Sanlam pension business sold to consolidator for £39m

Sanlam pension business sold to consolidator for £39m

Chesnara, a pensions and protection consolidator, has bought Sanlam's pension business for £39m.

According to a statement this morning (September 13), Chesnara and Sanlam agreed on a deal for the Sanlam Life & Pensions UK business, which is a provider of insurance and long-term savings products.

The price represents a discount of 19 per cent on the estimated value of the business of £48m. 

The deal comes after Sanlam confirmed last month (August 26) that it would wind down its adviser network, saying it no longer fit with its business model. Sanlam is also believed to be looking for buyers for its wealth business.

The deal is expected to complete in early 2022 and will see £2.9bn of assets under administration and around 80,000 policies added to Chesnara.

The business will be integrated into closed book provider Countrywide Assured, but will remain open to new business, and all employees will transfer over.

Sanlam Investments UK will keep a relationship with Sanlam Life & Pensions by continuing to offer investment management services up until 2031.

Jonathan Polin, chief executive officer of Sanlam UK, said: “This deal is a testament to the strength and quality of Sanlam Life & Pensions and its long-standing track record of excellent client service. 

“Chesnara is a highly respected and established life insurance and pensions consolidator and I am confident that the business will flourish under its new ownership for the benefit of all its key stakeholders, including policyholders.”

Sanlam Life & Pensions is based in Bristol and runs the majority of its core operating functions in-house with approximately 100 employees.

Last month (August 27),FTAdviserreported that Chesnara, which also operates in the Netherlands and Sweden, is sitting on £120m in liquid resources for M&A deals, having made its last acquisition on UK soil back in 2013.

In the UK, where it operates under the closed book brand Countrywide Assured, Chesnara focuses on unit-linked pension policies and critical illness cover.

John Deane, chief executive officer of Chesnara, added: " Sanlam Life & Pensions business is well aligned to Chesnara’s acquisition strategy and will be integrated with our existing UK operations. 

“We believe that the market prospects for further acquisitions across our target markets remain positive and we continue to be confident in our ability to finance and execute such transactions on attractive terms for both vendors and our shareholders.”

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