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Vienna Insurance Group Expands in Turkey

Published: February 4, 2011; 00:41 · (Vindobona)

Vienna Insurance Group in Turkey: Acquisition of a 10 percent stake in Ray Sigorta is completed.

Vienna Insurance Group Expands in Turkey / Picture: ©

Vienna Insurance Group AG Wiener Versicherung Gruppe has reached an agreement with Dogan Sirketler Grubu Holding S.A. on the acquisition of about 10 percent of the Turkish non-life insurer Ray Sigorta. The transaction was concluded on 2 February. Vienna Insurance Group already holds an 84.3 percent stake in Ray Sigorta via TBIH Financial Services Group N.V. (TBIH), a 100-percent holding of Vienna Insurance Group. Following this latest transaction, it will therefore hold a total stake of about 94.3 percent.

Vienna Insurance Group entered the Turkish insurance market via TBIH in 2007. Ray Sigorta is a listed Turkish insurance company based in Istanbul with around 260 employees. The company, which was founded in 1958, provides non-life insurance services with a focus on motor insurance. In 2010, Ray Sigorta generated a total premium volume of € EUR 122m, according to preliminary results. Ray Sigorta benefits from a well-established distribution network with eight regional offices and a network of around 800 brokers and agents.

Turkey is one of the emerging insurance markets. The potential of the market is highlighted by its insurance penetration (insurance premiums as a percentage of Gross Domestic Product) of just 1.3 percent, compared to an average insurance penetration of 8.7 percent in the EU15 markets in Western Europe.