Chesnara has agreed to buy Scottish Widows Europe SA for €110 million in cash, marking its entry into the Luxembourg life insurance market.
Scottish Widows Europe is a closed life insurance business based in Luxembourg, which is currently owned by Scottish Widows Limited, a subsidiary of Lloyds Banking Group plc. It manages €1.7 billion in assets under administration. Its policyholders are mainly based in Germany, Austria and Italy.
Chesnara expects the portfolio to generate about €250 million in cash over the lifetime of the policies, including around €100 million in the first five years. The €110 million purchase price compares with €173 million in capital held by Scottish Widows Europe at the end of 2024.
The deal will be funded using existing cash resources, including part of the proceeds from a £150 million bond issued in August 2025. After the transaction, Chesnara said its capital position is expected to remain strong, with debt levels staying within its long-term target.
After completion, Scottish Widows Europe will continue to operate as a standalone business under its existing local management team. The company uses a largely outsourced operating model, with policy administration supported by Lifeware SA.
Completion of the acquisition is expected around the end of 2026, subject to regulatory approvals. Due to its size relative to Chesnara, the transaction is classified as a “significant transaction” under the UK Listing Rules and must be notified under Rules 7.3.1R and 7.3.2R.
“We are delighted to announce Chesnara’s second significant acquisition in the past twelve months. Scottish Widows Europe is another material and value-accretive transaction with a product set that we know well. It marks our entry into Luxembourg, providing a new platform for in-market and wider European consolidation and expansion,” Chesnara CEO Steve Murray said.
“We are pleased that another major financial institution, Lloyds Banking Group, has chosen us to look after their policyholders. We look forward to welcoming Scottish Widows Europe policyholders and new colleagues to Chesnara.”
Chesnara said it will host a presentation for analysts and investors on February 17, 2026 at 8:30am.
