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ANADOLU HAYAT EMEKLİLİK A.Ş.
COMPANY PRESENTATION
February 2009
Index
Corporate Profile
Lines of Business - Life & Pensions
Financials
Stock Data
2
Corporate Vision
To be the leading company in Turkey in
all aspects of personal financial
planning concerning the future of
Turkey and the Turkish people
3
Corporate Profile

First life insurance company in Turkey

Established in 1990 as a subsidiary of Türkiye İş Bankası

Market leader in life insurance sector since establishment

Has been operating in pension business since 27.10.2003

The only Life & Pension company publicly traded (since 2000)
4
Ownership Structure
Türkiye İş Bankası A.Ş.
62%
Anadolu Anonim Türk Sigorta Şirketi
20%
Fortis Bank A.Ş.
1%
Milli Reasürans A.Ş.
1%
Free Float
16%
5
TOTAL NUMBER OF COMPANIES AS OF 2007
Insurance Companies (Insurance)
50
- Non-Life
28
- Life
11
- Life & Pension
10
- Pension
1
Reinsurance Companies
Source: Treasury
6
1
TURKEY INSURANCE SECTOR
Premium Productions as of 2007
Total Premium Per Capita (USD)
133
Non-Life Premium Per Capita (USD)
117
Life Premium Per Capita (USD)
16
Total Premium Production (Billion USD)
Total Premium Production / GDP
Source: Treasury
7
9,4
1,28 %
Growth Strategy

Shift Distribution Channel Strategy
 Focus on Bancassurance
 New Strategic Partnerships with Banks
 Expanding Direct Sales Team
 Improve agency profile

Improve Customer Service Quality

Improve HR quality and thus productivity

Focus on Corporate Pension Business
8
Network
Bancassurance
1044 branches
4 branches
Direct Sales
Agents & Brokers
246
304
Exclusive Agencies
44 Brokers
Call
9
10 branches
Licensed Salesperson
Internet
Other
336 branches
Centre
334 branches
78 branches
Corporate Profile
Lines of Business - Life & Pensions
Financials
Stock Data
10
Lines of Business
Pensions


Individual
Corporate
Life Insurance



11
Endowment
Term Life
Annuities
Private Pension System in Turkey
Basic Features











Started on 27.10.2003
12 Licensed pension companies
Third pillar system
Defined contribution
Voluntary participation
Tax incentives for both participant & employer
Fully funded system
Minimum retirement age is 56
Funds are managed by asset management companies
Separate pension accounts for each participant
Participants have the right to;

Switch funds or pension plan

Transfer accounts between pension companies once a year

Merge their separate pension accounts

Cease contribution payments

Leave at anytime
12
Private Pension System in Turkey
Tax Incentives



Contribution Stage

Contributions are tax deductible up to %10 of income with a cap of annual
minimum wage.

Employer contributions are also tax deductible subject to the same limits
Investment Stage

Investment income of pension funds are tax exempt

No stamp tax in setting up pension funds

No tax on transactions in pension system
Benefits payments

%25 of retirement payments are exempt from income tax

Residual is subject to a witholding tax of 5 %

Early surrenders are subject to 15% or 10% (in case of completion of 10
yrs within the system) witholding tax with no exemption
13
Private Pension System in Turkey
TREASURY
PENSION MONITORING CENTRE
Reporting of
Pension Accounts
PARTICIPANT &
SPONSOR
PENSION
ACCOUNT
ADMINISTRATION
*
ASSET
MANAGEMENT **
FUND
ADMINISTRATION
***
Reporting of
Pension Accounts
MONEY AND
CAPITAL
MARKETS
Reporting of
Funds
CUSTODIAN BANK
CAPITAL MARKETS BOARD
14
* Anadolu Hayat Emeklilik
** İş Asset Management, HSBC Asset Management, TEB Asset Management
*** Isbank
Private Pension System in Turkey
8.000
2.000.000
6.000
1.500.000
4.000
1.000.000
2.000
500.000
-
0
2003
15
2004
2005
2006
Funds (TL Mil)
2007
2008
2009/02
Number Of Participants
Number of
Participants
Fund Size
(TL Mil)
Overview as of 19.02.2009
Private Pension System Outlook
As of
2004 %
As of
2005 %
As of
2006
As of
2007
As of
2008
As of
2009
As of
31.12.2003 Change 31.12.2004 Change 31.12.2005 Change 31.12.2006 Change 31.12.2007 Change 31.12.2008 Change 19.02.2009
Net Asset Value (mio TL)
AHE
6
683%
47
272%
175
202%
529
72%
910
45%
1.323
3%
1.367
Sum of Sector
32
706%
258
313%
1.066
137%
2.527
81%
4.571
40%
6.384
3%
6.565
Market Share
18,8%
18,2%
16,4%
20,9%
19,9%
20,7%
20,8%
Number of Participants
AHE
3.114
985%
33.798
190%
98.178
93%
189.567
57%
297.662
26%
376.330
1%
380.636
Sum of Sector
15.245
1961%
314.257
114%
672.696
60%
1.073.650
36%
1.457.704
19%
1.741.552
1%
1.752.672
Market Share
20,4%
16
10,8%
14,6%
17,7%
20,4%
21,6%
21,7%
Private Pension System
Sectoral Expectations for 2013
Consolidated Expectations of Pension Companies for 2013
Total Number of Participants (Individual)
Total Number of Participants (Group)
Median
2,300,000
953,941
Total Number of Participants (Total)
3,250,000
Total Number of Contracts (Individual)
2,500,000
Total Number of Contracts (Group)
Total Number of Contracts (Total)
985,495
3,475,000
Total Amount to be Invested (mio YTL)
23,000
Total Amount of Participant's Funds (mio YTL)
28,355
Total Number of Participants to Opt Out
650,000
Total Number of Contracts to be Transferred
105,000
Total Number of Authorized Intermediaries
Source: Pension Monitoring Center
17
15,000
KEY DRIVERS FOR GROWTH IN
PENSION BUSINESS



18
Economic Improvements in Turkey
 Structural reforms
 Extended maturities
 Purchasing power
 Lack of confidence in the social security system
Advantages of Pension System
 Tax incentives
 Transparent system
 Participating to the investment process
New Regulations
 Vesting
 Right of transfers to the pension system
KEY DRIVERS FOR OUR MARKET
LEADERSHIP
19

Distribution network

Diversified products

Fund performance

Charging structure

Service quality
Private Pension System in Turkey
Overview as of 19.02.2009
Number Of
Participants
Market
Share
Funds
(mio TL)
Market
Share
AHE
376,330
21.6%
1,323
20.7%
XXX
336,500
19.3%
898
14.1%
XXX
278,776
16.0%
1,440
22.6%
XXX
252,418
14.5%
951
14.9%
XXX
149,234
8.6%
351
5.5%
Other 7
348,294
20.0%
1,415
22.2%
1,741,552
100.0%
6,384
100.0%
Total
20
Private Pension Funds & Mutual Funds
Fund Type
Average
Maturity
Net Asset
Value
(mio TL)
Equity
(%)
Turkish
Treasury
Bonds
(%)
Reverse
Repo
(%)
Money
Market Inst.
(%)
Foreign
Currency
Sec.(%)
Other
(%)
PRIVATE PENSION FUNDS
31.12.2008
376
6,369
7.83
69.73
15.56
0.01
0.53
6.34
19.02.2009
408
6,565
7.12
71.07
16.61
0.00
0.56
4.62
31.12.2008
53
23,692
1.51
43.46
50.24
4.30
0.04
0.45
19.02.2009
75
27,583
1.16
32.68
61.87
3.60
0.04
0.64
MUTUAL FUNDS
21
Pension Products
Fund Menu
Conservative
Balanced

Cash Fund

Intnl. Mixed Fund

Conservative Fund

Eurobond $ Fund

Bond Fund

Eurobond € Fund

Balanced Fund
64%
22
27%
Aggressive

Equity Fund

Aggressive Fund
9%
31.12.2007-31.12.2008
Weighted Average Return
Net Asset Value
(mio TL)
Weighted
Average Return
(%)
XXX
228
14.89
XXX
324
13.31
XXX
363
12.98
XXX
932
12.80
XXX
898
12.64
XXX
399
11.59
Anadolu Hayat Emeklilik
1,323
10.19
XXX
1,440
8.97
XXX
317
7.59
XXX
77
4.70
6,302
10.97
Private Pension Firm
TOTAL
23
Pension Production by Channel
2006
2007
2008
Direct to Customer +
Direct Sales
6%
2,1 %
3,4 %
Broker
0,4 %
1,0 %
1,0 %
Agency
15 %
4,4 %
6,2 %
Is Bank
5%
5,5 %
2,5 %
Is Bank + Direct Sales
34 %
37,8 %
43,9 %
Is Bank + Agency
15 %
18,3 %
19,0 %
HSBC
24 %
23,4 %
17,8 %
TEB + Agency
0,3 %
7,0 %
4,9 %
Anadolubank
1%
0,5%
1,3 %
100 %
100%
100%
BANCASSURANCE
Total
24
65,4 %
Pension Products
Charging Structure & Minimum Contribution
Explanation
Charging Method
Limit
Individual Pension
Plans (#3)
Group Pension Plans
(#117)
0
At the phase of
entrance to the
System for each
pension account
ENTRANCE FEE
MANAGEMENT FEE
To cover
administrative
expenses
FUND
MANAGEMENT
FEE
MIN.
CONTRIBUTION
25
Can be deferred till
the leaving date or
can be collected by
installments
½ of
Minimum
Wage
On contributions
8%
To cover fund
management
expenses
On NAV of each fund
1/10,000
(daily)
3,72%
(annual)
Min. monthly
amount to be paid
regularly for at
least 10 yrs.
-
-
to ½ of minimum
½ of minimum wage
wage
Deferred till leaving
Deferred till leaving
within 5 yrs.
within 5 yrs. for some
plans
After 5 yrs completion
0
After 5 yrs completion
0 for all plans
0% to 8% (depending
on the contribution
amount & payment
method)
2.4% (annual average)
66 TL
%0 to %5
%1 to %2,6 (annual)
42 TL
Life Insurance in Turkey
Market Shares (Premium Production)
PENSION COMPANY
2006
2007
2008
AHE
25 %
24 %
22%
XXX
13 %
15 %
19%
XXX
9%
11 %
9%
XXX
7%
8%
8%
XXX
8%
7%
7%
XXX
6%
6%
5%
Others
31 %
29%
30%
TOTAL
100 %
100%
100%
26
Life Insurance in Turkey
Market Shares (Mathematical Reserves)
PENSION COMPANY
AHE
%
34
XXX
XXX
XXX
XXX
XXX
Others
TOTAL
13
11
10
7
6
20
100
Source: Treasury
27
2006
( Mio TL)
1.302
511
425
375
266
229
759
3.867
2007
%
35,0
( Mio TL)
1.420
12
11
10
7
5
20
100
476
460
406
277
221
795
4.054
Life Products / Profit Sharing Rates
28
YEAR
PROFIT
SHARE(%)
USD(%)
CPI(%)
1999
119
73
69
2000
43
24
39
2001
76
114
69
2002
62
14
30
2003
47
-15
18
2004
29
-4
9
2005
23
0
8
2006
16
5
10
2007
20
-17
8
2008
17
30
10
AVERAGE
45
22
27
Life Portfolio
Total Number of Policies
2006
2007
2008
Endowment
159.263
125.697
103.724
Annuity
40.001
39.394
39.223
Term Life
552.223
711.556
667.734
Total
751.487
876.647
810.681
29
Life Portfolio
Total Premium Production(TL)
2006
2007
2008
Endowment
198.640.493
177.682.069
176.014.174
Annuity
101.341.276
111.279.994
134.910.683
40.492.234
49.930.404
33.989.420
340.474.003
338.892.467
344.914.277
Term Life
Total
30
Life Portfolio
Premium Production - New Business (TL)
2006
2007
2008
8.020.030
5.303.844
6.980.140
Annuity
101.413.253
111.279.994
134.910.683
Term Life
39.750.798
48.737.273
33.491.012
Total
149.184.081
165.321.111
175.381.835
Endowment
31
Life Production by Channel
2006
2007
2008
Agency & Broker
47 %
41 %
43 %
Direct to Customer & Direct Sales
22 %
24 %
30 %
Isbank
24 %
27 %
16 %
Isbank & Direct Sales & Agency
7%
HSBC
Total
100 %
32
7%
10 %
1%
1%
100%
100%
26%
Life Products
Charging Structure
Explanation
Charging
Method
Limit
Group Life
Products
TRL - $/€
1.Year 30%-20%
2. Year 5%-2%
3. Year+ 3%-2%
Varies
according to the
group
For
AGENCY
COMMISSION
-
On
premiums
term life products total of
commission rates cannot
exceed 25%.
For other products total of
commission rates cannot
exceed 50%.
Annual max.limit is 10%
Individual Life
Products
MANAGEMENT
FEE
To cover
administrative
expenses
On
premiums
FUND CHARGE
To cover fund
management
expenses
On current
year’s
revenues
Max. 15% of the revenues
RISK PREMIUM
Depends on
the age and
sex of the
insured
On
premiums
No minimum or maximum limits
33
None
TRL - $/€
1.Year 5%-3%
2. Year 4%-3%
3. Year+ 3%-3%
Varies
according to the
group
5%
5%
10%
for early
surrenders
-
10%
for early
surrenders
-
Corporate Profile
Lines of Business - Life & Pensions
Financials
Stock Data
34
Financial Highlights
( Mio TL)
Written Premium
2007
2008
337
345
8
18
2.825
3.400
Paid-In Capital
175
250
Shareholders’ Equity
344
350
1.453
1.608
45
53
General Technical Profit
Total Assets
Math.& Profit Sharing Provisions
Net Profit
35
Financials
Income Statement
(Mio YTL)
TECHNICAL PART
A- NON-LIFE TECHNICAL INCOME
BI-
NON-LIFE TECHNICAL EXPENSES
NON-LIFE TECHNICAL PROFIT / LOSS
CD-
LIFE TECHNICAL INCOME
LIFE TECHNICAL EXPENSES
IIE-
LIFE TECHNICAL PROFIT / LOSS
PENSION FUND TECHNICAL INCOME
F- PENSION FUND TECHNICAL EXPENSES
III- PENSION FUND TECHNICAL PROFIT / LOSS
IV- GENERAL TECHNICAL PROFIT / LOSS
2007
2008
0,2
0,5
-0,3
-0,1
-0,4
0,1
556,9
-530,6
629,5
-618,2
26,3
38,2
11,3
58,5
-56,5
-18,3
7,9
-51,6
6,9
18,3
G-
INVESTMENT INCOME
58,0
58,9
HI-
INVESTMENT EXPENSES
PROFIT FROM OTHER & EXTRAORDINARY
-5,4
-3,5
-8,9
-0,9
49,1
57,0
49,1
67,4
-11,6
45,4
-14,4
53,0
V- COMPANY ASSETS PROFIT / LOSS
VI- PERIOD PROFIT / LOSS (IV+V)
VII- PROVISION FOR TAX & OTHER LEGAL LIABILITIES
IX- PERIOD NET PROFIT / LOSS (VII - VIII)
36
Financials
Balance Sheet
(Mio YTL)
2007
2008
ASSETS
I.
LIQUID ASSETS
62
75,3
II.
MARKETABLE SECURITIES
1.716,3
1.948,9
934,3
82,2
1.334,7
4
24,4
24,4
5,8
12,7
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS' EQUITY
2.825
3.400
I.
PAYABLES
957,0
1.360,2
II.
TECHNICAL PROVISIONS
1.506,3
1.669,8
III.
OTHER PROVISIONS
7,4
4,7
10,0
344,3
15,3
350
45,4
53,0
2.825
3.400
III. RECEIVABLES
IV. INVESTMENTS
V.
FIXED ASSETS
VI. OTHER ASSETS (NET)
IV. TAX PROVISIONS
V. SHAREHOLDERS' EQUITY
VI. PROFIT
TOTAL LIAB.& SH.EQUITY
37
Corporate Profile
Lines of Business - Life & Pensions
Financials
Stock Data
38
ANADOLU HAYAT EMEKLİLİK
Stock Data
Year
Year-end
Price ($)
MCAP($)
2003
0,63
157.500.000
2004
1,10
275.000.000
2005
2,03
507.500.000
2006
2,32
580.000.000
2007
2,88
720.000.000
2008
0,94
235.000.000
39
THANK YOU…
40