CVC Capital Partners is divesting from Ethniki Insurance with a return of almost 100%, valuing the insurer at 670 million euros, against €505 million it was valued at when it was acquired from National Bank.
Last week it became official that CVC Capital Partners is in exclusive talks with Piraeus Bank for the concession of 70% of Ethniki for €469 million.
The almost double return is not only a result of the higher valuation: It is mainly a consequence of the conditions that were set in the agreement with National Bank regarding the achievement of the goals of the 2022-26 business plan that had been agreed upon, specifically regarding the result from the sale of bancassurance products, the losses that existed in the old health portfolio, as well as the amount of €130.5 million that CVC received in the form of a return of capital in the two years 2022-23.
Given that most of these conditions, such as achieving specific profitability targets for bancassurance products, have not been met and that the old health insurance portfolio is accumulating serious losses – in 2023 it recorded losses of €85 million – the fund has eventually paid only part of the agreed price.