CNP Marfin aims for 7% of Greek insurance market

CNP Marfin Insurance Holdings Ltd, the newly formed company as a result of the long-term partnership agreement between France’s leading insurance company, CNP Assurances and Marfin Popular Bank of Cyprus aims to take a 5.5-7% of the Greek insurance market while maintaining its dominant position in Cyprus.
The terms of the agreement include the transfer of 50.1% of the share capital of Marfin Insurance Holdings, which is the insurance arm of the Marfin Popular Bank Group and also a 10-year renewable exclusive distribution agreement with an extension option in other countries in which Marfin Popular Bank operates.
CNP paid the amount of EUR145 mln for the acquisition of the 50.1% of Marfin Insurance Holdings, which owns 100% of Laiki Cyprialife, Laiki Insurance, Marfin Life and Marfin Brokers.
Marfin Popular Bank CEO Efthymios Boulloutas said in Greece, CNP-MARFIN’s key target is to take advantage of the synergies between the company and Marfin Group for the increase in sales of insurance products as well as the reduction of distribution costs of these products.
“The ultimate target is for CNP-MARFIN to achieve within the next 3-5 years a significant market share, similar to the one enjoyed by Marfin Egnatia Bank in the banking sector. CNP’s experience will contribute significantly to this success through the design of new insurance products as well as the synergies created with the banking networks. The aim is to introduce new insurance products, automate administration and distribution processes, the on-going training of the banking network in selling insurance products and servicing the clients, and the packaging of insurance and banking products sold through the branch network,” said Boulloutas.
Currently, Marfin Egnatia has a 5.5% to 6% market share of Greek loans and deposits and plans to lift this to 7% within the next 3-5 years with the bank hoping to gain a higher share of new insurance business.

(Full report in print edition of Financial Mirror, issue of Wed Jan 21, 2009)