Vienna Insurance enters Turkish market

VIENNA, Austria—Vienna Insurance Group, through its Dutch subsidiary company, has agreed to acquire a nonlife Turkish insurer.

TBIH Financial Services Group N.V, in which parent-company Wiener Städtische Versicherung AG holds a majority share, announced it had signed a purchase agreement for the acquisition of 58.2% of Ray Sigorta A.Þ, a listed Turkish non-life insurer based in Istanbul.

The shares will be purchased from the current majority owner, the Turkish Dooan Pirketler Grubu Holding A.P. for $81.5 million. Dooan, one of the largest industrial conglomerates in Turkey, will continue to hold 20% of the shares in Ray Sigorta.

TBIH plans to file a public tender to acquire the remaining 22% free float of Ray Sigorta for the maximum total amount of $30.5 million.

Founded in 1958, Ray Sigorta recorded total premiums of about $180 million in 2006, according to preliminary data.