Three Key Figures:

• Total income in the first half: NIS 1.5 billion, reflecting improved profitability and efficiency.
• Return on equity (ROE): 27%, an exceptional figure in the industry highlighting the strength of management.
• Assets under management (AUM): NIS 560 billion, indicating growing client confidence and a leading market position.

Financial Performance in the First Half

Phoenix ended the first half of 2025 with total income of NIS 1.5 billion, a significant improvement compared to previous periods. Earnings per share reached NIS 6, reinforcing the market’s view of the company’s ability to consistently deliver returns to shareholders.

The return on equity, which stood at 27%, is exceptionally high relative to the insurance and financial sector. This figure points to focused and efficient capital management and the success of the company’s strategy, which combines insurance, pension, and investment activities.

Asset Management and Strong Balance Sheet

The group’s assets under management reached NIS 560 billion as of the end of June 2025. This figure reflects continued growth and penetration into new markets, alongside an increase in investments from both private and institutional clients. Shareholders’ equity totaled NIS 12.2 billion, reflecting balance sheet stability and the ability to absorb market fluctuations.

The company’s Solvency Ratio stood at 181%, well above regulatory requirements, underscoring its liquidity resilience and ability to maintain financial flexibility even in challenging times.

Implementation of New IFRS Standards

In 2025, Phoenix began implementing IFRS 17 and IFRS 9 standards, which contributed to reduced volatility in financial statements and improved transparency for investors. Moreover, the implementation is expected to add between NIS 400–600 million in additional profit potential toward the company’s 2027 targets, set at NIS 2 billion.

Strategic Policy and Dividend

The company has focused its growth on profitable, low-capital areas such as investment management, agency operations, and non-bank credit. These areas provide stable cash flow and high returns while reducing exposure to capital markets.

At the same time, the dividend policy was updated so that distribution will now take place quarterly instead of semi-annually. In the past two years, the company distributed approximately NIS 3 billion to its shareholders, with an average dividend yield of 5%, strengthening its attractiveness to both institutional and private investors.

Economic and Security Challenges

Alongside the strong results, the company operates in a challenging economic environment. Interest rates in Israel remain high (4.5%), inflation continues to hover around 3%, and capital markets are characterized by rising volatility. In addition, the economic consequences of the “Iron Swords War” are being strongly felt, including its impact on Israel’s credit rating. However, Moody’s maintained a Baa1 rating for Phoenix’s insurance operations and even upgraded the outlook to “stable,” reflecting the company’s capital strength and ability to remain profitable under complex conditions.

Looking Ahead

The data from the first half of the year position Phoenix strongly for continued growth. The implementation of the new accounting standards, together with the updated dividend distribution policy and impressive balance sheet strength, provide a stable basis for creating value for shareholders.

Although macroeconomic and security challenges remain, Phoenix’s business diversification, strategic management, and financial strength enable it to maintain its position as a leading company in Israel’s insurance and investment industry.