Phoenix Insurance Company concluded the first quarter of 2021 with a total profit of NIS 356 million

The market value of the Phoenix Insurance Company is already over NIS 8 billion, and the company continues to establish its status as the insurance company with the highest market value in Israel. The company concluded the first quarter of 2021 with a total profit of NIS 356 million - according to the financial report that the company published this morning (Thursday), compared to a loss of NIS 577 million in the corresponding quarter last year. This is an annual return on capital of 19.1%.
The total assets managed in Phoenix (-0.54% 3145) amount to NIS 264 billion, not including the assets of the Electric Company managed in the Hellman Aldubi investment house, which the company acquired at the beginning of the year.
The increase in total profit is due to underwriting profit of NIS 167 million and profit from investments of NIS 131 million. The general insurance sector generated a total profit of NIS 178 million, compared with a total loss of NIS 222 million in the corresponding period last year. The results for the quarter were affected by the rise in the financial markets in Israel and around the world in light of the recovery from the corona crisis, which had a significant impact in the corresponding quarter last year.
In the area of ​​long-term savings, the total profit for the quarter amounted to NIS 290 million, compared with a total loss of NIS 256 million in the corresponding period last year.
The total profit before tax for the first quarter of 2021 in the health sector amounted to NIS 23 million, compared with NIS 50 million in the corresponding quarter last year. The results in the first quarter were positively affected compared with the corresponding quarter of 2020, mainly due to the increase in income from nostro investments of NIS 105 million, and changes in the interest rate curve of NIS 73 million.
On the other hand, there was a decrease in the underwriting profit of about NIS 205 million, which was mainly due to a decrease in the LAT reserve in the corresponding quarter in 2020 as a result of updating actuarial assumptions and other effects.
Excellence Investment House ended the quarter with a total profit before tax of NIS 30 million, compared to NIS 54 million in the corresponding quarter last year. The decrease was mainly due to the recognition of an unusual margin in market activity in the corresponding quarter last year of approximately NIS 15 million, and the fact that the company increased the number of brokerage clients.
The Phoenix owns several insurance agencies, and the total profit from the agencies before tax for the first quarter of 2021 amounted to NIS 52 million, compared with NIS 32 million in the corresponding quarter last year. Most of the increase in profit is due to the increase in agency activity and an increase in investment income.
The company refers to solvency regulations and notes that its solvency ratio without a deployment period is 116%, and with a deployment period 192%. When the target of the company with a deployment period is 150% -170%. Because the company stands by the ratio it has set, it will be able to distribute dividends.
The company has two other main activities - Gamma Clearing Services and the Nursing Home Network up to 120. Gamma will be issued in the coming weeks at a value of NIS 850-750 million, and the company is expected to post a one-time profit above it for control of NIS 230-280 million. In addition, the company is in advanced talks to sell its nursing home chain, up to 120. As far as is known, the company receives offers to purchase the nursing home at a value of NIS 1.5-1.3 billion. In Phoenix, we examine what is the most appropriate transaction structure for the company - whether to sell the entire company, or sell 51% of it.