Arex Sigorta Raided in 8 Provinces, 30 Detention Orders Issued

Acting on a tip-off from SEDDK (Türkiye's insurance and pension regulator), the Istanbul Anatolian Chief Public Prosecutor's Office launched simultaneous raids in 8 provinces against Arex Sigorta A.Ş. (an insurer based in Türkiye) in December 2025. As part of the investigation, a trustee was sought for the company.

In a statement that shocked the sector, the prosecutor's office announced that a comprehensive investigation was being carried out against Arex Sigorta and connected suspects. The company, whose operations SEDDK had previously suspended, is alleged to have made unjust gains through suretyship insurance transactions.

"Exorbitant charges under the name of suretyship insurance"

In its statement, the prosecutor's office gave striking details of the investigation. The methods alleged against the suspects were listed as follows:

• Financially struggling companies were targeted: Suspects within the company were found to have approached firms in financial difficulty under the name of "suretyship insurance contracts."
• Exorbitant charges beyond the premium: Under these contracts, payments at exorbitant amounts beyond the legal premiums were found to have been collected.
• Affiliated agencies involved: It was alleged that unjust gains were obtained by manipulating the premiums on policies through agencies connected to the company.

Simultaneous raids in 8 provinces: 18 in custody

The prosecutor's office conducted simultaneous raids in 8 provinces against 30 suspects for whom detention had been ordered as part of the investigation. Searches and seizures were carried out during the raids, and 18 people were caught and taken into custody; the prosecutor's office said efforts were continuing to catch the remaining 12 suspects at large.

One of the most critical developments in the process concerned the company's management: the prosecutor's office requested that a temporary measure be applied to Arex Sigorta, whose operations had already been suspended, by appointing a trustee through the Criminal Court of Peace. According to the prosecutor's office statement, the investigation was continuing on multiple fronts.

What is suretyship insurance?

Suretyship insurance, the focus of the investigation, is a line of business used as an alternative to bank letters of guarantee in tenders, contracts and debt relationships, under which the insurance company provides the creditor with cover against the risk that the debtor will not fulfil its obligation. Because it is a product sought by financially strained firms that struggle to obtain a letter of guarantee, it requires strict oversight against attempts at abuse of the kind alleged here.

Background: licence revoked in April 2025

Arex Sigorta's problems with the regulator are not new. SEDDK had revoked the company's operating licence in the suretyship line on 10 April 2025 and removed its authority to issue new policies in all lines; the company had said it would take the decision to court. At the time, the suspension decisions had drawn wide attention in the sector among agencies and policyholders, and agency associations had said they were following the process closely.

Source: public statement by the Istanbul Anatolian Chief Public Prosecutor's Office.