Chesnara PLC (LSE:CSN), the life assurance and pension scheme portfolio consolidator is to acquire Robein Leven, a provider of savings products, mortgages and annuities.
The acquisition, from Monument Re, adds further scale to Chesnara's Netherlands closed book platform by increasing assets under administration by 51% and policies by 7%, Chesnara said.
The transaction consideration of £13.0mln will be paid in cash at completion and will be funded from existing resources.
For the year ended 31 December 2020, Robein Leven reported gross assets of £223.8mln and had a solvency ratio of 211%. The business has been operating on a fully closed-book basis since 2018.
The consideration represents a discount of 21% to Chesnara's estimate of economic value (EcV). Chesnara estimates that its EcV gain on completion of the transaction will be roughly £3.5mln or around 2.5p per share.
The acquisition is Chesnara’s sixth acquisition in the Netherlands since 2015, and the fourth of these for Waard, Chesnara’s closed book consolidator in the Netherlands.
“This transaction provides attractive returns for our shareholders and further reaffirms the focus we have on our acquisition strategy. We remain optimistic about the opportunities for further deals in the Netherlands and elsewhere,” said Steve Murray, the chief executive officer of Chesnara.