Harel reported a total loss of NIS 555 million in the first quarter of 2020

Harel reported that it posted a total loss of NIS 555 million in the first quarter of the year, compared with a profit of NIS 376 million in the corresponding quarter last year. The main reason for the result of Harel's report is investment losses of NIS 820 million. In recent weeks, there has been a correction in the markets - although the stock exchange has not returned to pre-crisis levels, and yet in Harel, investment losses have been fully offset since the end of the quarter.
Due to the losses in the capital market, Harel created a "pit" of collecting variable management fees of NIS 290 million as of the end of the first quarter, which means that it cannot collect variable management fees until it has achieved a positive positive return at this level. However, in light of the market correction, the pit is small and it currently stands at only NIS 78 million.
Harel noted in the report that during the Corona period, sales in the auto insurance, housing and business sectors increased, while sales of new policies in long-term savings and health and life insurance decreased. However, the company emphasized that in areas where sales weakness was experienced during the crisis, it is now experiencing a rapid recovery back to pre-crisis sales volumes. Total gross earned premiums, remuneration and receipts for investment contracts in the first quarter grew by 4% in the first quarter, compared with the corresponding quarter of NIS 7.7 billion.
At the end of the quarter, Harel's total assets under management were NIS 258 billion. This is an increase of 3% compared to the corresponding quarter, but lower by NIS 25 billion (about 9%) compared to the volume of assets at the end of 2019, but as of today, most of the reduction was offset and the value of assets is NIS 275 billion (decrease of 8 billion). NIS relative to the period before the Corona).