A total profit of NIS 213 million for “direct insurance” in 2020

The insurance company in direct marketing, IDI Insurance, which is known to the general public as “Direct Insurance“, Summed up 2020 with a total profit of NIS 213.3 million, which is an increase of 1.2% compared to 2019, when the profit in the fourth quarter of the past year grew at a much sharper rate of 64% to NIS 74.1 million.

In a company managed by Kobe the Wild The increase in total profit during the reporting period is due to an improvement in the underwriting profitability in life insurance and most branches of general insurance, offset by a decrease in profitability in health insurance, and a decrease in investment income due to sharp declines in the capital market in the first quarter of the year. This year. ” The company further states that “the increase in total profit in the fourth quarter is due to an improvement in underwriting profitability in life insurance and in all branches of general insurance, offsetting a decrease in underwriting profitability in health insurance and investment income,” defining annual profit as “record profit” for the company. The insurance industry.

We emphasize that the two most important areas in the company’s results are property car insurance (comprehensive insurance and third parties), which generated a total profit before annual tax of NIS 115 million, and compulsory car insurance. In relation to the latter, it should be noted that the total profit before tax in this area in 2020 amounted to NIS 49 million, compared with less than NIS 16 million in 2019.

The company specifies in relation to the field of car insurance, it is mandatory that “the increase in total profit is due to the effect of interest, including the effect of updating the liquidity premium rate, considering the way assets against these liabilities are valued at NIS 42 million The company has pool losses of NIS 6 million compared to NIS 30 million in 2019, and a decrease in the insurance liability due to the effect of the index of NIS 6 million compared to an increase in the insurance liability of NIS 3 million in 2019 (an increase in liabilities reduces profit). And the reduction in liabilities contributes to profit, R.S.) “.

Either way, the premiums recorded by the group-controlled insurance company Create dill Of the Schneidman family in its main core business in the fields of general insurance – property and liability insurance (and in particular car and apartment insurance) – have decreased by about 8% in the past year. The premiums charged by the company in health insurance also decreased in the past year, by about 1%, while in life insurance the premiums charged by the company increased by about 4%.

In total, the premiums collected by the company decreased by 6% in the past year, with the company specifying that “the change in gross premiums is mainly due to the company’s initiated actions to improve the customer portfolio, mainly in the automotive and housing industries The private sector and the provision of discounts, in general – and in the automotive industries in particular, due to the corona plague. “

The company’s share responded to reports with gains of about 5%, while earlier today the stock even climbed for a short time by 7.6%. This is after the stock climbed about 19% since the beginning of the month. According to the CEO of the bar, “We are concluding the year 2020 with a high profit, and continue to show an improvement in the underwriting profit, despite the challenges in the business environment and the effects of the corona.” He added that ” And the expansion of activity in the life, health and property industries, are proving themselves in the profit line, ”also noting the company’s efforts to develop in terms of innovation and technology.

Like other financial entities, IDI has also undergone an streamlining process. At the end of 2020, the company had 1,462 employees who filled approximately 1,351 jobs, compared with 1,537 employees who filled 1,430 jobs at the end of 2019. Efficiency of approximately 5.5% in the workforce in terms of jobs.

Recall that in early January this year, the company completed the sale of its pension life insurance portfolio to Menora Mivtachim (for an insignificant amount for its results), when this year it launched a new and “digital” insurance brand – turning the 9 million brand into a 9 brand.