Discount Bank will guarantee IAI deal with State of India for $600 Million. CRS led this deal by reinsuring $480 Million, with AA Reinsurers.

The Bank’s guarantee will be the main part of the agreement – the sale of Barak’s missile systems for $ 1.6 billion. Bank Discount was the only bank that managed to place the guarantee within two weeks, reinsured 80% of the guarantee and thereby reduced its exposure to $120 million.

Calcalist has been informed that the bank’s exposure to international AA reinsurers has been made possible through Capital Relief Solutions (CRS). Owners, Esti Friedman and Itzik Klein approached the reinsures to (Re)insure 80% of the guarantees.

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Reinsuring the Housing Bonds Portfolios of Israeli banks with Global Reinsurers, led by CRS, released Real Estate financing pressure.

A few months ago, Dr. Hedva Ber, the Director of Banks, decided that this would enable a relief for the banks and allow an increase to their credit. Moreover, the Bank of Israel estimated that this relief in return would increment the value of real estate credit by 10 billion NIS.

Just this past year and half, the majority of the banks acquired insurance from reinsurers to protect credit in the Sales Law Guarantees portfolio which is estimated at 70 billion NIS.

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Yes to capital adequacy in Israel 



The process in Israel was reducing credit growth and mortgage business (and thereby increasing the cost of mortgages), selling credit portfolios to institutional bodies and hedging activities – meaning a waiver of future profits, such as sales law guarantee insurance portfolio’s. Now the expectations are that the banks could increase credit growth and dividend distribution

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Mizrahi Tefahot Bank reinsured NIS 15 Billion of its Housing Bonds Portfolio with Global Reinsurers – Led by CRS

Bank Mizrahi Tefahot insured Sales Law Guarantees for Housing Bonds contracts in the amount of 15 Billion NIS. They are not the first join, as Bank Leumi, Hapoalim and Discount already insured their Housing Bond Portfolios. This transaction will improve the capital adequacy ratio of the Bank by 0.25% and improves its ability to grow in its Credit portfolio.

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Hapoalim Bank reinsured NIS 27 Billion of its Housing bonds portfolio with Global Reinsurers – Led by CRS

Bank Hapoalim has finalized agreements with highly ranked international Re(insurers), to acquire its housing bond portfolio. The insured part of the portfolio is valued at 27 billion NIS, while the insurance policy protects the bank in case it is required to pay funds to realization of the guarantees.

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Discount Bank improved its capital adequacy; reinsured its NIS 2.9 Billion performance bonds portfolio – Led by CRS

Discount Bank recently completed a deal with international (Re)insurers rated at least AA- which insured 80% of the portfolio in the amount of NIS 2.9 billion, which includes performance guarantees given to customers of the Bank’s business division. These customers include defense sector exporters, real estate contractors, infrastructure projects and public transportation projects.

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