Harel Insurance Investments & Financial Services Ltd. June 2012

Transcription

1 Harel Insurance Investments & Financial Services Ltd. June

2 Harel Insurance Investments & Financial Services Ltd. 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 no reliance should be based 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 being provided solely for your information and may not be reproduced, redistributed or forwarded, directly or indirectly, in any form to any other person nor published, entirely or partially, for any purpose. Distributing this document may be restricted by law and persons receiving this document should be aware of such restrictions and observe them accordingly. By accepting this report you agree to be bound by the foregoing instructions. Statements for the Company s future business, financial condition and results of operations are subject to risks and uncertainties, which may cause actual results to differ materially from those projected. Such future focused statements include, but are not limited to, product demand, pricing, market acceptance, 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 Authorities. 2

3 Agenda Group profile Insurance Financial services Vision 3

4 Agenda Group profile Insurance Financial services Vision 4

5 Group Profile Lines of Business F I R E Financial Services Insurance Real Estate 5

6 Group Profile Revenue of premiums earned and benefit fees at Approximately NIS 6.5 billion Annual Revenues from premiums earned at Approximately NIS 8.6 billion Shareholders equity NIS 3.8 billion as of June 30, 2012 Market Cap - NIS 2.1 billion as of #1 in Health Insurance #1 in Non-Life insurance (excluding activity abroad) #3 in Provident Funds in compare to other insurance companies #2 in Mutual Funds #4 in Life Insurance #4 in Pension Total AUM Approximately NIS billion as of

7 Group Profile Historical Development Hamishmar partnership founded by Herbert Bry Establishment of Harel Insurance Investments Ltd.: IPO on TASE with 25% free float raised $7.5 million Acquisition of 50% of the life insurance portfolio of Yardenya Insurance Company Acquisition of 100% of shares of Dikla Insurance Company through a 65% owned subsidiary Acquisition of pension funds and provident funds Acquisition of Gilad New Pension Fund Acquisition of EMI- Ezer mortgage insurance company Acquisition of Dikla Founding of Harel Insurance Company Acquisition of Shiloah Insurance Company Acquisition of Sahar Israel Insurance Company Acquisition of 87% of Zion Holdings (the other 13% were acquired in 1983) Acquisition of mutual funds and provident funds from Bank Leumi Establishment of an insurance company in Greece (Interasco Societe Anonyme General Insurance Company) Acquisition of 33.3% of ICIC (Credit Insurance company) Acquisition of Tzava Hakeva (Regular Army) Saving Fund Acquisition of 87% of an insurance company in Turkey (Turk Nippon Sigorta)

8 Group Profile Ownership Distribution The Public 49.8% The Hamburger Family 50.2% * As of

9 קבוצת הראל ביטוח ופיננסים Group Profile Harel Insurance Investments & Financial Services Ltd. 100% 100% 100% 33.3% Harel Finance Holding Ltd. Harel Insurance Company Ltd. Insurance Company aboard Turk Nippon Interasco The Israel Credit Insurance Company Ltd. (ICIC) 100% 100% 100% 100% Insurance Agencies Pension Funds Provident Funds and Education Funds E.M.I. Ezer Insurance Company Ltd. Mortgage Dikla Insurance Company Ltd. 9

10 Group Profile Profit & ROE NIS Millions comprehensive Profit Return of Equity % 12.3% 17.5% 18.6% 16.6% 11.2% 19.6% 22.5% 29.5% 13.5% 25.5% 24.0% 18.6% 16.2% 25.0% 16.0% 2.0% 5.0% 12.0% % 10

11 Group Profile 120 Total Assets Under Management NIS Billions Portfolio management ETN Mutual funds Provident funds Pension funds Insurance

12 Group Profile Changes in shareholders equity attributable to company shareholders NIS Millions 3'578 3'525 3'767 2'933 3' Shareholders equity attributable to company shareholders *NIS Millions '000 1'081 2'433 2'397 2'135 1'754 1' * As of 31 December

13 Group Profile Dividend History NIS Millions *The company did not distribute dividends in 2009 in compliance with the directive of the "Control of Insurance. **During March 2011 the Company s Directorate approved a dividend distribution of about Approximately NIS 64 million to share holders of Harel Insurance Investments & Financial Services Ltd. ***During may 2011 the Company s Directorate approved a dividend distribution of about Approximately NIS 42 million to share holders of Harel Insurance Investments & Financial Services Ltd. 13

14 Group Profile Share Price Performance Tel Aviv HAREL ---- IBI Insurance Index Trading Data - As of 12 August 2012 Share price 12M high/low Market cap. (mil) / ,103 14

15 Agenda Group profile Insurance Financial services Vision 15

16 Insurance Insurance Premiums earned NIS Millions Non-life insurance abroad Provident contributions 11, , '325 Pesion contributions Health insurance Non-life insurance Life insurance 7,655 6, , '336 1'498 1'178 2'434 2'671 2'465 9,165 9, ' '115 1'481 1'670 1'822 2'621 2'643 1'248 1'936 2'061 2'852 2'478 2'477 2'810 5, '116 1'159 6, '367 1'362 2'234 2'205 2'393 2'894 2'736 2'966 3'184 1'388 1'419 1'524 1'

17 Insurance 2011 Market Share by Insurance premiums* Life Health Total Phoenix 17.5% Menora 8.0% Other 4.6% Migdal 32.6% Phoenix 18.8% Other 2.8% Migdal 10.1% Clal 22.3% Menora 9.9% Other 11.7% Migdal 20.5% Phoenix 15.6% Clal 22.5% Harel 15.2% Clal 22.1% Harel 40.6% Harel 19.8% Non-Life (not incl. abroad) Non-Life (incl. abroad) Other 25.8% Migdal 9.4% Clal 18.2% Other 23.2% Migdal 8.4% Clal 25.5% Menora 15.2% Phoenix 12.9% Harel 18.5% Menora 13.6% Phoenix 11.6% Harel 17.5% 17 * As of

18 Insurance Non-Life Insurance As of 30 June 2012 #1 in Non-Life Insurance excluding activity abroad Global partner of: Axa, Ace, Chubb, Allianz, Royal & Sun Alliance, Zurich (General Agent for Zurich since 1940), Hdi-Gerling and XL capital, QBE Registered Lloyd's broker since 1935 Specializing in large industrial risks Long term relationships with leading reinsurers around the world At the end of 2008, the Group entered a unique cooperation agreement with the National Indemnity Company, a leading company in the insurance sector and part of the Berkshire Hathaway company. The agreement guaranties Berkshire Hathaway 20% retention in each Harel Group s non-life insurance branches, including liability branches 18

19 Insurance Non-life Insurance NIS Millions Premiums 1,976 2,216 2,483 2,683 2,837 2,852 2,810 1,388 1, comprehensive Profit

20 Insurance Non-life Insurance NIS Millions Premiums Increase (Decrease) Compulsory Motor (5%) Motor Property (4%) Other Property % Other Liability % Mortgage Insurance (31%) 2,962 2,847 1,586 1,615 2% 20 Comprehensive Increase Income (Decrease) Compulsory Motor % Motor Property 24 ( 35) ( 13) 4 - Other Property Other Liability 7 ( 15) ( 7) 5 - Mortgage Insurance 13 ( 2) ( 6)

21 Insurance Non-Life Insurance abroad As part of the Group s strategic growth, activities in Greece and Turkey were established during the last few years Turning to these markets was based on the significant potential compared to Israel and western countries These activities are still in their establishment stages and we foresee the demand for much investment in the coming years 21

22 Insurance Health Insurance As of 30 June 2012 #1 in Health insurance Well known as market leader Over 75 years of experience and accumulated knowledge in the field Line of business with more than 10% growth per annum Long term, consistently high profitability Extensive contacts with medical institutions in Israel and abroad More than 3 million insured parties Advanced and professional service structure Unique products in the industry, some exclusive Cooperation with wanted medical institutions Market share - Approximately 40% 22

23 Insurance Health Insurance NIS Millions Premiums '014 1'178 1'336 1'505 1'678 1'822 2'061 2'477 1'159 1' comprehensive Profit

24 Insurance Life Insurance As of 30 June 2012 One of the highest proportions of personal insurance in the industry High share of profitable term life and other risk covers Experts in structuring early retirement plans positive sales results single premium savings Total premiums earned Approximately NIS 1,596 million Market share - Approximately 7.6% 24

25 Insurance Life Premiums NIS Millions 1'901 1'888 1'957 2'234 2'204 2'393 2'894 2'736 2'966 3'184 1'524 1' Premiums distribution H Other % Managers Isurance % 25 Trm % Personal Insurance %

26 Insurance Life Insurance NIS Millions Life Insurance NIS Millions 35'000 30'000 25'000 20'000 15'000 10'000 5' % 3.34% 29'945 28'531 27' % 2.77% 2.78% 23' % 2.48% 2.57% 18'765 18'426 16'668 15' % 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Reserves Redemptions Ratio 26

27 Insurance Pension Funds As of 31 March 2012 High growth Over 2 billions Benefit fees collection in a year, for the period Approximately NIS 1,367 million Total assets management - NIS 15.5 billions Market share - Approximately 12.9% 27

28 Insurance Pension Figures NIS Millions Harel Increase Total number of members 629, , % Total assets 15,540 13, % Harel Increase Benefit fees collected by the pension funds 1,367 1, % Market share (As of 31 December 2011) HAREL 12.9% Other 87.1% 28

29 Insurance Provident Funds As of 30 June funds with 36 investments options Approximately 581,000 clients Over 650,000 accounts Total assets Management - NIS 22.5 billions Management fees Approximately NIS millions Profit before tax - Approximately NIS 28 millions Market share Approximately 7.6% 29

30 Agenda Group profile Insurance Financial services Vision 30

31 Harel Finance 31 Activities, products & market segment As of 30 June 2012 The scope of managed assets in the capital markets and financial services sector of the group approximately NIS 27 billion The income of the group from the capital market and financial services activity - approximately NIS 99.6 million The profit before tax from the activity in the capital market and financial services sector - approximately NIS 9.5 million The comprehensive profit before tax from activity in the capital market and financial services sector approximately NIS 9.5 million Mutual Funds Assets Under Management (AUM) totaling approximately NIS 18.7 billion. Market share of approximately 12% (as of 30 June 2012) Member of TASE Tel Aviv Stock exchange - approximately 4,000 clients. Assets in Custody approximately NIS 24.8 billion* Portfolio management over 1,200 managed accounts with total AUM of approximately NIS 3.8 billion Financial Products 45 ETN (Exchanged Traded Notes), 4 CN (certificate of Deposit), Total AUM Approximately NIS 4.1 billions Asset Management compared to Investment Banking * (incl. interested and related parties)

32 Finance Development in Mutual Funds NIS Millions Mutual Funds (Owner) Total assets Total assets Total assets Market share Psagot (York) 28,234 24,740 27, % Harel-Pia (Harel) 20,754 16,985 18, % Excellence (Including Prisma) 19,543 17,987 16, % Migdal Capital Markets (Migdal Insurance) 14,215 15,350 16, % Meytav 9,965 16,691 15, % Others 63,194 49,783 56, % Total 155, , , % 32

33 Agenda Group profile Insurance Financial services Vision 33

34 Social Responsibility Harel Group, one of Israel's leading companies, places paramount importance on all matters related to corporate responsibility and strong community involvement. The Group's contribution to the good of the community amounted to about NIS 3.7 million in 2011, compared with NIS 2.8 million in 2010, and NIS 2.5 million in

35 Vision To Persist be the best Insurance & Finance group in Israel Continue to achieve high revenues and profitability in all areas of activity concentration of effort in profitable growth Continue to lead the launch of the latest products to continue to meet the changing needs of the market Exploitation of business opportunities to expand the types and scope of activity Continue to maintain a unique service to customers and agents with a long-term observation on the good of the client Continue consistent activity in social involvement and help the community with business development 35