IDB Holding Corp. Ltd. (TASE:IDBH) unit Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) posted a net profit attributable to shareholders of NIS 29 million for the second quarter of 2010, 80% less than the NIS 151 million for the corresponding quarter of 2009.
The company said the positive trend in the capital market, which was characteristic of 2009, continued in the first quarter of 2010, but that the trend reversed in the second quarter, resulting in negative returns. As a result, the company reimbursed most of the variable management fees in policies that depend on returns for investors.
As a result in the falls in the second quarter, the company posted a net loss of NIS 213 million on investments for the second quarter, compared with a net profit of NIS 2.87 billion on investments for the corresponding quarter, when financial markets began to recover from their low points in the current crisis and stock prices rose sharply.
Clal Insurance CEO Shay Talmon said, "In the first half of 2010, emphasis was placed on improving the financial soundness of the group, both by raising Tier-2 capital and by reducing the debt of Clal Finance Ltd. (TASE:CLFN). At the same time, business was expanded."
On Thursday, "Globes" reported that European private equity fund Permira Advisors LLC is in talks with IDB to acquire Clal Insurance.
Clal Insurance's share price rose 4% in morning trading today to NIS 82.69, giving a market cap of NIS 4.4 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 22, 2010
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