TEL-AVIV, Israel, Aug. 22, 2024 /PRNewswire/ -- Phoenix Financial Ltd. (formerly Phoenix Holdings), a leading Israel-based financial, insurance, and investment group (TLV:PHOE) ("Phoenix," the "Group," or the "Company"), today reported its results for the first half of 2024 and second quarter of 2024.
Income and return on equity
Phoenix reports NIS 667 million in comprehensive income for the first half of 2024, resulting in NIS 2.65 in income per share and 12.8% in return on equity. Core comprehensive income totaled NIS 869 million (net of non-operating effects, including capital market effects above and below real returns of 3%, interest rate effects and special items), which reflects a core (normalized) return on equity of 16.7%.
In the second quarter of 2024, Phoenix reports NIS 383 million in comprehensive income, reflecting NIS 1.52 in income per share and 15.1% return on equity. Core comprehensive income (net of non-operating effects, including capital market effects above and under real returns of 3%, interest rate effects and special items) totaled NIS 548 million, which reflects core (normalized) return on equity of 21.9%.
Growth in profitability and activities
Phoenix reports continued growth in its Asset Management, Distribution, and Credit activities with NIS 275 million and NIS 146 million in core comprehensive income for the first half of 2024 and second quarter of 2024, respectively, compared to NIS 215 million and NIS 114 million in the first half and second quarter of 2023, respectively.
Adjusted EBITDA for the Asset Management, Distribution, and Credit activity totaled NIS 567 million and NIS 286 million in the first half and the second quarter of 2024, respectively, consolidated including minorities, compared to NIS 459 million and NIS 232 million in the first half of 2023 and the second quarter of 2023, respectively.
The Group reports continued, consistent growth in Insurance activities, with core comprehensive income increasing to NIS 594 million and NIS 402 million in the first half and the second quarter of 2024, respectively, compared to NIS 435 million and NIS 243 in the first half and the second quarter of 2023, respectively.
Total assets under management increased 11% in the first half of 2024 to NIS 480 billion, including the acquisition of Psagot's fund management activities completed in March 2024; the Group's Credit portfolio was NIS 5.8 billion.
Phoenix has achieved its strategic goals for 2025 earlier than expected and expects to publish updated strategic targets and roadmap on September 9, 2024.
Financial resilience
Phoenix has a strong financial profile characterized by high liquidity and low net debt, further supporting the company's dividend policy. Asset Management, Distribution, and Credit activities generate significant and increasing cash flow; in addition, in June Phoenix-Gama successfully completed an issuance of commercial notes totaling 0.5 billion shekels. Phoenix Insurance has a high solvency ratio of 191% the transitional measures as of March 31, 2024 (after dividend distribution).
On August 19, 2024, rating agency Midroog raised its Phoenix Insurance credit rating to Aaa.il, the highest on the Israeli rating scale. Phoenix also has an existing ilAAA rating from Maalot and international insurance ratings including A2 by Moody's and A- by S&P. These strong financial ratings reinforce Phoenix's leadership position in the insurance and finance ...
