Migdal Insurance and Financial Holdings

Migdal Insurance and Financial Holdings Ltd. is an Israeli publicly traded financial group active mainly in insurance, pension, provident funds and financial services. Through subsidiaries including Migdal Insurance, Migdal Makefet and Migdal Capital Markets, it is one of Israel’s major institutional savings and insurance groups, with shares traded on the Tel Aviv Stock Exchange.[citation needed]

Overview

Migdal Insurance and Financial Holdings is a holding company for a group that combines insurance underwriting, long-term savings management, provident and education savings, distribution through insurance agencies, and capital-markets services. In its June 30, 2026 financial report, the company described itself as a publicly traded company whose shares are traded on the Tel Aviv Stock Exchange and which operates through subsidiaries mainly in insurance, pension, provident and financial services.[citation needed]

The group’s business model is closely tied to the structure of Israeli household and employer-based savings. Life insurance, pension funds, provident funds and education funds are central channels through which Israeli households accumulate long-term savings. Migdal participates in these markets through regulated institutional entities and through agencies and financial-services subsidiaries. This places it within Israel’s broader institutional-investor system, alongside banks, asset managers, pension managers and insurers.

The company’s own corporate materials identify the group’s core offering as insurance, pension and long-term financial asset-management services. They state that insurance activity is carried out by Migdal Insurance, pension and provident activity by subsidiaries of Migdal Insurance, including Migdal Makefet and Yozma Pension Fund for the Self-Employed, and financial services by Migdal Capital Markets and its subsidiaries.^[1]

History and listing

Migdal Insurance Company Ltd., the principal operating insurance subsidiary, was established in Jerusalem in 1934 by Jewish families from Alexandria together with the Italian insurer Generali. The name “Migdal,” meaning “tower” in Hebrew, was bestowed by the poet Hayim Nahman Bialik, according to the company’s historical description.^[1]

The holding company, Migdal Insurance and Financial Holdings Ltd., was incorporated in Israel on August 13, 1974. Its shares have been traded on the Tel Aviv Stock Exchange since 1997.^[1] As a listed company, Migdal is subject to Israel’s securities disclosure regime, including periodic and immediate reports filed with the Israel Securities Authority and the exchange.

Migdal’s securities filings also identify the company by its Israeli company number and registered address at 4 Efal Street, Kiryat Aryeh, Petach Tikva.[citation needed] A March 2026 TASE/MAGNA immediate report used the short Hebrew name “Migdal Insurance,” stated that the company’s securities were registered for trading on the Tel Aviv Stock Exchange, and listed its Petach Tikva address and investor-relations email.^[2]

Ownership and control

Migdal’s control structure has changed over time, but by the mid-2020s the group was controlled by interests associated with Shlomo Eliahu. In its June 2026 financial report, Migdal stated that shortly before publication of the report the company’s controlling shareholder was Mr. Shlomo Eliahu, who, together with Ms. Chaya Eliahu, held approximately 45.41% of the company’s issued and paid-up share capital through Eliahu Issues Ltd.[citation needed]

The company’s structure page describes Migdal Insurance and Financial Holdings as the controlling-interest holder in Migdal Insurance Company Ltd. It also lists major subsidiaries and ownership percentages, including 100% ownership of Migdal Insurance Company Ltd., Migdal Capital Markets (1965) Ltd., Migdal Makefet Pension and Provident Funds Ltd., Yozma Pension Fund for Self Employed Ltd., and several insurance-agency and service companies, with some agencies held at lower percentages.^[3]

This structure makes the listed holding company the parent through which public shareholders gain exposure to the group’s insurance, savings and financial-services activities. It also separates the listed parent from regulated operating entities, a common structure among insurance and financial groups.

Business segments

Migdal’s main reported fields are insurance, long-term savings and financial services. In its June 2026 report, the company’s income-source presentation divided core income into long-term savings, health insurance, property and casualty insurance, financial services, agencies and equity.[citation needed]

The long-term-savings segment includes life insurance and savings products, pension funds, provident funds and related investment contracts. These businesses are sensitive to contributions, transfers, lapse and redemption behavior, fee levels, capital-market returns and actuarial assumptions. The company reported that in the first half of 2026 pension-fund income rose versus the corresponding period mainly because management fees increased as a result of higher assets under management and contributions, partly despite erosion in average management fees.[citation needed]

Health insurance and property-and-casualty insurance are underwriting businesses. Their results depend on premiums, claims, reinsurance, expenses and reserving assumptions. Migdal’s reports also identify surplus financial gain or loss as a separate driver, reflecting market changes, inflation, movements in the interest-rate curve and the interaction between assets and insurance liabilities.[citation needed]

Migdal Capital Markets is the group’s financial-services arm. The June 2026 report stated that financial-services assets under management were approximately NIS 113 billion as of June 30, 2026, and that revenues in the first half of 2026 rose compared with the prior year due to factors including higher fixed management fees in mutual funds, higher portfolio-management fees, and increased revenues from market making, underwriting and distribution.[citation needed]

Assets, savings and capital-market exposure

As an insurer and long-term savings manager, Migdal is exposed to Israeli and global capital markets. Its own report states that the group’s operating results are substantially affected by capital markets, including interest rates, which affect the returns embedded in financial assets under management and insurance liabilities.[citation needed] This means that equity-market performance, bond yields, inflation and discount-rate assumptions can all affect reported income, equity and solvency measures.

The June 2026 report stated that total assets under management increased compared with 2025, mainly due to positive returns during the reporting quarter, higher net contributions into pension and provident funds, and an increase in financial-services assets, primarily mutual funds.[citation needed] The report also clarified that its assets-under-management data include nostro assets earmarked for capital and assets managed by pension funds, provident funds, mutual funds and portfolio management that are not included in the consolidated financial statements.[citation needed]

The company reported comprehensive income after tax of NIS 897 million for the first six months of 2026, compared with NIS 825 million in the corresponding period of 2025. It also reported annualized total return on equity of 18.0% for the first half of 2026.[citation needed] These measures are period-specific and reflect accounting, actuarial and market inputs; they should not be treated as stable measures of future profitability.

Regulation and solvency

Migdal’s activities are regulated under several Israeli regimes. As a listed company, Migdal reports to the Israel Securities Authority and the Tel Aviv Stock Exchange. Its insurance, pension and provident operations are subject to insurance and savings regulation under the Commissioner for the Capital Market, Insurance and Savings, within Israel’s Ministry of Finance framework. In its June 2026 report, Migdal stated that its board report was prepared under the Securities Law and, for insurance, pension and provident businesses, under the Supervision of Insurance Business Regulations and the Commissioner’s circulars.[citation needed]

Solvency is an important issue for Israeli insurers because long-term insurance liabilities and capital buffers affect dividend capacity, credit ratings and the insurer’s financial flexibility. Migdal’s 2025 financial statements describe a capital policy under which Migdal Insurance would strive to operate with an economic solvency ratio of 150% to 170%, and a minimum economic solvency-ratio target that would increase over time through the end of the transitional period in 2032.[citation needed] The same note stated that, based on the company’s estimate as of December 31, 2025, Migdal Insurance did not comply with the minimum capital requirement for dividend distribution set by Migdal Insurance’s board.[citation needed]

In June 2026, Maalot S&P assigned an ilAA+ rating with stable outlook to Migdal Insurance and Migdal Capital Raising Ltd., according to Migdal’s report.[citation needed] In August 2026, Midroog raised Migdal Insurance’s insurer financial strength rating from Aa2.il to Aa1.il and changed the outlook from positive to stable, according to the same report.[citation needed]

Market position and trading

Migdal’s share is part of Israel’s listed financial sector. The Tel Aviv Stock Exchange announced in February 2026 that Migdal had joined TASE’s tailor-made market-making program for its shares and described Migdal’s share as a TA-35 Index constituent at that time. TASE also stated that the share had average daily turnover of NIS 51 million over the preceding 90 trading days.^[4]

The company’s relevance to Israeli finance is broader than its own market capitalization. Through pension, provident, insurance and financial-services subsidiaries, Migdal is a large institutional allocator of savings. It invests customer, policyholder and shareholder funds across public securities, real estate, credit and other assets, subject to regulation and internal risk controls. Consequently, its balance sheet and managed portfolios link household savings to Israeli and international capital markets.

Related institutions and concepts

Migdal is part of a financial system in which insurers, banks, capital-market regulators and long-term savings products interact. Its activities overlap with topics such as Kupat Gemel, Keren Hishtalmut, the Tel Aviv Stock Exchange, the Israel Securities Authority and the Ministry of Finance (Israel). It also operates alongside major Israeli banking groups such as Bank Hapoalim, Bank Leumi, Israel Discount Bank and Mizrahi-Tefahot Bank, which are important counterparties, distributors and competitors in different parts of the financial-services market.