ADM Admiral Group Plc

 
TIDMADM 
 
   Admiral Group plc 
 
   29 December 2020 
 
   Admiral Group plc announces sale of Penguin Portals and Preminen 
comparison businesses to RVU, the comparison division of ZPG 
 
   Admiral Group plc ("Admiral" or "the Group") announces that it has 
reached an agreement with ZPG Comparison Services Holdings UK Limited 
("RVU") that RVU will purchase Penguin Portals Group ("Penguin Portals", 
comprising online comparison portals Confused.com, Rastreator.com and 
LeLynx.fr and the Group's technology operation Admiral Technologies) and 
its 50% share of Preminen Price Comparison Holdings Limited ("Preminen"), 
together the "Proposed Transaction". MAPFRE will also sell its 25% 
holding in Rastreator and 50% holding in Preminen as part of the 
transaction. 
 
   The total transaction value, including the amount attributable to MAPFRE, 
is GBP508 million plus a further amount that will accrue until the date 
of completion of the Proposed Transaction ("Transaction Value"). The 
Transaction Value shall be satisfied in cash at completion of the 
Proposed Transaction subject to certain adjustments. The proceeds to 
Admiral, net of minority interests and transaction costs, will be around 
GBP450 million.  As noted above, the final transaction value will depend 
on the completion date. 
 
   In light of the strong solvency and liquidity position of the Group, 
Admiral expects to return a majority of the net proceeds to shareholders, 
though will retain a portion to support investment in new business 
development over the coming years.  Further details will be provided 
after completion. Completion of the transaction is subject to customary 
regulatory and competition authority approvals and is expected to close 
in the first half of 2021. 
 
   David Stevens, Group CEO of Admiral Group commented: 
 
   "The purchase of the UK and European comparison businesses by RVU offers 
a positive outcome for our customers and our employees, and also 
provides good value for our shareholders. 
 
   The combination of Penguin's strengths, notably in insurance comparison 
across much of Europe, with RVU's strengths beyond insurance and 
experience in growth through acquisition, provides a solid foundation 
for the combined businesses to grow and prosper. 
 
   Admiral will continue to focus on what Admiral has consistently done 
well, namely designing and underwriting good value mass market financial 
service products. Comparison will continue to be Admiral's most 
important distribution channel in Europe and we look forward to 
continuing to work closely with Confused.com, Rastreator and LeLynx as 
they continue to grow and strengthen the customer offering. 
 
   It is a wrench to part company with our fellow employees at Confused.com, 
Rastreator, LeLynx, Admiral Technologies and Preminen, but I believe it 
is the right choice for the long-term success of the businesses and will 
create many interesting and worthwhile opportunities for our teams going 
forward. I thank them and their predecessors for their contribution to 
the success of the Group and to the financial well-being of their 
millions of customers." 
 
   Elena Betes, CEO of Penguin Portals commented: 
 
   "We are very excited for the next stage of our journey. Our purpose, 
strategy, expertise and culture align strongly with that of RVU. 
Becoming part of a global network of brands and platforms, united by the 
same mission to help people make better decisions, will bring 
significant benefits to our customers and our people. 
 
   We are also very thankful for all of the support and guidance we have 
received from Admiral Group throughout the years. I would particularly 
like to thank David, Milena and Henry for their foresight and trust. 
 
   The extraordinary efforts of every member of the Penguin team has meant 
that in 2020 all of the Penguin Portals have proved to be highly 
resilient customer-centric businesses. Thank you Penguins! I know we 
will go from strength to strength with RVU as we are given great support, 
will benefit from highly relevant learnings and have huge ambition for 
the future." 
 
   Tariq Syed, CEO of RVU commented: 
 
   "Penguin Portals offers an exciting opportunity for us to expand our 
consumer brand portfolio and geographic reach. With its focus on 
insurance, Confused.com perfectly complements Uswitch's existing 
expertise in the home services category, and, with equally established 
offerings in other countries, we have an opportunity to help even more 
consumers find the right deals for their needs." 
 
   Admiral was advised by Houlihan Lokey, Clifford Chance LLP and KPMG in 
connection with the transaction. 
 
   For further information please contact: 
 
   Admiral 
 
   Marisja Kocznur                                Investors & Analysts +44 
(0) 29 2060 2034 
 
   Media: FTI Consulting 
 
   Edward Berry                                     +44 (0) 20 3727 1046 
 
   Tom Blackwell                                   +44 (0) 20 3727 1051 
 
   Admiral and Penguin Portals overview 
 
   Admiral Group was launched in the UK in 1993 and has grown to become one 
of the largest UK motor insurers, as well as having expanded to a global 
footprint with operations across eight countries. The comparison 
businesses owned by Admiral Group plc were aligned under Penguin Portals 
in 2019, and are formed of two holding groups -- Penguin Portals Ltd and 
Preminen Price Comparison Holdings Ltd. The gross value of assets of 
Penguin Portals at 30 June 2020 was GBP78.1 million and profit 
contribution to the Group (pre-tax excluding minority interest) was 
GBP22.3 million for the year ended 31 December 2019 and GBP13.6 million 
for the six months ended 30 June 2020. 
 
   Penguin Portals Ltd is a wholly owned subsidiary of Admiral Group plc 
and is a global network of comparison platforms including Confused.com, 
Rastreator.com and LeLynx.fr, with a mission to empower people to make 
better choices.  Penguin Portals is supported by a dedicated technology 
centre, Admiral Technologies. Preminen is a joint venture between 
Admiral Group plc and MAPFRE. 
 
   MAPFRE overview 
 
   MAPFRE is a global insurance company with a worldwide presence. It is 
the benchmark insurer in the Spanish market and the largest Spanish 
multinational insurance group in the world. The company is the third 
largest insurance group in Latin America and is the sixth in Europe by 
Non-Life premium volume. MAPFRE employs more than 34,000 professionals 
and in 2019, the company's revenues totaled almost 28.5 billion euros, 
with net earnings of 609 million euros (+15.2%). For more information, 
please visit https://noticias.mapfre.com/en/ 
 
   RVU overview 
 
   Formed in May 2018, RVU is the comparison division of ZPG, which is 
jointly owned by US-based Red Ventures, a global group of influential 
brands, digital platforms and strategic partners, as well as Silver Lake, 
GIC and PSP Investments. RVU's mission is to empower consumers by 
helping them compare home services and financial products, owning home 
services switching service Uswitch and financial comparison site Money 
as well as a mix of additional brands. It currently has around 250 
employees and is based in London. 
 
   Additional notes on the transaction: 
 
 
   1. Admiral's US comparison business, compare.com, is not included in the 
      transaction 
 
   2. The transaction is expected to slightly reduce the future earnings of the 
      Group 
 
   3. Elena Betes, Director of Penguin Portals, together with the Penguin 
      Portals senior management team, will be transferring with the businesses 
 
   4. The MAPFRE Group legal entities are MAPFRE Espana Compania de Seguros Y 
      Reaseguros (selling its 25% share in Rastreator) and MAPFRE S.A. (selling 
      its 50% share in Preminen) 
 
 
 
 
 
 
 

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December 29, 2020 02:00 ET (07:00 GMT)

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