Harel
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Harel Group: Total premiums earned for the first quarter of the year 2011 an increased by 9.2% to about NIS 2.1 billion

29/05/2011

The net profit for the first quarter totaled about NIS 110 million; the comprehensive profit for the first quarter totaled to about NIS 79 million

Harel presents an increase of about 12% in EV, embedded value of the group totaled about NIS 6.9 billion

The EV of Harel Insurance Company at the end of 2010 increased by about 12% to about NIS 6.3 billion; the EV of Dikla increased by about 5.5% to about NIS 580 million

The Company's Directorate approved a dividend distribution of NIS 42 million


The Harel Insurance Investments and Financial Services Group announced today their financial reports of the first quarter.
The following are the key points of the financial reports:

 

General

  • Total premiums earned by the Harel Group for the first quarter of the year 2011 totaled about NIS 2.1 billion, compared to NIS 1.9 billion in for the same period the previous year, an increase of about 9.2%.
  • Profit before tax for the first quarter of 2011 totaled about NIS 170 million, compared to Profit before tax of about NIS 294 million for the first quarter of 2010, a decrease of about 42%.
  • Net profit of the Harel Group, attributed to the shareholders, for the first quarter of the year 2011 totaled about NIS 110 million, compared to a net profit totaling about NIS 187 million for the same period the previous year.

    Comprehensive profit
    , attributed to the shareholders, totaled for the first quarter of the year 2011 totaled about NIS 79 million, compared to comprehensive profit of about NIS 233 million for the first quarter of 2010.  The decrease in profit results mainly from the influence of the capital market, in which the yields were significantly less in relation for the same period the previous year, from decrease in fluctuating management fees and from positive inflation in relation to negative inflation for the same period the previous year.
  • Harel Group's equity as of the 31st of March 2011 totaled about NIS 3.6 billion, similar to the total equity as of the 31st of December 2010.
  • Group's Total balance-sheet at the end of the first quarter of 2011 totaled about NIS 53.3 billion, as compared to about NIS 52.3 billion at the end of 2010.
  • Total assets managed by the group totaled as of the 31st of March 2011 about NIS 102 billion.
  • The Board of Directors of the Group decided to approve the distribution of dividend for a total of about NIS 42 million, and this in addition to the dividend of the total of about NIS 64 million that has been distributed during last April.
  • The Company's Directorate approved a dividend distribution of NIS 42 million adding to a dividend of about NIS 64 million that the company distributed during April 2011.

Activity sectors
      Life insurance and long-term savings sector:

  • Total premiums earned in the life insurance and long-term savings sector increased by about12.7% for the first quarter of the year 2011 and totaled about NIS 777 million, compared to about NIS 690 million for the same period the previous year..
  • Profit before tax, from this sector for the first quarter of the year 2011 totaled about NIS 98 million, compared to about NIS 147 for the same period the previous year.
  • Total comprehensive profit from this activity sector for the first quarter of the year 2011   totaled about NIS 81 million, compared to about NIS 187 million for the same period the previous year. The decline in revenue results mainly from the influence of the capital market of which the yields were less in relation to the same period for the previous year, erosion of the financial profit manly because of the positive index for the reporting period as compared to the negative index for the same period the previous year. Following this, fluctuating management fees were collected for a negligible amount compared to the first quarter of the year 2010.
  • Number of members in the pension funds managed by the Harel Group as of the 31st of March 2011 is 529,941 members, from these 322,324 active members, increase of about 38% in the number of active members compared to end of the year 2010.
  • Total assets managed by pension funds as of the 31st of March 2011 totaled about of NIS 12.4 billion, compared to the total assets of about NIS 11.8 billion as of the 31st of December 2010, an increase of 5%. The increase results, among others, from the increase in the number of active members and the increase in the rate of allocation of members in compulsory pension funds.
  • Total benefit fees collected by the group from pension activities for the first quarter of 2011 totaled about NIS 530 million, compared to about NIS 394 million as of the 31st of March 2010, an increase of about 34%.
  • The profit before tax from pension activity totaled about NIS 9 million, compared to about NIS 5 million for the same period the previous year.

      Health Insurance Sector:

  • The total sum of health insurance premiums earned for the first quarter of 2011 totaled about NIS 582 million, compared to about NIS 468 for the same period the previous year. an increase of about 24%. The total sum of health insurance premiums earned in the sector for the reporting period is about 28% of the total premiums earned in the group.
  • Health insurance business (Profit before tax) for the first quarter of 2011 totaled NIS 47 million, compared to the profit of about NIS 54 million recorded for the same period the previous year
  • Comprehensive profit before tax from this sector for the first quarter of 2011 totaled about NIS 40 million compared to about NIS 64 million for the same period the previous year, a decrease of about 37%. The decrease in comprehensive profit in relation to the same period the previous year results mainly from the influence of the capital market of which the yields were less in relation to the same period for the previous year, manly because of the positive index for the reporting period as compared to the negative index for the same period the previous year and also because of the increase in claims, mainly in nursing insurance.
  • Total gross premiums for the first quarter of the year 2011 totaled about NIS 934 million compared to about NIS 989 million for the first quarter of the year 2010. The decrease mainly results from Harel Insurances share in the motor insurance for state employees and because of the one-time premiums of the liabilities and other branches of the previous period last year.
  • Profit before tax from general insurance for the first quarter of the year 2011 totaled about NIS 37 million, compared to about NIS 60 million in the first quarter of the year 2010, decrease of about 37%, The decrease in profit results mainly from the influence of the capital market, in which the yields were significantly less in relation for the same period the previous year, and from positive inflation in relation to negative inflation for the same period the previous year.
  • The comprehensive profit in this sector for the first quarter of 2011 totaled about NIS 9.6 million compared to about NIS 78 million for the same period the previous year. The decline results mainly from the influence of the capital market which yields were less than the yields for the same period the previous year

      Finances sector:

  • Income of the Harel Group in the capital market and financial services sector for the first quarter of the year 2011 totaled about NIS 65 million compared to about NIS 56 million for the first quarter of the year 2010, an increase of about 15%. The increase results mainly from the increase in average volume of the managed assets in the report period in relation to the average volume for the same period the previous year and from increase in revenue of stock exchange members.
  • The comprehensive profit from this sector totaled about NIS 11 million compared to the comprehensive profit of a total of about NIS 9.5 million for the same period the previous year.. The increase in profit results from the management fees as a result of the increase in assets managed by the trust funds.
  • Assets managed in the capital market and financial services sector as of the 31st of March, totaled about NIS 26.3 billion, compared to about NIS 26 billion at the end of the year 2010.

      International Sector:

  • Total sum of premiums earned in the international insurance companies sector for the first quarter of the year 2011 totaled about NIS 30 million compared to about NIS 22 million for the same period the previous year, an increase rate of about 37%.
  • The loss before tax for the report period totaled about NIS 1.6 million compared to a loss of about NIS 9 million for the same period the previous year.
  • The comprehensive loss for the first quarter of the year 2011 totaled about NIS 3.7 million compared about NIS 7 million for the same period the previous year.
  • 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.

Embedded value in (EV) activity

Harel group presents an increase of about 12% in EV. The embedded value of the group totaled about NIS 6.9 billion.

  • The embedded value of Harel Insurance including financial transactions, as of the 31st of December 2010, increased by about NIS 6.3 billion compared to NIS 5.6 million as of the 31st of December 2009, an increase of about 12%.
  • The Value of In-Force (VIF) in life and health insurances of Harel increased by about 4% and totaled about NIS 3.6 million. The VIF in pension totaled about NIS 1 billions, an increase by about 37% compared to the previous year.
  • The embedded value of Dikla including financial business, as of the 31st of December 2010, increased to about NIS 580 million compared to NIS 543 million as of the 31st of December 2009, an increase of about 7%.
  • The Value of In-Force (VIF) in life and health insurances of Dikla increased by about 21% and totaled about NIS 285 million.
  • Value of new transactions regarding life insurance business, health and finance in Harel Insurance (VNB) totaled about NIS 426 million, compared to about NIS 371 million for the year 2009, an increase of about 15%. The value of the new business of Dikla totaled about NIS 89 million, compared to about NIS 57 million for the year 2009, an increase of about 56%.
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