Hellenic Bank is expected to finalise its acquisition of CNP Cyprus Insurance Holdings Limited by the first quarter of 2025.
The deal, valued at €182 million, is still pending regulatory approvals, according to preliminary results released by the bank.
On November 28, 2024, the bank confirmed that the Cyprus Competition Commission had approved the transaction in a session held on November 27, 2024.
The exclusive negotiations for the acquisition began on April 24, 2024, when Hellenic Bank entered into a sale agreement with CNP Assurances.
The agreement includes a right of sale at a specified price, obligating the bank to proceed with the acquisition of CNP Cyprus Insurance Holdings if this right is exercised.
Following consultations with the European Works Council, both parties signed the Sale and Purchase Agreement on July 9, 2024.
Hellenic Bank has been reported to view this transaction as a key step for its growth, further strengthening its insurance business and expanding its product offerings.
Upon completion, the bank is expected to secure a leading position in the Cypriot insurance market, with a market share of approximately 30 per cent in life insurance and 22 per cent in general insurance.
CNP Cyprus Insurance Holdings is one of the top insurance firms in Cyprus, offering a wide range of life and general insurance products through the country’s largest network of independent agents.
In 2023, the company employed around 330 people and generated gross premiums of €236 million.
Hellenic Bank, with a robust capital position and a total capital ratio of 34.1 per cent as of September 30, 2024, is expected to see an adjusted capital ratio of around 31.4 per cent after the deal’s completion, significantly exceeding the minimum regulatory requirements.
The acquisition is set to enhance the bank’s standing in the insurance sector, creating revenue synergy opportunities that are expected to boost insurance revenue and improve the quality of its profitability.
CNP Cyprus Insurance Holdings reported a profit of €21 million for the year ending December 31, 2023, and profitability is anticipated to remain strong in 2024.
