Zurich Financial Services Group (Zurich) announced today that its Turkish subsidiary Zurich Sigorta A.S. (Zurich Sigorta) has signed an agreement with Fortis Bank A.S. (Fortis) for the exclusive distribution of general insurance products through Fortis in Turkey.
This agreement is in anticipation of the planned merger between Fortis and TEB Bank, Zurich Sigorta’s existing general insurance bancassurance partner in Turkey. The price for this transaction amounts to TRY 40 million (approximately USD 26 million) initially, plus an earn-out component.
Through this exclusive distribution agreement with Fortis, which will become effective January 1, 2011, Zurich Sigorta will be in a position to extend its product and services proposition to Fortis’ customers and become the third largest general insurance bancassurance player1 in the fast growing Turkish insurance market.
Lutz Bauer, Zurich Sigorta’s Managing Director, remarked: “This partnership is a further proof point for our stated growth strategy and demonstrates our commitment to the Turkish insurance market. It marks an important step on our way to become one of the leading general insurance bancassurance players in this attractive market.”