CVC considers sale of 70% stake in Greek insurer Ethniki

By Rebecca Delaney

Feb 10 - (The Insurer) - Private equity firm CVC Capital Partners has entered into exclusive discussions with Piraeus Financial Holdings for the latter to acquire a 70 percent stake in Ethniki Insurance for €469mn ($483.7mn).

Upon completion of the proposed transaction, Greek multinational financial services firm Piraeus said it expects to diversify and further strengthen its revenue pool.

The pro forma impact on Piraeus' capital position is estimated at approximately 150 basis points as at September 2024, which translates into a capital ratio with a Pillar 2 guidance buffer of more than 200 basis points.

Piraeus added that potential adoption of the Danish Compromise would reduce the capital effect of the potential transaction to below 100 basis points.

Ethniki Insurance is a Greek composite insurer with a ~14 percent market share (~17 percent in life, ~11 percent in non-life). According to its most recent reports, Ethniki posted €0.8bn in gross written premiums for 2023, with €4bn total assets and €0.4bn in shareholders equity.

Ethniki's production network across Greece consists of around 130 sales network offices with more than 1,600 corporate network insurance agents and 1,100 collaborating insurance agencies.

Piraeus is being advised on the potential transaction by UBS Europe SE as exclusive financial advisor and Milliman as actuarial advisor. Milbank LLP and Moratis Passas are acting as international and local legal counsels, respectively.

Piraeus said it will "promptly inform the investment community" if the transaction is approved.