Yapi Kredi Sigorta Surges on Sale Speculation Firm Denies

Yapi Kredi Sigorta AS (YKSGR), Yapi & Kredi Bankasi AS’s insurance unit, gained the most in 11 months on renewed speculation the unit would be sold.

Yapi Kredi Sigora jumped 10 percent to 14.55 liras at the close in Istanbul trading, its biggest gain since Feb. 28, 2011. The volume of shares traded reached 320 percent of the stock’s three-month average.

Haberturk newspaper reported on Jan. 19 Zurich Insurance Co. Ltd. offered to buy the company. Yapi Kredi Sigorta corporate communications director Fusun Dedehayir denied today any sale process was under way.

“The sale rumors are back, and I think Yapi Kredi probably has an intention to sell,” Sadrettin Bagci, an analyst at Yatirim Finansman Securities in Istanbul, said by telephone. “The probability of Yapi Kredi selling is high because their main peer, Garanti, also sold their insurance unit to Eureko and because they have one of the lowest capital adequacy ratios in our market, so they’ve been talking about some kind of liquidation.”

Yapi Kredi bank had a capital adequacy ratio of 13.6 percent as of Sept. 30, according to data compiled by Bloomberg. The average for the Turkish banking industry was 16.4 percent in the same month, according to data on the banking regulator’s website. The minimum ratio required in Turkey is 12 percent.

Turkiye Garanti Bankasi AS (GARAN), Turkey’s largest bank by market value, sold its remaining 20 percent stake in insurer Eureko Sigorta BV to Eureko BV last year, making a profit of $84.5 million on the transaction, the company said in July.

Yapi & Kredi Bankasi shares advanced 2.3 percent to 3.10 liras today.

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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