IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) today reported 48% growth in its net profit attributable to majority shareholders to NIS 43 million for the first quarter of 2012, from NIS 29 million for the corresponding quarter of 2011. The company partly attributed the results to gains in the capital market during the first quarter.
Comprehensive pre-tax profit (profit plus the valuation of assets available for sale, which is attributed to the capital fund) from long-term savings fell to NIS 43 million for the first quarter from NIS 65 million for the corresponding quarter, and total pre-tax profit fell to NIS 21.5 million from NIS 76 million.
Pre-tax profit on provident fund and pension operations rose to NIS 36 million for the first quarter from NIS 31 million for the corresponding quarter, but the pre-tax loss on life insurance operations was NIS 14 million, compared with a pre-tax profit of NIS 45 million.
The comprehensive pre-tax profit from elementary insurance operations rose to NIS 74 million for the first quarter from NIS 400,000 for the corresponding quarter.
The pre-tax profit from financial services was NIS 2 million for the first quarter compared with a pre-tax loss of NIS 6 million for the corresponding quarter.
Clal Insurance CEO Shy Talmon said, "In this quarter, too, we experienced a major lack of clarity in the global economic environment, which had a direct effect on developments in Israel. Under these circumstances, Clal Insurance had to continue to emphasize growth in current oprations, streamlining in all areas of business, and ensuring that it had the mandated capital surpluses."
Clal Insurance's share price rose 1.2% in morning trading to NIS 52.79, giving a market cap of NIS 2.9 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2012
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