NEW YORK (Dec. 2)
The three major Israeli insurance companies which participated in formation of the Citadel Life Insurance Company here are expected to retain a small interest in the company following its proposed merger with Trans World Life Insurance Company, Citadel officials said today.
The boards of the two companies, it was announced, have “approved in principle” merger of the two companies on the basis of an exchange of stock. The tentative ratio is one share of Citadel for three and a quarter shares of Trans World. Citadel was reported quoted in a narrow market today at $28-$30 a share and Trans World, at $8 to $9.
Three Israeli insurance companies, Hasneh, Migdal and Zion, originally provided 30 percent of the capital to organize Citadel Life in 1960. In recent months they have disposed of the greater part of their holdings, mostly to Investors Funding Corp, of New York, whose chairman, Jerome Dansker, became president of Citadel Life. The Israeli companies are believed to retain about seven percent of the stock in the company.
Trans World is a newcomer, having begun operations only in July, 1964. The two companies together, according to their joint announcement, have a combined total of nearly $78,000,000 in life insurance in force and combined assets of $3,737,000. If the merger proposals are approved by the stockholders of the two companies and the regulatory agencies, the combined companies are expected to operate under the Citadel name since Citadel is licensed in the states of New Jersey, Connecticut and Pennsylvania as well as New York. Trans World is licensed only in New York.
Mr. Dansker, who is chairman of the Israel Maritime League, will be president of the merged company. Moshe B. Pomrock, former Hasneh manager in Haifa, who has been chairman of Citadel Life since its inception, is said to be no longer active in the management although he continued as chairman after Mr. Dansker assumed the presidency.