Aksigorta AS · BIST:AKGRT

Aksigorta AS — Q2 2020 Earnings Presentation

22 slides from Aksigorta AS's earnings presentation, Jul 29, 2020

  1. Slide 1: Aksigorta Earnings Call Presentation – 20'Q2

    AKSigorta Earnings Call Presentation – 20’Q2 29/07/2020 Presented by AKSigorta IR Team investor.relations@aksigorta.com.tr

  2. Slide 2: Agenda: Aksigorta Financials (in TFRS)

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. 2020 Guidance 4. Appendix

  3. Slide 3: 2020 Q2 – Aksigorta Scorecard

    2020 Q2 – Aksigorta Scorecard 2Q20 Financial Indicators (M TL) (YoY %) -5% 88% 37% 1.032 169 942 Gross Written Net Income Total Equity Premiums 2Q20 Operational Ratios (YoY pp) -16 pp -18 pp 10 pp 55% 79% 56% Net Combined Net Loss Ratio RoE Ratio Dividend Payment Out of 2019 Net Profit (Mn TL) 202 5

  4. Slide 4: Non-Life Insurance Market GWP is 13,8Bn TL in Q2

    Market GWP (M TL) Non-Life Insurance Market GWP is 13,8Bn TL in Q2 with ~13% YoY growth 23% 23% 17% 13% 15% 19Q3 19Q4 20Q1 20Q2 20'YtD 9.173 11.246 12.506 15.402 13.046 15.230 12.266 13.849 25.312 29.079 Health Non-Motor 13% 15% 14% 22% MOD 13% 14% 12% 13% MTPL 13% 12% 43% 38% 43% 40% 43% 22% 10% 43

  5. Slide 5: Aksigorta GWP Growth Slowed Down Due to Covid-19 in 2Q20

    Aksigorta GWP (M TL) Aksigorta GWP Growth Slowed Down Due to Covid-19 in 2Q20 26% 39% 16% -7% 4% 19Q3 19Q4 20Q1 20Q2 20'YtD 750 943 945 1.318 1.015 1.174 1.053 983 2.069 2.157 Health Non-Motor 11% 15% 10% MOD 9% 6% MTPL 13% 8% 13% 9% 42% 38% -6% 5% 31% 7% 36% 38% 39% 39% 34% 45% 39% 26% 23% 22% 19%

  6. Slide 6: Aksigorta UWR by LoBs

    Aksigorta UWR by LoBs (M TL) UWR more than doubled up in 2Q20 thanks to MOD & MTPL performance 95% 1535% 142% 179% 166% 19Q3 19Q4 20Q1 20Q2 20'YtD 34 66 -5 76 40 98 70 196 111 294 Health Non-Motor 14 15 28 MOD 26 21 MTPL 12 47 13 34 11 28 8 50 84 22 10 23 134 13 30 21 12 10 11 14 1 -2 16 -12 -12 8 1

  7. Slide 7: We keep combined ratio well below 100%

    We keep combined ratio well below 100% Combined Ratio Loss Ratio Commission Ratio Expense Ratio 19Q3 19Q4 20Q1 20Q2 20'YtD 101% 112% 102% 96% 99% 97% 12% 97% 86% 8% 10% 94% 9% 10% 10% 13% 9% 9% 16% 16% 79% 16% 16% 9% 16% 15% 16% 9% 15% 15% 86% 77% 73% 76% 73% 72% 69% 71% 62% 55% 18Q3 19Q3 18Q4 19Q4

  8. Slide 8: Total Assets Under Management Reached 3,0bn TL in Jun.20

    Total Assets Under Management Reached 3,0bn TL in Jun.20 Mar.20 Jun.20 Time deposit Corporate bond 6% 6% Eurobond 14% 12% Government bond 3% 39% Equity 7% 48% 25% 40% 2.580 m TL AuM 2.970 m TL 10% Annualized average yield* 13% 87 m TL Quarterly financial income** 101 m TL (*): Yield figures are net

  9. Slide 9: Net Income Almost Doubled in 2Q20 (88% YoY Growth)

    Net Income Almost Doubled in 2Q20 (88% YoY Growth) 20Q2/ Profit & Loss 19Q2 19Q3 19Q4 20Q1 20Q2 19Q2 Gross Written Premiums 1.084 975 1.356 1.234 1.032 -5% Net Earned Premiums 518 559 601 638 655 26% Underwriting Result 70 66 76 98 196 179% Expenses -51 -52 -57 -57 -61 -20% Financial Income 109 110

  10. Slide 10: Proven Track of Strong Financial Results, RoE 50%+

    Proven Track of Strong Financial Results, RoE 50%+ Balance Sheet 20Q2/ 20Q2/ 19Q2 19Q3 19Q4 20Q1 20Q2 (M TL) 20Q1 19Q2 Receivables 1.388 1.281 1.543 1.522 1.417 -7% 2% AUM 2.201 2.450 2.610 2.580 2.970 15% 35% Other 389 368 449 460 431 -7% 11% Total Assets 3.978 4.099 4.601 4.562 4.818 6% 21% Reserv

  11. Slide 11: TFRS vs IFRS: Discounting of O/S claims is the major difference

    TFRS vs IFRS: Discounting of O/S claims is the major difference between two ledgers YtD Equity Million TL P&L TFRS Result 941,6 258,5 Equalization Reserve 92,1 -3,5 Unexpired Risk Reserve 17,8 3,4 Unallocated Loss Adjustment Expenses -19,5 -0,3 IBNR 11,1 11,1 Discounting of outstanding claims -292,2

  12. Slide 12: Agenda: Risks & Opportunities

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. 2020 Guidance 4. Appendix

  13. Slide 13: Risks & Opportunities

    Risks & Opportunities Risks Opportunities ▪ Downsizing economy limits insurance growth ▪ Decrease in interest rates would have positive impact on mortgage and car sales ▪ Decreasing UW profit margin due to competition ▪ Increasing new vehicle and mortgage home sales ▪ Decrease in interest rates ▪ Hi

  14. Slide 14: Impact of Covid-19

    Impact of Covid-19 ▪ The Covid-19 is a systematic risk that is unavoidable ▪ Cash flows: Due to slowing down in mobility, trade and economic activities we foresee that the cash flows will be the biggest challenge in the coming periods. We don’t see any risk in our business since: ▪ 63% of our receiv

  15. Slide 15: Agenda: 2020 Guidance

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. 2020 Guidance 4. Appendix

  16. Slide 16: 2020 Year-End Guidance

    2020 Year-End Guidance Despite Covid-19 We Maintain Our Year-end Guidance 15%-25% growth in GWP 0-10% growth in Net Profit 16

  17. Slide 17: Our Long Term Ambitions

    Our Long Term Ambitions 1Bn $ 10% Market Cap Market Share 95% 30%+ Net Combined RoE Ratio 17

  18. Slide 18: Agenda: Appendix

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. 2020 Guidance 4. Appendix

  19. Slide 19: Summary Financial Statements in IFRS

    Summary Financial Statements in IFRS 20Q2/ Profit & Loss 19Q2 19Q3 19Q4 20Q1 20Q2 19Q2 Gross Written Premiums 1.084 975 1.356 1.234 1.032 -5% Net Earned Premiums 518 559 601 638 655 26% Underwriting Result 42 46 59 75 191 354% Expenses -51 -52 -57 -57 -61 -20% Financial Income 109 110 115 81 96 -12%

  20. Slide 20: Proven Track of Strong Financial Results, RoE 50%+

    Proven Track of Strong Financial Results, RoE 50%+ Balance Sheet 20Q2/ 20Q2/ 19Q2 19Q3 19Q4 20Q1 20Q2 (M TL) 20Q1 19Q2 Receivables 1.388 1.281 1.543 1.522 1.417 -7% 2% AUM 2.201 2.450 2.610 2.580 2.970 15% 35% Other 414 398 482 499 470 -6% 14% Total Assets 4.004 4.128 4.635 4.601 4.857 6% 21% Reserv

  21. Slide 21: 1H20 Technical Result Bridge btw TFRS & Management Reporting

    1H20 Technical Result Bridge btw TFRS & Management Reporting Re-classifications UW Result in Technical Result Management in TFRS 1 2 3 4 5 6 7 Reporting Net Earned Premiums 1.328 -6 -29 1.293 Claims, net * -775 11 -16 -21 -800 Other Technical Inc and Exp -39 6 29 -11 15 Commissions, net -198 -198 Ge

  22. Slide 22: THANKS

    THANKS Presented by AKSigorta Investor Relations Team, July 2020 For further questions: MAIL investor.relations@aksigorta.com.tr WEB https://www.aksigorta.com.tr/en/investor-relations PDP https://www.kap.org.tr/en/sirket-bilgileri/ozet/841-aksigorta-a-s

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