Lloyds Sells Luxembourg Life Unit with €1.7bn Assets for $130.2m
Lloyds Banking Group has agreed to sell Scottish Widows Europe to Chesnara for $130.2 million, disposing of 46,000 policies and €1.7 billion in assets under administration. The sale price equates to 0.64-times 2024 forecast own funds of €173 million and is expected to close by end-2026.
1. Transaction Details
Lloyds Banking Group will divest its Luxembourg-based Scottish Widows Europe closed life insurer to Chesnara for $130.2 million, transferring 46,000 active policies and €1.7 billion in assets under administration. The agreed multiple is 0.64x the unit’s 2024 forecast own funds of €173 million.
2. Impact on Lloyds Banking Group
The disposal will reduce Lloyds’ insurance segment and help redeploy capital towards core banking operations, potentially boosting its CET1 ratio. The sale proceeds are expected to reinforce liquidity and improve return on equity metrics over the medium term.
3. Closing Timeline and Approvals
The transaction is subject to regulatory approvals and is anticipated to finalize by end-2026. Post-closing, Scottish Widows Europe will continue operating independently under its existing management and outsourced service arrangements.