A series of changes in the insurance market – of a structural nature, in which at least three large companies in the sector and probably one even smaller one will be involved – is expected to be caused following the acquisition of Ethniki Insurance by Piraeus Bank.
This is undoubtedly a deal whose aftermath will affect a wide segment of private insurance.
First of all, the aforementioned acquisition creates a large gap, which National Bank will have to fill in the private insurance sector and in general in the financial transactions sector.
This fact alone will cause intense mobility in the sector, which, according to senior officials with whom “N” spoke, will involve at least three companies. In particular, they mentioned ERGO Insurance and NN, which currently have exclusive bancassurance cooperation contracts with Piraeus Bank, the first in General Insurance and the second in Life Insurance.
It is almost certain that these two companies will terminate their cooperation with Piraeus Bank, to the extent that there is no positive surprise from the bank, and will seek a new cooperation with a banking group, most likely by approaching, if they have not already done so, National Bank, with the aim of “replacing” the contracts they currently have with Piraeus Bank.
The same circles reported that Allianz, which currently does not have a strong bancassurance “arm”, could do the same, seeking a strategic cooperation with National Bank.
All of the above are scenarios that, according to market executives, will be evaluated by the insurance companies involved. Provided, of course, that National Bank will not seek some kind of acquisition of a small insurance company, which it will use as a “vehicle” for its return to insurance operations through a subsidiary.
Cooperation clauses
However, it should be noted that in addition to the amount of 600 million euros that Piraeus Bank will be required to pay to CVC and National Bank for the acquisition of 100% of the equity of Ethniki Insurance, it will also be obliged to cover the breach of the exclusive cooperation clauses of both the company to be acquired with Piraeus Bank and its two insurance partners ERGO and NN.
The brand
Another question that remains to be answered is whether Piraeus Bank will retain the “Ethniki Insurance” brand, recognizing its history and importance, or will choose to gradually replace it with its own brand, expressed in insurance terms.
Senior executives of Ethniki Insurance with whom “N” spoke clarify in principle that the Ethniki Insurance brand belongs to the company itself and is therefore under its ownership, so – according to the same executives – it is considered certain that the bank will not want to give up the surplus value that the brand in question currently brings to the consciousness of the average Greek insured.
Finally, a crucial issue for the company itself is whether, in the time required to complete the required institutional approvals and legal processes, it will withstand the pressures of competition, keeping its production and sales network intact.
Market circles estimate that the approval and execution processes of the deal will be completed around the end of 2025.
