Press presentation: Acquisition of Yapi Kredi Sigorta

Allianz Acquisition of
Yapi Kredi Sigorta
March 27, 2013
Transaction overview
Allianz and Yapi Kredi Bank enter into a long-term partnership:
 Allianz acquires Non-Life and Life & Pensions businesses of Yapi Kredi Bank in Turkey
 Allianz and Yapi Kredi Bank enter into a 15-year exclusive bank distribution agreement
 Yapi Kredi Bank retains 20% of the Life & Pensions business
Total net consideration to Yapi Kredi Bank of TRY 1,602mn (EUR 684mn1):
 Payment TRY 1,790mn (EUR 764mn1) for 93.9% stake in Yapi Kredi Sigorta netted
against a retention of 20% in Yapi Kredi Emeklilik by Yapi Kredi Bank for TRY 188mn (EUR 80mn1)
EPS accretive
P/E 2013e ~16 (before synergies)
© Allianz SE 2013
Closing expected 2H 2013 subject to regulatory and competition board approval
Mandatory tender offer for remaining 6.1% to be launched shortly after closing
1) Based on current FX rate (2.3425)
2
Turkey – favorable demographics and
sound economic fundamentals
Population ranked 18th in world
Fastest growing economy
in Europe (2002 – 2011)
All figures
in %
3.1
> 50%
5.4%
Thereof urban
Real GDP
2012 – 2016F
4.5
5.1
Malaysia
4.3
Russia
0.1
-0.1
88
6.5
5.1
3.8
5.2
32
51
1.0
31
24
53
0.9
23
23
Population
< age 30
35
0.3
16
6.4
77%
0.9
66
3.5
~ 75mn
Population growth
2012 – 2016F
40
0.7
2.7
Indonesia
Government
debt/GDP
2.5
1.5
Brazil
Source: EIU
Population
8.6
CEE
Thailand
CAGR
Real GDP growth
2011
Turkey
Eurozone
Real GDP
44
1.3
-0.2
46
© Allianz SE 2013
Strong growth indicators
37
0.8
35
3
Turkish insurance market –
fast growth and low penetration
All figures Non-Life CAGR
in %
2006 – 2011
Turkey
Life CAGR
2006 – 2011
12
14
Market size
(2011, USD bn)
10.1
Life premiums to GDP (%)
1.2% of GDP
-0.5
0.0
Russia
0.5
CEE
Eurozone
7
10
6
43.9
2
1,065
16
15
Indonesia
27
18
78.3
14.1
Serbia Romania
1.0
Croatia
Indonesia
1.5
2.0
Brazil
Turkey
Bulgaria
Hungary
Brazil
Czech R.
Slov enia
Poland
2.5
Thailand
3.0
Malay sia
3.5
Russia
Thailand
14
19
17
13
16
14.3
43.3
4.0
(As of 2010)
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Non-Life premiums to GDP (%)
15.2
 Double digit growth rates, above CEE &
Europe and on par with growth markets
Sources: Swiss Re Sigma, BMI Forecast
4.0
4.5
© Allianz SE 2013
25
Malaysia
 One of the least penetrated
insurance markets
4
Combining two strong players (1)
Yapi Kredi Sigorta
Key figures1 2012
Allianz gains market leadership
Market position
Market position
# 3 in Non-Life market
# 5 in Non-Life market
#10 in Life market
# 4 in Life market
# 7 in Pension market
# 3 in Pension market
Statutory premiums
Statutory premiums
 Non-Life:
EUR 625mn
 Life:
EUR 39mn
 Pension (AuM):
EUR 303mn
Shareholders’ equity: EUR 241mn
Net income:
EUR
Pro-forma market position
# 1 in Non-Life market
# 3 in Life market
# 2 in Pension market
30mn
~ 1.4mn customers
1) Turkish GAAP
2) Dividend from L&P company is excluded from Non-Life net income
Source: annual reports and Insurance Association of Turkey
 Non-Life:
EUR 531mn
 Life:
EUR 90mn
 Pension (AuM):
EUR 1.5bn
Shareholders’ equity:
EUR 178mn
Net income2 :
EUR 45mn
© Allianz SE 2013
Allianz Turkey
Key figures1 2012
~ 2mn customers
5
Combining two strong players (2)
(EUR mn)
GPW
CAGR
+12.5%
466
430
Non-Life
Life
536
499
625
483
324
281
43
36
39
2009
2010
2011
2012
-8.2%-p
102.2
99.2
99.2
2009
2010
2011
9M 2012
14
19
CAGR
+13.2%
23
14
7
5
2009
2010
Non-Life
Life
2009
Combined ratio
107.4
21
CAGR
+24.2%
664
37
Net income
Non-Life
Life & Pensions
GPW
36
Combined ratio
(%)
519
Yapi Kredi Sigorta – key figures 20121
(%)
4
2011
435
380
416
55
74
90
2010
2011
2012
-10.6%-p
104.4
100.6
101.7
2009
2010
2011
9M 2012
CAGR
+328%
33
30
26
4
2012
Non-Life
Life & Pensions
531
112.3
Net income2
19
620
490
1
9
-9
2009
1) Turkish GAAP; fully consolidated
2) Dividend from L&P company is excluded from Non-Life net income figures
Source: annual reports and Insurance Association of Turkey; underlying FX rate: 2.1620 (2009), 1.9969 (2010), 2.3373 (2011), 2.3134 (2012)
19
8
11
18
2010
2011
45
17
© Allianz SE 2013
Allianz Turkey – key figures 20121
15
27
2012
6
Combining two strong players (4)
2 Expansion of agencies by 80%
 5th largest banking network
 928 branches
 6.5 million active customers
 Highest share in credit cards and
auto loans (~17%)
Allianz
Non-Life
Life&Pensions
Yapi Kredi
1,406
1,129
125
171
 Bancassurance focuses on
Life & Pensions
 Agencies focus on Non-Life
and Health
 High reputation with powerful brand
 Nationwide network
 Low overlap
Bank distribution prerequisite to
participate in fast growing pension
market supported by new pension reform
Agencies benefit from hardening motor
market and growth opportunities in
Health in light of rising household incomes
© Allianz SE 2013
1 New bancassurance partner
Yapi Kredi Bank
7
Transaction details
Yapi Kredi organizational chart
UniCredit
50%
Koç
Financial Services
Koç
50%
81.8%
18.2%
Free float
6.1%
Yapı Kredi
Bank
Free float
Yapi Kredi Bank
buys 20%
93.9%
 Allianz will acquire 93.9%
in Yapi Kredi Sigorta
(Non-Life)
99.99%
 Remaining 6.1% with the
subject to a mandatory
tender offer of Allianz
© Allianz SE 2013
15-year
bancassurance
agreement
 Yapi Kredi Bank will retain a
20% stake in Yapi Kredi Emeklilik
(Life&Pensions)
8
Disclaimer
These assessments are, as always, subject to the disclaimer provided below.
Forward-looking statements
The statements contained her ein may include pros pects, statements of
extent of credit defaults, (vii) interest rate levels, (viii) currency exchange
future expectations and other forw ard-looking statements that are based
rates including the Euro/U.S. Dollar exchange rate, (ix) changes in law s and
on management's current view s and assumptions and involve know n and
regulations, including tax regulations, (x) the impact of acquisitions, including
unknow n risks and unc ertainties. Actual results, perfor manc e or events
related integr ation issues, and reorganization measures, and (xi) general
may differ materially from those expr essed or implied in such forw ard-
competitive factors, in each case on a local, regional, national and/or global
looking statements.
bas is. Many of thes e fac tors may be mor e likely to occ ur, or mor e
Such deviations may aris e due to, w ithout limitation, (i) changes of the
pronounc ed, as a res ult of terroris t activ ities and their consequenc es.
gener al economic conditions and competitive situation, particularly in the
Allianz Group's core business and core markets, (ii) performance of financial
No duty to update
cy and severity of insured loss events, including from natural catastrophes,
The company assumes no obligation to update any infor mation or forw ard-
and the development of loss expenses, (iv) mortality and morbidity levels and
looking statement c ontained herein, s ave for any infor mation r equired
trends, (v) persistency levels, (vi) particularly in the banking business, the
to be disclosed by law .
© Allianz SE 2013
markets (particularly mar ket volatility, liquidity and credit events) (iii) frequen-
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