The transaction enables Phoenix to expand its P&C operations while maintaining financial robustness
The transaction builds on international rating, market leadership, and financial strength to develop new business
By transferring 75% of Ayalon Insurance's outstanding claim portfolio, the company achieves growth without impacting solvency or requiring additional capital
TEL-AVIV, Israel, Dec. 16, 2024 /PRNewswire/ -- Phoenix Financial Ltd., a leading Israel-based financial, insurance, and investment group (TLV:PHOE) ("Phoenix," the "Group," or the "Company"), today announced a key Loss Portfolio Transfer (LPT) reinsurance agreement with Ayalon Insurance Company Ltd., advancing its strategy to expand its Property and Casualty (P&C) insurance operations.
The agreement covers 75% of outstanding claims in an employer's and third-party liability portfolio valued at approximately NIS 930 million from underwriting years 2010 to 2022.
The transaction allows Phoenix to grow its P&C operations without affecting solvency or requiring additional capital, building on its strong financial position while increasing exposure to the P&C sector. The agreement is facilitated by Phoenix Insurance's international rating, which allows Phoenix to provide reinsurance in the Israeli market.
Growing P&C activities through reinsurance is aligned with Phoenix's long-term strategy of enhancing its presence in P&C while ensuring sustainable and profitable growth.
The transaction is subject to regulatory approval by the Commissioner of the Capital Market, Insurance, and Savings Authority.
Eyal Ben Simon, CEO of Phoenix Financial:
"The LPT agreement with Ayalon is a milestone in the Israeli market, allowing us to grow strategic P&C activities based on our strong market position and Solvency, without requiring additional capital. As an innovative reinsurance structure between two Israeli insurance companies, this transaction demonstrates our ability to achieve wholesale operational growth in P&C with attractive economics while maintaining financial stability."
About Phoenix Financial
Phoenix Financial Ltd. is a leading Israel-based financial, insurance, and investment group traded on the Tel Aviv Stock Exchange (TASE: PHOE). Group activities include multi-line insurance, asset management, credit, and financial product distribution, and have demonstrated strong growth and performance across the cycle. Phoenix serves a significant portion of Israeli households with a broad set of activities and solutions across businesses and client segments. Managing $130 billion in assets, Phoenix accesses Israel's vibrant and innovative economic activity through a robust investment portfolio, creating value for both clients and shareholders.
SOURCE Phoenix Financial Ltd.
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