While Clal Insurance (TASE:CLIS) is still Israel’s largest non-life insurance company in terms of revenue and turnover, second-placed Harel Insurance (TASE:HARL1;HARL5) is closing the gap. The gap between them shrank from 31% to 17% after Israel’s four largest insurance companies published their 2002 financial reports this week.
Premiums and other gross revenue by Israel four largest insurers - Clal Insurance, Harel Insurance, Israel Phoenix Assurance (TASE:PHOE1) and Migdal Insurance (TASE:MGDL) - were higher in 2002 than in 2001.
Migdal retained itd standing of many years as Israel’s largest life insurance company, more than 50% larger than its nearest rival. All the companies reported a 5.5% decline in sales last year, due to the decline in sales of executive insurance policies.
Three of the four companies reported declines of 44-78% in their net profit, mainly due to heavy losses on investments.
Only Israel Phoenix reported a sharp increase in profit, mainly due to a NIS 55 million gross capital gain on the sale of part of its art collection, and a sharp drop in its management and general expenses compared with 2001, apparently due to the end of its allowance arising from the La Nationale affair.
Published by Globes [online] - www.globes.co.il - on March 26, 2003