25 November 2021

Chesnara announces 3rd deal in 2021 which sets positive tone for future acquisition strategy

• Robein Life acquisition is 7th deal since entering the Dutch market in 2015
• Strengthens international business and enhances cashflow and shareholder value
• Future outlook on acquisition strategy positive

Chesnara plc (“Chesnara” or the “Company”) has today announced its third acquisition of 2021, bringing the combined worth delivered from its ongoing successful consolidation strategy since entering the Dutch market in 2015 to £300m¹.

The latest transaction sees Chesnara enter an agreement with Monument Re to acquire Dutch-based Robein Leven, a specialist provider of traditional and linked savings products, mortgages and annuities. The deal is expected to contribute c£2m pa of cash flows under steady state conditions and reinforces Chesnara’s focus on harnessing the benefits of strong consolidation opportunities in the Netherlands and elsewhere. All transactions to date have exceeded our key acquisition criteria of being cash and value generative.

The Group has announced seven acquisitions in the past six years including Waard, L&G Nederland and Sanlam UK Life and Pensions. As shown across 2021, M&A continues to be a key strategic priority for the Group and, most recently in the UK, this led to the proposed acquisition (pending completion) of Sanlam’s UK Life & Pensions business in September 2021 which will add c£3bn of assets to the group.

Steve Murray, Chief Executive, Chesnara said: “Chesnara has consistently shown over recent years that its M&A strategy delivers value to both shareholders, customers and policyholders across the wider group. In 2021, we have seen a more buoyant M&A environment and we remain confident that opportunities, at a variety of different sizes and scales, are out there to enhance our ability to deliver further value for our shareholders. Today’s acquisition further supports our positive outlook for potential M&A at Chesnara. We look forward to welcoming Robein Leven’s customers and employees to the Chesnara group.”

To read the full RNS announcement of today’s deal, go to: http://www.chesnara.co.uk/investor-relations/regulatory-announcements

Note 1 – Total worth represents the cumulative own funds of the entities acquired.

Media Enquiries

Roddy Watt
Director, Capital Markets
FWD
T – 020 7280 0651 / (+44) 7714 770493
E – roddy.watt@fwdconsulting.co.uk

Notes to Editors

Chesnara is a life and pensions company listed on the London Stock Exchange. It administers over one million policies with approximately £7.8 billion of assets under management, with those assets spread broadly equally across businesses in the UK, the Netherlands and Sweden. Chesnara operates as Countrywide Assured in the UK, as The Waard Group and Scildon in the Netherlands, and as Movestic in Sweden.

Following a three-pillar strategy, Chesnara’s primary responsibility is the efficient administration of its customers’ life and savings policies, ensuring good customer outcomes and providing a secure and compliant environment to protect policyholder interests. It also adds value by writing profitable new business in Sweden and the Netherlands and by undertaking value-adding acquisitions of either companies or portfolios.

Chesnara has a proven track record of acquiring and consolidating life and pension portfolios and businesses. The acquisition that is the subject of this press release is evidence of the continuation of this capability. The acquisition process adds value for our shareholders while also providing a solution for vendors to realise value and release capital. This is achieved by vendors divesting life and pensions businesses or portfolios which are not core to their wider strategic focus, or where diminishing scale creates operational and hence financial viability pressure. Chesnara’s robust regulatory framework and strong solvency ensures policyholder interests are well protected and remain at the heart of any divestment decision.

Consistent delivery of the company strategy has enabled Chesnara to increase its dividend for 15 years in succession.

Further details are available on the Company’s website (www.chesnara.co.uk).

The GBP equivalent for the figures shown have been translated at a rate of €1.1667/£1.