Generali to streamline portfolio with sale of Turkish unit to Kiler Holding and partners

Generali has reached an agreement to sell its 99.99% stake in Generali Sigorta Anonim Şirketi, a Turkish insurance company, to a consortium of Turkish investors, marking a strategic move in line with its “Lifetime Partner 24: Driving Growth” plan. The consortium acquiring the stake includes Kiler Holding A.Ş., which will hold 42%, Ekol Girişim Sermayesi Yatırım Ortaklığı A.Ş. with 9%, Arex Yatırım Holding A.Ş. with 48%, and Arex Sigorta A.Ş. with 1%.

This sale is part of Generali’s strategic plan to drive sustainable growth and enhance its earnings profile by focusing on key markets where it has a leading presence. Generali’s decision to divest from its Turkish operations reflects its aim to streamline its portfolio and prioritise regions that contribute more significantly to its growth and profitability.

Limited Impact on Generali’s Solvency Position

Generali’s Turkish business, Generali Sigorta, has contributed minimally to the Group’s overall operating results. Consequently, this transaction is not expected to have a significant impact on Generali’s Solvency II position, which measures the financial stability and risk of insurance companies operating in the European Union.

The sale is anticipated to be finalised by the first half of 2025, pending the necessary regulatory approvals from relevant authorities. The transaction aligns with Generali’s ongoing efforts to optimise its portfolio, demonstrating its commitment to enhancing operational efficiency and profitability.

Advisors in the Deal

PwC acted as the sole M&A advisor to Generali in this transaction, providing vendor due diligence services. Esin Attorney Partnership served as the legal advisor to Generali, guiding them through the legal intricacies of the sale.

The divestment follows Generali’s broader strategy of restructuring and refocusing its operations on core markets with more substantial growth potential. Generali’s move is seen as a bid to consolidate its position in high-potential markets and exit those where the contributions are less significant.