Dutch insurer NN Group announced on Monday it has agreed to acquire MetLife’s business activities in Poland and Greece, for a total consideration of €584 million (US$692.8 million).
The acquisition, which will almost double NN’s customer base in Poland and Greece, is expected to complete in the first half of 2022 after obtaining the necessary regulatory approvals and competition clearances.
The transaction will be financed by a combination of cash capital at holding and around €100 million ($118.6 million) of local surplus capital. NN’s dividend policy and share buyback program will not be affected. The acquisition is expected to create synergies and lead to an incremental operating capital generation of €50 million ($59.3 million) per year by 2024.
“Strategically and financially this is a unique opportunity for NN to enhance value and consolidate our leading positions in these markets. The acquisition will add scale, provide growth opportunities and drive diversification in life and protection in markets with low insurance penetration rates,” said David Knibbe, CEO of NN Group, in a statement.
“Having built our NN business in Greece since 1980 and in Poland since 1994, we know and understand these markets well. MetLife’s activities tie in well with ours, with a cultural fit and a mirrored business model, allowing for a smooth integration,” he added.
Knibbe said the MetLife acquisition will bring NN Group around 2.7 million new customers and 450 new colleagues, who will work with around 1,600 additional tied agents and brokers.
Strengthening Polish Position
In Poland, the largest market in Central and Eastern Europe, NN’s market share in life will increase to 12% from 8%, which strengthens its position to around €500 million (US$593.2 million) annual gross written premium (GWP). NN’s distribution reach will be expanded in Poland with the addition of a network of 1,200 tied agents, as well as external partnerships.
L&H Market Share
In Greece, the transaction will make NN a leading life insurance company, with a combined 31% market share in life and health, and an 18% overall market share. NN will become market leader in employee benefits and group pensions and expand the attractive Greek accident & health portfolio. The Greek transaction includes a network of more than 400 tied agents, which will add 50% of capacity to the current tied agent sales force. NN in Greece will further diversify its distribution platform by adding broker and direct channels.
Source: NN Group
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Topics Mergers & Acquisitions
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