The company reports on the merger of the companies, as well as a solo report which indicates a decrease compared to the same quarter last year and even a quarter earlier, the company’s solo revenues decreased significantly to NIS 34 million, financing expenses jumped from 9 million to 19 million, net profit was cut And stands at about 13 million compared to a QOQ of 33 million.
Highlights for the results of the subsidiary Ideai Insurance in the third quarter of 2021:
Ideai ended the third quarter with a profit of NIS 48 million, compared with a profit of NIS 77 million in the corresponding quarter last year. The results for the current quarter were influenced by significant growth in profit in the housing industry, and good profitability in the life and health industries. On the other hand, an increase in travel and the frequency of accidents and thefts in the property vehicle industry, as well as a rise in the high index in the quarter and a decrease in the interest rate curve that affected the compulsory vehicle industry, led to a decrease in underwriting profitability. The rate of decrease in gross premiums in the quarter moderated to about 3% thanks to continued growth in classic health products, apartments and life, along with the process of improving the customer portfolio in property vehicles, which is nearing completion.
Gross premiums in the third quarter amounted to NIS 584.2 million, compared with NIS 605.0 million in the corresponding period last year, a decrease of 3%. The change in gross premiums was affected by an increase in the volume of customers in the areas of housing, living and health on the one hand, and a decrease in the automotive industry (mainly due to the company’s initiatives to improve the customer portfolio and lower tariffs in the real estate industry). And a decrease in personal accident products (due to the reduction of activity until the end of the permit to market the product in its existing format in May).
Emphasis on the results of the direct financing subsidiary for the third quarter of 2021:
Net income increased in the third quarter by approximately 10.2% and amounted to approximately NIS 42.2 million, compared with approximately NIS 38.3 million in the corresponding quarter last year. The increase in net profit is mainly due to the reasons mentioned above. The increase in net profit was partially offset by an increase in expenses for credit losses as well as an increase in administrative and general expenses, while in the corresponding period last year the number of employees was low compared to the reporting period following the corona crisis.
In this quarter, direct financing revenues grew by approximately 64% and amounted to approximately NIS 239.5 million, compared with approximately NIS 146 million in the corresponding quarter last year. The increase in income is due to an increase in the average loan portfolio held by the Company along with an increase in the average interest rate on the loan portfolio and an increase in the index.
The direct portfolio of direct financing that was not transferred to third parties as of September 30, 2021 amounted to approximately NIS 3.5 billion, compared with approximately NIS 2.9 billion as of December 31, 2020.
Emphasis on the operating results of the Edgar subsidiary for the third quarter of 2021:
Revenues from rental properties amounted to NIS 66.1 million in the third quarter, an increase of 9.0% compared to NIS 60.7 million in the corresponding quarter last year. The increase is mainly due to the occupancy of Building C in the Edgar 360 project in Israel, an increase in revenues in Canada and Poland as a result of the acquisition of new properties, as well as an improvement in the average occupancy rates.
The NOI in the quarter amounted to NIS 62.3 million, an increase of 9.0% compared to NIS 57.1 million in the corresponding quarter last year. The FFO in the quarter increased by 36.4% and amounted to NIS 28.8 million, compared to NIS 21.1 million in the corresponding quarter last year. Equity attributed to shareholders amounted to NIS 1255 million as of September 30, 2021.