Capital/Financing Update • Nov 30, 2025
Capital/Financing Update
Open in ViewerOpens in native device viewer
November 30, 2025
Andreas Lundgren Harell, Stockholm, 46-8-440-5921 [email protected]
Mark Nicholson, London, 44-20-7176-7991 [email protected] Matan Benjamin, Ramat Gan, 972-3-7539716 [email protected]
Executive Summary ......................................................................................................... 2 Rating Action .................................................................................................................... 2 Key Considerations ......................................................................................................... 2 Rating Outlook ................................................................................................................. 3 Negative Scenario .......................................................................................................... 3 Methodology and Related Articles ................................................................................... 3 List of Ratings .................................................................................................................. 3
Rating Update 1 | November 30, 2025
Summary
•
•
•
•
Harel Insurance Company Ltd. (Harel Insurance or the company) is one of the leading companies in the Israeli insurance market and enjoys a wide range of income across several business lines.
The group's protability has strengthened signicantly in recent years with the consistent implementation of its business plan, and at the same time there has been an improvement in loss absorption capacity as reected in the solvency ratio.
As a result, we are raising the rating of Harel Insurance to ilAAA from ilAA+.
The stable rating outlook reects our expectation that the company's protability and capital will remain stable at the high level they have reached, and that the company will maintain its leading position in the Israeli insurance market.
On November 30, 2025, S&P Maalot raised the issuer rating of Harel Insurance Company Ltd. to ilAAA from ilAA+. The outlook is stable. At the same time, S&P Maalot raised the ratings of the Tier 2 capital notes of the subsidiary Harel Insurance Finance and Issuances Ltd. to ilAA from ilAA-, and the Tier 1 capital notes to ilAA- from ilA+.
The rating upgrade reects the improvement in the company's protability alongside increased loss absorption capacity as reected in the strengthening of the solvency ratio. The rating continues to be supported by Harel Insurance's leading business position as the largest insurance company in Israel, with diverse insurance and asset management operations. The group's activities are balanced between life insurance and long-term savings, management of pension and provident funds, and various types of general insurance and health insurance.
Harel Insurance showed strong and improved prots since the beginning of 2025. In the rst nine months of 2025, pre-tax prot from the insurance sector totaled NIS 2.8 billion, compared to NIS 1.6 billion in the corresponding period last year. All insurance segments showed underwriting improvement, in addition to an increase in investment and nancing income.
In the life insurance sector, Harel Insurance recorded a prot of approximately NIS 792 million in the rst nine months of 2025, compared to approximately NIS 299 million in the corresponding period last year, based on an improvement in underwriting prot and investment and nancing income.
In the general insurance sector, a prot of NIS 859 million was recorded compared to NIS 381 million, respectively, and the combined ratio stood at 87% in the rst nine months of 2025 compared to 93% a year earlier. The improvement in the general insurance sector resulted from better underwriting in auto property and other property and liability branches, as well as increased investment and nancing income.
In the health insurance sector, the prot in the nine months ended September 30, 2025 was NIS 1.1 billion compared to NIS 944 million in the corresponding period last year, thanks to improved underwriting prot mainly in medical expense products, together with increased investment and nancing income.
There was an improvement in the group's return on equity, which stood at 27% in the rst nine months of 2025, compared to 19% in the same period last year. As of September 30, 2025, the group's managed assets amounted to approximately NIS 571 billion, an increase of around 16% compared to the previous year.
The broad prot base in 2024 and since the beginning of 2025 gives us condence that the improvement in protability will be maintained. In particular, there has been an increase in the balance of the Contractual Service Margin (CSM), which stood at NIS 17.1 billion as of September 30, 2025, up by NIS 1.2 billion from the transition date to accounting standard IFRS 17. In the rst nine months of 2025, Harel Insurance released a balance of about NIS 923 million from the CSM from the sale of risk products in life insurance, medical expenses, and critical illnesses (the products for which new CSM is produced), and created a new CSM stock of NIS 1.2 billion. This increase supports our assessment that the risk product segment will continue to yield stable prots.
As of September 30, 2025, Harel Insurance's solvency ratio stood at 183% (taking into account the transitional provisions), reecting a long-term improvement from a rate of around 159% at the end of 2020. This improvement results from changes in the risk-free yield curve and from the increase in the activity of risk products in health and life insurance.
We estimate that there has been some improvement in the political and security situation in Israel in recent months, and therefore, the probability of a negative impact on the company's rating has decreased. In November 2025, S&P Global Ratings
changed its outlook for the State of Israel's rating to stable from negative.
The stable rating outlook reects our expectation that the company's protability will remain stable at the high level it has reached, and that the company will maintain its leading position in the Israeli insurance market and adequate loss absorption capacity.
We may take a negative rating action in the event of a weakening in the group's protability or in our assessment of its capital position.
A negative rating action is also possible if the rating of the State of Israel is downgraded.
Rating Scales and Denitions: The connection between the global rating scale and the local rating scale, March 27, 2025 •
Harel Insurance Company Ltd. Issuer Rating Rating First time rated Last date on which
| Long term |
ilAAA\Stable | 01/08/1995 | 02/12/2024 | |||
|---|---|---|---|---|---|---|
| Issuer rating history |
||||||
| Long term |
||||||
| November 30, 2025 |
ilAAA\Stable | |||||
| November 28, 2019 |
ilAA+\Stable | |||||
| January 14, 2018 |
ilAA+\Positive | |||||
| November 19, 2012 |
ilAA+\Stable | |||||
| July 18, 2012 |
ilAA+\Watch Neg |
|||||
| August 25, 2010 |
ilAA+\Stable | |||||
| May 10, 2010 |
ilAA+\Negative | |||||
| June 17, 2009 |
ilAA\Negative | |||||
| November 20, 2006 |
ilAA\Stable | |||||
| July 14, 1996 |
ilAA | |||||
| August 01, 1995 |
ilAA+\Stable | |||||
| Issuer rating history |
||||||
| Long term |
||||||
| November 30, 2025 |
ilAAA\Stable | |||||
| November 28, 2019 |
ilAA+\Stable | |||||
| January 14, 2018 |
ilAA+\Positive | |||||
| November 19, 2012 |
ilAA+\Stable | |||||
| July 18, 2012 |
ilAA+\Watch Neg |
|||||
| August 25, 2010 |
ilAA+\Stable | |||||
| May 10, 2010 |
ilAA+\Negative | |||||
| June 17, 2009 |
ilAA\Negative | |||||
| November 20, 2006 |
ilAA\Stable | |||||
| July 14, 1996 |
ilAA |
| August 01, 1995 |
ilAA+\Stable | ||
|---|---|---|---|
| Harel Insurance, Financing and Issuances Ltd. Issuer Rating |
Rating | First time rated |
Last date on which |
|
|---|---|---|---|---|
| Long term |
ilAAA\Stable | 01/08/1995 | 02/12/2024 | |
| Issuance Rating |
||||
| Subordinated Complex Capital Series 11 |
ilAA | 18/01/2015 | 02/12/2024 | |
| Series 15, Yad |
ilAA | 14/01/2018 | 02/12/2024 | |
| Series 10 |
ilAA | 08/04/2011 | 02/12/2024 | |
| Series 12, Yag |
ilAA | 27/12/2015 | 02/12/2024 | |
| Series 20 |
ilAA | 16/06/2024 | 02/12/2024 | |
| Series 9 |
ilAA | 08/04/2011 | 02/12/2024 | |
| Series 16 |
ilAA | 02/04/2019 | 02/12/2024 | |
| Series 18 |
ilAA | 30/11/2021 | 02/12/2024 | |
| Series 19 |
ilAA | 08/01/2023 | 02/12/2024 | |
| Series 17 |
ilAA | 13/11/2019 | 02/12/2024 | |
| Series 21 |
ilAA- | 25/03/2025 | 25/03/2025 | |
| Series 22 |
ilAA | 25/08/2025 | 25/08/2025 | |
| Issuance Rating |
||||
| Subordinated Complex Capital Series 11 |
ilAA | 18/01/2015 | 02/12/2024 | |
| Series 15, Yad |
ilAA | 14/01/2018 | 02/12/2024 | |
| Series 10 |
ilAA | 08/04/2011 | 02/12/2024 | |
| Series 12, Yag |
ilAA | 27/12/2015 | 02/12/2024 | |
| Series 20 |
ilAA | 16/06/2024 | 02/12/2024 | |
| Series 9 |
ilAA | 08/04/2011 | 02/12/2024 | |
| Series 16 |
ilAA | 02/04/2019 | 02/12/2024 | |
| Series 18 |
ilAA | 30/11/2021 | 02/12/2024 | |
| Series 19 |
ilAA | 08/01/2023 | 02/12/2024 | |
| Series 17 |
ilAA | 13/11/2019 | 02/12/2024 | |
| Series 21 |
ilAA- | 25/03/2025 | 25/03/2025 | |
| Series 22 |
ilAA | 25/08/2025 | 25/08/2025 | |
| Series 23 |
ilAA | 25/08/2025 | 25/08/2025 | |
More details Data
This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.
| Time the event occurred |
13:08 30/11/2025 |
|---|---|
| Time the event was rst known |
13:08 30/11/2025 |
S&P Maalot is the trade name of S&P Global Ratings Maalot Ltd. For the most up-to-date ratings list and additional information regarding credit rating surveillance policy, please refer to the website of S&P Global Ratings Maalot Ltd. at maalot.co.il.
All rights reserved ©. Do not alter, reverse engineer, reproduce, distribute in any form or in any way, or store in a database or information retrieval system the content (including ratings, analyses and information related to ratings, assessments, models, software and its outputs), and any part thereof (hereinafter, collectively, the content), without prior written consent of S&P Global Ratings Maalot Ltd. or its aliates (hereinafter, collectively, S&P). The content shall not be used for illegal or unauthorized purposes. S&P and third parties providing it services, including their directors, managers, shareholders, employees, or agents (hereinafter, collectively, S&P and the related parties) do not guarantee the accuracy, completeness, timeliness, or availability of the content. S&P and the related parties are not responsible for errors or omissions (whether arising from negligence or otherwise), from any cause whatsoever, for results arising from the use of the content, or for the security or maintenance of information provided by users. The content is provided on an "AS-IS" basis. S&P and the related parties give no
guarantee or representation, express or implied, including, but not limited to, as to sucient quality or tness for a particular purpose, absence of bugs, software errors or defects, that the operation of the content will not be interrupted or that the content will operate with
any software or hardware conguration. In any case, S&P and the related parties will not bear any liability for direct and/or indirect damages of any kind or type, including incidental or consequential damages, exemplary, punitive or special damages, costs, expenses, legal expenses or losses (including, without limiting the generality of the above, compensation for loss of income or prots, loss of business opportunities, or losses caused by negligence), that were caused in connection with the use of the content, even if they were notied in advance of the possibility of such damages.
Ratings and other analytical opinions, including the ratings and other information included in the content, represent an opinion that is valid as of the date of publication and do not constitute statements of fact. The ratings and other analytical opinions of S&P do not constitute a recommendation to purchase, hold, or sell any securities, or to make any investment decision, and do not relate to the suitability of any securities. S&P does not undertake any obligation to update the content after its publication in any way or format. The content should not be relied upon for making investment or other business decisions, and it is not a substitute for the skills, judgment or experience of the users, their management, employees, advisors, and/or clients in making such decisions. S&P does not act as an expert or adviser regarding investments and/or securities, except where it is registered as such. Rating reports are correct as of the publication date. S&P updates rating reports following ongoing monitoring of events or annual surveillance.
S&P gathers information from sources it considers reliable, but does not audit the information and is not required to conduct due diligence or independently verify information it receives. S&P publishes reports related to ratings for various reasons not necessarily resulting from a rating committee, including publication of periodic updates regarding credit ratings and related analyses.
To maintain the independence and objectivity of the activities of its various units, S&P maintains a separation between these activities. As a result, certain units may have information not available to other units of S&P. S&P has established procedures and processes to maintain condentiality of certain non-public information received in connection with any analytical process it conducts.
S&P receives nancial compensation for providing its rating and analytical services, usually from the issuers or underwriters of the rated securities, or from obligors. S&P reserves the right to distribute its opinions and analytical insights. S&P's public ratings and analyses appear on the S&P Maalot website at maalot.co.il or on the S&P website at spglobal.com/ratings, and may also be distributed by other means, including publications of S&P and third parties.
This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.
others, including in publications of S&P and third parties.
5
11/30/2025 | 1:47:50 PM
Have a question? We'll get back to you promptly.