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Kvika banki hf.: Kvika accepts Landsbankinn's offer for TM tryggingar hf.

Kvika banki hf.
Kvika banki hf.

With reference to the announcement of Kvika banki hf. ("Kvika" or "the bank") from November 17, 2023, and later announcements, regarding the sales process of its insurance subsidiary TM tryggingar hf. ("TM"), it is hereby announced that Kvika has received binding offers for the purchase of the share capital of TM.

The Board of Directors of Kvika has with its advisors evaluated the offers received and subsequently decided to accept an offer from Landsbankinn hf. with the aim to complete a confirmatory due diligence review, and sign a purchase agreement between the two banks for the purchase and sale of 100% of TM's shares as soon as possible, with standard conditions of approval from The Financial Supervisory Authority of the Central Bank of Iceland and the Competition Authority.

The purchase price according to the offer is ISK 28.6 billion and Landsbankinn will pay for the share capital in cash. The purchase price is based on TM's balance sheet at the end of 2023. The final purchase price will be adjusted for changes in TM's tangible equity from the beginning of the year 2024 to the completion date, and the amount of the change will be added to or subtracted from the purchase price in the offer.


TM´s forecast for 2024 assumes a profit of just over ISK 3 billion. Kvika´s holding in TM was valued at ISK 26.8 billion at the end of 2023.

Further updates on the sales process will be provided in a timely manner as material developments occur, consistent with the bank’s statutory disclosure obligations.

Ármann Þorvaldsson, CEO of Kvika:

"We are very pleased that Kvika's sales process of TM has now reached the point where it is possible to accept the offer from Landsbankinn with the aim of completing the sale. If the process leads to the signing of a purchase agreement, it will be beneficial for all parties, Kvika, Landsbankinn and TM, their customers, shareholders, and other stakeholders.

TM is a well-run and valuable insurance company with excellent people, and I am confident it will continue to provide outstanding service to its customers and grow even further under new ownership."

Please note that this notice is a disclosure of inside information per article 17 of regulation (EU) No 596/2014 on market abuse ("MAR"), which is implemented into Icelandic law with the act on measures against market abuse No 60/2021.

For further information please contact Magnús Þór Gylfason, Director of Communications and Stakeholder Relations, at