Acquisition(s)

Acquisition

Chesnara plc

11th December 2009

Chesnara plc's Swedish subsidiary - Moderna Försäkringar Liv (`Moderna') - has
entered into an agreement with the Swedish Supervisory Authority (FI) to take
over the operational management of Aspis Liv (`Aspis'). This means that Moderna
will acquire the in force business, the personnel, expertise and systems of
Aspis and will also manage, but not be responsible for, the payment of in-force
claims.

The FI had recently determined to revoke Aspis Liv's licence due to issues
regarding its solvency capital which remain unresolved. The transaction, which
involves a modest consideration, is expected to be earnings enhancing in the
medium term. By taking this opportunity Moderna removes significant uncertainty
for Aspis Liv's customers, staff and supporting intermediaries and acquires a
book of protection business which represents an excellent strategic fit with
its current pension and savings business.

Enquiries

Graham Kettleborough

Chief Executive, Chesnara plc 07799 407519

Notes to editors:

Chesnara plc, which listed on the London Stock Exchange in May 2004, is the
owner of Countrywide Assured plc ("CA") and Moderna Försäkringar Liv AB
("Moderna"). CA is a life assurance subsidiary that is substantially closed to
new business. In June 2005 Chesnara acquired a further closed life insurance
company - City of Westminster Assurance ("CWA") - for GBP47.8m. With effect
from 30 June 2006, CWA's policies and assets were transferred into CA plc.

Moderna was acquired on 23 July 2009 for GBP20m. The company continues to write
new business and grow the strong position it has achieved in the Swedish
unit-linked market since its launch in 2002.