Settlement and handover related to the purchase by Landsbankinn of TM tryggingar hf. from Kvika Bank took place today and Landsbankinn has assumed operation of the company. TM will be operated as a subsidiary of Landsbankinn.
Lilja Björk Einarsdóttir, CEO of Landsbankinn:
"TM is a robust insurance company with great employees who possess extensive knowledge of the insurance market. We look forward to working with TM's staff to develop exciting innovations. Together, Landsbankinn and TM have a powerful service and sales network, both through experienced employees, digital solutions and branches across the country. We envision strong customer access to the products and services of both companies, creating many growth opportunities for both the Bank and TM. We also believe that the Bank's acquisition of TM will have a positive impact on the Bank's operations, diversify revenue streams and increase long-term benefits for its shareholders. Landsbankinn and TM will be better together!"
Birkir Jóhannsson, CEO of TM:
"We at TM are truly excited to join forces with Landsbankinn. For years, Landsbankinn's customers have been among the most satisfied in the Icelandic banking market and, in recent months, TM has taken decisive steps toward achieving the same goal in the insurance market. I am convinced that by working together, TM and Landsbankinn will provide their customers with outstanding, comprehensive financial services, helping them grow and thrive while also supporting them through difficult times."
The contractual purchase price was ISK 28.6 billion and is based on the balance sheet of TM as at the beginning of 2024. As has previously been stated, it was agreed that the final purchase price would be subject to an adjustment based on changes in TM's tangible equity from 1 January 2024 until the handover date. The increase in TM's tangible equity during the period 1 January 2024 to 31 December 2024 amounts to ISK 3.7 billion (profit during the period, adjusted for changes to intangible assets) bringing the purchase price adjusted for the period ending 31 December 2024 to ISK 32.3 billion. Based on this, the purchase price multiple of TM's tangible equity is 1.80.
Final settlement of the purchase price adjustment will take place once the audited financial statements of TM as at the handover date are available, resulting in either an increase or decrease of the purchase price.
