Chesnara PLC (LSE:CSN) has acquired the insurance portfolio of Conservatrix, a Dutch business that was declared bankrupt 18 months ago.
The deal adds around 70,000 new policies, and brings the total managed by Waard, its local subsidiary based in Amsterdam, to 165,000.
Chesnara will make a capital contribution of £35mln to support the solvency position of the Conservatrix business.
It is the company’s third transaction of the past year and its seventh in the Netherlands.
Once bedded down, Conservatrix will contribute around £4mln of cash a year and will eventually become a “material contributor to the group's dividends”.
“Conservatrix's portfolio is well aligned to Chesnara's acquisition strategy and will be integrated within Waard, our existing Dutch closed book operation,” said Steve Murray, Chesnara’s chief executive.
Chesnara operates books of closed life and pensions business in the UK, Netherlands and Sweden and has £12.8bn of assets under administration.