Close Brothers acquires KSF Insurance Premium business

by Gill Montia

Story link: Close Brothers acquires KSF Insurance Premium business

Kaupthing Singer & Friedlander (KSF) has sold its Insurance Premium Finance business to Close Brothers Group, for £2.4 million, with goodwill arising on acquisition also anticipated to be £2.4 million.

The division, which has a loan book of around £80 million, posted a pre-tax loss of £100,000 in 2007.

Close Brothers is refinancing the existing loan facilities of the business and on completion of the transaction will integrate it into its banking division.

The disposal forms part of a restructure that has been ongoing since Kaupthing, which is Iceland’s biggest bank by market value, acquired Singer & Friedlander in 2005.

The group is now exiting the asset finance and commodity trade finance markets and had made structural changes within its banking division.

Kaupthing says the sale will free up more than £100 million in liquidity for Kaupthing Singer & Friedlander and Close Brothers expects the acquisition to be earnings enhancing in 2009/10.