Anadolu Hayat Emeklilik A.S. · BIST:ANHYT

Anadolu Hayat Emeklilik A.S — Investor Presentation (March 2011)

47 slides from Anadolu Hayat Emeklilik A.S's investor presentation, March 2011

  1. Slide 1: Anadolu Hayat Emeklilik Company Presentation March 2011

    ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION March 2011

  2. 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

  3. Slide 3: Contents

    Contents Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 3

  4. Slide 4: Corporate Profile

    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 pension 4

  5. Slide 5: Ownership Structure

    Ownership Structure Türkiye İş Bankası A.Ş. 62% Anadolu Anonim Türk Sigorta Şirketi 20% Milli Reasürans A.Ş. 1% Free Float 17% 5

  6. Slide 6: Total Number of Companies

    Total Number of Companies 31.12.2010 Insurance Companies 57 - Non-Life 34 - Life 7 - Life & Pension 16 Reinsurance Companies 1 Source: Treasury 6

  7. Slide 7: Turkey Insurance Sector Premium Productions

    TURKEY INSURANCE SECTOR Premium Productions 2009 Total Premium Per Capita (USD) 109 Non-Life Premium Per Capita (USD) 93 Life Premium Per Capita (USD) 16 Total Premium Production (Billion USD) 7,9 Total Premium Production / GDP 1,3 % Source: Treasury 7

  8. Slide 8: Turkey Pension System Contributions

    TURKEY PENSION SYSTEM 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 8

  9. Slide 9: Growth Strategy

    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

  10. Slide 10: Lines of Business - Life & Pensions

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 10

  11. Slide 11: Lines of Business

    Lines of Business Private Pension Life Insurance  Individual  Endowment / Permanent Life  Corporate  Term Life  Annuities  Unemployment  Critical Illness 11

  12. Slide 12: 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

  13. Slide 13: Private Pension System in Turkey: Tax Incentives

    PRIVATE PENSION SYSTEM IN TURKEY Tax Incentives • Contribution Stage • Contributions are tax deductible up to %10 of income with a cap of annual minimum wage. • Employer contributions are also tax deductible subject to the same limits • Investment Stage • Investment income of pension funds are tax e

  14. Slide 14: Private Pension System In Turkey

    Private Pension System In Turkey 14

  15. Slide 15: Distribution Network

    Distribution Network Bancassurance 1162 branches 334 branches 113 branches 86 branches 3 branches 1 branch Direct Sales 312 Licensed Salesperson 278 Exclusive Agencies Agents & Brokers 51 Brokers Internet Other Call Centre 15

  16. Slide 16: Pension Production By Channel

    Pension Production By Channel 2009 2010 2011 / 03 Direct to Customer + 5% 11,7 % 12 % Direct Sales Broker 1% 1,7 % 1% Agency 7% 10,4 % 13 % BANCASSURANCE Is Bank 5% 3,6 % 3% Is Bank + Direct Sales 45 % 41,0 % 42 % 59% Is Bank + Agency 16 % 14,1 % 14 % HSBC 17 % 15,5 % 15 % TEB + Agency 3% 1,6 % - An

  17. Slide 17: Key Drivers For Growth In Pension Business

    Key Drivers For Growth In Pension Business • Economic Improvements in Turkey • Structural reforms • Extended maturities • Purchasing power • Lack of confidence in the social security system • Advantages of Pension System • Tax incentives • Transparent system • Participating to the investment process

  18. Slide 18: Key Drivers For Our Market Leadership

    Key Drivers For Our Market Leadership • Distribution network • Diversified products • Fund performance • Charging structure • Service quality 18

  19. Slide 19: Private Pension System in Turkey: Number of Participants

    Private Pension System InTurkey Overview as of 30.04.2011 14.000 3.000.000 12.000 2.500.000 Number Of Participants 10.000 2.000.000 Fund Size (TL mio) 8.000 1.500.000 6.000 1.000.000 4.000 2.000 500.000 - 0 2004 2005 2006 2007 2008 2009 2010 2011/4 Funds (TL mio) Number Of Participants 19

  20. Slide 20: Pension System Outlook

    Pension System Outlook As of 2006 % As of 2007 % As of 2008 % As of 2009 % As of 2010 % As of 2011 % As of 31.12.2005 Change 31.12.2006 Change 31.12.2007 Change 31.12.2008 Change 31.12.2009 Change 31.12.2010 Change 30.04.2011 Net Asset Value (mio TL) AHE 175 202% 529 72% 910 45% 1.323 48% 1.954 34%

  21. Slide 21: Number of Participants according to Regions

    Number of Participants according to Regions (In Participant's Age Interval Detail) Number of Participants according to Regions Marmara Participant's Age Interval Details Central Anatolia 900.000 Aegean 800.000 700.000 The Mediterranean 600.000 500.000 The Black Sea 400.000 Southeast Anatolia 300.000

  22. Slide 22: Private Pension System In Turkey Overview

    Private Pension System In Turkey Overview as of 30.04.2011 Pension Number Of Funds Market Share Company Participants (mio TL) AHE 530.082 22,0 % 2.864 XXX 496.117 20,5 % 2.022 XXX 378.230 15,7 % 2.731 XXX 282.953 11,7 % 2.003 XXX 171.677 7,1 % 773 Other 8 555.849 23,0 % 2.611 Total 2.414.908 100 % 1

  23. Slide 23: Pension Products

    Pension Products Fund Menu Conservative Balanced Aggressive  Cash Fund  Intnl. Mixed Fund  Equity Fund  Conservative Fund  Eurobond $/€ Fund  Aggressive Fund  Bond Fund  Alternative Balanced Fund BRIC Fund  Balanced Fund 46 % 32 % 22 % 23

  24. Slide 24: Private Pension Funds & Mutual Funds

    Private Pension Funds & Mutual Funds Net Asset T-Bills & Money Foreign Fund Average Value Equity Bonds Reverse Market Inst. Currency T.Deposits/ Type Maturity (mio TL) (%) (%) Repo (%) (%) Sec.(%) Other (%) PRIVATE PENSION FUNDS 31.12.2010 354 12.008 12,12 58,08 13,03 0,05 0,14 16,58 30.04.2011 536

  25. Slide 25: Weighted Average Return

    31.12.2010-30.04.2011 Weighted Average Return * Net Asset Value Weighted Average Private Pension Firm (mio TL) Return (%) XXX 68 2,67 Anadolu Hayat Emeklilik 2.864 2,31 XXX 109 2,20 XXX 71 2,13 XXX 56 1,76 XXX 685 1,74 XXX 2.731 1,67 XXX 773 1,61 XXX 2.003 1,38 XXX 565 1,28 XXX 2.022 1,00 XXX 414 0,

  26. Slide 26: Weighted Average Return Performance

    Anadolu Hayat Emeklilik Weighted Average Return Performance Weighted Average Return (%) Year Anadolu Hayat Emeklilik Sector Average 2010 11,68 9,57 2009 27,34 23,30 2008 10,19 10,97 2007 21,01 18,46 2006 11,59 10,24 26

  27. Slide 27: Pension Products Charging Structure & Minimum Contribution

    Pension Products Charging Structure & Minimum Contribution Charging Individual Group Pension Explanation Limit Method Pension Plans Plans Can be 0 to ½ of minimum wage ½ of minimum wage At the phase of deferred till the Deferred till leaving entrance to the leaving date or ½ of Deferred till lea

  28. Slide 28: Life Insurance In Turkey Market Shares (Premium Production)

    Life Insurance In Turkey Market Shares (Premium Production) COMPANY 2008 2009 2010 AHE 22% 27% 16% XXX 19% 19% 2% XXX - - 28% XXX 9% 7% 6% XXX 8% 10% 11% XXX 7% 5% 5% XXX 5% 4% 4% Others 30% 28% 28% TOTAL 100% 100% 100% 28

  29. Slide 29: Life Insurance In Turkey Market Shares (Mathematical Reserves)

    Life Insurance In Turkey Market Shares (Mathematical Reserves) COMPANY 2008 2009 2010 % (Mio TL) % (Mio TL) (Mio TL) AHE 35% 1.618 39% 1.840 1.977 XXX 12% 550 11% 512 N/A XXX 11% 497 11% 516 N/A XXX 10% 444 9% 422 N/A XXX 6% 269 6% 260 N/A XXX 6% 270 6% 272 N/A Others 21% 972 18% 858 N/A TOTAL 100%

  30. Slide 30: Life Products Profit Sharing Rates

    Life Products Profit Sharing Rates PROFIT YEAR SHARE(%) USD(%) CPI(%) 2001 76 114 69 2002 62 14 30 2003 47 -15 18 2004 29 -4 9 2005 23 0 8 2006 16 5 10 2007 20 -17 8 2008 17 30 10 2009 15 -0,4 7 2010 11 3 6 AVERAGE 32 13 18 30

  31. Slide 31: Life Portfolio Total Number of Policies

    Life Portfolio Total Number of Policies 2009 2010 2010 / 03 2011 / 03 Endowment/ 88.426 78.484 85.339 76.065 Permanent Life Annuity 40.706 37.900 40.086 40.341 Term Life 890.788 969.650 926.327 1.052.605 Total 1.019.920 1.086.034 1.051.752 1.169.011 31

  32. Slide 32: Life Portfolio Total Premium Production

    Life Portfolio Total Premium Production (TL) 2009 2010 2010 / 03 2011 / 03 Endowment/ 177.088.512 167.603.927 41.860.931 35.913.611 Permanent Life Annuity 289.244.293 133.978.008 42.387.198 34.673.301 Term Life 33.402.991 55.770.129 11.726.447 20.752.628 Total 499.735.796 357.352.064 95.974.576 91.3

  33. Slide 33: Life Portfolio Premium Production – New Business

    Life Portfolio Premium Production – New Business (TL) 2010 2010 / 03 2011 / 03 Endowment 8.243.868 2.172.527 2.246.399 Annuity 133.978.008 42.387.198 34.673.301 Term Life 55.819.062 11.773.172 20.929.688 Total 198.040.938 56.332.897 57.849.388 33

  34. Slide 34: Life Production By Channel

    Life Production By Channel 2009 2010 2011 / 03 Agency & Broker 34 % 35 % 31 % Direct to Customer & Direct Sales 36 % 32 % 29 % BANCASSURANCE Is Bank 15 % 24 % 31 % 39 % Is Bank & Direct Sales & Agency 14 % 8% 8% HSBC 1% 1% 1% Total 100 % 100 % 100 % 34

  35. Slide 35: Life Products Charging Structure

    Life Products Charging Structure Charging Individual Life Group Life Explanation Limit Method Products Products TRL - $/€ 1.Year 22,5% - 15% Varies AGENCY On No limits since - 2. Year 1% - 1% according to COMMISSION premiums 05.11.2007 3. Year 1% - 1% the group 4.Year + 1% - 0% TRL - $/€ To cover 1

  36. Slide 36: Financials

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 36

  37. Slide 37: Financial Highlights

    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 Net Profit 79 71 37

  38. Slide 38: Financial Highlights

    Financial Highlights Mio TL 2010 / 03 2011 / 03 Written Premium 96 91 General Technical Profit 16 5 Total Assets 4.661 5.369 Paid-In Capital 250 250 Shareholders’ Equity 404 414 Math.& Profit Sharing Provisions 1.936 2.051 Net Profit 30 14 38

  39. Slide 39: Dividend Payout

    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 55.000.000 40.000.000 - Bon

  40. Slide 40: Capital Adequacy

    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 REQUIRED 84.088.998 102.946.

  41. Slide 41: Financials Income Statement

    Financials Income Statement (mio TL) 2009 2010 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,28 0,17 B- NON-LIFE TECHNICAL EXPENSES -0,22 -0,40 I- NON-LIFE TECHNICAL PROFIT / LOSS 0,06 -0,23 C- LIFE TECHNICAL INCOME 724,69 551,20 D- LIFE TECHNICAL EXPENSES -717,44 -537,25 II- LIFE TECHNICAL PROFIT /

  42. Slide 42: Financials Income Statement

    Financials Income Statement (mio TL) 2010 / 03 2011 / 03 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,04 0,05 B- NON-LIFE TECHNICAL EXPENSES -0,06 -0,08 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,02 -0,03 C- LIFE TECHNICAL INCOME 144,80 133,87 D- LIFE TECHNICAL EXPENSES -133,20 -126,64 II- LIFE TECHNIC

  43. Slide 43: Financials Balance Sheet

    Financials 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 2.004 2.680 I

  44. Slide 44: Financials Balance Sheet

    Financials Balance Sheet (mio TL) 2010 / 03 2011 / 03 I- LIQUID ASSETS 158 125 II- MARKETABLE SECURITIES 2.347 2.401 IIII- RECEIVABLES 2.119 2.805 IV- INVESTMENTS 6 6 V- FIXED ASSETS 24 24 VI- OTHER ASSETS (NET) 7 8 TOTAL ASSETS 4.661 5.369 I- PAYABLES 2.243 2.822 II- TECHNICAL PROVISIONS 1.999 2.11

  45. Slide 45: Stock Data

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 45

  46. Slide 46: Anadolu Hayat Emeklilik Stock Data

    Anadolu Hayat Emeklilik Stock Data Year-end Year MCAP($) Price ($) 2004 0,90 225.000.000 2005 1,66 415.000.000 2006 1,90 475.000.000 2007 2,35 587.500.000 2008 0,77 192.500.000 2009 3,06 765.000.000 2010 3,38 845.000.000 2011 / 04 3,68 920.000.000 46

  47. Slide 47: Thank You

    THANK YOU...

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