Anadolu Hayat Emeklilik A.s. · BIST:ANHYT
Anadolu Hayat Emeklilik A.s — Investor Presentation (October 2013)
51 slides from Anadolu Hayat Emeklilik A.s's investor presentation, October 2013
Slide 1: Anadolu Hayat Emeklilik A.Ş. Company Presentation
ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION October 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: AIT 6
Slide 7: Insurance Sector in Turkey: Premium Productions
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 & AIT 7
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% * Temporary Source: Treasury & Pension Monitoring Center 8
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: Corporate Profile / Lines of Business / Financials / Stock Data
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 17 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: Private Pension System: 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: Private Pension System: New Regulation – What Is New?
PRIVATE PENSION SYSTEM IN TURKEY New Regulation – What Is New? 1. Totally different tax advantage structure for the participants (enforcement date: 01.01.2013): An additional pension account will be opened in the name of each participant, called ‘Government Contribution Sub-account’. Government wi
Slide 15: Private Pension System In Turkey
Private Pension System In Turkey 15
Slide 16: Distribution Network
Anadolu Hayat Emeklilik Distribution Network Total of Bancassurance 1296 Branches 331 Branches 144 Branches 5 Banks & 1860 Branches 87 Branches 2 Branches Direct Sales 353 Licensed Salesperson Agents & 278 Exclusive Agencies Brokers 59 Brokers Internet Other Call Centre 16
Slide 17: Pension Production By Channel
Anadolu Hayat Emeklilik Pension Production By Channel 2011 2012 2013/09 2013/09 Direct to Customer 10% 9% 7% Broker 2% 1% 1% Agency 13% 12% 12% BANCASSURANCE 75% 78% 80% Is Bank 3% 2% 2% Is Bank + Direct 42% 50% 51% Sales Is Bank + Agency 13% 12% 12% HSBC 15% 12% 13% Albaraka 1% 1% 1% Anadolubank 1%
Slide 18: Key Drivers For Growth In Pension Business
Key Drivers For Growth In Pension Business • Structural reforms Economic • Extended maturities Improvements • Purchasing power in Turkey • Lack of confidence in the social security system • New regulations Advantages of • Incentives Pension • Transparent system • Participating to the investment proc
Slide 19: Key Drivers For Our Market Leadership
Key Drivers For Our Market Leadership Distribution network Diversified products Fund performance Charging structure Service quality 19
Slide 20: Private Pension System In Turkey: Overview
Private Pension System In Turkey Overview as of 31.10.2013 20
Slide 21: 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 31.10.13 Fund Size (Million TL) AHE 1.953 34% 2.620 16% 3.031 41% 4.278 21% 5.197 Sector 9.106 32% 12.017 19% 14.341 42% 20.357 28% 25.969 Market Share 21,4% 21,8% 21,1% 21,0% 20,0% Num
Slide 22: Private Pension System In Turkey
Private Pension System In Turkey Overview as of 31.10.2013 22
Slide 23: Private Pension System: Lapse Ratio
Private Pension System In Turkey Lapse Ratio: Sector Average vs. Anadolu Hayat Emeklilik 01.01.2004 - 31.07.2013, Weekly Data Source: Pension Monitoring Center 23
Slide 24: AHE Pension Products Fund Menu
AHE Pension Products Fund Menu As of 31.10.2013 Conservative Balanced Aggressive Cash Fund International Mixed Fund Equity Fund Conservative Fund Eurobond $/€ Fund Agressive Fund Contribution Fund Alternative Balanced F. Bond Fund Balanced Fund BRIC Fund 52 % 29 % 19 % 24
Slide 25: Pension Funds & Mutual Funds
Pension Funds & Mutual Funds Money T-Bills & Market Foreign T.Deposits Fund Average Net Asset Value G. Bonds Reverse Inst. Currency & Type Maturity (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 01.11.2013 972 25.95
Slide 26: Pension Funds: Net Asset Values
Pension Funds Net Asset Values as of 31.10.2013 26
Slide 27: Pension Funds: Weighted Average Returns
Pension Funds Weighted Average Returns as of 31.10.2013 Weighted Average Returns (%) 27
Slide 28: Pension Funds' Weighted Average Return Performance
Anadolu Hayat Emeklilik Pension Funds’ Weighted Average Return Performance Weighted Average Returns (%) % 28
Slide 29: 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 30: Life Insurance In Turkey: Market Shares
Life Insurance In Turkey Market Shares (Top 7 in Premium Production) * Temporary 30
Slide 31: Life Insurance In Turkey: Market Shares (Mathematical Reserves)
Life Insurance In Turkey Market Shares (Mathematical Reserves) 2011 2012* % (Mio TL) % (Mio TL) AHE 36% 2.025 36% 1.966 XXX 11% 612 12% 669 XXX 10% 549 9% 507 XXX 8% 463 8% 441 XXX 7% 416 7% 379 XXX 5% 285 6% 313 Others 22% 1202 22% 1215 TOTAL 100% 5.553 100% 5.490 * Temporary 31
Slide 32: Profit Sharing Rates – TL Based Life Products
Anadolu Hayat Emeklilik Profit Sharing Rates – TL Based Life Products 32
Slide 33: Number of Policies - Life Portfolio
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2010 - 2012 Life Portfolio - Number of Policies - 2010 - 2012 1,800,000 1,600,000 1,400,000 Number of Policies 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Endowment Annuity Term Life Total 2010 78,484 37,900 969,650 1,086,
Slide 34: Life Portfolio: Total Number of Policies 2012/9 vs 2013/9
Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies – 2012/9 vs. 2013/9 34
Slide 35: Premium Production - Life Portfolio
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2010 - 2012 Life Portfolio - Total Premium Production (TL) 400,000,000 350,000,000 Premium Production 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 - Endowment Annuity Term Life Total 2010 167,603,927 1
Slide 36: Life Portfolio: Total Premium Production 2012/9 vs 2013/9
Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) – 2012/9 vs 2013/9 36
Slide 37: Premium Production - New Business
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) - 2010 - 2012 Life Portfolio - New Business - 2010 - 2012 250,000,000 Premium Production - TL 200,000,000 150,000,000 100,000,000 50,000,000 0 Endowment Annuity Term Life Total 2010 8,243,868 133,978,008 55,819,062 198,0
Slide 38: Life Portfolio: New Business Premium 2012/9 – 2013/9
Anadolu Hayat Emeklilik - Life Portfolio Premium Production – New Business (TL) – 2012/9 – 2013/9 38
Slide 39: Life Production By Channel
Anadolu Hayat Emeklilik Life Production By Channel 2013/09 2011 2012 2013/09 Agency & Broker 29% 18% 16% Direct to Customer 27% 16% 21% BANCASSURANCE 44% 66% 63% Is Bank 36% 60% 58% Is Bank & Direct Sales 7% 5% 4% & Agency HSBC 1% 1% 1% Total 100% 100% 100% 39
Slide 40: 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 41: Corporate Profile / Lines of Business / Financials / Stock Data
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 41
Slide 42: Financial Highlights & Key Metrics
Anadolu Hayat Emeklilik Financial Highlights & Key Metrics TL Million 2010 2011 2012 2013/9 Written Premium 358 348 367 306 General Technical Profit 27 34 53 39 Life Technical Profit 14 34 33 46 Private Pension Technical Profit 13 0 20 -7 Period Net Profit 71 65 80 63 Private Pension AUM 2.620 3.030
Slide 43: Dividend Payout
Anadolu Hayat Emeklilik Dividend Payout 2009 2010* 2011* 2012* Gross Profit (TL) 97.993.428 88.179.608 76.335.800 109.052.075** Net Profit (TL) 79.284.428 72.744.608 62.920.800 82.952.075 Net Distributable Profit (TL) 75.661.865 69.176.772 59.687.324 78.873.301 Dividend to Shareholders (TL) 55.000.0
Slide 44: Capital Adequacy
Anadolu Hayat Emeklilik Capital Adequacy 31.12.2010 31.12.2011 31.12.2012 (TL) (TL) (TL) Capital required for Non-Life Branch 178.239 186.997 196.369 Capital required for Life Branch 100.852.982 106.373.431 108.496.682 Capital Required for Pension Branch 8.424.900 9.450.175 12.569.576 TOTAL CAPITAL
Slide 45: Income Statement
Anadolu Hayat Emeklilik Income Statement (mio TL) 2011 2012 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,32 0,68 NON-LIFE TECHNICAL EXPENSES -0,33 -0,66 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,01 0,02 LIFE TECHNICAL INCOME 563,17 502,67 LIFE TECHNICAL EXPENSES -528,72 -469,26 II- LIFE TECHNICAL PROFIT
Slide 46: Income Statement
Anadolu Hayat Emeklilik Income Statement (mio TL) 2012 / 09 2013 / 09 TECHNICAL PART NON-LIFE TECHNICAL INCOME 0,54 0,47 NON-LIFE TECHNICAL EXPENSES -0,70 -0,86 I- NON-LIFE TECHNICAL PROFIT / LOSS -0,16 -0,39 LIFE TECHNICAL INCOME 365,39 454,56 LIFE TECHNICAL EXPENSES -337,74 -407,74 II- LIFE TECHNI
Slide 47: Balance Sheet
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2011 2012 ASSETS I- LIQUID ASSETS 120 142 II- MARKETABLE SECURITIES 2.384 2.682 IIII- RECEIVABLES 3.098 4.350 IV- INVESTMENTS 9 9 V- FIXED ASSETS 24 26 VI- OTHER ASSETS (NET) 13 13 TOTAL ASSETS 5.648 7.222 LIABILITIES AND SHAREHOLDERS’ EQUITY I- PAYABLE
Slide 48: Balance Sheet
Anadolu Hayat Emeklilik Balance Sheet (mio TL) 2012 / 09 2013 / 09 ASSETS I- LIQUID ASSETS 106 126 II- MARKETABLE SECURITIES 2.588 2.503 IIII- RECEIVABLES 4.043 5.080 IV- INVESTMENTS 9 9 V- FIXED ASSETS 24 27 VI- OTHER ASSETS (NET) 11 11 TOTAL ASSETS 6.781 7.756 LIABILITIES AND SHAREHOLDERS’ EQUITY
Slide 49: Corporate Profile / Lines of Business / Financials / Stock Data
Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 49
Slide 50: 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 2013/10 861 50
Slide 51: 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
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