Agesa Hayat Ve Emeklilik A.s. · BIST:AGESA
Agesa Hayat Ve Emeklilik A.s — Q3 2021 Earnings Presentation
30 slides from Agesa Hayat Ve Emeklilik A.s's earnings presentation, Nov 1, 2021
Slide 1: Presentation to Investors Q3 2021 Earning Release
Presentation to Investors Q3 2021 Earning Release 1 November 2021
Slide 2: Key Financial Results
Key Financial Results Şirkete Özel (Internal)
Slide 3: Solid Financial Foundations
Solid Financial Foundations Q3 2021 YoY/Δ Pension AUM (inc AE) 33,3 bTL 16% Leading position in private companies’ pension AUM and AE Total GWP (Life+PA) 1.398 mTL 42% Success of long-term credit life product and strong RoP portfolio Total Technical Profit 818 mTL 42% Strong growth resulting from hi
Slide 4: A Story of Solid Profitable Growth
A Story of Solid Profitable Growth Profit for the Period (mTL)* Shareholders’ Equity and Solvency Ratio (mTL)* 49% Solvency Ratio CAGR: +34% 150% 172% 193% 190% 196% 161% 187% 258 38% 17 CAGR: +25% 213 1.261 13 1.076 394 153 350 852 917 8 660 110 264 241 523 5 201 437 145 105 2016 2017 2018 2019 202
Slide 5: Historical Track Record of Value Creation
Historical Track Record of Value Creation CAGR YoY Excl. Tax 2016 2017 2018 2019 2020 2016-20 Q3 2020 Q3 2021 2020-21 Rate Change Pension AUM (inc AE) 11.8 bTL 15.3 bTL 17.3 bTL 23.1 bTL 30.5 bTL 27% 28,6 bTL 33,3 bTL 16% Total GWP (Life+PA) 317 mTL 471 mTL 565 mTL 988 mTL 1.332 mTL 43% 983 mTL 1.39
Slide 6: Financials
Financials Şirkete Özel (Internal)
Slide 7: Summary of P&L from Segmental Reporting
Summary of P&L from Segmental Reporting Q3 2020 Q3 2021 2016 2017 2018 2019 2020 CAGR YoY Q2 2021 Q3 2021 QoQ YTD YTD Pension Technical Profit 156 207 234 243 283 16% 205 237 16% 78 78 0% Life Protection Technical Profit 114 151 214 281 473 43% 342 557 63% 177 202 14% Life Savings Technical Profit 4
Slide 8: Solid and Resilient Technical Profitability with Operating Leverage Potential
Solid and Resilient Technical Profitability with Operating Leverage Potential Technical Profit (mTL)* Expense Ratio (%)* Expense ratio=(Opex-AE Related Expenses-Sales Expenses)/(Opex-AE Related Expenses- Sales Expenses+IFRS Proft Before Tax) 47,3% 45,0% 41,3% 43,0% 41,2% 39,5% 42% 37,4% CAGR: 29% 39
Slide 9: Flexible Dividend Policy Focused on Growth
Flexible Dividend Policy Focused on Growth Dividend Policy Objective set amongst core shareholders to aim at distributing 50% of AgeSA’s Turkish GAAP-based distributable profit Current focus however is on increasing the scale of operations and therefore near-term priority is to reinvest in the busin
Slide 10: Overview - Business Lines
Overview - Business Lines Şirkete Özel (Internal)
Slide 11: Differentiated Management of Trends & Dynamics per Segment
Differentiated Management of Trends & Dynamics per Segment Pension* Life Protection** Personal Accident AUM – Inc. State contribution (mTL) Gross Written Premium (mTL) Gross Written Premium (mTL) FMC % (inc. State contribution) 1,5 1,5 1,4 1,3 1,3 1,3 1,3 46% CAGR: 6% CAGR: 49% 16% 1.348 82 CAGR: 27
Slide 12: Pension
Pension (1) Sustainable Growth and Scale Ambitions Pensions AUM including State Contribution (mTL) Technical Profit (mTL) 16% CAGR: +27% 33.287 CAGR: +16% 30.473 16% 283 28.612 234 243 237 23.133 207 205 17.304 156 15.325 11.792 2016 2017 2018 2019 2020 Q3 2020 Q3 2021 2016 2017 2018 2019 2020 Q3 20
Slide 13: Life Protection
Life Protection Sustainable and Resilient Growth Model Fuelled by Bancassurance GWP (mTL) Technical Profit (mTL, %)* 46% CAGR: +49% 63% 1.348 CAGR: +43% 1.257 557 473 896 925 342 281 480 214 393 151 254 114 2016 2017 2018 2019 2020 Q3 2020 Q3 2021 2016 2017 2018 2019 2020 Q3 2020 Q3 2021 Market Shar
Slide 14: Market Consistent Embedded Value Disclosures
Market Consistent Embedded Value Disclosures Şirkete Özel (Internal)
Slide 15: Diversified business model supporting value growth
Diversified business model supporting value growth Pension Life Protection Personal Accident Total 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 10 % 48 % -13% 21% PVNBP (m TL) 2.902 3.204 1.158 1.713 63 55 4.123 4.971 30 % -18 % VNB (m TL) Before 50 % 44 % 35 46 234 351 13 11 282
Slide 16: Proven track record of embedded value growth
Proven track record of embedded value growth 2.628 2.292 14% CAGR 2.035 1.882 Million TL 1.662 1.475 1.204 1.248 955 740 682 570 441 460 474 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021HY Years Şirkete Özel (Internal) 16 ** Source: Company data, unaudited results
Slide 17: Value Driven Year-on-Year Growth
Value Driven Year-on-Year Growth MCEV (mTL) Comments Value of in-force (VIF) is the stock of discounted value of 15% 2.628 future profits, contributing 72% of the value in the MCEV balance sheet whereas the remaining 28% is composed 2.292 of the net assets, ie: net worth. 840 45% Life & PA No allowa
Slide 18: Disclaimer
Disclaimer The information in this presentation has been prepared by AgeSA Hayat ve Emeklilik A.Ş. (the “Company” or “AgeSA”) solely for use at a presentation concerning the Company, its proposed listing on the Borsa İstanbul and the proposed offering (the “Offering”) of ordinary shares of the Compa
Slide 19: Thank you
Thank you (AcE)
Slide 20: Appendix
Appendix
Slide 21: New Action Plan to Expand
New Action Plan to Expand Life Protection + Personal Accident Q3 2021 / Q3 2020 YoY Total Premium Growth Rate DSF+Agency * Non-Credit Linked 34% 412 mTL (30%) Bancassurance 26% 310 mTL (22%) Non-Credit Linked 58% 670 mTL (48%) Bancassurance Credit Linked 43% 1.392 mTL (Total Company) (Total Company)
Slide 22: Solid Sales Culture through a Multidistribution Platform
Solid Sales Culture through a Multidistribution Platform to Expand Scale and Penetration in Pension and Life Exclusive 15-year Fastest growing distribution Bancassurance Agencies distribution agreement # Branches Akbank: ~ 800 # Agencies: ~ 350 channel Akbank sales coaches: ~ 320 Total PVNBP: 772m (
Slide 23: Summary of P&L from SFRS Reporting
Summary of P&L from SFRS Reporting Q3 2020 Q3 2021 2016 2017 2018 2019 2020 CAGR YoY Q2 2021 Q3 2021 QoQ YTD YTD Pension Technical Profit 240 293 346 384 455 17% 332 389 17% 124 130 5% Life Technical Profit 333 462 882 1.139 2.242 61% 1.672 1.970 18% 570 674 18% Non-Life Technical Profit 49 59 70 74
Slide 24: Pension
Pension Summary P&L Pension Technical Profit (mTL) Key Profit Drivers Q3 2020 Q3 2021 2016 2017 2018 2019 2020 CAGR YoY Q2 2021 Q3 2021 QoQ Pension volume (AUM) YTD YTD Fund Management Lapses and Retention 137 177 209 228 303 22% 217 256 18% 85 89 4% Income(1) New Pension Fee Structure Management &
Slide 25: Life Protection
Life Protection Summary P&L Life Protection Technical Profit (mTL) Key Profit Drivers (Excluding Life Savings) Net earned premium volumes Q3 2020 Q3 2021 2016 2017 2018 2019 2020 CAGR YoY Q2 2021 Q3 2021 QoQ YTD YTD Death and Benefits claims Gross Written Premiums 254 393 480 896 1.257 49% 925 1.348
Slide 26: Personal Accident
Personal Accident A Complementary Profit Pool for the Group GWP (mTL) Technical Profit (mTL) CAGR: +6% CAGR: +21% 35 35 82 -18% 75 28 69 66 -15% 24 26 52 51 22 43 17 2016 2017 2018 2019 2020 Q3 2020 Q3 2021 2016 2017 2018 2019 2020 Q3 2020 Q3 2021 Market Share % (in terms of GWP) Claims & Commission
Slide 27: Personal Accident
Personal Accident Summary P&L Personal Accident Technical Profit (mTL) Key Profit Drivers Q3 2020 Q3 2021 Net earned premium volumes 2016 2017 2018 2019 2020 CAGR YoY Q2 2021 Q3 2021 QoQ YTD YTD Accident / Benefits claims Gross Written Premiums 52 69 75 82 66 6% 51 43 -15% 10 16 65% Surrender levels
Slide 28: Pension Retention and Persistency at the Forefront of our Strategy
Pension Retention and Persistency at the Forefront of our Strategy Collection Rate (%) Total Monthly Exit Rate (Lapse (inc. transfer out) + Maturity) (% AuM) 0,31% 68,0% 66,3% 0,26% 0,26% 64,0% 0,24% 61,3% 61,6% 62,2% 60,9% 0,29% 0,21% 0,21% 1,60% 1,32% 1,39% 1,25% 0,94% 0,93% 1,00% 2016 2017 2018 2
Slide 29: Capital-Light Business Model & Strong Solvency Position
Capital-Light Business Model & Strong Solvency Position Comfortable solvency ratios driven by a measured approach to risk and new product introductions, which affords the business scope and flexibility pursuing growth options and / or returning cash to shareholders Regulatory Capital Requirement Sol
Slide 30: Reconciliation between IFRS & Statutory Profit
Reconciliation between IFRS & Statutory Profit IFRS vs. Statutory Profit for the Period (mTL)* Profit for the Period Reconciliation (mTL)* 52% 2016 2017 2018 2019 2020 CAGR Q3 2020 Q3 2021 YoY CAGR: 34% 394 IFRS Profit for the 400,0 110 153 214 258 350 34% 264 394 49% Period 350 344 350,0 Equalisati
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