Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — H1 2023 Earnings Presentation
21 slides from Harel Insurance Investments & Financial Services's earnings presentation, Aug 30, 2023
Slide 1: Summary of Financial Results
SUMMARY OF FINANCIAL RESULTS For the Period H1.23 | August 30, 2023 1
Slide 2: Disclaimer
This document has been prepared by Harel Insurance Investments and Financial Services Ltd. (hereinafter: the Company) solely for the purpose of presenting the Company's business. The information contained in this document has not been independently verified. No representation or warranty has been ex
Slide 3: The Big Picture
THE BIG PICTURE Data at June 30, 2023 19 (NIS bn, H1.23) 401 (NIS bn) 169% At December 31, 2022 Aa2.il GROSS PREMIUMS ASSETS UNDER SOLVENCY RATIO HAREL INVESTMENTS EARNED, MANAGEMENT Including the transitional Midroog Benefit Contributions and provisions Aa2 RATING Over amounts received for HAREL IN
Slide 4: Key Highlights for the Period
KEY HIGHLIGHTS FOR THE PERIOD In Q2.23 shareholders’ comprehensive income was NIS 93 million compared with a loss of SHIFT TO NIS 436 million in Q2.22. In H1.23 shareholders’ comprehensive income was NIS 126 million PROFITABILITY compared with a loss of NIS 110 million in H1.22 Premiums, benefit con
Slide 5: Continuous Activity Growth
CONTINIUOUS ACTIVITY GROWTH Gross Earned Premiums, Benefit Contributions And Amounts Received For Investment Contracts (NIS bn) +14% 37.5 H1.23 vs. H1.22: 33 3.9 Pension and 3.9 4.7 Provident Deposits +12% 3.8 +1% Health Insurance +10% +10% 11.8 18.7 19 10 2.3 1.4 2.3 Non Life Insurance +7% 4 4.7 2.
Slide 6: Above NIS 400 Billion AUM
ABOVE NIS 400 BILLION AUM 401 15 362 363 16 15 56 43 43 283 291 15 13 53 56 61 Continuous Growth in AUM 235 39 +71% 44 13 44 34 45 141 126 128 39 87 since 2018 76 62 124 121 128 103 108 87 2 1 2 1 2 2 2 21 2 22 H1.23 INSURANCE PENSION FUNDS PROVIDENT FUNDS MUTUAL FUNDS PORTFOLIO MANAGEMENT AND OTHER
Slide 7: Shifting to Profitability in Q2.23 and in H1.23
SHIFTING TO PROFITABILITY IN Q2.23 AND IN H1.23 Comprehensive Income (Loss) After Tax Attributed To The Shareholders (NIS m) 1,518 126 93 (77) (110) (436) 2 21 2 22 H1.22 H1.23 Q2.22 Q2.23 Return on Equity (In Annual Terms) 18% 3% 4% (1%) (3%) (20%) 2 21 2 22 H1.22 H1.23 Q2.22 Q2.23 7
Slide 8: Comprehensive Income Before Tax
COMPREHENSIVE INCOME BEFORE TAX 2,163 Development Of Comprehensive Income Before Tax By Operating Segment (NIS m) 598 78 43 535 Q2.23 73 6 Comprehensive Income Before Tax in 30 Q2.23 was NIS 128 m, compared with 909 798 180 13 128 a loss of NIS 674 m in Q2.22 37 391 32 23 74 35 96 34 18 52 (56) (19)
Slide 9: Key Drivers of Q2.23 Profit
KEY DRIVERS OF Q2.23 PROFIT Composition Of Comprehensive Income Before Tax (NIS m) Improved real yields in Nostro portfolio compared with corresponding period in 2022 Provision for impairment of real estate assets abroad amounted to NIS 111 m, affecting the real yields Underwriting improvement in mo
Slide 10: Key Drivers of H1.23 Profit
KEY DRIVERS OF H1.23 PROFIT Composition Of Comprehensive Income Before Tax (NIS m) Improved real yields in Nostro portfolio compared with corresponding period in 2022 Provision for impairment for real estate assets abroad amounted to NIS 111 m, affecting the real yields Underwriting improvement in c
Slide 11: Life Assurance | Improved Yields Led to Improved Profitability
LIFE ASSURANCE | IMPROVED YIELDS LED TO IMPROVED PROFITABILITY Life Assurance: Profit (Loss) Before Tax (NIS m) • In H1.23 premiums amounted to NIS 3.4 billion, down 3.6% compared with the corresponding period last year, due to a decrease of non-recurring deposits 750 • The improved profitability in
Slide 12: Pension and Provident | Continuous Growth in AUM
PENSION AND PROVIDENT| CONTINOUS GROWTH IN AUM Pension: Profit Before Tax(NIS m) Pension: 91 Continuous growth in AUM. In 57 141 NIS bn H1.23 Benefit contributions 31 38 24 AUM increased by 17% compared 16 +10% from YE22 with H1.22 and amounted to NIS 6.4 bn 2 21 2 22 H1.22 H1.23 Q2.22 Q2.23 Provide
Slide 13: Health | Underwriting Improvement in Group Policies and Medication Cover
HEALTH | UNDERWRITING IMPROVEMENT IN GROUP POLICIES AND MEDICATION COVER • In H1.23 premiums grew by 9.7% to NIS 3.2 billion, Health Insurance : Profit (Loss) Before Tax (NIS m) compared with H1.22 • Q2.23 profitability was impacted by improved 798 underwriting in group policies and in medications c
Slide 14: Non-Life | Underwriting Improvement in Motor
NON-LIFE | UNDERWRITING IMPROVEMENT IN MOTOR • In H1.23 premiums grew 6.9% to NIS 2.4 billion Non-Life Insurance : Profit (Loss) Before Tax (NIS m) compared with the corresponding period last year H1.22 37NIS m H1.23 101 NIS m • H1.23 underwriting improvement: In compulsory motor was due to the port
Slide 15: Financial Services | Growth in AUM, Revenues and Profitability
FINANCIAL SERVICES | GROWTH IN AUM, REVENUES AND PROFITABILITY Financial Services: Revenues and Profit Before Tax (NIS m) 56NIS bn Mutual Funds +30.8% from YE22 254 264 71 NIS bn AUM +22% from YE22 15 NIS bn Portfolio Management 157 and Other* -2.7% from YE22 121 78 85 73 63 30 37 Growth in Mutual F
Slide 16: Equity and Dividends
EQUITY AND DIVIDENDS Dividend Policy 35% From annual 30% From annual profit in Harel profit in Harel Insurance Investments 8.9 8.4 8.5 Equity 7.8 (NIS billions) 6.9 5.8 6.2 4.8 5.1 5.4 4.2 4.5 2 12 2 13 2 14 2 15 2 16 2 17 2 1 2 1 2 2 2 21 2 22 H1.23 2.9 Dividend (incl. shares 64 308 320 235 171 461
Slide 17: Capital Surplus | Harel Insurance
CAPITAL SURPLUS| HAREL INSURANCE Including the transitional Without the transitional provisions provisions Harel Insurance is governed by a Solvency II based economic solvency regime In accordance with the Commissioner’s directives, the economic 175% 169% solvency ratio at December 31, 2022, was pub
Slide 18: Solvency and Economic Value | Leading the Insurance Market
SOLVENCY AND ECONOMIC VALUE| LEADING THE INSURANCE MARKET VNB To New Business Premium Annualized New Business Premium VNB** (December 2022, NIS bn) (December 2022, NIS m) (December 2022, NIS bn) 373 1.3 3.48 257 251 2.98 2.93 245 0.7 190 113 2.03 105 153 0.5 87 0.4 39 0.75 144 146 0.1 -12% 128 114 1
Slide 19: Solvency and Economic Value | Leading the Insurance Market
SOLVENCY AND ECONOMIC VALUE| LEADING THE INSURANCE MARKET Equity I Basic Tier 1 VIF** (December 2022, NIS bn) (December 2022, NIS bn) 8.5 8.1 7.7 6.6 6.6 6.5 6.0 19.7 4.7 4.2 % - Transition to Solvency 11.8 11.4 9.9 8.9 2.6 202% 123% 98% 78% 181% Harel Peer 2 Peer 3 Peer 4 Peer 5 Harel Peer 2 Peer 3
Slide 20: Our Global Partners
OUR GLOBAL PARTNERS @ Swiss Re & Ww ® QBE ronan RHP CHUBB @ HDI ZURICH RS ae aN, GERLING —__—___—C™ ach Intrance Company & CHINA RE Allianz @ ae | dl ea en Ss X STARR puiaL sen aE ae) g@ rer UA NSURANE see 20 Hare
Slide 21: Thank You
THANK YOU 21
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