Financial provider Canada Life is to sell its individual onshore protection business to Countrywide Assured, a division of consolidator Chesnara Plc, for an undisclosed sum.

Around 47,000 customer policies will transfer to Countywide, subject to completion of a court-approved transfer.

The moves follows Canada Life’s decision to close its onshore individual protection arm to new business in November 2022.

Countrywide is a subsidiary of European life and pensions consolidator Chesnara. The company has expanded by buying books of business in recent years, including Sanlam Life & Pensions UK in April last year.

Chesnara administers about 1 million life and pensions policies for policyholders; 272,000 in the UK, 316,000 in Sweden and 415,000 in the Netherlands.

Countrywide Assured provides financial protection including pensions, savings, life cover and critical illness. The firm's initial portfolio provided the foundation for the launch of Chesnara plc in 2004.

Canada Life says it remains committed to other business areas in the UK, including group protection, wealth and other areas of insurance, including home finance, annuities and offshore protection.

Onshore individual protection customers' policies are expected to transfer to Countrywide in 2024, subject to the completion of a court-approved Part VII transfer.

Canada Life UK says it will continue to support customers, honouring existing contractual obligations and paying claims.

Tim Stoves, managing director, protection, Canada Life, said: “We’re proud to have found a good home for our onshore individual protection customers, and know we have chosen the right partner with Countrywide Assured plc due to their experience, high standards of customer support and focus on prioritising good customers outcomes.

“Our agreement will provide certainty for our customers, who will be assured that their policy will remain in safe hands, with all policy terms and conditions honoured as part of the proposed transfer."