BANKING

Part of CVC payment up to NBG staff

part-of-cvc-payment-up-to-nbg-staff

The degree of activation of the 3,800 employees in the National Bank of Greece’s network of 360 branches will determine the collection of about a third of the price CVC Capital partners has promised to NBG for the acquisition of 90.01% of the bank’s insurance arm, Ethniki.

This concerns 120 million euros, the so-called pending price, which CVC has agreed to pay NBG in five years’ time provided specific performance targets are met in the sale of Ethniki bancassurance products through NBG’s branch network.

The business plan, which has been seen by Kathimerini, provides for bancassurance activity to grow by 78% up to 2023, so that it represents at least a third of the total premiums Ethniki will achieve in the coming years. This way the NBG branches are asked to become an important distribution channel for the expansion of the activity of Ethniki Insurance, where NBG will also maintain a 9.99% stake.

Besides the high production target, the performance of the branch network will also be assessed in terms of returns, as according the Ethniki sale agreement, CVC will pay quarterly commissions to NBG based on earnings from bancassurance.