Menora Mivtachim Holdings Ltd. · TASE:MMHD
Menora Mivtachim — Q3 2024 Earnings Presentation
42 slides from Menora Mivtachim's earnings presentation, November 2024
Slide 1: Analyst Presentation
QQ) MENORA MIVTACHIM Analyst Presentation Menora Mivtachim | November 2024
Slide 2: General Clarifications
General Clarifications This presentation includes only partial information regarding the Group's results for the period ended September 30, 2024 and was prepared solely for the sake of brevity and convenience. The presentation does not include the full information needed by an investor to make a dec
Slide 3: Agenda
01 Operating Results Highlights O02 Details of Changes in Income by — Segment 03 The Group’s Strengths g
Slide 4: Glossary of Terms
Glossary of Terms af Underwriting income / operating income The operating results, which include stating a real normative return of 3% (annualized) in respect of the liability component that is not backed by Hetz bonds, including for the purpose of calculating variable management fees Investment inc
Slide 5: Key figures for the period and quarter
24.f 22.5 NIS billion For the NIS billion period 1-9/2024 8.4 For the NIS billion quarter 7-9/2024 NIS billion 820 534 NIS million NIS million 1-9/2024 1-9/2023 330 270 NIS million NIS million 7-9/2024 7-9/2023 (0) The return on equity is annualized and calculated based on the comprehensive income f
Slide 6: Solvency ratio, equity and dividends
361 12.3% 6.9 11.2% NIS billion CAGR CAGR September 30, 2024 (2018-9.2024) Bie pillion (2018-9.2024) Company’s rating - Aa2 169.1% 3.0 NS 4 6 O million Insurer’s rating - Aa Net of the Transitional Provisions © NIS billion (1) Menorainsurance- netof the Provisions for the Transitional Period, includ
Slide 7: Operating Results Highlights
Operating Results Highlights Growth in profitability | NIS million Comprehensive Comprehensive income, Comprehensive income Comprehensive income, income, before tax before tax - pension before tax after tax ttributable to the sharehold FEC segmEm Underwriting income |) Other income attributable to t
Slide 8: Comprehensive Income Before Tax by segment
Increase of approx. NIS 440 million compared to corresponding period last year 1-9/2023 |) 1-9/2024 814 604 358 265 296 Not attributed to Total P&C Long-term savings Health \ operating segments | Comprehensive Income Before Tax Increase of approx. NIS 80 million compared to corresponding quarter las
Slide 9: Underwriting Income for the Period
| Underwriting Income for the Period Substantial improvement in underwriting income and profitability across all areas of activity for the 1-9 period | NIS million Increase of approx. NIS 405 million 203 compared to corresponding period last year 18% (iE 1-9/2023 |) 1-9/2024 Ee 1-9/2024 (420.0% ) fa
Slide 10: Underwriting Income for the Quarter
Underwriting Income for the Quarter Substantial improvement in underwriting income and profitability across all areas of activity for the 7-9 quarter | NIS million Increase of approx. NIS 66 million 75 [19%] compared to corresponding quarter last year he Oa 7-9/2023 ll) 7-9/2024 420.0% 4h C L [112]
Slide 11: Underwriting Income
_ Underwriting Income Development of Underwriting Income NIS million Development of Underwriting Income by Quarter | for 2024 389 401 312 1-3/2024 4-6/2024 7-9/2024 Development of Underwriting Income for 1-9| 2022-2024 538 697 1,102 1-9/2022 1-9/2023 1-9/2024
Slide 12: Comprehensive Income Before Tax
__ Comprehensive Income Before Tax Comprehensive income before tax for the 1-9/2024 period compared to the corresponding period last year +439 1,254 97 ee (67) Be 814 1,102 | } ‘ 405 / +405 697 N35) (71) 1-9/2023 Underwriting Underwriting Underwriting Investment Interest Specialltems Expensesnot 1-9
Slide 13: Comprehensive Income Before Tax
__ Comprehensive Income Before Tax Comprehensive income before tax for the 7-9/2024 quarter compared to the corresponding quarter last year +79 499 = mej AG _—s 7 22 31 814 a 16 420 ai 1,102 | #66)” 66 697 \(35) (16) 7-9/2023 Underwriting Underwriting Underwriting Investment Interest Special Items E
Slide 14: Premiums and contributions note
* Include the contributions towards benefits deposited with pension funds and provident funds (excluding guaranteed return provident funds tracks) as well as proceeds in respect of investment contracts which are recognized directly in insurance liabilities, and not recognized as premiums in the fina
Slide 15: Assets under Management
__ Assets under Management Development of assets under management by areas of activity in the period 2018-9.2024 | NIS billion 253.2 221.2 185.2 190.6 139.2 155.0 35.8 32.1 33.3 34.8 27.9 32.3 33.5 ! ' 15.3 16.8 72 18.0 204 20.9 [213 December 31,2018 | December 31, 2019 December 31,2020 December31,2
Slide 16: Details of Changes in Income by Segment
O01 Operating Results Highlights O2 Details of Changes in Income by — Segment 03 The Group’s Strengths
Slide 17: P&C Insurance
| P&C Insurance For the 1-9 period | NIS million Composition of underwriting income by segment Change in pre-tax income for the 1-9/2024 period 1-9/2023 |) 1-9/2024 68.48 compared to the corresponding period last year 562 +246 7 604 334 270 4 i- 228 129 134 101 g5 Motor property Compulsory motor’ 50
Slide 18: P&C Insurance
| P&C Insurance For the 7-9 period | NIS million Composition of underwriting income by segment 7-9/2023 | 7-9/2024 <i) 562 270 129 134 50 73 54 101 85 oa =, Other property Other liability Motor property Compulsory motor Total subsegments subsegments Composition of gross premiums by segment A 1,005 7
Slide 19: P&C Insurance
| P&C Insurance Development of income | NIS million 562 517 407 334 265 260 232 Underwriting income before tax >» 2019 2020 2021 2022 2023 1-9/2023 1-9/2024 aa 604 474 487 358 . 201 Comprehensive 236 income before tax > 2019 2020 2021 2022 2023 1-9/2023 1-9/2024 J
Slide 20: Long-Term Savings
__ Long-Term Savings For the 1-9 period | NIS million Underwriting / operating income for the 1-9/2024 period compared to the corresponding period last year 1-9/2023 {ill 1-9/2024 406 326 203 154 159 144 LJ i mz Life insurance Pension Provident Total Composition of premiums and contributions towards
Slide 21: Long-Term Savings
| Long-Term Savings For the 7-9 quarter | NIS million Underwriting / operating income before tax for the 7-9/2024 quarter compared to the corresponding quarter last year 7-9/2023 [ll 7-9/2024 148 132 75 63 56 54 |__| Life insurance Pension Provident Total Composition of premiums and contributions to
Slide 22: Health
| Health For the 1-9 period and 7-9 quarter | NIS million Pre-tax income for the 1-9/2024 period compared to the corresponding period last year +92 y (4) 5 116 97 24 1-9/2023 Underwriting Investment Interest Specialltems 1-9/2024 income Income 1-9/2024 134 (48) 48 as) 1-9/2023 37 @) 10 a4) Income fo
Slide 23: Health
| Health Collective long-term care - Profit (loss) before tax - NIS million transition from a risk-bearing model to an operational model 2021-9.2024 7 > Asfrom January 2024 Menora has been operating the long-term care insurance of the Maccabi health maintenance organization, without bearing the insu
Slide 24: The Group's Strengths
O01 Operating Results Highlights O2 Details of Changes in Income by — Segment 03, The Group’s Strengths
Slide 25: The Group's Strengths
The Group’s Strengths High, Stable Profitability over Time Leaders in Pension The Largest and Most Profitable Pension Company Leaders in P&C Insurance Excess profitability relative to industry over time Low exposure to Individual Long-Term Care and Executive Insurance
Slide 26: The Group's Strengths
ZZ gf The Group’s Strengths ~) Excess Capital, Solvency and Dividend Diversified income mix and structure Extensive activity in insurance-related areas, which have low son Ee to the capital market, such as pension, credit (ERN and Ampa) and insurance agencies Stable ownership and management structur
Slide 27: High, Stable Profitability over Time
The Group’ S Strengths High, Stable Profitability over Time
Slide 28: Profitability and Shareholders' Equity
Profitability and Shareholders’ Equity Development of comprehensive income after tax attributable to the shareholders and equity NIS million Consistent profitability over time Shareholders’ equity post tedcomp liebe psi/cincone average annual growth of approx. 11.2% 950 820 709 654 509 534 4,182 3,7
Slide 29: High, stable return on equity over time
gi High, stable return on equity over time Average return on equity” in 2019-6.2024 13.9% 10.2% Return on equity®| 2019-9.2024 24.0% 19.7% 15.6% 13.4% 19.98 9.6% 7.5% 0.6% 2019 2020 2021 2022 Average for the 4 other largest companies {| Menora Menora1-9/2024 17.0% -_ a —™ 20.5% 16.2% 14.3% 12.0% | 8
Slide 30: High, Stable Return on Equity over Time
i High, Stable Return on Equity over Time Return on equity 2019-9.2024 19.7% 20.5% qi4.2% Multi-year average SSS assesses Menora Multi-yearaverage of the major insurance companies -5% -10% 2019 2020 2021 2022 2023 1-3/2024 4-6/2024 7-9/2024 Standard deviation - 2019-6.2024 _—{] Menora—3.8% J Company
Slide 31: Excess Capital, Solvency and Dividend
5’ 2 re | | ]
Slide 32: Solvency ratio comparison
190% 169.1% 170% 157.4% 150% 144.5% 138.6% 134.7% 130% 120.2% 120.5% 110% 90% 70% 50% 2018 2019 2020 2021 2022 2023 30.06.2024 June 30, 2024 מנורה Menora דCompany חברהD גCompany חברהC חברה ב Company B אCompany חברהA
Slide 33: Leaders in pension
5’ 2 rT The Group’s Strengths - Leaders in pension The Largest and Most Profitable (®) Pension Company
Slide 34: Pension market comparison
Company D Company C Company A Company B Menora
Slide 35: Operating Income - Pension and Provident
ria Operating Income - Pension and Provident Consistent improvement in profitability of the Pension and Provident Subsegment Development of income by quarter | 2023-9.2024 84 CTCAGR 47.755 71 63 GS 51 51 1-3/2023 4-6/2023 7-9/2023 10-12/2023 1-3/2024 4-6/2024 7-9/2024 Increase in operating income As
Slide 36: Excess Profitability Relative to Industry over Time
5’ 2 SeeRe'= Excess Profitability Relative to Industry over Time = 5
Slide 37: Leaders in Motor Insurance (Compulsory and Property)
Leaders in Motor Insurance (Compulsory and Property) Stable profitability over time and positioning as a market leader | NIS million Profitability of compulsory motor and motor property over time 421 288 328, 268 235 206 168 ee 14 84 95 a = ” = 2018 2019 204 1 191 88 107 o 35 —_ (24) (13) (259) 2020
Slide 38: Motor insurance peer comparison
Menora Company A Company B Company C Company D
Slide 39: Low exposure to individual long-term care and executive insurance
5’ 2 SeeRe'= | | wae ngths mi. . ; The Group’s Stre Low exposure to individual long-term care and executive insurance and growth in { individual life insurance
Slide 40: Life Insurance and Health Insurance
@ Life Insurance and Health Insurance Low exposure to individual LTC and executive insurance - Products with significant insurance risk and onerous capital requirements Low exposure to individual long-term care Premiums for the 1-6/2024 period | in NIS million Menora Company D 139 Company A [14.2%]
Slide 41: Outgoing transfers comparison
2020 2023 2020 2023 2020 2023 2020 2023 2020 2023 Company C Company A Company D Company B Menora
Slide 42: Thank you
Menora Mivtachim Holdings — Q3 2024 Earnings Presentation on 6ix