INVESTOR PRESENTATION 2015Q1
Contents Non-life Sector Profile 3 Outline of the Company 11 Financial Highlights 25 Appendix 33 2
Non-life Sector Profile Outline of the company Financial highlights 3
Number of Companies (03.15) Number of Foreign Shared Companies Premium Production (mn TL) 7,3% Non Life 37 Life 26 Non Life 25 Life 18 22,2% 24.230 22.710 25.990 Reinsurance 1 Reinsurance - 19.827 20.834 Total 64 Total 43 17.116 Non Life * 35 of 43 company has more than 50% foreign shares. Life Total Premium Production of the Sector (mn TRY) (03.15) Premium Share Non Life 6.968 88% Life 945 12% Total 7.913 100% 2.711 3.395 3.280 12.12 12.13 12.14 SOURCE: Association of Insurance Companies, Undersecretariat of treasury annual report 21,7% 9,0% 4
Remarks About the Sector 2012 2013 2014 Inflation Rates (%) 6,2 7,4 8,2 CHANGE İN GDP AND GWP 21,7 GDP Change (%) 2,1 4,0 2,6 18,1 GDP (Per Person) ($) 10.459 10.782 10.404 9,0 GDP (Per Person) (TRY) 18.927 23.012 22.753 Premium Increase (%) non-life Premium Increase (%) (Anadolu) 18,1 21,7 9,0 16 23 9,3 2,1 4,0 2,6 2012 2013 2014 GDP Change (%) Premium Increase (%) non-life SOURCE: Association of Insurance Companies, turkstat 5
Mandatory Policies in Turkey 12,00 70,0% 10,00 9,98 61,2% 60,0% 8,00 37,8% 6,00 17,8% 4,00 20,8% 3,10 19,6% 2,84 8,0% 2,00 1,63 11,6% 0,78 0,43 0,21 0,00 automobile mini-bus bus pick-up van truck tractor motorbike Number of Mandatory Earthquake Policies (million) 6,03 6,81 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% 18,9 million of vehicles and 10 million automobiles in Turkey. 39,1% of houses had a mandatory earthquake policy in 2014 21% of all vehicles do not have mandatory MTPL policy 4,79 3,31 3,73 2010 2011 2012 2013 2014 SOURCE: turkstat, State Planning Organization, Association of Insurance Companies, bkm, tramer, TCIP 6
Foreign Capital with M&A s Company Market Share Foreign Capital Stake Transaction Price Year Başak Sigorta 5,10% 56,70% Groupama Başak Emeklilik 13,30% 41,00% 268 Million USD 2006 Emek Hayat - Global Equities Management 100,00% 2 Million TRY 2006 İhlas Sigorta 1,40% HDI International 100,00% 17 Million Euro 2006 Şeker Sigorta 1,60% Liberty Mutual Group 63,90% - 2006 İsviçre Sigorta 6,90% Ergo Group 75,00% - 2006 İsviçre Hayat 1,80% Ergo Group 67,50% - 2006 Global Hayat 0,20% Denizbank-Dexia 99,60% 2,7 Million Euro 2007 Ray Sigorta 3,20% TBIH 58,20% 81 Million USD 2007 Garanti Sigorta 4,50% Eureko 80,00% 365 Million Euro 2007 Garanti Emeklilik 7,10% Eureko 15,00% 100 Million Euro 2007 Genel Sigorta 3,50% Mapfre Genel Yaşam 1,70% Mapfre 80,00% 285 Million Euro 2007 Axa Oyak Sigorta 12,20% 35,50% Axa Axa Oyak Hayat 4,70% 50,00% 525 Million USD 2008 Koç Allianz 9,10% Allianz SE 43,40% 248 Million Euro 2008 Koç Allianz Hayat 5,20% Allianz SE 49,00% 125 Million Euro 2008 Güven Sigota 2,40% 99,00% Groupama Güven Hayat 1,20% 99,00% 180 Million Euro 2008 Fiba Sigorta 2,60% NKSJ 93,40% 307 Million USD 2010 Ak Sigorta 7,40% Ageas 31,00% 220 Million USD 2011 Deniz Emeklilik 4,50% MetLife 99,90% 162 Million Euro 2011 Finans Emeklilik 5,20% Cigna Nederland 51,00% 85 Million Euro 2012 Yapı Kredi 7,20% 93,90% 2014 Allianz 603,5 Million Euro 7 Yapı Kredi Emeklilik - 80,00% 2014
Non Life Premium Figures (2013) Premium / GDP (%) Premium Per Person ($) World 2,8 285 USA 4,3 2.296 UK 2,8 1.087 Switzerland 4,4 3.490 Poland 1,8 252 Central and Eastern Europe 1,4 170 Turkey 1,3 143 350 300 250 200 150 100 118 102 108 6% 165 93 138 106 14% 163 114 8% 8% 215 219 123 16% 143 305 20% 15% 10% 5% 0% -5% -10% Premium($) Premium(TRY) Change ($) 50-14% -15% 0 2007 2008 2009 2010 2011 2012 2013 SOURCE: Treasury, Association of Insurance Companies, Swiss Re Sigma 3,2014-20% 8
Top Ten Companies in the Sector (03.2015) Non - Life Companies GWP (mn TRY) Market Share Other; 25,8% Allianz; 13,0% Allianz 904,7 13,0% Axa; 12,1% Axa 841,5 12,1% Anadolu 818,2 11,7% Mapfre 465,0 6,7% Eureko; 3,8% Aksigorta 455,7 6,5% Groupama 452,3 6,5% Acıbadem; 4,0% Ziraat 378,8 5,4% Güneş 316,4 4,5% Acıbadem 276,7 4,0% Eureko 263,2 3,8% Top 10 Companies 5.172,5 74,2% Other 1.795,3 25,8% Güneş; 4,5% Ziraat; 5,4% Groupama; 6,5% Aksigorta; 6,5% Mapfre; 6,7% Anadolu; 11,7% TOTAL 6.967,8 100,0% SOURCE: Association of Insurance Companies, 9
Non Life Companies Premium Production (mn TRY) Type of Coverage 03.2015 03.2014 Change (%) Share (03.2015) (%) MOD 1.280,6 1.202,2 6,5 18,4 MTPL 1.387,0 1.333,2 4,0 19,9 Fire and natural disaster 1.154,9 1.068,2 8,1 16,6 Health 1.174,1 1.006,3 16,7 16,9 General losses 1.122,5 868,9 29,2 16,1 Accident 277,4 236,4 17,3 4,0 General liability 202,4 164,8 22,8 2,9 Other 368,9 323,2 14,1 5,3 Total 6.967,8 6.203,2 12,3 100,0 SOURCE: Association of Insurance Companies, 10
Non-life Sector Profile Outline of the company Financial highlights 11
Few Remarks About the Company VISION To make Anadolu Sigorta the insurance brand preferred by everyone who needs insurance. To achieve a strength that makes it a reference point in the worldwide insurance industry as well. MISSION To be a pioneer, to create a broad public awareness of insurance To implement a customer-focused approach, to increase the financial strength To enhance the value of the Company FACTS Founded by Türkiye İşbankası A.Ş. in 1925 (90 th anniversary) First National Insurance Company Main activity: Non-life insurance (until 1991, both life and non-life) 12
Shareholder Structure Area of activity Other 43% Accident General losses Sickness\Health Land vehicles liability (MTPL) Land vehicles (MOD) Air vehicles liability Industrial vehicles Water vehicles liability Milli Reasürans 57% Air vehicles General liability Water vehicles Credit Marine Financial loss Fire and natural disaster Legal protection %77 of Milli Reasürans is owned by T. İş Bankası A.Ş. As of 03.15; Paid-in capital 500 million TRY MCap 655 million TRY Free Float Ratio ~48% 13
Distribution Channels (03.2015) Headquarter İstanbul 9 regional branches around Turkey İstanbul (2), Ankara, Antalya, İzmir, Adana, Bursa, Samsun, Trabzon Overseas North Cyprus 2576 Professional Agencies ~25% working exclusively with Anadolu 1353 Işbank Branches Working exclusively with Anadolu 244 MSU (direct sales staff) working 14
Bancassurance (03.2015) Broker; 12,7% İşbank; 11,0% Branch Comb. Ratio (Branch) Premium Bank/gpw Indirect; 9,3% Fire and natural disaster 89% 28m 20% MOD 95% 22m 12% Direct; 1,9% Accident 49% 10m 41% Agencies; 65,1% 15
Bancassurance (03.2015) Işbank Premium Production MSU # 40,6% 244 2014Q1 64m 2015Q1 90m 159 162 182 Total Premium Production 3,9% 2014Q1 787m 2015Q1 818m 2011 2012 2013 2014 16
Premium Distribution By Regions (03.2015) Marmara; 60,9% Black Sea; 5,4% Middle Anatolia;12,9% East Anatolia; 2,5% Aegean; 8,1% South East Anatolia; 2,6% Mediterranean; 7,5% 17
Premium Production (03.2015) (mn TRY) Other 22% Mod 23% Health 15% Mtpl 23% Branch 03.15 03.14 Change (%) Mtpl 189.270 204.303-7 Mod 186.592 215.549-13,4 Fire and natural disaster 140.072 116.567 20,2 Health 119.971 91.188 31,6 Fire and natural disaster 17% Other 182.302 159.410 14,4 Total 818.207 787.017 4,0 18
MOD+MTPL(ANSGR) MOD+MTPL(SECTOR) 48,19% 50,61% 56,08% 54,88% 55,10% 53,40% 46,36% 47,39% 46,70% 49,49% 49,96% 46,74% 2009 2010 2011 2012 2013 2014 YEAR MOD+MTPL ANSGR (mn TRY) MOD+MTPL SECTOR (mn TRY) 2009 599 4.921 2010 719 5.662 2011 1.080 6.762 2012 1.226 8.471 2013 1.515 10.409 2014 1.604 10.613 19
Market Rank (1st) Accident(9,0%) Water vehicles (35,6%) Air vehicles liabillity(43,8%) General liability (14,9%) Fire and natural disaster (12,1%) Market Rank (2nd) MOD (14,6%) Air vehicles (28,7%) Marine (10,5%) Market Rank (Other) MTPL (13,6%) Health (10,2%) General losses (7,1%) Credit (0,5%) Financial loss (8,9%) Legal protection (6,9%) Total Market Share for Anadolu in 2015Q1 is; 11,7% in 3rd rank 20
Premium Per Policy (2014Q1-2015Q1) MOD # of Policy decrease 23,6% (2014Q1 =>165.000; 2015Q1=>126.000) GWP decrease 13,4% (2014Q1 =>216m; 2015Q1=>187m) Premium Per Policy increase 13,3% (2014Q1=>1.309;2015Q1=>1.484) Premium per policy increased %32 in 2013 in MOD MTPL # of Policy decrease 10,9% (2014Q1 =>339.000; 2015Q1=>302.000) GWP decrease 7,6% (2014Q1 =>172m; 2015Q1=>159m) Premium Per Policy increase 3,8% (2014Q1=>507;2015Q1=>526) 21
Combined Ratio - branches 109% 117% MOD 92% 96% 81% Fire & Nat. D. 108% 88% 80% 2011 2012 2013 2014 2011 2012 2013 2014 MTPL 127% 125% 117% IBNR in MTPL has increased from 183m TRY to 238m TRY in 2014. 109% 2011 2012 2013 2014 22
Combined Ratio 107% 13% 111% 9% 17% 101% 10% 103% 9% ~ 105% 18% 76% 85% 15% 76% 14% 80% 2011 2012 2013 2014 2015E Claims Ratio Net Comm. Ratio Expense Ratio 03.15 Claims Ratio 82,7% Net Commission Ratio 14,4% Expense Ratio 9,1% Combined Ratio 106,2% 23
Profitability (ROE ROA) ROE 19,35 8,42 5,97 4,42 7,39 7,02 2007 2008 2009 2010 2011 2012 2013 2014 0,58 ROA -8,46 7,67 3,87 2,76 1,92 2,07 1,90 0,18 2007 2008 2009 2010 2011 2012 2013 2014-2,56 24
Non-life Sector Profile Outline of the company Financial highlights 25
Growth Performance Cash and Marketable Sec. (mn TRY) 174% 1.785 2.250 Tech. Reserves (mn TRY) 1.050 1.248 1.324 28% 145% 1.851 2.282 2010 2011 2012 2013 2014 933 1.215 1.398 23% 1.951 Total Assets (mn TRY) 93% 2.498 2.209 3.253 16% 3.773 2010 2011 2012 2013 2014 Gross Premium Written (mn TRY) 2010 2011 2012 2013 2014 Shareholders' Equity (mn TRY) 20% 1.020 913 849 705 756 1.420 112% 1.926 2.235 2.750 9% 3.005 12% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 26
Balance Sheet (Assets) Assets (mn TRY) 03.2015 12.2014 Change (%) Cash + Marketable Sec. 2.315,4 2.250,1 2,9 Receivables 856,3 797,5 7,4 Equity Participations 383,8 391,4-1,9 Fixed Assets 92,5 94,6-2,2 Other Assets 289,0 239,9 20,5 TOTAL 3.936,9 3.773,4 4,3 27
Balance Sheet (Liabilities) Liabilities (mn TRY) 03.2015 12.2014 Change(%) Payables 387,2 349,6 10,8 Technical Provisions 2.424,1 2.282,5 6,2 Shareholders' Equity 1.014,3 1.019,8-0,5 Other Liabilities 111,3 121,5-8,4 TOTAL 3.936,9 3.773,4 4,3 28
Income Statement (mn TRY) 03.2015 03.2014 Change (%) Total Technical Income 676,7 570,5 18,6 Total Technical Expenses -636,7-533,4 19,4 Technical Profit / Loss 40,1 37,1 7,9 Financial Income 102,2 68,1 49,9 Financial Expenses -107,0-70,0 52,9 Other Income / Expenses -9,9-11,1-10,6 Financial Profit / Loss -14,7-12,9 14,1 Gross Profit / Loss 25,3 24,2 4,6 Tax Provisions -1,8-3,9-53,8 Net Profit / Loss 23,5 20,3 15,8 29
Major Affiliates (03.2015) Anadolu Life Is Reit Equity (mn TRY) Shareholders Equity (mn TRY) Market Share Market Cap (mn TRY) Share Owned Share Value (mn TRY) 380 598 19,5% 1.919 20% 384 680 1.170 4,4% 1.108 4,8% 53 03.2015 03.2015 MCap 655 million P / BV 0,65 After deducting affiliates MCap 218 million P / BV 0,32 30
Stock Performance 100.000,00 90.000,00 80.000,00 70.000,00 60.000,00 50.000,00 40.000,00 30.000,00 20.000,00 10.000,00 0,00 01.13 02.13 03.13 04.13 05.13 06.13 07.13 08.13 09.13 10.13 11.13 12.13 01.14 02.14 03.14 04.14 05.14 06.14 07.14 08.14 09.14 10.14 11.14 12.14 01.15 02.15 03.15 1,60 1,40 1,20 1,00 0,80 0,60 0,40 0,20 0,00.XU100 ANSGR 01.2014 12.2014 03.2015 Change 01.15-03.15 ANSGR 1,33 1,38 1,31-5,1% IMKB-100 67.802 85.721 80.846-5,7% 12.2013 12.2014 ANSGR 1,33 1,42 EPS (net profit / capital) 0,13 0,14 P / E (Mcap / net profit) 9,86 9,92 P / BV (Mcap / Book value) 0,73 0,70 31
Investment Portfolio (03.2015) Funds; 6,3% Stocks; 5,0% Bonds; 15,9% Almost all of our bank deposits mature in 1 to 3 months time and bonds generally in 2 years. 47% of funds are related to stocks. Other; 1,7% Deposits; 71,2% 32
Disclaimer This presentation contains forward-looking statements and information on the business development of Anadolu Sigorta. These statements may be spoken or written and can be recognized by terms such as expects, anticipates, intends, plans, seeks or words with similar meaning. These statements are based on assumptions relating to the development of the economies of individual countries, and in particular of the insurance industry, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given involve a degree of risk, and the actual developments may differ from those forecasts. Anadolu Sigorta does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its content due to misleading information in this document. 33
Thank you For further information please e-mail to: investor.relations@anadolusigorta.com.tr or call Anadolu Sigorta Investor Relations on (+9 0850 744 02 54), (+9 0850 744 01 64) 34