Today, NN Group announces that it has reached an agreement with KBC Group NV (KBC) to sell its Bulgarian operations for a total consideration of EUR 77,7 million to KBC’s Bulgarian insurance business DZI.
NN has developed its business in Bulgaria with Pension and Life insurance products since its entrance in the market in 2001. NN Bulgaria has 138 employees, and the customer base consists of over 400,000 individual and 400 corporate clients. The operating result of the Bulgarian business was around EUR 3 million in 2020.
The sale is expected to increase the Solvency II ratio of NN Group by approximately 1%-point.
Fabian Rupprecht, CEO of NN International Insurance: ‘After careful consideration, we concluded that a divestment of the Bulgarian activities would be in the best interest of our local customers, business partners and employees. We went through a rigorous process to find the right buyer, focusing on a cultural fit and their interest in the continuation of our business. We are confident that KBC is well positioned to further develop the Bulgarian Pension and Life business. 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. I would like to take this opportunity to thank our colleagues, and our partners, in Bulgaria for their hard work and valuable contribution over the past 20 years. We wish them all the best with KBC going forward.’
The transaction is subject to regulatory and antitrust approvals and is expected to close in the course of 2021.