Not just Clal Insurance: Yoram Danziger will also look at what...

Board of Directors of the Insurance Group tower Appointed the retired Supreme Court justice Yoram Danziger The chairman of the independent committee, which is intended to examine and discuss “matters arising from shareholders’ inquiries that sent the company a warning letter before filing a derivative claim,” is based on a scathing letter sent by the commissioner of the Capital Market Authority to the company. Who serves as an IDF member in the M.grows up. OhThe said committee is not part of the understandings with the regulator, and it was not established on his opinion.

For Danziger this is the second insurance group he comes to examine during 2020, following storms that befell them and led to an unusual and significant intervention by the Commissioner of the Capital Market, Dr. Moshe Barkat. The previous time was Clal Insurance, where Danziger led an external investigation into the circumstances surrounding the eviction attempt. Of CEO Yoram Naveh by the chairman Danny Naveh, and without the knowledge of the board of directors. In the end, the said dismissal attempt failed, while the chairman left Clal Insurance.

In addition, Danziger is currently conducting another significant inspection in the supervised financial world – at Bank Hapoalim. The actual investigation is conducted around the two cases in which the bank, under previous managements, got involved with the US authorities, and had to pay billions of shekels in order to close them.

Barkat is dissatisfied with Elijah’s role in the agencies

The basis for the derivative claim that led the board of directors tower Appoint the independent committee is the regulator’s letter from mid-July. In this letter, the commissioner clarified his position, according to which “for some time now, an insurance tower has been characterized by significant instability in its senior administrative spine,” which has led the authority to “closely monitor the conduct of an insurance tower for more than a year and a half, including Eliyahu (Shlomo Eliyahu). The controlling shareholder in the Migdal Group, R. S.) who serves as the Chairman of the Company’s Board of Directors and a director in Migdal Insurance and the involvement of the Company’s Board of Directors in the affairs of Migdal Insurance.

The authority further clarified at the time that its examination indicated a number of events which indicate Elijah’s malfunction in violation of the obligations imposed on him by virtue of the law, “including leading the company’s board to take over the powers of Migdal Insurance’s board in violation of the law.”

The confrontation between Barkat and Eliyahu began earlier this year with the move to remove Nir Gilad from the position of chairman of Migdal Insurance Company after a very short tenure. The decision to remove Gilad was made unanimously by all members of Migdal Holdings’ board, and led Barkat to intervene and stop the removal. At least until the end of 2020) and prevent changes in the board of directors of Migdal Insurance Company.

In recent days, Eliyahu seemed to align with Barkat’s demands, when he retired under his leadership as a director of Migdal Insurance Company, while remaining chairman of the parent company Migdal Public Holdings. Of Gilad.

But it is still too early to say that the affair is behind a tower; Gilad refuses to retire before the end of his contract (signed for five years), and the appointment of Rosen, and another designated director, Carmi Gilon, has not yet been approved. Meanwhile, it became known that the candidate for replacing Eliyahu at Migdal Insurance Company is Shlomo Palombo, who will be closely inspected by the Supervisor of the process of his proposal for a director at Migdal Insurance Company.

In any case, in terms of supervision, Shlomo Eliyahu’s position as chairman of the group’s insurance agencies board is not acceptable and he is waiting to see how the group’s board will act in this matter. The supervision sees a problem in this matter because the agencies are actually subordinate to Migdal Insurance and the appointment of a controlling shareholder. R of insurance agencies is a performance and inappropriate appointment.

However, Barkat made it clear that any change in the tower is frozen unless it gives prior approval. That is, until he publishes his test report to the tower. The report is expected to be published later this week, after which the regulator will wait to see how the company is prepared and changes in accordance with its recommendations in the report.

Clal Insurance aligns with the Commissioner

Apropos Clal Insurance And its relationship with the regulator, at the beginning of the weekend we revealed on the “Globes” website that the Clal Insurance Holdings group aligns with the regulator’s requirements when it transfers to its main subsidiary, Clal Insurance Company, most of the amount raised in a stock issue in December 2019. NIS out of NIS 620 million net raised in the issue of such shares, against a capital note at market interest rates. This is in accordance with the requirement of the Commissioner Capital Market Authority .

The move taken by the board of directors of the Clal Insurance Group, led by CEO Yoram Naveh, happened after the commissioner prevented Clal Insurance from enjoying the full relief included in the provisions of the new regulatory capital regime (which stopped the release of NIS 855 million in terms of Clal Insurance).

It now appears that Barkat’s move may change, which together with the capital injection into the subsidiary will significantly improve its regulatory capital position for solvency purposes, and provide it with much more managerial flexibility and business development capability alongside reducing its financial leverage.