Chesnara, a European life and pensions consolidator, has acquired a closed portfolio of unit-linked bonds and legacy pensions totaling 17,000 policies and £1.5 bn in assets under management (AUM) as of Dec. 31, 2023. The portfolio was purchased from Canada Life Limited (Canada Life UK).
The policies will transfer to Chesnara’s UK subsidiary, Countrywide Assured plc, by the end of 2025, pending court approval of a Part VII transfer. Until then, Canada Life UK will reinsure the portfolio to Countrywide Assured
Chesnara funded the £2 mn reinsurance consideration from internal resources.
This transaction is projected to increase the Group’s Economic Value by at least £8 mn and generate equivalent cash flow over five years. It will slightly reduce the Group’s Solvency II ratio by about 2 percentage points.
This deal follows Chesnara’s 2023 acquisition of 47,000 individual onshore protection policies from Canada Life. It marks Chesnara’s sixth acquisition in three years, expanding its UK business to manage over 300,000 policies.
Steve Murray, Chesnara’s Group Chief Executive, expressed satisfaction with the continued partnership with Canada Life. He emphasized Chesnara’s commitment to maintaining strong customer service and delivering attractive returns for shareholders. Murray also highlighted the company’s readiness to pursue further M&A opportunities under favorable terms.
Steve Murray, Group Chief Executive, Chesnara commented, “We are pleased to continue our relationship with Canada Life through the agreement of our second recent transaction, following the acquisition of 47,000 protection policies that we announced last year
I am looking forward to welcoming these new customers and their advisors to Chesnara and they can be confident we will continue to provide high levels of customer service as part of a financially strong and growing group.
Steve Murray, Group Chief Executive, Chesnara
“This transaction, the sixth deal implemented in the past three years, will add additional scale to our UK business which now looks after over 300,000 policies, and provides an attractive return on investment for our shareholders. We continue to see a range of M&A opportunities and are highly confident in our ability to finance and execute such transactions on attractive terms for vendors, customers and our shareholders.”
Chesnara plc, established in 2004 and headquartered in Preston, United Kingdom, is a prominent life and pensions consolidator operating across the UK, Sweden, and the Netherlands.
The company manages approximately 1 million policies and oversees £11.9 billion in funds under management as of June 30, 2024.
Chesnara’s operations are structured into several key segments:
- UK Segment: Managed through its subsidiary, Countrywide Assured plc, this segment handles linked pension business, life insurance, endowments, annuities, and some with-profit business.
- Movestic: Based in Sweden, Movestic Livförsäkring AB offers life and pension products, focusing on personalized pension savings solutions.
- Waard Group: This segment represents the closed Dutch life insurance business, comprising a mix of long-term savings, protection, and some non-life business.
- Scildon: Operating in the Netherlands, Scildon is an open life insurance business providing a range of life, health, accident, and disability cover, along with savings and pensions products.
Chesnara’s strategic objectives include maximizing value from existing business, acquiring life and pensions businesses, and enhancing value through profitable new business. The company has a track record of growth through acquisitions, having completed six deals in the past three years, thereby expanding its policyholder base and assets under management.
The company’s leadership team is headed by Group Chief Executive Officer Steve Murray, who has been with Chesnara since August 2021. The Group Chief Financial Officer is Tom Howard, appointed in May 2024.
The company is committed to delivering value to shareholders through an established dividend strategy, value enhancement via acquisitions, and the writing of profitable new business in Sweden and the Netherlands. Chesnara also emphasizes sustainability, ensuring that its operations and investments are sustainable and that sustainability is at the heart of its decision-making process across the group.