Moody’s Assigns Phoenix Insurance A2 Rating with a Stable Outlook: Cites Strong Market Position and Capital Adequacy with High Profitability and Liquidity
Phoenix Insurance, the Insurance Arm of Phoenix Holdings, is First Multi-line Israeli Carrier to Receive International Rating
TEL AVIV, Israel–(BUSINESS WIRE)–Phoenix Holdings Ltd., a leading Israel-based financial, insurance, and investment group (TASE: PHOE) (“The Phoenix”, the “Group”, or the “Company”), today announced that Moody’s has assigned an A2 insurance financial strength rating (IFSR) and a stable outlook to Phoenix Insurance, the principal insurance operating subsidiary of Phoenix Holdings.
Moody’s rating for Phoenix Insurance is similar to the rating assigned to Israeli banks, reflecting the status of the Phoenix as one of Israel’s leading financial institutions.
According to Moody’s, the rating of the Phoenix is based on market leadership, broad and diverse insurance activities, a high capital adequacy ratio, strong liquidity and profitability, and the support of growing markets and strong new business opportunities.
Moody’s notes that the Phoenix group has relatively limited capital market exposure and diverse sources of earnings and cashflow beyond its insurance business, including growing asset management, credit, and distribution activities. These additional businesses provide an important potential source liquidity and funding for the group.
Moreover, the ratings agency notes that Phoenix Insurance has a Solvency II capital ratio of 202% with transitional provisions as of June 30, 2022, and 137% without transitionals, the highest among the large insurance groups in Israel.
In conclusion, Moody’s highlights that Phoenix Insurance has demonstrated a strong track-record of access to capital which supports it financial flexibility.
The rating and outlook assigned to Phoenix Insurance indicate potential for raising capital in international markets in addition to continued growth in Phoenix Holdings’ international shareholder base.
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