Church of Greece launches €277M property insurance tender

The public competitive tender concerns the insurance of dozens of properties across multiple asset classes and reflects the growing importance of risk management for large real estate portfolios.

The tender has been issued by the Ecclesiastical Central Financial Services (EKYO), acting as the contracting authority on behalf of the Church of Greece. The procurement process will be conducted in two stages: initially through the submission of binding written bids, followed by a second round of oral bidding among qualifying participants, allowing insurers to improve their financial offers before the final award.

Interested insurance companies are required to submit their bids by 18 September, while the second stage of the process is scheduled for 28 September.

Diverse Property Portfolio

At the centre of the tender is the insurance of an extensive real estate portfolio comprising apartments, detached houses, hotels, office buildings, retail properties, commercial premises and warehouses, with a significant concentration of assets in Attica and Thessaloniki.

Insured values have been calculated on the basis of replacement cost, reflecting the current cost of rebuilding each property rather than its market or book value. Standard residential properties are insured using a reconstruction cost of €2,000 per square metre, while premium residences and detached houses are valued at up to €3,000 per square metre. Hotels are insured using a reconstruction cost of €2,700 per square metre.

The portfolio’s total insured value amounts to €276.76 million, of which approximately €266.3 million relates to the buildings themselves, while a further €10.4 million covers loss of rental income.

Claims will be settled on a new-for-old replacement basis, without depreciation for the age of the buildings. Even properties constructed before Greece’s first seismic building code was introduced in 1959 may be insured, provided they hold certified structural adequacy documentation.

Comprehensive Insurance Coverage

The proposed insurance programme extends well beyond standard fire and earthquake risks.

Coverage includes floods, storms, explosions, lightning strikes, electrical short circuits, aircraft impact, vehicle collisions, terrorism, malicious damage, civil unrest, debris removal costs, engineers’ fees and expenses incurred by public authorities.

The policy also provides protection against loss of rental income, glass breakage and third-party liability arising from insured events.

Separate provisions cover general public liability associated with the operation of the properties, with compensation limits of up to €500,000 for bodily injury or property damage and up to €300,000 for multiple-person accidents.

Compensation may also extend to employees of the Holy Synod’s administrative services should they suffer losses arising from the operation of the insured properties.

Strict Eligibility Requirements

Participation is restricted to public limited insurance companies legally authorised to operate in Greece.

Applicants must demonstrate:

• Aggregate turnover of at least €230 million during the 2023–2025 period.
• Profitability over the same three-year period.
• Annual fire insurance premium production of at least €50 million.
• A minimum Solvency II ratio of 125%.
• A bid guarantee of €25,000.
• Reinsurance arrangements covering the entire portfolio with reinsurers holding a minimum A- credit rating from Standard & Poor’s or an equivalent rating from AM Best.

Contract Award

The successful bidder will be selected exclusively on the basis of the lowest total insurance premium. However, the Church of Greece reserves the right not to award the contract even after completion of the tender process.

The insurance policy will have an initial duration of one year, running from 31 December 2026 to 31 December 2027, with the option of three successive one-year renewals under the same or more favourable terms.

Insurance risk management throughout the contract will be overseen by Tyrtaios S.A. Insurance Agency and Energy, a company affiliated with the Church of Greece, which will act as the Church’s insurance adviser during the implementation of the agreement.