Migdal Insurance and Financial Holdings (MGDL) Q4 2022 earnings summary

Executive summary

• Q4 2022 comprehensive income was NIS 388m vs. NIS 747m YoY; FY2022 comprehensive loss was NIS 468m vs. NIS 1.73bn income in 2021.

• FY gross premiums and contributions grew 6% to NIS 25.7bn; assets under management were NIS 368bn at year-end, down from NIS 380bn a year earlier.

Financial highlights

• Q4 underwriting profit reached NIS 211m before tax, up NIS 80m YoY; FY underwriting profit was NIS 786m vs. NIS 804m in 2021.

• FY2022 negative investment contribution was NIS 3.7bn before tax; higher rates reduced insurance liabilities by NIS 3.1bn before tax, partly offsetting market losses.

• Q4 comprehensive income reflected a NIS 0.6bn pretax reduction in insurance liabilities from higher rates, partly offset by a NIS 0.2bn negative investment contribution.

Outlook and guidance

• 2023 priorities include updated strategy development, sales growth, product-mix management, underwriting discipline and expense control; longer-term focus includes innovation and sustained growth.

• Year-end 2022 solvency ratio was estimated to fall 15–25 percentage points without transition measures, or 25–35 points with transition measures, vs. June 2022; final calculation was pending and estimates could differ materially.