IDI Insurance Company Ltd.

Investor Presentation • Jun 8, 2025

● ● DIRECT

● ● INSURANCE

01/2025

Investor Presentation | May 2025

• While the information included in this presentation is based on data from I.D.I. Insurance Company Ltd's (hereination: "The Company") periodic report as of March 31, 2025, as well as previous presentations and reports published by the Company, it is not a substitute for reviewing these reports. The presentation also information presented in a different format, arrangement, or segmentation than in the aforementioned reports, including those derived from the company's reports.
• This report is prepared for the first time in accordance with IFRS17 and the directives of the Capital Market, Insurance and Savings Authority regarding its implementation. To understand the report, readers need to be familiar with the accounting standard and their implications for the manner in which the Company's data are presented. It should also be clarified that the changes in the accounting standard are significant - both in the manner of measurement and the manner in which data are presented; this is the first time the new standard is applied after many years of reporting to the previous standard.
• This presentation does not constitute an offer to acquire the Company's securities or an invitation to receive such an offer. It is intended solely to provide information to investors. Its content does not constitute advice, a recommendation, an opinion, or an offer regarding the profitability of an investment and does not replace independent judgment, and professional advice tailored to each investor's specific circumsances. The Company shall not be liable for any possible or potential damages and/or losses resulting from the use of information in this presentation.
• ® This presentation may include forward-looking in the Securities Law, 5728 1968), such as the Company's forecasts, objectives, assessments, and estimations regarding future events or matters, the realization of which is uncertain and not under the Company's control. By nature, formation is subject to risks of non-realization and uncertainty, including the impact of risk factors in the Company's operations, changes in the economic environment in which the Company operates, as well as external factors that may affect the Company's operations.
  • · Therefore, readers of this presentation are cautioned that the Companys actual future results and achievements may differ materially from those presented in the forward-looking information, if applicable.
• Furthermore, the forward-looking forecasts and assessments are based on data and information available to the Company as of the publication date of this presentation. The Company is not obligated to revise any forecast or assessment to reflect events or circumstances that may arise after the presentation date..

This presentation has been translated from Hebrew In the event of any discrepancies, the Hebrew version shall prevail

Disclaimer

The Iron Swords War

We bow our heads in memory of the citizens of Israel, its soldiers and employees of the Company who were murdered or fell in the Iron Swords War and wish for peace and security in our region.

The Iron Swords War continued during the first quarter of 2025 and as of the publication date of the report. Many employees of Direct Insurance continue to take part in the war effort as reservists, while the other employees continue to serve our customers with dedication and provide backup and support to the reservists and their families as well as solutions tailored to people living near the southern and northern fronts.

Above all, we call for the swift return of all the hostages and hope for a speedy recovery of all those wounded in body and soul.

May we soon have days of peace, tranquility and routine

Income and Return on Equity Comprehensive

31%

1-3/2025

* After tax. In NIS million

** Return on equity, annualized

All figures are adjusted to IFRS17

A Quarter of Achievements

Continued high-quality growth in the number of customers and scope of premiums in the various subsegments

Improved profitability across all subsegments, achieving adequate balance between profitability and growth

Adhering to strict underwriting, with differential pricing and smart claim management

Boosted the scope of business collaborations

Investments Managing a diversified, solid portfolio with a healthy return

Technology

Completed the upgrading of most core infrastructure in P&C and Life while creating an advanced user experience

First-Time Application of IFRS17

IFRS 17

A new accounting standard for measuring and presenting the results of insurance companies

First Reporting: Q1 2025

A limited impact on general Insurance

A one-time effect on equity at transition date, as of January 1, 2024.

No direct impact on the Solvency Ratio and equity management

IFRS 17

Primary Changes

IFRS 17

The transition date: January 1, 2024

• · The transition to reporting under IFRS 17 requires adjustment of the balances as if they have always been measured according to this standard.
• The change in assets/liabilities measurement (net of tax effect) is recorded in equity as of the transition date.

• 90% of the CSM balance in retention is calculated using the retroactive application approach (MRA), which primarily relies on the cash flows of the Company's portfolio, rather than the fair value (FV) approach, which incorporates financial and general assumptions from the perspective of market participants.

• 70% of the CSM balance in retention pertains to products that continue to be sold, and future sales of these products will generate new CSM (in addition to releasing CSM to current profits).

• 40%-50% of the CSM retention transition are expected to be recognized as profit over the five years following the transition date. **

All balances are as of the transition date, January 1, 2024

*The risk adjustment balance (conservative margin) relates to the eife and Heath sectors. This balance does not include the risk adjustment balance in the general insurance sector, which amounts to ILS 83 million on a retention basis.

**The pace and amount of CSM recognition in profit are not definitive and are subject to changes in assumptions and estimates, if any.

Effects of IFRS 17 Application In 2024

Most of the difference between the methods is caused by changes in measuring profitability in Life and Health segments In NIS million | *Comprehensive income, after tax

Q1/2025 Results

All data, including comparative figures, are presented according to IFRS17

Comprehensive Income and Return on Equity 01

* After tax. In NIS million ** Return on equity, annualized

· INSURANCE

Income from Insurance Services and Investment Income Q1

5
	Company

	2025	2024
Income from insurance services - entire company	131.4	33.7
Operating expenses from operating segments	(17.9)	(17.0)
Total income from insurance services, net of operating expenses	113.5	66.7
Finance expenses resulting from insurance contracts	(25.3)	(15.6)
Investment revenue attributed to operating segments	31.3	30.8
Revenue from investments and financing, net	5.9	15.92
Investment revenue not attributed to operating segments	22.0	24.92
Expenses not attributed to operating segments	(4.1)	(4.4)
Other revenue (expenses)	(0.3)	0.1
Comprehensive income, before tax	137.0	101.8
Tax effect	48.0	36.2
Comprehensive income	89.0	65.6

Income from Insurance Services 01

Income from insurance services, net of operating expenses

Income from Insurance Services

In NIS million, before tax The data are attributed to operating segments

Income from Insurance Services, Net of Operating Expenses

In NIS million, before tax

casco

Q1 - IFRS 17

· INSURANCE

* Including investment and financing revenue, net and other expenses totaling approx. NIS 11.7 million in 2024

All data are in NIS million | Comprehensive income from insurance services before tax

MB

e) f

396 4 Growth Excluding Civil Servants tender

* The line item includes other finance expenses.

17

premiums

All data are in NIS million | Comprehensive income from insurance services before tax

Other property and liability subsegments C

* The line item includes other finance expenses.

18

Life Insurance C

* Induding revenue from management fevenue (which, under IFRS 17 attributed minimum investment revenues to the Life Segment) and other expenses.

10

200

Growth

Health (01

* The growth in premiums in the Heath Segment was achieved despite a business decision to reduce the scope of activity in the personal accidents subsegnent in light of the reform led by the regulator, which reduced its profitability.

** Under IFRS 17, minimum investment revenue is attributed to the item includes other finance expenses.

All data are in NIS million | Comprehensive and underwriting income before tax

20

Investment Income - Nostro 01

Excluding income from profit-sharing policies; based on a solid, diversified investment portfolio

· · DIRECT

· INSURANCE

CSM* & RA**

* Contractual service margin (CSM) - Expected incorance coverage. Attributed to income across the insurance contract coverage period. ** Risk adjustments (R4) - The risk premium for une anount and timing of the cash flows is charged to income upon release from the risk... . . . . . . . . . 23

Solvency Ratio As of December 31, 2024*

The model in its present form is highly sensitive to changes in market and other variables.

* As reported on April 27, 2025. Including a dividend of NIS 60 million declared subsequent to the annual reporting period and a Tier 2 capital instrument issued between the calculation date and solvency ratio publication date.

Dividend

Since 2018, a total of approx. NIS 938 million has been declared as dividend for a cumulative profit of NIS 1.27 billion

Capital Development

* Including the effect of the first-time application of IFRS 17 on January 1, 2024, totaling approx. NIS 84 million.

Additional Achievements, and Business. Focal Points

Continued Growth

In Motor & Homeowners Market Share

*The motor market share by premiums, based on companies' reports as of 31.12.2024 (supervisory data not yet published)

C

Ficialized

门已

Growth Over Time

AFC of Cares

DIRECT INSURANCE

S

Homeowners Market Share

* Market share - Homeowners and mortgage banks in premium terms, according to the Capital Market, Insurance and Savings Authority as of September 30, 2024

Leaders in Mortgage Insurance

The rate is based on Direct Insurance's insured mortgage sums as a share of the total outstanding credit balance in the economy (lenders' portion), after a provision for doubtful debts, per the Bank of Israel. As of September 2024.

Life branch market

Pure risk market share (excluding savings) – Accumulated individual death risk, according to the Capital Market, Insurance and Savings Authority , as of September 30, 2024

Expansion of Distribution Channels Record in number of Strategic Partnerships

Business Focus in 2025

Organic &

Profitable Growth

Competitive Advantage through Organizational excellence

ကိုးကား

Innovation at the core of our Business Pushing boundaries

Maximizing

Customer

Engagement

Excellent

service

Exploring Opportunities Horizonal & Vertical

് സ്ഥ

A significant advantage in efficiency rates

Via advanced technology and high operational optimization

Innovation as a Core Value

Innovation Enabling Competitive Offering Pricing and Enhanced value for Customers

Value Offers to customers club benefits, bundles, etc.

Cross Company

organizational

innovation

Innovation HUB DIRECTLAB :: Embedding dozens of innovative applications in business processes

GEN AI applications

DIRECTLAB :: Direct Insurance's innovations

We have developed a

Structured and Focused screening process designed to identify startups with higher potential to enhance the value chain In cooperation with the Japanese insurance

giant MSI

Exposure to 330 startups

180 Business Relevance Assessments

Customer Centric Approach Maximizing Customer Engagement

Direct Insurance Ranked First in Finance and Insurance Category in the BDI Survey High-Quality, committed and satisfied workforce

Consistently Ranked Among Top High-Tech Companies and First in the Financial Sector for Several Years*

@ DVIDIA	Nvidia
Google	Google	2
Microsoft	Microsoft	3
Check Point	Check Point	য
C APPLIED	Applied Materials	5
. ביטור	Direct Insurance	6
வா	Israel Aircraft Industries	7
intel	Intel	8
● בנק הפועלים	Bank Hapoalim	0
2	Fiberark Software	10

* According to the most recent TheMarker and BDI Survey– Sep 2024

.. DIRECT

... INSURANCE

Thank you. The future moves fast and so do we.