Negotiations between Piraeus and CVC for the acquisition of Hellenic General Insurance are underway, according to the bank's CEO, Christos Megalou, at a press conference.

The aim, through the planned acquisitions, is to boost commission income in absolute terms and as a percentage of total organic income. It is recalled that the bank announces results on 24 February, and it is estimated that a binding offer is likely to be made by then, if the discussions are successful. Thereafter, it will take approximately one year to complete the transaction.

SCANNING

At the same time, Piraeus is also expected to make new acquisitions and synergies as it scans the market for opportunities. The aim is to contribute to earnings and strengthen the bank's capital structure. The areas of interest are asset management, the financial sector and insurance companies. 

THE OUTLOOK

National Insurance's figures have some positive and some negative points. Customers exceeding 1.7 million, profit margins and growth in the domestic insurance market are among the positives. On the flip side, the losses it is experiencing as a result of natural disaster claims, the cost of old health policies, and inflation are highlighted.

THE MARKET IS GROWING

In general, however, the insurance market is in a growth phase. Already major players have entered because they see scope for growth and increased profits. Health policies, pension plans and investment products are experiencing strong growth against the background of the need for better health benefits and greater security when customers retire. 

THE CVC

Finally, the timing also appears to be positive for CVC, which acquired 90% of the company in 2021. Market participants explain that the investment cycle for funds spans 3 to 5 years. CVC has partially transformed the insurance company, and it looks like it is time to reap the rewards.