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Clal Insurance Enterprises Holdings Ltd.

Clal Insurance Enterprises Holdings Ltd. | TASE | Insurance, Asset Management & Credit

Data as of: April 2026 | Primary source: 2025 Annual Report + Investor Presentation

CLIS
Research Depth · Standard Insurance · Asset Manager · Credit
AUM 2025
420B ILS
+12.6% Y/Y | 5Y CAGR ~12%
Comprehensive Income FY2025
2,266M ILS
+47% Y/Y (1,540M in 2024)
ROE FY2025
27.2%
2024: 21.1% | 2027 target: 12-15%
Shareholders' Equity
10,827M ILS
+49% since 2023
Solvency II
161-163%
Dividend floor 115% | Target 150%
CSM (net of reinsurance)
10.3B ILS
+1.5B since 2023 — earnings bank
Market Cap
₪23.4B
Stockanalysis · May 2026
P/E (TTM)
10.56
Forward P/E 10.59
P/B
2.15
Book ₪135.26 · ROE 23.16%
EV/EBITDA
5.17
EV ₪32.5B · TTM
1 Company Profile

Clal Insurance Enterprises Holdings Ltd. is one of Israel's longest-established financial holding companies (incorporated 1987, IPO 1988). The company trades on the TA-35 index (security 224014) and consolidates Clal Insurance Company (100%), Clal Pension and Provident (100%), Clal Credit Insurance (80%, with Atradius holding the remaining 20%), and Max IT Finance (100%). Group AUM stood at NIS 420 billion at year-end 2025, with 3.5 million customers and 3,610 employees. A structurally distinctive feature in the industry — Clal has had no controlling shareholder since December 2019. The largest holder is the Akirov family (through Alrov Properties & Lodgings), with 14.34% — close to the 15% regulatory ceiling approved by the Capital Markets Commissioner on 1 July 2021. Unlike Harel (Hamburger family at 45.7%), The Phoenix (Centerbridge), and Migdal and Menora (each with concentrated ownership) — Clal has no formal controlling shareholder; an independent board (8 directors, 2 external) is the de facto strategic decision-maker. Chairman: Haim Samet. CEO of the company and of Clal Insurance: Yoram Naveh. Deputy CEO and Head of the Financial Division: Eran Tsernicki. The group is audited by two firms in parallel — KPMG (Somekh Chaikin) and EY (Kost Forer Gabbay & Kasierer) — a dual audit structure used by a small number of public companies in Israel.

SegmentStrategic RoleFY2025 Core Pre-tax Profit
General Insurance (P&C)Largest contributor to Core profit (27%)NIS 614M
Max — Credit CardsBank-like asset (24%)NIS 455M
Life Insurance + Long-term SavingsPension and savings flows (20%)NIS 542M
Health InsuranceDemographic growth (19%)NIS 430M
Agencies and otherOperational (11%)NIS 248M

Source: 2025 Annual Report (P1731052-00), December 2025 Investor Presentation

2 Key Financial Observations

This summary is not a recommendation. It is a factual list of metrics reported by the company.

Profitability 2024 → 2025

Metric20242025
Net income (NIS M)1,5402,278
Comprehensive income (NIS M)1,5402,266
Comprehensive ROE21.1%27.2%
Basic EPS (NIS)19.4728.56
Premiums + receipts (NIS B)26.727.6

Capital Strength + Balance Sheet

MetricValue
Total assetsNIS 188,358M
Shareholders' equityNIS 10,827M (+49% from 2023)
Investment portfolioNIS 149,869M
CSM (net)NIS 10.3B (8.8 in 2023)
Solvency II161-163%
Rating Holdco / SubilAA / ilAA+

Methodological note: the 2025 financial statements are the company's first under dual IFRS-17 + IFRS-9 (transition date 1 January 2024). 2024 figures have been restated; comparison with 2020-2023 is complex. Classical metrics (Loss Ratio, Combined Ratio) are no longer presented in the legacy format — replaced by Insurance Service Result, CSM, and Risk Adjustment.

AUM Growth 2020-2025 (NIS B)
AUM Comparison 2025 (NIS B)
FY2025 Core Pre-tax Profit by Segment (NIS M)
Comprehensive ROE — Trend (%)
CSM Build (NIS B)
Annual Dividend (NIS M)
3 Industry & Competitive Context

Insurance & Financial Services — Israel. A concentrated market dominated by five groups — The Phoenix, Migdal, Harel, Clal Insurance, and Menora Mivtachim. The regulator is the Capital Markets, Insurance and Savings Authority, which oversees Solvency II capital requirements, solvency ratios, fee structures, and nostro investment rules. Two features distinguish Clal from peers: (1) it is the only one of the five with no controlling shareholder; (2) full ownership of Max IT Finance, a credit-card company with a NIS 13.3B credit portfolio — larger than The Phoenix's Gama portfolio (~NIS 12.5B).

CompanyAUM 2025 (NIS B)Structural Feature
The Phoenix~610PE ownership (Centerbridge), Gama credit
Migdal~583Pension heritage
Harel~582Hamburger family 45.7%, leader in health
Clal Insurance420No controlling shareholder + Max
Menora Mivtachim~309Pension-dominant

Macro context: real GDP growth of 4.7% expected per company management for 2026, unemployment 3.1%, mandatory pension contribution rate 20.8% of wages.

4 Risk Factors
RiskContext
Capital-markets volatilityTotal investment results of NIS 17,776M in 2025 — a material profit component. A negative market would reduce ROE materially.
Max credit qualityNIS 13.3B portfolio. A special provision in 2025 reduced reported Max profit from NIS 318M (normalised) to NIS 187M.
Triple regulationInsurance (Capital Markets Authority), credit (Max), pension/provident management fees — each domain can shift the profit mix.
No controlling shareholder — M&A targetThe company is exposed to a public tender offer; Akirov at 14.34% is close to the 15% ceiling — any further increase would require a new permit.
Board successionNo "anchor" controlling shareholder to stabilise long-term direction; board rotation could shift strategy.
IFRS-17 + IFRS-9 transitionFirst reports under the new framework. Classical loss/combined ratio metrics are not published. Historical comparison is complex.
Interest ratesAffect the bond portfolio, Solvency, life-insurance pricing, and Max's spreads — combined exposure.
Compulsory motorFrom a NIS 50M profit in 2024 to a NIS 20M loss in 2025 — an industry-wide deterioration.
5 Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" At Bakshi Finance, every analysis passes through six lenses.

This framework is intended to structure analysis, not to produce an investment conclusion.
Growth
AUM grew from NIS 237B in 2020 to NIS 420B in 2025 (CAGR ~12%). How much of the growth is organic contributions versus market returns? The 2027 management targets (ROE 12-15%, comprehensive income NIS 1.3-1.6B) were already exceeded in 2025 — what will the updated 2030 strategic plan look like?
Profitability
Comprehensive ROE of 27.2% in 2025 is nearly double the management target range of 12-15%. Core pre-tax profit grew "only" 12% (2,039 → 2,289) — that is the true structural pace. How much of the 27% ROE is structural and how much is cyclical? What does ROE look like in a negative-market year?
Leverage
Solvency at 161-163% is above the 115% dividend floor and above the company's 150% target, but below Harel (183% with transitional measures). The gap reflects in part Clal's exposure to Max — a credit company with separate capital requirements. How will Solvency evolve if rates rise?
Competitive Position
Clal Insurance does not lead in any specific segment (Harel leads in health, The Phoenix in net inflows). Its distinctive advantage is Max. The Max credit portfolio (NIS 13.3B) is larger than The Phoenix's Gama (~NIS 12.5B) — what is that worth in NAV? How should consumer-credit risk be neutralised when valuing an insurance group?
Management Quality
Haim Samet as Chairman, Yoram Naveh as CEO. 2025 performance significantly exceeded the 2027 plan. To what extent are these results management achievements versus a positive-market tailwind? How will management set new targets? What is distinctive about leadership in a company with no controlling shareholder — where capital-allocation logic differs from a family-owned or PE-owned peer?
Business Complexity / Risk
Five revenue streams: premiums (NIS 8,837M), management fees (NIS 850M), investment results (NIS 17,776M), credit and credit-card income (NIS 1,740M), agency commissions (NIS 190M). A dual audit structure (KPMG + EY). How should an investor value such a combination? Which segments contribute most to intrinsic value and which contribute risk?
6 Scenario Framework
Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes.
These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.
Constructive Scenario — if the following conditions hold:

Capital markets remain positive, AUM continues to grow at a 10-13% annual pace, Max sustains a normalised ROE of ~15% without exceptional provisions, Solvency stays above 160%, and management sets a new 2030 strategic plan with structural ROE targets above 15%. Under these conditions, shareholders' equity continues to expand, dividend policy stabilises in the 30-50% range of comprehensive income, and the M&A optic (whether as buyer or as target) becomes a strategic catalyst.

Base Scenario — if current trends continue:

Capital markets are stable with customary volatility, AUM grows 7-10% annually, comprehensive ROE normalises to 15-18% (a meaningful decline from 27.2%), Core profit continues to compound at a structural 8-12% pace. Dividend stabilises around 30-50% of comprehensive income. Capital allocation under a no-controlling-shareholder structure — the board considers a mix of dividends, acquisitions, and retained surplus capital.

Adverse Scenario — if the following risks materialise:

A capital-markets correction weighs on investment results (comprehensive ROE falls below 10%), recurring provisions at Max impair the 24% Core-profit contribution, new regulation on pension/provident management fees compresses recurring revenues, or a hostile takeover bid creates uncertainty. Under these conditions, the dividend may be suspended and shareholders' equity may decline.

Scenarios describe conditions, not forecasts. There is no preferred direction and no probability assessment expressed in this framework.
7 How to Think About This Company
Clal Insurance is, above all, a company without a controlling shareholder — a unique case in the Israeli insurance industry. That distinction is foundational to the analysis. Harel is controlled by the Hamburger family (45.7%), The Phoenix by Centerbridge (PE), Menora by the Gutman family, and Migdal was previously controlled by Shlomo Eliahu and others. Clal Insurance, in contrast, has had no formal controlling shareholder since December 2019. The independent board is the de facto strategic decision-maker. This affects decision-making dynamics (less "chain of command", more deliberation), capital-allocation policy (no bias toward PE-style "fast return" requirements or family-style conservatism), and M&A potential. The company is, simultaneously, a potential acquirer and a potential acquisition target — creating a distinctive optic.
Max IT Finance is a bank-like asset inside an insurance group — the most interesting angle in Clal. Max manages a NIS 13.3B credit portfolio — larger than The Phoenix's Gama (~NIS 12.5B). It maintains a 13.0% capital adequacy ratio and a 10.2% Tier 1 ratio — banking standards. Its ratings (AA+ at S&P Maalot, Aa1 at Midroog) are among the highest in Israeli non-bank financials. About NIS 455M of Clal's 2025 Core pre-tax profit (24%) comes from an asset that is not insurance at all. An investor who looks at "Clal Insurance" as a pure insurance company misses the story. The central question to monitor is: to what extent will Max sustain a normalised ROE of ~15% across a full consumer cycle, and how often will one-off provisions (like the 2025 charge) recur?
ROE of 27.2% — how much is structural and how much is cyclical? 27.2% is exceptional relative to the company's multi-year history and well above the 12-15% target management set for 2027. The drivers are twofold: (1) positive capital markets — total investment results of NIS 17,776M in 2025 versus NIS 13,630M in 2024, a 30% increase in the market-sensitive component; (2) operational improvement in insurance — Insurance Service Result of NIS 1,298M in 2025 versus NIS 1,067M in 2024 (+22%). The first is cyclical, the second is structural. Core pre-tax profit (which partially neutralises mark-to-market) grew "only" 12% — that is the true structural pace, not the headline 47%.
Capital allocation under no controlling shareholder — the mechanism differs from Harel or The Phoenix. In a family-owned company like Harel, capital allocation is shaped by an inter-generational horizon. In a PE-owned company like The Phoenix, it is shaped by the fund's exit horizon (5-7 years). At Clal — the board decides, and its decisions should reflect the broad public-shareholder interest. The dividend declared for 2025 = NIS 400M — double the NIS 200M for 2024 and four times the NIS 100M for 2023, an aggressive uplift. Open question: will the independent board redirect additional capital to shareholder returns (buybacks), or retain surplus capital for growth and M&A?
Shareholders' equity grew 49% in two years — and that is not incidental. From NIS 7,289M at year-end 2023 to NIS 10,827M at year-end 2025 (+49%), despite cumulative dividends of NIS 300M over the period. In parallel, net CSM rose from NIS 8.8B to NIS 10.3B — accumulation of NIS 1.5B over three years. CSM, under IFRS-17, represents future profit already recognised in an insurance contract but not yet released to the income statement; it is released gradually over the contract's life. This is an "earnings bank" of existing contracts that will be released to P&L in coming years — a positive structural signal on future earnings flow, even in a flat-market environment.
Dual adoption of IFRS-17 + IFRS-9 on 1 January 2025 — complicates comparisons. The 2025 financial statements are the first under the new framework. 2024 figures have been restated. Comparison to prior years (2020-2023) requires adjustments — and several classical metrics (loss ratio, combined ratio in legacy format) are no longer published. Instead, Insurance Service Result, CSM, and Risk Adjustment appear. For analysts tracking long-term history, any traditional "5-year trend" analysis is methodologically problematic — the base has changed. Comparisons to peers also require care, because each undertook the transition with potentially different assumptions.
What can go wrong — three angles. First: capital-markets cycle — 2025 inflates profit through investment results; a materially negative market in 2026 would compress ROE significantly. Second: credit quality at Max — the 2025 special provision reduced reported Max profit from NIS 318M (normalised) to NIS 187M (reported). If such provisions recur, the expected ~15% Max ROE would fail. Third: regulatory change — Clal has a triple exposure: insurance regulation, credit-card regulation, and pension/provident management-fee regulation. Any of the three arenas can reshape the profit mix.
Board succession risk — a topic unique to companies without a controlling shareholder. In a family-owned company, the risk is in inter-generational transition. In a company without a controlling shareholder, the risk is in board rotation — an independent director leaves, a new one joins, and strategy shifts. There is no "anchor" controlling shareholder to stabilise long-term direction. At Clal, Haim Samet as Chairman and Yoram Naveh as CEO are the stabilising figures — but they serve under an 8-member board (2 external), and board composition can change at any AGM. This warrants ongoing monitoring.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
8 Sources & Data
#SourceDateType
1Clal Holdings — 2025 Annual Report (P1731052-00)25 March 2026Official — TASE
2Clal Insurance — Investor Presentation (P1731220-00)December 2025 / February 2026Official — IR
3maya.tase.co.il — security 224014April 2026Official — Stock Exchange
4Capital Markets, Insurance and Savings AuthorityAnnualOfficial — Regulator
5S&P Maalot / Midroog — rating reports2025Official — Rating agencies
62023 Annual Report (P1582946-00)March 2024Official — for historical series

Missing: Dividend Yield (depends on current market price), breakdown of holders below 14.34%, classical Combined Ratio (not published under IFRS-17), product-level contribution detail.

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The analysis includes a professional review across 8 structured sections, 6 charts and a framework of scenarios.

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10

Analytical Lens — The Questions We Ask

In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" Every Bakshi Finance analysis passes through six lenses. The text below is not a judgement — it is a map of the questions this analysis is intended to answer.

The analysis is based on an internal multi-factor analytical framework used in professional portfolio management. The framework maps the questions; the answers appear woven through the analysis above.

What the lens is not: there is no rating, no score, no comparison between this company and another, and no preference expressed. The same six questions are asked of every company on the site — what varies is the answers, not the instrument.

This framework is intended to structure analysis, not to produce an investment conclusion.

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Growth
How is the company growing? Is the growth driven by volume, price, or mix? Is it stable across cycles?
💰
Profitability
How do margins behave over time? How much of reported earnings translates into genuine free cash flow?
⚖️
Leverage
What is the capital structure? How flexibly can the company navigate a down-cycle or a period of elevated financing costs?
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Competitive Position
What protects its revenues from erosion? How durable is that protection?
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Management Quality
How does management allocate capital? What is their track record on strategic decisions?
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Business Complexity / Risk
Where would a simplistic analysis go wrong? What is exposed to regulation, cyclicality, or technological change?

Key Observations

This summary is not a recommendation. It is a factual list of what the analysis has identified. The decision rests with the client.

Disclosure — Family Office

Bakshi Finance operates as a Family Office serving qualified investors only. Mr. Yaron Bakshi held a licensed investment-advisory practice from 2008 through 2023. As of the date of this publication, the firm does not hold an investment-advisory, investment-marketing or portfolio-management licence. This document is provided for research and professional education purposes only. Nothing herein constitutes a recommendation to buy, sell, hold or take any action with respect to any security. Nothing herein is a substitute for personalised advice based on an individual's circumstances. All decisions remain the sole responsibility of the investor. Past performance is not indicative of future results.