Ethniki Insurance becomes first Greek insurer to tap debt capital markets

Piraeus Bank SA announced this week that its wholly owned subsidiary, the Ethniki Hellenic General Insurance Company SA, has successfully priced an inaugural dual-tranche subordinated bond issuance totalling €200 million. The milestone transaction marks the first subordinated debt capital markets issuance by a Greek insurer. The transaction comprises a €100 million Tier 2 bond carrying a fixed annual coupon of 5.25 per cent, with a maturity of 10.25 years and an issuer call option after 5.25 years. It also features a €100 million Restricted Tier 1 perpetual bond carrying a fixed annual coupon of 6.875 per cent, which is first callable after 5.5 years. Settlement for both the Tier 2 and Restricted Tier 1 notes is scheduled for September 9, 2026. The notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market. The issuance strengthens the regulatory capital position of Ethniki Insurance, diversifies its sources of own funds, and establishes direct access to international debt capital markets. Pro forma for the new issuances and the redemption of an outstanding 10-year Tier 2 instrument of €125 million, the solvency II ratio of Ethniki Insurance as at June 30, 2026, stands at approximately 190 per cent. The transaction attracted significant interest from approximately 100 institutional investors across both tranches. Total order books peaked at more than €600 million, representing an oversubscription of more than 3.0 times relative to the combined issuance size. The bonds were ultimately priced significantly tighter than initial guidance, by 30 basis points for the Tier 2 tranche and 37.5 basis points for the Restricted Tier 1 tranche. Asset managers were allocated 55 per cent of the combined issuances, banks and private banks received 25 per cent, and hedge funds alongside other investors took approximately 20 per cent. International institutional investors were allocated more than 70 per cent of the issuances, with demand stemming mainly from France and the UK. “Ethniki Insurance is the first Greek insurer to raise capital in the debt capital markets, representing a milestone for the company and for the Greek insurance sector,” said Christos Megalou, Chief Executive Officer of Piraeus Group. “The strength and international breadth of demand underlines the quality of the Ethniki Insurance franchise and conviction in its prospects,” Megalou added. “As a core pillar of Piraeus Group’s 2030 strategy, a well-capitalised and independently financed Ethniki Insurance will support our ambition to build Greece’s leading integrated financial-services platform, with a broader and more balanced mix of revenues,” Megalou stated. “The strong reception of our inaugural Tier 2 and Restricted Tier 1 issuances reflects investors’ confidence in the Ethniki Insurance franchise, our strategy, and our long-term prospects,” said Dimitris Mazarakis, CEO of Ethniki Insurance. “The transaction optimises Ethniki Insurance’s capital structure and diversifies our sources of own funds, further strengthening our ability to deliver on our strategic priorities and growth ambitions,” Mazarakis added. “Together with Piraeus, we are accelerating our transformation journey and unlocking significant synergies so that we can keep supporting our clients with simple, innovative, and reliable solutions to protect what matters most to them,” Mazarakis said. Goldman Sachs Bank Europe SE acted as sole global coordinator for the transaction. Goldman Sachs Bank Europe SE, Piraeus Bank SA, and UBS Europe SE acted as joint lead managers of the issue. A&O Shearman and Bernitsas Law Firm acted as legal advisors to the issuer. Ethniki Insurance is one of Greece’s leading insurance companies, operating as the country’s second-largest composite insurer with a 13.6 per cent market share as at end-December 2025, as well as the oldest insurance company in the country. The company serves more than 1.9 million active customers, offering products across the full spectrum of life, health, and non-life insurance. As of the first half of 2026, the insurer reported €424 million in gross written premiums, underpinned by a well-diversified business mix. Piraeus acquired a 100 per cent stake in Ethniki Insurance in November 2025, a strategic transaction designed to further diversify the revenue sources of Piraeus Group while enhancing its product offering across banking, protection, and investment solutions. Ethniki Insurance reported an IFRS profit before tax of €68 million in the first half of 2026, alongside an adjusted operating result of €50 million and a return on capital employed of 15.5 per cent. The insurer maintained a solid capital position prior to the issuance, recording a Solvency II capital requirement ratio of 162 per cent as at June 30, 2026, well above regulatory requirements.