Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — FY2019 Earnings Presentation
28 slides from Harel Insurance Investments & Financial Services's earnings presentation, March 2020
Slide 1: Summary of Financial Results for the Year 2019
SUMMARY OF FINANCIAL RESULTS FOR THE YEAR 2019 March 2020 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: Largest insurance company in Israel
Data correct to December 31 2019 (NIS BILLION) about about LARGEST INSURANCE COMPANY IN ISRAEL* 4.1 1 about Market cap 30.8 כ- Solvency II - surplus at March 30, 2020 at June 30, 2019 Total earned about premiums, gross, about +AA 283 6.4 OVER PLATINUM contributions and RATING** 3 MILLION PLUS RATI
Slide 4: 1st in gross premiums earned, contributions and amounts received
2019 6,255 4,922 3,927 8,938 3,473 3,329 30,844 2018 5,614 4,678 3,888 8,307 3,580 4,918 30,985 2017 5,078 4,424 3,589 7,221 3,256 4,162 27,730 1 IN GROSS ST PREMIUMS EARNED, 2016 4,300 4,164 3,244 6,273 2,420 2,085 22,486 CONTRIBUTIONS AND AMOUNTS RECEIVED Life assurance Health insurance FOR INVEST
Slide 5: 183% increase in AUM and Nostro assets since beginning of the decade
2019 103 76 45 44 15 283 2018 87 62 39 34 13 235 183% INCREASE IN AUM AND NOSTRO 2017 81 55 37 19 15 13 220 ASSETS SINCE BEGINNING OF THE 2010 DECADE 100 39 12 23 21 23 (NIS BILLION) INSURANCE PENSION FUNDS PROVIDENT FUNDS MUTUAL FUNDS 183% ETNS PORTFOLIO MANAGEMENT * *The data include financial ass
Slide 6: Comprehensive income after tax and ROE
COMPREHENSIVE INCOME AFTER TAX 846 760 542 423 COMPREHENSIVE 2016 2017 2018 2019 INCOME AFTER TAX AND ROE (IN ANNUAL TERMS) (NIS MILLION) RETURN ON EQUITY 16% 12% 9% 9% 2016 2017 2018 2019 6
Slide 7: Operating segments comprehensive income (loss) before tax
1,234 1,036 285 OPERATING SEGMENTS 34 740 468 211 29 34 CAPITAL AND OTHER COMPREHENSIVE INCOME 464 110 87 FINANCE NON-LIFE INSURANCE* (LOSS) BEFORE TAX 101 289 577 HEALTH LONG-TERM SAVINGS (NIS MILLION) 80 158 127 594 355 224 )2( )25( )262( 2016 2017 2018 2019 * Including results for the insurance c
Slide 8: Life assurance and long-term savings segment comprehensive income
594 39 69 LIFE ASSURANCE AND 355 LONG-TERM SAVINGS SEGMENT 46 224 COMPREHENSIVE INCOME 81 127 486 60 BEFORE TAX 22 74 228 (NIS MILLION) 54 90 51 2016 2017 2018 2019 PROVIDENT PENSION LIFE INSURANCE 8
Slide 9: Non-life insurance segment comprehensive income
558 68 28 113 NON-LIFE INSURANCE SEGMENT 205 82 159 75 56 31 COMPREHENSIVE INCOME 15 92 (LOSS) BEFORE TAX 56 104 190 76 93 (NIS MILLION) 14 )24( 52 )22( )54( )47( )80( MORTAGE INSURANCE 2016 2017 2018 2019 PROPERTY & OTHER BRANCHES LIABILITIES & OTHER BRANCHES MOTOR PROPERTY COMPULSORY MOTOR * The n
Slide 10: Financial services segment
254 209 207 FINANCIAL 202 SERVICES SEGMENT 34 34 29 (NIS MILLION) )2( 2016 2017 2018 2019 REVENUES COMPREHENSIVE INCOME (LOSS) BEFORE TAX* * Comprehensive loss before tax includes a write-down for the value of mutual fund activity in the amount of NIS 75 million before tax, for 2016 10
Slide 11: Equity and dividend
EQUITY AND DIVIDEND (NIS MILLION) 910284% EQUITY 3,503 4,152 4,512 4,724 4,912 5,167 5,564 5,920 6,456 2011 2012 2013 2014 2015 2016 2017 2018 2019 DIVIDEND (NIS MILLION) 106 64 308 320 235 171 461 214 236 2,115 DIVIDEND YIELD (%) 2.8 2.3 7.6 7.5 6.3 5.5 10.2 3.6 4.1 11
Slide 12: Harel Insurance capital requirements – Solvency
HAREL INSURANCE CAPITAL SOLVENCY SOLVENCY REQUIREMENTS – SOLVENCY RATIO RATIO 107% 156% (NIS BILLION) 12.3 11.7 Solvency ratio results do not include a change in equity from the cutoff date to the date of initial publication (December 2019) resulting from Tier2- capital raised in the amount of NIS 8
Slide 13: Material events after the reporting period - outbreak of the coronavirus
MATERIAL EVENTS AFTER THE REPORTING PERIOD - OUTBREAK AND SPREAD OF THE CORONA VIRUS WORLDWIDE IN Q1 2020 13
Slide 14: Employee health measures and business continuity
In view of the concern for the health and wellbeing of our employees, since the onset of the crisis the Group’s management has taken measures to reduce the risk for the Group’s employees. Based on Ministry of Health instructions, the Group made a number of decisions to limit work in the Company’s of
Slide 15: Interest rate and capital market impact
Immediately prior to the date of publication of the financial statements, the risk-free interest rate curve rose to above its level on December 31, 2019, which could lead to a decrease of the insurance liabilities. On the other hand, an increase of the interest rate curve could negatively impact the
Slide 16: Harel leading a digital revolution in the insurance world
HARELIS LEADING A DIGITAL REVOLUTION IN THE INSURANCE WORLD 16
Slide 17: Development of innovative products that differentiate Harel
DEVELOPMENT OF INNOVATIVE PRODUCTS THAT DIFFERENTIATE HAREL 17
Slide 18: Extra insurance for couples and Switch motor insurance
EXTRA SWITCH INSURANCE MOTOR FOR INSURANCE COUPLES March 2019 April 2019 Entitlement to double the sum insured if the partner dies, An attractively priced digital without changing the premium product for low-mileage drivers Entitlement to increase the sum insured without medical underwriting when a
Slide 19: Health Extra upgrade and improved critical illness insurance
IMPROVED HEALTH CRITICAL EXTRA ILLNESS UPGRADE INSURANCE June 2019 November 2019 Cover for surgery with a reduced premium Extended cover for additional illnesses and Allows you to choose between full coverage after insured events, without any change in the utilizing your SHS rights and payment of a
Slide 20: Premium executive pension
PREMIUM PENSION EXECUTIVE UPGRADE An insurance policy with ongoing deposits and an option to purchase insurance coverages, without any management fees on the deposits and where management fees on accrual decline in line with development of the accrual in the plan Additional insurance coverage packag
Slide 21: Migvan Investments and Premium Treatments
MIGVAN PREMIUM INVESTMENTS TREATMENTS PLUS June 2018 September 2019 New technologies and diverse treatments rider: Quality investment management by Harel’s investment experts Technologies that treat oncology-related illnesses Enrollment in life assurance at no cost Pressure chamber treatment Enrollm
Slide 22: Increased automation in the agents' work processes
INCREASED AUTOMATION IN THE AGENTS' WORK PROCESSES Products available for sale through digital channels, almost all of them also through to automatic production ONE-CLICK ONE-CLICK DIGITAL ENROLLMENT ONE-CLICK ONE-CLICK ONE-CLICK LIFE PERSONAL ENROLLMENT IN EDUCATION CONTRACTORS BUSINESS HOMEOWNERS
Slide 23: Operational streamlining and improved customer service: digitization of claims
OPERATIONAL STREAMLINING AND IMPROVED CUSTOMER SERVICE DIGITIZATION OF CLAIMS 23
Slide 24: Filing ambulatory claims
FILING AMBULATORY March 2019 CLAIMS Green track: Addition of supplementary medicine 49% WERE APPROVED AUTOMATICALLY 24
Slide 25: One-click motor and homeowners claims
ONE-CLICK MOTOR AND HOMEOWNERS CLAIMS MOTOR AND HOMEOWNERS CLAIMS IN Fully digital process 2019 (filing + settlement) for agents and customers 78.2% WERE FILED AUTOMATICALLY 50% WERE SETTLED AUTOMATICALLY 25
Slide 26: Advance payment transfers to travel insurance customers
OPERATIONAL STREAMLINING AND IMPROVED CUSTOMER SERVICE ADVANCE PAYMENT TRANSFERS USING TO TRAVEL INSURANCE CUSTOMERS Submitting a request for a down payment, receiving payment by Bit and providing the receipts after the treatment 26
Slide 27: Claims customer feedback
“Very simple, fast, no need for a fax. “I was very pleasantly This is the first time I’ve made use of surprised by the efficiency, the insurance and it was faster than I simplicity and fast response expected. I hope I don’t need to use it in dealing with the claim” again, but it was very straightfor
Slide 28: Thank you
THANK YOU 28
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