Fairfax Financial Holdings has signed a term sheet with Eurobank Ergasias Services and Holdings for the sale of its 80 per cent stake in Eurolife FFH’s life insurance operations for €813 million.

Following completion of the deal, Eurolife’s life insurance business will become wholly-owned by Eurobank.

Fairfax will retain its 80 per cent stake in Eurolife’s property and casualty insurance operations, maintaining a significant presence in the non-life insurance sector.

As part of the agreement, Fairfax has also agreed to acquire a 45 per cent stake in Eurobank’s Cyprus-based insurer ERB Asfalistiki for €59 million, with rights to acquire the remaining 55 per cent over time.

The size of the transaction is described as very substantial, and its impact on Eurobank is considered highly significant.

Eurobank’s CET1 capital stands at €7.9 billion with a CET1 ratio of 15.5 per cent, making the deal manageable from a capital adequacy perspective.

Analysts noted that the rising proportion of fees from the transaction should improve revenue visibility and reduce volatility linked to interest rates.

The transaction is expected to close in the first quarter of 2026, with a transaction multiple of 1.45 times, broadly in line with Eurobank’s 1.4 times multiple.

Eurolife’s life insurance business currently holds 21 per cent of the Greek market, giving Eurobank a 12 per cent boost to fees and commissions, a 5 per cent increase to core pre-provision income, and a 2 per cent uplift to earnings.