Migdal Insurance to Launch Savings Policies with Goldman Sachs
Translated & summarized from Calcalist by baba
Migdal Insurance will launch new savings policies in partnership with Goldman Sachs, offering equity and general investment tracks. This initiative aims to provide Israeli savers with greater investment diversification abroad, following a trend set by other Israeli insurers. Despite past challenges faced by similar collaborations, Migdal's leadership believes current market conditions favor increased international investment. The savings policy market in Israel is substantial, though often comes with higher fees than alternative investment vehicles.
The story in 6 lines · by baba
- Migdal Insurance is launching new savings policies in collaboration with Goldman Sachs.
- The new policies will be available in equity and general investment tracks.
- This partnership aims to offer Israeli savers increased investment diversification outside Israel.
- Previous similar collaborations by Phoenix, Harel, and Clal have faced mixed success.
- Migdal's CEO believes market sentiment has shifted towards international investment diversification.
- The savings policy market in Israel is valued at approximately NIS 130 billion.
Migdal Insurance is set to introduce new savings policies in collaboration with the investment giant Goldman Sachs. These policies, named "Migdal Keshet La'Prat," will offer two new tracks: equities and general investments. Goldman Sachs Asset Management, the investment management arm of Goldman Sachs, oversees approximately $4 trillion in assets as of June 30, 2026, providing services to institutions, financial advisors, and individual investors globally.
This move by Migdal follows a trend among major Israeli insurance companies to partner with global investment firms, aiming to provide policyholders with investment diversification outside of Israel. Phoenix Assurance pioneered this approach in 2022 by partnering with BlackRock, followed by Harel with Fidelity and Clal with State Street.
However, previous collaborations have faced challenges. Phoenix's policies with BlackRock saw a significant decline in assets, dropping from NIS 3.7 billion in November 2024 to NIS 990 million by the end of August 2026. Harel and Fidelity have also struggled to attract substantial funds since launching their joint offerings. This performance is largely attributed to market conditions in 2024 and 2025, when investors favored domestic Israeli stocks due to a strong local market rally.
According to insurance agents, Migdal's management, led by CEO Ronen Agassi, believes this market sentiment has shifted. They observe that Israeli savers are now actively seeking to increase the diversification of their savings beyond Israel. The savings policy sector currently manages around NIS 130 billion, compared to approximately NIS 70 billion in investment provident funds. While both are used for short to medium-term savings, savings policies are exclusively marketed by insurance companies through agents, often resulting in higher management fees and lower net returns for savers compared to investment provident funds.
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