Norway’s largest financial services group Den norske bank is buying Skandia Insurance’s investment management outfit Skandia Asset Management (SAM) for Sek3.2bn (e350m). Skandia manages SEK280bn meaning Den norske’s assets under management will more than triple to Sek400bn following the deal.

Skandia Insurance will retain the wealth management division as well as Skandia Fonder, its retail fund company for private individual investors. Spokesman Carl-Henrick Knutsson says this decision was taken as the two departments remain an integral part of Skandia Bank.

Svein Aaser, CEO of Den norske Bank, says: “It is important that we capitalise on and further develop SAM’s business in Norway, Sweden and outside the Nordic region. DnB’s current asset management operation fits well together with SAM’s and will provide a strong platform for growth.”

Anders Kvist, president of Skandia AM will head DnB’s asset management division and become a member of the bank’s executive management.

Scandia says it decided to sell its investment management arm in order to concentrate on what it calls the middle of its value chain. “We’re focusing on product development, sales support for our distributors, marketing and on selection of funds and fund companies,” says Knuttson.

Skandia declined to elaborate on the number or nationality of interested parties. The deal is subject to regulatory approval in both Norway and Sweden.