Investor Presentation

The Major Player of the Market j y

Investor Meeting, 2011

MeclisMeclis-i Mebusan Cad. 67 34427 Findikli/Istanbul/TURKEY Tel : (+90212) 393 43 00 Fax : (+90212) 243 08 61 www.aksigorta.com.tr

Agenda

The Scene

Performance

Strategic Plan

The Scene

Performance

Strategic Plan

Development in Turkish Economy

GNP (billion $)
735 618 736
1.5%
1997-2001 2002-2008 2009 2010

Real Growth in GDP

5.9%

8.9%

197

2001

2008

2009

2010

-4.7%

Per Capita ($)

3,020 , 2001

CPI
8,590 10,079
71.6% 12.5% 12 5% 6.4% 6 4% 2010

10,436

2008

2009

2010

1995-2001

2002-2009

Source: Turkstat, Treasury

The Scene

Performance

Strategic Plan

Non-life Insurance Sector and GDP Growth ( j ) y (inflation adjusted) in Turkey

20% 15% 10%

17.5% 12.7% 12 7% 13.1% 13 1% 8.9% 9.4% 8.4% 6.9% 6 9% 4.7% 8.9% 8.1% 0.7%
2008 2009 2010

5% 0% 2004 -5% -10%

2005

2006

2007

-1.8%

4 0% -4.7% -4.0%

GDP Growth

Non-Life ns. Growth

Source: Turkstat, Treasury

The Scene

Performance

Strategic Plan

Low Penetration Level in Turkey

Indicators show that the non-life insurance sector has huge growth potential in Turkey Turkey is 17th in GDP rankings, but 28th in non-life premium rankings YE09
4.5% 4 % Premiums as a % of GDP 3.6% 3.0% 3.1% 3 1% 2.5% 2.2% 1.9% 1.4% 1.5% 1.5% 1.4% 1.1% 1.0% 0.5%

World

North

Indust.

Europe

Emerging

Russia

Bulgaria

Poland

Hungary

Brazil

Romania

Turkey

Greece

Egypt

Source: Swiss Re (Sigma: 2/2010)

The Scene

Performance

Strategic Plan

Non-Life Insurance Growth Potential in Turkey

TL 12 billion premium production in 2010
CAGR 14%

Premium Production in Non-life

5,264

6,348

8,015

9,250

9,820

10,067 10 067

11,527

2004

2005

2006

2007

2008

2009

2010

(TL million)

Source: Association of the Insurance and Reinsurance Companies of Turkey and Aksigorta

The Scene

Performance

Strategic Plan

Insurance Companies in Turkey

57 insurance companies in the sector.

# of Insurance Companies
53 32 21 21 32 53 35 24 24 59 36 22 60 33 55 24 33 57

# of Foreign Companies
34 20 9 11 24 14 10 1618 20 16 36 22 15 37 16 38 22

2005

2006

2007

2008
NonLife

2009
Total

2010

2005

2006

2007
Life/Pension

2008
NonLife

2009

2010
Total

Life/Pension

Source: Association of the Insurance and Reinsurance Companies of Turkey

The Scene

Performance

Strategic Plan

Competition in Non Life Business

Market shares of the leading insurance companies in Turkey since 2004.
13.2% 12.7% 12 7% 12.0% 10.0% 8.7% 7.9% 7.7% 7.1% 8.1% 7.4% 7.0% 7 0% 7.3% 6.4% 11.8% 9.7% 8.3% 12.2% 9.3% 9 3% 8.6% 6.9% 6.8% 13.0% 13.2% 13.2% 12.3% Axa Anadolu Allianz Aksigorta Yap Kredi Gne

12.9%

12.6% 11.8% 9.2% 9 2% 8.5% 7.2% 6.4%

12.7% 12.4%

9.2% 9 2% 8.5% 7.2% 6.0% 6 0%

8.6% 7.7% 6.6% 6 6% 6.4%

2004

2005

2006

2007

2008

2009

2010

Source: Association of the Insurance and Reinsurance Companies of Turkey

The Scene

Performance

Strategic Plan

Further Expectations for Non Life Business

Structure
Financially more powerful and reliable insurance companies (e.g. Capital Adequacy, Increased Insurance Technical Provisions) More transparent insurance business (e.g. Insurance Contract Information, Insurance Arbitration) Motor business continues to be the locomotive of the sector Areas where further growth is expected: Liability (Product, Professional), Credit, Mortgage, Agriculture, Health Retail & SME businesses are also expected to grow p g Price competition in motor own damage and in TPL after free tariff Service quality and speed is a key distinguishing factor between competitors q y p y g g p Operational profitability is decreasing because of price competition The outlook for the reinsurance sector in Turkey for 2009 looks positive despite the difficulties being faced by major foreign reinsurers internationally h diffi l i b i f db j f i i i i ll M&A will continue After global crisis expected consolidation appears closer

Growth

Competition

Profitability

M&A

The Scene

Performance

Strategic Plan

Sabanc Group in Insurance & Pension Business

Partnership Structures (After Spin-off)

Non-Life (2010)
P i Premiums Market Share Market Rank Total Equity q y : : : : TL 886 million illi 7.7 % 4th Company TL 372 million

Life (2010)
P i Premiums Market Share Market Rank illi : TL 155 million : 6% : 5th Company : TL 2,542 million : 21 % : 2nd Company

Pension (2010) P i
AUM Market Share Market Rank

Source: Aksigorta

The Scene

Performance

Strategic Plan

Major Player in Non-Life Business

GWP is TL 886 million in 2010
CAGR 13%
Sector CAGR 14 %

Premium Production

794 669 516 417

829

851

886

( TL Million)

2004

2005

2006

2007

2008

2009

2010

Source: Aksigorta

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The Scene

Performance

Strategic Plan

Multi-Line Company

Multi-Channel Company

Wide Distribution Network Active in all non-life branches with variety of products Package policies with extensive and high coverage limits 10 Regional Offices and 2 Regional Representative Offices assist the Country-wide Distribution Channels Simple new products in profitable branches

Premium Distribution, 2010/12

Marine, 2.1% Engineering, 3.9% Agriculture, 1.3%

Premium Production % of Distribution Channels

Direct 10% Broker 9%

Health, 15.5%

Motor, 48.6%

Motor Own Damage : 34.8% TPL: 13.9%

Fire, 16.9%

Bank B k 13%

884 bank branches b h

1,511 agencies i

Agency 68%
(Akbank: 100% exclusive)
Other Accident, 11.5%

Source: Aksigorta

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The Scene

Performance

Strategic Plan

Profitability / Combined Ratio

**113% 100% 103%
100%

108% 107%

*101% 101% 100%

102%

107% 102%

98% 92%

Aksigorta Non-Life Sector

2005

2006

2007

2008

2009

2010

(*) Except additional TPL reserves : 95% (**) Except additional new reserves due to legislation : 100%

Source: Association of the Insurance and Reinsurance Companies of Turkey

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The Scene

Performance

Strategic Plan

2010 2012 Targets

In 2012, combined ratio 2% lower than sector average Being the sector leader in 2012 Customer satisfaction over the sector average Raising the employee satisfaction

Configuration of human resources management to create the organizational climate

More benefit by Akbank customer database

Establishing new distribution channels where easy and simple products can be sold

Creating actuarial and risk management and internal control systems

Improvement or elimination of operational processes which has no benefit to customer

Innovation for undiscovered and existing customers needs

Reorganization of marketing management function

Cooperation with big corporate names (e.g. Sabanc and Turkcell)

Focus on inorganic growth opportunities

Investment in distribution channels to increase their growth rates

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Appendix

Financial Overview

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Summary of The Balance Sheet

(TRY Million)

2009 YE* YE 293 211 358 30 44 2,345 3,280 71 488 475 13 5 47 2,669 2 669 306 3,280

2010 YE 276 228 375 30 36 88 1,033 61 527 511 15 16 58 372 306 1,033

2010 3M 2011 3M 407 213 231 30 43 89 1,012 30 527 511 15 16 43 397 306 1,012 268 255 422 30 35 108 1,119 59 629 613 16 9 58 364 306 1,119

Cash and Cash Equivalents Marketable Securities (Financial Assets and Investments with Risks on Policy Holders)* Receivables Arising from Operations Participations (Financial Assets) Fixed Assets Other Assets Total Assets Payables Arising From Operations Insurance Technical Provisions Short Term Long Term Tax Provisions Other Liabilities Total Shareholders' Equity Shareholders (Nominal) Capital Total Liabilities and Shareholders' Equity

*Due to spin-off

which was completed on January 14, 2010, Akbank and AvivaSa shares are classified under the Other Assets as Assets classified as held for distribution to owners.

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Summary of The Income Statement

(TRY Million)

2009 YE 851 548 542 -448 448 17 18 35 35

2010 YE 2010 3M 2011 3M 886 635 599 -449 449 22 -13 9 7 1 267 186 138 -108 108 -15 10 -5 1 -4 4 319 244 165 -129 129 -6 -2 -8 2 -6 6

Premiums Written Premiums Written (Net) Earned Premiums (Net) Total Claims (Net) Total Technical Profit Net Invesment Income Profit (Loss) Before Tax Tax Net Profit (Loss)

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Key Ratios
2009 YE Retention Ratio Claims Ratio (Net) Expense Ratio (Net) Commission Ratio (Net) Combined Ratio(Net) Net Income / GWP ROE 64% 83% 10% 13% 107% 4% 1% 2010 YE 72% 74.9% 11.0% 15.8% 102% 0% 0% 2010 3M 70% 78% 11% 18% 107% -1% 1% -4% 2011 3M 76% 78% 10% 15% 103% -2% 2% -7%

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The Scene

Performance

Strategic Plan

Foreign Companies and Latest Transactions F i C i dL t tT ti

Foreign companies are taking position in a high growth emerging market Foreign companies total market share is increasing
Foreign Company Axa Allianz ERGO Local Company Axa Sigorta (Axa-Oyak) Allianz Sigorta (Ko-Allianz) g g (svire) ) Ergo Sigorta ( Equity Share 100% 100% 100% 30% 100% 100% 80% 90% 84% 100% 100% 100% 100% 90% 100% 100% 100% 100% 98% 100% 96% 100% 93% 3.2% 68.0% Market Market M k t M k t Share Share (YE08) (YE09) 12.6% 9.2% 7.1% 7.2% 5.3% 2.3% 4.9% 3.5% 2.8% 2.6% 1.5% 1.9% 1.9% 0.8% 1.0% 0.2% 0.0% 0.0% 0.0% 5.4% 3.6% 2.5% 2.7% 1.7% 2.1% 1.7% 0.5% 0.8% 0.1% 0.0% 0.1% 0.8% 0.0% 0.0% 0.0% 3.0% 66.8% 5.4% 3.6% 2.2% 2.4% 1.9% 2.0% 1.5% 0.5% 0.7% 0.2% 0.0% 0.1% 1.1% 0.2% 0.2% 0.5% 2.8% 65.5% 12.7% 9.2% 6.7% 7.2% 5.9% Market M k t Share (YE10) 13.2% 8.6% 6.0% 6.4% 6.0% Trans. C T Company Ent. / Trans. Trans. Value Value Date % (Mio. ) (Mio. ) 1994 / 2M08 1988 / 4M08 7M08 1998 1991 / 2M06 6M08 6M07 3M07 6M07 1988 9M06 2M08 1976 9M06 1989 2006 2007 2007 2008 2008 2008 2009 11M10 90% 246 273 64% 35 55 100% 100% 17 n.a 17 n.a 35% 47% 75% 57% 100% 80% 80% 58% 240 248 213 202 184 365 285 61 690 527 285 355 184 455 355 105

Gne Groupama SA Baak Groupama (Baak) Gven Sigorta Eureko BV Mapfre SA TBIH FS Aviva HDI Int. Zurich Chartis (AIG) Liberty MG Generali Coface SA Atradius Cardif Dubai Ins. Group Ace European Harel Group Turkapital NKSJ Eureko Sigorta (Garanti) Mapfre Genel Ray Sigorta Aviva Sigorta HDI Sigorta (hlas) Zurich Sigorta (TEB) Chartis (AIG Sigorta) Liberty Sigorta (eker) Generali Sigorta Coface Sigorta Atradius Sigorta g Cardif Sigorta Dubai Group Sigorta Ace Europe Sigorta T.Nippon Neova Sigorta Sompo Japan - Fiba

Source: Association of the Insurance and Reinsurance Companies of Turkey

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The information and opinions contained in this document have been compiled or arrived at by Aksigorta A. from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. All opinions and estimates contained in this document constitute the Companys judgement as of the date of this document and are subject to change without notice. g The information contained in this document is published for the assistance of recipients , but is not to be relied upon as authoritative or taken in substitution for the exercise of judgement by any recipient. The Company does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or it contents. Thi d thi d t its t t This document i strictly confidential and may not b reproduced, di t ib t d or t is t i tl fid ti l d t be d d distributed published for any purpose.

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