Menora Mivtachim (MMHD) Q3 2024 earnings summary

Executive summary

• 9M net income rose to NIS 779m from NIS 376m; comprehensive income attributable to shareholders reached NIS 820m from NIS 534m, and underwriting income before tax rose to NIS 1,102m from NIS 697m.

• Q3 net income was NIS 222m versus NIS 266m, while comprehensive income attributable to shareholders rose to NIS 330m from NIS 270m.

• Results reflected stronger underwriting and higher interest-rate effects, partly offset by lower investment income and adverse actuarial and other special items.

Financial highlights

• 9M total income was NIS 10.65bn versus NIS 9.19bn; profit before tax was NIS 1.14bn versus NIS 539m.

• 9M net income attributable to shareholders was NIS 750m versus NIS 360m; basic EPS was NIS 12.11 versus NIS 5.81.

• Gross contributions and insurance premiums reached NIS 24.71bn for 9M, up 9.8% YoY; Q3 was NIS 8.44bn, up 5.2%.

• Assets under management were NIS 361.3bn at September 30, 2024; total assets were NIS 72.63bn and shareholders’ equity was NIS 6.91bn.

• 9M underwriting income before tax was NIS 1,102m versus NIS 697m; Q3 was NIS 401m versus NIS 335m.

Outlook and guidance

• IFRS 17 and IFRS 9 are scheduled for first application in Israel from January 1, 2025; implementation work and system testing were substantially advanced.

• IFRS 17 is expected to reduce reported insurance income and expenses significantly, with no expected comprehensive-income effect from excluding investment components.

• The solvency target is set to rise from 115% at end-2024 to 130% by 2032, subject to uncertainty at any point in time.

• Israel 2024 GDP growth forecasts were 0.4% from the Ministry of Finance and 0.5% from the Bank of Israel; 2025 forecasts were 4.3% and 3.8%, respectively.