SUMMARY OF FINANCIAL RESULTS F O R T H E P E R I O D H 1 . 1 8 - PowerPoint PPT Presentation

SUMMARY OF FINANCIAL RESULTS F O R T H E P E R I O D H 1 . 1 8

DISCLAIMER 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. This document is provided solely for your information and may not be reproduced, distributed or forwarded, directly or indirectly, in any form to any other person, nor published, wholly or partially, for any purpose. This document contains information that under Israel’s Securities Law, 5728-1968, may be deemed or considered Inside Information of Harel Insurance Investments & Financial Services Ltd. Any use of Inside Information is illegal. Distribution of this document may be restricted by law and persons receiving this document should be aware of such restrictions and observe them accordingly. In receiving this report you agree to be bound by the foregoing instructions. 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. 2

ABOUT US Harel Insurance Investments & Financial Services Ltd. # LARGEST PLATINUM PLUS + AA RATING** OVER 3 MILLION INSURANCE RATING FROM MAALA CLIENTS COMPANY IN CSR 4 YEARS IN A ROW * ISRAEL 3 * Measured according to income from premiums for the year 2017 ** The rating refers to Harel Insurance, a wholly owned subsidiary of the Company

ABOUT US Harel Insurance Investments & Financial Services Ltd. about ( N I S B I L L I O N ) Data is correct for 30.06.18 about about about about Solvency II - surplus Market cap Total earned Assets Under Equity attributed (at December 31, (at August 22, premiums and Management to shareholders 2016) 2018) contributions (AUM) 4

COMPREHENSIVE INCOME AFTER TAX AND ROE (IN ANNUAL TERMS) ( N I S M I L L I O N ) COMPREHENSIVE RETURN ON EQUITY INCOME AFTER TAX 846 16% 16% 14% 12% 9% 9% 437 423 8% 381 250 183 170 H1.17 H1.18 Q2.17 Q2.18 H1.17 H1.18 Q2.17 Q2.18 5 Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text Dummy Text

EARNED PREMIUMS AND CONTRIBUTIONS, GROSS +15.5% ( N I S M I L L I O N ) 3, +7.5% 3,254 ,4 8,9 8 2,420 1,931 +13.0% 7,221 6,273 5,516 , 99 443 , 49 1,782 301 258 +10.4% 3,146 PROVIDENT CONTRIBUTIONS 1,390 2,944 3,066 3,897 PENSION CONTRIBUTIONS 3,359 , 8 4,424 , 9 242 INSURANCE COMPANIES OVERSEAS 4,163 203 3,964 1,669 866 1,527 713 NON-LIFE INSURANCE 2,001 1,752 2,263 2,166 122 107 841 HEALTH INSURANCE 775 5,078 4,300 4,243 1,160 1,088 2,746 2,504 LIFE ASSURANCE 1,256 1,292 H1.17 H1.18 Q2.17 Q2.18 6 Dummy Text

ASSETS UNDER MANAGEMENT (AUM) AND NOSTRO ASSETS ( N I S B I L L I O N ) 232 220 13 13 15 191 186 185 15 20 167 13 19 14 14 39 13 37 14 15 14 18 12 25 121 32 34 59 55 30 105 33 PORTFOLIO MANAGEMENT * 5 29 6 44 6 27 20 ETNS 4 37 17 31 24 86 MUTUAL FUNDS 25 81 22 71 19 66 62 PROVIDENT FUNDS 14 56 47 42 PENSION FUNDS INSURANCE 3 4 3 8 7 * The data include financial assets issued by the Group that are managed in portfolios Dummy Text

COMPREHENSIVE INCOME BEFORE TAX FROM OPERATING SEGMENTS ( N I S M I L L I O N ) 1, 34 285 34 6 205 644 OTHER CAPITAL 574 110 FINANCE 4 160 150 18 INSURANCE COMPANIES OVERSEAS 336 8 82 101 271 231 123 5 32 74 NON-LIFE INSURANCE 34 594 20 2 158 44 93 44 11 - 15 9 HEALTH 2 347 20 298 9 220 204 138 127 LONG-TERM SAVINGS (21) (3) (7) 015 01 017 H1.17 H1.18 Q2.17 Q2.18 8 Dummy Text

NON-LIFE INSURANCE SEGMENT COMPREHENSIVE INCOME BEFORE TAX ( N I S M I L L I O N ) 123 44 (21) 74 205 82 20 56 53 15 MORTAGE INSURANCE 56 59 104 17 LIABILITIES & OTHER BRANCHES 25 45 - PROPERTY & OTHER BRANCHES 6 77 88 10 48 25 MOTOR PROPERTY 52 28 49 26 19 COMPULSORY MOTOR 14 11 (10) (12) (22) (24) (26) (31) (38) (3) (65) (49) (36) (40) 2015 2016 H1.17 H1.18 Q2.17 2017 Q2.18 9 Dummy Text

LIFE ASSURANCE AND LONG-TERM SAVINGS SEGMENT COMPREHENSIVE INCOME BEFORE TAX ( N I S M I L L I O N ) 594 39 69 347 98 17 25 220 204 44 486 69 22 138 1 7 12 20 PROVIDENT 38 305 7 12 20 PENSION 185 172 160 54 119 53 LIFE INSURANCE 2015 2016 2017 H1.17 H1.18 Q2.17 Q2.18 10 Dummy Text

FINANCIAL SERVICES SEGMENT ( N I S M I L L I O N ) 300 253 202 107 101 55 50 34 20 18 8 9 11 (3) REVENUS H1.17 H1.18 Q2.17 Q2.18 COMPREHENCIVE INCOME BEFORE TAXES* 11 * Comprehensive income before tax includes a write-down for the value of mutual fund activity in the amount of NIS 75 million and NIS 68 million before tax, for 2016 and 2015 respectively Dummy Text

EQUITY – HAREL INSURANCE INVESTMENTS AND FINANCIAL SERVICES +8% ( N I S M I L L I O N ) +3% +8% +5% 5,708 5,564 5,167 4,912 3 8 235 171 461 107 DIVIDEND (NIS MILLION) 6.3 5.5 10.2 1.8 DIVIDEND YIELD (%) 12 Dummy Text

HAREL INSURANCE CAPITAL REQUIREMENTS OLD REGIME ( N I S B I L L I O N ) 7.8 7.6 7.1 1.7 1.7 1.4 6.1 5.9 5.7 SURPLUS CAPITAL REQUIRED CAPITAL 3 8 13 Dummy Text

HAREL INSURANCE CAPITAL SOLVENCY REQUIREMENTS - SOLVENCY RATIO 123% SOLVENCY RATIO 206% ( N I S B I L L I O N ) 1.9  It is emphasized that the model in its current format is extremely sensitive to changes in market and other variables 5.1  Taking into account the dividend of NIS 250 million distributed by Harel Insurance until August 2017, the capital surplus will be reduced from NIS 1.9 billion to 6.0 NIS 1.65 billion and the capital surplus ratio will be 8.5 120%. Taking into account net raisings of liability notes and distribution of the aforementioned dividend, the 4.7 capital surplus will be reduced by NIS 55 million to NIS 1.85 billion, and the capital surplus ratio will be 122% SURPLUS CAPITAL 1.8 REQUIRED CAPITAL MCR INCLUDING (MINIMUM TRANSITIONAL CAPITAL PROVISIONS* REQUIRMENT) 14 * At December 31, 2016, the requirement is 60% of the SCR. The economic solvency ratio report for data at December 31, 2017 will be published on the website on the date of publication of the Periodic Report at Dummy Text September 30, 2018

CAL CALCULA CULATING A TING A NE NEW ROUTE W ROUTE 15

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