Direct Insurance Profits Rise 38% Despite Revenue Drop in Q2

Direct Insurance reported a 38% increase in profits from its car insurance operations, reaching 121 million shekels in the second quarter, despite a nearly 6% decline in insurance revenues to 743 million shekels. Overall insurance profit rose 16% year-over-year to 117 million shekels. The company sold insurance policies worth 906 million shekels during the quarter, a 2% decrease attributed partly to losing the 2026 government vehicle insurance tender to Migdal and Weshur, which was awarded in September last year. Despite the reduced volume from this loss, overall profitability improved.

The main segment, property car insurance including comprehensive and third-party coverage, saw a 7% revenue decline but improved profitability due to fewer thefts, operational efficiencies, tighter claims management, and better handling of prior years’ claims. The company’s strategy to focus on more profitable customers rather than expanding at any cost also contributed to the results. In compulsory car insurance, Direct Insurance reversed a loss of nearly 14 million shekels in the previous year’s quarter to a underwriting profit of 10 million shekels, a 24 million shekel improvement.

Health insurance profits increased by 12% to 36 million shekels compared to the same quarter last year. Following these results, Direct Insurance announced an additional dividend payout of 80 million shekels, on top of 65 million shekels distributed in May. The company’s shares surged 8% to a market value of 3.8 billion shekels. Direct Insurance is controlled by the Schneidman family through Direct Insurance Financial Holdings, which owns 40.6% of the company’s shares.