CNP Assurances strengthens its presence in the Cypriot market following the acquisition from Bank of Cyprus of the remaining 49.9% stake in CNP Cyprus Insurance Holdings, a 50.1% subsidiary of CNP Assurances since the end of 2008.
The acquisition consideration amounts to €97.5m and will be financed by CNP Assurances using its own resources.
CNP Cyprus Insurance Holdings is the second largest insurance operator in Cyprus offering the full spectrum of life and non-life insurance products and services distributed through the largest network of independent agents in the country. In 2018, CNP Cyprus Insurance Holdings contributed €157m to CNP Assurances premium income (up by 8.4% compared to the previous year) and €7.3m to the Group’s net profit.
The acquisition of the Bank of Cyprus’ stake enables CNP Assurances to take full control of its subsidiary and thereby strengthen its position in Cyprus, a market with attractive growth potential in which CNP Cyprus Insurance Holdings is a leading player with a market share of 21 % in life and 13 % in non-life.
The completion of this acquisition will be subject to approval of the relevant regulatory authorities. Closing of the transaction is expected in the second half of 2019.
«Controlling 100% of the capital of CNP Cyprus Insurance Holdings demonstrates our confidence in the future of this subsidiary that offers the full spectrum of life and non-life insurance products and services in a country that has returned to growth since the 2013 crisis. This further reflects our confidence in the management team, which has been successfully involved in the recovery and development of the subsidiary since our initial investment in 2008» said Antoine Lissowski, CNP Assurances’ Chief Executive Officer.