Anadolu Hayat Emeklilik A.s. · BIST:ANHYT
Anadolu Hayat Emeklilik A.s — Investor Presentation (December 2013)
47 slides from Anadolu Hayat Emeklilik A.s's investor presentation, December 2013
Slide 1: Anadolu Hayat Emeklilik A.Ş. Company Presentation
ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION December 2013
Slide 2: Contents
Contents Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 2
Slide 3: Turkish Economy 2012
Turkish Economy 2012 Population (End of 2011 ) 75.627.384 Urban Population (%) 77,3 Civil Employment (Age15+) 24.821.000 Unemployment Rate (%) 9,2 Gross Domestic Product-Current Prices (TL billion) 1.417 Gross Domestic Product (USD billion) 786 GDP Growth Rate (%) 2,24 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 - 31.12.2012 Insurance Companies 59 - Non-Life 35 - Life 7 - Life & Pension 17 Reinsurance Companies 1 Source: Insurance Association of Turkey 6
Slide 7: Insurance Sector in Turkey: Premium Production
INSURANCE SECTOR IN TURKEY Premium Productions 2012* Total Premium Per Capita (USD) 146 Non-Life Premium Per Capita (USD) 126 Life Premium Per Capita (USD) 20 Total Premium Production (Billion USD) 11,1 Total Premium Production / GDP 1,4% * Temporary Source: Treasury & Insurance Association of Turke
Slide 8: Private Pension System in Turkey
PRIVATE PENSION SYSTEM IN TURKEY Contributions as of 31.12.2012* Total Pension Fund System Contributions Per Capita (USD) 119 Total Pension Fund System Contributions (Billion USD) 9,0 Total Pension Fund System Contributions / GDP 1,1% Total Pension System Fund Size / GDP 1,4% * Temporary Source: Tre
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: Lines of Business - Life & Pensions
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 18 Licensed pension companies Third pillar system Defined contribution Voluntary participation Incentives for both participant & employer Fully funded system Minimum 10 years of contribution payment Minimum retir
Slide 13: Tax Incentives – Former Regulation
PRIVATE PENSION SYSTEM IN TURKEY Tax Incentives – Former 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: Tax Incentives – Current Regulation
PRIVATE PENSION SYSTEM IN TURKEY Tax Incentives – Current Regulation Government Investment Stage Benefit payments Contribution • Government installs an • Investment income of • Withholding tax applies amount equal to 25% of pension funds are tax only on the investment each contribution made exempt.
Slide 15: New Regulation – What Is New?
PRIVATE PENSION SYSTEM IN TURKEY New Regulation – What Is New? 1. Government will install an amount equal to 25% of each contribution made by the participant, with a cap of 25% of annual minimum wage. 2. Withholding tax applies only on the investment income (enforcement date: 29.08.2012). 3. Preciou
Slide 16: Private Pension System In Turkey
Private Pension System In Turkey 16
Slide 17: Distribution Network
Anadolu Hayat Emeklilik Distribution Network Total of Bancassurance 1307 Branches 315 Branches * 166 Branches 5 Banks & 1877 Branches 87 Branches 2 Branches Direct Sales 363 Licensed Salesperson Agents & 281 Exclusive Agencies Brokers 60 Brokers Internet Other Call Centre * By July 2013 there a
Slide 18: Pension Production By Channel
Anadolu Hayat Emeklilik Pension Production By Channel (Initial Contribution Payments) 2011 2012 2013 2013 Direct to Customer 10% 9% 7% Broker 2% 1% 1% Agency 13% 12% 13% BANCASSURANCE 75% 78% 79% Is Bank 3% 2% 2% Is Bank + Direct 42% 50% 51% Sales Is Bank + Agency 13% 12% 12% HSBC* 15% 12% 12% Other
Slide 19: Key Drivers For Growth In Pension Business
Key Drivers For Growth In Pension Business Economic • Extended maturities • Purchasing power Environment • Lack of confidence in the social security in Turkey system • New regulations Advantages • Incentives of Pension • Transparent system • Participating to the investment process System • Mobility
Slide 20: Key Drivers For Our Market Leadership
Key Drivers For Our Market Leadership Distribution network Diversified products Fund performance Charging structure Service quality 20
Slide 21: Private Pension System In Turkey: Overview
Private Pension System In Turkey Overview as of 31.12.2013 21
Slide 22: Pension System Outlook
Pension System Outlook 2010 % 2011 % 2012 % 2013 % 31.12.09 Change 31.12.10 Change 31.12.11 Change 31.12.12 Change 31.12.13 Fund Size (Million TL) AHE 1.953 34% 2.620 16% 3.031 41% 4.278 22% 5.232 Sector 9.106 32% 12.017 19% 14.341 42% 20.357 29% 26.281 Market Share 21,4% 21,8% 21,1% 21,0% 19,9% Num
Slide 23: Private Pension System In Turkey
Private Pension System In Turkey Overview as of 31.12.2013 23
Slide 24: Private Pension System In Turkey: Lapse Ratio
Private Pension System In Turkey Lapse Ratio: Sector Average vs. Anadolu Hayat Emeklilik 01.01.2004 - 31.12.2013, Weekly Data Source: Pension Monitoring Center 24
Slide 25: AHE Pension Products Fund Menu
AHE Pension Products Fund Menu As of 31.12.2013 Conservative Balanced Aggressive Cash Fund International Mixed Fund Equity Fund Eurobond $/€ Fund Conservative Fund Alternative Balanced F. Agressive Fund Contribution Fund Balanced Fund Bond Fund BRIC Fund Gold Fund 53 % 30 % 17 % 25
Slide 26: Pension Funds & Mutual Funds
Pension Funds & Mutual Funds Money T-Bills & Market Average Foreign T.Deposits Maturity Net Asset Value G. Bonds Reverse Inst. Currency & (Days) (mio TL) Equity (%) (%) Repo (%) (%) Sec.(%) Other (%) PRIVATE PENSION FUNDS 02.01.2013 645 20.358 15,96 58,04 8,15 0,72 0,56 16,57 02.01.2014 923 26.186 1
Slide 27: Pension Funds: Net Asset Values
Pension Funds Net Asset Values as of 31.12.2013 27
Slide 28: Pension Funds: Weighted Average Returns
Pension Funds Weighted Average Returns as of 31.12.2013 Weighted Average Returns (%) 28
Slide 29: Pension Funds' Weighted Average Return Performance
Anadolu Hayat Emeklilik Pension Funds’ Weighted Average Return Performance Weighted Average Returns (%) % 29
Slide 30: Pension Products: Charging Structure
Pension Products Charging Structure – What Is New ? Entrance Fee Management Fee Fund Management Fee • At the phase of entrance to the • To cover administrative expenses • To cover fund management expenses System for each pension account • On contributions • On NAV of each fund • Can be deferred till
Slide 31: Life Insurance In Turkey: Market Shares
Life Insurance In Turkey Market Shares (Top 7 in Premium Production) 31
Slide 32: Life Insurance In Turkey: Market Shares (Mathematical Reserves)
Life Insurance In Turkey Market Shares (Mathematical Reserves) 2011 2012 2013 % (Mio TL) % (Mio TL) % (Mio TL) AHE 36% 2.025 36% 1.966 NA 1.881 xxx 11% 612 12% 669 NA NA xxx 10% 549 9% 507 NA NA xxx 8% 463 8% 441 NA NA xxx 7% 416 7% 379 NA NA xxx 5% 285 6% 313 NA NA Others 22% 1202 22% 1215 NA NA TO
Slide 33: Profit Sharing Rates – TL Based Life Products
Anadolu Hayat Emeklilik Profit Sharing Rates – TL Based Life Products 33
Slide 34: Life Portfolio: Total Number of Policies
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2011 - 2013 34
Slide 35: Life Portfolio: Total Premium Production
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2011 - 2013 35
Slide 36: Life Portfolio: New Business Premium Production
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) - 2011 - 2013 36
Slide 37: Life Production By Channel
Anadolu Hayat Emeklilik Life Production By Channel (Initial Premium Production) 2013 2011 2012 2013 Agency & Broker 29% 18% 16% Direct to Customer 28% 17% 19% BANCASSURANCE 43% 65% 65% Is Bank 36% 60% 60% Is Bank & Direct Sales 7% 5% 5% & Agency Total 100% 100% 100% 37
Slide 38: 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 39: Financials
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 39
Slide 40: Financial Highlights & Key Metrics
Anadolu Hayat Emeklilik Financial Highlights & Key Metrics TL Million 2010 2011 2012 2013 Written Premium 358 348 367 395 General Technical Profit 27 34 53 52 Life Technical Profit 14 34 33 63 Private Pension Technical Profit 13 0 20 -11 Period Net Profit 71 65 80 83 Private Pension Net Fund Value 2
Slide 41: Dividend Payout
Anadolu Hayat Emeklilik Dividend Payout 2010* 2011* 2012* 2013* Gross Profit (TL) 88.179.608 76.335.800 109.052.075** 102.015.935** Net Profit (TL) 72.744.608 62.920.800 82.952.075 86.705.935 Net Distributable Profit (TL) 69.176.772 59.687.324 78.873.301 82.447.605 Dividend to Shareholders (TL) 40.0
Slide 42: Capital Adequacy
Anadolu Hayat Emeklilik Capital Adequacy 31.12.2011 31.12.2012 31.12.2013 (TL) (TL) (TL) Capital required for Non-Life Branch 186.997 196.369 115.435 Capital required for Life Branch 106.373.431 108.496.682 109.078.343 Capital Required for Pension Branch 9.450.175 12.569.576 14.952.948 TOTAL CAPITAL
Slide 43: Income Statement
Anadolu Hayat Emeklilik Income Statement (mio TL) 2012 2013 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,68 0,68 NON-LIFE TECHNICAL EXPENSES -0,66 -0,66 I- NON-LIFE TECHNICAL PROFIT / LOSS 0,02 0,02 LIFE TECHNICAL INCOME 502,67 598,51 LIFE TECHNICAL EXPENSES -469,26 -535,10 II- LIFE TECHNICAL PROFIT /
Slide 44: Balance Sheet
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2012 2013 ASSETS I- LIQUID ASSETS 142 139 II- MARKETABLE SECURITIES 2.682 2.406 IIII- RECEIVABLES 4.350 5.308 IV- INVESTMENTS 9 9 V- FIXED ASSETS 26 27 VI- OTHER ASSETS (NET) 13 13 TOTAL ASSETS 7.222 7.902 LIABILITIES AND SHAREHOLDERS’ EQUITY I- PAYABLE
Slide 45: Stock Data
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 45
Slide 46: Stock Data
Anadolu Hayat Emeklilik Stock Data Year MCAP(Million $) 2005 392 2006 448 2007 557 2008 181 2009 724 2010 799 2011 414 2012 693 2013 858 46
Slide 47: 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
Anadolu Hayat Emeklilik A.Ş. — Investor Presentation (December 2013) on 6ix