Zur Shamir publishes its Q1 2026 results

Subsidiary highlights — Q1 2026

• IDI Insurance: Comprehensive income for the quarter totaled approximately NIS 89 million, similar to last year. Continued growth in the scope of activity, driven by growth in the customer base across all lines.
• Direct Finance (Mimun Yashir): Loan originations to customers in the quarter totaled approximately NIS 3.1 billion, growth of ~31% YoY; net income from finance operations totaled ~NIS 302 million, growth of ~41% YoY; net income attributable to shareholders grew by ~148% YoY to ~NIS 48 million.
• Adgar: NOI from comparable properties (excluding FX effects) declined ~1.1% YoY; FFO for the quarter totaled ~NIS 28 million; comprehensive income for the quarter totaled ~NIS 14 million compared with ~NIS 33 million last year, driven by the decline in exchange rates. The NOI and FFO guidance remains unchanged.
• Neema: The growth trend continues with revenue growth of ~38% YoY, totaling ~NIS 36 million.

The strong results we are presenting in Q1 are a direct outcome of the extensive work and the focused activity of the group across all segments. IDI Insurance recorded growth in its customer base and an improvement in underwriting profitability across most lines of business. Direct Finance (Mimun Yashir) delivered significant growth in loan originations, in income from finance operations and in net income, as a result of the business initiatives it led over the past year.

Adgar’s operating results were affected by the strengthening of the shekel against the euro and the Canadian dollar. Despite this, Adgar reaffirms its annual guidance and continues to act vigorously to increase occupancy rates, while advancing strategic moves to enhance its assets and to develop its extensive pipeline of building rights in Canada. Neema continues to grow and to solidify its position as a leading company, and this trend is expected to continue.

We are pleased to close another solid quarter with growth in net income and continued strengthening of shareholders’ equity. We are continuing to advance the activities of our subsidiaries by leading business initiatives and promoting strategic moves that support their growth. We will continue to act with responsibility and judgment to realize opportunities in our existing areas of activity, alongside examining new growth engines for the group.

Comprehensive income attributable to shareholders grew in the quarter by ~24% to approximately NIS 33 million, compared with profit of ~NIS 27 million in the corresponding quarter last year. The increase in profit stems primarily from improved results of the subsidiary Direct Finance. The growth was partially offset by the impact of exchange rates on the comprehensive income of the subsidiary Adgar.

Shareholders’ equity attributable to owners of the company continued its growth trend and stood at approximately NIS 772 million as of March 31, 2026, compared with ~NIS 770 million at year-end 2025, after the distribution of a dividend of NIS 35 million. The company will distribute a dividend of NIS 16 million in respect of Q1 2026 profits.

Highlights of Q1 — IDI Insurance

• Gross premiums in Q1 totaled ~NIS 1.0 billion, compared with ~NIS 1.1 billion in the corresponding quarter last year. The decline in gross premiums is mainly attributable to the company not winning the Accountant General (Hashcal) tender in the reported year. Excluding Hashcal tender premiums, gross premiums declined by ~1%. In addition, results were impacted by a decline in motor property insurance prices, partially offset by an increase in activity across all of the company’s lines of business, which was primarily reflected in growth in the number of customers and in the number of policies per customer.
• Comprehensive income in Q1 totaled ~NIS 89 million, similar to the corresponding quarter last year. In Q1 there was an increase in profit from insurance services in all lines except life insurance, which was offset by an increase in finance expenses.

Highlights of Q1 — Direct Finance (Mimun Yashir)

• Loan originations to customers in Q1 totaled ~NIS 3.1 billion, compared with ~NIS 2.4 billion in the corresponding quarter last year — growth of ~31%.
• Income from finance operations in Q1 totaled ~NIS 386 million, compared with ~NIS 298 million in the corresponding quarter last year — growth of ~29%.
• Net income attributable to shareholders in Q1 totaled ~NIS 48 million, compared with ~NIS 19 million in the corresponding quarter last year — growth of ~148%.
• As of March 31, 2026, the company’s outstanding loan portfolio totaled ~NIS 19.2 billion (including loans assigned to third parties), compared with ~NIS 15.9 billion as of March 31, 2025.
• In Q1, assignment transactions of ~NIS 1.4 billion were executed in the auto business, as well as a securitization transaction of ~NIS 399 million in the mortgage company. Direct Finance’s loan portfolio not assigned to third parties totaled ~NIS 9.8 billion as of March 31, 2026, compared with ~NIS 8.4 billion as of March 31, 2025.

Highlights of Q1 — Adgar

• NOI in the quarter totaled ~NIS 71.3 million compared with ~NIS 74.9 million in the corresponding quarter last year. The decline is mainly due to the decline in exchange rates. NOI from comparable properties (excluding FX effects) declined in the quarter by ~1.1% YoY.
• FFO in the quarter totaled ~NIS 27.9 million compared with ~NIS 31 million in the corresponding quarter last year. The decline is mainly due to the decline in average exchange rates.
• Shareholders’ equity attributable to owners of the company remained stable since year-end 2025, totaling ~NIS 1.6 billion as of March 31, 2026.
• Comprehensive income in the quarter totaled ~NIS 14 million compared with profit of ~NIS 33 million in the corresponding quarter last year. The profit was impacted by the strengthening of the shekel against the currencies in which Adgar operates.

Highlights of Q1 — Neema

• Neema’s revenue grew by ~38% in the quarter, totaling ~NIS 36 million compared with ~NIS 26 million in the corresponding quarter last year. The growth in revenue is driven by increased activity in the digital account, primarily from funds management and customer money transfers, as well as growth in the customer base.
• Comprehensive loss before tax totaled ~NIS 2.8 million compared with a loss of ~NIS 4.8 million in the corresponding quarter last year. The loss is driven by an increase in operating, marketing, G&A, and other expenses in line with the growth in Neema’s scope of activity.

Group asset value — book value, market NAV and external valuation (PwC)

All figures in NIS millions (except per-share values, holding shares, and discount).

• ^* Calculated based on closing prices on the Tel Aviv Stock Exchange as of 29.05.2026.
• ^** Based on an external valuation as of December 31, 2025, conducted by PwC Israel.
• ^*** Holding shares reflect the direct holding in the shares of the subsidiaries, Direct Insurance and the company.
• ^[1] At Zur — gross financial debt of ~NIS 1,400 million less cash and securities totaling NIS 434 million. At Direct Insurance — gross financial debt of ~NIS 592 million less cash and securities totaling ~NIS 328 million. At Direct Holdings — cash and cash equivalents of ~NIS 4 million.

About the company

Zur Shamir is a leading holding company investing in insurance, finance, income-producing real estate and global financial services. The company holds, through Direct Insurance — Financial Investments (88%), ~41% of IDI Insurance, the pioneer of direct insurance in Israel, operating for over 30 years and the largest in its field. In addition, it holds ~44% of Direct Finance (Mimun Yashir), the leading company in auto loans and a growing mortgage lender; ~54% of Adgar, which operates in income-producing real estate with assets totaling over NIS 5 billion. The company also has a direct holding of ~4% in Adgar. In addition, Direct Insurance holds ~98% of Neema, which engages, inter alia, in global financial services, including via a money-transfer application.