Alpha Bank, one of Greece’s largest private-sector banking groups, offering universal financial services, has agreed key commercial and legal terms for a strategic merger of its insurance operations in Cyprus, aiming to build one of the country’s three largest insurance groups across both life and non-life lines.
Founded in 1879, it has played a central role in the nation’s economic development and today operates across Southeastern Europe through subsidiaries in Cyprus, Romania, and Luxembourg.
The plan brings together Universal Life Insurance Public Company and Altius Insurance. The combined business is expected to secure a leading position in the accident and health segment of the Cypriot market, where scale and distribution still matter.
Under the agreement, Alpha Bank will acquire all issued share capital of Altius Insurance from its existing shareholders. In parallel, the bank has reached terms with the majority shareholders of Universal Life for a merger of Universal and Altius into a single insurance entity.
Following completion, a member of Alpha Bank Group will hold a majority interest in the merged insurer, giving the bank effective control. Governance shifts with it.
The structure is designed to consolidate decision-making without sidelining existing operational expertise.
Alpha Bank will also enter a strategic partnership with Photos Photiades Group, the main shareholder group at Universal Life. The two parties plan to work together to expand insurance activity in Cyprus, with the door open to opportunities beyond the domestic market.
Management continuity looks deliberate. The current Altius leadership team is expected to remain involved, supporting execution of the joint strategy and managing integration risk. No clean-room reset here.
The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals and standard closing conditions. Timelines in Cyprus can stretch. Alpha Bank appears comfortable with that.
Financially, the bank frames the move as consistent with its capital allocation playbook. It expects return on capital employed above 20%, earnings per share growth of about 2%, and net income from Cyprus operations to rise by more than 20%.
Chief executive officer Vassilios Psaltis said the deal marks a deliberate step to reshape the Cypriot insurance market. He pointed to the combination of Universal’s brand and life and health franchise with Altius’ insurance capability and bancassurance reach as the foundation of a growth platform with momentum.
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.
Vassilios Psaltis, Alpha Bank CEO
“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,” Vassilios Psaltis said.
“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.”
According to Beinsure analysts, the transaction reflects a broader trend among regional banks toward deeper insurance integration. In smaller markets like Cyprus, consolidation often isn’t optional. It’s how challengers get built.