ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION. October 2012

Size: px

Start display at page:

Download "ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION. October 2012"

Walter O’Brien’
5 years ago
Views:

1 ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION October 2012

2 Contents Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 2

3 Turkish Economy 2011 Population (End of 2011 ) Urban Population (%) 76,8 Civil Employment (Age15+) Unemployment Rate (%) 9,8 Gross Domestic Product-Current Prices (TL billion) Gross Domestic Product (USD billion) 772 GDP Growth Rate (%) 8,50 GDP per Capita - Current Prices (USD) Budget Deficit to GDP (%) 1,35 Current Deficit to GDP (%) 9,98 Consumer Price Index (%) 10,45 Producer Price Index (%) 13,33 Insurance Premium Income (TL billion) 17,16 Insurance Premium Income/GDP (%) 1,33 Source: Treasury and AIT 3

4 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 Market leader in life insurance and private pension business 4

5 Anadolu Hayat Emeklilik Ownership Structure 5

6 INSURANCE SECTOR IN TURKEY Total Number of Companies Insurance Companies 59 - Non-Life 35 - Life 7 - Life & Pension 16 Reinsurance Companies 1 Source: AIT 6

7 INSURANCE SECTOR IN TURKEY Premium Productions 2011 Total Premium Per Capita (USD) 138 Non-Life Premium Per Capita (USD) 116 Life Premium Per Capita (USD) 22 Total Premium Production (Billion USD) 10,3 Total Premium Production / GDP 1,3% Source: Treasury & AIT 7

8 PRIVATE PENSION SYSTEM IN TURKEY Contributions as of Total Pension Fund System Contributions Per Capita (USD) 99 Total Pension Fund System Contributions (Billion USD) 7,5 Total Pension Fund System Contributions / GDP 1% Source: Treasury & Pension Monitoring Center 8

9 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

10 Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 10

11 Anadolu Hayat Emeklilik Lines of Business Private Pension Individual Corporate Life Insurance Endowment / Permanent Life Term Life Annuities Unemployment Critical illness 11

12 PRIVATE PENSION SYSTEM IN TURKEY Basic Features Started on 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 retirement age is 56 Funds are managed by asset management companies Separate pension accounts for each participant Participants have the right to; Switch funds or pension plans Transfer accounts between pension companies Merge their separate pension accounts at retirement Cease contribution payments Leave anytime 12

13 PRIVATE PENSION SYSTEM IN TURKEY Tax Incentives Current Regulation Contribution Stage Contributions are tax deductible up to %10 of income with a cap of annual minimum wage. Employer contributions are also tax deductible subject to the same limits. Investment Stage Investment income of pension funds are tax exempt. No stamp tax in setting up pension funds. No tax on transactions in pension system. Benefit payments %25 of retirement payments are exempt from income tax. Residual is subject to a witholding tax of 5%. Early surrenders are subject to 15% or 10% (in case of completion of 10 yrs within the system) withholding tax with no exemption. 13

14 PRIVATE PENSION SYSTEM IN TURKEY Upcoming Regulation What Is New? 1. Totally different tax advantage structure for the participants (enforcement date: ): An additional pension account will be opened in the name of each participant, called Government Contribution Sub-account. Government will install an amount equal to 25% of each contribution made by the participant, with a cap of 25% of annual minimum wage. Vesting Period: Participants will earn: %15 of this additional account in 3 years, 35% in 6 years, 60% in 10 years, and 100% in 10 years and 56 years of age. To avoid abuse of right, government will not make contribution payments until , for the participants who withholds any of his/her accounts after Withholding tax will be applied only on the investment income (enforcement date: ). 3. Real estate and precious metal based pension funds will be established after the announcement of processing complementary regulations. 4. After completing the initial two years in the system, participants will be able to change their pension companies once a year To increase participant satisfaction, government decreased Fund Management and Management fees. (enforcement date: )

15 15 Private Pension System In Turkey

16 Anadolu Hayat Emeklilik Distribution Network Bancassurance Direct Sales 1234 Branches 331 Branches 134 Branches 87 Branches 3 Branches 307 Licensed Salesperson Total of 5 Banks & 1789 Branches Agents & Brokers 247 Exclusive Agencies 56 Brokers Other Internet Call Centre 16

Anadolu Hayat Emeklilik Pension Production By Channel 2012 / 9 2010 2011 2012 / 9 Direct to Customer 12% 10% 9% Broker 2% 2% 1% Agency 10% 13% 12% BANCASSURANCE 76% 75% 78% Is

17 Anadolu Hayat Emeklilik Pension Production By Channel 2012 / / 9 Direct to Customer 12% 10% 9% Broker 2% 2% 1% Agency 10% 13% 12% BANCASSURANCE 76% 75% 78% Is Bank 4% 3% 2% Is Bank + Direct Sales 41% 42% 51% Is Bank + Agency 14% 13% 11% HSBC 16% 15% 12% TEB + Agency 2% - - Anadolubank - 1% 1% Albaraka - 1% 1% Total 100% 100% 100% 17

18 Key Drivers For Growth In Pension Business Economic Improvements in Turkey Structural reforms Extended maturities Purchasing power Lack of confidence in the social security system Advantages of Pension System Incentives Transparent system Participating to the investment process Mobility of the pension accounts 18

19 Key Drivers For Our Market Leadership Distribution network Diversified products Fund performance Charging structure Service quality 19

20 Fund Size (TL mio) Number Of Participants Private Pension System In Turkey Overview as of / Funds (TL mio) Number Of Participants 20

21 Pension System Outlook Fund Size (Million TL) 2009 % Change % Change % Change % Change AHE % % % % Sector % % % % Market Share 20,7% 21,5% 21,8% 21,1% 21,3% Number of Participants (Thousands ) AHE % % % 576 8% 620 Sector % % % % Market Share 21,5% 22,0% 22,1% 21,8% 20,6% 21

22 Private Pension System Sectoral Expectations - 1 Consolidated Expectations of Pension Companies for 2012 Number of New Participants Within the Year Total Number of Participants at the Year-end Net Cumulative Amount of Contributions at the Year-end (TL) Net Cumulative Amount of Accumulations at the Year-end (TL) Source: Pension Monitoring Center - Most Probable Scenario 22

23 Private Pension System Sectoral Expectations - 2 Consolidated Expectations of Pension Companies for 2012 (Year-end) Number of Contracts to be Transferred Amount of Transfers (TL) Expected Number of Contracts to Withdraw Expected Amount of Accumulations to be Withdrawn (TL) Expected Number of Participants to Retire Expected Amount of Accumulations Related to Retired Participants (TL) Source: Pension Monitoring Center - Most Probable Scenario 23

24 Private Pension System In Turkey Overview as of XXX XXX XXX XXX XXX XXX XXX 24 XXX XXX XXX XXX

25 Private Pension System In Turkey Lapse Ratio: Sector Average vs. Anadolu Hayat Emeklilik , Weekly Data Source: Pension Monitoring Center 25

AHE Pension Products Fund Menu As of 31.10.

Fund Bond Fund International Mixed Fund Eurobond $/ Fund

26 AHE Pension Products Fund Menu As of Conservative Balanced Aggressive Cash Fund Conservative Fund Bond Fund International Mixed Fund Eurobond $/ Fund Alternative Balanced F. Balanced Fund Equity Fund Agressive Fund BRIC Fund 54 % 28 % 18 % 26

27 Pension Funds & Mutual Funds T-Bills & Money 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 ,10 60,77 11,36 0,47 0,85 14, ,40 60,11 7,99 1,38 0,61 16,51 MUTUAL FUNDS BANKS & Others ,57 23,24 46,61 9,15 0,38 17, ,15 21,54 39,30 8,57 0,44 25,99 Source: Capital Markets Board of Turkey 27

28 Pension Funds Net Asset Values as of

29 Pension Funds Weighted Average Returns as of

30 Anadolu Hayat Emeklilik Pension Funds Weighted Average Return Performance Weighted Average Returns (%) % 30

31 Pension Products Charging Structure What Is New? Entrance Fee Management Fee Fund Management Fee 31 At the phase of entrance to the System for each pension account Can be deferred till the leaving date or can be collected by installments Max. Limit: ½ of gross monthly minimum wage By ; Can be charged only once for the first account of the participant. Can be deferred for a maximum of 10 years, depending on the vesting period Max.%10 of the entrance fee can be collected in advance Max. Limit: Gross monthly minimum wage To cover administrative expenses On contributions Legal upper limit: 8 % By ; To cover administrative expenses On contributions Legal upper limit: 2 % Extra management fee can be charged in case of ceasing contribution payments To cover fund management expenses On NAV of each fund Legal upper limit: 1/10,000 (daily) 3,65% (annual) By ; To cover fund management expenses Defined as Total Fund Charges including Fund Management Fee On NAV of each fund Depending on the risk categories of funds, legal upper limits for total fund charges are: 1,09% (annual) for liquid/cash funds 1,91% (annual) for conservative funds 2,28% (annual) for actively managed and equity funds

32 Life Insurance In Turkey Market Shares (Top 7 in Premium Production) 35% 30% 27% 28% 30% 25% 20% 16% 15% 13% 10% 5% 11% 10% 9% 4% 6% 7% 6% 5% 5% 4% 5% 5% 4% 4% 3% 0% 0% XXX XXX XXX XXX XXX XXX AHE ZİRAAT GARANTI HALK YKE VAKIF FİNANS

33 Life Insurance In Turkey Market Shares (Mathematical Reserves) % (Mio TL) % (Mio TL) AHE 40% % XXX 6% % 612 XXX 10% % 549 XXX 9% 467 8% 463 XXX 8% 413 7% 416 XXX 6% 276 5% 285 Others 21% % 1202 TOTAL 100% %

34 34 Anadolu Hayat Emeklilik Profit Sharing Rates TL Based Life Products

35 35 Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies 2010 vs 2011

36 36 Anadolu Hayat Emeklilik - Life Portfolio Total Number of Policies 2011/9 vs 2012/9

37 37 Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL)

38 38 Anadolu Hayat Emeklilik - Life Portfolio Total Premium Production (TL) 2011/9 vs 2012/9

39 39 Anadolu Hayat Emeklilik - Life Portfolio Premium Production New Business (TL) vs 2011

40 40 Anadolu Hayat Emeklilik - Life Portfolio Premium Production New Business (TL) /9 vs 2012/9

Anadolu Hayat Emeklilik Life Production By Channel 2012 / 09 2010 2011 2012 / 09 Agency & Broker 35% 29% 19% Direct to Customer 32%

41 Anadolu Hayat Emeklilik Life Production By Channel 2012 / / 09 Agency & Broker 35% 29% 19% Direct to Customer 32% 27% 11% BANCASSURANCE 33% 44% 70% Is Bank 24% 36% 63% Is Bank & Direct Sales & Agency 8% 7% 6% HSBC 1% 1% 1% Total 100% 100% 100% 41

42 Life Products Charging Structure Agency Commission Management Fee Fund Charge Paid out to our distribution channels Charged on premiums No limits since To cover administrative expenses Charged on premiums No limits To cover fund management expenses Charged on current year s returns Max. 15% of the returns 42

43 Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 43

44 Anadolu Hayat Emeklilik Financial Highlights & Key Metrics TL Million /09 Written Premium General Technical Profit Life Technical Profit Private Pension Technical Profit Period Net Profit Private Pension AUM Math. & Profit Sharing Provisions Shareholders' Equity Paid-in Capital Total Assets Key Valuation Metrics /09 ROAE 20% 16% 15% 13% Earnings Per Share 0,26 0,24 0,22 0,20 P/E 15,6 18,8 12,8 22,4 P/BV 2,9 3,0 1,9 2,8 ANHYT /10 Average Monthly Traded Volume (Million TL) 45,81 36,37 36,78 38,90 44

45 Anadolu Hayat Emeklilik Dividend Payout * 2011* Gross Profit (TL) Net Profit (TL) Net Distributable Profit (TL) Dividend to Shareholders (TL) Cash Bonus Share Cash / Net Profit (%) 79,39 69,37 54,99 63,57 Cash / Net Distributable Profit (%) 83,65 72,69 57,82 67,02 Bonus Share / Net Profit (%) Bonus Share / Net Distributable Profit (%) Dividend to Shareholders / Net Profit (%) 79,39 69,37 54,99 63,57 Dividend to Shareholders / Net Distributable Profit (%) 83,65 72,69 57,82 67,02 45 * Consolidated

46 Anadolu Hayat Emeklilik Capital Adequacy (TL) (TL) (TL) Capital required for Non-Life Branch Capital required for Life Branch Capital Required for Pension Branch TOTAL CAPITAL REQUIRED TOTAL CAPITAL EXCESS CAPITAL

47 Anadolu Hayat Emeklilik Income Statement TECHNICAL PART (mio TL) NON-LIFE TECHNICAL INCOME 0,17 0,32 NON-LIFE TECHNICAL EXPENSES -0,40-0,33 I - NON-LIFE TECHNICAL PROFIT / LOSS -0,23-0,01 LIFE TECHNICAL INCOME 551,20 563,17 LIFE TECHNICAL EXPENSES -537,25-528,72 II- LIFE TECHNICAL PROFIT / LOSS 13,95 34,45 PENSION FUND TECHNICAL INCOME 95,16 113,85 PENSION FUND TECHNICAL EXPENSES -82,04-113,85 III- PENSION FUND TECHNICAL PROFIT / LOSS 13,12 - IV- GENERAL TECHNICAL PROFIT / LOSS 26,84 34,44 INVESTMENT INCOME 70,03 57,22 INVESTMENT EXPENSES -7,90-7,60 PROFIT FROM OTHER & EXTRAORDINARY ACTIVITIES -2,14-5,98 47 V- COMPANY ASSETS PROFIT / LOSS 59,99 43,64 VI- PERIOD PROFIT / LOSS (IV+V) 86,83 78,08 VII- PROVISION FOR TAX & OTHER LEGAL LIABILITIES -15,44-13,41 IX- PERIOD NET PROFIT / LOSS (VII - VIII) 71,39 64,67

48 Anadolu Hayat Emeklilik Income Statement TECHNICAL PART (mio TL) 2011 / / 09 NON-LIFE TECHNICAL INCOME 0,19 0,54 NON-LIFE TECHNICAL EXPENSES -0,25-0,70 I - NON-LIFE TECHNICAL PROFIT / LOSS -0,06-0,16 LIFE TECHNICAL INCOME 433,56 365,39 LIFE TECHNICAL EXPENSES -409,20-337,74 II- LIFE TECHNICAL PROFIT / LOSS 24,36 27,65 PENSION FUND TECHNICAL INCOME 84,46 99,93 PENSION FUND TECHNICAL EXPENSES -83,66 83,56 III- PENSION FUND TECHNICAL PROFIT / LOSS 0,80 16,37 IV- GENERAL TECHNICAL PROFIT / LOSS 25,10 43,86 INVESTMENT INCOME 50,02 46,72 INVESTMENT EXPENSES -5,62-5,63 PROFIT FROM OTHER & EXTRAORDINARY ACTIVITIES -6,33-5,26 48 V- COMPANY ASSETS PROFIT / LOSS 38,07 35,83 VI- PERIOD PROFIT / LOSS (IV+V) 63,17 79,69 VII- PROVISION FOR TAX & OTHER LEGAL LIABILITIES -11,62-18,79 IX- PERIOD NET PROFIT / LOSS (VII - VIII) 51,55 60,90

49 Anadolu Hayat Emeklilik Balance Sheet ASSETS (mio TL) I- LIQUID ASSETS II- MARKETABLE SECURITIES IIII- RECEIVABLES IV- INVESTMENTS 6 9 V- FIXED ASSETS VI- OTHER ASSETS (NET) 5 13 TOTAL ASSETS LIABILITIES AND SHAREHOLDERS EQUITY I- PAYABLES II- TECHNICAL PROVISIONS IIII- OTHER PROVISIONS 8 9 IV- TAX PROVISIONS 5 10 V- SHAREHOLDERS' EQUITY TOTAL LIAB. AND SHAREHOLDERS EQUITY

50 Anadolu Hayat Emeklilik Balance Sheet ASSETS (mio TL) 2011 / / 09 I- LIQUID ASSETS II- MARKETABLE SECURITIES IIII- RECEIVABLES IV- INVESTMENTS 9 9 V- FIXED ASSETS VI- OTHER ASSETS (NET) 9 11 TOTAL ASSETS LIABILITIES AND SHAREHOLDERS EQUITY I- PAYABLES II- TECHNICAL PROVISIONS IIII- OTHER PROVISIONS 8 16 IV- TAX PROVISIONS V- SHAREHOLDERS' EQUITY TOTAL LIAB. AND SHAREHOLDERS EQUITY

51 Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 51

Anadolu Hayat Emeklilik Stock Data Year MCAP (Million $) 2005 401

52 Anadolu Hayat Emeklilik Stock Data Year MCAP (Million $)

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.

53 THANK YOU For further information: Website: 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 accuracy, completeness or correctness of such information. This document has been issued for information purposes only. The financial reports and statements announced by Anadolu Hayat Emeklilik A.Ş. to the public and relevant corporations are accepted to be the sole material. Anadolu Hayat Emeklilik A.Ş. does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents due to the misleading information in this document. All estimations contained in this document are opinions of Anadolu Hayat Emeklilik A.Ş. and can be subject to change without notice. This document can not be interpreted as an advice to the investors and Anadolu Hayat Emeklilik A.Ş. can not be held responsible for the results of investment decisions made on account of this document. This document has been issued specially to the person, whom the document is concerned and may not be reproduced, distributed or shared with third parties for any purpose.

ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION. October 2013

ANADOLU HAYAT EMEKLİLİK A.Ş. COMPANY PRESENTATION October 2013 Contents Corporate Profile Lines of Business - Life & Pensions Financials Stock Data 2 Turkish Economy 2012 Population (End of 2011 ) 75.627.384