Presentation to
Investors
Q3 2024
Earning Release
4 November 2024
Şirkete Özel
Summary and Outlook
AgeSA strengthened its leadership in both Pension AuM and Life & PA premium production thanks to significant growth across all channels and product lines.
AgeSA's net profit grew significantly due to robust technical profits from all business lines and financial income despite inflationary pressures on personnel and general expenses.
2024 Q3 Performance
- #1 position in Private Pension AuM; 19,8% m.s.
- #1 position in Total Life & PA GWP; 14,4% m.s.
- Robust net profit growth both in terms of Management Reporting and SFRS with 103% and 92% yoy increase respectively
- 629 mTL has been paid as capital advance to MediSA (Sabancı Health Insurance Company), in April. AgeSA has become the main shareholder with 80% share.
- Both AgeSA Management reporting and SFRS financial figures are shown before MediSA consolidation.
- 300 mTL dividend has been paid
- Share buyback program; 1.463k shares were bought with an average price of 51,71 TL as of Q3'24. Ratio of owned share is 0.81%. The program has been initiated for 3 years and with 750m funds in April 2023.
Strengthened fundamentals
- Strong and exclusive bancassurance partnership with Akbank
- Accelerated growth with strengthened base of DSF
- More Diversified Product Portfolio with a New RoP and Savings Products
- Continued investments on digital, analytics and customer capabilities
- Synergies with Aksigorta both for topline and operational excellence areas
- Regulatory appetite for the growth of both pension and life business supported by incentives
- Strong Shareholder Structure that mixes local expertise and international know how
Future
- Growth & synergy opportunities with MediSA in health business.
- Providing new solutions for ageing population
- Sustainability at the heart of business to build a better future
- Future of work and cultural transformation
- End to end IT transformation with a particular focus on new technologies
Şirkete Özel | Management Reporting: IFRS Financials excluding inflation accounting effect | 2 |
Evolution of Our Performance
Life Business | Credit Linked GWP (mTL) | Stand-Alone Life & PA | Total GWP (mTL) |
Total GWP (mTL) | |||
2,1X | 1,8X | 2X | |
10.277 | |||
5.360 | |||
4.917 | |||
2.512 | 2.672 | 5.184 |
Q3 23 | Q3 24 | Q3 23 | Q3 24 | Q3 23 | Q3 24 |
Market Share | 15,1% | Market Share | 14,4% | ||
4,5pp | 1,9pp | ||||
10,6% | 12,5% |
RoP & Savings TL APE
(mTL)
2,4X 1.902
787
Q3 23 | Q3 24 |
Pension Business | Pension APE (mTL) | Pension Single & | Pension # of NB cases | Pension AuM (mTL) | |
Transfer (mTL) | 1,8X | ||||
2,1X | 1,3X | ||||
9.374 | 2,2X | 20.735 | 355.761 | 209.497 | |
269.925 | |||||
4.435 | 9.514 | 117.979 | |||
Q3 23 | Q3 24 | Q3 23 | Q3 24 | Q3 23 | Q3 24 | Q3 23 | Q3 24 | |
Avg. Case Size (TL) | 1.724 | Market Share | 19,8% | |||||
1.6X | 0,8pp | |||||||
Şirkete Özel | 1.078 | 19,0% | 3 |
Profitability (mTL)
Both Management reporting and SFRS financial figures are shown before MediSA consolidation
Management Reporting Net Profit*
2X | 2.798 |
1.377
Q3 23 | Q3 24 |
SFRS Net Profit
1,9X 2.027
1.055
Q3 23 | Q3 24 |
MediSA (Sabancı Health Insurance Company) consolidation P/L impact is -37mTL
Şirkete Özel | * Management Reporting: IFRS Financials excluding inflation accounting effect | 4 |
Financials
Şirkete Özel
Summary P&L from Segmental Reporting (1)
2019 | 2020 | 2021 | 2022 | 2023 | CAGR | Q3 2023 | Q3 2024 | YoY | Q2 2024 | Q3 2024 | QoQ | |
Credit-Linked Life | 417 | 550 | 938 | 1.538 | 3.560 | 71% | 2.512 | 5.360 | 113% | 1.679 | 1.999 | 19% |
Life RoP & Savings | 431 | 667 | 967 | 2.046 | 3.718 | 71% | 2.504 | 4.611 | 84% | 1.514 | 1.705 | 13% |
Other Life & Personal Accident | 140 | 115 | 115 | 132 | 206 | 10% | 168 | 306 | 82% | 72 | 91 | 26% |
Total Gross Written Premium | 988 | 1.332 | 2.020 | 3.717 | 7.484 | 66% | 5.184 | 10.277 | 98% | 3.265 | 3.795 | 16% |
Pension | 243 | 283 | 349 | 547 | 1.166 | 48% | 792 | 1.800 | 127% | 596 | 655 | 10% |
Credit-Linked Life | 115 | 254 | 379 | 548 | 1.186 | 79% | 743 | 1.852 | 149% | 596 | 777 | 30% |
Life RoP & Savings | 147 | 199 | 367 | 785 | 1.294 | 72% | 848 | 1.512 | 78% | 543 | 539 | -1% |
Other Life & Personal Accident | 59 | 60 | 55 | 56 | 82 | 9% | 61 | 95 | 56% | 37 | 35 | -4% |
Total Technical Profit | 564 | 796 | 1.150 | 1.936 | 3.728 | 60% | 2.444 | 5.260 | 115% | 1.771 | 2.006 | 13% |
General and Administrative Expenses | -352 | -424 | -621 | -1.152 | -2.351 | 61% | -1.529 | -2.845 | 86% | -964 | -1.023 | 6% |
Total Technical Profit after G&A | 212 | 372 | 529 | 784 | 1.377 | 60% | 915 | 2.415 | 164% | 807 | 983 | 22% |
Net Investment Income & Other | 121 | 80 | 200 | 602 | 1.277 | 80% | 985 | 1.436 | 46% | 405 | 481 | 19% |
Profit Before Taxes | 333 | 451 | 729 | 1.386 | 2.654 | 68% | 1.900 | 3.851 | 103% | 1.213 | 1.464 | 21% |
Management Reporting Profit for the | 258 | 350 | 541 | 1.127 | 1.944 | 66% | 1.377 | 2.798 | 103% | 883 | 1.030 | 17% |
Period | ||||||||||||
SFRS Profit for the Period | 215 | 295 | 452 | 875 | 1.425 | 61% | 1.055 | 2.027 | 92% | 615 | 722 | 17% |
Both Management reporting and SFRS financial figures are shown before MediSA (Sabancı Health Insurance Company) consolidation MediSA consolidation SFRS P/L impact is -
37 mTL
Solid IFRS Reporting Framework Robust MCEV / VNB Reporting Framework Granular Analysis and Disclosure on Business Segments Customised Analysis Aligned to Business Strategy
Şirkete Özel | Note: (1) Management Reporting: IFRS Financials excluding inflation accounting effect, unaudited results | 6 |
Solid and Resilient Technical Profitability with Operating Leverage Potential
Technical Profit (mTL) (2)
CAGR: 60%
5.260
CAGR: 61% | 115% | ||||||||||||||||||
3.728 | |||||||||||||||||||
86% | 2.845 | ||||||||||||||||||
2.351 | 2.444 | ||||||||||||||||||
1.936 | |||||||||||||||||||
1.152 | 1.529 | ||||||||||||||||||
796 | 1.150 | ||||||||||||||||||
564 | 621 | ||||||||||||||||||
352 | 424 | ||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | Q3 2023 | Q3 2024 | |||||||||||||
Technical Profit | G&A | ||||||||||||||||||
Şirkete Özel | Note: (1) | Management Reporting: IFRS Financials excluding inflation accounting effect, unaudited results |
(2) | 2019 management reporting figures are restated (deferral of ROP commissions) | |
Expense Ratio (%)(1,2)
Expense ratio=(Opex)/(Management Reporting Proft Before Tax-Opex)
51,4%
48,5% 46,0% 45,4% 47,0%
42,5%
2019 | 2020 | 2021 | 2022 | 2023 | Q3 2024 |
Breakdown of General Expenses, Management Reporting (Q3 2024)
IT Expenses
13%
Sales Expenses
3%
Marketing Expenses
5%
Other | |
10% | HO Personnel |
Expenses | |
Amortization&ETB | 31% |
6% |
7
- Prudent Though Opportunistic Approach on Investments…
Investment and Other Income (TLm) (2) | Shareholders' Asset Portfolio - Q3 2024 (mTL)(1) (2) |
50%
CAGR: 77%
Total: 7.227 mTL
Source: Company information. Management Reporting: IFRS Financials excluding inflation accounting effect, unaudited results | 8 | |
Şirkete Özel | Note: (1) Both managed by AgeSA and Ak Asset Management. |
(2) Derived from IFRS, differs from PL "Total Investment Income & Other" line excluding financial and other expenses,
Overview - Business Lines
Şirkete Özel
Differentiated Management of Trends & Dynamics per Segment
Pension* | Credit-Linked Life | RoP & Savings Life** | ||||||||||||||||||
AUM - Inc. State contribution (mTL) | Gross Written Premium (mTL) | Gross Written Premium (mTL) | ||||||||||||||||||
FMC % (inc. State contribution) | ||||||||||||||||||||
1,3 | 1,3 | 1,1 | 1,2 | 1,2 | 1,2 | 1,3 | CAGR: 71% | 113% | CAGR: 71% | |||||||||||
5.360 | ||||||||||||||||||||
77% | 84% 4.611 | |||||||||||||||||||
CAGR: 57% | ||||||||||||||||||||
216.686 | 3.718 | |||||||||||||||||||
3.560 | ||||||||||||||||||||
141.528 | 122.420 | 2.512 | 2.046 | 2.504 | ||||||||||||||||
75.640 | 938 | 1.538 | 967 | |||||||||||||||||
30.473 | 43.502 | 550 | 667 | |||||||||||||||||
23.133 | 417 | 431 | ||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | Q3 2023 | Q3 2024 | 2019 | 2020 | 2021 | 2022 | 2023 | Q3 2023 Q3 2024 | 2019 | 2020 | 2021 | 2022 | 2023 | Q3 2023 | Q3 2024 |
Technical Profit (mTL) | Technical Profit (mTL) | Technical Profit (mTL) |
As Percentage Of Net Earned Premium | As Percentage Of Net Earned Premium | |||||||||||||||||||
CAGR: 48% | 42 | 49 | 49 | 47 | 49 | 45 | 53 | 111 | 117 | 147 | 139 | 186 | 185 | 147 | ||||||
127% 1.800 | CAGR: 79% | 149% 1.852 | CAGR: 72% | |||||||||||||||||
78% 1.512 | ||||||||||||||||||||
1.166 | 1.294 | |||||||||||||||||||
1.186 | ||||||||||||||||||||
792 | 743 | 785 | 848 | |||||||||||||||||
547 | ||||||||||||||||||||
548 | ||||||||||||||||||||
349 | ||||||||||||||||||||
283 | 379 | 367 | ||||||||||||||||||
243 | 254 | 199 | ||||||||||||||||||
115 | 147 | |||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | Q3 2023 | Q3 2024 | 2019 | 2020 | 2021 | 2022 | 2023 | Q3 2023 Q3 2024 | 2019 | 2020 | 2021 | 2022 | 2023 | Q3 2023 | Q3 2024 |
*Pension figures are including AE | 10 | |
Şirkete Özel | **2019 figures are restated (deferral of ROP commissions) |
*** FMC ıncome, net / Average of Opening and closing AuM