Anadolu Hayat Emeklilik A.s. · BIST:ANHYT
Anadolu Hayat Emeklilik A.s — Investor Presentation (December 2011)
48 slides from Anadolu Hayat Emeklilik A.s's investor presentation, December 2011
Slide 1: Anadolu Hayat Emeklilik A.Ş. Company Presentation
ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION December 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 - 31.12.2011 Insurance Companies 60 - Non-Life 35 - 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
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 1202 Branches 330 Branches 122 Branches 6 Banks & 1745 Branches 87 Branches 3 Branches 1 Branch Direct Sales 309 Licensed Salesperson Agents & 241 Exclusive Agencies Brokers 53 Brokers Internet Other Call Centre 16
Slide 17: Pension Production By Channel
Anadolu Hayat Emeklilik Pension Production By Channel 2009 2010 2011 2011 Direct to Customer 5% 12% 10% Broker 1% 2% 2% Agency 7% 10% 13% BANCASSURANCE 87% 76% 75% Is Bank 5% 4% 3% Is Bank + Direct Sales 45% 41% 42% Is Bank + Agency 16% 14% 13% HSBC 17% 16% 15% TEB + Agency 3% 2% - Anadolubank 1% -
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 31.12.2011 16.000 3.000.000 Number Of Participants 14.000 2.500.000 Fund Size (TL mio) 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 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 31.12.11 Net Asset Value (mio TL) AHE 1.323 48% 1.954 34% 2.620 16% 3.029 Sector 6.384 43% 9.107 32% 12.017 19% 14.333 Market Share 20,7% 21,5% 21,8% 21,1% 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
Private Pension System In Turkey Overview as of 31.12.2011 XXX XXX XXX XXX XXX XXX XXX XXX 24 XXX XXX XXX XXX
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 As of 31.12.2011 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 55 % 27 % 18 % 26
Slide 27: Pension Funds & Mutual Funds
Pension Funds & Mutual Funds Money Net Asset T-Bills & Market Foreign T.Deposits Fund Average Value Bonds Reverse Inst. Currency / Type Maturity (mio TL) Equity (%) (%) Repo (%) (%) Sec.(%) Other (%) PRIVATE PENSION FUNDS 31.12.2010 354 12.008 12,12 58,08 13,03 0,05 0,14 16,58 31.12.2011 554 14.308
Slide 28: Pension Funds
Pension Funds Net Asset Values as of 31.12.2011 28
Slide 29: Pension Funds' Weighted Average Return Performance
Anadolu Hayat Emeklilik Pension Funds’ Weighted Average Return Performance Weighted Average Returns (%) % 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) 35% 30% 30% 27% 28% 25% 20% 16% 15% 13% 11% 10% 9% 10% 6% 7% 6% 5% 5% 5% 5% 4% 4% 5% 4% 4% 3% 0% 0% AHE ZİRAAT XXX GARANTI XXX HALK XXX YKE XXX VAKIF XXX FİNANS XXX 2009 2010 2011 32
Slide 33: Life Insurance in Turkey: Market Shares (Mathematical Reserves)
Life Insurance In Turkey Market Shares (Mathematical Reserves) 2010 2011 % (Mio TL) % (Mio TL) AHE 41% 1.855 36% 2.025 XXX 10% 451 NA NA XXX 9% 396 NA NA XXX 8% 368 NA NA XXX 6% 290 NA NA XXX 5% 241 NA NA Others 21% 939 NA NA TOTAL 100% 4.540 - 5.555* *Temporary 33
Slide 34: Profit Sharing Rates – TL Based Life Products
Anadolu Hayat Emeklilik Profit Sharing Rates – TL Based Life Products 34
Slide 35: Life Portfolio: Total Number of Policies
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2010 vs 2011 35
Slide 36: Life Portfolio: Total Premium Production
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2010 vs 2011 36
Slide 37: Life Portfolio: Premium Production – New Business
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) 37
Slide 38: Life Production By Channel
Anadolu Hayat Emeklilik Life Production By Channel 2011 2009 2010 2011 Agency & Broker 34% 35% 29% Direct to Customer 36% 32% 27% BANCASSURANCE 30% 33% 44% Is Bank 15% 24% 36% Is Bank & Direct Sales & 14% 8% 7% Agency HSBC 1% 1% 1% Total 100% 100% 100% 38
Slide 39: 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 40: Contents
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 40
Slide 41: Financial Highlights
Anadolu Hayat Emeklilik Financial Highlights Mio TL 2010 2011 Written Premium 357 348 General Technical Profit 27 34 Total Assets 5.299 5.648 Paid-In Capital 250 300 Shareholders’ Equity 451 430 Math.& Profit Sharing Provisions 2.091 2.027 Total Fund Size (Private Pension) 2.620 3.030 Net Profit 71
Slide 42: Dividend Payout
Anadolu Hayat Emeklilik Dividend Payout 2008 2009 2010 2011 Net Profit (TL) 52.905.238 79.284.428 72.744.608 62.920.800 Net Distributable Profit (TL) 50.211.779 75.661.865 69.176.772 59.687.324 Dividend to Shareholders (TL) 42.000.000 55.000.000 40.000.000 40.000.000 - Cash 42.000.000 55.000.000 40.
Slide 43: Capital Adequacy
Anadolu Hayat Emeklilik Capital Adequacy 31.12.2009 31.12.2010 31.12.2011 (TL) (TL) (TL) Capital required for Non-Life Branch 28.753 178.239 186.997 Capital required for Life Branch 96.160.222 100.852.982 106.373.431 Capital Required for Pension Branch 6.757.190 8.424.900 9.450.175 TOTAL CAPITAL REQ
Slide 44: Income Statement
Anadolu Hayat Emeklilik Income Statement (mio TL) 2010 2011 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,17 0,32 NON-LIFE TECHNICAL EXPENSES -0,40 -0,33 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,23 -0,01 LIFE TECHNICAL INCOME 551,20 563,17 LIFE TECHNICAL EXPENSES -537,25 -528,72 II- LIFE TECHNICAL PROFIT
Slide 45: Balance Sheet
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2010 2011 ASSETS I- LIQUID ASSETS 129 120 II- MARKETABLE SECURITIES 2.453 2.384 IIII- RECEIVABLES 2.682 3.098 IV- INVESTMENTS 6 9 V- FIXED ASSETS 24 24 VI- OTHER ASSETS (NET) 5 13 TOTAL ASSETS 5.299 5.648 LIABILITIES AND SHAREHOLDERS’ EQUITY I- PAYABLES
Slide 46: Contents
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 46
Slide 47: Stock Data
Anadolu Hayat Emeklilik Stock Data MCAP Year (Million $) 2005 414 2006 474 2007 588 2008 192 2009 765 2010 843 2011 438 2012 / 2 642 47
Slide 48: Thank You
THANK YOU… For further information: investorrelations@anadoluhayat.com.tr Website: www.anadoluhayat.com.tr
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