Phoenix Financial Ltd · TASE:PHOE
Phoenix Financial — The Phoenix Holdings — H1 2020 Earnings Presentation
31 slides from Phoenix Financial's earnings presentation, August 2020
Slide 1: Sustainable Profitable Growth Over Time
THE PHOENIX HOLDINGS SUSTAINABLE PROFITABLE GROWTH OVER TIME H1 / 2020 Financial Statements Investors Presentation 1
Slide 2: From the CEO's Desk: Constant Growth Over Time
Phoenix’s Q2 financial results are an outcome As part of the recent reorganization, From the CEO’s Desk of our commitment to sustainable growth, Phoenix introduced a new operating model profitability, and responsible investment – Phoenix Pro – that will drastically improve management. These, togethe
Slide 3: Executive Summary
H1/2020 The Company's Shareholder's Equity, as of 30.06.2020, totaled approximately NIS 6.8 bn, compared to (1) approximately NIS 6.6 bn as of 31.12.2019. Recent COVID-19 events confirm the Phoenix’s resilient Executive and diversified business model with activities across insurance, asset managemen
Slide 4: Strength
71 NIS 208Bn Years of Assets under management Operations The Phoenix Group ID 2,500 FINANCIAL Agents STRENGTH I nvestment house Insurance Holdings owned AA+ AA- Distribution channels Credit Rating 4
Slide 5: The Phoenix Way for Business Growth
THE PHOENIX WAY FOR BUSINESS GROWTH Capitalizing Reliable, Leveraging Innovation on group persistent, Leading Distribution development synergies investment division and integration of new channels - direct and agents technologies 5
Slide 6: The Strength of the Group
The phoenix way for business growth THE STRENGTH OF THE GROUP The Phoenix Holdings Ltd. Insurance Asset management Distribution Innovation & Technologies Health AM AM Phoenix INSIGHT IMPACT P&C SMART DIRECT (Phoenix Capital) (Excellence) Agencies TECHNOLOGIES TECHNOLOGIES LTS Ad 120 CO Kesem 84% Aga
Slide 7: The COVID-19 Era
THE COVID-19 ERA Financial resilience Capitalizing on investment opportunities Sustainable growth Efficiency plan Quarterly Results
Slide 8: Highlights
HIGHLIGHTS 208Bn as of AUM NIS June 30, 2020 H1/2020 Market cap NIS 4.2Bn 1 Shareholders’ equity NIS 6.8Bn The Phoenix - Israel’s Leading Insurance Group H1 Results - resilient Shareholders’ comprehensive income H1 NIS 171M Q2 NIS 748M performance, stable AUM 2 479M 269M Covid-19 post balance 3 nega
Slide 9: Phoenix Holdings Comprehensive Income Drivers
PHOENIX COMPREHENSIVE INCOME DRIVERS < (Pre-tax, Nis m) -425 HOLDINGS (-71%) Covid-191 596 (118) (295) (184) (4) (124) 246 (479) -367 +139 -159 171 +8 -10 -7 H1/20 Vs H1/19 (NIS m) -309 +280 Q2/20 Vs Q2/19 (NIS m) H1/19 P&C Health LTS AM Agencies CO Tax Miniority H1/20 Δ H1/19 - H1/20 Results H1-20
Slide 10: Premiums & Benefit Contribution
PREMIUMS, PREMIUMS & BENEFIT CONTRIBUTION < (Nis m) 1,885+ 478- 557- BENEFIT (12%+) (11%-) (6%-) 381+ (2%+) 1,782+ 18,127 4,434 9,132 (13%+) CONTRIBUTION 8,575 16,242 1,332 3,956 2,762 647 15,861 1,050 (282m) 467 2,549 (180m) COVID-19 still weighs on collected 14,079 2,867 premiums and benefit contr
Slide 11: Assets Under Management
ASSETS UNDER AUM < (Nis B) 13+ (6%+) MANAGEMENT 18- (8%+) 36+ (20%+) 214 208 8 - 195 10 28 10 178 22 +1m AUM recovery during Q2 10 16 21 17 +3m despite COVID-19 23 14 31 +3m 31 12 AUM 28 • Company posts slights 24 34 decrease over H1 31 32 +1m • Company posts recovery 30 during Q2, mainly driven by
Slide 12: P&C Results
P&C COMPREHENSIVE INCOME DRIVERS < (Pre-tax, Nis m) -367 (-84%) 434 +35 +3 -24 -43 -29 -195 Q2 Investments performance +11 recovery and underwriting Covid-191 (18) (90) (10) (118) profit stability -154 67 COVID-19 IMPACT Investment Other* H1/19 Underwriting profit2 Interest H1/20 • Average premium p
Slide 13: Health
HEALTH COMPREHENSIVE INCOME DRIVERS < (Pre-tax, Nis m) 139+ (160%+) 226 11 46 Underwriting results 90 31- 23 improvement despite 87 COVID-19 impact Covid-191 8 (311) 8 (295) Comprehensive Underwriting LAT Investment Other CSM Comprehensive Income H1/19 Profit Income H1/20 COVID-19 IMPACT Δ H1/19 - H
Slide 14: LTS
LTS COMPREHENSIVE INCOME DRIVERS < (Pre-tax, Nis m) 159- (-160%) 99 Covid-191 (178) (6) (184) 138- Financial market turmoil and deficit in variable management fees drive losses 7- 14- -60 H1/19 Life Provident Pension H1/20 Variable MF Deficit COVID-19 IMPACT Δ H1/19 - H1/20 Results • Variable manage
Slide 15: Corporate
CORPORATE COMPREHENSIVE INCOME DRIVERS < (Pre-tax, Nis m) 309- (-193%) 160 (CO) Covid-191 7- (124) (124) 291- 29 40- -149 H1/19 Subsidiaries Investments Financial Expenses Other H1/20 Q2 significant recovery led by investments and lower Δ H1/19 - H1/20 financing expenses Results H1-20 9 (75) (59) (2
Slide 16: Main Market Indices
MAIN MARKET Main Market Indices CPI / FX Stocks Bonds INDICES (Local) (Global) (Local) 20.0%+ 19.5%+ (Q2/19, Q2/20, H1/19, H1/20) 17.8%+ 17.4%+ 17.4%+ 14.0%+ 11.4%+ • Local CPI decrease 9.2%+ compared to H1/2019 7.4%+ 6.5%+ 6.0%+ • Significant recovery in global 5.9%+ 4.7%+ 4.2%+ 4.0%+ 3.8%+ stock m
Slide 17: Market vs. Phoenix Yields
MARKET NOSTRO OPM VS. PHOENIX 1.1.20 – 30.06.20 MF Deficit 31.03.20 – (517) 30.06.20 – (296) YIELDS 24.08.20 – (86) (Q2/19, Q2/20, H1/19, H1/20) 10.8%+ 7.2%+ 7.2%+ 7.1%+ 5.9%+ 5.5%+ 5.2%+ 4.6%+ 4.8%+ 4.0%+ 4.2%+ 4.0%+ 2.6%+ 2.3%+ 2.4%+ 2.3%+ 2.4%+ 1.6%+ 1.9%+ 1.9%+ 2.1%+ 0.9%+ 0.9%+ Q2/20 financial
Slide 18: The Phoenix Way for Business Growth
THE PHOENIX WAY FOR BUSINESS GROWTH Capitalizing Reliable, Leveraging Innovation on group persistent, Leading Distribution development synergies investment division and integration of new channels - direct and agents technologies 18
Slide 19: Capitalizing on Group Synergies
The Phoenix way for business growth CAPITALIZING ON GROUP SYNERGIES 13% 15% 16% 20% 8% 13% Insurance Diversification of 10% profit sources 8y avg (Pre-tax) 11% 40% 54% P&C CO Agencies AM LTS Health 19
Slide 20: Reliable, Persistent Leading Investment Division
The Phoenix way for business growth INSURANCE 31 RELIABLE, • Employees:70 68 • AUM: 159 bn Specialize in Long Term Services and Nostro Insurance asset management in multiple asset classes, PERSISTENT such as: local and global marketable assets, 30.6.20 non marketable debt, Real Estate and 32 alterna
Slide 21: Reliable, Persistent Leading Investment Division
The Phoenix way for business growth Experience Innovation Consistency RELIABLE, Long Term Vision Risk Management PERSISTENT Flexibility Performance LEADING Adaptive INVESTMENT excellence Responsibility Agility Team Work DIVISION Professionalism Market Leader Strategic 21
Slide 22: Phoenix Investments
The Phoenix way for business growth RELIABLE, PERSISTENT LEADING INVESTMENT DIVISION Phoenix Investments 22
Slide 23: Building the Phoenix Technology
The Phoenix way for business growth BUILDING Next Generation Insight Technologies: THE PHOENIX Costumer engagement Data PHOENIX TECHNOLOGY Advanced analytics INSURANCE Operational excellence ACCELERATOR Insight Future Impact Digital Customer Journeys EDGE Technology Risk management Personalization I
Slide 24: Leveraging Distribution Channels: Direct & Agents
The Phoenix way for business growth LEVERAGING DISTRIBUTION Upgraded, better, more Profitable CHANNELS: efficient service for agents Sales Growth DIRECT Advanced Technology: Encouraging independent, • Technological infrastructure & AGENTS new world of activity tracking for agents strengthening • Dat
Slide 25: Appendix
APPENDIX
Slide 26: Appendix A: Non-GAAP COVID-19 Economic Impact
Appendix A NON GAP: Financial Statements < (Pre-tax) COVID 19 NIS m INVESTMENT1 INTEREST2 UNDER WRITING IMPACT3 TOTAL IMPACT ECONOMIC IMPACT (PRE TAX)4 TOTAL IMPACT (PRE TAX) TAX TOTAL COVID-19 IMPACT ECONOMIC (POST TAX) P&C (53) (10) (18) (81) (37) (118) 40 (78) IMPACT Heatlh 38 (311) 8 (265) (30)
Slide 27: Appendix B: Phoenix Holding Balance Sheet
Appendix B PHOENIX Assets 30/06/2020 31/12/2019 Liabilities 30/06/2020 31/12/2019 Total assets for yield- 68,125 71,662 Liabilities in respect of yield- 67,831 71,091 HOLDING dependent contracts in dependent insurance consolidated insurance contracts and investments company contracts Other Financial
Slide 28: Glossary
GLOSSARY AM Asset Management; i.e. Excellence Nessuah AUM Assets Under Management; the total market value of all the investments that are managed by the Group Bps Basis Points; 1 basis points is .01% CGU Cost Generating Unit CI Comprehensive Income CLR Combined Loss Ratio CO Corporate, Other and Con
Slide 29: Glossary
GLOSSARY MF Management Fees; wages charged by a financial manager Moody’s A credit risk rating agency Morgan Stanley Capital International Emerging Markets Index; measures the performance in equity markets, specifically in global MSCI emerging markets Mutual Fund Open end, non-tradable basket of sec
Slide 30: Disclaimer
This presentation may include information that is presented differently from the way it was H1 2020 presented in the company's official reports, some information may be presented and/or categorized and/or edited and/or segmented differently from the company's official past DISCLAIMER reports. Moreov
Slide 31: Thank You
THANK YOU Financial Statements Investors Presentation