Ayalon Holdings Group Ltd.
Ayalon Holdings Ltd. was founded at the end of 1976 by Mr. Levi Yitzhak Rachmani, through Shlomo Rachmani & Sons Co. and the foreign "New Zealand" insurance company. Shlomo Rachmani & Sons Co. was a family business agency that had been founded in 1949 by the late Mr. Shlomo Zalman Rachmani (father of Mr. Levi Yitzhak Rachmani) and has been active in the Israeli insurance market since the 1920s.
In April 1987, as a result of reorganization at the New Zealand Group, New Zealand decided to sell its holdings in Ayalon to the Rachmani Family.
In July 1987, Ayalon Holdings' (then called Ayalon Insurance Company Ltd.) shares were first listed for trading at the stock exchange.
At the end of 1994, Ayalon submitted a request to split the insurance business, according to sections 232-234 of the Companies Ordinance (New Version), 5743-1983, by way of transfer of its entire insurance assets and obligations to a new wholly-owned subsidiary that was incorporated in Israel on 28 December 1994.
On 3 January 1996, an order approving the split was received from the District Court. Accordingly, the company name was changed from Ayalon Insurance Company Ltd. to Ayalon Holdings Ltd, and the wholly-owned subsidiary, to which the insurance businesses had bene transferred, changed its name to Ayalon Insurance Company Ltd. On 19 April 2007, the company board decided to replace the company's articles of incorporation in order to adjust them to the new Companies Law.
The primary activity of the company is as a holdings company and provider of management and construction services in various fields to the company. Its primary activity is in the insurance and capital market field. In addition, the company has real estate activity.
The Insurance Field
The activity fields of Ayalon Insurance Company ltd. are long-term savings and general insurance, including: mandatory automobile insurance, automobile insurance – property, liabilities insurances, professional liability, contractors and engineering insurances and all other general insurance businesses.
Among the subsidiaries of Ayalon Insurance Company:
– specializing, among other matters, in pensionary arrangements (hereinafter: "Ayalon Trustees").
1. Ayalon Trustees Insurance Agency Ltd.
2. Ayalon HLV Properties and Investments Ltd. - which holds part of Ayalon Insurance House – an office building at 12 Abba Hillel Silver St., Ramat Gan, a structure that serves as the "Soldiers Home" in Ramat Gan, real estate used as housing clusters in Haifa and Bat Yam, as well as shares of Ziso Construction and Development Ltd. (see below) and half of the shares of M. Iran Construction and Holdings 2001 Ltd. (see below).
3. M. Iran Construction and Holdings 2001 Ltd. – the owner, holder and operator of a housing cluster in Kiryat Motzkin.
4. Ziso Construction and Development Ltd. - the owner, holder and operator of a housing cluster in Petach Tikva.
5. Ayalon Canada – the company invested in income-generating real estate in Canada. At the end of 2006l these investments were realized for capital gains of about 100% and the company has been inactive since.
Additional subsidiaries in the Group:
Ayalon Medical Risks Management Ltd. – handles, for a large international insurer, claims in the professional liability field for physicians and other health professionals that were insured in the past in Israel by MDU. For this activity, this company received handling fee.
Ayalon Medical Risks Management has two subsidiaries:
1. Hachi Hachi Ltd. – operates a call center and provides services of "Hachi Bari" Insurance Agency. Regarding the merger between Hachi Hachi Ltd. and "Hachi Bari" Insurance Agency, see note 7(B)(5) of the financial statements.
2. Keva Insurance Agency Ltd. – engages in sale of insurance, mainly to Hever Club members, and controls a subsidiary (100%), Hever Consumer, Finances and Investments Club Ltd.
3. "Hachi Bari" Insurance Agency Ltd. – markets individual and health insurances through a call center.
4. Eyal Zvi Ltd. – the operations company for a parking lot owned by Ayalon Insurance at the City Gate Building, Jerusalem, and manages housing clusters purchased in recent years from the nostro monies. The management of clusters includes cleaning, maintenance, security and collection.