Quick Sigorta maintains its leadership position in financial insurance with new products. For the first time in the history of Turkish capital markets, a security has been issued with insurance coverage. The issuance was conducted on 5 November 2020, and rose 15 million TL funding. Issued under the code TRPPAMFK2120 ISIN, the asset-backed security (VDMK) was issued with one-year term. “In accordance with the strategy of our Ministry of Treasury and Finance to grow in non-bank areas and with the aim of reinforcing capital markets, we plan to provide support for companies who have not been able to reach capital markets for several reasons. In doing so, the companies will be able to diversify their resources to fund themselves. Corporate investors in Turkey have an overal fund size of billions of TL; however, thousands of companies in our country cannot reach those funds due to lack of trust between fund owners and companies who need funding. This is where Quick Sigorta comes into the picture, and ensures that investments are funded through capital markets by insuring securities,” said Ahmet Yaşar, CEO of Quick Sigorta.
Quick Sigorta targets Corporate Bond (ÖST) and Asset-Backed Securities (VDMK) market
Quick Sigorta has pioneered many innovative products in financial insurance area throughout 2020. During 2020, the company has continued to support the economy and investments by providing guarantee and insurance for various different markets such as public contractors, licensed warehouse companies, oil companies, construction companies, and retail companies through bond insurance, invoice protection insurance and building completion insurance products. With their latest product in financial insurance line - bond insurance for ÖST and VDMK investment tools - Quick Sigorta has started providing insurance for capital markets. Stating that 114 million TL worth of corporate bonds were issued in the first 6 months of 2020, Ahmet Yaşar said nearly 90% of them were issued by banks and their subsidiaries. He added that the size of issuances cannot be expanded except for the banking market, and added that they would support companies who have not been able to access capital markets. He said that corporate bonds market might grow via issuances of corporate bonds and asset-backed securities by those companies.
Quick Sigorta will close 2020 with an asset size of 2.6 billion TL and an equity size of 650 million TL
Ahmet Yaşar said that Quick Sigorta would be one of the 10 largest companies of Turkish non-life insurance market at the end of 2020 with an asset size of 2.6 billion TL and an equity size of 650 million TL. Stating that they aimed to use those assets to fund capital markets, fund owners and companies that need funds; Ahmet Yaşar said the guarantee they would provide for capital markets might reach 300 million TL in 2021, depending on the demand.
Insurance market might provide billions of TL worth of guarantee to capital markets
Ahmet Yaşar stated that insurance market should contribute to the target of bringing new actors in capital markets during 2021. “We will insure the issuance of 300 million TL worth of capital market tools on our own. Therefore, companies that did not have a chance to access markets earlier will be introduced to capital markets. If we can build a co-insurance structure with other non-life companies, the guarantee amount can reach a few billion TL. To that end, we are ready to lead the market and let them use our know-how in this area,” he said.