Anadolu Hayat Emeklilik A.s. · BIST:ANHYT
Anadolu Hayat Emeklilik A.s — Investor Presentation (December 2012)
46 slides from Anadolu Hayat Emeklilik A.s's investor presentation, December 2012
Slide 1: Anadolu Hayat Emeklilik Company Presentation
ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION December 2012
Slide 2: Contents
Contents Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 2
Slide 3: Turkish Economy 2011
Turkish Economy 2011 Population (End of 2011 ) 74.724.269 Urban Population (%) 76,8 Civil Employment (Age15+) 23.678.000 Unemployment Rate (%) 9,8 Gross Domestic Product-Current Prices (TL billion) 1.295 Gross Domestic Product (USD billion) 772 GDP Growth Rate (%) 8,50 GDP per Capita - Current Price
Slide 4: Corporate Profile
Anadolu Hayat Emeklilik Corporate Profile Established in 1990 as a subsidiary of Türkiye İş Bankası First life insurance company in Turkey The only Life & Pension company publicly traded since 2000 Has been operating in pension business since 27.10.2003 Market leader in life insurance and private pe
Slide 5: Ownership Structure
Anadolu Hayat Emeklilik Ownership Structure 5
Slide 6: Insurance Sector in Turkey
INSURANCE SECTOR IN TURKEY Total Number of Companies - 31.12.2011 Insurance Companies 59 - Non-Life 35 - Life 7 - Life & Pension 16 Reinsurance Companies 1 Source: AIT 6
Slide 7: Insurance Sector in Turkey: Premium Productions
INSURANCE SECTOR IN TURKEY Premium Productions 2011 Total Premium Per Capita (USD) 138 Non-Life Premium Per Capita (USD) 116 Life Premium Per Capita (USD) 22 Total Premium Production (Billion USD) 10,3 Total Premium Production / GDP 1,3% Source: Treasury & AIT 7
Slide 8: Private Pension System in Turkey
PRIVATE PENSION SYSTEM IN TURKEY Contributions as of 31.12.2011 Total Pension Fund System Contributions Per Capita (USD) 99 Total Pension Fund System Contributions (Billion USD) 7,5 Total Pension Fund System Contributions / GDP 1% Source: Treasury & Pension Monitoring Center 8
Slide 9: Growth Strategy
Anadolu Hayat Emeklilik Growth Strategy Distribution Channel Strategy • Focus on Bancassurance • Expanding Direct Sales Team • Improve agency profile Improve Customer Service Quality Improve HR quality Focus on Corporate Pension Business 9
Slide 10: Lines of Business - Life & Pensions
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 10
Slide 11: Lines of Business
Anadolu Hayat Emeklilik Lines of Business Private Pension Life Insurance Endowment / Permanent Life Individual Term Life Corporate Annuities Unemployment Critical illness 11
Slide 12: Private Pension System in Turkey: Basic Features
PRIVATE PENSION SYSTEM IN TURKEY Basic Features Started on 27.10.2003 17 Licensed pension companies Third pillar system Defined contribution Voluntary participation Incentives for both participant & employer Fully funded system Minimum 10 years of contribution payment Minimum retir
Slide 13: Private Pension System: Tax Incentives – Former Regulation
PRIVATE PENSION SYSTEM IN TURKEY Tax Incentives – Former Regulation Contribution Stage Investment Stage Benefit payments • Contributions are tax • Investment income of • %25 of retirement deductible up to %10 pension funds are tax payments are exempt of income with a cap of exempt. from income tax.
Slide 14: Private Pension System: New Regulation – What Is New?
PRIVATE PENSION SYSTEM IN TURKEY New Regulation – What Is New? 1. Totally different tax advantage structure for the participants (enforcement date: 01.01.2013): An additional pension account will be opened in the name of each participant, called ‘Government Contribution Sub-account’. Government wi
Slide 15: Private Pension System In Turkey
Private Pension System In Turkey 15
Slide 16: Distribution Network
Anadolu Hayat Emeklilik Distribution Network Total of Bancassurance 1249 Branches 339 Branches 136 Branches 5 Banks & 1814 Branches 87 Branches 3 Branches Direct Sales 322 Licensed Salesperson Agents & 247 Exclusive Agencies Brokers 58 Brokers Internet Other Call Centre 16
Slide 17: Pension Production By Channel
Anadolu Hayat Emeklilik Pension Production By Channel 2010 2011 2012 2012 Direct to Customer 12% 10% 9% Broker 2% 2% 1% Agency 10% 13% 12% BANCASSURANCE 76% 75% 78% Is Bank 4% 3% 2% Is Bank + Direct Sales 41% 42% 50% Is Bank + Agency 14% 13% 12% HSBC 16% 15% 12% TEB + Agency 2% - - Anadolubank - 1%
Slide 18: Key Drivers For Growth In Pension Business
Key Drivers For Growth In Pension Business • Structural reforms Economic • Extended maturities Improvements • Purchasing power in Turkey • Lack of confidence in the social security system Advantages of • Incentives • Transparent system Pension • Participating to the investment process System • Mobil
Slide 19: Key Drivers For Our Market Leadership
Key Drivers For Our Market Leadership Distribution network Diversified products Fund performance Charging structure Service quality 19
Slide 20: Number Of Participants
Private Pension System In Turkey Overview as of 31.12.2012 25.000 3.500.000 Number Of Participants 3.000.000 Fund Size (TL mio) 20.000 2.500.000 15.000 2.000.000 1.500.000 10.000 1.000.000 5.000 500.000 - 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Funds (TL mio) Number Of Participants 20
Slide 21: Pension System Outlook
Pension System Outlook 2009 % 2010 % 2011 % 2012 % 31.12.08 Change 31.12.09 Change 31.12.10 Change 31.12.11 Change 31.12.12 Fund Size (Million TL) AHE 1.323 48% 1.953 34% 2.620 16% 3.031 41% 4.278 Sector 6.384 43% 9.106 32% 12.017 19% 14.341 42% 20.357 Market Share 20,7% 21,5% 21,8% 21,1% 21,0% Numb
Slide 22: Market Share in Total Fund Size
Private Pension System In Turkey Overview as of 31.12.2012 Market Share in Total Fund Size XXX Other 12 6,2% 19,4% AHE 21,0% XXX 17,1% XXX 16,3% XXX 19,9% 22
Slide 23: Lapse Ratio: Sector Average
Private Pension System In Turkey Lapse Ratio: Sector Average vs. Anadolu Hayat Emeklilik 12.01.2004 - 31.12.2012, Weekly Data Source: Pension Monitoring Center 23
Slide 24: AHE Pension Products Fund Menu
AHE Pension Products Fund Menu As of 31.12.2012 Conservative Balanced Aggressive International Mixed Fund Cash Fund Equity Fund Eurobond $/€ Fund Conservative Fund Agressive Fund Alternative Balanced F. Bond Fund Balanced Fund BRIC Fund 53 % 28 % 19 % 24
Slide 25: Pension Funds & Mutual Funds
Pension Funds & Mutual Funds Money T-Bills & Market Foreign T.Deposits Fund Average Net Asset Value G. Bonds Reverse Inst. Currency & Type Maturity (mio TL) Equity (%) (%) Repo (%) (%) Sec.(%) Other (%) PRIVATE PENSION FUNDS 30.12.2011 554 14.308 12,10 60,77 11,36 0,47 0,85 14,46 02.01.2013 645 20.3
Slide 26: Pension Funds: Net Asset Values
Pension Funds Net Asset Values as of 31.12.2012 26
Slide 27: Pension Funds: Weighted Average Returns
Pension Funds Weighted Average Returns as of 31.12.2012 27
Slide 28: Pension Funds' Weighted Average Return Performance
Anadolu Hayat Emeklilik Pension Funds’ Weighted Average Return Performance Weighted Average Returns (%) % 28
Slide 29: Pension Products: Charging Structure
Pension Products Charging Structure – What Is New ? Entrance Fee Management Fee Fund Management Fee • At the phase of entrance to the • To cover administrative expenses • To cover fund management expenses System for each pension account • On contributions • On NAV of each fund • Can be deferred till
Slide 30: Life Insurance in Turkey: Market Shares
Life Insurance In Turkey Market Shares (Top 7 in Premium Production) * Temporary 30
Slide 31: Life Insurance: Market Shares (Mathematical Reserves)
Life Insurance In Turkey Market Shares (Mathematical Reserves) 2011 2012* % (Mio TL) % (Mio TL) AHE 36% 2.025 36% 1.966 XXX 11% 612 12% 669 XXX 10% 549 9% 507 XXX 8% 463 8% 441 XXX 7% 416 7% 379 XXX 5% 285 6% 313 Others 22% 1202 22% 1215 TOTAL 100% 5.553 100% 5.490 * Temporary 31
Slide 32: Profit Sharing Rates – TL Based Life Products
Anadolu Hayat Emeklilik Profit Sharing Rates – TL Based Life Products 32
Slide 33: Life Portfolio: Total Number of Policies
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2010 - 2012 33
Slide 34: Life Portfolio: Total Premium Production
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2010 - 2012 34
Slide 35: Life Portfolio: New Business Premium Production
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) - 2010 - 2012 35
Slide 36: Life Production By Channel
Anadolu Hayat Emeklilik Life Production By Channel 2012 2010 2011 2012 Agency & Broker 35% 29% 18% Direct to Customer 32% 27% 16% BANCASSURANCE 33% 44% 66% Is Bank 24% 36% 60% Is Bank & Direct Sales & 8% 7% 5% Agency HSBC 1% 1% 1% Total 100% 100% 100% 36
Slide 37: Life Products: Charging Structure
Life Products Charging Structure Agency Commission Management Fee Fund Charge • Paid out to our • To cover • To cover fund distribution administrative management expenses channels expenses • Charged on current • Charged on • Charged on year’s returns premiums premiums • Max. 15% of the • No limits s
Slide 38: Financials
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 38
Slide 39: Financial Highlights & Key Metrics
Anadolu Hayat Emeklilik Financial Highlights & Key Metrics TL Million 2009 2010 2011 2012 Written Premium 500 358 348 367 General Technical Profit 19 27 34 53 Life Technical Profit 7 14 34 33 Private Pension Technical Profit 12 13 0 20 Period Net Profit 79 71 65 80 Private Pension AUM 1.953 2.620 3.
Slide 40: Dividend Payout
Anadolu Hayat Emeklilik Dividend Payout 2009 2010* 2011* 2012* Gross Profit (TL) 97.993.428 88.179.608 76.335.800 109.052.075** Net Profit (TL) 79.284.428 72.744.608 62.920.800 82.952.075 Net Distributable Profit (TL) 75.661.865 69.176.772 59.687.324 78.873.301 Dividend to Shareholders (TL) 55.000.0
Slide 41: Capital Adequacy
Anadolu Hayat Emeklilik Capital Adequacy 31.12.2010 31.12.2011 31.12.2012 (TL) (TL) (TL) Capital required for Non-Life Branch 178.239 186.997 196.369 Capital required for Life Branch 100.852.982 106.373.431 108.496.682 Capital Required for Pension Branch 8.424.900 9.450.175 12.569.576 TOTAL CAPITAL
Slide 42: Income Statement
Anadolu Hayat Emeklilik Income Statement (mio TL) 2011 2012 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,32 0,68 NON-LIFE TECHNICAL EXPENSES -0,33 -0,66 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,01 0,02 LIFE TECHNICAL INCOME 563,17 502,67 LIFE TECHNICAL EXPENSES -528,72 -469,26 II- LIFE TECHNICAL PROFIT
Slide 43: Balance Sheet
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2011 2012 ASSETS I- LIQUID ASSETS 120 142 II- MARKETABLE SECURITIES 2.384 2.682 IIII- RECEIVABLES 3.098 4.350 IV- INVESTMENTS 9 9 V- FIXED ASSETS 24 26 VI- OTHER ASSETS (NET) 13 13 TOTAL ASSETS 5.648 7.222 LIABILITIES AND SHAREHOLDERS’ EQUITY I- PAYABLE
Slide 44: Stock Data
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 44
Slide 45: Stock Data
Anadolu Hayat Emeklilik Stock Data Year MCAP (Million $) 2005 401 2006 458 2007 569 2008 185 2009 740 2010 816 2011 423 2012 709 45
Slide 46: Thank You
THANK YOU… For further information: investorrelations@anadoluhayat.com.tr Website: www.anadoluhayat.com.tr DISCLAIMER: The information in this document has been obtained by Anadolu Hayat Emeklilik A.Ş. from sources believed to be reliable, however, Anadolu Hayat Emeklilik A.Ş. can not guarantee the
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