The deal aligns with Phoenix’s long-term strategy to enhance its presence in the property and casualty (P&C) sector while ensuring sustainable and profitable growth. Credit: David Gyung/Shutterstock.

Phoenix Financial has reached a loss portfolio transfer (LPT) reinsurance agreement with Ayalon Insurance to extend its P&C insurance operations. 

The agreement encompasses 75% of outstanding claims from an employer’s and third-party liability portfolio, valued at approximately NIS930m ($258.1m) from underwriting years 2010–22.  

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This transaction enables Israeli financial, insurance and investment group Phoenix to enhance its P&C operations without impacting its solvency or necessitating additional capital. 

Phoenix Insurance’s international rating has facilitated the agreement, allowing the company to offer reinsurance in the Israeli market.  

The deal aligns with Phoenix’s long-term strategy to enhance its presence in the P&C sector while ensuring sustainable and profitable growth. 

The transaction is currently pending regulatory approval from the Commissioner of the Capital Market, Insurance and Savings Authority.  

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Phoenix Financial CEO Eyal Ben Simon said: “The LPT agreement with Ayalon is a milestone in the Israeli market, allowing us to grow strategic P&C activities based on our strong market position and solvency, without requiring additional capital.  

“As an innovative reinsurance structure between two Israeli insurance companies, this transaction demonstrates our ability to achieve wholesale operational growth in P&C with attractive economics while maintaining financial stability.” 

Founded in 1949, Phoenix Financial trades on the Tel Aviv Stock Exchange with activities spanning multi-line insurance, asset management, credit and financial product distribution. 

In September this year, Phoenix Financial announced its strategic and financial targets for 2027.  

The targets for 2027 reflect the continued implementation of the group’s value-creation strategy that has transformed Phoenix from an insurance company into a financial services operation. 

The strategy includes four levers for value creation: accelerated growth in high margin, capital-efficient activities; innovation for competitive advantage and efficiency; active management across all business areas; and effective management of capital and investments.