The Phoenix cash machine continues to work. The insurance company published its annual report this morning and presented a profit of NIS 2.3 billion, 70% higher than the profit of NIS 1.35 billion recorded in 2020. In the fourth quarter, profits decreased to NIS 759 million compared to a profit of NIS 858 million last year.
Phoenix is the fourth insurance company to publish the annual report and so far it is the company with the highest profits, which is reflected in a return on capital of 26.3%. In addition, the capital managed by the company has increased to NIS 369 billion. It surpasses Migdal, which manages NIS 366 billion in capital, and Phoenix’s high profit came from investments in the capital market, which grew to NIS 1.1 billion in 2021, compared with a profit of NIS 600 million in 2020. In the fourth quarter, investment profits fell from NIS 699 million to 483 a million shekels.
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In the core area of the company, general insurance, health and life, the company presents a more mixed picture. In non-life insurance, the total profit (before tax) amounted to NIS 485 million, a decrease of 7.5% compared to the profit last year, which amounted to NIS 524 million. The decrease in profit is mainly due to the return to routine on the roads in 2021 compared to 2020 and the increase in the travel of the insured. An increase in travel calls for an increase in accident compensation claims.
In health insurance, the profit decreased to NIS 8 million, compared with a profit of NIS 216 million. In Phoenix, they explain that the gap decreases from the decrease in interest rates throughout the year and the need to seize more capital. In life insurance, whose profits also rely on the capital market, among other things, the profit jumped to NIS 1.5 billion, compared with a profit of NIS 679 million last year.
Beyond investments and insurance, the Phoenix management, led by Eyal Ben Simon, worked to flood value for the company through the issuance of the Gamma credit company and the sale of the 120 sheltered housing chain. Meanwhile, the company’s one-time profits totaled NIS 265 million in 2021.
In the top row, Phoenix sold premiums amounting to NIS 11.2 billion in 2021 compared to premiums of NIS 10.4 billion in 2020, an increase of 7.5%.
As part of the strategic plan, Phoenix will announce an investment plan on the ESG method in the second quarter. The company announced a dividend of NIS 621 million and a repurchase of shares in the amount of NIS 70 million.