Muscat – Oman Insurance Company announced recently that it has entered into an agreement with VHV Reasürans, Turkey, a company of VHV Group, Germany, to fully sell its insurance operations in Turkey.
This transaction represents a continuation of Oman Insurance’s transformation and simplification strategy with the objective to focus company’s resources to specific markets and segments. Part of this transaction is also a commercial agreement where Oman Insurance and VHV Reasürans will seek to partner together on insuring specific risks in Turkey as well as in the UAE, according to a press release.
Oman Insurance Company currently owns 100 per cent of Dubai Sigorta that has been active in Turkey since 2008. The company has 70 employees and distributes its products through brokers and agents. Dubai Sigorta is a commercial underwriting company that specialises in construction and liability insurance, ranking amongst the top five insurers in Turkey in these respective areas. Gross revenues for the company amounted to 298mn Turkish lira in 2020.
Jean-Louis Laurent Josi, Oman Insurance’s CEO, said, “This transaction is aligned with our strategy to focus on our core markets. VHV Reasürans being a company of one of the most important insurers in Germany and the leader in the construction sector in Europe, I am convinced that our operations in Turkey will immensely benefit from VHV Reasürans’s expertise and will be able to accelerate their growth in the country. I am also thrilled that both our firms will cooperate in the future to insure specific risks together, both in Turkey and in the UAE.”
Maximilian Stahl, CEO of VHV Reasürans and board member of VHV International, said, “This transaction will help VHV to grow by two separate entities: one as a regional reinsurer and the other as a local primary insurer. Dubai Sigorta is an excellent strategic fit for VHV Reasürans and VHV Group.”
Following this transaction, Oman Insurance Company will not own any shares in the company.