GREECE: The ETHNIKI investor to include in contract a target clause

20 October 2020 — Andrei Victor
National Bank of Greece is in advanced talks with CVC Capital Partners about the sale of ETHNIKI Insurance - the largest insurance company in Greece. The value of the transaction of sale of 80% of Greek insurer - mentioned by media is around EUR 460-480 million.

Local media wrote that the current negotiations focusing on a special clause to be inserted into the sale contract that will provide for the return of part of the price to be paid if the insurer does not meet its target in bancassurance activity, Kathimerini informed.

"Sources say NBG and CVC are debating the targets and the value of the activity of selling insurance products through the bank's branch network, based on which this significant activity of Ethniki will be assessed. Given the dramatic slump in Ethniki's bancassurance in the year's first half due to the pandemic, CVC is setting strict conditions and sources say the final contract will include a clause providing for a capital rebate if the specific targets set are not met".

NBG is trying to sell ETHNIKI Asfalisitiki for years to shore up its capital buffers.

XPRIMM covered the story of ETHNIKI sale since 2016. Below you can find our materials on this subject:

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