Phoenix Financial reported a 48% year-over-year increase in asset management core income for the second quarter of 2026, accelerating from a 36% gain in the first half of the year. The company posted core income of NIS 1.45 billion in H1 2026, up from NIS 1.07 billion in the prior-year period, while comprehensive income totaled NIS 1.57 billion.
Return on equity reached 26.1% for the first half, including 29.7% in Q2, compared with 23.8% core ROE. Asset management contributed NIS 579 million in core income during H1, with NIS 328 million generated in Q2 alone. Adjusted EBITDA for the segment rose 29% YoY to NIS 903 million in H1, driven by a 40% increase in Q2.
Total assets under management expanded to NIS 658 billion as of June 30, 2026, up 19% annually and ahead of the 2028 guidance range of NIS 700–800 billion. Phoenix now oversees $217 billion in assets, with Israeli public assets growing from NIS 4.5 trillion in 2020 to NIS 7.7 trillion as of May 2026.
Insurance operations generated core income of NIS 873 million in H1, including NIS 415 million in Q2. Property and casualty insurance reported pre-tax comprehensive income of NIS 590 million, while health insurance contributed NIS 637 million. Life insurance and savings saw pre-tax income of NIS 227 million, with core income declining NIS 39 million YoY to NIS 282 million.
Shareholder distributions totaled NIS 972 million in H1, representing 62% of comprehensive income, including NIS 720 million in dividends and NIS 252 million in share buybacks. The dividend yield stood at 3.6% on an annualized basis, with NIS 680 million paid over the calendar year, or NIS 2.9 per share. Buyback authorization for 2026 was increased from NIS 300 million to NIS 400 million.
Management highlighted asset management as a capital-light, fee-based earnings driver, noting the platform’s one million app users as an untapped cross-sale opportunity. The company also launched international P&C reinsurance capability with an AA- rating, investing approximately NIS 150 million. Phoenix maintained a 15.2% market share in P&C insurance as of 2025, up from 12.2% in 2020, while its Solvency II ratio stood at 177% with transitional measures.
