Regulatory Filings • Jul 9, 2025
Regulatory Filings
Open in ViewerOpens in native device viewer
.
On July 9, 2025, S&P Global Ratings affirmed its 'A-' long-term issuer credit and financial strength ratings on Israel-based The Phoenix Insurance Co. We also affirmed our 'A-' long-term issuer credit rating on core group subsidiary The Phoenix Capital Raising 2009. The outlook on both entities remains stable.
In our view, Phoenix has maintained its lead position in the market with a balanced portfolio encompassing life insurance, long-term savings, property and casualty, and health insurance. Phoenix has shown a strong and consistent track record of surpassing industry profitability over the past five years, which we believe distinguishes it from its peers.
Phoenix announced its net income for 2024 (based on IFRS 4) reached Israeli new shekel (ILS) 1.573 billion (ILS645 million in 2023), reflecting a return on equity (ROE) of about29%. This increase is chiefly attributed to strategic initiatives aimed at enhancing insurance income. Furthermore, asset management, credit, and distribution segments were significant contributors to the overall growth of the Phoenix group. Phoenix continues to outperform the
Stockholm 46-8-440-5921 andreas.lundgren.harell @spglobal.com
London 44-20-7176-7991 mark.nicholson @spglobal.com
Ramat-Gan 44-20-7176-0106 matan.benjamin @spglobal.com
CRISIL Global Analytical Center, an S&P Global Ratings affiliate Mumbai
industry average in property/casualty insurance in Israel, achieving a combined (loss and expense) ratio of about 76% in 2024 (85.3% in 2023). This metric has remained stable within the 85%-95% range over the past five years, averaging about 88%.
According to the updated policy, 40%-60% from annual income should be paid as dividend.
In the first quarter of 2025, growth continued throughout the group. Net income in accordance with International Financial Reporting Standard (IFRS) 17 amounted to ILS368 million (ILS375 million in the first quarter of 2024, restated on a like-for-like IFRS17 basis), translating to a ROE at about 23%.
Phoenix's capitalization remained healthy over 2024, according to our risk-based capital model. We assess that the group's capitalization will remain adequate to support the credit rating, notwithstanding its planned growth trajectory and potential volatility arising from market fluctuations or geopolitical developments in Israel and the wider region. In addition, Phoenix enjoyed a strong solvency ratio of 183% at year-end 2024, including transitional measures. The ratio without transitional measures stood at 155%, within the long-term target range of 150%- 170%.
We currently do not expect the ongoing conflicts in the region to damage Phoenix. The Israeli government has a scheme that will cover property insurance losses directly related to the war, as well as military life insurance claims; insurers themselves will not cover these risks. A prolonged conflict could impact insurers' investment portfolios; however, these have been holding up well so far. More broadly, there could be protracted effects from changed macroeconomic prospects and credit conditions, particularly if the conflict spreads more widely. We view as positive the fact that over the past year, Israel's economy has proven its resilience. Key macroeconomic indicators and private consumption have been relatively stable, and growth in the capital market outpaced major global indices.
The stable outlook on Phoenix reflects our view that it will maintain its leading business position in the next 18-24 months. At the same time, we believe its capital adequacy will strengthen and remain adequate in relation to balance sheet risks.
We may consider a negative rating action in the next 18-24 months:
Additionally, a downgrade of the sovereign credit rating, particularly if accompanied by a continued negative outlook, would have a negative impact.
A positive rating action in the next 18-24 months would require a more stable political and economic situation in Israel and capitalization to remain robust.
.
| Business Risk Profile | Strong |
|---|---|
| Competitive position | Strong |
| IICRA | Intermediate |
| Financial Risk Profile | Satisfactory |
| Capital and earnings | Satisfactory |
| Risk exposure | Moderately low |
| Funding structure | Neutral |
| Anchor | a |
| Modifiers | |
| Governance | 0 |
| Liquidity | 0 |
| Comparable rating analysis | 0 |
| Current Credit Rating | |
| Local currency financial strength rating | A-/Stable/-- |
| Foreign currency financial strength rating | -- |
| Local currency issuer credit rating | A-/Stable/-- |
| Foreign currency issuer credit rating | -- |
*We chose the higher of the two anchor choices (a-/bbb+) to reflect the group's profitability and significant diversification outside insurance. IICRA--Insurance Industry And Country Risk Assessment.
.
.
| Ratings list | |
|---|---|
| Ratings Affirmed | |
| Phoenix Capital Raising 2009 (The) | |
| Phoenix Insurance Co. (The) | |
| Issuer Credit Rating | |
| Local Currency | A-/Stable/-- |
| Phoenix Insurance Co. (The) | |
| Financial Strength Rating | |
| Local Currency | A-/Stable/-- |
Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at
https://disclosure.spglobal.com/ratings/en/regulatory/ratings-criteria for further information. A description of each of S&P Global Ratings'rating categories is contained in"S&P Global Ratings Definitions"at https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/sourceId/504352. Complete ratings information is available to RatingsDirect subscribers at www.capitaliq.com. All ratings referenced herein can be found on S&P Global Ratings'public website at www.spglobal.com/ratings.
.
.
Andreas Lundgren Harell Stockholm 46-8-440-5921 [email protected]
CRISIL Global Analytical Center, an S&P Global Ratings affiliate Mumbai
Mark D Nicholson London 44-20-7176-7991 [email protected]
Matan Benjamin Ramat-Gan 44-20-7176-0106 [email protected] Phoenix Insurance Ratings Affirmed At 'A-' On Strong Performance And Healthy Capital Position; Outlook Stable
Copyright © 2025 by Standard & Poor's Financial Services LLC. All rights reserved.
No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Some of the Content may have been created with the assistance of an artificial intelligence (AI) tool. Published Content created or processed using AI is composed, reviewed, edited, and approved by S&P personnel.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.spglobal.com/usratingsfees.
STANDARD & POOR'S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor's Financial Services LLC.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.