Anadolu Hayat Falls Most in 10 Months on Draft: Istanbul Mover

Anadolu Hayat Emeklilik AS (ANHYT), the Turkish insurer owned by the country’s biggest bank, declined the most in almost 10 months after the government proposed removing a requirement for borrowers to have insurance.

The shares of Anadolu Hayat fell 4.2 percent to 5.98 liras at the close in Istanbul, the biggest drop since Aug. 14. More than 660,000 shares traded, or 1.7 times the three-month daily average. The Borsa Istanbul National 100 (XU100) index slumped 3.1 percent, falling for a fifth day.

Bank customers will no longer be required to have life insurance to obtain consumer loans and mortgages, according to a draft of the plan received by e-mail from the Customs & Trade Ministry yesterday. Those who want coverage will be able to choose their insurer, the ministry said in the statement.

“This is a key source of revenue for Anadolu Hayat,” Kutlug Doganay, an analyst at Is Investment in Istanbul, said by phone today. “If the draft becomes law, the company’s earnings would be negatively affected. Investors seem to have started to price in the prospect - the decline may continue.”

The ministry submitted the plan to the Cabinet, Customs & Trade Minister Hayati Yazici said yesterday, state-run Anatolia news service reported today. Under government procedures, draft laws need Cabinet and parliamentary approval before they may become law.

Turkiye Is Bankasi (ISCTR) AS, which owns 62 percent of Anadolu Hayat and Turkey’s biggest lender by assets, slid 3.3 percent. The stock has dropped 6.1 percent this week after Turkey capped the interest rate lenders can charge on overdrafts this week, fueling speculation lenders will face more regulatory measures that risk eroding profits.

Anadolu Hayat reported first quarter net income of 23.8 million liras ($13 million), up 11 percent from 21.5 million liras in the same period a year earlier. Two analysts recommend investors buy the shares, while three, including Doganay, say hold and two advise selling the stock, according to data compiled by Bloomberg.

To contact the reporter on this story: Taylan Bilgic in Istanbul at tbilgic2@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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