Anadolu Hayat Emeklilik A.s. · BIST:ANHYT
Anadolu Hayat Emeklilik A.s — Investor Presentation (July 2012)
53 slides from Anadolu Hayat Emeklilik A.s's investor presentation, July 2012
Slide 1: Anadolu Hayat Emeklilik A.Ş. Company Presentation
ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION July 2012
Slide 2: Contents
Contents Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 2
Slide 3: Turkish Economy 2011
Turkish Economy 2011 Population (End of 2011 ) 74.724.269 Urban Population (%) 76,8 Civil Employment (Age15+) 23.678.000 Unemployment Rate (%) 9,8 Gross Domestic Product-Current Prices (TL billion) 1.295 Gross Domestic Product (USD billion) 772 GDP Growth Rate (%) 8,50 GDP per Capita - Current Price
Slide 4: Corporate Profile
Anadolu Hayat Emeklilik Corporate Profile Established in 1990 as a subsidiary of Türkiye İş Bankası First life insurance company in Turkey The only Life & Pension company publicly traded since 2000 Has been operating in pension business since 27.10.2003 Market leader in life insurance and private pe
Slide 5: Ownership Structure
Anadolu Hayat Emeklilik Ownership Structure 5
Slide 6: Insurance Sector in Turkey
INSURANCE SECTOR IN TURKEY Total Number of Companies - 31.12.2011 Insurance Companies 59 - Non-Life 35 - Life 7 - Life & Pension 16 Reinsurance Companies 1 Source: AIRCT 6
Slide 7: Insurance Sector in Turkey: Premium Productions
INSURANCE SECTOR IN TURKEY Premium Productions 2011 Total Premium Per Capita (USD) 138 Non-Life Premium Per Capita (USD) 116 Life Premium Per Capita (USD) 22 Total Premium Production (Billion USD) 10,3 Total Premium Production / GDP 1,3% Source: Treasury & AIRCT 7
Slide 8: Private Pension System in Turkey
PRIVATE PENSION SYSTEM IN TURKEY Contributions as of 31.12.2011* Total Pension Fund System Contributions Per Capita (USD) 99 Total Pension Fund System Contributions (Billion USD) 7,5 Total Pension Fund System Contributions / GDP 1% *Temporary Source: Treasury 8
Slide 9: Growth Strategy
Anadolu Hayat Emeklilik Growth Strategy Distribution Channel Strategy • Focus on Bancassurance • Expanding Direct Sales Team • Improve agency profile Improve Customer Service Quality Improve HR quality Focus on Corporate Pension Business 9
Slide 10: Contents
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 10
Slide 11: Lines of Business
Anadolu Hayat Emeklilik Lines of Business Private Pension Life Insurance Endowment / Permanent Life Individual Term Life Corporate Annuities Unemployment Critical illness 11
Slide 12: Private Pension System in Turkey: Basic Features
PRIVATE PENSION SYSTEM IN TURKEY Basic Features Started on 27.10.2003 17 Licensed pension companies Third pillar system Defined contribution Voluntary participation Tax incentives for both participant & employer Fully funded system Minimum 10 years of contribution payment Minimum r
Slide 13: Tax Incentives – Current Regulation
PRIVATE PENSION SYSTEM IN TURKEY Tax Incentives – Current Regulation Contribution Stage Investment Stage Benefit payments • Contributions are tax • Investment income of • %25 of retirement deductible up to %10 pension funds are tax payments are exempt of income with a cap of exempt. from income tax.
Slide 14: Upcoming Regulation – What Is New?
PRIVATE PENSION SYSTEM IN TURKEY Upcoming Regulation – What Is New? 1. Totally different tax advantage structure for the participants: • An additional pension account will be opened in the name of each participant, called ‘Government Contribution Sub-account’. • Government will install an amount equ
Slide 15: Private Pension System In Turkey
Private Pension System In Turkey 15
Slide 16: Distribution Network
Anadolu Hayat Emeklilik Distribution Network Total of Bancassurance 1214 Branches 326 Branches 133 Branches 5 Banks & 1757 Branches 87 Branches 3 Branches Direct Sales 319 Licensed Salesperson Agents & 240 Exclusive Agencies Brokers 55 Brokers Internet Other Call Centre 16
Slide 17: Pension Production By Channel
Anadolu Hayat Emeklilik Pension Production By Channel 2010 2011 2012 / 6 2012 / 6 Direct to Customer 12% 10% 10% Broker 2% 2% 1% Agency 10% 13% 11% BANCASSURANCE 76% 75% 78% Is Bank 4% 3% 2% Is Bank + Direct Sales 41% 42% 52% Is Bank + Agency 14% 13% 11% HSBC 16% 15% 11% TEB + Agency 2% - - Anadolub
Slide 18: Key Drivers For Growth In Pension Business
Key Drivers For Growth In Pension Business • Structural reforms Economic • Extended maturities Improvements • Purchasing power in Turkey • Lack of confidence in the social security system Advantages of • Tax incentives • Transparent system Pension • Participating to the investment process System • M
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
Slide 20: Private Pension System In Turkey: Number of Participants
Private Pension System In Turkey Overview as of 31.07.2012 20.000 3.500.000 18.000 Number Of Participants 3.000.000 Fund Size (TL mio) 16.000 14.000 2.500.000 12.000 2.000.000 10.000 1.500.000 8.000 6.000 1.000.000 4.000 500.000 2.000 - 0 2004 2005 2006 2007 2008 2009 2010 2011 2012/7 Funds (TL mio)
Slide 21: Pension System Outlook
Pension System Outlook 2009 % 2010 % 2011 % 2012 % 31.12.08 Change 31.12.09 Change 31.12.10 Change 31.12.11 Change 31.07.12 Fund Size (Million TL) AHE 1.323 48% 1.954 34% 2.620 16% 3.029 27% 3.836 Sector 6.384 43% 9.107 32% 12.017 19% 14.333 25% 17.854 Market Share 20,7% 21,5% 21,8% 21,1% 21,5% Numb
Slide 22: Private Pension System Sectoral Expectations - 1
Private Pension System Sectoral Expectations - 1 Consolidated Expectations of Pension Companies for 2012 Number of New Participants Within the Year 825.516 Total Number of Participants at the Year-end 3.149.774 Net Cumulative Amount of Contributions at the Year-end (TL) 15.940.839.562 Net Cumulative
Slide 23: Private Pension System Sectoral Expectations - 2
Private Pension System Sectoral Expectations - 2 Consolidated Expectations of Pension Companies for 2012 (Year-end) Number of Contracts to be Transferred 289.281 Amount of Transfers (TL) 2.301.725.270 Expected Number of Contracts to Withdraw 1.790.633 Expected Amount of Accumulations to be Withdrawn
Slide 24: Private Pension System In Turkey
Private Pension System In Turkey Overview as of 31.07.2012 XXX XXX XXX XXX XXX XXX XXX XXX 24 XXX XXX XXX XXX
Slide 25: Lapse Ratio: Sector Average
Private Pension System In Turkey Lapse Ratio: Sector Average vs. Anadolu Hayat Emeklilik 12.01.2004 - 31.07.2012, Weekly Data Source: Pension Monitoring Center 25
Slide 26: AHE Pension Products Fund Menu
AHE Pension Products Fund Menu As of 31.07.2012 Conservative Balanced Aggressive International Mixed Fund Cash Fund Equity Fund Eurobond $/€ Fund Conservative Fund Agressive Fund Alternative Balanced F. Bond Fund Balanced Fund BRIC Fund 54 % 28 % 18 % 26
Slide 27: Pension Funds & Mutual Funds
Pension Funds & Mutual Funds Money Net Asset T-Bills & Market Foreign T.Deposits Fund Average Value G. Bonds Reverse Inst. Currency / Type Maturity (mio TL) Equity (%) (%) Repo (%) (%) Sec.(%) Other (%) PRIVATE PENSION FUNDS 30.12.2011 554 14.308 12,10 60,77 11,36 0,47 0,85 14,46 01.08.2012 518 17.8
Slide 28: Pension Funds: Net Asset Values
Pension Funds Net Asset Values as of 31.07.2012 28
Slide 29: Pension Funds: Weighted Average Returns
Pension Funds Weighted Average Returns as of 31.07.2012 29
Slide 30: Pension Funds' Weighted Average Return Performance
Anadolu Hayat Emeklilik Pension Funds’ Weighted Average Return Performance Weighted Average Returns (%) % 30
Slide 31: Pension Products: Charging Structure
Pension Products Charging Structure Entrance Fee Management Fee Fund Management Fee • At the phase of • To cover administrative • To cover fund entrance to the System expenses management expenses for each pension account • On contributions • On NAV of each fund • Can be deferred till the • Legal upp
Slide 32: Life Insurance In Turkey: Market Shares
Life Insurance In Turkey Market Shares (Top 7 in Premium Production) 35% 30% 30% 27% 28% 25% 20% 16% 15% 13% 11% 10% 9% 10% 6% 7% 6% 5% 5% 5% 5% 4% 4% 5% 4% 4% 3% 0% 0% XXX XXX XXX XXX XXX XXX AHE ZİRAAT GARANTI HALK YKE VAKIF FİNANS 2009 2010 2011 32
Slide 33: Life Insurance In Turkey: Mathematical Reserves
Life Insurance In Turkey Market Shares (Mathematical Reserves) 2010 2011 % (Mio TL) % (Mio TL) AHE 40% 1.977 36% 2.025 XXX 6% 290 11% 612 XXX 10% 496 10% 549 XXX 9% 467 8% 463 XXX 8% 413 7% 416 XXX 6% 276 5% 285 Others 21% 1081 22% 1202 TOTAL 100% 5.000 100% 5.553 33
Slide 34: Profit Sharing Rates – TL Based Life Products
Anadolu Hayat Emeklilik Profit Sharing Rates – TL Based Life Products 34
Slide 35: Life Portfolio: Total Number of Policies 2010 vs 2011
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2010 vs 2011 35
Slide 36: Life Portfolio: Total Number of Policies 2011/6 vs 2012/6
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2011/6 vs 2012/6 36
Slide 37: Life Portfolio: Total Premium Production 2009-11
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2009 - 2011 37
Slide 38: Life Portfolio: Total Premium Production 2011/6 vs 2012/6
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2011/6 vs 2012/6 38
Slide 39: Premium Production – New Business 2010 vs 2011
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) - 2010 vs 2011 39
Slide 40: Premium Production – New Business 2011/6 vs 2012/6
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) - 2011/6 vs 2012/6 40
Slide 41: Life Production By Channel
Anadolu Hayat Emeklilik Life Production By Channel 2012 / 06 2010 2011 2012 / 06 Agency & Broker 35% 29% 20% Direct to Customer 32% 27% 19% BANCASSURANCE 33% 44% 61% Is Bank 24% 36% 54% Is Bank & Direct Sales & 8% 7% 6% Agency HSBC 1% 1% 1% Total 100% 100% 100% 41
Slide 42: Life Products: Charging Structure
Life Products Charging Structure Agency Commission Management Fee Fund Charge • Paid out to our • To cover • To cover fund distribution administrative management expenses channels expenses • Charged on current • Charged on • Charged on year’s returns premiums premiums • Max. 15% of the • No limits s
Slide 43: Contents
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 43
Slide 44: Financial Highlights & Key Metrics
Anadolu Hayat Emeklilik Financial Highlights & Key Metrics TL Million 2009 2010 2011 2012/06 Written Premium 500 358 348 182 General Technical Profit 19 27 34 25 Life Technical Profit 7 14 34 16 Private Pension Technical Profit 12 13 0 9 Period Net Profit 79 71 65 39 Private Pension AUM 1.953 2.620
Slide 45: Dividend Payout
Anadolu Hayat Emeklilik Dividend Payout 2008 2009 2010* 2011* Gross Profit (TL) 67.310.238 97.993.428 88.179.608 76.335.800 Net Profit (TL) 52.905.238 79.284.428 72.744.608 62.920.800 Net Distributable Profit (TL) 50.211.779 75.661.865 69.176.772 59.687.324 Dividend to Shareholders (TL) 42.000.000 5
Slide 46: Capital Adequacy
Anadolu Hayat Emeklilik Capital Adequacy 31.12.2009 31.12.2010 31.12.2011 (TL) (TL) (TL) Capital required for Non-Life Branch 28.753 178.239 186.997 Capital required for Life Branch 96.160.222 100.852.982 106.373.431 Capital Required for Pension Branch 6.757.190 8.424.900 9.450.175 TOTAL CAPITAL REQ
Slide 47: Income Statement 2010-2011
Anadolu Hayat Emeklilik Income Statement (mio TL) 2010 2011 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,17 0,32 NON-LIFE TECHNICAL EXPENSES -0,40 -0,33 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,23 -0,01 LIFE TECHNICAL INCOME 551,20 563,17 LIFE TECHNICAL EXPENSES -537,25 -528,72 II- LIFE TECHNICAL PROFIT
Slide 48: Income Statement 2011/6 vs 2012/6
Anadolu Hayat Emeklilik Income Statement (mio TL) 2011 / 06 2012 / 06 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,10 0,39 NON-LIFE TECHNICAL EXPENSES -0,17 -0,22 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,07 0,17 LIFE TECHNICAL INCOME 281,18 241,89 LIFE TECHNICAL EXPENSES -266,43 -225,38 II- LIFE TECHNIC
Slide 49: Balance Sheet 2010-2011
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2010 2011 ASSETS I- LIQUID ASSETS 129 120 II- MARKETABLE SECURITIES 2.453 2.384 IIII- RECEIVABLES 2.682 3.098 IV- INVESTMENTS 6 9 V- FIXED ASSETS 24 24 VI- OTHER ASSETS (NET) 5 13 TOTAL ASSETS 5.299 5.648 LIABILITIES AND SHAREHOLDERS’ EQUITY I- PAYABLES
Slide 50: Balance Sheet 2011/6 vs 2012/6
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2011 / 06 2012 / 06 ASSETS I- LIQUID ASSETS 102 99 II- MARKETABLE SECURITIES 2.399 2.479 IIII- RECEIVABLES 2.972 3.768 IV- INVESTMENTS 9 9 V- FIXED ASSETS 23 24 VI- OTHER ASSETS (NET) 7 12 TOTAL ASSETS 5.512 6.391 LIABILITIES AND SHAREHOLDERS’ EQUITY I-
Slide 51: Contents
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 51
Slide 52: Stock Data
Anadolu Hayat Emeklilik Stock Data Year MCAP (Million $) 2005 401 2006 458 2007 569 2008 185 2009 740 2010 816 2011 423 13.08.2012 791 52
Slide 53: Thank You
THANK YOU… For further information: investorrelations@anadoluhayat.com.tr Website: www.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. can not guarantee the
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