Allianz raises stake in Turkey's growing insurance mkt

Insurer Allianz SE says it will lift its stakes in a pair of joint ventures with Turkey’s Koc Holding AS, giving it majority control of the two companies.

Allianz agreed to buy 47 percent of Koc Allianz Sigorta from Koc Holding AS and related companies for €248 million ($393 million) as well as 49 percent of life-insurance provider Koc Allianz Hayat & Emeklilik for €125.2 million ($184.2 million), Koc Holding quoted by Bloomberg said in an e-mailed statement today. Allianz will increase its stake in Koc Allianz Sigorta from 37.1 percent to 84.2 percent at the end of the deal.

Turkey “has a relatively young demographic profile and still low insurance coverage,” Allianz said in an e-mailed statement. “The agreement strengthens our long-term commitment to the Turkish market, where we see a high potential for future growth,” said Enrico Cucchiani, an Allianz management board member, reported Bloomberg. 

The German company and insurers including France's Groupama SA and Holland's Eureko BV have bought units in Turkey in the last couple of years to tap rising incomes and increasing interest in financial-services products. Turkey's economy grew 4.5 percent last year.

Turkey's insurance industry has attracted investment as companies seeking to tap economic growth that has averaged about 7 percent a year since 2002, helping to double per-capita income to more than $9,000.

Turkish insurance companies including Aksigorta AS rose in Istanbul trading after Allianz's agreement to buy stakes. Aksigorta AS, Turkey's biggest insurer by market value, rose as much as 6.7 percent to 6.35 new Turkish liras in Istanbul on Monday, the steepest gain since Feb. 18.