Saturday Jan 31, 2015 Search
Weather | Athens
16o C
13o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Banks’ share increases spare them from Eurolife, Ethniki sale

By Evgenia Tzortzi

The successful share capital increase of Eurobank and the forthcoming one of National are changing the lenders’ plans for the sale of EFG Eurolife and Ethniki Insurance respectively.

Both groups have reportedly decided to hold on to their insurance subsidiaries for the time being, with the next decision to be made this fall after the publication of the stress tests by the European Central Bank that will determine what capital requirements the credit sector may still have.

Both National and Eurobank appear to have secured a grace period for the sale of their insurance subsidiaries. The management of National appears to have ensured the exception of the sale of Ethniki Insurance from the restructuring plan it has submitted to the Bank of Greece following negotiations with competition authorities in Brussels. The view that Ethniki is a crucial arm of the NBG group has gained ground and the insurer has returned to profits, while its sale would not have brought any notable revenues to the parent group. Moreover, changes to the social security system expected in fall are certain to lead to developments in the Greek insurance sector.

Almost the same arguments were used to avert the sale of Eurolife by Eurobank. The insurer has high profits and has consistently bolstered the group’s results since it was founded. The attraction of strong investors to the Eurobank share capital increase is seen to be shielding the insurance company and new stakeholders will have every reason to keep Eurolife in the group given its contribution to earnings.

Therefore, the plan for the sale of the insurance arms of major bank groups is for now restricted to the sale of the former ATEbank subsidiary, Agrotiki Insurance, which forms part of the Piraeus Group. Its sale is expected to be concluded by the end of this month. Piraeus intends on staying in the insurance market only through its holding in listed European Reliance, and has already reached exclusive agreements for the sale of life and general insurance products with Dutch ING and Germany’s Ergo.

ekathimerini.com , Sunday May 4, 2014 (18:31)  
Increase in minimum salary is left aside for now
Decline in euro rate has exporters eyeing growth in 2015
TAIPED is stripped of its management and most projects
Tourism to build on last year’s massive growth
Judges´ report on Golden Dawn case expected next week
A final decision by the Council of Appeals Court Judges weighing the merits of the case against ultranationalist party Golden Dawn is expected next week, marking the final step for the case ...
Karamanlis, Bakoyannis discuss ND´s future
Ex-Foreign Minister Dora Bakoyannis remained tight-lipped on Friday after an hourlong meeting with former Prime Minister Costas Karamanlis as New Democracy continues to absorb the impact fro...
Inside News
BASKETBALL
Panathinaikos preserves perfect home record
After yet another great performance at home, Panathinaikos defeated Galatasaray 86-77 in Athens on Friday to get to three wins in five games at the Euroleague top-16. The Greek champion shoo...
SOCCER
Gattuso: Unpaid OFI players couldn´t buy food
Former coach Gennaro Gattuso has lifted the lid on the plight of crisis-club OFI Crete which has been banned from playing in the Super League until it clears mounting debts with its staff. T...
Inside Sports
INTERVIEW
SYRIZA must come up with ‘pragmatic solutions,’ Schulz tells Kathimerini
“SYRIZA must realize that it is now the Greek government, not a party running an election campaign,” European Parliament President Martin Schulz, the first European official to visit Greece ...
COMMENTARY
Strange haste
The members of the new government must have a lot of confidence in themselves. Several days before announcing his program, Prime Minister Alexis Tsipras and his cabinet have opened up a mult...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Panathinaikos preserves perfect home record
2. Increase in minimum salary is left aside for now
3. Decline in euro rate has exporters eyeing growth in 2015
4. TAIPED is stripped of its management and most projects
5. Tourism to build on last year’s massive growth
6. HFSF portfolio sees its value diminish
more news
Today
This Week
1. SYRIZA must come up with ‘pragmatic solutions,’ Schulz tells Kathimerini
2. Why Greece went left while Europe turns to right
3. Capital flees Greece at fastest pace since 2011
4. Greek government's signals very mixed, ECB's Jazbec says
5. EU's Schulz: Greece should follow EU line on Russia
6. Monastiraki restaurant fire prompts panic, restricted before spread
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. Greek Elections 2015 | LIVE
4. Greek Elections 2015: The day after | LIVE
5. SYRIZA's win will test institutions
6. Athens may veto further EU sanctions against Russia
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.