An unusual and completely unique deal: for 680 million dollars Phoenix Insurance Company (Israel) goes into the hands of “Abu Dhabi Developmental Holding”.
This operation is part of a context of intensive cooperation. Israel and the United Arab Emirates (of which Abu Dhabi is a part) have seen their trade exchanges jump to reach around $1.2 billion by 2021. An investment treaty signed between the two countries to define the infrastructure that allows mutual investment , has been negotiated and signed very recently. During the first half of 2022, trade (import and export) with the United Arab Emirates reached $774 million.
Founded in 1949, Phoenix is one of the companies that grew with Israel. Phoenix Holdings Ltd, formerly known as Phoenix Holdings Co Ltd, is an Israel-based holding company. The company provides a range of products and services through two segments: insurance and investments. The insurance industry’s offerings include, among other things, car insurance, home insurance, mortgage insurance, travel insurance, life insurance and health insurance. The investment segment offers a wide range of long-term savings solutions, investment products and platforms for independent trading on the capital market. The company is active at the local level.
MOST. Israel’s largest insurance company is changing hands, with Abu Dhabi Developmental Holding Company (ADQ) agreeing to acquire 25% of Phoenix Insurance Company for NIS 2.3 billion (about $680 million) from US funds Centerbridge and Gallatin Point Capital.
As part of the deal, Phoenix executives, led by CEO Eyal Ben Simon and chairman Benny Gabbay, will buy a 2% stake in the company while committing to remain with the company for the next five years. Gallatin Point Capital retains a 6% stake in Phoenix.