The profits of the insurance companies in the first quarter of 2023 were cut due to the crisis in the stock market, and despite the increase in interest that contributed about a billion shekels to reduce insurance liabilities.

Migdal's profits fell by 53% to NIS 139 million. The profit was positively affected by the increase in interest which led to a decrease in reserves as well as by reducing losses in general insurance. The interest rate increase added NIS 358 million to the profit. The investment losses amounted to 276 million shekels due to a negative return in Nostro and non-collection of management fees.
The scope of managed assets amounts to NIS 381 billion. Migdal Ahezkot is managed by Yossi Ben Baruch and the insurance company by Ronan Agassi.

Ronan Agassi (Photo: Oren Dai)

Agassi said: "We conclude the quarter with growth in the core of the business and profit on the bottom line, despite the challenging environment. Migdal has a solid infrastructure to return and lead the insurance market through change processes and the construction of a new management avenue."

Meanwhile, it was announced yesterday about the decision of Migdal executives to convert a significant component of their compensation into three-year options. The decision is an expression of confidence in Migdal's future.

Clal Insurance and Finance went from a profit of NIS 221 million to a loss of NIS 102 million. The company managed by Yoram Neve set aside NIS 146 million due to the application of accounting standards for the purchase of the Max credit card company.

Despite the declines in the stock market, the volume of managed assets stands at NIS 300 billion. The capital amounts to NIS 8.2 billion. Max earned NIS 74 million, and by offsetting one-time sales expenses, the profit dropped to NIS 46 million.

Noah said: "In view of the improvement in capital and liabilities, we intend to act soon to approve the dividend distribution policy."

Yoram Neve (Photo: Sivan Farage)

The Harel Insurance Company managed by Michel Siboni earned only NIS 33 million, a 90% drop compared to the corresponding quarter. One of the reasons for the decrease in profitability is a loss of NIS 54 million in health insurance compared to a profit of NIS 595 million.

The increase in interest resulted in a decrease of NIS 186 million in general insurance liabilities. The company has managed assets amounting to NIS 377 billion.
Yesterday it was announced that the company intends to raise NIS 600 million to finance the acquisition of control in Israchart for NIS 2.9 billion.