Aksigorta AS · BIST:AKGRT
Aksigorta AS — Q2 2019 Earnings Presentation
20 slides from Aksigorta AS's earnings presentation, Jul 31, 2019
Slide 1: Aksigorta Earnings Call Presentation – 19'Q2
2016 January Aksigorta Earnings Call Presentation – 19’Q2 31/07/2019 Presented by Aksigorta IR Team
Slide 2: Aksigorta Financials (in TFRS)
1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. Future Guidance 4. Appendix
Slide 3: 2019 Q2 – Aksigorta Scorecard
2019 Q2 – Aksigorta Scorecard 2019 Q2 FINANCIAL INDICATORS (Mn TL) 1.084 46% 90 101% 686 11% 3.978 28% 109 86% (YoY) (YoY) (YoY) (YoY) (YoY) Gross Written Net Shareholders’ Total Financial Premiums Income Equity Assets Income 2019 Q2 OPERATIONAL RATIOS 56% -1 pp 71% -2 pp 95% -3 pp 46% 16 pp (YoY) (
Slide 4: Price increase is driving the growth, penetration is decreasing
Price increase is driving the growth, penetration is decreasing 20% 22% 18% 19% 19% 18Q3 18Q4 19Q1 19Q2 19'YtD 7.666 9.173 10.225 12.506 11.077 13.061 10.263 12.251 21.339 25.312 Health 13% 30% Non-Motor MOD 14% 13% 12% 12% MTPL 13% 40% 20% 12% 11% 10% 39% 37% 40% 43% 10% 37% 43% 37% 36% 35% 19% 18%
Slide 5: Aksigorta overperformed the market in Non-motor and MTPL
Aksigorta overperformed the market in Non-motor and MTPL 21% 10% 14% 46% 28% 18Q3 18Q4 19Q1 19Q2 19'YtD 638 770 880 971 932 1.058 744 1.085 1.676 2.143 Health 10% 26% Non-Motor 8% 13% MOD 7% 12% 10% MTPL 8% 40% 41% 5% 40% 9% 39% 35% 40% 45% 39% 6% 34% 38% 37% 20% 19% 13% 26% 29% 24% 21% 19% 18% 29%
Slide 6: Better performance in motor segment contributed to UW profitability
Better performance in motor segment contributed to UW profitability UWR Business Mix (Mn TL) Health Non-Motor MOD MTPL 18Q3 18Q4 19Q1 19Q2 19'YtD 32 34 39 -5 59 40 45 70 103 111 8 10 11 10 9 17 9 18 16 22 8 17 30 32 29 61 40 47 10 23 21 1 28 27 21 19 16 4 18 6 35 34 2 -9 -12 -11 -26 -19 -27 -27 17Q3
Slide 7: Combined ratio dropped below 100% as of June'19
Combined ratio dropped below 100% as of June’19 Combined Ratio Loss R Commission R Expense R 18Q3 18Q4 19Q1 19Q2 19'YtD 109% 99% 101% 8% 100% 99% 99% 97% 97% 95% 95% 8% 8% 10% 10% 13% 8% 9% 8% 9% 8% 16% 16% 18% 16% 17% 16% 19% 15% 18% 88% 77% 76% 74% 73% 72% 70% 68% 71% 71% 17Q3 18Q3 17Q4 18Q4 18Q1
Slide 8: As of June'19, AUM reached to 2.201 mTL with 26% increase YoY
As of June’19, AUM reached to 2.201 mTL with 26% increase YoY Time Deposit Corporate Bond Eurobond Government Bond Equities June’18 September’18 December’18 March’19 June’19 2% 4% 4% 2% 2% 2% 6% 5% 2% 6% 6% 7% 18% 23% 18% 18% 18% 69% 68% 72% 76% 73% 18Q2 18Q3 18Q4 19Q1 19Q2 AUM (mTL) 1.744 AUM (mTL)
Slide 9: Strong Financial Results, +45% ROE
Strong Financial Results, +45% ROE 19'06/ 19Q2/ Profit & Loss 18Q2 18Q3 18Q4 19Q1 19Q2 18'06 19'06 Balance Sheet 18Q2 18Q3 18Q4 19Q1 19Q2 18'06 18Q2 GWP 744 770 971 1.058 1.084 1.676 2.143 27,8% Receivables 1.037 1.041 1.156 1.278 1.388 33,9% NEP 442 471 492 489 518 840 1.007 20,0% AUM 1.743 1.948 2
Slide 10: TFRS vs IFRS: Discounting of O/S claims is the major difference between two ledgers
TFRS vs IFRS: Discounting of O/S claims is the major difference between two ledgers as of June ' 2019 YtD Equity Million TL P&L Adjust TFRS Result 686,2 168,3 Equalization Reserve 89,5 7,1 Unexpired Risk Reserve 18,4 -2,2 Unallocated Loss Adjustment Expenses -16,0 -2,5 Discounting of outstanding cla
Slide 11: What are the Risks & Opportunities?
1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. Future Guidance 4. Appendix
Slide 12: Risks & opportunities are factored in our year-end guidance
Risks & opportunities are factored in our year-end guidance Risks Opportunities • Downsizing economy limits insurance growth • Decreasing new vehicle and mortgaged home sales, • Decreasing interest rates would have positive impact on pressuring retail segment mortgage and car sales • Decreasing uw p
Slide 13: Future Guidance
1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. Future Guidance 4. Appendix
Slide 14: 2019 targets are…
2019 targets are… 18-20% growth in GWP 35%-40% increase in Net Profit 14
Slide 15: … aligned with long term ambition
… aligned with long term ambition 1B $ +2pp Market Cap Market Share 95% 30+% Combined Ratio Return on Equity (Net) (ROE) 15
Slide 16: Appendix
1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. Future Guidance 4. Appendix
Slide 17: Summary Financial Statements in IFRS
Summary Financial Statements in IFRS 19'06/ 19Q2/ Profit & Loss 18Q2 18Q3 18Q4 19Q1 19Q2 18'06 19'06 Balance Sheet 18Q2 18Q3 18Q4 19Q1 19Q2 18'06 18Q2 GWP 744 770 971 1.058 1.084 1.676 2.143 27,8% Receivables 1.018 1.026 1.142 1.278 1.388 35,3% NEP 442 471 492 489 518 840 1.007 20,0% AUM 1.743 1.948
Slide 18: Capital Adequacy
Capital Adequacy Mar'18 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 Required Capital 571 573 588 615 672 670 Main drivers: Asset risk 258 241 233 232 277 241 by asset size RI risk 46 46 46 56 56 72 by re-insurance portfolio Reserve risk 49 55 63 68 73 79 by growth Uw risk 212 230 244 249 254 268 by growth Fx
Slide 19: Technical Result Bridge btw TFRS & Management Reporting
Technical Result Bridge btw TFRS & Management Reporting Technical Re-classifications UW Result in Result in Management 1 2 3 4 5 6 7 TFRS Reporting Net Earned Premiums 1.035,7 -5,9 -22,7 1.007,1 Claims, net 1 -727,2 8,5 -7,4 -13,4 -739,3 Other Technical Inc and Exp -25,9 5,9 22,7 -8,5 5,8 0,0 Commis
Slide 20: THANKS
THANKS Presented by AKSİGORTA Investor Relations Team, July 2019 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