NLB and KBC are currently investigating the possibilities of a joint process to divest their shareholdings in NLB Vita
20 August 2019
The divestment of NLB Vita insurance company, as is known, is part of an additional commitment given from the European Commission as a result of extended due date for the sale of the equity stake of the Republic of Slovenia. Given that this additional commitment is still pending despite successful completion of the first phase of the bank’s privatisation process in November last year, both owners, NLB and KBC, are looking into the possibilities to jointly divest their stakes in life insurer NLB Vita, while the Slovenian market is non-core to KBC.
KBC and NLB are currently investigating the possibilities of a joint process to assess opportunities to divest their shareholdings to a single potential buyer with the utmost care. The completion of the process depends on the interest of potential investors and is usually subject to certain conditions precedent. NLB and KBC are constantly striving for a high quality level of customer service, which is attested by strong customer loyalty. NLB and KBC will undertake to keep the standard of customer service at the same or higher level also in the future, also after the possible conclusion of the process of divestment.
Both NLB and KBC believe that the NLB Vita is an interesting investment, as its business results and efficient sales have already proven the success of the banking-insurance model on the Slovene market. NLB will continue to collaborate with Vita also in the future, by selling its products. Regardless who owns NLB Vita, the sales network for the products will continue to be NLB’s distribution network (with 93 branches and internet sale). As until now NLB Vita products will be sold by NLB banking representatives holding a licence to sell insurance products. NLB Vita offers a range of 25 different individual and group insurance products.
NLB Vita, member of the NLB Group, is the second largest life insurance company on the Slovene market (market share at the end of 2018: 14.8%). The company was established by Nova Ljubljanska banka, d.d., Ljubljana (50%) and KBC Insurance NV (50%) as a joint venture. Their main objective was to combine the competitive advantage of NLB as the strongest bank in Slovenia and the KBC’s know-how and experience in the insurance industry.
As a rule, and to keep the integrity and confidentiality of the process, KBC and NLB will refrain from further commenting or detailing on the course of the process or the parties involved.
NLB and KBC