Acquisition

2 Jun 2005 13:32

Chesnara plcJune 2, 2005Chesnara plc completes acquisition of City of Westminster AssuranceFollowing approvals from shareholders and from the Financial ServicesAuthority, Chesnara plc (`Chesnara') has today completed the acquisition ofCity of Westminster Assurance Company Ltd from Irish Life and Permanent plc fora consideration of ‚£47.5m.Graham Kettleborough, Chief Executive, commented:'This is an important first strategic step for Chesnara. We have acquired awell-established run-off book, with cash flows which will help support ourobjective of delivering steady, long term income to our investors. Since thesuccessful outsourcing of our back office at the beginning of the year, we havelooked at a number of opportunities and see real attractions in City ofWestminster. It matches our business profile well, will give us access toadditional management resources and, as an established run-off business, hasfuture surplus flows which can be predicted with a reasonable degree ofcertainty. This is a good deal for Chesnara and its shareholders.'EnquiriesChesnara plcGraham Kettleborough, Chief Executive 07799 407519Cubitt Consulting(Public Relations advisers to Chesnara)Simon Brocklebank-Fowler 0207 367 5100ENDCHESNARA PLC