Regulatory Filings • Dec 31, 2023
Regulatory Filings
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December 27, 2023
Mark Nicholson, London, 44-20-7176-7991 [email protected]
Matan Benjamin, 972-3-753916 [email protected]
Please note that this translation was made for convenience purposes and for the company's use only and under no circumstances shall obligate S&P Global Ratings Maalot Ltd. The translation has no legal status and S&P Global Ratings Maalot Ltd. does not assume any responsibility whatsoever as to its accuracy and is not bound by its contents. In the case of any discrepancy with the official Hebrew version published on December 27, 2023, the Hebrew version shall apply.
| Overview3 | |
|---|---|
| Rating Action3 | |
| Rationale3 | |
| Outlook4 | |
| Downside Scenario4 |
| Environmental, Social, And Governance 4 |
|
|---|---|
| Related Criteria And Research4 | |
| Ratings List 5 |
On December 27, 2023, S&P Maalot affirmed its 'ilAAA' rating on The Phoenix Insurance Company Ltd. and its 'ilAA' rating on The Phoenix Holdings Ltd, both with a stable outlook. We also affirmed our rating on subsidiary Phoenix Capital Raising (2009) Ltd.'s subordinated debt.
More broadly, we believe it may suffer from prolonged effects as a result of the slowdown in economic activity in Israel and capital market volatility, especially if the fighting continues and expands (see Israel Outlook Revised To Negative On Geopolitical Risks; 'AA-' Ratings Affirmed, October 24, 2023). However, we estimate that the war will not have a material impact on the Company's performance, as damages and losses directly related to the war will be covered by the government program. In addition, where life losses are not covered by the government, the Company has catastrophe
reinsurance programs which should limit the impact on their capital. The war may affect capital market returns, but we estimate that if it is relatively short and limited to the Gaza Strip and its surroundings, the impact will remain moderate.
Following the publication of S&P Global Ratings' revised methodology for assessing insurers' risk-adjusted capital on November 16, 2023, there has been an improvement in our assessment of the Company's financial profile. In accordance with the revised methodology, we give more credit to Value In Force (VIF) in our calculation, and therefore our assessment of the Company's capital has improved. Phoenix Insurance's overall regulatory solvency ratio (including transition adjustments) was 205% on June 30, 2023, compared to 211% on December 31, 2022. We believe the Company demonstrates robust loss absorption capacity with material capital surplus compared with requirements at the current rating level.
The stable outlook on Phoenix Insurance reflects our view that it will maintain its leading business position in the next 18-24 months. Our view is supported by its diversified business model and sound profitability, supporting its capital accumulation. At the same time, we believe its capital adequacy will strengthen and remain adequate in relation to balance sheet risks.
We may downgrade Phoenix Insurance in the next 18-24 months if, contrary to our assessment, we see a material weakening in its profitability and capitalization. This scenario may occur if the war between Israel and Hamas persists and even expands to other arenas, with a significant impact on economic activity in Israel.
A negative rating action on Phoenix Insurance could lead to a similar action on Phoenix Holdings. A weakening in Phoenix Holdings' liquidity profile could also lead to a negative rating action.
ESG factors have an overall neutral influence on our credit analysis of Phoenix Insurance Company Ltd.
Group Rating Methodology, July 1, 2019
Environmental, Social, And Governance Principles In Credit Ratings, October 10, 2021
| Phoenix Insurance Ltd. | Rating | Date when the rating was first published |
Date when the rating was last updated |
|---|---|---|---|
| Issuer rating(s) | |||
| Long term | ilAAA/Stable | 24/05/2004 | 11/07/2023 |
| Issuer Credit Rating history | |||
| Long term | |||
| July 11, 2023 | ilAAA/Stable | ||
| April 21, 2020 | ilAA+/Stable | ||
| October 07, 2018 | ilAA+/Positive | ||
| February 19, 2017 | ilAA+/Stable | ||
| November 17, 2015 | ilAA+/Negative | ||
| May 20, 2014 | ilAA+/Stable | ||
| November 18, 2012 | ilAA+/Negative | ||
| July 18, 2012 | ilAA+/Watch Neg | ||
| October 16, 2011 | ilAA+/Stable | ||
| August 26, 2010 | ilAA/Stable | ||
| August 17, 2009 | ilAA-/Negative | ||
| May 19,2009 | ilAA-/Watch Neg | ||
| February 08, 2009 | ilAA/Watch Neg | ||
| May 24, 2004 | ilAA |
| Phoenix Holdings | Rating | Date when the rating was first published |
Date when the rating was last updated |
|---|---|---|---|
| Issuer rating(s) Long term |
ilAA/Stable | 14/03/2007 | 11/07/2023 |
| Issue rating(s) Senior Unsecured Debt Series 4 Series 5 Series 6 |
ilAA ilAA ilAA |
03/02/2020 03/02/2020 14/12/2021 |
11/07/2023 11/07/2023 11/07/2023 |
| Issuer Credit Rating history Long term July 11, 2023 October 06, 2019 October 07, 2018 February 19, 2017 November 17, 2015 May 20, 2014 November 18, 2012 July 18, 2012 January 12, 2012 August 26, 2010 May 19, 2009 November 16, 2008 March 14, 2007 |
ilAA/Stable ilAA-/Stable ilA+/Positive ilA+/Stable ilA+/Negative ilA+/Stable ilA+/Negative ilA+/Watch Neg ilA+/Stable ilA/Stable ilA/Negative ilAA/Watch Neg ilAA/Stable |
| Phoenix Capital Raising (2009) Ltd. |
Rating | Date when the rating was first published |
Date when the rating was last updated |
|---|---|---|---|
| Issue rating(s) | |||
| Subordinated debt | |||
| Series 9 | ilAA | 03/02/2020 | 11/07/2023 |
| Series 4 | ilAA | 03/02/2020 | 11/07/2023 |
| Series 5 | ilAA | 03/02/2020 | 11/07/2023 |
| Series 8 | ilAA | 03/02/2020 | 11/07/2023 |
| Series 10 | ilAA | 03/02/2020 | 11/07/2023 |
| Series 11 | ilAA | 16/02/2019 | 11/07/2023 |
| Series 13 | ilAA | 23/06/2022 | 11/07/2023 |
| Series 12 | ilAA- | 27/07/2021 | 11/07/2023 |
| Series 14,15 | ilAA | 12/12/2023 | 12/12/2023 |
| Additional details | Item |
|---|---|
| Time of the event | 27/12/2023 11:51 |
| Time when the event was learned of | 27/12/2023 11:51 |
| Rating requested by | Issuer |
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