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Chesnara buys portfolio of life and savings policies
22nd Nov 2019 08:11
(Sharecast News) - Life and pensions company Chesnara has acquired a portfolio of term life and savings policies from the Dutch branch of Belgian-owned Argenta Bank-en Verzekeringsgroep.
Chesnara said on Friday that it has bought the portfolio of approximately 44,000 term and savings policies for €29.15m in cash, funded from existing reserves within its Netherlands-based closed book operation, Waard.
It said the consideration represented a discount of 17% to the portfolio's Solvency II own funds and a 22% discount to Chesnara's estimate of economic value.
The transaction was expected to be accretive to both earnings and economic value upon completion, which is due next summer.
Chief executive John Deane said: "This is a very pleasing acquisition for Chesnara. It will create material operating synergies with the existing Dutch business and, after the Monuta portfolio, it is the second deal that will be integrated into, and add value to, our Dutch closed-book platform Waard Group."
As of 0950 GMT, Chesnara shares were up 3.76% at 276p.
Chesnara said on Friday that it has bought the portfolio of approximately 44,000 term and savings policies for €29.15m in cash, funded from existing reserves within its Netherlands-based closed book operation, Waard.
It said the consideration represented a discount of 17% to the portfolio's Solvency II own funds and a 22% discount to Chesnara's estimate of economic value.
The transaction was expected to be accretive to both earnings and economic value upon completion, which is due next summer.
Chief executive John Deane said: "This is a very pleasing acquisition for Chesnara. It will create material operating synergies with the existing Dutch business and, after the Monuta portfolio, it is the second deal that will be integrated into, and add value to, our Dutch closed-book platform Waard Group."
As of 0950 GMT, Chesnara shares were up 3.76% at 276p.