Bank of Scotland Corporate Banking and Lloyds TSB Corporate Acquisition have completed an £80m refinancing of Admiral Insurance, a UK-based insurance business currently owned by Barclays Private Equity.
The finance package enables Barclays Private Equity to recoup its full investment made as part of a £110m management buyout in 1999. Barclays PE has not disclosed the stake it will retain in the business. The deal will also enable Admiral to pay its post-MBO debt.
The Cardiff-based insurer has achieved steady growth since its creation in 1992 and currently employs 1,450 people. The business expects to achieve turnover of £370m for the current financial year.
“In less than ten years it has grown from a zero base to a four per cent market share. Admiral came to us to seek a refinance to give it the flexibility to continue its exceptional growth,” said Ian Aston, director of Bank of Scotland Structured Finance.
Barclays Private Equity is currently raising its first fund to seek third party backing. The bank held a first close at E1bn in late May and intends to hold a final close at around E1.2bn before the end of the year.