He will see the Bank of Cyprus from the same position of the podium both in banking Assets and in insurance share
By Panagiotis Rougalas
While Eurobank awaits the necessary supervisory approvals from the European Central Bank, the Central Bank of Cyprus and the Registrar of Companies for the acquisition of 55% of Hellenic Bank, Hellenic acquired one of the 2 largest insurance companies in Cyprus, CNP Cyprus.
With 182 million of the deal, Hellenic will have 23% in the General Insurance sector and 30% in the Life Sector, since in addition to CNP Cyprialife and CNP Asfalistiki, which it acquired, it already owns Hellenic Life and Pancyprian Insurance. Automatically, as soon as Eurobank receives the necessary approvals for the 55% and the issue of the appeal by Dimitra Investments to the Administrative Court against the validity of the decision taken by the Commission for the Protection of Competition, for majority approval of the acquisition of Hellenic's share capital from Eurobank, will have in its hands the biggest piece of the insurance pie of Cyprus.
On the ground, Eurobank, when it officially takes over the reins of the bank, will have total assets of 29 billion euros and will surpass the assets of the Bank of Cyprus at 26-27 billion euros. Accordingly, the balances in insurance will change, since their shares will also be close, both in the general sector, but also in the life sector.
“We like insurance work”
“We like insurance work”
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In the press mission to Athens at Eurobank's offices two months ago, the CEO of Eurobank, Mr. Fokion Karavias, had explained that insurance operations and insurance products connected to the bank are a key part of the Group's operations.
Mr. Karavias had stated emphatically that “we like insurance work” and that bancassurance products have a central role in the design of retail banking at Eurobank. At the same time, Mr. Karavias had answered a related question that it is very positive that Hellenic has (now had) 2 insurance companies.
What does the 182 million include
Hellenic has signed a Right to Sell agreement for the acquisition of CNP Cyprus Insurance Holdings. which includes, among others, CNP Cyprialife, CNP Asphalistiki, CNP Zois SA and CNP Cyprus Properties for 182 million euros. complements their business model and upon completion will offer significant growth opportunities to the entire Group and especially to the Group's insurance activities.
“We expect to combine the strengths, expertise and valuable experiences of all the staff of CNP Cyprialife, CNP Insurance, Hellenic Life and Pancyprian Insurance to modernize and upgrade our services and strengthen the range of our insurance options”, he underlined in his internal message to the staff, thus giving the impression that all insurance companies will marry into one.
