Hachshara confirms Globes' exposé: will submit request to establish activity in the provident fund sector
Hachshara Insurance confirmed a Globes report and will submit a request to the Capital Market Authority to establish provident fund operations. The company aims to reach asset volume of 50 billion shekels within 3-4 years.
Hachshara Insurance confirmed today (Thursday) a Globes report that it is moving to enter the provident fund sector. In a report to the stock exchange, the company stated that its subsidiary has submitted a request for a license and control permit from the Capital Market Authority, in order to establish a management company and open operations in the field. Hachshara aims to reach asset volume of 50 billion shekels within 3-4 years, and to do so the company will need to inject about 500 million shekels from the parent company to pay commissions to insurance agents. Hachshara's entry joins that of Ayalon, which began operating last August and raised about 3 billion shekels, and of the agent house Profit, which is considering entering the field. The volume of managed assets in the provident fund industry has surged by 70% in the last three years, reaching 1.1 trillion shekels.