Harel Insurance Investments & Financial Services (HARL) Strategy presentation summary

Scale and financial position

• 2023 premiums and deposits were NIS 39.4B, AUM NIS 428B, equity NIS 8.9B and comprehensive income after tax NIS 600M; ROE was 7%.

• Harel Insurance’s solvency ratio was 167% at June 30, 2023, including transitional measures, representing a NIS 6.3B surplus; Harel Investments had NIS 2.076B excess cash at Dec. 31, 2023.

• Nearly 90 years of operating history, stable family ownership and a long-term outlook underpin a leading position across insurance and financial services.

Strategic priorities

• The strategy launched in Aug. 2022 focuses on fixing insurance profitability, scaling insurance production through stronger distribution and diversifying revenue beyond insurance.

• Execution priorities include operational excellence, accurate pricing, efficient claims management, automation, stronger customer relationships and broader product offerings to existing customers.

• Technology initiatives connect legacy core systems with cloud services and digital tools, supporting automation, service delivery and improved pricing and claims processes.

Insurance and diversification initiatives

• Non-life priorities include improving motor property and long-tail performance, strengthening claims controls and using personal-lines customer relationships to offer additional products and services.

• Life priorities include growing personal-lines risk products with existing customers and improving claims handling, particularly in disability coverage.

• Health priorities include focusing on personal lines, reducing group long-term-care exposure and using automation and digitalization to improve profitability; supplementary cover represented 60% of new health-policy sales over the prior two years.

• Asset management aims to increase sales to customers with limited product holdings and use automation to improve profitability; non-insurance growth areas include SME credit, property financing, Harel 60+, financial guarantees and agency investments.