The Brockbank Group, a subsidiary of Bermuda-based XL Capital Ltd. ("XL'') is to abandon the UK motor insurance market by selling both its motor insurance businesses, Admiral Insurance Services Limited ("Admiral'') and Zenith Insurance Policies at Lloyd's ("Zenith'') in separate management buy-outs.

"We feel we will get better returns by playing to our speciality lines,'' said Ian Martin, a director of Brockbank.

The offer for Admiral, backed by Barclays Private Equity, values the business at between 60 million ($96 million) and 80 million ($128 million). Admiral sells insurance directly to the public and employs 1,200 staff in south Wales. Earlier this year, Admiral was named Welsh Company of the Year.

The business was founded in 1993 and has grown rapidly to reach revenues of 200 million, with 500,000 customers. The bid which has been conditionally accepted is from a management buy-out led by Henry Engelhardt, managing director, and David Stevens, pricing and marketing director.

"Admiral is a leading brand within the motor insurance sector,''said Owen Clarke, of Barclays Private Equity. "It has outperformed other companies within its sector and looks set to continue the rapid growth experienced since its launch five years ago.'' Zenith is a long-established motor business with 136 staff based in Haywards Heath, West Sussex. The company distributes its products through the broker and intermediary channel, covering standard and non-standard private car, motorcycle and taxi insurance. The team will acquire the assets and liabilities of Zenith and will conduct the run-off of the existing business on terms expected to produce a broadly neutral result.

A management buy-out, also accepted in principle, has been made by a team led by Ken Acott, Zenith's underwriter.

Zenith has revenues of 65 million, with 175,000 policies in force covering standard and non-standard private car, motorcycle and taxi insurance.

Brockbank has been advised by Lehman Brothers in both transactions. Both deals must pass several hurdles before completion -- including approval by Lloyd's of London.

Commenting on the transactions, Brockbank's chief executive officer, Mark Brockbank, said: "Admiral is one of the great success stories of Lloyd's recent history and we are proud at Brockbank of having built the business to its current position in the UK motor market. However, exiting the UK motor market at this juncture will allow us to focus on our core strengths, which include specialty lines around the globe. The sale will result in a welcome windfall for its supporting members in Lloyd's.''.