Anadolu Anonim Türk Sigorta Sirketi (ANSGR) Q4 2024 earnings summary

Executive summary

• Achieved strong financial performance in 2024, with net profit rising 84% year-over-year to TRY 10.9 billion, driven by both underwriting and investment income.

• Premium production increased 57.3% to TRY 69.6 billion, outpacing sector growth of 72%.

• Maintained a leading position in the Turkish insurance sector, with a 9% market share and robust premium growth.

• Benefited from improved macroeconomic stability and a tight monetary policy environment.

• Technical profitability improved significantly, with claims ratio dropping from 91% to 72.4% and solo ROAE reaching 50.7%.

Financial highlights

• Net profit rose 84% year-over-year to TRY 10.9 billion (solo), and consolidated net profit increased 81% to TRY 11.5 billion.

• Total assets increased 65% to TRY 96.2 billion; shareholders' equity more than doubled to TRY 31 billion, aided by a TRY 5.9 billion revaluation gain.

• Assets under management reached TRY 55.5 billion, up 73% from the previous year.

• Investment income reached TRY 16.93 billion, with a portfolio yield of 46.7%.

• Gross written premiums rose 57.3% to TRY 69.6 billion.

Outlook and guidance

• 2025 expected to be challenging but more predictable, with continued focus on profitability and premium growth.

• Lower interest rates anticipated, with discount rates on MTPL policies expected to decline, impacting reserves and technical profit.

• Stable TL and potential for real investment returns anticipated.

• Large asset base and stable macroeconomic conditions seen as advantages for investment income.

• Downside risks to disposable income and competitive pressures expected.