Chesnara agrees €110m deal to acquire Scottish Widows Europe
- Simon Bourke
- 4 minutes ago
- 3 min read
17th February 2026
Chesnara has agreed to acquire Scottish Widows Europe SA, a Luxembourg-based closed life insurance business, from Lloyds Banking Group subsidiary Scottish Widows for total cash consideration of €110m (approximately £96m).
Deal summary
Acquirer: Chesnara (London-listed life and pensions consolidator).
The deal: Acquisition of 100% of the issued share capital of Scottish Widows Europe SA
Date announced: 17 February 2026.
Terms disclosed: €110m in cash, funded from internal resources including proceeds from Chesnara's £150m RT1 bond issued in August 2025
Scale added: €1.7bn of assets under administration and approximately 46,000 in-force policies.
Timing: Completion targeted around end-2026, subject to regulatory approvals.
Who is Chesnara?
Chesnara is a life and pensions consolidator with operations in the UK, Sweden, and the Netherlands. It administers approximately 1.4 million policies across its three operating territories. It reported total assets under administration of £14bn as of 30 June 2025. The company was founded in 2004 through the acquisition of Countrywide Assured, a closed life and pensions book demerged from the estate agency group of the same name, and has grown primarily through acquisition of closed and open life books across the UK and Europe.
Who is Scottish Widows Europe?
Scottish Widows Europe SA is Scottish Widows’ European arm, established ahead of Brexit to take on its EEA policyholder book. The policies transferred under a Part VII scheme (FSMA 2000), effective March 2019. It is a standalone, CAA-regulated closed life insurer based in Luxembourg, managing around 46,000 in-force policies for policyholders in Germany, Austria and Italy. Its policy administration is outsourced to Lifeware S.A. in Luxembourg.
Why is Chesnara acquiring Scottish Widows Europe?
Chesnara’s announcement frames the transaction as cash-generative and “value-accretive”, with expected incremental cash generation of around €250m over the lifetime of the portfolio (around €100m in the first five years). It also discloses that the €110m price represents 64% of Scottish Widows Europe’s Solvency II own funds (€173m as at 31 December 2024).
Strategically, the deal gives Chesnara a regulated base in Luxembourg and a policyholder footprint across Germany, Austria and Italy, which it describes as a platform for further European consolidation.
What happens next?
Completion is expected around the end of 2026. Completion is conditional on regulatory non-objection (or deemed approval) from Luxembourg's CAA as well as regulatory non-objection (or deemed consent) from both the CAA, the PRA and the FCA in relation to amendments to the existing Investment Reassurance Agreement and Annuity Reassurance Agreement between Scottish Widows and Scottish Widows Europe. Both agreements, which govern with-profits and annuity benefit flows between the two entities, will be amended and restated on completion rather than terminated. The existing management team at Scottish Widows Europe, led by CEO Rose-Marie Arcanger and CFO Bruno Durieux, will remain in post following completion.
Chesnara's other acquisitions
HSBC Life (UK) Limited - January 2026
Acquisition of HSBC's UK closed life business for £260m, described by Chesnara as a "transformative" transaction; the deal significantly expanded the group's UK closed-book portfolio ahead of the Scottish Widows Europe announcement.
FAQs
What did Chesnara pay for Scottish Widows Europe?
Chesnara agreed to pay €110m (approximately £96m) in cash for 100% of the issued share capital of Scottish Widows Europe SA.
Why is Lloyds Banking Group selling Scottish Widows Europe?
Scottish Widows Europe was created specifically to hold EEA-based policyholder business following Brexit. The transaction announcement does not set out a detailed rationale for the disposal beyond confirming the sale to Chesnara.
Where is Scottish Widows Europe based?
Scottish Widows Europe SA is headquartered in Luxembourg and holds policyholders primarily in Germany, with further policyholders in Austria and Italy.
What is a “closed” life insurance business?
A portfolio that is not actively writing new business, where value is typically generated by administering existing policies efficiently and managing capital over time.
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