The Turkish insurance industry is in its most secure period in terms of capital adequacy, liquidity, risk management and similar indicators, as Mr Davut Mentes, president of the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) said, Middle East Insurance Review writes.

"Our sector is in a safer environment than ever before in terms of risk management and the capital adequacy of our companies. As of the last five years, it has entered its most secure period in terms of capital adequacy, liquidity and similar matters. We believe it will be even better", Mr Mentes explained.

According to him, the insurance sector's return on assets is around 6% and return on equity is around 50%. He said that the insurance industry is in a very good position compared to banks.

"This is a positive development because it delivers real profitability, even when adjusted for inflation. Our sector has positively differentiated itself from banking over the last two or three years. We're also doing quite well in terms of liquidity and financial leverage, which is around ‘1’. Generally speaking, things are improving in the insurance sector”, Mr Mentes added. “One of the most important criteria in the finance sector is capital adequacy, which is currently at historic highs”, he emphasized.

“Of course, even though the averages are at historic highs, we have to focus on those at the bottom. There's also significant improvement at the bottom. Very few companies are below our desired levels. We hope there will be improvement in those as well", the president of SEDDK said.