Competitive Advantage

Türkiye Sigorta delivered outstanding performance in key segments in 2024. Strong premium growth in Health segment and consolidated market dominance in Non-Motor segments have further strengthened our position in the industry. This success is based on effective cost control, comprehensive risk management policies, and high operational efficiency.

Our net profit doubled compared to the previous year, and our combined ratio remained below 100%, reflecting our operational efficiency. The regulatory flexibility in discount rates during the first quarter resulted in a combined ratio of around 90% and high first-quarter profit, which normalized in subsequent quarters. We have bolstered our position as the industry's leading and most reliable insurer through targeted profitability and prudent reserve policies. Our capital adequacy (2024: 181%; 2023: 165%) is significantly above the legal dividend distribution limits, supporting our strong balance sheet, and ability to deliver value to our stakeholders. In line with our dividend targets, we paid a TRY 1 billion dividend in 2024 and joined the BIST Dividend-25 Index. We will continue working tirelessly to maintain this success in the coming periods.

Health segment showed extraordinary performance in 2024 with new agreements and growth opportunities in customer relations. Significant portfolio growth above industry averages was achieved throughout the year. Aligned with our investment plan, the combined ratio for this segment improved by 2 points compared to 2023.

In Motor segment, market conditions for auto insurance products remained challenging. Despite sector-wide supply issues, Türkiye Sigorta stood out as a solution provider, expanding its portfolio rapidly in the second quarter of 2024. However, we managed to adapt to market conditions in the second half of the year, in line with our long-term sustainability goals. Although the effects of these challenges on our balance sheet persist, Türkiye Sigorta continues to bear this financial burden compared to global competitors. With our strong capital base, we are taking necessary steps to position ourselves as a reliable, long-term sustainable insurance provider, aligned with our founding mission to serve our customers.

In 2024, we became the only insurance company listed in both the MSCI Emerging Markets Index and the FTSE Emerging Markets Large Cap Index, as well as the BIST Dividend-25 Index. Furthermore, as announced Board Decision on December 26, 2024, we applied to increase our capital ceiling tenfold to TRY 50 billion and our application was approved on January 10,2025 by Capital Markets Board. This initiative is a step taken for strong leadership in offering non-life insurance products.

We have made significant progress in enhancing customer engagement through improvements in our website, mobile applications, and product offerings. At the same time, we implemented numerous projects to enhance efficiency and embrace technological advancements within the Company. Examples of our focus on delivering a superior customer experience include the digital assistant "Bilge," online claims processing and tracking, online health assistance services, and the "Pusula+" platform.

As Türkiye Sigorta, our goal for 2025 is to maintain our leadership in the sector through healthy and balanced growth. Our priorities include improving customer experience, increasing product accessibility, and diversifying our product portfolio. Supported by our strong reinsurance capacity and equity base, our robust balance sheet will play a critical role in maintaining sustainable profitability. Additionally, with our solid portfolio structure, agile portfolio management approach, and commitment to transparency in governance, we aim to continue delivering value to our stakeholders in 2025.