The Hellenic Bank and CNP Assurances have announced that they have entered into exclusive negotiations for the acquisition of the insurance activities of the French company in Cyprus for €182 million. The transaction will have a positive impact on the Bank's capital, with the total capital ratio increasing to 25.8%.

According to a press release by Hellenic Bank, the transaction is estimated to be "an important milestone for the further development and strengthening of the Bank's insurance activities, enriching the products and options that will be offered to an expanded customer base". With the completion of the deal, it adds, "the Bank is expected to have a leading position in the Cyprus insurance market, with market shares of around 30% and 23% in the life and general insurance sectors, respectively".

The agreement is considered to be closed but the necessary regulatory approvals are pending and it is expected to be completed by the first quarter of 2025.

According to the press release, CNP Cyprus Insurance Holdings Limited is a leading insurance company in Cyprus and offers insurance products and services in the life and general insurance sectors through the largest network of independent agents in the country. In 2023 it employed approximately 330 employees and had gross premiums of €236 million, with market shares of approximately 24% and 15% in the life insurance and general insurance sectors.

Furthermore, it is noted that the transaction is expected to consolidate the Bank's presence in the insurance sector and create opportunities for revenue synergies, thus increasing the revenue from insurance activities and enhancing the quality of the Bank's profitability.

Interim CEO of the Bank, Antonis Rouvas, said that with this move "the Bank will significantly strengthen its insurance activities and become a leading financial group with a strong presence, both in the banking and insurance sectors in Cyprus".