Fairfax Financial Holdings has signed a term sheet with Eurobank Ergasias Services and Holdings, which will see Eurobank or its affiliate acquiring an 80% stake in the life insurance business of Eurolife FFH Insurance Group Holdings (Eurolife) from Fairfax affiliates for €813m ($944m) in cash.

Post-transaction, Eurobank will fully own Eurolife’s life insurance operations, while Fairfax will continue to hold an 80% stake in the property and casualty (P&C) insurance business of Eurolife.

Concurrently, Fairfax will obtain a 45% equity interest in ERB Asfalistiki, the entity through which Eurobank operates its P&C insurance business in Cyprus, for a cash consideration of €59m.

Fairfax will also have the option to purchase the remaining 55% stake in ERB Asfalistiki in the future.

The completion of the transactions is contingent on standard closing conditions and is due to be finalised in the first quarter of 2026.

Upon finalisation, Alexandros Sarrigeorgiou will be appointed as executive chairman of Board of Directors for Eurolife’s general insurance business, and Vassilis Nikiforakis, currently Eurolife’s chief financial officer, will take over as CEO and managing director of the general insurance division.

This deal is expected to bolster Fairfax’s presence in the Greek insurance industry.

Fairfax CEO and chairman Prem Watsa said: “We are very pleased to be able to maintain the focus of our insurance operations on property and casualty insurance and reinsurance, while still benefitting from the continued success of the Eurolife life insurance business through our ownership stake in Eurobank.

“Eurolife’s life insurance business has done incredibly well under the leadership of Alexandros Sarrigeorgiou, and we expect that it will continue to perform very well under the ownership of Eurobank and its leader, Fokion Karavias.”