The Phoenix Insurance
Company Ltd.
The Phoenix Holdings Ltd.
Phoenix Capital Raising (2009)
Ltd.
..................................................................................................................................
December 27, 2023
Rating Affirmation
'ilAAA' Issuer Rating On Phoenix Insurance Company, 'ilAA' Issuer Rating On Phoenix Holdings Affirmed; Outlook Stable
Primary Credit Analyst:
Mark Nicholson, London, 44-20-7176-7991mark.nicholson@spglobal.com
Additional Contact:
Matan Benjamin, 972-3-753916matan.benjamin@spglobal.com
Please note that this translation was made for convenience purposes and for the company's use only and under no circumstances shall obligate S&P Global Ratings Maalot Ltd. The translation has no legal status and S&P Global Ratings Maalot Ltd. does not assume any responsibility whatsoever as to its accuracy and is not bound by its contents. In the case of any discrepancy with the official Hebrew version published on December 27, 2023, the Hebrew version shall apply.
Table of Contents | |
1 | December 27, 2023 | Rating Affirmation |
The Phoenix Insurance Company Ltd. | |
The Phoenix Holdings Ltd. | |
Phoenix Capital Raising (2009) Ltd. | |
..........................................................................4 | |
2 ׀ December 27, 2023 | www.maalot.co.il |
The Phoenix Insurance Company Ltd.
The Phoenix Holdings Ltd.
Phoenix Capital Raising (2009) Ltd.
Rating Affirmation
'ilAAA' Issuer Rating On Phoenix Insurance Company, 'ilAA' Issuer Rating On Phoenix Holdings Affirmed; Outlook Stable
Overview
- The war between Israel and Hamas could have adverse effects on the Israeli economy in general and on The Phoenix Insurance Company Ltd. ("Phoenix Insurance" or "the Company") in particular, especially if the war continues and expands. However, we estimate that the war will not have a material impact on the Company's performance, as damages and losses directly related to the war will be covered by the government program, and the Company also has catastrophe reinsurance programs that are expected to limit the effect on its capital.
- Following the publication of S&P Global Ratings' revised methodology for assessing insurers' risk- adjusted capital on November 16, 2023, there has been an improvement in our assessment of the Company's financial profile.
- We are hereby affirming our 'ilAAA' rating on Phoenix Insurance Ltd.
- The stable outlook reflects our view that the effects of the war on Phoenix Insurance will remain moderate, and that the Company will maintain its leading business position in the Israeli insurance market.
Rating Action
On December 27, 2023, S&P Maalot affirmed its 'ilAAA' rating on The Phoenix Insurance Company Ltd. and its 'ilAA' rating on The Phoenix Holdings Ltd, both with a stable outlook. We also affirmed our rating on subsidiary Phoenix Capital Raising (2009) Ltd.'s subordinated debt.
Rationale
Phoenix Insurance is currently facing higher risks due to the war between Israel and Hamas.
More broadly, we believe it may suffer from prolonged effects as a result of the slowdown in economic activity in Israel and capital market volatility, especially if the fighting continues and expands (see Israel Outlook Revised To Negative On Geopolitical Risks;'AA-'Ratings Affirmed, October 24, 2023). However, we estimate that the war will not have a material impact on the Company's performance, as damages and losses directly related to the war will be covered by the government program. In addition, where life losses are not covered by the government, the Company has catastrophe
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The Phoenix Insurance Company Ltd.
The Phoenix Holdings Ltd.
Phoenix Capital Raising (2009) Ltd.
reinsurance programs which should limit the impact on their capital. The war may affect capital market returns, but we estimate that if it is relatively short and limited to the Gaza Strip and its surroundings, the impact will remain moderate.
Following the publication of S&P Global Ratings' revised methodology for assessing insurers' risk-adjusted capital on November 16, 2023, there has been an improvement in our assessment of the Company's financial profile. In accordance with the revised methodology, we give more credit to Value In Force (VIF) in our calculation, and therefore our assessment of the Company's capital has improved. Phoenix Insurance's overall regulatory solvency ratio (including transition adjustments) was 205% on June 30, 2023, compared to 211% on December 31, 2022. We believe the Company demonstrates robust loss absorption capacity with material capital surplus compared with requirements at the current rating level.
Outlook
The stable outlook on Phoenix Insurance reflects our view that it will maintain its leading business position in the next 18-24 months. Our view is supported by its diversified business model and sound profitability, supporting its capital accumulation. At the same time, we believe its capital adequacy will strengthen and remain adequate in relation to balance sheet risks.
Downside Scenario
We may downgrade Phoenix Insurance in the next 18-24 months if, contrary to our assessment, we see a material weakening in its profitability and capitalization. This scenario may occur if the war between Israel and Hamas persists and even expands to other arenas, with a significant impact on economic activity in Israel.
A negative rating action on Phoenix Insurance could lead to a similar action on Phoenix Holdings. A weakening in Phoenix Holdings' liquidity profile could also lead to a negative rating action.
Environmental, Social, And Governance
ESG factors have an overall neutral influence on our credit analysis of Phoenix Insurance Company Ltd.
Related Criteria And Research
- Principles Of Credit Ratings, February 16, 2011
- Insurers Rating Methodology, July 1, 2019
- Group Rating Methodology, July 1, 2019
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The Phoenix Insurance Company Ltd.
The Phoenix Holdings Ltd.
Phoenix Capital Raising (2009) Ltd.
- Environmental, Social, And Governance Principles In Credit Ratings, October 10, 2021
- Hybrid Capital: Methodology And Assumptions, March 2, 2022
- Methodology For National And Regional Scale Credit Ratings, June 8, 2023
- Risk-AdjustedCapital Framework Methodology, November 15, 2023
- S&P Global Ratings Definitions, June 9, 2023
Ratings List
Phoenix Insurance Ltd. | Rating | Date when the | Date when the |
rating was first | rating was last | ||
published | updated | ||
Issuer rating(s) | |||
Long term | ilAAA/Stable | 24/05/2004 | 11/07/2023 |
Issuer Credit Rating history | |||
Long term | |||
July 11, 2023 | ilAAA/Stable | ||
April 21, 2020 | ilAA+/Stable | ||
October 07, 2018 | ilAA+/Positive | ||
February 19, 2017 | ilAA+/Stable | ||
November 17, 2015 | ilAA+/Negative | ||
May 20, 2014 | ilAA+/Stable | ||
November 18, 2012 | ilAA+/Negative | ||
July 18, 2012 | ilAA+/Watch Neg | ||
October 16, 2011 | ilAA+/Stable | ||
August 26, 2010 | ilAA/Stable | ||
August 17, 2009 | ilAA-/Negative | ||
May 19,2009 | ilAA-/Watch Neg | ||
February 08, 2009 | ilAA/Watch Neg | ||
May 24, 2004 | ilAA |
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The Phoenix Insurance Company Ltd.
The Phoenix Holdings Ltd.
Phoenix Capital Raising (2009) Ltd.
Phoenix Holdings | Rating | Date when the | Date when the | |
rating was first | rating was last | |||
published | updated | |||
Issuer rating(s) | ||||
Long term | ilAA/Stable | 14/03/2007 | 11/07/2023 | |
Issue rating(s) | ||||
Senior Unsecured Debt | ||||
Series 4 | ilAA | 03/02/2020 | 11/07/2023 | |
Series 5 | ilAA | 03/02/2020 | 11/07/2023 | |
Series 6 | ilAA | 14/12/2021 | 11/07/2023 | |
Issuer Credit Rating history | ||||
Long term | ||||
July 11, 2023 | ilAA/Stable | |||
October 06, 2019 | ilAA-/Stable | |||
October 07, 2018 | ilA+/Positive | |||
February 19, 2017 | ilA+/Stable | |||
November 17, 2015 | ilA+/Negative | |||
May 20, 2014 | ilA+/Stable | |||
November 18, 2012 | ilA+/Negative | |||
July 18, 2012 | ilA+/Watch Neg | |||
January 12, 2012 | ilA+/Stable | |||
August 26, 2010 | ilA/Stable | |||
May 19, 2009 | ilA/Negative | |||
November 16, 2008 | ilAA/Watch Neg | |||
March 14, 2007 | ilAA/Stable | |||
Phoenix Capital Raising (2009) | Rating | Date when the | Date when the | |
Ltd. | rating was first | rating was last | ||
published | updated | |||
Issue rating(s) | ||||
Subordinated debt | ||||
Series 9 | ilAA | 03/02/2020 | 11/07/2023 | |
Series 4 | ilAA | 03/02/2020 | 11/07/2023 | |
Series 5 | ilAA | 03/02/2020 | 11/07/2023 | |
Series 8 | ilAA | 03/02/2020 | 11/07/2023 | |
Series 10 | ilAA | 03/02/2020 | 11/07/2023 | |
Series 11 | ilAA | 16/02/2019 | 11/07/2023 | |
Series 13 | ilAA | 23/06/2022 | 11/07/2023 | |
Series 12 | ilAA- | 27/07/2021 | 11/07/2023 | |
Series 14,15 | ilAA | 12/12/2023 | 12/12/2023 | |
Additional details | Item | |||
Time of the event | 27/12/2023 11:51 | |||
Time when the event was learned of | 27/12/2023 11:51 | |||
Rating requested by | Issuer |
6 ׀ December 27, 2023 | www.maalot.co.il |
The Phoenix Insurance Company Ltd.
The Phoenix Holdings Ltd.
Phoenix Capital Raising (2009) Ltd.
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The Phoenix Holdings Ltd. published this content on 31 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 December 2023 08:35:36 UTC.