Munich-based insurer Allianz has inked an agreement to acquire Turkish property and casualty underwriter Yap Kredi Sigorta including its life and pension subsidiary Yap Kredi Emeklilik, in a deal valued at TRY1.6bn (€684m).
Additionally, the acquirer has also signed a 15-year exclusive bancassurance agreement with the lender Yapi Kredi in Turkey, to distribute its various kinds of insurance products and services through the banks' 928 branches.
The acquisition of Turkish insurer is consistent with Allianz strategy to access growth through strategic relationships in high-growth insurance markets.
Allianz board of management member Oliver B?te said that the transaction will enable the company to boost its insurance operation in Turkey, one of Europe's key growth markets which is also an important bridge between Europe and Middle East/Central Asia.
Based on the terms of the deal, Allianz will acquire Yapi Kredi's 93.9% shareholding in Yapi Kredi Sigorta, while remaining 6.1% of Yapi Kredi Sigorta will be subject to a mandatory tender offer by Allianz soon after closing.
Further Yapi Kredi will hold a 20% stake in Yapi Kredi Emeklilik, the life and pension business which is a subsidiary of Yapi Kredi Sigorta, in a bid to support the long-term strategic partnership with Allianz.
The integration of Allianz Turkey with the Yapi Kredi insurance operations will create the number 1 non-life insurer, the number 2 pension provider and the number 3 life insurer in Turkey, claims the acquirer.
Subject to regulatory and competition board approvals, the transaction is likely to complete during the second half of 2013.
Serving 1.66 million customers with 628 employees, Allianz Turkey headquarters is located in Istanbul, and provides an array of products, an extensive network of contracted service providers and detailed policy coverage to many retail and corporate customers.
Set up in 1944, Yapi Kredi serves 6.5 million customers through its credit cards, individual banking, SME, corporate and commercial and private banking operations.
