Alpha Bank announces the conclusion of the sale of Alpha Insurance to AXA, a global leader in Financial Protection, for Euro 255 million.
At the same time, Alpha Bank and AXA have signed and put into force a long-term exclusive cooperation agreement for the distribution of AXA''s insurance products through Alpha Bank''s extensive Branch network. Under the terms of the agreement, Alpha Bank focuses on the distribution side of the business, with the production and the insurance risk undertaken by AXA.
This agreement will lead to substantial and rapid growth in the highly dynamic bancassurance sector in Greece, which is developing fast and the prospects are excellent. Alpha Bank''s established and strong brand name and customer-centered approach in combination with AXA''s insurance expertise, worldwide experience and prestige, set the foundations for a dynamic expansion in the Greek market.
Insurance products already constitute a significant part of fully integrated solutions addressing customers'' financial needs. Through its cooperation with AXA, Alpha Bank is in a position to incorporate in its offering new insurance products and services that bring together competitive pricing, simplicity and transparency.
By combining their expertise in insurance and asset management, Alpha Bank and AXA will also offer innovative life and non-life products of high quality and value-added, helping customers to effectively manage their assets and cover their insurance needs.
The cooperation between the two Companies had already a successful beginning, with infrastructure being set up by adapting AXA?s systems used in other countries to the characteristics of the greek market. The benefits of this cooperation are expected to become visible before year end and assume much greater significance for the Bank''s profitability in the years to come.
About Alpha Bank
Alpha Bank, founded in 1879, is one of the largest banks in Greece. With more than 600 Branches, Alpha Bank is also active in Southeastern Europe and Cyprus. Alpha Bank offers a comprehensive range of financial services to households and corporate customers. With approximately Euro 50 billion in assets and about Euro 3.6 billion in equity at December 31, 2006, Alpha Bank generated Euro 626 million in 2006 in net profit. Alpha Bank is listed on the Athens Exchange with a market capitalisation of about Euro 9.5 billion and is a constituent of the Eurofirst 300 Index.