26/10/2010October 2010 TURKISH INSURANCE INDUSTRY AND GUNES SIGORTA TURKISH INSURANCE INDUSTRY AND GUNES SIGORTA 1

26/10/2010October National Income: GDP : Billion TL = 717 Billion USD GDP per capita: USD Inflation: CPI (consumer price index): 6.40 % PPI (producer price index): 8.87 % Unemployment: 11.4 % Population: 73,7 million June 2011 TURKISH ECONOMY IN 2010 TURKISH INSURANCE INDUSTRY

26/10/2010October 2010 NON LIFE TL which represents 81,58 % of the total premium income and a growth of 14,5 % compared to Premium Income TL which is 18,42 % of the total premium income and a growth of 17,53 % compared MARKET INCOME TL, an increase of 15 % compared to 2009 LIFE June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October PREMIUM PRODUCTION ( ) Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October PREMIUM INCOME SPLIT 2010 The below graphs shows market share of the branches for The accident branch, which is mainly consist of motor own damage premium,is stil the largest one. Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October 2010 PREMIUM PRODUCTION IN% OF GBT 6 NON-LIFE PREMIUM PRODUCTION IN% OF GBT TOTAL PREMIUM PRODUCTION IN% OF GBT Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October TOTAL PREMIUM PRODUCTION PER CAPITA (USD) Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October 2010 LIFE & NON LIFE PREMIUM PRODUCTION (TL) LIFE & NON LIFE PREMIUM PRODUCTION (TL) Change between Accident ,60% Health ,50% Air Vehicles&Liability ,50% Marine ,70% Fire ,50% General Losses ,80% MTPL ,10% General Liability % Credit&Suretyship ,60% Legal Protection ,70% Total Non-Life ,60% Total Life ,70% Total ,60% Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY 8

26/10/2010October TECHNICAL RESULTS Although overall loss ratio decreased to 67.03% in 2010 from 75.31% from 2009, total non life companies produced a minor technical loss in 2010, while it was 1.04% technical profit in The main reason of this worsening on technical results comes from MTPL branch, its technical loss reached to 17.22% in 2010 while it was 5.27% in While loss ratio in Accident and health branches are improving, general liability branch produce a technical loss in Fire loss ratio improved to 31.46% in 2010 from in 2009, which this branch had important flood losses in September On the other hand overall, new reserving had also high contribution to the worsening of the technical results in (TL)2010 (TL) Loss Ratio %Technical Profit %Loss Ratio %Technical Profit % Accident79,29-4,0569,31,87 Health91,81-8,2684,47-2,01 Air Vehicles&Liability44,21-0,75108,76-5,85 Fire63,119,7131,4110,07 Marine44,230,6926,1631,99 Credit&Suretyship84,23-2,942,0622,31 General Losses57,248,2142,085,2 Land Vehicles Liability(MTPL)83,73-5,2797,08-17,22 General Liability80,4628,3290,58-5,58 Legal Protection4,1257,150,9750,44 Total Non-Life75,311,0467,03-0,04 Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October TOP TEN INSURANCE COMPANIES Comparison of Market Shares TOP TEN INSURANCE COMPANIES Comparison of Market Shares RankNon-life CompaniesMarket Share (%) Life CompaniesMarket Share (%) 1Axa 12,71 Ziraat Hayat ve Emeklilik27,59 2Anadolu 11,89 Anadolu Hayat Emeklilik16,38 3Allianz 8,33 Garanti Emeklilik10,74 4Ak 7,41 Halk Hayat ve Emeklilik6,48 5Yapı Kredi 6,35 AvivaSA5,70 6Gunes 6,17 Yapı Kredi Emeklilik5,03 7Groupama 5,81 Finans Emeklilik ve Hayat3,91 8Ergo 5,81 Vakıf Emeklilik3,82 9Eureko 5,18 Allianz Hayat ve Emeklilik3,41 10Mapfre Genel 3,45 Deniz Emeklilik ve Hayat2,77 Top Ten Companies73,09Top Ten Companies85,83 Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October FINANCIAL RESULTS Non-life companies total return on equity is decreasing as from 2008 and in This decline is coming fram mainly reduced investment incomes and poor technical results. Profitability of Non-Life and Life Companies over 5 Years (million TL) Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October CHANGE IN MARKET SHARES Branches Premium Production (TL)SHARE(%) Premium Production (TL)SHARE(%)CHANGE ACCIDENT , ,0910,72% HEALTH , ,3320,51% LAND VEHICLES , ,1716,67% RAIL VEHICLES , ,00338,81% AIR VEHICLES , ,54-17,32% WATERBORNE VEHICLES , ,06-4,20% MARINE , ,4614,25% FIRE , ,142,82% GENERAL LIABILITY , ,816,30% LAND VEHICLES LIABITY , ,1913,14% AIR VEHICLES LIABILITY , ,446,69% WATERBORNE VEHICLES LIABILITY , ,0045,27% GENERAL LIABILITY , ,3730,05% CREDIT , ,2614,66% FIDELITY GUARANTEE , ,16-1,14% FINANCIAL LOSSES , ,6229,55% LEGAL PROTECTOIN , ,3518,14% NON-LIFE TOTAL ,57% Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October PREMIUM PRODUCTION PER DISTRIBUTION CHANNELS(%) PREMIUM PRODUCTION PER DISTRIBUTION CHANNELS(%) Non-Life Direct Sales6,397,46 Insurance Agencies70,6069,10 Bank Agencies12,4813,40 Brokers10,5610,10 June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October MARKET COMPOSITION INSURANCE AND REINSURANCE COMPANIES Insurance companies Life Non life Reinsurance companies22222 TOTAL As of March 2011, the Association has 64 members. Out of these 64 companies, 62 are insurance (10 life, 14 life and pension and 38 non- life companies )and remaining 2 are reinsurance companies. Market Composition Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October PERFORMANCE OF THE TURKISH REINSURANCE MARKET IN 2010 The non-profitable motor lines lead most of the insurance companies towards more profitable non-motor lines which in resulted in cheaper pricing to get new market share. Despite a growth higher than the inflation rate, the sector concluded a consolidated loss for all lines of business combined, on non-life. The non-life industry grew in average app 13,6%. As for the number of policies, the figure reached 40,1 million in 2010 which is an approximately increase of 19% when compared to June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October PERFORMANCE OF THE TURKISH REINSURANCE MARKET IN 2010 Property (inc. Engineering) Casualty Marine The direct market for general casualty business i.e. general third party liability, employers liability etc. is still under heavy competition. Compulsory coverages like medmal and onshore pollution liability finds limited cpacity and interest in international markets. The free tariff application for earthquake for sum insureds above TL 100 million is perceived well by the clients but not very much so by the market. Also, the advisory tariff for terrorism business is no longer applicable. Even though it may stay as a prerequisite for some treaty acceptances, most of the business in the direct market runs without the assumed rates. The premium growth in the marine sector in 2010 was 15.56% despite the fact that marine insurance rates fell heavily and the softening trend is expected to continue in 2011 as well. There is enough capacity provided through the local market. June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October 2010  Solvency II In Turkey’s EU harmonization process, the Turkish insurance sector has been conducting studies on the implementation of Solvency II. A sample of ten insurance companies were determined to conduct Quantitative Impact Study 4 (QIS 4), which had previously been conducted by the European Commission in EU countries. QIS 5 was also started to be applied from December  Regulation on Technical Reserves There have also been major amendments to the “Regulation on Technical Reserves of Insurance, Reinsurance and Pension Companies”. In this context, a more developed and sophisticated actuarial chain ladder method for the calculation of IBNR reserves has been introduced. 17 HIGHLIGHTS June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October HIGHLIGHTS  Medical Malpractice Medical malpractice insurance became compulsory in Turkey in July With the introduction of “Compulsory Liability Insurance on Medical Malpractice”, doctors and dentists are required to be covered by professional liability insurance. Doctors working at public or private institutions will pay half their insurance premiums and their institutions will pay the remainder. Doctors working at their own private offices will pay the entire premium.  Coastal Facilities Sea Pollution Compulsory Liability Insurance Another compulsory insurance that was introduced in 2010 with the publication of tariffs and procedures is the “Coastal Facilities Sea Pollution Compulsory Liability Insurance. In this context, all coastal facilities (including refineries, gas terminals, power houses, industrial production facilities, shipyards, etc.) are obliged to be covered by insurance against sea pollution. June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October HIGHLIGHTS  Recent MTPL limits are stated as / TL for material damage and for TL for bodily injury from and those limits are still considered to be low and do not provide enough coverage for insured.  Maximum limits for TCIP are increased from TL to TL as of According to the new law, hospital benefits after traffic accidents will be will be handled and paid by Ministry of Health. Certain percentage of the premium in order to settle the bodily injury claims, which is not yet fixed, will be transfered to Ministry of Health. June 2011 TURKISH INSURANCE INDUSTRY

26/10/2010October 2010 GUNES SİGORTA IN FIGURES GUNES SİGORTA IN FIGURES 20 June 2011

26/10/2010October 2010 GUNES SIGORTA – PROFILE Corporate name : Güneş Sigorta A.Ş. Date of Foundation : Authorized Capital : TL Paid Capital : TL 21 SHAREHOLDERS AMOUNT OF SHARE TRY. RATE OF SHARE % Türkiye Vakıflar Bankası T.A.Ş ,22 Groupama International Vakıfbank Employees Private Social Security Services T.V.B. Employees Retirement&Health Funds Foundation ,01 Stocks offered to the Public ,77 Total GUNES SIGORTA IN FIGURES June 2011

26/10/2010October 2010 KEY FIGURES Number of Policies Total Premium Production Paid Losses Growth Rate (%)1,42,5 Rank65 Market Share6,47,22 Technical Profit (TL) , ,00 Net Profit (TL) , ,00 Number of Agencies2.654, ,00 June 2011 GUNES SIGORTA IN FIGURES

26/10/2010October 2010 KEY FIGURES 23 Premium Production Premium Production (TL) Fire Motor & Misc. Accident Motor TPL Health Others Total June 2011 GUNES SIGORTA IN FIGURES

26/10/2010October KEY FIGURES June 2011 GUNES SIGORTA IN FIGURES

26/10/2010October OUR AGENCY NETWORK June 2011 GUNES SIGORTA IN FIGURES YEARS T.VAKIFLAR BANKASI OTHER BANKS BROKERS EXCLUSIVE AGENTS

26/10/2010October OUR AGENCY NETWORK Development of Exclusive Agency Network Development of Bankassurance June 2011 GUNES SIGORTA IN FIGURES

26/10/2010October PREMIUM PRODUCTION BRANCH RoC ACCIDENT ,3% HEALTH ,1% LAND VEHICLES ,5% AIR VEHICLES ,9% MARINE HULL ,9% MARINE CARGO ,0% FIRE ,1% GENERAL LOSSES ,9% LAND VEHICLES LIABILITY ,5% AIR VEHICLES LIABILITY ,3% MARINE LIABILITY000,0% GENERAL LIABILITY ,0% CREDIT ,3% SURETYSHIP ,9% FINANCIAL LOSSES ,7% LEGAL PROTECTION ,5% TOTAL ,4% June 2011 GUNES SIGORTA IN FIGURES

26/10/2010October FINANCIAL INDICATORS (Million TL) Q Income Statement Gross Written Premiums512,4637,5709,6727,0737,4230,1 Net Written Premiums260,9342,8373,9395,0415,7109,9 Net Earned Premiums244,1290,8342,6375,0409,7105,9 Net Claims Incurred ,1-269,0-308,6-341,8-84,4 Net Commission Expenses-13,2-14,1-53,7-29,4-41,9-8,4 Net Technical Profit29,249,457,030,018,410,4 General Expenses-31,3-43,7-59,5-62,4-70,1-18,2 Profit Before Tax2,410,215,7-16,8-32,4-5,3 Net Profit*2,47,011,1-16,8-32,4-5,3 Balance Sheet Total Assets401,8498,7655,6736,7782,7797,7 Shareholders’ Equity161,2197,0230,1236,6242,3238,9 June 2011 GUNES SIGORTA IN FIGURES

26/10/2010October MARKET SHARE DEVELOPMENT Comparison of Top Ten Companies MARKET SHARE DEVELOPMENT Comparison of Top Ten Companies FIRE Axa14,88%15,41%14,22% Anadolu12,13%11,80%11,49% Ak7,52%7,67%7,11% Allianz8,99%9,16%9,21% Groupama7,05%6,86%4,37% Guneş7,58%6,83%6,50% Yapı Kredi5,06%4,72%5,23% Eureko6,16%6,51%6,38% Ergo5,85%5,18% Mapfre Genel 3,51%3,52%3,12% June 2011 GUNES SIGORTA IN FIGURES MARINE Axa9,79%10,28%8,79% Anadolu10,2110,40%10,13% Ak7,77%6,69%5,43% Allianz10,93%10,27%9,06% Groupama5,55%5,22%5,27% Guneş5,21%4,75%4,70% Yapı Kredi3,94%3,70%3,72% Eureko6,07%6,61%6,21% Ergo10,94%10,17%10,58% Mapfre Genel5,88%5,66%6,79%

26/10/2010October MARKET SHARE DEVELOPMENT Comparison of Top Ten Companies MARKET SHARE DEVELOPMENT Comparison of Top Ten Companies June 2011 GUNES SIGORTA IN FIGURES LAND VEHICLES Axa17,79%16,24%14,87% Anadolu12,51%12,98%15,13% Ak10,06%9,86%9,89% Allianz6,57%6,40%6,24% Groupama8,32%8,20%6,57% Guneş7,04%6,99%5,48% Yapı Kredi4,00%3,73%4,74% Eureko4,11%3,94%4,89% Ergo7,67%7,60%7,31% Mapfre Genel3,45%3,86%3,61% MOTOR TPL Axa13,15%14,69%20,55% Anadolu9,19%10,60%9,48% Ak8,33%7,04%5,32% Allianz5,14%4,18%3,65% Groupama9,15%7,29%6,18% Guneş7,80%7,76%7,53% Yapı Kredi2,48%2,02%2,18% Eureko1,41%1,63%2,14% Ergo12,12%10,56%6,82% Mapfre Genel3,72%3,49%4,16%

26/10/2010October MARKET SHARE DEVELOPMENT OF TECHNICAL BRANCHES MARKET SHARE DEVELOPMENT OF TECHNICAL BRANCHES June 2011 GUNES SIGORTA IN FIGURES HEALTH Axa0,23%0,71%3,71% Anadolu10,10%10,82%10,31% Ak7,74%8,28%8,08% Allianz19,10%18,57%17,81% Groupama4,88%4,91%5,64% Guneş4,52%4,10%3,30% Yapı Kredi21,76%20,11%19,78% Eureko1,94%1,95%2,53% Ergo1,16%2,75%3,21% Mapfre Genel2,19%2,24%2,25% GENERAL LOSSES Axa%8,60% 9,94% 7,41 Anadolu%9,67% 10,64% 11,16 Ak%7,55% 9,23% 6,47 Allianz%6,48% 6,25% 5,15 Groupama%10,11% 9,91% 9,59 Guneş%11,29% 9,31% 10,01 Yapı Kredi%4,67% 4,64% 5,56 Eureko%8,49% 10,45% 8,15 Ergo%4,41% 2,80% 3,03 Mapfre Genel%4,76% 4,44% 4,63

26/10/2010October OUR REINSURANCE PANEL June 2011 GUNES SIGORTA IN FIGURES Our Treaty Reinsurers European Market Far East Market Middle East Market Facultative Placements Fire Local Engineering Local & Middle East Markets Liability London Market Marine Local

26/10/2010October STRATEGIC FOCUS AREAS June 2011 GUNES SIGORTA IN FIGURES

26/10/2010October TURKISH MARKET REQUIREMENTS June 2011 GUNES SIGORTA IN FIGURES Back to back cover As per original policy terms, warranties, clauses and conditions Follow the original settlements/fortune in every respect Subject to Turkish Law, Practice and Jurisdiction

26/10/2010October CONTACT INFORMATION GÜNEŞ SİGORTA A.Ş. Güneş Plaza, Büyükdere Cad. No: Esentepe-Şişli / İSTANBUL Tel: Fax: June 2011 GUNES SIGORTA IN FIGURES

26/10/2010October 2010 Thank you for your attention 36