Kvika banki hf.: Sale of TM finalised

Kvika banki and Landsbankinn have today finalised the sale of 100% of TM tryggingar’s share capital to Landsbankinn. The handover of the insurance company took place simultaneously, with Landsbankinn paying Kvika bank the agreed purchase price upon completion.

As previously communicated by Kvika bank on 30 May 2024, the final purchase price has been adjusted based on changes in TM’s tangible equity from the beginning of 2024 until today’s closing date, 28 February 2025.

The initially agreed purchase price was ISK 28.6 billion, but the adjusted purchase price amounts to approximately ISK 32.3 billion, reflecting the 2024 purchase price adjustment, and has now been settled. The purchase price may be subject to further modifications, as any changes in TM’s tangible equity from the beginning of the year until the closing date will either be added to or deducted from the final price.

Following the receipt of the purchase price, Kvika bank’s board intends to propose a special dividend to its shareholders at the Annual General Meeting on March 26. This proposal will be published alongside other board proposals for the AGM no later than 5 March 2025.

Ármann Þorvaldsson CEO of Kvika bank:

"We are pleased that Landsbankinn’s acquisition of TM has been successfully completed. This sale represents an important step in sharpening our focus on our core business. Our goal is to expand into new markets with outstanding products and services for our customers, and we intend to allocate part of the proceeds from the sale to support this strategic direction.

I would like to sincerely thank the management and employees of TM for their excellent collaboration and wish them all the best in their future endeavours."