Revenues fell, but Bituach Yashir's profit rose by 38% to 121 million shekels

Bituach Yashir's profit from car insurance is soaring, and the company concluded the second quarter with an improvement in profitability from insurance operations, despite a decline in revenues. Profit from insurance services rose by 38% to 121 million shekels, while insurance revenues fell by almost 6% to 743 million shekels.

Total profit from insurance amounted to 117 million shekels, an increase of 16% compared to the corresponding quarter. The volume of policies sold by the company in the quarter amounted to 906 million shekels, a decrease of 2% compared to the corresponding period. The decline is attributed, among other things, to the loss of the Accountant General's tender for 2026. In the tender held last September for the insurance of state employees' vehicles, Migdal and WeSure won, while Bituach Yashir did not.

The decline in the volume of activity following the tender was not accompanied by a decline in the company's overall profitability. The improvement was also recorded in Bituach Yashir's core activity — car property insurance, which includes comprehensive insurance and third-party liability, even though revenues in this sector fell by 7%. According to the company, the improvement in profitability stemmed from a decrease in thefts, operational efficiency, tighter claims management, and developments in claims from previous years. The company's policy of optimizing the insurance portfolio, focusing on more profitable customers rather than expanding activity at any cost, was also reflected in the results.

In the field of compulsory car insurance, the company moved from a loss of almost 14 million shekels in the corresponding quarter to an underwriting profit of 10 million shekels in the current quarter — an improvement of 24 million shekels. In the health insurance sector, profit amounted to 36 million shekels, an increase of 12% compared to the corresponding quarter.

Against the backdrop of the results, Bituach Yashir announced a dividend distribution of 80 million shekels, after having already distributed 65 million shekels last May. The company's stock is jumping by 8% today, and it is trading at a valuation of 3.8 billion shekels. Bituach Yashir is controlled by the Shnidman family through Bituach Yashir Financial Holdings, which holds 40.6% of its shares.