Greece-based lender Piraeus Bank has reached an agreement to dispose 100% of ATE Insurance to ERGO Insurance Group, a subsidiary of Munich Re, as part of plans to boost its balance sheet.

Under the terms of the agreement, the cash-strapped Piraeus will receive a total consideration of €90.1m in cash, subject to customary net asset value adjustments upon closing.

The transaction is likely to complete by the end of 2014, pending receipt of the concerned regulatory approvals.

Piraeus Bank is majority owned by Greece’s bank bailout Hellenic Financial Stability Fund (HFSF).

Commenting on the deal, Piraeus Bank CEO Anthimos Thomopoulos said: "Today Piraeus Bank has made a significant step forward in executing its strategy to gradually exit non-banking operations, redirecting its resources and management focus to core banking activities.

"The strong reputation and presence of ERGO in Greece and abroad coupled with the existing long-standing bancassurance relationship between the two institutions ensure the best prospects for ATE Insurance, its employees and its customers."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Piraeus Bank acquired ATE Insurance in July 2012, as a part of its acquisition of the "good" part of ATEbank.