Migdal posts NIS 141m Q2 profit

Migdal Insurance  photo: PR
Migdal Insurance photo: PR

The insurance company's profit was helped by improved underwriting results and better capital market returns.

Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) posted a net profit of NIS 141 million for the second quarter of this year, which compares with a profit of just NIS 20 million in the second quarter of 2016. For the first half of 2017, Migdal posted a post-tax comprehensive profit of NIS 450 million, which compares with a post-tax comprehensive loss of NIS 475 million in the first half of 2016.

The rise in the second quarter profit was partly thanks to improvement in underwriting results in general insurance and health insurance. The first half results were also boosted by a substantial rise in returns on the capital market.

In the second half of 2017, the group continued to expand its core insurance activity. Premiums totaled NIS 5.3 billion, 15% more than in the corresponding quarter.

One of the interesting pieces of information that emerges from Migdal's financials is the requirements for enlarging capital under the European Union's Solvency II directive, which the Capital Market, Insurance and Savings Authority is obliging Israeli insurance companies to abide by. Migdal claims that at the end of 2016 it had surplus capital of NIS 4 billion, but it has to enlarge its capital by a further NIS 900 million by 2024 under the scheduling agreement reached with the Capital Market, Insurance and Savings Authority, after intervention by Knesset Finance Committee chairman Moshe Gafni.

Published by Globes [online], Israel business news - www.globes-online.com - on August 20, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Migdal Insurance  photo: PR
Migdal Insurance photo: PR
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