Under the terms of the agreement, Fairfax affiliates will acquire 45% of the share capital of ERB Insurance for EUR 59 million. And Fairfax will also retain the right to acquire the remaining 55% of the company's share capital later, which indicates the group's long-term commitment to the Cypriot market.
It is noted that the collaboration between Eurobank and Fairfax aims to combine strengths of the two companies in critical areas such as risk underwriting and management, as well as development of new insurance products. Through this synergy, it is expected to achieve increased operational efficiency and create new growth prospects in both the Greek and Cypriot markets.
Completion of the transaction is expected in the first quarter of 2026.
The transaction is part of a broader agreement between the two companies, where Eurobank signed a draft agreement with Fairfax Financial Holdings Limited to acquire 80% of Eurolife's life business for EUR 813 million. Following the acquisition, Eurobank will own 100% of Eurolife Life and will retain a 20% stake in Eurolife Holdings' general insurance business, the source writes.
Eurolife Life is a leading life insurance company in Greece, holding a market share of approximately 21% in terms of GWP for the financial year 2024. In addition to the bancassurance partnership with Eurobank, Eurolife Life maintains an extensive distribution network, consisting of more than 1,200 contracts with insurance intermediaries.
“This is a significant milestone for Eurobank. The sale of Eurolife Holdings’ assets in 2016 was a crucial element of the Bank’s restructuring plan, at a time when most Greek banks were forced to divest assets, following the severe consequences of the Greek financial crisis. Today, Eurobank’s restored financial strength allows it to regain a strategically important asset, essential for the further development of its asset management and bancassurance operations. At the same time, Fairfax’s investment in ERBA’s share capital will contribute, through its expertise, to the further development of the general insurance segment, while demonstrating the bank’s significant commitment to the Cypriot economy”, commented Eurobank’s CEO, Mr. Fokion Karavias.
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