Alpha Bank has struck a deal to create one of Cyprus’s three largest insurance groups through parallel acquisitions that will merge two established insurers into a single entity with over 100,000 clients.
The Greek lender announced on Friday it had agreed key commercial and legal terms to acquire Altius Insurance and merge it with Universal Life Insurance Public Company, creating a combined insurer with strong positions in both life and general insurance, particularly accident and health cover.
Alpha Bank will acquire the entire share capital of Altius Insurance from its shareholders whilst securing agreement with a majority of Universal Life shareholders for the merger. An Alpha Bank group entity will hold a majority stake in the new combined company.
The transactions mark a strategic push by Alpha Bank to strengthen its insurance operations in Cyprus, with the bank projecting returns on capital employed above 20% and an approximate 2% boost to earnings per share.
Strategic partnership with major shareholder
The deal includes a long-term strategic cooperation with the Photos Photiades Group, a major Universal Life shareholder, aimed at jointly pursuing insurance development goals in Cyprus and beyond.
Altius’s management team will remain actively involved in the process, ensuring operational continuity and limiting integration risk, according to the announcement.
Vassilis Psaltis, Alpha Bank’s chief executive, called the agreement “a bold step in shaping the Cypriot insurance market”. He said the strategic partnership with Photos Photiades creates strong foundations for a competitive insurance platform with significant growth prospects.
The combination of Universal’s commercial strength and Altius’s bancassurance expertise substantially enhances the group’s footprint, Psaltis said.
Financial targets and synergies
The transaction aligns fully with Alpha Bank’s capital management policy, exceeding the group’s criteria for acquisitions and mergers. Beyond the 20% return on capital employed, the bank expects return on tangible equity improvements with limited impact on its CET1 ratio.
The complementary nature of the merger should generate significant synergies by leveraging a network of approximately 400 insurance agents and a customer base exceeding 100,000 clients, strengthening cross-selling of banking and insurance products and asset management revenues.
After completion, the combined entity is expected to rank among Cyprus’s top three insurance groups, further strengthening its leading position in accident and health insurance.
The transaction is scheduled for completion within the third quarter of 2026, subject to all required regulatory approvals. Alpha Bank said it will continue updating investors on material developments in full compliance with applicable legal and regulatory frameworks.
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