The interests of Sjova's customers are safeguarded through a joint effort by Glitnir, Islandsbanki, the government and the Financial Supervisory Authority (FME).

• Insurance activities and investments linked to investment projects have been separated
• A new company, Sjóvá, is established to handle the company’s insurance activities
• Sjóvá’s new owners are Glitnir (91%) and Íslandsbanki (9%)

Sjóvá's financial restructuring is now complete. A new company with the name Sjóvá will be established to take over only the insurance activities of the former company. This means that investment activities involving real estate have been separated from Sjóvá's traditional insurance activities.

Glitnir and Íslandsbanki have provided Sjóvá with capital of ISK 16 billion to boost its equity and ensure its future operation. The Treasury has provided Glitnir with credit in the form of loans granted against a mortgage in Glitnir's holding in Sjóvá. With its participation, the government intends to protect the state's claims against Sjóvá, as well as the interests of a large number of insurance customers. Preparation of the formal sales process for Sjóvá will begin in coming months.

Following the restructuring, Sjóvá fulfils all FME's conditions for insurance activities; the company has sufficient assets to cover its technical provisions and its equity position is solid.