Phoenix Financial Ltd · TASE:PHOE
Phoenix Financial — The Phoenix Holdings — Q3 2020 Earnings Presentation
24 slides from Phoenix Financial's earnings presentation, November 2020
Slide 1: Looking Ahead - Q3/2020 Financial Statements Investors Presentation
THE PHOENIX HOLDINGS Looking Ahead Q3 / 2020 Financial Statements Investors Presentation 1
Slide 2: From the CEO's Desk
From the CEO’s Desk The company's results in the last quarter demonstrate once again the group's ability to maintain financial strength and stability even during the Covid-19 pandemic. We continued to drive accelerated growth, focusing on activities that generate higher profitability and returns ove
Slide 3: The Phoenix Path to Business Growth
THE PHOENIX PATH TO BUSINESS GROWTH Yield-focused Technological Innovation and Maximizing Profits Wealth growth Efficiency Management 3
Slide 4: Strength
71 222Bn (*) NIS 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 (*) As of 31/10/2020
Slide 5: Executive Summary 1-9/2020
Executive Summary 1-9/2020 Resilient performance led by continuous improvement of AUM AUM NIS 218Bn as of September 30, 2020 NIS 222Bn as of October 31, 2020 5.1Bn 1 Market cap exceeds pre-Covid-19 levels despite the Market cap NIS P/B 0.72 ongoing crisis Shareholder's Equity, as of 30.09.2020, tota
Slide 6: Phoenix Holdings Comprehensive Income Drivers
COMPREHENSIVE INCOME DRIVERS > (Pre-tax, Nis m) PHOENIX P&C Health LTS AM Agencies CO -189 1 (-28%) HOLDINGS Covid-19 (40) (267) (89) (3) (104) 170 (333) 77 (8) (4) 683 (264) 317 (442) 494 (8) 1-9/20 Vs 1-9/19 (NIS m) 143 Q3/20 Vs Q3/19 (NIS m) 1-9/19 P&C Health LTS AM Agencies CO Tax Miniority 1-9/
Slide 7: Profit before tax Composition
Profit before tax P&C Health LTS AM Agencies CO 728 (24) 122 345 Composition 121 1-9/2020 211 195 239 Significant capital market impact on Q3 76 (61) results pushes profit higher 38 31 64 (27) 99 (117) Capital markets and interest (75) influence in 9M/20 totaled NIS Investments Interest Insurance AM
Slide 8: Premiums & Benefit Contribution
PREMIUMS, PREMIUMS & BENEFIT CONTRIBUTION > (Nis m) P&C Health LTS AM Agencies CO BENEFIT +1,885 (+12%) -270 (-6%) -557 CONTRIBUTION +1,782 +381 18,127 4,446 (-6%) (+13%) (+2%) 4,176 13,577 16,242 2,762 Provident 633 12,751 15,861 Decrease in premiums and benefit 505 1,965 1,554 contributions, upwar
Slide 9: Assets Under Management
ASSETS UNDER P&C Health LTS AM Agencies CO AUM > (Nis B) +13 +36 (+11%) -18 (+20%) MANAGEMENT (-8%) 218 214 8 10 195 24 28 10 178 10 21 19 16 AUM exceeded pre-COVID-19 levels and maintained the upward trend post Balance 23 14 Sheet date 31 33 12 28 24 34 33 Stable AUM despite Covid-19 31 ETF stabili
Slide 10: P&C Comprehensive Income Drivers
P&C P&C Health LTS AM Agencies CO COMPREHENSIVE INCOME DRIVERS > (Pre-tax, Nis m) Compulsory motor -264 Motor property (-50%) Property and others 524 41 (28) Liability (41) (28) (180) Lower comprehensive income 19 resulted mainly from decrease in (75) 260 investments profit 1 Covid-19 (15) (27) 2 (4
Slide 11: Health Comprehensive Income Drivers
COMPREHENSIVE INCOME DRIVERS > (Pre-tax, Nis m) HEALTH P&C Health LTS AM Agencies CO 317+ (1,192%) (48) 290 282 1 Covid-19 2 (300) 31 (267) Increase in comprehensive income driven by LAT reserve 83 changes (27) 1-9/2019 Underwriting Profit2 LAT Investments 1-9/2020 1 COVID-19 IMPACT NIS (267m) Resul
Slide 12: LTS Comprehensive Income Drivers
COMPREHENSIVE INCOME DRIVERS > (Pre-tax, Nis m) LTS P&C Health LTS AM Agencies CO 77+ (13,074%) (12) (18) 76 Strong performance in Life LOB 107 offset by decrease in Pension 1 (84) (5) (89) and Provident Covid-19 COVID-19 IMPACT 1 NIS (89m) -1 1-9/19 Life Provident Pension 1-9/20 Results Variable ma
Slide 13: Life Comprehensive Income Drivers
107+ LIFE P&C Health LTS AM Agencies CO (243%) 63 (44) 190 1 (183) Strong performance in Life Covid-19 (92) (90) (83) 181 (84) LOB offset 255 Variable MF (155) Deficit COVID-19 IMPACT 1 NIS (84m) 1-9/19 Underwriting Investmnets Interest K Factor 1-9/20 31.03.20 – (517) Profit 1-9/20 (79) 139 63 Resu
Slide 14: Provident & Pension
COMPREHENSIVE INCOME DRIVERS > (Pre-tax, Nis m) Provident P&C Health LTS AM Agencies CO 29- (69%-) 42 & Pension (10) (12) (7) 13 1 COVID-19 IMPACT NIS (5m) 1-9/19 Underwriting Profit Investment income Gmula 1-9/20 Results 1-9/20 18 (2) (3) 13 1-9/19 28 10 4 42 RESULTS 7- Increase in management and (
Slide 15: Corporate
P&C Health LTS AM Agencies CO CORPORATE COMPREHENSIVE INCOME DRIVERS > (Pre-tax, Nis m) -442 (147%-) 301 (CO) Covid-19 1 (12) (104) (104) (406) Lower profit driven by (5) (19) investments performance (141) due to Covid-19 1-9/19 Subsidiaries Investments Financial Expenses Other 1-9/20 Results 1-9/20
Slide 16: Main Market Indices
MAIN MARKET P&C Health LTS AM Agencies CO Main Market Indices INDICES CPI / FX Stocks 18.7% Bonds (Q3/19, Q3/20, 1-9/19, 1-9/20) 15.0% 14.3% 15.4% 15.5% 10.4% 9.4% 8.5% 7.7% 7.6% 7.6% 7.4% 4.1% 4.3% 3.2% 2.7% 2.7% 1.1% 1.5% 1.2% 1.2% 1.4% 0.1% 0.5% (0.7%) (0.6%) (0.4%) (0.5%) 0.0% (1.1%) (1.0%) (2.4
Slide 17: Market vs. Phoenix Yields
MARKET P&C Health LTS AM Agencies CO NOSTRO OPM VS. PHOENIX 1.1.20 – 11.11.20 MF Deficit 31.03.20 – (517) 30.06.20 – (296) YIELDS 30.09.20 – (101) 12.5% 4 11.11.20 – 0 8.8% (Q3/19, Q3/20, 1-9/19, 1-9/20) 8.2% 6.8% 5.6% 5.0% 5.0% 4.6% 4.4% 4.2% 2.4% 2.4% 2.6% 1.5% 1.5% 2.0% 1.5% 1.6% Q3/20 financial
Slide 18: Appendix
APPENDIX
Slide 19: Appendix A: Non-GAAP Covid-19 Economic Impact
Appendix A NIS (333) NON GAP: COVID-19 Impact COVID 19 ECONOMIC IMPACT Financial Reports (Pre Tax)1 Economic Total COVID- (1) (2) Underwriting Total Impact NIS m Investment Interest Total Impact impact (Pre Tax 19 impact impcat (3) (4) (Pre Tax) Tax) (Post Tax) COVID-19 Non GAAP impact P&C 47 2 (15)
Slide 20: Appendix B: Phoenix Holding Balance Sheet
Appendix B PHOENIX Assets 30/09/2020 31/12/2019 Liabilites 30/09/2020 31/12/2019 Liabilities in respect of yield- HOLDING Total asssets for yield-dependent dependent insurance contracts in consolidated insurance 71,617 71,662 71,099 71,091 contracts and investments company contracts Balance Sheet As
Slide 21: 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 22: 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 23: Disclaimer
This presentation may include information that is presented differently from the way it was Q3 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 24: Thank You
THANK YOU Financial Statements Investors Presentation