Insurance companies' profits surged this quarter to NIS 2.85 Billion

Combined profits for Israel’s four largest insurance companies - Phoenix, Menora, Clal Insurance, and Migdal - surged by 20% in the second quarter of 2026, reaching NIS 2.85 billion.

These figures do not yet include Harel, which are expected to push the industry’s total profit up to approximately NIS 3.5 billion.

Together, the four industry giants concluded the first half of 2026 with an aggregate profit of NIS 4.72 billion - a 10% increase compared to the first half of 2025. This strong performance and solid profitability were also reflected in stock price gains across the insurance sector over the past week.

Among the four major firms, Migdal Group recorded the lowest profit, posting NIS 575 million. At the top of the chart was Phoenix Financial, which delivered the sector's highest earnings, posting NIS 872 million for the quarter and NIS 1.57 billion for the half-year. Buoyed by these strong outcomes, the companies have revised their business targets upward for the coming years.

Phoenix, managed by CEO Eyal Ben Simon and owned by investment funds, achieved an exceptional return on equity (ROE) of 30% for the second quarter and 26% for the half-year. Its core profits grew by 48% this quarter to NIS 328 million, while total assets under management reached NIS 658 billion.

In light of these earnings, shareholders are set to receive 62% of the half-year profits (NIS 972 million) as dividends. This payout will consist of NIS 720 million distributed as a direct cash dividend and NIS 252 million via share buybacks.

Operationally, Phoenix's comprehensive financial services platform reached 1 million users. The company also established an international reinsurance platform, alongside executing ongoing acquisitions and continuing to realize synergies from previously acquired companies.

This surge in profit stems primarily from a 36% growth in asset management activity during the first half of the year and 48% growth in the second quarter. Core profits derived from investment management, pension and provident funds, financing, and agencies grew from NIS 426 million to NIS 579 million in the half-year, and from NIS 222 million to NIS 328 million in the second quarter. Conversely, profitability in core insurance activity saw a decline.

Reflecting on the performance, Ben Simon stated: "The half-year results reflect the ongoing trend of shifting our activity mix. We plan to adjust the company's targets in light of increased growth, and we are pleased with the expansion of our international investor base."

Meanwhile, Menora Mivtachim is stepping on the gas and presenting ambitious growth targets through 2027. The firm’s quarterly profit rose by 9.6% to NIS 785 million. In the first half of 2026, profit grew by 13% to NIS 1.25 billion - the largest in the company's history - driving its ROE to 34.2% for the quarter and 27.2% for the half-year.

Since the beginning of 2026, the group has distributed NIS 500 million in dividends for the year 2025. Following the reporting period, the company declared an additional dividend distribution of NIS 500 million based on its profits from the first half of 2026.

Menora Mivtachim CEO Michael Kalman stated: "The results reflect significant improvement across business parameters. Our long-term targets for 2027 include an adjusted profit of NIS 3 billion, total premiums of NIS 55 billion, and assets under management (AUM) reaching NIS 750 billion."