Talanx expands in Turkey with M&A and digital P&C insurance JV

European insurer  Talanx has expanded in the Turkish market through acquisition and planned launch of a joint venture for digital non-life insurance.

The retail international division of the Talanx Group and Turkey's corporate group Fiba have agreed to establish a joint venture to offer a digital platform for all insurance distribution channels.

The move will diversify HDI International AG's portfolio in Turkey through the addition of life protection and non-motor, as well as increase its presence in bancassurance and embedded insurance leveraging digital capabilities.

The transaction will see HDI Sigorta, a company belonging to HDI International AG, acquire 60 percent of Fiba Pension and Life, which specialises in life protection. In addition, HDI Sigorta A.Ş. will partner with Fibabanka to establish the digital non-life joint venture.

HDI International AG has been represented on the Turkish market by HDI Sigorta A.Ş. since 2006. In 2021 the gross premium volume booked by HDI Sigorta totalled €419 million, equivalent to a market share of around 5.5 percent.

Fiba Pension and Life was founded in 2012 by Fiba Holding. The company is said to be the ninth-largest player on the life insurance side in Turkey, with gross premium of €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 €274 million. Fibabanka has been a subsidiary of Fiba Group since 2010.

The acquisition, subject to approval by the relevant supervisory authorities, 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. Talanx intends to finance the transactions from existing funds.

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, said the acquisition and joint venture will "present an outstanding opportunity to move ahead with our growth and diversification strategy in Turkey."

Christian Müller, the member of HDI International AG's Management Board responsible for the business in Europe, added: "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.

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