Canada’s Fairfax has entered a deal with Eurobank, the Greek bank, to acquire 80% stake in Eurolife ERB Insurance Group Holdings for $344 million.
Eurolife is Greece’s third largest insurer with gross written premiums of around $300 million as of September this year and offers life and non-life insurance products as well as brokerage services in Greece and Romania. It distributes its insurance product and services through Eurobank’s network in Greece and Romania. Further to the acquisition, Eurolife and its subsidiaries will continue working under the strong leadership of Alexander Sarrigeorgiou, the current CEO and his Eurolife team.
Prem Watsa, chairman and CEO of Fairfax said, “We are absolutely thrilled to have Eurolife join the Fairfax group. It has an excellent long-term track record in the Greek insurance sector, and we look forward to working with the Eurolife team and our partners at Eurobank to further develop the Eurolife business over the long-term.”
RBC analyst Mark Dwelle said, “This is the type of opportunistic acquisitions Fairfax has done repeatedly over the years – acquiring a good franchise that wouldn’t normally even come to market, at a fair price by being able to be a fast, fair and friendly acquiring partner.” The sale is expected to lift Eurobank’s core tier 1 capital ratio by around 26 basis points to 17.8%.