Presentation to

Investors

Q1 2023

Earning Release

4 May 2023

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Key Financial Results

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Summary and Outlook

AgeSA strengthened its leadership in both Pension AuM and Life & PA premium production among private companies with support of sustainable growth in Life business driven by the success of long term credit life product (Kredim Güvende) and strong RoP portfolio.

AgeSA net profits are depressed due to lower financial income regarding Equity market loss despite the significant increase in technical income resulting from high profitability in life and pension scalability.

Q1 Performance

  • #1 position among private companies in Private Pension AuM; with 18.6% total market share as of March 2023
  • #1 position among private companies in Total Life & PA GWP; with 12.3% total market share as of March 2023
  • Slightly lower than PY's profit delivery both in terms of Management Reporting and SFRS net profits in Q1 2023 with 7% and 12% yoy decrease respectively, due to lower financial income despite the increase in technical profit
  • 150 mTL dividend has been paid in March
  • Share buyback program is launched in April. The term of the buyback program is 3 years. The maximum amount of funds to be used within the program is 750m TL. In April, 278k shares were bought with an average price of 29,02 TL

Strengthened fundamentals

  • Strong and exclusive bancassurance partnership with Akbank
  • Accelerated growth with strengthened base of DSF
  • More Diversified Product Portfolio with a New Savings Product
  • Strongly building and investing on digital, analytics and customer capabilities
  • Earned and potential synergies w/ Aksigorta both for topline and operational excellence areas
  • Governmental growing appetite for pension and life business supported by incentives
  • Strong Shareholder Structure

Future

  • Providing new solutions for ageing population
  • Health insurance synergies w/ Sabancı
    Ageas Sağlık A.Ş.
  • Sustainability at the heart of business to build a better future
  • Future of work & end to end IT and cultural transformation

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Management Reporting: IFRS Financials excluding inflation accounting effect

3

Historical Track Record of Value Creation

A Story of Solid Profitable Growth

Pension AUM (inc AE)

Total GWP (Life+PA)

Total Technical Profit (1,3)

Net Technical Profit (1,3)

Expense Ratio (1,2,3)

Profit for the Period (Management Reporting) (1,3)

Profit for the Period (SFRS)

RoE

(Management Reporting) (1,3)

Solvency I Ratio

Dividend Payments

Shareholders' Equity (1,3)

VNB w/RW

2018

17.3 bTL 565 mTL

  1. mTL
  1. mTL 51,5%
  1. mTL
  1. mTL 36,1%

193%

  1. mTL
  1. mTL

2022

75.6 bTL 3.717 mTL

1.936 mTL

784 mTL 45,4%

1.127 mTL

875 mTL 58,9%

165%

2.454 mTL

961 mTL

CAGR 2018-22

45%

60%

41%

42%

-1,5pts

52%

46%

5,7 pts

39%

Q1 2023

81.0 bTL 1.528 mTL

  1. mTL
  1. mTL 56,2%
  1. mTL
  1. mTL 53,4%

156%

150 mTL

2.546 mTL

429 mTL

YoY

2022-23

66%

126%

64%

29%

17,1 pts

-7%

-12%

2,5 pts

59%

106%

Leadership among private companies' Pension and AE AUM

Leadership among private companies' Total Life&PA GWP

Success of strong growing RoP&New savings portfolio and credit life product

Strong growth resulting from high profitability in life and pension scalability

Increase in net technical profit resulting from high technical profitability and controlled expenses against high inflation

Expense ratio increased mainly due to inflation adjustments to salaries that took place

Pressured performance regarding financial income decrease despite technical income increase

Slightly decrase in SFRS Profit , due to lower life and pension tech. profit regarding undeferred commissions in SFRS and higher expenses

Strong profit combined with lean capital

Well managed capital position and dividend payment under volatile macroeconomic environment with growing appetite

Steady increase in shareholders' equity reflects active management of capitalization to fund business growth

VNB has increased due to increased Pension and Credit Life sales. The newly launched Savings product also contributed to the VNB growth

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Note: (1) Management Reporting: IFRS Financials excluding inflation accounting effect

  1. Expense ratio=(Opex)/(Management Reporting Proft Before Tax-Opex)

«Opex=G&A+Financial Expense»

  1. Source: Company data, unaudited results

4

Financials

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Disclaimer

Agesa Hayat ve Emeklilik AS published this content on 04 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2023 10:02:07 UTC.