INVESTOR PRESENTATION 18Q3 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 Non Life 39 Life 23 Reinsurance 2 Total 63 Number of Foreign Shared Companies Non Life 26 Life 18 Reinsurance 1 Total 45 Premium Production ( Bn) 35,4 39,7 18M9 (bn TRY) Life 5,4 14% 27,3 Non-Life 34,0 86% 5,0 3,8 12.15 12.16 12.17 6,8 SOURCE: Association of Insurance Companies Life Non-Life Non Life Life 4
Mandatory Policies in Turkey (Earthquake & MTPL) EARTHQUAKE MTPL & MOD 17,7 million houses 22,5 million vehicles 52,6% of houses are non-insured 22,7% of vehicles are non-insured (MTPL) 74% of vehicles are non-insured (MOD) SOURCE: turkstat, State Planning Organization, Association of Insurance Companies, bkm, tramer, TCIP 5
Non-Life Trends in the Sector Non-Life Premium Per Person 505 473 2017 Premium / GDP (%) Premium Per Person ($) 305 308 361 World 2,80 297 215 219 USA 4,28 2.542 165 138 163 UK 2,36 938 108 93 106 114 123 143 133 124 144 126 Switzerland 4,12 3.289 Poland 2,08 288 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Premium($) Premium(TRY) Turkey 1,20 126 SOURCE: Treasury, Association of Insurance Companies, Swiss Re Sigma 3,2018 6
Top 10 Non-Life Companies in the Sector-18Q3 ( Mn) Premium Production 18M9 Premium Production 17M9 Change (YoY) (%) Allianz 4.121 3.610 14,2 Anadolu 4.078 3.331 22,4 Aksigorta 2.446 1.756 39,3 Axa 2.294 2.096 9,4 Mapfre 1.891 1.994-5,1 Top 5 Companies 14.830 12.787 16,0 6 to 10 7.232 6.237 15,9 Top 10 Companies 22.062 19.024 16,0 Other 11.999 9.396 27,7 Total 34.061 28.420 19,9 Other 35% PRODUCTION SHARE BY COMPANIES 6 to 10 21% Allianz 12% Mapfre 6% Anadolu 12% Aksigorta 7% Axa 7% SOURCE: Association of Insurance Companies 7
Non-life Companies Premium Production Anadolu Sigorta ( Mn) Non-Life Sector ( Mn) 18M9 17M9 ΔYoY 18M9 17M9 ΔYoY Branch GPW GPW Growth GPW GPW Growth MTPL 1.135 949 20% 11.484 9.189 25,0% MOD 746 680 10% 5.437 4.860 11,9% Fire and Nat. D. 730 570 28% 4.772 4.077 17,1% Health 532 402 32% 4.436 3.599 23,3% Other 935 730 28% 7.932 6.695 18% Total 4.078 3.331 22% 34.061 28.420 19,9% 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 (18Q3) 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(18Q3) İstanbul (2) Samsun Trabzon Bursa Ankara İzmir Adana Gaziantep Antalya 2.330 Professional Agencies 1.351 Işbank Branches N. Cyprus ~25% working exclusively with Anadolu Working exclusively with Anadolu 12
Distribution Channels (18Q3) Broker 10% Other 12% Direct 3% Bank 13% Agency 62% 13
Production by Regions (18Q3) Marmara 52% Black Sea 7% Aegean 10% Mediterranean 8% Middle Anatolia 17% South East Anatolia 4% East Anatolia 3%
Market Share & Rank (mn. TRY) BRANCHES 17M9 18M9 Rank Market Share 18M9 18M9 Growth MOD 680 746 1 14% 10% Fire 570 730 1 15% 28% General Liability 127 195 1 20% 53% Watercraft 58 80 1 36% 40% Aircraft 22 30 1 62% 33% Aircraft Liability 19 19 1 32% 1% MTPL 949 1.135 2 10% 20% Health 402 532 3 12% 32% General Losses 307 395 3 10% 29% Other 197 216 -- -- 10% TOTAL 3.331 4.078 2 12% 22% SOURCE: Association of Insurance Companies 15
Profitability Combined Ratio Combined Ratio 17Q3 18Q2 18Q3 MOD 110,6% 109,0% 119,2% MTPL 117,2% 119,6% 131,4% Fire 123,2% 106,7% 137,7% Health 93,2% 111,3% 100,5% P.Accident 64,6% 68,0% 66,8% General Liability 180,4% 153,2% 152,8% General Losses 163,8% 117,7% 99,9% Total 112,4% 112,1% 120,4% 17M9 18M9 104,1% 108,9% 109,9% 123,9% 114,5% 111,2% 108,4% 110,5% 61,3% 70,4% 182,6% 153,0% 101,9% 108,1% 108,2% 113,5% 103% 107% 107,1% 107,5% 113,5% 9% 9% 9% 9% 10% 14% 15% 15% 14% 13% 80% 83% 83% 85% 91% 2014 2015 2016 2017 18M9 Claims Ratio Net Comm. Ratio Expense Ratio 16
Company & Market Potential Company Overview Financial Highlights 17
Growth Performance Total Assets (mn TRY) (*) 6.929 5.840 7.965 Tech. Reserves (mn TRY) 4.456 3.914 13% 5.024 3.773 4.677 2.282 2.934 2014 2015 2016 2017 18M9 2014 2015 2016 2017 18M9 Cash and Marketable Sec. (mn TRY) (*) Shareholders' Equity (mn TRY) 5.359 1.639 1.589 2.250 2.776 3.832 4.505 1.020 1.202 1.223 2014 2015 2016 2017 18M9 2014 2015 2016 2017 18M9 (*) Financial loan excluded for 2015,2016, 2017 and 18M9 18 18
Financial Statements 9.000 30,0% 8.000 7.965 25,9% 25,0% 7.000 6.000 5.974 7.032 17,7% 19,7% 20,0% 5.000 4.000 3.000 2.000 1.000 0 3.773 9,9% 7,6% 4.888 5,9% 2.408 8,7% 10,5% 3.410 7,4% 13,2% 4.688 4.117 1.927 1.639 1.589 1.202 1.223 1.051 232 72 64 88 184 2014 2015 2016 2017 18M9 Assets Shareholder's Equity Investment Portfolio Net Profit ROAE ROE - Consolidated 15,0% 10,0% 5,0% 0,0% 19
Balance Sheet Assets 18Q3 2017 Liabilities 18Q3 2017 Cash + Marketable Sec. 5.359 4.608 Equity Participations 559 690 Other Assets 2.047 1734 Assets 7.965 7.032 Technical Provisions 5.024 4.456 Shareholders' Equity 1.589 1.639 Other Liabilities 1.352 937 Liabilities 7.965 7.032 %16 increase in liquid assets %13 increase in total assets 20
Income Statement 18Q3 ( mn) P&L 18M9 17M9 Change (%) (YoY) Tech. Income (*) 2.681 2.513 7% Tech. Expenses -3.037-2.717 12% Net Financial Inc. + Other Exp. (*) 650 326 100% Deferred Tax 55 17 224% Gross Profit 349 139 152% Tax -117-40 193% Net Profit 232 99 134% Income from subsidiary -34-28 21% Net Profit - dividend income excl. 198 71 179% (*) Financial income transferred to technical division is excluded 21
Core Indicators (TRY) 18Q3 2017 Change (18Q3-2017) Mcap 2.160mn 1.550mn 39% Equity (Book Value) 1.589mn 1.639mn -3% P / BV 1,36 0,95 43% 2500 2000 1,4% 2.160 1,6% 1,4% 1,2% 1500 1000 500 0,8% 0,7% 0,7% 1.202 1.223 1.020 965 795 710 1,0% 1.639 1.550 1.589 1,0% 0,8% 0,6% 0,4% 0,2% 0 2014 2015 2016 2017 18Q3 Mcap Equity P/BV 0,0% 22
Profitability 27,9 17,7 20,0 6,8 9,9 5,3 8,7 7,2 10,5 11,2 2014 2015 2016 2017 18Q3 ROE - Solo ROE - Consolidated 23
Highlights-18Q2 Improving Financials Strong Increase in Health Market Share Net Profit Market Share - Health 85,4 109,1 63,0 60 11,3% 11,1% 11,2% 10,7% 10,8% 12,7% 12,0% 24,3 12,8 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 24
Investment Portfolio Bonds 9% Stocks 3% In 18M9; Dividend from ANHYT 34 mn TRY Funds 11% Investment Income * 702 mn TRY Average Portfolio Income ~ 20,1% TRY 4,69 bn * ANHYT dividend excluded. Deposits 77% TRY 4,12 bn at 31.12.2017 25 25
Disclaimer Statement 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. 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) 26