Anadolu Hayat Emeklilik A.s. · BIST:ANHYT
Anadolu Hayat Emeklilik A.s — Investor Presentation (December 2022)
44 slides from Anadolu Hayat Emeklilik A.s's investor presentation, December 2022
Slide 1: Investor Presentation
Investor Presentation Istanbul, Turkey – December 2022
Slide 2: Agenda
Agenda 1. Turkey at a Glance 2. Our Markets • Private Pension System • Life Insurance 3. Corporate Profile 4. Financial Results 2
Slide 3: Turkey at a Glance
Turkey at a Glance r
Slide 4: Growing Economy / Urgent Need to Increase Domestic Savings
Turkey at a Glance Growing Economy / Urgent Need to Increase Domestic Savings GDP Average Annual Growth* 6% 5% 4% 3% 2% 1% 0% 1990-1999 2000-2009 2010-2021 Turkey OECD Euro-19 Domestic Saving Rate (% of GDP)** Weight of Pension Funds in Household Savings (TRY billion)*** 34% 6.000 7% 32% 5.500 5.000
Slide 5: Demographic Opportunity Window
Turkey at a Glance Demographic Opportunity Window 2022 2080 Population by Age 10,0% Population (millions) : 85.3 107.1 8,0% 6,0% Median Age : 33.5 45.0 4,0% 2,0% Fertility : 1.70* 1.65** 0,0% Proportion of Elderly Population : 9.9% 25.6% 2022 2080 2022 November Decreasing fertility and increasing lo
Slide 6: Our Markets
Our Markets Private Pension System Life Insurance
Slide 7: Private Pension System: Positioned in Pillar III
Our Markets Private Pension System: Positioned in Pillar III Three-Pillar System Pillar I Pillar II Pillar III State Pension Occupational Private Pension Mandatory Pension Voluntary Securing a minimum Workplace Pensions Opportunity to standard of living with Auto Enrolment increase retirement starte
Slide 8: Pillar III Private Pension System: Important Features
Our Markets Pillar III Private Pension System: Important Features Funds are managed by Started in 2003. asset management 15 companies in 2022 companies. Defined contribution and Minimum retirement age: 56 voluntary participation. Completion of 10 years. Participants can switch funds, Incentives for
Slide 9: Pillar III Private Pension System: Well Designed Structure
Our Markets Pillar III Private Pension System: Well Designed Structure Regulation Administration Monitoring ✓ Capital Markets ✓ Pension ✓ Pension Board (SPK) Accounts Monitoring Center Administered by (EGM) ✓ Ministry of Treasury Pension and Finance Companies ✓ ISE Settlement and Custody ✓ Ministry
Slide 10: Pillar III Private Pension System: Incentives
Our Markets Pillar III Private Pension System: Incentives For Participants For Employers Contribution Stage Investment Stage Income Tax Benefits Employer contributions are • Contributions with a cap of • Investment income of deductible from tax base up to • Withholding tax applies annual legal minim
Slide 11: Pillar III Private Pension System: Charging Structure
Our Markets Pillar III Private Pension System: Charging Structure Management Fee / Entrance Fee Fund Management Fee First 5 years of the contracts No change in fund management fee levels. A new rebate structure came into force in 2021. Maximum limit: 8.5% of the Fund Management Fees (Annual) monthly
Slide 12: Pillar III: Growth Accelerated with Increased Government Support
Our Markets Pillar III Private Pension System: Growth Accelerated with Increased Government Support • 30% State Contribution Under Discussion • Withholding tax limited to capital gains • Integration of Employee Termination • Fee Structure Efficiency Benefits (Severence Payments) with Implemented • A
Slide 13: Pillar III Private Pension System: Big Growth Potential
Our Markets Pillar III Private Pension System: Big Growth Potential Pension Funds as a Percentage of GDP 0% 25% 50% 75% 100% 125% 150% 175% 200% 225% 250% Iceland Pension Participants Social Security Participants Denmark 7.8 Million Holland 26.2 Million USA Canada Australia Switzerland United Kingdo
Slide 14: Pillar III Private Pension System: Key Highlights
Our Markets Pillar III Private Pension System: Key Highlights Total Amount of Contributions Distribution of Contributions Key Figures by Contract Type by Marketing Channel Participants : 7.80 Million Individual Participant Funds : TRY 351.40 Billion 81% State Contribution Funds : TRY 48.66 Billion O
Slide 15: Private Pension System: Pension Funds
Our Markets Private Pension System: Pension Funds* International Securities Nominal & Real Investment Return of Pension Funds 3.98% Repo and 81% Money Market Instruments 1.94% Government 43% Equity 22.57% Bonds 27% 28% 24% 23%16% 48.66% 20% 11% 18%9% 18% 13% 15% 15% 13% 14%12% 11% 1… 10% 3% 11% 6% 1
Slide 16: Auto Enrolment: Basic Features
Our Markets Auto Enrolment: Basic Features* Automatic Minimum State contribution: enrolment of contribution • 30% on contributions current and new amount • 1,000 TRY initial bonus • 5% of assets at employees set as annuity phase %3 of monthly wage Structural changes Gradual Simplified and implementa
Slide 17: Auto Enrolment System: Incentives
Our Markets Auto Enrolment System: Incentives For Participants Contribution Stage Investment Stage Retirement Stage • Additional state contribution equal to 5% of • Contributions with a cap of annual legal • Investment income of auto enrolment funds savings at retirement date is provided in minimum
Slide 18: Auto Enrolment System: Charging Structure
Our Markets Auto Enrolment System: Charging Structure Management Fee / Entrance Fee Fund Management Fee No management or entrance fee. Fund management fee level is capped. According to the Law enacted in Annual Fund Management Fee is August 2016, no management or capped at a maximum of 0.85%. entran
Slide 19: Auto Enrolment - New Target Market
Our Markets Auto Enrolment - New Target Market WORKFORCE* Social Security Participants (4a&4c) : 23.0 Million Social Security Participants: 26.2 Million Employed : 31.9 Million Work Force : 35.4 Million * Social Security Institution November 2022, Turkish Statistics Institute November 2022 19
Slide 20: Life Insurance: Underpenetrated Market
Our Markets Life Insurance: Underpenetrated Market Life insurance market has great potentials in Turkey. Turkey’s life insurance market is extremely Insurance Premium per Capita (USD) underpenetrated as life premiums’ weight in GDP is only Global Comparison (2020) 1/20 of OECD average. Low penetrati
Slide 21: Life Insurance
Our Markets Life Insurance Life Insurance Total GWP Life Insurance GWP (TRY million) (by Product Category) YoY (TOTAL) : 73% YOY 73% 30,175 22.000,00 Term Life : 61% 21.000,00 Endowment/Saving : 111% Annuity : 403% 20.000,00 17,396 19.000,00 18.000,00 17.000,00 14,293 YOY 73% 16.000,00 15.000,00 14.
Slide 22: Corporate Profile
Anadolu Hayat Emeklilik Corporate Profile 22
Slide 23: At a Glance
Anadolu Hayat Emeklilik At a Glance ❖ Established in 1990 as a subsidiary of İşbank SECTOR’S SECTOR’S LEADER* LEADER** ❖ First life insurance company in Turkey Life and Private Private Pension Pension Funds Contracts TRY 80.1 Billion 2.89 Million ❖ The first publicly traded Life & Pension Company si
Slide 24: At a Glance
Anadolu Hayat Emeklilik At a Glance Headquartered in Istanbul Customer Service Center in İstanbul I Organization 12 District Sales Offices Branch Office in TRNC HQ and Regions : 581 Human II Resources Direct Sales Team : 472 Total : 1,053 Total Assets : TRY 90,582 Million Shareholders’ Equity : TRY
Slide 25: Financial Highlights
Anadolu Hayat Emeklilik Financial Highlights (TRY Million) 2020 2021 2022 Change Total GWP and Net Contributions 4,681.2 4,356.5 9,402.7 116% Life Mathematical Provisions 3,185.6 5,252.4 8,870.7 69% Pension AUM 30,434.8 43,127.8 75,622.9 75% Total Assets 36,067.1 51,464.7 90,581.6 76% Shareholders E
Slide 26: Lines of Business
Anadolu Hayat Emeklilik Lines of Business Lines of Business Pension Funds Conservative Balanced Dynamic Aggressive Non- Employer Income Private Individual Sponsored Sponsored Drawdown Pension Plans Group Group Plans • Money Market • Bond • First Debt • Equity Fund Plans Plans • Instruments • Conserv
Slide 27: Distribution Network
Anadolu Hayat Emeklilik Distribution Network 26 District Sales Offices 326 Agencies 1.140 Branches 539 Licensed Private Pensions New Business 2.685 Licensed Intermediaries Intermediaries Channel Mix (Contributions) – 2022 141 Licensed Tele-Sales Agents Tele Sales 3,9% İşbank İşbank Agency 16,9% (Bra
Slide 28: Corporate Strategy
Anadolu Hayat Emeklilik Corporate Strategy Become the market leader among private pension and life insurance companies Finance Become both the Optimize operational Optimize ROE and risk private pension and life profitability and portfolio insurance market leader efficiency Optimize customer and prod
Slide 29: Perfect Customer Experience / Strong Infrastructure
Anadolu Hayat Emeklilik Perfect Customer Experience / Strong Infrastructure Financial Systems Integrated BI and Transformation Reporting Platform (GL / FAH) (Atlas) Operational Hardware Architecture Excellence Transformation (Exadata) Commission and Intermediary Insurance Applications Campaigns Rule
Slide 30: Awards
Anadolu Hayat Emeklilik Awards Smart-i Awards 2022 The International Business Aw Best Business Awards 2022 BrandFinance Turkey 100-2022 TIDE Awareness Awards ICERTIAS We received the Golden ards We were deemed worthy of We have been listed in the BrandFinance We received the Quality Assurance Superi
Slide 31: Awards
Anadolu Hayat Emeklilik Awards Crystal Apple 2022 Marcom Awards 2022 Capital Magazine- Turkey's Most Admired Felis Awards We received one Grand Prize, two Crystal A We received the Golden Award with our mo Companies Survey We were deemed worthy the Golden Felis and pples and two Silver Awards, a tot
Slide 32: Sustainability
Sustainability Effective governance structure in sustainability activities… Senior level commitment in sustainability management... 32
Slide 33: Sustainability
Sustainability LEED Gold certificate to our Customer Corporate Social Responsibility International Memberships Service Center • Our Customer Service Center is entitled a • Since 2007, we have been organizing • The first and only UNEP-FI member of "LEED Gold" certificate given to the photo contest "S
Slide 34: Sustainability
Sustainability International Green Energy Certificate Sustainability Report Compliant with Anadolu Hayat Emeklilik enters BIST in Our Offices GRI Standards Sustainability Index • We published our 2022 Sustainability • We continue to be in the index, which • Starting from 2021, we use renewable Repor
Slide 35: Strong Market Positioning in Private Pensions
Anadolu Hayat Emeklilik Strong Market Positioning in Private Pensions Participants (Pillar III) Assets Under Management (Pillar III) (TRY million) 17% 16% 16% 19% 19% 18% 18% 18% 16% 16% Market Share Market Share YOY 14% CAGR 0% 80.000,00 71.800 1.320.000,00 1.291.558 YOY 73% 1.315.000,00 1.310.000,
Slide 36: Strong Market Positioning in Private Pensions
Anadolu Hayat Emeklilik Strong Market Positioning in Private Pensions Participants (Auto Enrolment) Assets Under Management (Auto Enrolment) (TRY million) 13% 13% 13% 14% 14% 11% 10% 10% 11% 11% YOY 14% Market Share Market Share 4.500,00 YOY 118% 3.865 1.192.107 4.000,00 1.200.000,00 CAGR 18% 1.042.
Slide 37: Strong Market Positioning in Life Insurance
Anadolu Hayat Emeklilik Strong Market Positioning in Life Insurance Life Insurance GWP (TRY million) Term Life GWP (TRY million) 10% 12% 10% 11% 11% 7% 10% 9% 8% 9% Market Share 2.500,00 Market Share 4.000,00 YOY 79% CAGR 79% 3.520,9 3.500,00 2.000,00 1.928,0 3.000,00 CAGR 34% CAGR 41% 1.500,00 2.50
Slide 38: Statutory Financials
Anadolu Hayat Emeklilik Statutory Financials Life Technical Profit (TRY million) Pension Technical Profit (TRY million) 250,00 YOY 38% YOY - 27% 500,00 CAGR 24% 450,00 429.6 200,00 193.0 400,00 327.6 350,00 310.2 145.5 141.4 300,00 264.1 150,00 250,00 100,00 87.6 91.0 200,00 151.1 150,00 50,00 100,0
Slide 39: Statutory Financials
Anadolu Hayat Emeklilik Statutory Financials Net Distributable Profit / Dividend to Shareholders (TRY Million) Dividend Payout Ratio (%) 800 686 700 81 600 77 510 71 500 440 64 400 346 360 51 300 255 280 221 170 130 200 100 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Cash Dividend / Net Dist
Slide 40: Statutory Financials
Anadolu Hayat Emeklilik Statutory Financials Technical Profit / Operating Expenses (TRY Million) Operating Expenses – 2022 1.800,00 YOY 92% 1,551.7 1.600,00 Commission 1.400,00 Expenses 53% 1.200,00 YOY 13% 1.000,00 806.2 800,00 690.7 Administration 573.3 565.2 Expenses 501.1 16% 600,00 440.1 472.2
Slide 41: Summary of Income Statement
Anadolu Hayat Emeklilik Statutory Financials Summary of Income Statement (mio TRY) 2018 2019 2020 2021 CAGR 2022 YOY Non-Life Technical Profit / Loss -1.08 -1.03 -0.93 -1.85 14% -5.82 - Life Technical Profit / Loss 151.10 264.08 327.61 310.22 20% 429.61 38% Pension Technical Profit / Loss 87.56 90.6
Slide 42: Pension Technical Profit
Anadolu Hayat Emeklilik Statutory Financials Pension Technical Profit (mio TRY) 2018 2019 2020 2021 CAGR 2022 YOY Pension Technical Income 369.19 427.72 506.28 617.53 14% 980.63 59% 1- Fund Management Income 256.42 304.26 368.73 449.91 15% 726.86 62% 2- Management Fee 46.36 58.86 76.88 106.22 23% 17
Slide 43: Life Technical Profit
Anadolu Hayat Emeklilik Statutory Financials Life Technical Profit (mio TRY) 2018 2019 2020 2021 CAGR 2022 YOY Life Technical Income 1,004.27 1,493.82 2,179.29 3,890.02 40% 5,766.66 48% 1- Earned Premiums (Net of Reinsurer Share) 625.55 1,193.74 1,665.37 1,909.07 32% 3,188.25 67% 2- Investment Incom
Slide 44: www.anadoluhayat.com.tr
www.anadoluhayat.com.tr investorrelations@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. cannot guarantee the accuracy, completeness or correctness of such i
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