Chesnara to Buy HSBC’s UK Life Insurance Arm for £260 Million

Chesnara Plc has agreed to buy HSBC Holdings Plc’s life insurance business in the UK, creating an entity with a combined £18 billion ($25 billion) of assets under administration.

The acquisition, valued at £260 million, would result in lifetime cash generation in excess of £800 million, London-listed Chesnara said in a statement on Thursday. It will use £55 million of its own reserves, £65 million from an undrawn revolving credit facility and £140 million through a rights issue to help fund the purchase.