INVESTOR PRESENTATION 18Q1 1
Company & Market Potential 3 Company Overview 9 Financial Highlights 17 2
Company & Market Potential Company Overview Financial Highlights 3
Premium Production Number of Companies (18Q1) Non Life 39 Life 22 Reinsurance 2 Total 63 Number of Foreign Shared Companies (18Q1) Non Life 26 Life 18 Reinsurance 1 Total 45 Premium Production ( Bn) 35,4 39,7 Premium 17Q4 27,3 3,8 5,0 6,8 12.15 12.16 12.17 SOURCE: Association of Insurance Companies Non-Life Life Non Life Life 4
Mandatory Policies in Turkey (Earthquake & MTPL) EARTHQUAKE MTPL 17,7 million houses 52,6% of houses are non-insured SOURCE: turkstat, State Planning Organization, Association of Insurance Companies, bkm, tramer, TCIP 22,2 million vehicles 22,1% of vehicles are non-insured 5
Non-Life Trends in the Sector Non-Life Premium Per Person 505 2016 Premium / GDP (%) Premium Per Person ($) 305 308 361 World 2,81 285 215 219 USA 4,29 2.449 118 165 138 163 UK 2,58 1.031 102 108 93 106 114 123 143 133 124 144 Switzerland 4,12 3.233 Poland 1,92 238 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Premium($) Premium(TRY) Turkey 1,36 144 SOURCE: Treasury, Association of Insurance Companies, Swiss Re Sigma 3,2017 6
Top 10 Companies in the Sector-18Q1 Non Life Companies Premium Production ( Mn) Allianz 11,6% Allianz 1.469 Anadolu 1.378 Other 33,5% Anadolu 10,9% Ak 931 Ziraat 845 Ak 7,4% Axa 840 Top 5 Companies 5.463 6 to 10 2.955 Top 10 Companies 8.418 Other 4.243 Total 12.661 6 to 10 23,3% Axa 6,6% Ziraat 6,7% SOURCE: Association of Insurance Companies 7
Non-life Companies Premium Production Anadolu Sigorta ( Mn) Non-Life Sector ( Mn) 18Q1 17Q1 ΔYoY 18Q1 17Q1 ΔYoY Branch GPW GPW Growth GPW GPW Growth MTPL 376 292 29% 3636 3064 19% MOD 234 189 23% 1827 1581 16% Fire and Nat. D. 209 185 13% 1690 1507 12% Health 218 184 18% 2015 1624 24% Other 342 272 26% 3.494 2.984 17% Total 1.378 1.122 23% 12.661 10.759 18% SOURCE: Association of Insurance Companies 8
Company & Market Potential Company Overview Financial Highlights 9
History o Founded by Mustafa Kemal Atatürk in 1925 o First national insurance company o Main activity: Non-life insurance(until 1991, both life and non-life) o group company 10
Shareholder Structure (18Q1) Other 43% Milli Reasürans Türk Anonim Şirketi 286.550.106 57,3% Trakya Yatırım Holding A.Ş. 35.014.061 7,0% QİNVEST Portföy 28.343.090 5,7% Other 150.092.743 30,0% Total 500.000.000 100,0% (*)Milli Reasürans 57% (*) 77% of Milli Reasürans is owned by T. İş Bankası 11
Distribution Channels(18Q1) İstanbul (2) Samsun Trabzon Bursa Ankara İzmir Adana Gaziantep Antalya 2.344 Professional Agencies 1.356 Işbank Branches N. Cyprus ~25% working exclusively with Anadolu Working exclusively with Anadolu 12
Distribution Channels (18Q1) Indirect 12% Direct 1% Broker 14% 14% Agency 59% 13
Bancassurance Potential o Share of production 14% as of 18Q1 o 192 mn GWP in 18Q1 15 M İşbank Customer 2013 269mn 2014 325mn 2015 423mn 2016 516mn 2017 644mn 14
Production by Regions (18Q1) Marmara 56,2% Black Sea 6,5% Aegean 9,2% Middle Anatolia 14,7% East Anatolia 2,4% Mediterranean 7,9% South East Anatolia 3,1%
Production by Branches (1Q18) BRANCHES 18Q1 17Q1 Rank 18Q1 Market Share 18Q1 Growth MTPL 376 292 1 10% 29% MOD 234 189 1 13% 23% Fire 209 185 1 12% 13% General Liability 52 44 1 15% 18% Watercraft 27 25 1 38% 11% Aircraft 8 4 1 49% 127% Aircraft Liability 9 9 2 36% -3% Health 218 184 3 11% 19% General Losses 180 130 3 9% 38% Other 65 60 -- -- 8% TOTAL 1.378 1.122 2 10,9% 23% SOURCE: Association of Insurance Companies 16
Profitability Combined Ratio 18Q1 17Q1 YoY(%) MOD 97,8% 98,7% -0,9% MTPL 120,2% 95,5% 25,9% Fire 84,2% 90,4% -6,9% Health 109,8% 105,8% 3,8% P.Accident 121,5% 68,4% 77,6% Total 107,3% 102,7% 4,5% 103% 107% 107,1% 107,5% 107,3% 9% 9% 9% 9% 10% 14% 15% 15% 14% 15% 80% 83% 83% 85% 83% 2014 2015 2016 2017 1Q18 Claims Ratio Net Comm. Ratio Expense Ratio 17
Company & Market Potential Company Overview Financial Highlights 18
Growth Performance Total Assets (mn TRY) (*) 5% 6.929 7.276 Tech. Reserves (mn TRY) 3% 4.677 5.840 3.914 4.456 4.568 3.773 2.934 2.282 2014 2015 2016 2017 18Q1 2014 2015 2016 2017 18Q1 Cash and Marketable Sec. (mn TRY) (*) 4.505 5% 4.723 Shareholders' Equity (mn TRY) -1% 1.639 1.628 2.250 2.775 3.832 1.020 1.202 1.223 2014 2015 2016 2017 18Q1 2014 2015 2016 2017 18Q1 (*) Financial loans excluded for 2015,2016, 2017 and 18Q1 19
Financial Statements 8.000 18,0% 7.000 7.032 7.437 15,6% 16,0% 6.000 5.000 5.974 13,2% 14,0% 12,0% 4.000 4.888 4.497 4.669 10,0% 3.773 3.832 8,0% 3.000 2.000 7,6% 2.250 2.775 5,9% 7,4% 6,0% 4,0% 1.639 1.628 1.000 1.051 1.202 1.223 2,0% 0 72 64 88 184 109 2014 2015 2016 2017 18Q1 Assets Shareholder's Equity Investment Portfolio Net Profit ROAE 0,0% 20
Balance Sheet Assets 18Q1 2017 Liabilities 18Q1 2017 Cash + Marketable Sec. 4.885 4.608 Equity Participations 641 690 Other Assets 1.911 1734 Assets 7.437 7.032 Technical Provisions 4.568 4.456 Shareholders' Equity 1.628 1.639 Other Liabilities 1.241 937 Liabilities 7.437 7.032 %6 increase in liquid assets %6 increase in total assets 21
Income Statement 18Q1 ( mn) P&L 18Q1 17Q1 2017 Change (%) (YoY) Change (%) (QoQ) Tech. Income (*) 844 864 857-2% -2% Tech. Expenses -906-887 -903 2% 0% Net Financial Inc. + Other Exp. (*) 200 102 155 96% 29% Deferred Tax 15 6-11 150% -236% Gross Profit 154 85 98 81% 57% Tax -45-23 -13 96% 246% Net Profit 109 62 85 76% 28% (*) Financial income transferred to technical division is excluded 22
Core Indicators (TRY) 18Q1 2017 Change (18Q1-2017) Mcap 2.080mn 1.550mn 34% Equity (Book Value) 1.628mn 1.639mn 0% P / BV 1,28 0,95 35% 2500 1,3% 1,4% 2000 1500 0,7% 0,7% 0,8% 1,0% 2.080 1.639 1.550 1.628 1,2% 1,0% 0,8% 1000 500 710 1.020 795 1.202 1.223 965 0,6% 0,4% 0,2% 0 2014 2015 2016 2017 18Q1 Mcap Equity P/BV 0,0% 23
Profitability 21,46 17,74 18,93 15,40 7,70 9,90 5,90 8,70 7,40 10,54 2014 2015 2016 2017 1Q18 ROE - ANHYT Excluded ROE - Consolidated 24
Highlights-18Q1 Improving Financials Recovering MOD Net Profit Combined Ratio (%) 85,4 109,1 98,7 102,8 110,6 107,5 97,8 61,7 24,3 12,8 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 25
Investment Portfolio Bonds 9% Stocks 4% Other 0% In 18Q1; Dividend from ANHYT 34 mn TRY Investment Income * 172 mn TRY Funds 11% TRY 4,29 bn Average Portfolio Income ~ 16,5% * ANHYT dividend excluded. Deposits 76% Booked Value: 641 Mn Deposits Funds Bonds Stocks Other TRY 4,12 bn at 31.12.2017 26
Thank you For further information please e-mail to: investor.relations@anadolusigorta.com.tr or call Anadolu Sigorta Investor Relations on (+90 850 744 02 54), (+90 850 744 03 59) This presentation contains forward-looking statements and information on the business development of Anadolu Sigorta. These statements may be spoken or written and can be recognized by terms such as expects, anticipates, intends, plans, seeks or words with similar meaning. These statements are based on assumptions relating to the development of the economies of individual countries, and in particular of the insurance industry, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given involve a degree of risk, and the actual developments may differ from those forecasts. Anadolu Sigorta does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its content due to misleading information in this document. 27