UK-based specialist insurance business Chesnara has agreed to buy a portfolio of life insurance business in run-off from the Dutch branch of Belgian-owned Argenta Bank-en Verzekeringsgroep.
Chesnara is acquiring the Dutch portfolio of term life and savings policies through its Netherlands-based closed book operation, the Waard Group, in a cash deal worth €29.15m.
Nearly 44,000 term and savings policies will be transferred to Waard Group as per the terms of the transaction.
The purchased portfolio had gross assets of €380m as of 30 June 2019. The portfolio generated profits before tax of €3.7m for the year ended 31 December 2018.
Chesnara CEO John Deane said: “This is a very pleasing acquisition for Chesnara. It will create material operating synergies with the existing Dutch business and, after the Monuta portfolio, it is the second deal that will be integrated into, and add value to, our Dutch closed-book platform Waard Group.
“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.”
In October, Waard snapped up a term life and endowment portfolio of nearly 6,500 policies from the Dutch insurer Monuta Insurance.
Subject to receipt of regulatory approvals from the National Bank of Belgium (NBB) and from the Dutch Central Bank (DNB), the transactions are scheduled to be completed by summer of 2020.
Operating as a life and pensions firm, Chesnara manage more than one million policies with about £7.8bn in assets under management.
Chesnara does businesses as The Waard Group and Scildon in the Netherlands, operates as the Countrywide Assured in the UK, and trades as Movestic in Sweden.