Sigurdur is a very common name in Iceland, written Sigurđur and pronounced SIG-ur-thur.
It comes from the Old Norse word 'sigur' meaning 'victory'.
Sigurđur 'Fáfnisbani' Sigmundsson - slayer of the dragon Fáfnir in Völsunga saga, the Icelandic version of Siegfried in the Nibelungenlied.
Reference: http://www.babynamewizard.com/baby-name/boy/sigurdur

Vestmannaeyjar ("Westman Islands") is a town and archipelago off the south coast of Iceland.
The largest island, Heimaey, has a population of 4,135. The other islands are uninhabited, though six have single hunting cabins. Vestmannaeyjar came to international attention in 1973 with the eruption of Eldfell volcano, which destroyed many buildings, and forced a months-long evacuation of the entire population to mainland Iceland.
Reference: Wikipedia