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Ladies and gentlemen, welcome to the Aksigorta Third Quarter 2021 Earnings Call. Thank you very much for standing by. There will be a Q&A session following the presentation by the speakers. [Operator Instructions]
With that, I will now hand you over to your host, Mr. Ugur Gulen, the Aksigorta CEO; and Mr. Osman Akkoca, the Aksigorta CFO. Gentlemen, the floor is yours.
Thank you. Welcome to Aksigorta 2021 third quarter earnings call presentation. I'm very pleased to be with you today. We are going to make the presentation, together with Osman Akkoca, CFO of Aksigorta. And at the end of the presentation, if you have any questions, please just let us know, and you can use any facilities provided to you for that question.
Yes, Osman, please, you can continue your presentation quickly, and we can give some quality time for the Q&A session as well. Thank you.
Thank you, Ugur. So we will quickly go over the presentation and give more time to the Q&A session.
Hello, everybody. Welcome all. Let's start with the first page shows what we did in the last 4 years, consecutive 4 years. Aksigorta released better than the guidance. The financial performances were over beating the guidance in the last 4 years. So this shows our -- both company performance and management's credibility from investor perspective.
On the next page, we have the summary of our performance in the third quarter standalone. And in the third quarter, we have 16% growth in the top line. We have almost TRY 1.5 billion gross written premiums. On the other hand, our net income stepped back by 28% and only TRY 62 million in a quarter was our net income. And the total equity reached to TRY 1.031 billion with 4% growth. And the main reason of the, let's say, decrease in net income was the deterioration in the claims side, the net loss ratio increased by 10% and reached to 66% -- 86%. And accordingly, net combined ratio increased to 109%. The most of the increase is coming from the loss ratio increase, and 1% is compensated by the improvement in the commission ratio and the expense ratio side. And the ROE dropped to 30% with a decrease of 18 percentage points versus prior year third quarter. And we paid TRY 306 million in 9 months, and the first installment was TRY 204 million in March and TRY 102 million in September. The payout ratio is 71%.
On the next page, we have the first 9 months -- I mean, year-to-date figures. So we have strong growth in the top line with 27%, and we generated TRY 405 billion, almost gross written premiums. And on the other hand, we have TRY 231 million net income with a decrease of 33%. And the main reason in the decrease of net income is the increase in the loss ratio. And our total equity, as I said, TRY 1.031 billion. And the net loss ratio increased by 15% and reached to 82%. And again, as a reminder, last year, second and third quarter was the beneficiary quarters. Basically fees from the mobility decrease due to pandemic condition. So there were some, let's say, extraordinary underwriting profit coming from the less claims in the second and third quarter last year. So this 15%, it is not an apple-to-apple comparison, I can say.
In the net loss ratio side, there is 15% increase. But in the net combined ratio, there's 14% increase. Again, 1% is compensated by the improvement in the commission and expense ratio. And our combined ratio is 105%, which is over the, let's say, breakeven level of 100% after years.
And our market share increased to 8.2% with an improvement of 0.3 percentage points. So last year, we ended with 8.3% market share. And our pace is 0.3%. So it corresponds to around 8.6% to 8.7% at the year-end. So in terms of growth, this is a strong year performance in that Motor side.
Our ROE, again, 30% after years. So we get used to release ROE around 45% to 50%, but mainly due to some reasons which I will explain in the following page, our ROE decreased to 30% with 18 percentage points deterioration.
And our asset under management increased by 25%, very parallel to top line growth, 27% even. We paid out TRY 306 million dividend. So our asset under management is around TRY 3.8 billion at the end of September.
And our return yield reached to 16.5% with -- lastly, leveraging third quarter performance. So in the third quarter, return yield was higher than the first 2 quarters. And our financial income increased by almost 50% in this year and reached to TRY 461 million.
And on the next page, we have the picture of the market growth and market premium generation. On the most right-hand side, you see the year-to-date figures that on the -- just on the left side, you see the third quarter figures. In the third quarter, there is 25% growth in the top line of the market, and the market generated almost TRY 17 billion premiums. You see we started with 23% growth in the first quarter. And then slightly less growth in the second quarter with 17%. And then again, a very strong growth in the third quarter with 25%. And you see in the third quarter, MTPL is -- has a higher growth than the first 2 quarters with 8%. So we see that the -- as the interest rate come down, the growth in MTPL accelerate.
And in MOD, again, the strong growth continues. It's 32% in the third quarter and the year-to-date growth is 30%. And in the Non-Motor, again, there is a strong growth, which is 32%. In the first quarter, that was again 32% growth in Non-Motor, which was supported by the huge growth in agriculture business. And in the second quarter, which was a regular growth, around 20%. And then in the third quarter, mainly driven by the FX rate increases, the growth was very strong with 32%. And then the year-to-date growth is 28%. And in the half, again, very strong beginning with 24% in the first quarter and then a weaker growth with 18% in the second quarter. And in the third quarter, again, a very strong growth with 32 -- 33%.
So the year-to-date figures, you see, only MTPL is below the line -- I mean, below the market growth averaged 22%, let's say, the official inflation, 19%, and the FX rate around 25% to 30%. So only MTPL is behind. Other than MTPL, MOD has a very strong growth with 30%, 15% is coming from the number of policy increases and 15% is coming from the improvement in the average premiums in MOD, but a 15% increase in average premium is still weak compared to last, say, 19% overall inflation or 30% spare part inflation or 35% average claims paid amount. So the premium increase in MOD is weaker, but overall growth in MOD is 30%, which is very strong.
And in the Non-Motor side, we have 28% growth, we can say which is parallel to the FX rate increases. So the Non-Motor is, let's say, mostly driven by the FX rate increases as the insured values are linked to, let's say, mostly driven by FX rates.
And in the Health side, there is a different medical information, different than the overall inflation. So that again in the Health side, both the average premium and the number of issues is increasing in the outside, as we mentioned in our previous meeting. There is a shift from comprehensive health products to complementary health product. Average premium in complementary health product is less than the comprehensive one. And the number of issues, number of policies is strongly growing in the complementary health side.
So that is the quick picture of the market growth in terms of products. And looking to the channel side, there is, again, strong growth in agency side, around the market average, it's 23%. So the agency is mostly driven by motor and Non-Motor and also health product. In the bank side, again 26%, a very strong growth. In the corporate side, slightly less than the market average, mainly we can say due to there is a one-off policy in the last year which was the Akkuyu nuclear plant policy around TRY 600 million, and this was a long-term policy and issued by 2, 3 years ago. So this year, it's missing. So the corporate average growth is slightly less than the market average 22%.
So that's a summary of the market premium generation. On the next page, we have the Aksigorta figures. In the Aksigorta side, the first quarter was similar to the market growth. We realized a very strong growth with 28%, and we continued in the second quarter. While the market is, let's say, stepping back in terms of growth, we had 38% growth. But then in the third quarter, we have a low growth compared to the first 2 quarters with 15%. But our still overall growth is 26% year-to-date growth and -- which is still stronger than the market growth.
So in the third quarter, in Aksigorta side, we have a stronger growth in MTPL with 20%. And starting from the year growth in MTPL was quite stronger. And in MOD side, the first 2 quarters was strong growth in Aksigorta side, but in third quarter and mainly due to our price adjustments in the second quarter, we were behind the market growth with 7% only. But we think that the market realized from loss increase in the MOD side in the second and third quarters. So we assume that the market -- we assumed and we observed that the market is adjusting their prices in September and October already. So we adjusted our prices starting from April, according to the new level of FX rate. Remember that there was an FX increase around 10% after the Head of Central Bank changed at the end of March. So again, we are experiencing some extraordinary days at the end of September and at the beginning of October. So this is, again, there is some volatility in the market pricing and also FX rate. So it will be the indicator for the coming period. So we continue adjusting our price in MOD continuously.
And that's the picture in MOD side. I will again come back to MOD in the profitability session. In Non-Motor, we go strong. Again, 32% growth is higher than the market average growth. So -- and also, thanks to almost all channels contributed to our strong growth in Non-Motor, both agency, bank and corporate channels are overperforming the market average in Non-Motor side.
So our -- from a growth perspective, the weakest growth is in health side. We have 6% growth. But I want to remind you that the -- while the time sheet in the Sabanci group health policy, which was issued in January in the previous years. But in the last year, we renewed it in December. So in this December, we will renew. We will probably renew that policy again. So the health growth will go up in the third quarter. But still, we see that it is slightly less than the market average, I can say, in health side. So we are, let's say, thinking about the business model, the growth opportunities in health business and our strategic plan in our health business.
And looking to the channel breakdown, we have still quite strong growth in all channels, as you can see all the platforms both the market and Aksigorta average reached 29%. And they are -- we are growing almost in all products in agency channel. So we are enlarging the agency distribution. Our number of agents exceeded 305 -- 3,500. So we are extending the distribution. And we are improving the per agency, let's say, production. So we are going very good in the agency side.
In the bank side, there is 21% growth. This is -- I mean, this is very parallel to our targets, but still less than the market bank channel growth, 26%. So we are trying to accelerate the bank channel in the last quarter. So I think the last quarter will be better than the first 3 quarters growth. In the corporate side as well, we have a strong growth with 24%.
So that's the top line picture from Aksigorta side. On the next page, we have the profitability. So 2020 was an extraordinary year, basically due to the beneficiary mobility decrease in nonlife insurance market. And then starting from 2021, we had some, again, weather-related incidents at the first -- in the first quarter. And in the second quarter, some midsized claims -- frequency of midsized claims was high in the second quarter. And also last year's second quarter was an extraordinary performance. So the underwriting results, the technical results were less than prior year's results in the first 2 quarters.
And the third quarter was a different story. You see the main underperforming product is MOD. You see we have around TRY 47 million loss in MOD, which was expected some TRY 30 million profit -- TRY 30 million, TRY 40 million profit. So there is around, let's say, TRY 70 million, TRY 70 million less underwriting result in MOD in third quarter. And that was, again, TRY 20 million less in the second quarter. So all in all, in this year, we had a negative impact in MOD around TRY 90 million, which is driven by the FX rate increases in our pricing, in our MOD pricing. We consider the inflation forecast and also FX rate forecast for the coming 15 -- 12 months. And the realization is the realizations are higher than our forecast in our pricing, we will be -- we are short in terms of profitability. So the FX rate increases were higher than our expectation.
And in the claims, in MOD, the expected loss ratio is around 72%, 73%. And 70% of the claims is coming from the spare parts. It means 50 -- overall, 50% of the premium is paid to the spare part, and most of the spare parts are driven by foreign currency. So we are exposed to the foreign currency in the MOD side. Basically, the pricing is TL basis and the cost is mostly foreign currency basis in MOD.
So that's the story of the second quarter. And also in the second quarter, you see our Non-Motor underwriting margin is only 6%. And in the past, we used to have some 10% to 11% underwriting margin in Non-Motor side. So we had extra TRY 22 million from the flood incidents in the northern part of the country and the wildfires in the southern part of the country in the third quarter. So TRY 70 million from MOD unexpected cost and TRY 22 million from Non-Motor, basically, the fire product, the weather-related incidents and the wildfires. So we have negative TRY 9 million underwriting results in the third quarter. And the year-to-date figure is, again, TRY 74 million.
And compared to prior year, it was TRY 355 million, we can say that there was around TRY 175 million, let's say, positive impact of COVID in the last year. So if we exclude the TRY 175 million, the remaining TRY 180 million is, let's say, comparable with this year's TRY 74 million. There is around TRY 100 million difference or underperformance in this year. So this -- the explanation of that TRY 100 million is the loss of the MOD and the weather-related claims in the first 3 quarters.
And health is almost stable. We have around 16% to 18% underwriting margin in health. And in MTPL side, again, it is almost negative 2% to positive 2% changing quarter-to-quarter. So MTPL and health is okay. In MOD, we received the higher claims, and we adjusted our prices accordingly. And due to these adjustments, our market shares decreased in the third quarter. And in the Non-Motor side, we had some unexpected claims from those weather-related incidents and wildfires. So again, we adjusted our prices in Non-Motor side.
So that's underwriting performance. On the next page, which is very simple. We have the combined ratio figures. Last year's second quarter, you see 79, which is very, very extraordinary. So our long-term combined ratio should be between 95 to 99. But last year close to 95%. This is our long-term ambition. But in this year, we are far from our target at the end of September. We have 105% combined ratio and the increase, you see, mainly driven by claims ratio in the expense side -- expense ratio side and the commission ratio side. We have no change year-over-year.
On the next page, we have the financial investment performance and our asset under management breakdown. At the end of September, we have 46% of our portfolio in time deposits, and 32% in the corporate bonds, and we have 7% in the Eurobond, 9% in the government bond and the remaining 5% in the equities, right?
So in the equity side, we have a very limited portfolio and -- which is a mix of both local equities and the foreign equities. And in the government bond side, we are increasing our exposure by September, basically due to the last 3 to 10 years state bonds' returns are very attractive. So we are trying to increase our exposure in the state bond in the mid-term focus especially. And in the Eurobond side, again, we have a fixed share of portfolio, which is around 6% to 8%. So we are keeping our Eurobond portfolio. Just on the trading from, let's say, mid-term to short term in the Eurobond side. I mean the aim of balancing the overall duration.
And in the corporate bond side, again, we have both local corporate and also foreign corporate or foreign banks, supranational bonds. The total share reached to 32%. And we are benefiting the high peak rates of those supranational bonds in times of, let's say, volatility increases and the FX rate increases due to the Turkish liquidity decrease in the offshore market, the return use of those supranational bonds that are very attractive, and we invest on those bonds. And also, we are an investor in the local corporate bond market. We have that, let's say, very high rated and also very reputable, let's say, corporate bonds in our portfolio. And in the deposit side, this 46% is not only pure Turkish lira deposits, we have also swap portfolio. And we can say that we are increasing our return yield.
You see starting from last year's third quarter, you see 11%, 14%, 16% and now 18%. And we think that in the last quarter, it will improve again. The overall annual return yield could exceed 17% and reach to 18% almost at the year-end. So last year's return yield will be around 19%, I think. And the quarterly financial income, you see we have around TRY 166 million. So for the last quarter, we can forecast around TRY 170 million, TRY 180 million financial income.
So that's from the financial investment portfolio. And on the next page, we have the income statement figures. The -- there is a weak underwriting result in the first 3 quarters. There is a very strong result in the financial income line. So we hope in the last quarter, it's strong in both underwriting result line and also financial income line. And the last quarter, net profit will be different than the first 3 quarters.
And on the next page, we have the balance sheet figures. We increased our assets under management to almost TRY 380 million. And for the year, we can foresee some TRY 4 billion or at the, let's say, optimistic scenario of TRY 4.1 billion assets under management at the event. And our total assets reached TRY 6 billion. And our ROE 30% at the end of third quarter.
And on the next page, the bridge between local books, TRY 331 million (sic) [ TRY 231 million ] net profit, and the IFRS books, TRY 193 million net profit. The main difference is coming from the discounting of outstanding claims. That is TRY 52 million in the first 3 quarters.
And then the risks and opportunities, let me quickly go over those one. Downsizing economy could limit the insurance growth, that's the risk. The underwriting profit margins could decrease mainly due to competition. This is the case for MTPL. The high interest rates are increasing the company's appetite in MTPL. So that's very critical in MTPL and also in MOD because the rational premium increase should be around 25% to 30%, while the realization in the market is only 15%. And uncertainty, high volatility in the market pricing and the currencies, the natural disasters due to climate change. I think this is ordinary issue from this year, and it will be priced. And possible churn in individual segments due to spending cut offs, you see there is a, let's say, real income or the real salaries are coming down in local market. So there could be some spending cutoffs in terms of individual segments. And the deferred effect of the producer price increase could be reflected on the consumer price inflation.
And increase in FX rates make stress on MOD claim cost. That could be an issue for the coming period. But as I said, let me remind again, we are adjusting our prices in MOD every month, almost every week, basically considering the FX level. And the decrease in interest rates is both a risk and also increase in interest rate is both an opportunity for Aksigorta. You see the majority of the total revenue, total income is coming from the financial side. So this is -- the interest rate -- level of interest rate is very critical for us. And high focus of industry on technology and analytics is an opportunity. Higher premiums and improved underwriting margin in the new products is an opportunity for us. We introduced cybersecurity product in the bank channel. And we overperformed our initial target in terms of both the premium production and also the profitability. So it's going very good. We can, let's say, expand the distribution of that cybersecurity in terms of agency channel and other channels also. That can be an opportunity.
Increasing efficiency, quality with remote working, accelerating digital transformation with the pandemic and pandemic is enabling the new product opportunity in health, and the interest to health insurance is increasing. So that could be other opportunities in terms of health products.
And increasing new vehicles and mortgage home sales, basically due to diminishing interest rates, which is released by the State Bank. So State Bank, they start -- they decreased their loan rates starting from yesterday, Friday as far as you know.
So that's all from our side. Thank you for listening, and we welcome your questions. Thank you.
[Operator Instructions] We've got a question from HSBC, John Zim, I think, its [ Morad ].
A couple of questions. First one is about MOD. You said that the pricing has been strong recently. Can you say that you cover all the risks in a 12-month horizon? I mean I know it all depends on the level of depreciation, but let me put it this way, have you revised your expectations for dollar PL so now that you have a more conservative approach, say, like normally maybe you assume 15% depreciation in line with the inflation of a couple of percentage points more. But now maybe 20%, 25%, and effected on pricing. Is that what you have been doing? Or you think you may still be behind the curve in that?
Secondly, about your -- regulatory business, and you've been suffering a lot in the last couple of quarters because of the full revaluation and so forth. And also, there was an issue about doctors' liability, I think. Can you also give an update on if there's any positive development on those fronts?
Thank you, [ Morad ]. Osman, may I answer? We can...
Please, go on, Ugur.
Yes. On the MOD side, we are -- as you know, insurance business is a little bit different than the rest of the industries. We first put a price and sell the product then wait for the costs to be insured. So from that perspective, it is one of the dangerous business in the world.
In order to make good cost estimates, we use past data and future data. But unfortunately, we have Turkish -- you are in Turkish, in Turkey, even making a guess, looking at the past and making an estimation, looking at the pictures is impossible in that respect.
From that perspective, any price we are cutting is not a proper guess from the -- we changed our pricing team after the March governor change. And we start to use artificial intelligence to select customers. And our artificial intelligence algorithms is a proven one that can select both frequency customers.
From that perspective, since April, the policies issued by Aksigorta is the lowest frequency customers in the market. But still, the estimation we use as in cost estimation used in the clarification may not cover the recent FX hike happened in the market.
From that perspective, we can have some possible losses on MOD in the coming days if that FX level continues. But on the other hand, the impact to the Aksigorta would be the lowest in the market. So we will be affected. And the best of the worst, I would say. Our position is the best of worse in the MOD market. And thanks to our FX position, we have been carrying an FX long position to cover possible underwriting losses in the MOD. And from that perspective, a fixed gain will be much more higher than the MOD losses for Aksigorta on the coming period. This is how we are calculating.
Regulatory business, you rightly mentioned. On the tool side, of course, 2020 and '21, let's say, break the -- all the past statistics due to pandemic. And the full ultimate loss ratio is fluctuating from quarter to quarter. But after normalization, most probably, we will have a more stable pool ultimate loss ratio. And since the pool prices has been increased by 1.5% each month, most probably, the full ultimate loss ratio will improve in the coming periods.
On demand MOD side, you are right. The existing loss ratio of the product is almost 750%. And we know that the whole insurance industry has been carrying us a huge amount of over reserves on that respect. According to our calculation, in Aksigorta, we should release 80%, 85% of our case estimates because we know that they are overly stated reserves.
In order to overcome that issue, now regulators has been in preparation of new legislation. And we have been close relationship with regulators. And in a couple of weeks, that regulation will be active. And most probably, we will be able to release our over-reserved med mal or reserve overload of the med mal case estimates. The possible amount would be around TRY 100 million reserve release on the coming couple of weeks. So I hope the -- that amount will be recognized the year-end financials, I would say. So Osman, those are my answer. Would you like to add more?
This way -- that's very clear in MOD side. In MOD and what they ask maybe we cannot afford an increase up around 30%. But in our expectations, the -- as the mid-term economical plan, let's say, estimate around 13% to 14% inflation, and we can some effort to, let's say, 15% to 20% increase in the FX side, but the higher increases could be again unaffordable from our side.
So -- and also according to the actual, our market share dropped from 12% to almost 8%, 8.5% in MOD side. So we already reduced our market share basically due to higher pricing in MOD. So we continue our debt space. We have around 8.5% to 9% in MOD side. So our focus will remain the profitable pricing in MOD side, considering the possible rate increase risk.
And in the regulation, again, we strongly believe that the government will announce the new provisioning communique, and that will give us the opportunity to release some reserves in the medical malpractice side. According to our most recent figures, we see some 75% to 80% dilution in medical malpractice reserves, and we have already TRY 120 million provisions, net provisions in the medical malpractice side. So that is around TRY 100 million upside potential, this is the pretax figures, in the medical malpractice drive.
Other than that, there are some risks in MTPL side. Basically, the minimum wage increase discussions are now that we are hearing a lot. So up to 20% we can effort by our current reserving approach, but higher than 20%. Each percentage point could bring -- could cost us TRY 8 million to TRY 9 million. So that's another risk issue from MTPL side.
And also another regulation issue, we were expecting the general conditions announcement from the regulator party. And remember, in the last year, the Supreme Court canceled the previous general conditions, which were, again, 1.8% technical interest margin. For the calculation of indemnity payment, the net present value of the indemnity payment. And then after that cancellation, the court are giving very, very different decisions. And nowadays, the trend is 0 technical interest rate. And if that trend continues and if, again, the new general conditions, we've not announced yet. And if it is late, the announcement of general conditions, it could increase our, let's say, resource in MTPL side. So that's another risk.
And according to again to most recent rumors, we hear that it will -- they are very close to announce the new general conditions in MTPL, which is written by 1.8% technical interest rate. So it will be good to hear from both general conditions in MTPL and also the reserve policy -- reserving policy reserve communique term for nonlife market.
All right. Speakers, I believe that is it for the audio questions. We can switch to the written questions if you would like. Can do that now. Thank you.
I can't see any written questions at the moment. So if you do not have any written questions, again, maybe we can take some audio questions, if anyone wants to raise any questions.
All right. I see something here, but that's fine.
Osman, I can see some questions. In the last few years, I've contract several problems online services. And that's the same take in technology and cybersecurity infrastructure with -- is how much.
First of all, thank you for that question. There is no organic or inorganic link between Akbank technology and Aksigorta technology. All our systems, core systems and cybersecurity infrastructure and technology we use, totally different than the Akbank. And our data centers has been located in different places. Our recovery site also has been located in different spaces. So from that perspective, we are not carrying such risk.
The second question, with ever increasing and a highly volatile FX rate, is it reasonable to expect more motor claims out of control due to increased costs? In addition to that, the government has increased maximum coverage amount for MTPL policies. As you mentioned, average premium has increased by only 15% on average, smaller than even the official inflation.
Question one, with such a small price increase on average policy, should we expect the profitability model deteriorate for the short and mid-term?
Question two, what prevents Aksigorta to increase average premium pricing rise significantly more than 15%?
First of all, MTPL and MOD are different animals and different, let's say, behaviors against those FX rate increases. That started the coverage increases, coverage increases only effects to the tail of the curve. So on the MTPL side, that may bring some less than 1% loss ratio increase. But on the other hand, on the MOD side, brings more recovery. So overall, total net impact of maximum coverage increase is beneficial for Aksigorta, I would say.
We -- particularly MTPL, as you know, it's accumulation. It accumulates investment -- asset under management. So from that perspective, we are not only considering underwriting margins. We are considering technical margin, which is addition to financial income possibility on top of underwriting margins. From that perspective, in such a high interest rate environment, sometimes it matters to issue policies less than the announced premiums. So we are making some good technical margins on both MTPL and MOD.
If -- in addition to technical interest result, some FX gain, MOD and MTPL is quite profitable products in terms of technical margin wise.
What prevents Aksigorta to increase average premium by significantly more than 15%?
And this is a free competitive market. One of our KPI is to keep the market share, to increase the market share. So -- and every day, we are in the trade-off with the market share and the profitability. So the art of that business is to keep or to increase the market share without deteriorating the profitability. That's why we are investing a lot of technology in artificial learning, artificial intelligence machine learning. And I'll add on the operational efficiency technology to be used on the operational efficiency, the RPA robots, so all the process improvements are, let's say, helping us to keep high market share with a decent profitability. But from time to time, in Turkey, the markets are fluctuating a lot. From that fluctuating, we are sometimes positively, sometimes negatively affected. But at the end of the day, when you look at some longer perspective, if you look at Aksigorta for the last 4, 5 years' performance, you can see easily that this company has been managing market share and profitability in a harmonic way. Thank you very much for your question.
All right, gentlemen, I don't see any more questions, and we seem to be out of audio questions. So if you'd like to conclude, that would be wonderful. Thank you.
Thanks, Ugur. I think that was 1 or 2, let's say, weakest quarter in the past 5 to 6 years. So we believe that it's in the -- it's ended. And starting from next quarter, last quarter of this year, we will again improve the operational results and the financial results as well.
So I hope we will welcome all our investors in our next earnings call meeting with far better results on our financials. Thank you for participating. Ugur?
Osman, you are right. On the other hand, definitely, we have to compare our results with the competitors with the market. I haven't seen the market quarter 3 results. I'm sure third quarter was quite a difficult quarter for all insurance industry. In insurance industry, this may happen from time to time. This is a cyclical business. In every 4 or 5 years, 5 or 6 years, the unexpected claims may happen. But this is the nature of the business. The most important thing to do your business in a proper way and always transform the business according to the changing threat. And I'm sure, Aksigorta is, from that perspective, is one of the best companies in Turkey, while performing on the -- and as well as transforming. It will give us for the future trend changes.
Thank you very much for all your participation. And I am sure we are going to present, announce much more better results for our investors on the coming quarters.
Thank you, gentlemen. Thank you, ladies and gentlemen. This concludes today's webcast call. And like the gentleman said, thank you for your participation. You may now disconnect.