Canada life has reached an agreement to sell its onshore bond business to Chesnara plc.
The sale is subject to regulatory approval and FSMA Part VII court proceedings.
The transfer is expected to be completed by the end of 2025.
Canada Life announced today (23 Dec.) that the sale was agreed following a thorough review and selection process.
In January 2024, the insurer announced that it was closing its onshore bond proposition to new business.
It said there is no immediate change for existing customers and that it will continue to support customers during the transfer period.
Sean Christian, managing director for Wealth at Canada Life UK, said: “We are delighted to partner with Chesnara plc on the sale of Canada Life’s onshore bond business. They have strong existing expertise in the onshore bond market, and we are confident they have high standards of customer service and a commitment to delivering good customer outcomes that will support the future needs of our customers and their advisers.
“This represents an important milestone in Canada Life’s transformation journey and will enable us to strengthen our focus on our core markets. The international bond market continues to be a strategic focus for the organisation, and our recent A (Superior) rating by AKG demonstrates our commitment and growing capability in this area.”
