The cost of the deal, signed on Friday, has not been disclosed, but the business paper Finance recently reported that NLB and KBC expected to get between EUR 20 million and EUR 30 million.

Established by NLB and KBC in 2002, NLB Vita is the largest life insurance company in Slovenia, holding 14.8% of the market.

The sale is to be completed by the end of the first half of 2020, pending regulatory approval and suspensive conditions, said a press release issued by NLB and Sava Re.

"This will be the final step on our way to meeting all of the obligations imposed by the European Commission and a vital milestone, because we will be able to do business and show our full competitive potential," NLB chairman Blaž Brodnjak was cited as saying in the press release.

"We believe we have found the right strategic partner for NLB Vita, one to continue its story of success," Brodnjak said.

Sava Insurance Group chairman Marko Jazbec believes that the combination of knowledge and experience from KBC and NLB in NLB Vita provide a solid foundation for future development of a strong partnership with Sava in banking insurance.

He sees the acquisition as a key step for Sava to solidify its position in the life insurance market in Slovenia. "The share of life insurance premiums in terms of GDP is lower in Slovenia than in other, more developed European markets, therefore we see potential for development and organic growth for the future."