London pensions firm eyes more deals after HSBC and Lloyds takeovers

Pension consolidator Chesnara is looking to make more acquisitions following its recent takeovers of HSBC Life UK and Lloyds' Scottish Widows Europe. The firm reported a £61m pre-tax profit in the first half of 2026, a significant improvement from a £5m loss in the same period last year. Revenue for the period surged to £255.9m from £136m, driven by a £5bn increase in assets under administration and 440,000 new policies.

Chesnara is expected to benefit from its £100m acquisition of Lloyds' Scottish Widows Europe, which is set to finalize "around the end of 2026". The firm's CEO, Steve Murray, indicated that the company is exploring additional potential takeovers, citing a robust M&A pipeline. Lloyds sold Scottish Widows Europe to Chesnara in February, adding around €1.7bn in assets under administration and 46,000 policies.

The acquisition was deemed an attractive deal by the market, with Chesnara paying around 64 cents for every euro of value Scottish Widows Europe owns. The added portfolio is projected to generate around €250m in cash over its lifetime. The integration of HSBC's portfolio contributed to a 79% increase in the company's total operating capital generation to £96m, pushing Chesnara back into the FTSE 250 in August 2025.

The deal followed HSBC's CEO, Georges Elhedery, outlining plans for a "simpler, more dynamic and agile organization" in October 2024. Chesnara boosted its dividend by 6% to 8.16p per share, marking the 22nd consecutive year of increased returns for the company.