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).