The insurance company was able to move to a third quarter net profit

Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) today published its financial report for the third quarter of 2009 today. The company posted NIS 5.91 billion revenue for the third quarter, sharply higher than the NIS 174.1 million revenue for the corresponding quarter of 2008.

Net profit from investment and financing income was NIS 3.9 billion for the third quarter, compared with a net loss of NIS 1.77 billion for the corresponding quarter. The company attributes the profit to gains in securities traded on the Tel Aviv Stock Exchange (TASE) and foreign stock exchanges, as well as the rise in the Israeli Consumer Price Index (CPI) and appreciation of the shekel against the dollar.

Premium retentions were flat at NIS 1.75 billion for the third quarter compared with the corresponding quarter. Retentions are the amount of a premium kept by an insurer, and not reinsured with a second insurance company.

Expenses rose 13-fold to NIS 5.63 billion for the third quarter from NIS 432.8 million for the corresponding quarter.

Migdal posted a net profit of NIS 262.2 million (NIS 0.25 per share) for the third quarter, compared with a net loss of NIS 144.6 million for the corresponding quarter.

Gross premiums rose 3.6 percent to NIS 5.69 billion in January-September from NIS 5.55 billion in the corresponding period of 2008.

Italy's Assicurazioni Generali SpA (Milan: GASI) owns 69.5 percent of Migdal. Migdal's share fell 0.6 percent in morning trading to NIS 6.26, giving a market cap of NIS 6.59 billion.