The Phoenix Publishes its financial results for the first nine months of the year, which show that it recorded a total profit for shareholders of NIS 1.6 billion in the first nine months of the year, three times the profit of NIS 524 million in the corresponding period last year. In the third quarter, Phoenix’s profit was NIS 404 million, compared with NIS 323 million in the corresponding quarter of 2020.
As of the end of the third quarter, the Phoenix Group’s equity stood at NIS 9.1 billion, and the rate of return on capital in the first nine months of the year was 25.1% and 19.5% in the third quarter.
When looking at the sources of profit from the beginning of the year, NIS 910 million comes from the long-term savings industry, compared to NIS 76 million before this industry in the corresponding period last year. NIS 459 million comes from the general insurance industry (vehicles, apartments and liabilities). The health insurance industry contributed NIS 180 million, compared with a loss of NIS 110 million in the corresponding period last year, while the credit of Phoenix also recorded a handsome profit of NIS 246 million, compared with a profit of NIS 14 million in the corresponding period. Phoenix’s high profits led it to pay NIS 618 million in taxes.
In accordance with the strategic plan formulated by Phoenix last year, the group completed the sale of control of Up to 120 and recorded a profit in the third quarter of NIS 90 million out of an expected total profit from the sale of NIS 270 million after tax.
Phoenix has completed the sale of control of the sheltered housing company ‘Up to 120’ to the Shafir Group at a company value of NIS 1.35 billion and will continue to hold “up to 120” at a rate of approximately 47% alongside Shafir.
This transaction joins the successful issuance of the business credit company Gamma on the stock exchange and the acquisition of control (approximately 61.6%). As a result of the issue and the increase in control, the Phoenix recorded a one-time capital gain after tax in the second quarter in the amount of NIS 220 million.
Dividend distribution policy
Following the issuance of the Gamma credit company and the sale of control of “Up to 120”, Phoenix announced an interim dividend distribution of NIS 200 million in respect of 2021. Profits. In March and June 2021, Phoenix distributed dividend insurance totaling NIS 400 million for 2020 profits.
In addition, the Company completed a NIS 100 million share repurchase program and in August 2021 the Board of Directors approved an additional one-year repurchase program of up to NIS 100 million, of which Phoenix made a repurchase of 74 million shares during the reporting period. NIS.
In addition, Phoenix Insurance issued an additional Tier 1 capital instrument in the amount of NIS 200 million in August. As part of the issue, in addition to the aforesaid amount, the Company was issued a volume of approximately NIS 1 billion from the capital instrument, replacing Tier 1 capital notes previously issued by Phoenix Insurance to the Company. Phoenix was the first insurance company in Israel to make this offering.
The distribution of dividends was made possible thanks to the Group’s compliance with the economic solvency ratio in accordance with Solvency Policy 2. As of June 30, 2021, the solvency ratio taking into account the spread provisions is at a rate of 196%. Excluding the transitional provisions for the deployment period, the ratio is 123%, and 120% after the announcement of a dividend of NIS 300 million based on the third quarter reports.
The total assets managed in the group rose to NIS 340 billion, with NIS 44 billion joining as a result of the acquisition of Hellman-Aldubi, which managed the IEC’s provident fund. This is compared to assets amounting to NIS 234 billion at the end of 2020.
Eyal Ben Simon, CEO of Phoenix: “The group focuses on products with a high return on capital, makes increasing use of technological and digital tools for operational efficiency, manages and maximizes a wide portfolio of activities and maintains its position as a leading investment body for its customers. .
“For about a year now, the group has been implementing a strategic plan based on clear and measurable growth engines. In parallel with improving the group’s results, we are working to locate and produce additional growth engines that will maintain our competitive advantage in the investment, finance and insurance market.”