Page 17 - Turkinsurance Digital Magazine

at a glance 15

Allianz Turkey shares significant notes during financial press conference

Tolga Gürkan and Ersin Pak, CEO and CFO of Allianz Turkey
respectively, hosted a press conference to evaluate the financial
results of 2018 and share the targets for the coming term.

“Last year was very challenging for Turkish economy. In such
an atmosphere, we managed to maintain our leadership position.
Consolidated asset size of Allianz Sigorta, Allianz Hayat ve Eme-
klilik and Allianz Yaşam ve Emeklilik companies reached 25.5
billion TL as of 2018 year-end. Sum of our premium volume and
contributions stood at 10.5 billion TL. We generated a profit of
860 million TL. Our return on equity was 28.6 percent, while our
capital adequacy ratio was 192.9 percent. Our financial strength
was successfully reflected on our stakeholders too. We paid 3.6
billion TL to our customer claims. We distributed 266 million TL
as dividends to our shareholders, 987 million TL as commissions impacts of delayed consumption, we estimate this to reflect posi-
to our distribution channels and 390 million TL as remuneration tively on the new car sales and motor insurance during the second
and fringe benefits to our employees. Total amount of taxes and half of this year.”
allowances we paid to the public institutions reached 832 million
TL. We care for sustainable development, which gives us power Complementary health insurance was the shining star of
to continue our investments in Turkey,” said Tolga Gürkan, who 2018
met with the press for the first time after taking over the cap- Highlighting their leadership in health insurance with a growth
tain’s position of Allianz Turkey. of 25 percent in 2018, Gürkan added that complementary health
insurance played a significant role in this growth. He said that
Allianz is the market leader of non-life segment this line grew by 150 percent in terms of retail customers during
According to the consolidated financial results, Allianz Turkey the first two months of 2019 over the same period of last year.
was the market leader of non-life segment in 2018 with a pre- He stated that Allianz’s leadership in health insurance was main-
mium production of 5.8 billion TL and a market share of 12.2 ly the result of its wide hospital and doctors’ network, 70 percent
percent. The company maintained its leadership position in traf- automation in their claims processes and their Health Assistance
fic insurance as well, with a market share of 10 percent and a Program.
premium volume of 1.5 billion TL. However, with a premium
production of 740 million TL and a market share of 9.4 percent, “In non-auto segment, 2018 was the year of fire insur-
Allianz Turkey ranked third in motor (casco). Having produced ance”
2.2 billion TL in health insurance premiums, Allianz Turkey Gürkan said that although number of fires did not increase dras-
maintained the leadership of health insurance with a significant tically, there were fires with bigger impact compared to the pre-
market share of 35.2 percent; but ranked fourth in non-auto with vious year, according to the reports by the fire department. He
a market share of 7.2 percent and 1.3 billion TL in premiums. said they did not see any reason for misconduct in terms of those
The company continued to rank second in life insurance with a events, but that policyholder companies had to reduce the number
premium production of 707 million TL and market share of 10.2 of shifts and avoided buying repair services due to financial re-
percent. As in previous year, Allianz Turkey was the third compa- strictions. According to Tolga Gürkan, Allianz paid 250 million
ny in the pension sector with a fund size of 14.5 billion TL and a TL as a result of 14 factory fires from 11 sectors during 2018.
market share of 16.4 percent.
“We should focus on non-credit products for life insur-
“We expect to go back to free-tariff system in traffic ance”
line” Allianz’s CEO stated that credit life insurance products were nat-
Underlining that they expected a permanent solution to benefit urally impacted severely by economic fluctuations and high inter-
all parties of the traffic insurance, which is the largest insurance est rates, and added: “Turkey falls way behind the averages of
line of the market, through a holistic approach for price-cap sys- OECD countries in terms of life insurance, with a penetration rate
tem; Tolga Gürkan said that the market should focus on distin- of 0.2 percent and 20 USD premium per capita. We guarantee
guishing good drivers from bad drivers, reducing the costs for the investment of our policyholders and offer them tax advantage
good drivers and decreasing the vehicle type risks to be covered with our Return of Premium Life Insurance and Return of Pre-
for risky drivers. mium Life Education Insurance products.”
“Motor insurance was impacted by the contraction in “Our fund management yielded a return above the mar-
automotive sector” ket average”
Gürkan added: “Exchange rate increases affected the spare part Gürkan pointed out that the average return of their funds was
prices, and therefore increased costs in the motor line; where- 41 percent for the last three years, while the average return of
as decreasing sales in both new and second hand cars created a their two pension companies was 46 percent. Gürkan added that
narrowing impact on the motor insurance line. During the first Allianz’s new Sustainable Life Fund could invest both in the Sus-
quarter of 2019, motor line shrank by 8.4 percent, 3 percent of tainability Index of BIST and other sustainability products over-
which was driven by the reduction in new car sales. Due to the seas, underlining that 2018’s sustainability solution came from
the pension segment.