So, Fairfax’s profit amounts to €489 million from the sale itself, but including the dividends it received over the years — estimated at around €300 million — the total profit comes to roughly €800 million.
The Canadian group Fairfax, which is also a major shareholder in Eurobank with a 32.9% stake, has made a strategic decision to exit the life insurance sector. Ιt sold 80% of Eurolife FFH Life Insurance to Eurobank for €813 million, while Eurobank already owned the remaining 20%.
It is worth noting that Eurolife originally belonged to Eurobank, but under pressure from the Single Supervisory Mechanism (SSM) of the European Central Bank, the bank was forced to sell it in 2016 as part of its restructuring plan, at a price of around €324 million.
From this transaction alone, Fairfax earns a capital gain of €489 million, and including dividends received over the years (estimated at €300 million), the total profit amounts to roughly €800 million.
Accounting-wise, Fairfax’s participation in Eurobank has also been extremely profitable: its 32.9% stake is now worth €4.44 billion on the Athens Stock Exchange, versus an average acquisition cost of €1.14 billion, yielding a book profit of €3.3 billion. Adding the €800 million gain from Eurolife, it is widely viewed that Eurobank paid a premium price to buy back its former insurance arm — a move seen as mutually beneficial but costly given the interlinked shareholder relationship.
Strong market position of Eurolife FFH Life Insurance
Eurobank announced that it has signed a Term Sheet with Fairfax Financial Holdings Limited to acquire 80% of Eurolife FFH Life Insurance (Eurolife Life) for €813 million.
The deal reflects a price-to-book value (P/BV) multiple of approximately 1.45x, based on data as of August 31, 2025.
Eurolife Life is a leading life insurer in Greece, holding a market share of around 21% for 2024, and is expected to reach gross written premiums of roughly €600 million in 2025.
Beyond its bancassurance partnership with Eurobank, the company maintains a broad distribution network of over 1,200 insurance intermediaries.
The completion of this acquisition is expected to enhance Eurobank’s profitability base, boost commission income, and strengthen its bancassurance offering, improving the overall customer experience.
Deal also covers ERB Insurance in Cyprus
In parallel with the Eurolife transaction, Fairfax will acquire 45% of ERB Insurance (ERBA), Eurobank’s general insurance subsidiary in Cyprus, for €59 million.
Fairfax will also have the option to purchase the remaining 55% at a later stage.
This partnership will strengthen Eurobank’s strategic position in Cyprus, opening new opportunities in the insurance market by combining Fairfax’s expertise in risk management and product development with Eurobank’s regional presence.
Revenue expected to rise by approximately 12%
These transactions are projected to increase Eurobank’s consolidated fee income by around 12%, with insurance operations making a significant contribution.
They are also expected to boost core pre-provision income (Core PPI) by about 5%, and earnings per share (EPS) by €0.02, while improving return on tangible book value (RoTBV) by roughly 100 basis points.
The impact on the Group’s CET1 ratio is estimated at around 120 basis points.
Eurobank may also apply to be classified as a Financial Conglomerate (FICO) under Article 49 of the Capital Requirements Regulation (CRR) — the so-called “Danish Compromise” — which would offer additional capital benefits.
Both transactions are subject to due diligence, regulatory approvals, and compliance with related-party transaction procedures (Articles 99 et seq. of Law 4548/2018).
Their completion is expected within Q1 2026.
Management changes
Following completion:
- Mr. Alexandros Sarrigeorgiou, Chairman & CEO of Eurolife Holdings, will become Executive Chairman of Eurolife General Insurance and is proposed as Non-Executive Chairman of ERBA.
- Mr. Vasilis Nikiforakis, CFO of Eurolife Holdings, will assume the role of CEO of Eurolife General Insurance.
- Mr. Nikos Delentas, General Manager of Sales & Training at Eurolife Holdings, is proposed as Non-Executive Chairman of Eurolife Life.
Karavias: Eurobank’s strength allows it to reclaim a strategic asset
Eurobank CEO Fokion Karavias stated: “This is a significant milestone for Eurobank.
The divestment from Eurolife Holdings in 2016 was a crucial part of the Bank’s restructuring plan at a time when most Greek banks were compelled to sell assets following the severe consequences of the financial crisis.
Today, Eurobank’s restored financial strength allows it to reacquire a strategically important asset, essential for the further growth of its wealth management and bancassurance activities.
At the same time, Fairfax’s investment in ERBA’s share capital will contribute, through its expertise, to the expansion of the General Insurance business, while also reflecting its continued interest in the Cypriot economy.”
www.bankingnews.gr
It is worth noting that Eurolife originally belonged to Eurobank, but under pressure from the Single Supervisory Mechanism (SSM) of the European Central Bank, the bank was forced to sell it in 2016 as part of its restructuring plan, at a price of around €324 million.
From this transaction alone, Fairfax earns a capital gain of €489 million, and including dividends received over the years (estimated at €300 million), the total profit amounts to roughly €800 million.
Accounting-wise, Fairfax’s participation in Eurobank has also been extremely profitable: its 32.9% stake is now worth €4.44 billion on the Athens Stock Exchange, versus an average acquisition cost of €1.14 billion, yielding a book profit of €3.3 billion. Adding the €800 million gain from Eurolife, it is widely viewed that Eurobank paid a premium price to buy back its former insurance arm — a move seen as mutually beneficial but costly given the interlinked shareholder relationship.
Strong market position of Eurolife FFH Life Insurance
Eurobank announced that it has signed a Term Sheet with Fairfax Financial Holdings Limited to acquire 80% of Eurolife FFH Life Insurance (Eurolife Life) for €813 million.
The deal reflects a price-to-book value (P/BV) multiple of approximately 1.45x, based on data as of August 31, 2025.
Eurolife Life is a leading life insurer in Greece, holding a market share of around 21% for 2024, and is expected to reach gross written premiums of roughly €600 million in 2025.
Beyond its bancassurance partnership with Eurobank, the company maintains a broad distribution network of over 1,200 insurance intermediaries.
The completion of this acquisition is expected to enhance Eurobank’s profitability base, boost commission income, and strengthen its bancassurance offering, improving the overall customer experience.
Deal also covers ERB Insurance in Cyprus
In parallel with the Eurolife transaction, Fairfax will acquire 45% of ERB Insurance (ERBA), Eurobank’s general insurance subsidiary in Cyprus, for €59 million.
Fairfax will also have the option to purchase the remaining 55% at a later stage.
This partnership will strengthen Eurobank’s strategic position in Cyprus, opening new opportunities in the insurance market by combining Fairfax’s expertise in risk management and product development with Eurobank’s regional presence.
Revenue expected to rise by approximately 12%
These transactions are projected to increase Eurobank’s consolidated fee income by around 12%, with insurance operations making a significant contribution.
They are also expected to boost core pre-provision income (Core PPI) by about 5%, and earnings per share (EPS) by €0.02, while improving return on tangible book value (RoTBV) by roughly 100 basis points.
The impact on the Group’s CET1 ratio is estimated at around 120 basis points.
Eurobank may also apply to be classified as a Financial Conglomerate (FICO) under Article 49 of the Capital Requirements Regulation (CRR) — the so-called “Danish Compromise” — which would offer additional capital benefits.
Both transactions are subject to due diligence, regulatory approvals, and compliance with related-party transaction procedures (Articles 99 et seq. of Law 4548/2018).
Their completion is expected within Q1 2026.
Management changes
Following completion:
- Mr. Alexandros Sarrigeorgiou, Chairman & CEO of Eurolife Holdings, will become Executive Chairman of Eurolife General Insurance and is proposed as Non-Executive Chairman of ERBA.
- Mr. Vasilis Nikiforakis, CFO of Eurolife Holdings, will assume the role of CEO of Eurolife General Insurance.
- Mr. Nikos Delentas, General Manager of Sales & Training at Eurolife Holdings, is proposed as Non-Executive Chairman of Eurolife Life.
Karavias: Eurobank’s strength allows it to reclaim a strategic asset
Eurobank CEO Fokion Karavias stated: “This is a significant milestone for Eurobank.
The divestment from Eurolife Holdings in 2016 was a crucial part of the Bank’s restructuring plan at a time when most Greek banks were compelled to sell assets following the severe consequences of the financial crisis.
Today, Eurobank’s restored financial strength allows it to reacquire a strategically important asset, essential for the further growth of its wealth management and bancassurance activities.
At the same time, Fairfax’s investment in ERBA’s share capital will contribute, through its expertise, to the expansion of the General Insurance business, while also reflecting its continued interest in the Cypriot economy.”
www.bankingnews.gr
Σχόλια αναγνωστών