Chesnara said Thursday that it has agreed to acquire HSBC Life (UK) Limited from HSBC Bank for £260 million in its largest transaction to date, expanding its scale in the UK life and pensions market.
Chesnara Agrees Deal to Acquire HSBC Life UK Limited
The deal will add approximately £4 billion in assets under administration and around 454,000 policies to Chesnara’s portfolio.
It is expected to complete in early 2026, subject to regulatory approvals.
The transaction will be funded through a combination of £55 million in internal cash, a £65 million drawdown from an amended revolving credit facility, and a fully underwritten £140 million rights issue.
Chesnara expects more than £800 million in incremental lifetime cash generation from HSBC Life (UK), including £140 million in the first five years following completion.
The company also anticipates a 6% increase in its final FY25 and interim FY26 dividends as a result of the acquisition.
“The proposed acquisition of HSBC Life (UK) represents a material step up in scale for Chesnara Group,” said Steve Murray, Chesnara’s chief executive. “It is also a further example of a major financial institution choosing to work with us, enhancing our reputation as a leading life and pensions consolidator.”
Chesnara said the deal strengthens its M&A strategy, offers capital and operational synergies, and positions the group for possible inclusion in the FTSE 250 index.
