Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — 9M 2025 Earnings Presentation
45 slides from Harel Insurance Investments & Financial Services's earnings presentation, Nov 25, 2025
Slide 1: Investor Presentation 9M.2025
Investor Presentation 9M.2025 25.11.2025
Slide 2: Agenda
Agenda Key messages Segments overview Strategy Appendix 2
Slide 3: Largest insurance and finance group in Israel
Harel Insurance Investments and Financial Services Largest insurance and finance group in Israel Comprehensive Income ROE Shareholders’ Equity S&P Maalot to shareholders, NIS M NIS B Q3.25 9M.25 Q3.25 9M.25 30.9.25 ilAA+/Stable Harel Insurance 840 2,172 30% 27% 11.5 Midroog 33% QoQ 65% vs 9M.24 18%
Slide 4: Key highlights
Key highlights Increase in comprehensive income and in ROE • Q3.25 comprehensive income was NIS 840 M, 33% increase QoQ , with ROE of 30%. • 9M.25 comprehensive income was NIS 2.17 B, 65% increase, ROE 27% • Increase in profit in Q3.25 and 9M.25 was due to increase in underwriting insurance profit i
Slide 5: Increase in quarterly comprehensive income and ROE (IFRS17)
Increase in quarterly comprehensive income and ROE (IFRS17) Comprehensive income attributed to shareholders ROE NIS M after tax 789 840 30% 29% 26% 632 22% 543 18% 423 12% 264 1-3.24 4-6.24 7-9.24 1-3.25 4-6.25 7-9.25 1-3.24 4-6.24 7-9.24 1-3.25 4-6.25 7-9.25 IFRS 17 IFRS 17 2,172 1,619 27% 1,319 17
Slide 6: New sales of growth products drive an increase in accumulated profit balance (CSM)
New sales of growth products in life and health drive an increase in accumulated profit balance (CSM) Continuous growth in net CSM balance Net CSM from growth products summed to NIS 11.8 B CSM net of reinsurance from life and health insurance CSM net of reinsurance from life and health insurance as
Slide 7: Growth in new business continues to fuel long term value creation
Growth in new business continues to fuel long term value creation CSM roll forward during 9M.25 NIS M About 34% of the CSM balance is expected growth products to be released to profit in the next 5 years products in run-off NIS B 56 1,265 80 17,133 404 5.9 16,548 5.4 (923) growth products products i
Slide 8: Comprehensive income by business lines 9M.25 NIS M
Comprehensive income by business lines 9M.25 NIS M NIS M 9M.25 9M.24 CSM release 1,220 1,195 RA release 240 248 Other* 8 )39( Reinsurance (56) (172) Non-life, net 326 163 Underwriting profit (insurance service result) 1,738 1,395 Net investments and finance income (loss) 1,223 365 Operating expenses
Slide 9: Increase in comprehensive income in 9M.25
Increase in comprehensive income in 9M.25 Total insurance profit 9M.25 vs 9M.24 NIS M 9M.25 9M.24 change Health 1,158 944 214 Change in comprehensive income before tax 9M.25 vs 9M.24 NIS M Life 792 299 493 Non-life 859 381 478 total 2,809 1,624 1,185 858 49 79 3,259 )16( )24( 343 1,970 1,185 \ Chang
Slide 10: Comprehensive income by business lines Q3.25 NIS M
Comprehensive income by business lines Q3.25 NIS M NIS M Q3.25 Q3.24 CSM release 415 408 RA release 81 82 Other* 36 )95( Reinsurance (31) (55) Non-life, net 113 51 Underwriting profit (insurance service result) 614 391 Net investments and finance income (loss) 565 454 Operating expenses )55( (42) To
Slide 11: Increase in comprehensive income in Q3.25
Increase in comprehensive income in Q3.25 Total insurance profit Q3.25 vs Q3.24 NIS M Q3.25 Q3.24 change Health 605 321 284 Change in comprehensive income before tax Q3.25 vs Q3.24 NIS M Life 244 320 )76( Non-life 275 162 113 total 1,124 803 321 111 34 22 1,258 223 )13( )66( 947 321 \ Change in tota
Slide 12: A decrease in interest rate is expected to have a positive impact on the profit
A decrease in interest rate is expected to have a positive impact on the profit Insurance contract groups under IFRS 17 include portfolios at asset Impact of interest rate curve on comprehensive position with positive Best Estimate (life risks, medical expenses, critical income (loss)** after tax NI
Slide 13: Harel Insurance: Nostro portfolio breakdown and return
Harel Insurance: Nostro portfolio breakdown and return Breakdown of Nostro portfolio by asset classes (30.9.25) Nominal Nostro return Real estate (including own use) 5.9% 5.9% Investments funds, Infrastructure and PE 12.8% Credit and Corporate 3.9% bonds 8.9% Tradable equities 2.5% 39.6 4.9% 30.4% 1
Slide 14: Harel Insurance: Solid capitalization
Harel Insurance: Solid capitalization Solvency Capital Ratio at Harel Insurance • Solvency Capital Ratio of Harel Insurance as of June 30, 2025 with transitional measures was 183%, and capital surplus was NIS 8.4 B With transitional measures Without transitional measures • Solvency Capital Ratio of
Slide 15: Harel Investments: Financial resilience
Harel Investments: Financial resilience Dividend in Harel Investments Shareholders’ Equity NIS B including share repurchase NIS M 11.5 Dividend of NIS 400 M share repurchase 926 9.9 dividend for H1.25 8.9 8.3 8.9 7.8 502 474 397 800 357 400 67 400 2021 2022 2023 2024 30.9.25 2020 2021 2022 2023 2024
Slide 16: Composition of financial debt – consolidated and solo NIS M
Composition of financial debt –consolidated and solo NIS M Financial Liabilities Harel Investments Consolidated 31.12.2024 30.9.2025 Financial Liabilities Harel Investments Solo 31.12.2024 30.9.2025 Harel Investments Solo 1,163 1,107 Financial liabilities (1,163) (1,107) Harel Insurance Tier 2 5,475
Slide 17: Agenda
Agenda Key messages Segments overview Strategy Appendix 17
Slide 18: Health and LTC: Increase in underwriting profit and net investments and finance income
Health and Long-term care (LTC) Increase in underwriting profit and in net investments and finance income in Q3.25 and in 9M.25 Health and LTC: Comprehensive income 9M.25 Health and LTC: Comprehensive income Q3.25 NIS M NIS M 366 1,158 )15( 288 605 807 )7( 324 Underwriting Net Operating Comprehensiv
Slide 19: Growth products in health insurance are profit drivers in health
Health and Long-term care (LTC) Growth products in health insurance are profit drivers in health - a year after the Reform Health and LTC: Breakdown of underwriting profit NIS M Medical expenses: Results in Q3.25 and in 9M.25 were 807 9M.24 9M.25 676 positively impacted by the continued activity gro
Slide 20: Life: Increase in underwriting income, decline in net investments in Q3.25
Life Increase in underwriting income, decline in net investments and finance income in Q3.25; and increase in 9M.25 Life: Comprehensive income 9M.25 NIS M Life: Comprehensive income Q3.25 NIS M 273 792 )86( 605 93 244 177 )26( Underwriting Net Operating Comprehensive Underwriting Net Operating Compr
Slide 21: Underwriting improvement in risk products in life
Life Underwriting improvement in risk products in Q3.25 and 9M.25, which are the main component of underwriting profit in life Life: Breakdown of underwriting profit NIS M 9M.24 9M.25 556 605 447 351 • Results in Q3.25 and in 9M.25 were positively affected by increase in activity of life risks produ
Slide 22: Non-life: Increase in underwriting profit and comprehensive income
Non-life Increase in underwriting profit and in comprehensive income in Q3.25 and 9M.25 Non-life: Comprehensive income 9M.25 NIS M Non-Life: comprehensive income Q3.25 NIS M 584 859 )51( 184 275 )22( 326 113 Underwriting Net Operating Comprehensive Underwriting Net Operating Comprehensive profit inv
Slide 23: Improvement in underwriting profit, mostly in motor property
Non-life Improvement in underwriting profit in Q3.25 and in 9M.25, mostly in motor property Compulsory motor: Results in parallel period were Non-life: Breakdown of underwriting profit NIS M negatively impacted by a negative development in respect of prior years 326 9M.24 9M.25 Motor property: Resul
Slide 24: Asset Management: AUM growth continues, increase in comprehensive income
Asset Management AUM growth continues, increase in comprehensive income AM: Breakdown of comprehensive income NIS M before tax 240 9M.24 9M.25 Pension and provident: Results were affected by 191 an increase in management fees driven by AUM growth, partially offset by an increase in marketing and oth
Slide 25: Credit: Continue to scale the credit activity
Credit Continue to scale the credit activity Comprehensive income excluding the impact of changes in Profitability was affected by continuous growth in the credit fair value NIS M before tax portfolio 9M.24 9M.25 169 Additionally, the profit in the period was affected by changes in the fair value of
Slide 26: Agenda
Agenda Key messages Segments overview Strategy Appendix 26
Slide 27: Continuous strategy execution
Continuous strategy execution Improving Diversifying Profitability and Revenues Leveraging scale for material and permanent improvement of insurance profitability and revenue diversification 27
Slide 28: Growth in premiums and deposits
Growth in premiums and deposits Premiums and deposits* NIS B Pension and Provident fund contributions- substantial growth engine CAGR 2018-2024: 5.4% 42.5 5.8% 39.4 37.5 4.2 2.9 33.0 3.9 33.0 29.9 31.2 3.9 2.4 2.5 3.2 18.7 22.4 16.5 13.8 18.5 12.4 16.1 4.7 5.0 3.9 4 5.5 5.9 6.5 4.0 4.1 5 5.4 5.4 4.0
Slide 29: Continuous growth in AUM
Continuous growth in AUM AUM NIS B CAGR 2018-2024: 13.8% 570.7 513.0 60.4 53.9 68.8 427.7 65.1 6.8 362.3 363.1 44.9 6.4 118.6 40.5 39.6 61.3 291.2 105.9 4 58.5 22.5 62.2 35.8 3.2 82.6 21.4 2.1 54.6 58.9 58.2 19.3 1.4 19.3 19.3 210.6 52.1 184.9 16.4 150.6 126.4 128.2 86.6 65.0 75.4 83 44.3 52.9 56.1
Slide 30: Accelerating delivery of 2026 strategic targets
Accelerating delivery of 2026 strategic targets Comprehensive income target ROE target NIS M/B after tax 27% 2,172 1.9-2.1 1,619 18%-19% 17% 600 7% (77) (1%) 2022 2023 2024 9M.25 2026 2022 2023 2024 9M.25 2026 IFRS 4 IFRS 17 IFRS 4 IFRS 17 30
Slide 31: Adjusted profit by business lines 9M.25 NIS M
Adjusted profit* by business lines 9M.25 NIS M 654 3,259 )57( 146 2,662 252 169 782 460 2,095 924 711 Life Health Non-life Total insurance AM Credit Equity and Adjusted Investment Special Comp. income profit other profit spread items before tax reported • Investment spread – the gap between the repo
Slide 32: Increase in adjusted profit in 9M.25
Increase in adjusted profit* in 9M.25 Adjusted comprehensive income after tax by business lines 9M.25 vs 9M.24 NIS M Adjusted comprehensive income after tax and adjusted ROE 9M.24 9M.25 9M.25 vs 9M.24 NIS M 2,662 30.0% 1,900 1,776 2,210 2,095 1,490 1,700 25.0% 1,730 1,776 1,500 22.4% 20.0% 1,490 15.
Slide 33: Agenda
Agenda Key messages Segments overview Strategy Appendix 33
Slide 34: Analysis of total insurance profit Q3.25 and 9M.25 NIS M
Analysis of total insurance profit Q3.25 and 9M.25 NIS M Comprehensive income by business line 9M.25 NIS M Comprehensive income by business line Q3.25 NIS M Total insurance profit 9M.25 breakdown NIS M Total insurance profit Q3.25 breakdown NIS M 1,223 2,809 )152( 565 1,124 1,738 )55( 614 1 2 1 2 Un
Slide 35: Increase of NIS 223 M in underwriting profit in Q3.25
Increase of NIS 223 M in underwriting profit in Q3.25 Total insurance profit breakdown Q3.25 NIS M 565 1,124 614 )55( 1 2 •1 Underwriting profit – insurance service result: • Run-off products: Saving products - Yield guaranteed and profit-participating and Long- Composition of underwriting profit (i
Slide 36: Increase of NIS 343 M in underwriting profit in 9M.25
Increase of NIS 343 M in underwriting profit in 9M.25 Total insurance profit breakdown 9M.25 NIS M 1,223 2,809 1,738 )152( 1 2 1 Underwriting profit – insurance service result: Run-off products: Saving products - Yield • guaranteed and profit-participating and Long- Composition of underwriting profi
Slide 37: Lower investment income in Q3.25 compared with Q3.24
Lower investment income in Q3.25 compared with Q3.24, positive net impact of increase of the interest rate curve Total insurance profit breakdown Q3.25 NIS M 565 1,124 614 )55( 2 Net investments and finance income (loss) 1 2 • Investment income from nostro portfolio • Nostro returns during Q3.25 per
Slide 38: Higher investment income in 9M.25 compared with 9M.24
Higher investment income in 9M.25 compared with 9M.24, negative impact of changes in interest rate curve Total insurance profit breakdown 9M.25 NIS M 1,223 2,809 1,738 )152( 2 Net investments and finance income (loss) 1 2 • Investment income from nostro portfolio • Nostro returns during the reportin
Slide 39: Insurance contract assets and liabilities in the IFRS17 balance sheet
Insurance contract assets and liabilities in the IFRS17 balance sheet Assets 30.9.2025 Liabilities 30.9.2025 Other cash and cash equivalents 2,916 Borrowing and credit 22,721 Other financial investments measured at fair value 44,989 Liabilities for derivatives instruments 9,495 Other financial inves
Slide 40: P&L structure 9M.25
P&L structure 9M.25 1,738 Insurance service result Underwriting profit Net + Profit (loss) from Investment income from the nostro portfolio, saving policies + investment contracts, which presented separately. investments 2,233 investments Investment income from AM and credit is also presented under
Slide 41: Insurance service result composition 9M.25
Insurance service result composition 9M.25 1,220 CSM release (new and For insurance service under the contract in life and health existing business) insurance provided in the period 240 Reflects the compensation for assuming the insurance risk – released RA release when the insurance service is prov
Slide 42: Composition of net investments and finance income (loss) – insurance 9M.25
Composition of net investments and finance income (loss) – insurance 9M.25 Investment income from Nostro Investment income from nostro portfolio (assets backing life, health and non-life Investment liabilities and equity) portfolio income (loss) 2,233 Investment gains attributed to the saving polici
Slide 43: Our Global Partners
Our Global Partners @ Swiss Re CHUBB ®& CHINA RE Allianz @) STAR INSURANCE COMPANIES & QBE GERLING AYA + ~~) ol all p. 2 DUBAI INSURANC & TOKIO MARINE Zarich Insurance Company wd HARTFORD @ | Berkley INSURANCE beazley uaReL
Slide 44: Legal disclaimer and forward looking statement
Legal disclaimer and forward looking statement 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
Slide 45: Thank You
Thank You For more information: https://pr.harel-group.co.il/
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