Agesa Hayat Ve Emeklilik A.s. · BIST:AGESA
Agesa Hayat Ve Emeklilik A.s — H1 2022 Earnings Presentation
25 slides from Agesa Hayat Ve Emeklilik A.s's earnings presentation, Aug 10, 2022
Slide 1: Presentation to Investors H1 2022
Presentation to Investors H1 2022 Earning Release 10 August 2022
Slide 2: Key Financial Results
Key Financial Results Şirkete Özel (Internal)
Slide 3: Solid Financial Foundations
Solid Financial Foundations H1 2022 YoY/Δ Pension AUM (inc AE) 52,5 bTL 62% Leading position in private companies’ Pension and AE AUM Leading position in private companies’ Total Life&PA GWP Total GWP (Life+PA) 1.579 mTL 83% Success of strong growing RoP portfolio and credit life product Total Techn
Slide 4: Historical Track Record of Value Creation
Historical Track Record of Value Creation A Story of Solid Profitable Growth CAGR YoY 2017 2018 2019 2020 2021 2017-21 H1 2021 H1 2022 2021-22 Pension AUM (inc AE) 15.3 bTL 17.3 bTL 23.1 bTL 30.5 bTL 43.5 bTL 30% 32.3 bTL 52.5 bTL 62% Total GWP (Life+PA) 471 mTL 565 mTL 988 mTL 1.332 mTL 2.020 mTL 4
Slide 5: Financials
Financials Şirkete Özel (Internal)
Slide 6: Update on Regulations
Update on Regulations Inflation Accounting • IAS29 Financial Reporting in Hyperinflationary Economies applies where an entity's functional currency is that of a hyperinflationary economy. The reason is to show how much purchasing power the company lost on monetary items and gained on non-monetary it
Slide 7: Summary of P&L from Segmental Reporting
Summary of P&L from Segmental Reporting(1) 2017(2) 2018(2) 2019(2) 2020 2021 CAGR H1 2021 H1 2022 YoY Q1 2022 Q2 2022 QoQ Pension Technical Profit 207 234 243 283 349 14% 159 242 52% 115 126 9% Life Protection Technical Profit(3) 151 214 281 473 765 50% 355 608 71% 276 333 21% Life Savings Technical
Slide 8: Solid and Resilient Technical Profitability with Operating Leverage Potential
Solid and Resilient Technical Profitability with Operating Leverage Potential Technical Profit (mTL)(1,2) Expense Ratio (%)(1,2) Expense ratio=(Opex-AE Related Expenses-Sales Expenses)/(Opex-AE Related Expenses- Sales Expenses+Management Reporting Proft Before Tax) 45,0% 43,0% 41,3% 41,2% 38,5% 37,8
Slide 9: Flexible Dividend Policy Focused on Growth
Flexible Dividend Policy Focused on Growth Dividend Policy Objective set amongst core shareholders to aim at distributing 50% of AgeSA’s Turkish GAAP-based distributable profit Current focus however is on increasing the scale of operations and therefore near-term priority is to reinvest in the busin
Slide 10: Overview - Business Lines
Overview - Business Lines Şirkete Özel (Internal)
Slide 11: Differentiated Management of Trends & Dynamics per Segment
Differentiated Management of Trends & Dynamics per Segment Pension* Life Protection** Personal Accident AUM – Inc. State contribution (mTL) Gross Written Premium (mTL) Gross Written Premium (mTL) FMC % (inc. State contribution) CAGR: -6% 1,5 1,4 1,3 1,3 1,2 1,2 1,3 CAGR: 49% 85% 62% 82 CAGR: 30% 1.9
Slide 12: Pension
Pension (1) Sustainable Growth and Scale Ambitions Pensions AUM including State Contribution (mTL) Technical Profit (mTL) 62% 52.467 CAGR: +30% CAGR: +14% 43.502 349 52% 32.311 283 30.473 243 242 234 23.133 207 17.304 159 15.325 2017 2018 2019 2020 2021 H1 2021 H1 2022 2017 2018 2019 2020 2021 H1 20
Slide 13: Life Protection
Life Protection Sustainable and Resilient Growth Model Fuelled by Multidistribution Channel Structure and Diversified Product Portfolio GWP (mTL) Technical Profit (mTL, %)* CAGR: +49% 85% 1.957 CAGR: +50% 765 71% 1.536 1.257 608 473 896 829 355 281 480 214 393 151 2017 2018 2019 2020 2021 H1 2021 H1
Slide 14: Market Consistent Embedded Value Disclosures
Market Consistent Embedded Value Disclosures Şirkete Özel (Internal)
Slide 15: MCEV (mTL)
MCEV (mTL) Proven track record Value Driven Year-on-Year Growth 4.761 4,761 49% 17% CAGR 3,205 2.227,1 63% Life & PA 3.205 49% Life & PA 1.121,5 13,9 2.292 2.035 11,0 1.882 1.092,9 37% Pension 1.662 51% Pension 1.034,5 1.475 158,4 1.2041.248 955 145,2 682 740 1.203,2 570 893,0 441 460 474 FY 2021 HY
Slide 16: Diversified business model supporting value growth
Diversified business model supporting value growth Pension Life Protection Personal Accident Total 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 177 % 82 % 25 % 142 % PVNBP (m TL) 1,971 5,455 1,071 1,947 35 44 3,077 7,446 129 % 50 % -50 % 53 % VNB (m TL) 14 31 188 282 4 2 206 315 1
Slide 17: Disclaimer
Disclaimer The information in this presentation has been prepared by AgeSA Hayat ve Emeklilik A.Ş. (the “Company” or “AgeSA”) solely for use at a presentation concerning the Company, its proposed listing on the Borsa İstanbul and the proposed offering (the “Offering”) of ordinary shares of the Compa
Slide 18: Thank you
Thank you (AcE)
Slide 19: Appendix
Appendix
Slide 20: Protection Premium Production to Expand
Protection Premium Production to Expand Life Protection + Personal Accident H1 2021 / H1 2020 YoY Total Premium Growth Rate DSF+Agency * Non-Credit Linked 90% 515 mTL (33%) Bancassurance 115% 417 mTL (26%) Non-Credit Linked 64% 647 mTL (41%) Bancassurance Credit Linked 83% 1579 mTL (Total Company) (
Slide 21: Solid Sales Culture through a Multidistribution Platform
Solid Sales Culture through a Multidistribution Platform to Expand Scale and Penetration in Pension and Life Exclusive 15-year Fastest growing distribution Bancassurance Agencies distribution agreement # Branches Akbank: ~ 800 # Agencies: ~ 300 channel Akbank sales coaches: ~ 320 Total PVNBP: 1.056m
Slide 22: Summary of P&L from SFRS Reporting
Summary of P&L from SFRS Reporting 2017 2018 2019 2020 2021 CAGR H1 2021 H1 2022 YoY Q1 2022 Q2 2022 QoQ Pension Technical Profit 250 303 321 383 450 16% 213 332 55% 171 161 -5% Life Technical Profit 211 277 378 574 904 44% 400 584 46% 287 297 3% Non-Life Technical Profit 51 62 69 70 62 5% 30 29 -5%
Slide 23: Reconciliation between Management & Statutory Profit
Reconciliation between Management & Statutory Profit Management Reporting vs. Statutory Profit for the Period (mTL)* Profit for the Period Reconciliation (mTL)* 102% 2017 2018 2019 2020 2021 CAGR H1 2021 H1 2022 YoY CAGR: 37% 541 521 Management Reporting 153 214 258 350 541 37% 258 521 102% Profit f
Slide 24: Capital-Light Business Model & Strong Solvency Position
Capital-Light Business Model & Strong Solvency Position Comfortable solvency ratios driven by a measured approach to risk and new product introductions, which affords the business scope and flexibility pursuing growth options and / or returning cash to shareholders Regulatory Capital Requirement Sol
Slide 25: Personal Accident
Personal Accident A Complementary Profit Pool for the Group GWP (mTL) Technical Profit (mTL) CAGR: -6% CAGR: +6% 35 35 82 31 75 69 28 66 37% 24 -9% 54 37 15 13 27 2017 2018 2019 2020 2021 H1 2021 H1 2022 2017 2018 2019 2020 2021 H1 2021 H1 2022 Market Share % (in terms of GWP) Claims & Commission Ra
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