Chesnara - April 2009

On 23 July 2009, Chesnara plc, a retained client of Canaccord Genuity, announced the completion of its acquisition of Moderna Försäkringar Liv AB ("Moderna Life") a Stockholm-based unit-linked life insurance company which specialises in corporate and personal pension arrangements and life assurance policies. Moderna Life had approximately a 9 per cent. market share of the Swedish unit-linked pensions business at the time of the transaction. The acquisition was a Class 1 transaction and shareholder approval was obtained on 20 July. The business was owned by Moderna Finance AB, which in turn was owned by Glitnir Bank in Iceland. Chesnara acquired Moderna Life for SEK250mlion (£20mlion), an effective 63 per cent. discount to its estimated embedded value of SEK670mlion (£54m) as at 31 December 2008.

Chesnara, which listed on the London Stock Exchange in May 2004, is the owner of Countrywide Assured plc ("CA") . CA is a life assurance subsidiary that is substantially closed to new business. In June 2005 Chesnara acquired City of Westminster Assurance ("CWA") for £47.8m. With effect from 30 June 2006, CWA's policies and assets were transferred into CA plc. Chesnara's operating model is to maintain a relatively small governance team and outsource most operations. Chesnara's strategy is to make acquisitions in the financial services sector and in areas related to its core UK life operations.

Canaccord Genuity acted as sole financial advisor and sponsor to Chesnara.