27 November 2017Insurance

Sirius to acquire control of Israeli insurer Phoenix

Bermuda-based Sirius International Insurance Group has decided to buy Israeli conglomerate Delek Group's remaining 47.35 percent holdings in insurer Phoenix for a cash sum of NIS 2.3 billion ($656 million).

In September, Sirius signed an agreement with Delek Group for the acquisition of 4.9 percent of Phoenix Holdings for NIS 208 million.

Sirius has completed its due diligence investigation of The Phoenix and is delighted that it was found to be a good fit with Sirius Group's business," said Allan Waters, CEO of Sirius International Insurance Group. "The Phoenix is one of Israel's leading insurance and services companies. Through it, Sirius will be able to offer new products to the Israeli market, receive access to Israel’s world-class technology center and the opportunity to develop insurance technology solutions, enhance its financial results, and protect the interests of the Israeli public insured by the company."

The new deal is subject to regulatory approvals.

Waters added: "Sirius is under strict regulatory oversight in all of the global markets in which it operates, including Bermuda, New York, the UK, Sweden, Singapore and others. We are confident in the sophistication of the Israeli regulatory system and we look forward to receiving approval for the acquisition of control. We intend to cooperate fully and transparently with the Israeli regulators, as we do with regulators around the world."

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More on this story

15 September 2017   Bermuda-based insurer Sirius said on Sept. 14 that it entered into a definitive agreement to purchase of 4.9 percent of Israel’s The Phoenix Holdings from Delek Group for NIS 208 million ($59.04 million) in cash.
28 November 2017   Rating agency AM Best has placed Bermuda-based Sirius International Group's (SIG) outlook "under review with negative implications" following the company's recent announcement to acquire control of Israeli insurer Phoenix.
12 February 2018   Bermuda-based Sirius International Insurance Group has entered into a three-year $300 million senior unsecured revolving credit facility through its indirectly wholly-owned subsidiary Sirius International Group.