Financial Information and Risk Management

With a solid financial structure that included TL 1.1 billion in shareholders’ equity at end-2020, Aksigorta is one of the leading companies in the Turkish insurance sector.

Financial Position, Profitability and Solvency

With a solid financial structure that included TL 1,123 million in shareholders’ equity at end-2020, Aksigorta is one of the leading companies in the Turkish insurance sector.

Continuing to grow upon sustainable profitability, Aksigorta completed the year with TL 432 million of profit.

Premium Production (TL Million) 2018 3,417 2019 4,474 5,272 2020
Shareholders’ Equity (TL Million) 2018 718 2019 899 1,123 2020
Net Profit (TL Million) 2018 228 2019 366 432 2020
Total Assets (TL Million) 2018 2019 2020 3,515 4,608 5,620
Technical Profit (Technical Part Balance) (TL Million) 2018 2019 2020 368 584 695
Retention Ratio (Non-Life) (%) 2018 2019 2020 59 58 56
TL billion Aksigorta premium production
TL billion Aksigorta total assets
TL million Technical profit
Written Premiums/ Shareholders’ Equity (%) 2018 2019 2020 476 498 469
Technical Profit (Technical Part Balance)/Written Premiums (%) 2018 2019 2020 11 13 13
Net Profit/ Written Premiums (%) 2018 2019 2020 7 8 8

In 2020, the Company reached to TL 5,272 million premium production. A breakdown of premiums by business line during the most recent two years is shown below:

Breakdown of Premiums by Business Line

Written Premiums Distribution (%)
(TL Thousand) 2019 2020 Change
19/20 (%) 		2019 2020
Fire 812,778 981,754 21 18 19
Marine 93,811 116,503 24 2 2
Motor Own Damage 855,799 1,040,656 22 19 20
Motor Third Party Liability 1,553,652 1,744,004 12 35 33
Other 468,618 597,232 27 10 11
General Losses 297,970 319,959 7 7 6
Health 390,932 472,034 21 9 9
Total 4,473,560 5,272,142 18 100 100
2019 Premium Distribution Portfolio Motor Own Damage Fire Motor Third Party Liability Health Other General Losses Marine 19% 18% 35% 9% 10% 7% 2%
2020 Premium Distribution Portfolio Motor Own Damage Fire Motor Third Party Liability Health Other General Losses Marine 20% 19% 33% 9% 11% 6% 2%

As of end-2019, 56% of generated premiums (amounting to TL 2,969 million in value) were retained by the Company.

The charts below show the amounts and relative percentages of produced premiums that were retained by the Company during the most recent two years, broken down by business line:

Retention Premium Retention Ratio (%)
(TL Thousand) 2019 2020 2019 2020
Fire 172,352 189,542 21 19
Marine 26,460 31,325 28 27
Motor Own Damage 851,151 1,035,002 99 99
Motor Third Party Liability 1,234,580 1,395,992 79 80
Other 106,396 113,334 23 19
General Losses 96,752 104,698 32 33
Health 114,647 98,751 29 21
Total 2,602,338 2,968,644 58 56

Retention Ratio (%)

Fire 2018 25 2019 21 19 2020
Marine 2018 37 2019 28 27 2020
Motor Own Damage 2018 2019 2020 99 99 99
Motor Third Party Liability 2018 2019 2020 77 79 80
2018 27 2019 23 19 2020 Other
General Losses 2018 27 2019 32 33 2020
Health 2018 29 2019 29 21 2020

As of end-2020, Aksigorta retained TL 2,736,914,000 in premiums which it had earned in the non-life branch. Meanwhile, the Company’s share of incurred non-life claims amounted to TL 1,781,009,000. As of the same date, the ratio of incurred non-life claims to earned premiums (net) was 65%. The charts below show the amounts and relative percentages of the Company’s incurred claims and earned premiums during the most recent two years, broken down by business line:

Claims
Incurred (Net) 		Earned
Premiums (Net) 		Claims Incurred/
Earned Premiums
(Net) (%)
(TL Thousand) 2019 2020 2019 2020 2019 2020
Fire 62,391 98,256 158,658 173,652 39 57
Marine 6,635 8,470 23,808 26,817 28 32
Motor Own Damage 551,209 609,372 771,968 926,394 71 66
Motor Third Party Liability 821,830 951,721 1,015,026 1,303,330 81 73
Other 71,183 76,426 145,351 151,978 49 50
Engineering 20,180 27,971 36,922 47,997 55 58
Health 10,968 8,793 91,591 106,746 12 8
Non-Life Total 1,544,396 1,781,009 2,243,324 2,736,914 69 65

Claims Incurred/Earned Premiums (Net) (%)

Fire 2018 46 2019 39 57 2020
Marine 2018 32 2019 28 32 2020
Motor Own Damage 2018 89 2019 71 66 2020
Motor Third Party Liability 2018 81 2019 81 73 2020
Other 2018 41 2019 49 50 2020
Engineering 2018 2019 2020 58 55 58
Health 2018 2019 2020 8 12 8

Technical Profit Balance

At end-2020, Aksigorta showed a total technical profit amounting to TL 694,888 thousand. The charts below show the amounts and relative percentages of the Company’s technical profit during the most recent two years, broken down by business line:

General Technical Profit Balance

(TL Thousand) 2019 2020
Fire 52,029 37,306
Marine 19,327 16,830
Motor Own Damage 90,787 149,929
Motor Third Party Liability 287,306 352,487
Other 53,333 48,759
Engineering 15,475 18,378
Health 65,875 71,224
Total 584,132 694,912

General Technical Profit Balance/Written Premiums (%) (Non-Life)

2019 2020
Fire 6 4
Marine 21 14
Motor Own Damage 11 14
Motor Third Party Liability 18 20
Other 11 8
General Losses 5 6
Health 17 15
Total 13 13

General Technical Profit Balance/Written Premiums (Non-Life) (%)

Fire 2018 2019 2020 7 6 4
Marine 2018 28 2019 21 14 2020
Motor Own Damage 2018 -11 2019 11 14 2020
Motor Third Party Liability 2018 2019 2020 21 18 20
Other 2018 2019 2020 23 11 8
General Losses 2018 2019 2020 3 5 6
Health 2018 19 2019 17 15 2020
Total 2018 11 2019 13 13 2020

In 2020, Aksigorta earned TL 737,192 thousand in investment income in addition to the earnings generated by its insurance business activities. The Company’s investment income during the most recent two years is shown below.

Investment Income (TL Thousand) 2019 2020 Change
Foreign Exchange Gain 230,547 316,242 37%
Income from Financial Investment 277,421 343,680 24%
Real Estate Income - - -
Income from Derivatives 155,027 77,270 -50%
Other Investment Income - - -
Total Investment Income 662,995 737,192 11%

Based on all of these technical and financial results, Aksigorta booked profit before tax of TL 555 million. The Company’s shareholders’ equity amounted to TL 1,123 million at end-2020. The breakdown of shareholders’ equity items during the most recent two years is shown below:

Shareholders’ Equity (TL Million) 2019 2020 Change
Paid-in Capital 306 306 0%
Profit and Capital Reserves 140 298 113%
Previous Years Income 86 86 0%
Net Profit of the Period 366 432 18%
Total Shareholders’ Equity 899 1,123 25%

At end-2020, Aksigorta’s principal investments amounted to TL 1,746 million in value.

Developments in the Company’s investments during the most recent two years are shown below:

Investments (TL Thousand) 2019 2020 Change
Financial Assets and Investments with Risks on Policyholders 1,330,189 1,744,246 31%
Affiliates 0 0 0%
Properties 1,770 1,599 -10%
Total Investments 1,331,959 1,745,844 31%

Aksigorta does not have affiliates in 2020.