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TURKISH INSURANCE INDUSTRY AND GUNES SIGORTA

TURKISH INSURANCE INDUSTRY AND GUNES SIGORTA. 1. TURKISH INSURANCE INDUSTRY. TURKISH ECONOMY IN 2010. National Income: G D P : 1.080 Billion TL = 717 Billion USD G D P per capita : 9 728 USD Inflation: CPI (consumer price index): 6.40 % PPI (producer price index): 8.87 %

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TURKISH INSURANCE INDUSTRY AND GUNES SIGORTA

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  1. TURKISH INSURANCE INDUSTRY AND GUNES SIGORTA October 2010 1

  2. TURKISH INSURANCE INDUSTRY TURKISH ECONOMY IN 2010 • National Income: • GDP: 1.080 Billion TL = 717 Billion USD • GDP per capita: 9 728 USD • Inflation: • CPI (consumer price index):6.40 % • PPI (producer price index):8.87 % • Unemployment:11.4 % • Population:73,7 million October 2010 2 June 2011

  3. TURKISH INSURANCE INDUSTRY MARKET INCOME 14.130.276.182 TL, an increase of 15 % compared to 2009 Premium Income • 11.528.123.146 TL which represents 81,58 % of the total premium income and a growth of 14,5 % compared to 2009. NON LIFE LIFE • 2.602.153.036 TL which is 18,42 % of the total premium income and a growth of 17,53 % compared 2009. October 2010 3 June 2011

  4. TURKISH INSURANCE INDUSTRY PREMIUM PRODUCTION (2006-2010) Source: Association of Insurance and Reinsurance companies of Turkey October 2010 4 June 2011

  5. TURKISH INSURANCE INDUSTRY PREMIUM INCOME SPLIT 2010 The below graphs shows market share of the branches for 2010. The accident branch, which is mainly consist of motor own damage premium ,is stil the largest one. Source: Association of Insurance and Reinsurance companies of Turkey October 2010 5 June 2011

  6. TURKISH INSURANCE INDUSTRY PREMIUM PRODUCTION IN% OF GBT TOTAL PREMIUM PRODUCTION IN% OF GBT NON-LIFE PREMIUM PRODUCTION IN% OF GBT Source: Association of Insurance and Reinsurance companies of Turkey October 2010 6 June 2011

  7. TURKISH INSURANCE INDUSTRY TOTAL PREMIUM PRODUCTION PER CAPITA (USD) Source: Association of Insurance and Reinsurance companies of Turkey October 2010 7 June 2011

  8. TURKISH INSURANCE INDUSTRY LIFE & NON LIFE PREMIUM PRODUCTION (TL) 2006-2010 Source: Association of Insurance and Reinsurance companies of Turkey October 2010 8 June 2011

  9. TURKISH INSURANCE INDUSTRY TECHNICAL RESULTS Although overall loss ratio decreased to 67.03% in 2010 from 75.31% from 2009, total non life companies produced a minor technical loss in 2010, while it was 1.04% technical profit in 2009. The main reason of this worsening on technical results comes from MTPL branch, its technical loss reached to 17.22% in 2010 while it was 5.27% in 2009. While loss ratio in Accident and health branches are improving, general liability branch produce a technical loss in 2010. Fire loss ratio improved to 31.46% in 2010 from 63.11 in 2009, which this branch had important flood losses in September 2009. On the other hand overall, new reserving had also high contribution to the worsening of the technical results in 2010. Source: Association of Insurance and Reinsurance companies of Turkey October 2010 9 June 2011

  10. TURKISH INSURANCE INDUSTRY TOP TEN INSURANCE COMPANIES Comparison of Market Shares Source: Association of Insurance and Reinsurance companies of Turkey October 2010 10 June 2011

  11. TURKISH INSURANCE INDUSTRY FINANCIAL RESULTS Non-life companies total return on equity is decreasing as from 2008 and in 2010. This decline is coming fram mainly reduced investment incomes and poor technical results. Profitability of Non-Life and Life Companies over 5 Years (million TL) Source: Association of Insurance and Reinsurance companies of Turkey October 2010 11 June 2011

  12. TURKISH INSURANCE INDUSTRY CHANGE IN MARKET SHARES Source: Association of Insurance and Reinsurance companies of Turkey October 2010 12 June 2011

  13. TURKISH INSURANCE INDUSTRY PREMIUM PRODUCTION PER DISTRIBUTION CHANNELS(%) October 2010 13 June 2011

  14. TURKISH INSURANCE INDUSTRY MARKET COMPOSITION As of March 2011, the Association has 64 members. Out of these 64 companies, 62 are insurance (10 life, 14 life and pension and 38non-life companies )and remaining 2 are reinsurance companies. Market Composition Source: Association of Insurance and Reinsurance companies of Turkey October 2010 14 June 2011

  15. TURKISH INSURANCE INDUSTRY PERFORMANCE OF THE TURKISH REINSURANCE MARKET IN 2010 • The non-profitable motor lines lead most of the insurance companies towards more profitable non-motor lines which in resulted in cheaper pricing to get new market share. • Despite a growth higher than the inflation rate, the sector concluded a consolidated loss for all lines of business combined, on non-life. The non-life industry grew in average app 13,6%. • As for the number of policies, the figure reached 40,1 million in 2010 which is an approximately increase of 19% when compared to 2009. October 2010 15 June 2011

  16. TURKISH INSURANCE INDUSTRY PERFORMANCE OF THE TURKISH REINSURANCE MARKET IN 2010 • The free tariff application for earthquake for sum insureds above TL 100 million is perceived well by the clients but not very much so by the market. Also, the advisory tariff for terrorism business is no longer applicable. Even though it may stay as a prerequisite for some treaty acceptances, most of the business in the direct market runs without the assumed rates. Property (inc. Engineering) The direct market for general casualty business i.e. general third party liability, employers liability etc. is still under heavy competition. Compulsory coverages like medmal and onshore pollution liability finds limited cpacity and interest in international markets. Casualty The premium growth in the marine sector in 2010 was 15.56% despite the fact that marine insurance rates fell heavily and the softening trend is expected to continue in 2011 as well. There is enough capacity provided through the local market. Marine October 2010 16 June 2011

  17. TURKISH INSURANCE INDUSTRY HIGHLIGHTS • Solvency II • In Turkey’s EU harmonization process, the Turkish insurance sector has been conducting studies on the implementation of Solvency II. A sample of ten insurance companies were determined to conduct Quantitative Impact Study 4 (QIS 4), which had previously been conducted by the European Commission in EU countries. QIS 5 was also started to be applied from December 2010. • Regulation on TechnicalReserves • There have also been major amendments to the “Regulation on Technical Reserves of Insurance, Reinsurance and Pension Companies”. In this context, a more developed and sophisticated actuarial chain ladder method for the calculation of IBNR reserves has been introduced. October 2010 17 June 2011

  18. TURKISH INSURANCE INDUSTRY HIGHLIGHTS • Medical Malpractice • Medical malpractice insurance became compulsory in Turkey in July 2010. With the introduction of “Compulsory Liability Insurance on Medical Malpractice”, doctors and dentists are required to be covered by professional liability insurance. Doctors working at public or private institutions will pay half their insurance premiums and their institutions will pay the remainder. Doctors working at their own private offices will pay the entire premium. • Coastal Facilities Sea Pollution Compulsory Liability Insurance • Another compulsory insurance that was introduced in 2010 with the publication of tariffs and procedures is the “Coastal Facilities Sea Pollution Compulsory Liability Insurance. In this context, all coastal facilities (including refineries, gas terminals, power houses, industrial production facilities, shipyards, etc.) are obliged to be covered by insurance against sea pollution. October 2010 18 June 2011

  19. TURKISH INSURANCE INDUSTRY HIGHLIGHTS • Recent MTPL limits are stated as 20.000/40.000 TL for material damage and for 200.000 TL for bodily injury from 01.01.2011 and those limits are still considered to be low and do not provide enough coverage for insured. • Maximum limits for TCIP are increased from 140.000 TL to 150.000 TL as of 01.01.2011 • According to the new law, hospital benefits after traffic accidents will be will be handled and paid by Ministry of Health. Certain percentage of the premium in order to settle the bodily injury claims, which is not yet fixed, will be transfered to Ministry of Health. October 2010 19 June 2011

  20. GUNES SİGORTA IN FIGURES October 2010 20 June 2011

  21. GUNES SIGORTA – PROFILE Corporate name : Güneş Sigorta A.Ş. Date of Foundation : 17.09.1957 AuthorizedCapital : 300.000.000 TL PaidCapital: 150.000.000 TL GUNES SIGORTA IN FIGURES October 2010 21 June 2011

  22. KEY FIGURES GUNES SIGORTA IN FIGURES October 2010 22 June 2011

  23. KEY FIGURES GUNES SIGORTA IN FIGURES Premium Production 2009-2010 October 2010 23 June 2011

  24. GUNES SIGORTA IN FIGURES KEY FIGURES October 2010 24 June 2011

  25. GUNES SIGORTA IN FIGURES OUR AGENCY NETWORK October 2010 25 June 2011

  26. GUNES SIGORTA IN FIGURES OUR AGENCY NETWORK Development of Bankassurance Development of Exclusive Agency Network October 2010 26 June 2011

  27. GUNES SIGORTA IN FIGURES PREMIUM PRODUCTION October 2010 27 June 2011

  28. GUNES SIGORTA IN FIGURES FINANCIAL INDICATORS October 2010 28 June 2011

  29. GUNES SIGORTA IN FIGURES MARKET SHARE DEVELOPMENT Comparison of Top Ten Companies October 2010 29 June 2011

  30. GUNES SIGORTA IN FIGURES MARKET SHARE DEVELOPMENT Comparison of Top Ten Companies October 2010 30 June 2011

  31. GUNES SIGORTA IN FIGURES MARKET SHARE DEVELOPMENT OF TECHNICAL BRANCHES October 2010 31 June 2011

  32. GUNES SIGORTA IN FIGURES OUR REINSURANCE PANEL Our Treaty Reinsurers European Market Far East Market Middle East Market Facultative Placements Fire Local Engineering Local & Middle East Markets LiabilityLondon Market Marine Local October 2010 32 June 2011

  33. GUNES SIGORTA IN FIGURES STRATEGIC FOCUS AREAS October 2010 33 June 2011

  34. GUNES SIGORTA IN FIGURES TURKISH MARKET REQUIREMENTS Back to back cover As per original policy terms, warranties, clauses and conditions Follow the original settlements/fortune in every respect Subject to Turkish Law, Practice and Jurisdiction October 2010 34 June 2011

  35. GÜNEŞ SİGORTA A.Ş. Güneş Plaza, Büyükdere Cad. No:110 34394 Esentepe-Şişli / İSTANBUL Tel: +90 212 444 19 57 Fax: +90 212 355 64 64 www.gunessigorta.com.tr GUNES SIGORTA IN FIGURES CONTACT INFORMATION October 2010 35 June 2011

  36. Thank you for your attention October 2010 36

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