Phoenix Financial (PHOE) Q1 2022 earnings summary

Executive summary

• Q1 comprehensive income attributable to shareholders was NIS 352.0m, versus NIS 355.9m a year earlier; ROE was 15.5%.

• Net income was NIS 690.2m, compared with NIS 326.1m YoY; reported results included market losses offset by higher-rate effects and a one-off Phoeniclass gain.

• Core-business income rose to NIS 225m from NIS 187m, while operating profit excluding capital-market, interest and special-item effects increased NIS 83m YoY.

• AUM was NIS 370bn at quarter-end; net inflows and organic growth offset market declines.

Financial highlights

• Reported profit before tax was NIS 1.021bn, versus NIS 487.9m YoY; net income attributable to shareholders was NIS 675.1m, versus NIS 315.4m.

• Profit from operations was NIS 337m, up NIS 83m YoY; the net pre-tax impact of higher rates and capital markets was positive NIS 131m.

• Gross premiums earned were NIS 3.014bn versus NIS 2.618bn; retained premiums were NIS 2.623bn versus NIS 2.307bn.

• Premiums and contributions reached NIS 9.0bn, up 53% YoY; Q1 savings contributions increased 53%.

• Shareholders’ equity was NIS 9.54bn at March 31; total assets were NIS 145.4bn.

Outlook and guidance

• 2025 targets include NIS 450–550bn AUM, NIS 11–13bn shareholders’ equity, NIS 1.3–1.5bn comprehensive income and 12%–15% ROE; targets depend on markets and execution.

• The 2025 P&C premium target is NIS 4.2–4.8bn; the Solvency II target is 150%–170% as transitional measures taper.

• 2022 priorities included dynamic risk-adjusted investment management, diversification, profitable growth and strategic opportunities amid volatile markets.

• The annuity-election research was expected to conclude in 2022 and could reduce supplementary annuity-reserve liabilities; the impact was not yet estimable.