Israeli Insurance Giants Report Massive Asset Growth and Record Profits in First Half of 2026

The five largest Israeli insurance companies, Phoenix, Harel, Menora Mivtachim, Clal, and Migdal, have reported strong financial results for the first half of 2026, collectively managing assets worth 2.8 trillion shekels, a 17% increase from the previous year. Their combined half-year profit reached 6.8 billion shekels, marking an 11.5% rise compared to the same period last year. Analysts at Jefferies described the recent quarter as "the best we remember for Israeli insurance firms." The sector's stock index surged about 8% in the past week, completing a 33% gain since the start of the year and a 470% rise over three years.

Menora Mivtachim, led by Michael Kalman, reported a remarkable 864% stock increase over five years, now valued at 31 billion shekels. The company projects a 73% growth in managed assets by 2030, reaching 750 billion shekels, with adjusted after-tax profits expected to hit 3 billion shekels. Menora aims to reduce its reliance on health insurance profits from 88% to 76% by decade's end while doubling income from credit and insurance agencies.

Phoenix, Israel's largest insurer by market value at 46 billion shekels, highlighted the growth of public financial assets to 7.7 trillion shekels as of June, more than doubling in the past decade. CEO Eyal Ben Simon emphasized the increasing demand among younger consumers for advanced financial products, signaling significant growth potential. Clal Insurance and Harel also reported strong profit increases, with Harel posting the highest half-year profit in the industry at 1.59 billion shekels and a return on equity of 27%.

Despite the overall positive results, the motor vehicle insurance segment showed a significant decline in profits across all companies, attributed to a 15-20% drop in comprehensive car insurance prices over the past year. Migdal even moved from a 25 million shekel profit to a 15 million shekel loss in this area. Industry insiders expect the third and fourth quarters to remain challenging for motor insurance due to ongoing price reductions.

The insurance sector's shift from valuation based on book value multiples to earnings multiples suggests further upside potential, with experts predicting stock prices could rise another 50% if earnings continue to grow. This optimism is underpinned by rapid asset growth and expanding profitability in core insurance and financial management operations.