IDI Insurance Company Ltd.

Investor Presentation • Sep 2, 2025

・・・ DIRECT

。。 。 「NSURANCE

02/2025

Investor Presentation | August 2025

• · While the information included in this presentation is based on data from I.D.I. Insurance Company Ltd's (hereinafter. "The Company") periodic report as of June 30, 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.
• Commencing with the first quarter of 2025, this report is prepared in accordance with IFRS17 and the Capital Market, Insurance and Savings Authority regarding its implementation. To understand the report, readers need to be familiar with the changes in the accounting standard and their implications for 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 new standard is applied after many years of reporting according 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 circumstances. 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 information (as defined 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, forward-looking information is subject to risks of non-realization and uncertainty, including the impact of risk factors inherent in the Companys 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 update or 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

લું રહ 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 has continued during the first quarter of 2025 and as of the publication date of the report. Many of Direct Insurance's employees are still taking part in the war effort as reservists, while others continue to serve our customers with dedication, providing backup and support to reservists and their families, as well as tailored solutions for residents living near the southern and northern fronts.

During the second quarter, the "Rising Lion" military operation took place. Unfortunately, there were also casualties and property damage. Direct Insurance continued to provide support to its r customers who were affected and required assistance.

Most importantly, 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

Comprehensive income* Quarter and cumulative

INSURANCE

5

Return on equity Quarter and cumulative

Quarter of Achievements

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

Improved profitability across most 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 including the use of GEN AI applications

Profitability Overview | Q2

17

	4-6/2025	4-6/2024
Income from insurance services - entire company	137.1	119.2
Operating expenses from operating segments	(20.8)	(16.3)
Total income from insurance services, net of operating expenses	116.3	10.2.9
Finance expenses resulting from insurance contracts	(12.3)	(59.5)
Investment revenue attributed to operating segments	40.1	24.4
Investment revenue and finance income, net attributed to operating segments	27.8	(35.1)
Investment revenue not attributed to operating segments	20.7	15.7
Expenses not attributed to operating segments	(6.1)	(3.6)
Other revenue (expenses)	(0.6)	0.2
Comprehensive income, before tax	158.1	80.7
Income tax expense	56.9	27.5
Comprehensive income	101.2	52.7

Profitability Overview | H1

	1-6/2025	1-6/2024
Income from insurance services - entire company	268.5	202.9
Operating expenses from operating segments	(38.7)	(33.3)
Total income from insurance services, net of operating expenses	229.8	169.6
Finance expenses resulting from insurance contracts	(37.7)	(75.1)
Investment revenue attributed to operating segments	7.4	55.3
Investment revenue and finance income, net attributed to operating segments	33.7	(19.9)
Investment revenue not attributed to operating segments	42.7	39.9
Expenses not attributed to operating segments	(10.2)	(8.0)
Other revenue (expenses)	(0.9)	0.3
Comprehensive income, before tax	295.1	181.9
Income tax expense	104.9	68.6
Comprehensive income	190.2	118.3

Income from Insurance Services

In NIS million, before tax Data relate to operating segments

Income from Insurance Services | Net of Operating Expenses Q2 - by subsegment

In NIS million, before tax

Casco

Premiums including NS 1,477 in aggregate Civil Servants compared to NS 1,440 last year and during the quarter - NS 490.1 compared to NS 477.1 last year.

** The line item includes other finance expenses.

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

DIRECT · INSURANCE

" Premiums including NS 394.5 in aggregate Civil Servants compared to NS 392.2 last year and during the quarter - NS 172.3 compared to NS 153.3 last year.

** The line item includes other finance expenses.

395

12

** Excluding the effect of the Pool revision in respect of last year (which was recorded in Q2/2025 and in 2024 - in Q1).

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

· · DIRECT · INSURANCE

Other Property and Liability subsegments

· · DIRECT

· INSURANCE

* The line item includes other finance expenses.

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

Life Insurance

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

Health

16% 4 Growth in premiums Health and Critical Illnesses

15

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

** The line item includes other finance expenses.

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

** DIRECT
••• INSURANCE

16%

Growth in

premiums

Health and

6%

4

* Growth in

premiums

Entire Health

Investment Income - Nostro Quarter and cumulative

ه و All data are in NIS million | Excluding income from profit-sharing policies, based on a solid, diversified portfolio

· INSURANCE

CSM* & RA**

• * Contractual service margin (CSM) Expected income from provision of insurance coverage. Attributed to income across the insurance contract coverage period.
• ** Risk adjustments (RA) The risk premium for uncertainty regarding the amount and timing of the cash flows is charged to income upon release from the risk.

Financial Effects Q2 and cumulative

• 1. The effects of changes in the interest rate curve and CPI on comprehensive income has increased following the adoption of IFRS 17.
• 1. As a result of Direct Insurance's portfolio structure, there is a partial hedge between P&C and Life and Health

	1-6/2025 -	4-6/2025
P&C
CPI	(36.7)	(30.3)
Curve change interest rate*	3.9	(3.4)
Life and Health
CPI	15.6	12.9
Curve change interest rate*	6.8	23.5
Total effects	(10.4)	2.6

in NIS million

* Excluding accrual of interest due to the passage of time.

Solvency Ratio As of December 31, 2024*

· INSURANCE

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

* As reported on April 27, 2025. Includes a dividend of NIS 60 million declared after the annual reporting period. the Company raised subordinated loans from Israeli banking corporations totaling NS 185 million, recognized by the Commissioner as Tier 2 Capital. Approximately NIS 105 million of this amount, after required in the Company's equity for solvency purposes.

Dividend and dividend yield

earnings of approx. NIS 1.5 billion

Capital Development

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

DIREC

· INSURANCE

22 All data are in NIS million

Additional Achievements and Business Focal Points

Growth and Leading

Motor Casco Market Share

*The motor Casco market share by premiums, according to the Capital Market, Insurance and Savings Authority, as of December 31, 2024 (up-to-date figures have yet to be published)

icological

1

Growth over time

Homeowners Market Share

* Market share of home insurance and mortgage banks in terms of insurance premiums according to the Capital Market, Insurance and Savings Authority, as of December 31, 2024 (up-to-date figures have yet to be published)

College

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 March 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 31.12.2024

26

Expansion of Distribution Channels Record in number of Strategic Partnerships

· INSURANCE

Business Focus in 2025

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ကြို

Organic & Profitable Growth

Competitive Advantage through Organizational

excellence

Innovation at the core of our Business Pushing boundaries

Maximizing Exploring Customer Opportunities Engagement Horizonal & Vertical Excellent service

് 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	1
Google	Google	2
Microsoft	Microsoft	3
Check Point	Check Point	য
C APPLIED	Applied Materials	5
ה. ביטורי	Direct Insurance	6
SAD	SAP	7
214	Israel Aircraft Industries	8
СУВЕНАНЕ	CyberArk	O
ארביט מערכות	Elbit Systems	10

* According to the most recent TheMarker and BDI Survey— June 2025

... DIRECT

INSURANCE

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