Admiral Group PLC said Monday it has signed new reinsurance contracts with Munich Re and Hannover Re for its new car insurance operation in the U.S., Elephant Insurance.
Admiral has extended its long-term coinsurance and reinsurance arrangements with Munich Re for its U.K., Spanish and Italian businesses, while the existing agreement for the German business remains in place.
Munich Re and Hannover Re have both entered into quota share reinsurance contracts with Elephant from Jan. 1 and each will take one third of the U.S. risks and Admiral will retain one third for its own account.
Both agreements are intended to be long term and include break clauses at earlier dates.
Hannover Re contract is for up to 10 years whilst the Munich Re agreement is for up to 15 years.
