Clal Insurance Enterprises (CLIS) Q1 2024 earnings summary

Executive summary

• Q1 2024 net income was NIS 42 million versus a NIS 88 million loss; comprehensive income was NIS 165 million, including NIS 164 million attributable to shareholders, versus losses of NIS 101 million and NIS 102 million, respectively.

• Stronger capital markets and P&C underwriting supported results; lower life premiums, health-sector LAT charges and a one-time NIS 18 million tax expense partly offset gains.

• The 2023 Max acquisition broadened activities into credit cards alongside insurance and long-term savings; Max and Milo results were consolidated from Q2 2023, affecting comparisons.

Financial highlights

• Total income was NIS 7,536 million versus NIS 4,081 million; investment and finance income was NIS 4,551 million versus NIS 1,227 million, with comparisons affected by Max consolidation timing.

• Income before tax was NIS 79 million versus a NIS 141 million loss; income attributable to shareholders was NIS 41 million versus a NIS 89 million loss. Basic EPS was NIS 0.51 versus a NIS 1.20 loss.

• Premiums, contributions and proceeds totaled NIS 6.5 billion versus NIS 6.7 billion; assets under management were NIS 348 billion at March 31, up from NIS 338 billion at year-end.

• Shareholders’ equity attributable to shareholders was NIS 8.7 billion; general, administrative and operating expenses plus commissions were NIS 796 million versus NIS 794 million.

Outlook and guidance

• No full-year earnings guidance was stated; the effects of market developments on Q2 and FY 2024 could not be assessed.

• Variable management fees on participating life policies remain unavailable until accumulated investment losses are recovered; the foregone fee liability was NIS 0.4 billion at March 31 and NIS 0.5 billion shortly before publication.

• Dividend policy targets distribution of 30%–50% of comprehensive income, conditional on maintaining a 110% minimum solvency ratio without transitional provisions after distribution; this is not a commitment to pay dividends.