Turns into a “leader” in the Cypriot insurance market, with 30.3% and 23.2% in the life and general insurance sectors respectively
By Panagiotis Rougalas
CNP Cyprus, the subsidiary of the French insurance giant CNP Assurances, is finally transferred to Hellenic Bank for 182 million euros.< /p>
The sale process which started in the fourth quarter of 2023 and ended – as a result – in the second quarter of 2024, finds Hellenic Bank “leader” in the Cypriot insurance market, with market shares of 30.3% and 23.2% in the life sectors and general securities respectively.
The transaction is subject to receiving the required regulatory approvals and is expected to be completed by the 1st quarter of 2025. Many groups had entered the race for the acquisition of CNP Cyprus, however the two remained at the end of January.
According to a statement from CNP Cyprus on its part, the next step in the process is to inform and consult with the European Workers Council of CNP Assurances and emphasizes that CNP Cyprus Group clients will continue to enjoy insurance services with the best possible service from the companies and their insurance intermediaries.
It is noted that, according to the Right to Sell agreement, CNP Assurances has the option to sell and Hellenic Bank is irrevocably committed to acquire CNP Cyprus Insurance Holdings if this right sale practiced.
In 2023 CNP Cyprus employed 330 people while gross premiums amounted to €236 million, with market shares of approximately 24% and 15% in the life and general insurance sectors, respectively. Going back to Hellenic, the estimated capital impact after the acquisition of CNP Cyprus will reach 2.6%. From 28.4% of Hellenic's capital position in 2023, it will reach approximately 25.8%.
If the upcoming change in the shareholding structure of Hellenic Bank with the arrival of Eurobank is also included in the equation, it can be seen that the opportunities for growth using the clientele of the 2 banks will increase.
CNP Cyprus operates in Cyprus. and Greece. It consists of: CNP Cyprialife Ltd, CNP Insurance Ltd, CNP Zois SA and CNP Cyprus Properties Ltd.
It will strengthen its insurance activities
The Transitional The Bank's Chief Executive Officer, Antonis Rouvas, commented: “With this Transaction, the Bank will significantly strengthen its insurance activities and become a leading financial group with a strong presence, both in the banking and insurance sectors in Cyprus. We are excited as the Transaction is expected to be complementary to our business model and will provide significant growth opportunities. We expect to combine the strengths, expertise and valuable experiences of the staff of CNP Cyprialife, CNP Insurance, Hellenic Life Insurance and Pancyprian Insurance to modernize and upgrade our services.”
