27 March 2013 Insurance

Allianz boosts its presence in Turkey

German insurer Allianz has entered into a 15-year exclusive distribution agreement with Turkish insurer Yapı Kredi and to also acquire Yapı Kredi Sigorta, the property/casualty insurer, including its subsidiary Yapı Kredi Emeklilik, the life and pension business.

Yapı Kredi Sigorta is the fifth largest property/casualty insurance company in Turkey with total premiums of €531 million. Yapı Kredi Emeklilik holds a top-four position in life insurance with premiums of €90 million, with a pensions business ranked third in its market with assets under management of €1.5 billion. The combination of Allianz Turkey with the Yapı Kredi insurance operations will create the number biggest non-life insurer, the second biggest pensions provider and the third biggest insurer in Turkey, a market in which Allianz has a 90-year history.

Under the terms of the transaction, Allianz will acquire Yapı Kredi’s 93.9 percent shareholding in Yapı Kredi Sigorta for a total net consideration to Yapı Kredi of €684 million. The remaining 6.1 percent of Yapı Kredi Sigorta is listed on the Istanbul Stock Exchange and will be subject to a mandatory tender offer by Allianz shortly after closing.

Yapı Kredi will retain a 20 percent stake in Yapı Kredi Emeklilik, the life and pension business, which is a subsidiary of Yapı Kredi Sigorta, to support the long-term strategic partnership with Allianz.

An important part of the agreement between Allianz and Yapı Kredi is a 15-year bancassurance agreement, which will provide Allianz exclusive access to the 5th largest banking network in Turkey with 928 branches and 6.5 million customers.

“Turkey is one of the fastest growing insurance markets worldwide, supported by a robust economic outlook and a large, young population of 75 million people,” said Oliver Bäte, member of the board of management of Allianz SE. “The transaction with Yapı Kredi is a unique opportunity to move into a market-leading position in one of Europe’s key growth markets which is also an important bridge between Europe and Middle East/Central Asia. This transaction fits perfectly into Allianz’s strategy to use bolt-on acquisitions to strengthen its position in growth markets.”

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