Clal Insurance Enterprises Holdings Limited · TASE:CLIS

Clal Insurance Enterprises — FY2013 Earnings Presentation

46 slides from Clal Insurance Enterprises's earnings presentation, March 2014

  1. Slide 1: 2013 Yearly Summary And Look Ahead Analysts' Conference

    Clal Insurance Enterprises Holdings Ltd. 2013 Yearly Summary And Look Ahead Analysts’ Conference March 2014 Financial Statements as at December 31, 2013

  2. Slide 2: Disclaimer

    Responsibility Disclaimer This presentation includes only partial information in relation to the Company’s results for 2013 and it has been prepared for the sake of brevity and convenience only. This presentation includes forward – looking information as the term is defined in the Securities Law, 57

  3. Slide 3: Company's Vision

    Company’s Vision To be the leading group in the Insurance and Pension market in Israel, which aspires to raise the value of the Company and to divert maximum value to shareholders, while placing an emphasis on growing profits, improving the service to the Company’s customers, innovation in service a

  4. Slide 4: Main assignments that were executed in 2013

    Main assignments that were executed in 2013  Change to the organizational structure and consolidating new management Financial Statements as 4 at December 31, 2013

  5. Slide 5: Clal Insurance - Organizational Flowchart

    Clal Insurance- Organizational Flowchart CEO Investments Health General Long Term Funding and Insurance Insurance Savings Finances Division Division Division Division Customer Resources HQ Division Claims Businesses Liaising, Division Department Department Marketing and Strategy Division Legal Risk

  6. Slide 6: Main assignments that were executed in 2013

    Main assignments that were executed in 2013  Change to the organizational structure and consolidating new management  Converging on the core activities (insurance and long term saving) and leaving non synergetic activities Financial Statements as 6 at December 31, 2013

  7. Slide 7: Group Structure

    Group Structure 31.12.2012 Clal Insurance Enterprises Holdings Ltd Clal Clal Credit Clal Holdings Clal Insurance Company and Financing Agencies Finances Brokerage and Stock Consumer Clal Health Tmura Exchange member Clal Credit Clal Pension and Credit Insurance Portfolio Insurance Provident Funds Co

  8. Slide 8: Group Structure

    Group Structure 31.12.2012 Clal Insurance Enterprises Holdings Ltd Clal Insurance Company Clal Holdings Agencies Clal Pension Betach / Toren Clal Credit and Provident General insurance Funds Insurance Arm Tmura Long Term Savings Arm Credit Insurance General Insurance Long Term Saving Health insuranc

  9. Slide 9: Main Assignments which were executed in 2013

    Main Assignments which were executed in 2013  Change to the organizational structure and consolidating new management  Converging on the core activities (insurance and long term saving) and leaving non synergetic activities  Transitioning from a market share strategy to a profitability strategy F

  10. Slide 10: Main Results

    :2013 Main Results )In millions of NIS( Total profit before tax from The rate of yield on capital for Total profit after tax attributable to insurance activities Shareholders 956 shareholders 583 17.1% 196% 302% 323 145 3.9% 39* 106 Excluding the 2.9% Excluding the Guard sale Guard Sale 2012 2013 20

  11. Slide 11: Components of the total profit

    Components of the total profit )in millions of NIS( Total profit before tax from Revenues from investments, Financial Expenses which are insurance activities headquarters and capital not associated the activities 956 sectors 196% 26% )5%( 323 299 238 (197) (188) 2012 2013 2012 2013 2012 2013 Guard a

  12. Slide 12: Total profit before tax according to sectors

    Total profit before tax According to sectors )in Millions of NIS( Long Term Saving Life Insurance Pension Fund Increase of NIS 604 Increase of NIS 566 Increase of NIS 52 million 586 million million 450 48 (18) (116) (4) 2012 2013 2012 2013 2012 2013 Provident Fund Health Insurance* General Insurance

  13. Slide 13: Premiums which were profitable and contribution fees

    Premiums which were Profitable Gross And contribution fees )in millions of NIS( Total Premiums which were Life Insurance General insurance Health Insurance profitable: Gross 9,064 2.5% 9,289 3% (1%) 4,738 4,875 7% 2,838 2,818 1,511 1,613 2012 2013 2012 2013 2012 2013 2012 2013 Total Contribution Fee

  14. Slide 14: Management and General expenses

    Management and General expenses (in millions of NIS) 1,724 )8.4%( 1,579 332 131 )60.5%( 1,392 1,448 2012 2013 ‫נמשכת‬ ‫פעילות‬ Continuing ‫שהופסקה‬ ‫פעילות‬ Discontinued Activities Activities Financial Statements as 14 at December 31, 2013

  15. Slide 15: Life Insurance

    Life Insurance Financial Statements as 15 at December 31, 2013

  16. Slide 16: Life Insurance Main Results

    Life Insurance Main Results (in millions of NIS) Total profit before tax Premiums which have been Variable management Fees profitable, Gross 4,738 3% 4,875 572% 450 356 (116) 53 0.2% of the 1.2% of 2012 2013 assets the assets 2012 2013 2012 2013 Provision for Strengthening Rate of redemptions from t

  17. Slide 17: Pension Fund

    Pension Fund Financial Statements as 17 at December 31, 2013

  18. Slide 18: Pension Fund Main Results

    Pension Fund Main Results (in Millions of NIS) Total profit before tax* Revenues from Assets Contribution Fees Management Fees 11% 23% 15% 4,115 219 36,101 48 198 3,567 29,437 (4) 2012 2013 2012 2013 2012 2013 2012 2013 Rate of management fees from Rate of management fees** from assets** deposits 0.

  19. Slide 19: Provident Funds

    Provident Funds Financial Statements as 19 at December 31, 2013

  20. Slide 20: Provident Funds Main Results

    Provident Funds Main Results (in Millions of NIS) Total profit before Tax Revenues from Management Fees Assets 34,673 36,182 4% 287 )10%( 257 102 )14%( 88 2012 2013 2012 2013 2012 2013 Rate of Management fees from Contribution Fees Assets 0.87% )15%( 1,252 0.3% 1,256 0.74% 2012 2013 2012 2013 Financ

  21. Slide 21: General Insurance

    General Insurance Financial Statements as 21 at December 31, 2013

  22. Slide 22: General Insurance Total Profit before Tax

    ‫ כללי‬Insurance General ‫ביטוח‬ Total ‫מס‬ Profit ‫לפני‬ ‫כולל‬before ‫רווח‬ )‫ש"ח‬Tax ‫(במיליוני‬ (in Millions of NIS) )6%( 231 217 Decrease in Revenues from Investments, Increase in 195 196 underwriting profit 61 37 6 (16) (21) (9) 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 Total General M

  23. Slide 23: General Insurance Gross Premiums

    ‫ כללי‬Insurance General ‫ביטוח‬ Gross Premiums ‫ברוטו‬ ‫(פרמיות‬in Millions of NIS) )‫במיליוני ש"ח‬( )4%( 2,938 2,827 )4%( )2%( 1,167 )1%( 1,115 )10%( 756 750 577 566 438 395 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 Total General Motor Compulsory Motor property Property branches Other liab

  24. Slide 24: General Insurance Combined Ratio

    General Insurance *Combined Ratio 109% 105% 2012 2013 Total General Insurance 150% 147% 106% 98% 102% 104% 102% 95% 2012 2013 2012 2013 2012 2013 2012 2013 Property Branches and Motor Compulsory Motor Property Other liability branches Others * Calculation method – (management and other general expen

  25. Slide 25: Health Insurance

    Health Insurance Financial Statements as 25 at December 31, 2013

  26. Slide 26: Health Insurance, Total Profit before Tax

    Heath ‫בריאות‬ Insurance, ‫ביטוח‬ Total Profit before ‫מס‬ ‫רווח כולל לפני‬ tax (in Millions of )‫(במיליוני ש"ח‬ NIS) 153 39% 110 Decrease in Revenues from Investments, Increase in underwriting profit 55% 73 49% 47 55 180% 28 37 16 10 (3) 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 Total Healt

  27. Slide 27: Health Insurance, Gross Premiums

    Heath ‫בריאות‬ Insurance, ‫ביטוח‬ Gross premiums (in ‫פרמיות ברוטו‬ Millions of NIS) 7% )‫(במיליוני ש"ח‬ 1,612 1,506 3% 688 710 8% 23% 5% 439 475 160 197 219 230 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 Total Health Nursing Care – Nursing Care - Diseases and Diseases and Insurance Private C

  28. Slide 28: Main assignments that were executed in 2013

    Main assignments that were executed in 2013  Change to the organizational structure and consolidating new management  Converging on the core activities (insurance and long term saving) and leaving non synergetic activities  Transitioning from a market share strategy to a profitability strategy 

  29. Slide 29: Managed Assets

    Managed Assets (in Millions of NIS) Total assets Nostro Life Insurance Participates in 148,599 profits 133,078 12% 19% 46,994 39,369 29,599 29,322 2012 2013 2012 2013 2012 2013 Provident Funds Pension Funds 34,673 36,182 36,101 29,437 23% 4% 2012 2013 2012 2013 Financial Statements as 29 at December

  30. Slide 30: Yields in Plan-holders' Portfolios

    Yields in Plan- The year 2013 ‫שנת‬ ‫שנים‬3 3 ‫שנים‬ 5 5 years Sharp holders’ Portfolios 2013 years Index (as at December 2013) 1.48 87.07% 81.65% 1.49 19.45% 19.18% 12.43% 12.03% ‫קרן י' החדשה‬ '‫קרן י‬ Fund J New Fund 83.7% 76.95% 1.85 1.39 24.7% 12.0% 12.00% 15.85% ‫מקיפה‬ Metivit ‫קרן –פנסיה‬ Re

  31. Slide 31: Clal Yields versus Market Indices (Life Insurance - J Fund)

    Clal Yields versus Market Indices (Life Insurance – J Fund) Assets according to Shahar Corporate Bond Galil channels, Millions of NIS Shahar 9.5% Other [‫]ערך‬ Galil 8.1% [‫]ערך‬ 4.8% 4.4% [‫]אחוז‬ [‫]ערך‬ 3.0% [‫]אחוז‬ 2.0% Loans [‫]אחוז‬ [‫]ערך‬ [‫]אחוז‬ Real estate 1,663 Corporate Clal yield Benc

  32. Slide 32: Main assignments that were executed in 2013

    Main assignments that were executed in 2013  Change to the organizational structure and consolidating new management  Converging on the core activities (insurance and long term saving) and leaving non synergetic activities  Transitioning from a market share strategy to a profitability strategy 

  33. Slide 33: Clal Insurance Capital Structure

    Clal Insurance Capital Structure )in Millions of NIS( ‫ראשוני‬ Primary‫הון‬ ‫מוכר‬ ‫הון משני‬ Recognized ‫הון‬Rate ‫מסך‬ ‫הון משני‬capital of secondary ‫שיעור‬ out of the capital secondary total capital capital 37% 40% 5,953 40% 5,376 4,972 2,187 2,150 1,989 16.7% 8.1% 3,766 2,983 3,226 31.12.2011 3

  34. Slide 34: Clal Insurance - Required Capital and Surplus Capital

    Clal Insurance– Required Capital and Surplus Capital (in millions of NIS) ‫הון נדרשים‬ ‫ועודפי‬ Required ‫הון נדרש‬ capital ‫אפקטיבי‬ Required‫הון‬ ‫עודף‬ capital ‫אפקטיבי‬ ‫הון‬of‫עודף‬ Effective rate surplus‫שיעור‬ capital surpluses 32% 19% 5,953 16% 5,376 71% 4,972 1,447 847 668 4,304 4,529 4,506

  35. Slide 35: Clal Holdings - Required Capital and Surplus Capital

    Clal Holdings– Required Capital and Surplus Capital )in millions of NIS Required Capital and Required ‫ נדרשים‬capital ‫ועודפי הון‬ ‫הון נדרש‬ surpluses ‫אפקטיבי‬ Effective ‫הון‬ ‫ש עודף‬ surplus ‫אפקטיבי‬ ‫הון‬of ‫עודף‬ Effective rate surplus‫שיעור‬ capital capital 35% 32% 14% 3,898 3,692 21% 3,414

  36. Slide 36: Main Balance Due to Bondholders and to Banks

    Main Balance Due to Bondholders and to Banks (in millions of NIS) ‫ביטוח‬Clal‫כלל‬ ‫פיננסים‬ ‫כלל‬ Clal Finances ‫ומימון‬ ‫אשראי‬ Clal Credit and‫כלל‬ ‫החזקות סולו‬ ‫כלל‬Solo Clal Holdings Insurance Financing 4,145 )3.2%( 4,012 (16.7%) 784 524 3,343 706 417 743 241 282 251 313 2,500 2,434 2,305 31.1

  37. Slide 37: Main Financing Costs for Bondholders and for Banks

    Main Financing Costs for Bondholders and for Banks (in millions of NIS) Clal Clal Credit and ‫ביטוח‬ ‫כלל‬ Insurance ‫פיננסים‬ ‫כלל‬ Clal Finances ‫ומימון‬Financing ‫כלל אשראי‬ ‫החזקות סולו‬ ‫ כלל‬Solo Clal Holdings 300 (13.8%) 43 259 (11.8%) 42 47 228 31 24 35 20 17 28 191 160 148 2011 2012 2013 Fi

  38. Slide 38: Market value compared with Shareholders' Equity

    Market value compared with Shareholders’ Equity (in millions of NIS) ‫שוק‬ ‫ שווי‬value Market ‫מניות‬ ‫עצמי לבעלי‬Equity Shareholders’ ‫הון‬ 3,898 3,717 3,547 3,414 3,403 3,738 3,823 3,525 3,338 3,352 3,063 31.12.2012 30.3.2013 30.6.2013 30.9.2013 31.12.2013 17.3.2014 Financial Statements as 38 at

  39. Slide 39: Main assignments that were executed in 2013

    Main assignments that were executed in 2013  Change to the organizational structure and consolidating new management  Converging on the core activities (insurance and long term saving) and leaving non synergetic activities  Transitioning from a market share strategy to a profitability strategy 

  40. Slide 40: Main assignments that were executed in 2013

    Main assignments that were executed in 2013  Change to the organizational structure and consolidating new management  Converging on the core activities (insurance and long term saving) and leaving non synergetic activities  Transitioning from a market share strategy to a profitability strategy 

  41. Slide 41: Main assignments that were executed in 2013

    ‫משימות‬ Main assignments that were executed ‫שבוצעו‬ ‫עיקריות‬ in 2013 2013 ‫בשנת‬  Change to the organizational structure and consolidating new management  Converging on the core activities (insurance and long term saving) and leaving non synergetic activities  Transitioning from a market share

  42. Slide 42: Main assignments that were executed in 2013

    Main assignments that were executed in 2013  Change to the organizational structure and consolidating new management  Converging on the core activities (insurance and long term saving) and leaving non synergetic activities  Transitioning from a market share strategy to a profitability strategy 

  43. Slide 43: Main assignments that were executed in 2013

    Main assignments that were executed in 2013  Change to the organizational structure and consolidating new management  Converging on the core activities (insurance and long term saving) and leaving non synergetic activities  Transitioning from a market share strategy to a profitability strategy 

  44. Slide 44: Clal's New Home

    Atidim Building Clal’s New Home  25 floors + private lobby floor + auditorium  Approx. 47 thousand square meters  Lease agreement for 24 years  Building at the highest standards and adjusted in accordance with the modern technological and hi-tech worlds  The building will be populated by approx

  45. Slide 45: Look ahead - Main Challenges for 2014

    Look ahead- Main Challenges- for 2014  Growth and expansion in the core businesses (insurance, pension and provident funds) with an emphasis on continuing to improve the underwriting profitability  Continuing to expand the yields in the Nostro and in the plan – holders’ portfolios in a low interes

  46. Slide 46: Thank you

    Thank you Financial Statements as 46 at December 31, 2013

Clal Insurance Enterprises Holdings — FY2013 Earnings Presentation on 6ix