Migdal Insurance and Financial Holdings (MGDL) Q4 2024 earnings summary

Executive summary

• FY2024 total comprehensive profit after tax was ₪1,002 million, up from ₪553 million in 2023; Q4 profit was ₪508 million versus ₪468 million.

• Annual underwriting profit doubled to ₪884 million from ₪440 million; Q4 underwriting profit was ₪198 million versus a ₪9 million loss.

• Gross premiums, investment-contract receipts and contributions rose 14% to ₪30.2 billion; year-end AUM reached ₪485 billion, up 17% year over year.

• Results reflected stronger underwriting, positive investment returns, strategic execution and the resumption of variable management fees in Q4.

Financial highlights

• Q4 excess investment profit reached ₪747 million versus ₪104 million in Q4 2023; 2024 special effects increased pretax profit by ₪654 million.

• Variable management fees resumed in December 2024 after not being charged since year-end 2021, contributing ₪135 million.

• Q4 gross premiums and contributions were ₪8 billion; sales, premiums, investment contracts and contributions increased across business lines.

Outlook and guidance

• 2027 targets include ₪1 billion annual total profit, ~12% ROE, ₪550 billion AUM, ₪950 million underwriting profit and 110%–125% solvency without transition measures.

• Targets assume real-return objectives, AUM growth from improved net transfers and new sales, stronger core underwriting, additional Tier 2 capital and stochastic-model implementation; they use IFRS 4.

• Management expects improvement trends to continue in 2025 and said macroeconomic conditions could support economic growth; no numerical 2025 forecast was given.

• The board set a 115% economic-solvency threshold, excluding transition measures, for dividend distributions by the insurance subsidiary.