Agesa Hayat Ve Emeklilik A.s. · BIST:AGESA
Agesa Hayat Ve Emeklilik A.s — Q1 2023 Earnings Presentation
25 slides from Agesa Hayat Ve Emeklilik A.s's earnings presentation, May 4, 2023
Slide 1: Presentation to Investors Q1 2023 Earning Release
Presentation to Investors Q1 2023 Earning Release 4 May 2023 Gizli
Slide 2: Key Financial Results
Key Financial Results Gizli
Slide 3: Summary and Outlook
Summary and Outlook AgeSA strengthened its leadership in both Pension AuM and Life & PA AgeSA net profits are depressed due to lower financial income premium production among private companies with support of regarding Equity market loss despite the significant increase in sustainable growth in Life
Slide 4: A Story of Solid Profitable Growth
Historical Track Record of Value Creation CAGR YoY 2018 2022 2018-22 Q1 2023 2022-23 66% Leadership among private companies’ Pension and AE AUM Pension AUM (inc AE) 17.3 bTL 75.6 bTL 45% 81.0 bTL Leadership among private companies’ Total Life&PA GWP Total GWP (Life+PA) 565 mTL 3.717 mTL 60% 1.528 mT
Slide 5: Financials
Financials Gizli
Slide 6: Summary P&L from Segmental Reporting
Summary P&L from Segmental Reporting (1) 2019 2020 2021 2022 CAGR Q1 2022 Q1 2023 YoY Credit-Linked Life 417 550 938 1.538 55% 235 785 234% Life RoP & Savings 431 667 967 2.046 68% 400 670 67% Other Life & Personal Accident 140 115 115 132 -2% 40 73 81% Solid IFRS Reporting Total Gross Written Premi
Slide 7: Solid and Resilient Technical Profitability with Operating Leverage Potential
Solid and Resilient Technical Profitability with Operating Leverage Potential Technical Profit (mTL) (2) Expense Ratio (%)(1,2) Expense ratio=(Opex)/(Management Reporting Proft Before Tax-Opex) 56,2% 51,5% 51,4% 48,5% 46,0% 45,4% 39,0% CAGR: 41% 1.936 CAGR: 41% 2018 2019 2020 2021 2022 Q1 2022 Q1 20
Slide 8: Conservative Though Opportunistic Approach on Investments
… Conservative Though Opportunistic Approach on Investments… Total Investment and Other Income (TLm) (2) Shareholders’ Asset Portfolio – Q1 2023 (mTL)(1) (2) 399 504 682 1.023 145 Total: 2.754 mTL Source: Company information. Management Reporting: IFRS Financials excluding inflation accounting effec
Slide 9: Flexible Dividend Policy Focused on Growth
Flexible Dividend Policy Focused on Growth Dividend Policy Objective set amongst core shareholders to aim at distributing 50% of AgeSA’s Turkish GAAP-based distributable profit Solvency ratio of 150% level is set as comfort level in our risk framework for evaluating our distributable profit. 150 mTL
Slide 10: Overview - Business Lines
Overview - Business Lines Gizli
Slide 11: Differentiated Management of Trends & Dynamics per Segment
Differentiated Management of Trends & Dynamics per Segment Pension* Credit-Linked Life RoP & Savings Life** AUM – Inc. State contribution (mTL) Gross Written Premium (mTL) Gross Written Premium (mTL) FMC % (inc. State contribution) 1,4 1,3 1,3 1,1 1,2 1,3 1,2 CAGR: 55% CAGR: 68% 66% 1.538 2.046 CAGR
Slide 12: Pension
Pension (1) Sustainable Growth and Scale Ambitions Pensions AUM including State Contribution (mTL) Private Pension Fund Mix 66% 80.968 CAGR: +45% 75.640 48.740 43.502 30.473 72.758 78.005 23.133 17.304 42.094 47.155 29.414 16.868 22.358 78 2018 2019 2020 2021 2022 Q1 2022 Q1 2023 bTL AE AuM 436 774
Slide 13: Credit Linked and RoP&Savings Life
Credit Linked and RoP&Savings Life Sustainable and Resilient Growth Model Fuelled by Multidistribution Channel Structure Credit Linked GWP (mTL) RoP&Savings GWP (mTL) CAGR: +55% CAGR: +68% 1.538 2.046 234% 67% 938 785 967 550 667 670 417 431 401 235 2019 2020 2021 2022 Q1 2022 Q1 2023 2019 2020 2021
Slide 14: Solvency II Value of New Business
Solvency II Value of New Business Gizli
Slide 15: MCVNB to Solvency VNB with Real World Interest Rates
MCVNB to Solvency 2 VNB with Real World Interest Rates Changes between MC VNB and SII VNB: MC VNB includes an allowance for the increase in statutory mathematical reserves; whereas SII PV MC SII VNB PVFP allows for the increase in Best Profits VNB PV VNB Estimate Liabilities. (allowing MC VNB TO f
Slide 16: Overview of SII VNB and MC VNB Concepts
Overview of SII VNB and MC VNB Concepts VNB (mTL) & Profit Margin (%) SII VNB will be calculated using Best Estimate YTD YTD % SII w/RW Liabilities, including a Risk Margin, and also VNB MC SII w/RW vs MC showing the effect of real world yields (taken as RFR +3%). Credit Life 309 359 16% ROP&Savings
Slide 17: Disclaimer
Disclaimer The information in this presentation has been prepared by AgeSA Hayat ve Emeklilik A.Ş. (the “Company”) solely for use at a presentation concerning the Company, its proposed listing on the Borsa İstanbul. This presentation does not constitute or form part of, and should not be construed a
Slide 18: Thank you
Thank you Gizli
Slide 19: Appendix
Appendix Gizli
Slide 20: Total Life Premium Production to Expand
Total Life Premium Production to Expand Life + Personal Accident Q1 2023 / Q1 2022 YoY Total Premium Growth Rate DSF+Agency * Non-Credit Linked 93% 436 mTL (29%) Bancassurance 43% 307 mTL (20%) Non-Credit Linked 234% 785 mTL (51%) Bancassurance Credit Linked 126% 1.528 mTL (Total Company) (Total Com
Slide 21: Solid Sales Culture through a Multidistribution Platform
Solid Sales Culture through a Multidistribution Platform to Expand Scale and Penetration in Pension and Life Exclusive 15-year Largest and most distribution Bancassurance productive direct sales Direct sales force (DSF) force in the sector agreement # Branches Akbank: ~ 800 # FAs: ~ 600 (covering 17
Slide 22: Summary of P&L from SFRS Reporting
Summary of P&L from SFRS Reporting 2018 2022 CAGR Q1 2022 Q1 2023 YoY Pension Technical Profit 303 733 25% 171 350 105% Life Technical Profit 277 1.394 49% 287 527 83% Non-Life Technical Profit 62 77 5% 14 25 78% Total Technical Profit 642 2.173 36% 472 902 91% Total Expenses (Including Commissions)
Slide 23: Reconciliation between IFRS & Statutory Profit
Reconciliation between IFRS & Statutory Profit IFRS vs. Statutory Profit for the Period (mTL) Profit for the Period Reconciliation (mTL) 2018 2019 2020 2021 2022 CAGR Q1 2022 Q1 2023 YoY CAGR: 52% 1.127 IFRS Profit for the Period 214 258 350 541 1.127 52% 261 243 -7% Equalisation Reserve write- 875
Slide 24: Capital-Light Business Model & Strong Solvency Position
Capital-Light Business Model & Strong Solvency Position Comfortable solvency ratios driven by a measured approach to risk and new product introductions, which affords the business scope and flexibility pursuing growth options and / or returning cash to shareholders Regulatory Capital Requirement Sol
Slide 25: Other Life & Personal Accident
Other Life & Personal Accident A Complementary Profit Pool for the Group GWP (mTL) Technical Profit (mTL) CAGR: -2% CAGR: -2% 59 60 56 140 55 133 81% 186% 115 115 73 27 40 10 2019 2020 2021 2022 Q1 2022 Q1 2023 2019 2020 2021 2022 Q1 2022 Q1 2023 Market Share % (in terms of GWP) Market Share Of AgeS
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