Harel
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Harel Group: Total premiums earned in 2010 increased by 10% to about NIS 8 Billion

23/03/2011

The comprehensive profit totaled about NIS 562 million and Shareholders' net profit in 2010 increased by 15% to about NIS 529 million
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The Company’s Directorate approved a dividend distribution totaling NIS 64 million. The company distributed in 2010 dividends totaling NIS 235 million
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Total assets managed by the Group totaled about NIS 104 billion as of December 31, 2010
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Harel Insurance Investments and Financial Services group announced today its fourth quarter financial reports for 2010 as a whole. Here are key points of the financial reports:


General:

  • Total premiums earned by the Harel Group in 2010 totaled about NIS 8 billion, an increase of 10% compared with the year 2009, in which the revenues from premiums totaled about NIS 7.3 billion.
    The company recorded an increase of the premiums earned from all sectors of its activity. In the fourth quarter of 2010, total premiums earned totaled about NIS 2.1 billion, compared to NIS 1.88 billion during the last quarter of 2009, an increase of about 11.7%.
    Total premiums earned in all areas of activity including benefits fees and deposits in the long-term savings activity during 2010 totaled about NIS 11.2 billion, compared to about NIS 9.9 billion last year, an increase of about 13%.
  • The profit before tax for 2010 totaled about NIS 830 million, compared to a profit before tax of about NIS 724 million in 2009, an increase of about 15%. The profit before tax for the fourth quarter totaled about NIS 249 million, compared to NIS 177 million in the last quarter of 2009.
  • Net profit of the Harel Group, attributed to the shareholders, for the year 2010, totaled about NIS 529.8 million, an increase of about 15% compared to a net profit of about NIS 459 million last year. Net profit for the last quarter of 2010 totaled about NIS 163.6 million.
  • The comprehensive profit in 2010 totaled about NIS 562 million, compared to a profit of about NIS 738 million in 2009. The decrease in profit resulted from the fact that capital market yields during the reporting period were lower than the yields in 2009.
  • Harel Group's equity as of December 31, 2010 totaled about NIS 3.6 billion compared to about NIS 3.1 billion at the end of 2009.
    The Group's Directorate approved a dividend distribution of NIS 64 million. Overall, the company distributed dividends for 2010 of about NIS 235 million, where in November 2010 Harel distributed a dividend of about 64 million, while in June 2010 it distributed an additional NIS 107 million.

Activity Sectors:
Life insurance and long term savings sector:

  • Total premiums earned in life insurance and long-term savings increased by 8.4% in 2010 and totaled about NIS 2.96 billion, compared to NIS 2.73 billion in 2009. The increase in premiums compared to last year, emanates from new sales and from one-time premiums.
  • Total benefits fees collected by the group from pension activities totaled about NIS 1.9 billion in 2010 compared to about NIS 1.5 billion in 2009, an increase of about 31%.
  • The profit before tax from this sector totaled about NIS 413 million, compared to a profit before tax of about NIS 351 million in 2009. The increase of 17.4% in profit compared to last year, resulted from the fact that in 2009 the variable fees collected amount was negligible compared to 2010.
  • The comprehensive profit of Harel Group from this activity sector totaled about NIS 449 million, compared to a profit of about NIS 475 million last year.
  • Number of members in pension funds managed by the Harel Group as of December 31, 2010 is 504,126 members, of whom 317,972 are active members, an increase of about 37% in the number of active members compared with the end of 2009.
  • Total assets managed by the pension funds as of December 31, 2010 totaled about NIS 11.7 billion, compared to about NIS 8.9 billion at December 31, 2009, an increase of about 31%.
  • The Group's insurance companies have substantial capital surpluses, in relation to regulatory capital requirements. Harel Insurance has capital surplus of about NIS 639 million, Dikla has capital surplus of about NIS 183 million and  EMI has about NIS 165 million.

Health Insurance Sector:

  • The total sum of health insurance premiums earned increased in 2010, compared to 2009, by about 13% and totaled about NIS 2.1 billion.
  • Health insurance business profit (before tax) in 2010 totaled about NIS 220 million, similar to the profit before tax totaling about NIS 222 million, which was recorded in 2009.
  • The comprehensive profit from the health insurance sector in 2010 totaled about NIS 227 million, a decrease of about 13% compared to the profit of about NIS 261 million in 2009. The decrease in the comprehensive profit is due mainly to the effect of capital market yields which were lower than the yields in the same period last year.

General insurance Sector:

  • Total gross premiums in 2010 totaled about NIS 2.9 billion, an increase of about 3% compared with 2009. The increase resulted from an increase in activity in the motor property branches, from an increase in premiums for property and other sectors, and from the inclusion, from the first time of EMI activity as part of this activity sector. Excluding premiums transferred to Karnit in the compulsory automobile branch, premium growth rate is even higher, amounting to about 5.7%.
  • The profit before tax from general insurance in 2010 totaled about NIS 142 million compared to about NIS 180 million in 2009, a decrease of about 21% compared with 2009, due to the effect of capital market on the investment gains. The comprehensive profit in this sector in 2010 totaled about NIS 130 million compared to a comprehensive profit of about NIS 267 million in 2009.

Finances Sector:

  • Income of the Harel Group in the capital market and financial services sector for 2010 totaled about NIS 235 million compared to about NIS 166 million in 2009. Increase of about 42% which is primarily due to an increase in the average volume of managed assets. The comprehensive profit from this sector totaled about NIS 31 million, compared with a comprehensive loss of about NIS 23 million in 2009.
  • The scope of managed assets in the capital market and financial services sector, totaled about NIS 26 billion, as of December 31, 2010, an increase of about 44% compared to 2009. Most of the increase in managed assets is due to the increase in assets managed by the trust funds (both for capital raising and because of increases in value) and a result of continued expansion of activity in traded notes.

International Sector:

  • Total sum of premiums earned in the international insurance companies sector in 2010 totaled about NIS 96 million. In total, this sector turned a loss (before tax) of approximately NIS 32 million. In 2009, international sector premiums amounted to approximately NIS 53 million and the loss amounted to approximately NIS 20 million. The loss in the international insurance companies sector resulted from the fact that the companies began their insurance activities a relatively short period of time ago, and therefore these are the first steps of the companies’ activity and penetration of local markets in which the companies operate.
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