Anadolu Hayat Emeklilik A.s. · BIST:ANHYT
Anadolu Hayat Emeklilik A.s — Investor Presentation (September 2014)
52 slides from Anadolu Hayat Emeklilik A.s's investor presentation, September 2014
Slide 1: Anadolu Hayat Emeklilik A.Ş. Company Presentation
ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION September 2014
Slide 2: Contents
Contents Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 2
Slide 3: Turkish Economy 2013
Turkish Economy 2013 Population (End of 2013 ) 76.667.864 Urban Population (%) 91,3 Civil Employment (Age15+) 25.524.000 Unemployment Rate (%) 9,7 Gross Domestic Product-Current Prices (TL billion) 1.562 Gross Domestic Product (USD billion) 820 GDP Growth Rate (%) 4,00 GDP per Capita - Current Price
Slide 4: Corporate Profile
Anadolu Hayat Emeklilik 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 and private pe
Slide 5: Ownership Structure
Anadolu Hayat Emeklilik Ownership Structure 5
Slide 6: Insurance Sector in Turkey
INSURANCE SECTOR IN TURKEY Total Number of Companies - 31.12.2013 Insurance Companies 62 - Non-Life 36 - Life 8 - Life & Pension 18 Reinsurance Companies 1 Source: Insurance Association of Turkey 6
Slide 7: Insurance Sector in Turkey: Premium Productions
INSURANCE SECTOR IN TURKEY Premium Productions 2013 Total Premium Per Capita (USD) 166 Non-Life Premium Per Capita (USD) 143 Life Premium Per Capita (USD) 23 Total Premium Production (Billion USD) 12,7 Total Premium Production / GDP 1,55% Source: Treasury & Insurance Association of Turkey 7
Slide 8: Private Pension System in Turkey
PRIVATE PENSION SYSTEM IN TURKEY Contributions as of 31.12.2013* Total Pension Fund System Contributions Per Capita (USD) 150 Total Pension Fund System Contributions (Billion USD) 11,5 Total Pension Fund System Contributions / GDP 1,4% Total Pension System Fund Size / GDP 1,7% * Temporary Source: Pe
Slide 9: Growth Strategy
Anadolu Hayat Emeklilik Growth Strategy Distribution Channel Strategy • Focus on Bancassurance • Expanding Direct Sales Team • Improve agency profile Improve Customer Service Quality Improve HR quality Focus on Corporate Pension Business 9
Slide 10: Contents
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 10
Slide 11: Lines of Business
Anadolu Hayat Emeklilik Lines of Business Private Pension Life Insurance Endowment / Permanent Life Individual Term Life Corporate Annuities Unemployment Critical illness 11
Slide 12: Private Pension System in Turkey: Basic Features
PRIVATE PENSION SYSTEM IN TURKEY Basic Features Started on 27.10.2003 19 Licensed pension companies Third pillar system Defined contribution Voluntary participation Incentives for both participant & employer Fully funded system Minimum 10 years of contribution payment Minimum retir
Slide 13: Tax Incentives – Former Regulation
PRIVATE PENSION SYSTEM IN TURKEY Tax Incentives – Former Regulation Contribution Stage Investment Stage Benefit payments • Contributions are tax • Investment income of • %25 of retirement deductible up to %10 pension funds are tax payments are exempt of income with a cap of exempt. from income tax.
Slide 14: Tax Incentives – Current Regulation
PRIVATE PENSION SYSTEM IN TURKEY Tax Incentives – Current Regulation Government Investment Stage Benefit payments Contribution • Government installs an • Investment income of • Withholding tax applies amount equal to 25% of pension funds are tax only on the investment each contribution made exempt.
Slide 15: New Regulation – What Is New?
PRIVATE PENSION SYSTEM IN TURKEY New Regulation – What Is New? 1. Government will install an amount equal to 25% of each contribution made by the participant, with a cap of 25% of annual minimum wage. 2. Withholding tax applies only on the investment income (enforcement date: 29.08.2012). 3. Preciou
Slide 16: Pension Products: Charging Structure
Pension Products Charging Structure – What Is New ? Entrance Fee Management Fee Fund Management Fee • At the phase of entrance to the • To cover administrative expenses • To cover fund management expenses System for each pension account • On contributions • On NAV of each fund • Can be deferred till
Slide 17: Private Pension System In Turkey
Private Pension System In Turkey 17
Slide 18: Distribution Network
Anadolu Hayat Emeklilik Distribution Network Total of Bancassurance 1342 Branches 311 Branches * 187 Branches 5 Banks & 1929 Branches 87 Branches 2 Branches Direct Sales 378 Licensed Salesperson Agents & 313 Exclusive Agencies Brokers 59 Brokers Internet Other Call Centre * By July 2013 there a
Slide 19: Pension Production By Channel
Anadolu Hayat Emeklilik Pension Production By Channel (Initial Contribution Payments) 2012 2013 2014/9 2014/9 Direct to Customer 3% 6% 2% Broker 1% 1% 1% Agency 22% 21% 30% BANCASSURANCE 73% 71% 67% Is Bank 1% 1% 1% Is Bank + Direct Sales 41% 58% 52% Is Bank + Agency 12% 8% 13% HSBC* 19% 4% 0% Other
Slide 20: Key Drivers For Growth In Pension Business
Key Drivers For Growth In Pension Business Economic • Extended maturities • Purchasing power Environment • Lack of confidence in the social security in Turkey system • New regulations Advantages • Incentives of Pension • Transparent system • Participating to the investment process System • Mobility
Slide 21: Key Drivers For Our Market Leadership
Key Drivers For Our Market Leadership Distribution network Diversified products Fund performance Charging structure Service quality 21
Slide 22: Private Pension System In Turkey: Participants and Fund Size
Private Pension System In Turkey Overview as of 30.09.2014 40.000 6.000.000 Number Of Participants 35.000 Fund Size (TL mio) 5.000.000 30.000 4.000.000 25.000 20.000 3.000.000 15.000 2.000.000 10.000 1.000.000 5.000 - 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014/9 Funds (TL mio) Number O
Slide 23: Pension System Outlook
Pension System Outlook 2011 % 2012 % 2013 % 2014 % 31.12.10 Change 31.12.11 Change 31.12.12 Change 31.12.13 Change 30.09.14 Fund Size (Million TL) AHE 2.620 16% 3.031 41% 4.278 22% 5.232 25% 6.522 Sector 12.017 19% 14.341 42% 20.357 29% 26.281 27% 33.382 Market Share 21,8% 21,1% 21,0% 19,9% 19,5% Nu
Slide 24: Private Pension System In Turkey: Number of Participants
Private Pension System In Turkey Overview as of 30.09.2014 Number of Participants 1.800.000 1.600.000 1.400.000 1.200.000 1.000.000 800.000 600.000 400.000 200.000 0 XXX AHE XXX XXX XXX Other 14 24
Slide 25: Lapse Ratio: Sector Average vs. AHE
Private Pension System In Turkey Lapse Ratio: Sector Average vs. Anadolu Hayat Emeklilik 01.01.2004 - 10.10.2014, Weekly Data Source: Pension Monitoring Center 25
Slide 26: AHE Pension Products Fund Menu
AHE Pension Products Fund Menu As of 30.09.2014 Conservative Balanced Aggressive Cash Fund International Mixed Fund Equity Fund Eurobond $/€ Fund Conservative Fund Alternative Balanced F. Agressive Fund Contribution Fund Balanced Fund Bond Fund BRIC Fund Gold Fund 54 % 29 % 17 % 26
Slide 27: Pension Funds & Mutual Funds
Pension Funds & Mutual Funds Money T-Bills & Market Average Foreign T.Deposits Maturity Net Asset Value G. Bonds Reverse Inst. Currency & (Days) (mio TL) Equity (%) (%) Repo (%) (%) Sec.(%) Other (%) PRIVATE PENSION FUNDS 02.01.2014 923 26.186 14,04 58,88 6,83 1,24 0,92 18,09 01.10.2014 1121 33.352
Slide 28: Pension Funds: Net Asset Values
Pension Funds Net Asset Values as of 30.09.2014 28
Slide 29: Pension Funds: Weighted Average Returns
Pension Funds Weighted Average Returns as of 30.09.2014 Weighted Average Returns (%) 29
Slide 30: Pension Funds' Weighted Average Return Performance
Anadolu Hayat Emeklilik Pension Funds’ Weighted Average Return Performance Weighted Average Returns (%) % 30
Slide 31: Life Insurance In Turkey: Market Shares
Life Insurance In Turkey Market Shares (Top 7 in Premium Production) 31
Slide 32: Life Insurance In Turkey: Market Shares (Mathematical Reserves)
Life Insurance In Turkey Market Shares (Mathematical Reserves) 2011 2012 2013 % (Mio TL) % (Mio TL) % (Mio TL) ANADOLU HAYAT 36% 2.025 36% 1.966 34% 1.881 XXX 11% 612 12% 669 15% 805 XXX 10% 549 9% 507 9% 477 XXX 8% 463 8% 441 8% 421 XXX 7% 416 7% 379 6% 349 XXX 5% 285 6% 313 6% 319 Others 22% 1202
Slide 33: Profit Sharing Rates – TL Based Life Products
Anadolu Hayat Emeklilik Profit Sharing Rates – TL Based Life Products 33
Slide 34: Life Portfolio: Total Number of Policies 2011-2013
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2011 - 2013 34
Slide 35: Life Portfolio: Total Number of Policies 2013/9 vs 2014/9
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2013/9 vs. 2014/9 35
Slide 36: Life Portfolio: Total Premium Production 2011-13
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2011 - 2013 36
Slide 37: Life Portfolio: Total Premium Production 2013/9 vs 2014/9
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2013/9 vs. 2014/9 37
Slide 38: Life Portfolio: New Business Premium Production 2011-2013
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) - 2011 - 2013 38
Slide 39: Life Portfolio: New Business Premium 2013/9 vs 2014/9
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) – 2013/9 vs. 2014/9 39
Slide 40: Life Production By Channel
Anadolu Hayat Emeklilik Life Production By Channel (Initial Premium Production) 2014 / 9 2012 2013 2014 / 9 Agency & Broker 18% 16% 18% Direct to Customer 17% 19% 15% BANCASSURANCE 65% 65% 67% Is Bank 60% 60% 61% Is Bank & Direct Sales 5% 5% 6% & Agency Total 100% 100% 100% 40
Slide 41: Life Products: Charging Structure
Life Products Charging Structure Agency Commission Management Fee Fund Charge • Paid out to our • To cover • To cover fund distribution administrative management expenses channels expenses • Charged on current • Charged on • Charged on year’s returns premiums premiums • Max. 15% of the • No limits s
Slide 42: Contents
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 42
Slide 43: Financial Highlights & Key Metrics
Anadolu Hayat Emeklilik Financial Highlights & Key Metrics TL Million 2011 2012 2013 2014/9 Written Premium 348 367 395 258 General Technical Profit 34 53 52 44 Life Technical Profit 34 33 63 39 Private Pension Technical Profit 0 20 -11 5 Period Net Profit 65 80 83 63 Private Pension Net Fund Value
Slide 44: Dividend Payout
Anadolu Hayat Emeklilik Dividend Payout 2010* 2011* 2012* 2013* Gross Profit (TL) 88.179.608 76.335.800 109.052.075** 102.015.935** Net Profit (TL) 72.744.608 62.920.800 82.952.075 86.705.935 Net Distributable Profit (TL) 69.176.772 59.687.324 78.873.301 82.447.605 Dividend to Shareholders (TL) 40.0
Slide 45: Capital Adequacy
Anadolu Hayat Emeklilik Capital Adequacy 31.12.2011 31.12.2012 31.12.2013 (TL) (TL) (TL) Capital required for Non-Life Branch 186.997 196.369 115.435 Capital required for Life Branch 106.373.431 108.496.682 109.078.343 Capital Required for Pension Branch 9.450.175 12.569.576 14.952.948 TOTAL CAPITAL
Slide 46: Income Statement 2012-2013
Anadolu Hayat Emeklilik Income Statement (mio TL) 2012 2013 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,68 0,68 NON-LIFE TECHNICAL EXPENSES -0,66 -0,66 I- NON-LIFE TECHNICAL PROFIT / LOSS 0,02 0,02 LIFE TECHNICAL INCOME 502,67 598,51 LIFE TECHNICAL EXPENSES -469,26 -535,10 II- LIFE TECHNICAL PROFIT /
Slide 47: Income Statement 9M 2013 vs 9M 2014
Anadolu Hayat Emeklilik Income Statement (mio TL) 2013 / 09 2014/ 09 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,47 0,51 NON-LIFE TECHNICAL EXPENSES -0,86 -0,51 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,39 0,00 LIFE TECHNICAL INCOME 454,56 397,06 LIFE TECHNICAL EXPENSES -407,74 -357,50 II- LIFE TECHNICA
Slide 48: Balance Sheet 2012-2013
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2012 2013 ASSETS I- LIQUID ASSETS 142 139 II- MARKETABLE SECURITIES 2.682 2.406 IIII- RECEIVABLES 4.350 5.308 IV- INVESTMENTS 9 9 V- FIXED ASSETS 26 27 VI- OTHER ASSETS (NET) 13 13 TOTAL ASSETS 7.222 7.902 LIABILITIES AND SHAREHOLDERS’ EQUITY I- PAYABLE
Slide 49: Balance Sheet 2013-2014
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2013 / 09 2014 / 09 ASSETS I- LIQUID ASSETS 126 150 II- MARKETABLE SECURITIES 2.503 2.344 IIII- RECEIVABLES 5.080 6.597 IV- INVESTMENTS 9 9 V- FIXED ASSETS 27 33 VI- OTHER ASSETS (NET) 11 11 TOTAL ASSETS 7.756 9.144 LIABILITIES AND SHAREHOLDERS’ EQUITY
Slide 50: Contents
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 50
Slide 51: Stock Data
Anadolu Hayat Emeklilik Stock Data Year MCAP(Million $) 2004 209 2005 380 2006 433 2007 540 2008 175 2009 703 2010 775 2011 403 2012 673 2013 832 2014 / 09 768 51
Slide 52: Thank You
THANK YOU… For further information: investorrelations@anadoluhayat.com.tr Website: www.anadoluhayat.com.tr DISCLAIMER: The information in this document has been obtained by Anadolu Hayat Emeklilik A.Ş. from sources believed to be reliable, however, Anadolu Hayat Emeklilik A.Ş. can not guarantee the
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