Anadolu Hayat Emeklilik A.S. · BIST:ANHYT

Anadolu Hayat Emeklilik A.S — Investor Presentation (October 2008)

43 slides from Anadolu Hayat Emeklilik A.S's investor presentation, October 2008

  1. Slide 1: Anadolu Hayat Emeklilik Company Presentation

    ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION October 2008

  2. Slide 2: Index

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

  3. Slide 3: Corporate Vision

    Corporate Vision To be the leading company in Turkey in all aspects of personal financial planning concerning the future of Turkey and the Turkish people 3

  4. Slide 4: Corporate Profile

    Corporate Profile  First life insurance company in Turkey  Established in 1990 as a subsidiary of Türkiye İş Bankası  Market leader in life insurance sector since establishment  Has been operating in pension business since 27.10.2003  The only Life & Pension company publicly traded (since 2000)

  5. Slide 5: Ownership Structure

    Ownership Structure Türkiye İş Bankası A.Ş. 62% Anadolu Anonim Türk Sigorta Şirketi 20% Fortis Bank A.Ş. 1% Milli Reasürans A.Ş. 1% Free Float 16% 5

  6. Slide 6: Total Number of Companies as of 2007

    TOTAL NUMBER OF COMPANIES AS OF 2007 Insurance Companies (Insurance) 50 - Non-Life 28 - Life 11 - Life & Pension 10 - Pension 1 Reinsurance Companies 1 Source: Treasury 6

  7. Slide 7: Turkey Insurance Sector Premium Productions as of 2007

    TURKEY INSURANCE SECTOR Premium Productions as of 2007 Total Premium Per Capita (USD) 133 Non-Life Premium Per Capita (USD) 117 Life Premium Per Capita (USD) 16 Total Premium Production (Billion USD) 9,4 Total Premium Production / GDP 1,28 % Source: Treasury 7

  8. Slide 8: Growth Strategy

    Growth Strategy  Shift Distribution Channel Strategy  Focus on Bancassurance  New Strategic Partnerships with Banks  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: Network

    Network Bancassurance 997 branches 327 branches 321 branches 78 branches 4 branches 14 branches 229 Licensed Salesperson Direct Sales 308 Exclusive Agencies Agents & Brokers 42 Brokers Internet Other Call Centre 9

  10. Slide 10: Lines of Business - Life & Pensions

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 10

  11. Slide 11: Lines of Business

    Lines of Business Pensions Life Insurance  Individual  Endowment  Corporate  Term Life  Annuities 11

  12. Slide 12: Private Pension System in Turkey

    Private Pension System in Turkey Basic Features  Started on 27.10.2003  11 Licensed pension companies, as of 31.12.2007  Third pillar system  Defined contribution  Voluntary participation  Tax incentives for both participant & employer  Fully funded system  Minimum retirement age is 56  Fun

  13. Slide 13: 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

  14. Slide 14: 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

  15. Slide 15: Private Pension System Participants and Fund Size

    Private Pension System in Turkey Overview as of 31.10.2008 8.000 2.000.000 Participants Number of 6.000 1.500.000 Fund Size (YTL Mil) 4.000 1.000.000 2.000 500.000 - 0 2003 2004 2005 2006 2007 2008/10 Funds (YTL Mil) Number Of Participants 15

  16. Slide 16: Private Pension System Outlook

    Private Pension System Outlook As of As of As of As of As of 31.12.200 2004 % 31.12.200 2005 % 31.12.200 2006 As of 2007 31.12.200 2008 31.10.200 3 Change 4 Change 5 Change 31.12.2006 Change 7 Change 8 Net Asset Value (mio YTL) AHE 6 683% 47 272% 175 202% 529 72% 910 31% 1.189 Sum of Sector 32 706%

  17. Slide 17: Private Pension System Sectoral Expectations for 2013

    Private Pension System Sectoral Expectations for 2013 Consolidated Expectations of Pension Companies for 2013 Median Total Number of Participants (Individual) 2,300,000 Total Number of Participants (Group) 953,941 Total Number of Participants (Total) 3,250,000 Total Number of Contracts (Individual)

  18. Slide 18: Key Drivers for Growth in Pension Business

    KEY DRIVERS FOR GROWTH IN PENSION BUSINESS  Economic Improvements in Turkey  Structural reforms  Extended maturities  Purchasing power  Advantages of Pension System  Tax incentives  Transparent system  Participating to the investment process  New Regulations  Vesting  Right of transfers t

  19. Slide 19: Key Drivers for Our Market Leadership

    KEY DRIVERS FOR OUR MARKET LEADERSHIP  Distribution network  Diversified products  Fund performance  Charging structure  Service quality 19

  20. Slide 20: Private Pension System in Turkey: Market Overview

    Private Pension System in Turkey Overview as of 31.10.2008 Number Of Market Funds Market Participant Share (mio YTL) Share s AHE 366,694 21.4% 1,189 20.5% XXX 335,742 19.6% 814 14.1% XXX 269,884 15.8% 1,319 22.8% XXX 248,096 14.5% 868 15.0% XXX 150,786 8.8% 316 5.5% Other 5 342,330 19.9% 1,280 22.1%

  21. Slide 21: Private Pension Funds & Mutual Funds

    Private Pension Funds & Mutual Funds Turkish Average Net Asset Treasury Reverse Money Foreign Fund Maturit Value Equity Bonds Repo Market Inst. Currency Other Type y (mio YTL) (%) (%) (%) (%) Sec.(%) (%) PRIVATE PENSION FUNDS 31.12.2007 533 4,571 11.60 68.87 13.66 0.42 0.51 4.94 31.10.2008 384 5,786

  22. Slide 22: 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 64% 26% 10% 22

  23. Slide 23: Weighted Average Return

    29.12.2006-31.12.2007 Weighted Average Return Weighted Net Asset Value Average Return Private Pension Firm (mio YTL) (%) Anadolu Hayat Emeklilik 910 21.01 XXX 573 20.49 XXX 64 20.39 XXX 292 19.71 XXX 236 19.49 XXX 139 18.60 XXX 1,130 18.47 XXX 701 16.37 XXX 251 15.72 XXX 275 14.74 TOTAL 4,571 18.46

  24. Slide 24: Pension Production by Channel

    Pension Production by Channel 2006 2007 2008 / 9 Direct to Customer + 6% 2,1 % 2,5 % Direct Sales Broker 0,4 % 1,0 % 0,7 % Agency 15 % 4,4 % 6,2 % BANCASSURANCE Is Bank 5% 5,5 % 2,9 % Is Bank + Direct Sales 34 % 37,8 % 43,9 % 66,2 % Is Bank + Agency 15 % 18,3 % 19,4 % HSBC 24 % 23,4 % 17,2 % TEB + A

  25. Slide 25: 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 Minimum Minimum wage wage Deferred till Deferred till ENTRANCE FEE At the phase Can be deferred leaving within 5 leaving within 5 of entrance

  26. Slide 26: Life Insurance in Turkey: Market Shares (Premium Production)

    Life Insurance in Turkey Market Shares (Premium Production) PENSION COMPANY 2006 2007 2008 / 9 AHE 25 % 24 % 22 % XXX 13 % 15 % 20 % XXX 9% 11 % 9% XXX 7% 8% 8% XXX 8% 7% 7% XXX 6% 6% 5% Others 31 % 29% 29 % TOTAL 100 % 100% 100% 26

  27. Slide 27: Life Insurance in Turkey: Market Shares (Mathematical Reserves)

    Life Insurance in Turkey Market Shares (Mathematical Reserves) PENSION COMPANY 2006 2007 % ( Mio YTL) % ( Mio YTL) AHE 34 1.302 35,0 1.420 XXX 13 511 12 476 XXX 11 425 11 460 XXX 10 375 10 406 XXX 7 266 7 277 XXX 6 229 5 221 Others 20 759 20 795 TOTAL 100 3.867 100 4.054 Source: Treasury 27

  28. Slide 28: Life Products / Profit Sharing Rates

    Life Products / Profit Sharing Rates PROFIT YEAR SHARE(%) USD(%) CPI(%) 1998 98 53 70 1999 119 73 69 2000 43 24 39 2001 76 114 69 2002 62 14 30 2003 47 -15 18 2004 29 -4 9 2005 23 0 8 2006 16 5 10 2007 20 -17 8 AVERAGE 53 25 33 28

  29. Slide 29: Life Portfolio: Total Number of Policies

    Life Portfolio Total Number of Policies 2006 2007 2007 / 9 2008 / 9 Endowment 159.263 125.697 87.595 108.229 Annuity 40.001 39.394 39.014 39.347 Term Life 552.223 711.556 611.061 696.136 Total 751.487 876.647 737.670 843.712 29

  30. Slide 30: Life Portfolio: Total Premium Production

    Life Portfolio Total Premium Production(YTL) 2006 2007 2007 / 9 2008 / 9 Endowmen 198.640.49 177.682.06 133.332.1 129.877.83 t 3 9 46 2 101.403.75 111.279.99 78.548.53 107.193.05 Annuity 3 4 5 0 38.823.69 Term Life 40.492.234 49.930.404 28.251.954 4 340.536.47 338.892.46 250.704.3 265.322.83 Total 9

  31. Slide 31: Life Portfolio: Premium Production - New Business

    Life Portfolio Premium Production - New Business (YTL) 2007 2007/9 2008 / 9 Endowment 5.303.844 3.356.043 4.333.417 111.279.9 107.193.05 Annuity 78.548.535 94 0 48.737.27 Term Life 37.912.897 27.783.309 3 165.321.1 119.817.47 139.309.77 Total 12 5 6 31

  32. Slide 32: Life Production by Channel

    Life Production by Channel 2006 2007 2008 / 9 Agency & Broker 44 % 36% 35% Direct to Customer & Direct 23 % 24% 24% Sales Isbank 28 % 33% 18% 36% Isbank & Direct Sales 5% 7% 18% HSBC 3% TEB 2% Total 100 % 100% 100% 32

  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 TRL - $/€ AGENCY total of commission 1.Year 30% 30%- On rates cannot exceed Varies COMMISSION 20 % - premiu 25%. according to ms For other products total 2. Year

  34. Slide 34: Financials

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

  35. Slide 35: Financial Highlights

    Financial Highlights ( Mio YTL) 2006 2007 Written Premium 338 337 General Technical Profit -4 8 Total Assets 2.268 2.825 Paid-In Capital 175 175 Shareholders’ Equity 322 344 Math.& Profit Sharing Provisions 1.319 1.453 Net Profit 25 45 35

  36. Slide 36: Financial Highlights

    Financial Highlights ( Mio YTL) 2007/9 2008/9 Written Premium 249 263 General Technical Profit -0,2 4 Total Assets 2.672 3.190 Paid-In Capital 175 250 Shareholders’ Equity 339 329 Math.& Profit Sharing Provisions 1.411 1.561 Net Profit 28 30 36

  37. Slide 37: Financials: Income Statement

    Financials Income Statement (Mio YTL) 2006 2007 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,2 0,2 B- NON-LIFE TECHNICAL EXPENSES -0,3 -0,3 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,1 -0,1 C- LIFE TECHNICAL INCOME 550,0 556,9 D- LIFE TECHNICAL EXPENSES -532,3 -530,6 II- LIFE TECHNICAL PROFIT / LOSS 17

  38. Slide 38: Financials: Income Statement

    Financials Income Statement (Mio YTL) 2007/9 2008/9 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,12 0,11 B- NON-LIFE TECHNICAL EXPENSES -0,09 -0,24 I- NON-LIFE TECHNICAL PROFIT / LOSS 0,03 -0,13 C- LIFE TECHNICAL INCOME 410,67 448,81 D- LIFE TECHNICAL EXPENSES -398,05 -448,45 II- LIFE TECHNICAL PRO

  39. Slide 39: Financials: Balance Sheet

    Financials Balance Sheet (Mio YTL) 2006 2007 ASSETS I. LIQUID ASSETS 35,4 62,0 II. MARKETABLE SECURITIES 1.560,7 1.716,3 III. RECEIVABLES 553,1 934,4 IV. INVESTMENTS 93,5 82,2 V. FIXED ASSETS 24,0 24,4 VI. OTHER ASSETS (NET) 1,2 5,8 TOTAL ASSETS 2.268 2.825 LIABILITIES AND SHAREHOLDERS' EQUITY I. PA

  40. Slide 40: Financials: Balance Sheet

    Financials Balance Sheet (Mio YTL) 2007/9 2008/9 ASSETS I. LIQUID ASSETS 54 81 II. MARKETABLE SECURITIES 1.655 1.871 III. RECEIVABLES 841 1.202 IV. INVESTMENTS 93 4 V. FIXED ASSETS 24 24 VI. OTHER ASSETS (NET) 5 8 TOTAL ASSETS 2.672 3.190 LIABILITIES AND SHAREHOLDERS' EQUITY I. PAYABLES 856 1.223 II

  41. Slide 41: Stock Data

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 41

  42. Slide 42: Anadolu Hayat Emeklilik Stock Data

    ANADOLU HAYAT EMEKLİLİK Stock Data Year-end Year MCAP($) Price ($) 2003 0,63 157.500.000 2004 1,10 275.000.000 2005 2,03 507.500.000 2006 2,32 580.000.000 2007 2,88 720.000.000 2008/10 0,88 220.000.000 42

  43. Slide 43: Thank You

    43 THANK YOU...

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