2020 Annual Report Being One

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2020 Annual Report Being One 2020 Annual Report being one 2020 Annual Report CONTENTS PRESENTATION MANAGEMENT AND CORPORATE GOVERNANCE FINANCIAL INFORMATION AND RISK MANAGEMENT PRACTICES 4 CORPORATE PROFILE 141 ORDINARY GENERAL ASSEMBLY MEETING 5 THE COMPANY’S VISION, MISSION AND VALUES 96 BOARD OF DIRECTORS AGENDA 6 CAPITAL AND SHAREHOLDING STRUCTURE 100 DECLARATIONS BY INDEPENDENT BOARD 142 SUMMARY BOARD OF DIRECTORS REPORT 7 OUR SUBSIDIARIES MEMBERS PRESENTED TO THE GENERAL ASSEMBLY 8 KEY FINANCIAL INDICATORS 102 SENIOR MANAGEMENT 143 DIVIDEND DISTRIBUTION POLICY 12 OUR STORY OF “BEING ONE” 108 INTERNAL AUDIT AND INTERNAL CONTROL 144 PROFIT DISTRIBUTION PROPOSAL FOR 2020 18 DEEP-SEATED HISTORY 109 ORGANIZATIONAL CHART 145 2020 PROFIT DISTRIBUTION TABLE 20 CORPORATE STRATEGY AND GOALS 110 STATEMENT OF COMPLIANCE WITH CORPORATE 146 ASSESSMENT OF FINANCIAL STANDING, 26 MESSAGE FROM THE CHAIRMAN AND GENERAL GOVERNANCE PRINCIPLES PROFITABILITY AND CLAIMS PAYMENT ABILITY MANAGER 111 CORPORATE GOVERNANCE PRINCIPLES 147 SUMMARY FINANCIAL STATEMENTS FOR THE COMPLIANCE REPORT LAST TWO YEARS 2020 AT A GLANCE 116 CORPORATE GOVERNANCE INFORMATION FORM 148 RISK MANAGEMENT POLICIES 122 SUSTAINABILITY APPROACH AND PRACTICES 150 UNCONSOLIDATED INDEPENDENT AUDITOR’S 32 MACROECONOMIC OUTLOOK 124 SUSTAINABILITY PRINCIPLES COMPLIANCE REPORT, FINANCIAL STATEMENTS AND 34 SECTOR OUTLOOK REPORT FOOTNOTES FOR THE ACCOUNTING PERIOD 42 THE COVID-19 PANDEMIC AND THE STANCE OF 129 BOARD OF DIRECTORS COMMITTEES AND THEIR JANUARY 1 - DECEMBER 31, 2020 TÜRKİYE SİGORTA ASSESSMENT BY THE BOARD OF DIRECTORS 264 CONSOLIDATED INDEPENDENT AUDITOR’S 131 CORPORATE GOVERNANCE COMMITTEE’S REPORT, FINANCIAL STATEMENTS AND 2020 ACTIVITIES ASSESSMENT OF THE BOARD OF DIRECTORS FOOTNOTES FOR THE ACCOUNTING PERIOD 132 DISCLOSURE POLICY JANUARY 1 - DECEMBER 31, 2020 46 2020 ACTIVITIES 136 OTHER LEGAL AND IMPORTANT INFORMATION 380 DIRECTORY 88 2020 ACTIVITIES OF INVESTOR RELATIONS 138 ANNUAL REPORT COMPLIANCE STATEMENT 92 2020 ACTIVITIES BY THE INTERNAL AUDIT 139 ANNUAL REPORT COMPLIANCE OPINION DEPARTMENT 93 2020 ACTIVITIES OF RISK MANAGEMENT AND INTERNAL CONTROL Presentation 2020 at a Glance 2020 Activities Management and Corporate Governance Practices Financial Information And Risk Management We have undersigned a major achievement with our unique story of “Being One”, and engendered two leading companies in the insurance and pension sectors. We have built our organization upon believing, being strong, producing, sharing and trusting. With our Company, we are heralding a new era for sectoral growth and global competition. Turkey’s values and hopes are now under our assurance… Türkiye Sigorta 2020 Annual Report 1 Presentation 2020 at a Glance 2020 Activities Management and Corporate Governance Practices Financial Information And Risk Management 2 Türkiye Sigorta 2020 Annual Report Presentation 2020 at a Glance 2020 Activities Management and Corporate Governance Practices Financial Information And Risk Management being one is believing… We believe that the success that will follow the challenging process of “Being One” that we have completed within the planned timeline as a result of intensive and committed efforts in the way that we set out with total belief will be all of ours to achieve. Türkiye Sigorta 2020 Annual Report 3 Presentation 2020 at a Glance 2020 Activities Management and Corporate Governance Practices Financial Information And Risk Management CORPORATE PROFILE Türkiye Sigorta, born out of the joining of forces Drawing its know-how and experience from its expert team, of public insurance companies, namely Ziraat deep-seated history and its strength from its Sigorta, Halk Sigorta and Güneş Sigorta, with name, Türkiye Sigorta maximally caters to the the aim of expanding the savings base of the expectations of the policyholders offering the robust technology Turkish economy and driving the development of most competitive insurance products with its Türkiye Sigorta maximally caters to the non-banking financial sector under the New expert team and robust technology. the expectations of the policyholders Economy Program of the Ministry of Treasury and Finance, began offering service in non-life Transposing the “after” in the insurance offering the most competitive insurance branches on 31 August 2020. experience with “before” with its agile, innovative insurance products with its expert and sensitive approach, Türkiye Sigorta aims to team and robust technology. The principal shareholder of Türkiye Sigorta is offer service with the understanding to produce TVF Finansal Yatırımlar Anonim Şirketi. solutions that exceed the expectations at every moment of life and to use its power for goodness, Headquartered in İstanbul, Türkiye Sigorta boasts and promises a safe future to its policyholders. an extensive and solid service network consisting of 10 agency regional offices, 10 bancassurance regional offices, nearly 3,000 agencies, more than 4,500 bank branches and 299 direct sales teams. Positioned as the leader of the insurance sector with a premium production of TL 8 billion 887 million and a market share of 13.04% as at 2020 year-end, Türkiye Sigorta services its customers with its 1,047 employees in Fire and Natural Disasters, Marine, Watercraft, Motor Vehicles, Motor Vehicles Liability, Accident, Aircraft, Aircraft Liability, General Losses, General Liability, Legal Protection, Credit, Health and Financial Losses branches in the non-life insurance business. 4 Türkiye Sigorta 2020 Annual Report Presentation 2020 at a Glance 2020 Activities Management and Corporate Governance Practices Financial Information And Risk Management THE COMPANY’S VISION, MISSION AND VALUES Vision Values Be recognized as a global • Confident: Pioneering, global technology company within a scale, redefining the insurance decade based on its understanding experience. of offering solutions catering to • Sensitive: Listening, the need for trust at every moment understanding, doing candidly, of life for everyone dreaming of a elaborating, placing our bright future, and using its power relationship with stakeholders at for kindness, while transposing the the heart of our business. “after” in the insurance experience with “before”. • Inquisitive: Discovering, learning, enthusiastic, understanding the past and building “beyond”. Mission • Virtuous: Being a good person, Whenever and wherever trust is values, responsibility, importance needed; the answer is Türkiye, and respect, doing the right thing, Insurance. being a role model. Türkiye Sigorta 2020 Annual Report 5 Presentation 2020 at a Glance 2020 Activities Management and Corporate Governance Practices Financial Information And Risk Management CAPITAL AND SHAREHOLDING STRUCTURE Shareholding Structure (%) The principal shareholder of Türkiye Sigorta is TVF Finansal Yatırımlar Anonim Şirketi, and its indirect 18.90% shareholder is Türkiye Varlık Fonu (Türkiye Wealth Fund). 81.10% TVF Finansal Yatırımlar Anonim Şirketi Other (Traded on Borsa Istanbul) Shareholder Share Share Amount (TL) TVF Finansal Yatırımlar Anonim Şirketi* 81.10% 942,015,416.92 Other (Traded on Borsa Istanbul)** 18.90% 219,507,946.08 Total 100.00% 1,161,523,363.00 *Türkiye Wealth Fund holds 100% of the shares in TVF Finansal Yatırımlar Anonim Şirketi. ** Türkiye Sigorta holds 0.43% share. Its shares traded on BIST Stars Market under Material changes in the capital structure are the ticker symbol TURSG, the Company’s market described under the information for investors and capitalization is TL 7,666,054,195.80 as at 31 shareholders section. December 2020. There are no privileged shares in the Company’s capital. 6 Türkiye Sigorta 2020 Annual Report Presentation 2020 at a Glance 2020 Activities Management and Corporate Governance Practices Financial Information And Risk Management OUR SUBSIDIARIES Subsidiary Türkiye Sigorta's Türkiye Sigorta's Capital Share Amount (TL) Share (TL) Türk P ve I Sigorta AŞ 12,500,000 50.00% 25,000,000 Vakıf Finansal Kiralama AŞ * 31,297,967 15.65% 200,000,000 Vakıf Factoring Hizmetleri AŞ 34,263,393 13.71% 250,000,000 Vakıf Menkul Kıymetler Yatırım Ort. AŞ * 3,300,000 11.00% 30,000,000 Vakıf Pazarlama San. ve Ticaret AŞ 2,951,806 9.76% 30,241,439 Türkiye Hayat ve Emeklilik AŞ 55,650,000 7.36% 755,752,390 Tarım Sigortaları Havuz İşlet. AŞ 684,773 4.54% 15,065,000 Vakıf İnşaat Restorasyon ve Ticaret AŞ 1,003,770 2.92% 34,330,281 Vakıf Enerji ve Madencilik AŞ 1,503,860 1.77% 85,000,223 Taksim Otelcilik AŞ 4,789,898 1.43% 334,256,687 Vakıf Gayrimenkul Yatırım Ort. AŞ * 4,004,528 0.87% 460,000,000 Vakıf Yatırım Menkul Değerler AŞ 250,000 0.25% 100,000,000 Ziraat Bank Moscow JSC 90,230 0.09% 100,255,556 Ziraat Katılım AŞ 1 0.00% 1,750,000,000 TOTAL 152,290,226 * Publicly-held company. The number of our subsidiaries increased owing As a result of the merger of public insurance to the merger. Since the pre-merger companies companies, Vakıf Emeklilik AŞ acquired the had subsidiaries in common, our Company’s stake company name of Türkiye Hayat ve Emeklilik AŞ, in the capitals of those subsidiaries also increased and our stakeholding therein went down from following the merger. Our share in the capital of 37.10% to 7.36% due to the change in the said Tarım Sigortaları Havuz İşletmesi AŞ (TARSİM - company’s capital. In addition, our stakeholding Agricultural Insurance Pool) increased from the in Vakıf Gayrimenkul Yatırım Ortaklığı AŞ pre-merger ratio of 4.17% to 4.54% after the decreased from 1.74% to 0.87% due to our non- merger, whereas our share in Türk P ve I Sigorta participation
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