2014 Annual Report Content 1 General Information 30 Information on Associates 67 Other Matters and Financial Statements 2 Corporate Profile 30 Repurchased Own Shares by the Company 67 Report on the Audit of Board of Directors’ 3 Our Vision, Our Mission, Our Corporate 30 Disclosures Concerning Special Audit and Annual Report Based on Standards Values Public Audit on Auditing which is a Component of 4 Message from the Chairman 30 Lawsuits Filed Against the Company and the Turkish Auditing Standards 6 Message from the CEO Potential Results Published by the Public Oversight 12 The Organization, Capital and Shareholder 30 Disclosure of Administrative or Judicial Accounting and Auditing Standards Structure of the Company Sanctions Against the Company and/or Authority (“POA”) 12 Organization Chart Board of Directors Members 70 An Assessment of the Board Directors by 13 Capital and Shareholder Structure 30 Assessment of Prior Period Targets and the Corporate Governance Committee 13 Disclosures on Preferred Shares General Assembly Decisions 72 Corporate Governance Principles 14 Governing Body, Executives and 30 Expenses Incurred in Relation to Compliance Report the Number of Employees Donations and Grants and 85 Committees Operating Within Anadolu 14 Board of Directors Social Responsibility Projects Sigorta and an Assessment by the Board 16 Declarations of Independence by 31 Commitment to Social Responsibility of Directors Independent Members of the Board of 33 The Company’s Transactions with the 89 An Assessment of the Operation of the Directors Risk Group Independent Audit Firm in 2014 Activity 18 Executive Committee 36 Financial Status Period via the Audit Committee 20 Heads of Units Under the Internal Systems 36 Summary Report by the Board of Directors 90 Human Resources Practices at Anadolu 20 Average Number of Employees by 38 Financial Information and Indicators Sigorta Categories During the Reporting Period 40 2014 Economic Overview 92 Agenda of the Annual General Assembly 21 Financial Affairs and Actuarial Unit 44 An Overview of the World Insurance Meeting Managers Industry 93 Dividend Distribution Proposal 21 Financial Rights Provided to the Members 47 Developments and Changes in Legislation 94 2014 Profit Distribution Table of the Governing Body and Executives 50 An Assessment of Anadolu Sigorta in 2014 95 2014 Annual Report Compliance 21 Financial Rights 58 Assessment of the Company Capital and Statement 21 Other Means Comments 96 Detailed Income Statement 24 Research and Development Activities of the 59 Profit Distribution Policy 98 31 December 2014 Unconsolidated Company 62 Risks and an Assessment by the Governing Financial Statements Together with 24 Research and Development Pertaining to Body Independent Auditors’ Report Thereon New Services and Business Activities 62 Risk Management Policies Adhered to by 179 31 December 2014 Consolidated 26 Company Activities and Major Developments Types of Risks Financial Statements Together with in Activities 65 Activities of the Committee of Early Independent Auditors’ Report Thereon 26 2014-2015 Primary Goals, Policies Determination of Risk 180 Information on Consolidated Subsidiaries 27 Information on the Company’s Investments Profitability and Solvency 28 Internal Control System and Internal 263 262 Information An Assessment on ofFinancial Financıal Structure Standing, Audit Activities 264 Summary Financial Information for the 28 An Assessment of 2014 by the Board of Last 5 Years Including the Reporting Inspectors Period 29 Internal Control System and an Assessment by the Governing Body General Information Anadolu Anonim Türk Sigorta Şirketi Directory Middle Black Sea Regional Branch Address: 2014 Annual Report. Head Office Address: Corporate Title Tel: +90 850 Kale 744 Mah. 0 744 Ziya Paşa Sok. No: 4 Fax:Kat: 7+90 55030 850 İlkadım/SAMSUN744 0 750 Tel: +90 850 Rüzgarlıbahçe 744 0 744 Mah. Kavak Sok. E-mail: [email protected] Fax:No: 31 +90 34805 850 744Kavacık/İSTANBUL 0 745 AnadoluWebsite Anonim Türk Sigorta Şirketi E-mail: [email protected] Southern Anatolia Regional Branch www.anadolusigorta.com.tr Address: Corporate Insurance Department 01120 Seyhan/ADANA Address: Anadolu Sigorta Trade Registration No: Tel: +90 850 Reşatbey 744 0 744 Mah. 62029. Sok. 16/A Fax: +90 850 744 0 746 4593/557 Tel: +90 850 Rüzgarlıbahçe 744 0 744 Mah. Kavak Sok. E-mail: [email protected] Fax:No: 31 +90 34805 850 744Kavacık/İSTANBUL 0 745 E-mail: [email protected] Central Anatolia Regional Branch Address: Cinnah Cad. Farabi Sok. No: 43 Motor Claims Department Address: Tel: +90 850 744 0 744 Fax:06690 +90 Kavaklıdere/ANKARA 850 744 0 749 Tel: +90 850Rüzgarlıbahçe 744 0 744 Mah. Kavak Sok. E-mail: [email protected] Fax:No: 31 +90 34805 850 744Kavacık/İSTANBUL 0 182 E-mail: [email protected] Black Sea Regional Branch Address: İstanbul Regional Branch Address: Beytem Plaza Büyükdere Cad. 20/B Tel: +90 850Karşıyaka 744 0 744 Mah. 4 Nolu Sok. No: 479 Fax:61040 +90 TRABZON 850 744 0 751 Tel: +90 850 744 0 744 E-mail: [email protected] Fax:34394 +90 Şişli/İSTANBUL 850 744 0 753 E-mail: [email protected] Marmara Regional Branch Address: Kadıköy Regional Branch Address: 16110 BURSA Odunluk Mah., Akademi Cad., Zeno İş Tel:Merkezi, +90 850A Blok 744 No10/5 0 744 Kat: 1 Daire: No: 6-10 Tel: +90 850K2 744Plaza 0 744Sarıkanarya Sok. No: 14 Fax: +90 850 744 0 748 Fax:34742 +90 Kozyatağı/İSTANBUL 850 744 0 754 E-mail: [email protected] E-mail: [email protected] Turkish Republic of Northern Cyprus Branch Mediterranean Regional Branch Address: Memduh Asaf Sok. 8 Address: 07050 ANTALYA Tel: +90 392 227 95 95 Tel: +90 850Konyaaltı 744 0 744 Cad. No: 78 Fax:Köşklüçiftlik +90 392 Lefkoşa/TRNC227 95 96 Fax: +90 850 744 0 752 E-mail: [email protected] E-mail: [email protected] Western Anatolia Regional Branch Address: Atatürk Cad. No: 92 Tel: +90 850 744 0 744 Fax:Anadolu +90 Sigorta850 744 Binası 0 747 2 35210 İZMİR E-mail: [email protected] 2 / Anadolu Sigorta Annual Report 2014 Tanzimat (Reform) Era-1925 First Examples of Insurance 1935-1950 The birth of insurance business in Turkey… The period of non-regulated operation for • foreign capital… System Settles + In• the Ottoman State before Tanzimat (Reform) Era, legislation or rulings about insurance were non-existent. Having turned westward with the Tanzimat Era, the Ottoman State began Grows Strong introducing reforms in various fields. While religious scholars defined insurance as a special covenant separate from sharia, Increasing number of national insurance companies… it was first addressed in a regulation published in 1860 as an addendum to the Statute of Commerce. Regarded as a The public institution portfolio handled by Anadolu Sigorta foreigner’s activity because of the capitulations that dominated • almost in its entirety… the Ottoman territory since the 1500s, insurance remained • beyond governmental supervision. In 1889, foreign insurance The establishment of Anadolu Sigorta served as an encouragement for other companies wishing to operate in Ottoman territory were required insurance companies that were to be founded. With the establishment of Güven to be registered by getting a license. In 1916, when insurance Türk Sigorta company and with Anadolu Sigorta completely severing its ties with companies were formally registering, syndicates were illegal; so the name of the Syndicate was changed to the Association of the portfolio was shared among national, semi-national and foreign companies Insurance Companies Operating in Turkey. In those days, the word inİttihadı 1939. Milli One Şirketi,of the most an insurance important company developments that was in partthe insurance of the Union industry Group, ‘syndicate’ was objectionable, as it was usually understood to mean between 1936 and the start of World War II was the founding of Ankara Türk ‘labor union’. Following the 1908 strikes that shook the country, syndication was forbidden by the Law of Corporations. At the time, their toll on the insurance industry as well, and the Turkish insurance business the Association had 81 members, all of them foreign insurance hadSigorta to cover Şirketi the by perils Anadolu of the Sigorta. war after The itsnegative onset. developmentsHowever, no reinsurers during WWII in took Europe extended support against these perils under wartime circumstances, and tackled the insurance issue after the proclamation of the Republic. sufficient coverage could not be obtained. Since London and Paris markets were companies. The Association phase lasted until 1925, when İşbank out of reach during the war years, Anadolu Sigorta turned to the Italian market for reinsurance. This distressed period that lasted until the end of the war had been replaced with economic comfort toward late 1940s. Anadolu Sigorta had provided one third of the cargo insurance for the aid materials shipped from the U.S.A. under the Marshall Plan. 1925-1935 National Capital + Action and Motivation Inception of investments, laying the foundations of the national insurance industry... Incorporation of Anadolu Sigorta, early Republic era… • It had been just one year since the establishment of the Republic. Having emerged as a modern Republic from a 13-year • war period it had entered as a dissolving empire, Turkey was about to undertake heavy-duty industry initiatives, although lacking the capability to manufacture so much as a needle until then. The construction of the first shipyard unit in Gölcük was enginefollowed of bythe the nation’s establishment economic of development. the State Railways, That completed and then by the the first first phase passenger of the pursuitaircraft of trip a national between identity İstanbul in and banking Ankara. andThe insurance.same year sawMainly the conducted incorporation through of “Türkiye marine İştransportation, Bankası” (İşbank), foreign the trade first nationalwas carried bank, out what under would the supervision be the driving of insurance companies dominated by foreign capital, which set an obstacle to the incorporation of national insurance business.