Psagot Investment House Ltd. has acquired 25% of insurance agency Profit Financial Services Ltd.. Psagot acquired half the stake from Profit's owners and half through a stock allocation, reportedly for NIS 4 million.
This is Psagot's first acquisition under its strategy to expand its distribution network. The acquisition is probably not its last; sources at Psagot say that it is negotiations to acquire more agencies.
Psagot has a direct distribution network through Omega Insurance Agency, which it owns, and which markets all of Psagot's products. The acquisition of the stake in Profit is a strategic move designed to increase the exposure of Psagot's products to Profit's 15,000 business and private clients.
Profit markets insurance policies, pension and provident funds, and portfolio management on behalf of most of Israel's large investment houses and insurance companies. It has 36 agents, and plans to increase this number to 100 by 2010.
Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2009
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