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11/19/14

Turkey Global Insurers to Bid for Insurance, Pension Units of Halkbank in Turkey

Insurers from Europe, Asia and the United States are among some 20 potential bidders in the sale by Turkey’s state-run Halkbank of its pension and insurance arms, three sources close to the process said on Wednesday.

Halkbank said in July it planned to sell part or all of pension provider Halk Emeklilik and insurer Halk Sigorta through Turkey’s privatization office, but has yet to give details.

“Talks were carried out with around 20 interested buyers. They will decide whether to participate in the sale process once the privatization document is out,” one of the sources said, speaking on condition of anonymity as the matter is not public.

“Five of them are in the process of hiring an adviser already,” the source told Reuters.

With a population of nearly 75 million whose average age is under 30, and an underpenetrated market, Turkey offers lucrative opportunities for global insurers, particularly given government initiatives to encourage saving through private pensions.

European firms Ageas, Aviva and Zurich Insurance, Japan’s Meiji Yasuda, Nippon Life and Sompo Japan Insurance, Malaysia’s Khazanah and U.S.-listed ACE Group were among the interested parties, the sources said.

Read more: Global Insurers to Bid for Insurance, Pension Units of Halkbank in Turkey

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