Investor Presentation

Transcription

1 2012

2 2 Contents Page Why to invest in Aksigorta 3 Overview of Turkish Economy 4-5 Non-Life Insurance Market 6-11 About Aksigorta Strategic Overview Business Outline Financial Highlights Social Responsibility 30

3 Why to Invest in Aksigorta 3 1 Great Potential in TR NL Insurance Market Turkey has 1,1 NL insurance penetration while peer economies have 2-3 Turkey has 17th largest economy on the world, while TR NL insurance market is 29th in ranking Growth over the Market 2 22% 28% ~15% ~20% Market Aksigorta 2011 Growth Rate CAGR Targets 3 Great Potential in Akbank Increasing Profitability 4 8% 5% 5% 120% 90% Combined Ratio Loss Ratio ROE 107% 9% 104% 6% 99% 5% 10% 5% Akbank NL Insurance Market Share Akbank Banking Market Share Peer Group NL Insurance Market Share 60% 83% 78% 72% %

4 Overview of Turkish Economy Why to invest in Aksigorta #1 Turkey is the 17th largest economy in the world, with strong growth prospects ,0% ,0% ,0% 0 USA Chin Japa Germ Fran UK Braz Ital Russ Cana Indi Spai Ausl Mexi S.Kor Neth Turk Indo Swit Pola GDP ($ Bn) #GDP NL Ins ($ Bn) #NL NL Ins/GDP 4,5% 1,3% 2,1% 3,8% 3,4% 4,3% 1,5% 2,5% 2,3% 4,1% 0,7% 2,9% 2,8% 1,0% 4,2% 9,2% 1,1% 0,5% 4,4% 1,8% Source: Sigma No2/2011 World Insurance in ,0% GDP Growth of Turkey in real terms 4,7 0,7-4,8 9,0 8,6 3,0 4, Source: Turkish Statistical Institute web site Source for 2012 & 2013 expectations: OECD Economic Outlook No: 90

5 5,0 4,0 Overview of Turkish Economy Turkish insurance sector still underpenetrated (~1%) implying a high potential supported with young and growing population Non Life GWP / GDP (%) (2010) Korea Slovenia Germany US Canada Switzerland Population of Turkey (million) CAGR ( ) 1,2% 5 3,0 2,0 Austria France South Africa Spain UK Russia Portugal Belgium Italy Bulgaria Croatia Czech Republic Poland Brazil Serbia Slovakia Romania Hungary Japan Australia 72,1 73,0 74,0 75,8 77,6 79, E 2015E 2017E Source: Turkish Statistical Institute web site Younger population in Turkey 7% 15% 13% 14% 18% 17% 19% 1,0 China Turkey India Greece 67% 70% 72% 72% 68% 69% 67% 0, GDP / Capita ($) (2010) Source: Sigma No2/2011 World Insurance in % 15% 15% 15% 15% 15% 15% Turkey Romania Russia Poland Austria Hungary Greece Age 0-14 Age Age 65+ Source: Turkish Statistical Institute web site

6 Non Life Insurance Market Global and local trends shape the insurance industry 6 Shifts in growth from mature to emerging markets Increasing per capita income Interest rates decreased during the 2000s Fierce competition leading to aggressive pricing Highly fragmented market with many small players and new entrants Macro / Micro Economic Political / Catastrophy Political stability since 2003 expected to continue in the foreseeable future More intensive regulatory climate since 2007 Potential and actual catastrophic events Increased use of internet, social media and mobile technology Rising popularity of business analytic s capabilities The rise of aggregators enabling price and coverage comparison Technological Social / Demographic Faster consumption by less patient customers Untapped potential in certain segments (such as low income, rural population) Culturally, economically, demographically different consumers Decreasing customer loyalty due to ease of shopping around

7 Non Life Insurance Market Persistent market positions started to change after % 14,2% 14,3% 13,0% 13,2% 12,9% 13,2% 12,6% 12,7% 13,7% 14,2% 12,0% 11,8% 12,2% 11,8% 12,4% 12,3% 11% 10,0% 9,7% 9,3% 9,2% 9,2% 8,1% 8,3% 8,6% 8,1% 8,1% 8,6% 8,4% 8,5% 8,1% 7,9% 7,7% 7,4% 7,3% 6,0% 6% 6,8% 6,4% 6,6% 6,9% 7,2% 4,7% 5,4% 5,4% 4,9% 5,1% 4,5% 4,5% 4,5% % H1* Market GWP (TRL m) Axa Anadolu Aksigorta Allianz Eureko Yapı Kredi * Rolling 12 months period Source: Ass. of the Ins. and Reins. Companies of Turkey AXA has market shares, 29% in MTPL and 16% in MOD LOBs, 18% in Agency channel ANADOLU has market shares, 18% in MOD and 14% in MTPL LOBs, 15% in Agency and 16% in Broker channels. AKSİGORTA has sustainable profitability focus, balanced business and channel mix ALLIANZ has market shares, 19% in Health LOB, 9% in Agency and 10% in Broker channels. YAPI KREDİ has market shares, 25% in Health LOB, 16% in Direct Sales channel. EUREKO has 19% market share in Bank channel. Rule of the game is changing: consolidation approach in products, tiers based on profitability focus Competition based on understanding customer segments and offering value Insurers offer similar products, consumers have a lot of choices Customer loyalty can be obtained via high service quality and cross selling

8 Non Life Insurance Market Aksigorta is the leading company of which have combined ratio <100% 8 As of YE 11 Market Share Loss Ratio Commission Ratip Expense Ratio ROE Axa 14,2% 79% 19% 6% 4% Anadolu 13,7% 76% 18% 13% 1% Aksigorta 8,1% 70% 17% 12% 9% Allianz 8,1% 68% 17% 14% 12% Yapı Kredi 6,9% 75% 10% 15% 16% Güneş 5,8% 70% 8% 20% 9% Groupama 5,8% 80% 15% 13% -4% Eureko 5,1% 59% 16% 24% 9% Ergo 5,0% 77% 19% 19% -33% Mapfre 4,0% 73% Source: Ass. of the Ins. and Reins. Companies of Turkey 12% 14% Combined Ratio 100% level 6%

9 Non Life Insurance Market Looking forward, we expect the market to grow faster, due to economic development and asset accumulation Market GWP, million TRL CAGR ( ) ~15% > CAGR ( ) 15% E 17,5% 12,7% 13,1% 11,2% 9,4% 9,7% 10,1% 10,4% 8,9% 7,7% 9,0% 9% 8,1% 9,4% 8,4% 7% 8,4% 8,6% 6,9% 6,5% 4,7% 0,7% 6,4% 5% ,0% E -1,8% -4,7% Real GWP Growth Real GDP Growth Inflation

10 Non Life Insurance Market Bank channel is expected to grow faster than the other channels 10 CAGR % 69% 69% 68% 11% 12% 13% 14% ~15% ~ 20% ~ 20% ~60% ~20% 10% 11% 11% 11% ~15% ~ 10% 7% 8% 7% 7% ~5% E Agencies Banks Brokers Direct Sales

11 Non Life Insurance Market Health and non-motor businesses are expected to grow faster than the motor business CAGR % 11% 12% 12% ~20% ~15% 50% 48% 48% 48% ~15% ~45% Health Motor Non-Motor ~ 15% 40% 41% 40% 40% ~40% E

12 About Aksigorta We revised our corporate outlook 12 Our Vision To be industry leader by providing innovative services Our Mission Making life secure by providing innovative non-life and health insurance services through all channels and creating value for all stakeholders Our Values Integrity Innovative Performance driven Solution driven Team work and collaboration Open communication

13 About Aksigorta Partners announced increasing their shares 13 About Sabancı Sabancı Holding is the parent company of the Sabancı Group, Turkey s leading industrial and financial conglomerate. Sabancı Group companies are market leaders in their respective sectors that includes financial services, energy, cement, retail, tire, tire reinforcement materials and automotive. Listed on the Istanbul Stock Exchange (ISE), Sabancı Holding has controlling interests in 11 companies also listed on the ISE. In 2010, the consolidated revenue of Sabancı Holding was US$ 13.0 billion with an EBITDA of US$ 3.0 billion. The Sabancı Family is collectively Sabancı Holding s major shareholder with 60.6% of the share capital. Sabancı Holding shares are traded on the Istanbul Stock Exchange with a free float of 39.4%. Sabancı; 36% Ageas; 36% Free Float; 28% About Ageas Ageas is an international insurance company with a heritage spanning more than 180 years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market. These are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia and served through a combination of wholly owned subsidiaries and partnerships with strong financial institutions and key distributors around the world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong and UK. It is the market leader in Belgium for individual life and employee benefits, as well as a leading non-life player, through AG Insurance, and in the UK, it has a strong presence as the third largest player in private car insurance and the over 50 s market. It employs more than 13,000 people and has annual inflows of more than EUR 17 billion.

14 About Aksigorta 14 Aksigorta makes life secure with variety of products Individual Products In For Your Family concept N'olur N'olmaz (Just In Case), Individual Health, Life Will Go On With The Hayata Devam (Life Goes On), Critical Diseases and Travel insurance SME and Corporate Products In For Your Employees concept Corporate Health and Employer s Financial Liability insurance In For Your Workplace concept In For Your House concept Home and Property insurance Office Package, Theft, Glass Breakdown, Third Person Financial Liability, Transportation, Engineering and Custom Risks insurance In For Your Vehicles and Vessels concept Individual Motor (Casco) and Traffic (3rd party liability) insurance

15 About Aksigorta 15 Aksigorta has country-wide distribution with its channels and regional offices Agencies Bank Corporate Sales 9 Regional Offices and 2 Representative Offices 2 Regional Offices 75 Sales Representative 53 Sales Representative 14 Sales Representative Agencies 922 Bank Branches 50 Brokers Direct Customers

16 Strategic Overview Product Channel Strategies defined to create the Future Aksigorta, transformation started Aksigorta Transformation Program Operational Excellence Sustainable Profitability Service Excellence 16 Product Operational Excellence Aksigorta Transformation Program Sustainable Profitability Channel Service Excellence

17 Strategic Overview Product Channel Aksigorta Transformation Program Operational Excellence Sustainable Profitability Service Excellence 17 Transform the business mix into a profitable mix Right size Motor Grow in Non-motor: Fire & Health Underwriting and Segmentation Project Develop pricing mechanism based on predictive modeling, improved risk based pricing by segmentation 2011 Health Insurance Business Development Project Program aims to support business development in Health at Aksigorta by three pillars; creating health focus in organization, growing to more efficient scale and attacking sources of profitability directly % 14% 53% Motor Non-motor Health ~25% ~40% ~35%

18 Strategic Overview Product Channel Revised channel-mix for profitable growth Aksigorta Transformation Program Operational Excellence Sustainable Profitability Service Excellence 18 Right size Agencies Increase weight of Bancassurance Agency Channel Profit and Effectiveness Optimization Project Studies on agency format (auto dealer), optimization of geographic footprint, product mix, agency incentivization and agency network management 2011 Bancassurance Target Operating Model Transformation Program Projects on multi-channel sales and servicing, product management, operations effectiveness, customer relationship management, governance structure % 15% 13% 69% Agencies Bank Other 25% 60%

19 Strategic Overview Operational Excellence Strategy Product Channel Aksigorta Transformation Program Operational Excellence Sustainable Profitability Service Excellence 19 Increased claims effectiveness & efficiency Fraud and leakage management Network management Leaner claims processing HR improvements IT transformation Claims Transformation Program 5 strategic initiatives improved front office capabilities, claims handling operations effectiveness, network and partnership management, fraud management and post claims services Data Analytics and CRM Enterprise Performance Management Better reporting functions to drive intelligence from data and decision from intelligence IT Infrastructure

20 Strategic Overview Service Excellence Strategy Product Channel Aksigorta Transformation Program Operational Excellence Sustainable Profitability Service Excellence 20 Brand Management From commodity to brand Establishment of innovation culture in Aksigorta Customer focus Innovation culture Customer retention (renewal) Differentiation with high service level Digital Aksigorta Developing digital sales and communication platforms for all stakeholders including websites, social media etc. Customer Experience Management Customer based service model, loyalty programs, targeted sales etc.

21 Business Outline Why to invest in Aksigorta #2 We target +5 pp growth over the market focusing in the profitable LOBs 21 10% ~10% % 8,4% 8,5% 7,7% 8,1% CAGR Aksigorta ~20% Market ~15% % ~ E 0 GWP Market Share

22 Business Outline Why to invest in Aksigorta #3 Bank will be the strategic channel for growth & profitability while keeping the agencies strong CAGR % 68% 68% 68% ~15% ~ 30% ~60% Agencies Banks Brokers Direct Sales 10% 9% 13% 13% 10% 11% 9% 9% ~ 20% ~ 10% ~25% ~10% 10% 11% 10% 10% ~5% E

23 Business Outline Shifting from motor to health & non-motor will be the key to improve the loss ratio 23 CAGR % 14% 16% 14% ~30% ~25% ~10% 55% 50% 51% 53% ~35% Health Motor Non-Motor 33% 36% 34% 33% ~ 25% ~40% E

24 Financial Highlights Why to invest in Aksigorta #4 24 Decrease in combined ratio will double the ROE ROE Combined Ratio Loss Ratio Commission Ratio 120% 107% 104% 99% ~20% 20% Expense Ratio 83% ~95% 60% 78% 72% ~68% 9% 10% 0% 6% 5% 18% ~20% 16% 14% ~7% 10% 10% 9% E 0%

25 Financial Highlights We will keep the downwards trend in loss ratios of health and motor LOBs 25 Health Loss Ratio Motor Loss Ratio Non-Motor Loss Ratio 104% 93% 84% 87% 86% 81% 44% ~45% ~75% ~75% 33% 37%

26 Financial Highlights 26 We reached positive figure in technical profit by the decrease in loss ratio Income Statement (TRL Million) 2009 YE 2010 YE 2011 YE Gross Written Premiums Net Written Premiums Net Earned Premiums Claims (net) Commissions (net) G&A Expenses Technical Profit *-11 Net Investment Income * Profit (Loss) Before Tax Tax Net Profit Combined Ratio 107% 104% 99% 103% 101% 101% Loss Ratio 83% 78% 72% 75% 75% 73% Commission Ratio 14% 16% 18% 17% 17% 18% Expense Ratio 10% 10% 9% 11% 10% 9% *Includes TRL 22 million dividend income from Akbank shares **The gross impact of the change in the ratio of premiums ceded to SSI is TRL 10,4 million.

27 Financial Highlights We have 39pp solvency capital surplus as of June (TL Million) 2009 YE 2010 YE 2011 YE Cash and Marketable Securities Receivables Other Assets Participations * Fixed Assets Total Assets Payables Technical Reserves Taxes Payable Other Liabilities Total Shareholders' Equity Total Liabilities and Shareholders' Equity Solvency Ratio 400% 155% 146% 162% 145% 139% * includes Akbank (TRL million) and Avivasa (TRL 548 million) shares

28 Financial Highlights Aksigorta reached max Insurance Profit in first half 2012 among listed NL companies 28 As of June 2012 (MTL) GWP Loss Ratio Commission Ratip Expense Ratio UW Profit PBT excl. Dividend Income Anadolu % 18% 10% Aksigorta % 18% 9% Yapı Kredi % 12% 12% 32 4 Güneş % 9% 24% Halk Sigorta % 12% 13% 11 4 Aviva % 24% Ray % 9% 22% 3-12 Source: KAP Combined Ratio 100% level

29 Financial Highlights Our 2012 H1 results are inline with our strategic targets 29 CHANNEL SHARES (%) LOB SHARES (%) 16% 15% Agencies Banks Brokers Direct Sales 66% 59% 51% 47% Health Motor Non-Motor 13% 14% 9% 11% 13% 15% Banks: +1pp Agencies: -7pp Brokers: +2pp 1H '11 1H '12 33% 38% 1H '11 1H '12 Non-motor: +5pp Motor: -4pp

30 Social Responsibility Keep Living Turkey is a country wide social responsibility project 30 Aksigorta and AKUT together reached a breakthrough by reaching more than 3 million people with respect to natural disasters and insurance awareness through the project entitled Keep Living, Turkey. The Disaster Training convoy, set up by Aksigorta and AKUT Turkey s most trusted organizations in their own fields to form the social responsibility project entitled Keep Living, Turkey, educated more than 3 million people on natural disasters and insurance awareness in a total of 30 provinces and 150 districts. Information on protection against disasters and catastrophes raising awareness on insurance was given to state officers such as provincial disaster executives, municipality workers, teachers, headmen, firemen, etc, as well as students and citizens through 1- hour seminars. Each school and state institution which gave permission to the making of seminars was given away natural disaster and insurance training boards to ensure continuity of the project and to reach more people. Thousands of our citizens visited the locations of our disaster training convoys, where they were able to experience earthquakes directly with the G Force earthquake simulator, which is Turkey s first 3-D simulator; and they were educated with respect to the necessary precautions. Please visit the official web site for details

31 Contact Information & Disclaimer 31 For further information please contact with; (Mr.) Osman Akkoca, Financial Control Manager and (Ms.) Gülnur Tüccar, Accounting Manager (T) Aksigorta A.Ş. Meclis-i Mebusan Caddesi No 67 Fındıklı İstanbul Türkiye Disclaimer The information and opinions contained in this document have been compiled by Aksigorta A.Ş. ( Company ) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. No undue reliance may be placed for any purposes whatsoever on the information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. The Company does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents. This document is strictly confidential and may not be reproduced, distributed or published for any purpose. The information and opinions contained in this document have been compiled by Aksigorta A.Ş. ( Company ) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. No undue reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. This document contains forward-looking statements by using such words as "may", "will", "expect", "believe", "plan" and other similar terminology that reflect the Company management s current views, expectations, assumptions and forecasts with respect to certain future events. As the actual performance of the companies may be affected by risks and uncertainties, all opinions, information and estimates contained in this document constitute the Company s current judgment and are subject to change, update, amend, supplement or otherwise alter without notice. Although it is believed that the information and analysis are correct and expectations reflected in this document are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Company does not undertake any obligation, and disclaims any duty to update or revise any forward looking statements, whether as a result of new information or future events. Neither this document nor the information contained within can construe any investment advice, invitation or an offer to buy or sell Company s shares. Company cannot guarantee that the securities described in this document constitute a suitable investment for all investors and nothing shall be taken as an inducement to any person to invest in or otherwise deal with any shares of Company and its group companies. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. You must not distribute the information in this document to, or cause it to be used by, any person or entity in a place where its distribution or use would be unlawful. Neither Company, its board of directors, directors, managers, nor any of Its employees shall have any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.

32 Contact Information & Disclaimer 32 For further information please contact with; (Mr.) Osman Akkoca, Financial Control Manager (Mrs.) Gülnur Tüccar, Accounting Manager Aksigorta A.Ş. Meclis-i Mebusan Caddesi No 67 Fındıklı İstanbul Türkiye (T) (F) Disclaimer The information and opinions contained in this document have been compiled or arrived at by Aksigorta A.Ş from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Future actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, (ii) performance of financial markets, (iii) the frequency and severity of insured loss events, (iv) interest rate levels and trends, (v) persistency levels, (vi) currency exchange rates, (vii) changes in laws and regulations, (viii) changes in the policies of central bank and (ix) general competitive factors. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgement by any recipient. The Company does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents. This document is strictly confidential and may not be reproduced, distributed or published for any purpose.