Ak Emeklilik and Aviva Turkey merge
Posted by meb at June 9th, 2007
Britain’s largest insurer Aviva and Sabanci Holding have agreed to merge their Turkish life and pensions businesses to create the country’s largest pensions provider with a 25 percent market share.Total annual pension contributions and life premiums for the venture are expected to top £500 million ($997 million) after five years, with total assets under management of £2 billion, the two sides said on Friday. The joint venture will also enter into an exclusive long-term bank assurance agreement with Akbank, in which Sabanci is a key shareholder, adding distribution through Turkey’s second largest privately-owned bank to Aviva’s existing direct sales force. “We identified Turkey a few years ago as a key growth market in Europe — there is a large population, economic growth, and the under-penetration of insurance,” said Tidjane Thiam, head of Aviva’s European operations outside the UK. Turkey is attracting foreign investors with strong economic growth, a fast growing population of 74 million and increasing wealth. Reforms to the social security system and a new law allowing mortgages are expected to boost the industry. Foreign players already present in Turkey include France’s Groupama and AXA.
source: Today’s Zaman
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