Hellenic Bank on Thursday announced that the Commission for the Protection of Competition has approved its acquisition of CNP Cyprus Insurance Holdings.
This represents a major step forward in the overall transaction process with CNP Assurances.
According to the bank’s statement, the approval was granted during the commission’s session held on November 27, 2024.
The announcement follows Hellenic Bank’s earlier communication on July 10, 2024, revealing its agreement with CNP Assurances to acquire CNP Cyprus Insurance Holdings Limited.
The bank clarified that the transaction remains subject to additional regulatory approvals and is expected to be completed by the end of the first quarter of 2025.
The initial deal was announced in July 2024, with Hellenic Bank highlighting its strategic importance.
The acquisition is anticipated to enhance the bank’s insurance activities significantly, solidifying its position as a leading financial group with a strong presence in both the financial and insurance sectors in Cyprus.
Upon completion, Hellenic Bank is projected to secure a dominant position in the Cypriot insurance market, commanding an estimated market share of 30 per cent in life insurance and approximately 23 per cent in general insurance.
Antonis Rouvas, who until recently held the position of interim CEO of Hellenic Bank, said in July that “this transaction strengthens the group”.
He also said that it “aligns perfectly with our business model, offering significant growth opportunities”.
Rouvas added that “our goal is to combine the strengths, expertise, and valuable experience of each team member to modernise and upgrade our services, expand our range of insurance products, and better meet our customers’ needs”.
It should be noted that this holding company operates in both Cyprus and Greece and includes subsidiaries such as CNP Cyprialife Limited, CNP Asfalistiki Limited, CNP Zois, and CNP Cyprus Properties Ltd.
Meanwhile, earlier this year, data from the Cyprus Insurance Companies Association for the first quarter of 2024 highlighted CNP Cyprialife’s strong position in the market.
The company ranked as the second-largest provider in the life insurance sector, holding a 23.7 per cent market share, with premiums totalling €40.9 million, an increase from 22.4 per cent in the same period last year.
In contrast, CNP’s performance in the general insurance sector showed a slight decline, with its market share decreasing to 10.7 per cent (€16.8 million) from 11.3 per cent in the first quarter of 2023.
The acquisition of CNP Cyprus Insurance by Hellenic Bank has received positive feedback from rating agencies.
Fitch Ratings noted that while Hellenic Bank’s fee diversification from insurance activities remains limited, the acquisition is expected to significantly enhance its operations in this sector.
Similarly, Moody’s had earlier assessed the acquisition favourably, stating in April 2024 that it would bolster Hellenic Bank’s network and revenue streams.
“The potential acquisition will strengthen the broader activities of Hellenic Bank,” Moody’s remarked at the time.
