Liberty Mutual Buying Stake in Turkey’s Seker Sigorta

June 22, 2006

The Boston-based Liberty Mutual Group plans to enter the Turkish market with the purchase of a majority stake in Seker Sigorta A.S. Liberty Mutual signed an agreement on June 16 with Sert Holding A.S. for the acquisition of a majority of Seker Sigorta’s shares. The transaction is subject to regulatory approval and is expected to close by the fourth quarter of this year. Terms were not disclosed.

Liberty Mutual’s bulletin described the Turkish Company as “a mid-sized insurer that offers a full complement of property-casualty insurance products, with a concentration in personal lines insurance since 1954. It has a nationwide distribution capability, mainly through agents, as well as its strong institutional relationship with Seker Bank and the Turkish sugar industry.”

Edmund F. Kelly, Liberty Mutual’s Chairman, President and CEO commented: “As Turkey’s strong economy continues to grow, its expanding middle class is increasingly looking for ways to protect its personal property and assets. Seker Sigorta offers us an excellent opportunity to enter the rapidly growing Turkish insurance market and expand our international presence in line with our overall global strategy of targeting strong companies that are successful in local markets.”

Liberty Mutual also explained that its “international operations are managed through its strategic business unit, Liberty International. Liberty International provides insurance products and services through two distinct approaches. The first is through locally domiciled insurance companies based around the world, which provide mostly personal insurance products and services. The second approach is through Liberty International Underwriters (LIU), which provides specialty commercial lines of insurance worldwide, including casualty, specialty casualty, marine energy, engineering and reinsurance.

“Liberty International’s operations reported approximately $3.9 billion in revenue in 2005. Liberty International has 7,000 employees and operations in the U.S. and 19 countries – Argentina, Australia, Brazil, Canada, Chile, China, Colombia, France, Germany, Hong Kong, Ireland, Portugal, Singapore, Spain, Switzerland, Thailand, United Kingdom, Venezuela and Vietnam.

“The new Turkish acquisition will complement Liberty International’s European region where net written premium is over US$1 billion. In Europe, Liberty International’s locally domiciled insurance companies have pursued a multi-channel distribution strategy, with principal operations in Spain and Portugal. Liberty International also operates the largest insurance company in Venezuela and is the largest non-life insurer in Colombia. It is also the third-largest managing agent in Lloyds and the first foreign insurer to be approved in Western China.”

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