Phoenix Financial (TASE: PHOE), Israel’s largest insurance company, posted a comprehensive profit of NIS 872 million for the second quarter of 2026, 6% lower than in the corresponding quarter of 2025. Capital market activity was weaker than in the corresponding quarter. The company’s annualized return on equity in the current quarter was however high, at 29.7%.
For the first half year, the company’s comprehensive profit was NIS 1.57 billion, 10% higher than in the first half of 2025. The annualized return on equity in the first half was 26.1%.
Like Clal Insurance, Phoenix Financial, headed by Eyal Ben Simon, has announced that it intends to raise its business targets later on in the year, "in the light of higher growth".
Core profit in the second quarter (on long term savings, insurance, non-bank credit, and insurance agencies), excluding fluctuations on the capital market, rose 7% to NIS 743 million. Core profit in the first half was 10% higher than in the first half of last year, at NIS 1.43 billion.
Phoenix Financial’s trading platform Excellence Trade has 100,000 customers trading independently on the financial markets, and this activity continues to grow rapidly.
At the end of the second quarter, Phoenix Financial had NIS 658 billion in assets under management, representing a rise of 8% since the beginning of the year, which is reflected in the management fees it charged. Core profit in this area jumped by 48% to NIS 328 million for the second quarter and by 36% to NIS 579 million for the first half year.
In insurance, on the other hand, core profit fell 12% in the second quarter to NIS 415 million. For the first half year, the company’s profit on its insurance business was down 2% at NIS 873 million.
The main reason for the decline in the insurance results is a 50% fall in profit on vehicle insurance (comprehensive and third party) to just NIS 53 million, following the reduction in vehicle insurance premiums in the past year.
NIS 400 million dividend
Phoenix Financial has declared a cash dividend of NIS 400 million on the second quarter profit (NIS 1.6 per share), plus a share buyback to the tune of NIS 167 million. In total, the company has distributed NIS 972 million to its shareholders in the first half of 2026, 62% of its profit for the period, and it has announced an increase in its annual share buyback program from NIS 300 million to NIS 400 million.
"Phoenix Financial continues to perform strongly and to generate strategic growth at a higher than expected rate, and this in a competitive market and a challenging business environment," CEO Ben Simon said. "The second quarter results reflect continuation of the trend of change in the mix of activities, with accelerated growth of 36% in asset management activities with high multiples and growth rates, and we plan to adjust the company’s targets in the light of the higher growth."
Published by Globes, Israel business news - en.globes.co.il - on August 25, 2026.
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