Kaupthing sells its Insurance Premium Finance business in the UK
Kaupthing Bank’s subsidiary, Kaupthing Singer & Friedlander (“KSF”) has sold its Insurance Premium Finance business to Close Brothers at a small premium to net asset value. The sale will free up more than GBP 100 million in liquidity for KSF. The Commodity Trade Finance has also effectively been closed and 97% of the initial portfolio, which was approximately GBP 350 million, has been run-off.
KSF announced in February 2008 the final step of its UK restructuring following Kaupthing’s acquisition of Singer & Friedlander in 2005. KSF announced that it would be exiting its Asset Finance and Commodity Trade Finance businesses and that it had made structural changes within its Banking Division.
The exit from the Asset Finance businesses has been ongoing since the announcement with interest expressed for the whole operation and parts of the operation from a number of potential acquirers. The disposal process of the Corporate Asset Finance division and Healthcare Finance division is ongoing and Kaupthing expects to give a further update on progress in the coming months.
Ármann Thorvaldsson, CEO of Kaupthing Singer & Friedlander
“Our exit from the Commodity Trade Finance and Insurance Premium Finance businesses, in addition to the very successful roll-out of our internet deposit gathering platform Kaupthing Edge, has further strengthened our liquidity position. We therefore remain optimistic on the general outlook for the business in the UK.”
For further information please contact:
Jónas Sigurgeirsson, Chief Communications Officer, Kaupthing Bank, tel: +354 444 6112
Ármann Thorvaldsson, Chief Executive Officer, KSF, tel: +44 203 205 5000
Anita Scott / Tom Williams, Brunswick Group LLP, tel: +44 20 7404 5959
About Kaupthing Bank
Kaupthing Bank is a Northern European bank offering integrated financial services to companies, institutional investors and individuals. These services include corporate and retail banking, investment banking, capital markets services, treasury services, asset management and comprehensive wealth management for private banking clients.
The Bank operates in all of the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden) and in 6 other countries in Europe (the UK, Luxembourg, Belgium, Switzerland, Germany and the Isle of Man), as well as the US, the Dubai International Financial Centre (DIFC) and the Qatar Financial Centre (QFC). In Denmark, Kaupthing Bank operates under the name FIH Erhvervsbank.
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