Libra Insurance Company (LBRA) Q2 2023 earnings summary

Executive summary

• H1 2023 gross premiums reached NIS 308m vs NIS 213m in H1 2022; Q2 premiums were NIS 140.4m vs NIS 99m, with growth across activity segments.

• H1 2023 pretax loss was NIS 3.9m; rising auto theft costs remained a drag, while pricing increases and tighter claims management were key responses.

• Portfolio exceeded 300,000 policies across auto, home, travel, business, pet, mortgage and life insurance.

Financial highlights

• Gross premiums: NIS 308m in H1 2023 vs NIS 213m in H1 2022; Q2 2023: NIS 140.4m vs NIS 99m in Q2 2022.

• H1 2023 pretax loss totaled NIS 3.9m; segment table shows NIS 1m pretax profit in H1 2022.

• Total assets were NIS 839.7m at June 2023 vs NIS 677.7m at June 2022; equity was NIS 60.1m vs NIS 63.5m.

Outlook and guidance

• Pricing increases have totaled ~52% since the start of 2022; further rate increases, disciplined underwriting and close claims management are core auto-business responses.

• Strategic priorities include expanding non-auto lines, growing risk and mortgage life products, and developing additional profit sources.

• Risk and mortgage life products had annualized premiums of ~NIS 5.6m as of the reporting date; non-auto products grew over 100% in H1 YoY.