Harel Insurance Investments & Financial Services Ltd. · TASE:HARL
Harel Insurance Investments & Financial Services — H1 2026 Earnings Presentation
37 slides from Harel Insurance Investments & Financial Services's earnings presentation, Aug 26, 2026
Slide 1: Investor Presentation H1.2026
Investor Presentation H1.2026 26.08.2026
Slide 2: Agenda
Agenda Key messages Results overview Strategy Appendix 2
Slide 3: Key messages
Key messages Profitability and dividend: 1. Increase in profit and ROE: Q2.26 profit was NIS 1.024 B, up 30%, H1.26 profit was NIS 1.59B, up 19%, driven by higher investment income and growth in core profits, primarily in asset management, credit and equity, which grew by 68% 2. Transition to quarte
Slide 4: Largest insurance and finance group in Israel
Harel Insurance Investments and Financial Services Largest insurance and finance group in Israel Global Scale Credit Rating Comprehensive Income ROE Shareholders’ Equity Harel Insurance NIS B A/Stable AM Best to shareholders, NIS M Q2.26 H1.26 Q2.26 H1.26 30.6.2026 A-/Stable S&P Global 1,024 1,586 3
Slide 5: Increase in comprehensive income and ROE
Increase in comprehensive income and ROE Comprehensive income attributed to shareholders ROE NIS M after tax 37.3% 32.7% 1,024 789 Q2.25 Q2.26 Q2.25 Q2.26 2,954 27.0% 26.9% 27.2% 1,586 1,332 2025 H1.25 H1.26 2025 H1.25 H1.26 5
Slide 6: Continuous growth in premiums and in AUM
Continuous growth in premiums and in AUM AUM NIS B Premiums and deposits** NIS B CAGR 2020-2025: 14.9% CAGR 2020-2025: 8.8% 638.3 45.7 582.0 42.5 3.3 58.2 39.4 513.0 54.1 4.2 73.2 2.9 53.9 70.3 8.8 427.7 7.1 18.0% 65.1 133.1 44.9 6.4 120.6 18.7 22.4 26.2 25.5 61.3 105.9 24.9 21.6 2.3 4 23.1 1.5 82.6
Slide 7: Growth in new business in H1.26 continues to fuel long term value creation
Growth in new business in H1.26 continues to fuel long term value creation 660 CSM new business in H1.26 is higher than the .. and higher than CSM new business in H1.25 NIS M CSM release NIS M 992 992 830 809 660 170 CSM Release CSM New Business Growth CSM New Business CSM New Business existing book
Slide 8: Increase in net CSM balance, thanks to increase in sales of growth products
Increase in net CSM balance, thanks to increase in sales of growth products in life and health CSM roll forward during H1.26 NIS M 992 17,717 132 296 )50( 17,177 17,177 (660) 12.2 (170) 12.4 12.0 )830( CSM generated from new sales exceeds the CSM released to the P&L, resulting in an increase in 5.2
Slide 9: Comprehensive income by business lines Q2.2026 NIS M
Comprehensive income by business lines Q2.2026 NIS M NIS M Q2.26 Q2.25 CSM release 419 405 RA release 74 77 Reinsurance (CSM, RA) (29) (25) Other, net of reinsurance* (29) (20) Non-life, net 126 122 Underwriting profit (insurance service result) 561 559 Adjusted investments and finance income, net 1
Slide 10: Increase in core profits in Q2.26, particularly in life, AM and credit
Increase in core profits in Q2.26, particularly in life, AM and credit Core profit by business lines Q2.26 vs Q2.25 NIS M Q2.25 Q2.26 1,592 1,219 991 1,024 849 789 675 699 637 546 306 266 270 202 167 163 83 131 60 79 31 82 Health and LTC Life Non-life Total insurance AM Credit Equity Core profit Cor
Slide 11: Comprehensive income by business lines H1.2026 NIS M
Comprehensive income by business lines H1.2026 NIS M NIS M H1.26 H1.25 CSM release 830 805 RA release 145 159 Reinsurance (CSM, RA) (57) (53) Other, net of reinsurance* (94) 0 Non-life, net 251 213 Underwriting profit (insurance service result) 1,075** 1,124 Adjusted investments and finance income,
Slide 12: Increase core profits in H1.26, led by AM and credit
Increase core profits in H1.26, led by AM and credit Core profit by business lines H1.26 vs H1.25 NIS M H1.25 H1.26 2,430 2,001 1,824 1,697 1,586 1,360 1,324 1,196 1,332 1,126 562 521 493 483 305 320 147 228 111 140 79 132 Health and LTC Life Non-life Total insurance AM Credit Equity Core profit Cor
Slide 13: Agenda
Agenda Key messages Results overview Strategy Appendix 13
Slide 14: Increase in comprehensive profit in Q2.26 and in H1.26
Health and Long-term care (LTC) Increase in comprehensive profit in Q2.26 and in H1.26 Health and LTC: Comprehensive income Q2.26 Health and LTC: Comprehensive income H1.26 NIS M before tax NIS M before tax 214 716 123 389 (19) 87 521 44 439 266 (5) 228 )6( Underwriting Adjusted net Operating Core E
Slide 15: Decline in underwriting profit mostly in LTC, which is in run-off
Health and Long-term care (LTC) Decline in underwriting profit mostly in LTC, which is in run-off Health and LTC: Breakdown of underwriting profit NIS M Medical expenses: Results were positively impacted by continued growth, leading to higher CSM release. In addition, results in H1.26 were affected
Slide 16: Increase in Q2.26 comprehensive profit due to increase in underwriting profit
Life Increase in Q2.26 comprehensive profit due to increase in underwriting profit and positive impact of investment income Life: Comprehensive income Q2.26 NIS M before tax Life: Comprehensive income H1.26 NIS M before tax 145 44 527 483 233 503 )47( 385 82 270 207 )19( Underwriting Adjusted net Op
Slide 17: Underwriting improvement in life risks products in Q2.26
Life Underwriting improvement in life risks products in Q2.26 Life: Breakdown of underwriting profit NIS M Q2.25 Q2.26 • Underwriting results in Q2.26 and in H1.26 were positively impacted by continued growth in life risk products, 207 164 170 leading to higher CSM release 132 28 35 10 8 • Underwrit
Slide 18: Increase in underwriting profit in Q2.26 and in H1.26
Non-life Increase in underwriting profit in Q2.26 and in H1.26 Non-life: Comprehensive income Q2.26 NIS M before tax Non-life: Comprehensive income H1.26 NIS M before tax 268 584 124 284 99 316 49 160 251 )34( 126 )15( Underwriting Adjusted net Operating Core Excess Comprehensive Underwriting Adjust
Slide 19: Improvement in underwriting profit, mainly in property and liabilities
Non-life Improvement in underwriting profit, mainly in property and liabilities Non-life: Breakdown of underwriting profit NIS M Compulsory motor: Results in Q2.26 and in H1.26 were impacted by a negative development in respect of prior years, partially 129 122 126 offset by positive development in
Slide 20: AUM growth continues, increase in comprehensive profit
Asset Management AUM growth continues, increase in comprehensive profit AM: Breakdown of comprehensive income NIS M before tax H1.25 H1.26 Pension and provident: Results were affected by an 220 increase in management fees driven by AUM growth, partially offset by an increase in marketing and other 1
Slide 21: Continue to scale the credit activity, focus on mortgages
Credit Continue to scale the credit activity, focus on mortgages Profitability was affected by continuous growth in the credit portfolio in Comprehensive income excluding the impact of changes in development property financing, mortgages and in credit to medium businesses fair value NIS M before tax
Slide 22: Harel Investments: transition to quarterly dividend distribution
Harel Investments: transition to quarterly dividend distribution Dividend Policy: Dividend in Harel Investments including share repurchase NIS M Including NIS 500 M dividend approved in June and NIS 400 share repurchase M dividend 45% 40% dividend 1,560 approved in August > > 129 1,182 926 252 Harel
Slide 23: Harel Insurance: Solvency Capital Ratio is 170.5% as of 31.3.2026
Harel Insurance: Solvency Capital Ratio is 170.5% as of 31.3.2026 Solvency Capital Ratio at Harel Insurance • Solvency Capital Ratio of Harel Insurance as of December 31, 2025 without transitional measures was 148%, and capital surplus was NIS 5.6 B, increase of NIS 0.7 B in 2025 • Solvency Capital
Slide 24: Agenda
Agenda Key messages Results overview Strategy Appendix 24
Slide 25: Strategy implementation
Strategy implementation Core profit NIS M after tax Adjusted ROE 3,100-3,300 22.2% 22%-23% 19.8% 21.0% 2,395 1,951 1,126 1,199 2024 2025 H1.25 H1.26 2028 target 2028 יעד 2024 2025 H1.26 2028 2028target יעד Premiums and deposits NIS B AUM NIS B Gross premiums earned, contributions to pension and
Slide 26: Harel 2028
Harel 2028 • Substantial activity across all insurance business lines, Harel benefits from solid pension, provident, financial services and credit fundamentals of Israeli • Focused on maintaining leading market positions in products economy with high potential for substantial profitable growth • Lea
Slide 27: Harel is the leading insurance, financial and banking brand in Israel
Harel is the leading insurance, financial and banking brand in Israel The only financial brand ranked among the top 100 most trusted and valued brands, for the question: “To what extent do you trust and value the brand?” Strong brand, stronger future Built on trust, performance and long-term value c
Slide 28: Thank You
Thank You For more information: https://pr.harel-group.co.il/
Slide 29: Agenda
Agenda Key messages Results overview Strategy Appendix 29
Slide 30: Growth products comprise most of the CSM balance
Growth products comprise most of the CSM balance, third of the CSM balance to be released to profit in 5 years About 33% of the CSM balance is expected to be Net CSM from growth products summed to NIS 12.4 B released to profit in the next 5 years NIS B CSM net of reinsurance from life and health ins
Slide 31: Harel Insurance: Nostro portfolio breakdown and return
Harel Insurance: Nostro portfolio breakdown and return Breakdown of Nostro portfolio by asset classes (30.6.2026) Nominal Nostro return Real estate (including own use) 7.6% Investments funds, Infrastructure and PE 12.3% 5.9% 8.7% Tradable equities Credit and Corporate 9.1% bonds 4.1% 4.2% Cash and o
Slide 32: A decrease in interest rate is expected to have a positive impact on the profit
A decrease in interest rate is expected to have a positive impact on the profit Insurance contract groups under IFRS 17 include portfolios at asset Impact of interest rate curve on comprehensive position with positive Best Estimate (life risks, medical expenses, critical income (loss)* after tax NIS
Slide 33: Composition of financial debt – consolidated and solo NIS M
Composition of financial debt –consolidated and solo NIS M Financial Liabilities Harel Investments Consolidated 31.12.2025 30.6.2026 Financial Liabilities Harel Investments Solo 31.12.2025 30.6.2026 Harel Investments Solo 1,067 1,017 Financial liabilities (1,067) (1,017) Harel Insurance Tier 2 5,162
Slide 34: Consistent growth in CSM+RA release in growth products
Life, Health and LTC Consistent growth in CSM+RA release in growth products Health and LTC: Breakdown of underwriting profit NIS M Life: Breakdown of underwriting profit NIS M 175 189 201 189 Other (A/E+LC) Other (A/E+LC) 145 16 24 24 42 132 131 164 RA release RA release 21 21 7 12 13 11 CSM release
Slide 35: Definitions
Definitions • Core Profit Calculation Principles: (a) The adjusted profit from investments and financing, net, is calculated based on the nominal risk-free interest rate at the beginning of the period, with the addition of a 2% spread, which reflects the composition of the Company’s nostro investmen
Slide 36: Our Global Partners
Our Global Partners @ Swiss Re CHUBB ®& CHINA RE Allianz @) STARR INSURANCE COMPANIE 36 & QBE GERLING AYA + SS ol all p. 2 DUBAI INSURANC & TOKIO MARINE @ ZURICH Zarich Insurance Company wd HARTFORD @ | Berkley INSURANCE
Slide 37: Legal disclaimer and forward looking statement
Legal disclaimer and forward looking statement This presentation was prepared solely for the purpose of convenience and brevity and it contains partial information in relation to the Company’s results in the periods specified therein. This presentation should not be construed as an offer to purchase
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