| Admiral Group, one of the UK's largest direct response car insurers,
has a new additional shareholder, Munich Re, the world's leading reinsurer.
Munich Re has purchased shares from Barclays Private Equity and Ridgewood,
a subsidiary of XL Capital, and received new issued shares to help fund
future growth of Admiral. While Munich Re is holding 18.6 % of Admiral's
capital Barclays Private Equity remains Admiral's largest shareholder
with a stake of 42.3 %.
The business of Admiral Group has generated rapid and profitable expansion
following a successful management buy-out in November 1999 backed by Barclays
Private Equity. Development of brands such as Diamond for women and elephant.co.uk,
the Internet brand, as well as Admiral has fuelled an 80 % increase in
premium over the last 3 years reaching £335 million in 2002, with
now over 700,000 customers.
Dr. Thomas Braune of Munich Re, said: "With our minority participation
we have seized the opportunity to participate as financial investor in
the bright outlook of Admiral. We are convinced that the excellent management
of Admiral and the particular business model of the company will continue
to provide attractive returns in the growing insurance market."
Owen Clarke of Barclays Private Equity, said: "Barclays Private
Equity's expertise in the financial services sector led us to make the
initial investment in Admiral at a time when the car insurance market
was experiencing difficulties. We have since seen a significant return
on our investment, with double our initial financing already received."
Henry Engelhardt, Chief Executive of Admiral, said: "The investment
of Munich Re is a strong endorsement of Admiral. Our company has a history
of rapid growth and we are predicting that this will continue. As already
one of the most efficient providers of car insurance in the UK, this investment
will strengthen Admiral's position in a competitive market."
Issue date: 10-01-03
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