Migdal Insurance and Financial Holdings (MGDL) Q3 2024 earnings summary

Executive summary

• 9M 2024 total comprehensive income was NIS 494m versus NIS 85m; Q3 income was NIS 285m versus a NIS 14m loss.

• Underwriting profit rose 55% to NIS 695m in 9M, with growth across business lines; progress toward 2027 strategic targets was ahead of schedule.

Financial highlights

• 9M underwriting profit was NIS 695m versus NIS 448m; Q3 was NIS 219m versus NIS 160m, up 37%.

• Gross premiums and contributions reached NIS 22.2bn in 9M, up 13% YoY; Q3 totaled NIS 7.7bn, also up 13%.

• Q3 excess investment profit was NIS 181m versus a NIS 642m loss; the 9M investment loss narrowed by NIS 343m YoY.

• 9M results included special effects that increased pretax profit by NIS 733m; a NIS 633m one-time life-insurance gain was a major contributor.

• Total revenue was NIS 25.218bn for 9M versus NIS 20.940bn; net income was NIS 588.7m versus NIS 224.1m.

Outlook and guidance

• Management expected improvement trends to continue and reported progress ahead of the strategic plan’s 2027 targets.

• First use of the stochastic model in the Dec. 31, 2024 solvency calculation was estimated to increase the ratio by 9 percentage points without transition measures and 11 points with them, based on June 30, 2024.

• Preliminary IFRS 17/9 transition estimates put opening equity at NIS 6–6.5bn for the insurer and NIS 6.5–7bn at the holding level; estimates remain subject to revision.