Jump in Harel's quarterly profit — over one billion shekels; will distribute a dividend of 400 million shekels

Harel Insurance reported a significantly improved bottom line, ending the second quarter with a total profit of 1.02 billion shekels, an increase of 30% compared to the corresponding quarter. This comes as revenues from insurance services remained almost unchanged, totaling 3.55 billion shekels. The return on equity reached 37% for the quarter, compared to 33% in the corresponding quarter.

Harel's core profit before tax totaled 991 million shekels, compared to 849 million shekels in the corresponding quarter — an increase of 142 million shekels, or about 17%. Within core operations, the insurance business contributed 699 million shekels: 270 million shekels from life insurance, 266 million shekels from health insurance, and 163 million shekels from general insurance. The second factor was the excess investment margin, which totaled 661 million shekels for the quarter.

Harel and other insurance companies benefited greatly from the rally in the local market over the last two years. Their test will be in a period of price declines, which will demonstrate how profitable their insurance businesses are and how diversified their operations are.

In general insurance, revenues from insurance services totaled 1.15 billion shekels. Harel recorded a 7% decrease in revenues from general insurance compared to the corresponding quarter, in which revenues totaled 1.23 billion shekels. In the second quarter of 2025, Harel recorded a total profit before tax of 395 million shekels in the general insurance sector, a decrease of 28%, explained mainly by the decrease in vehicle insurance prices.

Harel is the largest entity in the insurance industry in the health sector, which is also its largest sector in terms of revenue. Revenues from insurance services in the sector totaled 1.45 billion shekels. The total profit reached 389 million shekels, compared to 246 million shekels in the corresponding quarter — an increase of about 58%.

The volume of assets managed by Harel reached 638 billion shekels, an increase of 10% since the beginning of the year and 17% compared to the corresponding quarter. Harel sets a target for managing assets in the amount of 780 billion shekels by 2028.

Harel's stock has soared by 640% in the last three years, and the company is traded at a value of almost 38 billion shekels. The company is under the control of the Hamburger family (42.3%), whose holding value has reached approximately 16 billion shekels.

Harel will distribute a dividend of 400 million shekels, and since the beginning of the year, it has distributed dividends in the amount of 1.4 billion shekels. Harel has now updated its dividend policy so that the distribution will be carried out quarterly, compared to a semi-annual distribution previously. According to its policy, Harel distributes 45% of its annual profit as dividends.