Chesnara acquires Lloyds Banking Group’s European life insurance division
Lloyds Banking Group has divested its European life insurance division to FTSE-250 company Chesnara, marking the latter’s second significant transaction with a UK bank, reports BritPanorama.
The banking behemoth – which reported a substantial profit surge last month for the 2025 fiscal year – has sealed a €110m (£96m) agreement with Chesnara for Luxembourg-based Scottish Widows Europe.
Chesnara stated that the purchase would add approximately €1.7bn in assets under management and around 46,000 active policies, referring to life insurance and pension contracts.
The UK-based pensions consolidator also anticipates the new addition to its portfolio will contribute roughly €250m of cash over the lifespan of its policies.
Chesnara presented the deal as an “attractive multiple” to markets on Monday, having paid about 64 cents for every euro of value owned by Scottish Widows Europe.
Chesnara’s chief, Steve Murray, stated: “Scottish Widows Europe is another substantial and value-adding transaction with a product set that we know well. It signifies our entry into Luxembourg, offering a new platform for in-market and broader European consolidation and growth.”
He added, “We are pleased that another major financial institution, Lloyds Banking Group, has chosen us to care for their policyholders.”
The transaction follows Chesnara’s acquisition of HSBC’s UK life protection arm in a £260m deal financed through a mix of external resources, credit facility, and an equity raise.
The deal was finalised in early February, bringing nearly £4bn in assets under administration and roughly 454,000 policies into the group.
Following completion, Chesnara stated it now administers approximately 1.4m policies across its markets, with that figure expected to rise significantly once Scottish Widows Europe is fully integrated.
The pensions provider joined the FTSE 250 index last August, replacing Assura following its acquisition by Primary Health Properties (PHP).
In expanding its portfolio through strategic acquisitions, Chesnara demonstrates a clear commitment to growth in the competitive life insurance market. The integration of Scottish Widows Europe is set to enhance efficiency and strengthen its market position, presenting a potential shift in the dynamics of financial services in the region. This development exemplifies how consolidation continues to shape the landscape of the insurance sector amidst evolving consumer needs.
