Aksigorta As · BIST:AKGRT
Aksigorta As — Investor Presentation (April 2014)
31 slides from Aksigorta As's investor presentation, April 2014
Slide 1: Delivering Value in a Competitive Environment
Delivering Value in a Competitive Environment
Slide 2: Why Invest in Aksigorta
Why Invest in Aksigorta 2 Great Potential in 1 Great Potential in TR NL Insurance Market Akbank 2 Turkey has 1,1 NL insurance penetration 5% while peer economies have 2-3 3% Turkey has 17th largest economy in the world, while TR NL insurance market is 9% 7% 8% 29th in ranking 2009 2011 2013 Akba
Slide 3: Background information
3 Background information Investment Proposition and Story Latest Financial Results with 2014 Guidance Investor Presentation
Slide 4: Underpenetrated Market in Turkey
Underpenetrated Market in Turkey 4 5 Non Life GWP / GDP (%) GDP per Capita (X1000 $) Switzerland (2012) Korea UK USA CAGR Slovenia (09-18) 8% 4 15,3 Germany Canada 14,2 13,1 11,5 12,1 10,0 10,5 10,7 10,8 8,5 France Austria 3 Belgium Portugal Spain Australia South Africa Italy 2009 2010 2011 2012 201
Slide 5: Persistent market positions started to change after 2010
Persistent market positions started to change after 2010 5 18% AXA has market shares, 29% in MTPL and 16,0% 15,8% 16 16% in MOD LOBs, 20% in Agency channel 14,3% 15,6% ANADOLU has market shares, 16% in MOD 14,2% and 13% in MTPL LOBs, 16% in Broker and 13,2% 13,2% 13,0% 12,9% 12,6% 12,7% 14 14% in Ag
Slide 6: Aksigorta differentiates in the Market
Aksigorta differentiates in the Market 6 2012-2013 Growth MOTOR NON-MOTOR HEALTH TOTAL AGENCY BANK 2013 MS 11% 27% 6% 16% 16% 26% AKSİGORTA 6,8% 8,1% 8,7% 7,5% 6,7% 9,3% 39% 17% 10% 33% 35% 4% AXA 22,9% 8,9% 4,3% 15,6% 20,3% 4,7% 24% 26% 9% 23% 23% 32% ANADOLU 14,6% 12,9% 10,8% 13,5% 14,5% 9,6% 66%
Slide 7: Aksigorta is an outperformer in profitability
Aksigorta is an outperformer in profitability 7 As of 13’YE GWP Market Share Loss Ratio Commission Ratio Expense Ratio Net Profit (exc. dividend) Axa 3.168 16% 70% 93% 212 Anadolu 2.750 14% 75% 101% 67 Allianz 1.942 10% 67% 95% 113 Aksigorta 1.526 8% 66% 95% 160 Mapfre 1.353 7% 80% 102% 78 Yapı Kred
Slide 8: About Aksigorta
About Aksigorta 8 We revised our corporate outlook • To make insurance EASY, LEAN and ACCESSIBLE for Our Vision everyone. • We create a unique insurance experience for our Our Mission customers to support the continuity and ease of life while creating value for all stakeholders. • Respectful • Solut
Slide 9: Strong Shareholder Structure
Strong Shareholder Structure 9 Partners announced increasing their shares About Sabancı About Ageas Sabancı Holding is the parent company of the Ageas is an international insurance company with a Sabancı Group, Turkey’s leading industrial and heritage spanning more than 180 years. financial conglome
Slide 10: Country Wide Distribution in Aksigorta
Country Wide Distribution in Aksigorta 10 Aksigorta has country-wide distribution with its channels and regional offices Agencies Bank Corporate Sales 16 Regional Offices 3 Regional Offices 88 Sales 58 Sales 28 Sales Representative Representative Representative 68 Brokers 1.903 Agencies 986 Bank Bra
Slide 11: Investment Proposition and Story
11 Background information Investment Proposition and Story Latest Financial Results with 2014 Guidance Investor Presentation
Slide 12: Technical margin and bottom line profitability is increasing
Technical margin and bottom line profitability is increasing 12 Combined Ratio ROE Net Profit (excluding one-offs) Loss Ratio UW Result 153 107% 104% *97% 99% 94% 102 83% 75 76 78% 49 72% 34 20 32 *69% 2 66% 13 5% 6% 9% 12% **17% 2009 2010 2011 2012 2013 *10,4 MTL one off SSI impact is adjusted in L
Slide 13: Downward trends in loss ratios
Downward trends in loss ratios 13 Health – Loss Ratio Motor – Loss Ratio Non-Motor – Loss Ratio 104% 93% 48% 87% 86% 44% 84% 81% *80% 37% 74% 75% 70% 33% 33% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 * 10,4 MTL one off SSI impact is adjusted in LR Investor Presentati
Slide 14: Strategies defined to create the Future Aksigorta
Strategies defined to create the “Future Aksigorta” 14 Operational Product Excellence Aksigorta Transformation Program “Sustainable Profitability” Service Channel Excellence Investor Presentation
Slide 15: Transform the business mix into a profitable mix
Operational Product Aksigorta Excellence Transformation Program Transform the business mix into a “profitable mix” “Sustainable Profitability” Service Channel Excellence 15 Grow in Right size Non-motor: “Motor” “Fire & Health” Underwriting and Segmentation Health Insurance Business Development Proje
Slide 16: Revised channel-mix for profitable growth
Operational Product Aksigorta Excellence Transformation Program Revised channel-mix for profitable growth “Sustainable Profitability” Service Channel Excellence 16 Right size Increase weight of “Agencies” “Bancassurance” Agency Channel Profit and Effectiveness Bancassurance Target Operating Model Op
Slide 17: Operational Excellence Strategy
Operational Product Aksigorta Excellence Transformation Program Operational Excellence Strategy “Sustainable Profitability” Service Channel Excellence 17 Increased claims effectiveness & efficiency • Fraud and leakage management HR improvements IT transformation • Network management • Leaner claims
Slide 18: Service Excellence Strategy
Operational Product Aksigorta Excellence Transformation Program Service Excellence Strategy “Sustainable Profitability” Service Channel Excellence 18 • Brand Management • Establishment of From commodity to brand “innovation” culture in Aksigorta Customer Innovation focus culture Customer Differentia
Slide 19: Latest Financial Results with 2014 Guidance
19 Background information Investment Proposition and Story Latest Financial Results with 2014 Guidance Investor Presentation
Slide 20: Technical margin and bottom line profitability is increasing
Technical margin and bottom line profitability is increasing 20 1.526 Excluding MTPL business Aksigorta Premium 16% growth is %17 ≈ market growth 1.311 Production 26% GWP growth in bank channel (M TL) 12'YE 13'YE *97 94 Combined Ratio Combined Ratio 3 pp 12'YE 13'YE 160 84 MTL is net PL impa
Slide 21: Portfolio share increases in Non-Motor and Bank
Portfolio share increases in Non-Motor and Bank 21 CHANNEL SHARES (%) LOB SHARES (%) Market almost stable Market in non-motor 1pp MARKET MARKET Agencies 51% 51% Motor Banks 69% 69% Non-Motor Brokers Health Direct Sales 37% 38% 14% 14% 11% 11% 6% 6% 12% 11% Aksigorta Bank 1pp Aksigorta in non-motor 3
Slide 22: Technical margin continues to improve
Technical margin continues to improve 22 Combined Ratio UW Result Loss Ratio ROE 99% *97% 94% 72% *69% 66% 9% 11% **17% 11'YE 12'YE 13'YE *10,4 MTL one off SSI impact is adjusted in UW result, LR and CoR in 2012 results. **Gain on HQ Building Sale and Merter BV impairment loss are excluded in 2013 r
Slide 23: Increase in technical profit by the decrease in loss ratio
Increase in technical profit by the decrease in loss ratio 23 Income Statement (TRL Million) 10’YE 11’YE 12’YE 13’YE Gross Written Premiums 886 1.137 1.311 1.526 Net Written Premiums 619 838 930 1.082 Net Earned Premiums 590 750 891 1.007 Claims (net) -462 -544 -623 -663 Commissions (net) -95 -131 -
Slide 24: Improvement in technical margin tracks each quarter
Improvement in technical margin tracks each quarter 24 Income Statement (TRL 12’Q1 12’Q2 12’Q3 12’Q4 13’Q1 13’Q2 13’Q3 13’Q4 Q4/Q3 13/12 Million) Gross Written Premiums 370 336 291 314 411 354 379 382 7% 22% Net Written Premiums 255 238 216 221 273 253 284 272 12% 23% Net Earned Premiums 214 219 229
Slide 25: Improving ROE thanks to strong profit generation
Improving ROE thanks to strong profit generation 25 (TL Million) 10’YE 11’YE 12’YE 13’YE Cash and Marketable Securities 501 591 627 901 Receivables 413 452 475 462 Other Assets 71 93 116 147 Participations 30 30 30 8 Fixed Assets 44 43 44 31 Total Assets 1.059 1.206 1.292 1.549 Payables 88 95 110 11
Slide 26: Aksigorta share performed +51% relative to index
Aksigorta share performed +51% relative to index TL 26 13YE MCap – TL 817M 12YE MCap – TL 667M Broker Report Date Target Price Eczacıbaşı Sec. 27/02 3,68 Ak Invest 18/02 3,60 Deutsche Bank 17/01 3,62 Deniz Invest 09/12 3,80 TEB Yatırım 22/11 3,50 Investor Presentation
Slide 27: 2014 Guidance follows the strategic plan
2014 Guidance follows the strategic plan 27 Premium 1.526 ~15-18% Benefitting from the profitable Production UWP base (M TL) 13'A 14'E ~1pp 94 Imp. Combined Ratio Sustainable UWP level is achieved 13'A 14'E Technical Profit growing in line *76 ~20-30% with Top Line growth combined Net Income/L
Slide 28: Keep flight altitude and enjoy technical margins in 2014
Keep flight altitude and enjoy technical margins in 2014 28 CHANNEL SHARES (%) LOB SHARES (%) Agencies MARKET 51% 52% Banks 69% 69% Motor Non-Motor Direct Sales & Health Broker 38% 38% 14% 14% 17% 17% 11% 10% Agencies 47% 47% AKSİGORTA 62% 61% Motor Banks Non-Motor Direct Sales & Health Broker 17% 2
Slide 29: News from Aksigorta
News from Aksigorta 29 “Keep living Turkey” “Great Place to Work” “Keep Living Turkey” is a 5-year long social In line with our efforts accordingly Aksigorta responsibility project developed by Aksigorta and Human Resource Department vision of “to be AKUT (Search and Rescue Association) – Turkey’s t
Slide 30: Contact Information & Disclaimer
Contact Information & Disclaimer 30 For further information please contact with; (Mr.) Osman Akkoca, Financial Control Manager and (Ms.) Gülnur Tüccar, Accounting Manager (T) +90 212 393 43 00 investor.relations@aksigorta.com.tr www.aksigorta.com.tr/en/yatirimci_iliskileri.php Aksigorta A.Ş. Meclis-
Slide 31: THANK YOU
Contact Information & Disclaimer 31 For further information please contact with; (Mr.) Osman Akkoca, Financial Control Manager (Mrs.) Gülnur Tüccar, Accounting Manager Aksigorta A.Ş. Meclis-i Mebusan Caddesi No 67 Fındıklı 34427 İstanbul Türkiye (T) +90 212 393 43 00 (F) +90 212 334 39 00 investor.r