Talanx announces joint acquisition of Fiba Group in Turkey

Written by Michael Griffiths

03/11/2022

Talanx has announced it is expanding its activities in its core market of Turkey through a planned acquisition and joint venture with the Fiba Group, one of Turkey's largest companies.

HDI Sigorta, a company of HDI international AG, is acquiring 60% of the shares in the company Fiba Pension und Life, which specialises in biometric products. HDI Sigorta, together with Fibabanka, will begin a joint venture for digital property insurance with the aim of offering a digital platform for all insurance sales channels.

Talanx will finance the transactions from existing liquid funds. The acquisition of 60% of the shares in Fiba Pension and Life is expected to be completed in the first quarter of 2023 and the formation of the non-life joint venture with Fibabanka within the first half of 2023, subject to the approval of the relevant regulatory authorities. The parties have agreed not to disclose the purchase price for Fiba Pension and Life.

As a result, Talanx’s retail international division will expand its business to include biometric products and expand its non-vehicle business. It is also strengthening its market position in the non-life area, expanding its capabilities in the field of digitisation and using the sales channels of Fiba Pension and Life through an exclusive bancassurance agreement.

HDI International AG is associated with HDI Sigorta A.Ş. represented in the Turkish market since 2006. HDI Sigorta offers insurance services through more than 700 employees, 13 regional locations and more than 3,000 insurance brokers and agents as well as 15 banking partners. In 2021, HDI Sigorta's gross premium volume was €419m.

Talanx board member with responsibility for the International Retail Division, and chairman of the Board of Management of HDI International AG, Wilm Langenbach, commented: “The majority acquisition of the shares of Fiba Pension and Life and the establishment of the digital property insurance joint venture provide an excellent opportunity to continue our growth and diversification strategy in Turkey.

“The life biometrics and non-vehicle 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 use with our technical expertise for the benefit of our customers.”

Fiba Pension und Life was founded in 2012 by Fiba Holding and employs almost 130 people. In life insurance, the company is the ninth largest player in Turkey and in 2021, its gross premium volume was €33m.

Managing director and board member of Fibabanka, Ömer Mert, added: “First and foremost, our customers will benefit from this new collaboration benefit as they gain access to a broader expertise and an even broader range of insurance products.

“FIBA Pension and Life has been a trusted provider of leading pension, life and health insurance products under the Fiba Group umbrella for more than ten years and we are confident that it will continue to meet the needs of our customers with excellent service, technology and products for years to come.

“I am happy that we will soon also establish a joint venture with HDI Sigorta by creating a new digital insurance company. As Fibabanka, we will soon be serving our customers in a new way beyond the area of life insurance.”

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