LONDON: Chesnara, the European life and pensions consolidator, said Friday it has agreed to acquire 100% of the share capital of MetLife UK Limited, the closed-book UK life insurance subsidiary of MetLife Inc.

The proposed transaction covers only MLUK’s closed book. MetLife’s ongoing UK protection business is not included, and the company continues to service those customers in the UK, a statement said.

MLUK closed to new business in 2017 and manages a portfolio of unit-linked investment policies with optional guarantees and variable annuities for approximately 18,000 customers, with £1.7 billion ($2.2 billion) in assets under administration as of Dec. 31, 2025.

Chesnara said the deal is expected to generate lifetime cash flows of approximately £90 million, about half of which are expected to emerge in the first five years after completion. At completion, under Chesnara’s ownership and target operating model, the transaction is expected to increase Own Funds and Contractual Service Margin by approximately £45 million and to have a broadly neutral impact on the group’s Solvency II ratio.

The consideration payable is subject to customary adjustments at completion and is not expected to be material.

MLUK has an existing external reinsurance arrangement with a European reinsurer rated AA by both S&P and Fitch. The arrangement covers guarantee risk associated with MLUK’s in-force variable annuity portfolio and will remain in place after completion.

The policies are currently administered by SS&C Technologies, Chesnara’s existing UK outsourcing partner, which Chesnara said aligns closely with its operating model and should facilitate a smooth transition.

The transaction, Chesnara’s fourth announced in the last two years, is expected to complete in the first half of 2027, subject to customary regulatory approvals.

Chesnara was advised by Fenchurch Advisory Partners, PricewaterhouseCoopers LLP and Slaughter and May.

Steve Murray, Group Chief Executive of Chesnara, commented: “We are pleased to announce our 4th acquisition in the last two years. The transaction adds further scale and diversification to our UK business as well as an estimated £90m of lifetime cashflows. MLUK’s closed-book portfolio is an excellent fit with our existing UK operations and, with its administration provided by SS&C, already closely aligns with our operating model. The transaction is a further demonstration that Chesnara is a consolidation partner of choice for blue-chip counterparties. We continue to see a healthy pipeline of M&A opportunities and are highly confident in our ability to continue to execute transactions on attractive terms for our investors”.