UK-based Chesnara has signed an agreement to acquire insurance subsidiaries of Netherlands' DSB Beheer, for around €67.8m (£55.1m).

Chesnar

The deal also includes a small element of deferred performance related consideration of around €2.5m (£2m).

Chesnara, through its wholly-owned subsidiary Chesnara Holdings, will acquire the Waard Group from DSB Ficoholding and DSB Bank in bankruptcy.

As part of the deal, Chesnara will acquire the the Waard Group entities Waard Leven, Hollands Welvaren Leven (HW Leven), Waard Schade and Tadas Verzekeringen.

Chesnara CEO Graham Kettleborough said: "The Waard Group should generate attractive financial returns and also provide a platform with enough scale and operational knowledge to enable further acquisitions in the Dutch and continental European markets.

"The company looks forward to working with our new colleagues in the Netherlands with a view to optimising our financial returns and identifying and acquiring other businesses."

Waard Leven, HW Leven and Waard Schade are regulated insurance companies, while Tadas is a related company that provides services to them .

With the exception of a small number of new test policies written in 2014, the insurance companies have been closed to new business since 2009.

Chesnara noted that the acquisition is in line with its objective to acquire life and pensions businesses in the UK and Western Europe and will increase the potential of the group to make subsequent acquisitions within the Netherlands and continental Europe.

Subject to receipt of regulatory approval, the transaction is expected to be completed in the first quarter of 2015.


Image: Chesnara’s acquisition is in line with its objective to acquire life and pensions businesses in the UK and Western Europe. Photo: courtesy of cooldesign/ FreeDigitalPhotos.net.