It has been a busy week for closed life book specialist Chesnara (CSN). Not only is chief executive Graham Kettleborough stepping down - effective from 31 December - but Chesnara is buying an essentially closed life business - Waard - in Holland, for £55m.
Mr Kettleborough’s designated replacement, John Deane, insists the news doesn’t signal a strategic shift and the Waard acquisition does certainly look in line with the group’s past approach of buying and running down closed books. The cash generated supports a generous dividend and management says that “orderly capital extraction” is a key attraction of the Waard deal. Management also points out that moving into Holland will bolster diversification - not a bad idea, perhaps, given the challenges from the pace of UK pension reform.
