Anadolu Hayat Emeklilik A.S. · BIST:ANHYT

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

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

  1. Slide 1: Anadolu Hayat Emeklilik Company Presentation

    ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION May 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  Ongoing comprehensive CRM project  Improve HR quality and thus productivity  Focus on C

  9. Slide 9: Network

    Network Bancassurance 962 branches 284 branches 295 branches 80 branches 4 branches 13 branches 237 Licensed Salesperson Direct Sales 303 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 Overview: Participants and Funds

    Private Pension System in Turkey Overview as of 31.05.2008 5.000 2.000.000 4.000 1.500.000 Participants Number of Fund Size 3.000 ($ Mil) 1.000.000 2.000 500.000 1.000 - 0 2003 2004 2005 2006 2007 2008/5 Funds ($ Mil) Number Of Participants 15

  16. Slide 16: Private Pension System Outlook

    Private Pension System Outlook 2005 As of As of % As of 2006 As of 2007 As of As of 31.12.200 2004 % 31.12.20 Chang 31.12.20 Chang 31.12.20 Chang 31.12.20 2008 31.05.20 3 Change 04 e 05 e 06 e 07 Change 08 Net Asset Value (USD Mio) AHE 4 775% 35 271% 130 188% 374 110% 785 9% 857 Sum of Sector 31 626

  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 31.05.2008 Number Of Market Funds Market Participant Share ($ Mil) Share s AHE 336,489 21.2% 857 20.3% XXX 308,660 19.5% 560 13.2% XXX 241,435 15.2% 999 23.6% XXX 230,931 14.6% 643 15.2% XXX 151,624 9.6% 251 5.9% Other 5 315,231 19.9% 920 21.8% Total 1

  21. Slide 21: Private Pension Funds & Mutual Funds

    Private Pension Funds & Mutual Funds Net Asset Turkish Average Value Treasury Reverse Money Foreign Fund Maturit (USD Equity Bonds Repo Market Inst. Currency Other Type y Million) (%) (%) (%) (%) Sec.(%) (%) PRIVATE PENSION FUNDS 31.12.2007 533 3,917 11.60 68.87 13.66 0.42 0.51 4.94 31.05.2008 467 4

  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 66% 23% 11% 22

  23. Slide 23: Weighted Average Return

    29.12.2006-31.12.2007 Weighted Average Return Weighted Net Asset Value (USD Average Return Private Pension Firm million) (%) Anadolu Hayat Emeklilik 785 21.01 XXX 494 20.49 XXX 55 20.39 XXX 252 19.71 XXX 204 19.49 XXX 120 18.60 XXX 975 18.47 XXX 605 16.37 XXX 217 15.72 XXX 237 14.74 TOTAL 3,943 18.4

  24. Slide 24: Pension Production by Channel

    Pension Production by Channel 2006 2007 2008 / 5 Direct to Customer + 6% 2,1 % 2,5 % Direct Sales Broker 0,4 % 1,0 % 0,6 % Agency 15 % 4,4 % 5,9 % BANCASSURANCE Is Bank 5% 5,5 % 3,6 % Is Bank + Direct Sales 34 % 37,8 % 43,8 % 65,9 % Is Bank + Agency 15 % 18,3 % 18,5 % HSBC 24 % 23,4 % 16,5 % 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 / 3 AHE 25 % 24 % 20 % XXX 13 % 15 % 28 % XXX 9% 11 % 8% XXX 7% 8% 7% XXX 8% 7% 7% XXX 6% 6% 4% Others 31 % 29% 26 % 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 $) % ( Mio $) AHE 33,7 926 37,8 1.276 XXX 13,2 364 N/A N/A XXX 11,0 302 N/A N/A XXX 9,7 267 N/A N/A XXX 6,9 189 N/A N/A XXX 5,9 163 N/A N/A Others 19,6 540 N/A N/A TOTAL 100 2.751 - 3.376 (*) Mathemat

  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 2007 / 2008 / 2006 2007 3 3 148.28 118.21 Endowment 156.951 125.697 0 0 Annuity 40.001 39.394 39.014 39.210 611.06 666.05 Term Life 508.550 711.556 1 3 798.35 823.47 Total 705.502 876.647 5 3 29

  30. Slide 30: Life Portfolio: Total Premium Production

    Life Portfolio Total Premium Production(US$) 2006 2007 2007 / 3 2008 / 3 Endowm 141.076. 153.562. 32.381.3 30.874.95 ent 963 421 98 8 Term 28.232.5 41.863.4 6.810.58 7.283.516 Life 29 16 8 71.795.3 95.543.9 19.588.6 28.597.77 Annuity 50 12 72 7 241.104. 290.969. 58.780.6 66.756.25 Total 842 749 58 2

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

    Life Portfolio Premium Production - New Business (US$) 2006 2007 2008 / 4 Endowment 5.414.278 4.567.671 277.862 24.130.09 Term Life 40.326.182 8.233.553 0 57.602.72 Annuity 79.583.312 7.681.598 3 87.147.09 124.477.16 Total 16.193.013 1 5 31

  32. Slide 32: Life Production by Channel

    Life Production by Channel 2006 2007 2008 / 4 Agency & Broker 44 % 36% 39% Direct to Customer & Direct 23 % 24% 28% Sales BANCASSURANCE Isbank 28 % 33% 17% 32% Isbank & Direct Sales 5% 7% 15% HSBC 1% 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 ($ Mil) 2006 2007 Written Premium 241 291 General Technical Profit -3 7 Total Assets 1.613 2.437 Paid-In Capital 125 151 Shareholders’ Equity 229 297 Math.& Profit Sharing Provisions 939 1.253 Net Profit 18 39 35

  36. Slide 36: Financial Highlights

    Financial Highlights ($ Mil) 2007/3 2008/3 Written Premium 59 70 General Technical Profit -1 0,2 Total Assets 1.711 2.205 Paid-In Capital 127 134 Shareholders’ Equity 234 223 Math.& Profit Sharing Provisions 958 1.138 Net Profit 4 7 36

  37. Slide 37: Financials: Income Statement

    Financials Income Statement ($ Mil) 2006 2007 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,14 0,13 B- NON-LIFE TECHNICAL EXPENSES -0,20 -0,23 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,06 -0,10 C- LIFE TECHNICAL INCOME 391,3 480,4 D- LIFE TECHNICAL EXPENSES -378,7 -457,7 II- LIFE TECHNICAL PROFIT / LOS

  38. Slide 38: Financials: Income Statement

    Financials Income Statement ($ Mil) 2007/3 2008/3 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,03 -0,13 B- NON-LIFE TECHNICAL EXPENSES -0,03 -0,19 I- NON-LIFE TECHNICAL PROFIT / LOSS 0,00 -0,32 C- LIFE TECHNICAL INCOME 97,1 128,0 D- LIFE TECHNICAL EXPENSES -95,4 -127,4 II- LIFE TECHNICAL PROFIT / L

  39. Slide 39: Financials: Balance Sheet

    Financials Balance Sheet ($ Mil) 2006 2007 ASSETS I. LIQUID ASSETS 25,2 53,5 II. MARKETABLE SECURITIES 1.110,4 1.480,5 III. RECEIVABLES 393,5 806,0 IV. INVESTMENTS 66,5 70,9 V. FIXED ASSETS 17,1 21,1 VI. OTHER ASSETS (NET) 0,8 5,0 TOTAL ASSETS 1.613,5 2.437,0 LIABILITIES AND SHAREHOLDERS' EQUITY I.

  40. Slide 40: Financials: Balance Sheet

    Financials Balance Sheet ($ Mil) 2007/3 2008/3 ASSETS I. LIQUID ASSETS 44 51 II. MARKETABLE SECURITIES 1.114 1.372 III. RECEIVABLES 462 755 IV. INVESTMENTS 2 5 V. FIXED ASSETS 73 3 VI. OTHER ASSETS (NET) 17 19 TOTAL ASSETS 1.711 2.205 LIABILITIES AND SHAREHOLDERS' EQUITY I. PAYABLES 473 794 II. TECH

  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 0,90 157.500.000 2004 1,59 278.250.000 2005 2,91 509.250.000 2006 3,33 582.750.000 2007 4,11 719.250.000 2008/5 3,38 591.500.000 42

  43. Slide 43: Thank You

    43 THANK YOU...

Anadolu Hayat Emeklilik A.Ş. — Investor Presentation (May 2008) on 6ix