Hello. Welcome to Anadolu Sigorta's 2025 fourth quarter, or in other words, 2025 all year financial results. As you know, we have disclosed our financial results yesterday. Now we are going to have a presentation related with our fourth quarter financial and also whole year as well. As usual, Erdem Bey, our CFO, and I will be making the presentation. Erdem Bey is going to start the presentation, then I'm going to follow with some slides. At the end of our presentation, we are going to have a Q&A session as usual. Again, thank you all for participating our webcast. Erdem Bey, the floor is yours.
Thank you, Barış. Welcome to Anadolu Sigorta financial presentation 2025, quarter four . My name is Erdem Esenkaya. Our presentation has 16 slides. I will present first eight slides, and after that, until investment portfolio. After that, my colleague, Mr. Şafak, will present next slides. I think that will take nearly 30 minutes. If there's any question, we will be pleased to answer it in the end of our presentation. First of all, I would like to give short notice about last year's for on the refreshments of our minds. I think it's important, the Central Bank of the Republic of Türkiye implemented a total reduction of 950 basis in the policy interest rate between January 2025 and December 2025.
It was very important. At the beginning of the year, it was very important because 2029 was our anniversary, 100 years old for our company. So we are the full motivation at the beginning. On the other hand, we began very good. But in March term, there is something changed and there is some volatility in March term. Of course, this term is affect the second quarter and third quarter too. In this time, one important thing that happened at beginning of the year, decreasing of discount rate from 35%- 32.5%, nearly 250 basis decreasing effect was nearly TRY 750 million or financial statements negatively in this term.
The third quarter decrease of discount rate again from 32.5%- 30%. This 250 basis again, decreasing and affect nearly TRY 950 million . Fourth quarter, in addition, an additional decrease and discount rates change from 30%- 29% and 100 basis in this term. It affect our financial statements TRY 310 million negatively in this term. On the other hand, minimum wage regulated in this term, and in December, public authority decided to minimum wage is 27% increase in this term. This affect our financial statement, gross TRY 200 million and net TRY 140 million .
When we look at all year totally, the expense effect on our 25 results, TRY 2.3 billion, approximately gross and t he net effect after deducting tax is TRY 1.7 billion in this term. When we look at our financial statement, it is important to take this attention. First of all, when we talk about the highlights and profitability is very important for us. In this term, we have got a real growth. In 2029, premium volume is at least strong, TRY 97.9 billion, nearly TRY 98 billion premium production. If we compare to last year, 141% increased.
Real profitability was in this term, 12 months solo ROA stands at 35.4% and consolidated 45.3%. When we look at the technical outlook, discount rate, as I said before, applied the reserve reduct 1.29% in this term, it affect TRY 310 million net impact in this term. Quarterly combined ratio decreased by 4 basis to, if we compare the third quarter 2025 to 107.8%. Assets under management. When we talk about assets under management, accelerating the growth and investment income. Assets under management is at TRY 78.3 billion.
In this term, if you compare to last year, the 41% increased, investment income sustained momentum quarterly TRY 7.4 billion. Next slide, please. When we look at the non-life insurance market and market share in this slide, we have got third degree in this premium production and the market share in this term. Last year, we produced nearly TRY 70 billion, but this term we produced TRY 98 billion and a 41% increase if you compare to last year.
Especially when we look at the sector, the sector increasing 41.3%, our production increase percentage is similar to sector, a little bit under the sector, but near the sector, I can say. Our market share, third degree, 9.4% in this term, again, last year. Next slide, please. When we look at the premium volume and composition, MOD and MTPL side is very strong our company. Anyway, in this term, especially the MTPL side, healthy side, and fire and natural disaster side is higher than the sector. MOD side especially is very important for us because as I see after that, our slide, you will see the one marked in this level.
Next slide, please. Yes, I am talking about this, market share. When we look at the market share and rank, MOD watercraft and transportation side, we are the overall rank number one. Aircraft liability and accident side, we are the number two. General liability, five financial losses, and the third rank. I can say in the 13 branches, we have got in five when we look at the ranks. Totally, we are the 9.4% market share with third degree. Next slide, please. When we look at the sales channel, we are going on the agency tendency premium production. If we compare to last year, we are above the last year's agency premium production side.
But if we compare the sectors, nearly three points more than the sector in the agency side. On the other hand, the bank insurance side is very important for us, in this side, we are above the sector again. On the other hand, the broker side and the other side, I mean, the digital and direct premium production side, sector is higher than the whole company premium production. Next slide, please. When we look at the branch outlook, as I said before, discount rate affect our loss ratio and the combined ratio together. Here, you can see the combined ratio, five points increase if you compare to last year.
But of course, in our portfolio, but 1 point discount rate affect our 1.7x loss ratio or the combined ratio increase in this term, the real effect. When we calculated it, nearly four and a half or five points depends on the discount rate changing and the minimum wage changing effect our financial statement in this term. Next slide, please. When we look at the technical profitability side, as you see, the combined ratio is increased to 5 points. But as I said before, especially discount rate affect 4.5 points nearly.
Only 0.5 points side is a little bit differences from the last year. When we look at the financial status and activity results for our company are exempt. It is seen that our assets exited TRY 134 billion with an increase nearly 40% increase compared to previous year. The premium production reached TRY 97.9 billion with an increase of 41.7% compared to previous year. Our market share, as I said before, 9.3%. Our company realized TRY 12.7 billion unconsolidated net profit, and the net profit value in our consolidated financial statement is TRY 13.4 billion . Now, I would like to give sentence to my colleague, Mr. Şafak.
Thank you. Thank you, Erdem Bey. I am going to continue from now on. On this slide, as you see, our investment portfolio breakdown can be seen on the left-hand side of the slide. Our AUM, which is TRY 78.3 billion at the end of the year, is invested in bonds, 41%, short-term interest instruments, 47%, which are mainly time deposits, TRY time deposits, as well as some money funds and also some FX time deposits also. We have 5% equity, and commodity and venture capital and other funds, 7% is invested as at the end of the year.
In 2025, our quarterly investment income was TRY 7.4 billion , which made 12 months results cumulative investment income reached up to TRY 24.2 billion . Our quarterly portfolio yield was 9.8%, and our cumulative yield return was 44% at the end of the year. On the right-hand side at the bottom of the presentation, you can see our breakdown of our investment portfolio in terms of quarters. On the next slide, our income statement can be seen. It is compared to last year's fourth quarter and this year's third quarter, and of course, this year's fourth quarter can be seen.
On the left-hand side, our unconsolidated P&L figures can be seen, and on the right-hand side, as you see, we consolidate Anadolu Life, which we have 20% stake of. It is an equity pickup method. It is a consolidated equity pickup method, so our consolidated figures are a bit higher than our unconsolidated figures. At the bottom line, our net profit at the end of this quarter stood at TRY 4 billion , which was 19% higher than this year's third quarter and 36% higher than last year's fourth quarter.
Our consolidated figures were similar, 20% increase in QoQ figures and 37% increase in year-on-year figures. Our consolidated net profit at the end of the year at the fourth quarter was TRY 4.5 billion . On the next slide, you can see our income statement, which is 12 months results, which shows whole year. Our net profit in total increased 17% in solo figures, consolidated figures increase was 16%, and our consolidated 12 months net profit was TRY 13.4 billion . On the next slide, you can see some waterfall graphs which shows our profit drivers.
First chart shows this year's third quarter versus this year's last quarter breakdown. In the third quarter, as you might recall, our net profit stood at TRY 3.4 billion, and you can see how we have reached to TRY 4 billion. The underwriting performance was better compared to the third quarter, as well as investment income performance was better. Of course, as a result of increasing profit, tax expenses were higher and other expenses like depreciation, release count, et cetera, were also higher than the third quarter, and we have reached TRY 4 billion .
When we compare our net profit with last year's fourth quarter, again, in a waterfall graph, as you see, our underwriting performance a bit worse than last year's fourth quarter, whereas our investment performance was much higher with TRY 3 billion. Dividend was similar, zero. Tax was a bit higher, again, related with higher profit. Our other expenses also were TRY 1 billion higher compared to our last year's fourth quarter. On the right-hand side at the bottom of the presentation, you can see full year breakdown waterfall graph.
Our last year's net profit, as you might recall, was TRY 10.6 billion. The underwriting performance worsened, unfortunately, this year with TRY 4 billion , but investment income was much higher with TRY 7 billion . Dividend was higher. Anadolu Hayat dividend was TRY 300 million bigger than previous year, and tax and other expenses were a bit bigger than last year. As a result, we have reached TRY 12.7 billion . On the upper side of our presentation, you can see our quarterly investment income. As you can see, we have reached to TRY 7 billion level, and which we think we are going to be increasing in upcoming quarters in 2026.
On the next slide, our balance sheet figures can be seen. On the left-hand side, our assets. On the right-hand side are liabilities. Is placed. Our total assets has increased 40% in 2025, and they reached to TRY 134 billion . Our assets under management increase in TRY was similar, 41% increase. We have experienced 41% increase in 2025, and as I mentioned before, our AUM reached up to TRY 78.3 billion . Right next to that chart, you can see our AUM trend from 2021- 2025 this time in USD figures. Even we look in USD, you can see our AUM has reached up to $1.8 billion , which is a compound average growth rate is 21%.
On the right-hand side, our technical reserves, which consist of our standing claim reserves and unearned premium reserves, they have also increased, related with premium increase, of course, 47%. Our technical reserves reached to TRY 75.6 billion . Our shareholders equity was on the green side as well, 34% increase, and our equity was TRY 41.3 billion at the end of the year. We are coming to our last page. Return on average equity charts can be seen on the left-hand side again. You can see the trend coming from 2021.
The dark blue one shows our consolidated return on average equity, and light blue shows our unconsolidated return on average equity. The red line shows inflation rate. As you see, in 2025, our average return on equity stood at 45.3%, and solo ROE again stood at 35.4%, which were both above inflation. Just below that chart, we have calculated quarterly ROEs, which are annualized. At the end of fourth quarter, our quarterly calculated return on average equity was 54% in unconsolidated figures and 42% in consolidated figures, and 42% in unconsolidated figures.
On the right-hand side, I just mentioned that we have 20% stake of Anadolu Hayat, and they are also a listed company. They are also leader in life sector in Türkiye. When we adjust our ROE and our other ratios like P/E ratio and price to earnings and price-to-book ratios, you can see that Anadolu Sigorta stake has been trading at really discounted levels. This was our last slide. As I have said, thank you for participating and listening our presentation. We can proceed to Q&A session. You can raise your hand if you have any questions, or you can type it in the chat box.
We can read and answer your questions. You can just ask verbally if you have questions. You can raise your hand, and we are going to unmute your microphone so that you can ask verbally as well. Thanks for listening. Erdem Bey, I think all is crystal clear, so we don't have any raised hands as far as I see, and we don't have any questions in our chat box. Erdem, is that right? Yes. No questions.
I think it is clear. If there's any question after that, of course, you can ask anytime to our department and ask us, and don't hesitate any question it. Okay, thank you very much for joining our presentation. See you. Bye.
Have a good weekend. Thank you.
Thank you.