Talanx expands activities in core market Turkey through intended acquisition and joint venture

Acquisition of 60 percent of Fiba Emeklilik ve Hayat A.Ş (Fiba Pension and Life) by HDI Sigorta A.Ş.
Partnering with Fibabanka, a digitally focused and fast-growing bank in Turkey, by establishing a joint venture for digital non-life insurance
HDI International AG diversifies its portfolio in Turkey through addition of life protection and non-motor as well as increases its presence in bancassurance and embedded insurance leveraging digital capabilities

The Retail International division of the Talanx Group is strengthening its position in its core market Turkey through cooperation agreement with Fiba Group, one of Turkey's largest corporate groups. HDI Sigorta, a company belonging to HDI International AG, is to acquire 60 percent of Fiba Pension and Life, which specialises in life protection. In addition, HDI Sigorta A.Ş. is partnering with Fibabanka to establish a joint venture for digital non-life insurance with the ultimate purpose of offering a digital platform for all insurance distribution channels. The division is thereby diversifying its portfolio through the addition of life protection and by reinforcing non-motor. Furthermore, it is strengthening its market position in the non-life business, expanding its capabilities in the field of digitalisation and leveraging Fiba Pension and Life’s sales channels through an exclusive bancassurance agreement. The transactions are subject to approval by the relevant supervisory authorities.

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"The acquisition of a majority in Fiba Pension and Life and establishment of the digital non-life joint venture present an outstanding opportunity to move ahead with our growth and diversification strategy in Turkey. The life protection and non-motor business will be particularly strengthened by this partnership. With more than three million customers, Fibabanka already has a very strong digital orientation, which we can now leverage with our technical expertise for the benefit of our customers," comments Dr Wilm Langenbach, the member of the Board of Management of Talanx AG with responsibility for the Retail International division and Chief Executive Officer of HDI International AG.

Christian Müller, the member of HDI International AG's Management Board responsible for the business in Europe, adds: "In our core market Turkey we are taking a major step forward with this exclusive cooperation. In Fibabanka we are proud to have found an ambitious and digitally focused bank with an extensive reach in Turkey and we are looking forward to a partnership-based collaboration." By entering into this joint venture with Fibabanka Talanx is reinforcing its position among the top 5 players on the Turkish property and casualty insurance market.

Fiba Group Chairman Murat Özyeğin comments that Fiba Pension and Life has demonstrated many accomplishments in the private pension and life insurance sector over 10 years and states, "We are proud to have created a strong brand, working in a close relationship with all our customers, agencies, and distribution channels. Fiba Pension and Life has reached hundreds of thousands of customers through its pension, life and health insurance products and services and I look forward to its growth under the partnership of Fibabanka and HDI Sigorta, following institutional approvals. With Fibabanka's new generation digital banking infrastructure and HDI Sigorta's international experience in the field of insurance, we believe that Fiba Pension and Life’s distribution channels and product range will become even richer.”

"We are very excited to join forces with HDI Sigorta in a new strategic partnership which will unlock many new benefits for our customers,” said Ömer Mert, General Manager and Board Member for Fibabanka. “First and foremost, our customers will benefit from this new joint endeavour with access to broader expertise and an even richer range of insurance products. Fiba Pension and Life has been a trusted provider of leading pension, life insurance and health insurance products for over 10 years under Fiba Group and we are confident that it will continue to serve the needs of our customers with excellence in service, technology and products for many years to come.” Ömer Mert also said: "I am happy to share that we will soon establish a joint venture with HDI Sigorta to create a new digital insurance company, too. Thus, as Fibabanka, we will soon serve our customers in new ways beyond the field of life insurance."

Fiba Pension and Life was founded in 2012 by Fiba Holding and employs approximately 130 staff. The company is the ninth-largest player on the life insurance side in Turkey, with gross premium of EUR 40 million in 2021 and tenth-largest player in the unit-linked like private pension market in Turkey, with assets under management in amount of EUR 274 million. Fibabanka has been a subsidiary of Fiba Group since 2010.

HDI International AG has been represented on the Turkish market by HDI Sigorta A.Ş. since 2006. HDI Sigorta provides insurance services through more than 700 employees, 13 regional offices and more than 3,000 insurance brokers and agents as well as 15 bank partners. In 2021 the gross premium volume booked by HDI Sigorta totalled EUR 419 million, equivalent to a market share of around 5.5 percent.

Talanx intends to finance the transactions from existing funds. The acquisition of 60 percent of the shares of Fiba Pension and Life is expected to close by the first quarter of 2023, while the establishment of the non-life joint venture with Fibabanka is expected to be completed within the first half of 2023 following the approvals by the relevant supervisory authorities. The parties have agreed not to disclose details of the purchase price for Fiba Pension and Life.

Disclaimer

This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG’s control, affect Talanx AG’s business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialise, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement. Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.