Phoenix : Rating Report which was published by Maalot on December 27th, 2023

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, [e-mail]

Additional Contact:

Matan Benjamin, [e-mail]

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
Overview	3
Rating Action	3
Rationale	3
Outlook	4
Downside Scenario	4
1 | December 27, 2023	Rating Affirmation

	The Phoenix Insurance Company Ltd.
	The Phoenix Holdings Ltd.
	Phoenix Capital Raising (2009) Ltd.
Environmental, Social, And Governance	..........................................................................4
Related Criteria And Research	4
Ratings List	5

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

3 ׀ December 27, 2023

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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

5 ׀ December 27, 2023

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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

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The Phoenix Insurance Company Ltd.

The Phoenix Holdings Ltd.

Phoenix Capital Raising (2009) Ltd.

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