Briefing Document: Aksigorta A.Ş. 2025 Financial Performance and Audit Analysis

Executive Summary

This briefing document synthesizes the non-consolidated financial results and independent audit findings for Aksigorta A.Ş. for the fiscal year ending December 31, 2025. The company demonstrated significant growth across key financial metrics, underpinned by an unqualified audit opinion from Deloitte (DRT Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.).

Critical Takeaways:

• Audit Opinion: The financial statements present a fair and accurate view of the company’s financial position in accordance with Turkish insurance accounting legislation and Financial Reporting Standards (TFRS).
• Profitability: Aksigorta reported a net profit of 2,485,797,839 TL for 2025, a substantial increase from the 1,856,582,154 TL recorded in 2024.
• Asset Growth: Total assets expanded to 34,489,408,604 TL, compared to 25,556,410,466 TL in the previous year.
• Equity Position: Total equity rose to 7,646,155,683 TL, up from 5,091,924,965 TL in 2024.
• Key Audit Matter: The estimation of Incurred But Not Reported (IBNR) claims remains the most significant area of actuarial judgment, with a net provision of 8,999,846,613 TL as of year-end 2025.
• Regulatory Compliance: Per SEDDK (Insurance and Private Pension Regulation and Supervision Agency) directives, inflation accounting (TMS 29) was not applied to the 2025 financial statements.

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I. Corporate Overview and Governance

Entity Structure

Aksigorta A.Ş. was established on April 25, 1960, and operates as a joint-stock company under the Turkish Commercial Code.

• Ownership: The direct main shareholders are Hacı Ömer Sabancı Holding A.Ş. and Ageas Insurance International N.V. (based in Belgium).
• Public Listing: 28% of the company’s shares are traded on Borsa İstanbul A.Ş. (BİST).
• Operational Reach: Headquartered in Istanbul, the company operates 10 Regional Directorates and works with 3,661 authorized agents.

Human Resources and Management

• Personnel: The average number of employees grew to 884 in 2025 (up from 845 in 2024). This includes 9 senior executives and 166 managers/assistant managers.
• Executive Compensation: Total benefits provided to senior management (including the Board of Directors, General Manager, and Assistant General Managers) amounted to 86,089,721 TL in 2025.

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II. Independent Auditor’s Report Analysis

The audit was conducted by DRT Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (a member of Deloitte Touche Tohmatsu Limited), with Ferda Akkılınç Ilıca serving as the responsible auditor.

Key Audit Matter: IBNR Estimation

The primary focus of the audit was the estimation of net Incurred But Not Reported (IBNR) claims.

• Rationale for Focus: This area involves significant actuarial judgment and is a major component of the financial statements.
• Methodology: Provisions are calculated based on the “Best Estimate” methods within the framework of circular 2014/16 issued by the Ministry of Treasury and Finance.
• Auditor Actions: The audit team tested internal controls, verified data reconciliation, and utilized internal actuaries to evaluate the reasonableness of the Company’s actuarial techniques and development trends.

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III. Financial Performance Summary

Comparative Balance Sheet Highlights (TL)

Income Statement Summary (TL)

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IV. Technical Provisions and Actuarial Estimates

Aksigorta maintains substantial technical reserves to cover future obligations and potential risks.

1. Incurred But Not Reported (IBNR) by Major Branch

The total net IBNR provision as of December 31, 2025, reached 8,999,846,613 TL.

2. Discounting of Provisions

Per SEDDK regulation 2025/7, the company discounted net cash flows from outstanding claims provisions. For 2025, a 29% discount rate was applied (compared to 35% in 2024), resulting in a net discount of 5,910,828,571 TL.

3. Provision for Ongoing Risks (DERK)

Aksigorta calculated a net Continued Risks Provision of 974,943,993 TL, primarily driven by the Compulsory Traffic branch (both pool-related and non-pool).

4. Equalization Provision

To balance fluctuations in claim ratios and cover catastrophic risks (earthquake and credit guarantees), the company set aside 296,584,623 TL in equalization reserves, classified under long-term liabilities.

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V. Investment and Financial Assets

The company manages a diverse portfolio of financial assets to support its insurance obligations.

• Cash and Cash Equivalents: Totaled 8,735,326,350 TL, including 5.69 billion TL in bank deposits and 3.04 billion TL in credit card receivables.
• Financial Assets: Valued at 12,376,005,318 TL, categorized as:
  • Trading Assets: 8,843,603,515 TL
  • Available-for-Sale: 2,822,448,144 TL
  • Held-to-Maturity: 706,497,694 TL

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VI. Regulatory and Tax Environment

Inflation Accounting (TMS 29)

Despite the high-inflation environment, the SEDDK circular 2024/32 stipulated that insurance, reinsurance, and pension companies would not apply inflation accounting for the 2025 fiscal year. Consequently, these financial statements are not adjusted for the effects of inflation according to TMS 29.

Taxation

• Corporate Tax Rate: For 2025, the rate for financial institutions is 30% (25% for other entities).
• Deferred Tax: The company reported a net deferred tax asset of 673,672,818 TL.
• Tax Provisions: The company set aside 225,467,622 TL for current period tax and other legal obligations.

“Risky Insured Pool” (Riskli Sigortalar Havuzu)

In the Compulsory Traffic branch, premiums and claims transferred to this pool are excluded from standard IBNR calculations. The IBNR for claims to be received from the pool was calculated based on a 191% Ultimate Loss Ratio provided by the Turkish Motor Vehicle Bureau, totaling 1,439,574,785 TL.