Israel Land Development (ILD) Insurance Co. (TASE: ILDH) earned a NIS 9.73 million net profit in the second quarter of 2004, compared with NIS 3.2 million in the second quarter of 2003.
The results were affected by a NIS 7.9 million write-down for real estate in the second quarter of 2003 and a NIS 3.38 million adjustment in the balance of deferred taxes, caused by lowering of income tax rates, in the second quarter of 2004. Excluding these factors, net profit fell 15% in the second quarter of 2004.
ILD Insurance earned a NIS 14.26 million net profit in the first half of 2004, up 46%, compared with the corresponding period last year. In its core non-life insurance business, the company’s profit rose 23%, and its total premiums were up 6.5%. ILD Insurance is an 82.66%-owned subsidiary of the Nimrodi family-controlled Israel Land Development Company (Nasdaq: ILDCY; TASE: ILDC).
Last May, ILD Insurance issued shares through an offer for sale, raising a gross total of NIS 35.27 million, and a net of NIS 31.2 million. Its parent company posted an NIS 8.1 million capital gain. Before the issue, ILD Insurance paid off NIS 28 million in current liabilities to its parent company.
ILD Insurance’s June 30, 2004 balance sheet total was NIS 3 billion, compared with NIS 2.76 billion as of December 31, 2003. In July 2004, ILD Insurance distributed bonus shares amounting to 25%, and its first-ever dividend, which amounted to NIS 5 million. The dividend was part of a new policy declared by ILD Insurance chairman and general manager Ron Weissberg. From now on, ILD Insurance will distribute half of its net profit in dividends. The company is expected to distribute at least NIS 3 million this year.
Published by Globes [online] - www.globes.co.il - on August 24, 2004