Panayiotis Rougalas
Bank of Cyprus is moving forward with the acquisition of Ethniki Insurance’s Cyprus subsidiary, having entered exclusive negotiations for its purchase.
According to information available to K, the Bank of Cyprus has already begun a two-month due diligence process to assess the portfolio it would acquire if the deal proceeds. The final price will depend on this portfolio’s evaluation.
Ethniki Insurance’s Cyprus subsidiary holds a market share that adds value to Bank of Cyprus, particularly in generating non-interest income. According to the financial results for the first nine months of 2024, Ethniki Insurance Cyprus recorded gross written premiums of €16.3 million in the General Insurance sector, reflecting a 9.4% increase. In the same period of 2023, its gross written premiums in this sector stood at €15.1 million.
In the Life Insurance sector, Ethniki Insurance Cyprus reported gross written premiums of €13.3 million for the first nine months of 2024, marking a 3.1% increase compared to the same period in 2023 (€12.9 million). This continues the upward trend observed between 2022 and 2023, when premiums increased by 15.8%.
Deal finalized in Greece
It is worth noting that in February 2025, Piraeus Bank signed a Share Purchase Agreement to acquire 90.01% of Ethniki Insurance’s parent company from CVC Capital Partners. The transaction was valued at €600 million, based on a 100% equity interest.
ETYK closely monitoring developments
Meanwhile, ETYK (the Cyprus Union of Bank Employees) has announced that negotiations have begun with the management of Ethniki Insurance Greece regarding the acquisition of its Cyprus operations by Bank of Cyprus.
ETYK stated that it is closely monitoring these developments, emphasizing its goal of safeguarding jobs and employees’ rights. The union has already communicated with Bank of Cyprus’s management, expressing its support for the acquisition.
"As the union representing employees of both Ethniki Insurance and Bank of Cyprus, our organization has sent a letter to the buyer (Bank of Cyprus) requesting full disclosure on the matter, as well as assurances regarding job security and employees’ rights," ETYK stated.
Beyond its role as a union, ETYK is also a key shareholder in Bank of Cyprus, holding approximately 8% of its shares. The organization maintains a strong relationship with the bank’s management and plays a crucial role in protecting jobs and employees' rights.
This article was translated from its Greek original.
