Aksigorta As · BIST:AKGRT
Aksigorta As — Investor Presentation (June 2024)
48 slides from Aksigorta As's investor presentation, June 2024
Slide 1: Investor Presentation June 2024
Investor Presentation June 2024 Contact No 00902162809761 Email Address investor.relations@aksigorta.com.tr
Slide 2: Table of contents
Table of contents Introduction Company overview Business overview Growth drivers Financial overview Appendix
Slide 3: Company overview
Company overview • #6 player in the non-life insurance market with 5.3% share as of June 2024 • Esteemed Sabancı Holding – Ageas Collaboration: A Beacon of Trust, Global Expertise, and Decades of Insurance Mastery • 60+ years experience in insurance industry • Has ~3,750 agencies; 141 brokers and an
Slide 4: Empowering the Future of Insurance: Aksigorta's Legacy & Innovation
Empowering the Future of Insurance: Aksigorta's Legacy & Innovation Leading the Next Wave in Insurance: Experience, Technology, and Growth Esteemed Sabancı Holding – • Powerful Sabancı Holding – Ageas Shareholder’s Structure Ageas Collaboration: A Beacon • 2.3 Mn customers of Trust, Global Expertise
Slide 5: Table of contents
Table of contents Introduction Company overview Business overview Growth drivers Financial overview Appendix
Slide 6: Milestones
Milestones 60’s 90’s The first insurance Public offering of Aksigorta agency 80’s in 1994 2000’s The first insurance Opening of the Fire and policy Earthquake Training Opening of the Aksigorta Beginning of Center Service Center bancassurance First website Awarded the certificate of authorization Fir
Slide 7: Board of directors
Board of directors Haluk Dinçer Ben Karel E. Coumans Chairman of the Board (since 2011) Currently presiding over Sabancı Holding's Financial Services Group, he has been an integral figure Vice Chairman of the Board (since 2024) within the organization, holding pivotal leadership roles since 1995. Be
Slide 8: Board of directors (continued)
Board of directors (continued) Fatma Dilek Yardım Uğur Gülen Independent Member of the Board (since 2024) Independent Member of the Board (since 2024) With over 30 years of extensive experience in banking and financial services, she is a seasoned He commenced his distinguished career in 1991, acquir
Slide 9: Management team
Management team High-performance focused leadership team Aksigorta leadership team’s ultimate target and responsibility is to prepare for the future while succeeding today Mustafa Fırat Kuruca Zeren Zeynep Eröktem Bal General Manager (since 2024) Assistant GM – Finance (since 2023) He graduated from
Slide 10: Management team (continued)
Management team (continued) High-performance focused leadership team Aksigorta leadership team’s ultimate target and responsibility is to prepare for the future while succeeding today Deniz Ceylan Seydi Kaan Konak Assistan GM - Corporate UW and Reinsurance (since 2023) Assistant GM – Technology and
Slide 11: Shareholder structure and commitment to minority shareholders
Shareholder structure and commitment to minority shareholders Shareholder Structure Our Pledge to Minority Shareholders Major shareholders (as of 30 Shares in TL % September 2024) Our core ethos revolves around fostering unwavering trust and delivering sustained Hacı Ömer Sabancı Holding A.Ş. 580,32
Slide 12: Dividend, buybacks and M&A history
Dividend, buybacks and M&A history Dividend history Buybacks and M&A History Stock Price CAGR (‘19-’23) • In 2011, Ageas acquired 30.99% stake in Aksigorta from Sabancı 44% Holding, amounting to USD 220 million. • Subsequently, between November 2011 and November 2012, both 7,00 350 Sabancı Holding a
Slide 13: Table of contents
Table of contents Introduction Company overview Business overview Growth drivers Financial overview Appendix
Slide 14: Business model and SBU growth strategy
Business FINANCIALmodel and SBU SERVICES growth strategy STRATEGY & ROADMAP CHANGING DELIVERING EVOLVING CUSTOMER NEEDS PREVAILING TECHNOLOGY MACROECONOMIC SOCIETAL VALUE CONDITIONS Hyper-personalization Generative AI Global protection gaps High interest and inflation Embedded insurance Digitalizati
Slide 15: Strategy House
Strategy House Purpose We protect the valueable one together, with new generation solutions for a sustainable life. Strategic Create Customer & Develop New Achieve Excellence Adapt to Future of Contribute to Choices Grow the Core Stakeholder Growth Engines with Technology People and Work Sustainabil
Slide 16: Business model and growth strategy
Business model and growth strategy … and a risk spectrum that we need to take action on Data accessibility, availability & ethical use Geo- Local Political Digital Misinformation Political Risk Risk Falling behind local Future of competitors in Work digital transformation Robotics / AI / Big Data /
Slide 17: Business model and growth strategy
Business model and growth strategy II I Inject the Profitable Growth Set the Foundation • Leveraging the technical excellence, identify and pursue key opportunities to achieve profitable growth on highest potential lines of business. • Improve the underlying performance of the portfolio by focusing
Slide 18: Business model and growth strategy
Business model and growth strategy Vision Being a top tier player o 10% Market share o ~+100mio $ Net Profit Growth levers Potential areas to be deep dived and refined ➢ Maximization of channel potential: ➢ Bancassurance Strategic Choices ➢ Agency ➢ Corporate ➢ Health ➢ Customer value based business
Slide 19: Business model and growth strategy
Business model and growth strategy • We will decide on where to grow based on three dimensions: Market Potential • Market potential is assessed by size, growth potential and profitability of line of businesses. • Most profitable products with highest growth is defined as "sweet spots" and profitable
Slide 20: Business model and growth strategy
Business model and growth strategy Our Purpose For a sustainable life, with new generation solutions; we protect the valuable one together. Our Strategic X»x» Accelerate Choices Establish a customer Revisit corporate UW Enhance distribution ‘profitable growth’ in Develop new growth value based busin
Slide 21: Product portfolio
Product portfolio Motor Non-Motor Health Fire: Specialized property insurance that Motor Third Party Liability (MTPL): Aksağlık Insurance: Offers privileges addresses damages and losses resulting Mandatory insurance that covers damages according to your needs with more than from fire incidents. by t
Slide 22: ESG - Charting a Sustainable Tomorrow
ESG - Charting a Sustainable Tomorrow Embracing innovative solutions and forging partnerships for a greener, more sustainable future for generations to come Sustainability Reporting & Initiatives: Sustainability & Environmental Stewardship: •Published GRI-compliant ESG report in 2023. •Duty to futur
Slide 23: Table of contents
Table of contents Introduction Company overview Business overview Growth drivers Financial overview Appendix
Slide 24: Industry drivers
Industry drivers Strong growth potential in non-life insurance sector Turkish non-life insurance market is underpenetrated Non-life GWP production / GDP in GWP per capita Low penetration levels signal Europe (%, 2023) (USD, 2023) growth potential Netherlands 7,2 Netherlands 4.492 Switzerland 4,0 Swi
Slide 25: Industry drivers
Industry drivers Factors driving insurance penetration in Turkey Different premium segments are driven by three different factors. Insurance penetration also depends on economic development. Premium production is affected Premium production by segment by socio-economic status of and factors driving
Slide 26: Industry drivers
Industry drivers Insurance is the core business in agencies while it is a part of financial services in banks Market GWP* (TL bn) Key growth assumptions Distribution Channels Market Share: •The agency channel dominates the market, accounting for YoY 57% of the total, followed by corporate and bank c
Slide 27: Industry drivers
Industry drivers Penetration development is correlated with several attributes, quantified with single-factor analysis Vehicles Vehicles Houses Individuals 30.0M 30.0M 20.0M 85.4M 79% 25% 57% 9% MTPL MOD TCIP Health Insurance Number of vehicles GDP per capita GDP per capita GDP per capita Number of
Slide 28: Position in the Competitive Landscape
Position in the Competitive Landscape Aksigorta GWP and market share development Aksigorta is the #6 player in the Aksigorta GWP Aksigorta GWP 2024H1 YoY market, with 5.3% market share** CAGR (’18 -’23) 49% 50 (market: 54%) 58% (market: 82%) 9,0% Company #1; 15,0% 45 8,5% 8,3% 8,3% 8,5% 40 8,0% Comp
Slide 29: Competitive advantages
Competitive advantages Aksigorta is a well-established company with strong partners and customer base Sabancı Holding Sabancı Holding Net Asset Value Breakdown Aug 24 (%) Hacı Ömer Sabancı Holding A.Ş., one of Turkey’s leading industrial and financial conglomerates, is the parent company and manages
Slide 30: Competitive advantages
Competitive advantages Aksigorta is a well-established company with strong partners and customer base Ageas Insurance International NV Gross inflows Ageas’s Insurance net operating Part 2024H1 total: €9,9b results 2024H1 total: €642m United Kingdom 27% Non-life 39% #2 motorcycle insurer 45% #6 priva
Slide 31: Competitive advantages
Competitive advantages Cross-functional and agile working organization, empowered people are key for success Organizational Transformation: Embracing Agile & Cross-Functional Structures (2017-Present): • Initiated the shift towards cross-functional teams and platforms for enhanced collaboration and
Slide 32: Competitive advantages: Superior distribution power
Competitive advantages Superior distribution power Aksigorta Akbank Agency Broker 24.1 b 2,291.3b 16.4% ~3,750 net profit total capital 141 consolidated assets adequacy ratio agencies brokers 9.2b 3.4b +13.1m 702 12.9k+ GWP GWP Active branches employees customers +6.000 800k+ ATMs POS machine Agenci
Slide 33: Digitize insurance processes with ADA
Digitize insurance processes with ADA We target 8.8 million transactions in 2025 by using new technologies. 7.2 M 200+ 220+ as of June 2024 # of transactions processes FTE virtual automated workforce Our objectives go beyond # of Transaction Executed by ADA (in million) mere efficiency gains; by 8,8
Slide 34: We continue to show strong performance in terms of technology
We continue to show strong performance in terms of technology IT shows very solid performance in terms of efficiency, robustness, security and availability against best-in-class players by completing more than 150 projects & 350 system updates in the last 3 years. in % ( 7x24 ) in % Application Avai
Slide 35: Business outlook: Aksigorta 2024 actions
Business outlook Aksigorta 2024 actions Strengthen our Assure full transition in health pricing and claims management We will business with the new company Configure our business Leverage on our distribution Engage in strategic model with customer centricity network and grow the core partnerships in
Slide 36: Table of contents
Table of contents Introduction Company overview Business overview Growth drivers Financial overview Appendix
Slide 37: Scorecard
Scorecard 2024H1 2024H1 financial indicators (TL m) y/y Gross written premiums 17.522 +58% Financial income 1.814 +13% Net income 608 +4% Shareholders’ equity 3.888 +52% 2024H1 operational ratios y/y Combined ratio (net) 122% +2pp Loss ratio (net) 92% -2pp Commission ratio (net) 11% -1pp Expense rat
Slide 38: Capital Adequacy
Capital Adequacy Capital adequacy Dec.20 Dec.21 Dec.22 Dec.23 Main drivers: Required capital 953 1.426 1.971 3.125 Asset risk 388 484 551 779 by asset size Reinsurance risk 81 178 320 828 by re-insurance portfolio Reserve risk 115 165 233 301 by growth UW risk 350 527 776 1.005 by growth FX risk 18
Slide 39: Table of contents
Table of contents Introduction Company overview Business overview Growth drivers Financial overview Appendix
Slide 40: Market GWP Development
Market GWP Development Market GWP Distribution (m TL) 24Q1 24Q2 2024H1 +94% +70% +82% 168.733 151.156 319.889 36.211 24.737 60.948 88.921 56.083 86.870 70.156 175.791 126.239 12.596 17.918 30.514 31.473 31.364 64.406 32.933 61.815 30.451 20.802 18.165 38.967 31.915 38.971 24.050 70.886 17.854 41.904
Slide 41: Aksigorta GWP Development
Aksigorta GWP Development Aksigorta GWP Distribution (m TL) - Prioritizing High-Margin Products and Capital Adequacy for Enhanced Profitability 24Q1 24Q2 2024H1 +86% +35% +58% 9.267 16.974 7.708 Overall Market Share 1.340 939 60.948 as of H124: 5.730 4.988 4.583 569 10.719 Total: 5,3% 3.519 126.239
Slide 42: Underwriting Profit and Combined Ratio H1'2024
Underwriting Profit and Combined Ratio H1’2024 UW Result and Combined Ratio (TL m; %) UW Result UWM -241 -178 Total Company: Product MTPL MOD Non-Motor Health 67 148 -1% 150 +2pp YoY 315 479 295 -31% +9% +4% +9% UWM +24pp YoY -14pp YoY 0pp YoY +1pp YoY 1Q2023 1Q2024 Combined Ratio -937 -935 Total Co
Slide 43: Financial Income Development
Financial Income Development As of June 2024, AuM has reached TL 11,6b with 24% YoY growth 2Q23 3Q23 4Q23 1Q24 2Q24 43% 30% 36% 29% 4% 0% 44% 4% 0% 4% 0% 4% 0% 4% 0% 18% 18% 18% 22% 21% 45% 48% 34% 31% 42% AuM m TL 9,411m TL 8,880m TL 9,141m TL 10,537m TL 11,629m TL Average annualized yield* 60% 28%
Slide 44: Table of contents
Table of contents Introduction Company overview Business overview Growth drivers Financial overview Appendix
Slide 45: Technical Result Bridge between TFRS & Management Reporting
Technical Result Bridge between TFRS & Management Reporting Technic Re-classifications UW result in al result manageme As of 30 June 2024, (m TL) in TFRS 1 2 3 4 5 6 7 nt reporting Net earned premiums 5.297 -29 -9 - - - - - 5.529 Claims, net (*) -4.402 - - +162 -553 -155 - - -4.948 Other technical i
Slide 46: Glossary
Glossary AUM Asset Under Management CAGR Compounded Annual Growth Rate Ceded Premiums Premiums transferred to reinsurers Combined Ratio Total of Loss ratio, commission ratio and expense ratio ESG Environmental, social, governance FI Financial Income FX Foreign Currency FTE Full-Time Employee GDP Gro
Slide 47: Disclaimer
Disclaimer The information in this presentation has been prepared by Aksigorta A.Ş. (the “Company”) solely for use at a presentation concerning the Company, its proposed listing on the Borsa İstanbul. This presentation does not constitute or form part of, and should not be construed as, an offer to
Slide 48: Thank you!
Thank you! Contact No 00902162809761 Email Address investor.relations@aksigorta.com.tr