Chesnara's £260m HSBC Life deal to boost dividends & cashflow

Proactive - Interviews for investors

Chesnara PLC (LSE:CSN) chief executive Steve Murray talked with Proactive's Stephen Gunnion about the company’s £260 million agreement to acquire HSBC Life UK’s insurance business. The deal, set to complete in early 2026, will see over 450,000 policyholders join Chesnara and bring approximately £4 billion of assets under administration. Murray said, “We’re really proud to have been selected by HSBC Group to look after over 450,000 of their policyholders.” The acquisition is expected to deliver strong cash generation, with over £800 million of incremental cash flows forecast across the life of the book. About £140 million is anticipated in the first five years, with the majority accruing in the longer term. The company told investors that the acquisition will also accelerate its dividend growth by one year, resulting in a 6% increase applicable to full-year 2025 and interim 2026 dividends. Financing will include a fully underwritten rights issue of £140 million gross and the drawdown of £65 million from an existing revolving credit facility. Murray highlighted that this transaction more than doubles the scale of Chesnara’s UK business and demonstrates its ability to be a reliable consolidator in the life insurance sector. He said the company continues to see a strong M&A pipeline, with further opportunities under review. Visit Proactive’s YouTube channel for more insightful interviews and don’t forget to like this video, subscribe to our channel, and enable notifications so you never miss an update.#Chesnara #HSBCLifeUK #InsuranceAcquisition #LifeInsurance #DividendGrowth #MergersAndAcquisitions #UKInsuranceMarket #Policyholders #FinancialNews #ProactiveInvestors