Admiral signs US deal with Munich Re, Hannover Re

18th Jan 2010 07:45

Admiral has signed new reinsurance deal with Munich Re and Hannover Re for its new car insurance operation in the US, Elephant Insurance.The car insurer has also extended its long-term coinsurance and reinsurance arrangements with Munich Re for its UK, Spanish and Italian businesses, while the existing agreement for the German business remains in place.'This is a very good day for Admiral. These deals will help us perpetuate our model that minimises risk and consistently produces a high return on capital. We believe it is in our shareholders best interest to reduce our risk, particularly in the early development stage of a business, in return for sacrificing some of the profit down the road. This helps us to couple good growth with solid dividends,' said chief executive Henry Engelhardt.'It is an exciting time to be part of the Admiral Group given our growth and geographical expansion and we are very pleased to be working with Munich Re and Hannover Re to build growing, profitable, sustainable businesses in Europe and the USA.'