New Owner Aims to Make Altshuler Shaham a Top Israeli Insurance and Finance Group

Emil Vinshel, co-owner and chairman of the insurance company Weeshore, has announced his intention to transform the recently acquired provident and pension activities of the investment house Altshuler Shaham into a significant insurance and finance group, aiming to rival the top five major Israeli insurance companies. This ambition follows Weeshore's acquisition of a 45% stake in Altshuler Shaham for 1 billion shekels, with CEO Yair Levinstein acquiring a 10% stake and holding 25% of the new entity, which is expected to be renamed.

The acquisition targets Altshuler Shaham's substantial assets, including 109 billion shekels in provident funds and 37 billion shekels in pension funds, alongside alternative investments and credit provision. Vinshel expressed confidence that the combined entity will be worth significantly more than the sum of its parts, drawing a parallel to Weeshore's successful turnaround of the Ayalon insurance company after its acquisition. He believes a similar transformation can be achieved at Altshuler Shaham with Levinstein's professional team.

Altshuler Shaham has faced challenges in recent years, experiencing significant asset outflows to competitors. Vinshel sees this acquisition as a strategic opportunity, noting that Weeshore has been seeking a suitable investment house acquisition for two years. He plans to maximize synergy with Ayalon, though he acknowledges that integrating the financial activities of the group's companies will require further work.

Vinshel is optimistic about improving Altshuler Shaham's returns, which have shown recent improvement, believing this will reduce fund outflows. He also highlighted that Levinstein's personal investment of approximately 200 million shekels further solidified their confidence in the venture. The deal is subject to regulatory approvals.