Phoenix Holdings Publishes Financial Statements for Q4 and 2023
Highlights
Income and Return on Equity
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Phoenix reports
NIS 1.1 billion in comprehensive income for 2023 and return on equity of 10.5%. -
Comprehensive income in the fourth quarter of 2023 totaled
NIS 578 million and return on equity was 24.4%.
Dividend
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The Company has announced a
NIS 265 million dividend distribution for H2 2023, facilitated by diverse income streams and high Solvency, in addition to theNIS 120 million distributed in H2 2023; a total ofNIS 385 , or 35% of comprehensive income for 2023, was distributed from 2023 earnings.
Growth and Profitability
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Core income grew to
NIS 1.3 billion , representing core return on equity of 12.6% (without non-operating effects from capital markets above and below 3% yields, interest rates, and special items) -
Core income from insurance grew to
NIS 872 million , primarily from improved performance in P&C insurance. Core income from Asset Management and Credit activities grew toNIS 450 million , representing 34% of total core income. -
For the first time, Phoenix reports Adjusted EBITDA for the Asset Management and Credit business (without insurance risk activities) of
NIS 926 million , fully consolidated including minorities (roughlyNIS 763 million without minority interests) -
Total assets under management grew during 2023 by 17% to
NIS 433 billion ; as of publication, AUMs reachedNIS 455 billion including the acquisition of active funds from Psagot signed in 2023 and completed in 2024. - Phoenix continues to improve efficiency and productivity; Insurance activities reduced staff by 240 employees representing 8% of the total, primarily in life and savings; Asset Management and Credit activities grew staff by 150 employees, primarily from mergers and acquisitions.
Strategy
- Phoenix is achieving 2025 strategic targets ahead of schedule, is assessing growth engines and targets for the coming years, and will publish updated plans and targets in the near future.
Financial Resilience, Technology, Accounting, and Community
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Phoenix is financially resilient with high levels of liquidity and a high Solvency II ratio for Phoenix Insurance, which reached 209% with transitional measures as of
September 30, 2023 . - The Group continues to invest in infrastructure and innovation to benefit its customers, broadening digitization and improving precision underwriting and pricing, including machine learnings and advanced models for motor insurance.
- Phoenix is preparing to implement IFRS 17 in 2025, which is expected to reduce accounting volatility.
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Following the start of the Gaza War, the Company increased financial support and staff volunteering across a wide set of activities, including supporting
Barzilai Medical Center in the south ofIsrael . -
The Company made efforts to provide access to its leading collection of Israeli art through exhibitions in
Israel and the US that have been attended by over 50,000 people to date.
"This past year was a difficult one for the people of
In these days of pain and challenge, the spirit of
In addition to the war, this challenging year was also characterized by political uncertainty, inflation, high interest rates, and sharp volatility in the capital markets. Facing these headwinds, Phoenix proactively managed our business and exposures, initiating changes and adjustments to ensure full business continuity and support clients while achieving strategic targets with consistency and determination. Despite the challenges, Phoenix was able to meet all its targets for 2023.
This was another year of continued growth and improvement across core activities, which include Insurance as well as the growing Asset Management and Credit businesses. We continue to execute our value creation strategy through organic growth and synergetic acquisitions. The group's broad range of activities, in addition to the measures we have taken, disciplined capital management, efficiency improvement, and continuous innovation, have lifted performance to reach our targets faster than anticipated. We intend to provide higher strategic growth targets in the coming months.
Group income continued to improve in the fourth quarter, another indication of our ability to generate strong profitability against a challenging backdrop. We continue to improve our insurance underwriting and profitability, including in the P&C segment. At the same time, we continued to grow across all asset management activities, including the Investment House and Wealth segment. The Phoenix is also expanding its credit business while reinforcing
Our objective is to continue to create shareholder value while leveraging our financial position continue to accelerate growth across capital-efficient activities and capturing business opportunities. Phoenix will continue to seek to distribute dividends according to our policy and to execute our renewed share buyback program.
We will continue to face challenges, and I believe in the ability of the Phoenix to act effectively and decisively to ensure future prosperity. I am proud of our group’s efforts and would like to thank our clients, employees, agents, business partners, and members of our Board of Directors for our collaborative work and achievements in 2023. I wish for the people of
Below are financial statement highlights:
Comprehensive income attributable to shareholders -
In 2023, comprehensive income attributable to shareholders amounted to
The comprehensive income attributable to shareholders in the fourth quarter of 2023 amounted to
Core income (net of capital market effect above and under a real return of 3%, interest rate effects and special items)
Core income was
Contribution to core income from insurance totaled
Core income in the fourth quarter of 2023 totaled
Equity capital and total assets under management
Shareholders equity
Equity attributable to Company’s shareholders totaled approximately
Assets under management
Total assets under management by the Group increased to
Phoenix is meeting 2025 strategic targets ahead of schedule, is currently assessing targets and growth engines, and will publish updated plans and growth targets in the near future
Following are the main financial results of the group's operating segments:
(For more details regarding the changes in the financial results, see the Report of the Board of Directors on the State of the Corporation's Affairs and the Analyst Presentation)
Insurance
P&C
Comprehensive income before tax for the fourth quarter of 2023 amounted to NIS 443 million, compared to
Comprehensive income before tax for the fourth quarter of 2023 amounted to NIS 53 million, compared to
Life Insurance and Savings
Comprehensive income before tax for the fourth quarter of 2023 amounted to NIS 46 million, compared to
It is noted that as of the report publication date, unreceived variable management fees amount to
Asset Management and Credit
Retirement (Pension and Provident)
Comprehensive income before tax for the fourth quarter of 2023 amounted to NIS 9 million, compared to
Investment House & Wealth
Comprehensive income before tax for the fourth quarter of 2023 amounted to NIS 65 million, compared
Distribution (Agencies)
Comprehensive income before tax for the fourth quarter of 2023 amounted to NIS 66 million, compared to
Credit (
Comprehensive income before tax for the fourth quarter of 2023 amounted to NIS 14 million, compared
Conference Call Information
About
View source version on businesswire.com: https://www.businesswire.com/news/home/20240327443289/en/
Email: davidal@fnx.co.il
Tel: +972 (3) 733-2979
Email: phoenix@roseandco.com
Tel: +1 (212) 517-0810
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