Abraaj sells 50% stake in insurance firm

The Abraaj Group (Abraaj), a major investor operating in growth markets, said it had entered into an agreement to divest its 50 percent shareholding in Acıbadem Saglık ve Hayat Sigorta AS (Acıbadem Sigorta) to Khazanah Nasional Berhad (Khazanah), the government of Malaysia’s strategic investment fund.
Under the terms of the agreement, Khazanah will acquire a combined 90 percent shareholding in Acıbadem Sigorta from both Abraaj and Turkey’s Aydınlar family in exchange for a cash consideration. Mehmet Ali Aydınlar will retain a 10 percent stake in the company and will remain as chairman of Acıbadem Sigorta.
Acıbadem Sigorta is a major provider of health insurance services for corporate and individual clients in Turkey, and has the second largest market share in the industry.
The Abraaj Group, through its funds, has helped Acıbadem Sigorta become one of the fastest growing and most profitable health insurance companies in Turkey, achieving over 30 percent annual premium growth over the past two years and one of the highest returns on equity in the market.
The company grew its gross written premiums from 131 million Turkish liras in 2010 to 234 million liras in 2012, improving its market share position in health insurance from number 6 with 7 percent of the market in 2010 to number 2 with over 10 percent of the market in 2012.
Net income grew from 1 million liras in 2010 to 27.9 million liras in 2012, with improved profitability driven by enhanced underwriting and claims management capabilities as well as improved efficiency driven by a strong focus on the management of operating expenses and a best-in-class IT platform.
Selcuk Yorgancıoglu, partner and region head of Central Asia and Turkey at Abraaj, said: “The successful outcome of this transaction demonstrates our continued track record of investing in quality assets in growth markets to generate significant and attractive returns.”