NE SGORTA Investor Presentation 2019 Facts and Figures in 2019 - - PowerPoint PPT Presentation

ÜNEŞ SİGORTA Investor Presentation 2019

Facts and Figures in 2019 Appendices Asset Management Development Results of Growth and Profitability Capital and Shareholding Structure

Start of u-turn and performance increase are results of

• perations in 2019.

Strong Performance in 2019

Facts and figures 2019

₺ 2.266 Mn

+19% Premium Production Technical Profit Net Income Bank Channel Premium Net Combined Ratio Capital Adequecy Ratio

₺ 153 Mn

+494%

₺ 124 Mn

+1037%

₺ 801 Mn

+172%

107 %

• 8,7%p

237 %

+54%p

4

Strong Performance in 2019

Facts and figures 2019

₺ 224 Mn

+49% Investment Income Total Assets Total Shareholder’s Equity Return On Investment - ROI % Return On Asset - ROA % Return in Equity - ROE %

₺ 3.663 Mn

+40%

₺ 1.290 Mn

+61%

19,6 %

• 0,1%p

3,4 %

+3,0%p

9,6 %

+8,2p

5

Customers, Personels and Channels in numbers

Facts and figures 2019

1,7+ Mn

# of Customers

# of Bancassurance Regional Offices

# of Agencies # of Bank Branches # of Brokers

613 ₺ 2.266 Mn

+19%

1.412 1.323

100

# of Personels

# of Agency Regional Offices

10 9

6

 In Fiscal Year 2019, strategic targets reached in both Growth and Profitability.

• Growth in

bancassurance

• New product lauches

for bancassurance.

• Growing with a

balanced premium portfolio

• Capital increase

Profitability

• Increasing technical

profitability

• Ensuring cost

management effectiveness

• Increasing financial

profitability

• Increasing asset

profitability

• Increasing equity

profitability

Profitability Growth

₺

8

 Focused on Non-Motor products to increase business segments and technical profitability.

Branch 2017 2018 2019 18-19 YoY % S019 Share % Motor 687 753 796 6% 35% Non-Motor 974 1.155 1.470 27% 65% Branch 2017 2018 2019 18-19 YoY % 2019 Share % Motor

• 18
• 71
• 64
• 8%
• 42%

Non-Motor 46 96 217 126% 142%

MTPL 20% Fire&Nat Cat 18% MOD 15% Health 12% Aviation 12% General Losses 10% Casualty 5% Financial Losses 2% Other 6%

Premium Production by Business Segments ( ₺ Mn ) Branch 2017 2018 2019 2018-2019 YoY % 2019 Share % MTPL 394 448 463 3% 20% Fire&Nat Cat 304 343 414 20% 18% MOD 292 305 333 9% 15% Health 143 153 281 84% 12% Aviation 153 229 259 13% 11% General Losses 234 272 228

• 16%

10% Casualty 47 50 105 109% 5% Financial Losses 3 3 43 1504% 2% Other 91 104 140 33% 6% Total 1.661 1.907 2.266 19% 100%

Premium Share in 2019 Premium Production ( ₺ Mn ) Technical Profit ( ₺ Mn )

687 753 795 974 1.155 1.470 500 1.000 1.500 2.000 2017 2018 2019 Motor Non-Motor

• 18
• 71
• 65

46 96 217

• 100

100 200 300 2017 2018 2019 Motor Non-Motor

Non motor production boosted technical profitability by 126%. Motor production modest increase 0f 6% stabilised technical loss by 8% decrease. The premium production of unemployment insurance product in bancassurance channel, being the 1st year of its production in 2019, reached at ₺ 39,8 Mn (in financial losses branch) .

Growth

9 64 796 1.154 686 975

2017 2018 2019

200 294 801 Bancassurance Production (₺ Mn) Agency 48% Bank 35% Broker 8% Other 5% Direct 4% Channel Distribution in 2019

*CAGR 59% +172%

Channels Premium (₺ Mn) Share % Agency 1.084 48% Bank 801 35% Broker 178 8% Direct 92 4% Other 111 5% Total 2.266 100%

 Targeted on bancassurance production to increase technical profitability.

Agency production 0f ₺ 1.084 milion remained close as 2018. Bank production increased by 172%. Broker production increased by 49%. Bancassurance market share increased from 9,1%to 4,3%(YtoY) and ranked in 4th row (In 2018, ranked in 8th).

Growth in Channels

2017 2018 2019

10

*CAGR: Compound Annual Growth Rate= [(Ending Balance- Beginning Balance)^(1/#of years)-1]

MTPL MTPL MTPL Fire&Nat Cat Fire&Nat Cat Fire&Nat Cat MOD MOD MOD Health Health Health Other Non-Motor Other Non-Motor Other Non-Motor

50 150 250 350 450 550 650 750 850 2016 2017 2018 2019 2020 Premium ( ₺ Mn )

MOD and Health began to generate profit, where as MTPL ‘s technical loss is controlled. Both production and profit raised in Fire&Nat Cat and Other Non-Motor. By 2019, net loss ratio, decreasing by 9,8%, is 78%. Net expense ratio with the help of cost management decreased by 0,5%. Net combined ratio of 106,8% improved by 8,7% point.

Ratios improved

2017 2018 2019

15,6% 17,1% 16,6% Net Expense Ratio %

2018 2017 2019

2017 2018 2019

109,5% 115,5% 106,8% Net Combined Ratio %

2018 2017 2019

• 8,7%p

2017 2018 2019

82,1% 87,8% 78,0% Net Loss Ratio %

2018 2017 2019

• 0,5%p
• 9,8%p

 Improved at technical profitability ratios

2017 2018 2019

11,8% 10,7% 12,2% Net Commission Ratio %

+1,5%p 2017 2018 2019

11

Symbol expresses technical loss Symbol expresses technical profit

Actions taken through fundamental strategies to reach out goals with the skilled team.

 Product portfolio enriches with new products.

Güneş Dost Motor Insurance is an option to customers who prefer privilege at casulty services provided by Güneş Dost Service network. Unemployment insurance had ₺ 39,8 million premium in 2019, at its first year. New bancassurance products are included in the portfolio by 2019.

• Commercial Package Insurance
• My Property Secured Insurance
• Unemployment Insurance
• Acceleration Package Insurance

Participations Insurance as a new channel, window type model is being started to

• perate by December 2019. It is expected to

grow rapidly in MOD, Fire-Home, Health branches.

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3% 5% 92% Return On Sharing Capital TL Ref Deposit

 Liquidity ratio improved by capital increase and higher investment income.

Deposits have the biggest share of 92% in investment portfolio. Investment income raised up to ₺ 224 million, with an increase of 49%. By 2019, current assets exceeding short term liabilities, thus the liquidity ratio became 109,2% and increased by 16,5%. Total assets ₺ 3,7 billion with an increase of 40%.

Asset Management

Investment Portfolio Distribution % ₺ Mn 2017 2018 2019 2018-2019 YoY % Investment Income 84 150 224 49% Investment Portfolio 729 940 1.597 70% Return On Investment – ROI % 13,4% 19,7% 19,6%

• 0,1%

2017 2018 2019

2.168 2.610 3.663 Total Assets ₺ Mn

2017 2018 2019

84 150 224 Investment Income ₺ Mn

2017 2018 2019

91,0% 92,7% 109,2% Liquidity Ratio %

+16,5%p

+49% +40%

2017 2018 2019 2017 2018 2019 2017 2018 2019

14

678 802 1.290

Shareholders' Equity (₺ Mn)

CAGR 24% +61%

2017 2018 2019 +100 % 189% 183% 237%

2017 2018 2019

Capital Adequacy Ratio (%) 2017 2018 2019

 Capital reached at ₺ 540 Mn, increasing by %100 by August 2019.

With the shareholders’ payment , capital raised by 100% and reached at ₺ 540 million. Total shareholders’ equity became ₺ 1.290 million, increasing by 61% by end of 2019. As a result, capital adequancy ratio became 237%.

Capital Increase

270 270 540

270 270 540

Capital ₺ Mn 2017 2018 2019

+100% +54%p

₺ Mn 2017 2018 2019 2018-2019 YoY % MCap 446 405 1.177 191% Shareholders' Equity 678 802 1.290 61% MCap / Shareholders' Equity 0,66 0,50 0,91 81% Book Value 2,51 2,97 2,39

• 20%

15

2017 2018 2019

1,2% 0,4% 3,4% ROA %

2018 2017 2019

2017 2018 2019

3,9% 1,4% 9,6% ROE %

2018 2017 2019 +8,2%p +3,0%p

2017 2018 2019

13,4% 19,7% 19,6% ROI %

2018 2017 2019

 Improvements on operating business and financial management resulted with increase technical profitability.

By the end of 2019; ROI, reached at 19,6% with a 0,1% point decrease. ROA, reached at 3,4% with a 3% point increase. ROE, reached at 9,6% with a 8,2% point increase.

Financial Ratios

• 0,1%p

16

 Sales negotiatons with TVF Financial Services has started on 13th of December,2019.

Türkiye Vakıflar Bankası sold some of its open shares and its total shares decreased from 56,1% to 51,1% . 2 Funds*, turned its shares type into operatable in stock

• market. After some sales

their shares decreased from 10,0% to 7,0% and from 5,01% to 2,56% respectively. Groupama sold 10% shares to TFV Financial Services on 14th of February’20.

Changes in Partners

SHAREHOLDERS SHARE (%) SHARE AMOUNT (₺) Türkiye Vakıflar Bankası T.A.O. 51,10 275.939.697 TVF Finansal Yatırımlar Anonim Şirketi 10,00 54.000.000 Türkiye Vakıflar Bankası Vakıfbank Personeli Özel Sosyal Güvenlik Hizmetleri Vakfı * 7,00 37.800.000 Türkiye Vakıflar Bankası Memur ve Hizmetlileri Emekli ve Sağlık Yardım Sandığı Vakfı * 2,56 13.800.000 Public Shares 29,34 158.460.303 TOTAL 100,00 540.000.000

51,10% 10,00% 7,00% 2,56% 29,34% Türkiye Vakıflar Bankası T.A.O. TVF Finansal Yatırımlar Anonim Şirketi Türkiye Vakıflar Bankası Vakıfbank Personeli Özel Sosyal Güvenlik Hizmetleri Vakfı Türkiye Vakıflar Bankası Memur ve Hizmetlileri Emekli ve Sağlık Yardım Sandığı Vakfı Public Shares

As of 14th of February 2020

17

₺ Million 2017 2018 2019 2018-2019 YoY (%)

Written Premiums, gross 1.661 1.907 2.266 19% Technical Balance (Technical Profit) 28 26 153 494% Earned Premiums (Net of Reinsurer Share) 815 919 1.103 20% Incurred Losses (Net of Reinsurer Share) (669) (807) (860) 7% Other Technical Income&Expenses (Net of Reinsurer Share) 30 27 44 62% Financial Income - Transferred from Non-Technical Section 75 141 183 30% Operating Expenses (224) (255) (318) 25% Financial Profit 17 36 58 61% Financial Income 173 362 345

• 5%

Financial Expense (156) (326) (286)

• 12%

Income and Expenses From Other Operations (18) (51) (75) 47% Tax

• (13)

100% Net Profit/Loss 26 11 124 1037%

Ratios

% Retention Ratio 53% 53% 56% 3% % Net Loss Ratio 82% 88% 78%

• 10%

% Net Commission Ratio 12% 11% 12% 2% % Net Expense Ratio 16% 17% 17%

• 0,5%

% Net Compound Ratio 110% 116% 107%

• 9%

Appendix: Summary of Income statement accounts and related ratios for last 3 years are as follows.

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₺ Million 2017 2018 2019 Share (%) 2018-2019 YoY (%) Cash and Cash Equivalents 865 1.094 1.812 49% 66% Receivables from Main Operations 450 532 689 19% 30% Financial Assets 503 613 704 19% 15% Tangible and Intangible Assets 216 230 259 7% 12% Other Assets 135 141 200 5% 41% TOTAL ASSETS 2.168 2.610 3.663 100% 40% Financial Liabilities

• 1

0% 100% Payables Arising from Main Operations 223 289 414 11% 43% Technical Provisions 1.132 1.368 1.716 47% 25% Other Liabilities 135 152 242 7% 60% TOTAL LIABILITIES 1.490 1.808 2.373 65% 31% Paid in Capital 270 270 540 15% 100% Capital and Profit Reserves 664 777 872 24% 12% Accumulated Profit/Losses (283) (256) (246)

• 7%
• 4%

Net Profit/Loss for the Period 26 11 124 3% 1037% TOTAL EQUITY 678 802 1.290 35% 61% TOTAL EQUITY AND LIABILITIES 2.168 2.610 3.663 100% 40% Ratios % ROA-Asset Profitability 1% 0,4% 3% 3% % ROE-Equity Profitability 4% 1% 10% 8%

Appendix: Summary of balance sheet accounts and related ratios for last 3 years are as follows.

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For further information please contact IR Unit: e-mail address: yatirimci.iliskileri@gunessigorta.com.tr

Contact Person Responsibility License Info Telephone Fulden PEHLİVAN IR Unit Certified Member Corporate Governance Committee Member Capital Market Activities Advanced Level License, Corporate Governance Rating Specialist License (0212) 355 6820 Muhammed SIVACI IR Unit Member (0212) 355 6828 Emre ŞAHİN IR Unit Member (0212) 355 6822

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