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

Executive summary

• Q1 2025 net profit was NIS 497M vs. NIS 240M YoY; comprehensive income before tax rose to NIS 782M from NIS 411M, and reported ROE was 22%.

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

• Insurance-business profit was NIS 680M, with underwriting profit of NIS 543M, net investments and finance income of NIS 178M, and operating expenses of NIS 41M.

Financial highlights

• Gross earned premiums, benefit contributions and investment-contract receipts totaled NIS 10.662B, up 7.4% YoY.

• AUM was NIS 513.7B at March 31, 2025, vs. NIS 451.6B a year earlier and NIS 511.5B at December 31, 2024.

• Total assets were NIS 154.9B at March 31, 2025, vs. NIS 142.5B a year earlier; equity was NIS 10.4B at quarter-end.

• Profit from insurance services was NIS 543M vs. NIS 467M; net investment and financing income was NIS 374M vs. a NIS 186M loss.

• Basic and diluted EPS were NIS 2.40 vs. NIS 1.14 YoY.

Outlook and guidance

• 2026 targets include NIS 1.9–2.1B comprehensive income after tax and 18%–19% ROE; adjusted pre-tax profit and adjusted ROE targets are NIS 1.9–2.1B and 18%–19%.

• Net CSM was NIS 16.5B at March 31, 2025; NIS 5.6B, or 34%, is expected to be released to profit over five years.

• New business CSM equaled 102% of released CSM; for growth products, new business CSM was 137% of releases, with NIS 409M of growth-product new business CSM vs. NIS 400M released.

• Strategic priorities include improving insurance profitability, diversifying revenues, expanding non-insurance activities and growing profitable products.