Latest news with #Chesnara
Yahoo
04-07-2025
- Business
- Yahoo
HSBC Agrees to Sell UK Life Insurance Business to Chesnara
HSBC Holdings plc HSBC has agreed to sell its life insurance business in the U.K., HSBC Life (UK) Limited, to Chesnara, a life and pensions consolidator, for a cash consideration of £260 million. The completion of the deal, subject to customary regulatory approvals, is expected in early 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.' Chesnara expects the acquisition to generate incremental lifetime cash of more than £800 million, including above £140 million in the first five years following 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. 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 expects the deal to result in its inclusion in the FTSE 250 index. 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 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 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 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. So far this year, HSBC shares have rallied 22.7% compared with the industry's growth of 26.1%. Image Source: Zacks Investment Research Currently, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 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. 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 Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report BNP Paribas SA (BNPQY) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Business
- Yahoo
Chesnara to acquire HSBC Life UK in £260m deal
Life and pensions consolidator Chesnara has agreed to acquire HSBC Life (UK) for £260m ($354.9m) from HSBC Group. HSBC Life (UK) is a specialist provider of life protection and investment bonds in the UK, with Eligible Own Funds of £314m as of 31 December 2024. The transaction encompasses all in-force life insurance policies and investment products written by HSBC Life (UK). HSBC Life, a subsidiary of HSBC Bank since 1988, offers insurance products through HSBC banking channels and selected third parties, including financial advisers. Following the completion of the deal, approximately 230 roles supporting HSBC Life (UK) are anticipated to transfer to Chesnara. The deal is expected to boost Chesnara's scale in the UK, adding approximately £4bn in assets under administration and around 454,000 policies. Chesnara CEO Steve Murray said: "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.' In a statement, Chesnara said the acquisition is projected to generate incremental lifetime cash of over £800m, with more than £140m expected in the first five years post-acquisition. Chesnara expects the deal to support a 6% increase in its final FY25 and interim FY26 dividends. The deal, which is part of HSBC Group's simplification strategy announced in October 2024, is expected to complete in early 2026. In December 2024, HSBC Continental Europe agreed to divest its French life insurance business, HSBC Assurances Vie (France), to Matmut Société d'Assurance Mutuelle in a cash transaction of €925m ($1.1bn). "Chesnara to acquire HSBC Life UK in £260m deal " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
04-07-2025
- Business
- Globe and Mail
HSBC Agrees to Sell UK Life Insurance Business to Chesnara
HSBC Holdings plc HSBC has agreed to sell its life insurance business in the U.K., HSBC Life (UK) Limited, to Chesnara, a life and pensions consolidator, for a cash consideration of £260 million. The completion of the deal, subject to customary regulatory approvals, is expected in early 2026. 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
Reuters
03-07-2025
- Business
- Reuters
Chesnara to buy HSBC Life UK in $355 million deal
LONDON, July 3 (Reuters) - Life and pensions company Chesnara (CSN.L), opens new tab has agreed to buy HSBC's (HSBA.L), opens new tab UK life insurance business for 260 million pounds ($355 million) in cash, Chesnara said on Thursday. The sale of HSBC Life (UK) is the latest by the banking giant as it looks to simplify its business and improve returns under CEO Georges Elhedery. Chesnara said it expected to generate over 800 million pounds in additional lifetime cash flow from HSBC Life (UK), with annual cash generation exceeding 140 million pounds in the first five years. It said the deal would be funded from a combination of existing cash resources, the firm's revolving credit facility and a sale of new shares to existing shareholders. Chesnara said it intended to raise gross proceeds of about 140 million pounds through a rights issue of 79.5 million shares at 176 pence per share, with shareholders getting 10 new ordinary shares for every 19 shares they currently hold. Chesnara shares closed at 293.5 pence on Wednesday and were little changed in early London trading. The acquisition is expected to close in early 2026, subject to regulatory approvals. Chesnara, which was formed in 2004 and has operations in the UK and Europe, reported assets under administration of 14 billion pounds ($18.7 billion) as of December 31, 2024. ($1 = 0.7327 pounds)
Daily Mail
03-07-2025
- Business
- Daily Mail
HSBC sells British life insurance arm as bank's boss ramps up cost-cutting
HSBC has sold its UK life insurance arm, HSBC Life, to insurance firm Chesnara for £260million Policyholders with HSBC Life will be transferred over to Preston-based Chesnara. Chesnara expects the deal to add more than 450,000 new policies and £4million in assets under administration. The banking giant's new boss, Georges Elhedery, is on a mission to simply and streamline the business, offloading any operations which no longer fit its core focus. HSBC is undergoing a radical revamp under Elhedery since he took the helm in September. The bank has cut jobs, combined units and shuttered divisions. HSBC Life is a specialist life protection and investment bond provider, which had eligible own funds of £314million as at 31 December. Chesnara said it expected to generate over £800million in additional lifetime cash flow from HSBC Life, with annual cash generation exceeding £140million in the first five years. The firm said on Thursday it expects eligibility for FTSE 250 inclusion after boosting liquidity. The deal will be funded from a combination of existing cash resources, the firm's revolving credit facility and a sale of new shares to existing shareholders. Chesnara said it intended to raise gross proceeds of around £140million via a rights issue of 79.5million shares at 176p per share, with shareholders getting 10 new ordinary shares for every 19 shares they currently hold. Chesnara shares closed at 293.5p on Wednesday and were little changed in early London trading. The acquisition is expected to close early next year, subject to regulatory approvals. Chesnara, which was formed in 2004 and has operations in the UK and Europe, reported assets under administration of £14billion as of 31 December. Steve Murray, chief executive of Chesnara, said: 'The proposed acquisition of HSBC Life (UK) represents a material step up in scale for Chesnara Group. 'This highly accretive transaction will allow us to build on our strong, 20-year track record of uninterrupted dividend growth.' In recent years, HSBC has sought to simplify its structure and concentrate on core banking activities, notably in Asia, where it continues to deploy significant capital. In December, Canada Life announced it was transferring its bond business to Chesnara. Chesnara shares were up 0.21 per cent or 0.62p to 294.12p on Thursday, having risen 18 per cent in the last year. HSBC shares fell 0.3 per cent or 2.7p to 882.60p, having risen over 28 per cent in the last year.
