Harel Insurance Investments & Financial Services (HARL) Q4 2023 earnings summary

Executive summary

• 2023 adjusted profit before tax reached NIS 1.41B, up from NIS 660M in 2022; insurance underwriting profit rose to NIS 975M from NIS 190M.

• Comprehensive income attributable to shareholders was NIS 600M after tax; reported ROE was 7%.

Financial highlights

• Premiums and deposits totaled NIS 39.4B in 2023; AUM was NIS 427.7B.

• Underwriting improvement of NIS 785M comprised non-life +NIS 374M, health +NIS 262M and life +NIS 149M, versus 2022.

• Excess cash at Harel Investments was NIS 2.076B at Dec. 31, 2023, after bank loans and bonds.

Segment performance

• Non-life underwriting profit improved to NIS 284M from a NIS 90M loss; improvement was broad-based, particularly in motor property.

• Health underwriting profit increased to NIS 386M from NIS 124M, reflecting improvement in long-term health, medication cover and personal accidents.

• Life underwriting profit rose to NIS 305M from NIS 156M, supported by risk products and fewer work-disability claims.

• Asset-management comprehensive income improved mainly on higher pension and provident AUM and money-market fund inflows; higher rates and bank-deposit preference reduced investment-contract receipts.

• Credit-segment comprehensive income increased to NIS 103M from NIS 64M, driven by activity growth and higher interest margins; total loans reached NIS 4.0B.