Dutch insurer Eureko targets Turkey; mulls sales

* Targets fast-growing Turkey after leaving Poland

* Stays in Russia, Greece

* May sell operations lacking economies of scale

* 2009 net profit 1.4 bln euros helped by PZU settlement

AMSTERDAM, March 16 (BestGrowthStock) – Privately held Dutch insurer
Eureko is switching it attention to Turkey as its next big
growth market after pulling out of Poland, and said it may sell
some of its weaker international operations.

Eureko, partly owned by cooperative bank Rabobank [RABO.UL],
is the biggest insurer in the Netherlands – where it offers
property and casualty, life and health insurance – and is active
in 11 European countries outside its home market.

Eureko, hurt by writedowns and inefficiencies, said on
Tuesday it made net profit of 1.4 billion euros in 2009, helped
by a 1.2 billion euro settlement with the Polish government over
the ownership of local insurer PZU, [ID:nL2639199]

Eureko sued the government after it walked away from
promises to cede control after partial privatisation of PZU
a decade ago, and reached settlement last October. Eureko plans
to sell its remaining 18 percent stake in PZU once it is listed.

“With the disappearance of Poland as our envisioned second
home market, we will concentrate our attention and resources on
the fast-growing market in Turkey,” Eureko said. The company is
already active in Turkey.
Eureko, which got a 1 billion euro capital injection last
year from its shareholders to cope with writedowns, said it may
sell some of its international operations but did not specify
where.

“If operations do not achieve both added value through core
competences and essential economies of scale, Eureko may
consider divestment,” the insurer said.

The company said it would continue its Russian operations
because that was “a market where Eureko wants to be in”, and
stay in Greece.

Investment

(Reporting by Gilbert Kreijger; Editing by Erica Billingham)

Dutch insurer Eureko targets Turkey; mulls sales