Latest news with #ChristosMegalou
Yahoo
07-02-2025
- Business
- Yahoo
Greece's Piraeus confirms talks to buy 70% stake in Ethniki Insurance
Greece's Piraeus Financial Holdings has agreed to enter 'exclusive discussions' with CVC Capital Partners' Fund VII (CVC) to potentially acquire a 70% share in Greek company Ethniki Insurance. This transaction is valued at €469m and is expected to diversify Piraeus' revenue streams. The proforma impact on Piraeus' capital position is estimated at nearly 150 basis points (bps) as of September 2024, with a Pillar 2 Guidance buffer of more than 200bps. Ethniki Insurance, a composite insurer in Greece, has a market share of around 14%. It reported adjusted pre-tax profit for non-recurring items of around €100m and gross written premiums of €800m in 2023. As of 2023, the insurer's assets totalled €4bn and shareholders' equity was €400m. The company's network includes nearly 130 sales network offices and more than 1,600 corporate network insurance agents, supported by a network of six branches. Piraeus is considering the adoption of the Danish Compromise for the prudential treatment of its potential share in Ethniki Insurance. If finalised, this would reduce the capital impact of the acquisition to below 100bps. Piraeus received financial advice from UBS Europe, with Milliman providing actuarial advice. Legal counsel is being provided by Milbank and Moratis Passas Law Firm for international and local legal matters, respectively. CVC Capital acquired a 90% stake in Ethniki Insurance from National Bank of Greece. Piraeus CEO Christos Megalou informed journalists that the bank "is in discussions to buy National Insurance", further noting that if an agreement is finalised, it will enable the group to boost its fee revenues to 30%, up from the current 20%, reported Reuters. "Greece's Piraeus confirms talks to buy 70% stake in Ethniki Insurance " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
06-02-2025
- Business
- Reuters
Piraeus in exclusive talks with CVC to buy 70% of Greek insurer Ethniki
ATHENS, Feb 6 (Reuters) - Piraeus Financial ( opens new tab, one of Greece's four largest banks, said on Thursday that is in exclusive talks with CVC Capital Partners ( opens new tab to acquire 70% of Ethniki Insurance. Piraeus CEO Christos Megalou told journalists earlier this week that a possible acquisition of Greece's second largest insurer would help it raise fee revenues to 30%, from about 20%. "We agreed ... to proceed with exclusive discussions regarding the potential acquisition by Piraeus of a 70% stake in Ethniki Insurance for 469 million euros ($485.84 million)," the bank said in a stock exchange filing. CVC, which manages assets worth 191 billion euros, bought a 90% stake in Ethniki from National Bank ( opens new tab in 2021. Greek banks are returning to normal activities after three recapitalisations that led to their nationalisation after the country was rocked by a financial meltdown in late 2009. Having cut bad loan ratios and returned to profitability, they received European Central Bank approval last year to resume dividend payments for the first time in 16 years. Piraeus, which was fully privatised last year, expects net profit of 1 billion euros for 2024 and plans to return 35% of its profit to shareholders. It has hired UBS as a financial adviser and Milliman as an actuarial consultant for the Ethniki transaction. ($1 = 0.9653 euros)
