Fairfax bets big on Cyprus with stake in Eurobank Insurance

Canadian investment giant Fairfax Financial Holdings is deepening its footprint in Cyprus, agreeing to buy 45% of ERB Insurance, the general insurance company owned by Eurobank Limited, for €59 million, a deal seen as a strong vote of confidence in the Cypriot economy.

The transaction, which values the insurer at about 1.45 times its book value, includes an option for Fairfax to acquire the remaining 55% at a later stage, giving the company full ownership in the future.

In the original article by Kathimerini's Panayiotis Rougalas, Fairfax is already the largest shareholder in Eurobank Holdings, with nearly 33% ownership, and this marks its first direct investment in Cyprus under its own name. The move follows a €1.3 billion investment through Eurobank Limited earlier this year to acquire Hellenic Bank, one of the island’s biggest financial deals in recent years.

President Nikos Christodoulides recently met Fairfax chairman Prem Watsa in Canada, part of Cyprus’ ongoing drive to attract foreign investment.

At the same time, Eurobank announced a major deal in Greece to buy 80% of Eurolife Life Insurance from Fairfax for €813 million, allowing the bank to take full control of its life insurance operations while retaining a 20% stake in Eurolife’s general insurance unit.

Eurobank said the twin transactions, in Greece and Cyprus, strengthen its bancassurance strategy and diversify its revenue sources, while Fairfax’s investment underscores its long-term confidence in both markets.

In simple terms, Cyprus just secured another major international investor, and Eurobank is tightening its grip on its insurance business, a win-win that boosts both financial stability and foreign trust in the island’s economy.