Hellenic Bank Set to Expand Insurance Operations in Cyprus and Greece
In a strategic move to bolster its insurance business, Hellenic Bank has entered into exclusive negotiations with CNP Assurances, eyeing the acquisition of CNP Cyprus Insurance Holdings Limited. This subsidiary is a key player in the insurance markets of Cyprus and Greece, encompassing entities such as CNP Cyprialife Ltd and CNP Asfalistiki Ltd.
The bank’s statement highlighted the terms of the put option, which allows CNP Assurances to initiate the sale, while Hellenic Bank holds an irrevocable commitment to buy insurance holdings if the option is exercised. The next procedural step involves informing and consulting the European Works Council of CNP Assurances, as per French law.
With regulatory approvals pending, including from the Commission for the Protection of Competition, the completion of this transaction is anticipated by the first quarter of 2025. CNP Cyprus Insurance Holdings Limited is renowned for its extensive network of independent agents and has been a dominant force in the Cypriot insurance sector, offering a variety of life and general insurance policy options.
In 2023, CNP Cyprus reported a workforce of approximately 330 employees and generated €236 million in gross premiums. The acquisition is set to significantly enhance Hellenic Bank’s market share in both life and general motorcycle insurance Cyprus sectors, projecting a rise to around 30 percent and 23 percent respectively.
The bank disclosed that the total consideration for this acquisition stands at €182 million, aligning with a price-to-book value ratio of 1x. This move is expected to have a capital impact of roughly 2.6 percentage points on Hellenic Bank’s strong capital adequacy ratio, which was 28.4 percent at the end of 2023.
This development promises to fortify the bank’s presence in the insurance market, creating opportunities for revenue synergy and enhancing profitability. It also aims to maintain continuity for customers, as existing insurance contracts under CNP Cyprialife and CNP Asfalistiki will remain unaffected.
Antonis Rouvas, Interim Chief Executive Officer of Hellenic Bank, expressed enthusiasm for the transaction’s potential to elevate the bank’s insurance operations and solidify its position as a leading financial services group in Cyprus. With ambitions to modernize services and expand product offerings, Rouvas emphasized the goal to meet customer needs through this integration.
Hellenic Bank has enlisted the expertise of BNP Paribas for M&A advisory, legal counsel from Ioannides Demetriou LLC, actuarial insights from Cronje & Yiannas Actuaries and Consultants Ltd, and financial guidance from Deloitte Ltd. The bank reassures stakeholders that it will provide updates on this matter in compliance with applicable laws and regulations.
For those looking to buy insurance online, this transaction signals a future where enhanced services and product diversity are at the forefront of Hellenic Bank’s customer-centric approach.
