Israel Phoenix Assurance (TASE: PHOE1;PHOE5) made headlines yesterday after it was sold to Delek Group Ltd. (TASE: DLEKG) controlled by Yitzhak Tshuva for $214 million, reflecting a value for Phoenix of NIS 750 million. The company will be the focus of interest again today, following the publication of its second quarter report, which the company warned would show lower profit.
Phoenix posted a substantial decrease in profit from life insurance activity, down to NIS 21.7 million, from NIS 111.5 million in the corresponding quarter in 2005. Profit from general insurance activity also fell to NIS 8.1 million from NIS 19.4 million in the corresponding quarter last year.
Phoenix’s total profit from insurance activity fell to NIS 29.9 million in the second quarter, and NIS 185.4 million for the first half of 2006, from NIS 131.8 million in the corresponding quarter, and NIS 266 million for the first half of 2005. According to figures correct to the start of the second quarter of 2006, Phoenix had a 16.1% share of the life insurance market, and a 12.2% share of the general insurance market.
Net profit decreased 54% to NIS 32.9 million in the second quarter, and by 30.1% to NIS 141.1 million in the first half of 2006. The company’s data for the first half of the year include a NIS 26 million profit attributable to the sale of its rights in the Givatayim Mall, and a NIS 24.2 million profit on the sale of the property at 1 Rothschild Boulevard in Tel Aviv. In the corresponding period in 2005, Phoenix recorded a NIS 45 million profit on the sale of Shagrir Motor Vehicle Systems Ltd.
Published by Globes [online], Israel business news - www.globes.co.il - on August 28, 2006
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