POL I CY The Israeli Insurance, Pension & Finance Newspaper 19 Special edition 2022 to 4.182 billion shekels). Profits likewise were significantly higher (in a sector where profitability is problematic in most years) and reached record 502.7 million shekels (2020: 331.8 million shekels) – a 49.7% increase and an all-time record. Make no mistake, the main source of earnings remains the professional liability and product liability policies, the other sectors remaining as problematic as ever. There are still no data on the split of earnings between the various sub-sectors, but figures for the third quarter show that both employers liability and third party failed to post any earnings. It is possible that there was a change in the fourth quarter due to the impact of the illiquidity premium, which moderated the negative effect of the lower risk free interest. The unusual investment profits (1.11 billion shekels, up 785 million shekels on 2020) far outweighed the negative effects of the higher cost of living index, and even the development of claims (there is variation between the companies in the reporting of development of claims). The sector is backed by reinsurance to the tune of 43.7% (more than compulsory motor), mainly in professional and product liability. The unusual investment profits clearly contributed to the year’s extraordinary earnings in the sector, which is still a long way off finding a solution for the underwriting problems in the employers liability and third party sub-sectors. Harel topped the production rankings (1.001 billion shekels) and the Phoenix came in number 1 in the earnings rankings (188 million shekels). Conclusion 2021, which was the year of a return to normal after the Corona crisis, which hit in 2020, was less good than the previous year, with earnings down 31.7% (from 1.99 billion shekels to 1.36 billion shekels). Unusual investment profits (2.9 billion shekels) succeeded in moderating the underwriting problems in the motor sectors (mainly motor property, but also compulsory motor), as well as the influence of the risk free interest, which was offset somewhat by the addition of the illiquidity premium. On the other hand we can see that the other property and others sectors remains stable in its contribution to profitability and the fact that it succeeded this year in topping the earnings rankings is not just a matter of chance. The underwriting losses in the motor sectors will almost certainly affect 2022, which could be worse than its predecessor regarding the underwriting results in the motor sector. There is no doubt that the decline in motor property earnings, which peaked in 2017, influences and continues to influence the elementary results. Direct Insurance’s motor property earnings indicate that the direct insurers react faster to crises in the motor property sector. Company Gross premiums Investment profits Earnings net of investment profits Comprehensive income Harel 3,329 170 120 290 Menorah Holdings 3,242 79 388 466 Phoenix 2,875 253 272 524 Clal Insurance 2,477 36 -1 35 Ayalon 2,237 101 18 120 Migdal 1,963 121 -47 75 Direct Insurance 1,801 37 162 199 Shlomo 1,417 17 86 103 Hachshara 1,153 27 -38 -11 AIG 830 -7 94 87 Shirbit 466 8 61 69 Bituach Haklai 449 5 17 23 Wesure 238 2 6 8 Libra 179 0.2 5 6 Total 22,655 850 1,145 1,995 Insurance companies general insurance results 2020 (million shekels)
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