...Non-Life Profits Improve, Life Insurers Well Capitalised Non-life profitability improved in 2013, with better underwriting results, particularly in motor and health insurance, and stronger investment returns. Premium rates hardened sharply by 30%- 50% in 2012-2013 and claims frequency dropped, leading to increased profits in 2013. In the life insurance market, strong premium growth was buoyed by strong growth in credit in Turkey, but Fitch Ratings believes that this will be tempered in 2014 as some adverse effects from economic readjustment could feed into insurers' results. However, regulatory solvency is very strong at 399% (end-2012), and Fitch considers the life market to have sufficient capital to withstand shocks in the near term. Strong Premium Growth Continues The Turkish insurance market is growing strongly, driven by economic growth, favourable demographics, urbanisation and an expanding middle class. In 2008-2012, non-life and life gross written premiums (GWP) increased at average...
