UK and Europe-based consolidator Chesnara has agreed to acquire Sanlam Life Pensions UK (SLP) for a cash consideration of £39m ($54m, €46m).
This comes days after International Adviser reported that the South Africa-based financial group Sanlam was looking to offload its UK wealth and life insurance arms.
The deal will be funded from Chesnara’s existing debt facility.
Sanlam’s UK life and pensions arm will expand the consolidator’s operations in the UK by adding £2.9bn of assets under administration and 80,000 policies.
The acquired business will be integrated into Chesnara’s UK platform Countrywide Assured and will follow its business model as a focused, closed-book consolidator.
SLP will retain a commercial relationship with Sanlam Investments UK for investment management.
The deal is expected to complete in early 2022.
Further acquisitions
John Deane, chief executive of Chesnara, said in a London Stock Exchange statement on 13 October: “We are delighted to announce this transaction which will expand the scale of our UK operations and deliver potential for material value creation for Chesnara. The expected incremental cash generation from SLP will enhance the sustainability of our progressive dividend strategy.
“SLP is well aligned to Chesnara’s acquisition strategy and will be integrated with our existing UK operations. We look forward to welcoming SLP’s customers and staff to the Chesnara group and continuing to work with Sanlam on the management of SLP assets.
“We believe that the market prospects for further acquisitions across our target markets remain positive and we continue to be confident in our ability to finance and execute such transactions on attractive terms for both vendors and our shareholders.”
Jonathan Polin, chief executive of Sanlam UK, added: “This deal is a testament to the strength and quality of SLP and its long-standing track record of excellent client service. I would like to thank all my colleagues there for their unstinting efforts. Chesnara is a highly respected and established life insurance and pensions consolidator, and I am confident that the business will flourish under its new ownership for the benefit of all its key stakeholders, including policyholders.”
Chesnara is a pensions and protection consolidator. The group comprises closed consolidation businesses in the UK and the Netherlands. In addition, it has a separate Dutch new business operation and an open business in Sweden.
