Canadian investment giant Fairfax Financial Holdings has agreed to buy 45% of ERB Insurance, the general insurance company owned by Eurobank Limited, for €59 million.
The deal, seen as a strong vote of confidence in the Cypriot economy, values the insurer at about 1.45 times its book value, and includes an option for Fairfax to acquire the remaining 55% at a later stage, giving the company full ownership in the future.
At the same time, Eurobank announced a major deal in Greece to buy 80% of Eurolife Life Insurance from Fairfax for €813 million, allowing the bank to take full control of its life insurance operations while retaining a 20% stake in Eurolife’s general insurance unit.
Eurobank said the twin transactions, in Greece and Cyprus, strengthen its bancassurance strategy and diversify its revenue sources, while Fairfax’s investment underscores its long-term confidence in both markets.
In simple terms, Cyprus just secured another major international investor, and Eurobank is tightening its grip on its insurance business, a win-win that boosts both financial stability and foreign trust in the island’s economy.
Fokion Karavias: “This is an important milestone for Eurobank"
Eurobank CEO Fokion Karavias stated: “This is an important milestone for Eurobank. The divestment from Eurolife Holdings in 2016 was a key part of the Bank’s restructuring plan during a period 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 reacquire a strategically significant asset, essential for the further development of wealth management and bancassurance operations.
At the same time, Fairfax’s investment in ERBA’s share capital will, through its expertise, contribute to the further growth of the General Insurance sector, while also reflecting its strong interest in the broader Cypriot economy.”
Leadership appointments
- Alexander Sarrigeorgiou, currently Chairman and CEO of Eurolife Holdings, will assume the role of Executive Chairman of the Board of Eurolife General Insurance and will be proposed as Non-Executive Chairman of the Board of ERBA, contributing his experience and expertise to the companies’ further growth.
- Vassilis Nikiforakis, currently Executive Board Member and CFO of Eurolife Holdings, will become CEO of Eurolife General Insurance.
- Nikos Delendas, currently Executive Board Member and General Manager of Sales, Training, and Product Development at Eurolife Holdings, will be proposed as Non-Executive Chairman of the Board and CEO of Eurolife Life, to lead the company in its new phase under the guidance of the Board.
Both transactions are subject to completion of actuarial and financial due diligence, obtaining necessary regulatory approvals, and the procedures required for related-party transactions (Articles 99 et seq. of Law 4548/2018).
Their completion is expected within the first quarter of 2026.
