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Member, Beacon International Group, Ltd.
MADRID, SpainMAPFRE S.A. is acquiring a majority stake in Genel Sigorta, Turkey's 10th largest non-life insurer, the Madrid-based insurer said.
After negotiations with Turkey's Cukurova Group, MAPFRE signed a memorandum of understanding under which it will acquire 80% of Genel Sigorta for approximately €285 million ($375.6 million) , the company said in a statement.
The Cukurova Group, which will maintain a 20% stake, is one of the largest industrial groups in Turkey and operates in the telecommunications, press and radio, motor, shipping, packaging and construction sectors.
Genel Sigorta has an expected premium volume of €180 million ($237.2 million) in 2007, most of which will come from its non-life insurance business. The insurer, with a 3.2% share of the Turkish market, had an estimated net profit of €27 million ($35.6 million) in 2006, an increase of 15% compared to the previous year, MAPFRE said.
MAPFRE said the acquisition gives it access to the Turkish insurance market, which it believes has huge growth potential and is experiencing fast growth.