...Non-Life Back in Profit: The Turkish non-life insurance sector made a profit of TRY768m in 2013 following a loss of TRY658m in 2012 that was almost solely due to reserve strengthening by AXA Sigorta SA, which reported a technical loss of TRY600m. The improved profitability in 2013 was also driven by better underwriting results, particularly in motor and health insurance, and stronger investment returns. However, there could be more reserve strengthening in coming years. Life Profits Grow Steadily: The Turkish life insurance market had average annual profit growth of 13% in 2008-2013 and profit of TRY462m in 2013. Strong premium growth has been 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...
