Aksigorta AS · BIST:AKGRT

Aksigorta AS — Q3 2020 Earnings Presentation

25 slides from Aksigorta AS's earnings presentation, Oct 27, 2020

  1. Slide 1: Aksigorta 3Q Earnings Call Presentation

    Aksigorta 3Q Earnings Call Presentation 27 October 2020 IR Officer Zeynep Eroktem Contact No 00902162809761 Email Address zeynep.eroktem@aksigorta.com.tr Hizmete Özel

  2. Slide 2: 1. Aksigorta Financials (in TFRS)

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. 2020 Guidance 4. Appendix Hizmete Özel

  3. Slide 3: Q3 Scorecard

    Q3 Scorecard 2020 Q3 – Financial Indicators (m TL) (YoY %) 1.270 86 995 30% -5% 26% Gross Written Net Income Total Equity Premiums 2020 Q3 – Operational Ratios (YoY pp) 76% +3pp 100% +3pp 5.044 25% 48% +5pp Net Loss Net Combined Total Assets RoE Ratio Ratio 2020 Q3 – Financial Income (m TL) 3.065 25

  4. Slide 4: YTD 20'Q3 Scorecard

    YTD 20’Q3 Scorecard 2020 Q3 – Financial Indicators (m TL) (YoY %) 3.536 344 995 13% 33% 26% Gross Written Net Income Total Equity Premiums 2020 Q3 – Operational Ratios (YoY pp) 67% -6pp 91% -7pp 5.044 25% 48% +5pp Net Loss Net Combined Total Assets RoE Ratio Ratio Dividend Payment Out of 2019 Net Pr

  5. Slide 5: Financial Performance: Market GWP Distribution

    Financial Performance Market GWP Distribution (%) (m TL) 19Q4 20Q1 20Q2 20Q3 20’09 YtD +23% +17% +13% +23% +17% 15.230 42.779 15.402 13.849 13.699 13% 15% 36.428 13% 13.017 12.233 13% 12% 12.506 11.178 13% 14% 12% 13% 12% 41% 38% 43% 37% 43% 39% 44% 37% 34% 39% 21% 18% 20% 17% 21% 19% 20% 17% 21% 18

  6. Slide 6: Financial Performance: Aksigorta GWP Distribution

    Financial Performance Aksigorta GWP Distribution (%) (m TL) 19Q4 20Q1 20Q2 20Q3 20’09 YtD +39% +16% -8% +31% +12% 1.318 9% 1.173 3.378 9% 1.015 13% 1.066 1.221 3.012 945 984 36% 8% 5% 9% 7% 13% 9% 930 38% 38% 38% 39% 6% 39% 39% 38% 45% 23% 30% 23% 21% 20% 26% 21% 24% 23% 27% 18% 32% 30% 28% 32% 37%

  7. Slide 7: Financial Performance: UWR business mix

    Financial Performance Better performance in motor segment contributed to UW profitability UWR business mix (TL m) 19Q4 20Q1 20Q2 20Q3 20 YtD N/A +148% +179% -7% +100% 355 64 77 99 60 42 12 14 196 13 15 13 58 34 21 26 -4 11 10 40 28 177 30 138 84 4 21 1 8 50 30 -12 70 23 68 8 -23 14 17 13 32 11 117 -

  8. Slide 8: Financial Performance: Keeping combined ratio below 100%

    Financial Performance Keeping combined ratio below 100% 19Q4 20Q1 20Q2 20Q3 20 YtD 112% 12% 102% 100% 96% 97% 98% 94% 97% 10% 9% 91% 13% 9% 9% 10% 9% 10% 9% 16% 79% 16% 16% 16% 16% 15% 16% 9% 15% 15% 86% 76% 73% 76% 73% 72% 69% 71% 67% 55% 4Q2018 4Q2019 1Q2019 1Q2020 2Q2019 2Q2020 3Q2019 3Q2020 19'0

  9. Slide 9: Financial Performance: AuM reached TL 3.06b

    Financial Performance As of Sep 2020, AuM has reached TL 3.06b with a 25% YoY growth SEP 19 DEC 19 MAR 20 JUN 20 SEP 20 2% 6% 6% 6% 5% 6% 5% 34% 12% 48% 11% 11% 14% 10% 37% 9% 11% 10% 13% 13% 66% 22% 69% 36% 40% AuM 2,450m TL 2,610m TL 2,580m TL 2,970m TL 3,065m TL Average annualized yield* 24% 19%

  10. Slide 10: Income Statement

    Income Statement 20Q3 YTD / Profit & Loss 19Q4 20Q1 20Q2 20Q3 20Q3 YTD 20Q3/20Q2 19Q3 YTD Gross Written Premiums 1.356 1.234 1.032 1.270 3.536 23% 13% Net Earned Premiums 601 638 655 675 1.968 3% 26% Underwriting Result 77 99 196 60 355 -70% 100% Expenses -57 -57 -61 -58 -176 6% 12% Financial Income

  11. Slide 11: Balance Sheet

    Balance Sheet Balance Sheet 20Q3 / 19Q4 20Q1 20Q2 20Q3 20Q3/20Q2 (M TL) 19Q3 Receivables 1.543 1.522 1.417 1.618 14% 26% AUM 2.610 2.580 2.970 3.065 3% 25% Total Assets 4.601 4.562 4.818 5.044 5% 25% Reserves 2.612 2.719 2.730 2.942 8% 23% Payables 856 874 877 807 -8% 15% Equity 899 726 942 995 6% 2

  12. Slide 12: TFRS vs. IFRS

    TFRS vs. IFRS Discounting of O/S claims is the major difference between two ledgers as of September 2020 (TL m) Equity YTD P&L adjustment TFRS result 994,7 344,4 Equalization reserve 99,4 3,7 Unexpired risk reserve 24,5 10,1 Unallocated loss adjustment expenses -21,4 -2,3 IBNR 11,7 11,7 Discounting

  13. Slide 13: 2. What are the Risks & Opportunities in 2020?

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities in 2020? 3. 2020 Guidance 4. Appendix Hizmete Özel

  14. Slide 14: Risks & Opportunities

    Risks & Opportunities Risks and opportunities are factored in our 2020 year-end guidance Risks Opportunities • Downsizing economy limits insurance growth • Increase in interest rates • Decreasing UW profit margin due to competition • Increasing new vehicle and mortgage home sales • Decrease in inter

  15. Slide 15: COVID-19 Impact

    COVID-19 Impact The Covid-19 is a systematic risk that is unavoidable Cash Asset Business Health Economic Decline in claim flows devaluations continuity slowdown frequency Due to slowing down in Equity markets is also another risk we all Underwriting result in New business sales Slowdown in mobility

  16. Slide 16: 3. Guidance

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. Guidance 4. Appendix Hizmete Özel

  17. Slide 17: Earnings Guidance

    Earnings Guidance Risks and opportunities are factored in our 2020 year-end guidance 15%-25% growth in GWP 0%-10% increase in Net Profit Hizmete Özel 13

  18. Slide 18: Long-term Ambitions

    Long-term Ambitions Return on Equity Market Cap 30%+ 1.0 Bn USD Net Combined Ratio Market Share 95% 10% Hizmete Özel 14

  19. Slide 19: 4. Appendix

    1. Aksigorta Financials (in TFRS) 2. What are the Risks & Opportunities? 3. 2020 Guidance 4. Appendix Hizmete Özel

  20. Slide 20: Income Statement in IFRS

    Income Statement in IFRS 20Q3 YTD / Profit & Loss 19Q4 20Q1 20Q2 20Q3 20Q3 YTD 20Q3/20Q2 19Q3 YTD Gross Written Premiums 1.356 1.234 1.032 1.270 3.536 23% 13% Net Earned Premiums 601 638 655 675 1.968 3% 26% Underwriting Result 59 75 191 35 301 -82% 151% Expenses -57 -57 -61 -58 -176 6% 12% Financia

  21. Slide 21: Balance Sheet in IFRS

    Balance Sheet in IFRS Balance Sheet 19Q4 20Q1 20Q2 20Q3 20Q3/20Q2 20Q3/19Q3 (M TL) Receivables 1.543 1.522 1.417 1.618 14% 26% AUM 2.610 2.580 2.970 3.065 3% 25% Total Assets 4.635 4.601 4.857 5.161 6% 25% Reserves 2.774 2.904 2.920 3.157 8% 25% Payables 703 733 783 807 3% 39% Equity 770 579 791 824

  22. Slide 22: Technical Result Bridge btw TFRS & Management Reporting

    Technical Result Bridge btw TFRS & Management Reporting Technical Re-classifications UW result in result in management TFRS 1 2 3 4 5 6 7 reporting Net earned premiums 2,026 -10 -48 1,968 Claims, net (*) -1,282 30 -31 -28 -1,310 Other technical income and -57 10 48 30 29 - expense Commissions, net -

  23. Slide 23: Capital Adequacy

    Capital Adequacy Capital adequacy Sep ‘19 Dec ‘19 Mar ’20 Jun ‘20 Sep ‘20 Main drivers: Required capital 707 771 857 923 971 Asset risk 252 282 338 399 420 by asset size Reinsurance risk 72 78 83 75 78 by re-insurance portfolio Reserve risk 86 89 96 104 115 by growth UW risk 284 312 328 324 337 by g

  24. Slide 24: Glossary

    Glossary MTPL Motor Third Party Liability MOD Motor Own Damage Gross GWP Written Premiums Net NEP Earned Premiums UWR Underwriting Result LoB Line of Business TCIP Turkish Catastrophic Insurance Pool FI Financial Income AUM Asset Under Management FTE Full-Time Employee HC Headcount UWM Underwriting

  25. Slide 25: Thank you!

    Thank you! IR Officer Zeynep Eroktem Contact No 00902162809761 Email Address zeynep.eroktem@aksigorta.com.tr

Aksigorta — Q3 2020 Earnings Presentation on 6ix