Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — Q1 2026 Earnings Presentation
34 slides from Harel Insurance Investments & Financial Services's earnings presentation, May 27, 2026
Slide 1: Investor Presentation Q1.2026
Investor Presentation Q1.2026 27.05.2026
Slide 2: Agenda
Agenda Key messages Results overview Strategy Appendix 2
Slide 3: Key messages
Key messages Profitability: Q1.26 profit was NIS 562M, up 3.5% QoQ, driven by increase in profit in non-life, asset management, credit and investment gains, partially offset by decline in profit in life Growth: 1. Continue to generate substantial value from new business: Q1.26 new CSM reached NIS 51
Slide 4: Largest insurance and finance group in Israel
Harel Insurance Investments and Financial Services Largest insurance and finance group in Israel Expected to join MSCI Israel Comprehensive Income ROE Shareholders’ Equity Effective 29.5.2026 To shareholders, NIS M NIS B S&P Maalot Q1.26 Q1.26 31.3.26 A-/Stable 562 18.5% 12.2 ilAAA/Stable Harel Insu
Slide 5: Comprehensive income, core profits and ROE
Comprehensive income, core profits and ROE Comprehensive income attributed to shareholders ROE NIS M after tax 2,954 27% 22% 18.5% 543 562 2025 Q1.25 Q1.26 2025 Q1.25 Q1.26 5 ROE is calculated based average balance of equity, which amounted at NIS 10.2 B in Q1.25 and at NIS 12.2 B in Q1.26
Slide 6: 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% 45.7 582.0 595.0 42.5 3.3 39.4 513.0 54.1 54.4 4.2 2.9 70.3 69.7 427.7 53.9 7.1 8.1 65.1 26.2 44.9 6.4 120.6 126.8 18.7 22.4 61.3 105.9 4 23.1 23.2 18.2% 82.6 21.4 19.3 5.0 12.
Slide 7: Comprehensive income by business lines Q1.2026
Comprehensive income by business lines Q1.2026 NIS M NIS M Q1.26 Q1.25 CSM release 411 400 RA release 71 82 Other* (119) 34 Reinsurance 26 )42( Non-life, net 125 91 Underwriting profit (insurance service result) 514** 565 Adjusted investments and finance income, net 154 164 Operating expenses (43) )
Slide 8: Increase in non-life, AM and credit core profits in Q1.26
Increase in non-life, AM and credit core profits in Q1.26 Core profit by business lines Q1.26 vs Q1.25 NIS M Q1.25 Q1.26 848 833 685 625 580 559 291 256 254 213 138 158 97 64 51 61 48 50 Health Life Non-life Total insurance AM Credit Equity Core profit before Core profit after tax profit tax to the
Slide 9: Growth in new business in Q1.26 continues to fuel long term value creation
Growth in new business in Q1.26 continues to fuel long term value creation 660 CSM new business in Q1.26 is higher than the .. and higher than CSM new business in Q1.25 NIS M CSM release NIS M 514 514 411 409 327 84 CSM Release CSM New Business Growth CSM New Business CSM New Business existing book
Slide 10: Increase in net CSM balance, thanks to increase in sales of growth products
Increase in net CSM balance, thanks to increase in sales of growth products in life and health CSM roll forward during Q1.26 NIS M 47 514 17,469 146 … (327) )4( (84) )411( 12.2 12.0 CSM generated from new sales exceeds the CSM released to the P&L, resulting in an increase in 5.2 \ the total CSM bala
Slide 11: Growth products comprise most of the CSM balance
Growth products comprise most of the CSM balance, third of the CSM balance to be released to profit in 5 years About 33% of the CSM balance is expected to be Net CSM from growth products summed to NIS 12.2 B released to profit in the next 5 years NIS B CSM net of reinsurance from life and health ins
Slide 12: Agenda
Agenda Key messages Results overview Strategy Appendix 12
Slide 13: Health and LTC: Increase in comprehensive profit in Q1.26
Health and Long-term care (LTC) Increase in comprehensive profit in Q1.26, positive impact of yield curve increase Health and LTC: Comprehensive income Q1.26 NIS M before tax 92 327 )19( 42 1 254 211 Underwriting profit* Adjusted net Operating Excess investment Special items Comprehensive expenses C
Slide 14: Lower travel insurance activity impacted the decline in underwriting profit
Health and Long-term care (LTC) Lower travel insurance activity impacted the decline in underwriting profit Health and LTC: Breakdown of underwriting profit NIS M Medical expenses: Results in Q1.26 were positively impacted by continued activity growth, leading to higher CSM release. In addition, gro
Slide 15: Life: Decline in Q1.26 comprehensive profit
Life Decline in Q1.26 comprehensive profit is driven by higher yield curve and lower underwriting profit Life: Comprehensive income Q1.26 NIS M before tax 63 213 178 )28( 24 )189( Underwriting profit Adjusted net Operating Excess investment Comprehensive (insurance service investments and expenses C
Slide 16: Underwriting profit decline due to a statistical increase in life risk claims
Life Underwriting profit decline due to a statistical increase in life risk claims Life: Breakdown of underwriting profit NIS M Q1.25 Q1.26 258 • Underwriting results in Q1.26 were positively impacted by 201 178 continued growth in life risk products, leading to higher 131 CSM release 45 39 12 8 • I
Slide 17: Non-life: Increase in underwriting and comprehensive profit
Non-life Increase in underwriting and in comprehensive profit in Q1.26 Non-life: Comprehensive income Q1.26 NIS M before tax 144 300 )2( Q1.26 Q1.25 change Property and liabilities 160 105 55 50 158 Motor property 58 41 17 125 )17( Compulsory motor 87 42 45 Insurance overseas (5) 1 (6) Total 300 189
Slide 18: Improvement in underwriting profit in non-life in Q1.26, mostly in motor
Non-life Improvement in underwriting profit in non-life in Q1.26, mostly in motor Non-life: Breakdown of underwriting profit NIS M Compulsory motor: Results in Q1.26 were mostly impacted by a positive development in reinsurance in respect of prior Q1.25 Q1.26 125 years claims 91 Motor property: Impr
Slide 19: Asset Management: AUM growth continues
Asset Management AUM growth continues, increase in comprehensive profit AM: Breakdown of comprehensive income NIS M before tax Q1.25 Q1.26 93 Pension and provident: Results were affected by 60 an increase in management fees driven by AUM 44 growth, partially offset by an increase in marketing 23 25
Slide 20: Credit: Continue to scale the credit activity, focus on mortgages
Credit Continue to scale the credit activity, focus on mortgages Profitability in the quarter was affected by continuous growth in the credit Comprehensive income excluding the impact of changes in portfolio in mortgages, development property financing and in credit to medium businesses fair value N
Slide 21: Harel Investments: financial resilience
Harel Investments: financial resilience Dividend Policy: Dividend in Harel Investments including share repurchase NIS M 45% 40% 1,182 share repurchase > > dividend 926 252 126 Harel Insurance * Harel Investments 474 397 930 74 800 40 357 400 67 67 2021 2022 2023 2024 2025 Harel Investments dividend
Slide 22: Harel Insurance: Solvency Capital Ratio is 165% as of 31.12.25
Harel Insurance: Solvency Capital Ratio is 165% as of 31.12.25 Solvency Capital Ratio at Harel Insurance • Solvency Capital Ratio of Harel Insurance as of December 31, 2025 without transitional measures was 148%, and capital surplus was NIS 5.6 B, increase of NIS 0.7 B in 2025 With transitional meas
Slide 23: Agenda
Agenda Key messages Results overview Strategy Appendix 23
Slide 24: Reminder: 2028 targets
Reminder: 2028 targets Core profit NIS M after tax Adjusted ROE 3,100-3,300 22.2% 22%-23% 19.8% 2,395 1,951 2024 2025 2028 target 2028 יעד 2024 2025 2028 2028 target יעד Premiums and deposits NIS B AUM NIS B Gross premiums earned, contributions to pension and provident funds and amounts received
Slide 25: Strategy implementation
Strategy implementation Core profit NIS M after tax Adjusted ROE 3,100-3,300 22.2% 22%-23% 2,395 19.8% 18.4% 1,951 562 2024 2025 Q1.26 2028 target 2028 יעד 2024 2025 Q1.26 2028 target 2028 יעד Premiums and deposits NIS B AUM NIS B Gross premiums earned, contributions to pension and provident fun
Slide 26: 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 27: Thank You
Thank You For more information: https://pr.harel-group.co.il/
Slide 28: Agenda
Agenda Key messages Results overview Strategy Appendix 28
Slide 29: Harel Insurance: Nostro portfolio breakdown and return
Harel Insurance: Nostro portfolio breakdown and return Breakdown of Nostro portfolio by asset classes (31.3.2026) Nominal Nostro return 7.6% Real estate (including own use) Investments funds, 5.9% Infrastructure and PE 12.7% 9.2% Credit and Corporate Tradable equities bonds 8.7% Cash and other 3.7%
Slide 30: A decrease in interest rate is expected to have a positive impact on the 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 31: Composition of financial debt – consolidated and solo
Composition of financial debt –consolidated and solo NIS M Financial Liabilities Harel Investments Consolidated 31.12.2025 31.3.2026 Financial Liabilities Harel Investments Solo 31.12.2025 31.3.2026 Harel Investments Solo 1,067 1,058 Financial liabilities (1,067) (1,058) Harel Insurance Tier 2 5,162
Slide 32: 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 33: Our Global Partners
Our Global Partners @ Swiss Re CHUBB ®& CHINA RE Allianz @) STAR INSURANCE COMPANIES & QBE GERLING AYA + ~~) ol all p. 2 DUBAI INSURANC & TOKIO MARINE Zarich Insurance Company wd HARTFORD @ | Berkley INSURANCE beazley uaReL
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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