The deal will add £2.9bn of assets under administration and about 80,000 policies to Chesnara.

Subject to regulatory approval, Chesnara will pay £39m funded by its existing debt facility.

Completion of the deal is expected in early 2022. 

Chesnara, which has acquired a number of life and pensions books in recent years, says the deal will add scale to its specialist pension and long-term savings propositions.  

The purchase increases Chesnara group Assets Under Administration by 34% to £11.4bn and UK assets by 126% to £5.2bn.

Chesnara is also on the lookout for further acquisitions.

The Sanlam arm will be integrated into Chesnara’s UK platform, Countrywide Assured. Sanlam Life & Pensions will continue to will retain a commercial relationship with Sanlam Investments UK Limited for investment management.

Chesnara CEO John Deane said: "We are delighted to announce this transaction which will expand the scale of our UK operations and deliver potential for material value creation for Chesnara. The expected incremental cash generation from SLP will enhance the sustainability of our progressive dividend strategy.

“SLP's business is well aligned to Chesnara's acquisition strategy and will be integrated with our existing UK operations.  We look forward to welcoming SLP's customers and staff to the Chesnara group and continuing to work with Sanlam on the management of SLP assets.

“We believe that the market prospects for further acquisitions across our target markets remain positive and we continue to be confident in our ability to finance and execute such transactions on attractive terms for both vendors and our shareholders."

Jonathan Polin, chief executive of Sanlam UK, said: "This deal is a testament to the strength and quality of SLP and its long-standing track record of excellent client service. I would like to thank all my colleagues there for their unstinting efforts.  Chesnara is a highly respected and established life insurance and pensions consolidator and I am confident that the business will flourish under its new ownership for the benefit of all its key stakeholders, including policyholders."