Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — FY2020 Earnings Presentation
34 slides from Harel Insurance Investments & Financial Services's earnings presentation, Mar 21, 2021
Slide 1: Summary of Financial Results for the Year 2020
SUMMARY OF FINANCIAL RESULTS FOR THE YEAR 2020 I MARCH 21, 2021
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: Largest Insurance Company in Israel
DATA CORRECT TO DECEMBER 31, 2020 (NIS BILLION) LARGEST INSURANCE COMPANY IN ISRAEL* About 6.8 About 29.9 About 170% Market cap Total earned premiums, gross, Solvency ratio – in accordance (at March 17, 2021) benefit contributions and amounts with the transitional Provisions received for investment
Slide 4: Harel - 1st in Gross Premiums Earned and Benefit Contributions
DESPITE THE COVID-19 CRISIS… ST HAREL - 1 IN GROSS PREMIUMS EARNEDAND BENEFIT CONTRIBUTIONS (NIS BILLION) 6.1 5 3.9 9.2 3.2 27.4 6.3 4.9 3.9 8.9 3.5 27.5 5.6 4.7 3.9 8.3 3.6 26.1 5.1 4.4 3.6 7.2 3.3 23.6 Life assurance Health insurance Non-life insurance* Pension fund contributions Provident fund co
Slide 5: 191% Increase in AUM and Nostro Assets Over the Last Ten Years
191% INCREASE IN AUM AND NOSTRO ASSETS OVER THE LAST TEN YEARS (NIS BILLION) 108 87 44 39 13 291 103 76 45 44 15 283 87 62 39 34 13 235 81 55 37 19 15 13 220 39 12 23 21 23 100 INSURANCE PENSION FUNDS PROVIDENT FUNDS MUTUAL FUNDS ETNS PORTFOLIO MANAGEMENT AND OTHER* * The data include financial asse
Slide 6: Comprehensive Income After Tax and ROE
COMPREHENSIVE INCOME AFTER TAX AND ROE (IN ANNUAL TERMS) (NIS MILLION) COMPREHENSIVE INCOME AFTER TAX 978 870 834 528 RETURN ON EQUITY – 13% (AVG) 16% 15% 11% 9% * Based on the circular published on March 29, 2020, in connection with an assessment of the adequacy of the reserves, the grouping level
Slide 7: Operating Segments Comprehensive Income Before Tax
OPERATING SEGMENTS COMPREHENSIVE INCOME BEFORE TAX (NIS MILLION) 1,365 1,271 468 1,208 285 29 209 34 40 211 719 577 340 110 34 87 77 289 631 553 542 334 (25) (262) LONG-TERM SAVINGS HEALTH NON-LIFE INSURANCE* FINANCE CAPITAL AND OTHER * Including results for the insurance companies overseas segment
Slide 8: Life Insurance and Long-Term Savings Segment Comprehensive Income
LIFE INSURANCE AND LONG- TERM SAVINGS SEGMENT COMPREHENSIVE INCOME BEFORE TAX (NIS MILLION) 631 39 553 542 69 60 57 74 68 334 46 523 81 419 417 207 LIFE INSURANCE PENSION PROVIDENT 8
Slide 9: Non-Life Insurance Segment Comprehensive Income
NON-LIFE INSURANCE SEGMENT* COMPREHENSIVE INCOME BEFORE TAX (NIS MILLION) 558 68 28 113 343 53 205 82 159 21 93 56 31 15 92 88 104 190 93 88 52 (22) (54) (80) COMPULSORY MOTOR MOTOR PROPERTY LIABILITIES & OTHER BRANCHES PROPERTY & OTHER BRANCHES MORTAGE INSURANCE * The non-life insurance segment doe
Slide 10: Financial Services Segment
FINANCIAL SERVICES SEGMENT (NIS MILLION) 220 202 209 207 34 34 40 29 REVENUES COMPREHENSIVE INCOME BEFORE TAX * Comprehensive income before tax Includes a write-down of the value of the portfolio management activity by NIS 10 million before tax for the year 2020 10
Slide 11: Equity and Dividend
EQUITY AND DIVIDEND (NIS MILLION) DIVIDEND DISTRIBUTION POLICY 30% of annual comprehensive income of Harel Investments 35% of annual comprehensive income of Harel Insurance 121% 7,754 6,920 6,166 5,824 5,095 5,402 4,512 4,842 4,152 3,503 DIVIDEND 106 64 308 320 235 171 461 214 236 - 257* 2,372 DIVID
Slide 12: Harel Insurance Capital Requirements – Solvency
HAREL INSURANCE CAPITAL REQUIREMENTS – SOLVENCY (NIS BILLION) • On October 14, 2020, the Commissioner published an amendment to the circular SOLVENCY concerning implementation of an economic solvency regime for insurance companies RATIO 170% SOLVENCY based on Solvency II (“the New Solvency Circular”
Slide 13: Material Events in the Reporting Period: COVID-19
MATERIAL EVENTS IN THE REPORTING PERIOD OUTBREAK AND SPREAD OF COVID-19 WORLDWIDE IN 2020 13
Slide 14: COVID-19 Crisis – The Group's Ongoing Activity
COVID-19 CRISIS – THE GROUP’S ONGOING ACTIVITY Limiting work in the Company’s offices in accordance At the date of publication of the report, most of the with the instructions and recommendations Company’s employees have returned to regular published by the Ministry of Health from time to activity i
Slide 15: Effect on the Group's Sales
EFFECT ON THE GROUP’S SALES A slight decrease in the sale of new policies in Sales in the motor insurance, homeowners and the long-term savings sectors compared with business premises sectors were not affected and the volume of sales typical of these sectors in even increased compared with the corre
Slide 16: Harel: An Anchor of Stability
HAREL AN ANCHOR OF STABILITY 16
Slide 17: Our Global Partners
OUR GLOBAL PARTNERS 2 2 8 & # @ ZURICH pgs © QBE JAPAN CHINA TAIPING rsa? HDI ud 5 G E RLI NG HARTFORD Specialty Insurance TOKIO MARINE Allianz @i) CHUBB @ SwissRe = “suntas
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Slide 19: Strong Foundations
STRONG FOUNDATIONS 19
Slide 20: Assets, Premiums & Capital
ASSETS, PREMIUMS AND INVESTMENTS ORGANIZATION TECHNOLOGY AGENTS STRONG FOUNDATIONS CUSTOMERS CAPITAL & PERSONNEL ASSETS, PREMIUMS & CAPITAL Growth of assets, highest in premiums, capital surplus SOLVENCY RATIO SOLVENCY 13 291 170% 108 87 44 39 RATIO 15.4 113% 12.4 6.1 5.0 3.9 9.2 3.2 27.4 103 76 45
Slide 21: Investments
ASSETS, PREMIUMS AND INVESTMENTS ORGANIZATION TECHNOLOGY AGENTS STRONG FOUNDATIONS CUSTOMERS CAPITAL & PERSONNEL INVESTMENTS 1 Leading a syndication network 2 Diversifying the alternative investment portfolio – allocating an additional $100M (USD) 3 Expanding our investments in non-marketable assets
Slide 22: Organization & Personnel
ASSETS, PREMIUMS AND INVESTMENTS ORGANIZATION TECHNOLOGY AGENTS STRONG FOUNDATIONS CUSTOMERS CAPITAL & PERSONNEL ORGANIZATION & PERSONNEL Reinforcing Senior Strengthening the Customer Establishing a Digital Strategy Management Service Group Group Tomer Goldberg – head of Strategic Advanced service s
Slide 23: Technology
ASSETS, PREMIUMS AND INVESTMENTS ORGANIZATION TECHNOLOGY AGENTS STRONG FOUNDATIONS CUSTOMERS CAPITAL & PERSONNEL TECHNOLOGY Implementation of the world's most advanced CRM system (sales, marketing and service) 1 Harel is the first company in Israel to assimilate the fully implement Salesforce 2 Furt
Slide 24: Customers
ASSETS, PREMIUMS AND INVESTMENTS ORGANIZATION TECHNOLOGY CUSTOMERS AGENTS STRONG FOUNDATIONS CAPITAL & PERSONNEL CUSTOMERS 3.34 MILLION CUSTOMERS (2% GROWTH) WON SELECTED TENDERS: עובדי מדינה 24
Slide 25: Agents
ASSETS, PREMIUMS AND INVESTMENTS ORGANIZATION TECHNOLOGY CUSTOMERS AGENTS STRONG FOUNDATIONS CAPITAL & PERSONNEL AGENTS Direct sale to Salesforce Optimum Optimum Health customers digital Sales Group infrastructure enrollments Tariffs Benefits Underwriting Production New platform for agents’ use Opti
Slide 26: Customer Centric Strategy - First and Foremost
CUSTOMER CENTRIC STRATEGY - FIRST AND FOREMOST 26
Slide 27: Digital Assets
CUSTOMER CENTRIC STRATEGY- DIGITAL NEW AREAS OF DIGITAL CONTENT NEW CORPORATE ASSETS ACTIVITY PROCESSES ASSET PRODUCTS FIRST AND FOREMOST RESPONSIBILITY STRATEGY DIGITAL ASSETS LAUNCHING THE “ELLA” BOT HAREL SWITCH APP HAREL TRAVEL INSURANCE APP Based on IBM’s Watson system, Ella is a PPD = PAY PER
Slide 28: New Areas of Activity
CUSTOMER CENTRIC STRATEGY- DIGITAL NEW AREAS OF DIGITAL CONTENT NEW CORPORATE ASSETS ACTIVITY PROCESSES ASSET PRODUCTS FIRST AND FOREMOST RESPONSIBILITY STRATEGY NEW AREAS OF ACTIVITY EMBARKING ON NEW AREAS OF ACTIVITY DURING THE COVID-19 PANDEMIC: HAREL 60+ LTD. Setting up a designated company to m
Slide 29: Digital Processes
CUSTOMER CENTRIC STRATEGY- DIGITAL NEW AREAS OF DIGITAL CONTENT NEW CORPORATE ASSETS ACTIVITY PROCESSES ASSET PRODUCTS FIRST AND FOREMOST RESPONSIBILITY STRATEGY DIGITAL PROCESSES DEPOSIT / WITHDRAWAL / RENEWAL CLAIMS ENROLLMENT Collection from Withdrawal from long-term savings an education fund Mot
Slide 30: To Be Continued…
CUSTOMER CENTRIC STRATEGY- DIGITAL NEW AREAS OF DIGITAL CONTENT NEW CORPORATE ASSETS ACTIVITY PROCESSES ASSET PRODUCTS FIRST AND FOREMOST RESPONSIBILITY STRATEGY CONTENT ASSET STRATEGY FIRST COMPANY WITH FIRST COMPANY TO A TELEGRAM CHANNEL LAUNCH A PODCAST TO BE CONTINUED… 30
Slide 31: Corporate Responsibility
CUSTOMER CENTRIC STRATEGY- DIGITAL NEW AREAS OF DIGITAL CONTENT NEW CORPORATE ASSETS ACTIVITY PROCESSES ASSET PRODUCTS FIRST AND FOREMOST RESPONSIBILITY STRATEGY CORPORATE RESPONSIBILITY Eleventh year in a row listed in the Rapid response to COVID-19: Chosen as one of the 500 leading, Ministry of En
Slide 32: Corporate Responsibility
CUSTOMER CENTRIC STRATEGY- DIGITAL NEW AREAS OF DIGITAL CONTENT NEW CORPORATE ASSETS ACTIVITY PROCESSES ASSET PRODUCTS FIRST AND FOREMOST RESPONSIBILITY STRATEGY CORPORATE RESPONSIBILITY RECEIVED PLATINUM PLUS RANKING FOR SIXTH YEAR IN A ROW CONTRIBUTING TO THE COMMUNITY 32
Slide 33: New Products
CUSTOMER CENTRIC STRATEGY- DIGITAL NEW AREAS OF DIGITAL CONTENT NEW CORPORATE ASSETS ACTIVITY PROCESSES ASSET PRODUCTS FIRST AND FOREMOST RESPONSIBILITY STRATEGY NEW PRODUCTS SPECIALIST NETWORK – TRAVEL INSURANCE CHAT BOT TESTING FOR COVID-19 AT LAUNCH OF WOMEN'S HEALTH EXPANDED TO 700 DOCTORS HOME
Slide 34: Thank You!
THANK YOU! 33
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