TÜRKIYE: Anadolu Sigorta expects a positive net result in 2023, while Türkiye Sigorta maintains its leadership on the market in the first six months of 2023

16 August 2023 — Marina MAGNAVAL
Anadolu Sigorta, Turkiye's second biggest non-life insurer, is expected to report a positive net result in 2023 with underwriting continuing to make heavy losses, reports Middle East Insurance Review citing Fitch Ratings.

In the first half of 2023 Anadolu Sigorta's earnings have been resilient with a reported net income of TRY 2,910 million (USD 108 million/ vs TRY 376 million in 1H2022), which as before was supported by the investment result as the underwriting performance remained loss-making.

It is noted that the company’s profitability is weak and under pressure from the very challenging operating environment. The combined ratio slightly improved to 121% in 1H2023 from 128% a year ago despite the poor MTPL results, because other lines’ performance improved due to higher tariffs implemented in 2022.

Fitch Ratings affirmed Anadolu Sigorta's Insurer Financial Strength (IFS) Rating at B+ with a negative outlook and National IFS Rating at AA+ with a stable outlook. The affirmation reflects the insurer’s “most favorable business profile in Turkiye relative to other insurers”, high asset risk, as well as adequate but pressured capitalization and profitability. The negative outlook on the IFS Rating reflects that of the Turkish sovereign rating, which affects the operating environment where Anadolu Sigorta operates and the credit quality of its investment portfolio.

Middle East Insurance Review also reports that the biggest insurer Türkiye Sigorta more than doubles GWP to over USD 900 million in 1H2023 and maintained its leadership with TRY 24.4 billion (USD 905 million) in the first six months of 2023, which makes a 13.1% market share. The growth in premium income was 117% compared to 1H2022.

The company’s net profit for 1H2023 amounted to TRY 2.90 billion, which is three times higher than reported for FY2022. The insurer increased its asset size by 63% to TRY 44.98 billion as of 30 June 2023.

The source mentioned Türkiye Sigorta’s top management change - Taha Cakmak, the former vice-president of the Central Bank, has been appointed as the company’s CEO, replacing Atilla Benli.