IDB insurance reports: net loss of NIS 9.4 million in the first quarter

IDB insurance, which operates the "Direct Insurance" brand, reported a 7% decrease in gross premiums, in addition to a net loss of NIS 9.4 million. This is due to a decrease of approximately NIS 72 million in investment income in the nostro portfolio and a decrease in underwriting profit. 24,512 / premiums amounted to NIS 671.4 million, a decrease of 7% compared to NIS 721.6 million in the corresponding period last year. According to the company, the change is mainly due to an increase in the number of customers and the volume of activity in most of the industries in which the company operates, along with the company's initiated actions to improve the customer portfolio and lower tariffs in the property vehicle industry due to changes in the competitive environment. In addition, gross premiums during the reporting period were affected by a fall in demand, particularly in the automotive sector, due to the Corona epidemic.
Bottom line, the total loss in the first quarter was about NIS 9.4 million, compared with a profit of about 51 million in the corresponding period last year. The decrease is mainly attributed to a decrease in investment income, a decrease in underwriting profit in the property sector (including weather damage as well as a reduction in tariffs in the property vehicle industry) and in the health sector, along with an improvement in underwriting profit in the compulsory motor vehicle and life insurance sectors.
Losses from net investments and financing income amounted to NIS 80 million, compared with NIS 32.6 million in the corresponding period last year. Of these, losses on investments that are not attributed to policies contribute to profits of NIS 52.1 million, compared with revenues of NIS 20.3 million in the corresponding period last year. The move to a significant loss is due to sharp declines in the capital market in March as a result of the impact of the Corona epidemic
Director of Direct Insurance, Kobe Haber: "Throughout the period, we have been responsible for managing the crisis, while maintaining full business continuity. Thanks to the company's rapid adaptation to the changes, we have continued to provide excellent service to our clients across all channels. Significant in the first quarter shows good signs of recovery, but we continue to monitor high volatility. "