We Analyzed a ₺155 Billion Company’s Financials. Here Are 4 Surprising Takeaways.

Introduction: The Hidden Stories in Financial Reports

Think of an annual financial report not as a dense, technical document, but as a corporate health check-up. Buried within its pages of tables and notes is a company’s diary—a detailed account of its successes, its calculated risks, and its strategic maneuvers. It reveals the true story of how big business operates.

We decided to prove this by diving into the 2025 consolidated financial report for Türkiye Sigorta, a major player in the insurance industry. After combing through pages of statements, notes, and auditor opinions, we’ve distilled our analysis into four surprising takeaways that reveal the fascinating story behind the numbers.

1. Profit and Assets Grew at an Astonishing Rate

The most immediate takeaway is the sheer scale of the company’s growth between 2024 and 2025. In a single year, the company expanded its financial footprint dramatically, a clear indicator of its performance and dominant market position.

Here are the key figures:

• Total Assets and Liabilities: Grew from approximately ₺95.3 billion in 2024 to ₺154.7 billion in 2025.
• Net Profit for the Period: Increased from approximately ₺12.8 billion in 2024 to ₺19.5 billion in 2025.

For a company of this magnitude to increase its asset base by over 60% and its net profit by more than 50% in just twelve months is a significant financial event. In an economy with single-digit growth, this level of expansion is almost unheard of, suggesting an aggressive and successful market consolidation strategy.

2. Nearly Two-Thirds of the Company’s Debt is a Sophisticated Guess

In every major corporate audit, independent auditors highlight “Key Audit Matters”—the areas that required the most significant professional judgment. For an insurance giant like Türkiye Sigorta, the primary issue wasn’t counting cash or inventory; it was estimating the future.

The report identifies “Technical Provisions” as the main Key Audit Matter, totaling a massive ₺67.4 billion for 2025. In simple terms, these are the funds an insurer must set aside to pay future claims. This figure isn’t a hard number; it’s a highly educated guess.

What’s truly striking is that this estimate accounts for nearly 64% of the company’s total liabilities. This means almost two-thirds of what the company owes is based on forecasting future disasters, from car accidents to earthquakes. The auditor’s report puts it plainly:

“Outstanding claims provisions, which are included in technical provisions, are chosen as a key audit matter because they inherently contain significant estimates and management judgments.”

This reveals a core truth about the insurance business: its financial reality is built not just on past transactions, but on sophisticated models that quantify calculated uncertainty.

3. Profit Isn’t the Same as Cash in the Bank

One of the most common but surprising concepts in finance is the difference between profit and cash. Türkiye Sigorta’s 2025 report offers a perfect illustration.

First, the income statement shows an impressive Net Profit of ₺19.5 billion. However, a look at the Cash Flow Statement reveals a different story: a Net Decrease in Cash and Cash Equivalents of (₺9.7 billion).

How can a company make billions in profit but end the year with less cash? This doesn’t mean the company is unprofitable; it means the profits were reinvested back into the business rather than sitting as cash. The report shows that net cash used in investing activities was over ₺20.5 billion. This massive outflow, likely for purchasing financial assets and other investments, more than accounts for the difference. It’s a crucial lesson: looking at cash flow is just as important as looking at profit to understand what a company is actually doing with its money.

4. An Auditor’s Approval Comes with Important Caveats

Türkiye Sigorta received an unqualified opinion—essentially a “clean bill of health”—from its independent auditors, Deloitte. This means that, in the auditor’s professional opinion, the financial statements are presented fairly in all material respects.

However, many people would be surprised to learn that the auditor’s report itself clarifies the limits of this assurance. Buried in the “Auditor’s Responsibilities” section is a crucial statement about what an audit can and cannot promise.

“Reasonable assurance is a high level of assurance, but does not guarantee that a material misstatement will always be detected when it exists.”

This is a critical nuance. An audit provides confidence, not a 100% guarantee. That’s because auditors rely on sampling and professional judgment rather than reviewing every single transaction a company makes. The purpose is to ensure the financial statements are free from material errors, but it serves as a powerful reminder that financial oversight is a process of risk assessment, not absolute certainty.

Conclusion: Reading Between the Lines

A ₺155 billion balance sheet, a ₺19.5 billion profit, and a ₺67 billion educated guess—this is the story of Türkiye Sigorta’s monumental year. Behind the vast numbers lies a compelling narrative of massive growth, of liabilities built on sophisticated forecasts, and of the rigorous but not infallible process of professional oversight. These documents are more than just compliance paperwork; they are a window into the machinery of the modern economy.

When you see a company’s headline profit number, what other questions will you now ask to understand the full story?

Briefing Document: Türkiye Sigorta A.Ş. Consolidated Financial Report Analysis (Year-End 2025)

Executive Summary

This briefing document synthesizes the key findings from the consolidated financial statements and independent auditor’s report of Türkiye Sigorta A.Ş. for the fiscal year ending December 31, 2025. The report, audited by DRT Bağımsız Denetim (Deloitte), received an unqualified opinion, affirming that the financial statements are fairly presented in all material respects in accordance with Turkey’s Insurance Accounting and Financial Reporting Legislation.

The company demonstrated substantial growth in 2025, with net profit increasing to TL 19.5 billion from TL 12.8 billion in 2024. This performance was driven by a significant rise in gross written premiums, which grew to TL 147.1 billion from TL 101.4 billion in the prior year. The company’s financial position strengthened considerably, with total assets expanding to TL 154.7 billion and total equity reaching TL 49.6 billion, up from TL 95.3 billion and TL 27.7 billion respectively. A key strategic move during the year was the doubling of paid-in capital from TL 5 billion to TL 10 billion, financed entirely from 2024 profits.

The auditors identified the valuation of Technical Provisions as a Key Audit Matter. Amounting to TL 67.4 billion, these provisions—particularly the TL 24.7 billion outstanding claims provision—are subject to significant management judgment and estimation, making them a focal point of the audit. From a regulatory standpoint, it is notable that the financial statements were prepared without the application of inflation accounting (TMS 29), following a specific directive from the Turkish insurance regulator (SEDDK).

Independent Auditor’s Report Summary

• Auditor: DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş. (Member of Deloitte Touche Tohmatsu Limited).
• Lead Auditor: Yaman Polat, SMMM.
• Report Date: January 23, 2026.
• Audit Opinion: An unqualified (“clean”) opinion was issued. The report concludes that the consolidated financial statements fairly present the company’s financial position as of December 31, 2025, and its financial performance and cash flows for the year then ended.
• Compliance Framework: The audit was conducted in line with Turkish Auditing Standards (BDS) issued by the Public Oversight, Accounting and Auditing Standards Authority (KGK). The financial statements adhere to the “Insurance Accounting and Financial Reporting Legislation” and, where not specified therein, to Turkish Financial Reporting Standards (TFRS).
• Auditor Independence: The report affirms the auditor’s independence from Türkiye Sigorta A.Ş., in compliance with the Code of Ethics for Auditors.

Key Audit Matter: Technical Provisions

The auditor identified “Technical Provisions” as the most significant area of the audit due to the high degree of estimation and judgment involved.

• Description: Technical provisions represent the liabilities the company holds for its underwriting obligations.
• Significance: As of December 31, 2025, total insurance technical provisions amounted to TL 67,415,152,707.
• Core Component: A major element within this total is the Net Outstanding Claims Provision (Muallak Tazminat Karşılığı), which stood at TL 24,703,953,783.
• Reason for Focus: The calculation of these provisions is inherently complex. It requires significant management judgment and modeling based on assumptions about historical claims experience, economic factors, legal developments, and other uncertainties.
• Auditor’s Response: To address this key matter, the audit team:
  • Evaluated the design and implementation of internal controls related to the technical provisioning process.
  • Performed detailed substantive testing on a sample basis.
  • Engaged certified actuaries as auditor’s experts to assess the reasonableness of assumptions, the appropriateness of valuation methodologies, and overall compliance with regulations.
  • Verified the consistency and adequacy of related disclosures in the financial statement footnotes (specifically Footnotes 2.24 and 17).

Consolidated Financial Performance (2025 vs. 2024)

The company exhibited strong top-line and bottom-line growth in 2025 compared to the previous year. The non-life technical result and investment income were primary drivers of the increased profitability.

Consolidated Financial Position (As of Dec 31, 2025 vs. 2024)

The company’s balance sheet expanded significantly, reflecting growth in its operations and investment portfolio. The shift from cash to financial assets indicates active management of the company’s growing asset base.

Key Corporate and Regulatory Information

• Corporate Identity:
  • Name: Türkiye Sigorta Anonim Şirketi
  • Registration: Established in 1957 in Turkey.
  • Principal Activity: Engaged in all non-life insurance branches, including auto, fire, transport, engineering, health, agriculture, and liability.
  • Ownership: The controlling shareholder is TVF Finansal Yatırımlar A.Ş. (81.10%), with the ultimate parent being the Türkiye Varlık Fonu (Turkey Wealth Fund). The remaining 18.90% is publicly traded.
• Capital Structure Changes:
  • The company increased its paid-in capital from TL 5,000,000,000 to TL 10,000,000,000 during 2025. This 100% increase was funded entirely from the net profit of the 2024 fiscal year.
  • The authorized registered capital ceiling was raised significantly from TL 5 billion to TL 50 billion, providing flexibility for future capital actions for the 2025-2029 period.
• Significant Accounting Policies and Regulations:
  • Inflation Accounting: In line with a general directive (2024/32) from the Insurance and Private Pension Regulation and Supervision Agency (SEDDK), the company did not apply inflation accounting as per TMS 29 for its 2025 financial statements. A subsequent law also postponed the application of inflation accounting for tax purposes for the 2025, 2026, and 2027 fiscal years.
  • IFRS 17 (Insurance Contracts): The implementation of the new global insurance accounting standard, TFRS 17, has been deferred for the Turkish insurance sector until January 1, 2027. The company will continue to apply the existing standard (TFRS 4) until then.
  • Consolidation: The financial statements are consolidated and account for the investment in its joint venture, Türk P ve I Sigorta A.Ş., using the equity method. Its sole subsidiary, OSEM Sertifikasyon A.Ş., was excluded from consolidation based on the materiality principle.

Management and Governance

• Management Declaration: The company’s top leadership, including Chairman of the Board Aziz Murat ULUĞ, Deputy Chairman and CEO Taha ÇAKMAK, and Audit Committee Chairman Prof. Dr. Murat AKBALIK, formally signed a declaration on January 23, 2026, affirming that the financial statements were prepared in accordance with all applicable regulations.
• Executive Compensation: Total compensation and benefits provided to senior management (Board members, CEO, and Deputy GMs) amounted to TL 127,042,152 in 2025, an increase from TL 81,394,318 in 2024.
• Personnel: The company’s average employee count was 1,548 in 2025, a slight decrease from 1,574 in 2024. This included 15 top-level executives.