Alpha Bank is moving to shake up Cyprus’ insurance sector, announcing a major deal that will merge two well-known insurers into what is expected to become one of the country’s biggest insurance groups.
The bank said it has agreed on the key commercial and legal terms for a strategic combination between Universal Life Insurance and Altius Insurance, a move that would place the new company among the top three insurers in Cyprus, both in life insurance and general insurance, with a particularly strong grip on accident and health coverage. This is a consolidation play: two insurance companies joining forces, backed by a major bank, to create a bigger, stronger player in a crowded market.
Under the agreement, Alpha will buy all the shares of Altius Insurance. It has also struck a deal with most of Universal Life’s shareholders to merge Universal and Altius into one single insurer.
Once that merger is completed, an Alpha Group company will acquire a majority stake in the new entity, effectively giving the bank control.
A key part of the deal is a long-term strategic partnership between Alpha and the Photos Photiades Group, Universal Life’s main shareholder.