Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — Investor Presentation (March 2026)
49 slides from Harel Insurance Investments & Financial Services's investor presentation, Mar 26, 2026
Slide 1: Investor Presentation 2025
Investor Presentation 2025 26.3.2026
Slide 2: Agenda
Agenda Key messages Strategic focus and 2028 targets Segments results overview Appendix 2
Slide 3: Key messages
Key messages Strong 2025 results with comprehensive income of about NIS 3 B and 27% ROE, CSM balance continues to grow, reaching NIS 17.2 B 2026 targets already achieved, setting new targets for 2028 Accelerating strategy execution by leveraging Harel’s core strengths and integrating AI to drive sus
Slide 4: 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 A-/Stable Q4.25 2025 Q4.25 2025 31.12.25 ilAAA/Stable Harel Insurance 782 2,954 26% 27% 12.2 Midroog 161% QoQ 82% vs
Slide 5: Continuous growth in Premiums and in AUM
Continuous growth in Premiums and in AUM AUM NIS B Premiums and deposits** NIS B CAGR 2020-2025: 14.9% CAGR 2020-2025: 8.8% 582.0 513.0 54.1 70.3 42.5 45.7 427.7 53.9 7.1 37.5 39.4 3.3 65.1 4.2 363.1 44.9 2.9 6.4 120.6 3.9 39.6 61.3 4 105.9 23.1 26.2 58.5 18.7 22.4 3.2 82.6 21.4 16.5 58.2 19.3 19.3
Slide 6: Increase in comprehensive income and ROE
Increase in comprehensive income and ROE Comprehensive income attributed to shareholders ROE NIS M after tax 2,954 27% 1,619 17% 7% 600 2023 2024 2025 2023 2024 2025 6 6
Slide 7: Comprehensive income by business lines 2025 NIS M
Comprehensive income by business lines 2025 NIS M NIS M 2025 2024 CSM release 1,622 1,595 RA release 343 332 Other* 12 (121) Reinsurance )80( )220( Non-life, net 417 174 Underwriting profit (insurance service result) 2,314 1,760 Adjusted investments and finance income, net 658 637 Operating expenses
Slide 8: Core profit after tax increased by NIS 444 M in 2025
Core profit after tax increased by NIS 444 M in 2025 resulting from increase in profit in all business lines Core profit by business lines 2025 vs 2024 NIS M Core profit after tax and adjusted ROE 2025 vs 2024 NIS M 2024 2025 NIS 587 M increase 2,395 3,592 30% 2,500 in core insurance 2,300 profit 25
Slide 9: New sales of growth products drive increase in CSM
New sales of growth products in life and health drive an increase in accumulated profit balance (CSM) Increase of NIS 1.3 B in net CSM balance since transition Net CSM from growth products summed to NIS 12 B CSM net of reinsurance from life and health insurance NIS B CSM net of reinsurance from life
Slide 10: Growth in new business continues to fuel long term value creation
Growth in new business continues to fuel long term value creation CSM from new sales of growth products is higher About 33% of the CSM balance is expected to be than the CSM released from existing portfolio NIS M released to profit in the next 5 years NIS B 1,707 5.7 5.6 1,622 growth products produc
Slide 11: Agenda
Agenda Key messages Strategic focus and 2028 targets Segments results overview Appendix 11
Slide 12: Delivering faster: Targets achieved ahead of plan
Delivering faster: Targets achieved ahead of plan Core profit attributed to shareholders NIS M after tax Adjusted ROE 22% 2,395 20% 1,951 1,900-2,100 18-19% 1,410 11% 2023 2024 2025 target 2026 2023 2024 2025 target 2026 Premiums and deposits* NIS B AUM NIS B 42.5 45.7 43.8 582 520 39.4 513 428 2023
Slide 13: AI transformation across the organization boosts core operations
AI transformation across the organization boosts core operations • Appointment of a Head of AI reporting directly to the CEO Business • Mapping of core organizational activities • Building an AI Factory focused on Service and Operations \ • AI-driven transformation: AI & IT DATA • Improving producti
Slide 14: Harel 2028
Harel 2028 #1 Operational Excellence Improving insurance profitability Business #2 Leveraging Continue growing IT AI & DATA Existing in profitable products Customers #3 Financial Credit services Revenue Expanding non- Diversification insurance activities Organic growth in existing new activities, fo
Slide 15: 2028 targets
2028 targets Core profit NIS M after tax Adjusted ROE 3,100-3,300 22.2% 22%-23% 2,395 1,951 19.8% 2024 2025 2028 target 2028 יעד 2024 2025 2028 target 2028 יעד Premiums and deposits NIS B AUM NIS B Gross premiums earned, contributions to pension and provident funds and amounts received for Pensi
Slide 16: Increase in dividend payout to 40% in Harel Investments
Increase in dividend payout to 40% in Harel Investments Dividend Policy Update: Dividend in Harel Investments including share repurchase NIS M Including dividend of NIS 530 M for H2.25, distributed in March 2026 45% 40% 1,182 share repurchase > > dividend 926 252 Harel Insurance * Harel Investments
Slide 17: NIS 700-900 M increase in core profit after tax between 2026-2028
NIS 700-900 M increase in core profit after tax between 2026-2028 Increase in core profit 2026-2028 NIS M 200-300 3,100-3,300 500-600 2,395 \ Core profit after Insurance AM, Credit and Equity Core profit after tax 2025 tax 2028 Core profit target is calculated based on nominal risk -free interest ra
Slide 18: Composition of 2028 core profit NIS M
Composition of 2028 core profit NIS M 350-400 4,600-4,800 350-400 550-600 3,350-3,400 3,100-3,300 \ Insurance ביטוח Asset נכסים ניהול אשראי Credit הון Equity Core מס לפניprofit סה"כ Tax מס Coreמס 2028 profit לאחרafter סה"כ Management before tax 2028 tax 2028 Core profit targe
Slide 19: Scaling AM and accelerating credit growth
Scaling AM and accelerating credit growth Core AM profit target NIS M before tax • Pension and provident: continue leveraging economies of scale, Pension funds, provident funds, financial services and investment contracts continued asset growth and profitability driven by operational 550-600 excelle
Slide 20: Profitable growth and operational excellence in insurance
Profitable growth and operational excellence in insurance Core insurance profit target NIS M before tax • Driving growth through a focused expansion of growth products- medical expenses, critical illness, and life-risk products — 3,350-3,400 boosting new business CSM, accelerating CSM release thus 2
Slide 21: Sustained growth in life and health products will support further CSM growth
Sustained growth in life and health products will support further CSM growth CSM target NIS B net • Continued growth in new sales of growth products, supported by Harel’s core strengths is expected to 19.5-20 fuel CSM from new business 17.2 15.9 16.4 • As a result, growth in CSM from new business wi
Slide 22: Leveraging Harel's strengths to drive smart and profitable growth
Leveraging Harel’s strengths to drive smart and profitable growth in growth products in life and health Brand leadership: Israel’s leading insurance brand, Harel’ leadership in growth products is with a proven track record of excellence in translated to substantial value creation health-insurance cu
Slide 23: Harel 2028
Harel 2028 • Substantial activity across all insurance business lines, Harel benefits from solid pension, provident, financial services and credit fundamentals of Israeli • Focused on maintaining leading market positions in products economy with high potential for substantial profitable growth • Lea
Slide 24: Agenda
Agenda Key messages Strategic focus and 2028 targets Segments results overview Appendix 24
Slide 25: Health and Long-term care: increase in comprehensive profit
Health and Long-term care (LTC) NIS 744 M increase in comprehensive profit and NIS 97 M increase in underwriting profit in 2025 Health and LTC: Comprehensive income 2025 NIS M Health and LTC: Comprehensive income Q4.25 NIS M Core profit 1,138 268 1,406 Core profit 174 214 978 )14( 34 248 42 1 171 Un
Slide 26: Growth products in health insurance drive the profit in health
Health and Long-term care (LTC) Growth products in health insurance drive the profit in health Health and LTC: Breakdown of underwriting profit NIS M 978 881 Medical expenses: Results in 2025 were positively impacted 2024 2025 by the continued activity growth. In addition, there was an 487 515 under
Slide 27: Life: increase in comprehensive income and underwriting profit
Life NIS 462 M increase in comprehensive income and NIS 214 increase in underwriting profit in 2025 Life: Comprehensive income 2025 NIS M Life: Comprehensive income Q4.25 NIS M Core profit 1,054 Core profit 255 164 1,218 343 919 )120( 83 426 63 314 )34( Underwriting profit Adjusted net Operating Exc
Slide 28: Underwriting improvement in risk products in life
Life Underwriting improvement in risk products, which are the main component of underwriting profit in life Life: Breakdown of underwriting profit NIS M 919 2024 2025 705 651 • Results were positively affected by increase in activity of life risks products 440 219 226 • The increase in underwriting
Slide 29: Non-life: increase in underwriting profit and comprehensive income
Non-life Increase in underwriting profit and in comprehensive income in Q4.25 and 2025 Non-life: Comprehensive income 2025 NIS M Non-Life: comprehensive income Q4.25 NIS M Core profit 554 1,132 586 )8( Core profit 125 148 273 229 417 )60( 51 91 )17( Underwriting profit Adjusted net Operating Excess
Slide 30: Improvement in underwriting profit, mostly in motor property
Non-life Improvement in underwriting profit in Q4.25 and in 2025, mostly in motor property Non-life: Breakdown of underwriting profit NIS M Compulsory motor: Improvement in the results in 2025 was 417 339 2024 2025 driven by change in the portfolio mix and by lower negative 320 development in respec
Slide 31: Asset Management: AUM growth continues
Asset Management AUM growth continues, increase in comprehensive income AM: Breakdown of comprehensive income NIS M before tax 2024 2025 351 Pension and provident: Results were affected by 278 an increase in management fees driven by AUM growth, partially offset by an increase in marketing and other
Slide 32: Continue to scale the credit activity
Credit Continue to scale the credit activity Profitability was affected by continuous growth in the credit Comprehensive income excluding the impact of changes in portfolio fair value NIS M before tax Additionally, the profit in the period was affected by changes in the 2024 2025 fair value of the f
Slide 33: Agenda
Agenda Key messages Strategic focus and 2028 targets Segments results overview Appendix 33
Slide 34: A decrease in interest rate is expected to have a positive impact on 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 NIS
Slide 35: Harel Insurance: Nostro portfolio breakdown and return
Harel Insurance: Nostro portfolio breakdown and return Breakdown of Nostro portfolio by asset classes (31.12.25) Nominal Nostro return 7.6% Real estate (including own use) 5.9% Investments funds, Infrastructure and PE 12.5% Credit and Corporate 8.7% bonds Tradable equities 39.8 6.9% 30.5% 2.0% 1.6%
Slide 36: Harel Insurance: Solid capitalization
Harel Insurance: Solid capitalization • Solvency Capital Ratio of Harel Insurance as of June 30, 2025 with Solvency Capital Ratio at Harel Insurance transitional measures was 183%, and capital surplus was NIS 8.4 B • Solvency Capital Ratio of Harel Insurance as of June 30, 2025 without transitional
Slide 37: CSM roll forward during 2025
Growth in new business continues to fuel long term value creation CSM roll forward during 2025 NIS M 319 1,707 17,177 543 )129( 16,359 (1,242) 12.0 (380) 11.3 )1,622( CSM generated from new sales exceeds the CSM released to the P&L, resulting in an increase in 5.1 \ the total CSM balance 5.2 CSM, ne
Slide 38: 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 31.12.2025 Financial Liabilities Harel Investments Solo 31.12.2024 31.12.2025 Harel Investments Solo 1,164 1,067 Financial liabilities (1,163) (1,067) Harel Insurance Tier 2 5,4
Slide 39: Comprehensive income by business lines Q4.25 NIS M
Comprehensive income by business lines Q4.25 NIS M NIS M Q4.25 Q4.24 CSM release 402 400 RA release 103 84 Other* 3 (83) Reinsurance (23) (48) Non-life, net 91 11 Underwriting profit (insurance service result) 576 364 Adjusted investments and finance income, net 156 174 Operating expenses (50) )80)
Slide 40: Analysis of total insurance profit Q4.25 and 2025 NIS M
Analysis of total insurance profit Q4.25 and 2025 NIS M Total insurance profit 2025 breakdown NIS M Total insurance profit Q4.25 breakdown NIS M Core profit 2,778 Core profit 986 3,756 682 )8( 658 265 947 2,314 )194( 156 576 )50( 1 1 Underwriting Adjusted net Operating Excess Special Total Underwrit
Slide 41: Increase of NIS 212 M in underwriting profit in Q4.25
Increase of NIS 212 M in underwriting profit in Q4.25 Total insurance profit breakdown Q4.25 NIS M 156 265 947 576 )50( 1 •1 Underwriting profit – insurance service result: • Run-off products: Saving products - Yield guaranteed and profit-participating and Long- Composition of underwriting profit (i
Slide 42: Increase of NIS 554 M in underwriting profit in 2025
Increase of NIS 554 M in underwriting profit in 2025 Total insurance profit breakdown 2025 NIS M 2,314 658 986 )8( 3,756 )194( 1 1 Underwriting profit – insurance service result: Run-off products: Saving products - Yield • guaranteed and profit-participating and Long- Composition of underwriting pro
Slide 43: Lower investment income and modest negative impact of interest rate in Q4.25
Lower investment income and modest negative net impact of decrease of the interest rate curve in Q4.25 compared with Q4.24 Total insurance profit breakdown Q4.25 NIS M 156 265 947 576 2 Net investments and finance income (loss) )50( • Investment income from nostro portfolio • Nostro returns during Q
Slide 44: Higher investment income and moderate negative impact of interest rate in 2025
Higher investment income and moderate negative impact of changes in interest rate curve in 2025 compared with 2024 Total insurance profit breakdown 2025 NIS M 658 986 3,756 2,314 )8( )194( 2 Net investments and finance income (loss) • Investment income from nostro portfolio • Nostro returns during t
Slide 45: Population growth supports demand for saving and protection products
Population growth supports demand growth for saving and protection products Maintaining market share and growing in new pension funds deposits Total new pension funds deposits and Harel’s market share NIS B 82.3 Other companies 74.9 197% 67.4 Harel 200% Population is expected to grow 49.3 58.5 43.2
Slide 46: Definitions
Definitions • Core Profit Calculation Principles: (a) The adjusted profit from investments and financing, net, is calculated based on the nominal risk-free interest rate at the beginning of the period, with the addition of a 2% spread, which reflects the composition of the Company’s nostro investmen
Slide 47: Our Global Partners
Our Global Partners @ Swiss Re CHUBB ®& CHINA RE Allianz @) STARR INSURANCE COMPANIE 47 & QBE GERLING AYA + SS ol all p. 2 DUBAI INSURANC & TOKIO MARINE @ ZURICH Zarich Insurance Company wd HARTFORD @ | Berkley INSURANCE
Slide 48: 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 49: Thank You
Thank You For more information: https://pr.harel-group.co.il/
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