Israel Phoenix Assurance Ltd. (TASE:PHOE1; PHOE5) has decided to close down its retailing unit for marketing pension, with 120 employees to be laid off in the coming days. Phoenix has been Israel’s most profitable company in the insurance industry in recent years.
“Globes” has learned from sources that Phoenix plans selling its saving products, which are part of the long term savings and life risks division, headed by Daniel Cohen, many through insurance agencies.
Phoenix CEO: There is still big interest in Israel’s economy
The retail unit for pension marketing was established about six years ago, and it markets Phoenix products only. In the unit the company must pay fixed salary expenses, even if the marketers do not actually sell products. In contrast the payment to insurance agents is based only on commissions paid following a sale. Phoenix has concluded that the unit should be closed.
Market sources believe that many of the employees that will be laid off will be taken in by insurance agencies that the Phoenix owns. Phoenix has 3,100 employees and there are not expected to be any across-the-board layoffs throughout the company.
Phoenix CEO is Eyal Ben-Simon
Published by Globes, Israel business news – en.globes.co.il – on April 27, 2023.
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