11th Dec 2009 09:52
AcquisitionChesnara plc11th December 2009
Chesnara plc's Swedish subsidiary - Moderna Forsakringar Liv (`Moderna') - has entered into an agreement with the Swedish Supervisory Authority (FI) to take over the operational management of Aspis Liv (`Aspis'). This means that Moderna will acquire the in force business, the personnel, expertise and systems of Aspis and will also manage, but not be responsible for, the payment of in-force claims.
The FI had recently determined to revoke Aspis Liv's licence due to issues regarding its solvency capital which remain unresolved. The transaction, which involves a modest consideration, is expected to be earnings enhancing in the medium term. By taking this opportunity Moderna removes significant uncertainty for Aspis Liv's customers, staff and supporting intermediaries and acquires a book of protection business which represents an excellent strategic fit with its current pension and savings business.
Enquiries
Graham Kettleborough
Chief Executive, Chesnara plc 07799 407519
Notes to editors:
Chesnara plc, which listed on the London Stock Exchange in May 2004, is the owner of Countrywide Assured plc ("CA") and Moderna Forsakringar Liv AB ("Moderna"). CA is a life assurance subsidiary that is substantially closed to new business. In June 2005 Chesnara acquired a further closed life insurance company - City of Westminster Assurance ("CWA") - for GBP47.8m. With effect from 30 June 2006, CWA's policies and assets were transferred into CA plc.
Moderna was acquired on 23 July 2009 for GBP20m. The company continues to write new business and grow the strong position it has achieved in the Swedish unit-linked market since its launch in 2002.
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