Aviva plc has signed a Memorandum of Understanding with Aksigorta and Akbank to form a new Turkish life and pensions business. In the proposed transaction, Aviva’s Turkish life and pensions business, Aviva Hayat ve Emeklilik A, would be merged with Aksigorta’s life and pensions business, Ak Emeklilik.
Aviva and Aksigorta would hold equal shareholdings in, and would jointly manage, the new company. Aviva says the new company would be a leader in Turkey, with the number one position in pensions and the number two position in life insurance.
According to Aviva, the combination of Turkey’s current low insurance penetration rates and the potential for strong economic growth are expected to create attractive opportunities for profitable growth.
“I am delighted we have reached this agreement with Aksigorta and Akbank – Aviva is committed to developing its business in Turkey and this merger will bring attractive growth opportunities,” says Tidjane Thiam, chief executive, Aviva Europe.
“We are very glad that our search for a strategic partnership has concluded with the selection of Aviva, a globally distinguished company,” adds Akn Kozanolu, chairman of Aksigorta and president of Sabanc Holding Financial Services Group.
“I believe that this partnership, where 2+2=5, exemplifies Sabanc Holding’s value creation philosophy. The new company which will be established after the merger will fully utilise Aviva’s global know-how and Sabanc Group’s local expertise.”