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February 11, 2021

KBC brokers €77.7m deal to buy NN’s Bulgarian pension and life operations

KBC Group has agreed to acquire the Bulgarian pension and life insurance businesses of NN Group in a deal worth €77.7m ($94.3m).

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KBC executed the deal through its Bulgarian subsidiary DZI.

The transaction involves the acquisition of all the shares of NN Pension Insurance Company (NN PIC) along with all the assets and liabilities of NN Insurance– Sofia Branch (NN Life).

The takeover of NN PIC will enable KBC to deepen its bank-insurance offering through the addition of pension fund products. It will also offer additional cross-selling opportunities for banking and non-life insurance products, KBC said.

NN Life is said to enable KBC to boost its life insurance market share in Bulgaria through a various traditional life insurance and unit linked insurance products.

The deal, which awaits regulatory nod, is expected to bolster DZI’s distribution capabilities through NN Life’s network of 300 tied insurance agents in main cities across Bulgaria.

KBC Bulgaria country manager Peter Andronov said: “This deal gives our 1.8 million customers access to pension insurance and additional life insurance opportunities, in addition to our broad range of stable, secure and fully integrated financial solutions.

“Expanding our activities in Bulgaria, building on the competence and dynamism of UBB and DZI, and leveraging our joint product and service offering will help us to achieve our objectives, diversifying our income and ensure future success.”

The deal is expected to have an “immaterial impact” on KBC’s capital position upon deal completion in the course of this year.

The firm said that the acquisition will lower KBC Insurance’s Solvency II ratio by nearly six percentage points, which is said to be well above regulatory requirements.

Since 2007, KBC has been operating in Bulgaria, which became one of the firm’s core markets two years later.

NN has forayed into Bulgaria in 2001. It currently has a workforce of 138 and over 400,000 individual and 400 corporate clients in the country.

NN International Insurance CEO Fabian Rupprecht said: “This change of ownership is in line with NN’s strategy and portfolio review, as announced in June last year.

‘The divestment of our Bulgarian business does not change our focus and commitment towards the Central Eastern and European region, as it remains one of our key growth regions.”

In 2018, KBC through DZI purchased MetLife’s 40% stake in UBB-MetLife Life Insurance Company, a life insurance joint venture between United Bulgarian Bank and MetLife.

 

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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