Phoenix Financial Ltd., an Israel-based financial, insurance, and investment group, has announced an impactful Loss Portfolio Transfer (LPT) reinsurance agreement with Ayalon Insurance Company Ltd. This move represents a significant expansion of Phoenix’s Property and Casualty (P&C) insurance operations, enabling the group to assume 75% of Ayalon’s outstanding employer and third-party liability claims portfolio. Valued at approximately NIS 930 million, the claims span underwriting years from 2010 to 2022. This strategic deal allows Phoenix to enhance its operational reach without affecting its solvency or demanding additional capital.
Part of the allure in this reinsurance agreement lies in Phoenix leveraging its international rating for reinsurance in the Israeli market. This transaction aligns with the company’s long-term strategy to strengthen its presence in the P&C market, ensuring sustainable profitability. The deal’s structure serves as a testament to Phoenix’s innovative approach in structuring reinsurance between two Israeli companies. Phoenix CEO Eyal Ben Simon emphasized that this agreement, still awaiting regulatory approval, stands out as a financially stable means of boosting Phoenix’s strategic activities in the P&C sector, combining economic attractiveness with robust financial stability.
