Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH) unit Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) today completed the sale of its UK insurance business Broadgate Syndicate 1301 Ltd. and its subsidiaries to Torus Insurance Holdings Ltd. for ₤12 million (NIS 70 million). The sale comes ten years after Clal Insurance acquired Broadgate.
Clal Insurance estimates that, on the basis of it financial report for the third quarter, it will report a pretax profit of NIS 59 million (₤10 million) on the sale and a pretax profit of NIS 34 million (₤6 million) in its profit and loss statement. The final figure could change by the time the deal is closed.
Under the terms of the sale, Clal Insurance will continue to bear Broadgate's underwriting results for the years through 2011, inclusive, including insurance events occurring after 2011 that are covered by policies written through 2011. If necessary, the parties will indemnify the other.
IDB Development Corporation Ltd. owns 55% of Clal Insurance. Clal Insurance's share price rose 0.4% in morning trading at NIS 54.20, giving a market cap of NIS 3 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2011
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