Menora Mivtachim breaks a record: 34.2% return on equity for the quarter
Total profit for the half-year rose 13% to 1.25 billion shekels, adjusted profit jumped 26%, and the group distributed half a billion shekels in dividends and immediately announced another half a billion. Behind the numbers lies a new growth engine - credit - and a first perfect rating. What does all this mean for your pension savings?
The Menora Mivtachim Group, the second-largest insurance company after Harel and Phoenix, concluded the first half of 2026 with the highest profit in its history and a return on equity of 34.2% in the second quarter — an exceptional rate that positions the group, led by CEO Ari Kalman, at the forefront of the Israeli insurance industry in terms of capital utilization efficiency.
Total profit after tax for the half-year amounted to 1.25 billion shekels, an increase of about 13% compared to the same period last year. The data joins an exceptional reporting season in the industry, in which Clal, Migdal, and Phoenix have already presented record profits.
Adjusted profit before tax jumped 26% in the half-year to 1.65 billion shekels, and 25% in the quarter to 877 million shekels. The gap between this pace and the more moderate growth in reported total profit (about 10% for the quarter) tells the real story: the company's operational engine is accelerating faster than it appears at first glance, as some of the capital market gains from last year are no longer repeating with the same intensity.
Alongside traditional insurance, Menora is building a credit arm that is becoming significant. During the half-year, the group completed two deals: increasing its holding to full ownership in "Menora ERN" and acquiring control of "Yesodot". The credit portfolio grew by about 28% and reached about 9.4 billion shekels, and profit before tax in the sector rose by about 32% to 118 million shekels.
Menora distributed 500 million shekels in dividends for 2025 during the half-year, and immediately after the end of the period announced another 500 million shekels for the half-year profits — a total of one billion shekels. A company capable of distributing at such a scale signals that it has comfortable capital surpluses: the solvency ratio (excluding the deployment period) stands at 163.1%, and the capital surpluses of the institutional entities in the group amount to about 5.3 billion shekels.
During the reporting period, Menora Mivtachim Insurance was rated for the first time with a AAA rating by S&P Maalot — the highest on the scale — and Midroog raised it to Aaa.il, also the highest on the scale.
Menora manages about 472 billion shekels — mainly pension, provident, and training fund money of the public, an increase of 17% within a year. As the asset base grows, so do management fee revenues, and this is what fuels profitability going forward. Alongside the reports, Menora presented for the first time strategic goals for 2030, including significant growth in profit, premiums, assets under management, and capital.
The caveat: a 34% return on equity is a record that is difficult to replicate quarter after quarter, and part of it relies on a strong capital market that could turn around. For the saver, financial robustness and growth in assets are the more important story for the long term.
Ari Kalman, CEO of Menora Mivtachim Insurance, stated:
"We are concluding the second quarter and the first half of the year with record results for the group, continued significant improvement in business parameters, and business momentum in all of the group's sectors of activity. These results reflect both the strength of the group and our long-term business strategy, which is proving itself even in a changing market environment and creating a solid foundation for the continuation of the growth trend in the group's profitability in the coming years, alongside the diversification of areas of activity. We are also presenting the group's long-term goals and are confident that we will meet them — as we have done, and even more so, in recent years."
