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    Arion Bank acquires Vørður from BankNordik
    08.10.2015

    Arion Bank acquires Vørður from BankNordik

    As previously announced, the owner of the Icelandic insurer Vørður tryggingar, the Faroese domiciled BankNordik, is refocusing its business outside the Faroe Islands to banking. In line with that strategy, it was announced earlier this summer that BankNordik was putting Vörður up for sale. 

    In the past weeks BankNordik has been in discussions with Arion Bank which have now concluded in a conditioned sales agreement where Arion Bank acquires 51% of shares in Vørður. Due to restrictions on the sale of the remaining minority of shares, BankNordik and Arion Bank intend to issue a put and call option, according to which Arion Bank may acquire the remaining shares once the restrictions have been lifted and no later than in 2017.

    The purchase price for the 100% of the shares is EUR 37,300,000.

    Arion Bank is interested in supporting Vørður’s further growth and development in the Icelandic insurance market, both in respect of solutions to individuals, families and commercial customers. No major changes to Vørður’s day-to-day operations are foreseeable and customers should not be affected by the change in ownership.

    “Vørður has been a part of the BankNordik group since 2009 and during that period, the company has steadily grown its market share and improved its profitability. We are therefore selling a much stronger company than we bought in 2009, and I am convinced that Arion Bank will continue to support this positive development” says BankNordik CEO Árni Ellefsen.

    “Being able to provide our customers with a full range of financial services is important to us. We do this through Arion Bank’s divisions as well as through our core subsidiaries. The combination of banking and insurance services is a well-known business model, not least in the Nordics. Insurance is and has been an integral part of our core activities and by acquiring Vörður we are adding non-life insurance to the range of services we offer. Vörður is a dynamic and growing company with a strong brand which we aim to further develop in the future” says Arion Bank’s CEO Höskuldur H. Ólafsson.

    The transactions are conditioned upon the approval of relevant Icelandic authorities, and the parties expect to close the sale of the 51% of shares in coming months.