KBC Group has closed the deal on the acquisition of the business of NN in Bulgaria
30 July 2021
On 14.07.2021 the Hungarian National Bank officially granted its approval for transferring the insurance portfolio of NN Joint-stock Insurance Company – Sofia Branch of a Foreign Merchant (NN Life Insurance) to DZI Life Insurance JSC, part of the Belgian banking and insurance group КВС. On 17.06.2021 the Bulgarian Financial Supervision Commission also gave its permission so that DZI Life Insurance JSC could acquire direct shareholding into the capital of NN Pension Insurance Company EAD (NN Pension Insurance) equaling 100%, as earlier this year the Bulgarian Competition Protection Commission also approved the deal, permitting the acquiring by DZI Life Insurance JSC of sole control on NN Pension Insurance Company EAD (NN Pension Insurance), as well as of the entire going concern of NN Joint-stock Insurance Company – Sofia Branch.
As a result of that NN Pension Insurance is being renamed to UBB Pension Insurance, while NN Life Insurance ceases to exist as a separate legal entity and its clients automatically become clients of DZI Life Insurance. The consolidation of the life insurance business of the two companies is a process, having the ambition to bring DZI up to leadership positions in Bulgaria’s life insurance business.
„This was a natural step for DZI in the life insurance domain. Our company has never stopped being a leader in this insurance segment and since the acquisition of DZI by the KBC Group in 2007 the direction has been only one – higher and higher to the top. The companies, part of KBC Group in Bulgaria have been the market reference up until now, however with the addition of a pension insurance company to the set, we offer a thoroughly improved and complete customer experience in terms of financial services, which will inevitably be a huge facilitation to the thousands of our clients throughout the country “, commented on the deal closure Kosta Cholakov, Chief Executive Officer of DZI.
„The expansion of product proposals for our clients and the increase in the sales and servicing channels will be among the most important effects for them, resulting from the deal and I am convinced that as early as in the next months they will be able to take advantage of these additional opportunities. The Bulgarian market is among the key markets for KBC Group, which further strengthens its long-term commitment in this country also through the transaction for acquiring the life insurance and pension business of NN in Bulgaria. Now, with the expanded access to the innovative products and processes, which KBC Group has integrated as a proposal for its clients, we will be able to render additional services and solutions for them to help clients plan their financial future and ensure them customer experience as per their preferences and expectations. And the very first step, which we expect to become a fact over the next several days, is the change in the name of the NN’s pension company and the funds, managed by it and their consolidation under the UBB Pension Insurance brand.“, added Nikolay Stoykov, Chief Executive Officer of UBB Pension Insurance.
The servicing of the clients of NN Life Insurance and of NN Pension Insurance is enabled at the presently existing offices of NN, which re-branding is underway. Recent information for clients with life insurance products is available on the website of DZI or such could be obtained by calling the 0700 16 166 hotline and respectively on the NN website and at 0800 11 646, with regard to pension insurance products.