Acquisition

RNS Number : 1933U

Chesnara PLC

28 November 2013

 

Acquisition

Chesnara plc

28 November 2013

Chesnara plc

Acquisition of the Direct Line Life Insurance Company Limited

ACQUISITION

Following the publication  of a "Class 1" circular dated 21 October 2013 for the purposes of Chapter 10 of the Listing Rules (the "Circular") in connection with the acquisition of the entire issued share capital of Direct Line Life Insurance Company Limited from Direct Line Insurance Group PLC, for a total consideration of £39.3 million (the "Acquisition"), and the Announcement on 7 November 2013 regarding the approval of the Acquisition by the shareholders of Chesnara plc ("Chesnara") at the General Meeting held on the same day, Chesnara is pleased to announce that all conditions precedent to the completion of the Acquisition have been fulfilled and the Acquisition has, today, been completed.

For further enquiries, please contact:

Chesnara plc

Graham Kettleborough, CEO

Tel: [phone]

Press

Roddy Watt - Newgate Threadneedle Limited

Tel: [phone]

Notes to editors:

Chesnara plc ('Chesnara'), which listed on the London Stock Exchange in May 2004, is the owner of Countrywide Assured plc ('CA') and Movestic Livförsäkringar AB ('Movestic').

CA is a UK life assurance subsidiary that is closed to new business. In June 2005 Chesnara acquired a further closed life insurance company - City of Westminster Assurance - for £47.8m. With effect from 30 June 2006, CWA's policies and assets were transferred into CA plc. Save & Prosper Insurance Limited and its subsidiary, Save & Prosper Pensions Limited, were acquired on 20 December 2010 for £63.5 million. With effect from 31 December 2011, the business of Save & Prosper was transferred into CA. CA operates an outsourced business model.

Movestic, a Swedish life assurance company which originally focused on pensions and savings, was acquired on 23 July 2009 for £20 million. The company is open to new business and seeks to grow its position in the Swedish unit-linked market. Its proposition was strengthened in February 2010 with the Acquisition of the operations of Aspis Försäkringar Liv AB which has a risk and health product bias.

This announcement does not constitute, or form part of, an offer to sell, or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of any vote or approval in any jurisdiction. 

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