Piraeus Bank Set to Acquire Ethniki Insurance from CVC

Piraeus Financial Holdings S.A., through its subsidiary Piraeus Bank S.A., has entered into a Share Purchase Agreement to acquire a 90.01% stake in Ethniki Insurance from CVC Capital Partners Fund VII for €600 million in cash. This transaction aims to diversify Piraeus' revenue and enhance shareholder value by expanding their product offerings across banking, protection, and investment solutions. It is expected to increase earnings per share by approximately 5% and improve the return over average tangible book value by around 1 percentage point. The transaction will strengthen the bank's fee generation capabilities to an international standard, while maintaining cost-efficiency. The acquisition also aims to achieve a Financial Conglomerate status and apply CRR article 49 for prudential treatment, potentially expanding Piraeus’ CET1 ratio by 50 basis points. Ethniki Insurance, a leading Greek insurer with a significant market share, reported solid financial figures, including €4 billion in total assets and €0.4 billion in shareholders' equity in 2023. The transaction is poised to enhance Piraeus's capital position significantly over the coming years.