Menora Mivtachim (MMHD) Q2 2022 earnings summary

Executive summary

• H1 2022 premiums, contributions and investment-contract receipts totaled ₪13.38bn, up 9.9% YoY; managed assets were ₪269bn.

• H1 reported a ₪172m comprehensive pre-tax loss, despite ₪325m underwriting profit; Q2 pre-tax comprehensive loss was ₪165m, alongside ₪206m underwriting profit.

• Shareholders’ equity was ₪5.59bn at June 30, 2022; solvency surplus at the insurance subsidiary was ₪1.7bn, or ₪2.6bn including phase-in adjustments.

Financial highlights

• H1 premiums and contributions rose 9.9% YoY to ₪13.38bn; Q2 total was ₪6.69bn, up 8.3% YoY.

• H1 comprehensive pre-tax loss was ₪172m; Q2 comprehensive pre-tax loss was ₪165m. Underwriting profit was ₪325m for H1 and ₪206m for Q2, including a 3% real annualized normative investment return.

• H1 investment income and index effects reduced pre-tax profit by ₪815m, while interest-rate effects added ₪658m; the combined impact was a ₪137m loss.

• Shareholders’ equity was ₪5.59bn at June 30, 2022; managed assets totaled ₪269bn.

Outlook and guidance

• Dividend policy targets distribution of 35% of comprehensive profit.

• Insurance solvency capital targets rise gradually through 2024 to 115% for the main insurance operation and 113% for Shomera; reported solvency ratios were stated to exceed these targets.