AXA to Buy-Out OYAK's 50% Stake in AXA OYAK, Turkey's 2nd Largest Insurer
February 06 2008 - 4:36AM
PR Newswire (US)
PARIS, Feb. 6 /PRNewswire-FirstCall/ -- AXA announced today it has
entered into an agreement to acquire OYAK's fifty percent (50%)
share in AXA OYAK Holding A.S. ("AXA OYAK"), a company established
by AXA and OYAK in 1999. Under the terms of the agreement, AXA will
pay a purchase price of $525 million (approximately Euro 355
million) in cash for OYAK's 50% share in AXA OYAK(1). AXA OYAK
enjoys a leading position (10% total market share(2)) on the
fast-growing Turkish insurance market. Mainly focused on non-life,
especially motor and property, the company has experienced strong
top-line growth in the past years and is one of the most profitable
players in the market. In the first half of 2007, AXA OYAK posted
revenues of Euro 342 million (+20%(3)) and underlying earnings of
Euro 19 million (+26%(3)). This agreement is an opportunity for the
AXA Group to significantly strengthen its presence in Turkey and is
in line with its strategy of reinforcing its exposure to emerging
insurance markets. The transaction, which is subject to local
regulatory approval, is expected to close by early spring of 2008.
Following closing, the parties have agreed that AXA OYAK and its
subsidiaries will no longer use the OYAK name or trademark. (1) In
addition, according to the same agreement, AXA OYAK Holding will be
buying, for $15 million (approximately Euro 10 million), the 1.5%
share that Mais Motors, an OYAK joint venture company, holds in AXA
OYAK's non-life subsidiary. (2) As of June 30, 2007 - Source:
Association of the Insurance and Reinsurance Companies of Turkey
(3) Both 1H07 vs. 1H06 growth rates are on a comparable basis * * *
About the Turkish insurance market In 2006, the Turkish insurance
market recorded a total premium volume of USD 6.6 billion(4), life
insurance accounting for only 15% of this volume. With a population
of approximately 70 million and low penetration rates(4) in both
non-life (1.4%) and life (0.2%), Turkey is a fast-growing insurance
market with very strong potential. Distribution is dominated by
agents networks (65% of total premiums(5)) while non proprietary
distribution channels (banks and brokers) begin to emerge. (Chart:
http://www.newscom.com/cgi-bin/prnh/20080206/NYW047-a ) About AXA
OYAK AXA OYAK is the holding company established in 1999 between
AXA (50%) and OYAK (50%) that holds AXA and OYAK's stakes in the
non-life and life companies, AXA OYAK Sigorta and AXA OYAK Hayat
Sigorta. In 2007, it counted 568 employees and sold 3.4 million
contracts. AXA OYAK Sigorta, 71%-owned by AXA OYAK, is the second
largest company in the Turkish non-life insurance sector with an
11.8% market share(5) and revenues of Euro 507 million in 2006.
Between 2002 and 2006, the company achieved 35% growth per annum.
(Chart: http://www.newscom.com/cgi-bin/prnh/20080206/NYW047-b )
(Chart: http://www.newscom.com/cgi-bin/prnh/20080206/NYW047-c ) AXA
OYAK Hayat Sigorta, 100%-owned by AXA OYAK, is the eighth largest
company in the Turkish life market, with a 5.5% market share(5) and
revenues of Euro 70 million in 2006. Between 2002 and 2006, the
company achieved 16% growth per annum. (Chart:
http://www.newscom.com/cgi-bin/prnh/20080206/NYW047-d ) (Chart:
http://www.newscom.com/cgi-bin/prnh/20080206/NYW047-e ) (4) Source:
Swiss Re Sigma reports on World insurance. Non-life includes the
health segment. (5) As of June 30, 2007 - Source: Association of
the Insurance and Reinsurance Companies of Turkey AXA OYAK - Key
figures AXA OYAK IFRS numbers FY2005 FY2006 HY2007 in Euro million
Non-Life revenues 453 507 299 Combined ratio (%) 101.1% 98.4% 98.3%
Life revenues 68 70 43 Underlying earnings, group share* 22 28 19
Net income, group share* 25 29 18 Shareholders' equity, group
share* 225 212 238 * excluding minority interests of 29% in the
non-life company AXA OYAK Sigorta This press release is available
on the AXA Group web site http://www.axa.com/ About AXA AXA Group
is a worldwide leader in Financial Protection. AXA's operations are
diverse geographically, with major operations in Europe, North
America and the Asia/Pacific area. IFRS revenues amounted to Euro
94 billion for full year 2007. The AXA ordinary share is listed on
compartment A of Euronext Paris under the ticker symbol CS (ISIN
FR0000120628 - Bloomberg: CS FP - Reuters: AXAF.PA). The American
Depository Share is also listed on the NYSE under the ticker symbol
AXA. AXA Investor Relations: Etienne Bouas-Laurent:
+33.1.40.75.46.85 Paul-Antoine Cristofari: +33.1.40.75.73.60
Emmanuel Touzeau: +33.1.40.75.49.05 George Guerrero:
+1.212.314.2868 AXA Media Relations: Christophe Dufraux:
+33.1.40.75.46.74 Clara Rodrigo: +33.1.40.75.47.22 Armelle Vercken:
+33.1.40.75.46.42 Laurent Secheret: +33.1.40.75.48.17 Mary Taylor:
+1.212.314.5845 Individual shareholders: +33.1.40.75.48.4 IMPORTANT
LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-
LOOKING STATEMENTS This press release contains "forward-looking
statements" which involve risks and uncertainties. These statements
include, but are not limited to, statements that are predictions of
or indicate future strategy, forecasts, events, trends, plan or
objectives. Undue reliance should not be placed on such statements
because, by their nature, they are subject to known and unknown
risks and uncertainties and can be affected by other factors that
could cause actual results and AXA's plan and objectives to differ
materially from those expressed or implied in the forward-looking
statements (or from past results). These risks and uncertainties
include, without limitation, the risk of future catastrophic events
including possible future terrorist related incidents, economic and
market developments, regulatory actions and developments,
litigations and other proceedings. Please refer to AXA's Document
de Reference for the year ended December 31, 2006, for a
description of certain important factors, risks and uncertainties
that may affect AXA's business. AXA undertakes no obligation to
publicly update or revise any of these forward-looking statements,
whether to reflect new information, future events or circumstances
or otherwise. http://www.newscom.com/cgi-bin/prnh/20080206/NYW047-a
http://www.newscom.com/cgi-bin/prnh/20080206/NYW047-b
http://www.newscom.com/cgi-bin/prnh/20080206/NYW047-c
http://www.newscom.com/cgi-bin/prnh/20080206/NYW047-d
http://www.newscom.com/cgi-bin/prnh/20080206/NYW047-e
http://photoarchive.ap.org/ DATASOURCE: AXA Equitable CONTACT:
Investors: Etienne Bouas-Laurent, +33-1-40-75-46-85, Paul-Antoine
Cristofari, +33-1-40-75-73-60, Emmanuel Touzeau, +33-1-40-75-49-05,
George Guerrero, +1-212-314-2868; Media: Christophe Dufraux,
+33-1-40-75-46-74, Clara Rodrigo, +33-1-40-75-47-22, Laurent
Secheret, +33-1-40-75-48-17, Armelle Vercken, +33-1-40-75-46-42,
Mary Taylor, +1-212-314-5845, all of AXA Group; Individual
shareholders: +33-1-40-75-48-43 Web site:
http://www.axa-equitable.com/
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