Harel Insurance Investments & Financial Services (HARL) Q3 2024 earnings summary

Executive summary

• 9M.24 profit was NIS 736M vs NIS 213M; profit before tax was NIS 1,069M vs NIS 277M, supported by investment income and stronger segment results.

• 9M.24 adjusted profit from insurance, asset management and credit rose to NIS 1,216M from NIS 1,021M; underwriting profit increased to NIS 884M from NIS 682M.

• Growth was led by health and non-life; life results faced war-related claims and PHI pressure, while Turkish operations were affected by inflation and higher reinsurance costs.

Financial highlights

• Q3.24 comprehensive income attributable to shareholders was NIS 547M vs NIS 271M; 9M.24 was NIS 672M vs NIS 397M.

• Q3 profit was NIS 379M vs NIS 304M; total comprehensive income was NIS 549M vs NIS 274M. 9M reported comprehensive income before tax was NIS 980M vs NIS 562M.

• 9M total income was NIS 20,872M vs NIS 18,431M; net investment profit and financing income rose to NIS 8,812M from NIS 5,275M.

• AUM reached NIS 489.7B at September 30, 2024; premiums and deposits were NIS 31.2B for 9M.24.

Outlook and guidance

• 2026 targets include NIS 520B AUM, NIS 43.8B premiums and deposits, NIS 1.91B fee income, NIS 2,217M adjusted core profit and NIS 1,404M underwriting profit.

• Targets assume a 3% real proprietary/Nostro yield; the 2026 adjusted ROE goal is 12.1%. Forecasts depend on strategic-plan execution, market and macroeconomic conditions, and regulation.

• IFRS 17 and IFRS 9 are scheduled to apply from January 1, 2025, with transition at January 1, 2024; preliminary estimates remain subject to review and change.