Chesnara plc acquires insurance portfolio of Conservatrix N.V

Chesnara plc acquires insurance portfolio of Conservatrix N.V

LONDON, UK: Chesnara plc announced the acquisition of the insurance portfolio of Nederlandsche Algemeene Maatschappij van Levensverzekering (Conservatrix N.V), a specialist provider of life insurance products in the Netherlands that was declared bankrupt on 8 December 2020.

The insurance portfolio will be acquired by Waard, Chesnara’s Dutch closed book operation.

Acquisition highlights

§ Third acquisition announced by Chesnara over past year and seventh transaction undertaken in Dutch market

§ Increases Waard’s number of policies under administration to 165,000, transforming Waard into a second material closed book consolidation business alongside Chesnara’s existing UK platform

§ Conservatrix customers to benefit from becoming part of a well capitalised Group, after a significant period of uncertainty

§ A Capital Contribution of £35 million to be provided by the Group to support the solvency position of the Conservatrix business, financed from the Group’s existing resources

§ Waard to become a material contributor to the Group’s dividends following the completion of the Acquisition and the recent Robein Leven transaction, further supporting Chesnara’s progressive dividend strategy

Steve Murray, Chief Executive Officer of Chesnara, stated: “We are delighted to announce the acquisition of Conservatrix’s insurance portfolio and to welcome the Conservatrix customers and staff to the Chesnara Group. We recognise that the bankruptcy of Conservatrix has caused significant uncertainty for its customers and employees, but we hope that today’s announcement provides certainty and a clear way forward for them.

“This transaction is Chesnara’s third over the past year and seventh in the Dutch market, and will further expand the scale of our Dutch operations following the recent completion of the acquisition of Robein Leven in April 2022. Together, these will deliver material value creation for Chesnara and the expected incremental cash generation will enhance the sustainability of our progressive dividend strategy. Conservatrix’s portfolio is well aligned to Chesnara’s acquisition strategy and will be integrated within Waard, our existing Dutch closed book operation.”

“We believe that acquisition opportunities across our target markets remain strong, and we continue to be highly confident in our ability to finance and execute such transactions on attractive terms for both vendors and our shareholders.”

In December 2020, the Dutch Central Bank, De Nederlandsche Bank (“DNB”), filed for bankruptcy of Conservatrix following a deterioration of the Solvency II capital position and limited feasibility of recovering this in the short term. The court declared Conservatrix bankrupt on 8 December 2020 and appointed two trustees (the “Trustees”) who are authorised to administer the estate.

The acquisition will be effected through the transfer of the insurance portfolio (together with certain other assets and liabilities) to a subsidiary of Waard, after which that subsidiary will be merged into Waard. However, in order to support the solvency position of the Conservatrix insurance portfolio, a Capital Contribution of £35 million will be provided by the Group, consisting of a £21 million contribution from Chesnara and £14 million of existing Waard resources.

Following completion of the Acquisition, Conservatrix N.V customers will benefit from becoming part of a solvent and well capitalised company, providing security after a significant period of uncertainty. In addition, Waard has proven expertise in integrating businesses whilst continuing to provide high levels of customer service.

The Acquisition is expected, subject to certain conditions including regulatory and court approvals, to complete during Autumn 2022.

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