Analysis of Private Pension Companies in Turkey by EATWOS

Abstract

One problem that nations face in the progress of their economies is individuals not knowing how to save. Private Pension System (PPS) is one way to help a nation’s economy by encouraging individuals to save on voluntary basis. There are many companies in Turkey operating in PPS, which are called Private Pension Companies (PPC). The more funds they collect, the longer these companies can sustain and the more they can contribute to the economy. Therefore PPCs need to pursue ways to improve themselves in order to keep operating with a high performance.The aim of this study is to demonstrate the performances of 19 PPCs operating in Turkey between 2010 and 2014. The performances of the PPCs were analyzed by applying Efficiency Analysis Technique with Output Satisficing (EATWOS) in 3 different ways. The inputs used in the study are “number of staff employed”, “total assets”, and “total shareholders' equity” while the criteria outputs have been determined as “premium production” and “pension contracts”. The first application of the method revealed that ANADOLU, VAKIF and ZIRAAT were the top 3 companies working with high efficiency. The second application resulted that ALLIANZ, ANADOLU, AVIVASA, CIGNA, GARANTI, VAKIF and ZIRAAT showed better performances than the rest. The third application demonstrated that ALLIANZ, AVIVASA, GARANTI, and VAKIF were the most efficient companies

Keywords: Private Pension, Efficiency Analysis, EATWOS