Mapfre Looks to Buy Genel Sigorta

MADRID - Spanish insurer Mapfre said on Sunday it was in talks with the Cukurova Group to buy an 80 percent stake in the Turkish conglomerate`s insurance subsidiary, Genel Sigorta, for 285 million euros ($375 million).
Genel Sigorta, Turkey`s No. 10 nonlife insurer and No. 6 in vehicle cover, has a 3.2 percent share of the insurance market and had 2006 estimated aftertax profit of 27 million euros.
"The acquisition represents Mapfre`s entry into direct insurance in Turkey, a market of great potential and great expansion, with 71 million people," Mapfre said in a statement.
Under any deal Cukurova would keep 20 percent of Genel Sigorta, which employs 310 staff and 297 selling agents across Turkey.
In 2006, Spanish market leader Mapfre increased premiums to 10.9 billion euros, and net attributable profit by 33.1 percent to 610 million.
Cukurova has interests in industries including automotives, paper, chemicals, textiles, telecommunications, construction, banking, media and transport services, according to its Web site.