Aksigorta AS · BIST:AKGRT

Aksigorta AS — Q1 2020 Earnings Presentation

22 slides from Aksigorta AS's earnings presentation, Apr 30, 2020

  1. Slide 1: Aksigorta Earnings Call Presentation – 20'Q1

    AKSigorta Earnings Call Presentation – 20’Q1 30/04/2020 Presented by AKSigorta IR Team

  2. Slide 2: Agenda

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. 2020 Guidance 4. Appendix

  3. Slide 3: 2020 Q1 – Aksigorta Scorecard

    2020 Q1 – Aksigorta Scorecard 1Q20 Financial Indicators (M TL) (YoY %) 17% 14% 24% 1.234 89 726 Gross Written Net Income Total Equity Premiums 1Q20 Operational Ratios (YoY pp) -7 pp -8 pp 14 pp 69% 94% 58% Net Combined Net Loss Ratio RoE Ratio Dividend Payment Out of 2019 Net Profit (Mn TL) 202 55%

  4. Slide 4: Non-Life Insurance Market has 15B TL GWP in Q1

    Market GWP (M TL) Non-Life Insurance Market has 15B TL GWP in Q1 with ~17% YoY growth 19% 23% 23% 17% 17% 19Q2 19Q3 19Q4 20Q1 20'YtD 10.263 12.251 9.173 11.246 12.506 15.402 13.061 15.230 13.061 15.230 Health Non-Motor 13% 15% 15% 25% MOD 14% 12% 13% 14% MTPL 12% 11% 38% 43% 16% 10% 43% 39% 43% 37%

  5. Slide 5: Aksigorta GWP: Motor GWP YoY growth is 30%+ in 20Q1

    Aksigorta GWP (M TL) Aksigorta Motor GWP YoY growth is 30%+ in 20Q1 47% 26% 39% 16% 16% 19Q2 19Q3 19Q4 20Q1 20'YtD 719 1.053 750 943 945 1.318 1.015 1.174 1.015 1.174 Health Non-Motor 8% 9% MOD 6% 13% MTPL 13% 22% 36% 13% 13% 39% 5% 7% 9% 31% 38% 38% -4% 38% 34% 39% 45% 45% 20% 26% 23% 26% 21% 21% 3

  6. Slide 6: Aksigorta UWR by LoBs

    Aksigorta UWR by LoBs (M TL) UWR more than doubled up in 1Q20 thanks to MOD & MTPL performance 57% 95% 1535% 142% 142% 19Q2 19Q3 19Q4 20Q1 20'YtD 45 70 34 66 -5 76 40 98 40 98 Health Non-Motor 14 14 MOD 12 21 21 MTPL 8 13 17 34 39 39 9 11 28 8 8 28 10 29 22 23 23 13 30 21 25 25 17 12 10 11 11 4 3 1

  7. Slide 7: We keep combined ratio well below 100%

    We keep combined ratio well below 100% Combined Ratio Loss Ratio Commission Ratio Expense Ratio 19Q2 19Q3 19Q4 20Q1 20'YtD 101% 102% 102% 99% 97% 12% 97% 96% 94% 8% 10% 94% 10% 8% 9% 13% 10% 9% 9% 9% 16% 16% 16% 16% 16% 16% 15% 16% 16% 86% 74% 77% 73% 76% 76% 71% 72% 69% 69% 18Q2 19Q2 18Q3 19Q3 18Q4

  8. Slide 8: AuM stayed flat at 2,6Bn despite 202m dividend

    As of Mar’20, AuM stayed flat at 2,6Bn level despite of 202m dividend Dec.19 Mar.20 Time deposit 6% 6% Corporate bond 6% Eurobond 14% Government bond 7% Equity 7% 48% 16% 66% 25% 2.610 m TL AuM 2.580 m TL 19% Annualized average yield* 13% 120 m TL Quarterly financial income** 87 m TL (*): Yield figu

  9. Slide 9: 14% net income growth in 1Q20 driven by CoR improvement

    14% net income growth in 1Q20 driven by 8pp YoY improvement in CoR 20Q1/ Profit & Loss 19Q1 19Q2 19Q3 19Q4 20Q1 19Q1 Gross Written Premiums 1.058 1.084 975 1.356 1.234 17% Net Earned Premiums 489 518 559 601 638 30% Underwriting Result 40 70 66 76 98 142% Expenses -54 -51 -52 -57 -57 -4% Financial I

  10. Slide 10: Proven Track of Strong Financial Results, RoE 40%+

    Proven Track of Strong Financial Results, RoE 40%+ Balance Sheet 20Q1/ 20Q1/ 19Q1 19Q2 19Q3 19Q4 20Q1 (M TL) 19Q4 19Q1 Receivables 1.280 1.388 1.281 1.543 1.522 -1% 19% AUM 2.040 2.201 2.450 2.610 2.580 -1% 26% Total Assets 3.687 3.978 4.099 4.601 4.562 -1% 24% Reserves 2.074 2.240 2.390 2.612 2.719

  11. Slide 11: TFRS vs IFRS: Discounting of O/S claims is the major difference

    TFRS vs IFRS: Discounting of O/S claims is the major difference between two ledgers Equity Net Income (1Q20 FY) (31.03.2020) Million TL P&L Adjust TFRS Result 726 89 Equalization Reserve 93 -3 Unexpired Risk Reserve 16 2 Unallocated Loss Adjustment Expenses -18 2 Discounting of outstanding claims -2

  12. Slide 12: Agenda

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. 2020 Guidance 4. Appendix

  13. Slide 13: Risks & Opportunities

    Risks & Opportunities Risks Opportunities ▪ Covid-19 related risks: ▪ Covid-19 related opportunities: ➢ Covid-19 impact to continue in 2H – Risk on 2021 Profit ➢ Record low claim frequency levels – improved UWM ➢ Health claims – Covid-19 coverage ➢ Home office – could be a new approach after Covid-1

  14. Slide 14: Impact of Covid-19

    Impact of Covid-19 ▪ The Covid-19 is a systematic risk that is unavoidable ▪ Cash flows: Due to slowing down in mobility, trade and economic activities we foresee that the cash flows will be the biggest challenge in the coming periods. We don’t see any risk in our business since: ▪ 62% of our receiv

  15. Slide 15: Agenda

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. 2020 Guidance 4. Appendix

  16. Slide 16: 2020 Year-End Guidance

    2020 Year-End Guidance Despite Covid-19 we maintain our year-end guidance 15%-25% growth in GWP 0-10% growth in Net Profit 16

  17. Slide 17: Our Long Term Ambitions

    Our Long Term Ambitions 1B $ 10% Market Cap Market Share 95% 30%+ Net Combined RoE Ratio 17

  18. Slide 18: Agenda

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. 2020 Guidance 4. Appendix

  19. Slide 19: Summary Financial Statements in IFRS

    Summary Financial Statements in IFRS 20Q1/ Profit & Loss 19Q1 19Q2 19Q3 19Q4 20Q1 19Q1 Gross Written Premiums 1.058 1.084 975 1.356 1.234 17% Net Earned Premiums 489 518 559 601 638 30% Underwriting Result 33 42 46 59 75 130% Expenses -54 -51 -52 -57 -57 -4% Financial Income 122 109 110 115 81 -33%

  20. Slide 20: Proven Track of Strong Financial Results, RoE 40%+

    Proven Track of Strong Financial Results, RoE 40%+ Balance Sheet 20Q1/ 20Q1/ 19Q1 19Q2 19Q3 19Q4 20Q1 (M TL) 19Q4 19Q1 Receivables 1.278 1.388 1.281 1.543 1.522 -1% 19% AUM 2.040 2.201 2.450 2.610 2.580 -1% 26% Total Assets 3.706 4.004 4.128 4.635 4.601 -1% 24% Reserves 2.171 2.365 2.535 2.774 2.904

  21. Slide 21: Technical Result Bridge btw TFRS & Management Reporting

    Technical Result Bridge btw TFRS & Management Reporting Re-classifications UW Result in Technical Result Management in TFRS 1 2 3 4 5 6 7 Reporting Net Earned Premiums 656 -3 -15 638 Claims, net * -432 12 -9 -10 -440 Other Technical Inc and Exp -15 3 15 -12 8 Commissions, net -100 -100 General Expen

  22. Slide 22: THANKS

    THANKS Presented by AKSigorta Investor Relations Team, April 2020 For further questions: MAIL investor.relations@aksigorta.com.tr WEB https://www.aksigorta.com.tr/en/investor-relations PDP https://www.kap.org.tr/en/sirket-bilgileri/ozet/841-aksigorta-a-s

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