Chesnara (LSE:CSN) on Friday announced it will acquire MetLife UK, a closed-book UK life insurance company owned by American insurer MetLife Inc, in a deal that's expected to deliver roughly £90m of lifetime cash flows.
The target manages around 18,000 customer policies and £1.7bn of assets under administration, covering unit-linked investment policies with optional guarantees and variable annuities, and closed to new business in 2017.
Chesnara, the European life and pensions consolidator, said the deal is its fourth announced transaction in the past two years, following the completion of its largest acquisition to date, HSBC Life (UK), in January, and the pending purchase of Scottish Widows Europe announced in February and expected to complete around the end of this year.
About half of the £90m in lifetime cash flows from the MetLife deal are expected to emerge within the first five years of completion.
At completion, and under Chesnara's ownership and target operating model, the transaction is expected to be accretive to both Own Funds and Contractual Service Margin by approximately £45m.
The consideration payable is subject to customary adjustments at completion and is not expected to be material, and Chesnara said the impact on its Group Solvency II ratio is estimated to be broadly neutral.
MLUK's administration is already outsourced to SS&C Technologies, Chesnara's existing UK partner, a structure the company said closely aligns with its operating model and should support a smooth transition.
Read more about Chesnara
- 01/09/26Chesnara says acquisitions delivering early gains
- 25/08/26Chesnara lifts dividend as capital generation jumps 79%
The portfolio also carries an existing external reinsurance arrangement with a European reinsurer rated AA by both S&P and Fitch, covering guarantee risk on the in-force variable annuity book, which will remain in place after completion.
"MLUK's closed-book portfolio is an excellent fit with our existing UK operations and, with its administration provided by SS&C, already closely aligns with our operating model," said Steve Murray, Chesnara's group chief executive, adding that the company continues "to see a healthy pipeline of M&A opportunities."
The transaction excludes MetLife's ongoing UK protection business, which MetLife will continue to service, and is expected to complete in the first half of 2027, subject to UK regulatory approval.