The deal, which will be immediately earnings enhancing, is for a closed book of business consisting of 44,000 policies.
Chesnara said its Dutch subsidiary, the Waard Group, has acquired the portfolio for a 22% discount to the estimated economic value of the business.
Chief executive John Deane added: "The business is well capitalised, cash generative and profitable, while fulfilling our acquisition strategy of being economic value accretive, operating within our core target markets and offering a strong strategic fit at an attractive discount.
Gross assets as at the end of June were £326mln, and the book generated pre-tax profits of £3.2mln last year.
The deal follows last month’s acquisition by Waard of a term life and endowment portfolio of around 6,500 policies from Monuta Insurance.
"We have a tried and tested track record of safely and efficiently transferring in and servicing books of business to the best interests of customers and policyholders and continue to seek out appropriate transaction opportunities on behalf of our loyal shareholders,” said CEO Deane.