“Israel’s economy is remarkable. When we emerge from the crisis, we will experience a positive explosion”
“Israel’s economy is remarkable. When we emerge from the crisis, we will experience a positive explosion”
Ronen Agassi, CEO of Migdal Group Insurance and Finance was speaking during Calcalist and Migdal's Investment and Finance conference
"We live in a country whose economy is remarkable: it is a successful business enterprise facing management challenges. The passage of time certainly increases the damage. I believe that when we emerge from the crisis, we will experience a positive explosion, but the longer this situation continues, the more difficult it will be. Despite this, I am optimistic and believe in Israel,” said Ronen Agassi, CEO of Migdal Group Insurance and Finance during Calcalist and Migdal's Investment and Finance conference.
On October 7, you headed Migdal, a company that manages NIS 450 billion for 2.5 million clients. What do you think was the first thing to do then?
Agassi: "On October 7th, I landed from Scandinavia two hours before everything started. Two hours after landing, the alarms started. The personal experience on October 7th is also relevant to the organization's experience because the organization shares the same soul and traumas as ours. Migdal is a very significant entity in the Israeli economy. On October 8, we encountered different populations, including people who lost relatives and distant family members. We have a service center in Ashkelon that provides critical services to the country. As an organization, it took us a few weeks to organize, but we could not take our time. We had to take care of the pensioners, the murdered, and the dead who are our insureds.”
You published a strategic plan according to which Migdal will present a billion-shekel profit per year. How do you intend to do it, and where do you see Migdal in three to five years?
Agassi: "Do you know where the gorilla sits in the forest? Wherever it likes. That's how Migdal was 15 years ago. It settled where it liked and was a very significant player. Since then, various internal and external challenges have arisen, partly due to a specific business profile. The big change we see and need to pursue is a renewed hunger for business, and we are definitely on our way there. I definitely see Migdal moving forward. We recently published a strategic plan with straightforward goals: we aim to earn a billion shekels a year, achieve a return on capital of at least 12%, and distribute dividends. These goals require extensive work behind the scenes. We offer a wide range of services, including elementary insurance, garage services, pensions, and wealth and financial solutions. We need to perform these tasks more correctly, accurately, and efficiently. I hope we can look back in 2027 and count the successes."
You are not in the race for acquisitions, particularly for acquiring a credit card company. Why?
Agassi: "We are definitely in the race and making acquisitions, which is public knowledge. We are at the core of Cellcom's control and have signed a joint venture with the Bank of Jerusalem, which will provide us with NIS 2 billion. It is true that we are currently not focused on acquiring a credit card company or certain real investments, primarily due to the need for capital resources. Our first goal is to pay a dividend."
In recent years, Migdal has suffered from administrative unrest. You have been on the job for a year and a half, and there are again frictions with the regulator. How does this affect you?
Agassi: "I would prefer there to be no friction with the regulator. I have been on the job for a year and a half, and I am enjoying it at Migdal. Both I and the management are engaged in significant, albeit challenging, daily tasks and are enjoying the journey. We still have a way to go until 2027. We have created a working environment at Migdal that allows professional freedom, backed by the board and senior management. The relationship with the regulator is an important channel, and we work transparently and listen to the regulator's directives. I hope that the additional and unnecessary noise will cease."
