Anadolu Hayat Emeklilik A.s. · BIST:ANHYT
Anadolu Hayat Emeklilik A.s — Investor Presentation (June 2016)
52 slides from Anadolu Hayat Emeklilik A.s's investor presentation, June 2016
Slide 1: Anadolu Hayat Emeklilik A.Ş. Company Presentation
ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION June 2016
Slide 2: Contents
Contents Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 2
Slide 3: Turkish Economy 2015
Turkish Economy 2015 Population - Million (End of 2015 ) 78,74 Urban Population (%) 92,10% Civil Employment – Million (Age15+) 26,62 Unemployment Rate (%) 10,30% Gross Domestic Product-Current Prices (TL billion) 1.954 Gross Domestic Product (USD billion) 720 GDP Growth Rate (%) 4,00% GDP per Capita
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 first publicly traded Life & Pension company Has been operating in pension business since 27.10.2003 Market leader in life insurance and private pension busi
Slide 5: Ownership Structure
Anadolu Hayat Emeklilik Ownership Structure 5
Slide 6: Insurance Sector in Turkey
INSURANCE SECTOR IN TURKEY Total Number of Companies - 31.12.2015 Insurance Companies 64 - Non-Life 38 - Life 7 - Life & Pension 19 Reinsurance Companies 1 Source: Insurance Association of Turkey 6
Slide 7: Insurance Sector in Turkey: Premium Productions 2015
INSURANCE SECTOR IN TURKEY Premium Productions - 2015 2015 Total Premium Per Capita (USD) 145 Non-Life Premium Per Capita (USD) 127 Life Premium Per Capita (USD) 18 Total Premium Production (Billion USD) 11,4 Total Premium Production / GDP 1,59% Source: Treasury & Insurance Association of Turkey 7
Slide 8: Private Pension System in Turkey
PRIVATE PENSION SYSTEM IN TURKEY Contributions as of 31.12.2015 Total Pension Fund System Contributions Per Capita (USD) 173 Total Pension Fund System Contributions (Billion USD) 13,7 Total Pension Fund System Contributions / GDP 1,9% Total Pension System Fund Size / GDP 2,5% Source: Pension Monitor
Slide 9: Growth Strategy
Anadolu Hayat Emeklilik Growth Strategy Distribution Channel Strategy • Focus on Bancassurance • Expanding Direct Sales Team • Improving Agency Profile Improving Customer Service Quality Improving HR quality Focus on Corporate Pension Business 9
Slide 10: Corporate Profile / Lines of Business / Financials / Stock Data
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 Completion of 10 years in the system Minimum retiremen
Slide 13: Pension Products: Charging Structure
Pension Products Charging Structure – Initial Regulation (Until 2013) Entrance Fee Management Fee Fund Management Fee • At the phase of entrance to • To cover administrative • To cover fund management the System for each expenses expenses pension account • On contributions • On NAV of each fund • Ca
Slide 14: Private Pension System: Incentives, Initial vs. 2013 Regulation
PRIVATE PENSION SYSTEM IN TURKEY Incentives –Initial vs. 2013 Regulation Contribution Stage Investment Stage Benefit payments • Contributions were tax • Investment income of pension • %25 of retirement payments deductible up to %10 of funds are tax exempt. were exempt from income tax. income with a
Slide 15: Pension Products: Charging Structure, 2016 Regulation
Pension Products Charging Structure – What Is New in 2016 Regulation ? 2013 Regulation New Regulation •Can be charged only once for the first a) The total of entrance fee and annual account of the participant management fee cannot exceed 8,5% •Can be deferred for a maximum of 10 years, of the gross
Slide 16: Potential Regulation Changes
PRIVATE PENSION SYSTEM IN TURKEY Potential Regulation Changes • A change in the fee structure will be in force by Fee the beginning of year 2016, to increase participants’ satisfaction and to come down to international fee levels. Levels • Pension companies will be able to charge performance based f
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 1367 Branches 191 Branches * 213 Branches 5 Banks & 1878 Branches 105 Branches 2 Branches Direct Sales 541 Licensed Salesperson Agents & 290 Exclusive Agencies Brokers 62 Brokers Internet Other Call Centre * By July 2013 there
Slide 19: Pension Production By Channel
Anadolu Hayat Emeklilik Pension Production By Channel (Initial Contribution Payments) 2014 2015 2016/6 2016/6 Direct to Customer 2% 1% 1% Broker 1% 1% 1% Agency 30% 17% 16% BANCASSURANCE 67% 74% 82% Is Bank 1% 4% 3% Is Bank + Direct Sales 52% 64% 79% Is Bank + Agency 13% 6% 0% HSBC* 0% 0% 0% Other 1
Slide 20: Key Drivers For Growth In Pension Business
Key Drivers For Growth In Pension Business • Extended maturities Economic • Government’s target to increase savings Environment • Purchasing power • Lack of confidence in the social security in Turkey system • New regulations Advantages • Government support of Pension • Transparency of the system •
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: Overview
Private Pension System In Turkey Overview as of 30.06.2016 60.000 7.000.000 Number Of Participants Fund Size (TL mio) 50.000 6.000.000 5.000.000 40.000 4.000.000 30.000 3.000.000 20.000 2.000.000 10.000 1.000.000 - 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016/6 Funds (TL mio) N
Slide 23: Pension System Outlook
Pension System Outlook 2013 % 2014 % 2015 % 2016 % 31.12.2012 Change 31.12.2013 Change 31.12.2014 Change 31.12.2015 Change 30.06.2016 Fund Size (Million TL) AHE 4.278 22% 5.232 41% 7.386 21% 8.938 14% 10.233 Sector 20.357 29% 26.281 44% 37.799 27% 47.983 14% 54.799 Market Share 21,0% 19,9% 19,5% 18,
Slide 24: Private Pension System In Turkey
Private Pension System In Turkey Overview as of 30.06.2016 24
Slide 25: AHE Pension Funds – Investment Instruments
AHE Pension Funds – Investment Instruments As of 30.06.2016 Conservative Balanced Aggressive • T-Bills, Government • Treasury Bills • Turkish Stocks Bonds & Lease • Government Bonds Certificates • BRIC Stocks • Government Lease • Private Sector Bonds & • Mutual Funds Certificates Bills • Government
Slide 26: Pension Funds: Investment Instruments
Pension Funds Investment Instruments – Sector Distribution T-Bills & Private Money Foreign T.Deposits Number Gov. Reverse Sector Bill Market Currency & of Funds Net Asset Value Equity Bonds Repo & Bonds Inst. Sec. Other (TL) (%) (%) (%) (%) (%) (%) (%) PRIVATE PENSION FUNDS 31.12.2014 241 37.799.083
Slide 27: Pension Funds: Net Asset Values
Pension Funds Net Asset Values as of 30.06.2016 27
Slide 28: Pension Funds: Weighted Average Returns
Pension Funds Weighted Average Returns as of 30.06.2016 Weighted Average Returns (%) 28
Slide 29: Pension Funds' Weighted Average Return Performance
Anadolu Hayat Emeklilik Pension Funds’ Weighted Average Return Performance Weighted Average Returns (%) % 29
Slide 30: Life Insurance In Turkey: Market Shares
Life Insurance In Turkey Market Shares (Top 7 in Premium Production) 30
Slide 31: Life Insurance: Market Shares (Mathematical Reserves)
Life Insurance In Turkey Market Shares (Mathematical Reserves) 2013 2014 2015 % (Mio TL) % (Mio TL) % (Mio TL) ANADOLU HAYAT 34% 1.881 33% 1.725 32% 1.698 XXX 9% 477 9% 478 10% 531 XXX 15% 805 13% 666 10% 526 XXX 3% 154 5% 272 8% 435 XXX 8% 421 8% 415 8% 407 XXX 6% 349 6% 334 6% 338 Others 26% 1440
Slide 32: Profit Sharing Rates – TL Based Life Products
Anadolu Hayat Emeklilik Profit Sharing Rates – TL Based Life Products 32
Slide 33: Life Portfolio: Number of Policies 2013-2015
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2013 - 2015 33
Slide 34: Life Portfolio: Number of Policies 2015/6-2016/6
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2015/6 – 2016/6 34
Slide 35: Life Portfolio: Total Premium Production 2013-15
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2013 - 2015 35
Slide 36: Life Portfolio: Total Premium Production 2015/6-2016/6
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2015/6 – 2016/6 36
Slide 37: Life Portfolio: New Business Premium 2013-2015
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) – 2013 - 2015 37
Slide 38: Life Portfolio: New Business Premium 2015/6-2016/6
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) – 2015/6 – 2016/6 38
Slide 39: Life Production By Channel
Anadolu Hayat Emeklilik Life Production By Channel (Initial Premium Production) 2016/6 2014 2015 2016/6 Agency & Broker 15% 9% 7% Direct to Customer 13% 11% 4% BANCASSURANCE 72% 80% 89% Is Bank 66% 74% 83% Is Bank & 6% 6% 6% Direct Sales & Agency Total 100% 100% 100% 39
Slide 40: 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 channels expenses expenses • Charged on • Charged on • Charged on premiums premiums current year’s returns • No limits since • No limits 0
Slide 41: Corporate Profile / Lines of Business / Financials / Stock Data
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 41
Slide 42: Changes in Accounting Policy
Changes in Accounting Policy Investment properties and owner occupied properties, which were recorded at their historical cost, have been started to record with their fair values only as of 30 September 2015. In this context, expert reports regarding to investment properties have been prepared by th
Slide 43: Financial Highlights & Key Metrics
Anadolu Hayat Emeklilik Financial Highlights & Key Metrics TL Million 2013 2014 2015 2016/6 Written Premium 395 366 403 216 General Technical Profit 52 67 108 63 Life Technical Profit 63 64 86 52 Private Pension Technical Profit -11 3 22 11 Period Net Profit 84 107 145 86 Private Pension Net Fund Va
Slide 44: Dividend Payout
Anadolu Hayat Emeklilik Dividend Payout 2012* 2013* 2014* 2015* Gross Profit (TL) 109.052.075** 102.015.935** 123.174.016** 180.135.820** Net Profit (TL) 82.952.075 86.705.935 95.059.016 149.357.820 Net Distributable Profit (TL) 78.873.301 82.447.605 90.177.092 141.930.704 Dividend to Shareholders (
Slide 45: Capital Adequacy
Anadolu Hayat Emeklilik Capital Adequacy 31.12.2015 (TL) Capital required for Asset Risks 157.124.350 Capital required for Reinsurance Risks 1.294.274 Capital Required for Excessive Premium Increases 0 Capital Required for Outstanding Claims 2.820.075 Capital Required for Hardware Risks 17.989.688 C
Slide 46: Income Statement 2014-2015
Anadolu Hayat Emeklilik Income Statement (mio TL) 2014 2015 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,68 0,45 NON-LIFE TECHNICAL EXPENSES -0,71 -0,69 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,03 -0,24 LIFE TECHNICAL INCOME 550,43 602,51 LIFE TECHNICAL EXPENSES -486,63 -516,03 II- LIFE TECHNICAL PROFIT
Slide 47: Income Statement 2015/6-2016/6
Anadolu Hayat Emeklilik Income Statement (mio TL) 2015/6 2016/6 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,27 0,14 NON-LIFE TECHNICAL EXPENSES -0,29 -0,41 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,02 -0,27 LIFE TECHNICAL INCOME 316,20 275,26 LIFE TECHNICAL EXPENSES -272,78 -223,51 II- LIFE TECHNICAL PR
Slide 48: Balance Sheet 2014-2015
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2014 2015 ASSETS I- LIQUID ASSETS 216 303 II- MARKETABLE SECURITIES 2.417 2.380 IIII- RECEIVABLES 7.458 9.023 IV- INVESTMENTS 13 13 V- FIXED ASSETS 133 155 VI- OTHER ASSETS (NET) 11 15 TOTAL ASSETS 10.248 11.889 LIABILITIES AND SHAREHOLDERS’ EQUITY I- P
Slide 49: Balance Sheet 2015/6-2016/6
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2015/6 2016/6 ASSETS I- LIQUID ASSETS 192 268 II- MARKETABLE SECURITIES 2.390 2.378 IIII- RECEIVABLES 8.156 10.381 IV- INVESTMENTS 13 13 V- FIXED ASSETS 146 157 VI- OTHER ASSETS (NET) 10 16 TOTAL ASSETS 10.907 13.213 LIABILITIES AND SHAREHOLDERS’ EQUITY
Slide 50: Corporate Profile / Lines of Business / Financials / Stock Data
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 50
Slide 51: Stock Data
Anadolu Hayat Emeklilik Stock Data Year MCAP(Million $) 2004 192 2005 352 2006 402 2007 500 2008 162 2009 650 2010 717 2011 372 2012 623 2013 771 2014 777 2015 813 2016/6 755 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
Anadolu Hayat Emeklilik A.Ş. — Investor Presentation (June 2016) on 6ix