BBVA SA is reviewing its insurance partnership in Turkey as its
current agreement with Eureko Sigorta AS is set to expire, according to people familiar with the matter.
BBVA is considering various options including a new partnership for its local unit Turkiye Garanti Bankasi AS, the pe
ople said, asking not to be named discussing private information. The process is at an early stage and BBVA coul
d also decide to renew the existing partnership, the people said. The Spa
nish bank has hired Alvarez & Marsal Inc. to advise it on the matter, they added.
“We are shaping our roadmap in the insurance sector in collaboration
with a consulting firm s
pecializing in this field,” said a representative for the Turkish subsidi
ary, known as Garanti BBVA. “These efforts are a natural and routine part of our insurance strategy. Ou
r strong partnership with Eureko Insurance continues in the same manner.”
A spokesperson for Eureko, which is part of Dutch group Achmea, said it
s collaboration with BBVA Garanti “continues to be strong.” Representatives for BBVA and Alvarez & Marsal declined to comment.
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BBVA controls around 86% of BBVA Garanti, a unit that accounted for around 7% of the group’s profit in the three quarters to September. Spain’s second-bigges
t lender is refocusing its strategy after its unsolicited takeover bid for Banco Sabadell SA failed earlier this year.
BBVA already has insurance collaborations with companies including Allianz SE, with which it agreed in 2020 to
form a joint venture for non-life insurance in Spain.
In a season similar to 2022, in which three hurricanes mad
e landfall in the U.S., including Florida’s Hurricane Ian, insured losses would likely jump by 61%.
“No hurricanes made landfall in the U.S. this year,” the researchers
noted. “However, this is down to luck rather than any long-term trend.”
The season should serve as a cautionary tale, they said.
“Our research indicates insured losses from U.S. hurricanes could ris
e nearly 50% under a 2°C global warming scenario. Warmer oceans will also enable storm
s to maintain their terrifying strength further north, threatening
cities along the upper East Coast—regions historically less exposed and less prepared.”