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Turkey's Yapi Kredi Bank agrees to sell Yapi Kredi Sigorta for EUR 950 mln.

According to the news on Reuters, Yapi Kredi Bank (YKBNK TI) reached an agreement with Allianz to sell its insurance arm, Yapi Kredi Sigorta (YKSGR TI), for EUR950mn. Aforementioned deal price (TRY2,230mn) is in line with the yesterday's market capitalization of TRY2,203mn Comment: As of 2012, Yapi Kredi Sigorta ranked fifth with a market share of 7.2% in the non-life insurance business. With regards to its life insurance and private pension operations, which is conducted by its wholly-owned subsidiary Yapi Kredi Emeklilik, the company stood as the fourth largest player in life insurance market with a market share of 7.7% and for private pension activities, Yapi Kredi Emeklilik ranked third with a market share of 18% in terms of assets under management and fourth in terms of number of participants. As of 2012, Yapi Kredi Sigorta's value was registered as TRY1,223mn in Yapi Kredi Bank's financials. Should the deal takes place at the rumored price of EUR950mn for Yapi Kredi Sigorta, then the transaction- implied P/BV multiple will be 5.83x based on 2012 figures and having said that, we also think that the aforementioned multiple should be treated differently due to the higher valuation to be attached to the private pension business. Based on M&A related expectations, Yapi Kredi Sigorta posted 33% and 82% nominal returns within the last three and 12 months, respectively, and outperformed the ISE-100 by 25% and 35%, respectively, in the aforementioned periods.Source: bne
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Publication:Balkan Business News
Date:Mar 26, 2013
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