21st Mar 2007 07:16
Aviva PLC21 March 2007 News release 21 March 2007 AVIVA SIGNS MEMORANDUM OF UNDERSTANDING IN TURKEY Aviva, Aksigorta and Akbank sign memorandum of understanding to form a leadingTurkish life and pensions business and establish a bancassurance agreement withAkbank. Aviva plc ("Aviva") is pleased to announce that it has signed a Memorandum ofUnderstanding ("MOU") with Aksigorta A.S. ("Aksigorta") and Akbank T.A.S. ("Akbank") to form a new, leading Turkish life and pensions business. In theproposed transaction Aviva's Turkish life and pensions business, Aviva Hayat veEmeklilik A.S. ("Aviva HE"), would be merged with Aksigorta's life and pensionsbusiness, Ak Emeklilik A.S. ("Ak E"). Aviva and Aksigorta would hold equal shareholdings in, and would jointly manage,the new company, which would benefit from a long-term and exclusive agreement tooffer life insurance and pension products to Akbank's 5.9 million retailcustomers through its 687 branches. This transaction would bring together Aviva HE's leading direct sales forcebusiness, and Ak E's leading position in bancassurance. The new company wouldbe a leader in Turkey, with the number one position in pensions and the numbertwo position in life insurance. Aviva has high expectations for the further development of the Turkish life andpensions market. The combination of Turkey's current low insurance penetrationrates and the potential for strong economic growth are expected to createattractive opportunities for profitable growth. Tidjane Thiam, chief executive, Aviva Europe, said: "I am delighted we havereached this agreement with Aksigorta and Akbank - Aviva is committed todeveloping its business in Turkey and this merger will bring attractive growthopportunities. By coming together, Aviva, Aksigorta and Akbank would create aclear leader with unique multi-channel capabilities in one of the mostattractive life and pensions markets. Aviva will be able to leverage itsinternational bancassurance capabilities to assist in the successful developmentof the business." Akin Kozanoglu, chairman of Aksigorta and president of Sabanci Holding FinancialServices Group, said: "We are very glad that our search for a strategicpartnership has concluded with the selection of Aviva, a globally distinguishedcompany. The combination of our and Aviva's operations in Turkey will create aleading life and pensions company in Turkey. I believe that this partnership,where 2+2=5, exemplifies Sabanci Holding's value creation philosophy. The newcompany which will be established after the merger will fully utilise Aviva'sglobal know-how and Sabanci Group's local expertise." Aviva, Aksigorta and Akbank have entered into exclusive discussions with a viewto announcing the signing of definitive documentation later this year.Completion of the transaction would be subject to regulatory and otherapprovals. -ends- Enquiries: MediaHayley Stimpson, director of external affairs +44 (0)20 7662 7544Sue Winston, head of group media relations +44 (0)20 7662 8221Vanessa Rhodes, group media relations manager +44 (0)20 7662 2482 AnalystsCharles Barrows, investor relations director +44 (0)20 7662 8115Jessie Burrows, head of investor relations +44 (0)20 7662 2111 Notes to editors: Aviva • Aviva is one of the leading providers of life andpensions in Europe with substantial positions in other markets around the world,making it the world's fifth largest insurance group based on gross worldwidepremiums at 31 December 2005 • Aviva's principal business activities are long-termsavings, fund management and general insurance, with worldwide total sales of£41.5 billion and assets under management of £364 billion at 31 December 2006 • Aviva's Turkish life and pensions business, Aviva HE,had pension assets under management of £106 million at 31 December 2006 and lifegross written premiums of £49 million in 2006 Aksigorta • Aksigorta is Turkey's 4th largest non-life insurer bymarket share based on premiums of £241 million in 2006 • Haci Omer Sabanci Holding A.S., one of Turkey'sleading financial and industrial conglomerates, owns approximately 62% ofAksigorta • Aksigorta's life insurance and pensions subsidiary, AkEmeklilik, had pension assets under management of £145 million at 31 December2006 and life gross written premiums of £23 million in 2006 Akbank • Akbank is Turkey's largest company by marketcapitalisation and its most profitable private bank. Akbank offers a wide rangeof retail, commercial, corporate and private banking services. Akbank has anextensive distribution network including 687 branches and alternative deliverychannels. • Haci Omer Sabanci Holding A.S. and its subsidiariesown approximately 39% of Akbank. In January 2007, Citigroup acquired a 20% stakein Akbank for $3.1 billion Other • This agreement does not include Aviva Sigorta A.S.,Aviva's non-life business in Turkey or Aksigorta's non-life operations. • Market positions for the new company were based on31.12.06 data provided by: o The Pensions Monitoring Centre (Turkey) for pensions (assets undermanagement) o The Association of Insurance and Reinsurance Companies of Turkey forlife business (gross written premiums) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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