Harel Insurance Investments & Financial Services (HARL) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was NIS 497M vs. NIS 240M; comprehensive income after tax was NIS 545M, including NIS 543M attributable to shareholders.

• Insurance business pre-tax comprehensive income reached NIS 680M vs. NIS 238M; insurance-service profit was NIS 543M vs. NIS 467M.

• Results reflect IFRS 17 and IFRS 9 adoption from January 1, 2025, with 2024 comparatives restated; market yields and discount-curve movements materially affected results.

Financial highlights

• Premiums and deposits were NIS 10.7B, up 7.4% QoQ; AUM was NIS 514B at March 31, up 0.4% from December 31, 2024.

• Adjusted comprehensive income after tax was NIS 606M vs. NIS 501M; adjusted profit before tax was NIS 868M vs. NIS 771M.

• Profit before tax increased to NIS 715M from NIS 378M; profit attributable to shareholders was NIS 495M vs. NIS 237M.

• Net investment and financing profit was NIS 374M vs. NIS 30M; rising yields generated a positive curve impact of NIS 178M in one measure, vs. a negative NIS 374M in Q1 2024.

Outlook and guidance

• 2026 targets include NIS 1.9–2.1B adjusted pre-tax profit and adjusted ROE of 18%–19%; separate guidance cites NIS 1.9–2.1B comprehensive income after tax at the same ROE target.

• NIS 5.6B, or 34% of the March 31 CSM balance, is expected to release to profit within five years.

• Stochastic-model assimilation is estimated to add hundreds of millions of shekels to life CSM; the estimate was excluded from Q1 reported results.