Allianz Is Said Close to Purchase of Yapi Kredi Insurance Unit
Allianz SE (ALV), Europe’s biggest insurer, is close to buying Yapi & Kredi Bankasi AS’s insurance unit and a stake in its pension business for less than 1 billion euros ($1.3 billion), two people person with knowledge of the matter said.
Yapi & Kredi, the Istanbul-based bank controlled by UniCredit SpA (UCG) and Turkey’s biggest business group, Koc Holding AS (KCHOL), may complete the sale of Yapi Kredi Sigorta AS (YKSGR) to Munich- based Allianz within weeks, said the people, asking not to be identified because the discussions are private.
Yapi Kredi controls 94 percent of Yapi Kredi Sigorta, according to the bank’s website. UniCredit and Koc are selling Yapi Kredi Sigorta and Yapi Kredi Emeklilik AS as part of a reorganization of Yapi Kredi. UniCredit is reviewing its strategy in countries where it operates to focus on the most- profitable businesses and Turkey remains a “core market,” Chief Executive Officer Federico Ghizzoni has said.
Yapi Kredi Sigorta generated 959.4 million liras ($526.3 million) of premiums in the first 10 months of 2012, up 21 percent from a year earlier, and had a 7 percent market share, according to the Insurance Association of Turkey’s website.
The news was reported by Reuters earlier today. Officials at Allianz and UniCredit declined to comment.
To contact the editors responsible for this story: Frank Connelly at email@example.com;