Allianz, Munich Re’s Ergo Said to be in Talks to Buy Greek Insurer Agrotiki

June 18, 2014

Allianz SE, Europe’s largest insurer, and Munich Re’s primary insurance unit, Ergo Versicherungsgruppe AG, are in talks to buy Agrotiki Insurance from Greece’s Piraeus Bank SA, said three people familiar with the matter.

The price of Agrotiki, also known as ATE Insurance, is estimated at €60 million [$81.5 million] to €80 million ($108.65 million), according to one of the people, who asked not to be identified because the talks are private.

Piraeus, Greece’s second-biggest bank by assets, raised €1.75 billion [$2.377 billion] from foreign investors in March, after a stress test conducted by the country’s central bank identified a capital shortfall of €425 million [$577.2 million].

It also sold €500 million [$679 million] of three-year bonds on March 18 in the first public debt sale from a Greek lender since 2009. Greece’s central bank said in March banks needed to boost their capital by €6.38 billion [$8.665 billion] following six years of recession and the country’s financial crisis.

The deal could close at the end of this month, Greek newspaper Kathimerini reported today, without saying how it obtained the information. ATE Insurance’s net revenue last year was €39.5 million [$53.65 million], up from €26.5 million [$36 million] the year before, the paper said.

Munich-based Allianz agreed to buy Milano Assicurazioni SpA assets from Unipol Gruppo Finanziario SpA for €440 million [$597.6 million] in March.

 

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