- allow Eurobank to participate towards future value creation at Eurolife through the 20% shareholding; and
- increase Eurobank’s common equity tier 1 ratio by c. 26 bps (to c. 17.8% from 17.5%)(1)
Furthermore, the long term collaboration with Fairfax, a prominent international insurance partner, is expected to sustain the competitiveness and future growth of the Eurolife group for the benefit of its customers and employees.
The completion of the Transaction is subject to various regulatory approvals and is expected to be completed before the end of the third quarter of 2016.
Bank of America Merrill Lynch and Mediobanca - Banca di Credito Finanziario S.p.A. have acted as financial advisers to Eurobank in connection with the Transaction. Shearman & Sterling LLP and M&P Bernitsas Law Offices have acted as legal advisors to Eurobank in connection with the Transaction.
Eurolife (through its Greek insurance subsidiaries) is the 3rd largest insurer in Greece with c. 10% total market share (gross written premiums of € 242 million as at 30 September 2015) and offers (through its Greek insurance subsidiaries) both life and non life insurance products as well as brokerage services (through its brokerage subsidiary). Eurolife’s insurance subsidiaries distribute their insurance products and services through the network of Eurobank in Greece and Bancpost in Romania. In addition to the bancassurance channel, in Greece, such subsidiaries have been increasingly boosting their product distribution through independent sales partners and their own sales force.
(1) September 30, 2015 data, pro forma for the recently completed SCI of €2.039m