How the insurance company market has changed and who are the major players

In the last three years, significant changes have occurred in the private insurance sector. The solvency index of insurance companies, which is one of the highest in Europe, the growth margins in the market, and the current economic climate in Greece, have attracted the interest of large groups and foreign funds, seeing significant opportunities in the insurance sector.

Both in the health and general insurance sectors, the penetration of major foreign players in the Greek insurance market is unprecedented, thereby increasing competition and the growth of companies.

Recently, Ioannis Votsaridis, Chairman and CEO of Interlife, the only insurance company listed on the Athens Stock Exchange, emphasized that Greek insurance companies are a magnet for foreign companies, which are continuously seeking acquisitions.

The growth potential of the insurance market in Greece is huge, which is why foreign companies are 'joining the dance' of acquiring stakes in Greek insurance companies or even 100% acquisitions.

The Hydrogios-Reale Mutua Deal

The latest typical case of a Greek insurance company being taken over by a large foreign insurance group was that of Hydrogios Insurance of the Laskarelis family by the Italian Reale Group.

Hydrogios is a company with 50 years of history and has a large share mainly in the automotive sector. The deal requires the acquisition of 70% by the end of 2023 and the remaining 10% by the end of 2026.

One of the main reasons Reale was interested in Hydrogios was that it has a strong presence in the Greek territory mainly in car contracts. The goal is to further grow the company by launching new products mainly in health and pensions, where Hydrogios expects to become competitive.

When CVC joined National Insurance

One of the most significant deals in recent years in the Greek insurance market, which made a lot of noise when it emerged, was the acquisition of National Insurance by Alex Fotakidis' CVC fund.

The news was announced in April 2022, with the European Commission's Directorate-General for Competition, after several months of reviewing the deal, finally giving the green light for it to proceed.

The price amounted to €355 million, with CVC acquiring 90.01%, with the remaining stake staying with the National Bank of Greece.

Now, National Insurance, in terms of premium production, is ranked second among all insurance companies and under the guidance of new CEO Robert Gauci, is undergoing a transformation phase.

The Germans of Allianz acquire Europa?ki Pisti

Seven months ago, the legal merger of Allianz and Europa?ki Pisti was formally completed.

The acquisition was completed in the summer of 2022. The offer from the Germans of Allianz was estimated at €7.8 per share, valuing European Credit at €207 million.

Through the acquisition of Europa?ki Pisti, the Germans of Allianz intend to strengthen market shares in both the non-life and life insurance sectors.

In August 2022, Allianz's stake in Europa?ki Pisti increased from 88.54% to 97.21%. Following the acquisition, Christos Georgakopoulos took over as CEO.

The Allianz Single-Member Limited Liability Mutual Fund Management Company, resulting from the legal merger of Allianz AEDAK and Europa?ki Pisti Asset Management, now has a single portfolio under management worth approximately €1 billion.

When NN joined Metlife

About two years ago, the Dutch company NN proceeded to acquire Metlife, disbursing an amount close to €170 million.

The European Commission's Directorate-General for Competition approved the deal to acquire MetLife's business operations in Greece and Poland. For both countries, the total price amounted to €584 million.

The aim was to make NN Hellas the largest insurer in Greece. Indeed, based on premium production, NN Hellas was the largest insurer in Greece in 2022, with gross written premiums of €884.4 million.

Prem Watsa in Eurolife

However, before all these significant deals took place, in 2015, entrepreneur Prem Watsa saw a great opportunity in Greece and acquired 80% of Eurolife for a price of €316 million.

This was the first time a Greek insurance company was controlled by an investment fund.

The investment by FairFax's boss is considered highly successful, as it has already amortized its initial investment.

The transaction involved all of Eurobank's insurance activities, namely Eurolife Insurance in Greece, its subsidiary in Romania, and its insurance brokerage company in Greece (now Designia Insurance Brokers).

Ergo in Greece

In the summer of 2016, the large German insurance company proceeded to acquire ATE Insurance for €90 million.

Ergo Insurance also acquired DAS Hellas, with the merger of the two companies completed in July 2020.

In 2022, Ergo ranked seventh among insurers in Greece, with total premium income of €255.3 million.

Generali in AXA

In May 2021, following approval by the Competition Commission and the Bank of Greece, it was announced that the Italians of Generali (ASSICURAZIONI GENERALI Società per Azioni) were acquiring AXA Greece for €165 million.

In 2022, Generali Hellas showed total premium income of €477.6 million.