Piraeus Bank announced on Thursday it had agreed to sell 100% of ATE Insurance to ERGO Insurance Group, a subsidiary of Munich Re, for 90.1 million euros in cash, subject to customary net asset value adjustments upon closing.
In an announcement, Piraeus said the transaction is subject to regulatory approvals and is expected to be completed by the end of 2014.
ATE Insurance was acquired by Piraeus Bank in July 2012 as a part of its acquisition of the "good" part of ATEbank. ATE Insurance is the 5th largest property-casualty insurer in the Greek market and also offers life insurance products to its customers. It recorded premium income of 170 million euros in 2013, of which 130 million was in property-casualty.
The sale of ATE Insurance, Piraeus said, is an important element of the Bank's restructuring plan, which includes divestment from specific non-banking activities.
Anthimos Thomopoulos, CEO of Piraeus Bank, said, "Today Piraeus Bank has made a significant step forward in executing its strategy to gradually exit non-banking operations, redirecting its resources and management focus to core banking activities. The strong reputation and presence of ERGO in Greece and abroad, coupled with the existing long-standing bancassurance relationship between the two institutions, ensure the best prospects for ATE Insurance, its employees and its customers."
According to Dr Jochen Messemer, member of the Board of Management of ERGO Insurance Group, "This transaction is planned to serve as a base for continuing our long-standing relationship with Piraeus Bank. Bancassurance is today one of the most important sales channels of ERGO Hellas – it contributes more than one third to the premium income."