The bank's offer was better than that of ERGO Insurance Group, but there are important conditions
The CNP CYPRUS group, with the companies of CNP CYPRIALIFE and CNP ASFALISTIKI in Cyprus and CNP ZOIS and CNP ASFALISTIKI in Greece, in 2023 increased revenues from premiums by 15.9%.
By Panagiotis Rougalas
The subsidiary of the French insurance giant CNP Assurances, CNP Cyprus Insurance Holdings, is discussing its sale with only Hellenic Bank. According to information from “K”, in the “marathon” where there were two contenders for CNP Cyprus, Hellenic Bank and the German insurance giant ERGO Insurance Group, the latter withdrew. As “K” is able to know, Hellenic Bank's offer for the acquisition of CNP Cyprus was indeed better than that of ERGO, but there are “asterisks” in Hellenic Bank's offer as well. The “asterisks” are transformed into conditions which are under negotiation, which is why the two parties, CNP Cyprus and Hellenic Bank, are discussing. There is also talk of a multi-million euro deal, which drastically changes the balance in the insurance industry in Cyprus.
As presented in its financial results for 2023, the CNP CYPRUS group, with its companies CNP CYPRIALIFE and CNP ASFALISTIKI in Cyprus and CNP ZOIS and CNP ASFALISTIKI (branch) in Greece, in 2023 compared to 2022 increased premium income ( premium income) by 15.9%. Annual premiums for 2023 reached 236 million, compared to 204 million in 2022. Thus, with better indicators than those of 2023, the discussions between Hellenic and CNP Cyprus find the seller in a more favorable position. In general, the image of the CNP Assurances group (the parent company) was very good, since in the financial results it presented net profits of 1.55 billion euros with an increase of 65% from 2022, turnover of 35.6 billion euros with a decrease of 4% from in 2022, a solvency coverage ratio of 253% with an increase of 21 points from 2022 and a green investment portfolio of €27.2 billion with an increase of €2 billion from 2022.
If Hellenic Bank succeeds in acquiring CNP Cyprus, then it will have the largest share of insurance in Cyprus, since it has two other insurance companies, Pancypriaki and Hellenic Life.
Revenue from insurances
If Hellenic Bank succeeds in acquiring CNP Cyprus, then it will have the largest share of insurance in Cyprus, since it has two other insurance companies, Pancypriaki and Hellenic Life. As shown in its financial results, Hellenic Bank's net income from insurance operations for the year ended 31 December 2023 amounted to 14.3 million euros, down 23% compared to 18.6 million euros in the year ended December 31, 2022. The decrease in the net result of insurance services during 2023 is mainly due to the increase in net expenses from reinsurance contracts, held mainly due to lower earnings from commissions from reinsurers and lower recoverable claims realized, and was partially offset by higher insurance business income. Net insurance income was also negatively impacted by an increase in insurance finance costs incurred in the year ended December 31, 2023, as a result of changes in interest rates and yield curves, despite the higher return on the underlying assets.
It is worth noting that Hellenic Bank also has an 18.6% stake in Universal Life Insurance Public Company Limited (Universal Life), which on 31 December 2023 amounted to 6.1 million euros (31 December 2022: 5.8 million . euros) and is calculated in equity securities classified at fair value through its results.
H Eurobank and the insurances
The major shareholder of Hellenic Bank, Eurobank, also has a presence in the insurance sector, since it owns 20% of Eurolife FFH Insurance Group and proceeds with operations through Bankassurance. In the context of a press mission to Athens in March 2024 and asked to comment on the developments between Hellenic Bank and CNP Cyprus, the CEO of Eurobank, Mr. Fokion Karavias, noted that insurance operations and bancassurance products in general are a key part of the bank's operations. “To complete the approval procedures for 55% of Hellenic and from then on we will study everything that exists regarding insurance”, he had commented on this. Mr. Karavias had come to the conclusion that bancassurance plays a central role in the planning of retail banking at Eurobank.
As we find in the financial results of Eurobank, in January 2023 the bank sold to the company Eurolife FFH Insurance Group Anonymous Company Holdings, a 10.8% stake he held in the Fairfax Group's subsidiary “Grivalia Hospitality S.A.” for a price of 48.3 million euros. In addition, in March and November 2023, the Bank paid an amount of EUR 8.6 million and EUR 6.05 million, respectively, for its participation in the share capital increase of “Grivalia Hospitality S.A.”. On 31 December 2023, the bank's shareholding in the company amounted to 9.2%.
In 2023 the bank recognized income from dividends mainly from its subsidiaries amounting to €140m (2022: €204m .). For 2023, he received a dividend of 7 million euros from Eurolife FFH Insurance Group Holding Company, compared to 2022 when he had received 14 million euros
