Allianz and Yap Kredi have reached an agreement that provides, among other things, that Allianz will acquire Yap Kredi Sigorta, the property and casualty insurer, including its subsidiary Yap Kredi Emeklilik, the life and pension business.
Yap Kredi Sigorta is the fifth largest property and casualty insurance company in Turkey with total premiums of EUR 531 million. Yap Kredi Emeklilik holds a top four position in life insurance with premiums of EUR 90 million. The combination of Allianz Turkey with the Yap Kredi insurance operations will create the number one non-life insurer, the number two pensions provider, and the number three life insurer in Turkey.
Under the terms of the agreed transaction, Allianz will acquire Yap Kredi's 93.9 percent shareholding in Yap Kredi Sigorta for a total net consideration to Yap Kredi of EUR 684 million. The remaining 6.1 percent of Yap Kredi Sigorta is listed on the Istanbul Stock Exchange and will be subject to a mandatory tender offer by Allianz shortly after closing. Yap Kredi will retain a 20 percent stake in Yap Kredi Emeklilik, the life and pension business which is a subsidiary of Yap Kredi Sigorta.
“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 Oliver Bäte, member of the board of management of Allianz SE. “The transaction with Yap Kredi 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/Central Asia. This transaction fits perfectly into Allianz's strategy to use bolt-on acquisitions to strengthen its position in growth markets.”
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].