INVESTOR PRESENTATION17Q4

1

Company & Market Potential 3

Company Overview 11

Financial Highlights 20

2

Company & Market Potential

Company Overview

Financial Highlights

3

Premium Production-2017/12

SOURCE: Association of Insurance Companies

Non Life 39

Life 22

Reinsurance 2

Total 63

Non Life 26

Life 18

Reinsurance 1

Total 45

Number of Companies (12M17) Number of Foreign Shared Companies

Premium 12M17

Non-Life Life

4

27,3

35,4

39,7

3,85,0

6,8

12.15 12.16 12.17

Premium Production (₺ Bn)

Non Life Life

Mandatory Policies in Turkey (Earthquake & MTPL)

SOURCE: turkstat, State Planning Organization, Association of Insurance Companies, bkm, tramer, TCIP

17,7 million houses

52,6% of houses are non-insured

22,2 million vehicles

22,1% of vehicles are non-insured

EARTHQUAKE MTPL

5

2016Premium / GDP

(%)Premium Per Person

($)

World 2,81 285

USA 4,29 2.449

UK 2,58 1.031

Switzerland 4,12 3.233

Poland 1,92 238

Turkey 1,36 144

SOURCE: Treasury, Association of Insurance Companies, Swiss Re Sigma 3,2017

102 108 93 106 114 123143 133 124

144

118

165138

163

215 219

305 308361

505

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Non-Life Premium Per Person

Premium($) Premium(TRY)

6

Non-Life Trends in the Sector

Top 10 Companies in the Sector-12M17

Non Life CompaniesPremium Production

(₺ Mn)

Allianz 5.134

Anadolu 4.671

Axa 2.908

Mapfre 2.680

Ak 2.637

Top 5 Companies 18.030

6 to 10 8.632

Top 10 Companies 26.662

Other 13.048

Total 39.711

SOURCE: Association of Insurance Companies

Allianz13%

Anadolu12%

Axa7%

Mapfre7%

Ak6%

6 to 1022%

Other33%

7

Non-life Companies Premium Production

SOURCE: Association of Insurance Companies

Anadolu Sigorta (₺ Mn) Non-Life Sector (₺ Mn)

12M17 12M16 ΔYoY 12M17 12M16 ΔYoY

Branch GPW GPW Growth GPW GPW Growth

MTPL 1.342 1.581 -15% 13.038 12.931 1%

MOD 953 899 6% 6.916 6.171 12%

Fire and Nat. D. 814 756 8% 5.746 4.828 19%

Health 538 406 33% 5.028 4.226 19%

Other 1.024 842 22% 8.983 7.292 23%

Total 4.671 4.484 4% 39.711 35.448 12%

Total (MTPL excl.) 3.329 2.904 15% 26.669 22.517 18%8

Aspects of Pooling System

Includes high-risk policies;Commercial vehicles(taxi,minibus, bus and trucks) + non-commercial vehicles at 1st, 2nd & 3rd segments

%5 commission will be paid to the issuer company for claimmanagement

Discount rates dropped;Commercial vehicles at 5th, 6th & 7th segments reduced to 10%, 20% & 30% from 15%, 30%, 45% respectively => %13 Premium increase

Agency commissiondecreased to 8% from 10%

MTPL Pool Regulation

Premium & Claims distrubition;50% of them to be distributed toall companies equally, remaining50% will be calculated based on last three years’ market share

9

Aspects of Pooling System

Includes all policies;Includes all policies issued after01.07.2017

%2 reinsurancecommission will be paid to the issuer company for expenses

Agency commissionFor all risk groups10%

MedMal PoolRegulation

Premium & Claims distrubition;50% of them to be distributed toall companies equally, remaining50% will be calculated based on last three years’ market share

10

Company & Market Potential

Company Overview

Financial Highlights

11

o Founded by Mustafa Kemal Atatürk in 1925

o First national insurance company

o Main activity: Non-life insurance(until 1991, both life and non-life)

o group company

History

12

Shareholder Structure (12M17)

(*)Milli Reasürans

57%

Other43%

(*) 77% of Milli Reasürans is owned by T. İş Bankası

Milli Reasürans Türk Anonim Şirketi 286.550.106 57,3%

Trakya Yatırım Holding A.Ş. 35.014.061 7,0%

QİNVEST Portföy 29.343.090 5,9%

Other 149.092.743 29,8%

Total 500.000.000 100,0%

13

• ~25% working exclusively with Anadolu2.215 Professional Agencies

• Working exclusively with Anadolu1.357 Işbank Branches

İzmir

Ankara

Antalya

Trabzon

Adana

N. Cyprus

İstanbul (2) Samsun

Bursa

Gaziantep

14

Distribution Channels(12M17)

Distribution Channels (12M17)

Agency66%

14%

Broker10%

Indirect6%

Direct4%

15

o Share of production 11,5% 13,8% in 12M17

o ₺644 mn GWP in 12Q17

15 M İşbank Customer

Bancassurance Potential

2013 269mn

2014 325mn

2015 423mn

2016 516mn

2017 644mn

16

Production by Branches (12M17)

SOURCE: Association of Insurance Companies

17

BRANCHES FY 2017 FY 2016Rank2017

Market Share2017

Growth

MOD 953 899 1 13,8% 6,0%

Fire 814 756 1 14,2% 7,6%

General Liability 181 141 1 17,7% 28,8%

Watercraft 89 79 1 40,7% 12,7%

Marine 86 82 1 13,3% 5,4%

MTPL 1.342 1.581 2 10,3% -15,1%

Aircraft Liability 36 34 2 27,1% 5,8%

Aircraft 27 26 2 23,6% 2,4%

Health 538 406 3 10,7% 32,7%

General Losses 414 319 3 9,5% 29,8%

Accident 153 132 3 9,1% 16,0%

Other 38 30 -- -- 26,8%

TOTAL 4.671 4.484 2 11,8% 4,2%

18

Combined Ratio 2017 2016 YoY(%)

MOD 105,0% 99,8% 5,2%

MTPL 110,1% 113,9% -3,4%

Fire 112,4% 118,8% -5,4%

Health 109,8% 105,4% 4,2%

P.Accident 59,0% 68,8% -14,3%

Total 107,5% 107,1% 0,4%

85%76% 80% 83% 84% 85%

17%

15% 14% 15% 15% 14%

9%

10% 9%9% 8% 9%

2012 2013 2014 2015 2016 2017

Claims Ratio Net Comm. Ratio Expense Ratio

111,4%

101,2% 103,1%106,9%

107,1% 107,5%

Profitability

19

659

719

566633

310

437 460 446

564

644694

805842

885

222259

120

69

2014 2015 3M16 6M16 9M16 2016 3M17 6M17 9M17 2017

IBNR Reserve Development(mn.TRY)

Company & Market Potential

Company Overview

Financial Highlights

20

21• 134 mn financial loans excluded (2016)• 103 mn financial loans excluded (2017)

3.2533.773

4.888

5.974

7.032

2013 2014 2015 2016 2017

Total Assets (mn TRY)

1.8512.282

2.934

3.9144.456

2013 2014 2015 2016 2017

Tech. Reserves (mn TRY)

1.7852.250

2.776

3.832

4.497

2013 2014 2015 2016 2017

Cash and Marketable Sec. (mn TRY)

9131.020

1.202 1.223

1.639

2013 2014 2015 2016 2017

Shareholders' Equity (mn TRY)

18%

34%17%

14%

Growth Performance

Assets 31.12.17 31.12.16

Cash + Marketable Sec. 4.608 3.966

Equity Participations 690 427

Other Assets 1.734 1.581

Assets 7.032 5.974

Liabilities 31.12.17 31.12.16

Technical Provisions 4.456 3.914

Shareholders' Equity 1.639 1.223

Other Liabilities 937 837

Liabilities 7.032 5.974

Balance Sheet

%16 increase in liquid assets %18 increase in total assets

22

Income Statement – 2017 (₺ mn)

P&L 1Q17 2Q17 3Q17 4Q17 FY17 1Q16 2Q16 3Q16 4Q16 FY16Change

(%)(YoY)

Tech. Income 864 850 799 857 3.370 708 775 834 871 3.188 6%

Tech. Expenses -887 -932 -898 -903 -3.620 -772 -792 -887 -958 -3.409 6%

Net Financial Inc. + Other Exp. 102 110 114 155 481 62 72 71 120 325 47%

Deferred Tax 6 -2 13 -11 6 7 0 -1 1 7 -20%

Gross Profit 85 26 28 98 237 5 55 17 34 111 113%

Tax -23 -2 -15 -13 -53 -3 -11 -3 -6 -23 126%

Net Profit 62 24 13 85 184 2 44 14 28 88 110%

23

7,70

5,90

7,40

15,40

9,908,70

10,54

17,74

2014 2015 2016 2017

ROE -ANHYT excluded ROE-Consolidated

ROE

Profitability

24

Affiliates-17Q4

Equity (₺ M) 430 914

Market Cap (₺ M) 3.449 1.234

Share Owned 20,0% 4,8%

Share Value (₺ M) 690 59

Affiliates Deducted Mcap : ₺801 mnP / BV: 0,80

Mcap : ₺1.550 mnP / BV: 0,95

25

Deposits73%

Funds12%

Bonds10%

Stocks4%

Other1%

Deposits Funds Bonds Stocks Other

26

* ANHYT dividend excluded.

TOTAL: TRY 4,12 Billion

TRY 3,41 bn at 31.12.2016

Investment Portfolio

Booked Value: ₺690 Mn

In 2017;

Dividend from ANHYT 28 mn TRY

Investment Income * 547 mn TRY

Average Portfolio Income 15%

For further information please

e-mail to: investor.relations@anadolusigorta.com.tr

or call Anadolu Sigorta Investor Relations on

(+90 850 744 02 54),

(+90 850 744 03 59)

Thank you…

This presentation contains forward-looking statements and information on thebusiness development of Anadolu Sigorta. These statements may be spoken orwritten and can be recognized by terms such as “expects”, “anticipates”,“intends”, “plans”, “seeks” or words with similar meaning. These statements arebased on assumptions relating to the development of the economies ofindividual countries, and in particular of the insurance industry, which we havemade on the basis of the information available to us and which we consider tobe realistic at the time of going to press. The estimates given involve a degree ofrisk, and the actual developments may differ from those forecasts.

Anadolu Sigorta does not accept any liability whatsoever for any direct orconsequential loss arising from any use of this document or its content due tomisleading information in this document.

27