AM Best Assigns Credit Ratings to Harel Insurance Investments & Financial Services Ltd’s Main Operating Subsidiary, Harel Insurance Company Ltd.

LONDON--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) to Harel Insurance Company Ltd. (Harel Insurance) (Israel), the main operating subsidiary of Harel Insurance Investments & Financial Services Ltd (Harel). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Harel’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect Harel Insurance’s strategic importance to and deep integration within Harel.

Harel’s balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The BCAR includes partial equity credit for economic capital embedded in its long-term business and its hybrid debt, which are considered weaker elements of the group’s capital structure. The group’s consolidated adjusted financial leverage as at year-end 2025, was 21.2%, as measured by AM Best. Interest coverage is considered to be adequate. Harel benefits from strong financial flexibility as a regular participant in the capital markets, evidenced by a history of successful debt instrument issues. However, an offsetting factor to the assessment is the group’s meaningful operating leverage, which is principally derived from the activities of its non-insurance subsidiaries.

The group has a track record of strong profitability, generating net profits in each of the last six years of operations (2020-2025). This was evidenced in 2025, by a return-on-equity and net-net combined ratio of 27.0% and 87.1%, respectively. Underwriting profitability is supported by consistent investment income.

Harel’s business profile assessment reflects its leading market position in Israel as a diversified financial group with insurance, asset management and credit activities. The group’s insurance and non-insurance portfolio is geographically concentrated, with insurance service revenue (ISR) sourced from Israel constituting more than 95% of its overall ISR. As a composite insurer, Harel Insurance’s portfolio is well diversified by product, albeit, with a slight tilt towards health insurance.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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