Good evening all. Thank you for participating in our third quarter financial results webcast. As you know, we have disclosed our results last week, Friday. Hope you are satisfied with results. The net profit was TRY 3.4 billion in third quarter. As usual, we are going to have a webcast presentation with Erdem Bey, our CFO, for third quarter results. Erdem Bey is going to start the presentation, then I am going to follow with financial figures of our balance sheet and P&L. Then we are going to have a Q&A session. If you have any questions, we are going to be grateful to answer your questions at the end of presentation. Erdem Bey, the floor is yours.
Barış, welcome to Anadolu Sigorta financial presentation 2025 Q3. My name is İbrahim Erdem Esenkaya. Our presentation has 14 slides, and I will present the first nearly eight slides. After this, my colleague, Mr. Şafak will present next slides. I think it will take 25 or 30 minutes. If there is any question, we will pleasure to answer it. First of all, I would like to give short notice that last nine months for on the refreshments of our mind. One important thing that was happened at the beginning of the year, decreasing the discount rate from 35% to 32.5%. This is 250 basis points decreasing effect as nearly TRY 740 million on our financial statement negatively. In third quarter, decreased of discount rate from 32.5% to 30%. Again, 250 basis points decreasing effect was nearly TRY 945 million on our financial statements negatively, I can say.
On the other hand, on March 6th, especially the Monetary Policy Committee had lowered the interest rate by 250 basis points to 42.5%. Central Bank of the Republic of Turkey announced that increase the policy rate 46% in April. As you see, something happened in March and they changed our financial and economic situation. The Monetary Policy Committee also increased the overnight lending rate from 46% to 49%. Finally, last week it was announced 35.5%. In the while, the company general assembly in March decided to pay TRY 2.1 billion dividends and increase the paid capital TRY 500 million to TRY 2 billion with free stock. We finished all procedures and the Capital Markets Board of Turkey registered it. Now our paid capital TRY 2 billion, and most of them are very important for us, especially in this term.
Then we look at the highlights in this term. About profitability, real growth, Anadolu Sigorta in the third quarter premium volume is at strong TRY 67.9 billion, nearly TRY 68 billion. If you compare to last year, it depends on the 46% and inflation rate end of the September 33.3%. If you compare them, we are very strong increasing in this term. Then we look at the real profitability. Trailing 12 months solo ROE stands at 36.4% consolidated 47.8%. Technical outlook discount rate applied, as I said before, the reserve reduced by 2.5 percentage points, nearly 250 basis points. Now 30%, and it affects TRY 944 million gross and TRY 685 million net impact to our financial statement. Cumulative claims ratio increased 1.1 percentage points. End of the first half, it was 80.6% discount rate change impact +2.3 percentage points.
Cumulative combined ratio nearly 110% in this term. When we talk about the assets under management, accelerating assets under management growth and investment income in this term. Assets under management edged up to TRY 72.3 billion , and investment income gained momentum quarterly TRY 7.3 billion in this term. Next slide, please. When we look at the non-life insurance companies. Anadolu Sigorta produced nearly TRY 68 billion premium production and increased 46%. When we look at the sector. The sector premium production reached TRY 731.5 billion in this term, and 45.9% is similar to Anadolu Sigorta. Anadolu Sigorta similar to sector increase in this term. After that, Anadolu Sigorta has the 9.3% market share and the third level, third degree in the non-life insurance market shares. Next slide, please. Premium volume.
When we look at the premium volume and composition in this slide, Anadolu Sigorta and non-life sector, if you compare it in nearly the same increasing percentage, in this term, say, 46%. Quarterly term, Anadolu Sigorta in the third quarter, TRY 23.5 billion and year-to-year, 56.2% increase, and the quarterly 10.2% in this term. If you compare the sector and Anadolu Sigorta share in the premium volume, the motor site, it was the 41%, and the fire site 19%, and the health site 20%, and other site 20%. When we look at the sector motor site 44% and the fire site 18%, and the health site 20% and other site 20%. If you compare the Anadolu Sigorta and sector, there is a differences between the motor site and the fire site. Next slide, please.
When we look at the market share and rank, especially when we look at last year and this year, we have the same market share, 9.3%. There are nearly 13 important branches and three of them we are the first rank, and three of them the second rank, and four of them third rank. We are producing or production all kinds of insurance branches in this term. If you look at the sales channels, our sales channels, of course, the professional agencies, at the same time the each bank branches. Totally 4,100 branches all of Turkey. If you look at the premium production shares, 64% agencies and end of the quarter three. 13.3% bank insurance site and 14.1% broker site this year. If you compare the last year, the Anadolu Sigorta, the action increased last year.
When we look at the sector. One slide before. Thank you. We are the agency tendency companies, and you can see is freely here, especially. When we look at the sector, 58.8%, but in our company 64% in the agencies production. Bank insurance site, if you compare to last year, we decreased just a little bit. Anyway, we are upward than the sector. I mean, the 13.3% and 11.3%. The broker site in the sector is 17.8% and higher than the Anadolu Sigorta in this term. Next slide, please. When we look at the total portfolio and especially the cumulative combined ratio. First quarterly, it was 111%, and after that, the second quarter, it was a little bit decreased. But the third quarter, it was higher than the second quarter.
At the end of the nine months, it is 110.4% in the total portfolio combined ratio in this term. Especially MTPL and fire and natural disaster is very important and affect the combined ratio in this term. Next slide, please. We look at the technical profitability in this slide. We will look at the financial status and activity results of our company. Our assets exceeded TRY 121 billion , which is an increase of nearly 43% compared to previous year. The premium production reached TRY 68 billion , which is an increase of 46% compared to previous year again. Our market share is 9.3%. Our company realized TRY 8.6 billion in its unconsolidated net profit. Net profit value in our consolidated financial statement is TRY 9 billion .
In the technical profitability, when we look at different years, I mean 2021 to nine months 2025, our combined ratio decreasing until 2024. But in this term, it is increased 110%, especially the effect of the discount rate and inflation, of course. Next slide, please. Now, I would like to give the floor to my colleague, Mr. Şafak. Thank you.
Thank you, Erdem Bey. I am going to continue with our investment portfolio. As Erdem Bey told at the beginning of the presentation, our investment portfolio, our AUM portfolio actually reached TRY 72.3 billion at the end of third quarter. When we check the breakdown of our portfolio, as you see, almost half of our portfolio is invested in short-term interest instruments. Our bonds portfolio is 42%, which is invested in TRY bonds. Actually, almost 30% of our portfolio is dollar and euro bonds. We have 5% equity in our portfolio and our commodity and some venture capital funds, invested part is 4%. In the third quarter, our investment income stood at TRY 7.3 billion and our cumulative nine months investment income was almost TRY 17 billion at the end of September. Our quarterly return reached 11.4% in the third quarter.
As you see at the bottom of our slide, the increase in the third quarter of our AUM was 13%, which was TRY 64 billion at the end of second quarter, reached to TRY 72.3 billion at the end of third quarter. On the next slide, you can see our income statement. Quarterly distributed income statement. As you see, on the left-hand side, our income statement in solo, unconsolidated form, and on the right-hand side, its consolidated P&L figures can be seen, and these are quarterly results. As you see, we have beaten both in quarter and year-on-year basis in third quarter financial results. QoQ increase was 16% and year-on-year increase was 40% in unconsolidated P&L, and consolidated P&L increase was 15% QoQ, and year-on-year was 44% at the end of third quarter. On the next slide, you can see cumulative nine-month P&L results.
As we have mentioned, our net profit was TRY 8.6 billion at the end of nine months, with an increase of 10% compared to previous year's nine months results in unconsolidated P&L. Consolidated P&L increase stood at 8%. It was TRY 8.9 billion at the end of this year's nine months, September, and last year it was TRY 8.3 billion. On the next slide, you can see our net profit drivers. First of all, at the left-hand side, you can see quarterly net profits waterfall graphic. As you see, last quarter's net profits was TRY 2.9 billion, and this quarter was TRY 3.5 billion. As you see, our underwriting performance was , around -TRY 636 million. Of course, there was a negative effect coming from discount rate, as Erdem Bey mentioned, and our investment income was much stronger than second quarter.
It was TRY 1.8 billion bigger compared to second quarter investment income. After tax deductions, as you see, our net profit was TRY 3.4 billion. When we compare our net profit with previous year's third quarter, as you see this time, our investment income was stronger. It was TRY 2.8 billion bigger than previous year's third quarter. On the other hand, our underwriting performance was weaker compared to previous years, around TRY 1.5 billion. On the right-hand side, you see our investment income quarterly. It was TRY 5.8 billion in the second quarter, our investment income. This quarter, our investment income boosted, and it was TRY 7.3 billion. Last graph shows our cumulative net profit waterfall graph. As you see, last year's net profit was TRY 7.8 billion. Underwriting performance was TRY 4 billion weaker, while investment income was TRY 4 billion stronger.
At the end of the graph, as you see, our net profit was TRY 8.6 billion. Our balance sheet figures can be seen on this slide, growth performance names. As you see, our total assets increase in nine months was 27%, and our AUM increase was stronger in nine months. It was 30%. At the beginning of the year, our AUM stood at TRY 55 billion, and with an increase of 30%, it is now almost TRY 73 billion. Technical reserves on the liability side of the balance sheet also increased as a result of our premium growth. Of course, outstanding claim reserves are also increasing due to currency and inflation. 32% increase made our technical reserves stood at TRY 67 billion. On last chart, you see our shareholders equity. Nine months increase was 18%.
Just bear in mind, we have distributed TRY 2.1 billion from our shareholders equity this year. Coming to last slide, you can see our return on average equity and some adjusted return on equity on the right-hand side as well. Starting from left-hand side charts. On the left-hand side, you see our trailing 12 months net profit compared to our return on our average equity. As you see, we were able to beat inflation, starting from 2024, and still we managed to beat inflation at end of third quarter. The other chart shows our annualized return on average equity, which is calculated by using our latest quarter results. Going forward, we calculate 52% return on average equity in consolidated form, whereas our solo return on average equity stood at 40%. They were both above CPI rates.
On the right-hand side, we have 20% of Anadolu Hayat in our books, and they are kept, they are booked mark-to-market. When we exclude Anadolu Hayat from our balance sheet and deduct their Market Cap as well, you might see that Anadolu Sigorta is trading a bit discounted compared to peers. As you see, Anadolu Sigorta P/E ratio stands at 3.5, and price-to-book ratio stands at 1.4. It is a bit low compared to our peers, as I have mentioned. This was our last slide. If you have any questions, please, you can write your questions in the chat box, or we can unmute your microphone if you raise your hand so that you can ask your questions verbally. Thanks for listening our presentation. Erdem Bey, I think it is all crystal clear.
Barış, do we have any questions? Do we have any raising hands?
No, I guess. No questions. Erdem Bey, back to you for a wrap up or closer, maybe.
Okay. Thank you very much for joining this, our third quarter presentation. I hope to see you the end of the year presentation. Thank you much. Have a good day. Bye-bye.