Libra Insurance Company (LBRA) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income rose 32% YoY to NIS 16.468m; insurance service profit increased 19% to NIS 23.085m, supported by portfolio growth and improved underwriting in general insurance.

• Gross premiums grew 13% YoY to NIS 248.380m, while new customer additions increased 27%; slower premium growth reflected price erosion, mainly in motor property.

• The first-time IFRS 17 adoption and restatement of 2024 comparatives changed insurance reporting and balance-sheet presentation; management said the transition had no significant effect on total comprehensive income after tax.

Financial highlights

• Insurance service revenue was NIS 203.971m vs NIS 161.066m in Q1 2024; insurance service expenses were NIS 173.812m vs NIS 131.428m.

• Net insurance service profit was NIS 23.085m vs NIS 19.375m; net investment and finance profit was NIS 4.704m vs NIS 1.211m.

• Profit before tax was NIS 25.271m vs NIS 19.143m; net income was NIS 16.468m vs NIS 12.472m, and EPS was NIS 1.13 vs NIS 0.28.

• Total assets reached NIS 1,043.634m at March 31, up 29% YoY; insurance contract liabilities were NIS 828.594m, also up 29% YoY.

• Cash and cash equivalents were NIS 111.381m at March 31, up from NIS 101.747m at December 31, 2024; Q1 operating cash flow was NIS 11.280m.

Outlook and guidance

• Management expects continued growth in life insurance premiums as the portfolio matures and the Ma'alot mortgage-insurance partnership develops; Q1 life premium annualized was NIS 10.1m and retained CSM was NIS 7.394m.

• Chik daily insurance for young drivers recorded ~200,000 monthly uses at report publication, with usage growth described as ongoing.

• Future plans include seeking license expansion into pure savings products; no pension insurance products are planned at this stage.