Phoenix Financial Ltd., an Israel-based financial, insurance, and investment group, announced a key Loss Portfolio Transfer (LPT) reinsurance agreement with Ayalon Insurance Company Ltd.
The move supports the group’s strategic expansion of its Property and Casualty (P&C) insurance operations.
Ayalon Insurance will transfer 75% of its outstanding employer and third-party liability claims portfolio, valued at approximately NIS 930 million from underwriting years 2010 to 2022.
This transfer enables Phoenix to achieve growth without affecting its solvency or needing to raise additional capital.
The agreement is facilitated by Phoenix Insurance’s international rating, which allows Phoenix to provide reinsurance in the Israeli market.
Expanding property and casualty (P&C) operations through reinsurance supports Phoenix’s long-term strategy of increasing its P&C market presence while maintaining sustainable profitability.
This transaction is subject to regulatory approval from the Commissioner of the Capital Market, Insurance, and Savings Authority.
Eyal Ben Simon, CEO of Phoenix Financial, commented: “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.”
