Contents - AvivaSA Emeklilik ve Hayat

Transcription

Contents
I.
Introduction
02
03
06
07
08
10
11
12
Shareholding Structure
Financial and Operational Indicators
Mission, Vision
Values
Milestones
Sabancı Group and Aviva
AvivaSA at a Glance
2013 Briefly...
II.
Overview
16
20
24
Message from Chairman Haluk Dinçer
Message from CEO Meral Eredenk Kurdaş
Macroeconomic Outlook and Sector Overview
III. Year 2013 Operations
28
29
30
35
37
39
40
42
42
43
Private Pension
Life Insurance
Private Pension and Life Insurance on Channel Basis
30
Bancassurance
31 Corporate Projects
32 Direct Sales and
Agencies
34 Other Channels
Customer Relations
Brand and Communication Activities
Human Resources Practices
Research and Development Activities
Support Activities
Project & Application management
Corporate Social Responsibility
IV. Information on Management and
Corporate Governance Activities
47
48
52
54
57
57
58
59
60
62
62
63
64
Organization Chart
Board of Directors
Senior Management
Corporate Governance Principles
Information Disclosure Policy
Dividend Distribution Policy
Legal Explanations
Explanations on Custom and Public Audits During the Accounting Period
Summarized Annual Report presented to the General Assembly
Remuneration of Board Members and Senior Managers
Annual Report Compliance Statement
Independent Auditors’ Compliance Opinion on Annual Report
AvivaSA Emeklilik ve Hayat A.Ş. Year 2013 Affiliation Report
V.
Audit, Financial Information and Risk Management
68
68
68
70
72
Internal Audit
Internal Auditors
Internal Audit Activities
Assessment of the Financial Situation, Profitability and Claims Payment Efficiency
Information on Risk Management Policies by Risk Type
VI. Financial Statements and Independent Audit Report
80
Financial Statements and Independent Audit Report
Shareholding Structure
Continuing to operate under the joint umbrella of Aviva, the
biggest insurance company of the UK, and Sabancı, Turkey's
leading group, AvivaSA is a company making all its
stakeholders proud of being part of it, for its strong
financial structure.
Real Person Shareholders
%0,34
Aviva
Europe
SE
%49,83
* Neither the Chairman nor any member of the Board of Directors, CEO,
Senior Managers do not hold Company shares.
2
AvivaSA Annual Report 2013
Hacı Ömer Sabancı
Holding A.Ş.
%49,83
Financial and Operational
Indicators
AvivaSA maintained its consistent progress in financial
management, premium production and profitability in the
year 2013 as well, and has achieved to increase its
premium production by more than double in the last
five-year period.
Financial Indicators, TL million
2009
2010
2011
2012
2013
Average
Annual
Growth
Rate
(2009-2013)
Total Premium and Contribution
756
847
971
1,294 1,619
21%
2,782
3,391
3,845
4,958 5,887
21%
Paid-In Capital
36
36
36
36
36
-
Equities
94
123
151
169
157
14%
Net Financial Income
13
11
29
20
40
33%
Gross Profit Before Taxes
17
32
39
53
41
26%
Net Profit After Tax
17
30
32
39
31
17%
Net Profit After Tax/
Equities
17.8
24.1
21.2
23.0
19.5
1.7%*
Total Assets
* The Net Profit before Taxes / Equities ratio has been calculated as the growth rate for 2009-2013.
Introduction
3
Financial and Operational Indicators
With the innovations introduced
by the new private
pension law, especially the 25%
state contribution, the private
Pension System is expected to
50%
rise in Premium Production
in Life and Accident
232.9
Branches
in the last
197.5 TL million
TL million
5 years
154.9 155.3 148.4
TL million TL million TL million
reach a total fund volume of TL
300 billion within a decade. And
having expanded the number of
its corporate customers by
125% over
the past five years, AvivaSA
successfully maintains its
leadership of this segment.
2009
2010
2011
2012
2013
100%
rise
in the number of Corporate PPS
997
companies
customers in the
612
companies
last 5 years
543
495
companies
2010
2011
443 companies
companies
2009
4
2012
2013
67%
152%
rise in equities
in the last 5 years
169
157
TL million TL million
151
rise in PPS Fund
Size in the last
5 years
TL million
123
2.6
TL billion
TL billion
94
2.0
TL million
TL billion
2010
2011
2012
2013
2009
2010
rise in the number
617.377
of
PPS Participants in
the last 5
491.683
years
rise in total
assets
in the last
5 years
2013
2012
5.9
TL billion
5.0
TL billion
3.8
420.980
3.4
350.698
307.918
2010
2011
112%
100%
2009
4.1
TL billion
3.0
TL million
2009
5.0
TL billion
TL billion
TL billion
2.8
TL billion
2011
2012
2013
2009
2010
2011
2012
Introduction
2013
5
Our
Mission
Misyonumuz
To be a reliable, innovative and
sustainable company generating
effective financial solutions to your
changing and developing needs of
saving and protection
Our
Vision
Vizyonumuz
Building a popular and
WHERE IS
THE WORLD
HEADING TO
[A PERSPECTIVE OF
FUTURE]
OUR ROLE IN THE
CHANGING W ORLD
[OUR RAISON D'ETRE]
OUR ACTION PLAN
[OUR STRATEGY]
OUR VALUES
[OUR CULTURE]
preferred safety net
6
Values
Değerlerimiz
Our business perspective is guided by high ethical
standards and values:
In AvivaSA, we
care our
customers, each
other and groups
we work with very
much.
Care more
Eliminate
the
chaos
Never
stop
Create
the future
In AvivaSA, we are
committed to make
things simpler for our
customers and for
each other. We,
instead of the
customers, manage
the chaos.
In AvivaSA, we
think bigger
everyday and push
the envelope to do
the better one, the
different one for our
customer.
In AvivaSa, for our
customers and for
each other, we strive to
create a brighter and
more sustainable future
than what we have
come into in every
area.
Do's
Don'ts
• I'll put myself in my
customers' and
workmates' shoes
• I'll always search
and find the fault
• I'll treat the company's
money as if it is mine
• I will not let the fear
block the right way
• I will not use the figures
as an excuse
• I will not apply the
processes without thinking
and questioning first
Do's
Don'ts
• I'll make the works as
simple as they can be
understood by
everyone
• I'll keep the works plain
• From start to finish, I'll
keep in mind what the
customer expect from
me at the end of this
work
• I will not create any new
process, unless it is very
critical for our success
• I will not include people in
processes in vain just to
protect myself
• I will not reinvent the
wheel
Do's
Don'ts
• I will be content with
the status quo
• I will not repeat the
same mistakes
• I will try not the do
everything alone.
• I will not create any new
process, unless it is very
critical for our success
• I will not include people in
processes in vain just to
protect myself
• I will not reinvent the
wheel
Do's
Don'ts
• For the future, I'll leave
something much better
than what I found
• Even 20 years later, I'll
be as proud of my
decisions
as today
• I'll make a contribution to
the society
• I will not work for
short-lived gains
only
• I will not change a
method, unless the
changed form will provide
higher returns
• I will not tarnish our
legacy
Introduction
7
Kilometre
Milestones
Taşları
Thanks to its
sustainability activities
continued since its
establishment, AvivaSA
is the leader of its own
sector.
Jul. 07, 2003
The company obtained a license from the
Undersecretariat of the Treasury to operate
in the private pension segment.
Jan. 31, 2003
The company determined its name as
AK Emeklilik A.Ş.
Dec. 03, 2002
The company received authorization from the
Undersecretariat of the Treasury to become
a pension company.
Oct. 03, 1995
The company changed its name to
Akhayat Sigorta A.Ş.
1997
Commercial Union’s share
in this partnership rose
from 65% to 90%.
Dec. 06, 1941
AK Emeklilik A.S. was founded
as Doğan Sigorta A.Ş.
in Istanbul.
1991
Commercial Union Hayat was
founded through a partnership
between Commercial Union Plc.
and Finansbank.
AK Emeklilik
8
Aviva Hayat ve Emeklilik
Oct. 27,
2003
Jan. 01, 2013
The sale of pension
products commenced.
The new period started in the
Private Pension System.
Sept. 26, 2003
The private pension
investment funds were
registered by the Capital
Markets Board.
Oct. 31,
2004
2007
Aviva Hayat ve Emeklilik A.Ş. was
transferred to AK Emeklilik A.Ş. The
company title was converted to
AvivaSA Emeklilik ve Hayat A.Ş.
The company name was
converted to
Aviva Hayat ve Emeklilik A.Ş.
2003
Commercial Union Hayat was turned into a private pension and
life insurance company, and started to operate under the name
of Commercial Union Hayat ve Emeklilik A.Ş.
2001
CGNU (currently known as Aviva)
aquired the remaining shares.
Introduction
9
Sabancı Group and Aviva
Sabancı Group at a Glance
Hacı Ömer Sabancı Holding
A.Ş. is the holding company of
firms affiliated to the Sabancı
Group, one of the largest
business groups in Turkey. The
key areas
of interest for the Sabancı Group
include such fast-growing
Turkish sectors as financial
services, energy, cement, retail
and industry, with Group
companies leading their
respective sectors. Sabancı
Holding is listed on the Borsa
Istanbul (BIST) and has
controlling interests in 10 other
listed companies.
Companies under the Sabancı
Group umbrella are currently
active in 18 countries and
market their products to various
regions of Europe, the Middle
East, Asia, and Northern Africa,
as well
as North and South America.
Thanks to its pedigree and
brand image, as well as its
established partnerships,
knowledge and expertise in the
Turkish markets, Sabancı Group
has achieved growth in its core
business fields to become a
driving force of the Turkish
economy.
Sabancı Holding’s
international partners include
prominent global brands such
as Ageas, Aviva, Bridgestone,
Carrefour, Citi, Heidelberg
Cement, Philip Morris and
E.ON.
Sabancı Holding is
responsible for setting the
Group’s vision and strategies
and increasing shareholder
value by ensuring Groupwide synergy, as well
as for the coordination of the
finance, strategy, business
development and human
resources functions.
successfully, Aviva ensures
that they can live a peaceful
life
and a secure and comfortable
retirement period. The biggest
insurance services provider in
the UK, Aviva operates strongly
in China, Indonesia, France,
India,
Hong Kong, the UK, Ireland,
Spain, Italy, Canada, Lithuania,
Poland, Singapore, Turkey, and
Vietnam by providing services
to
31.4 million customers across
the globe.
Aviva at a Glance
With a deep-rooted history of
318 years, the Aviva Group
currently provides portfolio
management services as
well as general, life and
health
insurance businesses. By
assuring its customers' daily life
risks
10
AvivaSA at a Glance
One of Turkey's leading
private pension and life
insurance companies,
AvivaSA Emeklilik ve Hayat
was established on October
31, 2007 through the
merger of AK Emeklilik and
Aviva Hayat ve Emeklilik.
Founded on the vast experience
and financial power of Hacı
Ömer Sabancı Holding, one of
Turkey’s largest groups, and
British insurance giant Aviva, the
company immediately
established itself
as a reliable brand and
leading figure in the
industry.
With its skilled workforce, robust
technological infrastructure,
unique multi-channel distribution
structure and vast client base,
AvivaSA is among the key
players of the private pension
and life insurance industries.
The private pension funds of
AvivaSA, one of the
companies setting the rules
and standards
of the market since its
inception, are managed by AK
Portföy
from the Sabancı Group, one
of the leading companies in
the portfolio management
sector.
The multi-channel distribution
structure, which boosts access to
customers, is a factor that gives
AvivaSA an immense competitive
edge. The multi-channel
distribution structure at AvivaSA
covers Direct Sales, Agencies,
Bancassurance, Telemarketing,
and Corporate Projects, which is
one
of the company’s key strengths.
Through its multi-channel
distribution structure, the
company serves its over 1.9
million customers.
Customer service
model AvivaSA carries out
intensive operations and offers
customers tailored projects in
order to simplify all financial
transactions and increase
customer satisfaction, which is
at the
heart of the company’s
activities, and integrates these
activities into its existing service
model. The company has
adopted providing its customers
with healthy and satisfactory
services as a basic business
principle.
To that end, process maps
for customer-oriented
activities
are created, efficiency projects
are devised, and surveys at
customer contact points,
mystery customer researches,
and customer satisfaction
surveys are conducted.
Savings awareness
In support of its strategy of
establishing the concept of
saving as a main pillar of private
pension and life insurance,
AvivaSA conducts intensive
activities to raise savings
awareness. AvivaSA has an
active and integrated approach
in numerous areas from moneybox design to advertisement
activities, from savingsoriented researches to social
media contests. These
activities highlighted the risks
involved
in unplanned expenditures and
profligacy, and reemphasized
thrift through a discourse in
accordance with the private
pension concept. These
efforts formed the first step of
our strategy.
The Private Pension System
has entered a new period as of
January 1, 2013. Together with
the start of this process, the
issues underlined by AvivaSA
have been verified in the eyes
of the public, and the
importance of the Private
Pension System that is a
savings instrument has
increased.
Since its services coincide
with savings directly, and
thanks to its communication
investments made to promote
this coincidence, AvivaSA is
one of the first brands recalled
in the surveys today.
Year 2013 at first glance
As of end-2013, AvivaSA has
1,504 employees. According
to data released by the Pension
Monitoring Center as of 03
January 2014, it holds a 19.08%
share of the private pension
market with funds almost TL 5
billion. It also holds a 6.6%
share in direct premium
production
for pension and/or life insurance
companies with total life and
accident premium generation of
TL 233 million, according to
data of the Insurance
Association of Turkey (TSB) and
Haymer.
Introduction
11
2013 Briefly...
Turkish private pension funds lead OECD in returns
According to the private retirement funds research carried out by the Organization for
Economic Cooperation and Development (OECD), the highest nominal return was
provided by Turkey-based funds in the economic uncertainty period between 2008 and
2012.
In the average of the last five years, Turkish private pension funds have ranked first
with an annual average return of 11.6 percent. In the ranking based on the real return
net of inflation, Turkey has ranked the third among 34 countries with 3.4 percent real
return.
Considering the area in which the private pension funds are utilized, it was seen that
Turkey is one of the countries preferring mostly the bonds. In Turkey, 16 percent of
the funds have been invested in share certificates.
For details: http://goo.gl/yz2h8F
AvivaSA announces results of “Consumers’ Saving
Tendencies” Survey
AvivaSA shared the results of its traditionalized “Consumers’ Saving Tendencies”
survey for the year 2013 by organizing a press meeting on the day before the “World
Savings Day”. For details: http://goo.gl/yEiouJ
Customer satisfaction has top priority in AvivaSA
AvivaSA’s customer strategy is to “achieve the best customer experience and increase
the customer value by meeting the customers' real needs with simpler and more
flexible solutions compared with anybody else”. In the year 2013, AvivaSA took steps
to
perfect the customer experience and boost the customer satisfaction through
numerous process improvement works such as Customer Contact Points Control
Process, VIP Customer Visit Process, Complaint Management Improvement
Process.
For details: http://goo.gl/uEpZS9
AvivaSA and TÜSAF brings sector together!
One of the leading private pension and life insurance companies, AvivaSA continues to
undersign numerous projects through various cooperations in the sector. One of these
projects making contributions to the fast-growing private pension sector was the
seminars prepared in cooperation with the Federation of Insurance Agencies of Turkey
(TÜSAF).
The first one of the seminars was held in Ankara in April, and the second one in Konya in
June. Later on, the seminars were also held in Osmaniye, Antalya and Izmir, thus bringing
the representatives of the sector together. The agencies have shown great interest in the
seminars at which the situation of the sector was evaluated by the experts.
For details: http://goo.gl/H1nn29
Two grand prizes to AvivaSA!
In the year 2013, AvivaSA was deemed worthy of grand prize in two different
categories in consequence of the evaluation made by yenibiris.com among its
corporate members for the year 2012.
AvivaSA has won the prizes in the following categories: the “Model Employer”
by establishing an effective communication with the candidates and replying to
12
their applications, and the “Fastest Growing Company of the Sector” in the area
of employment in the retirement sector.
For details: http://goo.gl/BwfER7
Introduction
13
ABank and AvivaSA cooperate in PPS for “Mutlu Birikimler”
(Happy
Savings)
Combining AvivaSA’s current market share and high customer satisfaction with its own
power in banking, ABank has offered the “Mutlu Birikimler” scheme, a private
pension product prepared especially for ABank customers.
In the “Mutlu Birikimler” scheme, where the private pension funds will be managed
by Ak Portföy, ABank will acquire the advantage of stable returns and professional
management through the expert portfolio management by Ak Portföy while
utilizing the savers' savings.
For details: http://goo.gl/jvwKSC
AvivaSA and Burgan Bank cooperate in PPS
Burgan Bank, Turkey affiliate of the Burgan Bank Group that is the leader banking
organization in the Middle East and the North Africa, has signed an agency
agreement with AvivaSA.
With this cooperation, AvivaSA has added also the Burgan Bank Group to the bank
channel that is the biggest distribution channel of the company, while Burgan Bank
has made a strong entrance to the private pension sector. With the said agreement,
Burgan Bank has started to sell “Plan Nar” of AvivaSA to its retail customers through
its 60 branches in 20 cities. The Burgan Bank customers who have bought Plan Nar
can also benefit the unique advantages of Geleceğini Biriktirenler Kulübü (Save the
Future Club) offered by AvivaSA to its participants. AvivaSA targets the corporations
and corporate employees by offering special group pension scheme alternatives to
corporate customers of Burgan Bank. The private pension funds in the “Plan Nar”
product are managed by Ak Portföy.
For details: http://goo.gl/0UuqVs
Consultancy Service Package from AvivaSA to SMEs
The SMEs that shift to private pension through the SME PPS Scheme offered by
AvivaSA
via Akbank branches use the human resources consultancy services and
exhibition information line as well as the financial and legal consultancy services
offered by the Inter Partner Assistance (IPA) free of charge for 1 year.
For details: http://goo.gl/O41TMY
AvivaSA supports dismissed people through “Bill Payment
Guarantee”
AvivaSA has prepared a brand-new product for its customers paying their bills through
Akbank. The “Bill Payment Guarantee” insurance secures the insured person's bill
payments in the event of losing his/her job, and also provides its users with a
unique assurance through accidental death or accidental permanent invalidity
coverages. For details: http://goo.gl/7tsvSq
Biriktiren Gelecek (Saving Future) Plan
Thanks to the broad fund range of Biriktiren Gelecek Plan, the AvivaSA customers are
able to utilize their savings as they please in line with their own expectations. The
plan offers numerous advantages in addition to flexible payment periods such 3
months, 6 months, or 12 months.
For details: http://goo.gl/V7EhOz
14
14
II.
Overview
Despite the negative developments in
the global economy, thanks to the state
support started in 2013, the PPS had
the most successful period in its 10-year
history. AvivaSA was the pioneer and
leader of this success with the transactions it
has carried out.
Overview
15
Message from Chairman
Haluk Dinçer
Distinguished from the sectoral competition thanks to its
unique business model supported by the Sabancı Holding's
power and Aviva’s international experience, AvivaSA has left
another successful year behind with 617 thousand
participants, TL 5 billion fund size, and TL 31 million net
profit, in the 10th year of the PPS.
617 thousand
Total number
PPS participants
26 %
rise
From the global economy's
viewpoint, we witnessed great
changes in the expectations and
the risk map in the year 2013.
The political and economic
instability in the European
Union, regarded as the biggest
risk at
the beginning of 2013, changed
direction in the midyear upon the
signals that the FED may drain
the liquidity. Indeed, the FED
has made a US$ 20 billion cut in
total in the monthly bond
16
purchasing
TL 5 billion
Total PPS fund
amount
24%
rise
program in the years 2013 and
2014. The FED’s said decision
has led to a serious atmosphere
of uncertainty in the developing
countries that are dependent
especially on the capital inflow.
There are signals indicating
Japan's tendency of coming out of
its long-continued stagnation. And
the acceleration is positive for the
EU as well, though there are no
remarkable growth figures
yet. Maintaining its successful
performance in the year 2013,
China grew by 7.7 percent. On
the other hand, we see that the
developing countries that are the
powerhouse of the economy are
not as lively as they were.
In addition to the growth
problems in the world, the
ineffectiveness of the solution
scenarios suggested against
the financial imbalances fuel
the
Overview
17
discussions arguing that a
new
economic
balance
environment has begun to
emerge.
Turkey has
survived the winds
of crisis
successfully
The midyear developments in
the US have had impacts on
our country's economy as well.
The size of Turkey’s need for
external financing and the net
18
exchange position of the real
sector led to
the emergence of an atmosphere
of uncertainty in the second of the
year. Yet, Turkey is one of the
countries that has survived the
global economic uncertainty of the
recent years with relatively less
damage.
The growth graph was more
positive as of the first three
quarters of the year, and we
consider it possible to grow
by 4 percent approximately as
of the year-end. Although this
figure is low to meet Turkey’s
development and
socioeconomic needs, it can
be regarded as successful
considering the global
downturn and 2.2 percent
growth achieved in the year
2012. That the growth arises
especially from the domestic
demand and special
investments is pleasing as it
indicates that
the effect of the public sector
on the growth is decreasing and
Overview
19
Message from Chairman Haluk Dinçer
AvivaSA has become a company mentioned rather frequently
and accomplishing successful results in the new
period started in the PPS with the state support.
the investments are increasing.
However, it is difficult to say that
the growth is based on sound
dynamics. Actually, the growth
takes its source from importbased consumption instead of
production, and thus, creates
current deficit. The current deficit
and inflation continue to be
current issues as two important
problems. In spite of the
measures taken by the
Banking Regulation and
Supervision Agency (BDDK)
to decelerate
the economy for the purpose of
decreasing the current deficit,
the our current deficit-national
income ratio is still high. The
inflation is on a band that is
stable in recent years but still
high compared with the targets,
and the expectations for a fall
in
the inflation in the medium term
are weak. The most positive
one of the economic indicators
is the budgetary equilibrium. In
recent
years, there is continuous
success
in managing the budget.
We are cautious
but hopeful for
2014
Yet, a moderate recovery
throughout the year 2013 plus
more positive outlook
compared with the year 2012
give hope
for a continued recovery across
20
economy, the FED's
decisions, the investors' and
consumers' trust, and the
forthcoming general elections
are important factors to affect
the year 2014. We expect that
the growth continues
increasingly, the exchange
rates become
more stable, the budgetary
performance continues, the
structural reforms required to
solve the problems such as the
current deficit, inflation and
unemployment are carried out,
and that the necessary
measures are taken to decrease
the fragility to ensure that the
impacts of the global economic
fluctuations on us become
minimal.
As AvivaSa, we have
left another successful
year behind
State support for PPS
has enlivened the sector
AvivaSA had a successful
year in 2013 using its
strengths in the best way.
Thanks to both our
nationwide campaigns
and intensive promotional and
informational works, AvivaSA
Simultaneously with
commencement of the state
support for the PPS and
enlargement of its scope in the
AvivaSA catches the attention
of the sector for its multichannel distribution structure,
large direct sales team, and the
strong cooperation it has with
the banks, mainly Akbank. It is
a company shown as a model
and followed for its strong
business model, broad range of
products,
and sales and after-sales
services. With the power it has
obtained from Sabancı and
Aviva and its experienced team,
it continues to be an
organization that is highly
recognized, trusted, and setting
the trends in the sector.
year 2013, the sector brisked
greatly. The total fund size has
the globe in the 2014 as well.
However, we also think we'd
better keep on the safe side.
The future performance of the
US
reached TL 26 billion while 1 new
company has participated in the
sector. The 29 percent growth
achieved by the sector despite
the regulations decreasing the
gains of the pension companies
is the biggest success of the
PPS in its 10-year history.
We also observe that the exits
have decreased in addition to 4
million participants.
We have reinforced our
position in the sector
by reaching 617
thousand participants
and TL 5 billion fund
size.
has become a company
mentioned rather frequently
and accomplishing successful
results
Overview
21
in the new period started in the
PPS with the state support.
We have continued to make
contributions to improve two
big structural problems of our
economy such as
unemployment and current
account deficit.
In an environment where we
can employ only half of the
newly emerging workforce in
our country, we have made
a
remarkable contribution through
our human resources of 1,504
employees in total, the new
employment we have created,
and the programs such as the
4Colors Development
Program and the Young
Entrepreneurs Program.
New targets and
initiatives in
2014
In the year 2014, we, as
AvivaSA, want to maintain our
important successes we
achieved in the corporate
projects in the year
2013 through
bancassurance, foundations,
funds, in the medium and
long terms, thus preserving
our respected and successful
position in the sector. As
AvivaSA, we target to
reinforce our strength by
increasing our market share
in the life branch as well
while taking firm steps
towards leadership in the
22
PPS.
We will continue to offer
the top level service without
c
o
m
p
r
o
m
i
s
i
n
g
o
n
t
h
e
c
u
s
t
o
m
e
r
s
a
t
i
s
f
a
c
t
i
o
n
,
ue-added for
our shareholders, customers,
employees, and our national
economy by making the most
of the synergy created by our
operational excellence and
multi-channel structure. We will
continue to invest in technology
and human capital without
pausing. We will share with
you the solutions, cooperation
and opportunities to carry
AvivaSA into future, insofar
as the economic cycle
and circumstances
permit.
I would like to thank mainly to
the Sabancı Group and Aviva
as well as our employees,
solution partners, customers,
and all our stakeholders who
have their
own shares in our successes
and turned AvivaSA into
Turkey's leading company.
Yours faithfully,
Haluk
DİNÇER
Chairman
a
n
d
t
o
p
r
o
d
u
c
e
v
a
l
Overview
23
Message from CEO
Meral Eredenk Kurdaş
In the year 2013, when we made the best of the opportunities in
the PPS and reinforced our market position, we reached 19
percent in return on equity while exceeding
even our own targets with a profit of TL 31 million.
Net Profit of
TL 31 million
19 %
Return on
Equity
Given the economic
development performance in the
last decade, we can say that
2013 was relatively a stagnant
year. The economic stagnation
in the west and the political
instabilities in
the neighboring countries
have had negative effects on
the growth dynamics.
Decreasing trade volume and
consumption demand have
reflected partially on our
country as well.
20
25%
Average rate of
production in the
lief and accident
insurances for the
last three years
New era in PPS
Despite the negative events
affecting the entire world and
our country, 2013 was a
productive year for the private
pension sector. The
anticipations for the year 2013
were cautious due to the slow
growth in the year 2012.
Simultaneously with rising
interest rates and declining
stock exchange in 2013, the
financial performance of the
privatenegative
pension effects.
funds were also
under
together with 25 percent
government contribution that
has mitigated such effects and
also functioned as a catalyst,
the sector has grown faster
than ever before. The positive
reflections have been
observed in three criteria as
increase in entries, decrease
in exits, and improvement in
collections.
According to Pension Monitoring
Center’s
data
ofreached
January 03,
2014,
PPS
has
million participants and a fund
size of TL 26.3 billion. Thus, it
has reached a peak in 10year history of PPS with 33
percent
and 29 percent growths in terms
of the number of participants
and the fund size respectively.
Although there is a little
deviation from the targets in the
fund size, the number of the
participants has exceeded the
anticipations greatly. We expect
and aim that the uptrend in the
PPS goes on unless it
encounters
a very negative cyclical picture,
and work to attain this goal.
AvivaSA reinforced its
strong position in sector
As AvivaSA, we undersigned one of
the most remarkable growth trends
in the sector in the year 2013 by
examining this picture correctly,
analyzing the dynamics accurately,
and by taking the correct position.
We have preserved our market
position by taking the correct
Overview
21
measures and applying the
correct action plans against
the aggressive and instable
picture of competition in
the
beginning of the year. We have
launched numerous
promotional and sales–boosting
campaigns intended for various
customer segments through
various channels, and
supported them with an
advertisement campaign.
We have reinforced our
place in the market by TL 5
billion in
under negative effects.
20
2014, PPS has reached
Message from CEO Meral Eredenk Kurdaş
total fund size and 19 percent
market share. We have
increased our total participant
number to
617 thousand with 15 percent
market share, and preserved
our strong position in the
sector. Thus, we have
increased our fund size by 24
percent
and participant number by 26
percent. We have enhanced
our customer portfolio with the
participation of the groups like
housewives, farmers, youths,
and the self-employed who have
kept relatively away PPS in past
years. Besides, we renewed our
product portfolio in 2013 in line
with
our customers' needs. In
2013, we achieved the first
union
work in our sector with LastikIş. We have used the
government contribution as a
very powerful instrument for all
our channels
in the new participant entries as
well as the improvement of exits
and collections. In addition to a
portfolio including a
representative from each
income and age group, the
customer profile who has higher
education and income level,
thus potential to pay higher
contributions has continued to
head for AvivaSA.
Effective
performance and
assertive targets in
live and accident
insurances
In the year 2013, we
experienced important
developments in
the life insurance as well as
the private pension. We have
launched new life insurance
products to the market within
the scope of our projects
with Akbank in the area of
bancassurance that is one of
our largest distribution
channel. As an outcome of
this and similar projects, we
have acquired 6 percent of the
market through
insurance premiums and a total
premium production of TL 201
million. In the personal accident
insurance, our market share has
become 18 percent through a
total premium production of TL
32 million. Although we have
been increasing our life and
accident insurances production
by 25 percent on average for
the last two years, we can say
that we have a long way to go.
In order to reach our related
targets, we are going to take
new actions in 2014.
Successful target
management
Following the legislative
restrictions on income imposed
in 2013, we had set our target as
“to grow to the extent required to
offset the shrinkage”, and
we have achieved that target.
We closed the year with a result
exceeding even the return on
equity target set for the year
2013. We are among the top
three in terms of the return on
equity among the Sabancı
companies and the markets
where Aviva operates. We will
keep the same targets for the
year 2014 as well.
Leading and different
AvivaSA
We use successfully the
superiority brought by the
confidence and experience
provided by the matchless
cooperation of the Sabancı
Group and Aviva and the power
of being a company using multichannel distribution system.
In addition to the powerful
bancassurance channel that
incorporates numerous banks,
we create the difference through
the channels such as direct sales
team, agencies, telesales, and
Overview
23
the most prevalent company
that has demonstrated its
leadership, the first company
that has established the
corporate projects team, and
that is the market leader by
far. As a company that has
given
financial consultancy licenses
and trainings to over twelve
thousand people, and provided
almost all companies in the
sector with
sales teams and managers,
we can say that we are the
school of this sector. The
difference
created by AvivaSA by
achieving many firsts in the
fund size, customer portfolio,
and product composition
leaves a mark in
the eyes of everyone, and
raises AvivaSA to upper ranks
in terms of the brand value.
AvivaSA distinguishes from
the competition in the fund
performance as well, which
is the issue considered
most important after trust
by the participants. Our
target is to provide the
optimum return against a
stable, sustainable
and controlled risk. To that end,
we work with Turkey's biggest
portfolio management company
Ak Portföy that has created
a difference with its recently
awarded performance in world
standards, risk management
understanding and
governance skills.
We invest a lot in
understanding and listening to
the customer. Through the
customer satisfaction surveys
we conduct regularly, we
improve our customer
satisfaction level every year.
We are more ready
for future with our
values The world is
changing now. And our role
is also changing
21 percent rise in the life
22
corporate projects. AvivaSA
in this changing world. The
people's expectations from
the insurance and private
pension companies are
increasing. We are rewriting
our strategy and action plan in
line with these expectations.
Accordingly, we
have also reviewed and
renewed our values. We have
turned our face towards
understanding the customer
and investing in the customer.
In AvivaSA, we care about our
customers, each other and our
business partners more. We
simplify the works for our
customers. For our customers
and for each other, we are
striving to create a brighter and
more sustainable future than
what we have come into in
every area. In short, we adopt
rescuing the people from the
fear of uncertainty as our raison
d'etre.
We continue to invest
in the human capital
and the infrastructure
for a continuous
success
We are of the opinion that what
creates the difference in the
private pension sector is the
employees approaching to their
jobs professionally, regarding
this job as a long-term
profession, investing in
themselves,
and working for a company
investing in them. The satisfied
employee leads to the satisfied
customer. Therefore, just like
the satisfaction survey we
conduct for the customers, we
conduct
regular satisfaction survey for
our employees every year. We
obtain results exceeding the
European standards in the
employee satisfaction.
In our Metamorphosis
project that will improve the
quality
of our service better by raising
our information technologies
infrastructure above the sector
average, we made a
considerable progress in the
year 2013.
We are strengthening our
infrastructure; thus, we will be
able to coordinate and report all
our processes and projects.
This will facilitate for us to reply
the changing conditions of the
day and the customers'
increasing expectations more
rapidly and efficiently.
periods, and we will be active
in the unions, too. The digital
world, the mobilization of the
sales
team,
the
CRM
projects,
and the other social media
works will be the items of our
agenda.
We will continue to share the
fruits of our successful works
with all our partners. If the
conjuncture and all conditions
internal and external to the
company are suitable in
2014, we hope to carry this
sharing to higher levels, and
reach a broader platform for
sharing.
I would like to thank to all our
employees for their marvelous
performances that ensured
success in 2013, to our
investors whose support we
have always felt, and our
participants who have never
denied their trust to us.
Yours faithfully,
Plans for 2014
In 2014, we will continue to
pioneer the growth in the
PPS. We will keep
growing in the corporate
customers
channel, AvivaSA’s number
first strength area. The unions
will be discussed more in the
future
CEO
Overview
23
Macroeconomic Outlook
and Sector Overview
Global Economic Outlook
The year 2013 was a year that
began with positive
expectations all over the world.
In the first four months of the
year, the developing countries
have accelerated their growth
while the impacts of the
economic crisis on the
developed ones
were continuing in general. The
quantitative easing policy
applied by the US as a way out
of the crisis has shown positive
signs, and the unemployment
figures have dropped in
addition to a positive growth
figure. The stagnation tendency
continuing for long in the EU
region started to be broken.
Japan, one of the most
important economies of
the world, also started to
display the signs of economic
recovery.
This generally positive
outlook of the global
economy has changed in
consequence of
the decisions taken by the
FED (Federal Bank of the
USA) in May 2013. The
anticipations
for a decrease in the fund
flows have led to fluctuations
in the economies and a
slowdown especially in the
capital inflows to developing
countries. The currencies of
the developing countries have
been devalued against the US
Dollar and
EURO. The interest rates in
such countries have risen
steeply,
and
the
stock
exchange markets
have lost value. While it has
been observed that the most
severe effects of a decrease
in the FED's bond purchases
were
on the developing countries,
Turkey has also been affected
by the process.
According to the IMF global
growth forecast, it is considered
that the 3.2 percent growth rate
in the 2012 cannot be reached,
and the global growth rate is
anticipated to be 2.9 percent
in the year 2013. While the US
growth forecast is 1.6% for
the year 2013, the Eurozone
is anticipated to shrink by 0.4
percent in the year 2013. On
the other hand, the global
growth rate for the year 2014 is
anticipated to be 3.6%. The US
is foreseen to grow by 2.6% and
the Eurozone by 1% in the year
2014.
Turkish Economic Outlook
IMF's estimation for Turkey's
growth in the year 2013 that
was unsteady all around the
world is 3.8 percent. Although
the said rate is below Turkey's
averages for the previous
periods, it is one of the biggest
growth rates to occur in the
world.
With 3 percent, 4.5 percent
and 4.4 percent in the first,
second and third quarters of
the year 2013 respectively,
the growth rate in the first
nine months was 4 percent.
Since the industrial production
index that is the precursor of
the growth-related
expectations continues
strongly and points out 4.1%
growth on annual basis in the
final quarter of
24
the year, it is possible for the
year 2013 that the annual
GNP growth rate occurs in
line with the IMF estimation.
A growth uptrend arising
especially
from the domestic demand and
special investments and a
decreasing public sector effect
on the growth attract notice as
remarkable developments.
It is observed that the growth
dynamics arise from importbased consumption instead of
production. In the year 2013,
exportation grew by 0.1% to
reach USD 163 billion, while
importation increased by 6.4%
to reach USD 243 billion. In that
period, the foreign trade
balance has had a deficit of
USD 79.8 billion. USD 11.7
billion of this amount has been
caused by net gold importation.
In the year 2013, the balance
of payments deficit rose rapidly
to USD 65 billion from USD 48
billion in 2012. In terms of the
macroeconomic equilibriums,
the foreign trade and balance
of payment deficits can be
regarded as the most important
problems. Given the fact
that Turkey exports mostly
to the developed countries,
mainly the EU, the
improvements in the growth
rates of the said countries
can be regarded as
positive developments.
Another advantage is the
increased diversification of
the export destination
countries. The rapid rise in
the exchange rate in
the year 2013 will be
another
support
to
competitiveness
of
the
country in foreign trade.
The inflation rates in the year
2013 were disadvantageous
compared with the year 2012.
In the year 2013, the
consumer
prices increased by 1.24 point
y-o-y to 7.4 percent. The
producer prices, on the other
hand, increased to 6.97% in
2013 from 4.52% in the year
2012.
Overview
25
The most remarkable
economic development of the
year 2013 took place in the
budget. Thanks to a
successful budget
management, the budget
deficit was decreased through
a considerable increase in the
revenues, and the revenueexpenditure coverage ratio
has been improved.
The economic
developments throughout
the year 2013 affected the
financing and
banking sectors as well. In the
first nine months of the year
2013,
the asset size of the banking
sector has grown by 25 percent
on annual basis to reach an
asset size of TL 1.558 billion.
The totalassets-to-GNP ratio
has reached
103%. In the same period,
In the first nine
months of the year
2013, the asset size
of the banking sector
has grown by 25%
y-o-y. The totalassets-to-GNP
ratio has reached
103%.
the total credit of the banking
sector rose by 31% on annual
basis according to the
September
2013 data. In the sector,
the capital adequacy is
15.7%.
In the coming period, the
overseas
developments and the results
of the decisions to be taken by
FED will be the issues that
must be monitored carefully for
our country. The significant
need for
external financing, the rising
rates of exchange, the local
elections, and the structural
problems lead to a fragile
economy. That the steps
required to be taken to protect
the economy from the external
impacts and solve the structural
problems cannot be on the
agenda sufficiently due to the
local elections is another
issue to support this fragility. At
such points, the public
authorities and regulatory bodies
are expected to take the
necessary steps in cooperation
and consultancy with the
sector's representatives.
Outlook for Private Pension System and Life Insurance Segment
In 2011, the total domestic
savings rate was the lowest in the
history
of Turkey with 12.2 percent. The
precondition of reaching the target
of making the Republic of Turkey
one of the top ten economies of
the world in its 100th anniversary
is to be able to control the current
account deficit for a high level and
steady growth. The most important
issue in combating the current
account deficit, on the other hand,
is to increase the household
savings. We regard the PPS that
maintains
its organic growth in our country
even in crisis periods as a cure
to the current account deficit for
it
provides a regular saving discipline
in the long run.
The public administration have
negotiated with the sector
24
representatives and pointed out
the PPS to increase the
domestic savings ratio, and at
the beginning of the year 2013,
the “state contribution”
application has been started in
addition to a series of
regulations.
Within the scope of the state
contribution that has made the PPS
one of Turkey's most important
investment instruments, for each TL
100 invested, an additional amount
that is 25% of the contribution amount
is deposited into a separate account
opened on behalf of the participant.
Although 65 percent
of the participants were unable to
benefit from the tax advantage
in the former system, the state
contribution has turned into an
advantage used by all participants.
In the new system, the PPS has
become advantageous also for the
segment such as the self-employed,
the farmers, the craftsmen, and the
housewives, who cannot benefit from
the tax advantage as they do not work
a payroll job. Together with the new
law, the private pension funds have
started to provide very attractive
opportunities such as making
investment in the instruments such
as gold, real
estate investment fund, capital-
protected fund, clearing the way
for remote sales, and raising
the rate
of deducting the PPS
contributions the employers pay
on behalf of their employees
from the corporate tax base to
15 percent.
In addition to this, together with
the regulations made in the
fund operating and
management expenses, the
way has been cleared for the
participants to get higher rates
of return.
Besides, with the new tax
regulations, the withholding
taxation over the capital has
been abandoned.
According to the HAYMER data,
the total production of the direct life
and accident insurance premiums
has risen by TL 728 million to
reach TL 3.5 billion. While it was
a dynamic year due to entries and
exits of different companies into
the sector, the total rate of growth
became 26 percent.
Overview
25
26
III.
Year 2013
Operations
AvivaSA continued to position innovative
products with a customer-oriented
approach, cooperate with new banks,
increase the fund diversification, and offer
the groups special plans in the year 2013
as well.
Year 2013 Operations
27
Private Pension
Within the scope of the high-quality service it offers
to its customers, AvivaSA has positioned new products,
undersigned new cooperations, increased the fund
diversification, and in parallel to such developments, it has
achieved increased customer loyalty and satisfaction.
Innovative
products
In the year 2013, we
analyzed
and started to restructure
our
products on the basis of
our
customers'
needs
by
creating
a joint work platform within
the
scope
of
our
cooperation
with banks for the purposes of
providing the customers with
the best service in the
most
rapid,
timely,
and
beneficial
manner,
increase
the
product
diversification, and rise to
the
upper levels in the
market
against the competition through
numerous
innovative
approaches;
and this restructuring process
is
ongoing.
In relation to the remote
sales that is a different sales
model that has come into our
lives
28
through the new regulation, the
"Fast Retirement" plan has
been positioned in Akbank call
center.
Diversity
funds
of
Biriktiren
Gelecek
Plan
and
the
Emekliliğe
Yatırım Plan enhanced with
fund
diversification,
and
the
Biriktiren
VIP
and
Prestijli
Emekliliğe
Yatırım plans made
more
advantageous with the initial
additional contribution were
positioned as the new
private
pension
products.
The
Golden
Retirement Investment Fund
has
been founded to increase
the
investment alternatives for
the
customers.
As
of
01,05,2013,
“AvivaSA Emeklilik ve Hayat
A.Ş.
Standard
Retirement
Investment
Fund”
and
“AvivaSA
Emeklilik
ve Hayat A.Ş. Contribution
Retirement Investment Fund”
have been offered to the public.
We continue to found new funds
special to different risk groups to
increase the diversity of funds.
New co-operations
In order to improve the multichannel distribution structure
and serve more customers, we
have started to sell the PPS
products through Odeabank,
Burganbank, and ABank.
In the year 2013, we continued
to design special group
retirement schemes meeting
the needs of the institutions,
foundations, and funds.
Life Insurance
With its growth rate for the last three years, AvivaSA has
outperformed the sector that has grown by 21.6 percent in the
protection life insurance market.
AvivaSA has grown
considerably in the life
insurance in the last three
years. In the year 2013,
AvivaSA produced TL 178
million life risk premiums with a
growth rate of 31 percent
compared
with the year 2010 when the
company produced TL 79
million premiums.
In the year 2013, AvisaSA
ranked 8th in the market with
a 6 percent market share in
the risk premium thanks to a
33 percent y-o-y increase. The
Bancassurance channel has
been active in the life
insurance
production. With the new banks
with which AvivaSA established
strategic partnerships in the
Bancassurance in the year
2013, AvivaSA's strategic target
is to become one of the top
three in the sector.
New products
In the year 2013, under the
slogan of "Enjoy the security of
insurance and get your
premiums
back!”, AvivaSA launched
its "Refund of Premium Life
Insurance" product in which the
insured person gets all of the
premiums s/he paid back when
his/her insurance period
expires,
and if the risk occurs before
expiry of the insurance period,
the survivors are secured. This
product offers death, life and
accidental death coverages.
In the branches and call center
of
Akbank, numerous new
products
meeting different needs have
been positioned and continue to
be positioned.
Within this scope, the products
such as the “Bill Payment
Guarantee” through which
AvivaSA pays the bills of the
persons who pay their bills
through Akbank if they lose their
jobs, the "Continuing Education
Insurance" that guarantees the
children's education in case of
their parent's accidental death or
invalidity, and the "PPS Saving"
that secures the PPS savings
against the risks of life.
Targets for the year 2014
AvivaSA's target is to become
one of the top three companies
in the life insurance permanently
and race to the top within the
next three years by increasing its
share of the life insurance market
every year progressively. The
action plans for the year 2014
are being prepared in parallel to
this target.
It is planned to maintain the
high growth rate achieved in
the life insurances in the last
two years and attain a growth
of 25 percent on average
(Risk+Personal Accident
Insurance) in the year 2014. It is
targeted to achieve the growth
with the loan-related products
called Free Life Products,
particularly both the loan-related
29
and non-loan-related
products for the SME
segment.
Large product portfolio
AvivaSA’s large life and
personal accident insurance
product portfolio includes the
following products:
Life Insurances
• Plus Money Insurance
• Plan B Yearly Life Insurance
• Life Insurance Protecting PPS
• Check Life Insurance
• Refund of Premium Life
Insurance
• My Life Support Insurance
• Life Insurance with SME Loan
• Easy Life Insurance
• Credit Life Insurance
• Custom-Made Life Insurance
• Continuous Education
Insurance
• Long Term Life Insurance
• VIP Life Insurance
• Life Support Insurance
Personal Accident
Insurances
• ATM Personal Accident
Insurance
• Personal Accident Insurance
with Benefits
• My Child’s Education Insurance
• Express Personal Accident
Insurance
• Personal Accident Insurance
• Individual Protection Aegis
• Teller PAI
30
Private Pension and Life
Insurance on Channel Basis
Bancassurance
AvivaSA’s biggest
distribution channel,
Bancassurance
produced almost TL 700 million
PPS premium in 2013, thus
accounting for 50 percent
of AvivaSA’s total premium
production.
The contract production, on
the other hand, has grown by
70 percent. We have reinforced
our strong position in the
bancassurance channel by
establishing business
partnerships with new banks.
The consistent performance
continuing for the last 2 years in
the Life and Personal Accident
production and corresponding to
105 percent growth continued in
the year 2013 as well.
Especially in the life products,
we have grown by 40 percent yo-y
with a development
exceeding the market by 10
points approximately.
Cooperation with
new banks
In addition to our long-lived
cooperation with Akbank,
Odea and ABank as well as
Burganbank have joined the
AvivaSA family within the
year. The experience acquired
from our long-lived
cooperation
with Akbank and the project
NEXT developed in the light
of such experience are
expected to play an important
role in
our cooperation with the
abovementioned banks.
In order to achieve the
operational
excellence, we
Thanks to the projects carried
out with the business partner
Akbank within the scope of the
Bancassurance Transformation
Program started to serve the
customers better, simplify the
sales processes, strengthen
the technological integration,
create a product portfolio
suitable for the bancassurance
channel,
and increase the strategic
harmony and coordination in
the bancassurance channel
expected to have a high
potential for growth, all of the 8
planned products were launched
in the year 2013. Additionally;
the bancassurance channel has
increased by 75 percent to
reach
324 in total.
In this process, the team
composed of the Branch
Insurance Managers who are
expert on private pension and
life insurance and have been
working in this area for 8
years
has been enlarged by 75
percent, thus supporting the
business partners intensively
and creating
a considerable amount of
value- added in achieving the
goals.
• The Call Center (CC) product
catalog has been enhanced.
• Within the scope of
improvement of the operational
processes, the renewal and
collection projects have been
completed.
• Akbank CC has started to sell
the PPS products.
• Within the scope of Customer
and Analytics, the projects
for enhancing the customer
information, customer
campaigns, and customer
profiling have been completed.
• Within the scope of the
Performance Management/
Infrastructure, the CRM
integration, infrastructural
improvements, and the Target
Performance Management and
Reporting projects have been
completed.
• The committees have been
In the year 2014, the assertive
growth target in the Private Pension
and Life markets will be continued.
We will continue to expand the
sales organization to achieve this
goal and to create value for the
business partners while achieving it.
enhanced for an effective
management of
bancassurance.
We are making efforts for
establishment of a structure to
bring together and integrate
the institutions to transform
the bancassurance into a
channel that is more efficient,
launched the project
NEXT with the
Important steps
have been taken in
the infrastructure
The year 2013 was an active
and efficient year for
bancassurance. Using NEXT,
the operation- related processes
have been accelerated, the
period of completing the
applications and channeling to
collection has
been shortened, thus
achieving important
improvements.
Plans for 2014
cooperation of Akbank.
31
• The projects for making
product sales and creating sales
opportunities through alternative
distribution channels have been
completed.
• The sale organization has
been restructured. Thus,
the number of the Branch
in
32
more effective and suiting a
leading company. The
following developments such
as
• Policy printing after central
renewal,
• Policy services,
• Complaint management,
Insurance Managers serving
• Cancellation/persuasion,
• Product sales through Akbank
retail internet branch and
• Product,
which continue within the
scope of the Bancassurance
Transformation Program and
will raise the current target of
growth, will be continued.
Keeping and improving the
penetration ratio in the loanrelated products and will be
one of our most important
focal points. We will keep
the aggressive growth rate
particularly in the SME
segment,
and continue to concentrate on
the free products, and support
the growth target through the
newly positioned products,
effective use of the alternative
distribution channels, and
campaigns.
Corporate Projects
Widespread
service, strong
position in
corporate projects
While working with companies’
human resources
departments, the Corporate
Projects team focused on
minimizing
their workload, maximizing
productivity, and inspiring
trust through uninterrupted
services. AvivaSA offers its
corporate customers a
boutique service designed to
meet their needs, thanks to its
enhanced technological
infrastructure, after-sales
services customized for
corporations, and the
innovative approach in its
It provides almost
1,000 corporations and
over
60 thousand corporate
employees with private
consultancy
and
service with its team of
30
experts.
first
operational processes. The
Corporate Projects team is
located at the Head Office
in Istanbul, as well as at
expanded its customer
portfolio with a “turn-key
project approach”. Corporate
Projects maintained its
leadership in
The number of the
corporate
customers served
has reached
60 thousand with
9 thousands new
participations.
the employer-sponsored group
retirement market in the year
2013 as well. Thus, the
number of the corporate
customers
has increased by 21.9
percent. According to data
issued
by the Pension Monitoring
Center on 3 January 2014,
AvivaSA ranks fourth with
TL
788,329,743 and 14.4 market
share in the amount
channeled to investment in
the Group Private Pension
Contracts and EmployerSponsored Group
Pension Certificates, and
the
regional offices in Ankara,
Adana and Izmir.
In the year 2013, a new unit was
established within the Corporate
Projects Department, composed
of experts on the transfer of
foundations, funds, etc. to the
private pension system. Thanks
to its expert and experienced
staff and the experience gained
in the processes carried out,
the Corporate Projects team
has become a team that
guides, forms the sector, and
gets involved actively in any
tasks supporting the
development of this market.
Focused on the customer
satisfaction and differentiating
in the current corporate
customer management in
parallel to growth, the Corporate
Projects team has established
its own ‘Corporate Portfolio
Management’ team within the
Corporate Projects team, and
started to serve its corporate
customers more effectively and
rapidly.
Customized solutions for
associations,
foundations
A successful year The
year of 2013 was a
productive one, during which
the Corporate Projects team
33
with TL 246,541,006 and
29.7 percent market share
in the amount channeled to
investment in the EmployerSponsored Group Pension
Certificates only.
In the year 2013, AvivaSA won the
Central Bank - Mervak tender, and
become one of four companies
selected to work with Mervak.
and unions
The Corporate Projects team that
is
in contact with the unions in parallel
to transfer of foundations and trusts
to the private pension system plays
an active role in the shift of the
trade
union member companies to the
private pension system.
AvivaSA Bancassurance
team has started and is
continuing
34
to sell group pension to the
corporate segment customers
of the banks with which it has
agency agreements. The
target is to reach a market
share of
30 percent in the transfers to
be made by 31/12/2015 that
is the deadline for transfer of
foundations, funds, etc. to the
private pension system.
Serving SMEs
efficiently The Commercial
Branches Management unit
within the Corporate Projects
department has taken a more
active role in selling group
private pension plans to
SMEs, making it a channel in
which 400 percent growth has
been achieved compared to
the year 2012.
AvivaSA thus launched various
projects meant to expand its
short- and medium-term market
share profitably among mediumscale companies, especially the
commercial clients of its
biggest distribution channel,
Akbank.
Effective
promotional
activities
The year 2013 was a year in
which the broker channel and the
Corporate Projects increased the
production volume especially in
the segment of multinational and
large-scale firms. It is expected
that the share of the production
to be made in the broker
channel
in the total production volume
is to increase in the year 2014,
and with this strategy, the broker
channel has been positioned as
a
separate sub-channel within the
Corporate Projects channel.
The company provided solutions
to its current customers through
a consistent fund performance
management system and
continuous information flow. Its
after-sales services work
principles
have provided assistance to our
customers, and helped them
enjoy the continuous support
of AvivaSA. During the year, the
team made stand presentations in
approximately 400 corporations,
increasing the customer
satisfaction.
The company continues to
develop new projects
aimed at further
simplification and
enhancement of corporate
solutions and services offered to
the human resources managers
of the company’s existing
corporate customers.
AvivaSA’s primary target in
2014 is also to make efforts
towards increasing the
satisfaction of existing
customers, and to
achieve profitable and
sustainable growth by managing
the project processes of the large
and multinational firms,
associations, foundations and
trusts that can create a
competition acceleration in the
sector.
Direct Sales and Agencies
Developmentoriented Direct Sales
Channel continues to
grow
One of AvivaSA’s most
important distribution channels,
the Direct Sales channel boasts
the largest and most wellestablished direct sales team in
the Turkish private pension and
life insurance sector. The PPS
premium production carried out
with an ever- increasing
acceleration for years by the
Direct Sales Channel composed
of totally 699
Managers and Financial
Advisers rose by 29 percent yo-y in the year 2013. When we
look at the new business
production data,
Having the largest
and most wellestablished team
of Turkey with 699
Managers and
Financial Consultants,
the Direct Sales
Channel has grown
by 68 percent in new
business production.
35
2013 thanks to the positive
sectoral developments caused
by the state contribution.
In the year 2013, the sales
dynamics in the Direct Sales
Channel were supported through
7 campaigns to encourage new
we see that there is 63 percent
y-o-y increase.
Given the rising production and
high productivity per employee
in
36
business productions,
additional contribution, and
lump sum payments.
development of our Channel
and Consultants was one of
previous years, the Direct Sales
Channel continued to perform
very well throughout the year
our focal points. All the year
round, numerous trainings have
been given enabling the Direct
Sales Channel's new and
existing
Managers and Consultants
to upgrade their financial
competencies as well as their
communicative and sales skills.
Trainings in five different
categories were given during the
year 2013, which can be listed
as follows:
• Private Pension Brokers
License
Training,
• Customer Relations and Sales
Training “iLikeSales”
• Financial Consultant
Development Program
• Impacts of Macroeconomic
Developments on Pension
Funds,
• First Step to Management
(Manager Training Program)
The main target of all these
measures is to reach out to a
larger number of customers,
while preserving the high
customer service standards
of the company. The Direct
Sales channel draws its
strength from the fact that it
functions as a team that sets
its own
precedents. The Channel has a
well-experienced and
competent team of managers
and financial consultants
trained in-house, who provide
top quality services to
customers and continuously
raise the production volume on
the back of references earned
through customer satisfaction.
Another significant trait of the
Direct Sales channel is its ability
to offer customers the most
appropriate product options
combined with the most suitable
budget, and based on efficient
need analysis. Thanks to this,
almost 20 percent of our Direct
Sales Channel customers are
composed of our customers
paying contributions in the
upper segment. In 2013 as in
previous years, Direct Sales far
outperformed the sector in terms
of contribution production per
employee.
The Direct Sales Channel
targeting to increase the
production of life insurance
premiums in the year 2013
has achieved 22 percent
increase
in the premium production
compared with the year 2012.
progress,
The goal of the Direct Sales
channel in 2014 will be to ensure
the continuity of its customer
portfolio by maximizing customer
satisfaction, bring the
prospective customers in the
channel, and
to increase the production
volume by enhancing the
current productivity per
employee.
The fast-growing
Agencies channel
The Agencies channel was
reinforced in 2010 with a new
management team. It continued
its growth momentum in 2013
and grew by 100 percent
compared with the last year. The
total new business grew by 151
percent y-o-y in the year 2013.
In 2013, the “4Colors
Development Program” and the
“Young Entrepreneur Program”
in support of development
and productivity growth in
the channel were continued
successfully as they were
in
the previous years. The former
program supports agencies in
their career and performance
progress, whereas the latter
enables financial consultants
to establish their own
agencies.
AvivaSA initiated the
4Colors Development
Program, a first for the
industry, with a view to
bolstering its nationwide
agency network. This program
supports agencies in their
career and performance
37
and also encourages them
to increase their turnover
with various incentives. In
the year
2013, business partnerships
were established with 88 4Colors
agencies in total, 45 of which are
newcomers.
Furthermore, AvivaSA helps
financial consultants keen on
establishing their own
agency to enter the
insurance sector with
various kinds of support
through the Young
Entrepreneur Program. When
the financial consultants with
entrepreneurial spirit want to
establish their
own agencies, AvivaSA
provides such consultants
with numerous financial
supports from office furniture
to rental, from employees to
vehicles
and fuel, and to financial
consultancy services in their
first transitional year. The
privileges such as training and
recruitment supports, customer
loyalty program, Winners Club,
etc. provide the agencies with
solid ground for healthy growth.
Our competitive product
commissions, segmentbased bonus payments, cash
support and various gifts
constitute important
components of our business
partnership with our
agencies.
AvivaSA that brought 29
productive Young
Entrepreneurs throughout the
year 2013 has had 128
productive agencies as of the
year-end. It is targeted to
increase this figure in the next
year.
38
Other Channels
Success story in
alternative channels
Constantly presenting new
offers and opportunities to its
customers by positioning its
products in the telesales
channel, AvivaSA increased its
production in this channel by 10
percent
y-o-y. Throughout 2013,
AvivaSA continued to offer its
clients well- suited life insurance
products through this channel.
Gaining new
customers via social
media Maintaining a close
watch on changing customer
needs and behavior, AvivaSA
makes use of
social media, the importance
and application of which
increases daily, to inform its
customers, strengthen relations,
and offer
its products. Accordingly,
the company reaches out to
potential customers through this
route, directing them to the right
products marketed online, or to
the appropriate sales channel,
in line with their needs and
demands.
permission marketing data on
customers to organize
campaigns designed to increase
its references. Such projects
carried out in 2012 helped
generate references that utilized
by all
sales channels, particularly
the telesales channel.
Continuous reference
to sales channels
AvivaSA joined forces with
other Sabancı Holding
companies, as well as
companies that possess
39
Customer Services
Customeroriented strategy
AvivaSA continues its customeroriented transformation with full
resolve, and shapes all its
business processes according to
this vision.
The company offers its
customers products and
services best suited to their
needs, by means of effective
customer communications via
its multi- channel distribution
structure.
In 2013, it continued to develop
loyalty programs, which not only
protect the future of its clients,
but also add richness to their
lives today.
Happy customers at
Geleceğini Biriktirenler
Kulübü (Save the
Future Club)
Launched by AvivaSA in 2010
under its Customer Loyalty
Program, and with a view to
boosting customer satisfaction
and ensuring loyalty,
Geleceğini Biriktirenler Kulübü
continued
to color the lives of its clients in
2013. The club adds richness to
its clients’ lives today by offering
various exclusive advantages in
areas such as insurance, health,
holidays and hobbies. In 2013,
the club’s recognition and
popularity among customers
increased significantly over
2012,
and is set to do so further in
2014 on the back of various
communication activities and
campaigns.
Customer Surveys
continuously
measure satisfaction
and expectations
Organized annually to identify
factors affecting customer
satisfaction, measure customer
satisfaction levels, gauge their
expectations, the “Customer
Satisfaction and Expectation
40
Survey” was repeated in 2013.
AvivaSA continued to increase
the customer satisfaction. The
scope
of the survey organized annually
since 2008 was expanded in the
2013 so as to reflect the opinions
of the customers who have
qualified for pension as well as the
active customers. In addition to
the customer satisfaction
measurement, a Customer
Contact Point Survey measured
the service quality at after-sales
contact points (call center, Internet
branch, and complaint
management).
The Secret Customer Survey
conducted annually to measure
the quality of the service provided
by the sales teams in the sales
process was repeated in the year
2013. Besides, in the year 2013,
AvivaSA started to carry out in
Turkey the Retirement Survey
conducted by Aviva regularly in the
UK for the last several years and
analyzing the investment and
spending habits of the retired /
near-to-retirement consumers.
Meeting the right need
at the right time through
integrated customer
communication
In 2012, AvivaSA informed
its customers in a systematic
and integrated fashion on its
products, services, fund returns
and side benefits, as well as
the loyalty program, and the
ways of benefiting from the PPS
most effectively, and established
contact with customers through
direct communication channels
such as e-mail, SMS and regular
mail four times a month on
average. In the year 2013,
and with the exception of the
operational communications,
AvivaSA sent its customers 14
million e-mails on 89 subjects
and 4 million SMS on 4 million
subjects within the scope of
marketing communication.
Enhancing customer value
Through its cross-selling activities,
AvivaSA not only increases
product per customer, but also
meets customers’ investment
needs and rapidly changing
protection requirements. What’s
more, its upstream sales
activities increase current
customers’ contribution to the
Private Pension System and
help them attain their future
savings target in an easier and
swifter fashion. In the year 2013
when the
state contribution practice was
started, AvivaSA carried out an
intensive communication activity
and campaigns to channel its
customers to make the best of
this contribution. In
consequence of the customeroriented campaigns and
communication activities carried
out, we have received record
level additional contribution
payments from our customers.
Difference created in
the sector with
Investment Ideas
In the year 2013, AvivaSA
launched the Investment Ideas
Service to provide both its
customers and sales teams
with more information on the
funds, funds returns, and the
sector, and offered a way to
monitor the market
developments
and alternative investment
instruments more closely.
Thus, it has increased the
expertise
of its sales teams, and
enabled them to meet the
customer needs more
effectively and proactively.
AvivaSA has sent
its customers the Market Ideas
bulletin on monthly basis,
measured their risk perceptions
and conducted outgoing calls to
provide guidance to update the
fund distribution, and shared the
experts' opinions on the Private
Pension System, investor
profiles, fund types, etc. through
the BES TV in the website and
Facebook/ Twitter pages. As an
expert on the sector, AvivaSA will
continue to provide the
Investment Opinions
in the year 2014 as well.
41
Customer Services
Customer Satisfaction Center
(MMM)
The Customer Satisfaction
Center established customer
contact through nearly 1.6
million calls with 950 thousand
incoming and 640 thousand
outgoing calls in 2013.
Incoming customer calls were
served by the Call Center (444
11 11), Corporate Services
Center, and Premium Services
Center, whereas Sales
Channels and the Claims
Support Center served all of
the company’s
sales channels. Approximately
3.5 million transactions were
executed through this channel.
The Written Communication and
Complaint Management Center
executed the customer requests
and solved the complaints
delivered to us in verbal or
written form. As a result of
the 1st Interim Audit of ISO
10002 Complaint Management
Quality Certification carried
out in November 2013, it was
once again confirmed that
AvivaSA’s customer complaint
management systems
functioned
in line with international
standards, and in an efficient
and
productive fashion.
Our interactive voice
response system has been
revised to add new steps,
thus meeting the customer
requests more effectively and
rapidly.
42
Our interactive voice response
system has been enhanced,
and the informative
announcements have been
updated continuously on the
basis of the new PPS
legislation, state contribution
information, and systemic
developments, and various
improvements have been made
to enable our customers to get
in contact directly with the
relevant customer representative
with regard to their search.
It has been ensured that 85
percent of the requests can be
met via the internet by enabling
the customers to acquire the
withholding informative form for
requesting the past withholding
deductions from the tax office
under the new legislation.
The customer retention activities
have been continued by working
in a customer-oriented manner
and by maintaining the
customer loyalty. Our customers
who wanted to leave the Private
Pension System or transfer their
pension contracts to another
company have been persuaded,
thus decreasing the transfer
ratios.
During the collection works we
have carried out within the
scope of the customer
satisfaction
activities; we have contacted
almost 70 thousand customers,
and collected almost TL 6
million. We have continued to
make persuasion interviews with
our customers who called
to stop collections. We have
informed our customers on
regular payment and the state
contribution to be acquired
through regular payment,
thus increasing the continued
collection.
In order to increase the
customer satisfaction and the
productivity in the area of
Business Development and
Process
Management, we have
organized in-house and external
trainings
for our customer consultants,
and analyzed and tested our
system developments. In the
year
2013, we have given 25 different
trainings, and 59 test and
project works, thus improving
the processes and increasing
the customer satisfaction.
Within the scope of the “Büyüteç
(Magnifying Glass) In-House
Instructor Program”, we have
trained in-house instructors, and
thus, we have started the give
the Communication Trainings
within MMM as well. Within the
scope of the program, the newly
employed personnel have been
given communication training.
Brand and Communication
Activities
The continuous mutual information flow and the increased
financial literacy through continuous contact with the customer
constitute the foundation of the brand and communication
activities. In the year 2013, the company provided the
customers with more information on the fund returns, while
starting a more intensive communication on the economic
situation and the condition of the market.
With the campaigns organized,
the customers have been
offered additional benefits;
campaigns have been
organized together with Akbank,
chip money has been offered,
and the customers who have
paid contributions above a
certain amount within the scope
of the campaign have been
presented with Iphone,
Ipad and Samsung Tablets.
Since 2012, various
communication activities have
been carried out through radio,
and this communication
channel has been used
consistently.
The internet advertisement
campaigns have been carried
out visibly.
Company
highlighting the
importance of
savings
Ever since its inception,
has underscored the
importance
of increased savings as a key
factor for Turkey’s future
economic growth. The
company emphasizes regularly
that the most important driving
force for Turkey's economic
development is the increased
domestic longterm savings.
the advertisement
campaign
launched in April 2008 before
the global economic crisis
had even affected Turkey. By
conveying the message “Don’t
spend your money, save your
future”, the campaign was
one of the first commercial
advertising campaigns to
emphasize putting something
aside for tomorrow. The campaign
also contributed to the
widespread recognition of the
AvivaSA name, and the economic
crisis which hit Turkey soon
thereafter once again confirmed
how right AvivaSA was in terms
of discourse and timing.
AvivaSA conveyed the same
message in 2013 as well. The
campaign called “Saç Saç
Saç II” underlining the state
contribution in the PPS said
that the savers can realize
their retirement in AvivaSA. In
2013, AvivaSA continued to
emphasize the concept of
savings, by highlighting its
importance through a wide
range of media, and at every
suitable occasion. AvivaSA’s
views enjoyed significant local
and national media coverage
underpinned by various public
speeches and informative articles
throughout the year. As part of
this move, the company started
making efficient use of social
media websites, and sought to
AvivaSA highlighted the
importance of saving with
43
strengthen its bond with the
consumer by keeping this
issue alive on the public
agenda.
Through supportive
communication activities,
AvivaSA has made efforts so
that the “saving” notion can
turn into a habit in the
Turkish society. In this sense,
the most important work is
publication of the Consumer
Attitudes to Saving Survey
conducted in
12 countries including Turkey.
According to the survey
repeated in 2013 and the
results of which were disclosed
through a press meeting held
by AvivaSA CEO Meral
Eredenk Kurdaş in October
2013, the Turkish people is
more optimistic than the EU
countries and the US in
financial issues, the biggest
impediment to saving is the
“current debts”, Turkey ranks
2nd in the list of the countries
troubled with debts, the Turkish
people live with a mentality like
“Nothing would happen to me”
and save very less for retirement
years, whet it is pension, the
PPS is more comprehensible
than public pension, and the
saving methods
in Turkey are selected according
to friends' suggestions. AvivaSA
has delivered this survey to the
public authorities and academic
circles, thus accelerating its
works so that the saving notion
can be handled at a higher level
by.
44
Brand and Communication Activities
Brand Activities
AvivaSA’s most important
communication activity within
the year is the advertisement
campaign held in the last
quarter. Pursuant to its mission
of transforming the saving
issue into a general notion,
AvivaSA repeated its “Don’t
spend
your money, save your future”
approach in its advertisement
campaign in the year 2013
too, and expressed that it is
advantageous to shift to the
PPS
with AvivaSA.
With the meetings it has
organized together with the
Federation of Insurance
Agencies of Turkey at various
city centers, AvivaSA has
handled the private pension and
life insurance sector and the
latest developments in the
sector, explained the current
situation to numerous segments
from the public to the business
circles, and underlined the
importance of the knowledge
accumulation in selection of the
insurance company.
Internet Activities
AvivaSA updated its website
with a younger-looking, simpler
and more functional design
in the last month of the year
due to changing internet and
In the year 2013,
AvivaSA’s corporate
web site was deemed
worthy of the Best
Web Site Award at the
Golden Spider award,
one of the reputable
awards of the digital
world.
communication
environments. Besides,
AvivaSA website has been
recoded in line with the
changing requirements of
the search motors, and made
capable of adapting to any
displays in case that the
website is accessed through
different computers or mobile
devices.
messages to access the
target audience through
various campaigns. The
“Smile to the Future
Competition”,
“April 23 Competition”,
“May 19 Competition” on
Facebook, and the project
“Nostalgia Happens” organized
simultaneously on Twitter and
Facebook conveyed positive
messages emphasizing the
importance of insurances
throughout the Insurance
Week and the importance of
savings throughout the year.
Besides, AvivaSA has created
a communication form to
be used by its customers or
prospective customers to submit
their questions, problems or
requests, thus enabling them to
communicate with AvivaSA via
the social media as well. AvivaSA
made a great leap by increasing
the number of its social media
followers to almost 90 thousand,
and started to put into practice
various communication modules
to ensure faster contact with its
customers and followers.
The company prioritized the
use of social media, which is an
efficient current channel, created
a strategy and formulated
45
Human Resources
Practices
The Human Resources
Department’s
2013 activities can be analyzed
under 8 main categories.
Human Resources
Promotional Activities
The company continued to
use
the Facebook HR page entitled
AvivaSAİKariyer actively, and the
job postings in the career portals
have been redesigned.
Recruitment
Totally 792 persons were recruited:
116 for the Head Office and 676
for the sales teams. As of the end
of
2013, the number of the AvivaSA
employees is 1,504, 94 percent of
whom are university graduates.
Of the employees, 66 percent are
females, while 34 percent are
males.
For its recruitment practices,
AvivaSA was awarded by
yenibiris.com with the prizes of
Model Employer and Fastest
Growing Company of the Sector.
Within the scope of the candidate
resource creating projects, we
have visited 17 universities
in total. Besides, we have
visited
5 universities and carried out
interactive activities with
students within the scope of the
Sabanci Spring organization.
We have started to use in-house
evaluation center practices for the
management positions and case
studies for the sales expert roles in
the sales channels. We have
created the Sales Trainee program
to employ young talents in the
Bancassurance channel.
Living Talent and Career
Management
We have applied performance
assessment, target setting, and
development planning processes in
connection with the “Living Talent”
system regarding each employee
as
46
a talent.
The second phase of the
“AvivaSA Talent Development
Program” launched in the year
2012 was implemented in 2013. All
such employees were assessed
by an independent firm utilizing
various instruments. In light of the
feedback, employees were included
in longterm development programs
to support them in their present
roles, and to prepare them for future
managerial positions in line with
personal career planning.
Twenty-eight employees from the
Direct Sales channel and 15
employees from the Bancassurance
channel have been included into the
candidate managers pool. Of the
candidates in the pool, 36% in the
Direct Sales channel and 40% in the
Bancassurance channel have been
promoted to higher positions. Totally
32 Regional Managers from both
sales channels have been included in
the “Evaluation Center” process.
In the Direct Sales channel, 154
Financial Consultants have been
appointed to the Bancassurance
channel. In the sales channels, 18
managers and 397 sales experts
have been promoted.
Training and Development
Activities
Direct Sales Training and
Development Activities
• Managers received 7.01 days of
training per person, whereas
financial consultants received 16.36
days of training per person. The
measured rate of satisfaction is 4.53
out of 5.
• In the CFC (Candidate Financial
Consultant) licensing trainings, the
rate of success in the first try of the
e-BEAS exam was 75.2%.
• The trainings planned within the
scope of the iLikeSales project have
been carried out in 24 different
locations and attended by all
channel employees.
• For selection and development of
the candidate managers, the “First
Step to Management” program has
been implemented.
• The trainings held for the
agencies have been participated
by 418 persons. Organized with
cooperation of Yıldız Technical
University, the “Business
Administration Certificate
Program for Agencies” has
been
implemented for the first time, and
participated by 26 agencies of
ours.
Bancassurance Training and
• The training duration per person
is 7.56 days across the channel, and
the satisfaction rate is 4.61.
• For selection and development of
the candidate managers, the “First
Step to Management” program has
been implemented.
• 1,163 Akbank employees
participated in product sales
and licensing seminars especially
organized for them. The total
training duration is 9.101 hours.
• The ABank employees were given
training of 152 hours in total.
Managerial Staff Training and
• 90 percent of the managerial staff
were given 199 different trainings.
• The total training duration is 912
days, and the measure satisfaction
rate is 4.69 out of 5.
With the Büyüteç In-House
Instructor Program aiming at
reproduction of AvivaSA’s corporate
knowledge among its employees
through sharing, 21 employees
have been trained as in-house
instructors, and 207 employees in
total have been given 23 trainings.
Compensation and Reward
Management
In the “KUM-PARA” system that is
a long-term incentive implemented
for the sales teams, the employees
who requested were paid their first
gains.
The flexible side benefit scheme
“Butik”, the first of its kind both
in the industry and the Sabancı
Group, has been developed
further. The commission and
bonus systems in all channels have
been analyzed within the scope of
the Metamorphosis project. The
Performance Assessment System
has been revised.
47
Human Resources Practices
The appreciation and recognition
rewards of the sales channels have
been continued. We have
organized the Stars Summits
bringing the most successful sales
personnel together with the upper
management, and the Winners
Club overseas trips in 4 different
categories.
Industrial Relations Within
the scope of the Occupational
Health and Safety practices,
trainings and health conversations
have been organized. Medical
examinations have been
organized, and the onsite
physicians have started periodic
controls.
In order to raise our employees'
awareness and encourage them
to lead a healthy life, various works
have been started under the
slogan of “Health in Each Step!”
“Word of the
Employee” Survey and
Employee Satisfaction
Focus Group
satisfaction was participated
by 93 percent. The loyalty score
was above the Aviva norms.
The Employee Satisfaction
Focus Group came up with 28
propositions in 2013, out of which
25 were accepted by the upper
management.
Face-to-face sounding
interviews were made with all
sub-executive personnel in the
Head Office. Through the
“How's it going?” practice
implemented to increase the
employee loyalty and
productivity, pinpointed actions were
planned for specific departments
of the organization with the
intention of increasing the
employee satisfaction and loyalty.
Internal
Communication and
Corporate Culture
In 2013, the company succeeded
in living up to its corporate culture
and values.
Accordingly,
• The company continued to release
Communication Bulletins and hold
Communication Meetings to inform
employees of upper management
decisions, and developments
concerning the company,
shareholders and sector.
• Aviva Group CEO Mark Wilson
and Aviva Europe Human
Resources
Director David Hope paid a visit to
our company, and our employees
found an opportunity to ask them
questions about the developments
in the group.
• Works have been carried out to
spread the raison d'être and new
corporate values determined in
line with the changing world and
customer needs throughout the
company.
• The Human Resources
management paid 21 visits to field
teams. The information obtained
during these visits was shared with
units and departments, and action
plans monitored.
The “Word of the Employee”
Survey measuring the employee
loyalty and
Research and
In line with its innovative
stance, competitive
understanding, and high quality
standards, AvivaSA improves
its internal processes and
customer-oriented activities
continuously and launches new
products and campaigns in line
with the market conditions and
customer expectations.
company continues rapidly. The
Metamorphosis will be shifted to
the new IT platform and create
a consolidated structure. With
the Metamorphosis that has higher
throughput in commercial sense,
much more efficient data
warehouse, allows the CRM
applications, increases the inhouse processes and employee
productivity, decreases the
infrastructure cost, it is targeted to
enable AvivaSA to move ahead of
the competition in the sector.
Metamorphosis
NEXT
The Metamorphosis Project
launched in the year 2012 and
to provide the basic support
in the future operations of the
In the bancassurance channel,
the transformation project NEXT,
which covers the technological
integration started to increase the
48
strategic harmony and
coordination
between AvivaSA and Akbank,
has been implemented. Within
this scope, we have designed
fast, reliable and effective
processes to increase customer
acquisition and satisfaction
using the potential
of the branches, the call
center and the alternative
distribution channels.
Innovative products
Having found out its customers'
needs accurately and onsite,
AvivaSA has continued to
commission new products and
services to meet such needs.
In the year 2013, 11 new
products were launched.
Besides, the Gold Fund has
also been added to the
investment alternatives and
offered to our customers.
49
AKBANK VE AVIVASA İLE
KAZANMAK İÇİN
EMEKLİLİĞİ BEKLEMEYİN
Şimdi, Akbank kredi kartlarıyla 200 TL’lik ilk bireysel emeklilik katkı payı ödemenizi yapın, 100 TL chip-para
kazanın! Emeklilik hayallerinizi kolayca gerçekleştirmek için, siz de hemen Akbank şubelerine gelin,
AvivaSA ile bireysel emekliliğe adım atın. Yarınlara bugünden hazır olmanın farkını yaşayın.
Kampanyadan 1 Eylül-31 Ekim 2013 tarihleri arasında Akbank aracılığıyla AvivaSA Bireysel Emeklilik Sözleşmesi alan
ve en az bir yıl boyunca aylık asgari 200 TL düzenli katkı payı ödemesini Akbank kredi kartlarıyla yapanlar yararlanabilir.
Kampanyadan en fazla bir defa yararlanılabilir. Chip para ödülü toplam 100 TL ile sınırlıdır. Kampanya şartlarının yerine
getirilmemesi durumunda, verilen ödül geri alınır. Toplu ödemeler kapsam dışıdır. Kampanya ile ilgili detaylı bilgi www.
akbank.com/beskampanyasi, 444 25 25 ve Akbank şubelerinde.
50
Support Activities
Information Technologies
Metamorphosis
Project The year 2013 was
a year of numerous activities
carried out to comply with
both the new PPS regulations
and external
standards within the scope of the
Information Processing works.
We have achieved numerous
renovations in the risk,
compliance and security issues,
thus making the Company
compliant with the international
standards in terms
of information security, and we
have conveyed the Company
to a further point with regard to
compliance with the rules
introduced by the legislation and
with the accepted standards of
the information technologies.
Through the reorganization
made in the year 2013, we have
created three new basic
functions: Risk and Compliance,
Security, and corporate
architecture. With
the Corporate Architecture, the
information technologies to be
needed by the Company for the
next five years have been
planned, and a unit integrated
with the business units has been
created. A structure has been
created, which not only meets the
needs of the business units
reactively but also brings the new
technologies and developments to
the company considering
proactively the direction the
business units should go.
Strategic Information
Technologies
Outsourcing The needed
medium- and longterm services
were analyzed, processes for
selection of the firms to provide
such services were started, and
the technical details
of the relevant contracts were
Technical Operations
With its expert staff, high-quality
and effective risk management,
the Technical Operations
department introduced innovative
prepared. Through the
external support to be
acquired newly,
the service scale will be
expanded very much, and we
will shift to a structure enabling
us to provide our technological
services in an integrated
manner.
Information
Management Road Map
(Digitalization) Digitalization
is to implement projects to
increase AvivaSA's service
quality and revenues with new
methods through various
and new channels by making
the best of AvivaSA’s information
processing technologies. Within
this scope, the life insurance
policy renewals have been
automated, and the relevant
process has
been revised. We have begun
to record the prospective
customers for private pension
sales through the internet. We
have created
the infrastructure for PPS
telemarketing.
We have improved the data
warehouse, and organized the
data flows. We have launched
new campaigns, and
enhanced the customer
information files.
Plans for 2014
In the year 2014, we are going
to prepare the digitalization road
map to determined what we can
construct on the infrastructure
created through Metamorphosis
and Strategic Information
Technologies Outsourcing, and
how we will carry AvivaSA
forward in competition. Our plan
in the digitalization strategy is to
provide the optimum sales
channel supports through
automation of the sales force and
services.
solutions and continued its
efforts to outperform the sector
in its contribution
to customer satisfaction and
profitability in the year
Project &
Application
management
The year 2013 was a very busy
year for the Project & Application
management. We started many
projects in the year 2013, and
made significant progresses in
the ongoing ones. Within the
scope
of the new PPS legislation, we
have integrated the
requirements, mainly the ones
related to state contribution,
imposed by the legislation with
the system in the most accurate
way.
The policy renewal, collection
and product development
projects
have been implemented within the
framework of the NEXT program
carried out in cooperation with
Akbank.
We have carried out processes to
renew and singularize all our
applications within the scope of
the Metamorphosis program. The
entire program includes eight
application development projects,
one data transfer project, and one
technical infrastructure project.
We completed the preliminary
trainings, difference analyses,
and detail planning works as of
the end of 2013, and are
continuing to perform the detail
analysis
and development works at the
moment. The program
includes
26 stakeholders except the
units/ departments and
agencies of AvivaSA, and it is
foreseen that a project team of
128 persons will spend 30,500
man-days in total. It is planned
to commence the
first phase of the project not later
than the end of 2014, and it is
also anticipated that the works
will continue by the year 2015 in
stages.
2013.The number of transactions
carried out within the year
reached 1.2 million
51
with 26 percent y-o-y increase. The
department performs operational
transactions to meet the customers'
expectations at the highest level.
Within the scope of the legislation,
upon publication of the new
regulations regarding the Private
Pension System and state
52
contribution, the system,
process and application
improvements have been
completed, and the full
compliance with the legislation
has been ensured by
establishing a powerful internal
control unit and system. The
total number of control points
has been increased from 472 to
702.
Corporate Social
Responsibility
As a company that highlights
the importance of savings and
organizes campaigns to
promote this concept, AvivaSA
is fully aware that financial
literacy is
the key to savings awareness.
Accordingly, AvivaSA channels
its CSR activities towards
raising public awareness on
this issue. The company
cooperates with GBEV, the
only foundation in Turkey that
is active in the field
of entrepreneurship and
financial literacy, sponsoring its
activities. As part of the
foundation's activities, the
AvivaSA employees have been
trained to become volunteer
consultant in the “Company
Program” activity of GBEV
carried out in pilot schools
in Istanbul, Izmir, Bursa and
Kocaeli.
With the competition called
“Designing the Saving”,
AvivaSA has reawaken the
money-box, one of the fading
notions. Through
communication
activities on saving
awareness and culture on
every October
31, which is the foundation
anniversary of the company
and the World Savings Day,
AvivaSA ensures that the
saving remains on the agenda.
The year 2013 data of the
Consumers’ Saving
Tendencies survey were
shared with the public, and it
has been ensured that the
subject is handled in a broad
perspective.
AvivaSA continued its
savings- focused social
media activities in the year
2013 as well. Having
organized a work called
“Nostalgia Happens”
(#NostaljiOlur) in the facebook
and twitter, AvivaSA has
ensured with this application
that the icons of the present
day, which can turn into
nostalgia in the
future, are accumulated from this
day on.
In the year 2013, our
company paid TL 0.1 million in
total through donations and
aids within the scope of the
social responsibility projects.
Sponsorship Activities
In order to establish warmer
relations with its
bancassurance customers,
AvivaSA joins forces with
Akbank to organize a golf
tournament, which constitutes
the Turkish leg of the Aviva
Cup designed by Aviva
Europe. In
the years 2011 and 2012,
the tournament organized at
the Kemer Golf & Country
Club drew significant
participation. Repeated in
2013, the
tournament drew even more
participants; the highest ranking
golf team in Turkey was
selected to participate in the
tournament organized in
Lisbon, and made Turkey proud
by ranking third.
AvivaSA continued to promote
its brand in different
environments with sponsorship
activities carried out in the year
2013. Sponsoring the Sabancı
Spring together with
numerous Sabancı organizations
and participating the activities in
the first half of the year, AvivaSA
found an opportunity to promote
its products and services at
Turkey's leading universities.
AvivaSA was the main sponsor
of the Marketing Summit
organized in Lütfi Kırdar
Congress and Exhibition Center
in December
2013.
53
44
IV.
Information on
Management and
Corporate Governance
Activities
AvivaSA forms its Corporate Governance
Principles in accordance with the principles of equality, transparency, accountability and responsibility.
Information on Management and Corporate Governance Practices
45
BOARD OF DIRECTORS
Okan GÜN
Director
Internal Audit
Division Manager
Internal Audit
CEO
Ali Önder LÜLÜ Executive
Vice President
Bancassurance and
Corporate Projects
Selim AVŞAR Executive
Vice President
Direct Sales and Agencies
Fırat KURUCA Executive
Vice President
Finance
Osman ATICI
Group Manager
(Turkey, 1)
Fırat DİNÇER
Group Manager
Group 1
Zeliha ALTINOK
Division Manager
Accounting & Finance
Duygu YENER
Group Manager
(Turkey, 2)
Kürşad UYGUNLAR
Group Manager
Group 2
Burçin ARKUT
Division Manager
Actuarial & Business Risk
Dinçer GÜLEYİN
Division Manager
Bancassurance
Development
46
Fisun KOÇ Group
Manager
Strategy & Change
Management
Aslı CANÖZ
Group Manager
Group 3
Ufuk ÇANAKÇIOĞLU
Division Manager
Corporate Projects
Aslı İSMAİLOĞLU
Division Manager
Direct Sales and
Agencies Development
M. Ali Mesruoğlu
Birim Yöneticisi
Satış Destek&Operasyon
Mirey DERGÜZELYAN
Unit Manager
Sales Support
Ebru Canlı ÖZKAN
Division Manager
Logistics and Procurement
Organization Chart
Sibel ÖZTEP
Group Manager
Risk and Internal Control
O. İlhan ONURKAN
Division Manager
Risk Management
Berkant DİŞCİGİL
Executive Vice President
Operations
Emre GÜNERMAN
Marketing & Development
İdil NAMYETER
Division Manager
Technical Operations
Division Manager
Marketing
Ebru GÖRÇE
Division Manager
Customer Satisfaction
Center
Division Manager
Corporate
Communications
Kurtuluş ÇALTEKİN
Division Manager
Law
Levent ÇAĞLAYAN
Division Manager
Quality Compliance
Salim DURSUNOĞLU
Unit Manager
Internal Control
Murat BAYBURTLUOĞLU
Human Resources
Nihat ÜNALACAK
Information Technologies
Burak YÜZGÜL
Division Manager
Human Resources
Organizational Development
& Compensation, Benefits
Altan EVNİ
Group Manager
Software & Support
Berna BELKIS
Division Manager
Human Resources, Sales
Tevfik ÖZEL
Division Manager
Pension
Life Core Applications
Sena GÜNGÖR
Division Manager
Project & Application
Management
Mehmet ERİŞEN
Division Manager
IT Architecture
Ateş SÜNBÜL
Division Manager
IT Security
47
Board of Directors
Haluk Dinçer
David McMillan
Bülent Bozdoğan
Chairman
Deputy Chairman
Board Member Bülent
Dinçer graduated with
a BSc in Mechanical
Engineering and an
MBA
from the University of
Michigan. In 1995, he
joined Temsa, a
Sabancı
Group company, and
in 2004 was appointed
President of the Retail
Group. Since March
2011, Dinçer has been
serving as the President
of Retail and Insurance
Group of Sabancı
Holding.
McMillan graduated
from the Herlot-Watt
University with a BSc
in Business
Administration in 1986.
He had his
MBA at the University of
Chicago in 1996 – 1997.
McMillan who started his
career
at
HewlettPackard in 1986 has
joined
Aviva after working
for Pricewaterhouse
Coopers from 1996 to
2002. By the year 2013,
he worked in various
positions in Aviva UK
including also the CEO
position. since July
2012, McMillan has
been serving as the
Group Transformation
Director
in Aviva plc.
Bozdoğan graduated
from the Faculty of
Administrative Sciences
at the Middle East
Technical University, and
began his career at
PricewaterhouseCooper
s. He went on to work at
Unilever, where between
1982 and 1991 he was
employed in the
finance and human
resources
departments. In 1991,
Mr. Bozdoğan joined
Brisa, where he
worked as Executive
Vice President
responsible for finance,
planning and
procurement. In 2001 he
transferred to Kordsa’s
subsidiary in the USA,
where he established the
required financial
systems and standards.
Since
2009, he has been the
President of the Auditing
Department at Sabancı
Holding.
48
Adam Jacek
Uszpolewicz
Board Member
Adam Uszpolewicz
is a qualified
chartered
accountant, and has
a degree in English and
economics from
Copenhagen University.
From 1999 to 2005, Mr.
Uszpolewicz played a
leading role in developing
the Polish arm of
Nationwide, an American
life insurance company,
taking it from start-up
to one of the top 5 life
insurance businesses
in the Polish market.
From April 2007 until
January
2009, he served as the
CEO of CU Aviva
Poland group –
Poland’s largest
pension provider with a
27 percent market
share, and the secondlargest life insurer. CU
Aviva Poland has 6
business units with
1,400 staff
and 3,500 DSF members
servicing over 3.2 million
customers. Before
joining CU Aviva, he was
an executive director at
PricewaterhouseCooper
s in Warsaw and held
senior positions in a
number of leading
international financial
services companies,
such as GE Capital and
Cigna, including work in
London and
Luxembourg. Since
January 2009, Mr.
Uszpolewicz has been
the Aviva Europe Retail
Director.
47
Hayri Çulhacı
David Angulo Rubio
Board Member
Board Member
Board Member - CEO
Holding a degree in political
sciences from Ankara University,
Çulhacı received his MBA from
Northeastern University in the
USA.
Having joined Akbank in 1990
as an Executive Vice President,
he served as Executive Vice
President in charge of Corporate
Communications and Strategy; as
Advisor to the Chairman; and as
Executive Board Member in
charge
of Corporate Social Responsibility,
Corporate Communications and
Investor Relations throughout
his tenure at Akbank. Prior to
joining Akbank, he worked as
a tax inspector and department
head at the Ministry of Finance.
Hayri Çulhacı is also a member of
the Board of Trustees of Sabancı
Foundation and the Board of
Trustees of Sabancı University,
Chairman of Ak Securities A.Ş.
and
Ak Portfolio Management A.Ş., a
Board Member of Aksigorta A.Ş.,
Teknosa A.Ş. and Carrefoursa
A.Ş.,
an Executive Board Member of
the
Turkish-American Business
Council
and a member of the Turkish
Industrialists’ and Businessmen’s
Association.
David Angulo Rubio graduated
from the Department of Economics
and Business Administration at
Pontificia Comillas
University in 1992. In 2001 he
received his MBA at the Instituto
de Empresa. Having started his
professional life at Gescapital in
1992, Mr. Angulo Rubio later
served as a director at Bankinter,
and until 2005 held managerial
positions at Aegon companies.
In 2005, he joined the Abbey
National Bank, where he worked
as an Insurance Management
Director. In 2007, he was
appointed CEO of Aviva Spain.
Since 2008, he has been serving
as the Bancassurance Director for
Europe at Aviva Europe.
Meral Eredenk graduated from
the Department of Business
Administration of the Faculty of
Administrative Sciences at the
Boğaziçi University. She later
completed the Executive MBA
program at the University of Wales,
Manchester Business School, and
the Executive MIS program at
the Boğaziçi University. Having
begun her career at Interbank in
1985, Ms. Eredenk then served
as Executive Vice President at
Garanti Investment Bank. In 1997,
she joined Yapı ve Kredi Bank as
President of Corporate Marketing
Department. Then in 2002, she
transferred to the Sabancı Group as
CEO of AK Emeklilik. Ms. Eredenk
has been the CEO of the company
since AK Emeklilik and Aviva Hayat
ve Emeklilik were merged into
AvivaSA Emeklilik ve Hayat A.Ş. on
31 October 2007. Meral Eredenk
is also a member of TÜSİAD and
a Board Member of the GYIAD
and Classical Automobile Club.
Playing active roles in many trade
associations, Ms. Eredenk is also a
lecturer in Sales-Marketing, Private
Pension and Life Insurance at the
School of Banking and Insurance at
Marmara University.
49
50
51
Senior Management
CEO
Ms. Eredenk’s
curriculum vitae can be
found on page 49.
52
Fırat Kuruca
Executive Vice
President
- Finance
Fırat Kuruca graduated
from the Department of
Business
Administration
of the Faculty of
Administrative
Sciences
at Boğaziçi University.
Having started his
professional life at
Unilever-Turkey in
1989,
Kuruca has served in
various positions. Mr.
Kuruca respectively
worked at UnileverTurkey (Management
Accountant), Unilever
Europe-Belgium
(Commercial Officer),
Unilever-Turkey
(Purchasing Manager),
Unilever-Germany
(Audit Director), and
Unilever EuropeBelgium (CEE Finance
Director). In 2004, he
resigned from Unilever
and returned to Turkey,
and served as
Financing
and Administrative
Affairs Director in Koç
Holding Setur Divan
Enterprises. In 2005,
he joined AvivaSA as
Executive Vice
President
in charge of Finance.
Kuruca has 25 years of
professional
experience.
Selim Avşar
- Direct Sales and
Agencies
Avşar graduated
from Department of
Econometrics at the
Istanbul University and
received his Master’s
degree in the same
department. He started
his business career at
Commercial Union in
1996 as a Financial
Advisor and served in
various positions in sales
management within
the same company. He
became Executive Vice
President responsible
for sales in 2003, and
subsequently a Board
Member. Avşar has 18
years of professional
experience.
Ali Önder Lülü
Executive Vice
President
- Bancassurance and
Corporate Projects
After receiving his
Bachelor’s degree in
international relations
from Istanbul University,
Ali Önder Lülü received
his Master’s degree in
Strategic Marketing and
Brand Management.
Before joining AvivaSA,
Mr. Lülü worked for
Brisa and AK Emeklilik,
and has 17 years of
professional
experience.
He has served as
manager in aftersales services, product
management, and
marketing in the sector.
53
Berkant
Dişcigil
Executive Vice
President –
Operations
Berkant Dişcigil
graduated from the
Ankara High School
of Science, and
then the
Department
of Management
Engineering at Istanbul
Technical University. He
completed an Executive
MBA at Sabancı
University and began
his career at StratejiMori
as a research
specialist. Dişcigil
joined the insurance
sector joining the
insurance sector at Axa
Oyak Hayat Sigorta,
where he assumed
positions in the
Operations, Training,
Actuary and Technical
departments. He later
joined AK Emeklilik, as
Underwriting Manager.
He also have served
as the manager of the
Underwriting
Operations department,
and then as the
manager of the
Customer Continuity
department at AvivaSA.
Currently the chairman
of Insurance
Association of Turkey,
Life
Insurance Study and
Research Committee,
Dişcigil has 17 years of
54
professional
experience.
Emre Günerman
Executive Vice
President Marketing
& Sales
Development
Emre Günerman
graduated from
the Department of
Industrial Engineering
at Bilkent University
in 1993. He began his
career as a systems
analyst at Procter &
Gamble, and received
his MBA at The
Wharton School in
Pennsylvania, USA.
He then took office as
the Total Quality and
Corporate Strategy
Manager at Tenneco
in the USA between
1996 and 2000, before
returning to Turkey,
where he served at
Turkcell in various
areas.
In 2004, he joined
Borusan Telekom,
where he worked as
the marketing director
for two years. Mr.
Günerman worked as
the Director of Segment
Management at the
Marketing Department
of Avea between
2006 and 2010. As
of 6 October 2010,
he was appointed
Executive Vice
President
responsible for
Marketing at AvivaSA
Emeklilik ve Hayat.
Günerman has 18
years of professional
experience.
Murat
Bayburtluoğlu
Executive Vice
President - Human
Resources
A graduate of Saint
Joseph French High
School for Boys,
Bayburtluoğlu
graduated in 1985
from the Middle East
Technical University,
in the Faculty of
Administrative and
Economic Sciences,
in the Department of
Business Administration.
He started his career
in 1985 at İnterbank,
and went on to work
at Garanti Bank as
representative and later
Deputy Director in the
bank’s domestic and
overseas operations.
He later took office at
Finansbank Netherlands
as Executive Vice
president in charge of
IT, Operations, Human
Resources and Project
Management. After a
14-year stint overseas,
he became Executive
Vice President in charge
of Human Resources
at Finansbank. Mr.
Bayburtluoğlu then went
on to establish his own
consultancy firm before
joining AvivaSA
Emeklilik ve Hayat in
2012 as. Bayburtluoğlu
has 29 years of
professional experience.
Nihat
Ünalacak
Executive Vice
President Information
Technologies
A graduate of
Kayseri TED College
and Bosphorus
University,
Department of
Computer
Engineering, Nihat
Ünalacak
received his MBA
from İstanbul
University, Faculty of
Business
Administration. In
1988 he started his
business career at
Koç Holding
as a planning
specialist, and went
on to work
as IT, logistics and
project
management
director at Ciba
Geigy and
Inchcape Retrans.
In 1998 he joined
Aviva Hayat ve
Emeklilik, then
known as
Commercial Union,
and served as
Executive Vice
President until 2007,
when he
was appointed Aviva
Europe’s IT Director,
holding the position
for
five years. Ünalacak
was appointed
AvivaSA’s Executive
Vice
President –
Information
Technologies in
2012. Ünalacak has
26
years of
professional
experience.
55
Principles
Corporate Governance Principles Compliance Statement
A.Ş. abides by the Corporate
Governance Principles
issued by the
Undersecretariat of the
Treasury. The company
takes
utmost care to assure
compliance with said principles.
constantly updates its annual
report and website in
accordance with
to provide accurate and up to date
information to its stakeholders.
Corporate Governance Committee
The Corporate Governance
Committee is in charge of laying
out the structure of relations
between AvivaSA managers,
shareholders and other
stakeholders, diligently ensuring
compliance with Corporate
Governance Principles, and
making suggestions to the
Board of Directors to this end.
Every March, the Corporate
Governance Committee
presents its report on
compliance with Corporate
Governance Principles to the
Board of Directors,
and sends one copy to the
Undersecretariat of the Treasury.
The corporate governance
principles are defined as
follows:
a) Equality: In all of its
activities,
the
company
management
treats
shareholders and stakeholders
as equals and prevents
possible conflicts of interest;
b) Transparency: With the
exception of commercial secrets,
and information not yet shared
with the public, the company
discloses its financial and nonfinancial data in a timely,
accurate, complete,
comprehensible, analyzable, lowcost and easily accessible
manner;
c) Accountability: Essentially,
Board
Members
are Report 2013
56 AvivaSA
Annual
accountable to the legal
representative of the company
and its shareholders;
d) Responsibility: The
company management must
comply
with legislation, the Articles of
Association and in-house
regulations in all of its activities
on behalf of the Joint- Stock
Company, and this compliance
must regularly be audited.
To ensure the
exercising of
shareholders’ rights,
AvivaSA takes all
measures required
by legislation,
the Articles of
Association and other
in-house regulations.
All shareholders are treated equally
in principle.
The company makes no
discrimination among shareholders
in the exercising of their right to
information and analysis. All types
of information that may influence
the exercising of their rights are
presented to them in an up-to- date
fashion via electronic media. The
company takes all steps
to ensure the participation of
shareholders in the General
Assembly in a timely manner,
prior to the meeting. It provides
complete and unequivocal
information on the agenda of the
General Assembly so as to allow
shareholders adequate preparation
time. At the General Assembly
meeting, the agenda items are
presented in an impartial and
detailed manner, and in an
open and comprehensible
fashion. The shareholders are
given the right
to explain their opinions and
pose questions under equal
conditions, enabling healthy
debate to ensue.
The company refrains from any
practice that might jeopardize
the exercising of shareholders’
rights. All shareholders are
given the opportunity to utilize
their voting rights in the simplest
and most straightforward
manner.
The voting procedure is
announced to shareholders
beforehand, and again at the
start of the meeting.
AvivaSA does its utmost to
ensure the exercising of minority
voting rights.
The company refrains from
practices that might jeopardize
the shareholders’ right to transfer
their shares freely.
The company abides by
a definite and consistent
dividend distribution policy.
This policy strikes an optimal
balance between the interest
of shareholders and those of
the company. At the General
Assembly meeting, shareholders
are informed of various aspects
of the dividend distribution policy.
Information about dividend
distribution is featured in the
57
annual report, and also shared
with the public via the information
disclosure policy.
AvivaSA
conducts its
business and
transactions
transparently.
All information that can be
disclosed, and that might affect
AvivaSA’s financial position and
operational results is presented
to the public in a timely,
accurate, complete,
comprehensible, analyzable,
low-cost and easily accessible
manner.
The public is immediately
informed of any significant
development concerning the
company’s
financial
position
and
activities, such as filing for
bankruptcy or concordatum,
the initiation of
a liquidation process, or a court
decision to declare the
company bankrupt.
The company’s website is
used effectively to inform the
public.
AvivaSA has an easily accessible
website. In addition to the
information required by the
Communiqué on the Provision of
Information in Insurance
Contracts issued in the Official
Gazette dated
28 October 2007 and numbered
26684, Article 13 on the
“Obligation to Create a Website”,
paragraph three, clause (a),
a) Corporate information about
the company in Turkish and
English,
58Trade
AvivaSA
Annual
b)
registry
data,Report 2013
years, including independent
audit reports and footnotes,
g) The company’s mission
and vision are included in the
company's website.
occasion when a stakeholder is a
member of more than one interest
group, the company seeks to
strike the right balance to protect
all rights involved.
The Board of Directors presents
to the General Assembly the
principles governing the
company’s information disclosure
policy, and shares these with the
public.
AvivaSA
takes
all
the
necessary precautions to
ensure customer satisfaction
in the presentation
of its products and services.
With regards to commercial
secrets,
the company takes care to
ensure the protection of
customer and supplier data. The
company
takes all necessary measures
to establish sound relations
free
of any fraudulent act between
the company and its
customers, and to ensure
compliance with agreements
made between respective
parties.
Information disclosure policy
indicates what information, in
addition to that required by
legislation is to be disclosed to
the public, and in what form, as
well as how frequently and
through which means this
information will be disclosed, etc.
The company oversees the
balance between transparency
and the protection its interests,
while defining which information is
to be classified as a
commercial secret.
The Code of Ethics is shared with
the public within the framework of
the information disclosure policy.
The dividend distribution policy
At AvivaSA, the
rights of
stakeholders are
protected
independently of one
another.
c) Articles of Association,
d) Information on Board
Members,
e) Annual reports,
f) Financial statements
concerning
While establishing its
recruitment policies and
planning careers, the company
abides by the principle of
providing equal opportunities for
individuals under equitable
conditions.
With a view to establishing
a participative management
atmosphere, the company holds
employee meetings to inform
them on financial benefits,
remuneration, careers, training
and health, etc., thus fostering
healthy debate.
The job definitions of and the
division of labor among
company employees are
determined by managers and
announced to
employees.
the current year and the past five
is presented in the annual report,
and shared with the public
through the information disclosure
policy.
The annual report provides
sufficient detail to ensure that the
public can access all types of
information on company activities.
In case of a conflict of interest
between stakeholders, or on the
The company provides a safe
work environment for employees,
and continuously improves
these conditions. Measures are
taken to protect employees
against physical, spiritual and
emotional abuse within the
organization. Employees, or their
representatives, are notified of all
decisions and developments that
concern them.
59
The Board of Directors and managers conduct their activities in
a fair, transparent, accountable and responsible fashion.
The company is well aware of
its social responsibilities; it
abides
by legislation and ethical rules
concerning the environment,
consumers and public health,
and discloses relevant policies to
the public.
• The Board of Directors sets the
company’s policies and
strategies, the methods to
implement
these policies and strategies,
developments concerning these
policies and strategies, and the
processes of monitoring and
assessment. The Board of
Directors continuously and
effectively measures the degree
to which the company attains
targets, as well as its activities
and past performance. Whenever
deemed necessary,
it takes necessary preemptive
precautions before a
problem
arises.
• The Board of Directors
oversees the compliance of
company activities with
legislation, the Articles of
Association, in-house
regulations and policies.
• The Board of Directors plays
a key role in settling any
disputes between the
company and its shareholders.
• The duties and authorities of
the Board Members and
other executives must be
clearly and comprehensibly
defined in the annual report.
• Board Members fulfill their
60 AvivaSA
Annual Report
duties
with competence
and 2013
goodwill, which means that they
always display the minimum
care and attention required of
them
in similar situations and under
similar conditions. It is essential for
the Board Member to dedicate
sufficient time to company
activities. The Board of Directors’
meetings
are planned and organized in
an efficient and productive
manner.
• In order to ensure that the
Board Members can completely
fulfill their duties, mechanisms
are established to help them
access all information they may
require.
• The Board of Directors is
responsible for the preparation,
presentation and accuracy of
periodical financial statements in
accordance with current
legislation and international
accounting
standards. The Board of Directors
takes a separate decision to
approve the periodical financial
statements and the annual
report.
• Managers ensure that
company activities are carried
out in line with the mission,
vision, targets, strategies and
policies, and act
in accordance with the annual
financial and operational plans
approved by the Board of
Directors. In fulfilling their duties,
managers comply with
legislation, the Articles of
Association and in- house
regulations and policies.
• The managers must possess
the requisite professional
qualities to fulfill their duties.
company to their benefit, or to
the benefit of third parties. They
cannot disseminate erroneous,
misleading or unfounded
information, news or opinions
about the company
The general policy governing the
salaries of Board Members,
senior
The company’s
ethical values,
internal equilibrium
and strategic
targets are taken
into consideration
in formulating
remuneration policy.
• Managers cannot use secret or
undisclosed information about the
managers and other
personnel is determined
by the Board of Directors.
The salary of each Board
Member depends on the
amount of time they will
dedicate to the company
during meetings, in
preparation before and after
meetings, and in special
projects.
The salaries and
benefits of managers
and employees
are determined according
to their individual
qualities, and contribution
to the company’s
achievements.
61
Information Disclosure
Policy
Objective and Scope
The company’s information
disclosure policy, designed to
provide reliable information to
shareholders and
stakeholders including the
general public, has come into
effect upon the
approval of the Board of
Directors, pursuant to the
Communiqué
on Corporate Governance
Principles at Insurance and
Reassurance Companies and
Pension Companies issued by
the Undersecretariat of the
Treasury, and the public
disclosure principles outlined in
the Communiqué on the
Establishment and Activities of
Pension Funds.
General Rules
The information disclosure policy
is in full accord with the Turkish
Commercial Code, and Law
on Private Pension Savings and
Investment System,
as well as the company’s
Principles.
Its objective is to provide timely,
accurate, equitable and complete
information to shareholders,
customers, stakeholders and
public agencies.
It ensures that the information
to be disclosed to the public is
comprehensible, analyzable,
accessible and low-cost so as
to better allow said individuals
and agencies to make
decisions.
The information disclosure
policy does not disseminate
commercial
secrets, customer secrets
or information the
disclosure of which is
legally problematic.
The information disclosure policy
is presented by the Board of
Directors to the General
Assembly and disclosed to the
pubic via the website.
Means of Disclosure
The annual and interim financial
statements and their footnotes,
as
well as independent audit reports
are sent to the Undersecretariat
of the Treasury within the legal
timeframe, and published on the
company’s website.
The annual financial reports
are announced via two
national newspapers in the
month following their approval
by the General Assembly.
Financial statements are sent
to the Undersecretariat of the
Treasury on a monthly basis
and to the Insurance
Association of Turkey on a
three monthly basis.
Annual activity reports published
at the end of the accounting
period are sent to the
Undersecretariat
of the Treasury, upon approval
of the Board of Directors and
their presentation to the
General Assembly, and
published on the website.
The Company Web Site
(www.avivasa.com.tr)
The website of AvivaSA
Emeklilik ve Hayat A.Ş. is
designed
to provide comprehensive
information to the public and
all stakeholders. All information
on the website is updated
regularly. The internal charters,
prospectuses, introduction forms,
prices and returns of the pension
funds created by the company
are published. Independently
audited financial statements are
also available for perusal.
Advertisements
in
the Turkish Trade
Registry Gazette
The decisions of Ordinary and
Extraordinary General
Assembly meetings, capital
increases and all amendments
to the Articles of Association
are disclosed to the public via
the Turkish Trade Registry
Gazette.
Authority to Make Public
Statements
The Chairman, Board Members,
CEO and Executive Vice
Presidents
are authorized to make public
statements via the media.
Supervision of the
Information
Disclosure Policy
The Board of Directors is
responsible for
overseeing the
information disclosure
policy. The Board monitors
and audits the efficient and
reliable implementation of this
policy. The implementation of
the information disclosure
policy is the responsibility of
company management.
Profit Distribution Policy
The profit distribution offers
presented
by Annual
the Board
of 2013
62 AvivaSA
Report
Directors to the General
Assembly for approval are
prepared considering the
shareholders' expectations and
the growth needs and
profitability of our company.
All shareholders, including
the minority shareholders,
are
treated equally.
63
Legal Explanations
2013 was an active year in terms
of the legal regulations
concerning
the sector. It was a year of heavy
schedule to ensure that the
Company's operations comply
with the legislation due to the
secondary regulations related to
the Private Pension System as
well
as the Turkish Commercial Code
no. 6102 regulating the insurance
contracts.
In the year 2013, the critical
duty of the Legal
Department
performing AvivaSA’s legal
functions was to follow the
legal regulations regulating the
Company’s activity are, review
the amendments made to
such regulations, and inform
the
Company on time and
sufficiently about the liabilities
arising from such amendments.
the year 2013, which could
negatively impact its
financial structure resulting
from the contravening of
legislation. In
2013, the company paid TL
24,784.15 in administrative fines
for 28 transactions to the legal
authorities.
In 2013, regulatory authorities
conducted audits of the
company. The company
received no significant
sanctions in
The Legal Department is in
charge of following up any
lawsuits by, or against the
company. Information on the
lawsuits followed up in
2013 is as follows:
Lawsuits related to insurance activities:
Lawsuits
transferred to
2013 from 2012
Lawsuits
filed in
2013
Lawsuits
settled in
2013
Lawsuits
settled in
favor of the
company in
2013
Lawsuits
settled in
mutual
compromise
in 2013
Lawsuits
settled to the
detriment of
the company
in 2013
191
63
8
6
1
2
In 2013, the company paid TL 859,606 due to unfavorable legal settlements in 19 cases due to insurance
activity.
Lawsuits related to private pension activities:
Lawsuits transferred to
2013 from 2012
Lawsuits filed in 2013
Lawsuits settled in 2013
11
1
24
In 2013, the company paid TL 1,300 due to unfavorable legal settlements in 1 cases due to private pension
activity.
Lawsuits related to business law:
Lawsuits
transferred to
2013 from 2012
Lawsuits
filed in
2013
Lawsuits
settled in
2013
Lawsuits
settled in
favor of the
company in
2013
Lawsuits
settled in
mutual
compromise
in 2013
Lawsuits
settled to the
detriment of
the company
in 2013
86
17
28
17
0
11
In 2013, the company paid TL 260,857.62 due to unfavorable legal settlements in 13 cases due to business
law.
Information on parent
companies and their
subsidiaries
64
In the Affiliation Report
issued
by
AvivaSA
Emeklilik ve Hayat A.Ş.
Board of Directors on 21
February 2014, it was concluded
that in 2013, in all transactions
with its parent companies and
their subsidiaries, AvivaSA
Emeklilik ve Hayat A.Ş. took
the necessary action or counter
action, according to the
conditions and circumstances
known to the company at the
time at which the transaction
or measure was taken or
avoided, that no measure
taken or avoided was
potentially detrimental to the
company, and that,
accordingly, no transaction
or measure necessitates
equalization.
65
Explanations on Special
and Public Audits During
the Accounting Period
The Capital Markets Board’s
routine audit of the listed
pension funds established
by
the company began in February
2013 and ended in May 2013.
As part of the audit, all 2012
operations related to the
pension
funds as well as the internal
control activities, processes and
66
practices were
scrutinized. In the year
2013, the
Insurance Audit Board
audited the Company in
terms of Private Pension
System State Contribution
Transaction Processes and
the Life Group Operations
and Transactions, and the
legality of the private
pension, state contribution and
life group transaction
processes, and our Company's
practices concerning the
participants' rights and liabilities
arising from the contract and
policy were scrutinized.
Summary of Annual Report
of the Board of Directors
presented to the General
Assembly of Shareholders
At the end of the operating year
of 2013, AvivaSA Emeklilik ve
Hayat A.Ş. that we established
on 31 October 2007 through
the merger of AK Emeklilik and
Aviva Hayat ve Emeklilik
shown that it is one of the
determinant companies in
Turkish private pension and life
insurances sector according to
the first period targets and
expectations.
For our company, the year
2013 was a year in which we
attained successful financial
results.
The most important areas
AvivaSA will display its
difference in 2013 and
thereafter will
be its international and local
knowledge accumulation, strong
and effective capital structure,
its power stemming from its
roots, and its unique multichannel distribution structure.
A natural born leader,
AvivaSA
will add value to its said
features with its innovative
services and products; and it
will continue
to be an important institution
for its customers, partners
and employees.
At the end of the operating year
of 2013, the paid-up capital of
the company is TL 35,779,197,
and the size of its equity is TL
157,492,156. The company
has sufficient equity to meet
its current liabilities and any
losses likely to be caused by
its potential risks.
The size of our company's
assets is TL 5,887,066,036 at
the end
of the year 2013.
Our company's total current
assets is TL 701,266,865,
total short-term liabilities is TL
233,810,083, and the total
insurance business technical
provisions is TL 550,201,629.
The size of the fund related
to pension activities is TL
5.,019,219,444.
Our company's investment
income (net) is TL
31,104,361, and the other
extraordinary revenues and
profits/expenses and losses
are TL 9,150,921.
year 2013 with a net profit of TL
30,744,794.
According to the EGM data of
3 January 2014, our company
ranks 2nd in the sector with
19% market share in terms of
private pension fund size. As
of the same date, the number
of the private pension system
participants is 617,377 persons
corresponding to 15% market
share.
Our company has produced TL
232.9 million premiums in the
life and personal accident
branches, and ranks 7th in the
sector with 6.6% market share.
We extend our thanks to our
esteemed partners for their
attendance to the General
Assembly with the intention
of reviewing and settling the
operations in the year 2013.
Yours sincerely,
In consequence of its all
operations, our company
closed
67
68
Remuneration of Board
Members and Senior
Managers
In 2013, the salaries,
premiums, bonuses and other
benefits offered to the
company’s upper management
totaled TL 4.6 million, up from
TL 4.2 million in
2012.
In 2013, the travel,
accommodation and
representation fees, and
allowances paid to the
upper management stood at
TL 0.9 million, compared to
TL 0.4
million in 2012. The total
indemnity of the life insurance
held by the company’s upper
management was at USD 1.8
million in 2013 and USD 1.8
million in 2012.
Annual Report
Compliance Statement
We hereby state that our
annual report for the year 2013
and
the financial statements of
21 December 2013 attached
therewith and the related
explanations and footnotes
have
been prepared in compliance
with the provisions of the
Decree on “Financial Reporting
of Insurance and Reinsurance
Companies and Pension
Funds” issued by the Turkish
Republic Prime Ministry
Undersecretariat of Treasury,
and of the Decree on
“Determining the Minimum
Contents of the Annual
Reports
of the Companies” issued by the
Ministry of Customs and Trade,
the related legislation, and the
related circulars and
regulations, and that the same
match our Company's
accounting records.
69
Independent Auditors'
Compliance Opinion on
Annual Report
Deloitte.
ORT Ba!jtmStz Denetim ve
Serbest Muhasebeci
Mali Mii avirli k A.$.
Sun Plaza
Bilim Sok. No:S
Maslak, $ijli 34398
Istanbul. Tu rkiye
Tel : +90 (212) 366 6000
Fax: +90 (212) 366 6010
www.deloitte.com.tr
YILLIK FAALiYET RAPORU
Uygunluk Gorii ii
AvivaSA Emeklilik ve Hayat A.$. Genel Kurulu 'na;
AvivaSA Emeklilik ve Hayat A.$.'nin ("$irket") 31 Arahk 2013 tarihi itibanyla haz1rlanan y1lhk
faaliyet raporunda yer alan finansal bilgilerin ilgili hesap donemi sonu itibanyla diizenlenen bagnns1z
denetim raporu ile uyumlulugunu ve dogrulugunu denetlemibulunuyoruz. Rapor konusu yllhk
faaliyet raporu $irket yonetiminin sorumlulugundad1r. Bagnns1z denetimi yapan kuruluolarak
uzerimize du en sorumluluk, yllhk faaliyet raporunda yer alan finansal bilgilerin bag1mS1Z denetimden
geymifinansal tablolar ve as;JklayJcl notlar ile uyumuna ili kin olarak denetlenen y1lhk faaliyet raporu
iizerinde goriibildirmektir.
Denetim, 5684 sayl11 Sigortac1hk Kanunu uyannca yuriir!Uge konulan y1lhk faaliyet raporu
haz1rlanmasma ve yaynnlanmasma ili kin usul ve esaslar ile bagnns1z denetim ilkelerine ili kin
diizenlemelere uygun olarak ger((ekle tirihni tir. Bu diizenlemeler, y1lhk faaliyet raporunda onemli bir
hatanm olup olmad1g1 konusunda makul guvence saglarnak uzere planlanmasnu ve yurutiilmesini
gerektirmektedir. Geryekl tirilen denetimin, gorii umuziin olu turulmasma makul ve yeterli bir
dayanak olu turduguna inamyoruz.
Gorii umiize gore, ili ikteki yllhk faaliyet raporunda yer alan finansal bilgiler, butiin onemli
taraflanyla, AvivaSA Emeklilik ve Hayat A.$.'nin 31 Arahk 2013 tarihi itibanyla 5684 say1
Sigortac1hk Kanunu geregince yurllr!Ukte bulunan diizenlemelerde belirlenen usul ve esaslara uygun
olarak $irket'in finansal durumuna ili kin bilgileri dogru bir bi((imde yans1tmakta ve ozet Yonetim
Kurulu raporu ile tarafnmzca veri len bag1mS1z denetim raporunu i<;ermekte olup, bagnns1z denetimden
ge9mifinansal tablolar ve a((lklayJcl notlarda verilen bilgiler ile uyumludur.
istanbul, 21 $ubat 2014
DRT BAGIMSIZ DENETiM VE SERBEST MVHASEBECi MALi MU$AViRLiK A.$.
Member of DELOITTE TOUCHE TOHMATSU LIMITED
5
Miijde $ehsuvaroglu
Sorumlu Ortak Ba denet9i, SMMM
70
Year 2013 Affiliation Report
of the contract for the PPS
and life insurance portfolios
sold
by Akbank in the year 2013.
Besides, within the scope of the
abovementioned agency
contract, payments have been
made for the
February 21, 2014
1. Object and Scope of Report:
residing at Saray Mah. Dr. Adnan
Büyükdeniz Cad. No:12
Ümraniye/ Istanbul and registered
with Large- Size Taxpayers Tax
Office under
the taxpayer ID no. 306 005
0656 is engaged in two main
branches of insurance as
retirement and life insurances.
The object of this report is to
explain the relations of
A.Ş. with
the affiliates and inform the
shareholders on whether or not
the company is liable for
equalization
as provided by article 202 of the
Turkish Commercial Code (TCC).
Therefore, this report explains the
transactions between AvivaSA
Emeklilik ve Hayat A.Ş. and
affiliates as per the relevant
articles of TCC.
2. Information on Transactions with
Parent Company's Subsidiaries
The transactions made by
AvivaSA
Emeklilik ve Hayat A.Ş. with H.Ö.
Sabancı Holding A.Ş. and Aviva
plc
and their subsidiaries within the
period from 1 January 2013 to 31
December 2013 are as follows:
2.1. Akbank T.A.Ş.
In the year 2008, AvivaSA
Emeklilik
ve Hayat A.Ş. rented the 5th floor
of the Bakırköy Branch service
building of Akbank T.A.Ş.
(Akbank) as liaison office, and the
rental for the said office was paid
in the year
2013 as well.
As per the insurance agency
contract signed between
AvivaSA and Akbank on 8 June
2007, commissions were paid in
accordance with the provisions
purchases of licenses required to
sell PPS products.
The transactions in the financial
services we receive from Akbank
such as letter of guarantee, etc.
as well as deposits, repurchase,
etc. carried out by the bank to
utilize the assets of our company
have been charged on the interest
rates and service fees applied in
the market. Within the scope
of financial operations, AvivaSA
opened a time deposit account in
Akbank in the year 2013, and
acquired interest revenue from this
account. Again in the year 2013, we
performed repurchase, bought
government bonds, investment
funds and eurobonds in the said
bank, and earned incomes from
sales, repayment, and coupon
payments of the said securities.
We signed a Support Service
Framework Contract with Akbank
on 10 March 2008, and this
agreement is in force unless it is
terminated mutually. In the year
2013, too, AvivaSA received the
following services from Akbank:
utilization of the fund portfolio in
compliance wit the legislation
and calculation of the unit share
value accurately; fulfillment of
all the necessary operational and
legal liaisons and reconciliations
that must be fulfilled within the
scope of the fund activities and
the contracted service such as all
government agencies responsible
of regulation and supervision,
other banks and intermediary
firms, founders, managers; fund
accounting and tax procedures;
preparation of financial statements;
calculation and distribution of the
fund management remunerations;
and ensuring reconciliation on the
share numbers.
In addition to the insurance agency
contract signed between AvivaSA
and Akbank on 8 June 2007, an
supplementary protocol was issued
on 10 June 2013 with regard to
the “pilot sales model”. With this
71
protocol, it is targeted to increase
the private pension sales. The
pilot sales model is the name of
the work performed for
cooperation
to increase the "agency sales"
through the support to be given
by the AvivaSA personnel to the
PPS sales processes carried out
by the Akbank personnel under
the
insurance agency contract.
Akbank has been charged for the
amount corresponding to
AvivaSA's natural cost for the said
pilot application in return for the
contributions made by the
involved AvivaSA personnel to the
PPS sales.
2.2. Ak Portföy Yönetimi A.Ş.
a) Company Portfolio Management
Between Ak Portföy Yönetimi
A.Ş. and AvivaSA, the portfolio
management framework contract
for management of the portfolios
composed of AvivaSA’s financial
assets by Ak Portföy Yönetimi as
proxy on behalf of AvivaSA was
signed on 12 November 2008 for
an indefinite period. In the year
2013, AvivaSA continued to receive
the contracted service from Ak
Portföy Yönetimi A.Ş.
b) Pension Investment Funds
Management
Between Ak Portföy Yönetimi
A.Ş. and AvivaSA, a contract was
signed on 8 July 2007 for bona
fide and careful daily management
of the pension investment funds,
converting the fund portfolio
investment into money and reinvest
it, and the AvivaSA continued to
receive the same services in the
year 2013 as well.
2.3. Aksigorta A.Ş.
Aksigorta and AvivaSA signed
group health insurance contract on
4 May 2012 to be valid from 31
December 2011 to 31 December
2012, and a supplementary
protocol to be valid from 1 April
2012 to 1 April 2013 due to the
shift to the flexible plan on 1 April
2012. Within the scope of the said
contract and the supplementary
protocol, the amounts of the
72
policies/supplementary
policies issued by Aksigorta
have been paid.
Between AkSigorta A.Ş. and
AvivaSA, a rental contract
was signed on 1 January
2008 for
the liaison office at Gazi Mustafa
Kemal Bulvarı No:137 Kat:3
Tandoğan-Ankara. On 9 January
2012, the said contract was
signed
for 3 years, Aksigorta A.Ş. was
paid
monthly rentals in 2013 as well.
In order to meet the damage likely
to be caused by occurrence of the
potential risks, AvivaSA has
bought workplace package,
machine breakage, electronic
device, employer's liability, third
party liability, and monetary
assurance package insurance
policies for
the calendar year of 2013 from
Aksigorta A.Ş., and the amounts
of the policies/supplementary
policies issued by Aksigorta have
been
paid.
2.4. Aviva Sigorta A.Ş.
AvivaSA provided Aviva Sigorta
A.Ş. with regular risk and audit
services in 2013. Aviva Sigorta
A.Ş.
has been charged for the payroll
costs and expenditures made
corresponding to the working time
spent for the said services.
2.5. BİMSA Uluslararası İş Bilgi
ve
Yönetim A.Ş.
In order to complete the missing
licenses for the software used in
the company, AvivaSA purchased
services for installation and oneyear support of the MCAfee Web
Protection Suite1:1 GL and Web
Reporter Premium P:1 GL
licenses
that are valid for one year for 1500
users for the purpose of acquiring
licenses, wireless network
antenna,
web filtering, and proxy solution
paying also one-year support
fee.
2.6. Teknosa İç ve Dış Ticaret
A.Ş. The gifts specified in the
campaigns organized by
AvivaSA in 2013 to award the
entitled personnel and
air-conditioners for AvivaSA
head
office and liaison offices have been
purchased, and a contract has been
signed to acquire repair service in
case of a failure.
On 13 August 2010, the office
Çınarlı Mah. Atatürk Caddesi No:1
Sabancı İş Merkezi Kat1 Seyhan
Adana was rented to be used as
liaison office with a starting date of
7 May 2010, and the annual rental
fee was paid in the year 2013.
2.7. Hacı Ömer Sabancı Holding
A.Ş.
AvivaSA sponsored the Sabancı
Spring cultural activity carried out
by the Sabancı Foundation and
totally designed, promoted and
organized by the youths, and made
contributions for the organizational
expenditures.
In the year 2013, AvivaSA rented
meeting rooms in Sabancı Holding
A.Ş. building for various trainings,
and the rental plus the service fee
was invoiced by the holding.
AvivaSA has rented a meeting
room in Sabancı Holding A.Ş. for a
long-term project starting from 1
April 2012. The rental contract was
renewed in 2013, and the monthly
rentals were paid.
2.8. EnerjiSA Elektrik Enerjisi
Toptan Satış A.Ş.
In the year 2013, EnerjiSA was paid
for electricity consumption and the
related services.
2.9. Aviva Europe S.E.
In the year 2013, AvivaSA Internal
Audit Director and Department
Manager provided several Aviva plc
group companies with short-term
services. The expenditures of the
said services were invoiced directly
to Aviva plc without adding the
cost.
3. Result AvivaSA Emeklilik ve
Hayat A.Ş. In this report issued
by the Board of Directors on 21
February 2014, it was concluded
that in 2013, in all transactions
with its parent companies and
73
their subsidiaries, AvivaSA
Emeklilik ve Hayat A.Ş. took the
necessary action or counter
action, according to the conditions
and circumstances known to the
company at the time at which
the transaction or measure was
taken or avoided, that no
measure taken or avoided was
potentially detrimental to the
company, and that, accordingly,
no transaction or measure
necessitates equalization.
74
66
V.
Audit, Financial
Information and Risk
Management
In the year 2013, AvivaSA followed the
right strategies to grow profitably,
outperforming its own targets.
67
Internal Audit
Internal Auditors
Okan Gün
Internal Audit Director
Okan Gün received his degree
in management engineering
from Istanbul Technical
University. Before joining
AvivaSA, he worked at the
Istanbul and London offices of
PricewaterhouseCoopers. A
Certified Public Accountant, he
lectured on audit and insurance
at a number of universities
including Bahçeşehir University,
Sabancı University and
Marmara
University. Since June 2010
Okan
Gün has been serving as
Internal
Audit Director at AvivaSA.
68
İlkin Esra Yeral
Senior Auditor
İlkin Esra Yeral graduated from
Administration (English) at
the Istanbul University. Before
working at AvivaSA, she
worked
at the audit firm Ernst & Young.
A Certified Public Accountant,
İlkin Esra Yeral has been
serving
as Senior Auditor at AvivaSA
since February 2009.
Adem Yorat
Auditor
Adem Yorat graduated from
Administration at the Galatasaray
University. Having started his
professional life as Internal
Auditor in Axa Sigorta, then he
worked as Internal Audit Expert
in Aviva Sigorta. Adem Yorat has
been serving as Internal Audit
Expert in AvivaSA Internal Audit
Department since July 2009.
Internal Audit Activities
AvivaSA Emeklilik ve Hayat’s
internal audit system was
structured in accordance with
the Communiqué on the
Internal Systems of
Insurance, Reassurance and
Pension
Companies issued in the
Official
Gazette dated 21 June 2008
and numbered 26913. An Audit
Committee was set up to help
protect the interests of the
company’s stakeholders and
to help implement Corporate
Governance Principles in
accordance with applicable
laws, regulations and
practices.
According to the organizational
chart, the Internal Audit
Department operates under
the
Board of Directors.
AvivaSA’s audit methodology
is risk-based and in harmony
with International Internal
Audit Standards; furthermore,
it is connected with COSO
(Committee of Sponsoring
Organizations of the
Treadway Commission) and
ERM (Enterprise Risk
Management), and in
compliance with their
provisions.
The company aims to
manage its internal control
system so
as to keep all risk factors
that might jeopardize
strategic
and operational targets within
defined maximum limits; and
accordingly, it was decided
to establish risk management
and internal audit departments
within the organization. This was
designed to ensure operational
productivity and efficiency, and
to issue financial and
managerial
results in a timely, accurate
and reliable manner, as well
as to comply with applicable
legislation, protect shareholder
investments and company
assets,
and manage risks effectively
and
productively.
The scope of internal audit
activities consists of the
analysis and assessment of the
efficiency and competence of
internal control, risk
management and
administrative processes in
order to yield reliable,
independent
and impartial opinions on
these processes, and to present
proposals for improvement and
development. In addition, the
prosecution of financial crime is
also among the responsibilities
of
the internal audit department.
In the year 2013, the internal
audit department conducted
a total of eight audits, namely,
Effectiveness of the Second
Line of Defense, Purchasing
and Outsourcing, Pension
and Life Operations and
Damage Processes, Agency
Supervision, Corporate Sales,
Investment
Management, Financial
Crimes and Payments,
Attorney Fees, and COSO
Internal Control Framework,
sharing its reports with the
audit committee
and upper management. The
findings of the audits and actions
agreed upon together with the
AvivaSA upper management
were presented to the Board of
Directors, with the findings and
actions submitted for Board
Member approval. Additionally,
the internal audit department
delivered a consultancy service
to bring process designs on a
par with Internal Audit
Standards, prior to the inhouse process improvements
and IT infrastructure
transformation.
The Internal Audit Department
consists of 1 Audit Director,
1 Senior Audit Manager and
1 Senior Manager, who possess
the qualifications outlined
by the Communiqué on the
Internal Systems of Insurance,
Reassurance and Pension
Companies. Department
personnel have no responsibility,
authority or influence on
the audited departments of
the company, and their full
independence is ensured.
69
Assessment of the Financial
Situation, Profitability and
Indemnity Capacity
The year 2013 was a year of
intensifying competition in the
insurance segments of the
insurance
sector, and when the
companies adapted to the
legislative amendments in the
Private Pension system.
In 2013, and in the face of
such intense competition, the
company followed the right
strategies to grow profitably,
outperforming its own targets.
And whereas the overall direct
protection premium production
of all private pension an life
insurance companies grew by
30% in 2013, the company
achieved 33% growth, thereby
increasing its market share by
0.1 percentage points and
preserving its 8th position in the
said market.
At the end of 2013, AvivaSA
produced a total of TL 232.9
million in life insurance and
personal accident insurance
premiums, and brought its
market share among private
pension and/ or life insurance
companies in terms of direct
premium production up to 6.6%
(2012 – TL 197.5 million).
• Considering Haymer and
TSRŞB
data as of 31 December 2013;
In 2013, too, AvivaSA
preserved its leadership
position in the
PPS market. The company’s
PPS
fund volume grew by 24% to TL
5.013 million and its participant
number by 26% to 617
thousand individuals. AvivaSA
ranks 2nd in the sector with a
19.1% market share in terms of
PPS fund volume (based on the
Pension Monitoring Center’s
70
data
of January 03, 2014).
• Considering the Pension
Monitoring Center’s data of
January 03, 2014;
AvivaSA closed the year of
2013 with a return on equity
of 18.9%, thus becoming one
of the most profitable among
all Sabancı Group and Aviva
Plc. Companies. The company’s
gross profit was TL 41.3 million
and its net SFRS profit was TL
30.7 million for the year 2013.
In 2013, it distributed its entire
2012 distributable profit of TL
33.6 million to its shareholders.
Calculated according to the
principles set by the
Undersecretariat of the Treasury,
the company’s capital adequacy
ratio as of 31 December 2013
was at 237%, the clearest
indication of robust capital
management. The minimally
required shareholders’ equity
stood at TL 70 million and
shareholders’ equity at TL 166.3
million (excepting provisions for
equalization).
In the life and accident insurance
branches, AvivaSA paid a total of
TL 172.8 million in indemnity for
surrender, maturity, death and
invalidity in the year 2013.
The company initiated an
investment drive in 2012 to
render its IT infrastructure more
flexible, whereby it invested
TL 9.7 million in material and
immaterial assets, representing
an increase of 127% over the
prior year. The growth continued
with the investments in
distribution channels as well. The
workforce of sales channels was
1,108 individuals as of end-2013.
The company plans to expand
its market share in 2013 without
compromising on profitability;
to position itself optimally in
the growing PPS market with
its multi-channel distribution
structure, robust shareholding
structure and shareholders
equity and specialized staff;
and to increase its share of the
risk market.
AvivaSA is an industry leader
in terms of its PPS fund
volume. The company plans
to preserve its robust
shareholders' equity
level in the future. It will continue
to invest in infrastructure,
sales and Head Office staff to
achieve sustainable growth
and profitability in 2014.
Progress in Assets and
Liabilities
The company’s total asset volume
for 2013 grew by 19% over the
prior year to TL 5.887 million.
The largest figure among all
asset items is liabilities from
pension activities. This item
corresponds
to the total fund volume invested
by PPS participants in the
company’s pension funds, and
has grown by 24% over the prior
year to TL 5.019 million.
Another component of the
company’s asset volume is
financial assets and financial
investments, the risk of which
is assumed by the policy
holders, and accounts for 5.9
percent of the total. This item is
TL 345.9 million in size and
corresponds to total financial
assets where the funds of
depositors and policy holders
managed by the company are
invested.
Another asset category is
foreign currency assets (TL 260
million), which accounts for
4.4% of
the total. These assets are
held in parallel with the
company’s foreign currency
liabilities and function as a
hedge against foreign
currency risk.
As for the liabilities side of the
balance sheet of AvivaSA
Emeklilik ve Hayat A.Ş., 87%
of
69
the total corresponds to
liabilities from pension activities,
and
9.3% to technical provisions.
On the other hand, the
mathematical provision for
life, which corresponds to our
liabilities towards policy
holders, fell by 14.8% over the
previous year to TL 466.7
million.
Indemnity Payment
Capacity
The total gross indemnity paid
by AvivaSA in 2013 stands at
TL 175.8 million. Indemnity
payments correspond to
surrender, maturity, and death
indemnity coverage
associated with life insurance
policies, cumulative products,
and combined products that
serve both functions.
and maturity payments- stood at
TL 24.3 million. Taking into
consideration the company’s
current liquidity and the maturity
structure of its investments, it
has a strong indemnity
payment capacity.
In 2013, the company’s death
and invalidity indemnity
coverage
-with the exception of surrender
71
Information on Risk Management
Policies by Risk Type
Risk and Internal Control Group Management
The Risk and Internal Control
Group Management activities
are carried out as per
“Communiqué on the Internal
Systems of Insurance,
Reassurance and Pension
Companies”.
The targets of these risk
management and internal
control activities are as
follows:
• Ensuring compliance with
legal obligations and the
company’s Risk Management
Policies,
• Identifying all structural risks
the company is exposed to and
defining risk acceptance
criteria,
• Designing and applying internal
control mechanisms and actions
in line with these risks, and
assuring the Board of Directors
about the transparent reporting
of the said risks.
The risk management
activities are carried out under
the supervision of the Risk
and Internal Control Group
Management. The Risk
and Internal Control Group
Management heads the Legal
Regulations Committee, thus
monitoring and guiding the
Company's legislation-related
activities. The Committee
composed of the
representatives from the
relevant functions of the
Company reports to AvivaSA
Executive Council.
The Operational Risk and
Reputation Committee
composed of the AvivaSA
Executive Council members
monitors the operational risk
events to ensure that
effective
actions against the
circumstances beyond risk
appetite and tolerance are taken
on time.
The Risk and Internal
Control Group Management
submits its findings and
evaluations related to the
Company's risk
management and internal
control activities to the Board of
Directors Risk Committee
every three months.
Internal Control Framework
AvivaSA Internal Control
Unit functioning under the
Risk and Internal Control
Group Management targets
to
make contributions under the
following categories through its
operations:
• Raising the awareness on
a strong and effective
internal control in AvivaSA,
• Improving the internal control
processes and applications
continuously to ensure their
optimum and cost-efficient
functioning,
• Creating the best internal
control and supervision
practice in AvivaSA.
The Internal Control Unit
functions in compliance with
72
its own governance manual
and practice methodology to
ensure effective internal control
environment in the company,
and reports to the CEO and the
Board Members in charge of
the Internal Systems.
company, insurance business
customs, the reliability and
integrity of the accounting and
financial reporting systems,
and timely retrievability of the
information, and that the said
controls operate effectively.
The internal control activities
are among the basic
responsibilities of the Company
functions. The functions
constituting the first line of
defense are responsible for
determining the the internal
control points to ensure that the
Company assets related to their
own processes are protected,
its activities are carried out
effectively, efficiently and in
compliance with laws and the
other relevant legislations, inhouse policies and rules of
the
The primary scope of the
Internal Control Unit operations
is to evaluate and report to the
upper management the
efficiency and effectiveness of
the internal control measures
and processes carried out in
AvivaSA's first line of defense.
The functions carry out the
internal control regularly and
take the necessary improving
actions; and such activities are
monitored and directed by the
Risk Management and Internal
Control.
AvivaSA Risk Management Framework
AvivaSA risk management
framework includes the
strategies, policies models,
processes, and reporting
procedures required to identify,
measure, manage, monitor and
report the risks to which the
Company is or may be
exposed.
The risks faced by the
company are identified and
assessed by the upper
management within the scope
of the AvivaSA risk
management framework.
In this assessment, the
probability of these risks and
their possible effects are
taken into consideration.
Risks and
associated risk management
actions (internal controls and
actions) are monitored
closely and methodically.
The Risk Management
Department's functions are to
identify, measure and monitor
the risks to which AvivaSA
exposed, to ensure that
actions are taken to keep the
risks within the limits
determined
as per the risk appetite, and
report such actions. Besides, as
the Compliance Unit, it is also
responsible for application of
the Law No. 5549 on Prevention
of Laundering Proceeds of
Crime
Echelon
Responsible
1st Line of
Defense
2nd Line of
Defense
3rd Line of
Company
Management
Total
Risk
Management and
Internal Control,
Legal
and the relevant regulations.
Risk management is the
company’s main means of
avoiding undesirable
outcomes in the pursuit of its
targets.
The management approach
interacts with decision making
processes through a risk-based
approach, which in turn allows
the company to use its
resources efficiently, and thus
meet the expectations of all
business partners including
customers and shareholders to
the highest level. In this
approach, dubbed the triple
defense line, the division of
authority and responsibility is as
follows:
Authorities and Duties
Identifying and assessing risks, managing and reporting
these efficiently and so as to remain within the risk appetite
limits, ensuring compliance with company policies.
Establishing and executing the effective internal control
system.
Supporting the company management in identifying,
assessing, managing and reporting risks, overseeing
compliance with company policies and identifying any
violation; in short, assisting in the functioning of AvivaSA’s
Risk Management Model. Providing an acceptable
assurance
that the Company assets are protected, its activities are
carried out effectively, efficiently and in compliance with laws
and
the other relevant legislations, in-house policies and rules
of the company, insurance business customs, the
accounting and financial reporting systems are functioning
reliably, their
integrity, and timely retrievability of the information.
Defense
73
Internal
Audit
74
Assurin
g the
Board
of
Directo
rs
about
the
efficien
cy of
the
compa
ny’s
risk
manag
ement
and
internal
control
mecha
nism
from an
imparti
al and
indepe
ndent
viewpoi
nt
Risk Policies
Risk policy framework
AvivaSA’s risk policy
framework indicates rules for
providing
a consistent approach to
identification, measurement,
management, monitoring
and reporting of the risks.
The company's risk
management framework
policy defined the risk
management roles and
responsibilities of the Board
of
Directors and the Risk
Committee under the Board of
Directors,
the CEO, and the committees
(Assets-Liabilities Committee and
Operational Risk and Reputation
Committee). The said policy also
explains the role of each level in
the triple line of defense model
and functioning of the delegation
of authority in AvivaSA.
The governance of AvivaSA’s risk
management framework is
composed of the defined
processes allowing to changes
and exceptions in the governance
requirements within the framework
of the
risk policies, business
standards, authorities, delegated
authorities, and special
responsibilities as well as
escalating the issue to upper
levels and monitor the violations.
The ultimate responsibility for
defining the risk management
principles and standards to
be applied across the
Company, updating the risk
policies according to the
changes
in the operating conditions,
establishing and executing
effective risk management
system and processes, monitoring
the Company’s riskiness level,
establishing the risk limits,
checking the current situation
against such limits, and taking the
necessary actions belongs to the
Board of Directors.
risk type to which AvivaSA is
exposed: life insurance and
private pension, credit, market,
liquidity and operational risk
policies. Since the risks the
company faces cannot be
categorized in a single category all
the time, it is necessary to utilize
multiple risk policies
simultaneously
in the risk definition, measurement,
management, monitoring and
reporting processes.
AvivaSA is also exposed to the
business risk in relation to its
operations in the life insurance and
private pension sector. Likewise,
the company also faces financial
risks related to its operations, such
as loan, market, and liquidity risks.
The operational risk that is the final
risk component is caused by the
faults
of human, process and
technology used in management
of the assumed risks: The
concentration risk, on the other
hand, is not a separate type of
risk; but it occurs in cases where
there is insufficient distribution in
or between certain type(s) of risk.
The rising risk or
volatility arising from concentration
is assessed in each one of the risk
types.
The Risk Management Policies
set the basic principles and
standards for the risk
management system and
processes. The policies are
approved by the Board of
Directors, and the amendments
made to the same require the
Board of Directors approval.
The tools required to
determine, measure, manage,
monitor and report the risk vary
by the risk type. Therefore, the
risk policy
framework includes six risk
policies, including the Risk
Management Framework Policy,
special to each
RISK MANAGEMENT FRAMEWORK
RISK APPETITE FRAMEWORK
BUSINESS RISK
FINANCIAL RISK
PRIVATE
LIFE
LIQUIDITY
CREDIT
MARKET
PENSION
INSURANCE
RISK
RISK
RISK
75
OPERATIONAL
RISK
AvivaSA’s Risk Policy Framework
76
Business standards
AvivaSA is aware of the
importance
of the consistent and controlled
business processes in the risk
management process. Therefore,
each policy is supported with
business standards intended for
providing the top effectiveness in
the relevant business processes.
The work commenced in the year
2013 will be scheduled so as to be
implemented 40 business
standards
as of the end of the year 2014.
The
great part of the business
standards
are the responsibility of the first line
of defense. In the company, each
standard has a responsible
person; the business standards
are reviewed at least once a year
in the light
of the latest developments,
and revised if necessary.
The currently applied risk model
shows the structural risks of the
Company operating in the life
and pension sector, the
measurable data of such risks,
the risk factors, the limits for the
Company to accept such risks,
and how such risks will be
managed. The Risk
Management Policies are
practical
guides explaining the most
effective
way to manage the
Company's financial,
operational and reputation loss
risks.
The basic issues considered
while determining the risk limits
arr the risk measurement results
and
the Company's risk appetite. Apart
from the risk limits, the risk
indicators of the developments
and occurrences that will affect the
risk level negatively are identified
and monitored by the basic
business functions as early
warning signals.
Information on Risk Management Policies
by Risk Types
Risk Management
Framework Policy
The said policy is fundamentally
important for supporting and
improving the companies
corporate management
structure. The basic objectives
of
this policy are determining the
basic principles and standards
of the risk management
systems
and processes, implementing
such systems and processes,
and
complying with the determined
risk limits.
The activities covered by the
Risk Management Policy are
carried out within the framework
defined by the insurance and
private pension legislation and
the other relevant legislations
to which the Company is
subject.
Life Insurance and
Pension Branch
Risk Policy
Life Insurance and pension
branch risk means the risk
likely to arise from wrong
and ineffective application
of the
insurance business
technique in the assurance
process for the life insurance
branch, while it includes the
risk of loss likely
to arise from inadequacy of the
cash flows acquired in the longrun to cover the costs in the
private pension branch.
In management of the insurance
risk, it is essential to create a risk
profile based on the Company's
risk appetite in the portfolio.
To the that end, the insuree
portfolio is monitored effectively. It
is monitored regularly whether the
said portfolio remains within the
defined risk limits of the Company
or not.
Credit Risk Policy The
credit risk means the
negative financial impacts
that may be caused by the
fluctuations in the credit quality,
such as the third party default,
rating changes, and movements
in the credit spreads.
The company's total credit risk
arises from the insurance
business transactions such as
the investment activities carried
out in the banks and financial
institutions, its purchases
made for its operations, and its
77
receivables from the reinsurer
companies, insurees and
agencies.
The credit risk is managed
with the limit framework
defined for the companies and
organizations involved in the
transactions
made. The credit limit
framework is supported with
an escalation framework to
report larger
and/or riskier transactions
to the upper management.
The Assets-Liabilities
Committee is responsible
for creating,
monitoring and reporting the
policies, risk appetite and
limits related to the credit
risk.
Liquidity Risk Policy
The liquidity risk means the
risk
arising from failure to meet
the Company's liabilities at
maturity and cost-effectively.
The purpose of this policy is
to create a Company-wide
framework for management of
the liquidity risk. The target of
the liquidity risk management
is
to optimize AvivaSA’s longterm
risk-based rate of return while
keeping the liquidity risk within
the risk appetite parameters.
Before taking any strategic
decision such as new product
launch, investments in new
types of assets, it is necessary
to consider the impact of such
78
decision on the
Company's liquidity risk
profile.
The risk appetite limits are
determined with the Liquidity
Coverage Ratio (LCR)
defined in the Risk
Management Framework
Policy. Any change to be
made in the LCR limits
is approved by the Board of
Directors upon the suggestion
of the AvivaSA AssetsLiabilities Committee.
In our Company's field of
operation, risk definition
requires continuous review of
the operation environment, and
make investments by taking
the trends and fluctuations
into consideration. This
means that the any
evaluation of the current
liquidity profile o the assets
and liabilities on the basis of
the past experiences only will
be insufficient. While
analyzing the encountered
liquidity risks, the social,
political, legal, legislative,
geographical, and environmental
changes as well as the financial
market are taken into
consideration, and this analysis
is supported with the process
intended for identifying the newly
emerging risks.
• Our investment strategy is
created by considering the
investable assets and the
bandwidths (lower and upper
limits) allowing to move in the
asset management process,
the Company's liquidity
conditions, and especially the
potential liquidity profile of the
liabilities.
• The management of the
liquidity risk includes an
approved limit structure and
a
series of triggering regulations
to ensure that the management
is informed of the potential
problems. The AssetsLiabilities Committee is
responsible
for creating, monitoring and
reporting the policies, risk
appetite and limits related to the
liquidity risk.
It is essential to evaluate the
probability of the operational
risks and the level of impact
they will create, and take the
necessary measures
accordingly. The 1st Line of
Defense can provide protection
against operational risk through
effective follow-up and
monitoring of the processes.
Market Risk Policy
The Risk and Internal
Control Management
monitors and report the
effectiveness, efficiency of
the controls and
the process of implementing the
action plans.
The market risk arises from the
structure and attributes of both
the asset investments made to
obtain the returns required to
fulfill the liabilities to the insurees
and the liabilities – in relation
to the insuree behaviors. The
objective of the market risk
management is to keep the
Company's market risk within
the risk appetite parameters,
thus maximizing AvivaSA’s longterm risk-adjusted rate of return.
Within the investment
management activities, the
asset investment policy, the
liquidity and credit risk
management framework, and
the relevant control processes
have been created. The
Assets-Liabilities Committee is
responsible
for creating, monitoring and
reporting the policies, risk
appetite and limits related to the
market risk.
The market risk components
such interest risk and
exchange risk faced by our
Company are measured
periodically through stress and
scenario tests, and then
reported .
AvivaSA's target is to keep the
operational risk at the lowest
level that is commercially
reasonable. With the
operational risk management,
AvivaSA targets to decrease
faults, repeated works and
unfulfilled commitments, thus
improving
the processes and achieving
the following results:
• Decrease the operational losses
• Fulfill the commitment
and improve the employee
satisfaction
• Maintain the customer's trust
• Positive legal reputation
• Decrease the operational risk
In order to support identification,
measurement, management,
monitoring and reporting of the
operational risks, a framework
special to the operational risk
and reputation management
has been created:
Operational Risk Policy
The operational risk is the risk of
loss likely to arise from
inefficient business processes,
personnel, systems or external
factors.
79
RISK MANAGEMENT FRAMEWORK /RISK APPETITE FRAMEWORK
ECONOMIC
CAPITAL
COMPANY
COMPANY
LIQUIDITY
OPOPERATIONAL RISK POLICY
RISK CULTURE FRAMEWORK
Control Environment
Business
Standards
Control Activities
Basic Indicators
External
Rules
Management
Tests
Risk Mitigating
Actions
Closing the
Audit
Findings
80
Risk Analysis &
Assessment
Functional
RCSA
Decision Making
Process
Project Risk
Analysis
Risk Events
Basic Risks
&
Approachin
g Risks
Stress &
Scenario
Tests
Budget/Plan
Risk
Analysis
Escalation to
Senior Management
Record and Root
Cause Analysis

Contents - AvivaSA Emeklilik ve Hayat

Transcription

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