5% drop in Phoenix profits to 908 million shekels; will distribute a dividend of 400 million shekels
Phoenix concluded the second quarter of 2026 with a total profit of 908 million shekels, a 5% decrease year-on-year. Despite a decline in insurance core profits, the company saw significant growth in investment management and consumer credit activities.
Phoenix concluded the second quarter with a total profit of 908 million shekels, compared to 961 million shekels in the corresponding quarter last year, a decrease of 5%. The company's revenues totaled 2.5 billion shekels, remaining stable compared to the previous year.
Phoenix recorded a decrease in core profits across all three main insurance branches:
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Health insurance: profit reached 262 million shekels (a decrease of 2 million shekels).
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General insurance: profit reached 234 million shekels (a 21% decrease from 295 million).
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Life insurance: profit reached 135 million shekels (a 20% decrease from 171 million).
In total, the core profit of the three insurance sectors fell from 716 million to 630 million shekels, a decrease of approximately 12%. This decline was driven by erosion in car insurance profitability due to price drops and an increase in claim volume, alongside higher claims in life insurance.
In contrast, investment management activity showed strong growth. Profit from managing core assets totaled nearly half a billion shekels, compared to 344 million shekels in the corresponding quarter—an increase of 44%. Assets under management at Phoenix rose to 658 billion shekels, an increase of 48 billion shekels since the beginning of the year. The company maintains its target of 800 billion shekels in assets under management by 2028.
Phoenix, led by CEO Eyal Ben Simon, has been diversifying its activities to reduce dependence on capital market volatility. The company is expanding consumer credit through the Gamma group, which includes the digital gift platform BUYME and a 20% stake in the El Al frequent flyer club. Phoenix's credit portfolio reached 5.7 billion shekels, up from 4.8 billion at the start of the year. Profit from this segment rose by 55% to 73 million shekels.
Following these results, Phoenix will distribute a dividend of 400 million shekels and increase its share buyback program to 400 million shekels. Phoenix shares have risen by 48% over the last 12 months, with the company's market value reaching approximately 45 billion shekels.
