Regulatory Filings • Jul 15, 2025
Regulatory Filings
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July 9, 2025
Rating Affirmation
Andreas Lundgren Harell, Stockholm, 46-8-440-5921
Matan Benjamin, Ramat Gan, 972-3-753916 [email protected]
Eyal Chelouche, 972-37539737 [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 July 9, 2025, the Hebrew version shall apply.
| Overview3 | |
|---|---|
| Rating Action 3 | |
| Rationale3 |
| Outlook 5 | |
|---|---|
| Downside Scenario 5 | |
| Upside Scenario 5 | |
| Related Criteria And Research5 | |
| Ratings List 6 |
On July 9, 2025, S&P Maalot affirmed its 'ilAAA' rating on The Phoenix Insurance Company Ltd., the outlook is stable. At the same time, S&P Maalot affirmed its 'ilAA' rating on Phoenix Financial Ltd., the outlook is stable.
In our view, Phoenix has maintained its leading position in the market, with diversified business lines including life insurance, long-term savings, property & casualty insurance, health insurance, asset management, credit and distribution. Through its robust competitive position, 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's 2024 financial results for the year 2024 highlight resilient growth across various lines of business. The group's comprehensive income was NIS 2.369 billion under IFRS 17 (compared with NIS 1.093 billion in 2023), reflecting a return on equity (ROE) of 22.2%. Insurance profits soared by more than 30% to NIS 1.66 billion. The asset management, credit and distribution segments were significant contributors to growth, generating NIS 630 million in core income.
Aligned with its strategy to drive sustainable and capital-efficient growth, Phoenix continues to strengthen its operational capabilities and broaden its market presence. As a result, assets under management reached NIS 525 billion by the end of 2024, reflecting disciplined management and the effective execution of growth initiatives.
Looking at property/casualty (P/C) insurance, Phoenix continues to outperform the industry average in Israel, achieving a combined 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%. Throughout the year, the Company continued to focus on optimization of the P/C segment through ongoing technology initiatives.
Based on 2024 profit, Phoenix declared NIS 1.017 billion in annual dividends and share buybacks. Dividend distribution was transitioned to quarterly, from semi-annually, owing to a healthy and stable financial position including meaningful diversification with respect to sources of growth and income streams. According to the dividend policy, at least 40% from annual income should be paid as dividend (subject to solvency policy). Phoenix Insurance's dividend policy has also been updated to quarterly, and stands at 40%-60% of profit (subject to solvency policy).
In first quarter of 2025, growth continued throughout the group and comprehensive income in accordance with IFRS17 amounted to NIS 568 million (NIS 510 million in 2024, restated on a like-forlike IFRS17 basis), translating to ROE of about 21%. We note positive impact from transition to IFRS17, foremost in life and health segments. Phoenix announced a quarterly dividend of NIS 230 million, and executed share buybacks totalling NIS 21 million for the period.
Subject to the capital model - Phoenix's capitalization strengthened over 2024, according to our model. We assess that the group's capitalization will remain adequate to support its credit rating, notwithstanding its planned growth trajectory and potential volatility arising from capital market fluctuations or geopolitical and security developments in Israel and the wider region. Phoenix posted 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 or the wider political and economic instability to adversely affect 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. The most significant effect of a prolonged conflict could be on insurers' investment portfolios, however these have been holding up well in 2024 and early 2025. More broadly, there could be protracted effects from changed macroeconomic prospects and credit conditions, particularly if the conflict were to spread more widely. We positively view the fact that over the past year, Israel's economy has proven its strength and resilience. Key macroeconomic indicators and private consumption have been relatively stable, and growth in the capital market outpaced major global indices.
The stable outlook reflects our view that Phoenix will maintain its leading business position in the Israeli insurance market in the next 18-24 months. Our view is supported by its diversified business model and sound profitability, supporting its capital accumulation. We believe its capital adequacy will strengthen, and remain compatible with its balance sheet risks.
We may consider a negative rating action in the next 18-24 months in case of material deterioration in the Company's operating performance that erodes its loss-absorbing capacity and materially weakens its capital adequacy, or in case of a decline in premiums and deposits to a level that we believe weakens Phoenix's business position in the local market. A prolonged and further widening of the scope of the conflict could also prompt a negative rating action. Additionally, a downgrade of the sovereign credit rating, particularly if accompanied by a continued negative outlook, would have a negative impact on the Company's rating.
A negative rating action on Phoenix Insurance could lead to a similar action on Phoenix Financial. A deterioration in the liquidity profile could also lead to a negative rating action on Phoenix Financial.
We will consider a positive rating action on Phoenix Financial if the group's credit profile continues to strengthen while maintaining adequate liquidity.
| The Phoenix Insurance Company 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 | 30/07/2024 |
| 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 Financial Ltd. | 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 | 30/07/2024 |
| Issue rating(s) | |||
| Senior Unsecured Debt | |||
| Series 4 | ilAA | 03/02/2020 | 30/07/2024 |
| Series 5 | ilAA | 03/02/2020 | 30/07/2024 |
| Series 6 | ilAA | 14/12/2021 | 30/07/2024 |
| Issuer Credit Rating history | |||
| Long term | |||
| July 11, 2023 | ilAA/Stable | ||
| October 06, 2019 | ilAA-/Stable | ||
| October 07, 2018 | ilA+/Positive | ||
| February 19, 2017 | ilA+/Stable | ||
| November 17, 2015 | ilA+/Negative | ||
| May 20, 2014 | ilA+/Stable | ||
| November 18, 2012 | ilA+/Negative | ||
| July 18, 2012 | ilA+/Watch Neg | ||
| January 12, 2012 | ilA+/Stable | ||
| August 26, 2010 | ilA/Stable | ||
| May 19, 2009 | ilA/Negative | ||
| November 16, 2008 March 14, 2007 |
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) | |||
| Subordinate hybrid debt | |||
| Series 9 | ilAA | 03/02/2020 | 30/07/2024 |
| Series 4 | ilAA | 03/02/2020 | 30/07/2024 |
| Series 5 | ilAA | 03/02/2020 | 30/07/2024 |
| Series 8 | ilAA | 03/02/2020 | 30/07/2024 |
| Series 16 | ilAA | 26/03/2025 | 26/03/2025 |
| Series 11 | ilAA | 16/02/2019 | 30/07/2024 |
| Series 13 | ilAA | 23/06/2022 | 30/07/2024 |
| Series 17 | ilAA | 26/03/2025 | 26/03/2025 |
| Series 12 | ilAA- | 27/07/2021 | 30/07/2024 |
| Subordinated debt | |||
| Series 14,15 | ilAA | 12/12/2023 | 30/07/2024 |
| Additional details | Item |
| Time of the event | 09/07/2025 13:13 |
|---|---|
| Time when the event was learned of | 09/07/2025 13:13 |
| Rating requested by | Issuer |
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