In the shadow of the prolonged negotiations for the sale of control of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) to a foreign investor - either Permira Funds LLC or a European insurance company - the company under CEO Shay Talmon continues to perform well and report strong financials. The results are strong enough to absorb damage from catastrophes on the other side of the world, and show a 71% increase in net profit to NIS 600.8 million in 2010 from NIS 267.2 million in 2009.
Net profit attributable to majority shareholders fell to NIS 673 million in 2010 from NIS 859 million in 2009, thanks to exceptionally high returns in the capital market that year.
Fourth quarter net profit rose to NIS 168 million from NIS 22 million for the corresponding quarter.
Clal Finance, controlled by Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH), announced that it will distribute a dividend of NIS 150 million , after distributing NIS 200 million during 2010.
"2010 was an excellent business year, in which the group showed soundness and strength. The group's policy of diversification again proved itself," said Talmon, adding, "There is a slew of business and regulatory issues that will make 2011 especially challenging."
Clal Insurance has also summoned a general shareholders meeting to approve extending the term of chairman Avigdor Kaplan for an undefined period because of the pending change of control of the company.
Despite natural disasters that affected Clal Insurance's UK subsidiary Broadgate Underwriting Ltd., which posted a loss of NIS 116 million in 2010, compared with a profit of NIS 28 million in 2009, Clal Insurance presented a long line of sources of profit. The company said that it will seek to reduce its exposure to natural disasters, as the recent earthquakes in New Zealand and Japan will adversely affect its 2011 results. The damage is currently estimated at NIS 43 million.
Clal Insurance's revenue from premiums rose by 4%. Premiums in Israel rose by 3% to NIS 8.3 billion.
Clal Insurance's share price rose 2.3% by mid-afternoon to NIS 97.21, giving a market cap of NIS 5.26 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 28, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011