Anadolu Hayat Emeklilik A.S. · BIST:ANHYT

Anadolu Hayat Emeklilik A.S — Investor Presentation (November 2010)

47 slides from Anadolu Hayat Emeklilik A.S's investor presentation, November 2010

  1. Slide 1: Anadolu Hayat Emeklilik A.Ş. Company Presentation

    ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION November 2010

  2. Slide 2: Disclaimer

    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 accuracy, completeness or correctness of such information. This document has been issued for information pur

  3. Slide 3: Contents

    Contents Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 3

  4. Slide 4: Corporate Profile

    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 sector since establishment

  5. Slide 5: Ownership Structure

    Ownership Structure Türkiye İş Bankası A.Ş. 62% Anadolu Anonim Türk Sigorta Şirketi 20% Milli Reasürans A.Ş. 1% Free Float 17% 5

  6. Slide 6: Total Number of Companies

    Total Number of Companies 31.12.2009 Insurance Companies 54 - Non-Life 32 - Life 9 - Life & Pension 12 - Pension 1 Reinsurance Companies 1 Source: Treasury 6

  7. Slide 7: Turkey Insurance Sector Premium Productions

    TURKEY INSURANCE SECTOR Premium Productions 2009 Total Premium Per Capita (USD) 109 Non-Life Premium Per Capita (USD) 93 Life Premium Per Capita (USD) 16 Total Premium Production (Billion USD) 7,9 1,29 Total Premium Production / GDP % Source: Treasury 7

  8. Slide 8: Turkey Pension System Contributions

    TURKEY PENSION SYSTEM Contributions as of 31.12.2009 Total Pension Fund System Contributions Per 68 Capita (USD) Total Pension Fund System Contributions 4,75 (Billion USD) Total Pension Fund System Contributions / GDP 0,77 % Source: Treasury 8

  9. Slide 9: Growth Strategy

    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

  10. Slide 10: Lines of Business - Life & Pensions

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 10

  11. Slide 11: Lines of Business

    Lines of Business Private Pension Life Insurance  Individu  Endowment al  Term Life  Corporat  Annuities e  Unemploym ent  Critical 11 Illness

  12. Slide 12: Private Pension System in Turkey: Basic Features

    PRIVATE PENSION SYSTEM IN TURKEY Basic Features • Started on 27.10.2003 • 13 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

  13. Slide 13: Private Pension System in Turkey: Tax Incentives

    PRIVATE PENSION SYSTEM IN TURKEY Tax Incentives •Contribution Stage • Contributions are tax deductible up to %10 of income with a cap of annual minimum wage. • Employer contributions are also tax deductible subject to the same limits • Investment Stage • Investment income of pension funds are tax ex

  14. Slide 14: Private Pension System In Turkey

    Private Pension System In Turkey TREASURY PENSION MONITORING CENTRE Reporting of Pension Accounts ASSET MANAGEMENT ** PENSION PARTICIPANT ACCOUNT & ADMINISTRATION MONEY AND FUND SPONSOR * ADMINISTRATION CAPITAL *** MARKETS Reporting of Reporting of Funds Pension Accounts CUSTODIAN BANK CAPITAL MARKE

  15. Slide 15: Distribution Network

    Distribution Network Bancassurance 1138 branches 335 branches 334 branches 86 branches 3 branches 3 branches 109 branches Direct Sales 300 Licensed Salesperson 276 Exclusive Agencies Agents & Brokers 49 Brokers Internet Other Call Centre 15

  16. Slide 16: Pension Production By Channel

    Pension Production By Channel 2010 / 2008 2009 9 Direct to Customer + 3,4 % 5,0 % 11,6% Direct Sales Broker 1,0 % 1,0 % 1,6 % Agency 6,2 % 7,0 % 10,3% BANCASSURANCE Is Bank 2,5 % 5,0 % 3,7% Is Bank + Direct 58,6% 43,9 % 45,0 % 40,8 % Sales Is Bank + Agency 19,0 % 16,0 % 14,1 % HSBC 17,8 % 17,0 % 15,

  17. Slide 17: Key Drivers For Growth In Pension Business

    Key Drivers For Growth In Pension Business • Economic Improvements in Turkey • Structural reforms • Extended maturities • Purchasing power • Lack of confidence in the social security system • Advantages of Pension System • Tax incentives • Transparent system • Participating to the investment process

  18. Slide 18: Key Drivers For Our Market Leadership

    Key Drivers For Our Market Leadership • Distribution network • Diversified products • Fund performance • Charging structure • Service quality 18

  19. Slide 19: Number Of Participants

    Private Pension System InTurkey Overview as of 31.10.2010 14.000 2.500.000 12.000 2.000.000 10.000 Number Of Participants Fund Size (TL mio) 1.500.000 8.000 6.000 1.000.000 4.000 500.000 2.000 - 0 2003 2004 2005 2006 2007 2008 2009 2010/10 Funds (TL mio) Number Of Participants 19

  20. Slide 20: Pension System Outlook

    Pension System Outlook As of 2005 % As of 2006 As of 2007 As of 2008 As of 2009 As of 2010 As of 31.12.2004 Change 31.12.2005 Change 31.12.2006 Change 31.12.2007 Change 31.12.2008 Change 31.12.2009 Change 31.10.2010 Net Asset Value (mio TL) AHE 47 272% 175 202% 529 72% 910 45% 1.323 48% 1.954 29% 2.

  21. Slide 21: Private Pension System Sectoral Expectations

    Private Pension System Sectoral Expectations Consolidated Expectations of Pension Companies 2015 2020 Number of Participants 4.000.000 5.500.000 Net Asset Value (Billion TL) 48,00 115,00 Source: Pension Monitoring Center 21

  22. Slide 22: Private Pension System In Turkey Overview

    Private Pension System In Turkey Overview as of 31.10.2010 Pension Number Of Funds Market Share Company Participants (mio TL) AHE 494,587 22.2 % 2,518 XXX 446,223 19.9 % 1,744 XXX 342,307 15.3 % 2,460 XXX 278,438 12.5 % 1,784 XXX 164,776 7.4 % 611 Other 8 506,428 22.7 % 2,399 Total 2,232,759 100.0 %

  23. Slide 23: Pension Products

    Pension Products Fund Menu Conservative Balanced Aggressive  Cash Fund  Intnl. Mixed Fund  Equity Fund  Conservative  Eurobond $ Fund  Aggressive Fund Fund  Eurobond € Fund  Bond Fund  Balanced Fund 51 % 31 % 18 % 23

  24. Slide 24: Private Pension Funds & Mutual Funds

    Private Pension Funds & Mutual Funds Net Turkish Money Foreign Asset Treasury Market Currenc Fund Average Value Equity Bonds Reverse Inst. y Sec. Othe Type Maturity (mio TL) (%) (%) Repo (%) (%) (%) r (%) PRIVATE PENSION FUNDS 31.12.20 09 340 9,049 9.55 69.76 14.74 0.21 0.37 5.36 01.11.20 16.8 10 40

  25. Slide 25: Weighted Average Return

    31.12.2009-31.10.2010 Weighted Average Return * Net Asset Weighted Value Average Private Pension Firm (mio TL) Return (%) XXX 46 11.63 XXX 44 11.52 Anadolu Hayat Emeklilik 2,518 11.06 XXX 102 10.76 XXX 611 8.73 XXX 1,784 8.55 XXX 2,460 8.26 XXX 379 8.14 XXX 668 7.92 XXX 37 7.80 XXX 609 7.78 XXX 516

  26. Slide 26: Weighted Average Return Performance

    Anadolu Hayat Emeklilik Weighted Average Return Performance Weighted Average Return (%) Anadolu Hayat Year Emeklilik Sector Average 2010/10 11,06 8,61 2009 27,34 23,30 2008 10,19 10,97 2007 21,01 18,46 2006 11,59 10,24 26

  27. Slide 27: Pension Products: Charging Structure & Minimum Contribution

    Pension Products Charging Structure & Minimum Contribution Individual Charging Group Pension Explanation Limit Pension Method Plans Plans 0 to ½ of minimum Can be ½ of minimum deferred till wage wage At the phase of the leaving Deferred till entrance to the date or can ½ of Deferred till leaving

  28. Slide 28: Life Insurance In Turkey Market Shares (Premium Production)

    Life Insurance In Turkey Market Shares (Premium Production) COMPANY 2007 2008 2009 AHE 24 % 22% 27% XXX 15 % 19% 19% XXX 11 % 9% 7% XXX 8% 8% 10% XXX 7% 7% 5% XXX 6% 5% 4% Others 29% 30% 28% TOTAL 100% 100% 100% 28

  29. Slide 29: Life Insurance In Turkey Market Shares (Mathematical Reserves)

    Life Insurance In Turkey Market Shares (Mathematical Reserves) COMPANY 2008 2009 % (Mio TL) (Mio TL) AHE 35% 1.618 1.884 XXX 12% 550 N/A XXX 11% 497 N/A XXX 10% 444 N/A XXX 6% 269 N/A XXX 6% 270 N/A Others 21% 972 N/A TOTAL 100% 4.620 N/A 29

  30. Slide 30: Life Products Profit Sharing Rates

    Life Products Profit Sharing Rates PROFIT YEAR SHARE(%) USD(%) CPI(%) 2000 43 24 39 2001 76 114 69 2002 62 14 30 2003 47 -15 18 2004 29 -4 9 2005 23 0 8 2006 16 5 10 2007 20 -17 8 2008 17 30 10 2009 15 -0,4 7 AVERAGE 35 15 21 30

  31. Slide 31: Life Portfolio Total Number of Policies

    Life Portfolio Total Number of Policies 2008 2009 2009 / 9 2010 / 9 Endowmen 103.724 88.426 91.128 81.142 t Annuity 39.223 40.706 39.876 38.858 Term Life 667.734 967.194 890.788 876.607 1.019.92 1.007.61 Total 810.681 1.087.194 0 1 31

  32. Slide 32: Life Portfolio Total Premium Production

    Life Portfolio Total Premium Production (TL) 2008 2009 2009 / 9 2010 / 9 Endowme 176.014.1 177.088.51 132.290.6 125.931.5 nt 74 2 21 49 134.910.6 289.244.29 211.036.9 102.172.1 Annuity 83 3 12 48 33.989.42 23.620.29 39.297.49 Term Life 33.402.991 0 5 5 344.914.2 499.735.79 366.947.8 267.401.1 Total

  33. Slide 33: Life Portfolio Premium Production – New Business

    Life Portfolio Premium Production – New Business (TL) 2009 2009 / 9 2010 / 9 Endowmen 11.387.982 6.637.133 t 8.285.946 211.036.91 Annuity 289.244.293 2 102.172.148 Term Life 32.794.593 39.349.814 23.739.581 243.062.43 Total 333.426.868 148.159.095 9 33

  34. Slide 34: Life Production By Channel

    Life Production By Channel 2010 / 2008 2009 9 Agency & Broker 43 % 34 % 39 % Direct to Customer & Direct 30 % 36 % 28 % Sales BANCASSURANCE Is Bank 16 % 15 % 24 % 32 % Is Bank & Direct Sales & 10 % 14 % 8% Agency HSBC 1% 1% 1% Total 100 % 100 % 100 % 34

  35. Slide 35: Life Products Charging Structure

    Life Products Charging Structure Charging Individual Life Group Life Explanation Limit Method Products Products For term life products total of commission rates cannot exceed 25%. TRL - $/€ 1.Year 30%- Varies AGENCY On For other products 20% - according to COMMISSION premiums total of commission 2

  36. Slide 36: Financials

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 36

  37. Slide 37: Financial Highlights

    Financial Highlights Mio TL 2008 2009 Written Premium 345 500 General Technical Profit 18 19 Total Assets 3.400 4.438 Paid-In Capital 250 250 Shareholders’ Equity 350 430 Math.& Profit Sharing Provisions 1.608 1.934 Net Profit 53 79 37

  38. Slide 38: Financial Highlights

    Financial Highlights Mio TL 2009 / 9 2010 / 9 Written Premium 367 267 General Technical Profit 13 23 Total Assets 4.281 4.999 Paid-In Capital 250 250 Shareholders’ Equity 414 434 Math.& Profit Sharing Provisions 1.858 1.988 Net Profit 62 58 38

  39. Slide 39: Dividend Payout

    Dividend Payout 2009 2008 2007 Net Profit (TL) 79.284.428 52.905.238 45.481.212 Net Distributable Profit (TL) 75.661.865 50.211.779 43.472.277 Dividend to Shareholders (TL) 55.000.000 42.000.000 35.000.000 - Cash 55.000.000 42.000.000 15.000.000 - Bonus Share - - 20.000.000 Cash / Net Profit (%) 69,

  40. Slide 40: Capital Adequacy

    Capital Adequacy 31.12.2009 31.12.2008 31.12.2007 (TL) (TL) (TL) Capital required for Non-Life Branch 28.753 37.191 41.903 78.870.306 71.856.085 Capital required for Life Branch 96.160.222 Capital Required for Pension Branch 6.757.190 5.181.501 4.150.396 84.088.998 76.048.384 TOTAL CAPITAL REQUIRED

  41. Slide 41: Financials Income Statement

    Financials Income Statement (mio TL) 2008 2009 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,5 0,3 B- NON-LIFE TECHNICAL EXPENSES -0,4 -0,2 I- NON-LIFE TECHNICAL PROFIT / LOSS 0,1 0,1 C- LIFE TECHNICAL INCOME 629,5 724,7 D- LIFE TECHNICAL EXPENSES -618,2 -717,4 II- LIFE TECHNICAL PROFIT / LOSS 11,3

  42. Slide 42: Financials Income Statement

    Financials Income Statement 2009 / (mio TL) 9 2010 / 9 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,20 0,12 B- NON-LIFE TECHNICAL EXPENSES -0,17 -0,32 I- NON-LIFE TECHNICAL PROFIT / LOSS 0,03 -0,20 C- LIFE TECHNICAL INCOME 539,23 398,76 D- LIFE TECHNICAL EXPENSES -535,95 -385,41 II- LIFE TECHNICAL

  43. Slide 43: Financials Balance Sheet

    Financials Balance Sheet (mio TL) 2008 2009 ASSETS I- LIQUID ASSETS 75,3 121,5 II- MARKETABLE SECURITIES 1.948,9 2.316,4 IIII- RECEIVABLES 1.334,7 1.965,8 IV- INVESTMENTS 4 5,8 V- FIXED ASSETS 24,4 24 VI- OTHER ASSETS (NET) 12,7 4,5 TOTAL ASSETS 3.400 4.438 LIABILITIES AND SHAREHOLDERS’ EQUITY I- PA

  44. Slide 44: Financials Balance Sheet

    Financials Balance Sheet 2009 / (mio TL) 2010 / 9 9 ASSETS I- LIQUID ASSETS 115 122 II- MARKETABLE SECURITIES 2.269 2.379 IIII- RECEIVABLES 1.863 2.465 IV- INVESTMENTS 6 6 V- FIXED ASSETS 24 23 VI- OTHER ASSETS (NET) 4 4 TOTAL ASSETS 4.281 4.999 LIABILITIES AND SHAREHOLDERS’ EQUITY I- PAYABLES 1.935

  45. Slide 45: Stock Data

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 45

  46. Slide 46: Anadolu Hayat Emeklilik Stock Data

    Anadolu Hayat Emeklilik Stock Data Year-end Year MCAP($) Price ($) 2003 0,53 132.500.000 2004 0,93 232.500.000 2005 1,71 427.500.000 2006 1,96 490.000.000 2007 2,43 607.500.000 2008 0,79 197.500.000 2009 3,16 790.000.000 2010 / 10 4,13 1.032.500.000 46

  47. Slide 47: Thank You

    47 THANK YOU...

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