AvivaSA Emeklilik (AVISA TI) - Technical profitability strong: Maintain Buy
AvivaSA a nnounced 1Q net income of TRY33m (19% q-q, +80% y-y), in line with our estimate of TRY32m. Key earnings contributors were the life and pension lines and investment income. Life technical profit grew 31% y-y thanks to strong premium growth (25% y-y) and higher retention. Pension technical profit reached TRY17m from TRY2m a year ago on expanded pension AUM (23% y-y) and almost stable opex (+3% y-y). Net investment income rose 63% y-y on elevated deposit rates. The technical NIM rose to 5.8% (+3.6ppt y-y) and the net income margin rose to 6.4% (+2.7ppt y-y). The four-quarter trailing ROAE was a high 49%. We revise our FY18-20 EPS by 3.2%/3.6%/1.4%.
We raise our GGM-based 12M TP to TRY22.30/sh on our revised EPS estimates, with unchanged GGM assumptions (COE 17.1%, long-term ROE 34%). We maintain our BUY rating.
AvivaSA Emeklilik ve Hayat AS is a Turkey-based private pension and life insurance company. The Company's pension plans are: Biriktiren VIP Plan, Prestijli Emeklilige Yatirim Plan, Biriktiren Gelecek Plan, Plan Nar plan, Zumrut Plan, Emeklilige Yatirim Plan and Mutlu Birikimler Plan. Its life insurance products are: Refund of Premium Life Insurance, Long-Team Life Insurance, Continuing Education Insurance, The Future is in your Hands, Your Custom-Made Life Insurance, My Life Support Insurance, Plan B Protection Insurance, Life Support Insurance, VIP Life Insurance, Cheque Life Insurance and SME Credit Life Insurance. In addition the Company offers personal accident and unemployment insurances as well as corporate solutions.
TEB Investment equity research analysts and strategist team consists of 8 analysts with an average finance sector experience of 15 years and special focus on international investors.
With our 6 equity research analysts we cover 93 companies across 21 sectors, reflecting 80% of the total market capitalization of all BIST companies and 86% of the BIST100 companies. Our strategy team provides in depth top-down and bottom-up market views with insight on FX and bond markets by publishing sectoral and strategic reports both in English and Turkish.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.