Good everyone. It's time. I think we can start our conference call. Welcome to Anadolu Sigorta's second quarter earnings call. As you might recall, we have disclosed our second quarter results last night, and today we are going to have a meeting related with these results. Thanks in advance for participating our call. As usual, we'll be making the presentation with Erdem Bey, our CFO. He's going to start the presentation, I'm going to continue with the financial figures, and at the end of the presentation, we are going to have a Q&A session. You can either ask your questions written in the chat box, or you can ask via microphone. We are going to unmute your microphone if you raise your hand. I'm going to give the floor to Erdem Bey. Erdem Bey?
Thank you, Barış. Welcome to Anadolu Sigorta financial presentation 2024, quarter two. My name is Erdem Esenkaya. Our presentation has three different titles: company and market overview, technical results, and financial highlights. I will present company and market overview and technical results. After that, my colleague, Mr. Şafak, will present the financial highlights. I think it will take nearly 30 minutes, 35 minutes. As Şafak says, if there's any question, we will pleasure to answer it. At the beginning, I would like the value of the first six months. One of the important agenda items of the second quarter in our country was whether there would be an increase, similar to exchange rate attack experienced after the election last year, following the local elections. The increasing dollar demand of residents before the elections decreased after the elections, and the U.S. dollar demand gave way to TL demand.
The TL deposit interest rate, which reached 53 percentage or 54 percenatge, something like that, monthly in April, and attach the attention of international investors and help ensure the high portfolio inflow of the Turkey in this term. In order to accelerate the exit from, we say the Kur Korumalı Mevduat currency- protected deposits and encourage the TL deposits, the required reserves, a high interest rate application was implemented for conversions from currency-protected deposits to TL deposit. The Central Bank took various steps, such as increasing required reserves, sterilizing TL in the market in this term, and thus ensuring that monthly deposit rates were in range 55 and 57 percentage in May, while the slowdown in the loans continued towards the end of the second quarter.
In these highlights, we can go to sector and when we look at the sector premium production reached TRY 337 billion , and year-to-year increasing 81.3 percentage in this term, and a growth above CPI 5.66 percentage in this term again. The motor branches, MOD, and MTPL, new calculation method enforced in June 2024, 3.25 percentage in this term. Again, in this term, no mid-year minimum wage hike. Financial conditions, when we look at the financial conditions, Central Bank stood at 50 percentage in this term. TL depreciation below CPI, 1.46 percentage in quarter two in 2024, and the CPI 8.2 pecentage. When we look at Borsa Istanbul exchange, XU100 rises 16.3 percentage, 2024, quarter two. Next slide, please. Okay, thank you. When we look at top 10 non-life companies in the sector, we look at the premium production figure, we can see easily that we are below sector.
Total non-life premium production, 233 billion TRY end of the quarter two in 2024. Last year, same term, it was TRY 186 billion . It shows the 81.3 percentage increase. Anadolu Sigorta premium production increase rate is lower than the sector premium production increase rate in this term. When we look at the pie chart, we can see the distribution of production share by companies. 15 percentage Türkiye, 11 percentage Allianz, and 9 percentage Anadolu . We are the three-year range in the production share in the sector. When we look at the highlights, Anadolu Sigorta improvement in MOD claims ratio, 57 percentage. In the first quarter, it was 60 percentage. There is a good improvement in this area. Strong growth in health branches, 133 percentage in this term, and bancassurance premium above sector average. It quite takes attention in this point.
When we look at the MTPL premium growth, 56 percentage in first half of 2024. MTPL claims ratio, 98.6 percentage, and 167 percentage in the 2023 first half. When we look at the assets under management reached TRY 41.5 billion in this term, I mean the second quarter. We add TRY 5.1 billion to our assets under management. Time deposit compound yield, when we look at that, 64 percentage. Highlights. When we look at the highlights, branch breakdown growth rate. If you look at the Anadolu Sigorta and the sector, the percentages are quite similar, but only one point or two point differences. When we look at the motor side in Anadolu Sigorta, 40 percentage, sector 42 percentage. Fire, there is quite differences here. Fire 21 percentage, and the sector 17 percentage. Health in sector 19 percentage, and in Anadolu Sigorta 18 percentage in this term. Next slide, please.
When we look at the premium production, especially if you compare the sector, the sector 81.3 percentage increase, as I said before, TRY 337 billion premium production in this term. When we look at our premium production, TRY 31.5 billion and nearly 73 percentage increase in all total premium production. Next slide, please. When we look at the market share, our company has succeeded in winning two first places, four second places, and four third places in 12 main branches. As I said before, we are selling all kind of branches, and we are facing the all kind of branches, not only traffic, not only MOD or MTPL or fire. We are value in the any branches in this sector. Next slide, please. When we look at the net profit side, the financial status and activity results of our company are examined.
It is seen that our assets exceeded TRY 82 billion , with an increase nearly 80 percentage, 79 percentage, 80 percentage, compared to previous year. Premium production at TRY 31.5 billion increases 73 percentage in this term compared to last year. As a result of the premium increase realized or increase the market share and reach the 9 percentage, our company realized TRY 5.4 billion , an unconsolidated net profit, nearly TRY 7 billion in this term. Next slide, please. When we look at the distribution channels, as I said before, our company premium production depends on the mostly agency side, but in this term, there are 3 percentage decrease in this term. Anyway, if you look at and compare the sector, we are above the sector in agency-side premium production. Maybe the bancassurance side quite takes attention in this position.
Last year in this term, it was 13 percentage, but now 14 percentage, and the sector 13 percentage. We would like to increase our premium production side in the bancassurance, and we are trying to improve. In this term, again, the broker-side premium production 5 point clause in this term. Next slide, please. When we look at the technical sides, accident and health together, when we look at this page and the gross premium writing, TRY 271 million in this term, and 111 percentage increase, and claims 18.2 percentage increase, and the combined ratio decreased to 2.1 percentage in this term. Accident side is very good and profitable for us in this term. When we look at the health side and the premium production increase 138 percentage, nearly 38 percentage increase, and SAPD declines, net 181.5 percentage increase, and the combined ratio, 9.6 point increase in this term.
Health branch is a very strategic branch for us. We would like to improve and grow ourselves and all branches in this side. But the claims ratio and the combined ratio are high because it is very difficult to control the claims in the health side. But in the future, we would like to improve ourselves and at the same time, to control the claims, health claims here. Next slide, please. When we look at the MOD side, MOD side is profitable and very effective and good side for us. When we look at the premium production, 35.1 percentage in this term, and the claims net 80, 89, sorry, 58.4 percentage increase in this term, and the combined ratio, nearly 1 point decreased. As I said before, MOD side, we would like to improve, at the same time control it.
When we look at the MTPL side, MTPL side, nearly 80 percentage increase in this term. The claims is nearly 22 percentage increase, and the combined ratio, nearly 13 point decrease in this term. Of course, MTPL side, combined ratio decrease is very important for financial statement and profit. So we are taking attention these branches. The fire and natural disaster side, our premium production increased to 55 percentage increase, and claims side, 60 percentage decrease in this term, and the combined ratio, 90 percentage decrease.
It is a good improve for us, but it depends on especially the risk research and to choose the risk after that little bit chance. I think so. But this improvement, of course, affect our financial statement positively. General losses. When we look at general losses, 45.3 increased gross premium production writing, and claims net, 12.3 decreased, and the combined ratio, 34.3 decrease in this term.
Next slide, please. When we look at the profitability and the combined ratio, we have got very good improvements in this side. As you see, our combined ratio is decreased from 121- 101. It is very good improving for us, nearly 20 points decrease in this term. At the same time, the claim ratio from 95.9- 73.1 in this term, again, because, again, we are choosing the risk at this term, and we didn't use any aggressive pricing and the marketing pricing in this term. Next slide, please. Okay, thank you very much. In this position, I would like to give sentence to my colleague, Mr. Şafak. Thank you.
Thank you, Erdem Bey. I am going to continue with financial figures, as I have mentioned at the beginning of the presentation. As you see, there are balance figures on the screen. On the left-hand side, our total assets trend can be seen. We had achieved a 40% increase in the first half of this year, and our total asset amount is TL 81.5 billion . Our assets under management portfolio had an increase with 30%, and now we are beginning the second half of the year with TL 41.5 billion . Our liability side, the biggest part comes from our technical reserves, as you know. Technical reserves increase in the first half was 18%. It was a bit below our own and total assets amount. Mainly related with FX stability and the minimum wage increase wasn't expected, and it didn't happen, as you know.
Our technical reserves had advantage, were positively affected from these two financial news actually. Our shareholders' equity, the right-hand side, the increase was 90%. Anadolu Hayat is booked with mark-to-market value in our shareholders' equity. The jump in Anadolu Hayat's market price affected our shareholders' equity positively. Almost TL 7.5 billion effect comes from Anadolu Life stock price. Our income statement, we have given two income statements in this presentation. The first one is first half compared to last year's first half. Our technical income in the first half increase was on the left-hand side. The unconsolidated figures are placed, and on the right-hand side, the consolidated figures can be seen. Technical income increase was 86% in the first half of the year compared to previous year's first half, and technical expenses increase was below technical income. It was 56%.
Financial income increase was 27%, and we were able to achieve TL 7.2, 7.1 billion financial income in the first half. After tax deductions, our increase in net profit was 87%, and we achieved TL 5.4 billion. I should also underline, you might see the notes just below the page, that the transferred financial income is excluded from these tables. We do transfer our financial incomes to technical side, but while we are preparing this presentation, this slide, we are excluding those figures. On the next slide, our Q on Q income statement can be seen. Last year's second quarter is compared to this year's second quarter. This time, technical income increase was 73%, 9.9 technical income was achieved in the second quarter, and technical expenses increase was 52%, and financial income was 24% below last year.
You might remember the FX increase had an important weight in our financial income last year, and mainly due to FX increase, our financial income last year was bigger than this year's financial income. After tax deduction, our net profit was 15% below last year's second quarter in solo form and consolidated form, it was 12% below, and we achieved TL 2.8 billion consolidated net profit in the second quarter of this year. When we look at the breakdown of our non-technical side, on the right-hand side, you might see the figures.
At the end of first half, our technical earnings was almost at break-even point. As you know, our combined ratio was 1.1%, so technical earnings was TL -223 million , almost zero. After that, our financial side or non-technical side breakdown investment income was TL 7.7 billion. Anadolu Hayat dividend was TL 200 million. Amortization was TL 73 million.
We booked recovery provisions and bad debt provisions was something like TL 5 million , and re-discount and tax was over TL 1 billion in the first half of this year. We can reach to TL 5.4 billion net income just at the end of the table. When we look at our return on average equity, we might see a peak at 2023. In the first half, calculated with 12 months trailing profit, our consolidated ROE stood at 71%, and our unconsolidated ROE was 51 % at the end of first half. On the last page, as usual, you can see our investment portfolio breakdown, which is TL 41 billion . Funds takes an important place in the breakdown. 39% of our portfolio is invested in funds, mainly money market funds. 23% is invested in bonds, 12% stocks, and time deposits is 24%.
As we have mentioned, investment income was TL 7.7 billion , which gives us a return ratio of 23.3% in the first half. This was all for our second quarter presentation. If we can proceed with a Q&A session, please ask your questions in the chat box, or you can raise your hand also, we can unmute your microphone to ask your questions. Thanks for listening us again. I think we don't have any questions, Erdem Bey, as far as I see from the screen. No written questions or no raised hands either. Back to you for the closure, Erdem Bey.
Okay. Thank you very much for joining our first half presentation, and see you the next third quarter presentation in the better results and better day than we have today. Thank you very much for joining again. Bye.