12° Nicosia,
22 May, 2024

Hellenic set to acquire CNP in multimillion-Euro deal

Hellenic - CNP negotiations near conclusion as insurance sector landscape prepares for major shift

Panayiotis Rougalas

Panayiotis Rougalas

Everything appears to be proceeding smoothly, and it seems that CNP Cyprus will soon be under the ownership of Hellenic Bank. Sources at K, the newspaper that initially brought attention to the discussions between CNP Cyprus and Hellenic Bank regarding a potential acquisition, suggest that a favorable outcome may be reached by the end of the week. While the exact price of the takeover remains undisclosed, it is believed to fall within the range of approximately €200 million, subject to negotiation based on the portfolio and agreement terms with Hellenic Bank.

Once finalized, Hellenic Bank will add CNP to its portfolio, alongside Pancyprian and Hellenic Life, while also securing a minority stake in Universal Life. In 2023, Hellenic Bank recorded a net income of EUR 14.3 million from insurance operations, marking a decrease of 23% compared to the previous year. This decline is primarily attributed to higher net expenses from reinsurance contracts, driven by reduced reinsurance commission income and lower recoverable claims, partially offset by increased revenues from insurance operations. Additionally, an uptick in insurance finance costs, resulting from fluctuations in interest rates and yield curves, further impacted net income from insurance operations.

It was previously reported by K in early April that CNP Cyprus' second potential acquirer, Germany's ERGO Insurance, had withdrawn from the bidding process, leaving Hellenic Bank as the sole contender. Progress in the negotiations between CNP Cyprus and Hellenic Bank was further corroborated by ETYK last week, following the renewal of the collective agreement between the bank and the union. According to ETYK, the agreement lays the groundwork for positive outcomes for both Hellenic Bank and Eurobank, which indirectly holds an interest in the acquisition, potentially leading to Eurobank's involvement at a later stage.

While the precise details of the acquisition remain confidential, it is estimated to be in the vicinity of EUR 200 million. Eurobank, as a major shareholder of Hellenic Bank, also maintains a presence in the insurance sector in Greece and received a dividend of EUR 7 million for the 2023 fiscal year from Eurolife FFH Insurance Group Anonimos Kompetohmos Anonimos.

[This article was translated from its Greek original]

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