This article first appeared on GuruFocus .
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Total Comprehensive Income (2025):ILS3.2 billion.
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Q4 Comprehensive Income:ILS887 million.
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Earnings Per Share (2025):ILS12.6.
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Return on Equity (2025):27%.
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Q4 Earnings Per Share:ILS3.5.
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Q4 Return on Equity:29%.
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Comprehensive Income Growth (2025):34% year-over-year.
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Core Income Growth (2025):16% year-over-year.
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Asset Management Growth (2025):43% year-over-year.
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Core Income (2025):Over ILS2.6 billion.
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Asset Management Core Income (2025):ILS900 million, 42% growth year-over-year.
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Insurance Core Income (2025):Over ILS1.7 billion, 6% growth year-over-year.
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Investment Performance (2025):Additional ILS500 million.
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Nominal Returns on Corporate Account (2025):8.5%.
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Dividend for Q4 2025:ILS360 million.
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Total Payout from 2025 Earnings:ILS1.6 billion, 51% of comprehensive income.
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Assets Under Management (End of 2025):ILS610 billion (~$200 billion).
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EBITDA Growth:30% annually, aiming for ILS2.4 billion to ILS2.6 billion by 2028.
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P&C Income Before Tax (2025):ILS927 million.
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Health Segment Pretax Income (2025):ILS924 million.
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Life Segment Income Before Tax (2025):ILS413 million.
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Wealth & Investments Segment Contribution (2025):ILS384 million.
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Retirement Business Pretax Contribution (2025):ILS166 million.
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Brokers & Advisors Segment Income Before Tax (2025):ILS429 million.
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Payment and Finance Segments Income Before Tax (2025):ILS180 million.
Release Date: March 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Phoenix Financial Ltd ( XTAE:PHOE ) reported a record comprehensive income of ILS3.2 billion for 2025, with a strong return on equity of 27%.
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The company achieved a 34% growth in comprehensive income and a 16% growth in core income, surpassing its guidance of 10% annual growth.
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Phoenix's asset management segment experienced a significant 43% year-over-year growth, contributing to the company's shift towards high multiple capital-light businesses.
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The company is committed to distributing quarterly dividends, with a payout of 51% of income in 2025 and plans to increase this to at least 55% in 2026.
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Phoenix is actively implementing AI across its businesses and aims to be a leader in AI within Israeli financial services, enhancing capabilities in underwriting, claims management, and cross-sales.
Negative Points
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Core insurance income declined in Q4 2025 due to model updates and reserve adjustments in the P&C segment.
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The ongoing war with Iran poses a potential risk, although Phoenix maintains business continuity and resilience.
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There is uncertainty regarding the impact of AI disruption on traditional markets, which could affect Phoenix's operations.
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The company has limited exposure to international private credit, which could restrict potential growth opportunities in this area.
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Phoenix's growth strategy relies heavily on M&A activities, which may not always yield the expected synergies or capabilities.
Q & A Highlights
Q: Phoenix reports record performance and strong growth year-over-year. Is your growth rate sustainable, and does it relate to market growth or market share growth? A: Eyal Ben Simon, CEO: We believe we can grow more than the 10% guidance, which is based on conservative organic assumptions. The market is growing, and there is a significant opportunity for disruption. We are also growing dividends, historically providing a 5% yield. Additional upside is expected from integrated financial services, AI capabilities, and M&A activities like BUYME and Fidelis.
Q: You indicate that Phoenix is aiming to disrupt the Israeli financial sector. What do you mean by that? A: Eyal Ben Simon, CEO: Israeli financial services are behind the US but are catching up. There is a significant opportunity due to digitization, which is changing the game compared to traditional branches. We aim to deliver easy digital services from smart platforms, offering products like digital private credit and global investments wrapped in investment policies.
Q: How do you see the ongoing war with Iran affecting your business? A: Eyal Ben Simon, CEO: We don't see significant impact. We maintain full business continuity and have broad resilience and diversification to limit risk. Positive performance in capital markets supports group performance, and we are regularly monitoring the situation.
Q: Global capital markets highlight concerns from AI disruption. How do you see the situation in Israel, and what is the potential impact on Phoenix? A: Eyal Ben Simon, CEO: Israel is more protected due to its smaller economy and local nuances. AI presents a big opportunity for Phoenix as we have the scale, capabilities, and data platforms to lead AI in financial services in Israel. We are already seeing results in areas like underwriting and claims.
Q: You mentioned potential upside back in November when you published guidance. What is the likelihood of upside, and do you intend to update the guidance? A: Eyal Ben Simon, CEO: We see the next wave of value creation from integrated financial services and innovative products. It is too early to fully quantify, but we will update our plans periodically and revisit our guidance as appropriate.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
