Hellenic close to acquiring CNP Cyprus
Everything appears to be proceeding smoothly and insurer CNP Cyprus will soon be under the ownership of Hellenic Bank. Sources suggest a favorable outcome may be reached by the weekend.
While the exact price of the takeover remains undisclosed, it is believed to fall within the range of approximately 200 million euros, subject to negotiation based on the portfolio and agreement terms with Hellenic. Once finalized, Hellenic will add CNP to its portfolio, alongside Pancyprian and Hellenic Life, while also securing a minority stake in Universal Life.
In 2023, Hellenic recorded a net income of €14.3 million from insurance operations, marking a decrease of 23% compared to 2022. This decline is primarily attributed to higher net expenses from reinsurance contracts, driven by reduced reinsurance commission income and lower recoverable claims, partially offset by increased revenues from insurance operations. Additionally, an uptick in insurance finance costs, resulting from fluctuations in interest rates and yield curves, further impacted net income from insurance operations.
CNP Cyprus’ other potential acquirer, Germany’s ERGO Insurance, has withdrawn from the bidding process.
