Thanks for participating in our 2025 first quarter financial result webcast. As you see on the screen, we are celebrating our 100-year anniversary. Anadolu Sigorta has been a century-year company as of 2025. It is an important year for us. Before we start, I should mention this part, I think. As usual, we are going to have the presentation with our CFO, Erdem Bey, together. Erdem Bey is going to start the presentation, and I am going to continue with financial figures. Erdem Bey, the floor is yours.
Back to you. Okay. Welcome to Anadolu Sigorta financial presentation of 2025, quarter one. Our presentation will be shared by Barış Şafak with my colleague. At the beginning, I would like to brief in the first quarter, and I would like to say something for that. As you see, we finished 2024 with good financial results and began the new year hopeful and with approval for us, because of the 100 years, as Barış told before, and Anadolu Sigorta in 2025. One important thing that was happening this term, decrease the discount rate from 35% to 32.5%, nearly 200 to 250 basis points. Decreasing effects was nearly TRY 740 million over financial statement negatively, firstly. The second important thing that has happened in this term, İstanbul University canceled the diploma of İstanbul Metropolitan Municipality Mayor Ekrem İmamoğlu.
After that, the detention of nearly 100 people, including İstanbul Metropolitan Municipality, and Turkish lira, of course, lost value against the foreign currencies and even BIST 100 Index also closed March 19 as a loss of nearly 9% decreasing. Following this detention on March 19, there was a major loss in Borsa İstanbul index. At its meeting on March 6, Monetary Policy Committee had lowered interest rate 250 basis points to 42.5%. But in April, something changed, and the economy changed, and the Central Bank of the Republic of Turkey announced to that increase the policy rate to 46% in April, I mean. On the other hand, our company general assembly met in March and decided to pay TRY 21 billion dividends and to increase the paid capital from TRY 500 million to TRY 1 billion free stock.
Of course, not the first quarter, but in April, it was important happened in the Turkish insurance sector. Two insurance companies were seized by public authority. I mean, the SEDDK, we say, Insurance and Private Pension Regulation and Supervision Agency. They were important happen in this term, especially in first quarter. Now, we would like to begin our presentation. We will look at the profitability. First of all, the real growth in the first quarter 2025, premium value is at a strong TRY 23.2 billion. If you compare the last year there, 41% increased. If you think that March inflation rate, 38.1%, more than the inflation rate, it was a good result for us about premium production. When we talk about real profitability, trailing the 12 months, solo ROE stands 44.3% consolidated 56% in this term.
When we look at the technical outlook, discount rate applied to technical reserves has been reduced 250 basis and 32.5% in this term. It was affect one of negative impact, nearly TRY 740 million on gross profitability, net impact, nearly TRY 555 million. Adjusted discount rate change combined ratio would have been 6.3 lower in this term. When we look at the asset under management, grow by TRY 3 billion, reaching TRY 58.5 billion. Tight monetary stance is expected to supportive into investment income in remainder of 2023. Next slide, please. When we look at the premium production figure, we can see easily we are below sector. Total premium production TRY 267 billion in this term.
If you compare the last year, it was TRY 178 billion and increased nearly 50% in this term. When we look at the top five companies and 10 companies, Anadolu Sigorta produced TRY 23.2 billion premium production and a 41% increase premium production end of the first quarter. When we look at the market shares, we have got 8.7% market share in this term. Next slide, please. Premium volume and composition. When we look at the premium volume and composition, first quarter 2024 and first quarter of 2025, MTPL increasing 47.2, MOD increasing 24.2, Fire and Natural Disasters nearly 25%. Health branch premium production increasing 91 point. Other branches, nearly 21% increase in this term. If you compare the sector, slightly nine point below the sector in this term. Next slide, please. Market share and rank.
When we look at this chart, as you see, there are 13 different branches. In three of them we are the first degree, and two of them we are the second degree or second rank, and three of them third rank, and two of them fourth rank, one of them fifth rank, and two of them sixth rank in this market share listed. When we look at the totally, we are the third degree in the total premium production market share in this term with 8.7% in this term. Next slide, please. When we look at the sales channel, we have got nearly 2,700 agencies and more than 1,000 bank branches. Totally 3,700 branches. We are producing the premium production in all of Turkey.
When we look at the premium production sales channel, 61% with the agencies, and if you compare the sector, it was 56%. 14% in the bancassurance side. When we look at the sector, it was 12%. In the broker side, when we look at the broker side in our company, it is 18%. When we look at the sector, 18% is similar degree. After this schedule, we can say that our company is the agency tendency company, and we are producing our premium production from the depends on the agencies mostly, we can say. Next slide, please. When we look at the branch outlook, especially here in the quarter late, first of all, there are on the left side, left upside, total portfolio and branches, MOD, MTPL, Fire and Natural Disasters, health, and others.
When we look at the total portfolio quarter to quarter in the right side, in the last 12 months, I mean, the cumulate combined ratio from 105 to 107, nearly only 2 points increasing in this term. If we take your attention to at the beginning of the year, the discount rate changing, it is quite acceptable result for us when we look at the total portfolio. When we look at the MTPL side, our quarterly combined ratio from third quarter 2024 to first quarter 2025 from 90% to 79% in this term. Nearly 11 points decreasing in this term. It is a good result for us, especially for profitability in this term. MTPL side is a quite problem in Turkish insurance sector. As the effect of the discount rate, its combined ratio increased nearly 11 points in this term, and 151.7 end of the first quarter.
Totally, when we look at the last 12 months, it was 143.7. Of course, it affects the discount rate, you can see easily. In Fire and Natural Disasters, when we look at, there is an increasing here, but the main effect, again, the discount rate effect here. Health side, there is quite decreasing here because when we look at the end of the year, last quarter in 2024, it was 144, but now 114 especially is a good result for us, and we would like to increase our premium production in the health side, especially in 2025 in this branch. The other side, when we look at, there is a slightly hike combined ratio, 90, 94.9, nearly 95%. But if you compare the other branches under the 100, it is a good result for us anyway. Next slide, please.
As you see, the all combined ratio increase, the 12 point basis discount rate effect is nearly 6 or 7 points here. When we look at our financial status and activity results of our company, our exempt since our assets exceeded TRY 106.5 billion with an increase in nearly 56% compared to previous year. The premium production reached TRY 23.2 billion. We can increase 41% compared to previous year. As you see, the market share 9% in this term. When we compare the last year's first quarter and this year first quarter, our claims ratio from 69.5 to 81.4 increased and combined ratio 100.4 to 110.7 increased again. But it affect a special discount rate here, nearly 6.5 point in the schedule. Next slide, please. Now, investment portfolio. Our company realized that in TRY 3 billion unconsolidated net profit.
In this term, I would like to give sentence my colleague, Mr. Şafak. Thank you.
I'm going to continue with investment portfolio from now on. As you see on the chart, at the end of the quarter, our portfolio assets under management portfolio reached TRY 58.5 billion, which was TRY 55.5 billion at the end of the year. 60% of our AUM, which is almost TRY 35 billion, is invested in short-term interest instruments. 21% of portfolio is invested in bonds. We have some part in commodity, gold, silver-like instruments, and we have some venture capital exposure as well, which is 33%. Our direct equity portfolio is 12%, and we have some hedge funds, which is around TRY 2 billion at the end of the quarter. In the first quarter, our investment income was TRY 3.9 billion. Anadolu Hayat, Anadolu Life dividend is not included in this amount, which makes quarterly portfolio return 7.1%.
When we continue with our income statement, summarized income statement. You see on the left-hand side unconsolidated figures, right-hand side consolidated figures. Our technical income compared to previous year's first quarter increased 43%. Technical expenses increase was a bit higher, 57%, due to mainly our reserves increase. Outstanding claim reserves increase affected negatively technical expenses. Net financial income increase was 12%, and after tax and deferred tax deduction, our net profit stood at TRY 2.3 billion, 21% negative compared to previous year's first quarter. On consolidated form, our net profit was TRY 1.2 billion at the end of first quarter. On the next slide, you can see our balance sheet figures. Total assets increase was 11.1%. In the first Q, our AUM increased 5.4%, as I mentioned in the previous slide.
On the right-hand side, you see our technical reserves, which is sum of outstanding claims on unearned premium reserves. Total of these two technical reserves increase was 14%. Again, there was a negative impact coming from the decreased discount rate. At the right-hand side of our slide, you see our shareholders' equity. It decreased 5.1%, and it was TRY 29 billion. There was some negative effect coming from Anadolu Life stock at the end of the first quarter. The decrease was around 20%. Then we continue with our net profit breakdown of our financial side. As you might recall, our technical earnings stood at -TRY 1.4 billion. On the non-technical side, the breakdown is seen on the left-hand side of the presentation, TRY 4.3 billion investment and dividend income. We had 50 million negative impact coming from depreciation. Our provisions from bad debts was 2.265 million.
The discount positively affected our net profit, 60 million, and deferred tax totally was -TRY 465 million. Which sums up to TRY 2.2 billion net profit. Net profit drivers, you see the waterfall graph. Compared to previous years, the effect of underwriting was negative, which was 1.3 billion. Investment was flat, -TRY 91 million. Tax effect was positive, 600, and dividend impact was also positive, and other items was almost flat. Again, which brings us to our first quarter net profit. On the next slide, this is the last slide you are going to see. You can see our return on average equity at the end of first quarter. With trailing net profit results, our average return on equity stood at 56% in terms of unconsolidated net profit, and 44% in solo.
I'm sorry, 56% consolidated profit, and solo unconsolidated profit return on average equity stood at 44% at the end of the first quarter. This is all from our presentation side. We can continue with Q&A session. You just can write your questions to our chat box. We are going to read and reply your questions, or you can ask verbally. If you raise your hand, we are going to unmute your microphone so that you can ask. Thank you for listening our presentation. I think there is no question. Everything is clear. It's clear till Christmas, I guess, Erdem Bey. Back to you for the closing of our meeting. Shall we close the meeting, Erdem Bey?
If there's no question, thank you very much for joining us, and see you next presentation in better days. Thank you very much. Bye.
Thank you