Phoenix Insurance Reports 5% Profit Decline to 908 Million Shekels, Declares 400 Million Shekel Dividend

Phoenix Insurance reported a net profit of 908 million shekels in the second quarter of 2026, marking a 5% decrease from 961 million shekels in the same quarter last year. The company's revenues remained stable at 2.5 billion shekels. Core profits declined across all three main insurance sectors: health insurance led with 262 million shekels, down 2 million shekels; general insurance profits fell 21% to 234 million shekels; and life insurance profits dropped 20% to 135 million shekels. Overall, core profits from these sectors decreased by approximately 12% to 630 million shekels, impacted by reduced car insurance profitability due to price drops and increased claims, as well as higher life insurance claims.

In contrast, Phoenix's investment management segment showed a 44% rise in profitability, with core asset management profits reaching nearly 500 million shekels compared to 344 million shekels the previous year. Assets under management grew by 48 billion shekels to 658 billion shekels since the start of 2026, with the company maintaining its target to manage up to 800 billion shekels by 2028.

Under CEO Eyal Ben Simon, Phoenix has been diversifying to reduce reliance on capital market volatility, expanding its consumer credit activities through Gamma, which includes the digital gift platform BUYME and a 20% stake in El Al’s frequent flyer club. The credit portfolio grew to 5.7 billion shekels from 4.8 billion shekels at the beginning of the year. This segment’s revenues increased 56% to 185.3 million shekels, with profits rising 55% to 73 million shekels.

Following these results, Phoenix declared a dividend of 400 million shekels and increased its share buyback program to 400 million shekels from the previous 300 million shekels. Phoenix’s stock price rose 48% over the past year, outperforming the Tel Aviv Insurance and Financial Services Index, and the company’s market capitalization reached approximately 45 billion shekels, solidifying its position as Israel’s largest insurance firm.