Piraeus Bank has agreed to sell its ATE Insurance branch to Ergo Insurance Group for 90.1 million euros. Ergo Insurance is the subsidiary of German reinsurance company Munich Re.
In July 2012, Piraeus Bank bought the healthy part of ATEbank, thus acquiring the company’s insurance branch. ATE Insurance is the fifth largerst property insurance company in Greece with an income of 170 million euros just for last year, noted Reuters.
Piraeus Bank, which is mostly owned by the Hellenic Financial Stability Fund (HFSF), has decided to sell ATE Insurance as part of the company’s restructuring plan, in order to divest “non-core assets” and strengthen the lender’s position.
“Piraeus Bank has made a significant step forward in executing its strategy to gradually exit non-banking activities,” Anthimos Thomopoulos, the bank’s deputy CEO, said in a statement on Thursday.
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