BDI CODE 2014 - Israel's Leading Companies, Law Firms, Accounting Firms, Best Companies To Work For - page 53

INSURANCE COMPANIES
BdiCode 2014
53
In 2013, the improvement in the results of the activity of most of the companies
in the insurance industry in Israel continued. The insurance industry is greatly
affected by the volatility in the capital markets and in the changes in the
economic and political situation in Israel and abroad. The low interest level
and the decrease in unemployment rates and the governmental deficit,
contributed to the growth rate of the Israeli economy that in the past year
was 3.3%. Accordingly, trade in the Israeli stock market also saw a growth
in rates in most of the indexes, including the Tel Aviv 100 Index that rose by
15% compared to last year. Also, the world economy displayed a positive
macroeconomic picture that is reflected in the moderation of the debt crisis
in the European Union and in the Eurozone, and improvements in economic
indicators in the US and in emerging countries.
In the passing year the insurance companies enjoyed a rise in the capital market
that led to a rise in their assets, and accordingly to a rise in the management
fees that were collected in the policies sharing the profits. Still, it seems that
this year as well the insurance companies had to deal with the admission of
validity of reforms that seek to regulate the activity in the industry and bring
upon an increase in competitiveness. Among one of the leading reforms
that became valid in the beginning of 2013 we will mention the limitation
of management fees in pension that defines the maximal allowed to charge
management fees and the prohibition to market senior employees insurance
with a coefficient secured pension.
In addition, the insurance companies are facing a regulatory jolt relating to
the health insurance activity sector. In April 2013 the German Committee
was founded in order to strengthen the public health system. A year later,
the committee submitted some of its recommendations, among which were
enforcing the insurance companies to rule a set insurance policy, to stop
giving partial refunds to patients who chose surgeons who are not included
in the regulatory list and so on.
The total assets of the 13 ranked insurance companies amounted in 2013 to
NIS 431 billion, in comparison to NIS 375 billion in 2012, a growth of 15%.
The ranked insurance companies registered in the passing year an aggregate
profit after tax of NIS 3,525 million, in comparison to a profit of 1,563 last year,
a significant growth of 126%. In the general insurance field the 13 ranked
companies showed profits before taxes of NIS 1,649 million, in comparison
to profits before taxes of NIS 1,252 million in 2012, a growth of 32%.
Leading the insurance company rankings is the Harel Group with assets totaling
NIS 79 billion comprising 18%of the total assets of the 13 ranked companies.
The group's income in 2013 amounted to NIS 10.3 billion, a growth of 11%
in comparison to 2012. The profit from the life insurance field was NIS 333
million in the past year, a significant growth of 156% in comparison to last
year. The income from life insurance and long-term savings field amounted
to NIS 3,810 million, a growth of 16% in comparison to the previous year. In
addition, the general insurance activity sector registered a growth in income
of 7% and amounted to NIS 3,111 million.
In second place in the insurance company ranking, this year we find Migdal
Group, whose asset span in the last year amounted to NIS 110 billion comprising
26% of the total assets of the 13 ranked companies.
The asset span of Clal Group ranked this year in third place amounted to NIS
86 billion, comprising 20% of the total of assets in the 13 ranked companies.
In the general insurance field, the company's income comprised a tiny decline
of 1% and amounted to NIS 2,818 million. On the other hand, the profit
before taxes in this field of activity saw a growth of 42%and amounted to NIS
202.6 million. We would like to note that in 2014 the Supervisor of Insurance,
Dorit Salinger, cancelled the purchase plan of Clal Insurance Company by
Chinese investors. The decision was reached after the group was in advanced
negotiations with the Chinese in object to sell 32%of the Clal Insurance stocks
to the Chinese according to company value of NIS 4.8 billion.
In seventh place in the ranking is Israel Direct Insurance. The company's
asset span in 2013 amounted to NIS 3.3 billion and its income saw a growth
of 10%, totaled NIS 1.4 billion. The company saw a net profit after taxes of
NIS 120.6 million in comparison to NIS 105.2 million in the previous year, a
growth of 15%. S. Shlomo Insurance Company ranked in 13th place with an
200
300
400
500
2010
2011
2012
2013
339
345
375
431
0
500
1,000
1,500
2,000
2,500
3,000
Phoenix
11.0%
Menora
26.7%
חברות הביטוח המדורגות )במיליארדי שקלים(
2012
2013
375
431
013
31
0
500
1,000
1,500
2,000
2,500
3,000
2010
2011
2012
2013
2,022
692
365
2,416
Total Assets Held by the 13 Ranked Insurance
Companies (in NIS billion)
Aggregate Profit from Life Insurance and Long-
term Savings of the Five Leading Insurance Groups
(in NIS million)
Insurance Companies
CONTINUED
1...,43,44,45,46,47,48,49,50,51,52 54,55,56,57,58,59,60,61,62,63,...480