Harel Group reports a 26% decline in profit in 2020: NIS 834 million

 Harel Group reports a 26% decline in total profit, while real estate revaluations have a heavy impact on profitability. The annual profit was NIS 834 million, compared to NIS 978 million in 2019.
The fourth quarter provided an encouraging end to the year, with an increase in total profit to NIS 427 million, compared with a quarterly profit of NIS 338 million in the corresponding period last year.
The amount of premiums and remuneration in 2020 was NIS 27.4 billion, similar to the figure in 2019. In the fourth quarter of 2020, premiums amounted to NIS 7.4 billion, compared with NIS 7.1 billion in the corresponding quarter, a moderate growth of 4%.
The non-life insurance activity suffered the strongest blow in Harel at the end of the year, with a sharp decrease in total profit before tax to NIS 343 million, compared to NIS 558 million in 2019. In the fourth quarter of 2020, the total profit in non-life insurance amounted to NIS 92 million compared to profit A total of NIS 46 million in the corresponding quarter.
The total profit from compulsory vehicle and property vehicle policies was NIS 88 million each, compared with NIS 190 million and NIS 159 million, respectively, in the previous year. The closures and the change in customers' tastes regarding car insurance led to a reduction in Harel's profits by NIS 173 million, due to the decrease in customers due to the decrease in travel during the closure periods.
Profit in the health insurance sector jumped to NIS 77 million, compared with a loss of NIS 262 million in 2019. According to the company, the results were achieved mainly due to the improvement of underwriting in the various activities, as well as as a result of the implementation of efficiency measures and an increase in the number of collectives.
The total annual profit in long-term savings activities (including life insurance, pension, provident and continuing education) was NIS 542 million, compared with a total profit of NIS 553 million during 2019.
Harel Insurance did not charge variable management fees in executive insurance in the first three quarters of 2020, due to negative real returns on profit-sharing policies. The increases that characterized the capital market in the last months of 2020 and the increases in the fourth quarter led to a new collection in this industry and these amounted to NIS 156 million.