Anadolu Hayat Emeklilik A.s. · BIST:ANHYT
Anadolu Hayat Emeklilik A.s — Investor Presentation (September 2021)
44 slides from Anadolu Hayat Emeklilik A.s's investor presentation, September 2021
Slide 1: Investor Presentation
Investor Presentation Istanbul, Turkey – September 2021
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: Turkey at a Glance: 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 2010-2020 Turkey OECD Euro-19 Domestic Saving Rate (% of GDP)** Weight of Pension Funds in Household Savings (TRY billion)*** 30% 7% 2.500 2.250 6% 28% 2.
Slide 5: Turkey at a Glance: Demographic Opportunity Window
Turkey at a Glance Demographic Opportunity Window Population by Age 9,0% 8,0% 2020 2080 7,0% 6,0% Population (millions) : 83.6 107.1 5,0% 4,0% Median Age : 32.7 45.0 3,0% 2,0% Fertility : 1.88 1.65* 1,0% Proportion of Elderly Population : 9.5% 25.6% 0,0% 2020 2080 2021 July Decreasing fertility and
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 2021 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 deductible from tax base up to 15% of gross salary with a • Contributions with a cap of • Investment income of • Withholding tax
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 will be implemented by 2021. Maximum limit: 8.5% of the Fund Management Fees (Annual) mon
Slide 12: Growth Accelerated with Increased Government Support
Our Markets Pillar III Private Pension System: Growth Accelerated with Increased Government Support • 25% State Contribution since 2013 • Withholding tax limited to capital gains Under Discussion • Pension fund transfers from provident funds* by the end Implemented of 2017 • Integration of Employee
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% Denmark Pension Participants Social Security Participants Netherlands Iceland 7.0 Million 24.5 Million Canada Switzerland United States Australia
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 : 6.98 Million Individual Participant Funds : TRY 154.47 Billion 79% State Contribution Funds : TRY 22.23 Bill
Slide 15: Private Pension System: Pension Funds
Our Markets Private Pension System: Pension Funds* Repo and International Securities Money 3.33% Market Instruments 3.90% Nominal & Real Investment Return of Pension Funds Government 24% 27% 28% 23% Bonds 20%11% 18% 16% 18% Equity 13% 9% 15% 15% 13% 14% 12% 11% 10% 3% 11% 11% 52.83% 10% 6% 9% 12.89%
Slide 16: Private Pension System: New Frontiers
Our Markets Private Pension System: New Frontiers Integration of Employee Termination Partially Benefits Withdrawal Right (Severence Payments) with Auto Enrolment 16
Slide 17: Auto Enrolment: Basic Features
Our Markets Auto Enrolment: Basic Features* Automatic Minimum State contribution: enrolment of contribution • 25% on contributions current and new amount • 1,000 TRY initial bonus • 5% of assets at employees under set as annuity phase age 45 %3 of monthly wage Structural changes Gradual Simplified a
Slide 18: 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 19: 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 20: Auto Enrolment - New Target Market
Our Markets Auto Enrolment - New Target Market WORKFORCE* Eligible Employees Social Security Participants (age less than 45)** (4a&4c) 16.1 Million 21.4 Million Social Security Participants 24.5 Million Employed 29.5 Million Work Force 33.5 Million * Social Security Institution July 2021, Turkish St
Slide 21: 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. 3,234 Low pen
Slide 22: Life Insurance
Our Markets Life Insurance Life Insurance Total GWP Life Insurance GWP (TRY million) (by Product Category) YoY (TOTAL) : 10% Term Life : 0.1% Endowment/Saving : 46% 16.000,00 160% 15.000,00 14,293 YOY 10% 150% 140% Annuity : 9% 14.000,00 130% 13.000,00 12,335 120% 12.000,00 11,244 11,248 110% 100% 1
Slide 23: Corporate Profile
Anadolu Hayat Emeklilik Corporate Profile 23
Slide 24: Anadolu Hayat Emeklilik At a Glance
Anadolu Hayat Emeklilik At a Glance SECTOR’S SECTOR’S LEADER* LEADER** Life and Private Private Pension ❖ Established in 1990 as a subsidiary of İşbank Pension Funds Contracts TRY 37.0 Billion 2.4 Million ❖ First life insurance company in Turkey ❖ The first publicly traded Life & Pension Company sin
Slide 25: At a Glance
Anadolu Hayat Emeklilik At a Glance Headquartered in Istanbul Customer Service Center in İstanbul I Organization 11 District Sales Offices Branch Office in TRNC HQ and Regions : 560 Human II Resources Direct Sales Team : 464 Total : 1,024 Total Assets : TRY 40,194 Million Financial Shareholders’ Equ
Slide 26: Financial Highlights
Anadolu Hayat Emeklilik Financial Highlights (TRY Million) 2019 2020 Change 2020Q3 2021Q3 Change Total GWP and Net Contributions 3,148.7 4,681.2 49% 3,575.1 2,677.9 -25% Life Mathematical Provisions 2,231.8 3,185.6 43% 2,928.0 3,876.5 32% Pension AUM 22,913.7 30,434.8 33% 28,450.4 33,682 18% Total A
Slide 27: 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 • Conservative • Balanc
Slide 28: Distribution Network
Anadolu Hayat Emeklilik Distribution Network 26 District Sales Offices Private Pensions New Business 1.201 Branches 2.548 Licensed Channel Mix (Contributions) – 2021 Q3 Intermediaries 648 Licensed Tele-Sales 294 Agencies Agents 483 Licensed Intermediaries Tele Sales 4.8% İşbank (Branch+DS+TS) İşbank
Slide 29: Corporate Strategy
Anadolu Hayat Emeklilik Corporate Strategy Become the market leader among privately owned pension and life insurance Finance Become both the private pension companies and life insurance market leader Optimize ROE and risk Optimize operational among privately owned portfolio profitability and efficie
Slide 30: Strong Infrastructure
Anadolu Hayat Emeklilik Strong Infrastructure Core System Transformation Project Following the transition to Private Pension System, Digital Corporate Identity the second phase covering Life Insurance (AHEŞUBE, AHEMOBİL, AHEWISE) Financial Systems processes started in 2017. Fadata has delivered the
Slide 31: Perfect Customer Experience
Anadolu Hayat Emeklilik Perfect Customer Experience Customer Experience Projects & Operational Excellence Six products, Standard Critical Illness Insurance, Critical Illness Insurance for Women, Personal Accident Insurance, Full Coverage Life Insurance, investment for Future Pension Plan and Pension
Slide 32: Awards
Anadolu Hayat Emeklilik Awards We were deemed worthy of the «Customers’ Friend» award by For the fifth time in a row, we became the the Swiss-based, international leader of the Private Pension and Life certification organization Insurance category in the data analytics ICERTIAS. We have been section
Slide 33: Awards
Anadolu Hayat Emeklilik Awards We became the second most According to the 2021 results of the admired company in the "Corporate Social Responsibility Survey" "Private Pension" category conducted by Capital, a monthly business in the "Most Admired economy magazine, in cooperation with Companies of th
Slide 34: Sustainability
Anadolu Hayat Emeklilik Sustainability Effective governance structure in sustainability activities Senior level commitment in sustainability management Anadolu Hayat Emeklilik enters BIST Sustainability Index We are the first and only insurance and pension company quoted at BIST Sustainability Index
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% 17% 16% 16% 19% 19% 19% 19% 19% 18% 18% 16% 16% 16% Market Share Market Share 35.000,00 32,183 29,357 1.160.000,00 1,148,956 1.150.000,00 30.000,00 2
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) 10% 12% 13% 13% 13% 14% 10% 11% 11% 10% 10% 11% Market Share 1.800,00 Market Share YOY 15% YOY 41% 1.200.000,00 1,538 988,298 1.600,00 1.000.000,
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% 8% 9% 10% 12% 10% 11% 9% 7% 7% 9% 10% 9% 8% 2.000,00 Market Share Market Share 1.684,0 YOY -0,7% YOY -17% 1.800,00 1.200,00 1.082,0 1.600,00 1,327.0 1,317.8 1.000,00 9
Slide 38: Statutory Financials
Anadolu Hayat Emeklilik Statutory Financials Life Technical Profit (TRY million) Pension Technical Profit (TRY million) 180,00 YOY 67% 166,7 YOY -22% 160,00 145,5 350,00 328,0 293,1 140,00 300,00 264,1 120,00 227,8 99,9 250,00 100,00 87,6 91,0 200,00 151,1 80,00 67,1 132,6 112,5 150,00 60,00 100,00
Slide 39: Statutory Financials
Anadolu Hayat Emeklilik Statutory Financials Net Distributable Profit / Dividend to Shareholders (TRY Million) Dividend Payout Ratio (%) 600 510 500 81 75 77 71 400 346 360 280 58 300 255 221 200 186 170 140 130 100 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Cash Dividend / Net Distributabl
Slide 40: Statutory Financials
Anadolu Hayat Emeklilik Statutory Financials Technical Profit / Operating Expenses (TRY Million) Operating Expenses – 2021Q3 800,00 690.7 700,00 600,00 573.3 YOY 16% Commission 472.2 YOY 0,2% 500,00 440.1 Expenses 392.5 393.2 48% 400,00 352.5 353.7 318.9 301.1 300,00 258.8 Administration 237.6 199.2
Slide 41: Summary of Income Statement
Anadolu Hayat Emeklilik Statutory Financials Summary of Income Statement (mio TRY) 2016 2017 2018 2019 2020 CAGR 2020Q3 2021Q3 YOY Non-Life Technical Profit / Loss -0.57 -0.54 -1.08 -1.03 -0.93 13% -0.67 -1.46 121% Life Technical Profit / Loss 112.49 132.61 151.10 264.08 327.61 31% 293.16 227.87 -22
Slide 42: Pension Technical Profit
Anadolu Hayat Emeklilik Statutory Financials Pension Technical Profit (mio TRY) 2016 2017 2018 2019 2020 CAGR 2020Q3 2021Q3 YOY Pension Technical Income 236.76 300.55 369.19 427.72 506.28 21% 364.20 441.44 21% 1- Fund Management Income 173.82 216.74 256.42 304.27 368.73 21% 264.47 318.73 21% 2- Mana
Slide 43: Life Technical Profit
Anadolu Hayat Emeklilik Statutory Financials Life Technical Profit (mio TRY) 2016 2017 2018 2019 2020 CAGR 2020Q3 2021Q3 YOY Life Technical Income 700.85 741.97 1,004.27 1,493.82 2,179.29 33% 1,865.47 1,875.71 1% 1- Earned Premiums (Net of Reinsurer Share) 475.43 544.07 625.55 1,193.75 1,665.37 37%
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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