The total technical profits in the life insurance branch in Türkiye increased by 91% in the first three months of this year to over TRY6.4bn ($164m), compared to the corresponding quarter last year, according to data published by the Insurance Association of Türkiye (TSB).
In the non-life branch, in January-March 2025, total technical profits increased by 30.6% year on year to TRY26.8bn.
Total premium production for the overall insurance market increased by 52.2% in 1Q2025 compared to the corresponding quarter of 2024, reaching TRY304.2bn. Premium production increased by 49.5% y-o-y in the non-life branch to TRY266.6bn and surged by 74.7% in the life branch to TRY37.6bn. The contribution of the life branch to total premiums was 12.4%.
For perspective, Türkiye's annual inflation rate dropped to 38.1% in March, down from February’s 39.1% and 42.1%, according to the Turkish Statistical Institute.
Profitability
The insurance industry posted a combined net profit of TRY34bn in the first quarter results of 2025. Of this total, life business generated net profits of TRY11-12bn, representing 35.3% of total net profit.
Assessing the insurance market's performance in the first quarter of 2025, TSB chairman Ugur Gulen, said that life business generally takes 10% of total premium production. In terms of profitability, life's share is a little higher.
Mr Gulen, said, “I think the first quarter of 2025 was quite good for the insurance sector in terms of both premium size, technical profitability, asset size and equity profitability.”
He added, "In the first quarter of this year, equity capital increased from TRY173bn in 1Q2024 to TRY282bn in 1Q2025. Many insurance companies increased their equity capital. He added, “The equity capital of the insurance sector must be strong. There must be a solid capital structure against possible major disasters. With the steps taken by the Insurance and Private Pension Regulation and Supervision Authority (SEDDK) and the positive responses given by the sector, the equity capital of the sector increased by 63%."