Page 13 - Turkinsurance Digital Magazine

13

We became the fastest-growing company of 2024 with a record 145% increase in
production

er nine companies in the top 10 experi- around 25% growth, and just as we saw
enced an average market share loss of negative real growth in the motor seg-
6% compared to the previous year, we ment in 2024, we might observe the same
achieved a 42% increase. We have driv- in the fire insurance segment this time.”
en this strong growth by effectively man-
aging costs and maintaining a balanced The Impact of Interest Rates Will Be
portfolio. Among the top 15 non-life in- Felt in the Second Half
surance companies, we have the best net
combined ratio at 86.9%. In 2025, we Regarding growth and profitability pro-
will continue to grow by making a differ- jections for 2025, Erdoğan stated: “Our
ence in the sector without compromising year-end growth forecast for the non-life
our sustainable growth strategy.” insurance sector is 36%. Since we expect
the impact of declining interest rates to be
*Investment Returns Marked 2024 felt in the second half of the year, we pro-
ject a 50% increase in financial income.
Erdoğan also shared his insights on the In parallel, we have calculated a 50%
industry, emphasizing the impact of ris- rise in operational expenses (OPEX) to
Koray Erdoğan, CEO of Ray Sigorta, ing investment returns due to the 2024 shape our year-end profit estimate. In an
stated that they were the fastest-growing economic conditions. “There is an enor- optimistic scenario, assuming that tech-
company among the top 10 insurance mous investment return of 62 billion, nical results do not deteriorate further in
companies in 2024. “Last year, the non- which has significantly improved the 2025 and remain at 2024 levels, we can
life insurance sector grew by 72%, while profitability outlook of the sector. How- expect a 10% increase in profitability for
we achieved a growth rate of 145%. Our ever, to see the real technical profit, one the non-life insurance sector.”
total premium production reached 31.4 must exclude the investment returns
billion. We increased our market share by transferred from the non-technical sec- Time to Take Action for Istanbul
42%, rising from 2.98% to 4.25%. We tion in financial statements. In this case,
achieved this growth by effectively man- the technical loss, which was around 20 Ray Sigorta CEO Erdoğan also empha-
aging costs and maintaining a balanced billion in Q3 2023, increased to 26 bil- sized that the 2025 agenda of the insur-
portfolio. Among the top 15 non-life in- lion TL by the end of Q3 2024. While the ance sector includes significant transfor-
surance companies, we have the best net loss ratio is decreasing, the deteriora- mation topics such as the Supplementary
combined ratio at 86.9%. In 2025, we tion on the technical side is concerning. Pension System (TES) and the Mandato-
will continue to grow with our innovative Of course, the primary reason for this is ry Disaster Insurance (ZAS). Highlight-
products and services that set us apart operational costs. However, regardless of ing that the increasing risk of natural
in the sector, without compromising our the circumstances, the impact of invest- disasters worldwide has made insurance
sustainable growth strategy,” he said. ment returns has significantly reflected one of the most critical issues, Erdoğan
Koray Erdoğan, CEO of Ray Sigorta, positively on balance sheets. As we enter stressed the importance of raising aware-
stated that throughout the year, they ex- a rate-cut cycle in 2025, more cautious ness, particularly regarding the potential
panded their product portfolio with inno- steps must be taken. The sector needs to Istanbul earthquake. “It’s time to take
vative approaches, implemented digital focus on sustainable growth and effec- action for Istanbul without delay,” said
transformation-focused applications, and tively manage its portfolios,” he stated. Erdoğan, adding:
maintained their consistent growth per-
formance in 2024. Highlighting that they Erdoğan Shares 2025 Expectations “Efforts to develop the existing Turkish
moved up one position in the sector rank- Catastrophe Insurance Pool (DASK) and
ing compared to the previous year and Evaluating the outlook for the auto seg- transition to the Mandatory Disaster In-
closed 2024 in 8th place, Erdoğan said: ment, which serves as the driving force surance (ZAS) product have been ongo-
of the non-life insurance sector, Erdoğan ing for a long time. However, I don’t be-
“We offer customer-focused innova- said: “In 2024, we started the year lieve these measures alone are sufficient
tive products, develop pioneering digital with 72% growth in auto insurance and to increase penetration. Therefore, we
transformation applications, and strive 112% in non-auto insurance, closing the must manage the risks of a potential Is-
to be a company that grows alongside year with 54% and 87% growth, respec- tanbul earthquake through a combination
our stakeholders. From this perspec- tively. We experienced a real contraction of mandatory insurance and heightened
tive, 2024 has been a year that validated of 7.4% in motor insurance. This trend awareness regarding homeowners’ in-
our strategy. Last year, while the non- provides important insights into 2025. It surance. From our perspective, the most
life insurance sector grew by 72%, we is expected that this year will end with effective solution would be to transform
achieved a growth rate of 145%.” Our around 45% growth in traffic insurance insurance policies into tax advantages for
total premium production reached 31.4 and approximately 35% growth in mo- policyholders. I believe that increasing
billion. We increased our market share tor insurance. A similar scenario applies state incentives for home and business
from 2.98% to 4.25%. While the oth- to fire insurance. If the current trend insurance is crucial in minimizing the
continues, this segment will remain at financial losses caused by earthquakes.”