United Kingdom life insurer Chesnara reports it was in talks with Irish financial services company Irish Life & Permanent in hopes of acquiring its closed life arm, City of Westminster Assurance Company, according to Reuters.
“Chesnara confirms that it is in discussions with Irish Life & Permanent regarding this particular potential transaction, but no agreement has been reached and the outcome of these discussions is not certain,” said a group statement.
Westminster’s embedded value is estimated at around 60 million pounds, according to the news agency, and acquirers usually pay about 20% discount to the embedded value of closed life funds. Embedded value reflects the current worth of life insurance policies as well as invested assets owed to shareholders, giving clues as to the likely future earnings from insurers’ portfolios.
Chesnara was spun off from Britain’s largest estate agency Countrywide and said last month it was in talks about two potential deals worth between 50 million and 150 million pounds each.