Piraeus Bank Completes Acquisition of Ethniki Holdings
Piraeus Bank in Greece has wrapped up its acquisition of Ethniki Holdings S.à rl, the parent company of Ethniki Insurance, for €600 million (about $695 million). This move marks a significant development in Greece’s financial sector for the year.
The deal was finalized roughly eight months after the acquisition process began and follows approval from the Greek Competition Commission, which was granted about three and a half months ago.
Ethniki Insurance, formerly owned by CVC Capital Partners Fund VII and the National Bank of Greece (NBG), is now part of the Piraeus Bank Group. Shortly after the announcement, NBG noted that it had sold its remaining 9.99% stake in the insurance company to Piraeus Bank.
Details on the Acquisition and Capital Impact
This all-cash deal of €600 million is viewed as a strategic investment for Piraeus Bank. Post-acquisition, Piraeus Financial Holdings anticipates its capital adequacy ratio will hit about 19% by the end of 2025, maintaining a buffer of approximately 300 basis points over the required Pillar 2 standards.
NBG will receive €62.4 million ($72.2 million) for the minority stake it sold and expects to see a positive impact of around 10 basis points to its CET1 ratio, which stood at 19% at the end of the nine-month period.
Strategic Moves Following the Acquisition
The integration of Ethniki Insurance is seen as a key milestone for Piraeus Bank, allowing the organization to diversify its revenue sources and broaden its financial services. This acquisition enhances the Group’s capability to offer integrated banking, insurance, and investment solutions, which is increasingly crucial in today’s competitive financial landscape.
Ethniki Insurance, recognized as Greece’s largest and oldest insurance provider, services 1.8 million active customers. It holds a 14.6% share of the domestic insurance market, with life insurance making up 18.3% and non-life insurance 11.3%. In 2024, the gross written premiums reached €850 million ($984 million).
The company’s total assets are valued at €4.1 billion ($4.75 billion). Its profitability has also improved, with Ethniki Insurance reporting pre-tax profits of €14.8 million ($17 million) in 2024. Additionally, preliminary financial results for the first ten months of 2025 indicate pre-tax profits exceeding €30 million ($34 million). The company’s Solvency II capital ratio stood at 188% in 2024, well above the regulatory requirements.
