HSBC Life (UK) sold to Chesnara in £260m deal

Chesnara, a life insurance and pensions consolidator, said the deal would add about £4bn to its assets under management (AUM) and consisted of 454,000 policies. HSBC (Life) has eligible own funds of £314m. The deal is expected to result in incremental lifetime cash generation in excess of £800m from HSBC Life (UK) with cash generation of more than £140m during the first five years post-acquisition, the business said. The cash consideration of £260m has been funded through a combination of £55m of existing internal cash resources, £65m drawdown from the group's increased £150m revolvi...