Admiral Group plc has struck an agreement with investment firm JC Flowers & Co to sell its US motor insurance business, including Elephant Insurance Company and Elephant Insurance Services. The deal is subject to regulatory approval and is expected to close in the final quarter of the year.

Costantino Moretti, head of international insurance at Admiral Group said: “In Elephant, we have built a business with a great foundation, and selling the company to JC Flowers is the right decision to ensure its future success. JC 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, managing director and co-president of JC Flowers, added: “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.”