Hellenic Bank and the French insurance group CNP Assurances are reportedly close to reaching an agreement for the acquisition of CNP's insurance operations in Cyprus.

According to industry sources, the deal could be finalized as early as the end of the week.

The acquisition is expected to create Cyprus' largest insurance group, with leading market shares in both life insurance and general insurance. The Hellenic Group currently operates two insurance companies: Hellenic Life and Pancyprian.

Although Hellenic Bank is in the process of being acquired by Greece's Eurobank, it has significant excess liquidity and high capital ratios. This has allowed it to consider strategic moves to increase its non-interest income, including the acquisition of insurance businesses.

In fact, during the presentation of the bank's 2023 annual results, the interim CEO, Antonis Rouvas, without dismissing the reports, stated, "With the capital we have, it means we have the financial flexibility to consider possible acquisitions from time to time."

"We want to increase our non-interest income; the insurance sector has quality income streams. We are exploring alternative options to grow our non-interest income," added Mr. Rouvas.