Chesnara has agreed to buy HSBC’s safety and funding bond unit for £260m, which the life and pensions consolidator says is “a fabric step up in scale” for the enterprise.
Chesnara says the acquisition of HSBC Life will add round £4bn of property underneath administration and roughly 454,000 insurance policies. The unit additionally sells mortgage safety merchandise.
It says the mixed group will maintain round £18bn of property underneath administration and roughly 1.4 million insurance policies.
The life and pensions consolidator, which operates within the UK and the Netherlands, will fund the sale by way of a combination of money and a £140m rights concern.
Chesnara says the sale will create working efficiencies by way of the migration of the coverage administration and new enterprise alternatives by boosting its sale of open onshore bonds.
Chesnara chief government Steve Murray provides: “The proposed acquisition of HSBC Life represents a fabric step up in scale for Chesnara Group.
“HSBC Life is a high-quality enterprise working in merchandise that we all know properly and is succesful, underneath our possession, of producing substantial money flows for a few years.
“This extremely accretive transaction will permit us to construct on our robust, 20-year observe document of uninterrupted dividend development.
“We are persevering with to see a powerful M&A pipeline throughout our group which we’re well-positioned to execute on.”
The group says the deal is anticipated to full in early 2026, topic to regulatory approval.
