Fairfax Financial Holdings Limited announced that it has entered into a term sheet with Eurobank Ergasias Services and Holdings S.A. (Eurobank) under which Eurobank or an affiliate will acquire from certain Fairfax affiliates the 80% equity interest owned by Fairfax in the life insurance business operated by Eurolife FFH Insurance Group Holdings S.A. (Eurolife) for cash consideration of €813 million (C$1.32 billion).
Following the transaction, Eurolife’s life insurance business will be wholly owned by Eurobank. Fairfax will retain its 80% equity interest in Eurolife’s property and casualty insurance business.
As part of the agreement, Fairfax will also acquire from Eurobank a 45% equity interest in ERB Asfalistiki (ERBA), the company through which Eurobank operates its P&C insurance business in Cyprus, for cash consideration of €59 million. Fairfax will have the right to acquire the remaining 55% equity interest in ERBA over time.
The proposed transactions are subject to customary closing conditions and are expected to close in the first quarter of 2026.
Prem Watsa, chairman and chief executive officer of Fairfax, said the arrangement reflects the company’s operational priorities. “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,” Watsa said.
“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.”
Upon the closing of the transaction, Alexandros Sarrigeorgiou will assume the position of executive chairman of the board of directors of Eurolife’s general insurance business. Vassilis Nikiforakis, currently chief financial officer of Eurolife, will become managing director and chief executive officer of Eurolife’s general insurance business. The appointments are intended to support the continued development of Fairfax’s operations in Greece.
Through its subsidiaries, Fairfax Financial Holdings Limited is primarily engaged in property and casualty insurance, reinsurance, and investment management.
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