Menorah Mivtachim paid NIS 147 million. The acquisition narrows the gap with Phoenix Assurance, Israel’s third largest non-life insurance provider.
The consolidation in Israel’s insurance industry is continuing. Menorah Mivtachim Holdings Ltd. (TASE: MORA) has acquired Shomera Insurance Co. Ltd. from Sinai Insurance Holdings (1993) Ltd. (TASE:SINS) for NIS 147 million. Menorah is also acquiring Sinai Insurance Ltd. one of Israel’s largest providers of non-life insurance. With this acquisition, Menorah is closing the gap with Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5), Israel’s third largest non-life insurance provider.
Almost all of Sinai Insurance Holdings’ business and value comes from Shomera. Sinai Insurance has a market of NIS 88 million; the sale price for Shomera reflects a premium of 67%. Despite the high premium, insurance industry sources believe that Menorah paid a fair price, given Shomera’s growth and profitability.
Shomera was founded in 1943. Until the early 1990s, the company provided plate glass insurance for the business sector. Sinai Insurance Holdings acquired it in 1986. Shomera began providing non-life insurance in 2002. It does not offer life insurance policies. It is Israel’s smallest insurance company, and works with private customers, mostly providing vehicle and property insurance for homes and businesses.
Published by Globes [online], Israel business news - www.globes.co.il - on August 9, 2007
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