In a significant move, Dutch insurance giant NN Group has announced that it will be ceasing its operations in Turkey, opting to transfer its business to Zurich Türkiye. Having entered the Turkish market in 2009, NN Group has provided services in areas such as pensions, life insurance, and complementary health insurance.
A Thoughtful Decision by NN Group
Frank Eijsink, CEO of NN International Insurance, explained in the official announcement, “The decision to sell our Turkey operations is the result of a comprehensive process. After careful evaluations, we have concluded that this decision is in the best interest of our customers, employees, and other stakeholders.” This statement highlights the strategic thinking behind the decision, indicating a focus on ensuring the best outcomes for all parties involved.
Anticipated Completion in Early 2025
The transfer is subject to the approval of the Competition Authority and other regulatory bodies, with expectations that the transaction will be finalized in the first quarter of 2025. Notably, it was also mentioned that the impact of NN Group’s Turkish subsidiary, NN Hayat ve Emeklilik, on the overall group operations is limited.
A Snapshot of NN Group’s Presence in Turkey
Before this transition, NN Group had a workforce of 203 employees and served approximately 406,000 customers in Turkey. Operating primarily in 18 countries, including many in Europe and Japan, the company employs around 12,000 people globally. Additionally, in 2023, NN Group had transferred its automatic enrollment portfolio in Turkey to Fiba Emeklilik.
The exit of NN Group from the Turkish market marks a notable shift in the insurance landscape. While it may signal challenges in sustaining operations in this region, the transition to Zurich Türkiye could pave the way for enhanced services and stability for the customers. It’s crucial for the industry to adapt and evolve in response to these changes, ensuring that customer needs are met effectively. With the right insurance strategies, stakeholders can navigate this transformation smoothly and maintain trust in the system.
