Profitable if you have a bank distribution channel

I had the opportunity to review the 2012 first quarter financial reports of Turkish Insurance Sector.

 …

There are 60 operational life and non-life insurance companies in Turkey. Of these:

  •  35 companies operate in non-life,
  •   9 companies operate in life, and,
  •  16 companies operate in life + pension LoB’s.

 …

The overall sector has made a profit as at end of the first quarter (as bottom line figure). Of the 60 operating companies, 34 have recorded a profit in their balance sheets.

 …

When we look at the total bottom line figures;

  •  The ratio of net profit to total equity in non-life companies: 4.3 %0 (four point three per thousand)
  •  The ratio of net profit to total equity in life companies: 3% (three percent)
  •  The ratio of net profit to total equity in life + non-life companies: 1.6% (one point six pecent)

 …

I tried to figure out what the common characteristics of the profitable companies could be. As far as I know, 20 of the 34 profit-making companies own bank distribution channels. The companies which recorded a first quarter profit and turned the overall sector profitability to positive, other than a few exceptions, are these companies.

Has owning a bank distribution channel become a must for the sector companies to be profitable?

Are the other existing distribution channels too expensive?

Should the sector search for other alternative distribution channels to make profit?

Bir cevap yazın

E-posta hesabınız yayımlanmayacak.