1

Migdal Insurance and Financial Holdings Ltd.

Financial results 1-3/2009

May 2009

2

(249)

14106

(121)

(71)

200

(500)

(400)

(300)

(200)

(100)

0

100

200

300

400

2008 1-3/2008 1-3/2009

Change in capital reserves and other

Profit / (loss) for the period(369)

(56)

306

Migdal Holdings - Comprehensive incomein NIS millions

3

108

(145)(227)

106(71)

(120)

48

200

(159)

(263)(238)

202

14

2323

(600)

(400)

(200)

0

200

400

600

1-3/08 4-6/08 7-9/08 10-12/08 1-3/09

Change in variable management fees that will not be collected - after tax

Change in capital reserves and other

Net profit / (loss)

(215)

508

154

(527)(417)

Migdal Holdings - net profit including the change in variable management fees that will not be collected

In NIS millions

4

5

2

9

2

6

28

48

33

(3)

15

43

158Total

Insurance agencies and other

Financial services

General insurance

Health insurance

Long term savings *1-3/2009

1-3/2008

Migdal Holdings - Long term savings Sources of income before tax, in NIS

millions

*Not including the change in capital reserves and the change in variable management fees that will not be collected in the future

5

Migdal Holdings - Long Term Savings -

Sources of Profit Before Tax, in NIS Millions

3

8

(14)

4

10

29

(3)43

(20) (10) 0 10 20 30 40 50

Long termsavings

Provident funds

Pension

Life assurance

1-3/2009

1-3/2008

6

1.8%0.4%

-17.4%

2.9%

-18.4%

-0.4%

-8.1%

-0.7%

11.0%12.0%

6.2%3.5%

15.6%

-1.6%

-20%

-10%

0%

10%

20%

Tel Aviv 25 CPI linked gov.bonds

CPI non linkedgov. bonds

CPI linkedcorporate bonds

MSCI Tate $ / NIS CPI

1-3.08 1-3.09

Real Market Yields 1-3/2009

7

Migdal Holdings - change in capital attributed to

Company’s shareholders 1-3/2009, in NIS millions

2,987

3,296105204

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Balance as at31.12.2008

Change in capitalreserves and other

Profit / (loss) for theperiod

Balance as at31.03.2009

8

4862,077

2,663

2,38182200 100

0

500

1,000

1,500

2,000

2,500

3,000

Balance as at31.12.2008

Change in capitalreserves and other

Profit / (loss) for theperiod

Balance as at31.03.2009

Required capital

Secondary capital surplus - subordinated loan capital from Migdal HoldingsPrimary capital surplus

Migdal Insurance - change in capital and capital

requirements 1-3/2009, in NIS millions

9

Organizational structural change in the Group - a Customer Division concentrates all the distribution and service activity of institutional organs in:

Migdal Insurance Company

Ltd.

Migdal Makefet

Migdal Platinum

About 1,350 employees + 1,000 in-house agency employees About 1.5 million customers About NIS 12 billion annual collection

Directcustomers

Agents

Employers

Advisors

MigdalCustomers

About NIS 350 million expense budget About 1,500 agents About NIS 900 million commissions

10

1.3 1.4

0.40.4

0.60.7

0.30.3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1-3/2008 1-3/2009

Life assurance Health insurance General insurance Pension funds Provident funds

2.92.7

6%+

21%+

17%+

10%+

Migdal Holdings - insurance premiums and pension

and provident funds contributions , in NIS billions

11

19

29

45

15

11

18

30

35

13

11

13

50

60

75

98

8915

0

20

40

60

80

100

120

2004 2005 2006 2007 2008 31.3.2008 31.3.2009

Financial services

Financial services

Pension funds

General insurance + health insurance

Life assurance - policies issued starting from 1.1.2004

Life assurance - policies issued in the years 1992 - 2003

Life assurance - nostro

94 97

Migdal Holdings - total assets under management *In NIS billions

* Including acquisitions throughout the years

Average annual growth rate 2004 - 32009

37%

140%

23%

7%

5%

12%

12

19

29

4

15

18

30

3

13

43

51

58

7674

1111

0

10

20

30

40

50

60

70

80

90

2004 2005 2006 2007 2008 31.3.2008 31.3.2009

Provident & educational funds

Pension funds

Life assurance - policies issued starting from 1.1.2004

Life assurance - policies issued in the years 1992 - 2003

Life assurance - nostro

3/2009 -2004שיעור גידול שנתי ממוצע (כולל רכישות) 140%

23%

5%

12%

7975

* Including acquisitions throughout the years

Migdal Holdings - long term savingsTotal assets under management *, in NIS billions

13

Migdal Holdings - gross nominal yields for life assurance

profit participating policies insured (J’ fund)vs. competitors1-3/2009

6.9%

9.2%

10.9%

8.6% 8.8%

0%

2%

4%

6%

8%

10%

12%

Migdal Clal Menorah Harel ThePhoenix

Annual 3 year average

2.2%

1.5%

-1.0%

0.6%

-2.2%-2.5%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Migdal Clal Menorah Harel ThePhoenix

Annual 5 year average

5.2% 5.1%

3.9%

4.9%

2.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Migdal Clal Menorah Harel ThePhoenix

14

Migdal Makefet - gross nominal yields for pension

fund members vs. competitors1-3/2009

5.8%

7.9%

6.7%

7.8%8.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

MigdalMakefet

Meitavit(Clal)

Mivtachim(Menorah)

Harelpension

ThePhoenixpension

Annual 3 year average

4.4%

3.2%

1.9%

4.2%

1.2%

0%1%1%2%2%3%3%4%4%5%5%

MigdalMakefet

Meitavit(Clal)

Mivtachim(Menorah)

Harelpension

ThePhoenixpension

Annual 4 year average

6.4%

5.1%

4.1%

6.1%

3.5%

0%

1%

2%

3%

4%

5%

6%

7%

MigdalMakefet

Meitavit(Clal)

Mivtachim(Menorah)

Harelpension

ThePhoenixpension