Anadolu Hayat Emeklilik A.S. · BIST:ANHYT

Anadolu Hayat Emeklilik A.S — Investor Presentation (May 2010)

45 slides from Anadolu Hayat Emeklilik A.S's investor presentation, May 2010

  1. Slide 1: Anadolu Hayat Emeklilik Company Presentation

    ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION May 2010

  2. Slide 2: Index

    Index Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 2

  3. Slide 3: Corporate Profile

    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 sector since establishment

  4. Slide 4: Ownership Structure

    Ownership Structure Türkiye İş Bankası A.Ş. 62% Anadolu Anonim Türk Sigorta Şirketi 20% Milli Reasürans A.Ş. 1% Free Float 17% 4

  5. Slide 5: Total Number of Companies as of 30.06.2009

    TOTAL NUMBER OF COMPANIES AS OF 30.06.2009 Insurance Companies (Insurance) 55 - Non-Life 32 - Life 10 - Life & Pension 12 - Pension 1 Reinsurance Companies 1 Source: Treasury 5

  6. Slide 6: Turkey Insurance Sector Premium Productions

    TURKEY INSURANCE SECTOR Premium Productions 2009 / 06 Total Premium Per Capita (USD) 56 Non-Life Premium Per Capita (USD) 47 Life Premium Per Capita (USD) 9 Total Premium Production (Billion USD) 3,97 Total Premium Production / GDP 2,80 % Source: Treasury 6

  7. Slide 7: Turkey Pension System Contributions as of 31.12.2009

    TURKEY PENSION SYSTEM Contributions as of 31.12.2009 Total Pension Fund System Contributions Per Capita (USD) 68 Total Pension Fund System Contributions (Billion USD) 4,75 Total Pension Fund System Contributions / GDP 0,77 % Source: Treasury 7

  8. Slide 8: Growth Strategy

    Growth Strategy  Distribution Channel Strategy  Focus on Bancassurance  Expanding Direct Sales Team  Improve agency profile  Improve Customer Service Quality  Improve HR quality and thus productivity  Focus on Corporate Pension Business 8

  9. Slide 9: Lines of Business - Life & Pensions

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 9

  10. Slide 10: Lines of Business

    Lines of Business Pensions Life Insurance  Individual  Endowment  Corporate  Term Life  Annuities 10

  11. Slide 11: Private Pension System in Turkey

    Private Pension System in Turkey Basic Features  Started on 27.10.2003  13 Licensed pension companies  Third pillar system  Defined contribution  Voluntary participation  Tax incentives for both participant & employer  Fully funded system  Minimum 10 years of payment  Minimum retirement age

  12. Slide 12: Private Pension System in Turkey: Tax Incentives

    Private Pension System in Turkey Tax Incentives  Contribution Stage  Contributions are tax deductible up to %10 of income with a cap of annual minimum wage.  Employer contributions are also tax deductible subject to the same limits  Investment Stage  Investment income of pension funds are tax e

  13. Slide 13: Private Pension System in Turkey

    Private Pension System in Turkey TREASURY PENSION MONITORING CENTRE Reporting of ASSET Pension Accounts Accounts MANAGEMENT ** PENSION ACCOUNT PARTICIPANT & MONEY AND ADMINISTRATION FUND SPONSOR CAPITAL * ADMINISTRATION *** MARKETS Reporting of Reporting of Funds Funds Pension Accounts Accounts CUST

  14. Slide 14: Key Drivers for Growth in Pension Business

    KEY DRIVERS FOR GROWTH IN PENSION BUSINESS  Economic Improvements in Turkey  Structural reforms  Extended maturities  Purchasing power  Lack of confidence in the social security system  Advantages of Pension System  Tax incentives  Transparent system  Participating to the investment process

  15. Slide 15: Key Drivers for Our Market Leadership

    KEY DRIVERS FOR OUR MARKET LEADERSHIP  Distribution network  Diversified products  Fund performance  Charging structure  Service quality 15

  16. Slide 16: Network

    Network Bancassurance 1101branches 336 branches 334 branches 85 branches 3 branches 3 branches 279 Licensed Salesperson Direct Sales 291 Exclusive Agencies Agents & Brokers 50 Brokers Internet Other Call Centre 16

  17. Slide 17: Pension Production by Channel

    Pension Production by Channel 2008 2009 2010/5 Direct to Customer 3,4 % 5,0% 13,0% + Direct Sales Broker 1,0 % 1,0% 2,0 % Agency 6,2 % 7,0% 13,0% BANCASSURANCE Is Bank 2,5 % 5,0% 6,0 % 56 % Is Bank + Direct 43,9 % 45,0% 37,0 % Sales Is Bank + Agency 19,0 % 16,0% 13,0 % HSBC 17,8 % 17,0% 14,0 % TEB +

  18. Slide 18: Life Production by Channel

    Life Production by Channel 2008 2009 2010 / 3 Agency & Broker 43 % 34 % 36 % Direct to Customer & Direct 30 % 36 % 37 % Sales Isbank 16 % 15 % 17 % Isbank & Direct Sales & 10 % 14 % 9% 26% Agency HSBC 1% 1% 1% Total 100 % 100% 100% 18

  19. Slide 19: Private Pension System Overview: Participants and Funds

    Private Pension System in Turkey Overview as of 10.05.2010 12.000 2.500.000 10.000 2.000.000 Participants Number of 8.000 Fund Size (TL Mil) 1.500.000 6.000 1.000.000 4.000 2.000 500.000 - 0 2003 2004 2005 2006 2007 2008 2009 2010/4 Funds (TL Mil) Number Of Participants 19

  20. Slide 20: Private Pension System Outlook

    Private Pension System Outlook As of 2005 % As of 2006 As of 2007 As of 2008 As of 2009 As of 2010 As of 31.12.2004 Change 31.12.2005 Change 31.12.2006 Change 31.12.2007 Change 31.12.2008 Change 31.12.2009 Change 10.05.2010 Net Asset Value (mio TL) AHE 47 272% 175 202% 529 72% 910 45% 1.323 48% 1.95

  21. Slide 21: Private Pension System Sectoral Expectations

    Private Pension System Sectoral Expectations Consolidated Expectations of Pension Companies 2015 2020 Number of Participants 4.000.000 5.500.000 Net Asset Value (Billion TL) 48,00 115,00 Source: Pension Monitoring Center 21

  22. Slide 22: Private Pension System in Turkey Market Share

    Private Pension System in Turkey Overview as of 10.05.2010 Number Of Market Funds Market Participant Share (mio TL) Share s AHE 461,520 22.0% 2,138 21.6% XXX 426,240 20.3% 1,450 14.6% XXX 317,307 15.1% 2,150 21.7% XXX 273,059 13.0% 1,523 15.4% XXX 161,623 7.7% 549 5.5% Other 8 460,525 21.9% 2,106 21

  23. Slide 23: Pension Products Fund Menu

    Pension Products Fund Menu Conservative Balanced Aggressive  Cash Fund  Intnl. Mixed Fund  Equity Fund  Conservative Fund  Eurobond $ Fund  Aggressive Fund  Bond Fund  Eurobond € Fund  Balanced Fund 55% 30% 15% 23

  24. Slide 24: Private Pension Funds & Mutual Funds

    Private Pension Funds & Mutual Funds Averag Turkish Money e Net Asset Treasury Reverse Market Foreign Fund Maturit Value Equity Bonds Repo Inst. Currency Other Type y (mio TL) (%) (%) (%) (%) Sec.(%) (%) PRIVATE PENSION FUNDS 31.12.200 9 340 9,049 9.55 69.76 14.74 0.21 0.37 5.36 10.05.201 0 400 9,91

  25. Slide 25: Weighted Average Return

    31.12.2009-30.04.2010 Weighted Average Return * Net Asset Value Weighted Average Private Pension Firm (mio TL) Return (%) XXX 28 4.85 Anadolu Hayat Emeklilik 2,166 4.54 XXX 553 4.46 XXX 92 4.38 XXX 26 3.85 XXX 343 3.20 XXX 562 3.19 XXX 21 2.98 XXX 1,520 2.91 XXX 2,159 2.77 XXX 459 2.67 XXX 583 2.44

  26. Slide 26: Pension Products Charging Structure & Minimum Contribution

    Pension Products Charging Structure & Minimum Contribution Group Pension Individual Pension Plans Explanation Charging Method Limit Plans (#3) (#117) 0 to ½ of ½ of minimum minimum wage At the phase Can be deferred wage Deferred till ENTRANCE FEE of entrance to till the leaving of½ Deferred till

  27. Slide 27: Life Insurance in Turkey: Market Shares (Premium Production)

    Life Insurance in Turkey Market Shares (Premium Production) PENSION COMPANY 2007 2008 2009 AHE 24 % 22% 27% XXX 15 % 19% 19% XXX 11 % 9% 7% XXX 8% 8% 10% XXX 7% 7% 5% XXX 6% 5% 4% Others 29% 30% 28% TOTAL 100% 100% 100% 27

  28. Slide 28: Life Insurance in Turkey: Market Shares (Mathematical Reserves)

    Life Insurance in Turkey Market Shares (Mathematical Reserves) PENSION COMPANY 2008 2009 % ( Mio TL) ( Mio TL) AHE 35% 1.618 1.884 XXX 12% 550 N/A XXX 11% 497 N/A XXX 10% 444 N/A XXX 6% 269 N/A XXX 6% 270 N/A Others 21% 972 N/A TOTAL 100% 4.620 N/A Source: Treasury 28

  29. Slide 29: Life Products / Profit Sharing Rates

    Life Products / Profit Sharing Rates YEAR PROFIT SHARE(%) USD(%) CPI(%) 2000 43 24 39 2001 76 29

  30. Slide 30: ANADOLU HAYAT

    ANADOLU HAYAT S, By] EMEKLILIK

  31. Slide 31: ANADOLU HAYAT

    ANADOLU HAYAT S, By] EMEKLILIK

  32. Slide 32: ANADOLU HAYAT

    ANADOLU HAYAT S, By] EMEKLILIK

  33. Slide 33: Life Products Charging Structure

    Life Products Charging Structure Chargin Explanatio Individual Life Group Life g Limit n Products Products Method For term life products total of commission TRL - $/€ AGENCY rates cannot exceed 1.Year 30%- COMMISSION On 25%. 20 % Varies - premiu For other products total according to ms 2. Year 5%-

  34. Slide 34: Financials

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 34

  35. Slide 35: Financial Highlights

    Financial Highlights ( Mio TL) 2008 2009 Written Premium 345 500 General Technical Profit 18 19 Total Assets 3.400 4.438 Paid-In Capital 250 250 Shareholders’ Equity 350 430 Math.& Profit Sharing Provisions 1.608 1.934 Net Profit 53 79 35

  36. Slide 36: Financial Highlights

    Financial Highlights ( Mio TL) 2009 / 3 2010 / 3 Written Premium 99 96 General Technical Profit 8 16 Total Assets 3.586 4.661 Paid-In Capital 250 250 Shareholders’ Equity 340 404 Math.& Profit Sharing Provisions 1.657 1.936 Net Profit 23 30 36

  37. Slide 37: Allocation of Period Profit

    Allocation of Period Profit 2009 2008 2007 Net Profit (TL) 79.284.428 52.905.238 45.481.212 Net Distributable Profit (TL) 75.661.865 50.211.779 43.472.277 Dividend to Shareholders (TL) 55.000.000 42.000.000 35.000.000 - Cash 55.000.000 42.000.000 15.000.000 - Bonus Share - - 20.000.000 Cash / Net Pr

  38. Slide 38: Capital Adequacy

    Capital Adequacy 31.12.2009 31.12.2008 31.12.2007 (TL) (TL) (TL) 28.753 37.191 41.903 Capital required for Non-Life Branch Capital required for Life Branch 96.160.222 78.870.306 71.856.085 Capital Required for Pension Branch 6.757.190 5.181.501 4.150.396 TOTAL CAPITAL REQUIRED 102.946.165 84.088.998

  39. Slide 39: Financials: Income Statement

    Financials Income Statement (Mio TL) 2008 2009 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,5 0,3 B- NON-LIFE TECHNICAL EXPENSES -0,4 -0,2 I- NON-LIFE TECHNICAL PROFIT / LOSS 0,1 0,1 C- LIFE TECHNICAL INCOME 629,5 724,7 D- LIFE TECHNICAL EXPENSES -618,2 -717,4 II- LIFE TECHNICAL PROFIT / LOSS 11,3

  40. Slide 40: Financials: Income Statement

    Financials Income Statement (Mio TL) 2009 / 3 2010 / 3 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,08 0,04 B- NON-LIFE TECHNICAL EXPENSES -0,07 -0,06 I- NON-LIFE TECHNICAL PROFIT / LOSS 0,01 -0,02 C- LIFE TECHNICAL INCOME 178,8 144,80 D- LIFE TECHNICAL EXPENSES -174,5 -133,20 II- LIFE TECHNICAL PR

  41. Slide 41: Financials: Balance Sheet

    Financials Balance Sheet (Mio TL) 2008 2009 ASSETS I. LIQUID ASSETS 75,3 121,5 II. MARKETABLE SECURITIES 1.948,9 2.316,4 III. RECEIVABLES 1.334,7 1.965,8 IV. INVESTMENTS 4 5,8 V. FIXED ASSETS 24,4 24 VI. OTHER ASSETS (NET) 12,7 4,5 TOTAL ASSETS 3.400 4.438 LIABILITIES AND SHAREHOLDERS' EQUITY I. PAY

  42. Slide 42: Financials: Balance Sheet

    Financials Balance Sheet (Mio TL) 2009 / 3 2010 / 3 ASSETS I. LIQUID ASSETS 71 158 II. MARKETABLE SECURITIES 2.002 2.347 III. RECEIVABLES 1.463 2.119 IV. INVESTMENTS 4 6 V. FIXED ASSETS 24 24 VI. OTHER ASSETS (NET) 22 7 TOTAL ASSETS 3.586 4.661 LIABILITIES AND SHAREHOLDERS' EQUITY I. PAYABLES 1.501

  43. Slide 43: Stock Data

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 43

  44. Slide 44: Stock Data

    ANADOLU HAYAT EMEKLİLİK Stock Data Year-end Year MCAP($) Price ($) 2003 0,53 132.500.000 2004 0,93 232.500.000 2005 1,71 427.500.000 2006 1,96 490.000.000 2007 2,43 607.500.000 2008 0,79 197.500.000 2009 3,16 790.000.000 2010 / 04 3,09 772.500.000 44

  45. Slide 45: Thank You

    45 THANK YOU...

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