
Anadolu Anonim Turk Sigorta Sti
IST:ANSGR.E

Anadolu Anonim Turk Sigorta Sti
In the vibrant heart of Turkey's financial ecosystem, Anadolu Anonim Türk Sigorta Şirketi stands as a sentinel safeguarding the aspirations and assets of its clientele. Founded in 1925 as a cornerstone institution, Anadolu Sigorta has woven itself into the very fabric of Turkey's insurance landscape. Anchored in tradition yet ever-evolving, the company offers a comprehensive suite of insurance products ranging from life and health plans to property and casualty coverages. Embracing modern challenges, it employs robust risk management strategies to tailor its services to the diverse needs of individuals and businesses alike. The firm’s expansive network, fortified by technology, ensures prompt service delivery and an unwavering commitment to reliability and trustworthiness.
At the core of Anadolu Sigorta's financial prowess is its diversified portfolio, meticulously constructed to weather the tumultuous ebbs and flows of the market. The company amasses revenue through the systematic collection of premiums, which underpins its primary business model. Prudently investing these premiums, the firm seeks steady returns that enhance its financial standing while maintaining a keen eye on risk aversion. By diversifying its investments across various asset classes, Anadolu Sigorta effectively balances growth potential with the certainty expected by policyholders. This strategic financial stewardship not only enables the company to fulfill its obligations to customers but also reinforces its resilience in an industry shaped by unpredictability. Through this blend of traditional values and innovative practices, Anadolu Sigorta remains a pillar of strength, committed to securing the futures of its policyholders.
Earnings Calls
In the first quarter of 2025, Anadolu Sigorta achieved a robust revenue of TRY 23.2 billion, reflecting a 41% growth year-over-year. Despite economic challenges, including a significant drop in the discount rate from 35% to 32.5%, the company reported a consolidated net profit of TRY 1.2 billion. Notably, return on equity stands impressively at 56%. The company's assets under management rose to TRY 58.5 billion, supporting ongoing investment income. Looking ahead, Anadolu Sigorta aims to enhance its premium production in health insurance. The overall combined ratio was 110.7%, influenced by external economic pressures.
Hello. I think we just start our presentation. Thanks for participating in our 2025 First Quarter Financial Results Webcast. As you see on the screen, we are celebrating our 100th year anniversary Anadol Sigorta has been centaury youth company as of 2025. So it's an important year for us. Before we start, I should mention this part, I think.
As usual, we are going to have the presentation with our CFO, Erdem Bey, together. So Erdem is going to start the presentation, and I'm going to continue with financial figures. Erdem Bey, the floor is yours. Over to you.
Okay. Welcome to Anadolu Sigorta Financial Presentation of '25 Quarter 1. And our presentation will be shared by Baris Safak with my colleague. And at the beginning, I would like a brief in the first quarter, and I would like to say something for that.
As you see, we've finished in '24 with good financial results and began the new year, hopefully and we have proved for us because of the 100 years as Baris told before and Anadolu Sigorta in '25. One important thing that was happened in this term decrease the discount rate from 35% to 32.5%, nearly 200 to 250 basis. Decreasing FX was nearly TRY 740 million show the financial statement negatively, firstly.
And second important thing that has happened in this term Istanbul University canceled the diploma of Istanbul Metropolitan Municipality Mayor Ekrem Imamoglu. And after that, the detention of nearly 100 people, including Istanbul Metropolitan Municipality and Turkish lira, of course, lost value against the foreign currencies and when Borsa Istanbul 100 Index also closed 19 March as a loss of nearly 9% decreasing.
And following this detention on March 19, there was a major loss in Borsa Istanbul index. Its meeting on March 6, Monetary Policy Committee had lowered interest rate to 250 basis points to 42.5%. But in April, something changed and the economy changed and the Central Bank of Republic of Turkey announced that increased the policy rate to 46% achieved in April, I mean.
On the other hand, our company general assembly met in March and decided to pay TRY 21 billion dividends and to increase the paid capital from TRY 500 million to TRY 2 billion pre stock. And of course, not the first quarter, but in April, it was important happened in the Turkish insurance sector. 2 insurance companies were sized by public authority, I mean the, [indiscernible] we say, insurance regulation and supervision agency.
They were important happen in this turn, especially in first quarter. And now we would like to begin our presentation. When we look at the profitability, first of all, the real growth in the first quarter '25 term value is at a strong TRY 23.2 billion. And if you compare the last year, the 41% increase. And if we think that the March inflation rate 38.1% more than the inflation rate. It was the good result for us about prim production.
And when we talk about real profitability, trailing 12 months, solo ROE stands 44.3% consolidated 56% in this term. And when we look at technical outlook. Discount rate applied to technical reserves has been reduced -- sorry, 250 basis and 32.5% in this term. And it was effect one-off negative impact nearly TRY 740 million on gross profitability.
Net impact nearly TRY 555 million. And adjusted discount rate change combined ratio would have been the 6.3% lower in this turn. And then we look at the assets under management grew by TRY 3 billion quarterly reaching and TRY 58.5 billion and tight monetary expense is expected to supportive into investment income in remainder of '23.
Next slide, please. When we look at the prim progression figure, we can see easily we are below sector, okay? But total non-life prim production -- total prim production nearly TRY 267 billion in this term. And if you compare the last year, it was TRY 178 billion and increased nearly 50% in this term.
When we look at the top 5 companies and 10 companies. Anadolu Sigorta produced TRY 23.2 billion prim production and 41% increase in prim production end of the first quarter. And when we look at the market shares, we have got 8.7% market share in this term.
Next slide, please. Prim volume and composition, when we look at the Prim volume and composition first quarter '24 and first quarter of '25, MTPL increasing 47.2% MOD increasing 24.2%, fire and natural disaster 25% nearly, 20 enhanced branch prim production increasing 91 point and other branches, nearly 21% increase in this term. If we compare the sector slightly 9 point below the sector in this term.
Next slide, please. Market share and when we look at this chart, as you see, there are 13 different branches and 3 of them, we are the first degree and 2 of them, we are the second degree or second mark and 3 of them third rank and 2 of them fourth rank, 1 of them fifth rank and 2 of them sixth rank in this market share listed. When we look at it totally, we are the third degree in the total premium production market share in this term with 8.7 percentage in this term.
Next slide, please. When we look at the sales channel, we have got nearly 2,700 agencies and more than 1,000 bank branches, totally 3,700 branches. We are producing prim production in all of Turkey. And when we look at the prim production sales channel and 61% with the agencies. And if you compare the sector, it was 56% and 14% in the bank insurance side. When we look at the sector, it was 12%.
And in the broker side, when we look at the broker side in our company, it is 18% and when we look at the sector, 18% is similar degree. And after this schedule, we can say that our company is the agency tendency company, and we are producing our prim production from the -- depends on the agencies mostly, we can say.
Next slide, please. When we look at the branch outlook, especially here and the quarterly -- first of all, there are on the left side, left upside, total portfolio and branches, MOD, MTPL, fire and natural disaster health and others. When we look at the total portfolio quarter-to-quarter in the right side in the last 12 months, I mean, the cumulative combined ratio from 105% to 107% nearly only 2 points increasing in this term. If we take your attention to at the beginning of the year, the discount rate changing, it is quite acceptable result for us when we look at the total portfolio.
And when we look at the MOD side, our quarterly combined ratio from third quarter '24 to first quarter '25 from -- sorry, 90% to 79% in this term, nearly 11 points decreasing in this term. It is a good result for us, especially for profitability in this term. MTPS is quite problem in Turkish insurance sector.
Is the effect of the discount rate. It's combined ratio increased nearly 11 points in this term and 151.7% end of the first quarter. And totally when we look at the last 12 months, it was 143.7%. Of course, it affects the discount rate, you can see easily. And fire and natural disaster, when we look at -- there is an increasing here, but the main effect, again, the discount rate effect here.
Our [indiscernible] is quite decreasing here because when we look at the end of the year last quarter in '24, it was 144%, but now 114% especially is a good result for us. And we would like to increase our prim production in the health side, especially in '25 in this branch. And the other side, when we look at there is a slightly high combined ratio, 94.9% nearly 95%. But if you compare the other branches under the 100% is a good result for us anyway.
Next slide, please. As you see then our combined ratio increased 12 point basis discount rate effect is nearly 6 or 7 points here. When we look at our financial status and activity results of the company, since our assets exceeded TRY 106.5 billion with an increase of nearly 56% compared to previous year and prim production reached TRY 23.2 billion with an increase 41% compared to previous year.
And as you see the market share is 9% in this term. And when we look at -- when we compare the last year's first quarter and this year first quarter, our claims ratio from 69.5% to 81.4% increased and combined ratio 100.4% to 110.7% increase again, but it affects special discount rate here nearly 6.5 points in the schedule.
Next slide, please. Now investment portfolio or company realized to a TRY 3 billion on consolidated net profit. And in this term, I would like to give sentence my colleague, Mr. Safak.
Thank you. I'm going to continue with investment portfolio from now on. As you see on the chart, at the end of the quarter, our portfolio assets under management portfolio reached TRY 58.5 billion, which was TRY 55.5 billion at the end of the year.
60% of our AUM, which is almost TRY 35 billion is invested in short-term interest instruments. 21% of portfolio is invested in bonds. We have some part in commodity gold, silver like instruments, and we have some venture capital exposure as well, which is 3%. Our direct equity portfolio is 12%, and we have some hedge funds, which is around TRY 2 billion at the end of the quarter.
In the first quarter, our investment income was TRY 3.4 billion to TRY 3.9 billion. Anadol Hayat Anadol Life dividend is not included in this amount and which makes quarterly portfolio return is 7.1%. So when we continue with our income statement, summarized income statement. You see on the left-hand side, unconsolidated figures, right-hand side, consolidated figures.
Our technical income compared to previous year's first quarter increased 43%. Technical expenses increase was a bit higher, 57% due to mainly our reserves increased outstanding claim reserves increase affected negatively the technical expenses. Net financial income increase was 12%. And after tax and deferred tax deduction, our net profit stood at TRY 2.2 billion, TRY 2.3 billion, 21% negative compared to previous year's first quarter.
On consolidated form, our net profit was TRY 1.2 billion at the end of first quarter. On the next slide, you can see our balance sheet figures. Total assets increase was 11.1%. In the first Q, our AUM increased 5.4%, as I mentioned in the previous slide. And on the right-hand side, you see our technical reserves, which is some of outstanding claims and unearned premium reserves total of these 2 technical reserves increase was 14%. Again, there was a negative impact coming from the decreased discount rate.
And at the right-hand side of our slide, you see our shareholders' equity. It decreased 5.1%, and it was TRY 29 billion. There was some negative effect coming from Anadolu Life [ Sirketi ] at the end of the first quarter. The decrease was around 20% -- so when we continue with our net profit breakdown of our financial side.
As you see -- as you might recall, our technical earnings stood at minus TRY 1.4 billion. On the nontechnical side, the breakdown is seen on the left-hand side of the presentation, TRY 4.3 billion in investment and dividend income. We had TRY 50 million negative impact coming from depreciation. Our provisions from bad debt was TRY 265 million.
The discount was positively affected -- the discount positively affected by our net profit, TRY 60 million and tax and deferred tax totally was minus TRY 465 million, which sums up to TRY 2.2 billion net profit. And net profit drivers, you see the waterfall graph compared to previous years, the effect of underwriting was negative, which was TRY 1.3 billion. Investment was flat, minus TRY 91 million. Tax effect was positive TRY 600 million and dividend impact was also positive and other items was almost flat, again, which brings us to our first quarter net profit.
And on the next slide, this is the last slide you are going to see, you can see our return on average equity at the end of first quarter with trailing net profit results, our average return on equity stood at 56% in terms of unconsolidated net profit and 44% in solo -- I'm sorry, 56% consolidated profit and solo unconsolidated profit return on average equity stood at 44% at the end of the first quarter. So this is all from our presentation slide. We can continue with Q&A session.
[Operator Instructions].
I think, there is no question. Everything is clear.
It's Christmas, I guess, Erdem Bey. So back to you for the closing of our meeting. Shall we close the meeting, Erdem Bey?
If there's no question, thank you very much for joining us and see you in the next presentation in a better days. Thank you very much. Bye.
Thank you.