Israel-based financial, insurance, and investment group Phoenix Financial has announced a loss portfolio transfer (LPT) reinsurance agreement with Ayalon Insurance Company Ltd.
The agreement marks a strategic move to expand Phoenix's property and casualty (P&C) insurance operations while maintaining financial stability.
The agreement involves transferring 75% of outstanding claims in Ayalon’s employer and third-party liability portfolio, valued at approximately NIS 930 million. The claims pertain to underwriting years spanning from 2010 to 2022.
Phoenix said that the transaction supports its efforts to grow its P&C operations without impacting its solvency ratio or requiring additional capital. By leveraging its international insurance rating, Phoenix noted that it is positioned to provide reinsurance within the Israeli market, contributing to its expansion strategy.
The move aligns with Phoenix's long-term goal to increase exposure to the P&C sector while ensuring growth remains sustainable and financially sound. The agreement remains subject to regulatory approval from the Commissioner of the Capital Market, Insurance, and Savings Authority.
Eyal Ben Simon (pictured above), CEO of Phoenix Financial, described the agreement as significant for the Israeli insurance market, facilitating P&C growth without additional capital investment.
"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,” Simon said.
Phoenix Financial manages approximately US$130 billion in assets across insurance, asset management, credit, and financial product distribution. The company’s activities span multiple financial services sectors and have demonstrated consistent performance across various market conditions.
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