Cigna Corp. said Friday it has finalized the purchase of a majority stake in a Turkish insurer owned by a bank that is one of the largest distributors of life insurance and pension products in that country.
Cigna is spending 85 million euro — $108 million — to buy a 51 percent stake in Finans Emeklilik, the sixth largest life and pension provider in Turkey, creating a joint venture partnership with Finansbank to market life and pension products through its branch offices.
The agreement allows Finansbank to receive commissions, and it continues to be a shareholder of Finans Emeklilik. The joint venture allows Cigna to sell products to Turkey's middle class through the banks 500 branch offices in that country.
"This unique joint venture will strengthen Cigna's presence in Turkey and enables us to offer an expanded range of products to Finansbank's base of over 10 million customers," said Jason Sadler, President, Cigna's Global Individual Health Life & Accident business.
"Forming this critical joint venture will enable greater value for both the bank and Cigna by combining innovative offerings with a powerful retail platform," said Temel Güzeloglu, CEO of Finansbank. "We look forward to a successful, long-term partnership."