weSure Global Tech Group announces a significant and strategic investment Agreement with a AmTrust a leading American financial and insurance institution.
AmTrust is expected invest a total of ~ NIS 72.6 million in weSure Global Tech’s share capital in two stages. Initially, an investment through a private placement of NIS 16 million will be made , at a price of NIS 3 per share, up to a holding of about 5% of the company’s share capital. In the second stage, which is subject to regulatory approvals, an additional 10% share holding will be issued to AmTrust, for the investment of the remaining amount in cash (~ NIS 20.7 million, at a price of NIS 3 per share), as well as through the conversion of the existing loan of NIS 35.6 million into ordinary shares, based on an updated conversion price of NIS 4.8 per share, instead of the originally stated NIS 6.3 per share.
Subject to the completion of all stages of the transaction including receiving an Holding Permit, AmTrust is expected to hold about 14.8% (fully diluted) of weSure Global Tech’s shares.
This transaction, which is strategic for Global Tech, is expected to further strengthen weSure Global Tech’s equity, reduce its financial leverage, and further enhance the cooperation with the strategic investor, AmTrust in the group’s activities in Israel and the USA.
AmTrust Group is one of the leading insurance groups in the US in the Commercial Insurance segment. The Group is the third largest in the Worker Compensation insurance Line of Business. AmTrust has worldwide operations in dozens of countries.
The relationship between the two Groups began in 2022 when weSure Global Tech signed several strategic investment and business cooperation agreements with AmTrust including a direct investment for a 30% shareholding in weSure’s US MGA subsidiary -weSure Digital Insurance Services Inc, that markets and underwrite business insurance products in the USA.
In addition, AmTrust also provided to weSure Global Tech a 10-year Convertible Promissory Note in the amount of ~ NIS 35,6 million (~ $10 million), which as mentioned, will be converted into wesure Global Tech shares at an updated price, upon fulfilling all the applicable conditions in the current Private Placement Agreement that was signed.
The agreement also includes agreed alternatives and courses of action, in case that AmTrust will not receive a Holding Permit, which will allow it to hold more than 5% of the weSure Globaltech’s shares.
This significant development follows weSure Global Tech’s announcement Last week of the completion of the group’s reorganizational changes following the approval by the general assembly of Ayalon and obtaining all the permits for the Closing of the Push Down including the updated Controlling Permit from the Insurance and Capital Market Authority. Following the Push Down, weSure Global Tech now holds ~ 74% of Ayalon Insurance Company shares, and Ayalon holds all shares of weSure Insurance company.
weSure Global Tech is an Insurance and Technology Group that launched its business activities in Israel in 2018. The company and its subsidiaries aim to lead the digital and technological revolution, which has been happening in almost all industries in the recent two decades, and less so in the conservative Insurance, Finance and Banking industries. The strategy of the group is to lead these changes initially in Israel and than in other countries including the USA. The group aims to transform insurance products and process, perceived by the public as complex and confusing, into more intuitive and straightforward products and workflows. To do so in all the life cycle of insurance activity form the quote stage, to the acquisition and ongoing servicing of the policy including claim filing, all to be done online and independently by retail agents and customers. weSure global Tech continually strives to maximize efficiency via automation, make insurance available 24/7, with transparent and flexible interfaces for customers and agents, using various advanced technologies, data-driven processes, data analytic capabilities including AI tools, and the integration of “smart” algorithms in different insurance processes to have more precise pricing and superior underwriting, reducing the use of paperwork and physical forms, for the benefit of all its users.
Emil Vainshel, Chairman of weSure Global Tech: “We are very proud to have AmTrust Insurance and Finance Group becoming a significant shareholder in weSure Global Tech , it is a strong vote of confidence in our Group, as well as in the Israeli Insurance and Technology industry. The investment by a leading successful international insurance Group such as AmTrust in weSure, and the ongoing cooperation between the companies, should further enhance our development both in the USA and in Israel. After completing lately the re-organization of the our insurance companies in the group in Israel via the Push Down transaction with Ayalon, We are further progressing in establishing and expanding our operations in the USA Commercial P&C insurance business. As of the beginning of 2024, we are offering in 8 states Business Owner Policy (BOP), a property and casualty insurance Package for Small and Medium Enterprises (SMEs). These days, weSure’s activity is expanding its offerings to additional products, as well as entering additional new states. The current investment by AmTrust is undoubtedly another important step in the Group’s development and strategy plan.”
