Fairfax to sell 80% of Eurolife business to Eurobank

Executive Summary

• Fairfax Financial Holdings has entered into a term sheet to sell its 80% equity interest in the life insurance operations of Eurolife FFH Insurance Group Holdings SA to Eurobank Ergasias Services and Holdings SA for €813 million.
• In a related transaction, Fairfax will acquire a 45% equity interest in ERB Asfalistiki (Eurobank’s Cypriot property and casualty insurance vehicle) for €59 million, with an option to acquire the remaining 55% over time.
• Following the deal, Eurolife’s life insurance business will be wholly owned by Eurobank, while Fairfax retains its 80% stake in Eurolife’s property and casualty insurance business, aligning with Fairfax’s strategic focus on P&C insurance and reinsurance.

Key Details

• Sale of Life Insurance Interest: Fairfax will sell its 80% equity interest in Eurolife FFH Insurance Group Holdings SA’s life insurance business to Eurobank or an affiliate.
• Consideration for Life Insurance Sale: Cash consideration of €813 million.
• Acquisition of Cypriot P&C Interest: Fairfax will acquire a 45% equity interest in ERB Asfalistiki, the entity operating Eurobank’s property and casualty insurance business in Cyprus.
• Consideration for Cypriot P&C Acquisition: Cash consideration of €59 million.
• Future Acquisition Right: Fairfax holds the right to acquire the remaining 55% equity interest in ERB Asfalistiki over time.
• Post-Transaction Ownership Structure:
  • Eurolife’s life insurance business: Wholly owned by Eurobank.
  • Eurolife’s property and casualty insurance business: Fairfax maintains its 80% equity interest.
• Closing Conditions: Subject to customary closing conditions.
• Expected Closing Date: First quarter of 2026.
• Management Changes:
  • Alexandros Sarrigeorgiou will assume the position of executive chairman of the board of directors of Eurolife’s general insurance business.
  • Vassilis Nikiforakis (current CFO of Eurolife) will assume the position of managing director and chief executive officer of Eurolife’s general insurance business.

Notable Quotes

• Prem Watsa, Chairman and CEO of Fairfax: "We are very pleased to be able to maintain the focus of our insurance operations on property and casualty insurance and reinsurance while still benefiting from the continued success of the Eurolife life insurance business through our ownership stake in Eurobank. 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."