SUMMARY OF FINANCIAL RESULTS F O R T H E P E R I O D Y T D 3 . 1 - PowerPoint PPT Presentation

SUMMARY OF FINANCIAL RESULTS F O R T H E P E R I O D Y T D 3 . 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. 1 # LARGEST + AA RATING** PLATINUM PLUS OVER 3 MILLION INSURANCE RATING FROM MAALA CLIENTS COMPANY IN CSR 3 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 224 Harel Insurance Investments & Financial Services Ltd. about ( N I S B I L L I O N ) Data is correct for 31.03.18 6.3 about 5 .5 6.1 about about 1.9 about Solvency II - surplus Market cap Total earned Assets Under Equity attributed (at December 31, (at May 28, 2018) premiums and Management to shareholders 2016) 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 19% 16% 423 381 9% 253 8% 6% 80 2015 2016 2017 2015 2016 2017 Q1.17 Q1.18 Q1.17 Q1.18 5

EARNED PREMIUMS AND CONTRIBUTIONS, GROSS + 15.5% ( N I S M I L L I O N ) 23,566 + 7.5% 3,254 20,401 18,978 2,420 1,931 7,221 6,273 5,516 443 301 258 3,146 + 15.7% PROVIDENT CONTRIBUTIONS 2,944 3,066 PENSION CONTRIBUTIONS 6,319 4,424 5,459 4,163 INSURANCE COMPANIES OVERSEAS 3,964 917 678 1,897 NON-LIFE INSURANCE 1,607 120 96 828 752 5,078 HEALTH INSURANCE 4,300 4,243 1,103 1,078 1,454 1,248 LIFE ASSURANCE 2015 2016 2017 Q1.17 Q1.18 6

ASSETS UNDER MANAGEMENT (AUM) AND NOSTRO ASSETS ( N I S B I L L I O N ) 224 218 13 13 15 189 15 184 183 20 13 19 166 14 14 13 37 37 15 14 14 18 12 25 32 34 122 57 55 30 33 5 104 29 6 44 PORTFOLIO MANAGEMENT * 27 6 20 4 37 31 17 24 ETNS 82 25 80 22 MUTUAL FUNDS 70 19 64 61 14 55 PROVIDENT FUNDS 47 41 PENSION FUNDS INSURANCE 2011 2012 2013 2014 2015 2016 2017 2018 Q1 7 * The data include financial assets issued by the Group that are managed in portfolios

COMPREHENSIVE INCOME BEFORE TAX FROM OPERATING SEGMENTS ( N I S M I L L I O N ) 1,234 285 34 6 205 OTHER CAPITAL 574 110 462 FINANCE 150 371 8 INSURANCE COMPANIES OVERSEAS 101 123 5 69 74 2 594 8 NON-LIFE INSURANCE 2 62 23 158 105 HEALTH 298 9 207 3 65 127 LONG-TERM SAVINGS 22 16 (7) (3) -10 2105 2016 2017 Q1.17 Q1.18 8

NON-LIFE INSURANCE SEGMENT COMPREHENSIVE INCOME BEFORE TAX ( N I S M I L L I O N ) 205 123 56 53 74 15 56 59 MORTAGE INSURANCE 104 LIABILITIES & OTHER BRANCHES 65 62 PROPERTY & OTHER BRANCHES 11 13 77 4 3 88 20 24 MOTOR PROPERTY 52 7 23 14 15 7 COMPULSORY MOTOR (12) (22) (24) Q1.17 Q1.18 2017 (65) (49) 2016 2015 9

LIFE ASSURANCE AND LONG-TERM SAVINGS SEGMENT COMPREHENSIVE INCOME BEFORE TAX ( N I S M I L L I O N ) 594 39 69 298 44 207 486 69 PROVIDENT 9 127 11 20 PENSION 185 187 16 54 53 10 LIFE INSURANCE 18 -12 2015 2016 2017 Q1.17 Q1.18 10

FINANCIAL SERVICES SEGMENT ( N I S M I L L I O N ) 300 253 202 52 50 34 9 8 8 (3) REVENUS 2015 2016 2017 Q1.17 Q1.18 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

EQUITY – HAREL INSURANCE INVESTMENTS AND FINANCIAL SERVICES +8% +5% ( N I S M I L L I O N ) 5,538 5,564 5,167 4,912 2015 2016 2017 31.03.18 235 171 461 107 DIVIDEND (NIS MILLION) 6.3 5.5 10.2 1.8 DIVIDEND YIELD (%) 12

HAREL INSURANCE CAPITAL REQUIREMENTS OLD REGIME ( N I S B I L L I O N ) 7.7 7.6 7.1 1.7 1.7 1.4 6.0 5.9 5.7 SURPLUS CAPITAL REQUIRED CAPITAL 2016 2017 31.03.18 13

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  Taking into account the dividend of NIS 250 million 5.1 distributed by Harel Insurance until August 2017, the capital surplus will be reduced from NIS 1.9 billion to NIS 1.65 billion and the capital surplus ratio will be 120%. Taking into account net raisings of liability notes and distribution of the aforementioned dividend, the 6.0 capital surplus will be reduced by NIS 55 million to NIS 8.5 1.85 billion, and the capital surplus ratio will be 122% 4.7 SURPLUS CAPITAL 1.8 REQUIRED CAPITAL 2016 2016 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 June 30, 2018

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