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

Anadolu Anonim Turk Sigorta Sirketi A.s — Q3 2018 Earnings Presentation

22 slides from Anadolu Anonim Turk Sigorta Sirketi A.s's earnings presentation, Oct 31, 2018

  1. Slide 1: Financial Results 3Q18 Conference Call

    Financial Results 3Q18 Conference Call October 31, 2018 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  Q&A session  Profitability 2

  3. Slide 3: Sector premium growth and market ranking

    18M9 17M9 GPW Share GPW Share • Pool effect in premium growth (mn TRY) (mn TRY) Allianz 4.121 12,1% Allianz 3.610 12,7% Anadolu 4.078 12,0% Anadolu 3.331 11,7% Aksigorta 2.446 7,2% Axa 2.096 7,4% • MTPL strategies Axa 2.294 6,7% Mapfre 1.994 7,0% Mapfre 1.891 5,6% Aksigorta 1.756 6,2% Top 10 22.062

  4. Slide 4: Sector premium production by branch

    BRANCHES 18M9 17M9 Change (YoY) (%) MTPL 11.484 9.189 25,0 MOD 5.437 4.860 11,9 Health 4.436 3.599 23,3 General Losses 4.097 3.430 19,4 Fire 4.772 4.077 17,1 Accident 1.314 1.217 8,0 General Liability 988 731 35,1 Marine Transportation 589 471 25,0 Financial Losses 237 230 2,9 Watercraft 225 162 38,

  5. Slide 5: Increasing premium production and improving financials

    • Increasing Premium Production • Premium Production – MTPL Excluded (mn TRY) 17M9 18M9 YoY(%) (mn TRY) 17M9 18M9 YoY(%) Anadolu 3.331 4.078 22,4 Anadolu 2.381 2.943 23,6 Sector 34.061 28.420 19,9 Sector 19.231 22.577 17,4 • Improving financials • Premium Increase In Health Branch (mn TRY) 17M9 18M9

  6. Slide 6: 3Q18 GPW branch breakdown

    17Q3 17Q4 18Q1 18Q2 18Q3 YoY(%) MOD 219 273 234 268 244 11,4 MTPL 329 393 376 377 382 16,1 FIRE 153 243 209 310 211 37,9 HEALTH 99 136 218 208 106 7,1 OTHER 198 296 341 319 275 38,9 TOTAL 998 1.341 1.378 1.482 1.218 22,0 3Q18 Breakdown GPW Branch Breakdown 35% OTHER MOD 30% 22,6% 20,0% 25% 20% HEALT

  7. Slide 7: Market share and rank by branch

    Rank Market Share BRANCHES 17M9 18M9 Growth 18M9 18M9 MOD 680 746 1 14% 10% Fire 570 730 1 15% 28% General Liability 127 195 1 20% 53% Watercraft 58 80 1 36% 40% Aircraft 22 30 1 62% 33% Aircraft Liability 19 19 1 32% 1% MTPL 949 1.135 2 10% 20% Health 402 532 3 12% 32% General Losses 307 395 3 10%

  8. Slide 8: Premium production by distribution channel

    Premium Production - Sector Premium Production - ANSGR Other Direct Direct 4% Other 3% 8% Broker 12% 12% Broker 10% Bank 15% Bank 13% Agency 62% Agency 61% 8

  9. Slide 9: Accident and Health

    18Q2 18Q3 Change • Significant decrease in both GPW 37,4 33,3 -11,0% net paid claims and claims ratio Accident Earned Premiums Claims (Net) 32,7 9,5 30,8 8,6 -5,8% -9,5% • The most profitable branch Claims Ratio 29,0% 27,9% -3,8% 18Q2 18Q3 Change GPW 208,0 106,4 -48,8% Earned Premiums 146,8 156,7 6,

  10. Slide 10: Land Vehicles and General Losses

    18Q2 18Q3 Change • Increased repair and replacement costs due to GPW 268,1 244,2 -8,9% Land Earned Premiums 244,7 253,6 3,6% depreciated TRY Vehicles Claims (Net) Claims Ratio 187,9 76,8% 236,8 93,4% 26,0% 21,6% 18Q2 18Q3 Change GPW 121,8 93,5 -23,2% • Increasing earned premiums General Earned Premi

  11. Slide 11: MTPL and General Liability

    18Q2 18Q3 Change • Increasing reserves due to GPW 377,2 381,6 higher inflation 1,2% Earned Premiums 231,5 247,2 6,8% • Negative effect of MTPL Claims (Net) 223,2 291,5 30,6% depreciated TRY Claims Ratio 96,4% 117,9% 22,3% 18Q2 18Q3 Change GPW 68,8 73,9 7,4% • Strong premium growth and General Earned

  12. Slide 12: Fire

    18Q2 18Q3 Change • Increased outstanding reserves GPW 310,0 211,1 due to increase in foreign currency -31,9% Earned Premiums 97,7 112,7 15,4% Fire Claims (Net) 71,5 115,0 60,8% Claims Ratio 73,3% 102,1% 39,3% 12

  13. Slide 13: Combined Ratio

    Combined Ratio 17Q3 18Q2 18Q3 17M9 18M9 MOD 110,6% 109,0% 119,2% 104,1% 108,9% MTPL 117,2% 119,6% 131,4% 109,9% 123,9% Fire 123,2% 106,7% 137,7% 114,5% 111,2% Health 93,2% 111,3% 100,5% 108,4% 110,5% P.Accident 64,6% 68,0% 66,8% 61,3% 70,4% General Liability 180,4% 153,2% 152,8% 182,6% 153,0% Genera

  14. Slide 14: Total assets, technical reserves, cash and equity

    Total Assets (mn TRY) (*) Tech. Reserves (mn TRY) 13% 7.965 5.024 6.929 4.456 5.840 3.914 4.677 2.934 3.773 2.282 2014 2015 2016 2017 18M9 2014 2015 2016 2017 18M9 Cash and Marketable Sec. (mn TRY) (*) Shareholders' Equity (mn TRY) 5.359 1.639 1.589 4.505 1.202 1.223 3.832 1.020 2.776 2.250 2014 201

  15. Slide 15: Market cap, equity and P/BV

    (TRY) Change 18Q3 2017 (18Q3-2017) Mcap 2.160mn 1.550mn 39% Equity (Book Value) 1.589mn 1.639mn -3% P / BV 1,36 0,95 43% 2500 1,6% 1,4% 1,4% 2000 2.160 1,2% 1,0% 1500 1,0% 0,8% 1.639 1.589 1.550 0,7% 0,7% 0,8% 1000 1.202 1.223 0,6% 1.020 965 795 0,4% 500 710 0,2% 0 0,0% 2014 2015 2016 2017 18Q3 Mcap

  16. Slide 16: Net Profit 3Q18

    Change (%) Change (%) P&L 18Q3 17Q3 18Q2 (YoY) (QoQ) Tech. Income (*) 988 799 849 24% 16% Tech. Expenses -1.178 -898 -952 31% 24% Net Financial Inc. + Other Exp. (*) 267 114 182 134% 47% Deferred Tax 49 13 -9 277% -644% Gross Profit 126 28 70 350% 80% Tax -66 -15 -7 340% 843% Net Profit 60 13 63 362

  17. Slide 17: Net Profit 18M9

    Change (%) P&L 18M9 17M9 (YoY) Tech. Income (*) 2.681 2.513 7% Tech. Expenses -3.037 -2.717 12% Net Financial Inc. + Other Exp. (*) 650 326 100% Deferred Tax 55 17 224% Gross Profit 349 139 152% Tax -117 -40 193% Net Profit 232 99 134% Income from subsidiary -34 -28 21% Net Profit - dividend income

  18. Slide 18: Assets and liabilities

    Assets 30.09.18 31.12.17 Liabilities 30.09.18 31.12.17 Cash + Marketable Sec. 5.359 4.608 Technical Provisions 5.024 4.456 Equity Participations 559 690 Shareholders' Equity 1.589 1.639 Other Assets 2.047 1.734 Other Liabilities 1.352 937 Assets 7.965 7.032 Liabilities 7.965 7.032 18

  19. Slide 19: Assets, shareholders' equity, ROAE and ROE

    9.000 30,0% 25,9% 8.000 7.965 25,0% 7.000 7.032 19,7% 6.000 17,7% 20,0% 5.974 5.000 4.888 13,2% 15,0% 4.688 4.000 10,5% 4.117 3.773 9,9% 3.000 8,7% 3.410 10,0% 7,6% 7,4% 2.000 5,9% 2.408 1.927 5,0% 1.639 1.589 1.000 1.223 1.202 1.051 232 72 64 88 184 0 0,0% 2014 2015 2016 2017 18M9 Assets Shareholde

  20. Slide 20: Investment portfolio

    Stocks Bonds 3% In 18M9; 9% Dividend from ANHYT 34 mn TRY Funds Investment Income * 702 mn TRY 11% Average Portfolio Income ~ 20,1% * ANHYT dividend excluded. TRY 4,69 bn Deposits 77% TRY 4,12 bn at 31.12.2017 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

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