Phoenix Holdings Reports Results for the First Quarter of 2023
Continues Growth in its Four Core Businesses: Insurance, Asset Management, Distribution and Credit
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Comprehensive income (NISm, after tax) (Graphic: Business Wire)
Highlights
-
The Group reports comprehensive income of
81 million NIS , reflecting an annual return on equity of 3.3% (normalized ROE 12.4%). Performance was impacted negatively by capital market performance (net208 million NIS ), due primarily to Israeli market volatility.
-
Continued growth in income from core businesses, with 34% year-over-year growth to
301 million NIS , compared to225 million NIS in the corresponding period last year, including improved P&C performance. -
Assets under management as of
March 31, 2023 grew to386 billion NIS . AUM growth in Q1 2023 resulted from continued inflows and8 billion NIS of new AUM from acquisition of Epsilon & Psagot’s assets; The Group believes its investment management capabilities is a significant competitive advantage. -
As of
March 31, 2023 , equity amounted to10 billion NIS after distributing dividends of177 million NIS with respects to 2022 profits. -
The Phoenix Insurance Company Ltd. (“Phoenix Insurance”) published an updated Solvency ratio of 211% with transitional measures and 149% without transitional measures as ofDecember 31, 2022 . - Moody’s, the international credit ratings agency, assigned an A2 insurance financial strength rating (IFSR) to the Phoenix Insurance with a stable outlook - the first time an Israeli insurance group was assigned an international rating.
- The Group continues to execute its strategic plan according to medium-term targets focusing on growth and high return on equity in all four-core business: Insurance, Asset Management, Distribution and Credit.
- In accordance with the Group’s strategy of creating and unlocking value across Group activities, the Company is assessing the possibility of introducing an international investor to the Phoenix Agencies, which is Israel’s leading insurance and financial distribution network.
-
Core non-insurance activities (asset management, agencies, and credit) contributed an after-tax comprehensive income of
100 million NIS in the first quarter of 2023, an increase of 6.4% compared to the corresponding period last year. -
Insurance activities recorded a net underwriting profit of
201 million NIS , an increase of 53% compared to the corresponding period last year, mainly due to P&C activities. -
Premiums grew by 20% and 15% in the P&C and Health insurance businesses, respectively, while total premiums & contributions in the Life & Savings segment decreased due to capital market performance and savings policy contributions. Total premiums and contributions in Q1 2023 amounted to
NIS 4.4 billion , compared toNIS 5.5 billion in the corresponding period last year. -
The equity attributable to the Company's shareholders amounted to
10.0 billion NIS as ofMarch 31, 2023 , following the distribution of a dividend of177 million NIS from 2022 profits, paid inApril 2023 , and the buyback of approximately6 million NIS in shares during the Q1 2023, as part of the Company’s100 million NIS 2023 buyback program. -
As of December, 31 2022, the Phoenix Insurance solvency ratio was 211% (including transitional measures), compared to 190% as of
December 31, 2021 (149% without transitional measures compared to 117%), a significant improvement. The Group’s management believes that its capital adequacy and high liquidity serve as significant competitive advantages for meeting its strategic targets, create high ROE and maximizes business opportunities. -
The
Phoenix continues to execute against strategic objectives, while maintaining its investing in infrastructure (people and technology) for the benefit of its clients.
“Phoenix’s core business results in the first quarter of 2023 reflect the continued implementation of our profitable growth strategy in all four areas: Insurance, Asset Management, Distribution and Credit. They also demonstrate significant competitive advantage in our diversified business activities amid a changing market environment.
Profits were impacted by volatility in the Israeli capital markets in the first quarter, but we are seeing an improvement in the second quarter. The
We will continue to focus on return on equity by actively managing all levels of the Group to optimize business opportunities. The
I am proud that Phoenix Insurance became the first large insurance company in
I would like to thank our customers, employees, as well as our business partners and board members for the contributions they have made to ensure the success of the Phoenix.”
The
The following are highlights from the Q1 2023 financial statements:
Comprehensive income to shareholders:
The total comprehensive income to shareholders in Q1 2023 was 81 million NIS, reflecting a return on equity to shareholders of 3.3%. The profit in Q1 2022 amounted to
The decline in profit compared to the prior year relates mainly to the effects of capital markets and a lower impact of interest rate increases on insurance liabilities compared to the corresponding period last year.
Comprehensive income before tax from core activities and the impact of the interest rate increase and the capital markets:
Comprehensive income before tax for Q1 2023 was 132 million NIS, compared to
Comprehensive income before tax from core activities in Q1 2023 was
Shareholders’ equity and Assets Under Management:
The equity attributable to the Company’s shareholders amounted to 10.0 billion NIS as of
Assets under management as of
The following are the main financial results of the Group's activity segments:
(For more details regarding changes in financial results, see the Company’s Financial Statements and investor presentation)
P&C:
The total pre-tax profit in Q1 2023 was 76 million NIS, compared to a total pre-tax loss of
The total pre-tax profit in Q1 2023 was 150 million NIS, compared to a total pre-tax profit of
Life and Savings:
The total pre-tax loss for Q1 2023 was 77 million NIS, compared to a profit of
As of publication date, the variable management fee deficit was
Asset Management - Provident and Pension Funds:
The total pre-tax profit for Q1 2023 was 20 million NIS, compared to
Asset Management – Investment Services (including Phoenix Investment House, formerly Excellence):
The total pre-tax profit for Q1 2023 was 51 million NIS, compared to
Agencies:
The total pre-tax profit for Q1 2023 was 73 million NIS, compared to a profit of
Credit (including Gama):
The total pre-tax profit for Q1 2023 was 28 million NIS, compared to
Conference Call Information
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Email: [email protected]
Tel: +972 (3) 733-2979
Email: [email protected]
Tel: +1 (212) 517-0810
Source:
Material Agreement – Form 8-K
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