Will Deniz Emeklilik switch its advertising from Robinson Crusoe to Snoopy? At the end of June MetLife, the USA’s largest insurer, announced it had been successful in the hard-fought battle to purchase Denizbank’s shares in Deniz Emeklilik, giving it a bancassurance distribution network in Turkey. Denizbank is owned by
Apart from being famous as having financed the construction of the Empire State Building, MetLife is known in the US for its adverts featuring the loveable characters from the Peanuts cartoons.
Compared with the worldwide Alico deal, which cost 16.2 billion US$, the Deniz Emeklilik deal is a drop in the ocean (pardon the pun – I couldn’t resist it as Deniz means sea in Turkish). But at nearly 162 million euro it is not undervalued.
The thing that makes it worth this is the 15 year exclusitivity deal. MetLife hopes to avoid the mistake made by other foreign insurers who based their valuations on actuarial Appraisal Values including a continuation of the current stream of new business, only to find the bank partner later set up their own life and pensions company.
It remains to be seen how this deal will affect MetLife’s American Life subsidiary in Turkey.
In a much bigger global deal, MetLife purchased the business of American Life from AIG in 2010. It already has a stake in the Turkish market, therefore. But American Life, like most Turkish companies without a dedicated bank distribution network, has been struggling to grow in recent years.