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