Anadolu Hayat Emeklilik A.s. · BIST:ANHYT
Anadolu Hayat Emeklilik A.s — Investor Presentation (December 2024)
45 slides from Anadolu Hayat Emeklilik A.s's investor presentation, December 2024
Slide 1: Investor Presentation
Investor Presentation Istanbul, Türkiye – December 2024
Slide 2: Agenda
Agenda 1. Türkiye at a Glance 2. Our Markets • Private Pension System • Life Insurance 3. Corporate Profile 4. Financial Results 2
Slide 3: Türkiye at a Glance
Türkiye at a Glance
Slide 4: Growing Economy / Urgent Need to Increase Domestic Savings
Türkiye at a Glance Growing Economy / Urgent Need to Increase Domestic Savings GDP Average Annual Growth* 7% 6% 5% 4% 3% 2% 1% 0% 1990-1999 2000-2009 2010-2019 2020-2024 Türkiye OECD Euro-19 Domestic Saving Rate (% of GDP)* Weight of Pension Funds in Household Savings (TRY billion)** 34% 20.000 7% 3
Slide 5: Demographic Opportunity Window
Turkey at a Glance Demographic Opportunity Window 2024 2080 Population by Age Population (millions) : 85.4 107.1 10,0% 8,0% Median Age : 34.0 45.0 6,0% 4,0% Fertility : 1.51* 1.65** 2,0% 0,0% 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 0-4 5-9 85+ Propor
Slide 6: Our Markets
Our Markets Private Pension System Life Insurance
Slide 7: Private Pension System: Positioned in Pillar III
Our Markets Private Pension System: Positioned in Pillar III Three-Pillar System Pillar I Pillar II Pillar III State Pension Occupational Private Pension Mandatory Pension Voluntary Securing a minimum Workplace Pensions Opportunity to standard of living with Auto Enrolment increase retirement starte
Slide 8: Pillar III Private Pension System: Important Features
Our Markets Pillar III Private Pension System: Important Features Funds are managed by Started in 2003. asset management 15 companies in 2024. companies. Defined contribution and Minimum retirement age: 56 voluntary participation. Completion of 10 years. Participants can switch funds, Incentives for
Slide 9: Pillar III Private Pension System: Well Designed Structure
Our Markets Pillar III Private Pension System: Well Designed Structure Regulation Administration Monitoring Capital Markets Pension Pension Board (SPK) Accounts Monitoring Center Administered by (EGM) Ministry of Treasury Pension and Finance Companies ISE Settlement and Custody Ministry
Slide 10: Pillar III Private Pension System: Incentives
Our Markets Pillar III Private Pension System: Incentives For Participants For Employers Contribution Stage Investment Stage Income Tax Benefits Employer contributions are • Contributions with a cap of • Investment income of deductible from tax base up to • Withholding tax applies annual legal minim
Slide 11: Pillar III Private Pension System: Charging Structure
Our Markets Pillar III Private Pension System: Charging Structure Management Fee / Entrance Fee Fund Management Fee First 5 years of the contracts No change in fund management fee levels. A new rebate structure came into force in 2021. Maximum limit: 8.5% of the Fund Management Fees (Annual) monthly
Slide 12: Pillar III Private Pension System: Fast Growing System
Our Markets Pillar III Private Pension System: Fast Growing System Pension AUM Growth (TRY billion) Number of Participants 1200 (Thousands) 12000 YOY 91% YOY 62% 1000 10000 CAGR 6% CAGR 57% 800 8000 600 6000 400 4000 200 2000 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 AUM State
Slide 13: Milestones and Pending Regulations
Our Markets Pillar III Private Pension System : Milestones and Pending Regulations Milestones Pension Fund Right to July 2024 Auto January 2024 January 2017 Private January 2013 State October 2001 January 2022 May 2021 July 2021 BEFAS Participants State Pension contribution Enrollment (Pension under
Slide 14: Pillar III Private Pension System: Big Growth Potential
Our Markets Pillar III Private Pension System: Big Growth Potential Pension Funds as a Percentage of GDP 0% 25% 50% 75% 100% 125% 150% 175% 200% 225% Denmark Pension Participants (Pillar III) Iceland Social Security Participants Canada 9.5 Million 25.8 Million Switzerland Netherlands United States A
Slide 15: Pillar III Private Pension System: Key Highlights
Our Markets Pillar III Private Pension System: Key Highlights Total Amount of Contributions Distribution of Contributions Key Figures* by Contract Type** by Marketing Channel** Other Participants : 9.52 Million 3% Individual Participant Funds : TRY 1.002,5 Billion 82% State Contribution Funds : TRY
Slide 16: Private Pension System: Pension Funds
Our Markets Private Pension System: Pension Funds* Reverse Repo; 4,3% Equities; 26,2% Nominal & Real Investment Return of Pension Public Funds Borrowing; 17,9% 81% 65% 48% Others; 15,7% 43% 27% 28% 15% 15% 13% 14% 12% Gold and Gold 6% 3% 11% 2% 3% 5% 10% 2% 0% Backed International Capital -5% -7% Se
Slide 17: Auto Enrolment: Basic Features
Our Markets Auto Enrolment: Basic Features* Automatic Minimum State contribution: enrolment of contribution • 30% on contributions current and new amount • 1,000 TRY initial bonus • 5% of assets at employees set as annuity phase %3 of monthly wage Structural changes Gradual Simplified and implementa
Slide 18: Auto Enrolment System: Incentives
Our Markets Auto Enrolment System: Incentives For Participants Contribution Stage Investment Stage Retirement Stage • Additional state contribution equal to 5% of • Contributions with a cap of annual legal • Investment income of auto enrolment funds savings at retirement date is provided in minimum
Slide 19: Auto Enrolment System: Charging Structure
Our Markets Auto Enrolment System: Charging Structure Management Fee / Entrance Fee Fund Management Fee No management or entrance fee. Fund management fee level is capped. According to the Law enacted in Annual Fund Management Fee is August 2016, no management or capped at a maximum of 0.85%. entran
Slide 20: Auto Enrolment - New Target Market
Our Markets Auto Enrolment - New Target Market WORKFORCE* Social Security Participants (4a&4c) : 22.8 Million Social Security Participants: 25.8 Million Employed : 32.8 Million Work Force : 35.8 Million * Social Security Institution November 2024, Presidency of Strategy and Budget 2024 20
Slide 21: Life Insurance: Underpenetrated Market
Our Markets Life Insurance: Underpenetrated Market Life insurance market has great potentials in Türkiye. Türkiye’s life insurance market is extremely Insurance Premium per Capita (USD) underpenetrated as life premiums’ weight in GDP is only Global Comparison (2023) 1/20 of OECD average. Low penetra
Slide 22: Life Insurance
Our Markets Life Insurance Life Insurance GWP Life Insurance Total GWP (by Product Category) (TRY million) YoY (TOTAL) : 57% 90.000,00 89.000,00 88.000,00 87.000,00 85.369 Term Life : 64% YOY 57% Endowment/Saving : 34% 86.000,00 85.000,00 90.000.000.000 84.000,00 83.000,00 82.000,00 Annuity : 1% 81.
Slide 23: Corporate Profile
Anadolu Hayat Emeklilik Corporate Profile 23
Slide 24: At a Glance
Anadolu Hayat Emeklilik At a Glance Life and Private Private Pension AHE Mobile*** Pension Funds* Contracts** 2.4 Million users TRY 240.6 Billion Established in 1990 as a subsidiary of İşbank 3.6 Million First life insurance company in Turkey The first publicly traded Life & Pension Company si
Slide 25: At a Glance
Anadolu Hayat Emeklilik At a Glance Headquartered in Istanbul Customer Service Center in İstanbul I Organization 12 District Sales Offices Branch Office in TRNC HQ and Regions : 598 II Human Resources Direct Sales Team : 439 Total : 1,037 Total Assets : TRY 259,944 Million Shareholders’ Equity : TRY
Slide 26: Financial Highlights
Anadolu Hayat Emeklilik Financial Highlights (TRY Million) 2023 2024 Change(%) Total GWP and Net Contributions 20,945.7 40,045.4 91 Life Mathematical Provisions 17,867.9 26,775.5 50 Pension AUM 134,422.6 217,286.4 62 Total Assets 162,708.1 259,943.5 60 Shareholders Equity 6,292.5 9,675.9 54 Total Te
Slide 27: Lines of Business
Anadolu Hayat Emeklilik Lines of Business Lines of Business Pension Funds Conservative Balanced Dynamic Aggressive Non- Employer Income Private Individual Sponsored Sponsored Drawdown Pension Plans Group Group Plans Plans Plans • Money Market • Bond • First Debt • Equity • Conservative • Balanced In
Slide 28: Distribution Network
Anadolu Hayat Emeklilik Distribution Network 26 District Sales Offices 430 Agencies 1,012 Branches 626 Licensed Intermediaries 2.227 Licensed Intermediaries 191 Licensed Tele-Sales Agents Private Pensions New Business Channel Mix (Contributions) – 2024 Q3 Tele Sales 4.1% Agency 23.3% İşbank İşbank (
Slide 29: Excellence in Customer Experience / Robust Infrastructure
Anadolu Hayat Emeklilik Excellence In Customer Experience / Robust Infrastructure Financial Systems Integrated BI and Transformation Reporting Platform (GL / FAH) (Atlas) Digitalization Operational Hardware Architecture Excellence Transformation (Exadata) Group Plans Process Automation Commission an
Slide 30: Awards
Anadolu Hayat Emeklilik Awards The ONE Awards Mercury Excellence Awards Tech Brands Türkiye We were deemed worthy of the "Reputable We received an "Honor Award" for Tohum K We were awarded the "Most Technological Brand" in the Pr of the Year" award, coming first in the Priva umbaram project in the C
Slide 31: Awards
Anadolu Hayat Emeklilik Awards Legal 500 GC Powerlist Brandverse Awards Our Legal Consultant Gökhan Gürtan AHE Football Team At Brandverse Awards 2024, organized in was entitled to be included in the 2024 collaboration with Marketing Türkiye-BoomSonar and list of GC Powerlist Turkey, which is We rec
Slide 32: Awards
Anadolu Hayat Emeklilik Awards Smart-i Awards 2024 ALFA Awards 2024 Turkey Call Center Awards The Most Admired Companies in the Business World We won the Golden Smart-i in the We were selected as the “Consumer Brand of the We were awarded the "Commendable “Team of the Year” category with Year” in th
Slide 33: Sustainability
Sustainability Effective governance structure in sustainability activities… Senior level commitment in sustainability management... 33
Slide 34: Sustainability
Sustainability Corporate Social Responsibility International and Local Memberships Employee Experience* • Since 2007, we have been organizing the photo • The first and only UNEP-FI member of Turkish insurance • Female employee rate 58%* contest "Shot's From Life As Seen By Women", sector. (2017) • F
Slide 35: Sustainability
Sustainability Support for renewable energy – Anadolu Hayat Emeklilik enters BIST Sustainability Report Compliant with GRI Standards Sustainability Index Carbon neutral company We continue to be in the index, which we entered in Starting from 2016, we have been offsetting our We publish our sustaina
Slide 36: Strong Market Positioning in Private Pensions
Anadolu Hayat Emeklilik Strong Market Positioning in Private Pensions Participants (Pillar III) Assets Under Management (Pillar III) (TRY million) 16% 16% 16% 17% 16% 16% 16% 19% 18% 18% 18% 18% 18% 18% Market Share Market Share 250.000,00 YOY 9% 1.563.105 1.605.000,00 1.600.000,00 1.595.000,00 1.59
Slide 37: Strong Market Positioning in Private Pensions
Anadolu Hayat Emeklilik Strong Market Positioning in Private Pensions Participants (Auto Enrolment) Assets Under Management (Auto Enrolment) (TRY million) 13% 14% 14% 14% 15% 15% 15% 10% 10% 11% 12% 13% 13% 14% Market Share YOY 6% Market Share CAGR 17% 14.000,00 12.169 1.522.641 1.433.107 12.000,00
Slide 38: Strong Market Positioning in Life Insurance
Anadolu Hayat Emeklilik Strong Market Positioning in Life Insurance Life Insurance GWP (TRY million) Term Life GWP (TRY million) 12% 10% 11% 17% 13% 10% 9% 8% 13% %11 %9 %12 12% 14% Market Share 8.000,00 Market Share 14.000,00 YOY 77% 12.415,4 7.000,00 YOY 74% 6.996,2 12.000,00 6.000,00 10.000,00 5.
Slide 39: Statutory Financials
Anadolu Hayat Emeklilik Statutory Financials Life Technical Profit (TRY million) Pension Technical Profit (TRY million) 600,00 501,3 500,00 1.800,00 1.631,7 1.600,00 CAGR 37% 400,00 1.400,00 289,6 941,8 300,00 1.200,00 1.000,00 192,7 800,00 200,00 145,5 141,4 310,2 429,6 90,7 327,6 600,00 400,00 264
Slide 40: Statutory Financials
Anadolu Hayat Emeklilik Statutory Financials Net Distributable Profit / Dividend to Shareholders (TRY Million) Dividend Payout Ratio (%) 2.737 3000 2500 78 2000 69 64 1500 1.307 1000 1000 686 37 36 510 440 500 500 346 280 360 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Cash Dividend / Net Di
Slide 41: Statutory Financials
Anadolu Hayat Emeklilik Statutory Financials Technical Profit / Operating Expenses (TRY Million) Operating Expenses – 2024 7.000,00 6.290,2 Employee Benefit 6.000,00 Expenses 5.000,00 27% Marketing Expenses 4.000,00 3.075,7 4% 3.000,00 2.132,2 1.551,7 2.000,00 1.228,9 Commission Administration 806,2
Slide 42: Statutory Financials: Summary of Income Statement
Anadolu Hayat Emeklilik Statutory Financials Summary of Income Statement (mio TRY) 2019 2020 2021 2022 2023 CAGR 2024 YOY Non-Life Technical Profit / Loss -1.03 -0.93 -1.85 -5.82 -2.53 25% -0.9 - Life Technical Profit / Loss 264.08 327.61 310.22 429.61 941.76 37% 1,631.76 73% Pension Technical Profi
Slide 43: Statutory Financials: Pension Technical Profit
Anadolu Hayat Emeklilik Statutory Financials Pension Technical Profit (mio TRY) 2019 2020 2021 2022 2023 CAGR 2024 YOY Pension Technical Income 427.72 506.28 617.53 980.63 1,870.45 45% 3,729.31 99% 1- Fund Management Income 304.26 368.73 449.91 726.86 1,261.49 43% 2,256.48 79% 2- Management Fee 58.8
Slide 44: Statutory Financials: Life Technical Profit
Anadolu Hayat Emeklilik Statutory Financials Life Technical Profit (mio TRY) 2019 2020 2021 2022 2023 CAGR 2024 YOY Life Technical Income 1,493.82 2,179.29 3,890.02 5,766.66 12,333.30 70% 16,104.88 31% 1- Earned Premiums (Net of Reinsurer Share) 1,193.74 1,665.37 1,909.07 3,188.25 6,264.38 51% 11,07
Slide 45: www.anadoluhayat.com.tr
www.anadoluhayat.com.tr investorrelations@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. cannot guarantee the accuracy, completeness or correctness of such i
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