Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — FY2023 Earnings Presentation
20 slides from Harel Insurance Investments & Financial Services's earnings presentation, Mar 31, 2024
Slide 1: Summary of Financial Results for the Year 2023
Summary of Financial Results For The Year 2023 March 31, 2024
Slide 2: Disclaimer
This presentation was prepared solely for the purpose of convenience and brevity and it contains partial information in relation to the Company’s results in the periods specified therein. This presentation should not be construed as an offer to purchase the Company’s securities or an invitation to a
Slide 3: Support for defense forces and hostages' families
Harel Group, the Board of Directors, Management and employees support the defense forces and stand with the families of the hostages, hoping and praying for their safe and speedy return home. We offer our condolences to the bereaved families and feel the pain of their terrible loss in the horrific t
Slide 4: The Largest insurance and finance group in Israel
Harel Insurance Investments and Financial Services The Largest insurance and finance group in Israel Ownership Structure S&P Maalot 39.4 428 AUM 8.9 Hamburger ilAA+/Stable Premiums and Deposits Equity Family Harel Insurance NIS B NIS B NIS B 48.47% 51.53% Midroog 600 Aa1.il stable 7% 167% Public Har
Slide 5: 2023: Material profitability improvement
2023: Material profitability improvement ROE Comprehensive Income attributed to shareholders NIS M after tax 18% 15% 1,518 11% 978 833 7% 600 (1%) (77) 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 271 13% 203 9% 93 4% 2% 33 1-3.23 4-6.23 7-9.23 10-12.23 1-3.23 4-6.23 7-9.23 10-12.23 5
Slide 6: 2023: Continued growth in premiums and AUM
2023: Continued growth in premiums and AUM Premiums and Deposits** NIS B AUM NIS B 28% 51% 427.7 39.4 45 37.5 362.3 363.1 2.9 33.0 3.9 40.5 39.6 61.3 30.8 29.9 282.8 291.2 3.9 3.9 62.2 58.5 3.3 2.5 35.8 82.6 18.7 35 2.1 3.2 16.5 58.2 51 54.6 58.9 19.3 12.4 12.4 13.8 0.8 1.4 19.3 19.3 59 52.1 4.7 5.0
Slide 7: Harel Investments: Excess cash and consistent dividend policy
Harel Investments: Excess cash and consistent dividend policy NIS 2 B Excess Cash Dividend Policy NIS million Harel Company B Company C Company D Company E 30% Investments Bank loans 31.12.2023 (1,260*) (1,551) 30.9.2023 - (1,017) (375) > and bonds Harel Investments Cash and other 3,336 509 9 513 36
Slide 8: Composition of comprehensive income 2023
Composition of comprehensive income 2023 NIS M 975 233 202 Underwriting profit AM Credit and other (Insurance) 1,410 821 611 600 Life Health Non-life Investment Provident Pension Finance Credit Equity and Adjusted Investment Interest Special Comprehensive Tax Profit after Profit after Contracts Agen
Slide 9: NIS 785 M underwriting improvement in 2023
NIS 785 M underwriting improvement in 2023 Underwriting Improvement 2023 vs 2022 Change in adjusted profit 2023 vs 2022 NIS M before tax NIS M 2023 2022 change Non-life 284 )90( 374 Health 386 124 262 Life total 305 975 156 190 149 785 785 1,410 660 2022 Adjusted Underwriting AM Credit Equity and 20
Slide 10: Non-life: Improvement due to higher underwriting profit
Non-life: Comp. Income before tax Improvement due to higher underwriting profit Non-life: Change in Comprehensive Income 2023 vs 2022 NIS M before tax Change in Comprehensive Income before tax +292 • Underwriting improvement across all segments • Positive impact of investment income due to positive
Slide 11: Non-life: Improvement in all sectors, particularly in motor property
Non-life: Underwriting Improvement in all sectors, particularly in motor property Non-life: Breakdown of underwriting profit NIS M NIS 374 M underwriting improvement: Compulsory Motor: Portfolio optimization +374 and decline in average cost of claim, offset by negative developments in some group 284
Slide 12: Health: Lower interest rate impact in 2023
Health: Comp. Income before tax Lower interest rate impact in 2023 Health: Change in Comprehensive Income 2023 vs 2022 NIS M before tax Change in Comprehensive Income before tax: (658) • Underwriting improvement especially in Long term health • Positive impact of investment income due to positive No
Slide 13: Health: Improvement in medication and personal accidents
Health: Underwriting Improvement in medication and personal accidents Health: Breakdown of underwriting profit NIS M NIS 262 M underwriting improvement: Health - Long term: Underwriting improvement in group contracts, in +262 medication cover and in personal accidents product, partly offset by an in
Slide 14: Life: Positive impact of underwriting and investments
Life: Comp. Income before tax Positive impact of underwriting and investments Life: Change in Comprehensive Income 2023 vs 2022 NIS M before tax Change in Comprehensive Income before tax: +922 • Underwriting improvement in risk products • Positive impact of investment income due to positive Nostro r
Slide 15: Life: Higher profitability despite the War impact
Life: Underwriting Higher profitability despite the War impact Life: Breakdown of Underwriting Profit NIS M NIS 149 M underwriting improvement: +149 • Increase in profit from risk products 305 due to continuous activity growth and fewer work disability claims, despite NIS 88 M increase in claims of
Slide 16: AM: Continuous growth in AUM
AM: Profit by sector Continuous growth in AUM AM: Breakdown of Comprehensive Income NIS M before tax Change in Comprehensive Income before tax: 214 202 • The improvement is largely driven by increase in AUM in pension and provident and continuous inflows into Money Market Mutual Funds • Higher inter
Slide 17: Credit Segment: Diverse and growing credit activity
New: Credit Segment Diverse and growing credit activity Comprehensive Income NIS M before tax 103 Change in Comprehensive Income: 64 • The increase in comprehensive income in 2023 is due to activity growth and higher interest margins 19 24 32 25 22 27 11 7 Harel 60+ Development Financial Hamazpen To
Slide 18: Calculations Principles
Appendix Calculations Principles Insurance Asset Management Credit and Other Hamazpen Pension Funds Development Property Financing Life Insurance Provident Funds Harel 60+ Health Insurance Financial Guarantees Finance Non-life Insurance Agencies Investment Contracts Equity Underwriting Profit: profi
Slide 19: Our Global Partners
Our Global Partners @ swissRe & Ww cS ‘Berkley QBE TOKIOMARINE SOMPO JAPAN CHUBB B HDI ZURICH 0 fy SUKOON. GERLING Ss RSA 3 INSURANCE ®& CHINA RE Allianz @) aA wu eahis ee SS STARR @é @ INSURANCE COMPANIES
Slide 20: Thank You
Thank You For further information: https://pr.harel-group.co.il/
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