Scenarios for Sale of National Insurance & ATE Insurance

Scenarios for Sale of National Insurance & ATE Insurance

The capital increase that will be needed for insurers under the control of the state-owned banks, National Bank and Agrotiki Bank, particularly after their participation in the restructuring of the Greek debt through government bonds, is likely to result in their sale.

Given their good market position and their cooperation with parent banks’ networks, they comprise a target for multinational insurance groups already active in the Greek market.

Also, parent banks through this process will avoid the burden of the generous fund increase that will be required, since both insurers report losses in the first half of 2011 due to their participation in the PSI.  Specifically, National Insurance suffered a 103 million Euros loss for the first half of 2011from participating in the voluntary exchange program (PSI). ATE Insurance write-offs, from participating in the PSI, are 74.3 million Euros, resulting in losses for the first half of 2011. Particularly, losses are estimated to reach 64.8 million Euros.

For National Insurance, the market leader, it is believed that in a potential sale scenario, multinational groups already operating in the Greek market would take a greater interest in the company.

Click here for the Greek article.

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