Turkiye Sigorta A.s. · BIST:TURSG
Turkiye Sigorta A.s — H1 2023 Earnings Presentation
22 slides from Turkiye Sigorta A.s's earnings presentation, Jul 31, 2023
Slide 1: Earnings Presentation 1H 2023
Its strength is implicit in its name... Earnings Presentation 1H 2023 July 31, 2023 1
Slide 2: 1H23 - Summary of Financial Results
1H23 - Summary of Financial Results Gross Written Premiums Key Catalysts Fueling Unprecedented Profitability Growth Cumulative, Million ₺ Remarkable technical profitability through +117% proactive strategy and successful claims management, alongside robust premium growth #1 in GWP 24,402 Production
Slide 3: Building on Momentum: Exceptional Performance Propels Profitability Ratios to New Heights
Building on Momentum: Exceptional Performance Propels Profitability Ratios to New Heights Cumulative RoAE & RoAA Cumulative Loss Ratio & Combined Ratio Solvency & Dividend Details Net CAR TS RoAE TS RoAA TS Loss Ratio TS COR (1H23) Sector RoAE Sector RoAA Sector Loss Ratio Sector COR 172 % vs. regul
Slide 4: Persistent Premium Growth and a Tactfully Balanced Portfolio Structure
Persistent Premium Growth and a Tactfully Balanced Portfolio Structure GWP Production GWP Mix by Major Branches Quarterly, Million ₺ Cumulative +119% Health/ Other Sickness 5% 4% MOD 10% General Losses 12,175 12,227 26% 9,067 Non-Bank Agriculture 87% Production Bank-Heavy 85% Production Other 13% 5,
Slide 5: GWP Production by Major Branches
GWP Production by Major Branches Türkiye Sigorta GWP Production by Major Branches Cumulative, Million ₺ 24,402 Annual Change Türkiye Sigorta 1,126 Other Main Branches Türkiye Market Sector 1,097 Sickness/Health Sector Sigorta Share Ranking 2,548 MOD General Losses 67% 95% 31% 1 36% F&ND 191% 135% 20
Slide 6: GWP Production by Distribution Channel
GWP Production by Distribution Channel Türkiye Sigorta GWP Production by Distribution Channel Cumulative, Million ₺ w/ 3 Exclusive Bancassurance State-owned Agreement 10 + 10 year Banks Dist. Channels Türkiye Sector 24,402 YoY Change Sigorta 1,504 Broker Bank Channel Share in Bank Channel Total Prem
Slide 7: Soaring Technical Profitability Sets a Historic Record
Soaring Technical Profitability Sets a Historic Record Technical Profit Walk by Major Branches Improvement in Distressed Branches of the Previous Year Cumulative, Million ₺ Loss Ratios Unexpired Risk Reserves Cumulative, Net Cumulative, Million ₺ 1H22 1H23 143% 160 Sickness 12 115% -160 & 270 Genera
Slide 8: COR Details
COR Details Combined Ratio Combined Ratio by Major Branches Cumulative, Net 1H23, Net Loss Ratio Expense Ratio Commission Ratio Accident 1% 6% 39% 45% Loss Ratio 132% Expense Ratio 125% 126% General Losses -15% 59% 12% 55% 12% 11% 11% Commission Ratio 15% 15% 14% 97% 94% F&ND 33% 19% 11% 63% 11% 11%
Slide 9: Investment Income & Total AUM
Investment Income & Total AUM Assets Under Management AUM Breakdown Total Investment Income Million ₺ Million ₺ Investment Inc. Transferred Eurobond 3% to Technical Division +190% 6% Eurobond Net Investment Income FX-Protected Dep. 3% Bank Deposits -FX 7% 6% FX-Protected Dep. +59% 4% Bank Deposits -
Slide 10: P&L Analysis
P&L Analysis Summary P&L (million ₺) 1H22 1H23 YoY Technical Income 3,347 11,767 252% Earned Premiums (Net of Reinsurer Share) 2,522 8,322 230% Strong Premium growth & declining URRs on improving loss ratio Investment Income From Non-Technical Division 764 3,330 336% Growing investment portfolio wit
Slide 11: Balance Sheet Growth
Balance Sheet Growth Total Assets Total Reserves Shareholder’s Equity Million ₺ Million ₺ Million ₺ +149% +120% +130% +62% +49% +44% 45,661 22,244 28,199 9,244 14,886 18,310 6,421 10,131 4,011 1H22 2022 1H23 1H22 2022 1H23 1H22 2022 1H23 Türkiye Sigorta| 11
Slide 12: Well-Established Franchise with a Strong Footprint
Well-Established Franchise with a Strong Footprint Headcount Agency Network Bank Branch Broker • Operational since 1957 Network • Market Leader with 13.1% share in total premium production • Rebranded as Türkiye Sigorta post- merger of 3 state-owned non-life 1,610 3,695 3,734 121 insurers QoQ Change
Slide 13: SuperApp Beyond Insurance (On Air!)
SuperApp Beyond Insurance (On Air!) Platforms & Efficiency Customer Satisfaction Rota Sales Platform Chatbot • Churn & Experience Module (ML) 120K calls were made with • Advanced Chat Module 33% 386K 11 mn ₺ 24/7 service. • Renewed World of Advantages effort improvement Policies Freight Savings 32K
Slide 14: Appendix
Appendix Page 15 Non-Life Main Branch GWP Production Page 16 GWP Production by Major Branches Page 17 Technical Profit by Major Branches Page 18 COR by Major Branches Page 19 Summary Balance Sheet Page 20 Summary Income Statement Türkiye Sigorta| 14
Slide 15: Non-Life Main Branch GWP Production (1H23)
Non-Life Main Branch GWP Production (1H23) Gross Written Premium Market Share Main Branches Branch Share Market Share Sector Ranking (Million ₺) Change (YoY) General Losses 6,426 26.3% 30.8% -5.3 pps 1 Fire and Natural Disasters 5,150 21.1% 20.0% +3.9 pps 1 MTPL 6,285 25.8% 12.3% -3.5 pps 2 MOD 2,54
Slide 16: GWP Production by Major Branches
GWP Production by Major Branches Quarterly GWP Production Cumulative GWP Production Million ₺ Million ₺ Premium Production 2Q22 3Q22 4Q22 1Q23 2Q23 QoQ YoY 1H22 9M22 2022 3M23 1H23 YoY General Losses 1,309 982 2,498 3,795 2,632 -31% 101% 3,855 4,837 7,335 3,795 6,426 -2% F&ND 902 978 1,358 2,477 2,6
Slide 17: Technical Profit by Major Branches
Technical Profit by Major Branches Quarterly Technical Profit* Cumulative Technical Profit* Million ₺ Million ₺ Technical Profit 2Q22 3Q22 4Q22 1Q23 2Q23 QoQ YoY 1H22 9M22 2022 3M23 1H23 YoY General Losses 127 136 187 213 387 81% 205% 270 406 593 213 601 123% F&ND 89 236 322 172 725 321% 719% 177 41
Slide 18: COR by Major Branches
COR by Major Branches Loss Ratio Expense Ratio Commission Ratio Combined Ratio Cumulative Cumulative Cumulative Cumulative Combined Ratio 1H22 2022 1H23 1H22 2022 1H23 1H22 2022 1H23 1H22 2022 1H23 General Losses 54.4% 52.9% 58.9% 13.7% 14.3% 11.6% -10.6% -16.7% -15.3% 57.5% 50.5% 55.3% F&ND 49.4% 3
Slide 19: Summary Balance Sheet
Summary Balance Sheet Balance Sheet, Million ₺ 1H22 1H23 Share (%) YoY Change Cash and Cash Equivalents 6,914 17,097 37% 147% Receivables from Main Operations 4,182 9,996 22% 139% Financial Assets 5,178 14,140 31% 173% Tangible and Intangible Assets 433 772 2% 78% Other Assets 1,603 3,656 8% 128% TO
Slide 20: Summary Income Statement
Summary Income Statement Income Statement, Million ₺ 1H22 1H23 YoY Change Gross Written Premiums 11,246 24,402 117% Technical Balance (Technical Profit) 177 3,885 2098% Earned Premiums (Net of Reinsurer Share) 2,522 8,322 230% Incurred Losses (Net of Reinsurer Share) -2,490 -6,007 141% Other Technic
Slide 21: Disclaimer Notice
Disclaimer Notice This presentation is prepared by Türkiye Sigorta AŞ, based on general ideas and it is subject to change without notice. It is based on information obtained from sources that the company believes to be reliable, but the company does not guarantee the authenticity and completeness of
Slide 22: Visit Our Website / Contact Investor Relations
Its strength is implicit in its name... Visit Our Website https://www.turkiyesigorta.com.tr/en/investor-relations Contact Investor Relations investor.relations@turkiyesigorta.com.tr 22