The banking and insurance sectors in Cyprus have largely shifted to the control of Greek groups, intensifying competition among them, with deal-making activity rushing to close by the end of 2025.
The latest deal, at least based on current information, was secured by Alpha Bank, the third systemic bank in Cyprus. The bank is moving to create a new, systemic insurance group on the island following an agreement between its management and the shareholders of Universal Life Insurance and Altius Insurance.
This agreement entails the strategic combination of the two insurance companies’ operations in the local market. The merger is expected to result in the formation of one of the three largest insurance groups in Cyprus, covering both the life and general insurance sectors, and securing a leading position in the accident and health segment.
Universal Life: A market leader returns to Alpha’s orbit
Since the summer, it was understood that Alpha Bank had been “locked in” for the acquisition of Altius and was simultaneously in discussions to acquire Universal Life, an insurer with a large market share. The Cypriot management of Universal Life had consistently declined to confirm or deny the discussions until the last moment.
Based on the latest results (first half of 2025), Universal Life ranks third nationwide in the life sector. Specifically, its market share in the life sector (Life Gross Premiums including A&H premiums by Life Companies) stood at 15.7% in the first half of 2025, up from 14.9% in the corresponding period in 2024. Universal Life’s gross written life premiums reached €66.3 million, marking a 17.9% increase over the same period in 2024 (€56.2 million).
Universal Life was the first Cypriot insurance company, founded in 1970, and is a member of the Photos Photiades Group of Companies. It plays a leading role in the local insurance market, being one of the top life insurers and the largest health insurer.
Alpha Bank reacquires former asset
Altius Insurance is the successor to the insurance company that the Alpha Bank group had sold in 2015. That sale was part of a policy of divestment from non-banking activities that Greek groups were obliged to follow during the crisis years, under terms set by the Troika for banks. The company was acquired at that time by an investor group led by Doukas Paleologos, who serves as the company’s chairman.
Altius also held an exclusive partnership with Astrobank, the bank that was successfully absorbed by Alpha Bank Cyprus, making Alpha the country’s third-largest systemic bank. Altius holds a 4.2% share in the life sector (Including A&H premiums by Life Companies). When combined with Universal Life’s percentage, the resulting entity will have a share of approximately 20%. This percentage will bring the new group close to the market share held by Eurobank via ERB Cyprialife (21.3%). The largest market share currently belongs to Eurolife (30.8%), a subsidiary of the Bank of Cyprus.
Unspecified deal amount
The Greek group’s announcement did not specify the acquisition amount for the two insurance companies. The announced details confirm that Alpha Bank has agreed with the shareholders of Altius to acquire its entire share capital. It also agreed with the majority of Universal Life’s shareholders to merge it with Altius into a single combined insurance company. Through these transactions, Alpha Bank will acquire a majority stake in the unified company.
Furthermore, the bank will enter into a long-term strategic partnership with Universal’s main shareholder, the Photos Photiades group, with the aim of jointly pursuing their insurance growth targets in Cyprus and beyond. According to the announcement, the complementary nature of the merger “accelerates the implementation of Alpha Bank’s strategy, enhancing the quality, diversification, and resilience of the revenue base through increased fee-based income production that is low in capital intensity.”