Presentation to
Investors
FY 2024
Earning Release
February 17 2025
Şirkete Özel
A Story of Solid Profitable Growth
Pension AUM (inc AE)
Total GWP (Life+PA)
Total Technical Profit (1)
Net Technical Profit (1)
Expense Ratio (1,2)
Profit for the Period (Management Reporting) (1)
Profit for the Period (SFRS)
RoE
(Management Reporting) (1)
Solvency I Ratio
Dividend Payments
Shareholders' Equity (1)
2020
30.5 bTL 1.332 mTL
796mTL
372 mTL
48.5 %
- mTL
- mTL 36,3%
196%
100 mTL 1.076mTL
2023
141.5 bTL 7.484 mTL
3.728 mTL
1.377 mTL
47%
1.944 mTL
1.425 mTL
57,7%
209%
150 mTL 4.287mTL
2024
228.3 bTL 14.317 mTL
7.496 mTL
3.413 mTL
42,7%
3.984 mTL
2.911 mTL
64,5%
198%
300 mTL
7.910 mTL
CAGR 2020-24
65%
81%
75%
74%
-1.4 pts
84%
77%
7 pts
65%
YoY
2023-24
61%
91%
101%
149%
-4.3 pts
105%
104%
7.6 pts
85 % |
Leadership among private companies in terms of Pension and AE AUM
Leadership among private companies in terms of Total Life&PA GWP Success of strong growing RoP&New savings portfolio and credit life product
Strong growth resulting from high profitability in life and pension scalability
Increase in net technical profit resulting from high technical profitability and controlled expenses against high inflation
Expense ratio increased mainly due to inflation adjustments to salaries
Strong performance thanks to strong technical income increase coming from all business lines despite lower f/x income increase
Significant incrase in SFRS Profit , due to higher financial income and net technical profit
Strong profit combined with lean capital
Well managed capital position and dividend payment under volatile macroeconomic environment with growing appetite
Steady increase in shareholders' equity reflects active management of capitalization to fund business growth
VNB w/RW | 1.880 mTL 5.889 mTL |
214% |
VNB has increased owing to increased Pension and Credit Life sales. The newly launched ROP product and expanding Savings product also contributed to 2024 VNB growth.
Note: (1) Management Reporting: IFRS Financials excluding inflation accounting effect
Şirkete Özel (2) Expense ratio=(Opex)/(Management Reporting Proft Before Tax-Opex)2 «Opex=G&A+Financial Expense»
Summary and Outlook
Agesa strengthened its leadership in both Pension AuM and Life & PA premium production among private companies 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 Performance
- #1 position in Private Pension AuM among private companies; 19,3% m.s.
- #1 position in Total Life & PA GWP among private companies; 14% m.s.
- Robust net profit growth both in terms of Management Reporting and SFRS with 105% and 104% yoy increase respectively
- 786 mTL (629 in April, 157 in December) has been paid as capital advance to Medisa Sabancı Health Insurance Company. AgeSA has become the sole shareholder with 100% share.
- Both Agesa Management reporting and SFRS financial figures are shown before Medisa consolidation.
- 300 mTL dividend has been paid
- Share buyback program; 1.634k shares were bought with an average price of 61,34 TL as of FY 24. Ratio of owned share is 0.91%. 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 | 3 |
Evolution of Our Performance
Life Business
Credit Linked GWP (mTL) | Stand-Alone Life & PA | Total GWP (mTL) |
Total GWP (mTL) | ||
2,1X | 1,8X | 1,9X |
14,317 | ||
7,424 | ||
6,893 | ||
3,560 | 3,924 | 7,484 |
23 FY | 24 FY | 23 FY | 24 FY | 23 FY | 24 FY |
Market Share | 14.8% | Market Share | 14.0% | ||
3,5pp | 1,3pp | ||||
10.7% | 12.7% |
RoP & Savings TL APE
(mTL)
2,4X
2,685
1,141
23 FY | 24 FY |
Pension Business | Pension APE (mTL) | Pension Single & | Pension # of NB cases | Pension AuM (mTL) | ||
Transfer (mTL) | ||||||
1,6X | ||||||
1,9X | 12,841 | 1,9X | 1,2X | |||
28,798 | ||||||
467,565 | 220,328 | |||||
387,547 | ||||||
6,748 | 15,06 | 136,681 | ||||
3 | ||||||
23 FY | 24 FY | 23 FY | 24 FY | 23 FY | 24 FY | 23 FY | 24 FY |
Avg. Case Size (TL) | 1,787 | Market Share | -0,1pp | ||||
1.6X | 19.4% | ||||||
1,118 | 19.3% |
Şirkete Özel | 4 |
Profitability (mTL)
Both Management reporting and SFRS financial figures are shown before Medisa consolidation
Management Reporting Net Profit*
2X | 3,984 |
1,944
23 FY | 24 FY |
SFRS Net Profit
2X 2,911
1,425
23 FY | 24 FY |
Medisa (Sabancı Health Insurance Company) consolidation P/L impact is -43,6mTL
Şirkete Özel | * Management Reporting: IFRS Financials excluding inflation accounting effect | 5 |
Financials
Şirkete Özel
Summary P&L from Segmental Reporting (1)
2020 | 2021 | 2022 | 2023 | 2024 | CAGR | YoY | 3Q 24 | 4Q 24 | QoQ | |
Credit-Linked Life | 550 | 938 | 1.538 | 3.560 | 7.424 | 92% | 109% | 1.999 | 2.063 | 3% |
Life RoP & Savings | 667 | 967 | 2.046 | 3.718 | 6.528 | 77% | 76% | 1.705 | 1.917 | 12% |
Other Life & Personal Accident | 115 | 115 | 132 | 206 | 365 | 33% | 77% | 71 | 91 | 26% |
Total Gross Written Premium | 1.332 | 2.020 | 3.717 | 7.484 | 14.317 | 81% | 91% | 3.795 | 4.040 | 6% |
Pension | 283 | 349 | 547 | 1.166 | 2.544 | 73% | 118% | 655 | 744 | 14% |
Credit-Linked Life | 254 | 379 | 548 | 1.186 | 2.703 | 81% | 128% | 777 | 850 | 9% |
Life RoP & Savings | 199 | 367 | 785 | 1.294 | 2.111 | 80% | 63% | 539 | 602 | 12% |
Other Life & Personal Accident | 60 | 55 | 56 | 82 | 138 | 23% | 68% | 35 | 43 | 21% |
Total Technical Profit | 796 | 1.150 | 1.936 | 3.728 | 7.496 | 75% | 101% | 2.006 | 2.240 | 12% |
General and Administrative Expenses | -424 | -621 | -1.152 | -2.351 | -4.082 | 76% | 74% | -1.023 | -1.238 | 21% |
Total Technical Profit after G&A | 372 | 529 | 784 | 1.377 | 3.413 | 74% | 149% | 983 | 998 | 2% |
Net Investment Income & Other | 80 | 200 | 602 | 1.277 | 2.071 | 126% | 62% | 481 | 635 | 32% |
Profit Before Taxes | 451 | 729 | 1.386 | 2.654 | 5.484 | 87% | 107% | 1.464 | 1.634 | 12% |
Management Reporting Profit for the | 350 | 541 | 1.127 | 1.944 | 3.984 | 84% | 105% | 1.030 | 1.186 | 15% |
Period | ||||||||||
SFRS Profit for the Period | 295 | 452 | 875 | 1.425 | 2.911 | 62% | 104% | 722 | 882 | 23% |
Both Management reporting and SFRS financial figures are shown
before Medisa (Sabancı Health Insurance Company) consolidation
Medisa consolidation SFRS P/L impact is -43.6mTL
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 | 7 |
Solid and Resilient Technical Profitability with Operating Leverage Potential
Technical Profit (mTL) (2)
CAGR: 75%
7,496
CAGR: 76% | 101% |
4,082
3,728
74% | |||||||||||||||
1,936 | 2,351 | ||||||||||||||
796 | 1,150 | 1,152 | |||||||||||||
621 | |||||||||||||||
424 | |||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | |||||||||||
Technical Profit | G&A | ||||||||||||||
Şirkete Özel | Note: (1) Management Reporting: IFRS Financials excluding inflation accounting effect, unaudited results |
Expense Ratio (%)(1)
Expense ratio=(Opex)/(Management Reporting Proft Before Tax-Opex)
48.5% | 46.0% | 45.4% | 47.0% |
42.7%
2020 | 2021 | 2022 | 2023 | 2024 |
Breakdown of General Expenses, Management Reporting (2024)
Sales Personnel | IT Expenses |
Expenses | 12% |
32% |
Sales Expenses
5%
Marketing Expenses
4%
Other | |
10% | HO Personnel |
Expenses | |
Amortization&ETB | 31% |
6% |
8
- Prudent Though Opportunistic Approach on Investments…
Investment and Other Income (TLm) (2) | Shareholders' Asset Portfolio -2024 (mTL)(1) (2) |
68%
CAGR: 114%
Total: 8.258mTL
Source: Company information. Management Reporting: IFRS Financials excluding inflation accounting effect, unaudited results | 9 | |
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