Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — H1 2022 Earnings Presentation
27 slides from Harel Insurance Investments & Financial Services's earnings presentation, Aug 29, 2022
Slide 1: Summary of Financial Results H1.22
SUMMARY OF FINANCIAL RESULTS For the Period H1.22 | August 29, 2022 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: Harel Insurance Investments and Financial Services group structure
47% 53% Hamburger Family Public Harel Insurance Investments and Financial Services Assets Under Management (AUM) Insurance cic EMI - Ezer Mortgage lsraet Credit insurance Harel Harel Harel Insurance Company [ Company Finance Pension and Insurance Holdings Provident Company toa Gee ‘Anonyme General |
Slide 4: The Big Picture
THE BIG PICTURE Data at June 30, 2022 | NIS billions 8.2 18.7 175% About About About MARKET CAP TOTAL EARNED SOLVENCY At August 28, 2022 PREMIUMS RATIO gross benefit contributions At December 31, 2021 and amounts received for investment contracts About About About Aa2 RATING HAREL INVESTMENTS Over 4
Slide 5: Harel is Number 1!
HAREL IS NUMBER 1! In gross earned premiums, Q2.22 Q2.21 1.5 1.5 1.1 1.5 1.3 1.0 2.4 0.8 0.8 2.8 1.1 0.9 7.8 8.9 benefit contributions and amounts received for investment contracts H1.22 3.5 2.9 2.2 5.5 2.3 2.3 18.7 (NIS billions) H1.21 3.0 2.6 1.9 4.6 1.5 1.5 15.1 Amounts received for investment 20
Slide 6: Increase in AUM and nostro assets since 2010
24.08.22 123 128 55 41 16 363 Increase of 15 351 263% H1.22 121 123 53 39 2021 124 126 53 43 16 362 2020 108 87 44 39 13 291 in AUM and nostro assets since 2010 (NIS billions) 2019 103 76 45 44 15 283 2010 39 12 23 21 2 3 100 INSURANCE PENSION FUNDS PROVIDENT FUNDS MUTUAL FUNDS ETNS PORTFOLIO MANAGE
Slide 7: Comprehensive Income (Loss)
Comprehensive Income (Loss) After Tax COMPREHENSIVE 1,518 INCOME (LOSS) 833 560 306 (110) (436) After tax (NIS millions) and return on equity 2020 2021 H1.21 H1.22 Q2.21 Q2.22 Return on Equity 18% 14% 16% 11% (3%) (20%) 2020 2021 H1.21 H1.22 Q2.21 Q2.22 7
Slide 8: Operating Segments
2,163 598 OPERATING 78 43 SEGMENTS 1,208 535 209 40 Comprehensive income 781 340 (Loss) before tax 275 (NIS millions) 77 35 439 909 30 80 110 13 18 542 43 404 391 86 182 18 (13) (253) (446) (201) (11) (205) (227) (217) (674) 2020 2021 H1.21 H1.22 Q2.21 Q2.22 *Including results of overseas insurance
Slide 9: Life Insurance and Long-Term Savings Segment
LIFE INSURANCE AND LONG-TERM SAVINGS SEGMENT Comprehensive income (Loss) before tax (NIS millions) 909 68 91 542 57 68 404 750 34 37 417 182 19 333 19 20 144 10 31 16 (279) (497) (253) 9 2020 2021 H1.21 H1.22 Q2.21 Q2.22 LIFE INSURANCE PENSION PROVIDENT
Slide 10: Non-Life Insurance Segment
NON-LIFE 343 INSURANCE 53 21 111 SEGMENT 93 53 37 10 69 88 85 Comprehensive income 25 148 (Loss) before tax 43 38 10 2 (NIS millions) 88 119 32 63 50 41 29 4 15 (32) (18) (14) (23) (14) (69) (74) (61) (144) (17) 2020 2021 H1.21 H1.22 Q2.21 Q2.22 COMPULSORY MOTOR MOTOR PROPERTY OTHER PROPERTY BRANCHE
Slide 11: Financial Services Segment
FINANCIAL SERVICES 254 SEGMENT 220 (NIS millions) 120 121 78 62 63 40 35 30 18 18 2020 2021 H1.21 H1.22 Q2.21 Q2.22 REVENUES COMPREHENSIVE INCOME BEFORE TAX 11
Slide 12: Equity and Dividend
EQUITY AND DIVIDEND Dividend distribution Policy 35% 30% of annual profit of of annual profit of Harel Insurance Harel Investments 8.9 8.5 7.8 6.9 5.8 6.2 5.1 5.4 4.5 4.8 Equity 4.2 (NIS billions) 3.5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1.22 Dividend (NIS millions) 106 64 308 320
Slide 13: Harel Insurance Capital Requirements - Solvency
HAREL INSURANCE CAPITAL REQUIREMENTS - SOLVENCY Solvency 175% (NIS billions) Solvency 17.8 116% An economic solvency regime based on Solvency II applies to Harel Insurance, and this pursuant to the implementation provisions published in June 2017 and revised in October 2020 (“Provisions of an Econom
Slide 14: Financial Results | Solvency: Leading the Insurance Sector
Financial Results | Solvency Leading the Insurance Sector December 2021* Solvency Ratio 190% 175% 168% 165% 159% 135% 116% 117% 92% 90% +16% +11% % - YoY Change +16% +11% -12% +1% +1% -2% -4% -1% Harel Phoenix Menora Clal Migdal without transitional measures with transitional measures In 2021 , Hare
Slide 15: Financial Results | Solvency: Leading the Insurance Sector
Financial Results | Solvency Leading the Insurance Sector December 2021* Future Potential Dividend Distribution Basic Tier 1 Capital Value in Force (Over BOD Target) (without transition period impacts) (NIS billion) (NIS billion) 9.3 (NIS billion) 1.4 8.2 7.5 6.6 6.8 6.9 19.6 1.1 6 155% 6.2 0.9 14.8
Slide 16: Financial Results | Solvency: Leading the Insurance Sector
Financial Results | Solvency Leading the Insurance Sector December 2021* VNB to New Business Premiums New Business Annualized Premiums Value of New Business (NIS billion) (NIS million) (NIS billion) 386 1.1 3.73 280 2.73 219 0.8 208 198 2.17 116 181 0.6 1.78 1.50 81 88 72 0.4 0.3 167 164 -12% 127 11
Slide 17: Our Global Partners
OUR GLOBAL PARTNERS @ Swiss Re & Ww ® QBE TOKIO MARINE SRPAN CHUBB @ HDI ZURICH RS 2°. aN, GERLING Tasch Tarun Copan @& CHINA RE A Allianz @ ae | id eile ay SS ; STARR punai SENT & 45) rer ruealiasumaN see
Slide 18: A super-brand.
Harel Insurance and Finance. A super-brand. Q 2 | 2 0 2 2
Slide 19: Harel continues to lead in unaided awareness
Harel continues to lead in unaided awareness 66% 56% 51% 44% Harel 2nd place 3rd place 4th place According to Geocartography Knowledge Group’s Brand Equity Study, May 2022
Slide 20: Harel's brand name strength according to the Geo-Brand index
What’s not new? What’s new? Harel is perceived as Israel’s The most recent study shows a leading insurance company strengthening among our customers and in our GeoBrand index score Harel’s brand name strength according to the Geo-Brand index in the insurance and pension category 24.3 21.1 18.5 15.9
Slide 21: Customers prefer Harel
What’s not new? What’s new? Customers prefer Harel Harel also leads the preferences of other companies’ customers 13% 10% 8% 7% 6% 5% 5% 5% Harel 2nd place 3rd place 4th place May 2022 September 2021 According to Geocartography Knowledge Group’s Brand Equity Study, May 2022
Slide 22: What's new? Harel is No. 1 in overall positive opinion
What’s new? Harel is No. 1 in overall general positive opinion 51% 44% 43% 40% Harel 2nd place 3rd place 4th place According to Geocartography Knowledge Group’s Brand Equity Study, May 2022
Slide 23: Harel is in the lead in every category of customer perception
What’s not new? What’s new? Harel is in the lead in every The positive momentum category of customer perception continues Reputation 20% 19% 16% Confidence and peace of mind Good value for money 10% 7% 0% Harel 2022 13% Professionalism and expertise Tansparency Harel 2021 -10% 6% 13% Reliability 10%
Slide 24: Harel is No. 1 among all insurance and pension companies
Harel is No. 1 Among all insurance and pension companies We are proud to be the only insurance company to make the Globes Top 100 Brand Names list According to the Globes Top 100 Brand Names list
Slide 25: The best, most worthwhile health insurance
41% Harel was ranked The best, most worthwhile health insurance 17.6% Harel leads 11.5% Across all age groups, among men and women, 8.5% secular and traditional, at every level of education and income Harel 2nd place 3rd place 4th place According to a survey conducted by Geocartography for the Israe
Slide 26: Health insurance preference
Health insurance preference 26% 23% 14% 7% 7% 9% 7% 5% Harel 2nd place 3rd place 4th place May 2022 September 2021 According to Geocartography Knowledge Group’s Brand Equity Study, May 2022
Slide 27: You might have insurance, but you don't have...
You might have insurance But you don’t have
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