Clal Insurance, a subsidiary of the IDB Holding Corporation, announced on Wednesday the acquisition of US insurance company Guard Financial Group for USD 120 mil. Clal will pay an interest rate of 6 percent per year until the deal is transaction is completed.
Guard, a private US based insurance company, deals primarily with insuring workplace accidents. The company primarily works to cover medical fees and compensate those whose performance abilities have been compromised as a result of a work-related cause.
Employers in most American states are required by law to insure their workforce. The terms and rate of the policies are dictated by a state operated supervision department which oversees insurance matters.
The company is based in Wilkes-Barre, Pennsylvania and is licensed to practice insurance in 44 states, though it currently only operates in 22. The company has over 33,000 clients and some 500 agents working on its behalf.
Clal estimate that the three-year deal will be signed in a few months and will partially be financed by independent bank sources. After the deal is signed with Guard co-founders Judd and Susan Shoval Clal intends to upgrade the employment conditions of key staffers in the company.