Wiener Städtische Versicherung AG - VIENNA INSURANCE GROUP

euro adhoc: WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group
Mergers - Acquisitions - Takeovers
Wiener Städtische Versicherung AG Vienna Insurance Group ("Vienna Insurance Group")enters the Turkish insurance market

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New Insurance Market


Ad hoc 20 March 2007

Please note: this is a translation; only the German version of this release is legally binding.

Vienna Insurance Group enters the Turkish insurance market. TBIH Financial Services Group N.V. (TBIH), in which Wiener Städtische Versicherung AG Vienna Insurance Group holds a majority share*, has signed a purchase agreement for the acquisition of 58.2 percent of the shares of Ray Sigorta A.S.  The shares will be purchased from the current majority owner, the Turkish Dogan Sirketler Grubu Holding A.S. (Dogan) for the amount of 81.5 million US dollars (about 62 million Euro). Dogan, one of the largest industrial conglomerates in Turkey, will continue to hold 20 percent of the shares in Ray Sigorta A.S., the remaining shares being free float.

"Following this transaction the Vienna Insurance Group will be the first Austrian insurance group to start operations in Turkey. With more than 70 million inhabitants the country is one of the largest and most promising markets and saw dynamic economic growth in recent years," comments Günter Geyer, CEO of Vienna Insurance Group. "Through Ray Sigorta, which is well established in the local market, we will be able to participate in the high growth potential of the country as Turkey is another CEE market with low insurance penetration. Also, we will bring to Ray Sigorta our rich integration know-how gained in the CEE region in order to strengthen the company."

Moreover, TBIH plans to file a public tender to acquire the remaining approx. 22 percent free float of Ray Sigorta A.S. for the maximum total amount of 30.5 million US dollars (about 23 million Euro). Furthermore the agreement contains a capital increase for Ray Sigorta A. S. of up to 30 million US dollars.

The transaction was concluded subject to a due diligence review and the approval by the authorities.

Ray Sigorta A.S. is a listed Turkish insurance company with its headquarters in Istanbul and 220 employees. Founded in 1958, the company is operative in non- life insurance with a focus on motor business and recorded total premiums of about 180 million US dollars (about 136 million Euro) in 2006 according to preliminary data. This corresponds to a strong growth of approx. 30 percent compared to the previous year.

With five regional offices and about 530 insurance agents Ray Sigorta A.S. has a well established nationwide distribution network. A predominant part of the premium volume is generated in retail business which is expected to show high growth rates going forward.

The Turkish insurance market

In 2006, the Turkish insurance market recorded a total premium volume of 6.6 billion US dollars (about 5 billion Euro), growing by approx. 13 %. With a penetration rate of 1.6% (insurance premiums as a percentage of GDP) Turkey has a long term catch-up potential in relation to the more mature markets in Western Europe (EU-15 countries with a 8.6% penetration rate).

* TBIH is a financial services group specialising in CEE and has a business focus on insurance and pension funds. Wiener Städtische Versicherung AG Vienna Insurance Group has been a shareholder in TBIH since 2006 and now holds a 60% share in the company (subject to the approval of the authorities).

Wiener Städtische Versicherung AG Vienna Insurance Group A-1010 Wien, Schottenring 30 ISIN: AT0000908504

You will also find this press release on

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ots Originaltext: Wiener Städtische Allg. Vers. AG
Im Internet recherchierbar:

Further inquiry note:
Mag. Birgit Reitbauer
Vienna Insurance Group
A-1010 Wien, Schottenring 30
Tel.: +43 (0)50 350-21336
Fax: +43 (0)50 350 99-21336

Branche: Insurance
ISIN:      AT0000908504
WKN:        A0ET17
Index:    ATX Prime, ATX, WBI
Börsen:  Wiener Börse AG / official market

Weitere Meldungen: Wiener Städtische Versicherung AG - VIENNA INSURANCE GROUP

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