British pensions consolidator Chesnara PLC said Monday it has finalized its roughly £260 million ($354.5 million) acquisition of HSBC’s specialist life protection and investment bond arm, a deal that lifts the group’s assets to about £18 billion and deepens its footprint in the U.K. insurance market.
The announcement marks the closing chapter of a transaction first unveiled July 3, when Chesnara agreed to acquire HSBC Life (UK) Ltd. in a move designed to scale up its long-term policy portfolio and strengthen recurring cash flows.
Regulatory Green Light and Strategic Growth
Chesnara, a constituent of the FTSE 250 index on the London Stock Exchange, secured regulatory approval from U.K. authorities in December, clearing the final hurdle before completion.
Chief Executive Steve Murray described the acquisition as a milestone in the company’s expansion strategy.
“HSBC Life UK is our fifteenth and largest acquisition to date,” Murray said. “Bringing HSBC Life UK into Chesnara increases our scale in the U.K. market, supports long-term cash generation and, as previously announced, enhances the group’s dividend.”
The deal adds approximately 454,000 policies to Chesnara’s book, taking the combined group to around 1.4 million policies overall. It also contributes roughly £4 billion in assets under administration, swelling the company’s total asset base to approximately £18 billion.
