According to a June 27 report by Kathimerini, the board of the National Bank of Greece (NBG) has approved the sale of a majority stake in Ethniki, the group's wholly-owned insurance subsidiary, to the US -Dutch consortium Calamos-Exin. NBG is selling the insurance unit as part of an EU-approved restructuring plan to exit non-banking businesses and focus on core banking operations.

        A banker close to the deal said: "The board gave the deal the green light." He did not disclose details of the agreed sale price or other terms. Detailed information is expected to be announced at the bank's annual general meeting on Friday.

        Calamos Investments of the United States, which manages US$20 billion, together with Exin Partners, an insurance, reinsurance and asset management investment firm based in the Netherlands, is bidding for at least a 75% stake in Ethniki Insurance.

        Three Chinese companies - Shanghai Fosun Group, Gongbao Investment Group and Yongtai - had been tracking and interested in the project, but ultimately lost out to Calamos-Exin.

        Founded in 1891, Ethniki Insurance is Greece's oldest insurance company, offering life and non-life insurance products.

        The company held a 16.6% market share last year and posted a net profit of 98 million euros in 2015.

        John Koudounis, CEO of Calamos Investments, told Reuters last month that Calamos-Exin submitted an offer that was hard to match, but he provided no details. He said other Greek-American investors closely following the project are also interested in Greece.

        The Hellenic Financial Stability Fund (HFSF) owns a 40% stake in the National Bank of Greece, which will seek shareholder approval for the transaction at its annual general meeting this Friday.

Source: Website of the Ministry of Commerce  2017-06-29