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Alpha Bank is in talks to buy Altius Insurance, a Cyprus-based insurance company it already works with to sell insurance products through its branches. While nothing has been finalized yet, sources say discussions have progressed to a potential acquisition.
Altius isn't new to Alpha. It used to be part of the Greek banking group until 2015, when Alpha Bank sold it off during Greece’s financial crisis. At that time, Greek banks were under pressure to shed non-banking operations. A group of investors led by Doukas Palaiologos, who still chairs the company, took over the business.
Now, with Greek financial groups back on stronger footing, Alpha Bank is looking to expand again, this time with a renewed focus on Cyprus. The bank sees opportunity in building up its operations outside Greece, especially where it already has partnerships and brand recognition.
Altius operates in both life and health insurance. According to its 2024 financial results, the company brought in €39.5 million in premiums and made €8.4 million in profits. Its solvency ratio, a key indicator of an insurer’s financial strength, stood at a healthy 259%.
This isn’t Alpha’s only recent move in Cyprus. Earlier this year, it agreed to acquire AstroBank, a step that will make Alpha the third-largest systemic bank on the island. The deal is expected to bring in more than €100 million a year in recurring profits for the group. The acquisition is being paid for from Alpha’s existing surplus funds and won’t impact dividends for shareholders.
Once that deal is completed, Alpha Bank Cyprus is expected to hold about 10% of the local banking market. With its transformation plan nearly done, the bank says it aims to become a “modern alternative” for households, small businesses, and large corporations across Cyprus.
If the Altius deal goes through, it would strengthen Alpha Bank’s foothold even further by adding insurance to its core offerings, solidifying its presence not just as a bank but as a broader financial services provider on the island.
*Source: Business Insider
