Acquisition

Chesnara plc

June 2, 2005

Chesnara plc completes acquisition of City of Westminster Assurance

Following approvals from shareholders and from the Financial Services
Authority, Chesnara plc (`Chesnara') has today completed the acquisition of
City of Westminster Assurance Company Ltd from Irish Life and Permanent plc for
a consideration of £47.5m.

Graham Kettleborough, Chief Executive, commented:

'This is an important first strategic step for Chesnara. We have acquired a
well-established run-off book, with cash flows which will help support our
objective of delivering steady, long term income to our investors. Since the
successful outsourcing of our back office at the beginning of the year, we have
looked at a number of opportunities and see real attractions in City of
Westminster. It matches our business profile well, will give us access to
additional management resources and, as an established run-off business, has
future surplus flows which can be predicted with a reasonable degree of
certainty. This is a good deal for Chesnara and its shareholders.'

Enquiries

Chesnara plc

Graham Kettleborough, Chief Executive 07799 407519

Cubitt Consulting

(Public Relations advisers to Chesnara)

Simon Brocklebank-Fowler 0207 367 5100