UK-based insurer Admiral has signed new reinsurance contracts with Munich Re and Hannover Re for its new US motor insurance operation Elephant. Under the quota share deal, Munich Re and Hannover Re will each take one third of the US risks, with Admiral retaining the other third. The Hannover Re contract runs for up to 10 years, while the Munich Re agreement is for up to 15 years. Both agreements have break clauses, the details of which have not been revealed. Meanwhile in Europe, Admiral has extended its reinsurance agreements with Munich Re in Spain and in Italy to 15 years. Admiral said that the terms of the agreements had been revised to give Admiral higher commissions if results are "very positive". In the UK Admiral has extended its agreement with Munich Re by two years until at least the end of 2016. Munich Re will retain 40% of Admiral's UK risks, while Admiral will retain "at least 25%". The allocation of the remainder of the risk is at Admiral's discretion. CEO Henry Engelhardt said that "we have a long-standing relationship with Munich Re that is now likely to go on past 2020. We are very pleased that an organisation of such stature would have faith in us to commit to such a long-term agreement". He also noted that Hannover Re had been "a growing part of our reinsurance programme over the last two years and we look forward to continuing our mutually beneficial relationship for many years to come".