Plan agreement Eurobank Holdings signed with Fairfax Financial Holdings Limited, Eurobank Ergasias announced Services and Holdings Société AnonyEurobank».
Under the agreement, Eurobank will acquire 80% of the Life activity (“EUROLIFE LIFE”) (“Transaction”) for a cash price of € 813 million, which corresponds to a price index for accounting value (P/BV) about 1.45 times with a reference date on August 3125. Eurolife Life and will maintain a 20% participation in Eurolife Holdings (Eurolife General Insurance).
Eurolife Life is a leading life insurance company in Greece, holding a market share of about 21% in terms of mixed registered premiums (GWP) for the financial year 2024. For 2025, it is envisaged that the company will achieve mixed registered premiums of approximately € 600 million beyond the Bancassurance partnership with Eurobank, Eurolife Life maintains an extensive distribution network consisting of more than 1,200 contracts with insurance intermediaries, both agents and brokers.
The transaction will allow Eurobank to boost its profitability base through the complete integration of Eurolife Life’s financial results, to further differentiate its sources of revenue through increased supplies, and to maximize the capabilities of the Bancassurance platform. Through the integration of functions, Eurobank aims at the wider range of innovative bank insurance and services, improving the overall experience of the customer.
ERB of Cyprus Insurance
Along with the transaction, Fairfax will ensure that its affiliated companies acquire 45% of ERB Insurance (“ERBA”), the Eurobank Limited Insurance Company (ERBA “, for the price of approximately € 59 million in cash, which is about € 59 million in cash. times with reference date on August 31, 2025. Fairfax will have the right to acquire the balance of 55% of ERBA’s share capital in later.
This strategic cooperation enables the two companies to combine their strengths into risk management and management, as well as in the development of products, achieving increased functional efficiency and creating new prospects in Greece and Cyprus markets. In addition, Fairfax’s investment in ERBA’s share capital is a strong vote of confidence in the company, its shareholder, Eurobank Limited and the Cypriot economy as a whole.
Influence of transactions
Transactions will increase supplies and revenue from Eurobank supplies to a consolidated level of approximately 12%, with the contribution of capital management revenue and insurance activities being more than 30% on total supplies. Transactions are prosthetic (“Accretive”) by about 5% in the basic prediction of predictions (CORE PPI) and 2 minutes of euro in EPS per share (EPS), while improving the return on the tangible accounting value (Return on Tangible Book Value) by approximately 100 base points. Due to goodwill recognition accounting, transactions are expected to have a negative effect of 6 minutes of the euro on estimated tangible accounting value per share.
The total effect of the two transactions on the EUROBANK Group’s CET1 index (based on the 3rd quarter of 2025) is estimated at about 120 basis points.
Furthermore, Eurobank intends to apply for a classification as a Financial Conglomerate – Fico and to request the implementation of the supervisory mechanism of Article 49 of the Capital Claims Regulation (CRR), also known as the “Danish Compromise”, which is expected to offer significant capital benefit.
Mr. Alexandros Sarrigeorgiou, today’s President and CEO of Eurolife Holdings, will take over the position of EUROLIFE GENERAL INSURANCE Board of Directors and will be nominated for the post of non -executive chairman of the Board of Directors of ERBA, company. Mr. Vassilis Nikiforakis, today an executive member of the Board of Directors of Eurolife Holdings and Chief Financial Officer, will take over the position of Managing Director at Eurolife General Insurance. Mr Nikos Delendas, today an executive member of the Board of Directors of Eurolife Holdings and General Manager of Sales, Education and Product Development, will be proposed for the post of non -executive chairman of the Board of Directors and Managing Director of Eurolife Life, in order to lead the company in the new phase.
Both transactions are subject to the completion of the deue diligence, to ensure the required approvals by the competent authorities, and the processing of the process for transactions with linked parties (Articles 99 et seq. Law 4548/2018). Their completion is expected in the first quarter of 2026.
Eurobank CEO, Mr. Fokion Karavia, said: “This is an important milestone for Eurobank. The disinvestment by Eurolife Holdings in 2016 was a critical element of the Bank’s restructuring plan, at a time when most Greek banks were forced to firm assets after the serious consequences of the Greek financial crisis. Today, Eurobank’s restored financial power allows it to be re -attributed to a strategic importance, necessary for the further development of assets and bancassurance. At the same time, Fairfax’s investment in ERBA’s share capital will, through its know -how, contribute to the further development of the General Insurance Sector, while indicating its significant interest in the wider Cypriot economy. “.