Menora Mivtachim (MMHD) Q2 2023 earnings summary

Executive summary

• H1-2023 profit before tax was ₪395m, up ₪356m YoY; Q2 profit before tax was ₪177m, up ₪309m YoY.

• H1 net income attributable to shareholders was ₪198.2m; comprehensive income attributable to shareholders was ₪265m. Q2 net income was ₪25.4m versus a restated loss of ₪33.4m.

• H1 gross premiums and contributions rose 8.2% to ₪14.477bn; gross earned premiums rose 10.8% to ₪4.12bn.

• Managed assets reached ₪297.4bn at June 30, 2023.

Financial highlights

• H1 investment income was ₪97m versus losses of ₪837m in H1 2022; Q2 investment income was ₪60m versus losses of ₪517m.

• Investment gains included a one-time ₪120m pre-tax fair-value uplift on owned real estate after approval to deposit a new outline plan.

• Underwriting profit was ₪357m in H1-2023 and ₪227m in Q2-2023.

• Equity attributable to shareholders was ₪6.064bn at June 30, up ₪167m from year-end 2022; comprehensive income of ₪265m was partly offset by a ₪100m dividend.

Segment performance

• General insurance H1 pre-tax comprehensive profit rose to ₪147m from ₪75m, driven by higher underwriting profit and investment income, partly offset by a smaller favorable interest-curve effect.

• Life and long-term savings H1 comprehensive profit improved to ₪136m from a ₪93m loss, mainly as investment losses narrowed; higher insurance liabilities and weaker underwriting partly offset gains.

• Pension H1 profit was ₪84m versus ₪82m; assets under management rose 14% YoY to ₪207.7bn and contributions increased 12% to ₪8.2bn.

• Provident-fund H1 profit was ₪11m versus a ₪5m loss; assets under management grew 8% YoY to ₪36.5bn and contributions rose 8% to ₪1.75bn.

• Health underwriting weakened on a less favorable claims ratio and higher expenses; updated morbidity and cancellation assumptions added ₪14m to health insurance liabilities.