Menora Mivtachim Reports 10% Profit Rise to NIS 785 Million, General Insurance Profit Jumps 48%

Menora Mivtachim, Israel's third-largest insurance company, reported a 10% increase in net profit for the second quarter, reaching NIS 785 million compared to NIS 716 million in the same period last year. The company’s return on equity rose to 24.7% from 24.2% in the previous year. This profit growth was driven by a 5% increase in insurance service revenues to NIS 2.2 billion and a 14% rise in asset management fees to NIS 333 million.

The most significant profit growth occurred in the general insurance sector, which includes car and home insurance, where pre-tax profit surged 48% to NIS 360 million from NIS 244 million. This improvement came despite a decline in car insurance prices over the past year. CEO Ari Kalman attributed the gains to positive developments in past claims and better performance in compulsory insurance.

Long-term savings activities also saw a 12% increase in pre-tax profit to NIS 174 million, mainly due to growth in managed assets supported by positive returns in the Israeli capital market over the last 12 months. In credit operations, primarily through its holding in ERN, adjusted profit rose 21% to NIS 64 million, with the credit portfolio expanding 24% to NIS 9.4 billion compared to the previous year.

Menora Mivtachim is controlled by Tali Greifal and Niva Gorvitz. Over the past year, its stock price increased by 51%, outperforming the Tel Aviv Insurance and Financial Services Index, which rose 42.3%. The company is currently valued at NIS 28 billion.