Chesnara (LSE:CSN) has reached an agreement to acquire Luxembourg-based Scottish Widows Europe SA from Scottish Widows for €110 million in cash. The transaction will add approximately €1.7 billion in assets under administration and around 46,000 policies to Chesnara’s portfolio. The purchase price represents 0.64x Scottish Widows Europe’s 2024 Solvency II Own Funds and will be funded from internal resources. Completion is expected by the end of 2026, subject to regulatory approvals.
The deal is forecast to deliver roughly €250 million in additional cash generation over the lifetime of the acquired portfolio, including around €100 million within the first five years. This is set to enhance Chesnara’s capital and cash profile following its recent acquisition of HSBC Life (UK). Strategically, the move marks the group’s entry into the Luxembourg insurance market, expanding its footprint as a European life and pensions consolidator. Pro forma metrics indicate a Solvency II ratio of approximately 173%, with leverage remaining below the company’s long-term ceiling of 30%, preserving headroom for further acquisitions.
Chesnara’s investment outlook is supported by positive technical momentum and constructive corporate activity, signalling confidence in its consolidation strategy. While profitability and equity management remain areas of focus, the company continues to demonstrate improving financial performance. A relatively high dividend yield offers valuation support, despite a negative price-to-earnings ratio driven by accounting factors.
More about Chesnara
Chesnara plc is a London-listed European life and pensions consolidator administering roughly 1.4 million policies. The group operates in the UK under the Countrywide Assured and Chesnara Life brands, in the Netherlands through Scildon, and in Sweden via Movestic. Its strategy centres on efficient policy administration, disciplined capital management and value-enhancing acquisitions across European markets.
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