The privatisation of the insurance arm of state-owned bank Caixa Geral de Depósitos (CGD), which includes the brands Fidelidade Mundial and Império Bonança, recently merged into the Fidelidade brand, is one of the least controversial processes in the government’s privatisation scheme.

Not being one of the bank’s core businesses, it is also an appealing business for the dominant position it holds in the Portuguese market. Apart from appealing, the privatisation is also well regarded since it will enable to increase competition in the sector. Among potential buyers is US company Liberty International, which has already expressed interest in studying the process. The head of the Açoreana insurance company has also expressed the same interest.

The privatisation, which will be performed directly by CGD without the state’s mediation, is scheduled for this year, but details of the operation have not been announced yet. The state-owned bank may earn more than €1.5bn with this sale, an operation which will help the financial institution to reach the 9% Core Tier I ratio demanded by the sector’s international entities.