A partial or complete sale of Turkish insurer Ankara Sigorta and pension firm Ankara Emeklilik should be completed in one or two months, the general manager of both companies told Reuters on Thursday.
After a series of sales in European Union candidate Turkey's banking sector, foreign investors' attention has turned to the small but fast-growing insurance sector and several deals have already gone through this year. Ankara Sigorta (Insurance), which has a market share of around 3 percent in a highly fragmented market, was expected to be sold earlienager Yusuf Cemil Satoglu said the sale had been delayed due to heavy interest.
"Right now the (sale) process is continuing. We have held talks, we're still holding them ... I estimate the process will be finalised in one or two months," Satoglu said in an interview. Local and foreign companies were interested and Satoglu said large European companies were among those who would have access to the company's books.
He said all options were on the table for the two firms: a minority stake sale, strategic partnership or full sale. The ratio of premiums to gross domestic product in Turkey is less than 2 percent, lagging far behind an average 3.6 percent in developing countries and 9 percent in developed countries, according to industry data.
Satoglu said total premiums were expected to rise to between 20 billion lira ($16.2 billion) and 25 billion in 10 years, more than doubling from 9.7 billion lira at the end of 2006. "Turkey's economy ranks 17th biggest in the world, but the insurance sector is the 40th," he said. Low penetration rates and a fast growing population have lured firms such as Britain's Aviva, Dutch Eureko, Vienna Insurance Group and Spain's Mapfre.