Wherever you touch life... Annual Report 2016 General Information Anadolu Anonim Türk Sigorta Şirketi Mediterranean Regional Branch Black Sea Regional Branch 2016 Annual Report Konyaaltı Cad. No: 78 Karşıyaka Mah. 4 Nolu Sok. No: 479 Muratpaşa 07050 Antalya Ortahisar 61040 Trabzon Corporate Title Tel: +90 850 744 0 744 Tel: +90 850 744 0 744 Anadolu Anonim Türk Sigorta Şirketi Fax: +90 850 744 0 752 Fax: +90 850 744 0 751 E-mail: [email protected] E-mail: [email protected] Website www.anadolusigorta.com.tr Western Anatolia Regional Branch Marmara Regional Branch Atatürk Cad. No: 92 Odunluk Mah. Akademi Cad. Anadolu Sigorta Trade Registration No Anadolu Sigorta Binası 2 Zeno İş Merkezi A Blok No: 10/5 4593/557 Pasaport Konak 35210 İzmir Nilüfer 16110 Bursa Tel: +90 850 744 0 744 Tel: +90 850 744 0 744 Directory Fax: +90 850 744 0 747 Fax: +90 850 744 0 748 E-mail: [email protected] E-mail: [email protected] Head Office Rüzgarlıbahçe Mah. Kavak Sok. No: 31 Middle Black Sea Regional Branch Turkish Republic of Northern Cyprus Branch Kavacık 34805 İstanbul Kılıçdede Mah. Ülkem Sok. No: 8-A/7 Memduh Asaf Sok. 8 Tel: +90 850 744 0 744 İlkadım 55060 Samsun Köşklüçiftlik Lefkoşa / TRNC Fax: +90 850 744 0 745 Tel: +90 850 744 0 744 Tel: +90 92 227 95 95 E-mail: [email protected] Fax: +90 850 744 0 750 Fax: +90 392 227 95 96 E-mail: [email protected] E-mail: [email protected] İstanbul Regional Branch Beytem Plaza Büyükdere Cad. 20/B Southern Anatolia Regional Branch Gaziantep Sales Office Şişli 34394 İstanbul Reşatbey Mah. 62029. Sok. No: 16/A İncilipınar Mah. Gazi Muhtar Paşa Bulvarı Tel: +90 850 744 0 744 Seyhan 01120 Adana 36017 Sok. Kepkepzade Park iş Merkezi Fax: +90 850 744 0 753 Tel: +90 850 744 0 744 C Blok No:6/10 E-mail: [email protected] Fax: +90 850 744 0 746 Şehitkamil Gaziantep E-mail: [email protected] Fax: +90 850 744 0 755 Kadıköy Regional Branch E-mail: [email protected] K2 Plaza Sarıkanarya Sok. No: 14 Central Anatolia Regional Branch Kozyatağı 34742 İstanbul Cinnah Cad. Farabi Sok. No: 43 Tel: +90 850 744 0 744 Kavaklıdere 06690 Ankara Fax: +90 850 744 0 754 Tel: +90 850 744 0 744 E-mail: [email protected] Fax: +90 850 744 0 749 E-mail: [email protected] Previous years’ annual reports of Anadolu Sigorta Contents 1 General Information 29 Information on Associates 67 Other Matters and Financial Statements 3 Corporate Profile 29 Repurchased Own Shares by the Company 67 Independent Auditor’s Report Related to 3 Our Vision, Our Mission, 29 Disclosures Concerning Special Audit and Annual Report Our Corporate Values Public Audit 68 An Assessment of the Board Directors by the 4 Milestones from the History of 29 Lawsuits Filed Against the Company and Corporate Governance Committee Anadolu Sigorta Potential Results 70 Disclosure Policy 6 Message from the Chairman 29 Disclosure of Administrative or Judicial 72 Corporate Governance Principles 10 Message from the CEO Sanctions Against the Company and/or Compliance Report 14 The Organization, Capital and Shareholder Board of Directors Members 81 Committees Operating Within Anadolu Structure of the Company 29 Assessment of Prior Period Targets and Sigorta and an Assessment by the Board of 14 Organization Chart General Assembly Decisions Directors 15 Capital and Shareholder Structure 29 Expenses Incurred in Relation to Donations 84 An Assessment of the Operation of the 15 Disclosures on Preferred Shares and Grants and Social Responsibility Independent Audit Firm in 2016 Activity 16 Governing Body, Executives and the Projects Period via the Audit Committee Number of Employees 31 Commitment to Social Responsibility 85 Human Resources Practices at Anadolu 16 Board of Directors 33 The Company’s Transactions with the Risk Sigorta 19 Declarations of Independence by Group 86 Agenda of the Annual General Assembly Independent Members of the Board of 34 Financial Status Meeting Directors 34 Summary Report by the Board of Directors 87 Dividend Distribution Proposal 20 Executive Committee 36 Financial Information and Indicators 88 2016 Profit Distribution Table 22 Heads of Units Under the Internal Systems 39 2016 Economic Overview 89 2016 Annual Report Compliance Statement 22 Average Number of Employees by 44 Overview of the World and Turkish 90 Detailed Income Statement Categories During the Reporting Period Insurance Industries and Future Outlook 93 31 December 2016 Unconsolidated Financial 23 Financial Affairs and Actuarial Unit 48 Developments and Changes in Legislation Statements Together with Independent Managers 52 An Assessment of Anadolu Sigorta in 2016 Auditors’ Report Thereon 23 Financial Rights Provided to the 62 Assessment of the Company Capital and 174 Information on Consolidated Subsidiaries Members of the Governing Body and Comments 175 31 December 2016 Consolidated Financial Executives 63 Profit Distribution Policy Statements Together with Independent 25 Research and Development Activities of 64 Risks and an Assessment by the Auditors’ Report Thereon the Company Governing Body 254 An Assessment of Financial Standing, 25 Research and Development Pertaining to 64 Risk Management Policies Adhered to by Profitability and Solvency New Services and Business Activities Types of Risks 255 Information on Financial Structure 26 Company Activities and Major 66 Activities of the Committee of Early 256 Summary Financial Information for the Last Developments in Activities Determination of Risk 5 Years Including the Reporting Period 26 2016-2017 Primary Goals, Policies 256 Information for Investors 26 Information on the Company’s Investments 27 Internal Control System and Internal Audit Activities 27 An Assessment of 2016 by the Board of Inspectors 28 Internal Control System and an Assessment by the Governing Body Anadolu Sigorta Annual Report 2016 1 Our customer focus... With solutions and services catering to diverse needs and delivering strong value propositions, we stand by our policyholders at all times. 2 Anadolu Sigorta Annual Report 2016 General Information Corporate Profile, Our Vision, Our Mission, Our Corporate Values Corporate Profile, Our Vision, Our Mission, Our Corporate Values Engaged in all non-life branches, i.e. fire, marine, accident, engineering, agriculture, legal protection, personal accident, illness/health and credit, Anadolu Sigorta will keep contributing to the advancement of the insurance business in Turkey, guided by its mission and vision. Corporate Profile Our Vision Our Corporate In 2016, Anadolu Sigorta expanded its total • To make Anadolu Sigorta the insurance Values premium production by 24.2% year-on- brand preferred by everyone who needs year to TL 4,484 million and controlled a insurance. A Company Entrenched In 12.7% share of the overall market among • To achieve a strength that makes it History non life companies. a reference point in the worldwide insurance industry as well. • It was founded in accordance with the Anadolu Sigorta pursues its operations instructions given by Mustafa Kemal via nine regional branches across the Atatürk. nation and one branch in the Turkish • It is Turkey’s first national insurance Republic of Northern Cyprus. The number Our Mission company. of employees on the company’s payroll • It has a powerful corporate structure • In keeping with the deeply-rooted, averaged 1,163 in 2016. built on its knowledge of insurance pioneering, honest, and solid corporate accumulated through the years. Anadolu Sigorta registered its highest values of Anadolu Sigorta to: premium production in the motor vehicle • Lead the sector, Pioneership • Help create a broad public awareness of liability with TL 1,581 million, followed • Pioneer in creating product; by the motor vehicles branch with TL 899 insurance in Turkey, • Pioneer in service; million in 2016. Trailing these two • Implement a customer-focused approach • Pioneer in technology; branches, in order, were fire and natural to service, • With its self-renewing ability preserves disasters with TL 756 million, illness/health • Increase our financial strength to its pioneering position; with TL 406 million, general losses with international standards, • It plays a pioneering role in social TL 319 million and general liability with • Enhance the value of our company. responsibility. TL 141 million. Integrity Turkey’s first national insurance company • It has ethical merits; and the pioneer in the sector, Anadolu • It fulfills its promises definitely; Sigorta will keep contributing to the • It inheres in transparency as principle; advancement of the insurance business in • It never abandons human values. Turkey in the light of its mission and vision, and further build on its solid position in the Powerful Structure industry on the back of its powerful digital • It has a stable financial power; insurance initiative. • It has an extended and efficient service network; • It has a sophisticated and high qualified human source; • It gains power from the synergy created by İşbank. Anadolu Sigorta Annual Report 2016 3 General Information Milestones from the History of Anadolu Sigorta Milestones from the History of Anadolu Sigorta Founded in 1925 as Turkey’s first national insurance company, Anadolu Sigorta has been pursuing operations, aware of its role as the pioneer of the Turkish insurance industry for 91 years. 1925 1986 1997 Anadolu Sigorta was founded on April 1st Representing a new branch in the Turkish Aiming to make the most of the at the initiative of Atatürk and under the insurance business, “Electronic Equipment possibilities offered by IT, a “Recon Project” leadership of İşbank, Turkey’s first national Insurance” was first started by Anadolu was launched. Services were made more bank. Sigorta. efficient and productive with the inclusion of all services and agencies in the data processing network with online and 1961 1987 real‑time systems. The first data processing system was set up. Activities commenced in the agricultural insurance branch.