Harel Insurance Investments & Financial Services (HARL) Q3 2023 earnings summary

Executive summary

• Q3.23 shareholders’ comprehensive income was NIS 271m, versus a NIS 249m loss in Q3.22; 9M.23 was NIS 397m, versus a NIS 359m loss. 9M net profit was NIS 213m, versus NIS 527m.

• Premiums, benefit contributions and investment contract receipts rose 3.3% in 9M.23; managed assets reached NIS 411.6bn at September 30, 2023.

Financial highlights

• Gross premiums, benefit contributions and investment contract receipts totaled NIS 29.1bn in 9M.23, up 3.3% YoY; Q3.23 increased 7%.

• 9M gross earned premiums were NIS 13,394m, versus NIS 12,872m; total income was NIS 18,431m, versus NIS 7,119m.

• Q3 net profit rose to NIS 304m from NIS 87m; 9M profit before tax was NIS 277m, versus NIS 759m.

• Total assets were NIS 143.2bn and total equity NIS 8.8bn at September 30, 2023.

Segment performance

• Life assurance and long-term savings comprehensive income was NIS 194m, versus a NIS 684m loss; life assurance premiums were NIS 4.9bn, down 2.9% due to lower lump-sum deposits.

• Non-life comprehensive income was NIS 227m, versus NIS 34m; motor underwriting improved with portfolio optimization, higher average premiums and lower average claims, partly offset by Pool losses.

• Health comprehensive income was NIS 69m, versus NIS 368m; group and medication underwriting improved, partly offset by higher ambulatory claims. Health premiums rose 9.4% to NIS 4.8bn.

• Pension contributions rose 16.7% to NIS 10bn; provident contributions rose 3.1% to NIS 3.5bn. Their AUM increased 13% and 11%, respectively, from YE2022.

• Financial-services comprehensive income was NIS 58m, versus NIS 48m; revenue rose to NIS 253m from NIS 186m. Overseas insurance comprehensive loss narrowed to NIS 12m from NIS 25m.