Altshuler Shaham investment house is leaving the insurance sector and has sold its modest insurance activities to Eli Elezra's Israel Land Development Insurance Company Ltd. (TASE:ILDN). At the same time, Altshuler Shaham, which is managed by Gilad Altshuler and Ran Shaham, has acquired the holdings of Meitav Dash Investment House Ltd. unit Meitav Dash Benefits, which owns Meitav Dash Trusts (formerly SGS Trusts).
Altshuler Shaham Insurance was founded in 2014 and began operating last year in the personal life insurance risk sector. Altshuler Shaham is the second largest investment house to have established an insurance company after Psagot Investment House Ltd., which unlike other investment houses like Meitav Dash focuses on pensions and savings plans through collaborations. Now, Altshuler Shaham is leaving the insurance field due to the difficulties it has encountered in capturing a substantial market share, while promoting a provident investment product being pushed by the Ministry of Finance, which is designed as a saving policy.
Altshuler's insurance portfolio, which includes a financial portfolio (savings policy) worth NIS 350 million and a risk insurance portfolio worth NIS 8.5 million is being acquired by IDL Insurance. According to the terms of the agreement, IDL will not pay for the assets themselves except for payments to insurance agencies and a payment for financial margins and profitability of the products.
Altshuler Shaham is also buying control of Meitav Dash's trust services, which will now be called Altshuler Shaham Benefits. Meitav Dash is selling its 60% holdings for NIS 7.3 million plus some of the profits from the second quarter of 2016.
Published by Globes [online], Israel business news - www.globes-online.com - on July 4, 2016
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