Azernews.Az

By News Centre

Turkiye’s insurance and pension sector reached total assets of 4.4 trillion liras and equity of 512 billion liras as of the end of the first half of 2026, while the sector’s net profit for the period stood at 103.6 billion liras.

According to a statement from the Insurance Association of Türkiye (TSB), the country’s insurance and pension sector completed the first half of 2026 while maintaining a strong balance-sheet structure.

The sector’s total assets increased by 45% in nominal terms from the same period a year earlier to 4.381 trillion liras, while equity rose by 58% to 512 billion liras. In real terms, assets expanded by 13%, while equity grew by 20%.

The sector recorded net profit of 103.6 billion liras during the first six months of the year. Non-life insurance companies accounted for 67.5 billion liras of this amount, while life and pension companies generated 36.1 billion liras.

Results from life and pension companies made a significant contribution to the sector’s financial performance during the first half of the year. Their total assets increased by 54% in nominal terms from the same period of last year to 2.9 trillion liras, while equity rose by 64% to approximately 117.4 billion liras. In real terms, assets grew by 17% and equity by 24%.

In life insurance, technical profit reached 25.7 billion liras, representing a nominal increase of 78% and a real increase of 35% compared with the same period last year. In the pension segment, technical profit amounted to 1.3 billion liras, increasing by 60% in nominal terms and 21% in real terms.

The results showed that the need for long-term savings and protection continues to play an important role in the sector’s development, while the contribution of life and pension companies to balanced growth has strengthened.

In the first six months of 2026, the technical loss of non-life insurance operations excluding investment income reached 45.3 billion liras. This represented a 67% nominal increase from the 27.1 billion lira loss recorded in the same period last year.

During the same period, investment income transferred from the non-technical segment to non-life insurance operations amounted to 121.1 billion liras. This income increased by 29% in nominal terms compared with the same period last year, while declining by 2% in real terms.

With the contribution of investment income, the technical profit of the non-life insurance sector reached 75.9 billion liras. Although technical profit increased by 14% in nominal terms, it declined by 14% in real terms.

The figures indicate that investment income continues to play a decisive role in generating technical profitability in non-life insurance. At the same time, creating sustainable technical profitability through core insurance operations has become increasingly important.

Total investment income across the sector amounted to 193.7 billion liras, while total investment income generated by non-life insurers reached 164.6 billion liras. Investment income in the non-life insurance segment increased by 25% in nominal terms but declined by 5% in real terms.

The sector’s operating expenses reached 151.5 billion liras in the first half of the year, rising 25% from the same period last year. The fact that operating expenses increased at a faster pace than premium production, which grew by 20% in nominal terms, further highlighted the importance of cost management.

The 13% real contraction in premium production in the non-life insurance segment should be assessed together with the deterioration in technical results excluding investment income, according to the assessment. If the increase in claims costs continues, pressure on technical profitability and overall period profit could persist in the coming period.

TSB Chairman Ahmet Yaşar, whose assessment of the sector’s financial results for the first half of 2026 was included in the statement, said the figures demonstrated that the insurance and pension sector had maintained its strong balance-sheet and capital structure.

“The fact that our total assets have reached 4.4 trillion liras and our equity has reached approximately 512 billion liras is extremely valuable in terms of the resilience of our sector and the economy,” Yaşar said.

Yaşar noted that the results also demonstrated the need to support strong balance sheets with sustainable technical profitability.

“The fact that the technical loss in non-life insurance excluding investment income reached 45.3 billion liras, increasing by 67% compared with the same period last year, indicates that we need to strengthen our technical results,” he said.

“Although investment income continues to contribute to technical profitability, healthy pricing, effective risk management and cost discipline will remain our key priorities. The real growth achieved in technical profitability on the life and pension side once again demonstrates the value that our long-term savings and protection system brings to the Turkish economy,” Yaşar added.

Looking ahead, Yaşar said the sector’s goal was to improve technical profitability while preserving its strong capital structure, increase insurance penetration and ensure that more individuals and businesses have access to the protection they need.

“Our goal in the coming period is to improve our technical profitability while maintaining our strong capital structure, increase the insurance penetration rate and ensure that more individuals and businesses have access to the protection they need,” Yaşar said.

“A strong insurance sector does not merely cover risks; it supports savings, paves the way for investment and strengthens the resilience of the Turkish economy,” he added.