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Life insurance provider Chesnara announced today that it has agreed to buy Swedish rival Moderna Life for £20.1 million.

Moderna Life is a Stockholm-based unit-linked life insurance company, which was set up in 2000 and has 63 employees.

Chesnara also said it is looking for further acquisitions in the financial services sector.

Chief executive of Chesnara Graham Kettleborough said: "In my opinion, this is a high quality business which is well positioned in the market, which we have bought at an attractive price."

The company was acquired by Chesnara at a discount of 63 per cent of its estimated value of £54 million.

Chesnara chief executive Graham Kettleborough told Reuters that he was eyeing two British closed life funds which could some come to market.

Moderna Life is currently owned by Moderna Finance AB, which in turn is owned by Icelandic Glitnir Bank and it recently sold its non-life insurance operations to TrygVesta.

Chesnara said it expects the acquisition to have a positive effect on the embedded value per share of the company.

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This entry was posted on Friday, April 17th, 2009 at 6:00 pm and is filed under Life Insurance.