Piraeus Financial Holdings has agreed to enter into exclusive discussions with CVC Capital Partners’ Fund VII to potentially acquire a 70% stake in CVC’s Ethniki Insurance for €469 million.
Ethniki Insurance is a Greek composite insurer covering the whole spectrum of insurance products with a c.14% market share (c.17% in life / c.11% in non-life) with €0.8 billion gross written premiums, €4 billion total assets and €0.4 billion shareholders’ equity, as of 2023.
The insurer reported a profit before tax adjusted for non-recurring items of approximately €100 million in 2023.
Its production network extends throughout Greece and consists of c.130 sales network offices with nearly two thousand corporate network insurance agents, a thousand collaborating insurance agencies and c.135 collaborating insurance brokers, supported by a network of 6 branches, as of 2023.
After completing the potential transaction, Piraeus expects to diversify and strengthen its revenue pool delivering significant value uplift to its shareholders.
Piraeus is being advised on the Potential Transaction by UBS Europe SE as an exclusive financial advisor, and Milliman as an actuarial advisor.
Meanwhile, Milbank LLP and Moratis Passas Law Firm serve as international and local legal counsels, respectively.
