INSURING TOMORROW WITH CONFIDENCE
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Asset management, property management, employee savings, banking
27 June 2008
Groupama has acquired the entire capital of the Turkish insurance companies Güven Sigorta and Güven Hayat from the Central Union of Agricultural Credit Cooperatives for €180 million.
Güven Sigorta, which was created in 1924, has a 2.4% market share in damage insurance and ranks 13th on this sector. Güven Hayat, its life insurance subsidiary created in 1973, is Turkey’s fifteenth largest life insurance company with a 1.2% market share. The two companies posted revenues of €115 million and €13 million in 2007 respectively.
Güven Sigorta is also the largest agricultural insurer in Turkey, where the market is particularly buoyant, having soared by 250% since 2002. The market also has a lot of potential since the agricultural sector accounts for 30% of the Turkish working population.
It must be recalled that Groupama already has a strong foothold in the Turkish market after acquiring Basak Sigorta (8th largest damage insurer) and Basak Emeklilik (2nd largest life insurer).
With this new development, Groupama has become the fifth largest damage insurer on the Turkish market and consolidates its position of number 2 on the life insurance market.
Groupama will also benefit from the network of the UCCCAT’s 1,926 cooperatives and will become the uncontested leader of agricultural insurance.
This transaction is right in line with Groupama’s international development strategy which combines organic growth and acquisitions. The Group is aiming to reinforce its presence in each country where it operates and to bolster its positions on the fast-growth markets of Southern, Central and Eastern Europe.
The signing and closing of the Güven transaction is subject to regulatory approvals.
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