Established in 1960 in İstanbul, Aksigorta is one of the leading companies in non-life insurance sector in Turkey with 13.4% market share at the end of 1Q02 compared with 8.3% at YE01. The Company is the largest Turkish non-life insurance company based on equity as of the end of 2001. At the end of 1995, Aksigorta stopped operating in the life business with the establishment of the life insurance company, Akhayat in which it has a 26% interest. Today, the Company still holds the life portfolio of its former customers. Currently, the Company's organization is composed of 1,486 agents, of which 884 are independent and 602 are Akbank branches.

According to the 2Q02 results, premium size reached TL 139,432 billion (USD 101 million) as of June 30, 2002, registering a 88% increase from 2Q01. The main drivers of increase are; customers' flight to quality and security, adding major corporate accounts such as Botaş and Petkim to customer portfolio and successful preservation of existing customers. Net operational profitability of the company is preserved at 4.7%. Aksigorta increased the equity to TL 142,137 billion (USD 91 million) showing a 56% increase compared to 2Q01.

• Balance Sheet

Marketable Securities

The securities reached to TL 94,840 billion (USD 60 million) with an increase 201% compared to 2Q01. The share of the securities in total assets is 34% as of 2Q02, as opposed to 15% in 2Q01. The main reason of the increase in marketable securities in 2Q02 is the transfer of the cash from banking deposits in 2Q01 to repos in 2Q02.

 

Receivables

The receivables reached to TL 70,152 billion (USD 45 million). The premium receivables from insureds to premium written ratio is 49%, showing a decrease compared to 54% in 2Q01. The increase in receivables is parallel to the increase in premiums received.

 

Participations

Participations increased by 54% and reached TL 74,901 billion (USD 48 million) on June 30, 2002, from TL 48,729 billion (USD 39 million) in 2Q01. Due to capital increase of Akbank after 2Q01 and capital increases in Akhayat and Temsa, participations increased by 54%.

 

Reserves

In parallel to the increase in premiums received reserves increased by 62%. Due to a change in accounting technic the taxes are included in 2Q02 free reserves figure, so free reserves increased by 612%.

 

Other Liabilities

Dividend receivables are included in 2Q01 figures, so there is a 81% decrease in 2Q02 compared with 2Q01.

 

Equity

Equity increased by 56% to TL 142,137 billion (USD 91 million) as of June 30, 2002 compared to TL 91,328 billion (USD 73 million) in 2Q01. In May 31,2002, paid in capital increased to TL 67,500 billion (USD 43 million) from TL 33,750 billion (USD 27 million) through cash and bonus shares.

 

BALANCE SHEET
Assets							Liabilities
(Billion TL)	2001Q2	2002Q2	%Chg				(Billion TL)	2001Q2	2002Q2	%Chg
Cash Values	52.585	9.621	-81,7				Accounts Payable	32.907	38.271	16,3
Marketable Securities	31.490	94.840	201,2				Reserves	50.520	81.988	62,3
Accounts Receivables	40.749	70.152	72,2				Technical Reserves	48.907	70.497	44,1
Rec. in the Adm. & Legal Coll. Process	471	1.109	135,5				Free Reserves	1.613	11.491	612,4
Participations	48.729	74.901	53,7				Other Liabilities	12.735	2.362	-81,5
Fixed Assets	12.675	18.306	44,4				Shareholders' Equity	91.328	142.137	55,6
Other Assets	28.512	10.847	-62,0				Paid in Capital	33.750	67.500	100,0
							Profit	27.721	15.018	-45,8
Total Assets	215.211	279.776	30,0				Total Liabilities	215.211	279.776	30,0

• Income Statement

Premium size reached TL 139,432 billion (USD 101 million) from TL 74,144 billion (USD 75 million) as of June 30, 2002, registering a 88% increase from 2Q01. The main drivers of increase are customers' flight to quality and security, adding major corporate accounts such as Botaş and Petkim to customer portfolio and successful preservation of existing customers.

 

Technical income increased by 69% and reached to TL 14,387 billion (USD 10 million) and technical income to total premium written ratio is 10.3% in 2Q02. Despite an unfavourable economic year, net operational profitability of the company preserved at 4.7%.

 

Net financial income decreased to TL 17,508 billion (USD 13 million) on June 30, 2002, from TL 35,130 billion (USD 36 million) in 2Q01. The main reason for the decrease in net financial income is the fact that Akbank did not distribute any dividends as of June 30, 2002 compared with TL 12,419 billion (USD 13 million) amount in 2001.

 

Due to a decrease in net financial income, net profit recorded as TL 15,018 billion (USD 11 million) shows a 46% drop compared to 2Q01.

• Sectoral Developments

The capital requirement for insurance and reinsurance companies is increased to TL 8 Trillion (USD 5 million) in July 23, 2002.

 

• Recent Developments

Aksigorta has completed the Bank-Assurance project with Akbank in July 1999. The aim of this project is to increase the share of Akbank branches in total premium production through increasing the policies for individuals, which is a more profitable line. Four new products in fire and accident insurance branches have been launched in addition to the existing ones which are easy-to-sell and easy-to-write. All of the products are currently being utilised in all Akbank branches, and all Akbank branches are connected real time on-line to Aksigorta's headquarters.

 

Aksigorta is also improving the existing conventional agency channel through bonus plans with predetermined objectives and by increasing the number of independent agents.

 

At the end of 2001, 50 new customer representatives were employed to give service to free agencies to improve customer focus.

 

Aksigorta has a strong balanced presence in all the main branches. The two major government accounts, Botaş and Petkim, were added to the customer potfolio.

 

The web site was, restructured to give better services for customers and agencies, put into effect at the end of June 2002.

 

• Outlook

The "call center" will be operational in October 2002 (currently only informative).

 

With its financial strength, name recognition, experienced management team and sophisticated underwriting policy, advanced and efficient operational technologies, Aksigorta has the necessary competitive advantages to be the leader in the Turkish non-life sector.