כל הזכויות שמורות©1

Summary of Nine-Month Summary of Nine-Month Financial Results 2010Financial Results 2010

Conference Call with AnalystsNovember 28, 2010

The Phoenix

© All rights reserved

Main Nine-Month Figures 2010

• Comprehensive income for nine months 2010 – NIS 348.8 million.

• Comprehensive income for third quarter – NIS 69.3 million.

• Income for nine months 2010 – NIS 255 million.

Third-quarter income – NIS 70.9 million.

• Total premiums earned, gross – NIS 4.45 billion.

• Significant increase in capital surplus.

• Total assets managed by the Group as of September 30, 2010 –

NIS 97.6 billion.

• Income from investments – moderately positive yields compared to

the same period last year.

Main Nine-Month Figures 2010

• Significant decrease in redemption rates.

• Significant increase in income from financial services.

• Complex secondary capital issue of NIS 400 million.

• Maalot upgrading of the Phoenix rating outlook from negative

to stable.

• First-time Midroog rating of the insurance company and the

holding company – both in group Aa.

Comprehensive Income and Income for the Period in NIS Millions

-----

348.8355.5

69.342.8

435.4

Comprehensive income

-----

255

149.4

70.9

32.4

247.9

Income for the period

(561.0)

435.4 348.8

(28.1%)

21.8% 19.0%

ʤɹ ʥ̫̋ ʬʬʬʥʫʧʥʥy ʭʩʩ̋ʰʹ ʭʩʧʰʥʮʡʯʥʤʬʤʠʥ́̋

לשנתלשנת10/20101-9/201020092008

גרעון בדמי ניהול53110226627

Comprehensive income for the period Annualized return on equity

Management fees deficit

(*) Net of effect of amortization of fully amortized original differences.

Contribution of Segments to Income from Operating Segments 2009-9/2010

ʭʩʩʧʧʥʨʩʡʪʥyʠʯʥʫɦ ʩʧʥ

ʧʥʥʨ

ʺ ʥʠʩyʡʧʥʨʩʡʩʬʬʫʧʥʨʩʡ

ʭʩ̋ʥyʩ́ʭʩʩɦʰʰʩɹ

Financial services (*), 8% Life insurance and long-term savings, 29%

Health insurance, 22%General insurance, 40%

Managed assets as of 31.12.2009

Total NIS 97.6 billion as of 30.9.2010

Phoenix Group: NIS 89 billion

Total NIS 84.5 billion as of 30.9.2009

ʬʮʢ

ʤʩɦʰʴ

ʥyʨɦ ʥh

ʳ ʺ ʺ ʹ ʮ

ʭʩ̋ʥyʩ́ʭʩɦʰʰʩɹ

ʬʮʢ ʤʩɦʰʴ ʥyʨɦ ʥh ʳ ʺ ʺ ʹ ʮ ʭʩɦʰʰʩɹʭʩ̋ʥyʩ́

ʬʮʢ

ʤʩɦʰʴ

ʥyʨɦ ʥh

ʳ ʺ ʺ ʹ ʮ

ʭʩ̋ʥyʩ́ʭʩɦʰʰʩɹ

ʬʮʢ ʤʩɦʰʴ ʥyʨɦ ʥh ʳ ʺ ʺ ʹ ʮ ʭʩɦʰʰʩɹʭʩ̋ʥyʩ́

Financial services, 34.0

Provident funds, 17.6

Pension, 3.2

Nostro 13.2

Participating, 16.5

Financial services, 40.1

Provident funds, 19.1

Pension, 4.2

Nostro 14.3

Participating, 19.9

Provident Pension Nostro Participating Financial services fund

Provident Pension Nostro Participating Financial services fund

30.09.1031.12.0931.12.08

8696635עודף קיים

השקעות בחברות מוחזקות שיש להעמיד 339309259כנגד עודפי ההון

530354(254)

4335190תוספת ההון שיש להשלים עד 31.12.2011

97(165)(254)

Capital Surpluses in NIS Millions

Existing surplus

Investments in investees set against capital surpluses

Capital supplement to be completed by 31.12.2011

% גידול% גידול(קיטון)7-9/20107-9/2009(קיטון)1-9/20101-9/2009

43.98.6408.4%(24.0%)130.9172.3רווח מתחום פעילות ביטוח חיים וחיסכון לטווח ארוך

(48.1%)19.437.3(30.3%)82.6118.5רווח מתחום פעילות ביטוח בריאות

50.445.211.3%(12.0%)205.3233.3רווח מתחום פעילות ביטוח כללי

-(5.9)81.15.11,478.9%16.1רווח מתחום שירותים פיננסיים

129.785.252.1%(5.6%)499.8529.2סה"כ רווח מתחומי הפעילות

11.16.667.7%-(4.6)31.2אחר - למעט תוצאות חברות מוחזקות

93.0%(3.4)(6.6)(33.1%)8.012.0אחר - חלק החברה בתוצאות נטו של חברות מוחזקות

(48.1%)(55.7)(28.9)(11.5%)(31.1)(27.6)הכנסות בניכוי הוצאות שלא שוייכו למגזרי הפעילות

סך הכל רווח כולל לפני מסים על ההכנסה511.5505.51.2%105.332.8221.2%

-10.0(36.1)8.5%(150.0)(162.7)מסים על ההכנסה

69.342.861.9%(1.9%)348.8355.5סה"כ רווח כולל לתקופה

% Increase (Decrease) % Increase (Decrease)

Income from life insurance and long-term savings segment

Income from health insurance segment

Income from general insurance segment

Income from financial services segment

Total income from operating segments

Other – Excluding results of investee

Other – Company’s share in net results of investees

Income less expenses not attributed to operating segments

Total comprehensive income before taxes on income

Taxes on income

Total comprehensive income for the period

Premiums Earned, Gross – in NIS Millions

--

4,450 4,009 5,422 5,154

1,434 1,305 1,755 1,650

792 750 1,020 867

2,223 1,954 2,647 2,638 ʪʥyʠʯʥʫɦ ʩʧʥʭʩʩʧʧʥʨʩʡʧʥʥʨ

ʺʥʠʩyʡ

ʩʬʬʫʧʥʨʩʡ

ʤɦʥʧʥʥyʥʤ́ ʺ ʥʩʮy ʴ ʫ 5.2%

0.3%

17.7%

6.4%

13.7%

9.8%

5.6%

11%

Life insurance & long-term savings

Health

General insurance

Total premiums earned

ʤʡʥʧʡʫyʹ ʥʫy ʡʫyʹ ʥʫy ʩɹʰʲʭʩyʧʠʥ

ʺ ʥʩʥʡʧʩɹʰʲ

317

527

445

250 283

459 429

253

360

595

543

333 321

577 541

249

-

-

-

-

General Insurance Segment – Gross Turnoverin NIS Millions

33.9%

14.81%

12.14%12%

Total 1-9/2010:: 1,539 Total 1-9/2009: 1,424

8%

Liability Insurance Other Property Ins. Auto Property Ins. Mandatory Auto

loss ratio ממוצע בענף

1-9/101-9/091-9/101-9/091-6/10 (**)

112.2%89.3% (*) 14.9%31.0%103.1%רכב חובה

11.0%12.4%63.6%65.6%76.5%רכב רכוש

12.7%9.3%33.3%46.2%41.2%ענפי רכוש ואחרים

17.5%19.2%80.9%101.6%95.3%ענפי חבויות

13.3%16.4%70.7%79.1%76.7%סה"כ

*

הראל , כלל , מנורה ומגדל**

שיעור הרווח הכולל שייר loss ratioמהמחזור ברוטו

ה- loss ratio לעיל מקורו בשנת חיתום 2007 .

Mandatory auto

Property auto

Other property

Liability

Total

Rate of Comprehensive Income in Gross Turnover

Retained Loss RatioAverage Loss Ratio in the Industry

* The above loss ratio is derived from underwriting year 2007.

** Harel, Clal, Menorah and Migdal

-

2.5%

2.8%2.9%

(*) Annualized

(*)

Continuing Improvement in Redemption to Reserve Ratio

1.6%

(2.9%)

1.9%

9.9%4.9%8.4%

20.0%

6.0%7.1% 3.6%

(1.2%)

42.2%

21.6%

2.7%9.9%

95.8%

64.5%

52.0%

ʭʩyʩʧʮʣʣʮʲ ʥʣʩʤʯʫy ʶʬ

ʸʬʥʣMSCIʣhʥʡʬʺʢʠʧʠʬʩ̋ʬʹ ʮʮ

ʣʥʮʶ

ʢʠʧʩ̋ʬʹ ʮʮʣʣʮʣʥʮʶ

ʸʺ ʩʤʣʣʮʡʩʡʠʬʺʡʩʡʠʬʺ

- -

Tel Aviv 25

Tel Aviv 100Small Cap

“Yeter”

Index-Linked Government

Bonds

Unlinked Government

Bonds

Tel Bond 20

MSCI

Dollar

Known CPI

SUMMARY

•Close to NIS 100 billion in managed assets.

•Substantial strengthening of the company’s capital base.

•Strong growth in sales, while maintaining adequate underwriting

profitability.

•Decrease in the rate of redemptions.

•Leader in yields on savings vehicles.

•Significant narrowing of the “hole” in management fees.

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