Israel
God renamed Jacob with the name Israel not once but twice. By naming Jacob, Israel, God was also naming His chosen people. For He chose the people from the line of Jacob and they became known as the nation of Israel.
The Meaning of the Name Israel
Struggles With God
Genesis 32.28 He said, "Your name will no longer be called Jacob, but Israel; for you have fought with God and with men, and have prevailed."
[This event happened immediately after Jacob wrestled with God.]
God Is Ruler
Genesis 35:10-11 God said to him, "Your name is Jacob. Your name shall not be Jacob any more, but your name will be Israel." He named him Israel. God said to him, "I am God Almighty. Be fruitful, and multiply. A nation and a company of nations will be from you, and kings will come out of your body.
[Here God is emphasizing how He rules over all, and how He will bring rulers from Jacob's line.]