Menora Mivtachim (MMHD) Q1 2024 earnings summary

Executive summary

• Q1 net income was NIS 251.0 million versus NIS 85.1 million; NIS 241.8 million was attributable to shareholders versus NIS 79.2 million.

• Total comprehensive income was NIS 239.9 million versus NIS 159.5 million; comprehensive income attributable to shareholders after tax was NIS 230.7 million versus NIS 153.5 million.

• Underwriting income before tax rose to NIS 313 million from NIS 126 million; results benefited from higher investment income and improved underwriting, while lower interest rates increased insurance liabilities.

Financial highlights

• Total income was NIS 3,963.9 million versus NIS 2,750.3 million; gross premiums earned were NIS 2,147.0 million versus NIS 2,025.9 million.

• Premiums and contributions towards benefits totaled NIS 8.1 billion versus NIS 7.3 billion; gross premiums and contributions grew 12.2% YoY.

• Net investment and finance income rose to NIS 1,813.3 million from NIS 765.3 million; management-fee income increased to NIS 293.6 million from NIS 261.4 million.

• Comprehensive income before tax reached NIS 358.4 million versus NIS 217.7 million; comprehensive income attributable to shareholders after tax was NIS 230.7 million versus NIS 153.5 million.

• Assets under management were NIS 332.0 billion at March 31, 2024, with an 11.7% CAGR since 2018.

Outlook and guidance

• Bank of Israel forecasts Israeli GDP growth of 2.0% in 2024 and 5.0% in 2025, assuming the War’s direct economic impact declines through 2024 and ends in 2025.

• IFRS 17 and IFRS 9 are scheduled for Israeli adoption on January 1, 2025, with a January 1, 2024 transition date; preparation and system implementation were progressing toward 2024 reporting milestones.

• Foregone variable management fees on legacy yield-dependent policies were estimated at NIS 116 million before tax at the report date and NIS 139 million shortly before publication, pending recovery of accumulated real investment losses.