Bank of Cyprus has finalized the acquisition of 100% of Ethniki Insurance Cyprus for a cash consideration of €29.5 million, in line with the binding agreement signed between the two parties.

As Brief reports, the transaction is expected to enhance the Group’s gross written premiums and net insurance income by approximately 15% and 10%, respectively. This implies a notable increase in the contribution of non-interest income to the Group’s overall profitability.

The completion of the transaction is subject to regulatory approvals and is expected to close in the second half of 2025.

Ethniki Insurance Cyprus holds a solid position in both the life and general insurance sectors in Cyprus, with market shares of 2% and 4%, respectively. Upon completion of the acquisition, the Group will further strengthen its leading position in the Cypriot insurance industry.

According to Bank of Cyprus, the transaction is aligned with the Group’s strategic objective of expanding its insurance operations and reinforcing its diversified business model.

Deloitte acted as financial and actuarial advisor, while Chryssafinis & Polyviou provided legal and competition-related advisory services for the transaction.

For the financial year ending 31 December 2024, net income from insurance operations represented 17% of Bank of Cyprus’s non-interest income, amounting to approximately €46 million. This marked a 14% year-on-year decline, attributed to higher claims and the recalibration of insurance models.