Piraeus Bank SA has successfully wrapped up its massive €600 million cash purchase of Ethniki Holdings Sarl, the owner of the hugely popular Ethniki Insurance. The deal, equivalent to approximately £515 million ($695 million), was officially completed after Piraeus secured the necessary shares from the sellers: global investment firm CVC Capital Partners Fund VII and fellow Greek bank, the National Bank of Greece (NBG). This transaction immediately positions Piraeus Bank as a dominant force in both the Greek banking and insurance sectors, creating a truly integrated financial services giant.
For the public, this means Piraeus’s millions of customers will soon be offered a much wider range of financial products, integrating banking and insurance seamlessly. Ethniki Insurance, a well-established brand in Greece, provides a comprehensive portfolio of services covering everything from life and health policies to home and car insurance. The acquisition is a game-changer because it allows Piraeus to capture the valuable insurance premium market directly through its existing customer channels. This is strategically vital for Piraeus, as increasing income from non-lending activities is a key strategy for major European banks in the current environment.
NBG’s decision to sell its stake is part of its ongoing plan to simplify its business model and focus purely on core banking services. Meanwhile, CVC’s investment is now concluded, netting them a significant return. The transaction had to pass rigorous checks by financial regulators, including the central banks, ensuring the deal would enhance competition and financial stability, not hinder it. Following the completion, attention has turned to the integration process. Piraeus is tasked with merging the two large operations, which is expected to generate significant cost savings and improve efficiency. This €600 million investment is a powerful vote of confidence not just in Piraeus Bank’s future, but in the sustained recovery of the entire Greek economy. The combined entity is now expected to lead the way in offering innovative and unified financial solutions to the Greek public.