Menora Mivtachim (MMHD) Q2 2024 earnings summary

Executive summary

• H1 net income was NIS 557m vs NIS 111m; comprehensive income after tax attributable to shareholders was NIS 490m vs NIS 265m, and pre-tax underwriting income was NIS 701m vs NIS 363m.

• Q2 comprehensive income after tax was NIS 260m vs NIS 111m; underwriting income was NIS 389m vs NIS 236m.

• AUM reached NIS 345.3bn at June 30, 2024, with a 12.0% CAGR since 2018; shareholders’ equity was NIS 6.75bn.

• Underwriting profitability improved across all segments in H1; Q2 P&C and Health gains offset weaker Life and Long-Term Savings underwriting.

Financial highlights

• H1 total income was NIS 6,676m vs NIS 6,463m; profit before tax was NIS 825m vs NIS 139m. Q2 total income was NIS 2,712m vs NIS 3,713m; profit before tax was NIS 454m vs NIS 37m.

• H1 net income attributable to shareholders was NIS 539m vs NIS 100m, with basic EPS of NIS 8.70 vs NIS 1.62; Q2 was NIS 297m vs NIS 21m, with EPS of NIS 4.79 vs NIS 0.34.

• H1 comprehensive income before tax rose to NIS 755m from NIS 395m; Q2 increased to NIS 397m from NIS 178m.

• H1 premiums and contributions toward benefits were NIS 16.267bn vs NIS 14.479bn; gross premiums earned were NIS 4.350bn vs NIS 4.120bn.

Segment performance

• P&C H1 underwriting income was NIS 352m vs NIS 145m; comprehensive income before tax was NIS 396m vs NIS 147m. Q2 comprehensive income before tax was NIS 222m vs NIS 108m.

• Life and Long-Term Savings H1 comprehensive income before tax was NIS 171m vs NIS 136m; underwriting/operating income was NIS 258m vs NIS 194m, including NIS 129m pension income vs NIS 88m.

• Health H1 underwriting income was NIS 91m vs NIS 24m; Q2 was NIS 72m vs NIS 15m. H1 comprehensive income before tax was NIS 88m vs a NIS 30m loss.

• Pension AUM reached NIS 240,921m, up 16.0% YoY; H1 contributions were NIS 8.9bn. Pension operating income benefited from higher management fees and lower G&A.

• Provident fund AUM was NIS 42,836m, up 17.3% YoY; H1 income was NIS 15m vs NIS 7m, while Q2 income was NIS 1m vs NIS 5m.