TEL AVIV, Israel, Aug. 26, 2026 /PRNewswire/ -- Harel Insurance Investments and Financial Services, a leading Israeli insurance and financial group (TASE: HARL) ("Harel Insurance Investments", "the Group" or "the Company") today reported its second quarter and first half 2026 results.

Highlights:

   -- Comprehensive income after tax in the second quarter was NIS 1.024 
      billion, 30% increase compared with the corresponding quarter last year; 
      ROE was 37%. 
 
   -- The increase in comprehensive income was driven by higher investment 
      income and growth in core profits, primarily attributable to a 68% 
      increase in core profits from the asset management, credit and equity 
      segments, reflecting continuous growth in assets under management (AUM) 
      and in the credit portfolio. 
 
   -- Comprehensive income after tax in the first half was NIS 1.59 billion, 
      19% increase compared with the corresponding period last year; ROE was 
      27%. 
 
   -- Continuous growth in value creation in life and health insurance: 
      Contractual Service Margin $(CSM)$ from new sales in the first half 
      increased by 23% to NIS 992 million. 
 
   -- Total CSM as of June 30th, 2026, continued to grow and amounted to NIS 
      17.7 billion. 
 
   -- Total premiums, contributions and amounts received for investment 
      contracts grew by 18% to NIS 25.5 billion in the first half, AUM amounted 
      to NIS 638 billion as of June 30th, 2026, 10% increase from YE 2025 and 
      17% increase in the last twelve months. 
 
   -- The Company's Board decided on dividend policy update to quarterly 
      distribution instead of semi- annual. At the same time, the Company has 
      announced a distribution of NIS 400 million dividend; Since the beginning 
      of the year, total dividends and buyback amounted to about NIS 1.5 
      billion. 

Business performance overview:

   -- In 2Q.26 core profits after tax increased by 17% to NIS 637 million, 
      compared with NIS 546 million in the corresponding quarter last year. 
 
   -- In 1H.26 core profits after tax increased by 6% to NIS 1.2 billion, 
      compared with NIS 1.13 billion in the corresponding period last year. 

Insurance:

   -- In 2Q.26 core profits before tax from insurance activity were NIS 699 
      million, compared with NIS 675 million in the corresponding quarter last 
      year. Core profits are calculated based on an annual margin of 2% and 
      excluding special effects. 
 
   -- In 1H.26 core profits before tax from insurance activity were NIS 132. 
      billion, compared with NIS 1.36 billion in the corresponding period last 
      year. The change was mostly due to a decline in core profits in life and 
      health in 1Q.26 due to statistical increase in the claims amounts in life 
      insurance products, partially offset by improvement in core profit in 
      non-life insurance. 
 
   -- The Group continues to increase its outstanding future profit (CSM) 
      thanks to the increase of new sales of growth products (life risk 
      products, medical expenses and critical illness products): CSM as of June 
      30th, 2026 continued to increase and amounted to NIS 17.7 billion. 
 
   -- The future value from new sales (CSM new business) in 1H.26 amounted to 
      NIS 992 million and was 23% higher than the future value of sales in the 
      corresponding period last year. In addition, CSM new business in 1H.26 
      was higher than the NIS 830 million CSM released to profit in this 
      period. This is confirmation of the significant value creation from new 
      sales due to the business focus on risk products. 

Asset management and credit:

   -- Core profits from asset management in 2Q.26 were NIS 131 million, up 58% 
      compared with the corresponding quarter last year, thanks to continuing 
      growth of assets under management and management fees. Asset management 
      segment comprises the pension and provident sectors as well as mutual 
      funds, ETFs and investment contracts, with total assets of NIS 498 
      billion, increase of NIS 48 billion since YE 2025. 
 
   -- Core profits from the credit segment in 2Q.26 increased by 32% to NIS 79 
      million, compared with NIS 60 million in the corresponding quarter last 
      year, thanks to the continuous growth of credit activity. The credit 
      portfolio continued to grow and amounted to NIS 8.8 billion, increase of 
      NIS 2.3 billion in the past 12 months. 

Overview of business segments performance

Health insurance:

   -- In 2Q.26, comprehensive income before tax was NIS 389 million, an 
      improvement of NIS 143 million over the corresponding quarter last year. 
       In 1H.26 comprehensive income before tax was NIS 716 million, an 
      improvement of NIS 163 million over the corresponding period last year. 
 
   -- Underwriting profit in 2Q.26 was NIS 228 million, compared with NIS 267 
      million in the corresponding quarter last year. Underwriting profit in 
      1H.26 was NIS 420 million, compared with NIS 483 million in the 
      corresponding period last year. 

Life insurance:

-- In 2Q.26, comprehensive income before tax was NIS 503 million, an improvement of NIS 139 million over the corresponding quarter last year. In 1H.26 comprehensive income before tax was NIS 527 million, compared with NIS 548 million over the corresponding period last year.

-- Underwriting profit in 2Q.26 was NIS 207 million, an improvement of NIS 37 million over the corresponding quarter last year. Underwriting profit in 1H.26 was NIS 385 million, compared with NIS 428 million in the corresponding period last year.

Non-life insurance:

   -- In 2Q.26, comprehensive income before tax was NIS 294 million, compared 
      with NIS 392 corresponding quarter last year. In 1H.26 comprehensive 
      income before tax was NIS 599 million, increase of NIS 19 million 
      compared with corresponding period last year. 
 
   -- Underwriting profit in 2Q.26 was NIS 126 million, increase of NIS 4 
      million compared with the corresponding quarter last year. Underwriting 
      profit in 1H.26 was NIS 251 million, NIS 38 million increase compared 
      with the corresponding period last year. 

Asset management (pension, provident, financial services and investment contracts):

   -- In 2Q.26, comprehensive income before tax from pension and provident was 
      NIS 70 million, compared with NIS 41 million in the corresponding period 
      last year. In 1H.26, comprehensive income before tax was NIS 112 million, 
      compared with NIS 70 million in the corresponding period last year. 
       Results were affected by an increase in management fees driven by the 
      growth of AUM. 
 
   -- In 2Q.26 comprehensive income before tax from financial services (mutual 
      funds, ETFs) and investment contracts was NIS 57 million, compared with 
      NIS 37 million in the corresponding quarter last year. Of this, the 
      profit of Harel Finance was NIS 49 million, compared with NIS 30 million 
      in the corresponding quarter last year. In 1H.26 comprehensive income 
      before tax from financial services (mutual funds, ETFs) and investment 
      contracts was NIS 108 million, compared with NIS 68 million in the 
      corresponding period last year. Of this, the profit of Harel Finance was 
      NIS 93 million, compared with NIS 53 million in the corresponding period 
      last year. 
 
   -- As of June 30th, 2026, total assets under management in the asset 
      management segment amounted to NIS 498 billion. 

Credit:

   -- In 2Q.26, core profit of the credit segment was NIS 79 million, compared 
      with NIS 60 million in the corresponding quarter last year. In 1H.26 core 
      profit of the credit segment was NIS 140 million compared with NIS 111 
      million in the corresponding period last year. Profitability was 
      supported by the continuing growth of the credit portfolio in development 
      property finance, mortgages and credit for medium businesses. 
 
   -- The credit portfolio amounted to NIS 8.8 billion as of June 30th, 2026, 
      compared with NIS 6.5 billion as of June 30th, 2025, an increase of NIS 
      2.3 billion. 

Conference Call information

Harel Insurance Investments will hold a conference call for analysts and investors in Hebrew on August 26(th) 2026 at 1 pm (Israel); 11 am (UK); dial in details: https://www.veidan-conferencing.com/harel . At this date and prior to the conference call, an Investor presentation (including an English version) will be available on the Israeli Securities Authority reporting website (MAGNA), and on the Company's Investor Relation website: https://pr.harel-group.co.il/

This press release, the Investors' presentation and the conference call for analysts and investors are not exhaustive and do not replace the latest financial reports containing all information including forward-looking statements, as defined in the Israeli securities Law, and set out in the aforementioned reports, and the need to review such financial reports.

For more information, please visit Harel's Investors' relation website or contact us at investor.relations@harel-ins.co.il

About Harel Insurance Investments