Alpha Bank has reached a landmark agreement for a strategic combination of insurance activities in Cyprus that will lead to the creation of one of the three largest insurance groups in the country. The transaction brings together Universal Life Insurance Public Company Ltd and Altius Insurance Ltd, significantly reshaping the local insurance and bancassurance landscape.

Under the agreement, Alpha Bank will acquire 100% of the share capital of Altius Insurance and has also reached an understanding with the majority of Universal Life shareholders for the merger of the two companies into a single, unified insurance entity. Upon completion, a company of the Alpha Bank Group will hold a majority stake in the combined insurer.

The new group is expected to rank among the top three insurance groups in Cyprus in both Life and General Insurance, while reinforcing its leading position in Accident and Health insurance.

As part of the transaction, Alpha Bank will enter into a long-term strategic partnership with the Photos Photiades Group, the main shareholder of Universal Life. The Group will retain a significant minority stake in the unified company, with governance exercised jointly.

The management team of Altius Insurance will continue to support the implementation of the common strategic plan, ensuring operational continuity and reducing integration risks.

The new structure creates a fully integrated insurance model offering a broad range of solutions to individuals and businesses, supported by a significantly expanded distribution network.

The combined entity will leverage strong synergies, including a network of around 400 insurance agents and a customer base exceeding 100,000 policyholders. These strengths are expected to more than double Alpha Bank’s cross-selling potential for banking and insurance products.

A key element of the strategy is the further development of bancassurance in Cyprus, through a dedicated agreement with Alpha Bank Cyprus, building on Altius Insurance’s proven expertise in this field. At the same time, Universal Life’s strong presence in Life and Health insurance will complement Altius’ capabilities across Life and General Insurance.

Beyond Cyprus, the unified platform is expected to explore opportunities for Universal Life’s expansion into the Greek insurance market.

Alpha Bank said the transaction is fully aligned with its capital management policy and exceeds all Group-level M&A criteria. It is expected to deliver a return on committed capital of over 20%, increase earnings per share by around 2%, and lift net profits from Cypriot operations by more than 20%, with limited impact on capital ratios.

Alpha Bank CEO Vassilis Psaltis described the deal as a bold step that reaffirms the Group’s long-term commitment to Cyprus, highlighting the strategic partnership with the Photos Photiades Group as a foundation for sustainable growth.

Paulos Photiades, CEO of the Photos Photiades Group and Chairman of Universal Life, said the agreement strengthens Universal Life’s competitiveness while creating added value for customers. Evan Gavas, First Executive Director of Universal Life, called the partnership a major milestone that accelerates growth locally and internationally.

Completion of the transaction is expected in the third quarter of 2026, subject to regulatory approvals and customary conditions.