Clal Insurance is cutting its losses and scaling back activities, in the course of which it’s selling its insurance activity in Romania according to ‘Haaretz,’ HotNews.ro informs.
The company, headed by Shy Talmon, is selling the Romanian operation to a group of local businessmen for half a million euros. Clal Insurance will be recording a loss of NIS 20 million on its Romanian adventure.
Clal Romania was founded in late 2006 and caused its Israeli company little but heartache. Altogether Clal Insurance invested USD 23 million in the Romanian outlet, which had 152 employees. For the year 2008 Clal Insurance reported a loss of NIS 24 million on Clal Romania, roughly the same as in 2007.
During 2008, Clal Insurance tried to bring Mordechay Zisser’s company Elbit Imaging into the insurance venture. Elbit Imaging has done quite a bit of investment in Romania since 2001, when it first entered the Romanian real estate market by storm. However, not only didn’t Zisser come on board, Elbit Imaging is involved in a legal dispute with Clal Insurance over a USD 6 million loan it gave to Clal Romania.
In February, seeing that Elbit Imaging wasn’t about to join fates with it Clal Insurance decided to stop the bleeding and entered negotiations to sell its Romanian company.