EMF picks up Aviva's Turkish business

The deal is part of Aviva's strategy to focus on its core markets. The transaction does not include Aviva's life insurance and pensions business in Turkey. According to Aviva's 2013 annual report, the group has been trying to offload the business since last year as "performance continues to be unsatisfactory". Indeed, the annual report shows the business generated a loss of £9m in 2013.

EMF, which led the consortium of investors, invested via its EMF New Europe Insurance Fund, which targets businesses operating in the insurance sector in non-EU eastern Europe. EMF acquired a majority stake while FMO and KfW DEG each purchased an equal minority interest.

FMO is a Dutch development bank, focusing on private sector growth in developing and emerging markets, targeting investments in financial institutions, energy and agribusiness.

DEG, a subsidiary of KfW, is a European development finance institution, also investing in private companies in developing and emerging markets.

Company
Aviva Sigorta was established in 1989 and provides general insurance, which includes insurance for cars, personal accidents and travel. The business is based in Istanbul and operates from five regional offices, employing around 200 people. 

People
Peter Lovas is CEO of EMF.

Advisers
Equity – CMS Turkey (Legal); Mehmet Gün & Partners (Legal).

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• Topics
• PIPEs
• CEE
• Financials
• Turkey