Aviva, Aksigorta and Akbank sign memorandum of understanding to form a leading Turkish life and pensions business and establish a bancassurance agreement with Akbank.
Aviva, Aksigorta and Akbank sign memorandum of understanding to form a leading Turkish life and pensions business and establish a bancassurance agreement with Akbank.
Aviva plc (“Aviva”) is pleased to announce that it has signed a Memorandum of Understanding (“MOU”) with Aksigorta AŞ (“Aksigorta”) and Akbank TAŞ (“Akbank”) to form a new, leading Turkish life and pensions business. In the proposed transaction Aviva’s Turkish life and pensions business, Aviva Hayat ve Emeklilik AŞ (“Aviva HE”), would be merged with Aksigorta’s life and pensions business, Ak Emeklilik AŞ (“Ak E”).
Aviva and Aksigorta would hold equal shareholdings in, and would jointly manage, the new company, which would benefit from a long-term and exclusive agreement to offer life insurance and pension products to Akbank’s 5.9 million retail customers through its 687 branches.
This transaction would bring together Aviva HE’s leading direct sales force business, and Ak E’s leading position in bancassurance. The new company would be a leader in Turkey, with the number one position in pensions and the number two position in life insurance.
Aviva has high expectations for the further development of the Turkish life and pensions market. The combination of Turkey’s current low insurance penetration rates and the potential for strong economic growth are expected to create attractive opportunities for profitable growth.
Tidjane Thiam, chief executive, Aviva Europe, said: “I am delighted we have reached this agreement with Aksigorta and Akbank - Aviva is committed to developing its business in Turkey and this merger will bring attractive growth opportunities. By coming together, Aviva, Aksigorta and Akbank would create a clear leader with unique multi-channel capabilities in one of the most attractive life and pensions markets. Aviva will be able to leverage its international bancassurance capabilities to assist in the successful development of the business.”
Akın Kozanoğlu, chairman of Aksigorta and president of Sabancı Holding Financial Services Group, said: “We are very glad that our search for a strategic partnership has concluded with the selection of Aviva, a globally distinguished company. The combination of our and Aviva’s operations in Turkey will create a leading life and pensions company in Turkey. I believe that this partnership, where 2+2=5, exemplifies Sabancı Holding’s value creation philosophy. The new company which will be established after the merger will fully utilise Aviva’s global know-how and Sabancı Group’s local expertise.”
Aviva, Aksigorta and Akbank have entered into exclusive discussions with a view to announcing the signing of definitive documentation later this year. Completion of the transaction would be subject to regulatory and other approvals.
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Notes to editors:
Aviva
- Aviva is one of the leading providers of life and pensions in Europe with substantial positions in other markets around the world, making it the world’s fifth largest insurance group based on gross worldwide premiums at 31 December 2005
- Aviva’s principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of Ł41.5 billion and assets under management of Ł364 billion at 31 December 2006
- Aviva’s Turkish life and pensions business, Aviva HE, had pension assets under management of Ł106 million at 31 December 2006 and life gross written premiums of Ł49 million in 2006.
- Aksigorta is Turkey’s fourth largest non-life insurer by market share based on premiums of Ł241 million in 2006
- Hacı Ömer Sabancı Holding AŞ, one of Turkey’s leading financial and industrial conglomerates, owns approximately 62% of Aksigorta
- Aksigorta’s life insurance and pensions subsidiary, Ak Emeklilik, had pension assets under management of Ł145 million at 31 December 2006 and life gross written premiums of Ł23 million in 2006.
- Akbank is Turkey's largest company by market capitalisation and its most profitable private bank. Akbank offers a wide range of retail, commercial, corporate and private banking services. Akbank has an extensive distribution network including 687 branches and alternative delivery channels.
- Hacı Ömer Sabancı Holding AŞ and its subsidiaries own approximately 39% of Akbank. In January 2007, Citigroup acquired a 20% stake in Akbank for $3.1 billion.
- This agreement does not include Aviva Sigorta AŞ, Aviva’s non-life business in Turkey or Aksigorta’s non-life operations.
- Market positions for the new company were based on 31 December 2006 data provided by:
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- The Pensions Monitoring Centre (Turkey) for pensions (assets under management)
- The Association of Insurance and Reinsurance Companies of Turkey for life business (gross written premiums).