Turkiye Sigorta shares fall 18% as CEO and deputy arrested in fund probe

Turkiye Sigorta shares dropped 18% in two days after the arrest of CEO Taha Cakmak and deputy CEO Gurol Sami Ozer, according to Anadolu Agency. The arrests are part of a wider investigation into alleged market manipulation involving Turkish investment funds. Turkiye Sigorta, majority-owned by Turkey’s sovereign wealth fund, has seen its stock fall to a two-year low. The company postponed its third-quarter results and announced the firing of Ozer following Cakmak’s resignation.

Local media allege Turkiye Sigorta steered cash into funds run by Tera Portfoy Yonetimi, now at the centre of the scandal. Prosecutors say 88 suspects have been arrested so far as authorities try to contain the crisis, which has affected stock and bond markets. Cakmak’s lawyer has denied any wrongdoing and plans to appeal.

Turkiye Sigorta, formed in 2020 from state bank subsidiaries, quickly became the largest insurer in Turkey. Its shares had surged over 500% since Cakmak’s appointment in 2023 before the recent collapse. The scandal has raised concerns about oversight and transparency in Turkey’s financial sector, especially for firms with state backing.

Insurers and financial institutions should monitor developments, as further regulatory action or market volatility could follow.