EUREKO CONTINUES EAST EUROPEAN FOCUS, AWAY FROM POLAND

Netherlands-based insurer Eureko, which two years ago gave up a decade-long battle to gain a significant foothold in Poland, has not been discouraged from activity in other East European nations. It announced yesterday that it had signed a deal with Garanti Bank to buy 20% of non-life operation Eureko Sigorta, increasing its holding to 100%. Eureko bought an 80% stake in what was then Garanti Sigorta in early 2007 ( IIN 24, March 23 2007), paying €365m ($525m). It also paid €100m for a 15% stake in life and pension business Garanti Emeklilik. As part of the Garanti Sigorta deal Garanti Bank retained an option to sell the remaining 20%, which it has now exercised. Eureko said that it was happy to take up the purchase, as "the expansion of the business in Turkey fits perfectly within our international strategy in which Turkey is, next to Russia and Greece, one of the three focus countries". Eureko chief financial officer Gerard van Olphen said that "since the start of our cooperation, Eureko Sigorta has developed very well" and that "the friendly atmosphere in which the transaction was concluded shows that both Garanti Bank and Eureko are very much aware of their core strengths". Garanti Bank executive vice-president Gökhan Erün said that Garanti closed the year 2010 with a 21% market share, and was the industry leader in bank insurance. "With the recent agreement, our collaboration with Eureko will continue at the same pace", he said, adding that "we are carrying out extensive projects to further increase the volume of our insurance products that are complementary to banking products".