Good afternoon, everyone. Welcome to Sabancı Holding Financial Services Day. Today, I have Orhun Köstem, Sabancı Holding Group Chief Financial Officer, and Haluk Dinçer, Financial Services SBU President, on stage to discuss about the segment's current positioning and the strategy going forward. There will be a Q&A session at the end. Please note that this presentation may contain forward-looking statements, so I encourage you to review our disclaimer on the screens right now. This presentation will be recorded and uploaded at investor relations website. With that, I will leave the floor to Orhun Köstem.
Thank you. Thank you, Schule. Good morning, good afternoon, everyone. Welcome to the financial services strategic discussion for Sabancı Group today. Obviously, our financial services businesses has been one of the long-standing and a consistent return generator business to our portfolio. As you see, it's about 4% of the overall NAV, or 6% of our non-bank NAV in the overall Sabancı portfolio, which is about $6.5 billion, as you see. If you look at the profit and return generation that's on the next page, there you see on a year-on-year basis, this shows you the non-bank EBITDA breakdown. Obviously, the financial services business has grown from contributing about 3% of the EBITDA to about 6% of the EBITDA.
And you will see the growth numbers on the bottom of this page, which we usually refer to as a healthy growth, where our bottom line in this business is growing faster than our top line, hence my reference to a positive return generation. Now, this is obviously what I've shown you is historical. This is as of nine months. But we're here today to talk a bit about the strategy and the future of our financial services business within Sabancı Group. So with that, I'm very happy to host Mr. Haluk Dinçer with us today. So without further ado, I will leave the floor to him. Haluk Bey?
Thank you, Orhun Bey. I also would like to welcome you all to this session, and I'm pleased to be with you all here. This is our first slide. Why invest in Sabancı Financial Services? Why we have invested in this, in this field. We have come up with eight arguments. The first one is that Turkish insurance market is very much underpenetrated and signals growth potential. The second one is successful and strengthened partnership with Ageas that have lasted for the past 12 years so far. The third one is our strong portfolio companies operating in multi-lines, non-life, health, life, and pension. The fourth is our strong distribution network with wide geographical footprint and exclusive bank insurance partnership. The fifth is our agility in entering new markets with new products. The sixth is world-class use of technology and data with sector-leading capabilities.
The seventh is growing into adjacent business with the new health company, and the last one, transforming core business with ecosystem and partnership focus. Now, I'll give you more detail on each one of these in the coming slides. Please. So the first one, the Turkish insurance market, as, as I said, is very much underpenetrated with a great potential. On the left-hand side, you see the exact figures. Turkish market, Turkish economy is 19th largest economy in the world, whereas the non-life insurance market is ranked as the 27th, and life insurance is ranked as the 49th.
We measure penetration in the market in terms of gross written premium over GDP, and when you look at it that way and compare it with the figures, the average, European averages, we see 1.6% in Turkey for the total, premium over GDP, whereas the European average is 6.4%. On non-life side is 1.3% in Turkey, whereas Europe is 3.0%, and on the life side, is 0.3% versus 3.4% in Europe. So obviously, the penetration figures are quite low, and the same is true for pension. I won't get in details. Health is the same. And on the right-hand side, in those graphs, you see the, how the market has performed in the past five years, from 2017- 2022.
As you see, the CAGR growth rates are ranging from 36%-43%. So there has been quite a bit of growth, but still, where we are today still shows that there is still more room for growth. Next slide. Next slide, please. Okay, so we have identified four major macro trends for our—for... that affects our financial services business. The first one being digitalization and technology. As you know, core businesses are digitized to enable hybrid experience. This is true for all financial services. The second one is the changing customer needs and embedded insurance. Insurance is being sold as part of other services more and more. The third one is new risks and sustainability, new emerging risks, sustainability issues, and green investments. These require new product and service developments.
And the last one is healthy living and well-being, the rising needs due to aging and chronic diseases. Those are the four key macro trends for financial services... This slide shows our successful and strengthened partnership with Ageas. We are fully aligned with our partner, Ageas. We've been partners since 2011. In fact, AgeSA was- we've become partners in our non-life and pension business in 2021. We had another partner by then, and those shares were acquired by Ageas. Now, in AgeSA, we have a 40, 40 , 40% shareholding, with 20% free float. In Aksigorta, our non-life business, we have 36, 36 percent, and free float is 28%. Then we have our newest company, Sabancı Ageas Health Insurance Company, which is a 100% subsidiary of Aksigorta.
So as you see, we have a 50/50 shareholding in non-public shares, directly or indirectly. According to the existing legislations, we cannot have just one company covering all these areas. Life and non-life companies have to be operating separately, but we are leveraging all our distribution channels with unified customer-centric approach. And plus, on the top of that, we do joint working models to transfer experience and create efficiency in departments such as HR, human resources, risk, compliance, internal audit, and so forth. This slide shows our strong portfolio companies and where they are positioned within the market. AgeSA, our life and pension company, is number one among private companies in private pension, in terms of private pension. In private pension, in terms of assets under management, we have roughly $4 billion in assets under management, with 19% market share.
We've been the leader of the market since 2015. We are also number one among private companies in total life and personal accident premiums, with 12.5% market share. We have been the leader for the past two years in this field. We have 4.2 million customers, and we have multi-line distribution channels, agencies, exclusive bank insurance, partnership with Akbank, our group bank, and direct sales force team. When it comes to non-life, our Aksigorta company is number five among private companies with a market share of 6.5%. Among 40 companies in the market, by the way, we were ranked number three, but we lowered our market share in order to control our risks in MTPL, Motor Third Party Liability insurance.
That constitutes a major risk, not just for our company, but for the market overall. So we intentionally lowered our market share there. We may increase it in the coming years, depending on the market conditions. We think that was the right move by then, and we still think so. We have 2.5 million active customers there, with 4 million active policies. Again, we have multi-line distribution channels, so we have agencies, exclusive bank partnership with Akbank. We are working with brokers as well. On the health side, as I said, this is a newly established company. In fact, this is the health business is the only business that life and pension companies and non-life companies can operate.
But we decided to have a competence center focusing on health, and our intention was not just to have a health insurance business, but also healthcare services, to provide healthcare services to complement this. And we would like to leverage strategic partnerships in key focus areas when it comes to health services, like such as telehealth, wellness, prevention, and disease management. Okay, so this is our strategy house. Our long-term aim is to become the leading new generation insurance services provider. In grow and protect the core area, we act as a multi-line insurance with Aksigorta and AgeSA, and nowadays with our health company, which will be operational by the end of first quarter of next year. We achieve commercial excellence by diversifying our product portfolio. I'll have a slide on that.
Then we have intent to have a growth engine for customer acquisition, cross- and upsell. We're working with Akbank on that. Then we have automated and smart processes powered by AI. It's something that we are working currently. Again, this, I'll have a slide on that as well. Now, we strengthen our leading positions. We intend to strengthen our leading position in all business lines, but especially in health, since this is our newest investment area, and also in non-motor, especially for Aksigorta, where we see more potential for creating value. When it comes to developing distribution, we would like to increase our penetration in Akbank channel. We have a great partnership. We've been working quite successfully, especially in the past few years, but we still see room for growth there, so that will be our focus area.
Then we would like to increase our capacity and productivity of our direct sales force. I'll give you more information on information on that as well. And we see again, more potential in corporate business, so that's our, one of our focus areas as well. In agencies areas, we've already made this Greenfield Health Insurance company. It's work in progress. As I said, this will be operational by the end of next year, by the end of first quarter of next year, and we would like to become a healthcare player. And on the transform side, we pursue new opportunities with strategic partnerships in multiple ecosystems. So this is beyond insurance ecosystems. Please. Okay, so this shows our strong distribution network in four different areas. One is agencies.
There are 20,000 agencies in Turkey, not our, but in the market, and we are working with 4,000 of them. So we have about 50% penetr-, 20% penetration, and this figure has grown by about 50% in the last five years. We have very strong agencies network. When it comes to direct sales force, this is a unique feature of our company. In fact, especially our AgeSA company, has this direct sales force. We have over 630 financial advisors. These are exclusively our employees, in fact, they are working just for our company, and we would like to increase this figure up to 1,000 in the coming years. When it comes to brokers, yes, we work with 70% of all the brokers in Turkey.
We have, again, excellent relationship with them. And in bancassurance, as I said, we have an exclusive distribution agreement with Akbank that has 712 branches and 4,000 relationship managers in 19 regions of Turkey. And apart from that, we also have a dedicated sales team that has a focus on SME business, especially for Aksigorta. Thank you. Okay, and then we continuously, you know, study the market, where is the potential, and we are entering new markets with new products, and I'll give you a few examples. Like this year, we introduced our life savings products. Life savings, as you may see in the figures, has a very low penetration in Turkey, with only 148,000 participants. Very low, almost nothing. And within the first year, we've already achieved 30% market share. This is a very fastly growing market.
When it comes to endowment business, ROP, return of premium product, we are one of the pioneers of this market, and we had a re-launch, again, a very successful re-launch, and we are a leader in that area. On the non-motor side, on the non-life side, we recently introduced our EV Casco, electric vehicles Casco. Again, the penetration of electric vehicles is very low, but it's emerging very fast with the government's intensive through tax incentives. There are only 51,000 so far, so we are. We would like to take advantage of this first-mover advantage. We have introduced this competitive MOD, motor-own damage policy, especially for these electric vehicles, with best-in-class benefits, and the growth rate has been quite strong. We have sector-leading capabilities, customer centricity, data and analytics, digital enablement, smart processes.
We have quite a strong team in all these areas. I won't get into details and bore you with all this. This is this. So go to next slide. Okay, and AI is of course another area, as I said earlier, that we are studying in detail. We've identified three major areas where we can generate some value. One is the efficiency area. We think we can reduce our cost by and create opportunities for new growth and profitability using generative AI. On the experience side, we can improve our customer distribution channel and employee satisfaction. And on the insight side, we can unlock competitive advantage through new data and insights. So this is, of course, again, a work in progress. It's a project that we are working on, but we certainly see a lot of potential.
This is about our new, newest insurance company, the health insurance company. We haven't announced our new name yet. We'll be announcing the first quarter of next year. But it was established back in August 2022 and is progressing as planned. It's a greenfield company from zero. We are working, currently working on the technology and people foundation, and we are also searching synergies with ecosystem play. We plan to distribute our products, our health insurance products, through Aksigorta, AgeSA, and Akbank's existing channels. Since we have a very strong distribution network, that's where we would like to leverage. So this company will be focusing on, on the health insurance, its fundamentals, but when it comes to distribution, distribution, they'll be partnering with Aksigorta, AgeSA, and Akbank. We are also partnering with SabancıDx, as you see at the very bottom.
SabancıDx is our, as you know, is our digital company. Bulutistan is our CVC investment, Sabancı CVC investment, that specialize in cloud business. Albert is our, is a telehealth company that CVC is a major... Sabancı CVC is a major investor. We are also cooperating with Medialv. That's the Portuguese subsidiary of our partner, Ageas, specialized in health insurance and healthcare services in general. So this is, this is about our new- newest insurance company. Next slide, please. Okay, and then we are working on this app. We will provide insurance and healthcare services in one web app, providing end-to-end seamless experience. This is again, one project that we are working on. And then we invest in the, on the transformation side, we invest in strategic partnerships and ecosystem initiatives to transform our business. We have three major areas.
One is the digital bancassurance with banking as a service, and by offering insurance to the Akbank customers and in other ecosystems where Akbank offers service banking. Now, Akbank is already in those other ecosystems, and they are bringing us along, our insurance companies, to make the same offer, to make offers to those customers insurance. In Sabancı synergies, our insurance companies are working closely with TeknoSA, our retail business in technology goods, Enerjisa, our energy distribution business. CarrefourSA, obviously, is a food retail, mainly food or food and non-food, general retail. We are working closely with three companies to create synergies in between. And then our health insurance company, as I said earlier, is working closely with Aksigorta, AgeSA, and Akbank to develop, to leverage synergies. When it comes to ecosystems, there are two major areas that we've identified.
One is the embedded insurance area. This is the new trend, as I said, during the major trends. Then the healthcare ecosystem is the second area that we think we can create partnerships or be part of ecosystems. This is the final slide. This is the wrap-up slide. We offer end-to-end financial services to maximize market potential. As of now, with a committed competitive market positioning, we have a strong distribution network with wide geographic footprint. We have solid operational and financial performance, and we have superior digital analytics and customer management capabilities. For the future, on grow and protect the core side, we will have a profitable growth with balanced portfolio and strengthened balance sheet. We will adopt a customer value-based service model. We'll increase our share of wallet through analytics capabilities.
We will expand distribution network, and we'll diversify our product portfolio with focus on new risks. In the adjacencies areas, we of course will look at health insurance synergies. On the transformation side, we'll be having new digital engines via platforms and strategic partnerships. This is the last slide, end of my presentation. Thank you for your patience, and we are ready to take questions, I suppose.
Thank you. Thank you, Haluk Bey. We can start Q&A part. Well, we have one question on the line: What do you think about future of insurance business in Turkey?
Well, I tried to cover this a bit. Maybe I'll give you a bit more information on what I exactly think about this. As I've told you earlier, that the Turkish economy, whereas when the Turkish economy is ranked as 19th, when you look at where the insurance market is standing, I think it was 29 for non-life and something like that in life. So normally, where we are standing, we've been seeing faster growth than the GDP in the past 10 years that I've been in charge of this business, and for the coming years, we also expect to see much faster growth than the GDP rate in general. So that's why we've invested in this field, and we think that the future is bright.
Thank you, Haluk Bey. The second question is: Thank you for the presentation. Do you plan a rights issue for Aksigorta?
Well, we had a rights issue back in 2022. Because of this, you may know already, the macro-- because of the macroeconomic policy, because of the drop in interest rates, Aksigorta's liabilities were growing faster with inflation, whereas the assets growth, financial assets growth, the investments were not growing as fast. That created a decline in our capital, and we, our capital adequacy ratio went below 100%, and we had to have a right issue, rights issue for TRY 1 billion by then in 2022. Now, our-- And then by the end of the year, our, our capital adequacy ratio was above 100% level, just a bit over. Now, at the end of this year, there are a few changes that will be applied.
One is that the insurance sector in general will be shifting to IFRS 17, which will dramatically change the balance sheets, and once that happens, there'll be also a change, a major change, in how the capital adequacy ratio measured, and we are hoping that we will not have a rights issue. So it's not in our plans. If that happens, of course, if that happens, we'll have to have a rights issue if we don't have the adequate capital, but we don't think it will happen. There's a risk there. There's a risk just, not just for us, but for all companies in the sector, because there's a huge, big unknown. We still don't know how the, how this IFRS 17 will be applied.
We're expecting some clarification from the regulator, and at the same time, we don't know how the required capital or capital added. There is not much of a clarity in this. It's a risk, but we don't think it will happen. At least it doesn't have to happen in 2023 or 2024, I should say. They should at least give the sector at least a year to adapt to this new system. But as you said, since you've asked, yes, there's a risk there, but we don't think it will happen. It's not in our plans.