Chesnara announces second portfolio acquisition from Canada Life UK

Written by Michael Griffiths

23/12/2024

Chesnara has reached an agreement with Canada Life UK to acquire a closed portfolio of unit linked bonds and legacy pension business with approximately 17,000 policies and £1.5bn in total assets under management.

The European life and pensions consolidator expects the policies to transfer to its UK subsidiary, Countrywide Assured, at the end of 2025.

Chesnara’s latest deal follows the previous acquisition of an individual onshore protection business from Canada Life in 2023.

In the interim period, Canada Life UK will reinsure the portfolio to Countrywide Assured. The consideration as part of the reinsurance agreement is £2m, funded from internal group resources.

Chesnara also said it expects the transaction to provide an uplift in the group’s economic value of at least £8m, as well as to contribute £8m of cash generation over a five-year period, with a small initial reduction to the group's Solvency II ratio of approximately two percentage points.

Group chief executive at Chesnara, Steve Murray, sadd: “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.”

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