In a strategic move to enhance its presence in Bulgaria, KBC Group, a prominent Belgian banking and insurance conglomerate, acquired NN Bulgaria Group’s Bulgarian pension and life insurance businesses in 2021 for €77.7 million. This acquisition underscores KBC’s commitment to expanding its integrated bank-insurance model in Bulgaria, a core market for the group.
Overview of the Acquisition
The acquisition involved two key entities:
-
NN Pension Insurance Company EAD (NN PIC): Now rebranded as UBB Pension Insurance, this acquisition enables KBC’s Bulgarian franchise, comprising United Bulgarian Bank (UBB) and DZI Life Insurance, to broaden its bank-insurance offerings by adding high-end pension fund products. This expansion provides additional cross-selling opportunities for banking and non-life insurance products, adopting a one-stop-shop approach for customers.
-
NN Insurance Co. Ltd – Sofia Branch (NN Life): Integrated into DZI Life Insurance, this merger allows DZI to further increase its share of the life insurance market in Bulgaria through a range of traditional life insurance and unit-linked insurance products, reaffirming its leading position. The integration also strengthens DZI’s distribution power, leveraging NN Life’s network of 300 tied insurance agents across Bulgaria’s main cities.
NN Bulgaria: A Snapshot
Prior to the acquisition, NN Bulgaria had established a robust presence in the market:
-
Established: 2001
-
Employees: 138KBC Group – Pressroom
-
Client Base: Over 400,000 individual and 400 corporate clients
-
Assets Under Management: Approximately €1 billion
The strategic divestment aligns with NN Group’s broader portfolio review and focus on core markets, as stated by Fabian Rupprecht, CEO of NN International Insurance. He emphasized that the decision was made after careful consideration, aiming to find a buyer with a cultural fit and interest in continuing the business.
KBC Group’s Strategic Vision
KBC Group has been present in the Bulgarian financial sector since 2007, with a strategic focus on retail customers, small and medium-sized enterprises, and midcaps in its core markets, including Bulgaria. The acquisition of NN Bulgaria’s pension and life insurance businesses is a natural step in expanding its integrated bank-insurance model in the region.
Johan Thijs, CEO of KBC Group, expressed enthusiasm about the acquisition, stating that it strengthens KBC’s position in Bulgaria, allowing the group to offer a comprehensive range of high-quality integrated bank-insurance products to Bulgarian customers.
Transition and Integration
Following the acquisition, the integration process commenced:
-
NN Pension Insurance: Renamed to UBB Pension Insurance.
-
NN Life Insurance: Ceased to exist as a separate legal entity and was merged into DZI Life Insurance.
Conclusion
The acquisition of NN Bulgaria’s pension and life insurance businesses by KBC Group signifies a strategic enhancement of KBC’s integrated financial services in Bulgaria. This move not only strengthens KBC’s market position but also underscores its commitment to providing comprehensive, customer-centric financial solutions in the region.
Frequently Asked Questions (FAQs)
1. What does the acquisition of NN Bulgaria by KBC Group entail?
The acquisition involves KBC Group purchasing NN Group’s Bulgarian pension and life insurance businesses. This includes the integration of NN Pension Insurance Company EAD into UBB Pension Insurance and the merger of NN Life Insurance into DZI Life Insurance.
2. How will this acquisition affect existing NN Bulgaria customers?
Existing NN Bulgaria customers will transition to KBC’s Bulgarian entities, UBB and DZI Life Insurance. They will continue to receive their insurance services without interruption, with enhanced offerings under the KBC umbrella.
3. What are the benefits of this acquisition for Bulgarian consumers?
Bulgarian consumers will benefit from a broader range of integrated bank-insurance products, including high-end pension fund options and life insurance services, all accessible through KBC’s established network of branches and agents.
4. Will there be any changes to the insurance products offered?
While the product offerings will be expanded to include additional pension and life insurance options, existing products will continue to be honored. Customers may also gain access to new, innovative financial solutions introduced by KBC.
5. How can customers get more information about the transition?
Customers can visit the official websites of UBB and DZI Life Insurance for updates and information regarding the transition. Additionally, customer service hotlines are available for personalized assistance.