Harel Insurance Investments & Financial Services : Summary of Financial Results - Q2- 2023

SUMMARY OF

FINANCIAL

RESULTS

For the Period H1.23 | August 30, 2023

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This document has been prepared by Harel Insurance Investments and Financial Services Ltd. (hereinafter: the Company) solely for the purpose of presenting the Company's business.

The information contained in this document has not been independently verified. No representation or warranty has been expressed or implied and there should be no reliance on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither the Company nor any of its employees or representatives shall bear any liability whatsoever (whether due to negligence or otherwise) for any loss howsoever resulting from using this document or its content or otherwise arising in connection with this document.

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Statements concerning the Company's future business, financial position and results of operations are subject to risks and uncertainties, which may cause actual results to differ materially from those forecasted. Such forward-looking information includes, but is not limited to, product demand, pricing, changing economic conditions, product and technology development risks, the effect of the Company's accounting policies as well as certain other risk factors which are specified from time to time in the Company's reports to the Securities Authority.

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THE BIG PICTURE

Data at June 30, 2023

19(NIS bn, H1.23)	401(NIS bn)
GROSS PREMIUMS	ASSETS UNDER
EARNED,	MANAGEMENT
Benefit Contributions and
amounts received for
Investment Contracts

126(NIS m, H1.23)	93(NIS m, Q2.23)
COMPREHENSIVE	COMPREHENSIVE
INCOME AFTER TAX	INCOME AFTER TAX
Attributed to the	Attributed to the
shareholders	shareholders

169%At December 31, 2022		Aa2.il
SOLVENCY RATIO			HAREL INVESTMENTS
		Midroog
Including the transitional
provisions Aa2 RATING	Over
HAREL INVESTMENTS	4 MILLION	ilAA+
AA+ RATING	customers
HAREL INSURANCE
			HAREL INSURANCE
8.4(NIS bn)			S&P Maalot
	PLATINA PLUS
SHAREHOLDERS
EQUITY			Rating by MAALA CSR
			9 years in a row

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KEY HIGHLIGHTS FOR THE PERIOD

SHIFT TO

PROFITABILITY

CONTINUOUS

GROWTH

IMPROVING

YIELDS

UNDERWRITING IMPROVEMENT IN MOTOR

UNDERWRITING IMPROVEMENT IN HEALTH

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In Q2.23 shareholders' comprehensive income was NIS 93 million compared with a loss of NIS 436 million in Q2.22. In H1.23 shareholders' comprehensive income was NIS 126 million compared with a loss of NIS 110 million in H1.22

Premiums, benefit contributions and amounts received for investment contracts increased by 9.6% in Q2.23 and by 1.4% in H1.23. AUM increased by 10% from YE22, reaching NIS 401 billion

Real Nostro yield improved compared with the corresponding period last year. In H1.23 the real yield was zero and in Q2.23 the real yield was positive

Compulsory motor - decline in average cost of claim, motor property - increase in average premium. Results in H1.23 were also impacted by changes in the risk-free interest curve and decline in illiquidity premium*, that led to a reduction of the liabilities.

Mainly in group policies and cover for medications, due to inclusion of additional medications in the health services basket. Q2.23 results in LTC were impacted by a decline of the risk-free interest curve and decline in illiquidity premium*

• And additional effects including changes in the difference between the fair value and book value of the non-marketable assets and actuarial changes in the corresponding quarter last year.

CONTINIUOUS ACTIVITY GROWTH

33 3.9 3.8

10

4 5.4 5.9

Gross Earned Premiums, Benefit Contributions And Amounts Received For Investment Contracts (NIS bn)

+14%

37 5					H1.23 vs. H1.22:
3.9
4.7					Pension and	+12%
	+1%				Provident Deposits
11.8		+10%		Health Insurance	+10%
	2.3	1.4		Non Life Insurance	+7%
	18.7	19
4.7	2.3	2.3				(4%)
		9.8	Life Assurance
	6.4
5.9	5.5	8.9
	0.7
		0.9
	2.2	2.4	1.1
	1.1	3.3
	2.9	3.1	2.8
	1.2
6.5	1.1
		1.6
	3.5	3.4	1.5
	1.5	1.9

2	21	2	22	H1.22	H1.23	Q2.22	Q2.23
LIFE ASSURANCE					HEALTH INSURANCE
NON-LIFE INSURANCE*				PENSION FUNDS CONTRIBUTIONS
PROVIDENT FUND CONTRIBUTIONS			AMOUNTS RECEIVED FOR INVESTMENT CONTRACTS

*Including results of overseas insurance segment

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