POLICY - May 2019

POL I CY The Israeli Insurance , Pension&FinanceNewspaper 17 Tel Aviv Re 2019 a result of competition and also the entry of the digital companies. The other sectors saw a drop in earnings mainly as a result of capital market performance – especially in the fourth quarter. The other property and others sector is affected by other factors, such as weather damages and water damages in apartments, but the sector remains stable in terms of earnings. The sectors which are influenced by the capital market experienced a drop in earnings in the fourth quarter, with the compulsory sector moving from profit in the third quarter to a loss in the fourth quarter. There is nothing new under the sun in the liabilities sector and the sector cannot be in balance (and certainly not make a profit) when the capital market is not at its best. The digital companies ( Libra and Wesure ) started operating in the fourth quarter of 2018, and we have thus not related to them in the current review. There is no doubt that these companies will have an impact on the performance and profitability of the elementary sector in 2019. Elementary sector results by sector 2018 compared with 2017 (million shekels) Elementary sector results by sector at 2017 (million shekels) Sector Gross premiums Investment profits Earnings net of investment profits Total comprehensive income (loss) Increase in production compared with 2017 % change in production compared with 2017 Increase in earnings compared with 2017 % change in earnings compared with 2017 Motor property 8,789 106 814 920 525 6.30% 300 48.42% Compulsory motor 5,273 265 -335 -70 191 3.70% -262 From profit to loss Other property and others 5,007 53 367 420 80 1.60% -123 -22.70% Liabilities and others 3,284 210 -470 -259 159 5.10% -235 From profit to loss Total 22,353 634 377 1,011 955 4.40% -320 -24% Sector Gross premiums Investment profits Earnings net of investment profits Total comprehensive income (loss) Motor property 8,263 215 405 620 Compulsory motor 5,082 659 -466 193 Other property and others 4,927 91 452 544 Liabilities and others 3,125 447 -472 -24 Total 21,398 1,412 -80 1,332 Jonathan Marcus Translations Hebrew-English-Hebrew translation of Insurance and financial documents Insurance policies ▪ Appraisals and loss adjusters reports Proposalss ▪ Financial statements 25 years of professional experience in the insurance sector Phone: 972-54-4757622 ▪ Fax: 972-2-5616099 ▪ E-mail: jmtargum@gmail.com