The takeover of the check clearing company, ERN, during the third quarter, after its IPO on the stock exchange fell short, helped the insurance company, Menorah Mitvathim, to register a positive total profit in the third quarter. At a time when the heavy losses attributed by the stock exchanges to the investments of the other insurance companies, drag them into heavy losses of tens and sometimes hundreds of millions of shekels per quarter, Menorah Mvtehim registered a total profit attributable to the shareholders of 158 million shekels, an increase of 13% within a year.
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The total premiums and benefits collected by the group in the first nine months of the year amounted to NIS 20.5 billion, an increase of 9.6% compared to the corresponding period last year. In the third quarter, the total premiums and benefits collected amounted to NIS 7 billion, an increase of 9.2% compared to the quarter The equivalent of last year. The income from the insurance premiums earned by the group grew by 6.6% in the first nine months of the year and amounted to NIS 5.8 billion. In the second quarter, a stronger growth of 12.9% was recorded compared to the corresponding quarter for a total of NIS 2 billion in premiums.
The underwriting profit of the group (the profit that derives from its insurance activity only), was eroded in its first nine months of this year by 18% to a total of NIS 529 million. In the third quarter, the underwriting profit decreased by 25% to NIS 204 million. In addition, the change in the risk-free interest rate curve in the first nine months of the year reduced Menorah’s insurance liabilities by NIS 825 million, compared to an increase in insurance liabilities of NIS 127 million in the corresponding period last year.
Losses from investments during the reporting period amounted to approximately NIS 1.1 billion, compared to investment income of approximately NIS 404 million in the corresponding period last year. In the third quarter, Menorah Mivathim completed its takeover of the check clearing company IRAN, which contributed approximately NIS 108 to the company’s net profit, and had a positive effect on the bottom line. Special actuarial effects, mainly due to the mortality tables, led to a loss of NIS 140 million, but the company still ended the third quarter with a positive overall profit.