Dr. E. Baturalp Pamukçu, General Manager of Türk Nippon Sigorta, evaluated the first quarter technical results of Turkish insurance market. Pamukçu said that earned premiums increased by 54 percent in traffic insurance, while earned premiums increased by 54 percent over the same period of last year. He added that, however, burden of provisions decreased and that growth of paid compensations remained below the premium increase. Pamukçu underlined that loss ratio was positively influenced as a result; decreasing technical loss by 53 percent over the same period of previous year with 338 million TL. He added that the loss ratio declined from 160 percent in the first quarter of 2015 to 108 percent in the first quarter of 2016. Pamukçu said that he believed the amendments to the traffic insurance with the omnibus bill would be enough for the moment, and added as follows: “

‘Results were positively influenced by the recovery of loss ratio’

Pamukçu said that the improvement of the balance sheet results was mainly driven by the decrease in the ratio of paid compensations to earned premiums and in provisions. Another factor was the growth of earned premiums. Pamukçu added that a general improvement was observed in loss ratios: “Within the framework of these developments, life insurance reported a profit of 108 million TL at the end of the first quarter of 2016, compared to the loss of 199 million TL at the end of the first quarter of 2015. In general, technical improvement in traffic insurance, and positive results of the non-auto branch resulted in a profit for the market at the end of the first quarter.

‘Striking profit increase in fire insurance’

Pamukçu evaluated the first quarter results in terms of non-auto lines, as well; emphasizing that the most striking profitability growth was reported in the fire and natural forces lines at the end of the first quarter of 2016. Pamukçu added as follows: “This made a bad start to 2015, which continued until the last quarter. Last quarter was a good term in terms of claims, and resulted in technical profitability. During the first quarter of 2016, growth of earned premiums and decrease in paid compensations generated an escalation in technical profit, from 32 billion TL to 90 billion TL.  The fact that natural catastrophe losses also decreased compared to the first quarter of 2015, was another positively contributing factor.”

Pamukçu expressed that high premium production by sickness/health insurance, good loss ratio of health insurance products other than classical products, and consequently, positive technical results, all contributed to a profit increase in terms of consolidated results.

Pamukçu also assessed the growth rates of the first quarter; and said that Turkish insurance market grew by 35.6 percent during the first three months of 2016 over the same period of 2015. He added that this growth rate was 38.3 percent for non-life segment. He underlined that the main reason of growth for the on-life segment was the growth of traffic insurance by as high as 126 percent. Pamukçu added: “In the first quarter, general losses line grew by 35.02 percent, sickness/health by 21.7 percent, motor own damage by 13.7 percent, and fire and natural forces by 10.1 percent. Total underwritten premiums reached 10.7 billion TL, and non-life premiums stood at 9.6 billion TL. Highest amount of premiums were underwritten in traffic insurance with 2.8 billion TL, which was followed by general losses with 1.5 billion TL.

“According to 2016 first quarter results, we can say easily say that year-end results will mainly be determined by traffic insurance results,” said Pamukçu; adding that a technical improvement in this line until the end of this year will mean better consolidated results compared to the previous year, if it is also supported by other non-motor lines.