KD Group said Monday it had entered into an exclusivity agreement on the sale of 100% of Adriatic Slovenica last week, whereby there are no guarantees that a sales agreement will be concluded.

The management board of KD Group had decided in March to invite selected potential investors to conduct due diligence, having in November 2017 picked Lazard as financial adviser on the sale.

Media reports suggest KD Group is expecting roughly EUR 150m, but the price tag will depend on the fate of supplementary health insurance, which accounts for roughly 40% of the insurer's gross premiums.

The abolishment of supplementary insurance was one of the centrepieces of the outgoing government's health reform but was never realized.

The fate of supplementary insurance will depend on who wins the election, since several parties are in favour of abolishment while others advocate a stronger role for private health insurance.

Adriatic Slovenica posted a group net profit of EUR 11.4m for 2017, down 4.2% on the year before. It had roughly 14% of the Slovenian insurance market measured by premiums.

Generali has had a Slovenian subsidiary since 1996. In 2016, the last year for which public data are available, it had a 4.6% market share in Slovenia.