Greek financial services company Piraeus Financial Holdings is vying for National Insurance, aiming to bolster its fee revenue, reported Reuters, citing Piraeus CEO Christos Megalou.
Speaking at a press conference, Megalou told journalists that Piraeus “is in discussions to buy National Insurance” from CVC Capital Partners.
Private equity firm CVC Capital currently holds a 90% stake in National Insurance.
This move aligns with the Greek lender’s strategic goals to enhance its revenue streams.
CVC Capital, with assets under management worth €191bn ($197.58bn), acquired the majority stake in National Insurance from National Bank in 2021.
Megalou was cited by the news agency as saying that the potential deal could boost the bank’s fee income to 30%, up from the current 20%.
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By GlobalDataIn a filing with the stock exchange, Piraeus confirmed that “its assessment regarding the investment in National Insurance is ongoing and thus there is no definitive agreement for a potential transaction.”
Piraeus, which achieved full privatisation last year, is projecting a net profit of €1bn for 2024 and plans to distribute 35% of these earnings to its shareholders.
This is indicative of the broader recovery trend among Greek lenders, who are emerging from a period of financial turmoil marked by three recapitalisations and nationalisation in the past decade.
Last year, the European Central Bank granted approval for Greek banks to resume dividend payments, for the first time in 16 years.
