Anadolu Hayat Emeklilik A.s. · BIST:ANHYT

Anadolu Hayat Emeklilik A.s — Investor Presentation (November 2009)

46 slides from Anadolu Hayat Emeklilik A.s's investor presentation, November 2009

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

    ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION November 2009

  2. Slide 2: Index

    Index Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 2

  3. Slide 3: Corporate Vision

    Corporate Vision To be the leading company in Turkey in all aspects of personal financial planning concerning the future of Turkey and the Turkish people 3

  4. Slide 4: Corporate Profile

    Corporate Profile  First life insurance company in Turkey  Established in 1990 as a subsidiary of Türkiye İş Bankası  Market leader in life insurance sector since establishment  Has been operating in pension business since 27.10.2003  The only Life & Pension company publicly traded (since 2000)

  5. Slide 5: Ownership Structure

    Ownership Structure Türkiye İş Bankası A.Ş. 62% Anadolu Anonim Türk Sigorta Şirketi 20% Fortis Bank A.Ş. 1% Milli Reasürans A.Ş. 1% Free Float 16% 5

  6. Slide 6: Total Number of Companies as of 30.06.2009

    TOTAL NUMBER OF COMPANIES AS OF 30.06.2009 Insurance Companies (Insurance) 55 - Non-Life 32 - Life 10 - Life & Pension 12 - Pension 1 Reinsurance Companies 1 Source: Treasury 6

  7. Slide 7: Turkey Insurance Sector Premium Productions as of 2008

    TURKEY INSURANCE SECTOR Premium Productions as of 2008 Total Premium Per Capita (USD) 123 Non-Life Premium Per Capita (USD) 107 Life Premium Per Capita (USD) 16 Total Premium Production (Billion USD) 8,8 Total Premium Production / GDP 1,20 % Source: Treasury 7

  8. Slide 8: Turkey Pension System Contributions as of 2008

    TURKEY PENSION SYSTEM Contributions as of 2008 Total Pension Fund System Contributions Per Capita (USD) 50 Total Pension Fund System Contributions (Billion USD) 3,6 Total Pension Fund System Contributions / GDP 0,58 % Source: Treasury 8

  9. Slide 9: Growth Strategy

    Growth Strategy  Shift Distribution Channel Strategy  Focus on Bancassurance  New Strategic Partnerships with Banks  Expanding Direct Sales Team  Improve agency profile  Improve Customer Service Quality  Improve HR quality and thus productivity  Focus on Corporate Pension Business 9

  10. Slide 10: Network

    Network Bancassurance 1085 branches 334 branches 330 branches 84 branches 4 branches 3 branches 258 Licensed Salesperson Direct Sales 306 Exclusive Agencies Agents & Brokers 47 Brokers Internet Other Call Centre 10

  11. Slide 11: Lines of Business - Life & Pensions

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 11

  12. Slide 12: Lines of Business

    Lines of Business Pensions Life Insurance  Individual  Endowment  Corporate  Term Life  Annuities 12

  13. Slide 13: Private Pension System in Turkey

    Private Pension System in Turkey Basic Features  Started on 27.10.2003  12 Licensed pension companies  Third pillar system  Defined contribution  Voluntary participation  Tax incentives for both participant & employer  Fully funded system  Minimum retirement age is 56  Funds are managed by

  14. Slide 14: 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 e

  15. Slide 15: Private Pension System in Turkey

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

  16. Slide 16: Private Pension System Participants and Fund Size

    Private Pension System in Turkey Overview as of 30.10.2009 10.000 2.500.000 9.000 8.000 2.000.000 Participants Number of 7.000 Fund Size (TL Mil) 6.000 1.500.000 5.000 4.000 1.000.000 3.000 2.000 500.000 1.000 - 0 2003 2004 2005 2006 2007 2008 2009/10 Funds (TL Mil) Number Of Participants 16

  17. Slide 17: Private Pension System Outlook

    Private Pension System Outlook As of 2004 % As of 2005 % As of 2006 As of 2007 As of 2008 As of 2009 As of 31.12.2003 Change 31.12.2004 Change 31.12.2005 Change 31.12.2006 Change 31.12.2007 Change 31.12.2008 Change 30.10.2009 Net Asset Value (mio TL) AHE 6 683% 47 272% 175 202% 529 72% 910 45% 1.323

  18. Slide 18: Private Pension System Sectoral Expectations for 2013

    Private Pension System Sectoral Expectations for 2013 Consolidated Expectations of Pension Companies for 2013 Median Total Number of Participants (Individual) 2,300,000 Total Number of Participants (Group) 953,941 Total Number of Participants (Total) 3,250,000 Total Number of Contracts (Individual)

  19. Slide 19: 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

  20. 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

  21. Slide 21: Private Pension System in Turkey: Market Overview

    Private Pension System in Turkey Overview as of 30.10.2009 Number Of Market Funds Market Participant Share (mio TL) Share s AHE 424,800 21.9% 1,875 21.6% XXX 386,893 20.0% 1,262 14.6% XXX 300,897 15.5% 1,887 21.8% XXX 264,516 13.7% 1,303 15.0% XXX 155,113 8.0% 487 5.6% Other 7 403,743 20.9% 1,860 21

  22. Slide 22: Private Pension Funds & Mutual Funds

    Private Pension Funds & Mutual Funds Turkish Average Net Asset Treasury Reverse Money Foreign Fund Maturit Value Equity Bonds Repo Market Inst. Currency Other Type y (mio TL) (%) (%) (%) (%) Sec.(%) (%) PRIVATE PENSION FUNDS 31.12.2008 376 6,369 7.83 69.73 15.56 0.01 0.53 6.34 30.10.2009 383 8,680 1

  23. Slide 23: Pension Products Fund Menu

    Pension Products Fund Menu Conservative Balanced Aggressive  Cash Fund  Intnl. Mixed Fund  Equity Fund  Conservative Fund  Eurobond $ Fund  Aggressive Fund  Bond Fund  Eurobond € Fund  Balanced Fund 58% 29% 13% 23

  24. Slide 24: Weighted Average Return

    31.12.2008-30.10.2009 Weighted Average Return * Net Asset Value Weighted Average Private Pension Firm (mio TL) Return (%) XXX 487 25.70 XXX 84 24.16 Anadolu Hayat Emeklilik A.Ş. 1,875 23.68 XXX 1,887 20.36 XXX 12 19.40 XXX 13 18.20 XXX 418 18.08 XXX 1,303 17.84 XXX 1,262 16.63 XXX 512 15.64 XXX 507

  25. Slide 25: Pension Production by Channel

    Pension Production by Channel 2007 2008 2009 / 10 Direct to Customer 2,1 % 3,4 % 3,4 % + Direct Sales Broker 1,0 % 1,0 % 1,0 % Agency 4,4 % 6,2 % 5,4 % BANCASSURANCE Is Bank 5,5 % 2,5 % 1,1 % 67,7 % Is Bank + Direct 37,8 % 43,9 % 47,3 % Sales Is Bank + Agency 18,3 % 19,0 % 19,3 % HSBC 23,4 % 17,8 %

  26. Slide 26: Pension Products Charging Structure & Minimum Contribution

    Pension Products Charging Structure & Minimum Contribution Group Pension Individual Pension Plans Explanation Charging Method Limit Plans (#3) (#117) 0 to ½ of ½ of minimum minimum wage At the phase Can be deferred wage Deferred till ENTRANCE FEE of entrance to till the leaving of½ Deferred till

  27. Slide 27: Life Insurance in Turkey: Market Shares (Premium Production)

    Life Insurance in Turkey Market Shares (Premium Production) PENSION COMPANY 2006 2007 2008 AHE 25 % 24 % 22% XXX 13 % 15 % 19% XXX 9% 11 % 9% XXX 7% 8% 8% XXX 8% 7% 7% XXX 6% 6% 5% Others 31 % 29% 30% TOTAL 100 % 100% 100% 27

  28. Slide 28: Life Insurance in Turkey: Market Shares (Mathematical Reserves)

    Life Insurance in Turkey Market Shares (Mathematical Reserves) PENSION COMPANY 2007 2008 % ( Mio TL) % ( Mio TL) AHE 35,0 1.420 35% 1.589 XXX 12 476 12% 550 XXX 11 460 11% 497 XXX 10 406 10% 444 XXX 7 277 6% 269 XXX 5 221 6% 270 Others 20 795 21% 972 TOTAL 100 4.054 100% 4.591 Source: Treasury 28

  29. Slide 29: Life Products / Profit Sharing Rates

    Life Products / Profit Sharing Rates PROFIT YEAR SHARE(%) USD(%) CPI(%) 1999 119 73 69 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 AVERAGE 45 22 27 29

  30. Slide 30: Life Portfolio: Total Number of Policies

    Life Portfolio Total Number of Policies 2007 2008 2008 / 9 2009 / 9 Endowme 125.697 103.724 108.230 91.128 nt Annuity 39.394 39.223 39.349 39.876 Term Life 711.556 667.734 696.135 876.607 Total 876.647 810.681 843.714 1.007.611 30

  31. Slide 31: Life Portfolio: Total Premium Production

    Life Portfolio Total Premium Production(TL) 2007 2008 2008 / 9 2009 / 9 Endowm 177.682.0 176.014.1 129.877.83 132.290.6 ent 69 74 1 21 111.279.9 134.910.6 107.193.04 211.036.9 Annuity 94 83 9 12 49.930.40 33.989.42 23.620.29 Term Life 28.251.954 4 0 5 338.892.4 344.914.2 265.322.83 366.947.8 Total 6

  32. Slide 32: Life Portfolio: Premium Production - New Business

    Life Portfolio Premium Production - New Business (TL) 2008 2008 / 9 2009 / 9 Endowmen 6.980.140 8.285.946 t 4.333.419 134.910.6 107.193.04 211.036.91 Annuity 83 9 2 33.491.01 Term Life 27.783.308 23.739.581 2 175.381.8 139.309.77 243.062.43 Total 35 6 9 32

  33. Slide 33: Life Production by Channel

    Life Production by Channel 2007 2008 2009 / 9 Agency & Broker 40 % 43 % 34 % Direct to Customer & Direct 23 % 30 % 34 % Sales Isbank 27 % 16 % 16 % Isbank & Direct Sales & 9% 10 % 15 % 31% Agency HSBC 1% 1% 1% Total 100 % 100% 100% 33

  34. Slide 34: Life Products Charging Structure

    Life Products Charging Structure Chargin Explanatio Individual Life Group Life g Limit n Products Products Method For term life products total of commission TRL - $/€ AGENCY rates cannot exceed 1.Year 30%- COMMISSION On 25%. 20 % Varies - premiu For other products total according to ms 2. Year 5%-

  35. Slide 35: Financials

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 35

  36. Slide 36: Financial Highlights

    Financial Highlights ( Mio TL) 2007 2008 Written Premium 337 345 General Technical Profit 8 18 Total Assets 2.825 3.400 Paid-In Capital 175 250 Shareholders’ Equity 344 350 Math.& Profit Sharing Provisions 1.453 1.608 Net Profit 45 53 36

  37. Slide 37: Financial Highlights

    Financial Highlights (Mio TL) 2008/9 2009/9 Written Premium 265 367 General Technical Profit 4 13 Total Assets 3.190 4.281 Paid-In Capital 250 250 Shareholders’ Equity 329 414 Math.& Profit Sharing Provisions 1.561 1.858 Net Profit 30 62 37

  38. Slide 38: Allocation of Period Profit

    Allocation of Period Profit 2008 2007 2006 2005 Net Profit (TL) 52.905.238 45.481.212 25.285.434 41.031.408 Net Distributable Profit (TL) 50.211.779 43.472.277 23.973.676 34.216.634 Dividend to Shareholders (TL) 42.000.000 35.000.000 12.000.000 15.000.000 - Cash 42.000.000 15.000.000 12.000.000 5.00

  39. Slide 39: Capital Adequacy

    Capital Adequacy 31.12.2008 31.12.2007 31.12.2006 (TL) (TL) (TL) Capital Required for Non-Life Branch 37.191 41.903 55.170 Capital Required for Life Branch 78.870.306 71.856.085 65.013.132 Capital Required for Pension Branch 5.181.501 4.150.396 2.639.187 TOTAL CAPITAL REQUIRED 84.088.998 76.048.384

  40. Slide 40: Financials: Income Statement

    Financials Income Statement (Mio YTL) 2007 2008 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,2 0,5 B- NON-LIFE TECHNICAL EXPENSES -0,3 -0,4 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,1 0,1 C- LIFE TECHNICAL INCOME 556,9 629,5 D- LIFE TECHNICAL EXPENSES -530,6 -618,2 II- LIFE TECHNICAL PROFIT / LOSS 26,

  41. Slide 41: Financials: Income Statement

    Financials Income Statement (Mio TL) 2008/9 2009/9 TECHNICAL PART A- NON-LIFE TECHNICAL INCOME 0,11 0,20 B- NON-LIFE TECHNICAL EXPENSES -0,24 -0,17 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,13 0,03 C- LIFE TECHNICAL INCOME 448,81 539,23 D- LIFE TECHNICAL EXPENSES -448,45 -535,95 II- LIFE TECHNICAL PROF

  42. Slide 42: Financials: Balance Sheet

    Financials Balance Sheet (Mio YTL) 2007 2008 ASSETS I. LIQUID ASSETS 62 75,3 II. MARKETABLE SECURITIES 1.716,3 1.948,9 III. RECEIVABLES 934,3 1.334,7 IV. INVESTMENTS 82,2 4 V. FIXED ASSETS 24,4 24,4 VI. OTHER ASSETS (NET) 5,8 12,7 TOTAL ASSETS 2.825 3.400 LIABILITIES AND SHAREHOLDERS' EQUITY I. PAYA

  43. Slide 43: Financials: Balance Sheet

    Financials Balance Sheet (Mio TL) 2008/9 2009/9 ASSETS I. LIQUID ASSETS 81 115 II. MARKETABLE SECURITIES 1.871 2.269 III. RECEIVABLES 1.202 1.863 IV. INVESTMENTS 4 6 V. FIXED ASSETS 24 24 VI. OTHER ASSETS (NET) 8 4 TOTAL ASSETS 3.190 4.281 LIABILITIES AND SHAREHOLDERS' EQUITY I. PAYABLES 1.223 1.935

  44. Slide 44: Stock Data

    Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 44

  45. Slide 45: Anadolu Hayat Emeklilik Stock Data

    ANADOLU HAYAT EMEKLİLİK Stock Data Year-end Year MCAP($) Price ($) 2003 0,56 140.000.000 2004 0,98 245.000.000 2005 1,80 450.000.000 2006 2,05 512.500.000 2007 2,55 637.500.000 2008 0,83 207.500.000 2009/10 2,66 665.000.000 45

  46. Slide 46: Thank You

    46 THANK YOU...

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