Business
Acquisition
Chesnara plc has agreed to acquire Scottish Widows Europe SA for €110 million in cash, a deal expected to generate approximately €250 million in cash over the lifetime of the policies, with €100 million in the first five years. This acquisition adds €1.7 billion in assets under administration and around 46,000 policies, marking Chesnara's entry into Luxembourg and expanding its European consolidation platform. The transaction, financed by available cash, is expected to maintain a robust pro-forma Group Solvency II ratio of 173% and keep the leverage ratio in line with investment grade ratings, with completion anticipated around the end of 2026, subject to regulatory approvals. Disclaimer*
About this update from Chesnara Plc
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n17 February 2026\n \n \n \nChesnara plc\n \nAcquisition of Scottish Widows Europe SA\nChesnara plc (\"Chesnara\" or the \"Company\" and, together with its subsidiaries, the \"Group\") is pleased to announce that it has entered into an agreement to acquire 100% of the issued share capital of Scottish Widows Europe SA (\"Scottish Widows Europe\"), a Luxembourg based closed life insurance business, from Scottish Widows Limited (\"Scottish Widows\") (a subsidiary of Lloyds Banking Group plc (\"Lloyds Banking Group\")) for total cash consideration of €110 million(1) (the \"Acquisition\").\n \nAcquisition Highlights\n· Cash generation of ~€250 million over the lifetime of the policies held in the Scottish Widows Europe portfolio, with ~€100 million of this cash generation occurring in the first five years.\n· Adds €1.7 billion of assets under administration (\"AuA\") and approximately 46,000 in-force policies.\n· €110 million(1) consideration fully financed with available cash, representing an attractive multiple 0.64x FY24 Own Funds of Scottish Widows Europe of €173 million.\n· Entrance into Luxembourg, an additional attractive market, and the addition of new policyholders (based in Germany, Austria and Italy) provides a platform for increased consolidation and scale across Europe.\n· Pro-forma Group Solvency II ratio to remain robust and above normal operating range at 173%(2) and pro-forma leverage ratio expected to remain in line with investment grade rating.\n· Completion of the Acquisition expected around end 2026, subject to customary regulatory approvals.\nCommenting on the Acquisition, Chesnara CEO, Steve Murray stated:\n\"We are delighted to announce Chesnara's second significant acquisition in the past twelve months. Scottish Widows Europe is another material and value-accretive transaction with a product set that we know ...