Eurobank’s decision to reacquire full ownership of Eurolife FFH Life Insurance has been described as a credit-positive development for the Greek lender, according to a Moody’s assessment.

In its assessment, which was also shared by Cypriot daily Politis, the agency said that the deal, which values Eurolife at 1.45 times its book value, strengthens Eurobank’s position in the Greek insurance market, enhances its profitability, and diversifies its revenue base.

Moody’s noted that although the acquisition carries a moderate short-term capital cost, its long-term strategic and financial benefits are significant, reinforcing the bank’s credit profile as it continues to expand its presence in Greece and the wider region.

Eurobank Ergasias Services and Holdings S.A. and its subsidiary Eurobank S.A. announced on October 13, 2025, that they had agreed to buy the remaining 80 per cent stake in Eurolife FFH Life Insurance from Fairfax Financial Holdings Limited for €813 million, regaining full ownership of one of Greece’s leading life insurers.

The transaction marks a symbolic milestone for Eurobank, which was compelled to divest Eurolife during the Greek financial crisis in 2015 as part of its restructuring plan.

With its financial strength now restored, Eurobank is able to reintegrate a business that complements its core banking and asset management activities.

Moody’s observed that operational integration is expected to proceed smoothly, given that most of Eurolife’s employees are former Eurobank staff who share a common corporate culture and work ethic.

The agency also pointed out that around 80 per cent of Eurolife’s business in recent years has come through Eurobank’s distribution networks, highlighting the natural alignment between the two entities.

According to the report, the acquisition is projected to deliver a notable boost to profitability.

Eurobank’s management expects an increase of 100 basis points in the group’s return on tangible book value (RoTBV), which stood at 16.6 per cent in June 2025.

The deal is also seen as strengthening the bank’s organic capital generation capacity, since Eurolife’s profits will directly contribute to group earnings.

Revenues from fees and commissions are forecast to rise by about 12 per cent, with the share of income from asset management and insurance activities likely to exceed 30 per cent of total operating revenue, up from 22 per cent in mid-2025.

This, Moody’s said, would reduce Eurobank’s reliance on net interest income and support a more resilient earnings profile.

The integration will also expand Eurobank’s bancassurance and wealth management franchise, enabling the sale of a broader range of insurance and investment products to both retail and corporate clients.

The bank estimates an immediate negative impact of around 120 basis points on its Common Equity Tier 1 (CET1) ratio, reflecting goodwill from the acquisition.

However, Eurobank plans to seek approval for the so-called Danish Compromise under Article 49 of the EU Capital Requirements Regulation, which, if granted by the Single Supervisory Mechanism (SSM) next year, would mitigate the capital impact.

Meanwhile, Eurobank’s Cyprus subsidiary, Eurobank Limited, has agreed to sell 45 per cent of its general insurance arm, ERB Asfalistiki (ERBA), to Fairfax for €59 million, marking the Canadian group’s first entry into the Cypriot insurance market.

Fairfax will retain an option to acquire the remaining 55 per cent of ERBA in the future.

According to Moody’s, the transaction brings a strong international partner to Eurobank’s Cypriot insurance operations and supports the group’s regional insurance activities.

Both transactions remain subject to regulatory approvals and are expected to close in the first half of 2026, after which Eurobank will begin fully consolidating Eurolife’s results.

Eurobank completes share buyback under 2025 programme

In related news, Eurobank Ergasias Services and Holdings S.A. (Eurobank Holdings) announced this week the completion of another round of share repurchases under its 2025 Share Buyback Programme.

The programme was approved by the bank’s annual general meeting on April 30, 2025, and further authorised by its board of directors on the same date.

Between October 13 and October 17, 2025, the group acquired a total of 2,118,582 own shares listed on the Athens Stock Exchange, at an average purchase price of €3.5486 per share. The total cost of the transactions amounted to €7.52 million.

Following these purchases, Eurobank Holdings now holds 53,349,394 of its own shares, representing 1.4510 per cent of its paid-up share capital at the time of the AGM decision.

The announcement was made in accordance with EU Regulation No. 596/2014 of the European Parliament and Council of April 16, 2014, and Delegated Regulation (EU) 2016/1052 of the European Commission dated March 8, 2016.

Eurobank earns major digital banking awards from Global Finance

Eurobank has also been named “Best Consumer Digital Bank in Western Europe” for the sixth consecutive year, while also receiving the “Best User Experience (UX) for Businesses” award at the World’s Best Digital Bank Awards 2025 organised by Global Finance.

In total, the bank collected 17 distinctions for both retail and corporate digital services, reaffirming its long-term commitment to innovation, quality, and customer-focused digital transformation.

Among its achievements, Eurobank was recognised as “Best Digital Bank in Greece” for both individuals and businesses, and as having the “Best Mobile Banking App” in both categories.

The awards highlight Eurobank’s dedication to improving customer experience and operational efficiency through its Digital Factory, the bank’s agile centre for developing digital solutions that focus on user experience, speed, and flexibility.

According to Global Finance, winners of the 2025 awards stood out for the excellence, effectiveness, and innovation of their digital platforms. Evaluations were conducted by the magazine’s editorial team in collaboration with a panel from Infosys, a global leader in technology and consulting.

The assessment was based on criteria such as digital customer acquisition and engagement strategies, growth of the digital client base, quality and diversity of online products, tangible benefits from digital initiatives, and the design and functionality of online platforms.

Eurobank was the only Greek systemic bank to receive 17 separate honours this year, a recognition that underscores its consistent investment in digital banking services that combine interoperability, speed, and convenience.

The bank said that the latest awards reflect its role in driving the digital transformation of the Greek banking sector and its focus on delivering secure, innovative, and seamless digital experiences to its customers.