Investments - Overview
Harel Insurance Investments and Financial Services Ltd. Group is active in the insurance and financial services industries - health insurance (medical, long-term care, dental insurance and travel insurance), non-life insurance (motor insurance, homeowners insurance, liabilities (indemnity) insurance, mortgage insurance and credit insurance), life assurance, pension funds, provident funds, education funds, mutual funds, portfolio management, ETFs and other financial services.
Harel Group has more than 80 years of insurance experience. The Group's operations began when Ernst and Margot Hamburger, who immigrated to Israel from Germany, founded Hamishmar Insurance Agency in 1935. In 1975, the family established Harel Insurance Company Ltd. and some seven years later both Harel Insurance and Hamishmar Insurance Agency became subsidiaries of Harel Hamishmar Investments Ltd. which was first floated on the Tel Aviv Stock Exchange in 1982. In 2007, the Company's name was changed to Harel Insurance Investments & Financial Services Ltd. and it is currently listed on the Tel Aviv Stock Exchange TA-35 Index.
According to the Q3 2019 financial statements, the Group is Israel's largest insurance group with respect to volume of premiums, accounting for 22.1% of the market. In the health insurance sector, Harel Group is the largest and most dominant, with a market segment of 37.3%. In non-life (general) insurance, the Group is the largest insurance group with 15% of the market, and with respect to the volume of premiums in life assurance, the Group is the second largest with a market segment of 19.7%. In the new pension fund management sector, the Group has a market segment of 18.1% at September 30, 2019. In the provident fund management sector, the Group has a market segment of 8.5% at September 30, 2019. In the mutual fund management sector, the Group has a market segment of 12.2% at September 30, 2019.
Harel Insurance & Finance is the largest insurance and finance group in Israel with a market share of 22.1% in 2019. Harel Group ended 2019 with total gross earned premiums, benefit contributions and amounts received for investment contracts of NIS 31 billion. The Company's balance sheet at December 31, 2019 was NIS 115 billion, compared with NIS 100 billion at December 31, 2018. At December 31, 2019, the Group held total assets under management (AUM) in insurance, pension funds, provident funds, mutual funds and financial services of NIS 283 billion. At the end of 2019, Harel Group had equity of NIS 6.4 billion. The Group's comprehensive income in 2019 was NIS 760 million, reflecting Return on Equity of 12%. Additionally, the Group distributed dividends of NIS 240 million to its shareholders in 2019.
Harel operates through several key subsidiaries:
Harel Insurance Company Ltd. (100%)
Harel has many years of professional experience and knowledge and these are reflected in all the branches of insurance in which it operates:
Health Insurance (covering health insurance, long-term care, dental insurance and travel insurance): Harel is the largest and foremost company in this sector with more than 3 million insureds who benefit from its economies of scale as well as from its advanced, professional service infrastructure and long-standing, extensive and close ties with medical institutions, hospitals and medical service providers in Israel and abroad. In 2019, Harel's activity in the health insurance sector amounted to NIS 5 billion.
Life assurance and long-term savings (covering life assurance, pensions, provident and education funds): In 2019, Harel earned total premiums and collected benefit contributions of more than NIS 19 billion, a 7% increase over 2018. The Group ranks second in Israel's life assurance sector with a market segment of 19.7% at September 30, 2019. In the new pension fund management sector, the Group has a market segment of 18.1% at September 30, 2019. In the provident fund management sector, the Group has a market segment of 8.5% at September 30, 2019.
Additionally, over the last ten years and more, Harel has expanded its investments in Israel as well as in international markets and it continues to broaden its horizons, posting consistent and constant growth in credit activity, infrastructure projects and income-generating property, including private hospitals.
Non-life insurance (covering motor insurance, homeowners insurance, liabilities (indemnity) insurance, mortgage insurance and credit insurance): Harel continues to lead the market as Israel's largest non-life insurer with gross premiums of NIS 3.5 billion in 2019.
Harel insures the Israeli branches of numerous multinational corporations that operate in Israel and it is a Global Partner of giant international companies, such as:
Zurich, Allianx, AXA-XL, China Taiping Reinsurance Co. Ltd. (TPRe), Royal Sun Alliance, Hartford, HDI-Global, Tokio Marine Kiln, Swiss Re, QBE, If P&C, BHSI, Sompo Japan Nipponkoa Insurance and Chubb.
Harel Finance Holdings Ltd. (100%)
Harel Group's financial services arm which focuses on mutual fund management (in 2019, this activity was merged with the Group's ETF management activity) and portfolio management. Harel offers a range of more than 250 mutual funds in a selection of channels (shares, bonds, shekel, index and sector-based funds, and more). At December 31, 2019, Harel Finance has AUM of NIS 60 billion. The Company's managed products and portfolio management service are directed towards a broad range of customers: private equity customers, corporations and financial institutions. The company is a leader in the Israeli market in its areas of business.
about Harel Finance Holdings Ltd.>
ICIC - Israel Credit Insurance Company Ltd. (50%)
The Israel Credit Insurance Company Ltd. (50%) is engaged in credit insurance (for exports and the domestic market) and it is one of the leading players in this market. The company is owned jointly by Harel and Euler Hermes, which is considered the world's largest credit insurance company.
To ICIC's website>
EMI - Ezer Mortgage Insurance Company Ltd. (100%)
The company is an insurer in Israel dealing with mortgage credit insurance
To EMI's website >
Interasco Societe Anonyme General Insurance S.A.G.I (94%)
An insurance company incorporated in Greece. The company operates in Greece providing non-life insurance and health insurance.
To the website of: Interasco Societe Anonyme General Insurance S.A.G.I >
Turk Nippon Sigorta A.S. (100%)
An insurance company incorporated in Turkey. The company operates in Turkey providing non-life insurance and health insurance.
To the website of: Turk Nippon Sigorta A.S. >
Corporate Social Responsibility (CSR)
As one of Israel's most prominent insurance and finance groups, Harel attributes supreme importance to corporate social responsibility. Harel is dedicated to social commitment and it is involved in, contributes towards and supports a variety of charitable organizations as well as encouraging its employees to be actively involved in and contribute to the community at large. Despite the fact that it is one of Israel's largest insurance groups, Harel continues to preserve a family-oriented atmosphere and values, with the emphasis on integrity, honesty, trust and personal service tailored to the customer's needs.
In 2019, for the fifth year in succession, Harel was awarded the Platinum Plus Ranking, the highest award given by Maala which rates dozens of companies in the economy for CSR. Additionally, in 2019, Harel published the Group's fourth CSR Report for 2017-2018.