The Group consists of two business units and support functions. The Group’s activities are segmented into business units according to legislative requirements and product and service characteristics. The Group’s business units are Banking and Non-life insurance.
Banking comprises Personal Banking and Corporate Banking. Personal Banking comprises private customers in the Faroe Islands, in Denmark and in Greenland. Corporate Banking comprises corporate customers mainly in the Faroe Islands and in Greenland. The corporate segment also comprises a few remaining corporate customers from Denmark.
Non-life insurance comprises the insurance company P/F TRYGD based The Faroe Islands. TRYGD is responsible for the Group’s non-life insurance products. TRYGD target personal and corporate customers with a full range of property and casualty products. TRYGD’s operations are handled by its own sales team and distributed through Group’s banking units.
Other covers expenses for the Group’s support functions and the real estate agency P/F Skyn and the life insurance company NordikLív. These companies are very small and immaterial in an overall Group context. Overhead Costs are allocated according to resource requirements. Liquidity balances are posted between the segments using an internal required rate of return. Other costs are allocated according to deposit balances in each segment. Other comprises asstets not allocated to the business segments i. e. the Groups portefolio of bonds, shares and other assets.
All transactions between segments are settled on an arm’s-length basis.