Member Article

Preston's Chesnara acquire Direct Line's life insurance business

Preston-based Chesnara has acquired the closed-book life insurance business of Direct Line in a £39.3m deal.

The firm will pump £10.4m into the Direct Line Life business immediately after the purchase, and intends to hand over management to HCL, one of Chesnara’s outsourcing partners.

In the financial year ended 31 December 2012, Direct Line Life had an operating profit before tax of £9.4 million, reported a profit for the period after tax of £6.9m and had gross assets of £177.6m.

Graham Kettleborough, CEO of Chesnara Plc said: “We are very pleased to have reached agreement to acquire a complementary UK business which we can integrate with our existing UK life book.

“Adding this portfolio to our existing book of business brings extra security, from increased size and concentrated governance, to both existing and the newly acquired policyholders.

“It is of benefit to our shareholders as it fits with our strategy, is accretive to our embedded value and will also help support our dividend paying capacity in the medium term.”

This was posted in Bdaily's Members' News section by Tom Keighley .