4 December 2014
Chesnara plc
Part VII Transfer Approval
Protection Life Company Limited ("Protection Life") (Formerly Direct Line Life Insurance Company Limited) Transfer approved by UK High Court.
On 28 November 2013, Chesnara plc ('Chesnara') announced the acquisition of Direct Line Life Insurance Company Limited and subsequently changed its name to Protection Life Company Limited. Chesnara is now pleased to advise that today UK Court clearance was granted for the transfer of the long-term business of Protection Life into Countrywide Assured plc, a subsidiary of Chesnara, pursuant to Part VII of the Financial Services and Markets Act 2000 (the 'Transfer') on the 31 December 2014.
As a result of synergies arising as a direct result of the Transfer, which were not previously reflected in Chesnara's results, the completion of the Transfer is expected to have a positive effect on the cash flows (as previously restricted solvency capital can be released) and results of the Company for the financial period ending 31 December 2014.
Commenting on the Court clearance, Graham Kettleborough, Chief Executive of Chesnara plc, said:
'We are very pleased with the outcome of our application to transfer the Protection Life businesses into our subsidiary, Countrywide Assured plc. Protection Life will be fully integrated in operational terms and we expect the additional synergies generated as a result of this successful transfer to assist us in maintaining an attractive dividend yield for our shareholders.'
For further information please contact:
Chesnara |
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Graham Kettleborough, Chief Executive |
+44 (0) 7799 407 519 |
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Newgate Threadneedle |
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Roddy Watt |
+44 (0) 20 7653 9855 |
Notes to Editors
Chesnara plc ('Chesnara'), which listed on the London Stock Exchange in May 2004, is the owner of Countrywide Assured plc ('CA plc'), Protection Life Company Limited ('PL') and Movestic Livförsäkringar AB ('Movestic').
CA plc is a UK life assurance subsidiary that is closed to new business. In June 2005 Chesnara acquired a further closed life insurance company - City of Westminster Assurance - for £47.8m. With effect from 30 June 2006, CWA's policies and assets were transferred into CA plc. Save & Prosper Insurance Limited and its subsidiary, Save & Prosper Pensions Limited, were acquired on 20 December 2010 for £63.5 million. With effect from 31 December 2011, the business of Save & Prosper was transferred into CA plc. On 28 November 2013 Chesnara acquired Direct Line Life Insurance Company Limited (subsequently renamed Protection Life Company Limited) from Direct Line Group plc for £39.3m. A process to transfer the PL business into CA plc is underway. CA plc operates an outsourced business model.
Movestic, a Swedish life assurance company which originally focused on pensions and savings, was acquired on 23 July 2009 for £20 million. The company is open to new business and seeks to grow its position in the Swedish unit-linked market. Its proposition was strengthened in February 2010 with the acquisition of the operations of Aspis Försäkringar Liv AB which has a risk and health product bias.
Furthermore the Company announced yesterday (3 December) its intention to purchase the Waard Group in the Netherlands for an initial consideration of £55.1m, financed by a successful share placing of £35.7m and cash reserves. Further details are available on the Company's website (www.chesnara.co.uk).
