Turkiye Sigorta A.s. · BIST:TURSG
Turkiye Sigorta A.s — FY2022 Earnings Presentation
22 slides from Turkiye Sigorta A.s's earnings presentation, Feb 16, 2023
Slide 1: Earnings Presentation 2022
Its strength is implicit in its name... Earnings Presentation 2022 Feb 16, 2023 1
Slide 2: 2022 - Summary of Financial Results
2022 - Summary of Financial Results Gross Written Premiums Premium Production Cumulative, Million ₺ • 25.2 bn ₺ premium production, up by 114% YoY +114% • Sector leadership with 12.3% market share • Normalization in MTPL market share, further down to 11.5% and an unrivalled place #1 in GWP in profit
Slide 3: Suppressed Metrics On Inflationary Environment; Still Best-in-class Solvency Ratio
Unsurprisingly Suppressed Metrics On Inflationary Environment; Still A Best-in-class Solvency Ratio Cumulative RoAE & RoAA Cumulative Loss Ratio & Combined Ratio Solvency & Dividend Details Net TS RoAE TS RoAA CAR TS Loss Ratio TS COR (2022) Sector RoAE Sector RoAA Sector Loss Ratio Sector COR 157 %
Slide 4: Effective Diversification in Major Branches
Effective Diversification in Major Branches GWP Production GWP Mix by Major Branches Quarterly, Million ₺ Cumulative +125% Other +87% Health/ 7.5% Sickness 5.3% 9,067 MOD General Losses 9.4% 29.1% Non-Bank Agriculture 82% 5,669 5,576 Production Bank-Heavy 4,861 79% Production Other 18% 4,032 74% MTP
Slide 5: GWP Production by Major Branches
GWP Production by Major Branches Türkiye Sigorta GWP Production by Major Branches Cumulative, Million ₺ 25,173 1,879 Other 1,325 Sickness/Health Annual Change Türkiye Sigorta 2,355 Main Branches Türkiye Market Sector Growth Performance & Outlook MOD Sector Sigorta Share Ranking 36% General Losses 87
Slide 6: GWP Production by Distribution Channel
GWP Production by Distribution Channel Türkiye Sigorta GWP Production by Distribution Channel Cumulative, Million ₺ 25,173 Dist. Channels Türkiye Sector Bank Channel 1,698 Broker YoY Change Sigorta • 10+10 year exclusive bancassurance agreement with three state-owned banks Direct 151% 102% and domin
Slide 7: Superior Technical Profitability in Exclusive Branches, Partially Overshadowed By MTPL
Superior Technical Profitability Performance in Exclusive Branches, Partially Overshadowed By MTPL Technical Profit* Technical Profit Walk by Major Branches Cumulative, Million ₺ Cumulative, Million ₺ 2021 2022 1,297 502 General 593 267 Losses Fire & ND 735 407 2021 2022 Accident 410 895 -299 MTPL -
Slide 8: COR Details
COR Details Combined Ratio Combined Ratio by Major Branches Cumulative, Net 2022, Net Loss Ratio Expense Ratio Commission Ratio Accident 2% 8% 38% 48% Loss Ratio 132% Expense Ratio 125% 126% General Losses -17% 53% 14% 50% 12% 11% 11% Commission Ratio 15% 99% 15% 14% F&ND 32% 22% 5% 59% 10% 13% MOD
Slide 9: Investment Income & Total AUM
Investment Income & Total AUM Assets Under Management AUM Breakdown Total Investment Income Million ₺ Million ₺ Investment Inc. Transferred 2% to Technical Division Eurobond +107% Net Investment Income Private Sec. Bonds - TL 16% 21% Mutual Funds +36% & Other +125% Gov’t Securities - TL 12% 3% Eurob
Slide 10: P&L Analysis
P&L Analysis Summary P&L (million ₺) 2021 2022 YoY Technical Income 5,389 9,663 79% 4.7 bn ₺ unearned premium provisions on high premium production Earned Premiums (Net of Reinsurer Share) 4,101 6,893 68% 1.2 bn ₺ total unexpired risk provision on particularly high MTPL claims Investment Income From
Slide 11: Balance Sheet Growth
Balance Sheet Growth Total Assets Total Reserves Shareholder’s Equity Million ₺ Million ₺ Million ₺ +96% +117% +52% +44% +27% +47% 14,886 28,199 11,748 6,421 19,529 4,362 6,870 4,220 14,351 2021 9M22 2022 2021 9M22 2022 2021 9M22 2022 Türkiye Sigorta| 11
Slide 12: Well-Established Franchise with a Strong Footprint
Well-Established Franchise with a Strong Footprint • Operational since 1957 Headcount Agency Network Bank Branch Broker Network • Market Leader with 12.3% share in total premium production 1,582 3,766 3,710 114 • Rebranded as Türkiye Sigorta post- merger of 3 state-owned non-life QoQ Change +30 -228
Slide 13: Strategy Business Numbers: SuperApp Beyond Insurance
SuperApp Beyond Insurance (On Air!) Strategy Business Numbers Differentiating From Others Partnership 0 to today without any advertising Focusing on CUSTOMER • 4 LoB • 1.8M+ users ACQUSITION and CUSTOMER • 50+ partners • 350k non-cust. users RETENTION with keywords below: • 35+ categories • 90k non-
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 (2022)
Non-Life Main Branch GWP Production (2022) Gross Written Premium Market Share Main Branches Branch Share Market Share Sector Ranking (Million ₺) Change (YoY) General Losses 7,335 29.1% 33.4% -205 bps 1 Fire and Natural Disasters 4,103 16.3% 15.0% -80 bps 2 MTPL 6,650 26.4% 11.5% 246 bps 1 MOD 2,355
Slide 16: GWP Production by Major Branches
GWP Production by Major Branches Quarterly GWP Production Cumulative GWP Production Million ₺ Million ₺ Premium Production 4Q21 1Q22 2Q22 3Q22 4Q22 QoQ YoY 2021 3M22 1H22 9M22 2022 YoY General Losses 1,115 2,547 1,309 982 2,498 155% 124% 3,914 2,547 3,855 4,837 7,335 87% F&ND 726 865 902 978 1,358 3
Slide 17: Technical Profit by Major Branches
Technical Profit by Major Branches Quarterly Technical Profit* Cumulative Technical Profit* Million ₺ Million ₺ Technical Profit 4Q21 1Q22 2Q22 3Q22 4Q22 QoQ YoY 2021 3M22 1H22 9M22 2022 YoY General Losses 55 143 127 136 187 38% 241% 267 143 270 406 593 122% F&ND 124 88 89 236 322 36% 161% 407 88 17
Slide 18: COR by Major Branches
COR by Major Branches Loss Ratio Expense Ratio Commission Ratio Combined Ratio Cumulative Cumulative Cumulative Cumulative Combined Ratio 2021 9M22 2022 2021 9M22 2022 2021 9M22 2022 2021 9M22 2022 General Losses 62.3% 51.8% 52.9% 17.3% 14.9% 14.3% -10.1% -13.2% -16.7% 69.6% 53.5% 50.5% F&ND 38.6% 3
Slide 19: Summary Balance Sheet
Summary Balance Sheet Balance Sheet, Million ₺ 2021 2022 Share (%) YoY Change Cash and Cash Equivalents 6,104 9,034 32% 48% Receivables from Main Operations 3,377 4,536 16% 34% Financial Assets 3,538 11,646 41% 229% Tangible and Intangible Assets 432 755 3% 75% Other Assets 900 2,229 8% 148% TOTAL A
Slide 20: Summary Income Statement
Summary Income Statement Income Statement, Million ₺ 2021 2022 YoY Change Gross Written Premiums 11,750 25,173 114% Technical Balance (Technical Profit) 1,297 502 -61% Earned Premiums (Net of Reinsurer Share) 4,101 6,893 68% Incurred Losses (Net of Reinsurer Share) -3,114 -7,263 133% Other Technical
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