Libra Insurance Company (LBRA) Q3 2024 earnings summary

Executive summary

• 9M 2024 net income rose to ₪9.2m from ₪1.6m YoY; Q3 net income reached ₪11.1m from ₪4.3m YoY, supported by general-insurance underwriting and investment gains.

• Gross earned premiums grew across business lines; balance-sheet growth reflected expanding activity, while reduced motor-property reinsurance increased retained premiums and exposure.

Financial highlights

• 9M gross earned premiums were ₪539.7m vs ₪387.3m YoY; retained earned premiums were ₪255.4m vs ₪173.2m.

• 9M pretax income was ₪13.0m vs ₪2.1m; net income was ₪9.2m vs ₪1.6m; comprehensive income was ₪9.2m vs ₪1.6m.

• Q3 gross earned premiums were ₪190.7m vs ₪142.2m YoY; net income was ₪11.1m vs ₪4.3m, and basic EPS was ₪0.25 vs ₪0.11.

• Total assets at Sep. 30, 2024 were ₪1.319bn, up 37% YoY; insurance-contract liabilities were ₪931.4m, up 27% YoY.

• Cash and cash equivalents rose to ₪170.5m from ₪136.6m at Dec. 31, 2023; operating cash flow was ₪17.9m vs ₪0.4m in 9M 2023.

Outlook and guidance

• If underwriting results weaken, plans call for further motor-rate increases to lift average premiums.

• Management expects continued growth in digital motor-policy transfers; Chik monthly usage exceeded 130,000 by the report publication date.

• Solvency capital target is 105% for 2023–2025 and 110% from 2026, following reduced reinsurance and increased retained risk.