CEO Alberto Schiavon, who said J.C. Flowers’ ownership “will play a critical role for the next phase of our growth strategy and add value to our customers, whilst maintaining our distinctive culture.”

Tuesday’s announcement comes just over a year since Elephant significantly downsized its local office footprint, moving its Henrico HQ from a 76,000-square-foot space in the Allianz-anchored Deep Run I building near Innsbrook to 16,000 square feet at Park Central, an office park along East Parham Road.

At that time, Schiavon said Elephant totaled 600 employees companywide and insured about 56,000 vehicles locally, up from over 28,000 in 2018. He said its annual revenue for 2023 was projected to reach $320 million, up from $207 million in 2017.

According to Admiral’s annual report, Elephant ended 2024 with a $19.2 million profit, improving from a loss of $26.1 million in 2023, and held an investment value of $23.59 million.

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