(Reuters) - Chesnara Plc (CSN.L), an insurance-focused takeover specialist, said on Friday it was “optimistic” that the UK acquisition market would become more active as uncertainty caused by regulatory changes and Solvency II capital rules reduces.
The company said it had noted a recent gradual increase in closed book market activity in the UK, with larger finance companies looking to potentially shed capital intensive life and pension businesses and refocus on their core activities.
“We have the flexibility to accommodate a wide range of potential target books,” said Chesnara, which mainly buys life insurance funds closed to new customers.
The company posted a nearly 5 percent fall in 2016 IFRS pretax profit to 40.7 million pounds ($50.74 million), hurt by lower interest rates and the absence of gains from its acquisition of Dutch company Waard Group in 2015.
Reporting by Esha Vaish and Noor Zainab Hussain in Bengaluru; Editing by Sunil Nair