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[BUSINESS] · Türkiye · 3 sources

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Part of situation: Turkish insurance sector performance (2 clusters)

Turkey insurance sector expected to maintain strong profitability

Turkish insurance sector S&P Global Ratings property and casualty insurance return on equity financial resilience

S&P Global Ratings projects that return on equity in Turkey's property and casualty insurance market will remain strong, staying above 30% for the next two years. This follows a three-year period where returns consistently exceeded 40%.

Despite facing challenges such as high inflation, currency volatility, and the aftermath of the February 2023 earthquakes, the sector has demonstrated financial resilience. The analysis notes that Turkish insurers have maintained value by offering inflation-indexed and foreign currency-denominated policies.

While the country risk for Turkey is rated as 'High', the sector risk is considered 'Moderately Low'. Consequently, the total IICRA assessment for the non-life insurance sector has moved to 'Moderately High Risk'. Looking ahead, nominal premium growth is expected to slow to between 20% and 25% during 2026-2027 as inflation is projected to reach 19% by 2027.

Entities

S&P Global Ratings · Sachin Sahni · Turkey

Claims

What the coverage asserts, and how many sources carry each claim.

  • [○ 1 SOURCE] Turkey's country risk is rated as 'High', while the sector risk is 'Moderately Low'. www.dunya.com
  • [● 2 SOURCES] Inflation in Turkey is forecasted to drop to 19% in 2027. www.cnbce.com · www.yenisafak.com
  • [● 2 SOURCES] Return on equity in the property and casualty insurance market has consistently exceeded 40% over the last three years. www.cnbce.com · www.yenisafak.com
  • [● 2 SOURCES] Nominal premium growth is projected to decline to 20-25% during the 2026-2027 period. www.cnbce.com · www.yenisafak.com
  • [○ 1 SOURCE] The total IICRA assessment for the non-life insurance sector has risen to 'Moderately High Risk'. www.dunya.com
  • [● 2 SOURCES] S&P Global Ratings expects return on equity in Turkey's property and casualty insurance market to remain strong at over 30% for the next two years. www.cnbce.com · www.yenisafak.com

Sources

S&P'den Türk sigorta sektörü değerlendirmesi: Dikkat çeken "yüzde 30" tahmini [www.cnbce.com]
S&P’den Türk sigorta sektörüne dayanıklılık notu: Risk profili iyileşti, sıra teknik kârlılıkta - Dünya Gazetesi [www.dunya.com]
S&P’den Türkiye için dikkat çeken sigorta tahmini: Karlılık yüksek seyredecek | Türkiye Ekonomisi Haberleri [www.yenisafak.com]