Paris-based insurer AXA said it has entered into an agreement with Athens, Greece-based Alpha Bank to acquire its insurance subsidiary Alpha Insurance for Euro 255 million (U.S. $319 million.)

AXA and Alpha Bank, Greece's second largest bank, said they have signed a long-term exclusive agreement to pursue and strengthen the existing relationship that would allow AXA to continue selling insurance through Alpha bank offices.

AXA said Alpha Insurance is one of the top ten composite insurers in the Greek market with solid positions on profitable segments. Its distribution network is tied through 700 direct agents and the 380 branches of Alpha Bank. Alpha Insurance recorded revenues of Euro 151 million ($189 million) in 2005.

Alpha will be integrated to AXA's Mediterranean Region platform upon completion of the acquisition.

“The acquisition of Alpha Insurance is an excellent opportunity to enter the Greek market, which offers very attractive growth prospects,” said Jean-Raymond Abat, head of AXA's Mediterranean Region, in a statement.

“By combining AXA's insurance expertise with Alpha Bank's distribution capability, we are confident of ensuring the future success and development of the Alpha Insurance business in Greece,” added Mr. Abat.

Completion of the acquisition is subject to regulatory approvals in Greece, AXA said.

According to Alpha Bank, Alpha Insurance is a top 10 insurance company in Greece with approximately 4 percent market share in non-life products and life.

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AXA To Purchase Alpha Insurance

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