The unceasing turmoil at the top of insurance company Migdal has led the regulator to threaten to take dramatic enforcement measures at the company, among them a clear threat to revoke Shlomo Eliahu’s control permit. Less than twenty-four hours after yet another resignation from Migdal’s top management, this time that of Migdal Insurance Company’s chairperson Yiftah Ron-Tal, acting Commissioner of Capital Markets, Insurance and Savings Amit Gal has sent a strongly worded letter to parent company Migdal Insurance and Financial Holdings (TASE: MGDL).
Gal writes that he is considering invoking his powers "including a change in the permit for holding the means of control of an insurer", Migdal has announced. This "could relate to aspects of the controlling interest and its size, the relationship between the company and Migdal Insurance Company, and revision of the undertakings on shareholders’ equity that were given together with the said permit."
Migdal Insurance and Financial Holdings reports that the acting commissioner’s letter bears the heading "Continuing Instability in the Board and Management of Migdal Insurance Company". The letter is also addressed to the company’s controlling shareholders Shlomo and Haya Eliahu, to its board of directors, and to the board of Migdal Insurance Company.
"The failures and deficiencies that have characterized Migdal Insurance Company for a long period," the letter states, along with the high turnover in top management, "are worsening the significant management instability at the company," and continues "This in addition to the fact that Migdal Insurance Company has been run for a long period with no coherent strategic plan undermines Migdal Insurance Company’s stability and its proper management."
Published by Globes, Israel business news - en.globes.co.il - on November 10, 2022.
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