The Gerling insurance group of Germany now owns 20% of Clal Credit Insurance, with an option to increase its stake to 40%. Gerling Germany: Cooperation will upgrade the service for customers trading with Israel.
The Gerling insurance group of Germany has bought from Clal Insurance another 10% of its subsidiary Clal Credit Insurance for $900,000. The deal brings Gerling’s holding in Clal Credit Insurance to 20%. The acquisition was made through Dutch insurance company Namur Re, a Gerling subsidiary.
Namur Re received an option, exercisable until June 30, 2003, to increase its stake in Clal Credit Insurance to up to 40%. Namur Re also has an option to resell its holding to Clal Insurance.
On June 29, 1999, Namur Re signed a contract to buy 20% of Clal Credit Insurance for $1.8 million. Under the law, the deal was contingent on the approval of Supervisor of Insurance.
Supervisor of Insurance Tzippi Samet refused to approve the deal, claiming that parent company Gerling was not offering compensation to the relatives of insureds who perished in the Holocaust. Namur Re therefore bought only 10% of Clal Credit Insurance. After the matter was settled recently, Samet removed her opposition, and the two parties could carry out their original deal.
Published by Israel's Business Arena on 5 March, 2001