EL7.AI
Mergers & AcquisitionsMedium•6 November 2026•
4 min read

Chesnara agreed to buy Scottish Widows Europe for €110 million

Key Facts

1Chesnara agreed to acquire 100% of Scottish Widows Europe, with the agreement announced on 17 February 2026.
2The announced cash consideration for the deal was €110 million.
3The company expected to add €1.7 billion in assets under management and about 46,000 active policies.
4Chesnara estimated cash generation of about €250 million over the lifetime of the policies, including about €100 million in the first five years.
5Completion of the deal was expected near the end of 2026, subject to customary regulatory approvals.

The inclusion of the Scottish Widows Europe deal in material dated 6 November was not a new announcement; Chesnara announced the acquisition agreement on 17 February 2026. The agreement provides for the purchase of 100% of the share capital of the closed life insurance company, based in Luxembourg, from Lloyds Banking Group subsidiary Scottish Widows. Chesnara set the total cash consideration at €110 million. The deal forms part of its announced European expansion, giving it entry to the Luxembourg market and adding in-force policies in other European countries. Completion was expected near the end of 2026, subject to customary regulatory approvals, according to the company’s announcement.

Chesnara estimated that the deal would add about €1.7 billion in assets under management, alongside approximately 46,000 active policies. The company said policyholders live in Germany, Austria and Italy, while the acquired insurer is based in Luxembourg. Chesnara described its entry into Luxembourg as providing a platform for further expansion and consolidation in Europe. These estimates indicate that the deal adds an existing portfolio to the group’s business, rather than merely a presence in a new market. The figures remain estimates cited in the announcement of the agreement, not figures confirming completion of the deal.

Alongside the assets and policies, Chesnara expected the portfolio to generate about €250 million in cash over the lifetime of the policies. It estimated that about €100 million of this amount would be generated in the first five years. These projections compare with the cash consideration of €110 million, but remain company estimates of future cash flows over different periods. The company also estimated the group’s pro forma regulatory solvency ratio after the deal at 173%. These indicators link the expected size of the portfolio, the cash flows it may generate and the potential effect of the acquisition on the group’s capital.

In its half-year results published on 25 August 2026, Chesnara said an application for a change of control of Scottish Widows Europe had been submitted, with approval expected near year-end. During the results presentation, the company said the application was under regulatory review by the Central Bank of Ireland. It also said legal completion readiness testing with Lloyds had been completed successfully. These steps leave regulatory approvals as an outstanding condition before the acquisition can be completed, despite the successful legal readiness testing. The disclosures cited did not confirm that the deal had been completed.

The half-year results showed an improvement in operating capital generation and cash remittances to the centre compared with the corresponding period a year earlier. Operating capital generation was £96 million, up 79% from £54 million in the first half of 2025. Cash remittances to the centre were £73 million, up 31% from £56 million in the comparable period. By contrast, the solvency coverage ratio stood at 185% at the end of the first half of 2026, compared with 257% at the end of 2025. The company said the ratio would remain above the upper end of its operating range of 140% to 160% after completion of the Scottish Widows Europe deal.

Chesnara maintained its core deal estimates in its interim results: about €1.7 billion in assets under management, approximately 46,000 policies and €250 million in cash generation over the lifetime of the policies. Chief Executive Steve Murray linked the deal to the group’s growth opportunities, saying the company sees “attractive opportunities to continue growing the business, supported by a strong pipeline of mergers and acquisitions opportunities and disciplined execution across the group.” The comment places the deal within a broader approach to growth through acquisitions, according to the company’s disclosure. Chesnara had set completion for near the end of 2026. That timing remains subject to regulatory approvals, including completion of the review of the change-of-control application.