Merge is the word for Turkey’s insurance industry
Posted by meb at March 22nd, 2007
Mergers and acquisitions in Turkey’s insurance world are continuing at full speed. Brisk trade continues after Spanish Mapfre’s takeover of Genel Sigorta and Austrian TBIH Financial Services’ buyout of Ray Sigorta.
Dutch insurance company Euroko B.V., which does business exceeding 14 billion euros and serving approximately 7 million customers, purchased 80 percent of Garanti Sigorta A.Ş. and 15 percent of Garanti Emeklilik ve Hayat A.Ş., a pension fund. Another merger includes the Pension fund Ak Emeklilik, a subsidiary of Sabancı Holding, and Aviva Hayat ve Emeklilik. According to the press releases,Euroko B.V. purchased 80 percent of Garanti Sigorta for 365 million euros and 15 percent of Garanti Emeklilik for 100 million euros.
Euroko will have an option to buy 35 percent more of Garanti Emeklilik. The acquisition is expected to be completed by the end of June depending on approvals from the Treasury Undersecretariat and Competition Board. Euroko B.V. CEO Maarten Dijkshoorn said they were excited by the deal, which will allow them to keep growing in Europe with a distinguished company and experienced staff. He said they had moved a step closer to being Europe’s insurance leader with the Garanti acquisition. Garanti Bank General Manager Ergun Özen said they were closely following the growing opportunities in both domestic and foreign markets. He said with the partnership they would transfer Europe’s product diversity to Turkey.
Ak Emeklilik and Aviva, which are worth $76 billion and $712 billion respectively, made an agreement to establish a new company. After the merger, the marketing power of Aviva in direct sales will be combined with the advantageous position of Ak Emeklilik in sales through the banking system, according to the release.
The merger will create a leader in the private pension sector, with funds worth YTL 700 million, 25 percent of the market share and will be second in the life insurance sector with a 14 percent market share and YTL 200 million premium volumes. The venture will serve 900,000 customers.
Sabancı Holding Financial Services Head Akın Kozanoğlu said they finalized their five-month search by establishing a joint venture with Aviva and said they can define this merger with the formula 2+2=5. The venture will benefit from the experiences and brand power of Sabancı Holding in Turkey and international experience of Aviva. Tidjane Thiam, president of Aviva Europe, said they expected Turkey’s insurance market to continue growing. Meanwhile TBIH Financial Services, which bought 58.2 percent of Ray Sigorta, will use its call option and increase its shares in the company by collecting shares from the other stock owners.
source: Today’s Zaman
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