S&P Global Ratings Analysis on Turkey's Property and Casualty Insurance
According to a report by international rating agency S&P, the return on equity in Turkey's property and casualty insurance sector has exceeded 40 percent over the past three years.
Based on an analysis published by international rating agency S&P Global Ratings, the return on equity in Turkey's property and casualty insurance market has exceeded 40 percent over the last 3 years.
Trend in return on equity
In an analysis prepared by international rating agency S&P Global Ratings, it was announced that the Turkish property and casualty insurance market has achieved a return on equity of over 40 percent for the past three years.
Future profitability expectations
Over the next two-year period, as inflation declines and banks ease interest rates, the return on equity is projected to remain above 30 percent.
Drivers of strong revenue growth
The insurance market's robust revenue growth between 2023 and 2025 outpaced the inflation rate. This growth was driven by the new business volume generated following the February 2023 earthquakes.
Inflation and foreign currency products
Turkish insurance companies preserve the real value of their products by offering inflation-indexed and foreign currency-denominated policies. This provides protection against high inflation and currency depreciation.
Premium growth and disinflation process
With Turkey entering a disinflationary period, nominal premium growth is projected to decline to the 20 to 25 percent range in 2026-2027, while inflation is expected to drop to 19 percent in 2027.