UK-headquartered Bupa, the international healthcare company, has agreed to acquire Turkey’s second largest health insurer, Acibadem Sigorta, subject to regulatory approvals. The purchase would mark Bupa’s entry into the Turkish health insurance market.
Acibadem Sigorta is a specialist health insurance provider with both corporate and individual customers. Headquartered in Istanbul, it has over 500 employees and covers 600,000 lives. In 2017, Acibadem Sigorta generated gross written premiums of TRY913m ($152m). From 2013 to 2017, Acibadem Sigorta increased its GWP market share from 12% to 18% and became the number one Turkish health insurer in corporate business and number two overall.
Bupa will benefit from Acibadem Sigorta’s local market knowledge, and their customers and employees will benefit from the strength of Bupa’s expertise and experience.
Simeon Preston, CEO of Bupa International Markets, said, “We’re delighted to announce Bupa’s agreement to acquire Acibadem Sigorta. Its impressive growth, first-class management team and customer focus make it an excellent choice for market entry. We have been watching the Turkish market for several years and we believe it offers excellent prospects for growth. We see this acquisition as a long-term strategic investment for us. Bupa and Acibadem Sigorta have a shared commitment to putting customers first, and we look forward to welcoming the team into the Bupa family.”
Gökhan Gürcan, CEO of Acibadem Sigorta, added, “Bupa has a strong record of developing and growing the businesses it acquires and has the resources and expertise to help us build on the successes of the past 26 years. Together we can support the continued development of the Turkish health insurance market.”
Bupa is buying Acibadem Sigorta from Avicennia Capital, a Malaysia-based financial holding company, which holds 100% of the Turkish insurer. Avicennia Capital is an investment unit of Malaysia’s sovereign wealth fund Khazanah Nasional. The purchase price was not disclosed. Bloomberg though had previously reported the discussions between Khazanah and Bupa, adding that the Malaysian sovereign fund was seeking as much as $300m from the sale. Acibadem Sigorta was sold to the Malaysian investment fund five years ago.