FRANKFURT: German insurance giant Allianz said Wednesday it has agreed to buy Turkish property and casualty insurer YapiKrediSigorta in a bid to become the biggest insurance group in Turkey.
Allianz said in a statement it will acquire a 93.9-percent stake in YapiKrediSigorta for 684 million euros ($879 million).
The acquisition is part of a long-term cooperation agreement with Turkey's fourth-biggest private bank YapiKredi, the German group explained.
The deal will also cover the life and pension subsidiary YapiKrediEmeklikik.
YapiKrediSigorta is the fifth largest property and casualty insurance company in Turkey with total premiums of 531 million euros and YapiKrediEmeklilik holds a top four position in life insurance with premiums of 90 million euros, the statement said.
"The combination of Allianz Turkey with the YapiKredi insurance operations will create the number one non-life insurer, the number two pensions provider and the number three life insurer in Turkey," Allianz said.
"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 Allianz board member Oliver Baete.
"The transaction with YapiKredi 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 and Central Asia," Baete said.
Under the terms of the deal, Allianz will make a mandatory tender offer for the remaining 6.1 percent of YapiKrediSigorta that is listed on the Istanbul Stock Exchange.
YapiKredi will retain a 20-percent stake in YapiKrediEmeklilik, Allianz added. (AFP)
