Israel’s insurance companies and provident funds greatly expanded their foreign investments during 2005. Insurance companies’ foreign investments grew by 37% in January-September, and provident funds’ total assets grew by 107%, the Ministry of Finance reported yesterday.
In December 2004, 10% of insurance companies’ assets were in foreign investments. Foreign investments grew by 37%, or NIS 3.6 billion, in January-September to 13.7% of NIS 9.4 billion in aggregate assets.
The greatest increase in foreign investment was by investment funds, which grew by 287%, or NIS 692 million, in January-September. A breakdown of insurance companies’ foreign assets in September was as follows: NIS 2.69 billion in foreign bonds, NIS 3.32 billion in stocks, NIS 2.44 billion in mutual funds, and NIS 254 million in other investments.
The proportion of foreign bonds of Israeli insurance companies’ participating insurance policies rose from 3.4% in January to 3.9% in September; the proportion of foreign stocks rose from 2.9% to 4.8%; and the proportion of foreign mutual funds rose from 3.1% to 3.9%.
As of September, provident funds’ aggregate foreign assets totaled NIS 14.3 billion, 6.2% of their total assets. In December 2004, provident funds’ aggregate foreign assets totaled NIS 7 billion, 3.3% of their total assets. Most of the increase in provident funds’ foreign assets was due to 600% growth in investments in foreign corporate bonds from NIS 688 million in December 2004, to NIS 4.9 billion in September 2005; an 80% increase in investment in foreign stocks to NIS 3.7 billion; and a 50% increase in investment in foreign mutual and other funds to NIS 3.7 billion.
Non-bank provident funds’ foreign investments grew by 157% in January-September to NIS 986 million, 6.4% of their total assets. Pension funds’ foreign investments amounted to 5.5% of their total assets in September - NIS 120 million. Bank funds’ foreign investments doubled in January-September to NIS 10 billion, 6.3% of their total assets.
Published by Globes [online], Israel business news - www.globes.co.il - on November 21, 2005