Chesnara PLC (LSE:CSN) CEO Steve Murray takes Proactive's Stephen Gunnion through the company's acquisition of the onshore individual protection line of business from Canada Life UK.
The life and pensions consolidator said it had agreed to pay a consideration of £9mln as part of the reinsurance agreement, funded from its own cash, for the line, which was closed to new business in November 2022.
Murray said the deal marks Chesnara's fifth transaction in the last two years, reflecting a growing trend of M&A opportunities in the market. The company sees these smaller deals as an effective use of shareholder capital, offering attractive returns and minimal impact on solvency, he added.