Pretax profit on elementary insurance from its US subsidiary, Guard Financial Group, doubled to NIS 16 million for the third quarter

 

Monday, Nov 23,2009, 10:56:50 AM   Click:

IDB Holding Corp. Ltd. (TASE:IDBH) unit Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) today published its financial report for the third quarter of 2009. The company posted a net profit attributable to shareholders of NIS 117 million for the third quarter, compared with a net loss attributable to shareholders of NIS 193 million for the corresponding quarter of 2008.

Gross premiums were barely changed at NIS 2.36 billion for the third quarter compared with NIS 2.3 billion for the corresponding quarter. The largest change in the company's profit and loss statement was in net income from financing and investments: the company posted a profit of NIS 2.57 billion for the third quarter compared with a net loss of NIS 1.04 billion for the corresponding quarter.

Clal Insurance posted a pretax profit of NIS 115 million on long-term savings for the third quarter, compared with a pretax loss of NIS 107 million for the corresponding quarter. Pretax profit on elementary insurance in Israel and Europe was NIS 47 million for the third quarter, compared with a pretax loss of NIS 38 million for the corresponding quarter, and pretax profit on health insurance doubled to NIS 36 million from NIS 18 million.

Clal Insurance's pretax profit on elementary insurance from its US subsidiary, Guard Financial Group Inc., doubled to NIS 16 million for the third quarter from NIS 8 million for the corresponding quarter.

Clal Insurance had NIS 69.76 billion in assets at the end of September, 18.5 percent more than the NIS 58.85 billion at the end of 2008.

Clal Insurance CEO Shay Talmon said, "At this time a year ago, we underwent a financial crisis of previously unknown proportions. Uncertainty was at its height, and it was not possible to predict when the crisis would end, or what its consequences would be. It now appears that the global economy is recovering, but it's premature to predict when market stability will return. Banks worldwide are still collapsing, unemployment rates are still high, countries still have to carry out stimulus plans, and the world's central banks are still pursuing expansionist monetary policies."

IDB, controlled by chairman and CEO Nochi Dankner, owns 56.21 percent of Clal Insurance, and Bank Hapoalim (TASE: POLI) owns 9.72 percent. Clal Insurance's share fell 0.6 percent in morning trading today to NIS 80, giving a market cap of NIS 4.36 billion.