HSBC Life (UK) is set to close to new protection business after its acquisition by Chesnara.
Earlier today, Chesnara announced its completion of HSBC Life UK in a £260m deal, stating that "there has been no material change affecting any matter contained in the acquisition announcement".
However, the firm has now decided to close the HSBC Life protection arm to new business due to "the competitive nature of the protection market".
The HSBC Life offshore bonds business will remain open to new customers.
In its acquisition statement, Steve Murray, Group CEO of Chesnara, commented: "We are delighted to have completed the acquisition of HSBC Life UK, our fifteenth and largest acquisition to date, and to formally welcome its customers and colleagues to Chesnara. Bringing HSBC Life UK into Chesnara increases our scale in the UK market, supports long-term cash generation and, as previously announced, enhances the Group's dividend. We also remain optimistic about our ability to undertake further value-accretive acquisitions as opportunities arise, consistent with our strategy."
However, in a later statement, the firm said: "We have been working closely with HSBC Life (UK) in recent months to evaluate the best long-term approach to new business.
“Chesnara has determined that under its ownership HSBC Life will continue to write new business for onshore bonds, a product that Chesnara already knows well, and we see exciting opportunities through the combination of our two onshore bond capabilities.
“We have also decided, following a detailed review, to close the protection offering to new business.
“Given the competitive nature of the protection market and our strategic objectives, Chesnara believes this is the right decision and will work closely with those impacted to consult on next steps.”
