Investors and dear analysts, welcome to Anadolu Sigorta 2026 second quarter financial results webcast. As usual, we will be hosting this event, this presentation, with our CFO, Erdem. Again, as usual, we are going to have a brief presentation regarding second quarter results. After presentation, we are going to have a Q&A session. At the end of the presentation, you can ask your questions to chat box, or you can raise your hand so that we can unmute your microphone in order to ask your questions. We can begin, I think. Erdem, the floor is yours.
Thank you, Barış. Again, welcome to Anadolu Sigorta financial presentation 2026 Q2. Our presentation has 16 slides. Half of them I will present to you, and after that my colleague Mr. Şafak will present the next slides. I think that it will take 30 minutes. After that, if you have any question, we will pleasure to answer it. First of all, I would like to give you a short notice. What happened in the first half, I can say, the global economic outlook for the second quarter of 2026 has shaped by escalating the geopolitical tensions in the Middle East, as you see. Concerns about energy supply, security, and expectations regarding the central bank money policy. Despite the volatility in global markets, the Turkish economy has maintained its financial stability. Tighter monetary policy and macroprudential measures implemented in the second quarter.
The Capital Markets Board continued the existing measures targeting equity markets. The Central Bank of the Republic of Turkey, CBRT, as they continue to effectively utilize the liquidity management tools according to data released in June. The Turkish economy grew 2.5% year-on-year in the first quarter, with national income exceeding $ 1.6 trillion, and per capita income surpassing $19,000 in the term. The inflation outlook remained volatile but high through to the second quarter. The consumer price index, CPI, increased 4.18% monthly in April, 1.71% in May, and 0.99%, nearly one point, in June. Bi-annual inflation reached 33.1 % as of June. Price rigidity in the services sector and energy costs continued to be key factors determining the inflation outlook in this term, especially. We look at our company.
After the general assembly in March, we decided to pay all the dividend TRY 2.750 billion, and we finished it in April, actually. Money issuance companies were sized by SEDDK. I mean, the Insurance and Private Pension Regulation and Supervision Agency. In this term again, we have got two new deputy general managers in our company. It was important achievement in this term. One more thing, as a result of the rating conducted by the international credit rating agency, Fitch Ratings, on April 29 in 2026. All companies' international financial strength ratings was confirmed BB stable, and all national financial strength ratings was confirmed A+ stable in this term. After that, we can go to our presentation, the first slide. Yes. Profitability is important for us, especially for our company in this term. Premium volume increased TRY 24.6 billion in the first quarter to 2026.
Real profitability solo ROAE stands 38.4%. Look at the technical outlook. Strong premium production, increasing market share in the health branch together with the healthy portfolio in this term, and strong growth in bancassurance channel supporting profitability in this term again. Our AUM growing portfolio size amid Iran and U.S.-Israel war. Of course, it affects our financial station, but anyway, TRY 6.1 billion quarterly basis, reaching TRY 89 billion of [assets under management] . Next slide, please. When we look at the non-life insurance market in our country, more than 60 insurance companies. In this term, the sector premium production TRY 629 billion. When we look at the first top five companies, nearly TRY 308 billion, and top 10 companies, TRY 425 billion. Anadolu Sigorta produced TRY 54.2 billion in this term.
If you compare the last year, it has the 21.9% increase in premium production. After this kind of premium production, Anadolu Sigorta reached fourth degree in the company, non-life market shares, 8.6% market shares in the market. Next slide, please. When we look at the premium volume and composition, Anadolu Sigorta and non-life sector, if you compare it, as I said before, all premium production, TRY 54.2 billion. If you compare the last year, it was nearly 22% increases. When we look at the sector, 26.2% increasing and TRY 629 billion. When we look at the branches, for example, first of all, the MOD. MOD is very important, and first degree premium production site for us. Anyway, in this term, market, other non-life sector issues, companies, premium production could be higher than the Anadolu Sigorta.
MOD side in the sector is 24.6%, but in our company, 16.5%. On the other hand, the health side and the fire and natural disaster side, year-to-year premium production increasing higher than the non-life sector. I mean, the health side in the 42.4%, in sector, 34.8%. Fire and natural disasters, all premium production increasing 24.6% but sector 23%. Health side and the fire side premium production, more than important the before years, especially when we compare the last year. When we look at the quarterly side, this quarterly side is better than the sector in some branches. Anyway, especially the first quarter of this year is better than the second quarter, I can say. Next slide, please.
When we look at the market share, our company, which attaches importance to balanced growth in every branches, has succeeded in winning three first places and three second places, and again, three third places. In 10 branches overall, our company ranks fourth with 8.6% market share. If you compare the last year, it was 8.9% last year, nearly all 0.3% decreasing, if you compare the last year, but this is a small changeable thing. Next term, I think it will be better than this market share, and it will be more than 9%. Next slide, please. When we look at the sales channels and premium production, Anadolu Sigorta, as I said before, Anadolu Sigorta is the agency tendency premium production.
In this term, if we compare the last year or premium production agency side, 58.9%, but the last year, 62.5%, nearly 2.5 point decrease in the last year. If you compare the sector, compare the sector agency premium production lesser than Anadolu Sigorta. If you look at the bancassurance side higher than the sector, I can say because the bancassurance side is very important for us, especially the profitability and premium production. Next slide, please. When we look at the branches, especially the total portfolio, MOD, MTPL, fire and disaster, and health side. If you look at the total portfolio, next year in the same term, it was 109.6%. This term, 112.5%, nearly 3 points increasing this term.
On the other hand, if you look at the MTPL side, second quarter, it was 176.3% to 140%, nearly 36 point decreasing in this term, which is a good improvement and achievement for us. On the other hand, the fire and disaster side is good for us because it was 122%, but now 116%. It was good improving in this term. Of course, a little bit changing in MOD side, it is not good for us, but in the next term, we will control this combined ratio in this term. Next slide, please. When we look at the financial status and activity results of our company are exempt, it is seen that our assets exceeded TRY 151.3 billion, and with an increase of nearly 13% compared to the previous year.
The premium production reached TRY 54.2 billion with an increase of 22% compared to the previous year. Our market share 8.6%, as I said before. Our company realized TRY 7.4 billion in unconsolidated net profits, and it means 41.3% increase. The consolidated the same increase in this term. In this action, when we look at the claims ratio is similar with compared to last year. Last year it was 79.5%, this year 79.2%. It is good improving for us. On the other hand, the combined ratio is higher than the last year, nearly 3 points. It depends on the net commission ratio and expense ratio increased 1 point in this term. So nearly 3 points increase. End of the year, we are targeting to get in 105%-110%. We would like to keep it in combined ratio. Next slide, please.
Okay, now, I would like to give my sentence my colleague, Mr. Şafak. Thank you.
Thank you, Erdem . I'm going to continue with our portfolio, asset funding management portfolio. As you see, our portfolio has reached TRY 89 billion at the end of second quarter, which is $1.9 billion. As you see, we have increased our bonds share up to 34%. It consists of both TRY and USD bonds, but most of them is TRY fixed bonds. 27% of our whole portfolio is TRY government bonds especially. They are fixed, and their returns yield is around 42%. Short-term interest instruments, which is 52%, is mainly time deposits and money market funds and repo as well. We have around 7.4% equity and some commodity gold, silver, and some other funds makes around 6% of our whole portfolio. In the second quarter, our quarterly return from our AUM was TRY 6.4 billion which makes around 8.7% return.
In the second quarter, our AUM increased 7.4% from TRY 82 billion. To continue with our income statement. As you can see, this is quarterly brief income statement. Both unconsolidated and consolidated figures can be seen on the slide. Starting from unconsolidated Solo figures. As you might see, Q-on-Q increase in technical income was 9% and technical expenses was 5%. As a result, our quarterly results improved. Quarterly combined ratio results, technical results improved in the second quarter compared to first quarter. Our financial income was a bit weaker compared to first quarter, mainly coming from Anadolu Hayat dividends. It was stronger with 29% compared to the previous year's second quarter. At the bottom of the page, you can see that our net income was a bit weaker compared to first quarter, 8%, but 19% stronger compared to previous year's second quarter.
Maybe we should also highlight that excluding Anadolu Hayat dividends, one of income from the first quarter, we were able to improve our net profit with 13% compared to first quarter Solo results. On the right-hand side, you can see almost similar consolidated figures. When we continue with cumulative six months results. Our technical income, again, on the left-hand side, you can see our unconsolidated and the right-hand side, consolidated figures. Our technical income increased 42%, whereas technical expenses increase was a bit higher. It was 46%, which increased our claims ratio, and it deteriorated our technical profits compared to previous year's first half. But as net financial income growth was very strong with 50%, our net profit increase was 41% in Solo figures and 42% in consolidated figures, and we were able to reach TRY 7.4 billion net profit at the end of the third quarter.
You can see the waterfall graphs compared to Q-on-Q waterfall graphs and year-on-year graphs also can be seen. On the left-hand side, you can see our net profits compared to first Q profit. As you might recall, it was TRY 3.8 billion at the end of first quarter. Underwriting results had positive effect compared to first quarter. Final investment income was almost the same, a little bit negative impact. You can see we reached TRY 3.5 billion. When we compare our second quarter results with previous year's second quarter results, this time underwriting performance was weaker compared to previous year, whereas investment income was much stronger so that we can reach TRY 3.5 billion. On the right-hand side, you can see our quarterly investment income.
This one shows all of our investment income, which also includes the income that we book in our equity, coming from especially some stocks and government bonds market prices. At the end first quarter, you might remember that the bond yields had risen. As a result, our market values came down significantly, and first Q income was around TRY 5.6 billion. In the second quarter, with these bonds again getting grants, with these bonds interest coming down, we were able to increase our total investment income to TRY 7.4 billion. At the bottom of the slide, the last waterfall graph, you can see our half year results compared to previous half year's results. Again, the same, our underwriting performance was weaker. It had a negative impact around TRY 2 billion, but our investment effect was TRY 4.7 billion in the first half of 2026.
When we have a look at our balance sheet figures, our assets increase was 13%, and our AUM increase was 14%. Technical reserves increase was 12%. They have reached to TRY 84.8 billion, which consists of mainly outstanding claim reserves and unearned premium reserves. Our share of the security increase was 12% at the end of second quarter. On the last slide, we still show that we were able to stay above inflation in terms of return on average figures, both annualized quarter, calculated from quarter results, annualized quarter results, and cumulative 12 months results. We were able to stay above inflation. On the right-hand side, as we have 20% of Anadolu Hayat, and they're also a listed company, we want to show that we have some discounts compared to our peers which are listed. These are the slides for our today's meeting.
Thank you for participating and listening to our presentation. We can continue with questions if you have any. You can just raise your hand so we can unmute your microphone, or you can either write to chat box so we can answer your questions. I can't see any written questions, and I can't see any raised hands as well, Erdem. I think it's all crystal clear. Maybe for close up, back to you.
Okay. Thank you very much for joining this presentation. We would like to meet you again in the better and the good results in the next term. Thank you very much for joining. See you then. Bye.
Bye.