AXA to Purchase Turkish Oyak
Europe's second-biggest insurer, AXA, has agreed to buy local partner Oyak out of its Turkish insurance joint venture for $525 million, Oyak said on Wednesday, the latest deal in the fast-growing Turkish sector.
The joint venture, AXA OYAK Holding, controls AXA OYAK Insurance and AXA OYAK Life Insurance. AXA bought an additional 50 percent stake in the holding company from Oyak, the army pension fund whose interests range from steel to a securities house.
Oyak said in a statement the deal was expected to be completed at the start of spring.
The highly fragmented insurance sector in Turkey, a European Union candidate, is seen as attractive because of low penetration rates. Foreign firms that have moved into the sector include Spain's Mapfre and Britain's Aviva.
Non-life premiums grew 17 percent in the first nine months of last year, according to data from industry association TSRSB, far outpacing growth forecasts around 5 percent for the economy overall.
Published on February 6, 2008
Are you retail Agent Looking for a Quote?