Just before the Ministry of Finance reform that "killed" executive insurance came into effect at the start of 2013, Israel's largest insurance agencies each managed insurance premiums of more than NIS 1 billion while revenue from fees totaled many tens of millions of shekels. In 2012, the joint revenue of the eight insurance agencies in the Dun's100 rankings totaled NIS 692 million.
The Dun's 100 ranking of insurance agencies by Dun & Bradstreet Israel found that Israel's largest insurance agency for many years remains - Mivtach Simon controlled by Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) with 2012 premiums paid of NIS 190 million, 6% down on 2011.
Ranked in second place was Agam Leaders, owned by The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) and partners Itzik Oz and Moshe Sasson, which saw income from fees rise 35% in 2012 to NIS 113 million. In premiums paid Agam was ranked in fourth place in the sector behind Shekel Group, owned by the Phoenix (with premiums paid of just over NIS 2.1 billion) and Tmura, owned by Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) (with premiums paid of just under NIS 2 billion).
Ranked in third place in terms of income from fees was Madanes, owned by Shuki Madanes and Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), had revenue from fees of NIS 103 million on a premium turnover of above NIS 1 billion. Shekel and Tmura had revenue from fees totaling NIS 93 million and NIS 82 million respectively.
Dun & Bradstreet Israel's annual rankings provide an interesting look at the results of some of the largest insurance agencies in the country, which are mostly private companies.
The largest agencies - Mivtach Simon, Agam Leaders, Shekel, Tmura and others - are major agents for executive insurance that was hit by the recent reforms led by the Ministry of Finance, and will harm sales of executive insurance. One reform is cancellation of assured coefficients for life expectancy as of January 2013, a main marketing advantage for executive insurance. The second is the planned reduction from 2014 of the maximum salary that will benefit from a tax exemption for pension savings.
Published by Globes [online], Israel business news - www.globes-online.com - on June 25, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013