Chesnara Plc · LSE:CSN
Chesnara — Merger or Acquisition (September 2021)
18 slides from Chesnara's merger presentation, Sep 13, 2021
Slide 1: Chesnara Enhances Scale in the UK with the Acquisition of Sanlam Life & Pensions UK Limited
CHESNARA ENHANCES SCALE IN THE UK WITH THE ACQUISITION OF SANLAM LIFE & PENSIONS UK LIMITED 13 September 2021
Slide 2: Enhanced Scale in the UK with Material Value Creation Potential
ENHANCED SCALE IN THE UK WITH MATERIAL VALUE CREATION POTENTIAL Chesnara is to acquire Sanlam Life & Pensions UK Limited (SLP), a specialist provider of insurance and long- term savings products in the UK, subject to regulatory approvals ADDS SIGNIFICANT SCALE OF £2.9BN OF ASSETS UNDER ADMINISTRATIO
Slide 3: Sanlam Life & Pensions UK Limited: Business Overview
SANLAM LIFE & PENSIONS UK LIMITED: BUSINESS OVERVIEW Sanlam Life & Pensions UK Limited is a UK-based provider of insurance and savings products and is a strong fit for our strategy and operating model Specialist provider of insurance and long-term savings, with a Key financials as at 31 December 202
Slide 4: The Chesnara Group: Pre-SLP
THE CHESNARA GROUP: PRE-SLP The business of SLP will be integrated and Part VII transferred into Countrywide Assured (CA), following the same path as our successful UK acquisitions. Below are the details of the group as at 30 June 2021. EcV SII Ratio £630m* Chesnara 153%* United Kingdom Sweden Nethe
Slide 5: The Transaction Overview
THE TRANSACTION OVERVIEW Chesnara has agreed to acquire SLP* - an attractive transaction for the Chesnara group in the UK - Estimated Day 1 EcV under Chesnara ownership of £48.1m at 31 December 2020 (Note 1) Valuation - Cash consideration of £39m, funded through our existing Revolving Credit Facilit
Slide 6: Overview of Value Creation Potential from SLP
OVERVIEW OF VALUE CREATION POTENTIAL FROM SLP Acquired at a discount to Economic Value. Creates future potential commercial upside through the inclusion of real world returns, future expected expense synergies and capital efficiencies, and the run off of the EcV risk margin; all of which will emerge
Slide 7: Alignment with Our Acquisition Strategy
ALIGNMENT WITH OUR ACQUISITION STRATEGY SLP is an attractive acquisition which meets the four key assessment pillars of our acquisition strategy Our criteria How the SLP acquisition satisfies this • Creates incremental long term cash Cumulatively our future acquisitions must be • Simple funding mo
Slide 8: Timetable
TIMETABLE SLP will be integrated into our existing UK operations, while minimising execution risk Transaction agreement and announcement Today T Transaction regulatory approval and Q1 2022, subject to the appropriate regulatory approval timelines completion Closure to new business Following completi
Slide 9: An Attractive Deal for Shareholders
AN ATTRACTIVE DEAL FOR SHAREHOLDERS Chesnara has a proven track record of delivering value for shareholders from the acquisition of insurance companies and portfolios ENHANCED SCALE IN UK THROUGH ADDITIONAL AUA AND POLICIES MATERIAL VALUE CREATION POTENTIAL SUPPORTS THE LONGER-TERM SUSTAINABILITY OF
Slide 10: Appendices
APPENDICES CHESNARA | SANLAM LIFE & PENSIONS UK LIMITED ACQUISITION 9
Slide 11: Financial Metrics
FINANCIAL METRICS £m as at 31 December 2020 Chesnara SLP Pro forma (Note 1) Own Funds, on an SLP basis of preparation n/a 58.5 n/a Solvency ratio, on an SLP basis of preparation n/a 133% n/a Own Funds, on a Chesnara basis of preparation 567.8 39.4 567.5 Solvency ratio, on a Chesnara basis of prepara
Slide 12: An Introduction to Chesnara
AN INTRODUCTION TO CHESNARA WHO WE ARE – Chesnara plc is a life assurance and pensions consolidator. We are a responsible and profitable company engaged in the management of life and pension policies in the UK, Sweden and the Netherlands. – The group comprises both open-book and closed-book operatio
Slide 13: An Introduction to Chesnara: Our Diversified Strategy
AN INTRODUCTION TO CHESNARA OUR DIVERSIFIED STRATEGY Chesnara has three strategic objectives: The existing in-force books are the core source of cash and are at the heart of our MAXIMISE VALUE FROM 01 investment case EXISTING BUSINESS Acquisitions maintain the scale and effectiveness of the operatin
Slide 14: An Introduction to Chesnara: Our Diversified Business Model
AN INTRODUCTION TO CHESNARA OUR DIVERSIFIED BUSINESS MODEL Our business model is diversified between different territories and is underpinned by prudent management focussed on lower risk unit-linked and protection business. Figures shown are before the impact of the acquisition of SLP. STAKEHOLDERS
Slide 15: Our Company History
OUR COMPANY HISTORY COMPANY HISTORY WHAT WE HAVE DONE Value Growth £m 2004 Chesnara is born. EEV of £126m. 9 455 603 723 626 670 637 630 SUCCESSFUL ACQUISITIONS, 376 417 2005 First acquisition. City of Westminster prior to the acquisition of SLP 189 187 183 263 355 295 311 Assurance adds £30m of EEV
Slide 16: Contact Details
CONTACT DETAILS John Deane Chesnara Group Chief Executive Officer [email protected] +44 1772 972079 Steve Murray Chesnara Group Chief Executive Officer (Designate) [email protected] +44 1772 972079 David Rimmington Chesnara Group Finance Director [email protected] +44
Slide 17: Disclaimer
Disclaimer This presentation has been issued by Chesnara plc (“Chesnara” or the “Company”) and is being made only to and directed at: (a) persons who have professional experience in matters relating to investments falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Pr
Slide 18: Chesnara | 2019 Final Results Presentation
CHESNARA | 2019 FINAL RESULTS PRESENTATION 17