AksigortaPresentation

8/6/2019 AksigortaPresentation

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Investor Presentation

The Ma or Pla er of the Market

Investor Meeting, 2011

MeclisMeclis--i Mebusan Cad. 67i Mebusan Cad. 67

Tel : (+90212) 393 43 00Tel : (+90212) 393 43 00Fax : (+90212) 243 08 61Fax : (+90212) 243 08 61

www.aksigorta.com.trwww.aksigorta.com.tr


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Agenda

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The Scene Performance Strategic Plan

Development in Turkish Economy

735

618

736

GNP (billion $)

5.9%

8.9%Real Growth in GDP

197

2001 2008 2009 2010

.

-4.7%

1997-2001 2002-2008 2009 2010

3 020

10,4368,590 10,079

Per Capita ($)71.6%

CPI

2001 2008 2009 2010

. .

1995-2001 2002-2009 2010

2

Source: Turkstat, Treasury


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Non-life Insurance Sector and GDP Growth

inflation ad usted in Turke

17.5%

20%

9.4%8.4%

8.9%

12.7% .

8.9%8.1%

10%

.

4.7% 0.7%

-1.8%-

0%

2004 2005 2006 2007 2008 2009 2010

-4.7% - .

-10%

-

GDP Growth Non-Life ns. Growth

3

Source: Turkstat, Treasury


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Low Penetration Level in Turkey Indicators show that the non-life insurance sector has huge growth potential

in Turkey

Turkey is 17th in GDP rankings, but 28th in non-life premium rankings YE09

4.5%

3.6%

Premiums as a % of GDP

3.0% .

2.5%2.2%

1.9%

1.4%1.5% 1.5% 1.4%

1.1% 1.0%

0.5%

World North Indust. Europe Emerging Russia Bulgaria Poland Hungary Brazil Romania Turkey Greece Egypt

4

Source: Swiss Re (Sigma: 2/2010)


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Non-Life Insurance Growth Potential in Turkey TL 12 billion premium production in 2010

Premium Production in Non-life

CAGR

14%

5,264 6,3488,015 9,250 9,820

, ,

(TL million)

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Source: Association of the Insurance and Reinsurance Companies of Turkey and Aksigorta


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Insurance Companies in Turkey 57 insurance companies in the sector.

# of Insurance Companies37 38

# of Foreign Companies

21 21 24 24 22 2432 32 35 36 33 33

53 53 55 57

9 1016 16 15 16

1114

18 2022 2220

24

2005 2006 2007 2008 2009 2010

Life/Pension NonLife Total2005 2006 2007 2008 2009 2010

Life/Pension NonLife Total

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Source: Association of the Insurance and Reinsurance Companies of Turkey


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Competition in Non Life Business Market shares of the leading insurance companies in Turkey since 2004.

12.6% 12.7%13.2%13.2% 13.0% 13.2% 12.9%

.

12.0% 11.8%12.2%

11.8%12.4%

12.3%

10.0% 9.7%

Anadolu

Allianz

Aksigorta

8.7%

. . .

8.6%7.9%

8.1% 8.3% 8.6% 8.5% 8.5%

7.7%7.7%7.4%

7.3%7.1%6.9% 7.2% 7.2%

Gne

6.8%6.4%

. ..6.4% 6.4%

2004 2005 2006 2007 2008 2009 2010

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Further Expectations for Non Life Business

(e.g. Capital Adequacy, Increased Insurance Technical Provisions)

More transparent insurance business

(e.g. Insurance Contract Information, Insurance Arbitration)

Structure

Motor business continues to be the locomotive of the sector

Areas where further growth is expected:Liability (Product, Professional), Credit, Mortgage, Agriculture, Health

Retail & SME businesses are also ex ected to row

Growth

Price competition in motor own damage and in TPL after free tariff

Service quality and speed is a key distinguishing factor between competitorsCompetition

Operational profitability is decreasing because of price competition

The outlook for the reinsurance sector in Turkey for 2009 looks positive despiteProfitabilitythe difficulties being faced by major foreign reinsurers internationally

M&A will continueM&A

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Sabanc Group in Insurance & Pension Business

Partnership Structures (After Spin-off)

Non-Life (2010) Life (2010)rem ums : m on

Market Share : 7.7 %

Market Rank : 4thCompany

Total E uit : TL 372 million

rem ums : m on

Market Share : 6 %

Market Rank : 5th Company

ens on(2010)AUM : TL 2,542 million

Market Share : 21 %

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Source: Aksigorta


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Major Player in Non-Life Business GWP is TL 886 million in 2010

CAGR

13%

794 829851 886Premium Production

Sector

CAGR

14 %

417

516

( TL Million)

2004 2005 2006 2007 2008 2009 2010

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Source: Aksigorta


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Multi-Line Company Multi-Channel Company

Active in all non-life branches with variety of products Wide Distribution Network

Package policies with extensive and high coverage limits

Simple new products in profitable branches

10 Regional Offices and 2 Regional Representative

Offices assist the Country-wide Distribution Channels

Engineering, 3.9%

Marine, 2.1% Agriculture, 1.3%

Premium Distribution, 2010/12

Direct 10%Premium Production % of Distribution Channels

Motor, 48.6%Health, 15.5%

Motor Own

Damage : 34.8%

1,511884 bank

Fire, 16.9%

TPL: 13.9%

Agency 68%

an agenc esranc es

OtherAccident, 11.5%

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Source: Aksigorta


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Profitability / Combined Ratio

*

**113%

103% 102

108%107%

98%

107%102%

100%100%

92% AksigortaNon-Life Sector

2005 2006 2007 2008 2009 2010

(*) Except additional TPL reserves : 95%

(**) Except additional new reserves due to legislation : 100%

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2010 2012 Targets

In 2012, combined ratio 2%lower than sector average

Being the sector leader in2012

Customer satisfaction overthe sector average

Raising the employeesatisfaction

Configuration ofhuman resources

management to createthe organizational

climate

More benefit byAkbank customer

database

Establishing newdistribution channels

where easy and simpleproducts can be sold

Creating actuarial andrisk management and

internal controlsystems

Improvement orelimination of

operational processeswhich has no benefit

to customer

Innovation forundiscovered andexisting customers

needs

Reorganization ofmarketing

management function

Cooperation with bigcorporate names (e.g.Sabanc and Turkcell)

Focus on inorganicgrowth opportunities

Investment indistribution channels

to increase theirgrowth rates

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Appendix

Financial Overview

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*

Summary of The Balance Sheet

Cash and Cash Equivalents 293 276 407 268

Marketable Securities (Financial Assets and

Investments with Risks on Policy Holders)* 211 228 213 255

Participations (Financial Assets) 30 30 30 30

Fixed Assets 44 36 43 35

Other Assets 2,345 88 89 108

Total Assets 3,280 1,033 1,012 1,119

Payables Arising From Operations 71 61 30 59

Insurance Technical Provisions 488 527 527 629

Short Term 475 511 511 613

Long Term 13 15 15 16

Tax Provisions 5 16 16 9

Other Liabilities 47 58 43 58

' ,

(Nominal) Capital 306 306 306 306

Total Liabilities and Shareholders' Equity 3,280 1,033 1,012 1,119

*Due to spin-off which was completed on January 14, 2010, Akbank and AvivaSa shares are classified under the Other

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Assets as Assets classified as held for distribution to owners.


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Summary of The Income Statement

(TRY Million) 2009 YE 2010 YE 2010 3M 2011 3M

Premiums Written 851 886 267 319

Premiums Written (Net) 548 635 186 244

Earned Premiums (Net) 542 599 138 165

- - - -

Total Technical Profit 17 22 -15 -6

Net Invesment Income 18 -13 10 -2

Profit (Loss) Before Tax 35 9 -5 -8

Tax 7 1 2

- -

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Key Ratios

2009 YE 2010 YE 2010 3M 2011 3M

Claims Ratio (Net) 83% 74.9% 78% 78%

Expense Ratio (Net) 10% 11.0% 11% 10%

Commission Ratio (Net) 13% 15.8% 18% 15%

Combined Ratio(Net) 107% 102% 107% 103%

- -

ROE 1% 0% -4% -7%

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ore gn ompan es an a es ransac ons Foreign companies are taking position in a high growth emerging market Foreign companies total market share is increasing

Foreign

Company

Local

Company

Equity

Share

ar e

Share

(YE08)

ar e

Share

(YE09)

ar e

Share

(YE10)

Ent. / Trans .

Date

Trans.

%

rans.

Value

(Mio. )

ompany

Value

(Mio. )

Axa Axa Sigorta (Axa-Oyak) 100% 12.6% 12.7% 13.2% 1994 / 2M08 35% 240 690

Allianz Allianz Sigorta (Ko-Allianz) 100% 9.2% 9.2% 8.6% 1988 / 4M08 47% 248 527

ERGO Er o Si orta svi re 100% 7.1% 6.7% 6.0% 7M08 75% 213 285

Gne 30% 7.2% 7.2% 6.4% 1998

Baak Groupama (Baak) 100% 5.3% 5.9% 6.0% 1991 / 2M06 57% 202 355

Gven Sigorta 100% 2.3% 6M08 100% 184 184

Eureko BV Eureko Sigorta (Garanti) 80% 4.9% 5.4% 5.4% 6M07 80% 365 455

Mapfre SA Mapfre Genel 90% 3.5% 3.6% 3.6% 3M07 80% 285 355

Groupama SA

TBIH FS Ray Sigorta 84% 2.8% 2.5% 2.2% 6M07 58% 61 105

Aviva Aviva Sigorta 100% 2.6% 2.7% 2.4% 1988

HDI Int. HDI Sigorta (hlas) 100% 1.5% 1.7% 1.9% 9M06 100% 17 17

Zurich Zurich Sigorta (TEB) 100% 1.9% 2.1% 2.0% 2M08 100% n.a n.a

Chartis (AIG) Chartis (AIG Sigorta) 100% 1.9% 1.7% 1.5% 1976

Liberty MG Liberty Sigorta (eker) 90% 0.8% 0.5% 0.5% 9M06 64% 35 55

Generali Generali Sigorta 100% 1.0% 0.8% 0.7% 1989

Coface SA Coface Sigorta 100% 0.2% 0.1% 0.2% 2006

Atradius Atradius Sigorta 100% 0.0% 0.0% 0.0% 2007

Cardif Cardif Sigorta 100% 0.0% 0.1% 0.1% 2007

Dubai Ins.

GroupDubai Group Sigorta 98% 0.0% 0.8% 1.1% 2008

Ace European Ace Europe Sigorta 100% 0.0% 0.2% 2008

Harel Group T.Nippon 96% 0.0% 0.2% 2008

Turkapital Neova Sigorta 100% 0.0% 0.5% 2009

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NKSJ Sompo Japan - Fiba 93% 3.2% 3.0% 2.8% 11M10 90% 246 273

68.0% 66.8% 65.5%



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The information and o inions contained in this document have been com iled or arrived at b

Aksigorta A. from sources believed to be reliable and in good faith, but no representation or warranty,

expressed or implied, is made as to their accuracy, completeness or correctness. All opinions and estimates

contained in this document constitute the Companys judgement as of the date of this document and are subject

to chan e without notice.

The information contained in this document is published for the assistance of recipients , but is not tobe relied upon as authoritative or taken in substitution for the exercise of judgement by any recipient. The

Company does not accept any liability whatsoever for any direct or consequential loss arising from any use of

s ocumen or s con en s. s ocumen s s r c y con en a an may no e repro uce , s r u e or

published for any purpose.

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