Business Wire
Phoenix Holdings Publishes Financial Statements for Q4 and 2023
Business Wire
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TEL AVIV, Israel, March 27, 2024--(BUSINESS WIRE)--Phoenix Holdings Ltd., a leading Israel-based financial, insurance, and investment group (TLV:PHOE) ("Phoenix," the "Group," or the "Company"), today reported its results for the fourth quarter of 2023 and calendar year 2023.

Highlights

Income and Return on Equity

  • 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

  • The Company has announced a NIS 265 million dividend distribution for H2 2023, facilitated by diverse income streams and high Solvency, in addition to the NIS 120 million distributed in H2 2023; a total of NIS 385, or 35% of comprehensive income for 2023, was distributed from 2023 earnings.

Growth and Profitability

  • 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 to NIS 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 (roughly NIS 763 million without minority interests)

  • Total assets under management grew during 2023 by 17% to NIS 433 billion; as of publication, AUMs reached NIS 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

  • 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.

  • 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 of Israel.

  • 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.

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