Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — Q3 2022 Earnings Presentation
28 slides from Harel Insurance Investments & Financial Services's earnings presentation, Nov 28, 2022
Slide 1: Summary of Financial Results
SUMMARY OF FINANCIAL RESULTS For the Period YTD9.22 | November 28, 2022 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: Hamburger Family group structure
48% Hamburger Family 52% a Harel Insurance Investments and Financial Services ‘Assets Under Management (AUM) Insurance fete) Fal Ezer Mortgage lerael Credit Inourance Harel Harel Harel ineurance Company ‘Company Finance Pension and Insurance Holdings Provident Company Interasco Societe Anonyme Gener
Slide 4: The Big Picture
THE BIG PICTURE Data at September 30, 2022 | NIS billions 7.1 28.2 132% About About About MARKET CAP TOTAL EARNED SOLVENCY At November 27, 2022 PREMIUMS RATIO gross ross benefit contributions contribution At June 30, 2022 and amounts received for investment contracts 354 8.2 (6%) About About About A
Slide 5: Harel is Number 1!
HAREL IS NUMBER 1! In gross earned premiums, Q3.22 Q3.21 1.5 1.5 1.2 1.4 1.4 1 3.1 2.6 0.8 1 1.1 1 8.2 9.4 benefit contributions and amounts received for investment contracts YTD9.22 5.1 4.4 3.4 8.6 3.4 3.3 28.2 (NIS billions) YTD9.21 4.4 4 2.9 7.2 2.3 2.5 23.3 2021 5.9 5.4 4 10 3.8 3.9 33 2020 6.1
Slide 6: Increase in AUM and nostro assets since 2010
24.11.22 123 129 56 43 15 366 Increase of YTD9.22 120 123 54 42 15 354 266% 2021 124 126 53 43 16 362 2020 108 87 44 39 13 291 in AUM and nostro assets 2019 103 76 45 44 15 283 since 2010 (NIS billions) 2010 39 12 23 21 2 3 100 INSURANCE PENSION FUNDS PROVIDENT FUNDS MUTUAL FUNDS ETNS PORTFOLIO MANA
Slide 7: Comprehensive Income (Loss)
Comprehensive Income (Loss) After Tax COMPREHENSIVE 833 1,518 940 INCOME (LOSS) 380 (359) (249) After tax (NIS millions) 2020 2021 YTD9.21 YTD9.22 Q3.21 Q3.22 and return on equity (In Annual Terms) Return on Equity 18% 16% 18% 11% (6%) (12%) 2020 2021 YTD9.21 YTD9.22 Q3.21 Q3.22 7
Slide 8: Operating Segments
2,163 598 OPERATING 78 43 1,334 SEGMENTS 1,208 535 356 209 40 54 91 Comprehensive Income 340 291 553 (Loss) before tax 77 48 81 19 (NIS millions) 909 9 11 542 542 304 368 138 18 (238) (23) (4) (137) (684) (384) (342) (601) 2020 2021 YTD9.21 YTD9.22 Q3.21 Q3.22 *Including results of overseas insuranc
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 91 542 542 57 48 68 63 750 417 431 138 14 26 32 98 12 45 14 (264) (761) (238) (684) 2020 2021 YTD9.21 YTD9.22 Q3.21 Q3.22 9 LIFE INSURANCE PENSION PROVIDENT
Slide 10: Non-Life Insurance Segment
NON-LIFE 343 INSURANCE 53 21 34 111 17 SEGMENT 93 53 106 69 36 172 88 Comprehensive Income 53 (Loss) before tax 21 (NIS millions) 88 119 83 74 11 15 7 24 33 33 (19) (10) (1) (42) (28) (69) (66) (24) (61) (3) (210) 2020 2021 YTD9.21 YTD9.22 Q3.21 Q3.22 COMPULSORY MOTOR MOTOR PROPERTY OTHER PROPERTY B
Slide 11: Financial Services Segment
FINANCIAL SERVICES 254 220 SEGMENT (NIS millions) 183 186 78 63 65 54 48 40 19 18 2020 2021 YTD9.21 YTD9.22 Q3.21 Q3.22 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 8.2 5.8 Equity (NIS billions) 3.5 2011 2017 2021 YTD9.22 NIS Dividend 106 461 357 300 2.8 B (NIS millions) Dividend yield 3 10 5 4 (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: Solvency Ratio
Financial Results | Solvency and Future Economic Profit Leading the Insurance Sector December 2021* Solvency Ratio 190% 175% 168% 165% 159% 135% 116% 117% 92% 90% +16% +11% % - YoY Change +16% +11% -12% +1% +1% -2% -4% - 1% Harel Phoenix Menora Clal Migdal without the transitional provisions with th
Slide 15: Solvency and Future Economic Profit: Dividend Potential, Tier 1, VIF
Financial Results | Solvency and Future Economic Profit Leading the Insurance Sector December 2021* Future Potential Dividend Distribution Basic Tier 1 Capital Value in Force (Over BOD Target) (NIS billion) (NIS billion) (NIS billion) 9.3 1.4 8.2 7.5 6.6 6.8 6.9 19.6 1.1 6 155% 6.2 0.9 14.8 91% 4.5
Slide 16: Solvency and Future Economic Profit: New Business and VNB
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 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 ae) 45) TatanceconPsus UBALINSURARE goes
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Slide 19: A company that leads the general insurance market
11.8% 10.0% 12.6% 8.2% a company that leads 14.8% 7.5% the general insurance 6.9% market 6.7% 21.5% Harel Phoenix Clal Menora Ayalon Migdal IDI Shlomo Others 19 Market share in terms of gross premiums, taken from the 2021 report of the Commissioner of the Capital Market, Insurance and Savings
Slide 20: This company develops new and relevant coverages and interfaces
Electric vehicle insurance Harel’s unique new policy covering electric vehicles with new coverages and expansions: extended road recovery services rider, coverage for a home charging point for electric vehicles. this company develops new and Bumpers extra relevant New coverage that allows repairing
Slide 21: A leader in the health insurance market
20% that this same 12% company is also a leader in the health 40% 12% insurance market 9% 3% 3% 1% Harel Phoenix Migdal Menora Clal Ayalon David Shield Others 21 Market share in terms of gross premiums, taken from the 2021 report of the Commissioner of the Capital Market, Insurance and Savings
Slide 22: The Power of Economies of Scale
Figures you The Power of can only Economies of scale Growing in the pension and provident funds AUM Pensioners Fund members (NIS in billions) (thousands) 180 46% 170 35,000 143% 2,500 35% 30,546 2,375 160 30,000 2,300 137 25,000 2,100 140 15,280 116 20,000 1,900 1,756 1,746 120 15,000 12,563 1,700 1
Slide 23: Insurance umbrella
Imagine you have an insurance umbrella wider than anything you have previously known 23
Slide 24: Ranked first in customer service
You have a company with excellent customer service Ranked first in the 2021 pension funds customer service index Ranked first in pension funds customer service According to the 2021 customer service index of the 24 Capital Market, Insurance and Savings Authority.
Slide 25: This is the best place to invest
This is the best place to invest 25
Slide 26: There are also innovations
There are also innovations 26
Slide 27: New alternative investment funds
We deliver New alternative investment funds Harel Alternative Harel Alternative Harel Alternative Credit CO-INVEST Real Estate CO-INVEST PRIVATE EQUITY CO- INVEST For the first time in Israel, Harel Insurance and Finance Group allows customers with financial wealth to invest alongside it in non-mark
Slide 28: And we'll get there
how far we can go and we’ll get there
Harel Insurance Investments & Financial Services — Q3 2022 Earnings Presentation on 6ix