LUXEMBOURG – Denmark’s PFA Pension has sold its Luxembourg arm to Icelandic group Kaupthing for an undisclosed sum.

“Kaupthing Bank Luxembourg SA, a subsidiary of Kaupthing Bank hf., has acquired all shares in PFA Pension Luxembourg,” Kaupthing said in a statement. “The seller is the leading Danish pension company PFA Pension.”

PFA Pension Luxembourg supplies unit-linked policies to both corporate and private individuals.

“The purpose of the acquisition is to increase Kaupthing Bank Luxembourg's client base in private banking as well as to expand the business by offering insurance products to its existing clients,” the Reykjavik-based bank said.

PFA Pension Luxembourg has an equity of 45 million Danish crowns (six million euros).

Kaupthing added the acquisition was expected to be completed in January following approval from the regulator, the Commissariat aux Assurances.

Copenhagen-based PFA made a 6.8% return on investments before tax in the first three quarters of the year, with total reserves rising to 11.1 billion crowns.

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