Thank you very much for your interest, of course.
That is very kind of you. Thank you.
Okay. You are welcome. Maybe we can give a short brief information for you, maybe you can ask more question after that. Okay? All right. I can say not officially, but I would like to give a short notice. I mean, in the first quarter of 2026, geopolitical developments and the resulting increased risk to energy supply cycles dominated the global economic agenda.
The escalating tensions in the Middle East and developments in Iran end of February led to a significant rise in risk perception in global markets in this term. During this period, concerns about energy supply intensified, continuing to put upward pressures on the inflation outlook, especially. Despite volatile global market conditions, the Turkish economy has demonstrated relative resilience, thanks to a tight monetary policy and strength reserve structure in this term. Capital Markets Board and the Central Bank of the Republic of Türkiye decided some decisions, and these decisions affect the markets positively in this term especially. We look at our highlight, especially in this term. I think this is important, our company general assembly met in March and decided to pay dividend, TRY 2,750,000,000 paid dividends in this term. We look at the sector.
One issued company was hired by SEDDK, Insurance and Private Pension Regulation and Supervision Agency. The name of the company is [Magdeburger] , shortly, I can say. We look at the highlights, especially the first of the profitability. Gross premium volume increased TRY 29.6 billion. If you compare to last year, it takes 27.5% increase. We look at the real profitability, 12 months solo ROE stands 36.8%. We look at the technical outlook for strong group production, especially the health branch, 46.6%. PPF outside is getting down. It is good for us, especially, I can say. A channel for us, the bancassurance. Strong growth in the bancassurance channel supporting profitability in this term. Of course, the AUM is very important for us. Despite the negative market impact to Iran, U.S., and Israel war, portfolio size grew TRY 4.5 billion quarterly.
Investment income continues to remain strong, TRY 6.9 billion quarterly in this term. Next slide, please. We look at the non-life insurance markets. As you see, we are the third, bringing the 8.7% market share. The first five and first 10 companies are important to main market share. I mean, if you compare to last year, in the first top five companies produced 53%, 54% of the total premium. We look at last year, it was 48%, 49%, there is an increase here. Of course, there is a penetration in these 10 companies because 10 companies' premium production, nearly 58% of the sector of premium production. We have got, as I said before, TRY 29.6 billion and 27.5% increase last year and 8.7% market share. We do not change that. We look at the premium volume and composition, non-life sector Anadolu Sigorta.
As you see, the premium production increase is similar, 27.5% for Anadolu Sigorta and for the non-life sector is the same. Of course, there are differences between the branches, MOD, MTPL, health, and fire, and natural disasters, I mean. In this term. Sorry for that. Health, fire, and natural disaster and MOD side is strong premium production increase in the term. We look at the sector and Anadolu Sigorta. In the total premium production in sector 30%, 35% motor, in all company, 26%. The fire side, 16%. We look at the oversight, 18%. The health side, 26%. Well, but in all company, 32%. Complete differences, but the health side is strong in this first quarter as last year. Next slide, please. We look at the market share and rank. Again, the motor vehicle, they are the first degree.
Again, they are the first one, first, second, and third degrees in different 13 branches. Motor vehicle in this term, we are the first. In MOD transportation, aircraft liability, and general liability, we are the second. Fire, health, and general rules branches, we are the third degree in the sector. Totally, we have got 8.7% market share and the third rank in the sector. Next slide, please. We look at the sales channel. As I said before, we are the agency tendency premium production. We have got 56.4% premium production from agencies. If you compare the sector, higher than the sector. But if you compare the last year of the company, lesser than the last year. But anyway, I think it is very important because higher than the sector. If you look at the bank side, bancassurance side, 16.1%.
If you compare the sector and last year of our company, is higher than both of them. Look at the broker side, 18.3%. Is a little bit higher than the last year, all company, but higher than the sector market share. We look at the branch outlook. If we look at the last year, the same term. Last year it was 110.7%. This term, 114.8%. There is a four-point increase, 400 basis, I mean. But of course, the inflation affect all of the rates. But on the other hand, the discount rate is very important because last year this term, it was 32.5%, but this term it was 29%. So two and a half points, near two and a half points. Effect, of course, is kind of increasing. Next slide, please.
We look at the technical side, especially, I can say, as you see, the all combined ratio is increased than five point. But as you remember, again, last year in this term, discount rate, 22.5%, but now, 29%. We look at the financial status and at the results on our company. It is seen that our assets exceeded TRY 148 billion , this time increased by nearly 29% in this term, compared to the previous year, especially. The premium production reached TRY 29.6 billion , an increase of 27.5% compared to the previous year. All market shares, 8.7%. All companies realized TRY 3.8 billion in its unconsolidated net profit. It depends, 17.3% increased. On the other hand, the net profit value in our consolidated financial statement, TRY 3.5 billion in this term.
We look at the claims ratio, is similar to the last term, same term. I mean, 81.4%. But as I said before, the combined ratio, 110.7% and 114.8%. There is a nearly four-point basis differences higher than the last year. But as I said before, it depends on the inflation rate and at the same time, the change in discount rate. Okay. Now, next slide, about the investment portfolio, and I would like to give my sentence to my colleague, Mr. Şafak. Thank you.
Thank you, Erdem Bey. I'm going to continue with investment portfolio, as Erdem Bey mentioned. As you see, at the end of first quarter, our AUM portfolio reached to almost TRY 83 billion . On the left-hand side, you can see the breakdown according to the financial instrument.
The biggest portion is invested in short-term interest instruments, which are mainly time deposits, some money market funds. Repo, we can say, are the parts that we invested in short-term interest instruments. We have 28% bonds investment. Mainly, most of the bonds are TL bonds, government TL bonds, and we also have, again, government U.S. and EUR bonds as well. 5% equity. We haven't changed our equity shares since the beginning of the year. Actually, we think it's still a risk of the time in terms of stocks investment, but we also have some other funds, mainly commodity and venture capital funds. Their portion is 8%. As you can see, our quarterly financial income in the first quarter was TRY 7 billion , which makes the quarterly yield 7.8% and annual yield 35.5%. You can see at the bottom of the page the breakdown of our portfolio throughout quarters.
You might also see the increase in short-term interest instruments till the end of 2025. It was 47% at the end of 2025. Now it is 59%. As you know, the yields in Turkey are relatively high. Anadolu Sigorta is trying to take advantage from the relatively higher yields. On the next slide, you can see our income statement, summary of our income statement for first Q. Left-hand side shows our own consolidated net profit figures, and right-hand side, consolidated profit figures. Just a reminder, we do consolidate Anadolu Hayat, with which we have 20% stake of, and the method we are consolidating is equity pickup, so it does not make much difference in our technical side. The only part changing is the financial income part in our consolidated P&L.
At the bottom, you can see that our first Q result was TRY 3.8 billion , while last year first quarter was TRY 2.2 billion , and last year's fourth quarter was TRY 4 billion . The changes were quarter-on-quarter change was - 6%, and year-on-year change was 70%. On the consolidated side, the change quarter-on-quarter, again, it was on the negative side, 23%, and year-on-year increase was 75% in our consolidated net profit. On the next slide, you can see how our profit changed throughout quarters. On upper part of our page, you can see our quarter-on-quarter change compared to previous year's fourth quarter. As you might recall, it was TRY 4 billion . The negative effect coming from underwriting technical side was 1.3 billion. Similar negative effect was coming from investment income compared to previous year's fourth quarter.
Whereas we were able to receive TRY 700 million dividend from Anadolu Hayat, which we did not have in the previous quarter. Tax has a positive effect. We reached TRY 3.8 billion . At the bottom of the page, you can see this time year-on-year comparison of our quarterly net profit. Last year's net profit was 2.2 billion. Again, underwriting performance was worse than previous year's first quarter. It was TRY 1.5 billion negative effect, but this time investment income was much stronger compared to previous year's. TRY 3 billion positive effect was coming from investment side. We can reach to TRY 3.8 billion first quarter net profit. On the right-hand side, you can see our quarterly investment income charts. As you see, in last year's first Q, investment income was much weaker compared to other quarters. On the next slide, our balance sheet figures are displayed.
Our assets, as you see, has increased 11%. Our AUM increased 6%, as we have mentioned before. Technical reserves, which consist of unearned premium reserves and outstanding claim reserves, the increase was 10%, and our shareholders' equities increase was 3%. It was a bit weaker compared to other figures as a result of dividends payout, which was TRY 2.75 billion . On the next slide, you can see our average return on average equity. The dark blue chart shows our consolidated return on average, and light blue shows our solo return on average, and the red dotted line shows inflation. As you see, we were able to stay above inflation rate throughout last three years. In the first quarter, we are still above inflation rate. On the right-hand side, as a result of having 20% of Anadolu Hayat stake makes Anadolu Sigorta stronger in terms of MCAP.
We try to show our P/E ratio is much more below average after excluding Anadolu Hayat from our balance sheet, which is 3.5x price over earnings. In our regular balance sheet, it is around 4x our P/E ratio, which makes Anadolu Sigorta share a bit more potential in market actually. This was our last slide. Thanks for listening and attending our webcast for first Q. Hope to see you in upcoming quarters. Erdem, back to you for closure. Do you want to ask any question?
Thank you very much. I presume I am alone on this call, so I will take the opportunity to ask a couple. But firstly, thank you very much for your time and effort towards this presentation. I appreciate it. Most of them, of course, we will address separately, but maybe two clarifications would be helpful for me at this stage. One is, it would be helpful if you tell a little bit more about the trend in the MOD claims ratio. I think you already mentioned the main factor was inflation, but was there anything else that boost the claims in first quarter of 2026? The frequency of the claims or any other trends that might justify the difference between the, for example, first quarter of 2025 and first quarter of 2026.
Especially MOD side is a profitable side for us, and we were the leader of the sector, especially last year. But in this term, most of the companies wanted to come with a competitive pricing in this area. We kind of decreased the prices. It is a little bit not a technical pricing. This is the selling pricing, I mean. After that, we faced this kinds of cumulative combined ratio, I can say.
Mm-hmm. Okay. That is useful. Great.
This is the impact of competitive pricing effects of the markets.
Okay, got it. Thank you. Thank you very much. Maybe one technical one about the dividends. I think you mentioned TRY 2.75 billion. I cannot see this information currently on the website, in English version of the website, so I just want to double-check that it is public information and it is already announced, right?
We paid it. Sorry.
Okay.
We have already paid. You can see it in the website. Let us check in English version of the website. We have disclosed it in the stock exchange market right after our general assembly meeting, actually. Maybe you have missed our disclosures. We have paid it off even.
Yeah. Okay.
Thirtieth of March, end of March, we paid it.
Mm-hmm. Okay, perfect. I will search for the press release about it. Wonderful. That is all in my list for now. Thank you very much again for, as usual, very detailed and very comprehensive presentation.
You are welcome.
Thank you.
Okay. Then, have a good day for you and have a good best result in the next term. Thank you very much. Bye.