Barclays private Equity is backing the management buy-out of direct motor writer Admiral Insurance from the Brockbank Group.

The deal values the company at between £60-80 million depending on performance over the next two years.

As part of the deal, managing director Henry Engelhardt, pricing and marketing director David Stevens, and finance and IT director Andrew Probert each retain an on-going equity stake in the business.

Brockbank also retains an equity stake.

The funding of the MBO incorporates highly innovative risk-sharing reinsurance arrangements which have allowed risk and regulatory capital requirements to be overcome.

Previously this has often provided an obstacle to MBO transactions in this sector.