TURKISH INSURANCE INDUSTRY
AND
GUNES SIGORTA
26/10/2010
October 2010
1
TURKISH
INSURANCE
INDUSTRY
TURKISH ECONOMY IN 2010
• National Income:
 GDP : 1.080 Billion TL = 717 Billion USD
 GDP per capita: 9 728 USD
• Inflation:
 CPI (consumer price index): 6.40 %
 PPI (producer price index): 8.87 %
• Unemployment: 11.4 %
• Population: 73,7 million
26/10/2010
June
2011
October 2010
2
TURKISH
INSURANCE
INDUSTRY
MARKET INCOME
Premium Income
14.130.276.182 TL, an increase of 15 % compared to
2009
NON LIFE
11.528.123.146 TL which represents 81,58 % of the
total premium income and a growth of 14,5 %
compared to 2009.
LIFE
26/10/2010
June
2011
2.602.153.036 TL which is 18,42 % of the total
premium income and a growth of 17,53 %
compared 2009.
October 2010
3
TURKISH
INSURANCE
INDUSTRY
MILLION USD
PREMIUM PRODUCTION
(2006-2010)
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2006
Non Life 5,787
Life
968
Total
6,755
2007
7,380
1,024
8,404
2008
7,849
1,212
9,061
2009
6,770
1,168
7,938
2010
7,935
1,448
9,383
Source: Association of Insurance and Reinsurance companies of Turkey
26/10/2010
June
2011
October 2010
4
TURKISH
INSURANCE
INDUSTRY
PREMIUM INCOME SPLIT 2010
The below graphs shows market share of the branches for 2010.
The accident branch, which is mainly consist of motor own damage
premium ,is stil the largest one.
Credit & Suretyship
0.34%
Legal
Protection
0.30%
Life
15.44%
General Liability
2.32%
Accident
26.30%
MTPL
18.01%
Health
12.07%
Fire
14.62%
General Losses
7.03%
Marine
2.88%
Air Vehicles & Liability
0.69%
Source: Association of Insurance and Reinsurance companies of Turkey
26/10/2010
June
2011
October 2010
5
TURKISH
INSURANCE
INDUSTRY
PREMIUM PRODUCTION IN% OF GBT
TOTAL PREMIUM
PRODUCTION IN% OF GBT
NON-LIFE PREMIUM
PRODUCTION IN% OF GBT
Source: Association of Insurance and Reinsurance companies of Turkey
26/10/2010
June
2011
October 2010
6
TURKISH
INSURANCE
INDUSTRY
TOTAL PREMIUM PRODUCTION PER CAPITA (USD)
Source: Association of Insurance and Reinsurance companies of Turkey
26/10/2010
June
2011
October 2010
7
TURKISH
INSURANCE
INDUSTRY
LIFE & NON LIFE PREMIUM PRODUCTION (TL)
2006-2010
Accident
Health
Air Vehicles&Liability
Marine
Fire
General Losses
MTPL
General Liability
Credit&Suretyship
Legal Protection
Total Non-Life
Total Life
Total
2006
2007
2008
2009
2010
Change
between
2010-2009
3.361
983
0
346
1.585
485
1.479
0
8
26
8.274
1.386
9.660
3.975
1.218
0
365
1.717
619
1.651
0
14
39
9.597
1.412
11.010
3.359
1.327
63
414
1.872
822
2.060
233
37
32
10.199
1.575
11.774
3.214
1.415
104
374
1.994
930
2.249
251
45
36
10.614
1.822
14.436
3.716
1.705
98
407
2.065
993
2.545
328
48
43
11.948
2.181
14.129
15,60%
20,50%
-6,50%
8,70%
3,50%
6,80%
13,10%
30%
6,60%
20,70%
12,60%
19,70%
13,60%
Source: Association of Insurance and Reinsurance companies of Turkey
26/10/2010
June
2011
October 2010
8
TURKISH
INSURANCE
INDUSTRY
TECHNICAL RESULTS
Although overall loss ratio decreased to 67.03% in 2010 from 75.31% from 2009, total non life
companies produced a minor technical loss in 2010, while it was 1.04% technical profit in 2009. The
main reason of this worsening on technical results comes from MTPL branch, its technical loss reached
to 17.22% in 2010 while it was 5.27% in 2009. While loss ratio in Accident and health branches are
improving, general liability branch produce a technical loss in 2010. Fire loss ratio improved to 31.46% in
2010 from 63.11 in 2009, which this branch had important flood losses in September 2009. On the other
hand overall, new reserving had also high contribution to the worsening of the technical results in 2010.
Accident
Health
Air Vehicles&Liability
Fire
Marine
Credit&Suretyship
General Losses
Land Vehicles Liability(MTPL)
General Liability
Legal Protection
Total Non-Life
2009 (TL)
2010 (TL)
Loss Ratio %
Technical Profit % Loss Ratio % Technical Profit %
79,29
-4,05
69,3
1,87
91,81
-8,26
84,47
-2,01
44,21
-0,75
108,76
-5,85
63,11
9,71
31,41
10,07
44,2
30,69
26,16
31,99
84,23
-2,94
2,06
22,31
57,24
8,21
42,08
5,2
83,73
-5,27
97,08
-17,22
80,46
28,32
90,58
-5,58
4,12
57,15
0,97
50,44
75,31
1,04
67,03
-0,04
Source: Association of Insurance and Reinsurance companies of Turkey
26/10/2010
June
2011
October 2010
9
TURKISH
INSURANCE
INDUSTRY
TOP TEN INSURANCE COMPANIES
Comparison of Market Shares
Rank
Non-life Companies
1
Axa
12,71 Ziraat Hayat ve Emeklilik
27,59
2
Anadolu
11,89 Anadolu Hayat Emeklilik
16,38
3
Allianz
8,33 Garanti Emeklilik
4
Ak
7,41 Halk Hayat ve Emeklilik
6,48
5
Yapı Kredi
6,35 AvivaSA
5,70
6
Gunes
6,17 Yapı Kredi Emeklilik
5,03
7
Groupama
5,81 Finans Emeklilik ve Hayat
3,91
8
Ergo
5,81 Vakıf Emeklilik
3,82
9
Eureko
5,18 Allianz Hayat ve Emeklilik
3,41
10
Mapfre Genel
3,45 Deniz Emeklilik ve Hayat
2,77
Top Ten Companies
Market
Share (%)
Life Companies
73,09 Top Ten Companies
Market
Share (%)
10,74
85,83
Source: Association of Insurance and Reinsurance companies of Turkey
26/10/2010
June
2011
October 2010
10
TURKISH
INSURANCE
INDUSTRY
FINANCIAL RESULTS
Non-life companies total return on equity is decreasing as from 2008 and in 2010. This
decline is coming fram mainly reduced investment incomes and poor technical results.
Profitability of Non-Life and Life Companies over 5 Years (million TL)
9,000
14%
8,000
12%
7,000
10%
6,000
5,000
8%
4,000
6%
3,000
4%
2,000
2%
1,000
0
0%
2006
2007
2008
Net profit
Equity Capital
2009
2010
Return on Equity
Source: Association of Insurance and Reinsurance companies of Turkey
26/10/2010
June
2011
October 2010
11
TURKISH
INSURANCE
INDUSTRY
CHANGE IN MARKET SHARES
Branches
ACCIDENT
2010-12 Premium
Production (TL)
SHARE(%)
2009-12 Premium
Production (TL)
SHARE(%)
CHANGE
598.383.023
5,01
540.446.289
5,09
10,72%
HEALTH
1.705.491.729
14,27
1.415.181.842
13,33
20,51%
LAND VEHICLES
3.116.553.873
26,08
2.671.260.772
25,17
16,67%
680.830
0,01
152.925
0,00
338,81%
47.397.058
0,40
57.327.385
0,54
-17,32%
WATERBORNE VEHICLES
107.866.780
0,90
112.590.114
1,06
-4,20%
MARINE
298.641.084
2,50
261.394.034
2,46
14,25%
1.979.817.594
16,57
1.925.464.137
18,14
2,82%
993.472.682
8,31
934.627.948
8,81
6,30%
LAND VEHICLES LIABITY
2.544.954.031
21,30
2.249.453.148
21,19
13,14%
AIR VEHICLES LIABILITY
50.256.018
0,42
47.104.205
0,44
6,69%
544.021
0,00
374.488
0,00
45,27%
327.658.844
2,74
251.945.709
2,37
30,05%
CREDIT
31.775.341
0,27
27.711.707
0,26
14,66%
FIDELITY GUARANTEE
16.452.876
0,14
16.641.819
0,16
-1,14%
FINANCIAL LOSSES
84.708.056
0,71
65.386.767
0,62
29,55%
LEGAL PROTECTOIN
43.349.341
0,36
36.693.364
0,35
18,14%
11.948.003.182
100
10.613.756.654
100
12,57%
RAIL VEHICLES
AIR VEHICLES
FIRE
GENERAL LIABILITY
WATERBORNE VEHICLES LIABILITY
GENERAL LIABILITY
NON-LIFE TOTAL
Source: Association of Insurance and Reinsurance companies of Turkey
26/10/2010
June
2011
October 2010
12
TURKISH
INSURANCE
INDUSTRY
PREMIUM PRODUCTION
PER DISTRIBUTION CHANNELS(%)
Non-Life
26/10/2010
June
2011
2009
2010
Direct Sales
6,39
7,46
Insurance Agencies
70,60
69,10
Bank Agencies
12,48
13,40
Brokers
10,56
10,10
October 2010
13
TURKISH
INSURANCE
INDUSTRY
MARKET COMPOSITION
As of March 2011, the Association has 64 members. Out of these 64
companies, 62 are insurance (10 life, 14 life and pension and 38 nonlife companies )and remaining 2 are reinsurance companies.
INSURANCE AND REINSURANCE COMPANIES
Market
Composition
2006
2007
2008
2009
2010
Insurance companies
53
56
59
58
62
Life
21
21
23
22
24
Non life
32
35
36
36
38
Reinsurance companies
2
2
2
2
2
TOTAL
55
58
61
60
64
Source: Association of Insurance and Reinsurance companies of Turkey
26/10/2010
June
2011
October 2010
14
TURKISH
INSURANCE
INDUSTRY
PERFORMANCE OF THE TURKISH REINSURANCE
MARKET IN 2010
•The non-profitable motor lines lead most of the insurance companies
towards more profitable non-motor lines which in resulted in cheaper pricing
to get new market share.
• Despite a growth higher than the inflation rate, the sector concluded a
consolidated loss for all lines of business combined, on non-life. The non-life
industry grew in average app 13,6%.
• As for the number of policies, the figure reached 40,1 million in 2010
which is an approximately increase of 19% when compared to 2009.
26/10/2010
June
2011
October 2010
15
TURKISH
INSURANCE
INDUSTRY
PERFORMANCE OF THE TURKISH REINSURANCE
MARKET IN 2010
Property
(inc. Engineering)
Casualty
Marine
•The free tariff application for earthquake for sum insureds above TL
100 million is perceived well by the clients but not very much so by
the market. Also, the advisory tariff for terrorism business is no
longer applicable. Even though it may stay as a prerequisite for some
treaty acceptances, most of the business in the direct market runs
without the assumed rates.
The direct market for general casualty business i.e. general third party
liability, employers liability etc. is still under heavy competition.
Compulsory coverages like medmal and onshore pollution liability
finds limited cpacity and interest in international markets.
The premium growth in the marine sector in 2010 was 15.56% despite
the fact that marine insurance rates fell heavily and the softening
trend is expected to continue in 2011 as well.
There is enough capacity provided through the local market.
26/10/2010
June
2011
October 2010
16
TURKISH
INSURANCE
INDUSTRY
HIGHLIGHTS
Solvency II
In Turkey’s EU harmonization process, the Turkish insurance sector has been
conducting studies on the implementation of Solvency II. A sample of ten
insurance companies were determined to conduct Quantitative Impact Study 4
(QIS 4), which had previously been conducted by the European Commission in
EU countries. QIS 5 was also started to be applied from December 2010.
Regulation on Technical Reserves
There have also been major amendments to the “Regulation on Technical
Reserves of Insurance, Reinsurance and Pension Companies”. In this context, a
more developed and sophisticated actuarial chain ladder method for the
calculation of IBNR reserves has been introduced.
26/10/2010
June
2011
October 2010
17
TURKISH
INSURANCE
INDUSTRY
HIGHLIGHTS
Medical Malpractice
Medical malpractice insurance became compulsory in Turkey in July 2010.
With the introduction of “Compulsory Liability Insurance on Medical
Malpractice”, doctors and dentists are required to be covered by professional
liability insurance. Doctors working at public or private institutions will pay
half their insurance premiums and their institutions will pay the remainder.
Doctors working at their own private offices will pay the entire premium.
Coastal Facilities Sea Pollution Compulsory Liability Insurance
Another compulsory insurance that was introduced in 2010 with the
publication of tariffs and procedures is the “Coastal Facilities Sea Pollution
Compulsory Liability Insurance. In this context, all coastal facilities
(including refineries, gas terminals, power houses, industrial production
facilities, shipyards, etc.) are obliged to be covered by insurance against sea
pollution.
26/10/2010
June
2011
October 2010
18
TURKISH
INSURANCE
INDUSTRY
HIGHLIGHTS
Recent MTPL limits are stated as 20.000/40.000 TL for material damage
and for 200.000 TL for bodily injury from 01.01.2011 and those limits are
still considered to be low and do not provide enough coverage for insured.
Maximum limits for TCIP are increased from 140.000 TL to 150.000 TL
as of 01.01.2011
•According to the new law, hospital benefits after traffic accidents will be
will be handled and paid by Ministry of Health. Certain percentage of the
premium in order to settle the bodily injury claims, which is not yet fixed,
will be transfered to Ministry of Health.
26/10/2010
June
2011
October 2010
19
GUNES SİGORTA
IN FIGURES
26/10/2010
June
2011
October 2010
20
GUNES
SIGORTA
IN
FIGURES
GUNES SIGORTA – PROFILE
Corporate name
Date of Foundation
Authorized Capital
Paid Capital
: Güneş Sigorta A.Ş.
: 17.09.1957
: 300.000.000 TL
: 150.000.000 TL
SHAREHOLDERS
AMOUNT OF SHARE
TRY.
Türkiye Vakıflar Bankası T.A.Ş.
Groupama International
Vakıfbank Employees Private Social
Security Services
T.V.B. Employees Retirement&Health
Funds Foundation
Stocks offered to the Public
Total
26/10/2010
June
2011
October 2010
RATE OF
SHARE %
51.336.302
45.000.000
34,22
30
15.000.000
10
7.515.000
5,01
31.148.698
150.000.000
20,77
100
21
GUNES
SIGORTA
IN
FIGURES
KEY FIGURES
2010
2009
3.093.601
3.038.702
Total Premium Production
737.368.263
727.074.961
Paid Losses
439.169.040
438.878.201
1,4
2,5
6
5
6,4
7,22
Technical Profit (TL)
19.335.478,00
34.177.927,00
Net Profit (TL)
-32.445.443,00
-15.138.120,00
2.654,00
2.439,00
Number of Policies
Growth Rate (%)
Rank
Market Share
Number of Agencies
26/10/2010
June
2011
October 2010
22
GUNES
SIGORTA
IN
FIGURES
KEY FIGURES
Premium Production
2009-2010
Premium
Production (TL)
2010
2009
Fire
Motor & Misc.
Accident
107.059.126
107.838.563
246.450.202
258.118.465
Motor TPL
185.994.659
168.344.839
Health
56.208.419
58.012.183
Others
141.655.857
134.760.911
Total
737.368.263
727.094.668
26/10/2010
June
2011
October 2010
23
GUNES
SIGORTA
IN
FIGURES
26/10/2010
June
2011
KEY FIGURES
October 2010
24
GUNES
SIGORTA
IN
FIGURES
OUR AGENCY NETWORK
YEARS
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
T.VAKIFLAR
355 359 350 322
BANKASI
299
294
292
301
302
340
420
442
538
OTHER
BANKS
67
87
90
31
42
65
80
89
107
223
205
271
279
BROKERS
7
10
12
17
23
28
33
39
47
48
54
59
62
EXCLUSIVE
693 703 788 811
AGENTS
867
911
946
965
982
26/10/2010
June
2011
October 2010
1.238 1.421 1.667 1.760
25
GUNES
SIGORTA
IN
FIGURES
OUR AGENCY NETWORK
Development of Bankassurance
Development of Exclusive Agency Network
26/10/2010
June
2011
October 2010
26
GUNES
SIGORTA
IN
FIGURES
PREMIUM PRODUCTION
BRANCH
ACCIDENT
HEALTH
LAND VEHICLES
AIR VEHICLES
MARINE HULL
MARINE CARGO
FIRE
GENERAL LOSSES
LAND VEHICLES LIABILITY
AIR VEHICLES LIABILITY
MARINE LIABILITY
GENERAL LIABILITY
CREDIT
SURETYSHIP
FINANCIAL LOSSES
LEGAL PROTECTION
TOTAL
26/10/2010
June
2011
2009
2010
RoC
11.766.597
58.012.183
186.817.241
16.110.728
13.789.280
12.407.099
131.446.919
86.583.946
168.344.839
22.641.888
0
11.351.825
81.957
1.753.856
2.242.524
3.671.127
727.022.010
12.385.895
56.208.419
170.915.777
17.380.629
7.867.247
14.021.249
128.725.398
99.461.272
185.994.659
24.520.206
0
12.263.724
3.814
1.821.641
2.182.841
3.615.494
737.368.263
5,3%
-3,1%
-8,5%
7,9%
-42,9%
13,0%
-2,1%
14,9%
10,5%
8,3%
0,0%
8,0%
-95,3%
3,9%
-2,7%
-1,5%
1,4%
October 2010
27
GUNES
SIGORTA
IN
FIGURES
(Million TL)
FINANCIAL INDICATORS
2006
2007
2008
2009
2010
2011-1Q
Income Statement
Gross Written Premiums
512,4
637,5
709,6
727,0
737,4
230,1
Net Written Premiums
260,9
342,8
373,9
395,0
415,7
109,9
Net Earned Premiums
244,1
290,8
342,6
375,0
409,7
105,9
-196
-233,1
-269,0
-308,6
-341,8
-84,4
Net Commission Expenses
-13,2
-14,1
-53,7
-29,4
-41,9
-8,4
Net Technical Profit
29,2
49,4
57,0
30,0
18,4
10,4
General Expenses
-31,3
-43,7
-59,5
-62,4
-70,1
-18,2
Profit Before Tax
2,4
10,2
15,7
-16,8
-32,4
-5,3
Net Profit*
2,4
7,0
11,1
-16,8
-32,4
-5,3
Total Assets
401,8
498,7
655,6
736,7
782,7
797,7
Shareholders’ Equity
161,2
197,0
230,1
236,6
242,3
238,9
Net Claims Incurred
Balance Sheet
26/10/2010
June
2011
October 2010
28
GUNES
SIGORTA
IN
FIGURES
MARKET SHARE DEVELOPMENT
Comparison of Top Ten Companies
FIRE
2008
2009
2010
Axa
14,88%
15,41%
14,22%
Anadolu
12,13%
11,80%
11,49%
Ak
7,52%
7,67%
7,11%
Allianz
8,99%
9,16%
9,21%
Groupama
7,05%
6,86%
4,37%
Guneş
7,58%
6,83%
6,50%
Yapı Kredi
5,06%
4,72%
5,23%
Eureko
6,16%
6,51%
6,38%
Ergo
5,85%
5,18%
5,18%
Mapfre
Genel
3,51%
3,52%
3,12%
26/10/2010
June
2011
MARINE
2008
2009
2010
Axa
9,79%
10,28%
8,79%
Anadolu
10,21
10,40%
10,13%
Ak
7,77%
6,69%
5,43%
Allianz
10,93%
10,27%
9,06%
Groupama
5,55%
5,22%
5,27%
Guneş
5,21%
4,75%
4,70%
Yapı Kredi
3,94%
3,70%
3,72%
Eureko
6,07%
6,61%
6,21%
Ergo
10,94%
10,17%
10,58%
Mapfre Genel
5,88%
5,66%
6,79%
October 2010
29
GUNES
SIGORTA
IN
FIGURES
MARKET SHARE DEVELOPMENT
Comparison of Top Ten Companies
2010
MOTOR
TPL
2008
2009
2010
16,24%
14,87%
Axa
13,15%
14,69%
20,55%
12,51%
12,98%
15,13%
Anadolu
9,19%
10,60%
9,48%
Ak
10,06%
9,86%
9,89%
Ak
8,33%
7,04%
5,32%
Allianz
6,57%
6,40%
6,24%
Allianz
5,14%
4,18%
3,65%
Groupama
8,32%
8,20%
6,57%
Groupama
9,15%
7,29%
6,18%
Guneş
7,04%
6,99%
5,48%
Yapı Kredi
4,00%
3,73%
4,74%
Guneş
7,80%
7,76%
7,53%
Eureko
4,11%
3,94%
4,89%
Yapı Kredi
2,48%
2,02%
2,18%
Ergo
7,67%
7,60%
7,31%
Eureko
1,41%
1,63%
2,14%
Ergo
12,12%
10,56%
6,82%
Mapfre Genel
3,45%
3,86%
3,61%
Mapfre Genel
3,72%
3,49%
4,16%
LAND
VEHICLES
2008
2009
Axa
17,79%
Anadolu
26/10/2010
June
2011
October 2010
30
GUNES
SIGORTA
IN
FIGURES
MARKET SHARE DEVELOPMENT
OF TECHNICAL BRANCHES
HEALTH
2008
2009
2010
GENERAL
LOSSES
2008
2009
2010
Axa
0,23%
0,71%
3,71%
Axa
%8,60
% 9,94
% 7,41
Anadolu
10,10%
10,82%
10,31%
Anadolu
%9,67
% 10,64
% 11,16
Ak
7,74%
8,28%
8,08%
Ak
%7,55
% 9,23
% 6,47
Allianz
19,10%
18,57%
17,81%
Allianz
%6,48
% 6,25
% 5,15
Groupama
4,88%
4,91%
5,64%
Groupama
%10,11
% 9,91
% 9,59
Guneş
4,52%
4,10%
3,30%
Guneş
%11,29
% 9,31
% 10,01
Yapı Kredi
21,76%
20,11%
19,78%
Yapı Kredi
%4,67
% 4,64
% 5,56
Eureko
1,94%
1,95%
2,53%
Eureko
%8,49
% 10,45
% 8,15
Ergo
1,16%
2,75%
3,21%
Ergo
%4,41
% 2,80
% 3,03
Mapfre Genel
2,19%
2,24%
2,25%
Mapfre Genel
%4,76
% 4,44
% 4,63
26/10/2010
June
2011
October 2010
31
GUNES
SIGORTA
IN
FIGURES
OUR REINSURANCE PANEL
Our Treaty Reinsurers
European Market
Far East Market
Middle East Market
Facultative Placements
Fire
Local
Engineering
Liability
Marine
26/10/2010
June
2011
Local & Middle East Markets
London Market
Local
October 2010
32
GUNES
SIGORTA
IN
FIGURES
26/10/2010
June
2011
STRATEGIC FOCUS AREAS
October 2010
33
GUNES
SIGORTA
IN
FIGURES
TURKISH MARKET REQUIREMENTS
Back to back cover
As per original policy terms, warranties,
clauses and conditions
Follow the original settlements/fortune in
every respect
Subject to Turkish Law, Practice and
Jurisdiction
26/10/2010
June
2011
October 2010
34
GUNES
SIGORTA
IN
FIGURES
CONTACT INFORMATION
GÜNEŞ SİGORTA A.Ş.
Güneş Plaza, Büyükdere Cad. No:110
34394 Esentepe-Şişli / İSTANBUL
Tel: +90 212 444 19 57
Fax: +90 212 355 64 64
www.gunessigorta.com.tr
26/10/2010
June
2011
October 2010
35
Thank you for your attention
26/10/2010
October 2010 36