Bank of Cyprus sells its entire stake in CNP Cyprus Insurance Holdings for Euros 97.5 million

Bank of Cyprus Holdings Public Limited Company (BOC Holdings announced it sold tis entire shareholding of 49.9% in its associate CNP Cyprus Insurance Holdings Limited (CNP CIH) to CNP Assurances S. A. (the Buyer), who currently owns the remaining 50.1% and is the controlling party.

The sale consideration amounts to Euros 97.5 million, the bank said.

Bank of Cyprus’ shareholding of CNP Insurance, which was a competitor as the banking group has its own insurance companies, was acquired during the absorption of part of the former Laiki Bank, as part of the measures to address the 2013 financial crisis in Cyprus.

On completion, the sale is expected to have a positive impact of c.30 bps1 on both the Group’s CET1 ratio and Total Capital ratio the bank said, adding the carrying value of the Group’s investment in CNP CIH was Euros 119 mn as at 31 March 2019 with the sale’s accounting loss estimated at approximately Euros 22 million.

The sale enables the Group to focus on its core assets and is in line with the Group’s strategy of delivering value for shareholders. The Group will continue to offer insurance services through its wholly owned insurance subsidiaries, the bank said.

Source: Cyprus News Agency