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The Bank of Cyprus is making a bold move to strengthen its footprint in the island’s insurance market, announcing today that it has signed a binding agreement to acquire 100% of Ethniki Cyprus Insurance Ltd.
The €29.5 million deal, fully paid in cash, is still pending regulatory approvals but is expected to wrap up in the second half of 2025. Once complete, the acquisition will give the Bank of Cyprus Group a bigger slice of the insurance pie, particularly in the life and general insurance sectors, where Ethniki Cyprus currently holds a 2% and 4% market share, respectively.
In a statement, the bank said the deal is aligned with its wider strategy to grow its insurance business and create a more balanced income stream beyond traditional banking. By bringing Ethniki Cyprus under its wing, the group expects to boost its insurance revenues significantly. Projections based on 2024 audited figures show a 15% rise in gross premium income and a 10% increase in net profits from insurance activities, helping to drive more non-interest income for the group overall.
Deloitte Limited advised on the financial and actuarial aspects of the deal, while legal and competition advice came from law firm Chrysafinis and Polyviou LLC.
This acquisition marks another step in Bank of Cyprus’ efforts to diversify its operations and strengthen its long-term stability in an evolving financial landscape.
