Piraeus Bank Set to Acquire Majority Stake in National Insurance

Official announcements are imminent regarding the closure of the deal between Piraeus Bank and CVC Capital for the acquisition of a 70% stake in National Insurance. On February 6, Piraeus Bank announced it was in exclusive negotiations with CVC to acquire 70% of National Insurance for €469 million. The move aims to diversify Piraeus Bank’s revenue sources amid declining interest rates. Additionally, the bank intends to pursue the Danish Compromise mechanism, which allows banks to risk-weight their equity stakes in insurance companies instead of fully deducting them from their capital. This will reduce the capital impact on Piraeus Bank. According to the announcement on February 6, 2025, the completion of the potential transaction is expected to enhance and further strengthen the bank’s revenue sources, creating significant added value for shareholders. National Insurance is Greece’s leading insurance company, offering a full range of insurance products with a market share of approximately 14% (17% in life insurance and 11% in general insurance) and gross written premiums of €800 million in 2023. UBS Europe SE acts as the exclusive financial advisor, Milliman as the actuarial advisor, and Milbank LLP and Moratis Passas as international and domestic legal advisors for Piraeus Bank.