U.K.'s Chesnara to Buy Lloyds' Scottish Widows Europe in $130 Million Cash Deal

By Elena Vardon

Chesnara struck a deal to buy Scottish Widows Europe, the Luxembourg-based closed life-insurance business of Lloyds Banking Group, for 110 million euros ($130.4 million) in cash.

The London-listed life-insurance and pension consolidator said it expects to add around 1.7 billion euros in assets under administration and around 46,000 in-force policies to its remit once the transaction closes around the end of 2026.

The acquisition, which marks Chesnara's entry into the Luxembourg market, is projected to generate roughly 250 million euros in cash over the lifetime of the portfolio.

"Scottish Widows Europe is another material and value-accretive transaction with a product set that we know well," Chesnara Chief Executive Steve Murray said Tuesday, adding that the tie-up will provide a new platform for in-market and wider European consolidation and expansion. Through the deal, the group will take on policyholders in Germany, Austria and Italy.

The announcement follows the recent completion of Chesnara's largest transaction to date: the 260 million pound purchase of HSBC's specialist life protection and investment bond provider in the U.K.

Panmure Liberum analysts said this shows Chesnara's ability to manage several deals and work with large financial institutions. "The opportunity set for future transactions is now even broader in terms of size, geography and product set, with management retaining over 100 million pounds of firepower before the need for additional funding," they wrote in a note to clients.

Chesnara shares rose as much as 7% in morning exchanges before paring some of the gains.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

February 17, 2026 04:58 ET (09:58 GMT)