Anadolu Hayat Emeklilik A.S. · BIST:ANHYT
Anadolu Hayat Emeklilik A.S — Investor Presentation (September 2011)
53 slides from Anadolu Hayat Emeklilik A.S's investor presentation, September 2011
Slide 1: Anadolu Hayat Emeklilik Company Presentation
ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION September 2011
Slide 2: Disclaimer
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 accuracy, completeness or correctness of such information. This document has been issued for information pur
Slide 3: Contents
Contents Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 3
Slide 4: Turkish Economy 2010
Turkish Economy 2010 Population (End of 2010 ) 73.722.988 Urban Population (%) 76,3 Civil Employment (Age15+) 22.594.000 Unemployment Rate (%) 11,9 Gross Domestic Product-Current Prices (TL billion) 1.105 Gross Domestic Product (USD billion) 735 GDP Growth Rate (%) 8,9 GDP per Capita - Current Price
Slide 5: 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 6: Ownership Structure
Anadolu Hayat Emeklilik Ownership Structure 6
Slide 7: Insurance Sector in Turkey
INSURANCE SECTOR IN TURKEY Total Number of Companies - 30.09.2011 Insurance Companies 61 - Non-Life 36 - Life 8 - Life & Pension 16 Reinsurance Companies 1 Source: Treasury 7
Slide 8: Insurance Sector in Turkey: Premium Productions
INSURANCE SECTOR IN TURKEY Premium Productions 2010 Total Premium Per Capita (USD) 124 Non-Life Premium Per Capita (USD) 101 Life Premium Per Capita (USD) 23 Total Premium Production (Billion USD) 9.1 Total Premium Production / GDP 1.3% Source: Treasury and AIRCT 8
Slide 9: Private Pension System in Turkey
PRIVATE PENSION SYSTEM IN TURKEY Contributions as of 31.12.2010 Total Pension Fund System Contributions Per Capita (USD) 84 Total Pension Fund System Contributions (Billion USD) 6,2 Total Pension Fund System Contributions / GDP 0,9% Source: Treasury 9
Slide 10: 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 10
Slide 11: Contents: Lines of Business
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 11
Slide 12: Lines of Business
Anadolu Hayat Emeklilik Lines of Business Private Pension Life Insurance Endowment / Permanent Life Individual Term Life Corporate Annuities Unemployment Critical illness 12
Slide 13: Private Pension System in Turkey: Basic Features
PRIVATE PENSION SYSTEM IN TURKEY Basic Features Started on 27.10.2003 16 Licensed pension companies Third pillar system Defined contribution Voluntary participation Tax incentives for both participant & employer Fully funded system Minimum 10 years of contribution payment Minimum r
Slide 14: Private Pension System in Turkey: Tax Incentives
PRIVATE PENSION SYSTEM IN TURKEY Tax Incentives 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 annual minimum wage. •
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 1197 Branches 333 Branches 119 Branches 6 Banks & 1744 Branches 87 Branches 5 Branches 3 Branch Direct Sales 326 Licensed Salesperson Agents & 233 Exclusive Agencies Brokers 52 Brokers Internet Other Call Centre 16
Slide 17: Pension Production By Channel
Anadolu Hayat Emeklilik Pension Production By Channel 80% 74% 2009 2010 2011/09 70% 2011/9 Direct to Customer 5% 12% 11% 57% 60% Broker 1% 2% 1% 50% Agency 7% 10% 14% 40% BANCASSURANCE 87% 76% 74% 30% Is Bank 5% 4% 3% 20% 14% 15% Is Bank + Direct Sales 45% 41% 41% 11% 10% Is Bank + Agency 16% 14% 13
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 • Tax incentives • Transparent system Pension • Participating to the investment process System • M
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: Private Pension System in Turkey: Overview
Private Pension System In Turkey Overview as of 30.09.2011 16.000 3.000.000 Number Of Participants 14.000 Fund Size (TL mio) 2.500.000 12.000 2.000.000 10.000 8.000 1.500.000 6.000 1.000.000 4.000 500.000 2.000 - 0 2004 2005 2006 2007 2008 2009 2010 2011/9 Funds (TL mio) Number Of Participants 20
Slide 21: Pension System Outlook
Pension System Outlook 2009 % 2010 % 2011 % 31.12.08 Change 31.12.09 Change 31.12.10 Change 30.09.11 Net Asset Value (mio TL) AHE 1.323 48% 1.954 34% 2.620 15% 3.002 Sector 6.384 43% 9.107 32% 12.017 17% 14.031 Market Share 20,7% 21,5% 21,8% 21,4% Number of Participants (thousand ) AHE 376 16% 438 1
Slide 22: Private Pension System Sectoral Expectations - 1
Private Pension System Sectoral Expectations - 1 Consolidated Expectations of Pension Companies for 2011 Number of New Participants Within the Year 657.292 Total Number of Participants at the Year-end 2.670.267 Net Cumulative Amount of Contributions at the Year-end (TL) 12.415.965.214 Net Cumulative
Slide 23: Private Pension System Sectoral Expectations - 2
Private Pension System Sectoral Expectations - 2 Consolidated Expectations of Pension Companies for 2011 (Year-end) Number of Contracts to be Transferred 181.680 Amount of Transfers (TL) 1.368.059.137 Expected Number of Contracts to Withdraw 1.701.663 Expected Amount of Accumulations to be Withdrawn
Slide 24: Private Pension System In Turkey: Market Share
Private Pension System In Turkey Overview as of 30.09.2011 Number of Participants 700.000 Market Share in Total Fund Size 600.000 500.000 Other 9 400.000 XXX 19,6% 6,0% 300.000 AHE 21,4% 200.000 100.000 XXX 0 16,1% AHE AVİVASA XXX GARANTİ XXX YKE XXX VAKIF XXX Other 9 XXX XXX 20,8% Funds (mio TL) 16
Slide 25: Lapse Ratio: Sector Average vs. AHE
Private Pension System In Turkey Lapse Ratio: Sector Average vs. Anadolu Hayat Emeklilik 25
Slide 26: Pension Products Fund Menu
Pension Products Fund Menu 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 47 % 32 % 21 % 26
Slide 27: Pension Funds & Mutual Funds
Pension Funds & Mutual Funds Average Net Asset T-Bills & Money Foreign T.Deposits Maturity Value Equity Bonds Reverse Market Currency & Other Fund Type (Days) (Mio TL) (%) (%) Repo (%) Inst. (%) Sec. (%) (%) PENSION FUNDS 31.12.2010 354 12.008 12,12 58,08 13,03 0,05 0,14 16,58 30.09.2011 681 14.044
Slide 28: Pension Funds Net Asset Values
Pension Funds Net Asset Values as of 30.09.2011 Net Asset Values (mio TL) 3.500 3.000 2.500 2.000 1.500 1.000 500 0 AHE XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 28
Slide 29: Pension Funds' Weighted Average Return Performance
Anadolu Hayat Emeklilik Pension Funds’ Weighted Average Return Performance Weighted Average Returns (%) 30 27,34 23,3 25 21,01 18,46 20 15 % 11,68 10,19 10,97 11,59 10,24 9,57 10 5 -0,64 1,31 0 2011/9 2010 2009 2008 2007 2006 -5 Anadolu Hayat Emeklilik Sector Average 29
Slide 30: Asset Allocation & Performance of Pension Funds: OECD Comparison
ASSET ALLOCATION & PERFORMANCE OF PENSION FUNDS OECD COMPARISON (Source: Pension Markets in Focus, OECD 2011, i8) 30
Slide 31: Pension Products: Charging Structure
Pension Products Charging Structure Entrance Fee Management Fee Fund Management Fee • At the phase of • To cover administrative • To cover fund entrance to the System expenses management expenses for each pension account • On contributions • On NAV of each fund • Can be deferred till the • Legal upp
Slide 32: Life Insurance In Turkey: Market Shares
Life Insurance In Turkey Market Shares (Top 7 in Premium Production) 30% 28% 27% 25% 22% 19% 19% 20% 16% 15% 11% 10% 9% 10% 8% 7% 7% 6% 5% 5% 5% 4% 4% 5% 2% 0% 0% 0% AHE GROUPAMA XXX AVIVASA XXX GARANTI XXX YKE XXX ALLIANZ XXX ZİRAAT XXX 2008 2009 2010 32
Slide 33: Life Insurance In Turkey: Market Shares (Mathematical Reserves)
Life Insurance In Turkey Market Shares (Mathematical Reserves) 2009 2010 % (Mio TL) % (Mio TL) AHE 39% 1,840 AHE 41% 1,855 XXX 11% 516 XXX 10% 451 XXX 11% 512 XXX 9% 396 XXX 9% 422 XXX 8% 368 XXX 6% 260 XXX 6% 290 XXX 6% 272 XXX 5% 241 Others 18% 858 Others 21% 939 TOTAL 100% 4,680 TOTAL 100% 4,540
Slide 34: Profit Sharing Rates – TL Based Life Products
Anadolu Hayat Emeklilik Profit Sharing Rates – TL Based Life Products Profit Share Rates 140 120 100 80 60 % 40 20 0 -20 -40 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 MEAN PROFIT SHARE(%) 76 62 47 29 23 16 20 17 15 11 31,6 USD(%) 114 14 -15 -4 0 5 -17 30 -0,4 3 12,96 CPI(%) 69 30 18 9 8 10 8
Slide 35: Life Portfolio: Total Number of Policies 2009 vs 2010
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2009 vs 2010 35
Slide 36: Life Portfolio: Total Number of Policies 2010/9 vs 2011/9
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2010/9 vs 2011/9 36
Slide 37: Life Portfolio: Total Premium Production 2009 vs 2010
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2009 vs 2010 37
Slide 38: Life Portfolio: Total Premium Production 2010/9 vs 2011/9
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2010/9 vs 2011/9 38
Slide 39: Life Portfolio: Premium Production – New Business
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) 39
Slide 40: Life Production By Channel
Anadolu Hayat Emeklilik Life Production By Channel 43% 45% 42% 2011/09 2009 2010 2011 / 09 40% 35% 30% Agency & Broker 34% 35% 30% 27% 30% 25% Direct to Customer 36% 32% 27% 20% 15% BANCASSURANCE 30% 33% 43% 10% Is Bank 15% 24% 35% 5% 1% 0% Is Bank & Direct Sales & 14% 8% 7% Agency HSBC 1% 1% 1% Tot
Slide 41: 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 42: Contents: Financials
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 42
Slide 43: Financial Highlights
Anadolu Hayat Emeklilik Financial Highlights Mio TL 2009 2010 Written Premium 500 357 General Technical Profit 19 27 Total Assets 4.480 5.299 Paid-In Capital 250 250 Shareholders’ Equity 430 451 Math.& Profit Sharing Provisions 1.976 2.091 Total Fund Size (Private Pension) 1.953 2.620 Net Profit 79
Slide 44: Financial Highlights (Interim)
Anadolu Hayat Emeklilik Financial Highlights Mio TL 2010 / 09 2011 / 09 Written Premium 267 264 General Technical Profit 23 25 Total Assets 4.999 5.648 Paid-In Capital 250 300 Shareholders’ Equity 434 433 Math.& Profit Sharing Provisions 1.988 2.062 Total Fund Size (Private Pension) 2.450 3.003 Net
Slide 45: Dividend Payout
Anadolu Hayat Emeklilik Dividend Payout 2007 2008 2009 2010 Net Profit (TL) 45.481.212 52.905.238 79.284.428 72.744.608 Net Distributable Profit (TL) 43.472.277 50.211.779 75.661.865 69.176.772 Dividend to Shareholders (TL) 35.000.000 42.000.000 55.000.000 40.000.000 - Cash 15.000.000 42.000.000 55.
Slide 46: Capital Adequacy
Anadolu Hayat Emeklilik Capital Adequacy 31.12.2008 31.12.2009 31.12.2010 (TL) (TL) (TL) Capital required for Non-Life Branch 37.191 28.753 178.239 Capital required for Life Branch 78.870.306 96.160.222 100.852.982 Capital Required for Pension Branch 5.181.501 6.757.190 8.424.900 TOTAL CAPITAL REQUI
Slide 47: Income Statement
Anadolu Hayat Emeklilik Income Statement (mio TL) 2009 2010 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,28 0,17 NON-LIFE TECHNICAL EXPENSES -0,22 -0,40 I- NON-LIFE TECHNICAL PROFIT / LOSS 0,06 -0,23 LIFE TECHNICAL INCOME 724,69 551,20 LIFE TECHNICAL EXPENSES -717,44 -537,25 II- LIFE TECHNICAL PROFIT
Slide 48: Income Statement (Interim)
Anadolu Hayat Emeklilik Income Statement (mio TL) 2010 / 09 2011 / 09 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,12 0,19 NON-LIFE TECHNICAL EXPENSES -0,32 -0,25 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,20 -0,06 LIFE TECHNICAL INCOME 398,76 433,56 LIFE TECHNICAL EXPENSES -385,41 -409,20 II- LIFE TECHNI
Slide 49: Balance Sheet
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2009 2010 ASSETS I- LIQUID ASSETS 122 129 II- MARKETABLE SECURITIES 2.316 2.453 IIII- RECEIVABLES 2.008 2.682 IV- INVESTMENTS 6 6 V- FIXED ASSETS 24 24 VI- OTHER ASSETS (NET) 4 5 TOTAL ASSETS 4.480 5.299 LIABILITIES AND SHAREHOLDERS’ EQUITY I- PAYABLES
Slide 50: Balance Sheet (Interim)
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2010 / 09 2011 / 09 I- LIQUID ASSETS 122 107 II- MARKETABLE SECURITIES 2.379 2.432 IIII- RECEIVABLES 2.465 3.068 IV- INVESTMENTS 6 9 V- FIXED ASSETS 23 23 VI- OTHER ASSETS (NET) 4 9 TOTAL ASSETS 4.999 5.648 I- PAYABLES 2.502 3.069 II- TECHNICAL PROVISIO
Slide 51: Contents: Stock Data
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 51
Slide 52: Stock Data
Anadolu Hayat Emeklilik Stock Data MCAP (Million $) Year-end Price MCAP Year ($) (Million $) 900 800 2004 0,75 225 700 2005 1,38 414 600 2006 1,58 474 Million $ 500 400 2007 1,96 588 300 2008 0,64 192 200 100 2009 2,55 765 0 2004 2005 2006 2007 2008 2009 2010 2011/09 2010 2,81 843 2011 / 09 1,60 481
Slide 53: Thank You
THANK YOU… For further information: investorrelations@anadoluhayat.com.tr Website: www.anadoluhayat.com.tr
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