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

2. 26/10/2010October 20102 National Income: GDP : 1.080 Billion TL = 717 Billion USD GDP per capita: 9 728 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

3. 26/10/2010October 2010 NON LIFE 11.528.123.146 TL which represents 81,58 % of the total premium income and a growth of 14,5 % compared to 2009. Premium Income 2.602.153.036 TL which is 18,42 % of the total premium income and a growth of 17,53 % compared 2009. MARKET INCOME 3 14.130.276.182 TL, an increase of 15 % compared to 2009 LIFE June 2011 TURKISH INSURANCE INDUSTRY

4. 26/10/2010October 20104 PREMIUM PRODUCTION (2006-2010) Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

5. 26/10/2010October 20105 PREMIUM INCOME SPLIT 2010 The below graphs shows market share of the branches for 2010. 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

6. 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

7. 26/10/2010October 2010 7 TOTAL PREMIUM PRODUCTION PER CAPITA (USD) Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

8. 26/10/2010October 2010 LIFE & NON LIFE PREMIUM PRODUCTION (TL) 2006-2010 LIFE & NON LIFE PREMIUM PRODUCTION (TL) 2006-2010 20062007200820092010 Change between 2010-2009 Accident3.3613.9753.3593.2143.71615,60% Health9831.2181.3271.4151.70520,50% Air Vehicles&Liability006310498-6,50% Marine3463654143744078,70% Fire1.5851.7171.8721.9942.0653,50% General Losses4856198229309936,80% MTPL1.4791.6512.0602.2492.54513,10% General Liability0023325132830% Credit&Suretyship8143745486,60% Legal Protection263932364320,70% Total Non-Life8.2749.59710.19910.61411.94812,60% Total Life1.3861.4121.5751.8222.18119,70% Total9.66011.01011.77414.43614.12913,60% Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY 8

9. 26/10/2010October 2010 9 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 2009. 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 2009. While loss ratio in Accident and health branches are improving, general liability branch produce a technical loss in 2010. Fire loss ratio improved to 31.46% in 2010 from 63.11 in 2009, which this branch had important flood losses in September 2009. On the other hand overall, new reserving had also high contribution to the worsening of the technical results in 2010. 2009 (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

10. 26/10/2010October 2010 10 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

11. 26/10/2010October 2010 11 FINANCIAL RESULTS Non-life companies total return on equity is decreasing as from 2008 and in 2010. 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

12. 26/10/2010October 2010 12 CHANGE IN MARKET SHARES Branches 2010-12 Premium Production (TL)SHARE(%) 2009-12 Premium Production (TL)SHARE(%)CHANGE ACCIDENT 598.383.0235,01 540.446.2895,0910,72% HEALTH 1.705.491.72914,27 1.415.181.84213,3320,51% LAND VEHICLES 3.116.553.87326,08 2.671.260.77225,1716,67% RAIL VEHICLES 680.8300,01 152.9250,00338,81% AIR VEHICLES 47.397.0580,40 57.327.3850,54-17,32% WATERBORNE VEHICLES 107.866.7800,90 112.590.1141,06-4,20% MARINE 298.641.0842,50 261.394.0342,4614,25% FIRE 1.979.817.59416,57 1.925.464.13718,142,82% GENERAL LIABILITY 993.472.6828,31 934.627.9488,816,30% LAND VEHICLES LIABITY 2.544.954.03121,30 2.249.453.14821,1913,14% AIR VEHICLES LIABILITY 50.256.0180,42 47.104.2050,446,69% WATERBORNE VEHICLES LIABILITY 544.0210,00 374.4880,0045,27% GENERAL LIABILITY 327.658.8442,74 251.945.7092,3730,05% CREDIT 31.775.3410,27 27.711.7070,2614,66% FIDELITY GUARANTEE 16.452.8760,14 16.641.8190,16-1,14% FINANCIAL LOSSES 84.708.0560,71 65.386.7670,6229,55% LEGAL PROTECTOIN 43.349.3410,36 36.693.3640,3518,14% NON-LIFE TOTAL 11.948.003.182 100 10.613.756.654 10012,57% Source: Association of Insurance and Reinsurance companies of Turkey June 2011 TURKISH INSURANCE INDUSTRY

13. 26/10/2010October 2010 13 PREMIUM PRODUCTION PER DISTRIBUTION CHANNELS(%) PREMIUM PRODUCTION PER DISTRIBUTION CHANNELS(%) Non-Life 20092010 Direct Sales6,397,46 Insurance Agencies70,6069,10 Bank Agencies12,4813,40 Brokers10,5610,10 June 2011 TURKISH INSURANCE INDUSTRY

14. 26/10/2010October 2010 14 MARKET COMPOSITION INSURANCE AND REINSURANCE COMPANIES 20062007200820092010 Insurance companies5356595862 Life21 232224 Non life323536 38 Reinsurance companies22222 TOTAL5558616064 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

15. 26/10/2010October 201015 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 2009. June 2011 TURKISH INSURANCE INDUSTRY

16. 26/10/2010October 201016 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

17. 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 2010.  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

18. 26/10/2010October 2010 18 HIGHLIGHTS  Medical Malpractice Medical malpractice insurance became compulsory in Turkey in July 2010. 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

19. 26/10/2010October 2010 19 HIGHLIGHTS  Recent MTPL limits are stated as 20.000/40.000 TL for material damage and for 200.000 TL for bodily injury from 01.01.2011 and those limits are still considered to be low and do not provide enough coverage for insured.  Maximum limits for TCIP are increased from 140.000 TL to 150.000 TL as of 01.01.2011 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

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

21. 26/10/2010October 2010 GUNES SIGORTA – PROFILE Corporate name : Güneş Sigorta A.Ş. Date of Foundation : 17.09.1957 Authorized Capital : 300.000.000 TL Paid Capital : 150.000.000 TL 21 SHAREHOLDERS AMOUNT OF SHARE TRY. RATE OF SHARE % Türkiye Vakıflar Bankası T.A.Ş. 51.336.30234,22 Groupama International 45.000.00030 Vakıfbank Employees Private Social Security Services 15.000.00010 T.V.B. Employees Retirement&Health Funds Foundation 7.515.0005,01 Stocks offered to the Public 31.148.69820,77 Total 150.000.000100 GUNES SIGORTA IN FIGURES June 2011

22. 26/10/2010October 2010 KEY FIGURES 22 20102009 Number of Policies3.093.6013.038.702 Total Premium Production737.368.263727.074.961 Paid Losses439.169.040438.878.201 Growth Rate (%)1,42,5 Rank65 Market Share6,47,22 Technical Profit (TL)19.335.478,0034.177.927,00 Net Profit (TL)-32.445.443,00-15.138.120,00 Number of Agencies2.654,002.439,00 June 2011 GUNES SIGORTA IN FIGURES

23. 26/10/2010October 2010 KEY FIGURES 23 Premium Production 2009-2010 Premium Production (TL) 20102009 Fire107.059.126107.838.563 Motor & Misc. Accident246.450.202258.118.465 Motor TPL185.994.659168.344.839 Health56.208.41958.012.183 Others141.655.857134.760.911 Total 737.368.263727.094.668 June 2011 GUNES SIGORTA IN FIGURES

24. 26/10/2010October 201024 KEY FIGURES June 2011 GUNES SIGORTA IN FIGURES

25. 26/10/2010October 201025 OUR AGENCY NETWORK June 2011 GUNES SIGORTA IN FIGURES YEARS1998199920002001200220032004200520062007200820092010 T.VAKIFLAR BANKASI 355359350322299294292301302340420 442538 OTHER BANKS 6787903142658089107223205 271279 BROKERS710121723283339474854 5962 EXCLUSIVE AGENTS 6937037888118679119469659821.2381.4211.6671.760

26. 26/10/2010October 201026 OUR AGENCY NETWORK Development of Exclusive Agency Network Development of Bankassurance June 2011 GUNES SIGORTA IN FIGURES

27. 26/10/2010October 201027 PREMIUM PRODUCTION BRANCH20092010RoC ACCIDENT11.766.59712.385.8955,3% HEALTH58.012.18356.208.419-3,1% LAND VEHICLES186.817.241170.915.777-8,5% AIR VEHICLES16.110.72817.380.6297,9% MARINE HULL13.789.2807.867.247-42,9% MARINE CARGO12.407.09914.021.24913,0% FIRE131.446.919128.725.398-2,1% GENERAL LOSSES86.583.94699.461.27214,9% LAND VEHICLES LIABILITY168.344.839185.994.65910,5% AIR VEHICLES LIABILITY22.641.88824.520.2068,3% MARINE LIABILITY000,0% GENERAL LIABILITY11.351.82512.263.7248,0% CREDIT81.9573.814-95,3% SURETYSHIP1.753.8561.821.6413,9% FINANCIAL LOSSES2.242.5242.182.841-2,7% LEGAL PROTECTION3.671.1273.615.494-1,5% TOTAL727.022.010737.368.2631,4% June 2011 GUNES SIGORTA IN FIGURES

28. 26/10/2010October 201028 FINANCIAL INDICATORS (Million TL)200620072008200920102011-1Q 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-196-233,1-269,0-308,6-341,8-84,4 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

29. 26/10/2010October 201029 MARKET SHARE DEVELOPMENT Comparison of Top Ten Companies MARKET SHARE DEVELOPMENT Comparison of Top Ten Companies FIRE200820092010 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 200820092010 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%

30. 26/10/2010October 201030 MARKET SHARE DEVELOPMENT Comparison of Top Ten Companies MARKET SHARE DEVELOPMENT Comparison of Top Ten Companies June 2011 GUNES SIGORTA IN FIGURES LAND VEHICLES 200820092010 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 200820092010 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%

31. 26/10/2010October 201031 MARKET SHARE DEVELOPMENT OF TECHNICAL BRANCHES MARKET SHARE DEVELOPMENT OF TECHNICAL BRANCHES June 2011 GUNES SIGORTA IN FIGURES HEALTH200820092010 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 200820092010 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

32. 26/10/2010October 201032 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

33. 26/10/2010October 201033 STRATEGIC FOCUS AREAS June 2011 GUNES SIGORTA IN FIGURES

34. 26/10/2010October 201034 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

35. 26/10/2010October 201035 CONTACT INFORMATION GÜNEŞ SİGORTA A.Ş. Güneş Plaza, Büyükdere Cad. No:110 34394 Esentepe-Şişli / İSTANBUL Tel: +90 212 444 19 57 Fax: +90 212 355 64 64 www.gunessigorta.com.tr June 2011 GUNES SIGORTA IN FIGURES

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