Dubai-headquartered composite insurance company, Oman Insurance Company (OIC) has entered into an agreement with VHV Reasurans, the Turkish reinsurance subsidiary of Germany-based VHV Group, to fully sell its insurance operations in Turkey.
Currently, OIC owns 100 percent of Dubai Sigorta and it 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 specializes in construction and liability insurance, ranking amongst the top 5 insurers in Turkey in these respective areas. Gross revenues for the company amounted to $19.9 million in 2020.
Part of this transaction is also a commercial agreement, in line with which OIC and VHV Reasurans will seek to partner together on insuring specific risks in Turkey as well as in the UAE.
“This transaction is aligned with our strategy to focus on our core markets. VHV Reasurans 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 Reasurans’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.”
Mr. Maximilian Stahl, CEO of VHV Reasurans and Board member of VHV International, said, “The operations in Turkey are part of VHV`s group strategy to diversify into carefully selected markets based on its proven competencies in defined segments and to strategically build up a further stable and growing business area.”
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 regarded as a highly competent and experienced player in the Turkish construction industry, which makes Dubai Sigorta an excellent strategic fit for VHV Reasurans and VHV Group.
The transaction is subject to closing conditions including the receipt of regulatory approvals. Both parties agreed not to disclose the financial details of the transaction. Following this transaction, OIC will not own any shares in the company.