Aksigorta earnings: Q3 profit rises despite cost pressure

Aksigorta earnings for the third quarter of 2026 showed net profit rising 17% from the previous quarter to TRY870 million. Improving compulsory motor insurance performance supported the result, but reserve charges and restructuring costs weighed on underwriting profitability as price competition remained intense.

Key Takeaways

• Q3 technical profit reached TRY2 billion, supporting sequential net profit growth.
• The combined ratio worsened to 128%, with management identifying reserve and restructuring effects.
• Management expects restructuring to continue, while the financial impact of Istanbul flooding remains unquantified.

Aksigorta earnings show stronger core insurance performance

In its October 23, 2026 earnings discussion, management said quarterly technical profit reached TRY2 billion, while financial income increased only 2% from the preceding quarter. The company attributed the improvement in net profit to stronger core insurance operations rather than a substantial increase in investment income.

The company lists its third-quarter presentation and commentary alongside earlier 2026 earnings materials, providing context for its quarterly disclosures. Management’s Q3 discussion highlighted a decline in the motor third-party liability loss ratio from 146% to 139%, which it attributed to disciplined underwriting and pricing.

Motor own-damage insurance faced a different trend. Management said its loss ratio increased as intense competition kept average premiums flat despite higher business volumes. Stronger sales therefore did not translate uniformly into better underwriting margins.

Reserve charges and restructuring weaken the combined ratio

The combined ratio increased to 128% from 121%. This measure tracks claims and expenses relative to premiums, with a lower figure indicating better underwriting performance.

Management said the ratio would have been 122% excluding the unexpired risk reserve impact and restructuring costs, broadly similar to the previous year. That adjusted assessment is distinct from the reported 128% result.

The unexpired risk reserve impact was approximately TRY516 million, or TRY116 million after tax, which management linked to increased unearned premiums in the growing motor business. Restructuring costs added TRY248 million after tax.

General and administrative expenses increased 42% year on year, which the company attributed to transformation investments. Management said restructuring actions would continue in coming quarters, supported by technology and artificial intelligence intended to reduce headcount without weakening technical capabilities.

Competitive pricing and flood claims cloud the outlook

Management continued to plan for tight competition in motor and corporate insurance, describing the fourth quarter as generally highly competitive. It expected more rational pricing as interest rates declined and margins tightened, but that remained an expectation rather than an established market change.

The company also said claims from severe Istanbul flooding had begun arriving. Assessments involving loss adjusters, experts and reinsurers were ongoing, and management said it was too early to quantify the effect on fourth-quarter 2026 results.

Next milestone

Management said it would provide further information on flood losses as claims develop and the financial impact becomes clearer.

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