Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) published its second quarter financials this morning. The comprehensive post-tax profit attributable to shareholders for the quarter was NIS 50 million, compared with NIS 140 million in the corresponding quarter. In the first half of 2014, Clal Insurance made a comprehensive post-tax profit attributable to shareholders of NIS 251 million, compared with NIS 244 million in the corresponding period of 2013.
The results in the first half of this year were affected by a provision of NIS 213 million, of which NIS 165 million was made in the second quarter, because of low interest rates. The figures are pre-tax, and are similar to provisions made by other companies.
In the second quarter, Clal Insurance made a loss on its life insurance business of NIS 77 million, compared with a profit of NIS 67 million in the corresponding quarter. It posted a profit of NIS 138 million on its general insurance business, compared with NIS 69 million in the corresponding quarter.
Clal Insurance also reports a higher loss for its Clal Finance unit, amounting to NIS 15 million, mainly due to a reduction in value of Clal Finance's holdings in non-marketable bonds of Dror-Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL), that caused it a loss of NIS 17 million.
Clal Finance is in the process of early repayment of its bonds, for which it has recorded a liability of NIS 216 million.
Clal Insurance CEO Izzy Cohen said, "Clal Insurance continues to implement its strategy, enhancing the business, hiving off unprofitable activities, and improving underwriting performance in all insurance sectors. We are continuing to put all our energy into executing the work plan for 2014."
Published by Globes [online], Israel business news - www.globes-online.com - on August 24, 2014
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