The stock market rally and economic recovery helped Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) returned to profits in 2009, and its executives are among the beneficiaries. The company published its financial report for the full year of 2009 today.
Migdal's revenue rose 455% to NIS 20.22 billion in 2009 from NIS 3.64 billion in 2008. Most of the increase came from investments in securities: profit from investments net of financing income was NIS 12.09 billion in 2009, compared with a loss of NIS 4.11 billion in 2008.
Migdal had NIS 19.59 billion in assets under management in its pension funds at the end of 2009, up from NIS 14 billion a year earlier. Its provident funds had NIS 13.2 billion in assets under management, up 34% from the NIS 9.9 billion a year earlier.
Migdal posted net profit of NIS 714.5 million (NIS 0.68 per share) in 2009, compared with a net loss of NIS 248.8 million in 2008. It will distribute a NIS 240 million dividend. Improvement was seen in all business sectors. Profit from life insurance and long-term savings was NIS 475 million in 2009, compared with a loss of NIS 215 million in 2008; profit from health insurance was NIS 138 million, compared with a loss of NIS 17 million; and profit from elementary insurance was NIS 186 million, compared with a loss of NIS 1308 million.
Gross life insurance premiums rose 5.7% to NIS 5.7 billion in 2009 from NIS 5.53 billion in 2008, and gross health insurance premiums rose to NIS 512 million from NIS 481 million, but gross elementary insurance premiums fell 4.8% to NIS 1.45 billion from NIS 1.53 billion. Total gross premium fell to NIS 7.74 billion in 2009 from NIS 7.51 billion in 2008.
Migdal's pension funds received NIS 3.06 billion in investments by employees and employers in 2009, up from NIS 2.62 billion in 2008. The firm earned NIS 188 million in management fees on the funds.
Migdal's expenses rose 382% to NIS 19.31 billion in 2009 from NIS 4.09 billion in 2008.
Migdal subsidiary Migdal Capital Markets posted a net profit of NIS 74.5 million in 2009, mostly from investments by its nostro portfolio.
Migdal Capital Markets chief investment officer Yaakov Weinstein heads the company's list of executive compensation for 2009, with a salary and bonus of NIS 8.5 million. Migdal CEO Yonel Cohen earned NIS 7 million.
Migdal's share price rose 2.5% in morning trading today to NIS 8.12, giving a market cap of NIS 8.31 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 17, 2010
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