Chesnara buys closed-book UK life insurance business of MetLife
Chesnara PLC on Friday said it will buy MetLife UK Ltd, the closed-book UK life insurance business of MetLife Inc.
The deal is expected to close in the first half of 2027 and generate about £90 million in lifetime cash flows, with around half expected within the first five years after completion.
The Preston, England-based life and pensions consolidator said the deal is only related to the closed-book segment, as MetLife UK closed to new business in 2017, while the parent company will continue to operate its ongoing UK protection business.
Chesnara said the acquisition, its fourth in the past two years, will add about 18,000 customer policies and £1.7 billion in assets under administration to its UK operations.
The transaction is expected to increase Chesnara's own funds and contractual service margin by approximately £45 million, while having a broadly neutral impact on its Solvency II ratio.
Chesnara did not disclose the purchase price. It said it is still subject to adjustments but is not expected to be material.
Chief Executive Steve Murray said the acquisition adds scale and diversification to Chesnara's UK operations, adding: "We continue to see a healthy pipeline of mergers & acquisitions opportunities and are highly confident in our ability to continue to execute transactions on attractive terms for our investors."
New York-based MetLife Inc is a life insurer with a market capitalisation of around USD63.39 billion and more than 100 million customers worldwide.
Chesnara shares were up 0.6% to 348.50 pence in London on Friday, while MetLife edged up 0.3% to USD100.00 in after-hours trading in New York, having closed down 3.1% on Thursday.
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