Dear all. Hello, and welcome to Anadolu Sigorta's Third Quarter Webcast. As you know, we have disclosed our results, third quarter results, two days ago. Since it was national holiday in Turkey yesterday, we had to make our presentation today, this evening. Thanks in advance for your participation to our webcast. As usual, we will be handling the presentation with our CFO, Erdem Ibrahim. He will start with technical side, and I am going to continue with financial figures. At the end of our presentation, we are going to have a Q&A session as usual. We are going to unmute your microphone if you raise your hand, or you can type your questions to chat box also. Erdem Ibrahim, the floor is yours.
Thank you, Barış. Welcome to Anadolu Sigorta financial presentation, 26th of third quarter. Our presentation has nearly 15 slides, and 13 of them active. I will present nearly half of them, and after that, my colleague, Mr. Şafak, will present next slides. I think that will take nearly 20-25 minutes. If there is any question, we will pleasure to answer it. First of all, I would like to give a short notice about what happened in the last three quarters. First of all, the global economic outlook for the third quarter of 2026 went on with shaped by escalating the geopolitical tensions in the Middle East, concerns about energy supply, security, and expectations, geopolitical tensions, and regarding central bank monetary policies in this term.
While the risks of conflict escalation straightened risk aversion in global markets during the first quarter, uncertainty partially eased in June as diplomatic efforts gained momentum. Nevertheless, geopolitical developments continued to impact energy prices and the global inflation outlook in this term. On the other hand, the fund crisis that occurred in Turkish capital market was one of the significant events on this period. Next slide, please. When we look at the, first of all, the profitability, our premium volume grew up 2.5% in despite the sector contracted by 0.1% quarterly, about the third quarterly. Nine-month net profit reached TRY 11.1 billion , and nearly 27% increased in this term. When we look at the technical side, strong premium production and increasing market share in the health branch was important for us.
Ranked 19 market share in the MTPL segment, and technical improvement accompanying the growth in the fire segment, 5.9 PP year-to-year. The combined ratio improved 15.5 in this term. Assets under management were very important for us. Despite the negative market impact of markets, portfolio size grew up TRY 6.4 billion quarterly basis and reaching the TRY 95.4 billion in this term. Investment income continued to remain strong in this term, TRY 6.6 billion quarterly. Next slide, please. When we look at the non-life insurance market, we were the third degree last term, I mean the second quarter, but this quarter, we are the fourth degree. We have got TRY 79.4 billion if you compare the last year, 16.9% increased. We have got 8.7% market share in this term.
The third-degree competitor company has only nearly TRY 85 million differences in premium production. We hope that in the last term, we'll be the third degree again, and we'll finish this year in the third rank in the premium production in non-life insurance market share. When we look at the premium volume and composition, MOD side in 19.5% increased and lesser than the sector, if you compare. MTPL side, nearly -15% , if you compare to last year. Health side is very strong premium production and effect over premium production side, 43.1% increase. Fire and natural disasters side, TRY 16.6 billion and 28.1% increase if you compare to last year. After the health side is the fire and natural disasters premium production positively affect our premium production in this term.
If you compare the sector in the health side and the fire natural disaster side is higher than the sector premium production, I can say. When we look at the quarterly side, quarterly side is the MTPL and the health and fire side is higher than the sector in this term. Next slide, please. When we look at the market share, our market share which attaches importance to balance growth in every branch, has succeeded in winning three first places and three second places, and third places, two of them fire and health side third places in main eight branches. Overall, our company ranks fourth with 8.7% total market premium production. Next slide, please. When we look at the sellers channel. The agency side is very important. As I said before, our premium production tends to agency side.
If you compare the last year, nearly 4 point decreasing if we compare. Anyway, it's higher than the sector side. It was 59.9% in total sellers side. The second important premium production side is the bancassurance side. If you compare the last year, nearly 2.5 point increase in the bancassurance side, and at the same time is higher than the sector in this term. If you compare the broker side, broker side is similar to last year in the same term, if you compare, nearly the same. When we look at the sector premium production side is higher than our company, I can say. Agency tendency premium production is going on again. Next slide, please.
When we look at the branch outlook, if we compare the last year, we have got 2.5 point increase over combined ratio. If you look at the MTPL side, growing is positive for us. I mean, last year it was 152%, but this year 144.2%, and nearly 8 point decreasing is a positive effect over financial statement. On the other hand, the MOD side is increased in combined ratio because our premium production at the same time, the claim side effect is the kind of negative effect the financial statement in this side. Another positive effect, fire and natural disaster side, and nearly 5 point decreased combined ratio, and it was a good improvement for our financial statement. Health side premium production is higher than the last year. At the same time, 10 point increase the combined ratio higher than the last year.
Then we look at the technical profitability, long-term perspective here especially. As you see, our combined ratio increased nearly 2.5 point last year. When we look at it, financial statement activity results of our company are exempt. It is since that our assets reached 155 billion Turkish liras, with an increase of nearly 15.7% compared to previous year. The premium production reached TRY 79.5 billion , with an increase of nearly 17% compared to previous year again. Our market share, 8.6%. Our company realized TRY 11.1 billion in the unconsolidated net profit, 28% increased. Net profit value in our consolidated financial statement, TRY 11.6 billion and nearly 29% in this term. When we look at 2022, 132% is higher, and 2024 is a good improvement in the combined ratio, 105%.
But end of the third quarter 2026, it is nearly 113%, a little bit higher than the last year. On the other hand, when we look at the claim ratio, similar to last year, 70.6% and 70.4%, similar, but the combined ratio higher than the 2.5. End of the year, we would like to try to control the combined ratio, and we would like to take under the 110%. Okay, thank you. Barış, I would like to give you sentence, my colleague, Mr. Şafak. Thank you.
Thank you, Erdem Ibrahim. I'm going to continue with investment portfolio of our company. As you see, at the end of third quarter, our AUM reached to TRY 95.4 billion . You might see the division among financial instruments after the invested funds are also divided into instruments. Bonds investments was 73%, both TL and Eurobonds. Maybe to deep dive in this number, we might say that TRY 35 billion was invested in bonds. Most of them are TL fixed income bonds. Almost TRY 29 billion is in TL, whereas TRY 6.5 billion was invested in Eurobonds. Equity investment was 8%. We had some investment in commodity and venture capital funds as well, which was around 6%.
As you see, the biggest portion is invested in short-term interest instruments, which are mainly time deposits, both mainly TL, a little bit also FX time deposits also exist in our portfolio. Almost 9% of our portfolio is invested in foreign currency, mainly USD again. We still have to keep a bit FX in our portfolio. On the right-hand side, you might see our third quarter investment income was around TRY 7.3 billion , which is only in the These are all booked in the P&L. Portfolio yield calculated according to the starting of the third quarter was around, the yield was, the return was 8.2%. I'm going to continue with income statement, summary of our income statement. First, you can see standalone quarter-based results on the left-hand side, unconsolidated, and right-hand side, consolidated figures.
To compare our quarterly results, QoQ technical income was 4% and year-on-year increase was 26%. Technical expenses increase was a bit higher, as combined ratio increased significantly in the third quarter, as you might see. Technical expenses QoQ increase was 7% and year-on-year increase was 29%. At the bottom of the chart, you are going to see our net profit was TRY 3.7 billion, with an increase of 5% QoQ and 8% year-on-year for unconsolidated figures. But consolidated net profit stood at TRY 4.2 billion. The increase on QoQ results was 6% and 11% for year-on-year results. If we look income statement, nine-month cumulative income statement, as Erdem Ibrahim also mentioned, technical income increased 37%, technical expenses increased 40%, and net income year-on-year increase was 28% for solo figures, and 29% increase was experienced in consolidated figures with the net profit, with net consolidated profit, TRY 11.6 billion.
When we look at the profit drivers, breakdown of profit drivers, both QoQ and year-on-year, quarter-on-quarter and year-on-year results, at the first chart, you might see our quarterly compared net profit breakdown. As you see, underwriting performance affected negatively our third quarter investment income, and affected positively around TRY 600 million. On the bottom of left-hand side, this time year-over-year results were compared. This time, again, underwriting performance affected negatively around TRY 1 billion, whereas investment income had positive effect around TRY 634 million. On the right-hand side, this time, cumulative year-on-year breakdown, net profit breakdown. Underwriting performance was weaker compared to previous year's nine month. The effect was negatively TRY 3 , 279 million, but investment income effect was positive this time, around TRY 5.3 billion. On the right-hand side, upper of right-hand side, you can see quarterly investment income.
This time, P&L and equity figures are collected, summed up, and as you see, third quarter financial investment income was TRY 6.7 billion. On the last slide, we are going to see the balance sheet figures. Left-hand side, total assets. The total assets increase in nine months was 15%. It was TRY 154 billion at the end of September. Our AUM increase in nine months was 22%, as we had mentioned. It's around TRY 95 billion. Technical reserves, which consists of unearned premiums and outstanding claims. The increase was 15% for the liability side, and shareholders' equity increase was 19% in nine months' time. The equity reached up to TRY 49 billion at the end of third quarter. This was all for our third quarter presentation. Thanks for listening and participating in our webcast. We can continue with Q&A session.
If you have any questions, please raise your hand so that we can unmute your microphone, but you can also type your questions to chat box. We are going to read and answer your questions. I don't see any raised hands, Erdem Ibrahim, actually, so I think we don't have any questions. It's all crystal clear, I guess. There's no any questions written also, Bahadır, right? Yes, we have no questions. No questions written, no written questions as well. Back to you, Erdem Ibrahim, for the closure. Thanks for listening.
Okay. Thank you very much for joining our third quarter presentation. Have a good day and have a good weekend, I can say, and see you end of the quarter for a little bit better financial results. Thank you very much.