Harel Insurance Investments & Financial Services (HARL) Q2 2024 earnings summary

Executive summary

• H1 net income was NIS 357M vs. a NIS 91M loss; adjusted profit reached NIS 829M, while comprehensive income after tax was NIS 125M.

• Insurance underwriting profit rose 48% to NIS 606M, offsetting negative real Nostro yields and war-related costs of NIS 43M before tax.

Financial highlights

• H1 premiums, contributions and investment-contract receipts totaled NIS 20.51B, up 8.2% YoY; Q2 totaled NIS 10.571B, up 7.8%.

• H1 adjusted profit was NIS 829M vs. NIS 644M; insurance underwriting profit was NIS 606M vs. NIS 410M.

• H1 total income was NIS 12,956M vs. NIS 13,516M, and gross earned premiums were NIS 8,022M vs. NIS 8,896M.

• AUM reached NIS 462.6B at June 30, up 8% from year-end 2023 and 15% YoY.

Outlook and guidance

• Strategic plan targets NIS 500M of additional permanent after-tax profitability by 2026, with a substantial share expected to appear in 2025.

• 2026 targets include AUM of NIS 520B, premiums and deposits of NIS 43.8B, and fee income of NIS 1.91B; forecasts assume a 3% real Nostro return and 3% CPI change.