The deal is subject to U.S. regulatory approval, Clal, a subsidiary of the IDB Holding (IDBH.TA) group, said in a statement on Sunday. If approvals are not obtained by December 15 each side will be eligible to extend the deadline by three months.

Clal U.S. Holdings owns U.S. insurer Guard Financial Group, which it bought five years ago for $120 million.

Clal Insurance said it would record a loss of 13 million shekels ($3.2 million) in the second quarter to cover costs associated with the sale. Once the sale is completed it would book a gain of 72 million shekels.

Last year Clal, one of Israel's top two insurers, sold Lloyd's of London LOL.UL insurer Broadgate Underwriting to Torus Insurance Holdings of Bermuda.

($1 = 4.03 shekels)

(Reporting by Tova Cohen)

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