Chesnara (LSE:CSN) has agreed to acquire MetLife UK Limited’s closed-book life insurance business, adding approximately £1.7 billion in assets under administration and an estimated £90 million in lifetime cash flows to its UK operations.
The European life and pensions consolidator will acquire 100% of MetLife UK Limited (MLUK) from MetLife Group, subject to regulatory approval. The transaction is expected to complete during the first half of 2027.
The acquisition covers approximately 18,000 customer policies and represents Chesnara’s fourth announced transaction in the past two years.
MetLife’s ongoing UK protection business is excluded from the agreement and will continue operating under its existing arrangements.
Acquisition Expected to Generate £90 Million in Lifetime Cash Flows
Chesnara expects the acquired portfolio to generate approximately £90 million in lifetime cash flows, with around half anticipated to emerge during the first five years following completion.
Under Chesnara’s ownership and target operating model, the transaction is expected to increase both Own Funds and Contractual Service Margin (CSM) by approximately £45 million at completion.
The impact on the group’s Solvency II capital ratio is expected to be broadly neutral, although final figures will depend on completion adjustments.
Chesnara said the purchase consideration is not expected to be material, with the final amount subject to customary adjustments.
The acquisition will provide additional scale and diversification within the company’s existing UK life insurance operations.
MetLife Portfolio Already Uses Chesnara’s Administration Partner
MetLife UK Limited closed to new business in 2017 and manages a portfolio of unit-linked investment policies, optional guarantees and variable annuities.
The business administered approximately £1.7 billion in assets as of December 31, 2025.
Its policies are already administered by SS&C Technologies, Chesnara’s existing strategic outsourcing partner in the UK.
The shared administration provider is expected to simplify the integration process and allow the acquired portfolio to operate within Chesnara’s established business model.
MLUK also maintains an external reinsurance agreement with a European reinsurer rated AA by both S&P and Fitch.
The arrangement covers guarantee risks associated with the company’s existing variable annuity portfolio and will remain in place following completion.
Fourth Acquisition in Two Years Supports Consolidation Strategy
Chesnara Chief Executive Steve Murray said the acquisition would strengthen the group’s UK operations while providing additional long-term cash generation.
“The transaction adds further scale and diversification to our UK business as well as an estimated £90m of lifetime cashflows,” Murray said.
He added that the portfolio’s existing administration arrangements made it a suitable addition to Chesnara’s operations.
The transaction follows a series of acquisitions as Chesnara continues to expand its presence in the European life insurance and pensions market.
The group currently administers approximately 1.3 million policies across its businesses in the UK, Netherlands and Sweden.
Chesnara has also announced the proposed acquisition of Scottish Widows Europe in Luxembourg, which would add approximately 46,000 policies, subject to regulatory approval.
Completion Expected in First Half of 2027
The MetLife UK transaction remains conditional on receiving the necessary UK regulatory approvals, with completion anticipated during the first six months of 2027.
Chesnara said it continues to identify potential acquisition opportunities as part of its strategy to expand through the consolidation of existing life insurance portfolios.
The company also maintains a focus on generating cash from its established policies and writing selected new business across its operating markets.
Chesnara has increased its annual dividend for 21 consecutive years, supported by its existing operations and acquisition-led growth strategy.
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