The Cypriot insurance industry is experiencing heightened merger and acquisition activity, mirroring developments in the banking sector, according to a report from Stockwatch.

Major Greek banks have recently pursued acquisitions of Cypriot financial institutions, and this trend is now extending to insurance, a sector seen as a lucrative avenue for expansion.

For years, the country’s largest insurance firms have been tied to banking institutions. Bank of Cyprus owns Eurolife and General Insurance, which have consistently held leading positions in the life and general insurance markets.

Recent data from the Insurance Association of Cyprus (IAC), covering the first nine months of 2024, shows that Eurolife recorded €140.8 million in life insurance premiums, securing a market share of 28.9 per cent.

Meanwhile, General Insurance reported €49.8 million in general insurance premiums, representing 11.1 per cent of the market, maintaining their position as industry leaders.

A major shift is expected with Hellenic Bank’s pending acquisition of the CNP Group, which includes CNP Cyprialife and CNP Insurance.

CNP Cyprialife, which currently holds a 23.8 per cent market share in life insurance, will see its combined share with Hellenic’s existing 6.4 per cent reach 30.2 per cent—overtaking Eurolife.

Similarly, CNP Insurance’s 10.9 per cent share, when combined with the 7.5 per cent held by Pancyprian Insurance, already under Hellenic Bank, would total 18.4 per cent, significantly surpassing General Insurance’s share.

Despite initial concerns about the future of private insurance following the introduction of the General Healthcare System (Gesy) in Cyprus nearly five years ago, the sector has continued to expand.

Many had expected private health insurance to decline, yet the industry has remained resilient and has even strengthened.

Figures for the first nine months of 2024 show an increase of 9.7 per cent in life insurance business and a 5.5 per cent rise in general insurance activity.

This continued growth and the sector’s rising profitability have attracted increased interest from large firms seeking to expand their presence through acquisitions.

Given the pace of economic expansion in Cyprus—outstripping that of many European Union countries—further mergers and acquisitions within the insurance market remain a strong possibility.

*This article is a translated version of content originally published on StockWatch.