Harel Insurance Investments & Financial Services Ltd. · TASE:HARL

Harel Insurance Investments & Financial Services — H1 2017 Earnings Presentation

13 slides from Harel Insurance Investments & Financial Services's earnings presentation, August 2017

1. Slide 1: Summary of financial results for the period 1-6/2017

   Summary of financial results for the period 1-6/2017 Harel Insurance Investments & Financial Services Ltd. August 2017

2. Slide 2: Disclaimer

   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

3. Slide 3: Comprehensive income after tax and ROE in NIS million

   Comprehensive income after tax and ROE in NIS million (in annual terms) Comprehensive income after tax* 533 423 437 381 184 42 28 2014 2015 2016 1-6/2016 1-6/2017 4-6/2016 4-6/2017 Return on Equity 16% 14% 11% 8% 9% 2% 2% 2014 2015 2016 1-6/2016 1-6/2017 4-6/2016 4-6/2017 * Including a revision of t

4. Slide 4: Earned premiums and benefit contributions, gross (NIS million)

   Earned premiums and benefit contributions, gross (NIS million) 2014 % Increase 2015 2016 % Increase 1-6/2016 1-6/2017 % Increase 4-6/2016 4-6/2017 Life assurance 3,797 1% 4,243 4,300 23% 2,037 * 2,504 23% 1,019 * 1,256 Health insurance 3,571 5% 3,964 4,163 7% 2,019 2,166 6% 1,023 1,088 Non-life insu

5. Slide 5: Assets under management (AUM) and nostro assets (NIS billion)

   Assets under management (AUM) and nostro assets (NIS billion) 250 Portfolio management * 196.0 ETNs 200 185.1 179.3 8.6 178.4 8.4 13.5 Mutual funds 8.9 8.7 161 13.2 15.3 14.1 16.7 8.5 17.8 150 12.1 Provident funds 24.7 33.5 33.7 119.1 31.7 32.9 Pension funds 101.5 2.9 6.0 29.6 100.3 29.0 100 2.3 3.6

6. Slide 6: Comprehensive income before tax from operating segments (NIS million)

   Comprehensive income before tax from operating segments (NIS million) 2014 2015 2016 1-6/2016 1-6/2017 4-6/2016 4-6/2017 Long-term savings 164 298 127 (109) 346 (73) 138 Health 140 2 158 95 31 68 8 Non-life insurance * 287 123 74 (3) 83 47 20 Insurance companies overseas 5 (7) 5 5 5 4 3 Finance 64 8

7. Slide 7: Non-life insurance segment – comprehensive income before tax (NIS million)

   Non-life insurance segment – comprehensive income before tax (NIS million) 2014 2015 2016 1-6/2016 1-6/2017 4-6/2016 4-6/2017 Compulsory motor 129 88 )24( )29( )10( 2 )25( Motor property 34 )12( 14 6 17 5 10 Property and other branches 47 59 77 32 51 22 27 Liabilities and other branches 13 )65( )49(

8. Slide 8: Life assurance and long-term savings segment - comprehensive income before tax

   Life assurance and long-term savings segment - comprehensive income before tax (NIS million) 2014 2015 2016 1-6/2016 1-6/2017 4-6/2016 4-6/2017 Life assurance 40 185 53 )138( 304 )95( 116 Pension 69 69 54 25 25 15 14 Provident 55 44 20 4 17 7 8 Total 164 298 127 )109( 346 )73( 138 400 346 298 300 20

9. Slide 9: Financial services segment (NIS million)

   Financial services segment (NIS million) 2014 2015 2016 1-6/2016 1-6/2017 4-6/2016 4-6/2017 Revenus 304 300 253 134 100 70 51 Comprehensive income before taxes * 64 8 (3) 17 17 (1) 10 EBIDTA 83 91 82 47 20 27 10 304 300 253 134 83 91 82 100 64 70 47 51 17 17 20 27 10 10 8 (3) (1) 2014 2015 2016 1-6/

10. Slide 10: Equity – Harel Investments (NIS million)

    Equity – Harel Investments (NIS million) 5,359 5,167 4,912 4,724 Dividend (NIS million) 320 235 171 257 Dividend yield (%) 7.5% 6.3% 5.5% 6.1% Harel Insurance Investments & Financial Services Ltd 10

11. Slide 11: Harel insurance capital requirements - old regime (NIS billion)

    Harel insurance capital requirements - old regime (NIS billion) Surplus capital Required capital 8 7.5 7.1 7 6.8 1.4 1.9 6 1.2 5 4 3 5.7 5.6 5.6 2 1 0 2 2 3 . .2 Harel Insurance Investments & Financial Services Ltd 11

12. Slide 12: Harel insurance capital requirements - Solvency (NIS billion)

    Harel insurance capital requirements - Solvency (NIS billion) • On July 2, 2017, the Capital Market, Insurance and Savings Authority published a circular – “Reporting the Results of the Economic Solvency Ratio to the Commissioner” whereby until the designated reporting files adjusted to Israel have

13. Slide 13: Insurance & Finance

    Insurance & Finance

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