RAY SİGORTA A.Ş. — Interim / Quarterly Report 2017

Aug 9, 2017

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CORPORATE PROFILE

Leaving 58 years behind in the insurance industry, Ray Sigorta generated 352.955.013.- TL premiums in six months of the year 2017 .

By the end of June 30, 2017, Ray Sigorta is carrying out its activities with 243 employees in 8 Regional Directorates and a Call Center.

At the same period, Ray Sigorta has offered its services through 1.229 agencies, 57 ABank branches, 69 Fibabank branches,49 Burgan Bank branches, 76 Brokers and 5 leasing companies. With 827 contracted automobile service stations, 36 quick repair center, 455 glass service stations and 988 contracted healthcare establishments , Ray Sigorta has successfully maintained its value creating company vision in its industry

Determining all of its corporate strategies knowing that development is dependent upon being customeroriented, Ray Sigorta will continue to apply its efficiency and customer-oriented strategies and its activities aimed at further enhancing its brand awareness and customer satisfaction level with a view to further elevating its successes also in 2017.

General Information on Ray Sigorta:

Trade Name:		Ray Sigorta Anonim Sirketi
Trade Registry Number:		297257
Central Registration System (MERSIS) Nr. :		3984 - 5318 - 6248 - 4904
Electronic Mail Address		info@raysigorta.com.tr
Web Site:		www.raysigorta.com.tr
Registered Electronic Mail Address (KEP)	:	raysigorta@hs03.kep.tr
Address of Registered Offices:		Cumhuriyet Mahallesi Haydar Aliyev
		Cad. No.28 Sariyer/Istanbul
Communication Address	:	Ray Sigorta A.Ş. Head Offices
		Cumhuriyet Mahallesi, Haydar Aliyev Cad.
		No. 28, 34457 Sarıyer / Istanbul
Telephone Number	:	0 212 363 25 00
Facsimile Number	:	0 212 299 48 49

Regional Headquarters

Istanbul Anatolian Headquarter

Sahrayıcedid Mah. Halk Sokak No: 33 Golden Plaza İş Merkezi F Blok Kat: 1 Kozyatağı 34734 Kadıköy / İstanbul Phone : 0216 411 16 06 Fax : 0216 411 16 19

Istanbul European Side Regional Headquarters

İstanbul Dünya Ticaret Merkezi B-1 Blok Kat: 9 No: 319 - 320 Yeşilköy / İstanbul Phone : 0212 465 40 45 Fax : 0212 465 04 75

Ankara Regional Headquarters

Farabi Sokak No: 40/A 06690 Kavaklıdere / Ankara Phone : 0312 428 50 00 Fax : 0312 428 50 49

Central Anatolian Regional Headquarters

Farabi Sokak No: 40/A 06690 Kavaklıdere / Ankara Phone : 0312 428 50 00 Fax : 0312 428 50 49

İzmir ( Aegean ) Regional Headquarters Halit Ziya Bulvarı No: 72 Taner İşhanı A Blok Kat: 2 35210 İzmir Phone : 0232 483 72 46 Fax : 0232 489 86 05

Bursa ( Marmara ) Regional Headquarters

Lefkoşe Cad. A Blok Kat: 3 No: 34 - 36 Nilüfer / Bursa Phone : 0224 211 28 27 Fax : 0224 211 28 37

Adana ( Southeastern Anatolian ) Regional Headquarters

Çınarlı Mah. Atatürk Cad. No: 15 İdeal Plaza

Kat: 7 01120 Seyhan / Adana Phone : 0322 457 06 83 Fax : 0322 454 77 61

Antalya ( Mediterranean ) Regional Headquarters

Konyaaltı Cad. Antmarin İş Merkezi No: 24 Kat: 6 07050 Konyaaltı / Antalya Phone : 0242 247 20 25 Fax : 0242 247 39 59

Ray Sigorta: From Past to Present

• Was founded as an initiative of national transportation companies (Turkish Airlines, Maritime Lines, State Railways, PTT) in 1958.

• Was privatized by Doğan Holding in 1992.

• Became a listed company in Istanbul Stock Exchange in 1997.

• In 2007, 74.26% of its capital was acquired by TBIH Financial Services Group, an affiliate of VIG.

• In 2008, Ray Sigorta added Vienna Insurance Group to its logo.

• In 2009, 84.26% of its capital shares were owned by VIG, 10% by Doğan Group, and 5.74% by more than 4,000 investors.

• In 2011, 81.59% of its capital shares were owned by TBIH Services Group N.V., 12.67% by Vienna Insurance Group (VIG), and 5.7% as free float.

• In 2016, total premium production of Ray Sigorta: 568.717.685.-TL

• In 2016, market share of Ray Sigorta among non-life insurance companies: 1,60%.

• In 2016, Ray Sigorta is ranked the 17th among non-life insurance companies.

• In 2016, The Company announced an annual profit of TL 32.885.126.

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OUR VISION:

To be a preferred insurance company in Turkey via sustainable and profitable growth and to be ranked among the first 6 in Turkey and one of the big core companies in VIG

OUR MISSION;

To rank in the top 6 in non-life insurance segment as the best insurance company for its customers, business partners, stakeholders, employees and particularly its distribution channels .

SHAREHOLDER STRUCTURE

For the end of June 30, 2017 , the shareholder structure which is share ratio over 10 % is as follows;

Name of the Partner	Share Ratio	Number of Shares	Value of Shares
ATBIH GmbH ()(*)	%81,59	13.304.862.688	133.048.627
Vienna Insurance Group AG	%12,67	2.066.352.811	20.663.528
LVP Holding Gmbh (*)	% 0,70	114.573.400	1.145.734

( * ) Both ATBIH GmbH and LVP Holding Gmbh are a subsidary of Vienna Insurance Group. Total share of VIG Group in Ray Sigorta A.Ş. is % 94,96.

( ** ) In May 2017, ATBIH NV was changed its legal location and business title. The legal location was moved from Amsterdam / Nederlands to St.Pölten / Austria.

5.04% shares are publicly-trade shares and traded in Borsa İstanbul A.Ş.

Our Company's issued capital has been raised by TL 26,000,000 (twenty six million) against cash payment from TL 137,069,856 (one hundred and thirty seven million sixty nine thousand eight hundred and fifty six) to TL 163,069,856 (one hundred and three million sixty nine thousand eight hundred and fifty six) by the resolution of Board of Directors dated March 23,2011.

There is no privileged share in Ray Sigorta A.Ş.

The Chairman and Members of Board of Directors, General Manager and Deputy General Managers have no shares in the Company.

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ORDINARY GENERAL ASSEMBLY MEETING

The Ordinary General Assembly Meeting of Ray Sigorta A.Ş. was held at 10:00 on March 31, 2017 Friday at the address of “ Cumhuriyet Mahallesi, Haydar Aliyev Cad. No:28 34457 Sarıyer/ İstanbul” , under the supervision of Mrs. Nuran Devrim, the Ministry Commissioner appointed by a letter of assignment of the Istanbul Provincial Directorate of Ministry of Customs and Trade

At this meeting , ordinary agenda was discussed according to the provisions of the Turkish Commercial Code and Capital Market Law.

The proposal of the Board of Directors regarding the net profit of the year 2016 has been put to the vote following the discussion on the proposal; and it has been unanimously resolved that the net profit amount of TRY 32.885.126,- for the year 2016 shall be set off with the accumulated losses.

Except Mehmet Koray Erdoğan ( General Manager ), Board Member as of right according to the Insurance Code number 5684, as the terms of office of the Board of Directors members will be expired in 2017, the number and the appointment of the Board of Directors members are discussed. Based on the Board of Directors’ proposal and the motion of the shareholders, it has been resolved to fix as 7(seven) the number of Board of Directors Members including Koray Erdoğan, Board Member as of right according to the Insurance Code number 5684, and to assign Dr. Martin Simhandl, Karl Fink, Dr. Josef Aigner, Gerald Klemensich and as an independent member Dr. İsmail Hakkı Ergener and Stefan Waldner, who shall be elected to serve for 3(three) years

It has been unanimously resolved that Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş shall be selected as the independent auditor for the audit of 2017 interim and annual financial statements and board of directors report within the frame of the Turkish Commercial Code, the Insurance Legislation, Capital Markets Legislation and other relevant legislation.

AMENDMENTS OF ARTICLES OF ASSOCIATION

There was no amendments in this period. The current articles of association of our firm is published in our web site, part of investor relations .

CORPORATE GOVERNANCE PRINCIPLES COMPLIANCE REPORT

Ray Sigorta A.Ş. , has adopted the concepts of equity, transparency, accountability and responsibility of the Corporate Governance Principles and aims to comply with these principles in its activities at its most. Within this context , the company complies with all compulsory principles. Moreover, the company continues to work on to comply with all noncompulsory Corparate Governance Principles. Corparate Governance Principles Compliance Report is on our web site www.raysigorta.com.tr .

We, Ray Sigorta A.Ş., disclosed 18 information and document items during the period of 01.01.2017 - 30.06.2017 .

BOARD OF DIRECTORS

The Members of the Board of Directors of our Company :

Full Name Appointed on Position – Committees
Martin SIMHANDL 12.04.2011Chairman of the Board of Directors
Member of Corporate Governance Committee
Member of Early Identification of Risk Committee
Holds a degree in Law.
He has held various offices within the organization of Vienna Insurance Group AG between
1985 and 2004. He has been serving as the Member of the Managing Board, CFO of Vienna
Insurance Group AG since 2004.
He has no executive duties or responsibilities at the Company.

Full Name Appointed on Position – Committees Karl FINK 31.03.2016 Deputy Chairman of the Board of Directors

Holds a degree in Business and Economics.

He worked in Marubeni Corporation as an Authorized Representative in Berlin between 1971 and 1975. He has held various offices within the organization of Vienna Insurance Group AG between 1975 and 2009. He has been served as a Deputy General Manager between 2007 and 2009 and as the Member of the Extending Managing Board in Vienna Insurance Group AG . He has been also a member of Managing Board in Wiener Staedtische Wechselseitiger Versicherungsverein-Vermögensverwaltung since 2004.

He has no executive duties or responsibilities at the Company.

Full Name Appointed on Position – Committees

Ismail Hakki ERGENER 18.09.2012 Deputy Chairman of the Board of Directors Independent Member Chairman of the Audit Committee Chairman of the Corporate Governance Committee Chairman of the Early Identification of

Holds a degree in economics.

He has served at various banks in Turkey and Europe since 1984. He has worked at Express Trade Bank between 1995 and 2007, and at Denizbank AG between 1997 and 2008, and at Eurocity Bank AG between 2012 and 2013, as CEO and General Manager. As of 2009, he has been serving as the CEO at SK Danube AG.

Full Name Appointed on Position – Committees
Josef AIGNER29.03.2013 Member
Holds a degree in Chemistry.
He has served at the Allianz Insurance Group between 1995 and 1999, and at Vienna
Insurance Group AG between 2000-2007. He has been serving as the Head of Corporate
Business Department of Vienna Insurance Group AG since 2007.
He has no executive duties or responsibilities at the Company.

Full Name Appointed on Position – Committees
Gerald KLEMENSICH11.06.2014 Member of the Corporate Governance
Committee
Member of the Early Identification of
Risk Committee
He has served as Shipping Surveyor and Claims Examiner at various insurance companies
between 1993 and 1995. He has held various offices within the organization of Vienna
Insurance Group AG between 1995 and 2004. Since 2007, he has been serving as a Senior
Executive in Reinsurance Department of Vienna Insurance Group AG, and a member of the
board of directors of Wiener RE.
He has no executive duties or responsibilities at the Company.

Full Name Appointed on Position – Committees

Kemal BOZYİĞİT 04.07.2017 Independent Member Member of the Audit Committee

He holds degrees in Engineer for Metallurgy.

Between 1990 and 1992, he has served as project manager at VAI-Voestalpine Industrie Anlagenbau GesmbH. He has held various offices ( Project Leader, Key Account Manager, Product Manager, Quality Assurance Manager, Technical Responsibility for the Customer in French, Italy, Japan & Korea ) within the organization of Voestalpine Stahl GmbH - Linz between 1992 and 2006. Since 2006, he has been serving as a General Manager at Voestalpine Eurostahl GmbH - İstanbul.

Full Name Appointed on Position – Committees

Koray ERDOĞAN 01.08.2015 Member and General Manager

He holds degrees in International Relations. He holds a master's degree on Administrative Sciences from Carnegie Mellon University.

He has served as Insurance Auditing Specialist in Insurance Auditing Board of the Undersecretariat of Treasury. He appointed as a Deputy Chairman of the Board in 2009. He has started to serve as a Member of Management Board and Director of Financial and Administrative Affairs at Ray Sigorta A.S. in 2011. He has been appointed as the Deputy General in 2014. He has been a lecturer in Hacettepe University, Department of Actuary since 2010.

. Full Name Appointed on Position – Committees

Stefan WALDNER ( * ) 15.10.2014 Independent Member Member of the Audit Committee

He holds degrees in Economics and Business Administration. He holds a master's degree on Social Economic Sciences.

Between 2000 and 2005, he has served as Investment Banking Analyst and associate at Merrill Lynch International, London. He has served as a senior executive at OMV Aktiengesellschaft, Vienna between 2005 and 2014. Since 2011, he has been serving as a Member of the Board of Directors of OMV Petrol Ofisi A.S. He has been serving as the CFO and the Member of the Executive Board at OMV Petrol Ofisi A.S. as of 2014.

( * ) Mr. Stefan Waldner resigned on July 4, 2017.

Comparative Premium Revenue for the Period of 01.01.2017-30.06.2017 / 01.01.2016 - 30.06.2016

• 1) In the six months of year 2017 and 2016 gross Premium revenue and percantage change are given below. ( TL ) ( Reinsurer’s share is not deducted )

	30.06.2017	30.06.2016	Percantage **Change **
Accident	4.386.391	3.077.267	42,54%
Health	8.828.725	8.252.099	6,99%
Motor own Damage	45.617.420	36.620.602	24,57%
Other Vehicles	3.590.992	5.360.988	-33,02%
Marine	10.664.069	5.651.980	88,68%
Fire and Catastrophic Losses	92.218.187	68.262.933	35,09%
General Losses	66.871.313	66.396.741	0,71%
Third PartyLiability	97.215.368	91.528.349	6,21%
General Liability	18.382.563	14.282.831	28,70%
Surety	596.286	174.365	241,98%
Financial Losses	4.459.636	2.345.582	90,13%
Legal Protection	124.061	346.666	-64,21%
TOTAL	352.955.013	302.300.404	16,76%

• 2) For the same period, Gross Premium Revenue, Reinsurer’s Share and Net Premium Revenue ( TL ) and Percantage Change

30.06.2017	30.06.2016 Percantage
	Change
Gross Premium352.955.013	302.300.404 16.76%
Reinsurer’s Share218.356.370	178.171.951 22.55%
Net Premium134.598.643	124.128.453 8.43%

COMPARATIVE FINANCIAL INDICATORS ( TL )

SUMMARY OF FINANCIAL INDICATORS	30.06.2017	2016	2015	2014	2013	2012
Total Assets	671.493.707	585.045.563	450.401.905	401.476.112	381.275.825	322.604.991
Paid-In Capital	163.069.856	163.069.856	163.069.856	163.069.856	163.069.856	163.069.856
Shareholder’s Equity	142.007.522	126.332.001	94.014.445	109.646.602	98.394.116	90.198.223
	30.06.2017	2016	2015	2014	2013	2012
Net Premium	134.598.643	260.727.471	212.940.008	170.060.755	179.958.779	165.391.315
Investment Income Transfered From Non- Technical Division	14.055.759	20.778.791	14.147.549	12.762.126	7.541.540	8.324.843
Change in Unearned Primium Reserve-Net	-448.706	-27.949.967	-28.450.173	-612.686	-8.474.380	-15.010.432
Unexpired Risk Reserves Changed-Net	-1.353.187	8.822.135	-6.782.677	1.891.558	-3.776.756	1.835.991
Other Technical Income/Expenditure	231.400	-4.320.585	1.282.718	-11.670.129	2.748.187	-4.039.179
Net Claims Paid	-74.945.906	-141.758.613	-133.800.519	-102.805.771	-99.200.086	-104.247.366
Change in Outstanding Claims-Net	-15.537.164	-22.724.223	-16.624.563	-10.242.050	-15.474.728	3.643.640
Other Technical Provisions	-966.918	-2.295.762	-1.986.948	-1.063.998	-876.910	-398.840
Operating Expenses	-33.717.642	-43.102.666	-52.977.956	-50.052.986	-49.746.766	-45.852.033
Investment Income	24.963.686	44.021.442	31.380.123	21.345.895	15.260.389	10.789.917
Investment Expenditures	-21.059.375	-35.961.704	-28.270.104	-23.633.211	-12.461.872	-14.624.255
Other Expenditures/Income	-5.151.681	-16.264.297	-5.671.294	-3.602.767	-6.931.967	-2.076.479
Corporate Tax Provision and Other Fiscal Liabilities	-4.606.123	-7.086.896	0	0	0	0
Net Profit/Loss	16.062.786	32.885.126	-14.813.838	2.376.736	8.565.431	3.737.122

Full financial statement report for June 30, 2017 and previous periods are on our web site www.raysigorta.com.tr and Public Disclosurer Platform web site www.kap.org.tr