Hellenic Bank reportedly close to insurance company acquisition

Hellenic Bank is reportedly on the verge of finalising a deal with French insurer CNP Assurances to acquire its insurance operations in Cyprus, it emerged on Wednesday.

Citing sources within the market, the Cyprus News Agency (CNA) said that the agreement may be sealed as early as the end of this week.

The acquisition is expected to result in the formation of the largest insurance group in Cyprus, commanding substantial market shares in both the life and general insurance sectors.

It is worth noting that the Hellenic Bank Group already possesses two insurance companies, namely Hellenic Life and Pancyprian Insurance.

The agency further highlighted that amidst the ongoing acquisition process led by Greek lender Eurobank, Hellenic Bank stands out with its substantial surplus liquidity and robust capital adequacy ratios.

With these factors in mind, the bank had previously signalled its strategic intent to diversify revenue streams by exploring various avenues to bolster non-interest income, such as the potential acquisition of insurance operations.

During the presentation of the bank’s annual results for 2023, interim CEO Antonis Rouvas neither confirmed nor denied the reports but hinted at the institution’s financial flexibility, stating that “with the capital we have, it means that we have the financial flexibility at times to consider possible acquisitions”.

“We want to increase our non-interest income, and the insurance sector provides a qualitatively good income,” he added at the time.

“We are exploring alternative options to increase non-interest income,” Rouvas concluded.