Life and pensions consolidator Chesnara has agreed to acquire 100% of the share capital of MetLife Inc’s closed-book UK life insurance company, MetLife UK Limited, the firm’s fourth acquisition in two years.
The deal adds £1.7bn of assets under administration to Chesnara and approximately 18,000 customer policies.
The acquisition is expected to be completed in the first of 2027 and is subject to regulatory approvals.
Chesnara said consideration payable for the transaction, “is subject to customary adjustments at completion and is not expected to be material.”
The transaction relates solely to MLUK’s closed book; MetLife’s ongoing UK protection business is not included and MetLife continues to service these customers in the UK.
The firm said the deal offers returns for investors with lifetime cashflows of approximately £90m, of which around half are expected to emerge in the first five years post completion.
MLUK closed to new business in 2017 and currently manages a portfolio of unit-linked investment policies with optional guarantees and variable annuities for approximately 18,000 customers.
The administration of the book is already outsourced to SS&C Technologies, Chesnara’s existing UK partner.
Steve Murray, group chief executive of Chesnara, said: “The transaction adds further scale and diversification to our UK business as well as an estimated £90m of lifetime cashflows.
“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.”
He said the business continues to see a healthy pipeline of M&A opportunities and are highly confident in its ability to continue to execute transactions on attractive terms for investors.
Chesnara was formed in the UK 2004 with the purchase of closed life and pensions book Countrywide Assured, which had been demerged from estate agency group Countrywide.
It has grown through the acquisition of three predominantly closed UK businesses, open life and pensions businesses in Sweden and the Netherlands and a closed Dutch group.