Aksigorta As · BIST:AKGRT
Aksigorta As — FY2013 Earnings Presentation
19 slides from Aksigorta As's earnings presentation, February 2014
Slide 1: 2013 Year End Results
2013 Year End Results AKSigorta
Slide 2: Why Invest in Aksigorta
Why Invest in Aksigorta 2 Great Potential in 1 Great Potential in TR NL Insurance Market Akbank 2 Turkey has 1,1 NL insurance penetration 5% while peer economies have 2-3 3% Turkey has 17th largest economy in the world, while TR NL insurance market is 9% 7% 8% 29th in ranking 2009 2011 2013 Akba
Slide 3: Aksigorta, best positioned non-life insurer
Aksigorta, best positioned non-life insurer 3 54 years of history Partnership with Belgian Ageas in 2011 Differentiating factors • Strong brand awareness • Two strong partners: Sabancı and Ageas • Solid balance sheet with a solvency ratio of ~172% • Experienced and qualified human resources •
Slide 4: Decoupling from the market with profitability focus
Decoupling from the market with profitability focus 4 Market • Premium production + 22% YoY • Motor business leading the growth (+ 23% YoY) • High competition and poor profitability continues Aksigorta • Net Profit increase surpassing premium growth • Net profit: +56% YoY (Exc. One-Offs) • Lower
Slide 5: Aksigorta's Vision
Aksigorta’s Vision 5 «Being the market leader through differentiation with service quality» Our goal is to create value; • For our customers with operational excellence, multichannel structure and high service quality • For our shareholders with sustainable growth, dividend payments and generati
Slide 6: Agenda
Agenda 6 2013 Financial Results 2014 Guidance Investor Presentation
Slide 7: Technical margin and bottom line profitability is increasing
Technical margin and bottom line profitability is increasing 7 1.526 Excluding MTPL business Aksigorta Premium 16% growth is %17 ≈ market growth 1.311 Production 26% GWP growth in bank channel (M TL) 12'YE 13'YE *97 94 Combined Ratio Combined Ratio 3 pp 12'YE 13'YE 160 84 MTL is net PL impac
Slide 8: One offs in 2013 Financials
One offs in 2013 Financials 8 Sale of HQ Building (M TL) PBT effect 106 Taxable Amount 22 Net PL effect 102 Impairment on Merter BV (M TL) Historical Value 30 NAV 8 Impairment Loss -22 Net PL effect -18 Investor Presentation
Slide 9: Strategies defined to create the "Future Aksigorta"
Strategies defined to create the “Future Aksigorta” 9 Operational Product Excellence Aksigorta Transformation Program “Sustainable Profitability” Service Channel Excellence Investor Presentation
Slide 10: Portfolio share increases in Non-Motor and Bank
Portfolio share increases in Non-Motor and Bank 10 CHANNEL SHARES (%) LOB SHARES (%) Market almost stable Market in non-motor 1pp MARKET MARKET Agencies 51% 51% Motor Banks 69% 69% Non-Motor Brokers Health Direct Sales 37% 38% 14% 14% 11% 11% 6% 6% 12% 11% Aksigorta Bank 1pp Aksigorta in non-motor 3
Slide 11: Technical margin continues to improve
Technical margin continues to improve 11 Combined Ratio UW Result Loss Ratio ROE 99% *97% 94% 72% *69% 66% 9% 11% **17% 11'YE 12'YE 13'YE *10,4 MTL one off SSI impact is adjusted in UW result, LR and CoR in 2012 results. **Gain on HQ Building Sale and Merter BV impairment loss are excluded in 2013 r
Slide 12: Increase in technical profit by the decrease in loss ratio
Increase in technical profit by the decrease in loss ratio 12 Income Statement (TRL Million) 10’YE 11’YE 12’YE 13’YE Gross Written Premiums 886 1.137 1.311 1.526 Net Written Premiums 619 838 930 1.082 Net Earned Premiums 590 750 891 1.007 Claims (net) -462 -544 -623 -663 Commissions (net) -95 -131 -
Slide 13: Improving ROE thanks to strong profit generation
Improving ROE thanks to strong profit generation 13 (TL Million) 10’YE 11’YE 12’YE 13’YE Cash and Marketable Securities 501 591 627 901 Receivables 413 452 475 462 Other Assets 71 93 116 147 Participations 30 30 30 8 Fixed Assets 44 43 44 31 Total Assets 1.059 1.206 1.292 1.549 Payables 88 95 110 11
Slide 14: Aksigorta share performed +51% relative to index
Aksigorta share performed +51% relative to index TL 14 13YE MCap – TL 817M 12YE MCap – TL 667M Broker Report Date Target Price Deutsche Bank 17/01 3,62 Ak Invest 08/01 3,64 Deniz Invest 09/12 3,80 TEB Invest 22/11 3,50 Finans Invest 18/11 3,44 Investor Presentation
Slide 15: Agenda
Agenda 15 2013 Financial Results 2014 Guidance Investor Presentation
Slide 16: 2014 Guidance follows the strategic plan
2014 Guidance follows the strategic plan 16 Premium 1.526 ~15-18% Benefitting from the profitable Production UWP base (M TL) 13'A 14'E ~1pp 94 Imp. Combined Ratio Sustainable UWP level is achieved 13'A 14'E Technical Profit growing in line *76 ~20-30% with Top Line growth combined Net Income/L
Slide 17: Keep flight altitude and enjoy technical margins in 2014
Keep flight altitude and enjoy technical margins in 2014 17 CHANNEL SHARES (%) LOB SHARES (%) Agencies MARKET 51% 52% Banks 69% 69% Motor Non-Motor Direct Sales & Health Broker 38% 38% 14% 14% 17% 17% 11% 10% Agencies 47% 47% AKSİGORTA 62% 61% Motor Banks Non-Motor Direct Sales & Health Broker 17% 2
Slide 18: Contact Information & Disclaimer
Contact Information & Disclaimer 18 For further information please contact with; (Mr.) Osman Akkoca, Financial Control Manager and (Ms.) Gülnur Kurt, Accounting Manager (T) +90 212 393 43 00 investor.relations@aksigorta.com.tr www.aksigorta.com.tr/en/yatirimci_iliskileri.php Aksigorta A.Ş. Meclis-i
Slide 19: THANK YOU
Contact Information & Disclaimer 19 For further information please contact with; (Mr.) Osman Akkoca, Financial Control Manager (Mrs.) Gülnur Tüccar, Accounting Manager Aksigorta A.Ş. Meclis-i Mebusan Caddesi No 67 Fındıklı 34427 İstanbul Türkiye (T) +90 212 393 43 00 (F) +90 212 334 39 00 investor.r