Hellenic Bank and CNP Assurances have announced that they are in exclusive negotiations for the acquisition of CNP Assurances' insurance operations in Cyprus, valued at €182 million. The deal is expected to positively impact Hellenic Bank's capital, raising its total capital ratio to 25.8%.

According to an announcement by Hellenic Bank, the transaction is seen as a significant milestone in the further development and strengthening of the bank's insurance activities. It will expand its product offerings and customer base, with expectations that Hellenic Bank will become a leading player in Cyprus' insurance market, with market shares of approximately 30% in life insurance and 23% in general insurance.

The agreement is considered final, but it still requires regulatory approvals and is expected to be completed by the first quarter of 2025. The next step in the process is to inform and consult with the European Works Council of CNP Assurances.

The deal includes the sale of CNP Assurances' subsidiary, CNP Cyprus Insurance Holdings Limited, which operates in Cyprus and Greece. This group includes CNP Cyprialife Ltd, CNP Asfalistiki Ltd, CNP Zois SA, and CNP Cyprus Properties Ltd.

Hellenic Bank stated that the sale would proceed through a Put Option Agreement, under which CNP Assurances has the option to sell, and Hellenic Bank is irrevocably committed to acquiring CNP Cyprus Insurance Holdings if the option is exercised. This sale is subject to regulatory approvals, including from the Competition Protection Commission, and is expected to be completed by early 2025.

CNP Cyprus Insurance Holdings Limited is one of Cyprus' leading insurance companies, offering life and general insurance products and services through the country's largest network of independent agents. In 2023, it employed around 330 people and had gross written premiums of €236 million, with market shares of approximately 24% in life insurance and 15% in general insurance.

The total price for the acquisition is expected to be €182 million, representing a 1x multiple of the book value of the acquired company, with an estimated capital impact of around 2.6 percentage points.

The interim CEO of Hellenic Bank, Antonis Rouvas, commented that this move will significantly enhance the bank's insurance operations and establish it as a leading financial group with a strong presence in both banking and insurance in Cyprus. He mentioned that the deal is expected to complement Hellenic Bank's business model and offer significant growth opportunities.

Existing operations of the involved companies will continue as usual, with insurance policies from both CNP Assurances and Hellenic Bank remaining in effect without affecting customers' rights or obligations.

The bank consulted BNP Paribas for the acquisition, Ioannides Demetriou LLC for legal matters, Cronje & Yiannas Actuaries and Consultants Ltd for actuarial and human resources issues, and Deloitte Ltd for financial and accounting matters. The bank will keep the public updated on any developments, as required by applicable laws and regulations.