Specialist insurer Chesnara is buying Save & Prosper Insurance from its present owner JP Morgan for £63.54 million cash.

Specialist insurer Chesnara is buying Save & Prosper Insurance from its present owner JP Morgan for £63.54 million cash.

The fully-listed company says the deal fits its stated strategy of participating in the consolidation of the life and pensions industry in the UK and western Europe and argues the price represents a 31.7 per cent discount to what Chesnara estimates to be Save & Prosper’s £93 million embedded value.

Chesnara, steered by chief executive officer Graham Kettleborough, is funding the takeover with new bank facilities of £40 millon and a share placing for around £22 million. The company’s shares now trade at 210p valuing the company at £220 million.