Aksigorta AS · BIST:AKGRT
Aksigorta AS — Q3 2019 Earnings Presentation
20 slides from Aksigorta AS's earnings presentation, Oct 25, 2019
Slide 1: Aksigorta Earnings Call Presentation – 19'Q3
2016 January Aksigorta Earnings Call Presentation – 19’Q3 25/10/2019 Presented by Aksigorta IR Team
Slide 2: Agenda
1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. Future Guidance 4. Appendix
Slide 3: 2019 Q3 – Aksigorta Scorecard
2019 Q3 – Aksigorta Scorecard 2019 Q3 FINANCIAL INDICATORS (Mn TL) 975 27% 91 31% 789 16% 4.099 24% 110 2% (YoY) (YoY) (YoY) (YoY) (YoY) Gross Written Net Shareholders’ Total Financial Premiums Income Equity Assets Income 2019 Q3 OPERATIONAL RATIOS 64% 1 pp 73% -4 pp 96% -5 pp 46% 13 pp (YoY) (YoY)
Slide 4: Price increase is driving the growth, penetration is decreasing
Price increase is driving the growth, penetration is decreasing 22% 18% 19% 23% 20% 18Q4 19Q1 19Q2 19Q3 19'YtD 10.225 12.506 11.077 13.061 10.263 12.251 9.173 11.246 30.512 36.558 Health Non-Motor 13% 33% MOD 14% MTPL 13% 12% 11% 13% 12% 11% 39% 19% 12% 39% 43% 10% 37% 39% 34% 37% 43% 37% 36% 19% 21
Slide 5: Aksigorta overperformed the market in Non-motor and MTPL
Aksigorta overperformed the market in Non-motor and MTPL 10% 14% 46% 27% 27% 18Q4 19Q1 19Q2 19Q3 19'YtD 880 971 932 1.058 744 1.085 770 975 2.446 3.118 Health 9% Non-Motor 29% 8% MOD 13% 6% 7% 9% MTPL 12% 38% 33% 8% 39% 31% 39% 9% 5% 45% 37% 40% 35% 34% 38% 21% 20% 26% 18% 24% 19% 18% 23% 29% 26% 25
Slide 6: Better performance in motor segment contributed to UW profitability
Better performance in motor segment contributed to UW profitability UWR Business Mix (Mn TL) -112% -31% 57% 95% 7% 18Q4 19Q1 19Q2 19Q3 19'YtD 39 -5 59 40 45 70 34 66 137 176 Health Non-Motor MOD MTPL 30 8 13 30 10 9 17 9 68 8 11 28 32 28 84 47 10 23 22 53 29 13 21 12 17 4 11 4 12 10 26 5 -2 3 20 -9
Slide 7: We keep Combined ratio below 100%
We keep Combined ratio below 100% Combined Ratio Loss R Commission R Expense R 18Q4 19Q1 19Q2 19Q3 19'YtD 109% 101% 99% 8% 100% 99% 98% 95% 95% 96% 97% 8% 8% 10% 13% 8% 8% 8% 8% 9% 8% 16% 16% 16% 16% 17% 16% 19% 15% 18% 88% 76% 74% 77% 73% 73% 73% 70% 68% 71% 17Q4 18Q4 18Q1 19Q1 18Q2 19Q2 18Q3 19Q3
Slide 8: As of Sep'19, AUM reached to 2.450 mTL with 26% increase YoY
As of Sep’19, AUM reached to 2.450 mTL with 26% increase YoY Time Deposit Corporate Bond Eurobond Government Bond Equities September’18 December’18 March’19 June’19 September’19 2% 2% 4% 2% 6% 2% 5% 2% 6% 5% 6% 7% 8% 18% 18% 18% 17% 18% 73% 69% 68% 69% 76% 18Q3 18Q4 19Q1 19Q2 19Q3 AUM (mTL) 1.948 AU
Slide 9: Strong Financial Results, +45% ROE
Strong Financial Results, +45% ROE 19'09/ 19Q3/ Profit & Loss 18Q3 18Q4 19Q1 19Q2 19Q3 18'09 19'09 Balance Sheet 18Q3 18Q4 19Q1 19Q2 19Q3 18'09 18Q3 GWP 770 971 1.058 1.084 975 2.446 3.118 27,4% Receivables 1.041 1.156 1.278 1.388 1.281 23,1% NEP 471 492 489 518 559 1.311 1.566 19,5% AUM 1.948 2.029
Slide 10: TFRS vs IFRS: Discounting of O/S claims is the major difference
TFRS vs IFRS: Discounting of O/S claims is the major difference between two ledgers as of September ' 2019 YtD Equity Million TL P&L Adjust TFRS Result 788,8 259,1 Equalization Reserve 91,3 8,9 Unexpired Risk Reserve 16,9 -3,8 Unallocated Loss Adjustment Expenses -18,1 -4,6 Discounting of outstandin
Slide 11: Agenda: What are the Risks & Opportunities?
1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. Future Guidance 4. Appendix
Slide 12: Risks & opportunities are factored in our year-end guidance
Risks & opportunities are factored in our year-end guidance Risks Opportunities • Downsizing economy limits insurance growth • Decreasing interest rates would have positive impact on • Decreasing new vehicle and mortgaged home sales, mortgage and car sales pressuring retail segment • Higher premiums
Slide 13: Agenda: Future Guidance
1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. Future Guidance 4. Appendix
Slide 14: 2019 targets are…
2019 targets are… >20% growth in GWP >40% increase in Net Profit 14
Slide 15: … aligned with long term ambition
… aligned with long term ambition 1B $ +2pp Market Cap Market Share 95% 30+% Combined Ratio Return on Equity (Net) (ROE) 15
Slide 16: Agenda: Appendix
1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. Future Guidance 4. Appendix
Slide 17: Summary Financial Statements in IFRS
Summary Financial Statements in IFRS 19'09/ 19Q3/ Profit & Loss 18Q3 18Q4 19Q1 19Q2 19Q3 18'09 19'09 Balance Sheet 18Q3 18Q4 19Q1 19Q2 19Q3 18'09 18Q3 GWP 770 971 1.058 1.084 975 2.446 3.118 27,4% Receivables 1.026 1.142 1.278 1.388 1.281 12,2% NEP 471 492 489 518 559 1.311 1.566 19,5% AUM 1.948 2.0
Slide 18: Capital Adequacy
Capital Adequacy Sep'18 Dec'18 Mar'19 Jun'19 Sep'19 Required Capital 588 615 672 670 707 Main drivers: Asset risk 233 232 277 241 252 by asset size RI risk 46 56 56 72 72 by re-insurance portfolio Reserve risk 63 68 73 79 86 by growth Uw risk 244 249 254 268 284 by growth Fx risk 2 9 11 11 12 by fx
Slide 19: Technical Result Bridge btw TFRS & Management Reporting
Technical Result Bridge btw TFRS & Management Reporting Technical Re-classifications UW Result in Result in Management 1 2 3 4 5 6 7 TFRS Reporting Net Earned Premiums 1.612,2 -9,4 -36,9 1.566,0 Claims, net (1) -1.130,3 16,1 -12,0 -19,3 -1.145,5 Other Technical Inc and Exp -40,0 9,4 36,9 -16,1 9,8 0
Slide 20: THANKS
THANKS Presented by AKSİGORTA Investor Relations Team, October 2019 For further questions: MAIL investor.relations@aksigorta.com.tr WEB https://www.aksigorta.com.tr/en/investor-relations PDP https://www.kap.org.tr/en/sirket-bilgileri/ozet/841-aksigorta-a-s