Harel Insurance Group Announces 10,000 Shekel Bonus Following Record Quarter
Harel Insurance Group announced a 10,000 shekel bonus for employees following a strong quarter featuring a 30% profit surge to 1 billion shekels. The company also shifted to a quarterly dividend policy after its stock surged over 65%.
Employees of Harel Insurance Group have been informed that they will receive a bonus of 10,000 shekels per employee.
Following a performance by Omer Adam at Expo Tel Aviv, held as part of an event organized by the company ahead of the Rosh Hashanah holiday, employees received the news of the substantial bonus. The bonus will be distributed across all companies and various operations within Harel, not just the insurance company proper. The cost of the grant to the company is estimated at 57 million shekels.
Meanwhile, investors sent Harel's stock down by less than 1% on the Tel Aviv Stock Exchange, reflecting the general market trend.
M&A Plans and Market Position
Harel, together with George Horesh’s Union Group, seeks to acquire credit card company Cal, and both companies are currently awaiting instructions and guidelines from the Competition Authority regarding the acquisition mechanism. This is due to Union's ownership of the Super-Pharm chain and Cal's issuance of credit cards for Shufersal, which also owns the competing drugstore chain Be. Even if the deal is successfully completed, it remains doubtful whether Cal employees will receive a similarly generous bonus next year, as Harel will be a minority shareholder in Cal.
The spirit of generosity from Harel's management follows a particularly strong quarter. The company concluded the second quarter with a 30% increase in total comprehensive income, reaching 1 billion shekels—the highest quarterly profit among the five major insurance companies. The company recorded a return on equity of 37%, according to the published results.
Dividend Policy Update and Financial Growth
Simultaneously with the publication of the financial reports, the company’s board of directors decided to update its dividend distribution policy to a quarterly basis, replacing the semi-annual distribution policy previously in place. Following the publication of the quarterly results on August 26, the company announced it would distribute a dividend of 400 million shekels. Since the beginning of the year, the company has announced dividends alongside share buybacks totaling approximately 1.5 billion shekels.
«Harel Insurance Group has recorded a stellar performance this quarter, driven by strong operational results and a commitment to rewarding both its workforce and its shareholders.»
Harel Investments' stock has surged by over 65% since the beginning of the year, bringing its market capitalization to 40 billion shekels.
