ISTANBUL, May 29, 2014 /PRNewswire/ --Leading Turkish Insurer Aksigorta Disclosed its 1Q14 Results:
One of the leading firms of the Turkish insurance sector, equally controlled by one of Turkey's foremost conglomerates, Sabancı, and Belgian insurance giant Ageas, Aksigorta generated TL 476 million in premiums in 1Q14, while its technical profits increased by 39% to TL 22.8 million and net profits by 78% to TL 17.9 million. Based on the results of the first quarter, Aksigorta continued to be one of the most profitable companies in the sector.
In the first quarter of the year, Aksigorta boosted its premium generation by 16% year-on-year to TL 476 million, continuing its profitability-oriented portfolio transformation. The company grew by 28% in the Fire branch and by 35% in the General Losses branch, which also includes engineering products, increasing the share of non-motor insurance branches in the portfolio by 5 pp to 52%.
Thanks to the positive impact of the high growth rates in the non-motor branches, technical profitability increased by 39% to TL 22.8 million. Sustained improvement in technical profitability has also helped push capital profitability to 34%.
TL 61 Million Dividend Paid in Cash
Aksigorta had concluded 2013 with 16 percent growth, 3 percent combined ratio improvement and 229% net profitability growth, posting 21% of the overall profits achieved in the sector and paid TL 61 million in cash dividends to its investors. In 2013, Aksigorta shares increased 51% more than the BIST-100 Index, bringing in 7% dividend yield.
With the 1Q14 results, Aksigorta continued to earn for its investors in 2014 as well, and increased its capital adequacy ratio by 23 pp compared to the same period of the previous year thanks to its continuously increased technical profit margin at a time when capital adequacy has become more important than ever in the sector.
Noting that Aksigorta maintained its profitable and sustainable growth in line with its long-term plans, Aksigorta General Manager Uğur Gülen said:
"In the first quarter of 2014, we increased our premium generation while boosting the share of profitable branches in our portfolio. We achieved a more profitable balance in our product portfolio, bringing the share of non-motor branches, which have a lower penetration rate and higher growth potential and profitability, from 47% to 52%."