Chesnara replaces CEO and buys Dutch insurer

3rd Dec 2014 08:27

Insurer Chesnara said it was replacing its chief executive as it announced plans to buy a Dutch rival and to raise about £35m in a placing.Chesnara said experienced insurance industry executive John Deane would replace Graham Kettleborough, who will stay in his role until at least the end of this month and provide support and consultancy until the end of March.Qualified actuary Deane, 56, has more than 30 years experience in the life assurance industry, having held various chief executive and executive roles in Royal London, Old Mutual and Century Life. Latterly, he has been leading a financial services consultancy advising UK and overseas companies on strategic projects.Chairman Peter Mason said: "I would like to thank Graham for his significant contribution to Chesnara over the past 10 years. He has led the company from an initial market capitalisation of around £100m to one that has reached £400m and generated dividends to shareholders of over £160m."Chesnara, which manages life and pension books in the UK and western continental Europe, also said it was buying the Waard Group for about £55.1m and raising about £35m in a placing of some 11.5m shares to part-fund the deal.Canaccord Genuity is acting as financial adviser to Chesnara on the acquisition and joint bookrunner and joint underwriter in relation to the placing. Panmure Gordon is acting as joint bookrunner and joint underwriter on the placing.Kettleborough said: "We are very excited to acquire an attractive business in the Dutch market. The Waard Group should generate attractive financial returns and also provide a platform with enough scale and operational knowledge to enable further acquisitions in the Dutch and continental European markets."Shares in Chesnara fell 3p or 0.9% to 316.5p at 08:39 in London.