Garanti Pension and Life

Founded in 1992, Garanti Pension and Life acquired a pension company license in 2002 and added pension activities to its efforts in life insurance. Garanti Pension continues to lead the sector thanks to its exemplary bancassurance practice. The Company’s goal is to provide outstanding services to customers drawing on the joint vision and cooperation created with Garanti Bank, a partnership of Doğuş Group and General Electric, and Eureko B.V., one of the leading insurance companies in Europe. With its experience in bancassurance, Garanti Pension is the exemplar in the sector.

Highly recognized and trusted Garanti brand as well as Garanti’s extensive distribution channels, its strong shareholders, technological infrastructure, customer-focused innovative approach, highly-qualified human resources and leadership in the sectors in which it operates with new products, its ability to lead the sector in profitability by acquiring additional market share each year bestow upon Garanti Pension a significant competitive edge in this highly aggressive sector. Garanti Pension has 597 employees, 354 of whom are employed in regional offices.

Garanti Pension acquired the largest market share both in the number of participants and contributions in 2009 in the pension sector. Achieving the highest increase in the number of participants with 19% growth, Garanti Pension reached 400,000 participants. With 64,000 new participants, Garanti Pension gained a 26.2% market share among 13 companies and took the lead of the sector. Having raised its market share in contributions to 14.8%, Garanti Pension has been the company to increase its market share the most with 0.9%, and reached TL 1 billion 310 million in funds under management, increasing its share in the market from 14.1% to 14.5%.

The Company grew its direct premium production by 47%, three times as fast as the sector. Having gained 2.2 percentage points market share, Garanti Pension escalated to third place with a 10.2% share in the market. One of the key drivers behind this rapid growth was the life insurance policies providing unemployment cover, which were started to be sold for the first time in the industry by Garanti Pension. The Company generated TL 72 million in premiums on this product with a total of 627,000 policies.

The first pension company to introduce pension income plans and to pay pensions to its participants within the frame of a scheduled repayment system, Garanti attained a year-on-year increase of 18% in its after-tax net profit, bringing the figure to TL 75 million in 2009.

Garanti Pension sets its main objectives for 2010 as continued market share gain both in life insurance and pensions through effective use of alternative delivery channels and bancassurance.

Combining its innovative insurance products with vigorous sales force of Garanti Bank, Garanti Pension aims to increase its premium production in life insurance and gain market share. Garanti Pension also intends to increase the portion of life insurance premium produced by the alternative distribution channels. The Company aims to maintain its leadership in acquiring new business in the pension sector while increasing its market share in pension funds by diversifying its product mix. Garanti Pension will further enhance its projects aimed at improving customer satisfaction, while targeting increased profitability along with sustainable growth.