Istanbul-headquartered participation bank Kuveyt Turk has acquired the 93% stake in takaful company, Neova Sigorta, that it did not previously own.
With the acquisition, Kuveyt Turk— which previously held a stake of 7% in Neova Sigorta — wholly owns the Islamic insurer.
The acquisition was completed on 5 May after the required approvals were obtained from regulators.
Istanbul-based Neova Sigorta is Turkey's first pure participation insurance (takaful) company. It received its operating licence in 2009. The company had a 2.73% share of the overall non-life market in Turkey in 2018 and a share of more than 60% in the takaful sector.
Neova Sigorta offers its customers insurance products such as motor, fire and natural disaster, personal accident and travel insurance, etc. The company operates 14 regional offices, has 2,300 agents, more than 250 employees and bancassurance arrangements with several banks.
Kuveyt Turk provides interest-free financial products and services and has Kuwait Finance House as its parent company.
In September 2017, the government issued Turkey's first set of takaful regulations and in January 2018, the Turkish Insurance Association published for the first time separate data for participation insurance.