ATHENS: Piraeus Financial Holdings S.A. announced that its subsidiary, Piraeus Bank S.A., has entered into a Share Purchase Agreement (SPA) to acquire a 90.01% stake in the parent company of Ethniki Insurance from CVC Capital Partners Fund VII.
The deal, valued at €600 million in cash, aims to diversify Piraeus’ revenue sources and enhance value for shareholders. The acquisition is expected to complement Piraeus’ product range, covering banking, protection, and investment solutions.
The transaction is anticipated to boost Piraeus’ Earnings per Share (EPS) by approximately 5% and Return on Average Tangible Book Value (RoaTBV) by around 1 percentage point. It is also projected to elevate fee generation to international best-in-class levels while maintaining competitive cost efficiency.
Piraeus’ proforma total capital position is estimated at approximately 18.5% for 2025, with expectations to reach around 19.5% by 2027 and approximately 20% by 2028. Throughout this period, Piraeus’ CET1 ratio is expected to remain at 13% or higher.
Piraeus aims to achieve Financial Conglomerate (FICO) status and pursue the application of CRR article 49, known as the Danish Compromise, to improve its CET1 ratio by around 50 basis points.
Ethniki Insurance, a leading composite insurer in Greece, has a market share of approximately 14.5%, with 17% in life insurance and 11% in non-life insurance. The company reported more than €0.8 billion in Gross Written Premiums (GWP) for 2024, with total assets of €4 billion and shareholders’ equity of €0.4 billion as of 2023. Ethniki Insurance reported a profit before tax adjusted for non-recurring items of approximately €100 million in 2023.
The company’s production network extends throughout Greece, including owned sales network offices, corporate network insurance agents, collaborating insurance agencies, and brokers. The majority of Ethniki Insurance’s GWP is generated through these channels, with the remainder coming from its bancassurance channel.