Poland’s anti-monopoly watchdog Urzęd Ochrony Konkurencji i Konsumentów (UOKiK) has approved the acquisition of Alior Bank by state-controlled insurer PZU, after the latter acquired a 25% stake from its shareholder Carlo Tessara for PLN1.64bn (€390m) in a deal that was signed on May 30.
Both institutions are active issuers and distributors of structured products aimed at retail investors wrapped as life insurance solutions, but the purchase will not affect the product portfolio, according to Marcin Kobus, product manager at Alior.
“Alior and PZU have different types of products and different distribution channels,” said Kobus. “Alior Bank’s focus is on life insurance based certificate deposits, [and] we [will continue to] make sure that customers have the best market investment proposition.”
The concentration [of activities] will not lead to a restriction of competition in any of the markets in which both participants operate, according to a statement by UOKiK which approved the transaction and gave PZU the green light to take control of Alior.
Alior Bank begun issuing structured products wrapped as certificates of deposit in 2009, and has since then expanded its distribution network. In 2014, the bank raised PLN793m (€189m) via 13 derivative-based unit-linked insurance products, raising an average PLN61m per product. Year to date the bank has already marketed 10 insurance products with estimated sales of PLN550m. Most of the bank’s products this year have been linked to thematic share baskets, with only one product linked to the S&P Europe 350 Low Volatility index and one to the Ethna-Aktiv E investment fund.
PZU, which became active in the retail structured products market in 2008 with its first derivative-based product, is an issuer of insurance products wrapped as endowment policies. The insurer raised PLN36.5m (€8.7m) with its first product, but has not disclosed any sales data since then for any of its 60 tranches. PZU has also been acting as the third-party distributor for other bancassurance structured products.
According to domestic press reports, PZU has revealed plans for further purchases and it is in talks to acquire two more banks with one of the deals expected to being closed before the end of the year. Raiffeisen Polbank and GE unit BPH are believed to be on the auction book.
Related stories:
Alior cashes in on IT play
Poland’s Alior targets PB clients with ‘health care’ play
Eastern European providers bet on Sochi sponsors
New Polish issuer offers duo
Citi launches second PZU bond in Poland
Polish Citi opens to retail clients again after year-long absence