The Nykredit financial group has sold its insurance company Nykredit Forsikring A/S to the Norwegian Gjensidige insurance group at a price of DKK 2.5 billion.

The sale also involves a long-term strategic insurance partnership between the two groups.

“With this new cooperation, Nykredit gets a partner whose core competence is non-life insurance,” says Nykredit CEO Peter Engberg Jensen.

“We have a long standing ambition to increase our market share in Denmark through strategic acquisitions. Nykredit Forsikring has presented a tremendous opportunity for us, first and foremost due to the potential for distribution through the Nykredit Group, with it’s substantial position in the banking market. I consider our strategic partnership as a powerful engine for growth,” says Gjensidige CEO Helge Leiro Baastad.

Gjensidige says that in connection with the acquisition Gjensidige will be entering into a long term strategic partnership with the Nykredit Group.

“Nykredit is among the major financial institutions in Denmark, with activities including banking, insurance, pensions and real estate agents. The Group has an extensive distribution network, including 70 branch offices and two real estate agents constituting 310 offices in total. As part of the partnership, Nykredit will distribute non life insurance on behalf of Gjensidige,” Gjensidige says in a news release.