Israel's Migdal Insurance moves to Q3 profit as markets bounce

JERUSALEM Sun Nov 11, 2012 7:46am EST

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JERUSALEM Nov 11 (Reuters) - Israel's Migdal Insurance and Financial Holdings swung to a quarterly net profit, boosted by a rebound in the country's capital markets.

Migdal, one of Israel's largest insurance groups, posted a third-quarter profit of 180 million shekels ($46 million), compared with a loss of 113 million shekels a year earlier.

Its profit was partly offset by a 116 million shekel provision for higher life expectancies for Israelis, it said on Sunday. Life insurance companies have been ordered by the country's insurance regulator to set aside additional funds to cover increased pension payments as Israelis live longer.

Migdal has 154 billion shekels under management.

Gains from investments and financing income totalled 3.0 billion shekels in the July-September period versus a 1.85 billion shekel loss a year earlier. Income from management fees rose to 244 million shekels from 221 million.

Insurance premiums rose to 2.4 billion shekels from 2.2 billion.

Last month Israeli businessman bought a 69.1 percent stake in Migdal from Generali, Europe's No. 3 insurer, for 705 million euros.

($1 = 3.90 shekels) (Reporting by Steven Scheer)

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