Ageas enters the Turkish non-life insurance market through a long-term partnership with Sabanci
(Thomson Reuters ONE) -
Ageas enters the Turkish non-life insurance market through a long-term
partnership with Sabanci
Ageas today announced that it has signed an agreement with Haci Ömer Sabanci
Holding A.S. ("Sabanci"), Turkey's leading industrial and financial
conglomerate, to acquire a 31% stake in Aksigorta A.S. ("Aksigorta") through the
sale by Sabanci of half its stake in the company. Following the transaction,
Sabanci and Ageas will have equal shareholdings in Aksigorta. The remaining
shares (38%) will continue to be traded on the Istanbul Stock Exchange(([1])).
Aksigorta is the fourth largest non-life insurer in Turkey with gross written
premiums of YTL 886 million (EUR 415 million) in 2010 and a market share of 8%.
Motor insurance represents almost 50% of its premium income, followed by Fire
(18%) and Health (14%). The company combines an agency network with
bancassurance distribution through Akbank, which is controlled by Sabanci. As
part of the transaction, Aksigorta will enter into a 15 year exclusive agreement
with Akbank for the distribution of non-life products which can thereafter be
renewed for periods of 5 years. Akbank has a network of 913 branches serving 8
million customers. In 2010, the bank channel generated 13.4% of the gross
written premiums of Aksigorta.
Sabanci and Ageas share a common ambition to develop Aksigorta into a leader in
the Turkish non-life market. Ageas will contribute its in-depth knowledge of
non-life bancassurance and technical skills, its experience in managing agency
networks and its affinity expertise to develop distribution agreements with
other companies within the Sabanci Group.
Turkey has a fast growing population (75 million) and has experienced high
economic growth in recent years. With non-life insurance penetration just above
1% of GDP - compared with 3% in the European Union - Turkey is a very promising
country for the insurance sector.
As part of the transaction, Ageas will pay Sabanci a total consideration of USD
220 million (EUR 162 million) in cash upon completion. This implies a 53%
premium on Aksigorta's market capitalisation dd. 17 February 2011.
Sabanci and Ageas agreed through the Shareholders' Agreement to propose to the
General Shareholders' Meeting an annual contribution to the Sabanci Foundation
of 5% of pre-tax profits.
Ageas will under the terms of the contractual agreements be protected against
any adverse tax consequence relating to Aksigorta's 2010 spin-off transaction.
Sabanci Holding CEO Zafer Kurtul said: "After a rigorous selection process
spanning the last several months, we have concluded that Ageas, one of Europe's
leading insurance groups, is the best partner to help us realise our aim of
making Aksigorta the leading non-life insurance company in Turkey. We have set
new, demanding performance targets for Aksigorta and we are better positioned to
achieve them with Ageas as our partner. Our objective is to be a more customer-
centric company, while increasing both our market share and profitability. We
will continue to raise Aksigorta's service standards, improve productivity and
maximize the potential of our multiple distribution channels, all to levels of
international best-practice. We see, for example, scope for being much more
effective in sales through Akbank. The extensive bancassurance experience of
Ageas will be invaluable in this regard. I know that all our stakeholders - our
employees, agents, investors and business partners - will prosper from this
partnership."
Announcing the transaction, Bart De Smet, CEO of Ageas said: "I welcome this
partnership as an important step in the execution of our strategy as announced
at the end of 2009. Turkey is an exciting and fast-developing country with
attractive growth potential in non-life insurance and currently low insurance
penetration levels. I am very pleased that we can access this growth market
together with Sabanci, a well-reputed and leading group with extensive
experience in partnerships."
Sabanci Holding Strategy, Business Development and Insurance Group
President Hakan Akbas said "We are very pleased with the outcome of our diligent
process for a new partner. Together we will continue to deliver sustainable
economic value for our shareholders. Ageas and Sabanci are in complete alignment
over the future direction of the business. For example, consistent with Ageas'
global strategy to leverage strong brand names of its partners, we will continue
to operate under the Aksigorta brand. Our aim is to establish Aksigorta as
Turkey's best insurance company building on the company's 50-year history and
Ageas' 180-year track record. We will lead the way for sector consolidation to
market leadership in Turkey." Akbas also added that they intend to deliver
superior return on equity to our shareholders building on Ageas' expertise in
bancassurance, health insurance as well as alternative channels of distribution.
Steven Braekeveldt, CEO of Continental Europe added: "This transaction adds to
our existing and successful partnerships such as BNP Paribas in Belgium, Tesco
in the UK, Millenniumbcp in Portugal, UBI Banca in Italy and our Asian joint
ventures. The acquisition is a great opportunity for us to participate in the
expected growth of the Turkish insurance market. At the same time, Ageas will be
able to contribute its knowledge and experience in bancassurance to further
improve cross-selling through the Akbank network."
Aksigorta General Manager Ugur Gulen said: "We are delighted to shake hands with
Ageas, a truly customer-centric insurance provider. We have ambitious targets
for 2011 and beyond but with Ageas' operational expertise and international
track record in building successful partnerships, our organisation will
experience a new level dynamism."
The transaction is subject to regulatory approval and is expected to be
completed in the second quarter of 2011.
Sabanci Holding is the parent company of the Sabanci Group, Turkey's leading
industrial and financial conglomerate. The Sabanci Group companies are market
leaders in their respective sectors. Sabanci Holding's main business units
include financial services, energy, retail, cement, automotive, tire and tire
reinforcement materials. Listed on the Istanbul Stock Exchange (ISE), Sabanci
Holding has controlling interests in 11 companies also listed on the ISE.
Sabanci Group companies currently operate in 18 countries and market their
products in various regions in Europe, the Middle East, Asia, North Africa and
North and South America. Having extensive knowledge and experience in Turkey,
Sabanci Holding has led a drastic growth in its core businesses. Its
respectability, trademark image and strong joint ventures, further extended its
operations into the global market. Sabanci Holding's multinational business
partners include such prominent companies as Aviva, Bridgestone, Carrefour,
Citigroup, Dia, Heidelberg Cement, Hilton International, International Paper,
Mitsubishi Motor Co., Philip Morris, and Verbund.
In addition to coordination of finance, strategy and business development and
human resources functions, Sabanci Holding determines the Group's vision and
strategies, thus creating shareholder value through synergies across Group
companies.
In the first ten months of 2010, Sabanci Holding posted a consolidated net
profit of 1.2 billion TL.
Sabanci Holding declared sales of 14.3 billion TL in the first nine months of
2010, while its operating profit increased 11 percent to 3.069 billion TL in the
same period.
Sabanci Holding's total assets reached 120 billion 842 million TL and its equity
TL 23 billion 56 million on 30 September 2010.
Founded on April 28, 1960 with an administrative center located in Adana and its
business center located in Istanbul to serve companies within the Sabanci Group,
Aksigorta A.S. is today one of the leading insurance companies, with its
continuously rising market share in non-life branches, thanks to its nationwide
delivery and service network of 10 Regional Directorates, 2 Regional
Representative Offices, 838 Akbank branches and 1,447 independent agencies.
Aksigorta's mission is to become an insurance company which raises social
awareness on insurance, while being the first choice of insurer among its
current and potential customers; to be the most accessible insurer; to be
admired the most, and to create value for its stakeholders, thanks to its range
of delivery channels, product diversity and its qualified and wide service
network. At a recent survey conducted independently by TNS PIAR, Aksigorta
received the highest top-of-mind awareness. Aksigorta was also named "the most
prestigious" in a survey conducted by Synovate.
Ageas is an international insurance company with a heritage spanning more than
180 years. Ranked among the top 20 insurance companies in Europe, Ageas has
chosen to concentrate its business activities in Europe and Asia, which together
make up the largest share of the global insurance market. They are grouped
around four segments: Belgium, United Kingdom, Continental Europe and Asia. It
is an undisputed leader in the Belgian market for individual life and employee
benefits, as well as a leading non-life player, through AG Insurance.
Internationally Ageas has a strong presence in the UK, where it is the third
largest player in private car insurance. The company also has subsidiaries
in France, Germany and Hong Kong. Ageas has a track record in developing
partnerships with strong financial institutions and key distributors in
different markets around the world and successfully operates partnerships in
Luxembourg, Italy, Portugal, China, Malaysia, India and Thailand. Ageas employs
more than 11,000 people and has annual inflows of almost EUR 16 billion.
--------------------------------------------------------------------------------
[1] ISIN code of Aksigorta: TRAAKGRT9105
Bloomberg ticker: AKGRT TI
Reuters ticker: AKBNK.IS
PDF version press release:
http://hugin.info/134212/R/1490408/426055.pdf
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Source: Ageas via Thomson Reuters ONE
[HUG#1490408]
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Datum: 18.02.2011 - 08:40 Uhr
Sprache: Deutsch
News-ID 51677
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