Slovenia domiciled reinsurance firm Sava Re has agreed to acquire life insurer NLB Vita from its parent companies, Nova Ljubljanska banka (NLB) and KBC Insurance NV (KBC).
Both NLB and KBC will sell their respective stakes in the 50/50 joint venture, which is also based in Slovenia.
In doing so, KBC will completely withdraw its business from the country, which it considers to be a non-core market.
At the same time, NLB is fulfilling its last commitment towards the European Commission with regard to the state aid proceedings.
The transaction remains subject to regulatory approvals, and is expected to close in the second quarter of 2020.
Marko Jazbec, Sava Insurance Group CEO, commented on the deal: “At year-end 2018, NLB Vita was the second largest life insurance company in the Slovenian market, with a market share of 14.8%.”
“The competitive advantage of NLB Vita lies in its combined know-how and experience drawn from both NLB and KBC, which provides a solid foundation for the development of a strong bancassurance partnership.”
Jazbec continued: “NLB Vita will offer the Sava Insurance Group further potential to diversify its Slovenian insurance portfolio with life insurance products. In this segment we see a penetration gap compared to other developed EU insurance markets and, thus, an opportunity for future organic growth.”
“With NLB remaining the most important distribution channel of NLB Vita, we will also build on the strong bancassurance partnership between the two groups.”
Johan Thijs, KBC Group CEO, further stated: “We welcome today’s agreement with Sava Re. The deal, which will have a negligible impact on KBC Group’s results, fits in perfectly with our strategy to focus on our core markets. This focus lies on retail clients, small and medium sized enterprises and midcaps in Belgium, the Czech Republic, Slovakia, Hungary, Bulgaria and Ireland.”
“We are convinced that, with the support of its new owner, NLB Vita will be able to successfully continue developing its business activities.”
Blaž Brodnjak, President of the NLB Management Board, added: “This is the final step on our path to fulfil all of the commitments imposed by the European Commission and represents an important milestone, which ultimately will enable us to start operating and competing on the market with our full potential.
“We believe that we have found the right strategic partner for NLB Vita – a partner who will continue its successful business story, as evidenced by its results and efficient sales,” Brodnjak remarked.
“As has been our objective all along, NLB will continue to play a role in this story, with our extensive and competitive distribution network remaining the main channel for NLB Vita products. All this will undoubtedly bring added value not only for the new owner, but also for NLB Vita and, most importantly, for its clients.”
