2020 Annual Report Contents Presentation 61 Statement of Compliance with 2 Key Indicators Corporate Governance Principles 6 30 Years of Anadolu Hayat Emeklilik 62 Corporate Governance Compliance The Author of “Firsts” in Its Industry… Report 10 Message from the Chairman 70 Corporate Governance Information 12 Message from the CEO Form 16 An Overview of the World and Turkish 78 Additional Information on Corporate Economies in 2020 and 2021 Outlook Governance 20 Anadolu Hayat Emeklilik by Numbers 84 Sustainability Principles Compliance 23 Strategic Goals of Anadolu Hayat Framework Emeklilik Information on General 2020 Activities Assembly 25 An Overview of Anadolu Hayat 88 Summary Report of the Board of Emeklilik’s Position in the Industry and Directors for the General Assembly of Its Activities in 2020 Shareholders 32 Sustainability 91 Ordinary General Assembly Agenda 34 Research and Development 92 2019 Profit Distribution Table 93 2020 Profit Distribution Proposal Table Corporate Governance 36 Organization Chart Financial Position 38 Board of Directors 95 Information on Financial Structure 42 Declarations of Independence by 98 Assessment of Financial Standing, Independent Members of the Board of Profitability and Claims Payment Ability Directors 99 5-Year Summary Financial Information 43 Outside Positions Held by the Board of Including the Reporting Period Directors and Executives 44 Senior Management Risk Management 46 İşbank 102 Active Committees and an Assessment 47 Changes in the Legislation during the by the Board of Directors Fiscal Year 105 Risk Management Policies and an 48 Other Material Disclosures Concerning Assessment by the Board of Directors the Reporting Period 49 Transactions Executed with the Financial Reports and Other Risk Group in which the Company is Matters Included 109 31 December 2020 Unconsolidated 51 An Assessment of Independent Audit, Financial Statements Together with Internal Control System and Internal Independent Auditors’ Report Thereon Audit Activities by the Board of 186 Information on Consolidated Associate Directors 187 31 December 2020 Consolidated 53 Independent Auditor’s Report on Financial Statements Together with the Annual Report of the Board of Independent Auditors’ Report Thereon Directors 267 Information for Investors 55 Policies About Corporate Governance 268 Directory Cover photo: Elif Bora - The Tea Garden Shots From Life As Seen By Women ‘20 Anadolu Hayat Emeklilik remains strictly adhered to its mission of nurturing in people an awareness of the need to safeguard their future, offering financial solutions that respond to needs of individuals and organizations, and contributing to the development of the national economy by creating long-term stable funds. Aslı Ayyürü - The Lovers Shots From Life As Seen By Women ‘20 Anadolu Hayat Emeklilik 2020 Annual Report 1 Key Indicators Çiğdem Ayyıldız - Foggy Valley Shots From Life As Seen By Women ‘20 Financial Indicators Total Assets: Equity: Gross Profit: TL 36.1 billion TL 1.6 billion TL 647.7 million Market Capitalization: Sector’s Leader Amongst Privately- Sector’s Leader in Life Insurance Owned Companies in the Aggregate Funds TL 3.7 billion of Life and Pension Funds TL 3.1 billion (2) TL 33.7 billion (1) (2) Sectoral Market Shares Private Pension (1) Participants: Total Pension Assets Under Number of Pensioners: Management: 14.6% 25.5% 18.0% Life Insurance (2) Mathematical Provisions: Written Premiums: 22.8% 11.8% (1) Pension Monitoring Center (PMC) data on 31 December 2020 (including Auto Enrolment) (2) Insurance Information and Monitoring Center data on 31 December 2020 2 Anadolu Hayat Emeklilik 2020 Annual Report Münevver Ulusoy - The Fishermen Shots From Life As Seen By Women ‘20 Human Resources Headquarters & Districts: Direct Sales Force: Total: A member of the UN 557 494 1,051 Women’s Empowerment Principles (WEPs) Platform, Anadolu Hayat Emeklilik supports the empowerment of women in business Organization and social life. • İstanbul Headquarters • Customer Operations Center • 12 District Sales Offices • TRNC Branch Office Anadolu Hayat Emeklilik 2020 Annual Report 3 Presentation Derya Balkan - Metro The Company Creating the Largest Shots From Life As Seen By Women ‘20 Amount of Funds amongst Privately-Owned Companies Anadolu Hayat Emeklilik retains its position as “the company creating the largest amount of funds amongst privately-owned companies in the aggregate of life insurance and private pension branches, and plays a leading role in growing the sector. 4 Anadolu Hayat Emeklilik 2020 Annual Report Anadolu Hayat Emeklilik at a Glance Our Vision To be the leading company in Turkey in all aspects of financial planning that are of concern to the future of Turkey and the Turkish people. Our Mission To develop and to nurture in people an awareness of the need to safeguard their own futures and the futures of their loved ones, to offer financial solutions that eliminate people’s doubts about the future and enhance the quality of their lives and to contribute to the development of the national economy by creating long-term financial resources. Anadolu Hayat Emeklilik started Northern Cyprus besides its head Our Corporate Strategy operations in 1990 as Turkey’s first office in İstanbul, Anadolu Hayat life insurance company. Emeklilik commands a widespread service organization with its strong • Contribute to the stable growth Having acquired private pension bancassurance network, direct sales of the industry by developing company status upon establishment force and more than 260 agencies. and maintaining a diverse range of the private pension system in of products capable of satisfying Turkey in 2003, the Company began Beyond being the company that customers’ needs and demands in offering services under the company steers the sector, Anadolu Hayat terms of life insurance and private name Anadolu Hayat Emeklilik A.Ş. Emeklilik preserves its identity as pensions. the “company creating the largest Anadolu Hayat Emeklilik, which amount of funds amongst privately- • Increase our market share by addresses a broad audience of owned companies in the aggregate combining our success in offering policyholders and participants of life insurance and private pension”, innovative products and creating with its value-added product and and undertakes a leading role in value through an extensive service service mix, assures a high level of growing the sector. network and digitalization. customer satisfaction on the back • Provide our customers with of its extensive service network A subsidiary of Türkiye İş Bankası A.Ş. financial security and enable them and technological infrastructure. (İşbank), Anadolu Hayat Emeklilik to save up for their retirement by Providing service via District Sales is the first publicly traded pension taking advantage of the company’s Offices in İstanbul (3), Ankara (2), company in Turkey. İzmir, Adana, Bursa, Antalya, Trabzon, experience and effectiveness in The Company’s shares are quoted Kocaeli and Diyarbakır, a branch the industry to achieve superior on the Borsa İstanbul (BIST) Stars office in the Turkish Republic of performance in the management Market under the symbol ANHYT. of pension funds. • Maintain a sustainable level of profitability that is above the market average. Esin Deniz - Homeward Shots From Life As Seen By Women ‘20 Anadolu Hayat Emeklilik 2020 Annual Report 5 30 Years of Anadolu Hayat Emeklilik The Author of “Firsts” in Its Industry… 1990 2000 2003 Founded as Turkey’s first Became the first and only Transformed into life insurance company. life insurance company a private pension whose shares are publicly company. traded. 1990 2004 2008 Anadolu Hayat Emeklilik A.Ş. was Undersigning yet another first, the Anadolu Hayat Emeklilik became founded as Turkey’s first life insurance Company introduced the “Pension Plan the first pension company to hit the company taking over the life insurance for Housewives” that provides income 300,000 participants mark under the activities carried out by Anadolu Anonim for housewives without social security private pension system. Türk Sigorta Şirketi. and supplementary income in older The Company exceeded TL 1 billion in ages. 1991 total funds. According to legislation, the Company’s District offices were opened in Ankara, PPS+ packages were started to be sold health insurance portfolio and activities Bursa, Adana and İzmir. covering either one of “Life Insurance were transferred to Anadolu Anonim with Serious Illness Cover”, “Annual 1995 Türk Sigorta Şirketi. Life Insurance” or “Life for Everyone First payouts on maturity were made in Online payment of private pension Insurance” products in addition to the the “Insurance of the Future”. contributions and life insurance Private Pension Plan. premiums via the internet was enabled. 1999 A new variant was added to life 2005 insurance policies issued in connection Lefkoşa Branch was set up in the Turkish with loans, and Loan Support Insurance Bancassurance activities carried out Republic of Northern Cyprus to conduct incorporating unemployment cover was with the parent company İşbank were life insurance activities. Sirkeci and added to its product range. Kadıköy branches were opened. expanded by agency agreements with Türk Ekonomi Bankası A.Ş. (TEB) and The competition “Young Ideas by 2000 HSBC Bank A.Ş. (HSBC). Owner” was launched, thereby enabling Anadolu Hayat Emeklilik A.Ş. became the 2006 university students’ idea conception first and only life insurance company related to the industry. whose shares are publicly