Panayiotis Rougalas
CNP Cyprus, the subsidiary of the French insurance giant CNP Assurances, is finally being transferred to Hellenic Bank for €182 million.
The sale process, initiated in the fourth quarter of 2023 and concluded in the second quarter of 2024, positions Hellenic Bank as the "leader" in the Cypriot insurance market, with market shares of 30.3% and 23.2% in the life and general insurance sectors, respectively.
The completion of the transaction is contingent upon receiving the necessary regulatory approvals and is anticipated to finalize by Q1 2025. While numerous groups initially expressed interest in acquiring CNP Cyprus, only two remained in contention by the end of January.
As per a statement from CNP Cyprus, the next step in the process involves informing and consulting with the CNP Assurances European Employees Council. It emphasizes that CNP Cyprus Group customers will continue to receive insurance services with the highest standard of service from its companies and insurance intermediaries.
It is worth noting that, under the Right to Sell Agreement, CNP Assurances retains the option to sell, and Hellenic Bank is irrevocably committed to acquiring CNP Cyprus Insurance Holdings should this right be exercised.
In 2023, CNP Cyprus employed 330 individuals and generated gross premiums of €236 million, holding market shares of approximately 24% and 15% in the life and general insurance sectors, respectively. Transitioning back to Hellenic Bank's statistics, the estimated capital impact following the acquisition of CNP Cyprus is projected to be 2.6%. This represents a decrease from 28.4% of Hellenic's capital position in 2023 to approximately 25.8%.
When considering the forthcoming change in Hellenic Bank's shareholding structure with the advent of Eurobank, it becomes evident that opportunities for growth utilizing the customer bases of both banks will expand.
CNP Cyprus operates within Cyprus and Greece, consisting of CNP Cyprialife Ltd, CNP Asfalisti Ltd, CNP Zois SA, and CNP Cyprus Properties Ltd.
This acquisition will bolster its insurance activities
Antonis Rouvas, the Bank's Interim Chief Executive Officer, remarked, "With this Transaction, the Bank will significantly enhance its insurance activities and emerge as a leading financial group with a robust presence in both the banking and insurance sectors in Cyprus. We are enthusiastic as the Transaction is expected to complement our business model and offer significant growth prospects. We anticipate leveraging the strengths, expertise, and invaluable experience of the staff from CNP Cyprialife, CNP Insurance, Hellenic Life Insurance, and Pancyprian Insurance to modernize and enhance our services."
[This article was translated from its Greek original and edited for brevity and clarity]
