Zurich Financial Services Group has signed an agreement to acquire 100 percent of Turkish general insurer TEB Sigorta A.S. from TEB Mali Yatirimlar A.S. Zurich said the newly acquired Company would “maintain distribution arrangements with various TEB Mali subsidiaries for the distribution of general insurance products on an exclusive basis.”
Zurich noted: “TEB Sigorta is one of the fastest growing and most profitable general insurance companies in Turkey with a strong focus on banc-assurance. Premiums collected in 2007 were approximately $130 million (YTL 155 million). It currently distributes its products through an extensive network of regional offices, agents, brokers and financial institutions offering access to more than 600 points-of-sale. Zurich considers Turkey an attractive growth market. Between 2003 and 2006 the Turkish insurance sector grew at a cumulated average growth rate (CAGR) of 24 percent while the insurance penetration is considerably lower compared to other Central and Eastern European countries.”
Annette Court, Zurich’s CEO, Europe General Insurance, explained that the acquisition is “in line with our profitable growth strategy,” and “represents another important step as we enter the attractive Turkish market. It allows Zurich to combine the strong distribution capacity of TEB Group with Zurich’s considerable strengths and efficient pan-European operating platform.”
The acquisition will be managed from Zurich’s Central and Eastern Europe (CEE) business unit in Vienna which includes the Group’s existing Austrian and Russian operations. Subject to the approval of the relevant insurance regulatory and antitrust authorities, the transaction is expected to close in the first quarter of 2008.
Source: Zurich – www.zurich.com
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