Menora Mivtachim acquires the Alifim insurance agency at a value of NIS 280 million. Menora Mivtachim acquires 50% of the agency for NIS 140 million and may pay an additional NIS 10 million, depending on the agency’s future profitability and growth.
Read more in Calcalist:
Surprisingly, despite the rise in reliance on digital and direct marketing to customers of insurance companies, in recent years they are in the race to acquire the major insurance agencies. The acquisition turns independent insurance agencies into internal marketers mainly of insurance companies’ products.
In February last year, Clal Insurance acquired the Davidoff agency for NIS 68.5 million. Champions Agency, owned by Alexander Chernomordic and Best Capital 54, is considered a huge body in the agency industry with more than 400 agents and hence its expensive price tag.
The insurance company that is most characterized by agency ownership is Phoenix – the largest insurance company in Israel. Looking at the Phoenix reports will reveal that a significant portion of its growth in recent years in the insurance industry is due to the agencies. The insurance company owns agencies such as Agam Liderim, Oren Mizrah, Cohen Givon, Ramon Granit and more.
In any case, Menora Mivtachim, led by Yehuda Ben-Assayag, has an in-depth knowledge of a significant part of the championship. In 2019, Alifim acquired the Arnon insurance agency Weinstock, led by Yuval Arnon. The person who sold the agency was none other than Shomera, which Menora Mivtachim fully owns.
The sale price is unknown, but after the sale Shomera recorded a profit of only NIS 5 million (which to some extent implies a sale at a price of at most a few tens of millions). Today, it pays NIS 140 million for the background of the competition between the companies.