15 September 2017Insurance

Sirius unveils $0.7bn acquisition plan in Israel

Bermuda-based insurer Sirius said on Sept. 14 that it entered into a definitive agreement to purchase of 4.9 percent of Israel’s The Phoenix Holdings from Delek Group for NIS 208 million ($59.04 million) in cash.

As part of the agreement, within 45 days of its signing, Sirius will submit an application to the Israeli Commissioner of Capital Markets, Insurance and Savings to receive a permit to control the insurance company. Sirius has an exclusivity period of 60 days to conduct due diligence, during which time Sirius has the option to purchase all of Delek Group’s remaining shares in The Phoenix (approximately 47.35 percent) for an additional sum of NIS 2.3 billion in cash, subject to certain adjustments for interest and earnings.

Allan Waters, CEO of Sirius International Insurance Group, said: “The Phoenix has been a Sirius business partner for decades, and it is one of Israel's leading insurance and financial services companies. Through The Phoenix, Sirius plans to offer new products to the Israeli market, and views this as an opportunity to develop new technology solutions, while protecting the interests of the Israeli public insured by the company.”

The Phoenix writes life, property and casualty insurance, and also owns a credit card clearing house and Excellence, an asset management business. The Phoenix had $3.5 billion (NIS 12.5 billion) in revenues in 2016 and $30 billion (NIS 106 billion) of assets as of June 30, 2017.

Waters added that Sirius is confident that the Israeli Commissioner of Insurance will approve Sirius as a controller of The Phoenix, given Sirius’s long-standing insurance expertise and strong regulatory oversight in New York, the UK, Sweden, Bermuda, Singapore and more.

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More on this story

Insurance
28 November 2017   Rating agency AM Best has placed Bermuda-based Sirius International Group's (SIG) outlook "under review with negative implications" following the company's recent announcement to acquire control of Israeli insurer Phoenix.
Insurance
27 November 2017   Bermuda-based Sirius International Insurance Group has decided to buy Israeli conglomerate Delek Group's remaining 47.35 percent holdings in insurer Phoenix for a cash sum of NIS 2.3 billion ($656 million).
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25 July 2017   Bermuda-based Sirius Group has strengthened its casualty reinsurance platform established last year with the addition of Erik Soria as vice president, casualty.