Libra Insurance Company (LBRA) Q3 2024 earnings summary

Executive summary

• 9M gross premiums were ₪606m, up 30% YoY; gross earned premiums were ₪539.7m, with retained earned premiums of ₪255.4m.

• 9M net income was ₪9.2m vs ₪1.6m and pretax income was ₪13.0m vs ₪2.1m; Q3 net income reached ₪11.1m vs ₪4.3m.

• The 9M property motor retained loss ratio improved to 70%; solvency was 132% including transitional measures and 125% without them.

Financial highlights

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

• Q3 gross premiums were ₪203m, up 27% YoY; 9M gross premiums were ₪606m, up 30%.

• 9M pretax income was ₪13.0m vs ₪2.1m and net income was ₪9.2m vs ₪1.6m; Q3 basic EPS was ₪0.25 vs ₪0.11.

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

• Cash and equivalents were ₪170.5m; 9M operating cash flow was ₪17.9m vs ₪0.4m.

Outlook and guidance

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

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

• Strategic priorities include expanding life, mortgage-risk and other non-auto products; annualized life premiums were ₪6.8m at Sep. 30, 2024.

• The investment portfolio moved to external management; investment-related profitability was ₪15.8m as of Sep. 30, 2024.