Page 4 - Turkinsurance Digital Magazine

4 at a glance

The Insurance Sector Strengthens Its Stability with Robust Capital Structure and

Increasing Asset Size

life and individual pension branches accounted for 14 percent.
Within the non-life segment, motor (23 percent), health (22
percent), and fire/natural disasters (16 percent) were the lines
with the highest premium production.

During the current period, investment income significantly offset
the pressures on technical profitability. However, in the event that
the anticipated decline in interest rates occurs, the significant
contribution of investment income to technical profitability is
expected to decrease relatively.

Therefore, the foundation of sustainable profitability in the sector
lies in strengthening the profit generated from technical operations
rather than relying on investment income. Technical profit,
supported by accurate pricing, effective claims management, and
robust reserving policies, continues to be the key determinant of
long-term and stable profitability.

Insurance Association of Türkiye (TSB) President Uğur Gülen:
Strengthening its financial stability, the insurance sector With its strong financial structure, the insurance sector
continues to provide long-term resources to the economy with inspires confidence in the economy
its increasing asset size and robust capital structure. Insurance
Association of Türkiye (TSB) President Uğur Gülen: “With its Uğur Gülen, President of the Insurance Association of Türkiye
strong balance sheet structure and growing capital strength, (TSB), made the following remarks regarding the sector’s
our sector reinforces a sense of trust for both policyholders and performance: “The insurance sector has increased its total assets
investors.” to TRY 2.9 trillion, thereby not only reinforcing its financial
stability but also continuing to provide long-term and sustainable
In the first half of 2025, the insurance sector maintained its resources to our economy. With a strong balance sheet structure
steady growth, achieving strong results in both its balance sheet and growing capital strength, our sector reinforces the sense
structure and financial resilience. The sector’s total asset size of trust for both policyholders and investors. In doing so, we
increased by 56 percent, reaching 2.9 trillion TL. During the contribute to more effective risk management for individuals and
same period, its equity capital also rose by 58 percent to 324.1 businesses, while also enhancing the resilience of the national
billion TL, further strengthening the sector’s capital base. This economy.
robust capital structure enhances insurers’ resilience against
risks, enabling them to act more flexibly in the face of economic In the coming period, our primary focus will be to further increase
fluctuations and to meet their long-term obligations with insurance penetration and boost the sector’s added value to the
confidence. This, in turn, paves the way for new investments and economy. In this context, we aim to reach broader audiences by
forms the foundation for sustainable growth in the sector. strengthening our digitalization efforts, diversifying our product
range, and reinforcing our customer-centric approach.
The growth in equity capital not only reinforced investor
confidence but also contributed to the sector’s long-term financial The insurance sector plays a strategic role in both enhancing
stability, laying the groundwork for improved capital efficiency social welfare and supporting sustainable growth. With full
and the development of new investment strategies. awareness of this responsibility, we will continue to move forward
in alignment with our country’s long-term development goals.”
In addition to its balance sheet strength, the sector maintained
its momentum in premium production. In the first half of 2025, The outlook emerging from the first half of 2025 clearly shows
total premium production reached 576.3 billion TL, marking a that the insurance sector is steadily advancing on its path of
51 percent increase compared to the same period last year. The sustainable growth.
share of non-life branches in the total stood at 86 percent, while