Good afternoon, everybody. Thanks for participating in our first quarter financial results webcast. Today, as usual, Erdem Esenkaya, our CFO, and I will be hosting the webcast. Erdem Bey is going to start with the technical results, and I'll continue with financial side of the P&L and our investment portfolio. Erdem Bey, the floor is yours.
Thank you, Barış.
Go ahead.
Hello, everybody, and welcome. Welcome to Anadolu Sigorta financial presentation on 2023 quarter first. My name is Erdem Esenkaya. Our presentation has three different titles: company and market overview, technical results, and financial highlights. As Barış said, I will present company market and overview. After that, technical results. Technical result. After that, my colleague, Şafak, will present the financial highlights.
I think it will take nearly 40-45 minutes. After that, if there's any question, we will pleasure to answer it. We were together nearly three months ago, end of the 2022 financial highlights. We were talking about it. At the beginning of the year, we were thinking only the parliamentary and presentational elections for Turkey is very important for us. We were thinking that. But when we met in February, 6th of February, it was a black Monday for us.
There's a big earthquake in southeast of Turkey, and officially 50,000 people, more than 50,000 people, I guess 100 maybe more than, thousand people died there. Now, nearly two months later, we are talking about the first quarter. Let's begin the presentation, please, Barış. Company and market overview. First of all, maybe I can say something for it.
Yes. First of all, it is very important, Turkey will hold to parliament and presentation election nearly 10 days later. This will be important for us. A strong earthquake was happened in southeastern Turkey, centered Kahramanmaraş, and after that, the Hatay. After that, with our mission, we began to help our personal, our agencies, our partners, and region people from first day, and pay indemnity and pay advance at the beginning of the second week.
Until now, we have nearly 10,500 clients files be opened and nearly TRY 10 billion or TRY 12 billion , we have seen the demand. Approximately $500 million. We finalized nearly 6,500 client file in this term, and more than TRY 2 billion we paid, and more than $100 million. This is an H&A, 98% reinsurance share and TRY 138 million , nearly $16 million or $17 million from equalization provision.
So there's no unfortunate effect to our financial statement when we think that. On the other hand, we have seen the Constitutional Court decision are important improvements in this term for us. When we look at the highlights in the sectors, especially, prime production reached prime production at TRY 92 billion and 146.5 percentage year to date increasing, and two devastating earthquakes in southeastern Turkey, as I said before. Motor branches, MOD and MTPL.
MTPL gradual CAP increase in quarter one, 4.5 percentage per month. MOD policy prices continue increasing in this term, and Constitutional Court's cancellation decision weighs on provisions. Financial measures, increasing bank deposit rates, low volatility in FX markets, 3.47 percentage depreciation against current basket in 2023 quarter one. Next slide, please. When we look at the premium production figure, we can see that we blow the sector. Total non-life premium production is TRY 91.9 billion , 2023 quarter one. Last year, same term, it was TRY 37.3 billion . It shows 146.5 percentage increasing. Anadolu Sigorta premium production increase rate lower than sector premium production increase rate. When we look at the pie chart, we can see the distribution of production share companies.
When we compare to last year, we can say they are nearly one point decreasing for us and 10 point percentage production share in the sector of premium production. Highlights, Anadolu Sigorta. When we look at the core business, MOD claims ratio record 54%. Solid Reinsurance coverage, earthquake net loss TRY 137 million . Strong household policy demand post-disaster, a 292 percentage premium increase in two months.
When we look at the MTPL growth 106 percentage etc . Sector growth 166 percentage in 2023 quarter one. Policies sold at CAP prices. MTPL policies being sold at CAP prices and Constitutional Court decision affect the IBNR TRY 520 million. When we look at assets under management and reached to TRY 18.6 billion , additional TRY 1.1 billion in quarter one as of 21 March. Increase the rate of deposit in portfolio. Next slide, please.
When we talk about the highlights, branch breakdown and grow rate, Anadolu Sigorta and sector. Health, motor, and others. When we compare the health, we increased the last year is a good improved in this branch. If we compare the sector, we are the similar increasing 170%, 171%. When we look at the motor site, quite increasing for us if we compare the last term for Anadolu Sigorta for us from 83 percentage to 130percentage.
But if we compare the sector, we are lower than the sector increasing. The sector increasing 170 percentage. When we look at the other side, we increased 96 percentage. Sector, 115 increasing this term. Next slide, please. When we look at the premium production, all premium production TRY 9.1 billion. When we compare to last year, 120.5 percentage increasing year-to-date when we compare. Non-life 146.5 increasing.
When we look at here, MTPL increasing on the control. Which I think the Yes. Then presentation now, okay. Okay, thank you. If you look at the branches, MTPL, motor, fire, and nature, all increasing MOD and fire and MTPL lower than the sector. But on the other hand, the health is near the sector, and totally a 120.5 percentage increasing in this term. Next slide, please. When we look at the market share, we are in top two. First of all, aircraft liability is the first rank here, and first place and several second places. On the other hand, the two third places in 13 main branches. In this term, maybe we are not the first, maybe too much, but at the beginning of the year and the first quarter, our portfolio is normal for us, I think so.
End of the year could be a more high level in this premium production. But I must say we haven't got any target to one or the first to be here. Next slide, please. When we look at the net profit side, financial status and the activity results of our company are exempt. It is seen that our assets exceeded TRY 35.2 billion, which an increase the nearly 115 percentage compared to previous year. The premium production reached TRY 9.1 billion, with an increase 120.5 percentage compared to previous year again. As a result of the premium increase realized, our market share nearly 10 percentage.
On the other hand, regarding the determination of compensation for loss of value, permanent disability, and lack of support in the general conditions of MTPL, which decision we faced on 4 December 2021 with the Constitutional Court of Turkey decision, it affect all provisions are canceled. While the negative impact or cancellation decision on our financial results was approximately TRY 520.8 billion, the net loss figure out of company in the first quarter of 2023, TRY 117.1 million.
Next slide, please. When we look at the distribution channel, we have got 2,700 channels, especially the professional agencies and more than 1,000 bank agencies. Totally 3,700 branches. It's a good network for us for selling our policies. When we compare the sector, we are again the agency tendency companies. You can see here more than the sectors, especially in agency side.
But this term, there is a quite important increasing in bank insurance side, nearly two point. Last year it was 13 percentage, but this term, 15 percentage increasing. Or, sorry, not increasing, it is a share. So it is very good improvement for us about differences of the premium production share. Next slide, please. Yes, technical results. Yes. In accident and health, when we compare the last year, first of all, the accident, gross premium written from TRY 80 million to TRY 144 million , 79.3 percentage increasing.
Claims net here increases too much, but it is a small premium production here. Combined ratio, 6.1% increasing here. Into health side, we have got a good increase in premium production increasing here. And the combined ratio, 20% -, is a good result for us. As I said before, we would like to increase our health premium in the future. Next slide, please.
When we look at the MOD side, we have got a strong gross premium written, about 155 percentage increasing. And the claims net, 51.7 percentage increasing. And combined ratio decreased 73.2%. It is a good result for us, and we are waiting to earn money in this branch in next term, especially in 2023. But on the other hand, MTPL is not good, very affect our financial situation, especially increasing premium production, increasing 150.7% increasing.
Claims net 398 percentage. It depends on the Constitutional Court decision because the calculation affect this side. And combined ratio increased 122.6 percentage in this branch. When we look at the fire and natural disaster, premium production increasing 118.5% increasing. And the clients net, 68.1 percentage increasing. And combined ratio decreased 32.6% in this term. We would like to get earn money about this fire and natural disaster in 2023 too.
When we look at the general losses, the production increasing to 104.5 percentage increasing and claims at 10.5% net decreasing and combined ratio 43.8 % decreasing in this term. Next slide, please. When we look at the profitability and combined ratio. We have got good results at some places, but MTPL affect negatively, especially, mostly the, again, I would like to say Constitutional Court decision in this term and totally last year, 122.6% to 125.6% combined ratio.
If you compare the last year, nearly three points increasing here. When we look at the claim ratio, total 91.4% last year, and this year, 98 point something percentage this year. It is a pity in this sector, in insurance sector, getting own money at the same time getting on profit is very difficult, because the profitability capacity is too low, I can say here. Now, I would like to give sentence to my colleague, Mr. Şafak. Thank you.
Thank you, Erdem Bey. Hi again, everybody. I am going to continue with balance sheet and P&L figures. I am going to end the presentation with investment portfolio breakdown and investment gains, yields that we were able to achieve. I am sorry. I do not think you can see the presentation, I think. On this slide, you can see our balance sheet figures. In the first quarter, our total assets increased 14.5%. They reached TRY 35 billion. It was not reflected to assets under management growth. As you see, the assets under management growth rate was 6%. The growth was mainly on the receivable side, so we can assume that we will be growing our assets under management amount in the coming quarters. On the right-hand side, our liability part of our balance sheet, technical reserves increased 18%.
The main growth driver here was, of course, outstanding claims, mainly coming from earthquake, I may say, and also MTPL. IBNR also had an important effect on our outstanding claim reserves growth. Share of the security had a decrease of 14%. The main driver of the decrease was, of course, the net loss that we disclosed in the first quarter, TRY 117 million.
Also the stocks that we keep available for sale are booked mark-to-market, and they are shown in our equity. Anadolu Hayat, you might guess, I think had an important effect in this amount. On the next slide, our P&L figures can be seen. On the left-hand side, unconsolidated figures, and right-hand side, consolidated figures. We do consolidate Anadolu Hayat, as you might recall. So the only difference is on the net financial income side. Technical side is not affected from the consolidation.
Our technical income in the first quarter compared to previous year's first quarter increased 129%, and expenses increased a bit higher than that, 135%. Net financial income was TRY 707 million for unconsolidated P&L and TRY 686 million for consolidated. With the tax effect, we disclosed TRY 117 million net loss in our unconsolidated P&L, and our consolidated P&L was at TRY 138 million.
On the next slide, the breakdown of our financial side of our P&L can be seen. Next slide, please. On the left-hand side, you might see the first quarter Q-on-Q, year-on-year results difference. We had mentioned this. Our last year's net profit was TRY 197 million, and this year's net loss, TRY 117 million. On the right-hand side, you might see the breakdown after the technical side. Our technical earnings was loss-making, TRY 1 billion, TRY 142 million. After that, the investment income was TRY 686 million.
We had dividend income from Anadolu Life, TRY 100 million. Amortization and provisions were around TRY 50 million, and tax had a positive effect, and net income stood at TRY 117 million. When we look at our return on equity figures, this one shows 12 months trailing profits. Due to loss, our ROE also decreased in the first quarter. For unconsolidated ROE calculation, you might see 16% ROE return on average equity, we should mention. Consolidated figures shows 25% ROE in the first quarter. On the next slide, our investment portfolio breakdown. We had an amount of assets under management was TRY 18.6 billion. At the end of the year, you might recall it was TRY 17.5 billion, and the increase was TRY 1.1 billion. Investment portfolio on bonds, we invested 38%. Deposits was 21%.
You might see some increase in deposits due to higher rates, especially at the end of the quarter. Not throughout the quarter, but at the end of the quarter, the deposit rates started going up. The investment on that part was a bit higher. Funds rate was 22% and stocks 19%. When we look at our investment income in our P&L, it was TRY 770 million, which is 18% annualized return. Anadolu Pay dividend excluded in this number. On the next slide, this is the last slide, the breakdown of our bonds and time deposits. According to TL and FX on the left-hand side. 80% of our bonds is investment in FX bonds, sovereign mainly, also corporate euro bonds, you might see, 21%. 20% of our bonds portfolio is TL bonds. Almost all of them is CPI-linked bonds.
On the right-hand side, you might see that our time deposits maturities is very short. That's going to be an advantage for us because the environment, we are in a rising trend in terms of rates. The time deposits of this portfolio, quarter of this time deposits is FX deposits, and remaining part is TL deposits. This was our last slide. Thanks for listening and participating our Q1 webcast. If you have any questions, you might write to chat box or you might raise your hand so we are going to unmute your microphone. If there is any question, you can ask verbally. You might raise your hand through the button on the right-hand side, or you can just type it in the chat box. Erdem Bey, I think we don't have.
I think we are very clear for financial results first quarter.
We have a question from.
Okay
Banu Hanım, Banu Dream. Following the below sector growth in some branches, does the company plan to be more aggressive in the remainder of the year?
I can say we want any aggressive pricing in this term. We are only targeting to profit, I will say, in the future. Maybe you can ask why this term it lose this kind of, but this is not our subject because this is an actuarial calculation, and we will obey these rules so that we reflect our financial statements what would be like that. For example, if we do not use this kind of provision in this term, I think TRY 300 million profit, we could hold in our financial statements in this term. But after that Constitutional Court decision, our results affected about it. But this is the first quarter return reflection. In next quarters, we hope that it will not be any effect of our results.
We have another question from Özgür Bey, Özgür Tanrıverdi. Your financial income declined substantially. What was the reason? We had some exposure to the stocks. As stocks market declines, we also were not able to make profits from some of our portfolio. That was the main reason. Actually, declined substantially. The return was not that I would not express that way actually, because nowadays we see some deposit rates around 35%, but throughout first quarter, the rates was even we had single digit rates.
Maybe we should recall also that. But yes, we had some exposure to stocks, and it was a bit loss-making for us in the first quarter as well. Hope that was helpful. You are welcome, as Güven said. Thank you. No further questions, I guess, Erdem Bey. No, we have another question from Banu Hanım. Do you expect the continuation of the strengthening that was effective in the demand after the earthquake?
I think, no. I can say, because nearly three months later, we think that it finished some kind of demand and nearly 11,000 file or claim demand for them. We don't think that more than this. I think we are at the end of the earthquake demands in this term. Now, we are planning to pay very quickly now the indemnities for all insurers.
I think the question was a bit related with the demands on policies. Banu Hanım, can you a bit clarify the question? If it was enough, of course, we don't need anything.
Of course, in this term, it will affect all policy demand in this area and all of Turkey at the same time. But I can say now we are choosing because, of course, we are insurance company , of course, we will do this, but this is very difficult to insure them in this area, especially in this term, because there's a big effect on some kind of buildings or any industrial places. So we are checking them or experts, and after that, we are doing or we are making policies. So we are choosing.
Yeah, it was about policies. Thanks, she said. There is another question from Özgür Bey. Your growth was below the sector on the average. Is it because you see them not profitable?
In this term, as I said before, we weren't any aggressive pricing in this term. In 2023, we won't be the aggressive pricing, but we'll get earn money or one target here. We are choosing, I'll say the risk management. That's all.
We have a question from Oğuz Bey. Could we see improvements at combined ratio for the next quarters?
I can say the good feeling for it or the wishes. I wish to decrease it, I can say. I will try to do this. It is very difficult because any catastrophic risk could be happened. For example, today it will be raining in north of Ege. Ege inside in Çanakkale and Balıkesir side, for example, today. We can't control them. We are insurance company . We will see them. Of course, we will try to decrease the combined ratio. It is necessary to get profited.
I think especially MOD claims ratio is very important on this point.
In next term, yes.
In the next terms, the first quarter was very successful, actually.
H&A side is very good, and fire side, anyway, it depends on the earthquake, but anyway, the fire side is good, too.
The important point is that we put all the reserves in our outstanding claims related with the court decision. That is the important point, actually. It was a one-off effect, and it was all injected in first quarter for MTPL, I am talking about. You are welcome, Oğuz Bey.
Is there any question?
I think there's no other questions, Erdem Bey. Back to you for the closure. No other questions, Erdem Bey.
Okay. Thank you very much for your interest in joining our presentation. I hope that it's better days, especially for our country and for our sector and company, and of the very good results. Thank you.
Thank you