Cigna and Finansbank Announce Joint Venture Partnership in Turkey
Exclusive Long-Term Distribution Agreement to Sell Life and Pension Products
JV Will Serve Customers in One of the World's Fastest Growing and Least Penetrated Insurance Markets
- Partnership between Finansbank, the 5th largest privately-owned bank in Turkey, and Cigna, a global health service and insurance provider
- Finansbank to market life, pension and accident products through its retail branch network and other distribution channels, leveraging Cigna's extensive direct marketing expertise
- Cigna and Finansbank to provide easy access to innovative insurance products and solutions to Finansbank's 10 million customers and a growing middle-class population in Turkey
ISTANBUL, July 12, 2012 - Global health service and insurance company Cigna (NYSE:CI) today announced that it has signed an agreement to acquire 51% of Finans Emeklilik, the 6th largest life and pension provider in Turkey through in-branch banking channels, thereby forming a joint venture (JV) partnership with Finansbank to market life and pension products in the country.
Cigna will purchase a 51% interest in Finans Emeklilik for Euro 85 million and enter into a long term distribution agreement with Finansbank for the distribution of insurance products through its branch network and other channels. As part of the agreement, Finansbank will receive commissions and also participate in results of the venture as a continuing shareholder in Finans Emeklilik. The JV will provide Cigna opportunities to reach and serve a rapidly expanding middle class market in Turkey through Finansbank's network of retail banking branches. By leveraging Cigna's direct distribution expertise, Finansbank will be able to provide consumers across Turkey with innovative ways to purchase life and pension products.
"With its expanding population, growing GDP, and low insurance penetration, Turkey is an ideal market for Cigna's innovative product offering that helps customers improve their health, well-being and sense of security," said Jason Sadler, CEO of Cigna International Health, Life and Accident. "Cigna's unique agreement with Finansbank builds upon the strengths of both companies and aligns our interests to create an effective, long-term relationship that serves the protection needs of Finansbank's 10 million customers."
As a leading retail banking franchise with more than 500 branch locations in Turkey, Finansbank is a highly regarded and high growth bank serving customers throughout the country's increasingly urbanized regions. With Turkey's national GDP ranking it 19th globally, Finansbank is well positioned to support the nation's growing middle-class population.
"Finansbank has an impressive track record of profitable growth, as well as a strong capital position," said David Fike, Chief Marketing Officer of Cigna International Health Life and Accident. "Given their strong local team, and our shared vision and values, they are an excellent partner for Cigna. Turkey's demographic trends, impressive economic growth and the increasing need for affordable protection present a tremendous opportunity to create long-term customer relationships by offering our insurance solutions to Finansbank customers."
"Finans Emeklilik is energized by this partnership with Cigna," said Temel Güzeloglu, CEO of Finansbank. "Combining the world class offerings of one of the world's largest and most respected insurance and health service companies with our retail platform, strong local knowledge and experience in the growing Turkish market, will be a tremendous benefit to our customers in Turkey. We look forward to embarking on a successful long-term partnership."
Cigna was advised by Citigroup Global Markets Limited.
Cigna Corporation (NYSE: CI) is a global health service company dedicated to helping people improve their health, well-being and sense of security. All products and services are provided exclusively through operating subsidiaries of Cigna Corporation, including Connecticut General Life Insurance Company, Cigna Health and Life Insurance Company, Life Insurance Company of North America and Cigna Life Insurance Company of New York. Such products and services include an integrated suite of health services, such as medical, dental, behavioral health, pharmacy and vision care benefits, and other related products including group disability, life, and accident coverage. Cigna has sales capability in 30 countries and jurisdictions, with nearly 72 million customer relationships throughout the world. To learn more about Cigna®, including links to follow us on Facebook or Twitter, visit www.cigna.com.
Finansbank is the fifth-largest privately owned bank in terms of assets in Turkey (as of 31 December 2011). Finansbank is listed on the Istanbul Stock Exchange. Finansbank provides a wide range of retail banking products and services, as well as commercial, private and investment banking. It is one of the prominent retail banks in the market, and holds top tier rankings in terms of key retail banking products such as credit cards, mortgages, consumer loans, debit cards and overdrafts. As of 31 December 2011, Finansbank's distribution network included 522 branches and 10,837 staff in Turkey.
About Finans Emeklilik
Finans Emeklilik was founded in July 2007 and launched its pension operations in November 2008. It is active across all main life insurance products, including term life insurance, non-credit linked life insurance, and bundled insurance products as well as non-credit linked individual life insurance products, in addition to a selection of pension products. Finans Emeklilik is the 6th largest bancassurance company in the market accounting for a 6.1% market share in 2011, and is actively growing its private pension business, generating 22,624 net new contracts in 2011, which accounted for 6.3% of the market.
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