Chesnara is considering the possibilities of retaining the protection insurance new business operations of HSBC Life when it takes over the firm, Health & Protection understands.
Health & Protection also understands that around 230 staff including HSBC Life (UK) CEO Mark Hussein will transfer to Chesnara Group when the expected deal completes in 2026.
Sources close to the deal told Health & Protection that aside from a small crossover period it is expected that the Countrywide Assured and Chesnara Group brands will be used for the business.
Understand more about new business opportunities
The £260m purchase of HSBC Life (UK) by Chesnara was announced last week and is expected to complete in early 2026, subject to regulatory approvals.
As yet neither HSBC or Chesnara have confirmed if the HSBC Life protection insurance proposition will remain open to new business once the deal has completed.
Earlier this week, advisers told Health & Protection they would miss HSBC Life’s immediate decision process and its dual approach to critical illness cover should it be closed to new business.
A source close to the deal told Health & Protection the transaction offered the potential to generate further value from expanding Chesnara’s new business in the UK.
They added the consolidator was likely to work very closely with HSBC Life in the coming months to understand more about the new business opportunities from the deal.
They also noted that Chesnara was experienced in managing all of the products HSBC Life currently offers.
Chesnara previously bought Canada Life’s closed individual protection book of 47,000 policies, announcing the deal in May 2023 and managing it since completion in 2024.
230 roles to transfer
As part of the deal it was confirmed that HSBC Life (UK) will continue to be run in the ordinary course of business until completion with no material changes to the business being made.
Following the announcement, the bank said the transaction included all in-force life insurance policies and investment products written by the business.
It noted the HSBC Life (UK) business operated both open and closed life assurance portfolios, with approximately 454,000 policies, of which approximately 432,000 are protection products.
“On completion, approximately 230 roles supporting HSBC Life UK are expected to transfer to Chesnara and both parties will work closely over the coming months to enable a smooth transition for colleagues and customers,” it said.
“Following completion of the transaction, HSBC UK will continue to offer life insurance products to UK customers from third party providers.”
HSBC and Chesnara have been approached for comment.