The insurance market is awaiting the announcements of National Bank and Piraeus Bank regarding their intentions in the bancassurance sector.
National Bank is reportedly ready to announce its new partners in private insurance, while Piraeus Bank is redesigning the development strategy of Ethniki Insurance, as it will soon come under its absolute control.
The moves of the two banks are also of great interest for private insurance, as they manage premiums of around 0.5 billion euros, while the decisions they will make involve at least five large insurance companies at this stage based on the information in the sector. Of course, the two banking groups are keeping their cards closed regarding what they are planning.
Scenarios for the next day
Sources of “N” reported that National Bank is already in consultation with NN, in order to conclude a multi-year bancassurance agreement, while examining the possibility of acquiring a minority stake in the company around 30%-35%. In order to meet its needs in the General Insurance sector – since, as is known, NN does not operate in this field – the same sources noted that National Bank is in negotiations with Interamerican, with which it had already started similar discussions, before the beginning of the summer, while, according to other sources, contacts are also being made with Allianz for General Insurance.
There is, however, information according to which the National Bank would be interested in developing a multi-channel system for distributing insurance products from its network.
As for ERGO, whose contract with Piraeus Bank will be terminated, it seems to be in search of a new banking partner. According to information, a “window” for consultation with the National Bank has opened, so it remains to be seen how it will fill or if it will fill the gap that will be created in its production by the termination of its cooperation with Piraeus Bank. It should be noted that the other two systemic banks have agreed with insurance partners, and one also has a shareholding partnership, so it would be difficult for ERGO to conclude a new bancassurance contract of a similar scope to the one it currently has.
Meanwhile, negotiations are ongoing in Greece’s new bancassurance map and the new contracts of National Bank, given that powerful players in the insurance market are striving to get a “position” in one of the strongest banking networks in the country. It is not unlikely that there will be surprises, capable of causing a general domino of developments in the insurance market. Much will also be judged by whether National Bank will want to acquire a shareholding partnership with its new partners in the insurance market or its new partner, provided that the planned partnership involves a company with activity in both main insurance sectors.
The value of the portfolio
Market sources estimated that Ethniki Insurance, through the National Bank network, generates a retail value of 80 million euros, to which sales of single premium products should be added, increasing its revenues to a greater extent, whenever similar products are placed on the market.
On its part, NN is reported to have developed a bancassurance activity (Life insurance) with Piraeus Bank, which exceeds 300 million euros in value, and ERGO’s activity in General Insurance is estimated at 150 million euros.
As far as NN is concerned, its biggest bet will be to achieve with its new banking partner the high performance it develops with the Piraeus network.
