Chesnara has announced that it is buying Scottish Widows Europe, a closed company with a book consisting of UK products that were sold, pre-Brexit, into Europe, primarily Germany. The consideration is €110m, which will be met from internal resources, notably the proceeds of last year’s Tier 1 bond issue. For this, it adds ca.€1.7bn of AuA and 46,000 policies. It also brings an estimated €250m of future cash generation as the book runs off, with €100m in the first five years. Scottish Widows Europe is based in Luxembourg. As a new country to Chesnara, synergies are limited, but it expands its strategic options going forward.
