A large insurance company that will be jointly founded by the Turkish Post and Telegraph Organization (PTT) and Italian Generali will operate insurance and individual pension systems in Turkey. PTT, which has 4,500 branches across the country, will be the agent of the new company. Other insurance companies also want the cooperation to open up to competition through contract bidding.
Generali and PTT will form an equal partnership. Generali will cover the foundation financing and capital and PTT will invest its current network as real capital.
PTT has reportedly been maintaining talks with Italian Generali rather than Generali Sigorta, which has been operating in Turkey for a long time. Generali is a global company that will bring foreign direct investment of up to $500 million to Turkey for the foundation, capital and operation of the new company. Talks are being organized by Mine Ayhan, the former general manager of Generali Turkey.
PTT has been operating in insurance under a subsidiary called PTT Sigorta, which works like a broker or agency for insurance companies and sells their products. PTT Sigorta's infrastructure is provided by Sigorta Yeri, in which Aktif Bank is a partner. Generali has been operating in Turkey for more than 100 years under the name Generali Sigorta, but is smaller than other insurance companies.
Foreign companies now hold 75 percent of Turkey's insurance industry. There is high foreign interest in the country's insurance industry because of its potential. Industry authorities say that PTT's 152-year name will be used in this operation, thinking that the new company will have significant advantages with the use of PTT's recognition and strong network. Considering this, they say that cooperation should take place through contract bidding by opening it to other insurance companies and observing public interest. Due to high potential, other foreign insurance companies are inclined to cooperation and the amount of foreign direct capital to be brought to the country can be increased.
