Chesnara to acquire Legal & General Nederland

Chesnara has agreed to acquire Legal & General Nederland Levensverzekering Maatschappij, a Dutch life and pension insurer and a wholly owned subsidiary of Legal & General Group, for €160 million (c.£135.6 million).

Chesnara says the acquisition provides a strong fit with its strategy of acquiring life and pension businesses in its chosen markets.

Legal & General Nederland increases Chesnara's scale in the Netherlands and provides a complementary platform to the Waard Group, Chesnara's existing local operations.

Chesnara also announced a firm placing and placing and open offer to raise a total of approximately £70 million before expenses to part fund the acquisition. The balance of the consideration is being funded from Chesnara's cash resources and incremental debt.

Acquisition and its financing are expected on completion of the acquisition to enhance Chesnara Group's EcV by £126.3 million, gross of the £70 million equity raise. This equates to an EcV enhancement per share of 28 pence (7.6%).

Chief executive John Deane said: "Chesnara is delighted to be acquiring another well-run and attractive business in the Dutch life assurance market. As with our Swedish subsidiary Movestic, we will be writing protection and pension new business. This will complement our closed book consolidation business Waard. We see great opportunities for both organisations within the Chesnara group to deliver value to our customers, their advisors and our shareholders."