Migdal Insurance and Financial Holdings (MGDL) Q2 2024 earnings summary

Executive summary

• H1 net income was ₪588.7m, pretax income ₪865.5m and comprehensive income ₪209.0m; Q2 figures were ₪460.3m, ₪694.2m and ₪100.2m, respectively.

• Improved underwriting across most business lines and higher premiums and contributions supported results; Q2 special effects added ₪650m pretax, partly offset by investment losses.

Financial highlights

• Gross premiums and contributions rose 11% YoY to ₪7.1bn in Q2 and 14% to ₪14.5bn in H1.

• Underwriting profit increased 77% to ₪325m in Q2 and 64% to ₪473m in H1.

• Q2 excess investment loss was ₪832m, versus ₪116m YoY; H1 investment result was a loss of ₪869m versus ₪393m.

• Equity was ₪8.8bn and total assets ₪204.9bn at June 30, 2024; assets under management reached ₪445bn.

Outlook and guidance

• Strategy execution remains focused on underwriting improvement, sales growth and investment activity, with adjustments for the prolonged war and economic uncertainty.

• June 2024 solvency ratio was estimated to improve from December 2023, supported by higher risk-free rates and demographic research effects.

• Longer-term ambitions include ₪1bn annual profit and return on equity above 12%.