HSBC Agrees to Sell UK Life Insurance Business to Chesnara
Steve Murray, the CEO of Chesnara, stated, 'The proposed acquisition of HSBC Life (UK) represents a material step up in scale for Chesnara Group. HSBC Life (UK) is a high-quality business operating in products that we know well and is capable, under our ownership, of generating substantial cash flows for many years. This highly accretive transaction will allow us to build on our strong, 20-year track record of uninterrupted dividend growth.'
Details of HSBC's Divestiture Deal
Chesnara expects the acquisition to generate incremental lifetime cash of more than £800 million, including above £140 million in the first five years following closure.
The acquisition of HSBC Life (UK) is the biggest to date for Chesnara and is expected to increase the latter's assets under administration by £4 billion and add 454,000 policies to its U.K. operations.
Chesnara expects the transaction to increase its final fiscal 2025 and interim fiscal 2026 dividends by an adjusted 6%.
The £260-million consideration will be financed through a mix of £55 million in internal cash, a £65 million drawdown from Chesnara's amended £150 million revolving credit facility, and gross proceeds of approximately £140 million from a fully underwritten rights issue.
Chesnara expects the deal to result in its inclusion in the FTSE 250 index.
HSBC Life Sale Aligns With Bank's Simplification Efforts
HSBC's move aligns with its broader repositioning strategy to streamline operations, focusing more on markets with strong growth potential, as highlighted by CEO Georges Elhedery in October 2024.
The sale of the life insurance business in the U.K. is, thus, the latest in a series of asset disposals by HSBC as the bank seeks to focus more on Asia.
A few days ago, HSBC's subsidiary, HSBC Continental Europe, entered an agreement to sell its custody operations in Germany to BNP Paribas BNPQY. Although the financial terms of the agreement remain undisclosed, the deal will involve the complete transfer of HSBC Continental Europe's custody operations in Germany, including all assets and its related clients, to BNP Paribas. Post-completion, both HSBC and BNP Paribas are committed to ensuring a smooth transition for clients and colleagues.
In March 2025, HSBC's U.K. division announced the sale of its private client trust business — HSBC Trust Company (UK) Limited — to Ludlow Trust. Likewise, in December 2024, HSBC Continental Europe signed a Memorandum of Understanding for the sale of its French insurance arm, HSBC Assurances Vie (France), to Matmut Société d'Assurance Mutuelle.
HSBC is also progressing with divestments in South Africa and Bahrain. Apart from these, it has completed the sale of its businesses in the United States, Canada, New Zealand, Greece, Russia, Argentina and Armenia, as well as the retail banking operations in France and Mauritius.
HSBC's Price Performance & Zack Rank
So far this year, HSBC shares have rallied 22.7% compared with the industry 's growth of 26.1%.
Currently, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Divestitures by Other Finance Firms
In June 2025, Huntington Bancshares HBAN announced its decision to streamline operations by divesting the corporate trust and institutional custody business of its subsidiary, The Huntington National Bank (Huntington), to Argent Institutional Trust Company ('AITC'). The move reinforces the company's commitment to enhancing its core financial offerings, positioning itself for greater efficiency and long-term profitability.
Post-completion, AITC and Huntington will maintain a strategic relationship, with Argent continuing to provide corporate trust, escrow and custody solutions to Huntington's commercial banking clients.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Huntington Bancshares Incorporated (HBAN): Free Stock Analysis Report
BNP Paribas SA (BNPQY): Free Stock Analysis Report
HSBC Holdings plc (HSBC): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
18 hours ago
- CTV News
EU approves counter-tariffs on U.S. goods, says trade deal within reach
BRUSSELS — The European Commission said on Thursday a negotiated trade solution with the United States is within reach - while EU members voted to approve counter-tariffs on 93 billion euros (US$109 billion) of U.S. goods in case the talks collapse. The 27-nation bloc's executive has repeatedly said its primary focus is on reaching a deal to avert 30 per cent U.S. tariffs that U.S. President Donald Trump has said he will apply on August 1. 'Our focus is on finding a negotiated outcome with the U.S. ... We believe such an outcome is within reach,' an EU spokesperson said in response to reporters' questions. Alongside negotiations, the Commission has pressed on with plans for potential countermeasures, merging two packages of proposed tariffs of 21 billion euros and 72 billion euros into a single list and submitting this to EU members for approval. The rate would be up to 30 per cent, designed to mirror U.S. tariffs, EU sources said. Diplomats said EU countries overwhelmingly approved the measures on Thursday, which the Commission later confirmed. The first package of countermeasures would enter force on August 7, with tariffs on soybeans and almonds delayed until December 1, an EU official said. The second package would enter force in two stages on September 7 and February 7. So far the EU has held back from imposing any countermeasures, despite Trump's tariffs already covering 70 per cent of EU exports. EU member states authorized the first package of countermeasures in April, but these were immediately suspended to allow time for negotiations. Closing on deal The EU and United States now appear to be heading towards a possible trade deal, according to EU diplomats, which would result in a broad 15 per cent tariff on EU goods imported into the U.S., mirroring a framework agreement Washington struck with Japan. Trump would still need to take any final decision. The White House said discussions of a deal should be considered 'speculation.' Trump trade adviser Peter Navarro told Bloomberg News the report from the EU should be taken with 'a grain of salt.' French Finance Minister Eric Lombard and Italian Industry Minister Adolfo Urso told a joint press conference in Paris they were not aware of a draft agreement, Urso adding he would only pass judgment when one was reached. There was little information available about what the EU would offer the United States to secure a deal. One EU diplomat said the bloc was not looking at a pledge of investment in the United States, as Japan has agreed. Another said the EU might reduce some of its own duties. Its current import duty for cars is 10 per cent. Under the outlines of the potential deal, the 15 per cent rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing U.S. duties, which average just under five per cent. There could also be exemptions for sectors such as aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, diplomats said. Washington does not, however, appear willing to lower its 50 per cent tariff on steel. --- Reporting by Philip Blenkinsop and Benoit Van Overstraeten, additional reporting by Julia Payne and Leigh Thomas; editing by Tomasz Janowski, Peter Graff and Hugh Lawson
National Post
18 hours ago
- National Post
SES and the Luxembourg Government to Develop and Launch New Defence Satellite for GovSat
Article content GovSat-2 is aimed at meeting growing demand for highly secure, flexible MILSATCOM services Article content LUXEMBOURG — SES and the Luxembourg Government today announced their plan for development of a second satellite for GovSat (LuxGovSat S.A.), the public-private partnership and 50/50 joint venture between SES and the Luxembourg Government that provides secure, reliable and accessible satellite communication services for governments. Article content GovSat-2 will be positioned over the European satellite arc. It will join GovSat-1 in augmenting reliable connectivity services for government customers over the region. The satellite will be built by Thales Alenia Space on its Spacebus 4000B2 platform. Article content Since launching in 2018, the joint venture's first defence satellite, GovSat-1, operated by GovSat from a secure missions operations centre in Luxembourg, has supported the Luxembourg Directorate of Defence, EU and NATO nations, the U.S. Department of Defense, and other governmental users. It has been providing connectivity for theatres of operation, interconnection of institutional as well as defence sites, border control, Intelligence, Surveillance & Reconnaissance, and various other types of communications for air, land and maritime missions. Article content The state-of-the-art GovSat-2 satellite will extend the coverage and scale of GovSat, and is designed to address the needs of defence users at the highest Security and Service Assurance Level. The satellite will add new ultra-high frequency (UHF) channels, X- and military Ka-band, and will include other security features such as dedicated hardening, an advanced anti-jamming system, and embedded geolocation. Article content The investment in GovSat-2 is in line with SES's stated financial policy criteria, and also in line with prior combined company CAPEX guidance. The satellite will be co-funded by SES and the Luxembourg Government, subject to approval of the corresponding draft law by Parliament. Article content 'The procurement of GovSat-2 underscores the success of the GovSat public-private partnership to provide Luxembourg, our allies and partners with secure military satellite communications that supplement their national systems and support a wide range of critical military, defence and civilian security applications,' said Yuriko Backes, Minister of Defence of Luxembourg. 'With GovSat-2, Luxembourg will once again demonstrate its significant impact in the field of Space.' Article content 'With geopolitical shifts and an increased need for scalable national security and defence capabilities, we are seeing growing demand for secure, reliable geostationary (GEO) connectivity with comprehensive coverage across Europe, the Middle East and Africa as well as the Atlantic and Indian Oceans, the Mediterranean and the Baltic Seas,' said Adel Al-Saleh, CEO of SES. 'As governments across Europe look to bolster their sovereign satellite communications for defence and intelligence needs, GovSat-2 gives GovSat additional MILSATCOM capacity to address this strategic area of growth.' Article content 'GovSat-2 reflects the growing demand in military satcom, allowing our GovSat public-private venture to scale and broaden the services we have been providing since 2018. For this brand new satellite, we are adding more frequency bands along with innovative functionalities for it to be well-positioned to address the future connectivity challenges the NATO and partner nations face,' said Patrick Biewer, CEO of GovSat. Article content Twitter Article content | Article content Facebook Article content | Article content YouTube Article content | Article content LinkedIn Article content | Article content Instagram Article content Read our Blogs > Article content Visit the Media Gallery > Article content About SES Article content At SES, we believe that space has the power to make a difference. That's why we design space solutions that help governments protect, businesses grow, and people stay connected—no matter where they are. With integrated multi-orbit satellites and our global terrestrial network, we deliver resilient, seamless connectivity and the highest quality video content to those shaping what's next. Following our Intelsat acquisition, we now offer more than 100 years of combined global industry leadership—backed by a track record of bringing innovation 'firsts' to market. As a trusted partner to customers and the global space ecosystem, SES is driving impact that goes far beyond coverage. Article content Article content Article content Article content Contacts Article content
Globe and Mail
19 hours ago
- Globe and Mail
3 Integrated Energy Stocks to Gain Despite Industry Vulnerability
The crude oil pricing environment is expected to experience significant volatility this year, which will negatively impact the exploration and production activities of integrated energy companies. A deceleration in oil production growth can create challenges, thereby constraining earnings from upstream operations. At the same time, the accelerating shift toward renewable energy is introducing greater uncertainty to the Zacks Oil and Gas Integrated International industry's prospects. This combination of factors suggests a challenging and softened industry environment that is expected to persist through at least the remainder of 2025. Among the companies in the industry that will probably survive the business challenges are Exxon Mobil Corporation XOM, Chevron Corporation CVX and Shell plc SHEL. About the Industry The Zacks Oil and Gas Integrated International industry covers companies primarily involved in upstream, midstream and downstream operations. These companies have upstream businesses in the United States (including prolific shale plays and the deepwater Gulf of Mexico), Asia, South America, Africa, Australia and Europe. Midstream operations of energy companies entail transporting oil, natural gas liquids and refined petroleum products. In downstream businesses, the firms buy raw crude to produce refined petroleum products. The companies' downstream activities involve chemical businesses that manufacture raw materials for making plastics. The integrated players are now gradually focusing on renewables, leading to the energy transition. The firms aim to lower emissions from operations and cut the carbon intensity of the products sold. 3 Trends Shaping the Future of the Industry Macroeconomic Volatility: The integrated energy sector is currently navigating a highly uncertain and challenging macroeconomic environment. Refining, renewable energy and chemical segments are particularly under pressure due to limited visibility into future market dynamics. Escalating trade tensions are compounding this uncertainty, raising concerns over potential economic slowdowns. Meanwhile, oil prices remain volatile, swayed by geopolitical risks and fluctuating OPEC+ production strategies. As a result, major integrated energy players are grappling with profitability challenges. Slowdown in Production Growth to Hurt Upstream Business: There has been a slowdown in oil production growth in the upstream businesses of integrated energy companies in the United States due to shareholder demands for a greater focus on returning capital rather than investing in production expansion. As production growth slows, output decreases, which can lead to reduced revenues. Since upstream operations depend heavily on volume to generate income, any stagnation in production growth has a direct and negative impact on their bottom line. Growing Demand for Renewables is Concerning: Governments, investors and stakeholders are placing growing emphasis on addressing climate change, leading to an increased demand for renewable energy. Consequently, the demand for products reliant on oil, natural gas and natural gas liquids is expected to decline, with solar and wind energy gaining prominence in the energy landscape. The integrated energy firms are adversely impacted by these trends as they are primarily engaged in the production and transportation of fossil fuels, such as oil, and the sale of refined petroleum products. Zacks Industry Rank Indicates Bearish Outlook The Zacks Oil and Gas Integrated International industry is part of the broader Zacks Oil - Energy sector. It carries a Zacks Industry Rank #189, which places it in the bottom 23% of the 245 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Before we present a few stocks that you may want to consider, let us take a look at the industry's recent stock market performance and valuation picture. Industry Lags S&P 500 & Sector The Zacks Oil and Gas Integrated International industry has underperformed the broader Zacks Oil - Energy sector and the Zacks S&P 500 composite over the past year. The industry has plunged 5.4% over this period compared with the S&P 500's growth of 17.3% and the broader sector's decline of 2.6%. One-Year Price Performance Industry's Current Valuation Since oil and gas companies are debt-laden, it makes sense to value them based on the Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) ratio. This is because the valuation metric takes not just equity into account but also the level of debt. On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 4.27X, lower than the S&P 500's 17.85X. It is also below the sector's trailing 12-month EV/EBITDA of 4.77X. Over the past five years, the industry has traded as high as 6.54X and as low as 2.75X, with a median of 4.11X. Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio 3 Integrated International Stocks to Watch Chevron: The company completed its $53-billion acquisition of Hess Corporation, thereby strengthening its upstream portfolio and obtaining a 30% interest in the highly valued Stabroek Block offshore Guyana. Chevron gains strategic access to one of the most prolific deepwater discoveries of the past decade, estimated to hold more than 11 billion barrels of recoverable oil. The acquisition also strengthens its position in the U.S. Bakken shale, the Gulf of Mexico and Southeast Asia. It currently carries a Zacks Rank #3 (Hold). The move comes as a turning point for Chevron as it is facing mounting pressure to replenish its reserves and strengthen free cash flow amid ongoing volatility in the oil markets. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Price and Consensus: CVX ExxonMobil: The company's acquisition of Pioneer Natural Resources expanded its production capabilities in the Permian Basin, one of the most profitable regions in the United States due to its inexpensive production costs. XOM boasts a strong portfolio of upstream assets, focused on oil-rich resources in the Permian Basin and offshore Guyana. Production costs in those assets are low. Therefore, the leading integrated energy major can overcome a collapse in oil and gas prices. Similar to its operations in the Permian, ExxonMobil boasts a robust project pipeline in offshore Guyana resources. It presently carries a Zacks Rank #3. Price and Consensus: XOM Shell: The company's acquisition of Pavilion Energy strengthens its LNG trading capabilities and positions itself for long-term growth in cleaner fuels. Shell's position as a major supplier of LNG should help the company meet the fuel's growing demand and improve its cash flow. Shell, with a Zacks Rank of 3, is targeting a 4-5% annual increase in LNG sales over the next five years and 1% annual production growth. Price and Consensus: SHEL 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report
