Phoenix Financial reported a 10% year-over-year increase in core income for the first half of 2026, driven by a 36% surge in its asset management division. The company posted core income of 1.45 billion NIS ($476 million) for H1 2026, up from 1.32 billion NIS in the prior-year period, while comprehensive income reached 1.57 billion NIS.
Return on equity stood at 26.1% for the six-month period, with Q2 alone recording a 29.7% ROE. Earnings per share totaled 6.3 NIS for H1. Shareholders’ equity increased to 13.1 billion NIS, supported by a 177% solvency ratio at the insurance subsidiary as of March 31, 2026.
The asset management unit was the primary growth engine, expanding 36% year-over-year to generate 579 million NIS in core income. Assets under management rose 8% to 658 billion NIS ($217 billion) by June 30, 2026, reflecting a five-year compound annual growth rate of 21%. Adjusted EBITDA for the division reached 761 million NIS. The segment’s digital platform surpassed 1 million users, including 100,000 securities traders, while the BUYME gift-card platform served over 1.2 million end users through 15,000 employers and 1,200 brands.
The insurance segment contributed 873 million NIS in core income, with property and casualty operations generating 590 million NIS before tax. Health insurance recorded 637 million NIS in pre-tax comprehensive income, while life and savings insurance reported 227 million NIS. Core income in this segment was impacted by higher risk claim expenses in Q2, totaling 282 million NIS.
Phoenix distributed 972 million NIS to shareholders in H1 2026, equivalent to 62% of comprehensive income and exceeding its 55%+ guidance. A Q2 dividend of 400 million NIS was declared, alongside share buybacks totaling 252 million NIS. The full-year 2026 buyback plan was increased from 300 million NIS to 400 million NIS. Subsidiaries remitted 1.01 billion NIS in cash to the parent company during the period.
Credit ratings for the insurance subsidiary remained stable at A-/A3 from S&P and Moody’s, while Phoenix Financial held BBB/Baa2 ratings. The company reaffirmed its medium-term targets, projecting 10% annual core income growth through 2028, with asset management expected to expand at a 20% compound annual rate. Insurance core income is guided to reach 1.9–2.1 billion NIS by 2028, while asset management core income is targeted at 1.3–1.5 billion NIS.
Phoenix shares rose 3.12% to 18,510 NIS, trading near the upper end of their 52-week range of 10,270 to 20,130 NIS.
