Currently, ILD Insurance does not need to sell its holdings.
Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) recently approached ILD Insurance Co. (TASE: ILDH) with an offer to buy its life insurance portfolio. Market sources believe that only an initial contact was made, and talks were subsequently suspended. The sources note that Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5) once expressed interest in ILD Insurance's life insurance portfolio.
Eli Elezra's Elezra Holdings Ltd. (TASE:ALZR.B1) controls ILD Insurance through ILD Insurance Holdings Ltd. (TASE:ILDH). ILD Insurance is laying out a number of options to its bondholders for its NIS 60 million payment due at the end of this year. The sale of the company's life insurance portfolio is a radical option. However, the company has found financing for the payment, and therefore has no intention of selling its life insurance portfolio, its core business.
Earlier this year, ILD Insurance disclosed the embedded value of its long-term life and health insurance policies. The embedded value was NIS 294 million at the end of 2007. Harel's offer was apparently less than the embedded value.
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2008
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