Clal Insurance Company today reported a record profit of NIS 1.4 billion in 2021. This is a 2.3-fold jump compared to a profit of NIS 606 million in 2020. The annual return on capital was 22.3%.
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In the fourth quarter of 2021, Clal recorded a 42% drop in profit to NIS 395 million. The Clal share weakened 2.2% today on the Tel Aviv Stock Exchange.
The volume of insurance policies sold by the company in 2021 increased by 11.5% to NIS 10.6 billion and the volume of the company’s managed assets increased by 20.6% to NIS 286 billion.
Clal is the latest large insurance company to publish its annual report. Its total profit in 2021 came in fourth place in the industry after Phoenix (NIS 2.3 billion), Migdal (NIS 1.7 billion) and Harel (NIS 1.52 billion) and before Menora (NIS 980 million). In terms of return on capital, Clal is in third place, after Phoenix (26.3%) and Migdal (25.2%).
Clal, led by Yoram Naveh, presented an increase in provident and pension clients, along with the departure of clients in the field of life insurance. The new customers in the provident fund amounted to NIS 5.1 billion and in pensions to NIS 1.3 billion. The net profit made in 2021 in the long-term savings industry amounted to NIS 1.1 billion.
In the field of health insurance, the company’s net profit increased by 10% to NIS 193 million. In general insurance, which includes car and apartment insurance, net profit jumped 2.3 times to NIS 112 million.
Clal Insurance and Menora Mivtachim are the two largest insurance companies that do not own an investment house. In 2014, Clal dismantled the Clal Finance investment house it owned and sold part of it to Harel. In light of the prosperity of the last two years of Excellence controlled by Phoenix, Migdal Capital Markets and Harel Finance, Clal’s management is considering a repurchase of an investment house. Clal was among the candidates for the purchase of parts from Psagot after the purchase of the investment house by Altshuler Shaham, but its offer did not materialize.
At the same time, Clal announced today that the Commissioner of the Capital Market, Insurance and Savings, Moshe Barkat, has granted a holding permit of up to 10% in the company to the couple Natala and Shalom Shai, owners of the private construction company Dona. Upon implementation of the permit, the two will become the leading poor in general, which is the only insurance company without a core of control. The couple will be second only to Alfred Akirov, who holds 15% of the total and is struggling to get a control permit and raise his holding to at least 27%.