U.S. Markets

Former Admiral CEO to join board as wife takes stake

LONDON (Reuters) - The former boss of Admiral is to join the board of U.S. comparison website as part of a deal that sees his wife inject $25 million into the company, the car insurer said on Thursday.

Diane Engelhardt, the wife of former chief executive Henry Engelhardt, will hold 17 percent of, with Admiral holding 59 percent and White Mountains and Mapfre USA the remaining 24 percent, Admiral said in a statement.

The investment will be made at a 15 percent discount to the valuation of previous funding rounds, reflecting challenging current trading conditions, the company said.

As a result, Admiral said it expects to record an impairment against the carrying value of Compare with its full-year results in line with the guidance at the 2018 half-year results of $8-$13 million.

“As outlined at our half-year results, Compare is facing challenging market conditions in 2018,” David Stevens, Admiral Group CEO said.

“I remain optimistic over the long-term potential for the price comparison channel in the US and I very much look forward to having Henry as a close partner to continue building on the strong foundations already in place at Compare.”

The Engelhardts currently hold 10.1 percent of Admiral’s issued share capital and are classified as related parties of Admiral, the company said, although the Board was satisfied the deal was fair and reasonable to shareholders.

Reporting by Simon Jessop, editing by Sinead Cruise