BIG MOVE: Turkey Wealth Fund Consolidates Public Insurance Companies

Posted on 04/23/2020


In a ground-breaking move, the Turkey Wealth Fund (TWF) bought all shares of Turkish public insurance companies for 6.54 billion Turkish liras (US$ 961 million) to consolidate them under a single umbrella. The move for the consolidation was a goal for Turkey’s Treasury and Finance Ministry, which was announced in December 2019 to raise the country’s domestic savings rate and grow the non-banking financial services sector.

As part of the project, Turkey Wealth Fund bought shares of Gunes Sigorta, Halk Sigorta, Ziraat Sigorta, Vakif Emeklilik ve Hayat, Halk Hayat ve Emeklilik, and Ziraat Hayat ve Emeklilik.

Prices Paid
Güneş Sigorta A.Ş. / 2.22 TL per share / 612,586,127.65 TL / Post-transaction – 61.1% ownership (38.9 percent of Güneş Sigorta’s shares are traded on Borsa Istanbul.)
Vakıf Emeklilik ve Hayat AŞ / 0.0896 TL per share / 724,584,226.21 TL / Post-transaction – 62.9% ownership
Ziraat Sigorta / 18.63 TL per share / 931,220,550 TL / Post-transaction – 99.97% ownership
Ziraat Hayat ve Emeklilik AŞ / 23.00 TL per share / 1,839,448,000 TL / Post-transaction – 99.97% ownership
Halk Hayat ve Emeklilik / 4,1149 TL per share / 1,695,338,800 TL / Post-transaction – 100% ownership
Halk Sigorta AŞ / 0.0186 TL per share / 578,904,511.54 TL / Post-transaction – 95.32% ownership (4.68 percent of Halk Sigorta’s shares are traded on Borsa Istanbul acquired later, but included in total price).

The Turkey Wealth Fund was founded in 2016.