IDB Holding Corp. Ltd. (TASE:IDBH) unit Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) today published its financial report for the second quarter of 2008. The company posted a net profit of NIS 6.9 million, 93.8% less than the NIS 263.2 million for the corresponding quarter of 2007. The company posted a loss for the first quarter of 2008.
For the first half of 2008, Clal Insurance posted a loss of NIS 10.2 million compared with a profit of NIS 593.2 million for first half of last year.
Revenue fell 14.1% to NIS 3.29 billion for the second quarter from NIS 3.83 billion for the corresponding quarter and fell to NIS 4.66 billion in the first half from NIS 6.85 billion for the corresponding half of last year. Financing expenses jumped 166% to NIS 100.4 million for the second quarter from NIS 37.8 million for the corresponding quarter.
Clal Insurance's profit from life insurance totaled NIS 16.2 million for the second quarter, down 90% from the corresponding quarter. Since life insurance revenue comes from fixed management fees and variable management fees on profit participating insurance policies, and since there was no profit from the latter item, there were no variable management fees either. Revenue from fixed management fees totaled NIS 70.9 million for the second quarter, down 73.6% from the corresponding quarter.
Clal Insurance's results were also adversely affected by subsidiary Clal Finance Batucha Ltd. (TASE:CLFN), which lost NIS 13.6 million in the first quarter and NIS 46.1 million in the second quarter for a total first half loss of NIS 59.7 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008