Alpha Bank has reached an agreement on key commercial and legal terms for a strategic merger of insurance operations in Cyprus, with the goal of forming one of the country’s top three insurance groups in both life and non-life sectors. 

The agreement involves Universal Life Insurance Public Company and Altius Insurance, and is expected to secure a leading position for the combined entity in the accident and health segment of the Cypriot insurance market. 

The agreement covers Alpha Bank’s acquisition of all issued share capital in Altius Insurance from its shareholders. 

Alpha Bank also agreed with the majority of the shareholders of Universal Life Insurance for a merger between Universal and Altius into a single insurance entity. 

The resulting combined entity will see a member of Alpha Bank Group hold the “majority interest” after the transaction is completed. This will in turn lead to Alpha Bank holding majority stake in the combined entity.  

As part of the plans, Alpha Bank will enter a strategic partnership with Photos Photiades Group, the main shareholder group at Universal.  

Both parties intend to work together on expanding insurance activities in Cyprus and possibly beyond.  

The present management team at Altius is expected to remain involved, supporting the execution of the joint strategy and addressing any risks associated with integration. 

The transaction is anticipated to be completed during the third quarter of 2026, subject to regulatory approvals and standard conditions. 

Alpha Bank noted that this transaction fits within its established capital allocation approach.  

The bank expects a return on capital employed (RoCET) above 20%, along with earnings per share growth of roughly 2%, and forecasts net income from its Cyprus activities to increase by over 20%. 

Alpha Bank CEO Vassilios Psaltis said: “We are delighted in making this bold step to actively shape the Cypriot insurance market by investing into two entities to create the third largest insurance group.  

“We are forming a strategic partnership with the Photos Photiades Group, one of most venerable Cypriot business families, who gives us a valuable base to build a challenger proposition in the Cypriot insurance space, and to further strengthen our ties with the Cypriot business community.  

“By combining Universal’s impeccable brand name and its long-standing leadership in Life and Health insurance with Altius’ strong insurance capabilities and proven bancassurance expertise, we create a winning insurance platform, with strong further growth momentum.”