Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — FY2024 Earnings Presentation
34 slides from Harel Insurance Investments & Financial Services's earnings presentation, Mar 26, 2025
Slide 1: Summary of Financial Results 2024
Summary of Financial Results 2024 March 26, 2025
Slide 2: Agenda
Agenda Key messages Strategy Financial overview Summary Appendix 2
Slide 3: Largest insurance and finance group in Israel
Harel Insurance Investments and Financial Services Largest insurance and finance group in Israel S&P Maalot Comprehensive Income ROE Shareholders’ Equity To shareholders, NIS M NIS B ilAA+/Stable 1,133 1,623 13% 17% 9.1 9.9 Harel Insurance 89% YoY 7% 2023 2024 2024 2024 2024 31.12.24 31.12.24 Midroo
Slide 4: Key Messages
Harel discloses for the first time full year 2024 comprehensive Publication of full year income after tax according to IFRS17 - NIS 1.6 B and ROE is 17% 2024 according to IFRS17 compared with 2024 comprehensive income after tax of NIS 1.1 B and ROE of 13% according to IFRS4 Growth in CSM during The
Slide 5: Transition to IFRS17: Impact on full year 2024
Transition to IFRS17: Impact on full year 2024 Comprehensive income by segments NIS M Comprehensive Income and ROE NIS B Insurance IFRS4 IFRS17 Comp. income after tax 17% +648 +490 18% 1.8 16% 1.6 2,389 14% 1.4 13% 1.6 12% 1.2 1,926 1,640 1,623 1.1 10% 1.0 1,278 8% 0.8 1,133 6% 0.6 4% 0.4 277 277 22
Slide 6: Transition to IFRS17: Impact on 2026 targets
Transition to IFRS17: Impact on 2026 targets Comprehensive Income after tax 2026 IFRS4 NIS M As presented in the Strategy Presentation on (770) April 2, 2024, 13.5% ROE Comprehensive Income after tax 2026 IFRS17 NIS M/B 2.9-3.2 The impact on 2026 targets is attributable to the 2.0-2.3 1.9-2.1 effect
Slide 7: Agenda
Agenda Key messages Strategy Financial overview Summary Appendix 7
Slide 8: The largest company in terms of premiums and deposits
The largest company in terms of premiums and deposits Premiums and deposits* NIS B 7.8% Pension and Provident fund contributions- 42.5 substantial growth engine CAGR 2018-2024: 5.4% 39.4 37.5 4.2 2.9 33.0 3.9 29.9 3.9 Decline in Long term care premiums is driven by 2.5 termination of Clalit HMO 18.7
Slide 9: Continuous growth in AUM
Continuous growth in AUM AUM NIS B 75% 509.5 CAGR 2018-2024: 13.8% 52.8 427.7 63.0 44.9 362.3 363.1 6.1 40.5 39.6 61.3 105.9 291.2 4 62.2 58.5 35.8 82.6 21.4 2.1 3.2 54.6 58.9 58.2 19.3 1.4 19.3 19.3 52.1 184.9 16.4 150.6 126.4 128.2 86.6 52.9 56.1 65.0 75.4 44.3 31.12.20 31.12.21 31.12.22 31.12.23
Slide 10: Strategic Focus
Strategic Focus Improving Diversifying Profitability and Revenues Leveraging scale for material and permanent improvement of insurance profitability and revenue diversification 10
Slide 11: Strategy
1 # Operational Excellence Improving insurance profitability Strategy #2 Leveraging Continue growing Existing in profitable products Implementation #3 Customers Revenue Expanding non- Diversification insurance activities 11
Slide 12: Investment in infrastructure allows AI/GenAI adoption
Investment in infrastructure allows AI/GenAI adoption Digital Data Infrastructure and Information Security Increase in operational accuracy ML/DL Generative AI Data Lake Enhancing relationship with clients Powered by Azure Open AI Middleware | API Generative AI Core Systems AI Co- Pilot Finance Life
Slide 13: Continuous growth in comprehensive income and ROE
Continuous growth in comprehensive income and ROE Comprehensive Income attributed to shareholders ROE NIS M after tax 1,623 17% 13% 1,133 7% 600 (77) (1%) 2022 2023 2024 2024 IFRS17 2022 2023 2024 2024 IFRS17 Application of the Standard may also be subject to changes or adjustments following clarifi
Slide 14: Agenda
Agenda Key messages Strategy Financial overview Summary Appendix 14
Slide 15: Composition of comprehensive income 2024 NIS M
Composition of comprehensive income 2024 NIS M 1,148 293 127 Underwriting profit Asset management Credit (Insurance) (82) 1,613 (493) (14) 1,640 1,147 1,133 Life Health Non-life Investment Provident Pension Finance Credit Equity and Adjusted Investment Interest Special Comprehensive Tax Minority con
Slide 16: 2024: Growth in adjusted profit vs 2023
2024: Growth in adjusted profit vs 2023 Underwriting Improvement 2024 vs 2023 Change in adjusted profit in 2024 vs 2023 NIS M before tax NIS M 2024 2023 change Health 631 386 245 Life 244 305 )61( Non-life 273 284 (11) Total 1,148 975 173 60 24 (54) 202 173 1,613 1,410 2023 Adjusted profit Underwrit
Slide 17: Continue leading the Health segment, additional underwriting improvement
Health: Comp. Income before tax Continue leading the Health segment, additional underwriting improvement Health: Change in comprehensive income 2024 vs 2023 NIS M before tax Change in Comprehensive Income before tax: +344 • Growth of underwriting profit mainly in long-term health and group LTC • Rea
Slide 18: Improvement in LT Health and in Group LTC
Health: Underwriting Improvement in LT Health and in Group LTC NIS 245 M underwriting improvement: Health: Breakdown of underwriting profit NIS M Long-term health: Underwriting improvement in cover for transplants, ambulatory care and personal accidents due to fewer claims and a decrease in claim am
Slide 19: Positive impact of the investment income
Life: Comp. Income before tax Positive impact of the investment income Life: Change in comprehensive income 2024 vs 2023 NIS M before tax Change in Comprehensive Income before tax: +226 • Decrease of the underwriting results due to increase in the number of claims in cover for work disability and ri
Slide 20: War impact on risk profitability and increase in P.H.I claims
Life: Underwriting War impact on risk profitability and increase in P.H.I claims Life: Breakdown of underwriting profit NIS M NIS 61 M decrease in underwriting profit: • Increase in the number of claims in risk of death as a result of the War. In 2024, the effect of the War +149 (61) amounted to NIS
Slide 21: Increase in comprehensive income supported by investment income
Non-life: Comp. Income before tax Increase in comprehensive income supported by investment income Non-life: Change in comprehensive income 2024 vs 2023 NIS M before tax Change in Comprehensive Income before tax +202 • Real, positive Nostro yield was higher in 2024 than in the corresponding period la
Slide 22: Non-life: Underwriting
Non-life: Underwriting Underwriting improvement, mainly in motor property and other property and liabilities NIS 11 M decrease in underwriting profit: Non-life: Breakdown of underwriting profit NIS M (11) Compulsory motor: Decline in underwriting result due to negative +374 development in previous y
Slide 23: Profit increases due to AUM growth and leverage of scale
AM: Adjusted profit Profit increases due to AUM growth and leverage of scale Change in adjusted profit*: AM: Breakdown of adjusted profit NIS M before tax 293 Pension and provident: 23% increase in adjusted 223 233 profit in pension and provident due to the growth of management fees driven by increa
Slide 24: Diverse and growing credit activity, Gamla acquisition completed
Credit: Comp. income before tax Diverse and growing credit activity, Gamla acquisition completed –will be evident starting from Q1.25 Comprehensive income NIS M before tax 127 103 Change in Comprehensive Income: • The increase in comprehensive income in 2024 64 compared with 2023 is due to credit po
Slide 25: Harel Insurance: Solvency Capital Ratio increased to 185%
Harel Insurance: Solvency Capital Ratio increased to 185% as of 30.6.2024 Solvency Capital Ratio at Harel Insurance With transitional measures Without transitional measures The Solvency Capital Ratio of Harel Insurance at June 30, 2024 without transitional measures increased to 167% and capital surp
Slide 26: Harel Insurance: Nostro portfolio breakdown and return
Harel Insurance: Nostro portfolio breakdown and return Breakdown of Nostro portfolio by asset classes (31.12.24) Real Nostro return Real estate (including own use) 3.7% 2.5% Investment funds, 2.1% Infrastructure and PE 14.9% Credit and Corporate 0.7% 0.7% 10.0% bonds Tradable equities 35.8 4.1% 5.4%
Slide 27: Harel Investments: Financial stability and consistent dividend policy
Harel Investments: Financial stability and consistent dividend policy Shareholders’ Equity NIS B Dividend in Harel Investments including share repurchase NIS M 8.9 8.9 9.1 8.3 share repurchase 926 7.8 dividend 6.9 6.2 9.9 474 IFRS 17 397 800 221 236 COVID 19 400 357 67 214 236 0 2018 2019 2020 2021
Slide 28: Agenda
Agenda Key messages Strategy Financial overview Summary Appendix 28
Slide 29: Continue to implement the strategic plan
Continue to implement the strategic plan Comprehensive Income attributed to shareholders ROE NIS M/B after tax 1.9-2.1 18%-19% 17% 1,623 13% 1,133 7% 600 (77) (1%) 2022 2023 2024 2024 IFRS17 2026 IFRS17 2022 2023 2024 2024 IFRS17 2026 IFRS17 Application of the Standard may also be subject to changes
Slide 30: Thank You
Thank You For more information: https://pr.harel-group.co.il/
Slide 31: Agenda
Agenda Key messages Strategy Financial overview Summary Appendix 31
Slide 32: Calculation Principals
Calculation Principals Insurance Asset Management Credit and Other Hamazpen Pension Funds Development Property Financing Life Insurance Provident Funds Harel 60+ Health Insurance Finance Financial Guarantees Non-life Insurance Investment Contracts Agencies Equity Underwriting Profit: profit from the
Slide 33: Our Global Partners
Our Global Partners @ Swiss Re CHUBB ®& CHINA RE Allianz @) INSURANCE COMPANIES & QBE GERLING AYA + SS) pol all «ps DUBAI INSURANC & TOKIO MARINE @ ZURICH Zarich Insurance Company wd HARTFORD | Berkley {5 SUKOON. 2 oftant beazley
Slide 34: 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
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