The Cypriot insurance sector is entering a new phase of consolidation as banks steadily expand their footprint and emerge as the market’s dominant players. Recent moves by Alpha Bank and Eurobank, combined with the already strong position of Bank of Cyprus, confirm that insurance operations have become a strategic pillar for the banking system, well beyond traditional lending activity.
Alpha Bank’s dual move reshapes the landscape
The most decisive recent development is Alpha Bank’s dual transaction, agreeing to acquire Altius Insurance and merge it with Universal Life. This deal creates the third largest insurance group in Cyprus, alongside the Eurobank group, which includes ERP Cyprialife and ERP Asfalistiki, and the insurance arm of Bank of Cyprus, comprising Eurolife and General Insurance of Cyprus. The transaction further reinforces the banking imprint on the insurance sector, particularly in life insurance.
Market shares underline bank dominance
Market data clearly illustrate the shift. According to figures from the Association of Insurance Companies of Cyprus for the first nine months of 2025, Eurolife holds a 30.1 percent share of the life insurance market, with premium income of €186.5 million. It is followed by Eurobank’s ERP Cyprialife with a 22.2 percent share and €137.6 million in premiums, while the combined Universal Life and Altius scheme accounts for 19.5 percent and €120.8 million.
In total, banks control 71.8 percent of the life insurance market, confirming their overwhelming dominance in the most profitable segment, which also includes health and accident insurance.
A more fragmented general insurance segment
In general insurance, the picture is more fragmented, although banking groups remain influential. General Insurance of Cyprus holds a 13.7 percent market share with premiums of €54.6 million, ERP Asfalistiki stands at 13.1 percent with €54.4 million, while Altius accounts for 4.7 percent with €18.8 million. Despite greater dispersion, the trend towards concentration continues, driven by large groups investing in scale, expertise and distribution networks.
The business logic behind bancassurance
The expansion of banks into insurance is grounded in clear commercial logic. Insurance provides stable and recurring income streams, reducing reliance on interest-based revenues, while bancassurance enables cross-selling to an existing customer base. At the same time, digital distribution and growing demand for private health insurance are opening new growth avenues.
In Alpha Bank’s case, the agreement goes beyond acquisition and consolidation, establishing a long-term strategic partnership with the Photos Photiades Group, the main shareholder of Universal Life. Alpha Bank chief executive Vassilis Psaltis has highlighted that combining Universal Life’s leadership in life and health insurance with Altius’ expertise in bancassurance creates a robust platform with strong growth prospects.
Eurobank’s earlier consolidation move
Eurobank paved the way following its acquisition of Hellenic Bank, proceeding to acquire the Cypriot operations of CNP Assurances and consolidate all activities under Eurobank Limited. For the group, Cyprus functions as a strategic hub linking Europe with emerging markets, strengthening the island’s role on the regional financial map.
Cyprus’ insurance sector is rapidly transforming into a field of intense banking competition. Banks are no longer confined to distributing insurance products but are evolving into fully fledged insurance groups, set to exert decisive influence on the market’s structure and dynamics in the years ahead.