Anadolu Anonim Turk Sigorta Sirketi A.s. · BIST:ANSGR

Anadolu Anonim Turk Sigorta Sirketi A.s — Q2 2019 Earnings Presentation

22 slides from Anadolu Anonim Turk Sigorta Sirketi A.s's earnings presentation, Aug 1, 2019

  1. Slide 1: Financial Results 2Q19 Earnings Call

    Financial Results 2Q19 Earnings Call Aug 1, 2019 1

  2. Slide 2: Content

    Content  Highlights of Sector  Growth Performance  Highlights of Anadolu  Core indicators  Premium production  Financial statements  Market Share & Rank  Investment portfolio  Branch Technical Results  Innovation  Profitability  Q&A session 2

  3. Slide 3: Sector GPW and market share: top ten insurers

    2019H1 2018H1 GPW Share GPW Share (mn TRY) (mn TRY) High investment yield Allianz 3.351 11,7% Allianz 2.892 12,0% Anadolu 3.260 11,4% Anadolu 2.860 11,9% Declining motor claims frequency Aksigorta 2.155 7,5% Aksigorta 1.676 7,0% Axa 1.960 6,8% Axa 1.579 6,6% Non-motor driven growth Ziraat 1.610 5

  4. Slide 4: Sector premium production by branch

    BRANCHES 19H1 18H1 Change (YoY) (%) MTPL 8.740 7.739 12,9% MOD 4.416 3.717 18,8% Health 4.397 3.348 31,4% Fire 4.086 3.284 24,4% General Losses 3.564 3.297 8,1% Accident 1.096 916 19,7% General Liability 881 665 32,4% Marine Transportation 505 416 21,3% Financial Losses 254 166 53,0% Watercraft 223

  5. Slide 5: Improving financials, claims ratio recovery, growing investment portfolio

    • Improving financials • MOD & Health Claims Ratio Recovery 120% Change(%) (mn TRY) 19Q2 19H1 18H1 YoY 109% 109% 110% Gross Profit 127 303 223 36% 100% 96% Net Profit 105 230 172 34% 91% 89% 90% 93% Net Profit* 105 204 138 48% (*) ANHYT dividend income excluded. 80% • Growing investment portfolio 70

  6. Slide 6: Premium production by branch

    18Q2 18Q3 18Q4 19Q1 19Q2 YoY(%) MOD 268 244 344 293 303 13,1% MTPL 377 382 416 405 415 10,1% FIRE 310 211 306 256 344 11,1% HEALTH 208 106 179 258 204 -1,9% OTHER 319 275 379 397 385 20,7% TOTAL 1.482 1.218 1.624 1.609 1.651 11,4% 19H1 Breakdown GPW Branch Breakdown MOD 450 OTHER 18% 24% 400 350 300

  7. Slide 7: Market share and rank by branch

    Rank Market Share BRANCHES 18H1 19H1 Growth 19H1 19H1 MOD 502 597 1 14% 19% Fire 519 601 1 15% 16% General Liability 121 182 1 21% 50% Watercraft 54 76 1 34% 40% MTPL 753 821 1 9% 9% Aircraft Liability 16 31 1 45% 100% Marine Transportation 53 69 2 14% 31% Aircraft 23 33 2 40% 45% General Losses 302

  8. Slide 8: Premium production by distribution channel: sector vs ANSGR

    Premium Production – Sector Premium Production – ANSGR Other Other 12,0% 13,8% Broker Broker 13,5% 11,3% Agency 59,9% Bank Agency Bank 12,5% 62,4% 14,6% 8

  9. Slide 9: Accident and Health branch results

    18Q2 19Q1 19Q2 Change Change YoY QoQ • Premium production better than Q1 GPW 37,4 32,5 36,3 -3,0% 11,7% Accident Earned Premiums 32,7 29,8 33 1,1% 10,8% Claims (Net) 9,5 1,4 5 -47,4% 254,4% Claims Ratio 29,0% 4,7% 15,1% -48,0% 220,0% 18Q2 19Q1 19Q2 Change Change YoY QoQ • Significant Progress GPW 20

  10. Slide 10: Land Vehicles and General Losses results

    18Q2 19Q1 19Q2 Change Change YoY QoQ • Improvement trend in Land GPW 268,1 293,2 303,3 13,1% 3,4% claims ratio since 18Q3 stands on stronger Earned Premiums 244,7 273,7 289,4 18,3% 5,8% Vehicles Claims (Net) 187,9 188,3 171,4 -8,8% -9,0% Claims Ratio 76,8% 68,8% 59,2% -22,9% -13,9% 18Q2 19Q1 19Q2 Ch

  11. Slide 11: MTPL and Fire results

    18Q2 19Q1 19Q2 Change Change YoY QoQ • Restrained premium growth GPW 377,2 405,3 415,3 10,1% 2,5% MTPL Earned Premiums 231,5 245,2 228,3 -1,4% -6,9% Claims (Net) 223,2 272,2 274,3 22,9% 0,8% Claims Ratio 96,4% 111,0% 120,2% 24,6% 8,2% 18Q2 19Q1 19Q2 Change Change • Net paid claims was 8% YoY QoQ low

  12. Slide 12: Combined Ratio

    Combined Ratio 18Q2 19Q1 19Q2 18H1 19H1 MOD 109,0% 98,0% 87,4% 103,5% 92,5% MTPL 119,6% 136,6% 142,1% 119,9% 139,2% Fire 106,7% 105,6% 103,4% 95,6% 104,5% Health 111,3% 132,8% 118,9% 116,2% 125,8% P.Accident 68,0% 46,6% 72,4% 72,0% 60,2% General Liability 153,2% 80,4% 177,7% 153,1% 140,8% General Lo

  13. Slide 13: Total assets, technical reserves, cash and equity

    Total Assets (mn TRY) (*) Tech. Reserves (mn TRY) 5.697 8.590 5.184 7.853 4.456 6.929 3.914 5.840 4.677 2.934 3.773 2.282 2014 2015 2016 2017 2018 19Q2 2014 2015 2016 2017 2018 19Q2 Cash and Marketable Sec. (mn TRY) (*) Shareholders' Equity (mn TRY) 5.621 1.639 1.646 1.695 5.050 4.505 1.202 1.223 3.

  14. Slide 14: Market cap, book value and P/BV

    (TRY) 30.06.2019 31.12.2018 Change Mcap 2.025mn 2.055mn -1,5% Equity (Book Value) 1.695mn 1.646mn 3% P / BV 1,2 1,3 4% 2500 1,4% 1,3% 1,2% 1,2% 2000 1,0% 2.055 2.025 1,0% 0,8% 1500 0,7% 0,7% 1.639 1.646 1.695 0,8% 1.550 1.202 1.223 0,6% 1000 1.020 965 0,4% 795 500 710 0,2% 0 0,0% 2014 2015 2016 2017

  15. Slide 15: Net Profit and P&L

    Change (%) Change (%) P&L 19Q2 18Q2 19Q1 (YoY) (QoQ) Tech. Income (*) 1.049 849 973 24% 8% Tech. Expenses -1.185 -952 -1.095 24% 8% Net Financial Inc. + Other Exp. (*) 302 183 281 65% 7% Deferred Tax -18 -9 20 104% -188% Gross Profit 127 70 176 82% -28% Tax - 21 -7 -51 212% -58% Net Profit 105 63 12

  16. Slide 16: Assets and Liabilities

    Assets 06.2019 12.2018 Change Liabilities 06.2019 12.2018 Change (%) (%) Cash + Marketable Sec. 5.622 5.101 10,2% Technical Provisions 5.697 5.185 9,9% Equity Participations 432 517 -16,5% Shareholders' Equity 1.695 1.646 2,9% Other Assets 2.536 2.286 11% Other Liabilities 1.198 1.073 11,7% Assets 8

  17. Slide 17: Assets, Shareholder's Equity, Investment Portfolio

    10.000 60,0% 29,8% 9.000 27,4% 50,0% 8.590 8.000 7.904 7.000 7.032 40,0% 6.000 17,7% 5.974 5.000 30,0% 5.195 4.888 10,5% 4.673 21,6% 4.000 4.117 18,7% 3.773 9,9% 8,7% 20,0% 3.000 3.410 13,2% 2.000 2.408 7,4% 7,6% 1.927 10,0% 5,9% 1.639 1.646 1.695 1.000 1.202 1.223 1.051 308 72 88 184 230 64 0 0,0%

  18. Slide 18: Investment portfolio breakdown

    In 19H1; Bonds Other 14% Funds Dividend from ANHYT 26 mn TRY 6% 1% Investment Income * 582 mn TRY Average Portfolio Income ~ 25% Stock * ANHYT dividend excluded. 2% %61 YoY increase in TRY 5,19 bn Investment Income Deposits 77% TRY 4,84 bn at 31.03.2019 18

  19. Slide 19: Real-time video and chat claim communication

    Real-time video and chat communication between clients Increases the speed of initial intervention to the claim Quick and practical claim assessment Reduction claim files payment duration time Increasing customer satisfaction 19

  20. Slide 20: Insurance Products on Mobile

    Insurance Products on Mobile Personal Accident MTPL MOD Travel Insurance Complementary Health Greencard Insurance Mandatory Eartquake Insurance Cyber Security Future Education Insurance Household Comprehensive Flight Delay 20

  21. Slide 21: Forward-looking statements disclaimer

    This presentation contains forward-looking statements and information on the business development of Anadolu Sigorta. These statements may be spoken or written and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “seeks” or words with similar meaning. These statements

  22. Slide 22: Thank You

    THANK YOU... meee 7 24c eee nadolusig

Anadolu Anonim Türk Sigorta Şirketi — Q2 2019 Earnings Presentation on 6ix