Clal CEO: "2024 will be a great year for Clal"
Clal CEO: "2024 will be a great year for Clal"
CEO of Clal Insurance Yoram Naveh spoke at Calcalist and Bank Leumi’s National Economic Conference about Clal’s recent acquisition of the Max credit card company
Less than six months have passed since Clal Insurance completed the acquisition of the Max credit card company. Yorem Naveh, CEO of Clal, shared insights in an interview at Calcalist and Bank Leumi’s National Economic Conference on Tuesday.
Did Clal overpay in the Max deal?
"First and foremost, it's possible, but I believe we made an excellent strategic deal that underwent careful consideration and necessary processes. The price we paid was excellent. While there is market uncertainty today, the company is achieving record results, making it an excellent deal for all parties and the economy as a whole."
What are Max's chances, even with Clal's support, to compete with the banks?
"It's important to understand that credit card companies, which are shifting their focus from issuance and clearing to credit, are not in competition with each other but with the banks. We encourage competition in creating transactions. The value proposition of these companies is improving, and their marketing campaigns are effective as they receive good interest rates from the banking system. Encouraging competition was a key consideration for regulators when approving the deal. In a credit card company, raising funds and building reputation are crucial, and Max knows how to bring that to the table, along with future synergies."
Looking ahead, how do you perceive the Israeli economy amidst the judicial overhaul?
"Firstly, the Israeli economy is influenced by the global situation. Core inflation and the expected high interest rates for some time are significant factors affecting our economy. Our indices are also influenced by leveraged real estate. Our democracy is strong, growth is strong. I'm optimistic, and it's in our hands. The reform and the aggressive discourse may hurt us significantly and I think we have the ability to overcome the crisis through respectful discourse, compromise, and healing rifts."
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Are there any future moves planned after you complete the transaction?
"The first challenge is to consolidate what we have achieved. Max has excellent management and this year we will focus on getting things in order. I am sure that 2024 will be a great year for Clal despite the rising interest rates. A stable interest rate environment is not a bad thing for an insurance company and looking ahead it presents opportunities."
