Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — FY2022 Earnings Presentation
37 slides from Harel Insurance Investments & Financial Services's earnings presentation, Mar 30, 2023
Slide 1: Summary of Financial Results For The Year 2022
SUMMARY OF FINANCIAL RESULTS For The Year 2022 | March 30, 2023 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: Group structure and ownership
48% Hamburger Family 52% Public Harel Insurance Investments and Financial Services ‘Assets Under Management (AUM) Insurance fore) EMI - Ezer Mortgage lerael Credit Ineurance Harel Harel Harel Insurance Company Company Finance Pension and Insurance Holdings Provident Company Interasco Societe Anonyme
Slide 4: The Big Picture
THE BIG PICTURE Data at December 31, 2022 | NIS billions 6.4 37.5 132% About About About MARKET CAP TOTAL EARNED SOLVENCY At March 28, 2023 PREMIUMS RATIO gross benefit contributions At June 30, 2022 and amounts received for investment contracts 363 8.3 (1%) About About About Aa2 RATING Over PLATINU
Slide 5: Harel is Number 1
HAREL IS NUMBER 1!! In gross earned premiums, 2 22 6.5 5.9 4.7 11.8 4.7 3.9 37.5 benefit contributions and amounts received for investment contracts (NIS billions) 2 21 5.9 5.4 4 10 3.8 3.9 33 2 2 6.1 5 3.9 9.2 3.2 2.5 29.9 Amounts received for investment contracts Life insurance 10% 18% Provident f
Slide 6: Increase of 263% in AUM and nostro assets since 2010
Increase of 2 22 121 128 56 43 15 363 263% in AUM and nostro assets since 2010 2 21 2 2 124 108 87 126 44 39 53 13 291 43 16 362 (NIS billions) 2 1 103 76 45 44 15 283 2 1 39 12 23 21 2 3 100 INSURANCE PENSION FUNDS PROVIDENT FUNDS MUTUAL FUNDS ETNS PORTFOLIO MANAGEMENT AND OTHER* *The data includes
Slide 7: Comprehensive Income (Loss)
Comprehensive Income (Loss) After Tax COMPREHENSIVE 1,518 978 833 INCOME (LOSS) 2 1 2 2 2 21 (77) 2 22 After tax (NIS millions) and return on equity (In Annual Terms) Return on Equity 18% 15% 11% (1%) 2 1 2 2 2 21 2 22 7
Slide 8: Operating Segments
2,163 598 1,365 1,208 OPERATING 78 468 43 SEGMENTS 29 209 535 40 73 577 6 340 77 Comprehensive Income 909 (Loss) before tax 553 542 798 (NIS millions) (262) (690) (386) (199) 2 1 2 2 2 21 2 22 LONG-TERM SAVINGS HEALTH NON-LIFE INSURANCE* FINANCE CAPITAL AND OTHER *Including results of overseas insur
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 91 553 542 60 57 74 68 750 419 417 46 57 (793) (690) 2 1 2 2 2 21 2 22 LIFE INSURANCE PENSION PROVIDENT
Slide 10: Non-Life Insurance Segment
558 NON-LIFE 68 28 INSURANCE 113 343 SEGMENT 53 31 28 159 21 111 93 53 Comprehensive Income 176 (Loss) before tax 88 69 (NIS millions) 190 119 88 103 (23) (69) (61) (253) 2 1 2 2 2 21 2 22 COMPULSORY MOTOR MOTOR PROPERTY OTHER PROPERTY BRANCHES OTHER LIABILITIES BRANCHES MORTAGE INSURANCE *Non-life
Slide 11: Financial Services Segment
FINANCIAL 264 SERVICES 254 220 207 SEGMENT (NIS millions) 78 73 40 29 2 1 2 2 2 21 2 22 REVENUES COMPREHENSIVE INCOME BEFORE TAX 11
Slide 12: Equity and Dividend
EQUITY AND DIVIDEND Dividend distribution Policy 30% 35% of annual profit of of annual profit of Harel Investments Harel Insurance 8.9 8.4 5.8 Equity (NIS billions) 3.5 2 11 2 17 2 21 2 22 NIS Dividend 106 461 357 400 2.9 B (NIS millions) Dividend yield 3 10 5 5 (In %) In Aggregate 12
Slide 13: Harel Insurance Capital Surplus
HAREL INSURANCE CAPITAL SURPLUS Including the transitional provisions Excluding the transitional provisions (NIS billions) Harel Insurance is governed by a Solvency II based economic solvency regime In accordance with the Commissioner’s directives, the economic solvency ratio at June 30, 2022, was p
Slide 14: Solvency and Future Economic Profit: Leading the Insurance Sector
Financial Results | Solvency and Future Economic Profit Leading the Insurance Sector June 2022* Future Potential Dividend Distribution Basic Tier 1 Capital Value in Force (Over BOD Target) )NIS billion) )NIS billion) 9.4 (NIS billion) 2.9 7.5 7.3 7.5 6.3 6.5 6.5 19.5 2.3 5.2 181% 13.7 4.6 1.5 % - Tr
Slide 15: Solvency and Future Economic Profit: Leading the Insurance Sector
Financial Results | Solvency and Future Economic Profit 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
Slide 16: Solvency and Future Economic Profit: Solvency Ratio
Financial Results | Solvency and Future Economic Profit Leading the Insurance Sector June 2022* Solvency Ratio 202% 180%** 179% 179% 163% ** 148% 132% 137% 105% 91% +16% % - YoY Change +5% +20% +12% +13% +14% +13% +12% +4% +1% Harel Phoenix Menora Clal Migdal excluding the transitional provisions in
Slide 17: Our Global Partners
OUR GLOBAL PARTNERS @ Swiss Re & Ww ® QBE TOKIO MARINE SRPAN CHUBB @ HDI ZURICH RSA ay GERLING ®& CHINARE Allianz @ ae | =| rite Ss ; STARR puiaL sen aE 2 45) Tatanceconsis UBALINSURARE goes
Slide 18: Concluding
Concluding 2022 Looking forward to the continuation of Harel's journey Q4 | 2022
Slide 19: The largest insurance company in Israel
The largest insurance company במונחי פרמיות in Israel In gross earned premiums, benefits and amounts for investment agreements, as of 30.9.22 *
Slide 20: The strongest insurance and savings brand
The strongest insurance and savings brand brand brand in Israel Insurance Pension TOM TOM 32% 11% 12% 14% 32% 13% 15% 18% 21% 14% 15% 18% 21% 11% 12% 13% 4th place 3nd place 2nd place Harel 4th place 3nd place 2nd place Harel
Slide 21: Health Insurance
Health Insurance
Slide 22: The largest health insurance company in Israel
The largest health insurance company in Israel We’ve handled We’ve paid over 500 thousand health insurance claims 1.5 Billions of NIS for health insurance claims in Israel and abroad
Slide 23: Innovation in Travel Insurance
The largest health insurance company in Israel Innovation in Travel Insurance “Harel at your side” Insurance add-on Professional center for Doctor’s home visit Upgrades and improvements to the travel insurance app assistance upon a suspicion or discovery of a serious illness. Digital update of trave
Slide 24: New health and accident insurance products
The largest health insurance company in Israel A winning Launching new Launching new life Extended sign up to collaboration between personal accident insurance add-ons Ma’anakit Sartan cover Harel and Marpet insurance Additional coverage in case until the age of 69 of death or disability as a Great
Slide 25: Pension and Savings
Pension and Savings
Slide 26: The power in large numbers
The power in large numbers Growing in pension and provident funds in deposits to pension fund 29% 2,500 2,300 38% 2,275 2,410 13.0 11.0 10.2 11.8 2,100 members 9.2 deposits 9.0 (Billions of NIS) 1,900 1,748 (thousands) 1,700 7.0 1,500 5.0 2 2 2 21 2 22 2 2 2 21 2 22 Pensioners AUM 135% 43% (Billions
Slide 27: Growing in pension and provident funds
Upgrading the supplementary umbrella New S&P 500 index investment insurance for the track in Migvan savings policy and pension fund More Premium pension policy We increased the insured After the track was added to the pension salary ceiling to NIS 40,000 fund, the provident funds, the investment and
Slide 28: Alternative investment funds and education initiatives
Lama-ze? New alternative investment Kama-ze?* funds "Harel Alternative" Harel and Globes For the first time in Israel, Harel Group allows high collaborated in a financial net worth individuals to invest alongside it in education project for children non-marketable investments in real estate, non- ma
Slide 29: General Insurance
Committed to leading the way General Insurance
Slide 30: General Insurance claims handled
General Insurance We’ve handled 151 3.2 We’ve paid over thousand Billions of NIS general insurance on general insurance claims claims
Slide 31: First place in general insurance premiums
First place In general insurance premiums Home insurance Adding home Eelectric vehicle Bumpers interface in a click insurance to Harel policy Extra cover car insureds A new digital Cost effective | Exemption from deductible in the first year for new Electric vehicle policy New coverage that interfac
Slide 32: Credit
Credit
Slide 33: Diversification of profit sources: Harel acquires Isracard
Diversification of profit sources Harel acquires The acquisition is Isracard for a sum of subject to regulatory no less than NIS 3.3 approvals billion Harel acquires Isracard Implementation of Financing the the company's transaction using strategy to diversify approximately NIS 2 sources of profit a
Slide 34: Mortgages
Mortgages A strong back for a long journey Mortgage by Harel Reverse mortgage for the ages of 60+ צומחים Mortgage by Harel Insurance and Finance Reverse mortgage on the basis of the existing house
Slide 35: Mortgages
Mortgages* A strong back for a long journey Reverse Reversemortgage mortgage Portfolio size in millions of NIS LTV- 24% portfolio 515 515 2,145 Portfolio total Assets lien value Mortgage 228 Loans by size 1% by Harel 38% 31% 23% 8% 77 Indexed average APR 4.9% 2 2 2 21 2 22 from 250 to 500 from 3000
Slide 36: Mortgage
Mortgage Mortgage by Harel Insurance and Finance by Harel
Slide 37: Win.
The good and the persistent Win.
Harel Insurance Investments & Financial Services — FY2022 Earnings Presentation on 6ix